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Sep 30, 2020

Hyatt Q3 2020 Earnings Report

Hyatt adapted to a continuously changing and uneven demand environment and doubled the number of room nights sold compared to the second quarter of 2020.

Key Takeaways

Hyatt Hotels Corporation reported third-quarter 2020 financial results with a net loss attributable to Hyatt of $161 million, or $1.59 per diluted share. The company opened a record number of 27 new hotels representing over 4,300 new rooms for any third quarter in its history. Comparable system-wide RevPAR decreased 72.0% and net rooms growth increased by 6.0%.

Net loss decreased 154.2% to a net loss of $161 million.

Adjusted EBITDA decreased 129.9% to $(48) million.

Cash and cash equivalents of $1,778 million.

Net rooms growth of 6.0%.

Total Revenue
$399M
Previous year: $1.22B
-67.2%
EPS
-$1.48
Previous year: $0.37
-500.0%
Net Rooms Growth
6%
0
Adjusted EBITDA
-$48M
0
System-wide RevPAR
-72%
0
Gross Profit
-$19M
Previous year: $208M
-109.1%
Cash and Equivalents
$1.78B
Previous year: $660M
+169.4%
Free Cash Flow
-$149M
Previous year: -$3M
+4866.7%
Total Assets
$9.23B
Previous year: $8.13B
+13.5%

Hyatt

Hyatt

Hyatt Revenue by Segment

Forward Guidance

Demand is expected to remain uneven over the coming months.

Positive Outlook

  • Ingenuity and resilience of teams will enable Hyatt to continue to win share.
  • Deepen strong relationships with loyal guests and customers.
  • Strong liquidity position will help to sustain operations over time.
  • Support long-term growth strategy.
  • Unwavering commitment to living our purpose to care for our colleagues, guests, owners, and communities around the globe is of paramount importance.

Challenges Ahead

  • Demand to remain uneven over the coming months.
  • Short- and longer-term effects of the COVID-19 pandemic, including on the demand for travel, transient and group business, and levels of consumer confidence
  • Actions that governments, businesses, and individuals take in response to the COVID-19 pandemic or any resurgence, including limiting or banning travel
  • The impact of the COVID-19 pandemic and actions taken in response to the COVID-19 pandemic or any resurgence, on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending
  • The ability of third-party owners, franchisees or hospitality venture partners to successfully navigate the impacts of the COVID-19 pandemic

Revenue & Expenses

Visualization of income flow from segment revenue to net income