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Hyatt (H) Q1 Earnings & Revenues Beat Estimates, Stock Up
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Hyatt Hotels Corporation (H - Free Report) reported impressive first-quarter 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics increased on a year-over-year basis. Following the announcement, shares of the company moved up 2.6% in the pre-market trading session.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation, stated, “Record levels of leisure demand fueled nearly 60% of our rooms revenue in the quarter with continued outperformance at our resorts and all-inclusive properties. We expect the rate of recovery to broaden and strengthen in the months ahead as evidenced by the strong pace of actualized and future bookings for business and group travel.”
Q1 Earnings & Revenues
During the first quarter, Hyatt reported an adjusted loss per share of 33 cents, narrower than the Zacks Consensus Estimate of a loss of 41 cents. In the prior-year quarter, the company reported an adjusted loss of $3.57 per share.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Quarterly revenues of $1,279 million beat the consensus mark of $1,098 million by 16.5%. Moreover, the top line surged 192% on a year-over-year basis.
Operating Highlights
During the quarter, adjusted EBITDA came in at $169 million against $(20) million reported in the year-ago quarter. Adjusted EBITDA margin increased to 22.6% in the first quarter against a fall of 10.7% reported in the year-ago quarter.
Segmental Details
Hyatt manages business through five reportable segments — Owned and Leased Hotels; Americas Management and Franchising; Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising; Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising; and Apple Leisure Group Segment.
During the fourth quarter, revenues in the Owned and Leased Hotels segment totaled $271 million compared with $104 million reported in the prior-year quarter. The upside was primarily driven by improved demand across the portfolio. Owned and leased hotels RevPAR surged 217.4% from the prior-year quarter’s level. During the quarter, the average daily rate (ADR) was up 56.8% and the occupancy rate increased 27.8 percentage points from 2021 levels.
The segment’s adjusted EBITDA came in at $54 million during the first quarter against $(29) million reported in the year-ago quarter.
During the quarter, total Management and Franchise fee revenues came in at $135 million compared with $49 million reported in the year-ago quarter. The metric rose sequentially from $124 million reported in fourth-quarter 2021.
In Americas Management and Franchising, RevPAR for comparable Americas full-service hotels (during the first quarter) surged 181.7% from the prior-year quarter’s level. While ADR increased 43.3%, occupancy rates increased 25.3 percentage points from the prior-year quarter’s number.
RevPAR for comparable Americas select-service hotels was up 74.3% year over year. ADR increased 35.4% and occupancy rates improved 13.7 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during the first quarter came in at $85 million compared with $28 million reported in the year-ago quarter.
In ASPAC Management and Franchising, RevPAR for comparable ASPAC full-service hotels (during the first quarter) increased 16.7% from the year-ago quarter’s figure. ADR increased 12.4% year over year. Occupancy rates increased 1.3 percentage points from the year-ago quarter’s number.
RevPAR for comparable ASPAC select-service hotels was down 6% on a year-over-year basis. ADR increased 7.4% year over year. However, occupancy rates fell 6.4 percentage points from the year-ago quarter’s number.
During the quarter, adjusted EBITDA came in at $5 million, flat from the year-ago quarter’s levels.
In EAME/SW Asia Management and Franchising, comparable EAME/SW Asia full-service hotels’ RevPAR surged 152.3% from the year-ago quarter’s level. ADR increased 55% and occupancy rates rose 18.7 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during the first quarter came in at $6 million compared with $0 million reported in the year-ago quarter.
In the Apple Leisure Group (or ALG) segment, adjusted EBITDA during the first quarter came in at $56 million compared with $4 million reported in the previous quarter. Solid demand for leisure destinations (Mexico and the Caribbean) coupled with a strong level of booking activity added to the upside. During the quarter, the ALG segment added three resorts (or 1,071 rooms).
Balance Sheet
As of Mar 31, 2022, Hyatt reported cash and cash equivalents of $1,305 million compared with $960 million in the previous quarter. Total debt as of Mar 31, 2022, stood at $3,821 million compared with $3,978 million as of Dec 31, 2021.
The company stated undrawn borrowing availability of $1,496 million under Hyatt's revolving credit facility.
Other Business Updates
Coming to hotel openings, 13 new hotels (or 2,690 rooms) joined Hyatt's system in the first quarter of 2022. As of Mar 31, 2022, the company had executed management or franchise contracts for approximately 540 hotels (or 113,000 rooms).
During the quarter, the company made significant progress with respect to its $2.0 billion asset disposition commitment. The company entered into purchase and sale agreements (for its owned hotels) with unrelated third parties and also entered into long-term management agreements for each property. The properties include Hyatt Regency Indian Wells Resort & Spa, Grand Hyatt San Antonio River Walk and The Driskill. In May, the company signed a purchase and sale agreement concerning The Confidante Miami Beach. The company expects to close this deal by the second quarter 2022. The four transactions (valued at $812 million) represent more than 40% of the company's asset disposition commitment.
2022 Outlook
For 2022, the company expects adjusted selling, general and administrative expenses between $460 million and $465 million. Capital expenditures are projected at approximately $210 million. Unit growth in 2022 is anticipated to grow at approximately 6% on a net-room basis.
Civeo sports a Zacks Rank #1 (Strong Buy) at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have increased 46.2% in the past year.
The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 27.8% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.5% and 28.7%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #2 (Buy). FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 15.9% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 24.7% and 28.9%, respectively, from the year-ago period’s reported levels.
