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Hyatt Reports Second Quarter 2013 Results

07/31/2013
Download this Press Release PDF Format (opens in new window) PDF 570 KB

CHICAGO--(BUSINESS WIRE)--Jul. 31, 2013-- Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today reported second quarter 2013 financial results as follows:

  • Adjusted EBITDA was $212 million in the second quarter of 2013 compared to $180 million in the second quarter of 2012, an increase of 17.8%.
  • Adjusted for special items, net income attributable to Hyatt was $70 million, or $0.43 per share, during the second quarter of 2013 compared to net income attributable to Hyatt of $39 million, or $0.24 per share, during the second quarter of 2012.
  • Net income attributable to Hyatt was $112 million, or $0.70 per share, during the second quarter of 2013 compared to net income attributable to Hyatt of $39 million, or $0.24 per share, in the second quarter of 2012.
  • Comparable owned and leased hotel RevPAR increased 7.1% (7.1% excluding the effect of currency) in the second quarter of 2013 compared to the second quarter of 2012.
  • Owned and leased hotel operating margins increased 150 basis points in the second quarter of 2013 compared to the second quarter of 2012. Comparable owned and leased hotel operating margins increased 230 basis points in the second quarter of 2013 compared to the second quarter of 2012.
  • Comparable systemwide RevPAR increased 3.9% (4.6% excluding the effect of currency) in the second quarter of 2013 compared to the second quarter of 2012.
  • Comparable U.S. full service hotel RevPAR increased 6.1% in the second quarter of 2013 compared to the second quarter of 2012. Comparable U.S. select service hotel RevPAR increased 6.0% in the second quarter of 2013 compared to the second quarter of 2012.
  • Sixteen properties were opened. As of June 30, 2013, the Company's executed contract base consisted of approximately 200 hotels or 45,000 rooms.
  • The Company repurchased 4,768,636 shares of common stock at a weighted average price of $41.10 per share, for an aggregate purchase price of approximately $196 million.

Mark S. Hoplamazian , president and chief executive officer of Hyatt Hotels Corporation, said, "Our second quarter of 2013 reflected ongoing positive trends in transient demand at U.S. hotels and strong average daily rate progression.

"Since the beginning of the year, we have executed on our strategy of expanding in new and attractive markets by opening a total of 24 hotels in the United States, India, France, China and South Korea. Eleven of these openings were conversions of existing hotels and drove strong fee growth in the quarter.

"Looking ahead, we remain focused on improving performance at existing hotels and expanding in new and attractive markets. We expect continued healthy levels of transient demand at U.S. hotels, and anticipate further rate growth. Over the short-term, we believe that U.S. group demand growth will be modest and that demand in certain markets, such as India and China, will be volatile. We remain confident in the long-term outlook for both transient and group segments.

"We continue to invest in our hotels and expect to spend approximately $250 million on capital expenditures in 2013, inclusive of $80 million towards construction of new hotels. Over the last five years, we have consistently committed capital to our owned hotels, which has resulted in a high-quality asset base that is well-positioned for outperformance and potential asset recycling in the years ahead.

"Consistent with our capital strategy, we continue to be focused on asset recycling, investment spending and pursuing new opportunities. During the quarter, we sold two properties at attractive pricing. We entered into franchise agreements for both hotels, thereby maintaining our brand presence in each market. We have increased our investment spending outlook for 2013 to over $500 million, inclusive of an expected $325 million investment in the all-inclusive resort segment. We expect to introduce our first two all-inclusive resorts, each in Mexico, by year-end.

"In the second quarter, we repurchased nearly $200 million of our stock. Since May of 2011, we have repurchased over $750 million of stock, thereby reducing our net shares outstanding by approximately 10%. Our balanced approach to capital expenditures, investment spending and return of capital to shareholders reflects our cash flow performance, business mix and strategic focus on asset recycling. We expect this to result in long-term value creation."

SEGMENT RESULTS & OTHER ITEMS

Owned and Leased Hotels Segment

Total segment Adjusted EBITDA increased 9.8% in the second quarter of 2013 compared to the same period in 2012. Owned and leased Adjusted EBITDA increased 14.5% in second quarter of 2013 compared to the same period in 2012. Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA decreased 13.6% in the second quarter of 2013 compared to the same period in 2012. The decrease was primarily due to asset sales and weaker performance in certain international markets.

RevPAR for comparable owned and leased hotels increased 7.1% (7.1% excluding the effect of currency) in the second quarter of 2013 compared to the same period in 2012. Occupancy improved 60 basis points and ADR increased 6.3% (6.3% excluding the effect of currency) compared to the same period in 2012.

Revenue increased 8.3% in the second quarter of 2013 compared to the same period in 2012. Comparable hotel revenue increased 7.0% in the second quarter of 2013 compared to the same period in 2012.

Owned and leased hotel expenses increased 6.2% in the second quarter of 2013 compared to the same period in 2012. Excluding expenses related to benefit programs funded through Rabbi Trusts and non-comparable hotel expenses, expenses increased 3.8% in the second quarter of 2013 compared to the same period in 2012. See the table on page 10 of the accompanying schedules for a reconciliation of comparable owned and leased hotels expenses to owned and leased hotels expenses.

The following hotels were removed from the owned and leased portfolio during the second quarter:

  • Sold Hyatt Fisherman's Wharf for approximately $104 million and Hyatt Santa Barbara for approximately $61 million. The Company entered into a franchise agreement for each property and therefore each hotel remains included in the Americas Management and Franchising segment.

