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Dec 31, 2020

Hyatt Q4 2020 Earnings Report

Hyatt's financial performance declined due to the impact of the COVID-19 pandemic, but net rooms growth remained strong.

Key Takeaways

Hyatt Hotels Corporation reported a net loss of $203 million for the fourth quarter of 2020, compared to a net income of $321 million in the fourth quarter of 2019. Adjusted EBITDA decreased from $191 million to $(98) million. Despite the challenging environment, net rooms growth was 5.2% for the year, and the company opened 72 hotels and entered 27 new markets.

Net loss attributable to Hyatt was $203 million, or $2.00 per diluted share, compared to net income of $321 million, or $3.08 per diluted share in Q4 2019.

Adjusted EBITDA decreased from $191 million to $(98) million.

Comparable system-wide RevPAR decreased 68.9%.

Net rooms growth was 5.2% for the year, and the pipeline maintained at over 100,000 rooms.

Total Revenue
$424M
Previous year: $1.28B
-66.7%
EPS
-$1.77
Previous year: $0.47
-476.6%
Net Rooms Growth
5.2%
Previous year: 7.4%
-29.7%
System-wide RevPAR
-68.9%
Previous year: -0.5%
+13680.0%
Gross Profit
-$30M
Previous year: $242M
-112.4%
Cash and Equivalents
$1.21B
Previous year: $893M
+35.2%
Free Cash Flow
-$166M
Previous year: -$3M
+5433.3%
Total Assets
$3.24B
Previous year: $8.42B
-61.5%

Hyatt

Hyatt

Forward Guidance

Given the uncertain pace and timing of recovery from the impacts of the COVID-19 pandemic, the Company is providing limited guidance for the 2021 fiscal year.

Positive Outlook

  • Adjusted selling, general, and administrative expenses are expected to be approximately $240 million.
  • Capital expenditures are expected to be approximately $110 million.
  • The Company expects to grow units, on a net rooms basis, by approximately 5.0%.

Challenges Ahead

  • The pace and timing of recovery from the impacts of the COVID-19 pandemic is uncertain.
  • The Company's 2021 Outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company.
  • If actual results vary from these assumptions, the Company's expectations may change.
  • No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2021 Outlook.
  • There can be no assurance that Hyatt will achieve these results.