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Hyatt (H) Q1 Earnings & Revenues Beat Estimates, Stock Up
Hyatt Hotels Corporation (H - Free Report) reported impressive first-quarter 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics increased on a year-over-year basis. Following the announcement, shares of the company moved up 2.6% in the pre-market trading session.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation, stated, “Record levels of leisure demand fueled nearly 60% of our rooms revenue in the quarter with continued outperformance at our resorts and all-inclusive properties. We expect the rate of recovery to broaden and strengthen in the months ahead as evidenced by the strong pace of actualized and future bookings for business and group travel.”
Q1 Earnings & Revenues
During the first quarter, Hyatt reported an adjusted loss per share of 33 cents, narrower than the Zacks Consensus Estimate of a loss of 41 cents. In the prior-year quarter, the company reported an adjusted loss of $3.57 per share.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Hyatt Hotels Corporation price-consensus-eps-surprise-chart | Hyatt Hotels Corporation Quote
Quarterly revenues of $1,279 million beat the consensus mark of $1,098 million by 16.5%. Moreover, the top line surged 192% on a year-over-year basis.
Operating Highlights
During the quarter, adjusted EBITDA came in at $169 million against $(20) million reported in the year-ago quarter. Adjusted EBITDA margin increased to 22.6% in the first quarter against a fall of 10.7% reported in the year-ago quarter.
Segmental Details
Hyatt manages business through five reportable segments — Owned and Leased Hotels; Americas Management and Franchising; Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising; Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising; and Apple Leisure Group Segment.
During the fourth quarter, revenues in the Owned and Leased Hotels segment totaled $271 million compared with $104 million reported in the prior-year quarter. The upside was primarily driven by improved demand across the portfolio. Owned and leased hotels RevPAR surged 217.4% from the prior-year quarter’s level. During the quarter, the average daily rate (ADR) was up 56.8% and the occupancy rate increased 27.8 percentage points from 2021 levels.
The segment’s adjusted EBITDA came in at $54 million during the first quarter against $(29) million reported in the year-ago quarter.
During the quarter, total Management and Franchise fee revenues came in at $135 million compared with $49 million reported in the year-ago quarter. The metric rose sequentially from $124 million reported in fourth-quarter 2021.
In Americas Management and Franchising, RevPAR for comparable Americas full-service hotels (during the first quarter) surged 181.7% from the prior-year quarter’s level. While ADR increased 43.3%, occupancy rates increased 25.3 percentage points from the prior-year quarter’s number.
RevPAR for comparable Americas select-service hotels was up 74.3% year over year. ADR increased 35.4% and occupancy rates improved 13.7 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during the first quarter came in at $85 million compared with $28 million reported in the year-ago quarter.
In ASPAC Management and Franchising, RevPAR for comparable ASPAC full-service hotels (during the first quarter) increased 16.7% from the year-ago quarter’s figure. ADR increased 12.4% year over year. Occupancy rates increased 1.3 percentage points from the year-ago quarter’s number.
RevPAR for comparable ASPAC select-service hotels was down 6% on a year-over-year basis. ADR increased 7.4% year over year. However, occupancy rates fell 6.4 percentage points from the year-ago quarter’s number.
During the quarter, adjusted EBITDA came in at $5 million, flat from the year-ago quarter’s levels.
In EAME/SW Asia Management and Franchising, comparable EAME/SW Asia full-service hotels’ RevPAR surged 152.3% from the year-ago quarter’s level. ADR increased 55% and occupancy rates rose 18.7 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during the first quarter came in at $6 million compared with $0 million reported in the year-ago quarter.
In the Apple Leisure Group (or ALG) segment, adjusted EBITDA during the first quarter came in at $56 million compared with $4 million reported in the previous quarter. Solid demand for leisure destinations (Mexico and the Caribbean) coupled with a strong level of booking activity added to the upside. During the quarter, the ALG segment added three resorts (or 1,071 rooms).
Balance Sheet
As of Mar 31, 2022, Hyatt reported cash and cash equivalents of $1,305 million compared with $960 million in the previous quarter. Total debt as of Mar 31, 2022, stood at $3,821 million compared with $3,978 million as of Dec 31, 2021.
The company stated undrawn borrowing availability of $1,496 million under Hyatt's revolving credit facility.
Other Business Updates
Coming to hotel openings, 13 new hotels (or 2,690 rooms) joined Hyatt's system in the first quarter of 2022. As of Mar 31, 2022, the company had executed management or franchise contracts for approximately 540 hotels (or 113,000 rooms).
During the quarter, the company made significant progress with respect to its $2.0 billion asset disposition commitment. The company entered into purchase and sale agreements (for its owned hotels) with unrelated third parties and also entered into long-term management agreements for each property. The properties include Hyatt Regency Indian Wells Resort & Spa, Grand Hyatt San Antonio River Walk and The Driskill. In May, the company signed a purchase and sale agreement concerning The Confidante Miami Beach. The company expects to close this deal by the second quarter 2022. The four transactions (valued at $812 million) represent more than 40% of the company's asset disposition commitment.
2022 Outlook
For 2022, the company expects adjusted selling, general and administrative expenses between $460 million and $465 million. Capital expenditures are projected at approximately $210 million. Unit growth in 2022 is anticipated to grow at approximately 6% on a net-room basis.
Zacks Rank & Key picks
Hyatt currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Civeo Corporation (CVEO - Free Report) , Bluegreen Vacations Holding Corporation and Funko, Inc. (FNKO - Free Report) .
Civeo sports a Zacks Rank #1 (Strong Buy) at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have increased 46.2% in the past year.
The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 27.8% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.5% and 28.7%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #2 (Buy). FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 15.9% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 24.7% and 28.9%, respectively, from the year-ago period’s reported levels.