Hyatt Reports Strong Second Quarter EBITA, RevPAR, Net Income
Hyatt Hotels Corporation reported strong second quarter results, including a more than 19 percent increase in adjusted EBITDA and an 8 percent increase in revenue per available room (revPAR) in North America. Adjusted EBITDA was $180 million in the second quarter compared to $151 million in the second quarter of 2011. Net income in the second quarter was $39 million compared to net income of $37 million in the same period last year. Hyatt’s results come after Starwood reported a loss for the second quarter, Marriott International reported an increase in profits for the same period.
Adjusted for special items, net income attributable to Hyatt was $39 million during the second quarter compared to net income attributable to Hyatt of $46 million during the second quarter of 2011. Comparable owned and leased hotel revPAR increased 7.6 percent in the second quarter of 2012 compared to the second quarter of 2011.
Comparable North American full service hotel revPAR increased 8.7 percent in the second quarter of 2012 compared to the second quarter of 2011. Comparable North American select service hotel revPAR increased 6.4 percent in the second quarter of 2012 compared to the same period last year. Comparable international hotel revPAR increased 3.8 percent in the second quarter of 2012 compared to the second quarter of 2011.
“Our second quarter results were strong, with adjusted EBITDA increasing over 19 percent compared to last year,” said Mark Hoplamazian, president and chief executive officer of Hyatt. “RevPAR increased over 8 percent in North America as we experienced strong transient demand. Owned and leased revPAR grew over 9 percent in constant dollars as we benefited from last year’s significant renovations. Our international hotels continued to perform well, with revPAR up over 8 percent in constant dollars. In particular, most of our hotels in China continued to show solid results, with a sequential increase in year-over-year revPAR growth for comparable hotels in the second quarter. In addition, results from our hotels in Europe, which are primarily located in gateway cities such as Paris and London, remained good, despite the economic uncertainty in the wider region.”
Hoplamazian said over last 18 months Hyatt has completed hotel acquisitions totaling over $900 million. He said these properties are performing well, with re-branding largely complete and the benefits of Hyatt’s system leading to strong growth in revPAR and in market share. “Looking ahead, we are encouraged by recent trends in transient travel and positive group pace as compared to last year,” Hoplamazian said. “Our base of executed contracts for future openings is the largest it has ever been -- at 175 hotels. We are on track to open over 20 hotels this year, including our first select service hotel outside the U.S. In addition, the company is well positioned to take advantage of growth opportunities, as our balance sheet remains strong. Our organizational realignment is progressing well and slated for completion during the fourth quarter of 2012.”
Hyatt’s board of directors has authorized a repurchase of common stock of up to $200 million based on its judgment as to what is in the best interests of all shareholders in the context of Hyatt’s strategy, financial position, business results, and macro-economic factors.
New hotels added domestically in the second quarter include Hyatt French Quarter (franchised, 254 rooms); Hyatt Chicago Magnificent Mile (franchised, 417 rooms); Hyatt Place Boston/Braintree (franchised, 204 rooms); Hyatt Place Riverside/Downtown (franchised, 125 rooms). One new hotel was added internationally in the second quarter: Hyatt Regency Mexico City (owned, 756 rooms)
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