by Lacey Pfalz
Last updated: 9:25 AM ET, Fri February 23, 2024
Hyatt Hotels Corporation reported strong 2023 financial results, with an adjusted net income of $276 million, a 17 percent increase in revenue per available room (RevPAR), and a record-breaking management and franchise pipeline of 127,000 rooms.
The hotel giant’s full-year financial statement is a good indicator of the health of the hospitality industry worldwide, and it’s clear from the numbers that the pandemic-era recovery period is over.
Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, was $1.029 billion, exceeding the company’s predictions for the year. System-wide RevPAR, a key hospitality metric, increased 9.1 percent in the fourth quarter from the same time in 2022, and increased 17 percent year-over-year, which was higher than predictions.
Hyatt celebrated a 5.9 percent net room growth in 2023, and ended the year with approximately 127,000 rooms in development through executed management or franchise contracts. Hyatt welcomed 101 new hotels to its portfolios in 2023.
With this growth, the company was able to return $500 million to shareholders in capital returns.
"The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution,” said Mark S. Holpamazian, President and CEO of Hyatt. “RevPAR growth exceeded the high end of our guidance range and we had industry leading net rooms growth for the seventh consecutive year.
“This led to a record level of fees and the highest free cash flow in Hyatt's history,” Holpamazian continued. “We returned $500 million to our shareholders and achieved an asset-light earnings mix of approximately 76% for the full year, a testament to the successful execution of our strategy."
Hyatt predicts that 2024 will show similar or higher results, with system-wide RevPAR ranging from 3-5 percent higher year-over-year, a net room growth of 5.5-6 percent, net income at approximately $560 million and capital returns to shareholders remaining steady, at $550-600 million.
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