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Hyatt RevPAR to Decline Sharply in Q1 on Coronavirus Woes
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Hyatt Hotels Corporation (H - Free Report) reported preliminary first-quarter 2020 numbers. The company’s occupancy and RevPAR have been impacted significantly by the coronavirus pandemic. In the past three months, the company’s shares have fallen 35.5%, compared with the industry’s decline of 38.5%.
The company expects first-quarter 2020 revenues in the range of nearly $980 million to $1 billion, down from $1.2 billion in the prior-year quarter. The company also anticipates net income and adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) to decline materially in the first quarter.
The company anticipates comparable system-wide RevPAR to decline 28.1% in the first quarter. Comparable system-wide RevPAR was up 1.2% in January. However, the metric witnessed a sharp decline of 10.6% and 66.6% in February and March, respectively, on account of the coronavirus outbreak. Comparable owned and leased hotels RevPAR is expected to decrease 25.8% owing to sharp decline in March.
Further, the company announced that as of Apr 15, 2020, system-wide occupancy rates were nearly 15% for hotels that are operational. While Hyatt has been noticing early signs of improving demand in Greater China, negative trends in the rest of the world are yet to stabilize. In April on a month-to-date basis through Apr 15, occupancy was 20% in Greater China, up from low of mid-single digits in mid-February.
As of Apr 15, nearly 35% of hotels globally have been shutdown. Moreover, for the first quarter, the company expects cash and cash equivalent to be nearly $1.2 billion.
The coronavirus pandemic has also compelled the company to withdraw 2020 guidance. Despite the biological catastrophe that has claimed lives and impacted finance, the company appears resilient enough to navigate through these uncertain times. We believe that it will continue to monitor the COVID-19 crisis and adjust its contingency plans in accordance to it.
Other major hoteliers like Wyndham Hotels & Resorts, Inc. (WH - Free Report) , Hilton Worldwide Holdings Inc. (HLT - Free Report) and Marriott Vacations Worldwide Corporation (VAC - Free Report) have also been impacted by the coronavirus outbreak.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Hyatt RevPAR to Decline Sharply in Q1 on Coronavirus Woes
Hyatt Hotels Corporation (H - Free Report) reported preliminary first-quarter 2020 numbers. The company’s occupancy and RevPAR have been impacted significantly by the coronavirus pandemic. In the past three months, the company’s shares have fallen 35.5%, compared with the industry’s decline of 38.5%.
The company expects first-quarter 2020 revenues in the range of nearly $980 million to $1 billion, down from $1.2 billion in the prior-year quarter. The company also anticipates net income and adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) to decline materially in the first quarter.
The company anticipates comparable system-wide RevPAR to decline 28.1% in the first quarter. Comparable system-wide RevPAR was up 1.2% in January. However, the metric witnessed a sharp decline of 10.6% and 66.6% in February and March, respectively, on account of the coronavirus outbreak. Comparable owned and leased hotels RevPAR is expected to decrease 25.8% owing to sharp decline in March.
Further, the company announced that as of Apr 15, 2020, system-wide occupancy rates were nearly 15% for hotels that are operational. While Hyatt has been noticing early signs of improving demand in Greater China, negative trends in the rest of the world are yet to stabilize. In April on a month-to-date basis through Apr 15, occupancy was 20% in Greater China, up from low of mid-single digits in mid-February.
As of Apr 15, nearly 35% of hotels globally have been shutdown. Moreover, for the first quarter, the company expects cash and cash equivalent to be nearly $1.2 billion.
The coronavirus pandemic has also compelled the company to withdraw 2020 guidance. Despite the biological catastrophe that has claimed lives and impacted finance, the company appears resilient enough to navigate through these uncertain times. We believe that it will continue to monitor the COVID-19 crisis and adjust its contingency plans in accordance to it.
Other major hoteliers like Wyndham Hotels & Resorts, Inc. (WH - Free Report) , Hilton Worldwide Holdings Inc. (HLT - Free Report) and Marriott Vacations Worldwide Corporation (VAC - Free Report) have also been impacted by the coronavirus outbreak.
Hyatt Currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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