Hyatt Hotels Corporation has reported its financial results for the first quarter of 2023. Due to the company’s performance over the first three months of the year, it has raised its RevPAR outlook for the full year.
Hyatt recorded a comparable system-wide RevPAR increase of 42.9% (1Q 2023 vs. 2022). This also corresponds to a 6% increase compared to the first quarter of 2019 for the same set of comparable properties.
According to the company, this RevPAR recovery was principally driven by average rate growth, up 12% on a constant currency basis, while occupancy improved 1,400 basis points (compared to 1Q 2022).
Over the same period, comparable owned and leased hotels RevPAR increased 52.9%, compared to 2022. The comparable owned and leased hotels operating margin improved to 25.9% in 1Q 2023.
Finally, comparable all-inclusive net package RevPAR increased 33.2% in the first quarter of 2023 compared to 2022.
The company’s net income for the first quarter 2023 was $58 million. This stands in contrast to the net loss of $73 million reported over the same period 2022.
Adjusted net income was $45 million in the first quarter of 2023, versus an adjusted net loss of $36 million in 1Q of last year.
1Q 2023 saw the company’s diluted EPS stand at $0.53 compared to $0.67 in the same period 2022. At the same time, its adjusted diluted EPS was $0.41, versus $0.33 in 1Q 2022.
Hyatt’s adjusted EBITDA was $268 million in the first quarter of 2023 compared to $169 million in the first three months of 2022. This growth translates to a 58.6% increase between the two quarters.
It should be noted that these figures do not include net deferrals of $31 million and net financed contracts of $17 million in 1Q 2023, nor net deferrals of $24 million and net financed contracts of $7 million in 1Q 2022.
In terms of transactions and capital strategy, the acquisition of Dream Hotel Group was completed on 2nd February 2023 for $125 million (plus contingent add-ons through 2028).
Hyatt is also currently marketing two assets for sale and intends to successfully execute plans to realise $2 billion of gross proceeds from the sale of real estate, net of acquisitions, by the end of 2024.
As of 31st March 2023, Hyatt Hotels Corporation’s total debt is $3,102 million. During 1Q 2023, the company repurchased a total of 1,018,931 Class A common shares for approximately $106 million.
During the first three months of 2023, 28 new hotels (or 5,128 rooms) joined Hyatt's system. This figure includes the 12 hotels (or 1,893 rooms) from the acquisition of Dream Hotel Group.
Taking exits into account, the company’s net rooms growth was 7% in 1Q 2023.
Moving forward for the rest of the year, the company’s pipeline of executed management or franchise contracts stands at approximately 580 hotels (approximately 117,000 rooms).
Hyatt’s guidance for full year 2023 (vs. 2022) is now:
- System-wide RevPAR = 12% to 16%
- Net rooms growth = approx. 6%
For the fourth consecutive quarter we posted record results that exceeded our expectations, demonstrating our unique positioning and differentiated model. We raised our full year RevPAR outlook while maintaining our record level pipeline and industry leading net rooms growth. During the quarter, the recovery in Asia Pacific was particularly remarkable with broad improvements across the region. We continue to experience favourable booking trends and our outlook remains optimistic.
Mark S. Hoplamazian, President & CEO of Hyatt
United-States
