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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.
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.