Americas Management and Franchising Segment

Adjusted EBITDA increased 14.8% in the second quarter of 2013 compared to the same period in 2012.

RevPAR for comparable Americas full service hotels increased 5.5% (5.6% excluding the effect of currency) in the second quarter of 2013 compared to the same period in 2012. Occupancy increased 70 basis points and ADR increased 4.5% (4.7% excluding the effect of currency) compared to the same period in 2012.

Group rooms revenue at comparable U.S. full service hotels increased 5.2% in the second quarter of 2013 compared to the same period in 2012. Group room nights increased 0.4% and group ADR increased 4.8% in the second quarter of 2013 compared to the same period in 2012.

Transient rooms revenue at comparable U.S. full service hotels increased 6.9% in the second quarter of 2013 compared to the same period in 2012. Transient room nights increased 2.7% and transient ADR increased 4.1% in the second quarter of 2013 compared to the same period in 2012.

RevPAR for comparable Americas select service hotels increased 6.0% (6.0% excluding the effect of currency) in the second quarter of 2013 compared to the same period in 2012. Occupancy increased 150 basis points and ADR increased 4.1% (4.1% excluding the effect of currency) compared to the same period in 2012.

Revenue from management and franchise fees increased 8.7% in the second quarter of 2013 compared to the same period in 2012.

The following seven hotels were added to the portfolio during the second quarter:

  • Hyatt Regency Birmingham - The Wynfrey Hotel (franchised, 329 rooms)
  • Hyatt Union Square (franchised, 178 rooms)
  • Hyatt Place Chicago/ River North (franchised, 212 rooms)
  • Hyatt Place Pensacola Airport (franchised, 127 rooms)
  • Hyatt House Atlanta/Cobb Galleria (franchised, 149 rooms)
  • Hyatt House Minot (franchised, 130 rooms)
  • Hyatt House Pittsburgh-Southside (franchised, 136 rooms)

Southeast Asia, China, Australia, South Korea and Japan (ASPAC) Management and Franchising Segment

Adjusted EBITDA increased 27.3% in the second quarter of 2013 compared to the same period in 2012.

RevPAR for comparable ASPAC hotels decreased 3.5% (0.7% excluding the effect of currency) in the second quarter of 2013 compared to the same period in 2012. Occupancy increased 20 basis points and ADR decreased 3.9% (1.1% excluding the effect of currency) compared to the same period in 2012. RevPAR was negatively impacted by displacement due to renovations as well as weak market conditions in China.

Revenue from management and franchise fees increased 4.8% in the second quarter of 2013 compared to the same period in 2012. Revenue benefited from $2 million of non-recurring license fees.

The following hotel was added to the portfolio during the second quarter:

  • Grand Hyatt Shenyang, China (managed, 329 rooms)

Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management Segment

Adjusted EBITDA increased 150.0% in the second quarter of 2013 compared to the same period in 2012. The increase was primarily due to newly converted hotels, which are seasonally stronger in the second quarter.

RevPAR for comparable EAME/SW Asia hotels increased 5.3% (6.1% excluding the effect of currency) in the second quarter of 2013 compared to the same period in 2012. Occupancy increased 540 basis points and ADR decreased 3.2% (2.5% excluding the effect of currency) compared to the same period in 2012.

Revenue from management and franchise fees increased 75.0% in the second quarter of 2013 compared to the same period in 2012. The increase was primarily due to newly converted hotels, which are seasonally stronger in the second quarter.

The following eight hotels were added to the portfolio during the second quarter:

  • Grand Hyatt Cannes Hôtel Martinez, France (managed, 409 rooms)
  • Hyatt Regency Nice Palais de la Méditerranée, France (managed, 187 rooms)
  • Hyatt Regency Paris Etoile, France (managed, 950 rooms)
  • Hôtel du Louvre - Paris, a Hyatt Hotel, France (managed, 177 rooms)
  • Hyatt Regency Gurgaon, India (managed, 451 rooms)
  • Hyatt Bangalore, India (managed, 143 rooms)
  • Hyatt Hyderabad, India (managed, 166 rooms)
  • Hyatt Pune, India (managed, 209 rooms)

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses increased by 7.1% in the second quarter of 2013 compared to the same period in 2012. Adjusted selling, general, and administrative expenses increased by 1.4% in the second quarter of 2013 compared to the same period in 2012. See the table on page 9 of the accompanying schedules for a reconciliation of adjusted selling, general, and administrative expenses to selling, general, and administrative expenses.

OPENINGS AND FUTURE EXPANSION

Sixteen hotels were added in the second quarter of 2013, each of which is listed above.

The Company expects that a significant number of new properties will be opened under various Company brands in the future. As of June 30, 2013 this effort was underscored by executed management or franchise contracts for approximately 200 hotels (or approximately 45,000 rooms) across all brands. The executed contracts represent potential entry into several new countries and expansion into new markets or markets in which the Company is under-represented.

SHARE REPURCHASE

During the second quarter of 2013, the Company repurchased 4,768,636 shares of common stock at a weighted average price of $41.10 per share, for an aggregate purchase price of approximately $196 million. Of this total, the Company repurchased 1,861,757 shares of Class A common stock at a weighted average purchase price of $40.69, for an aggregate purchase price of approximately $76 million and 2,906,879 shares of Class B common stock at a weighted average price of $41.36, for an aggregate purchase price of approximately $120 million. From July 1 through July 26, 2013, the Company repurchased 601,453 shares of Class A common stock at a weighted average price of $41.18 per share, for an aggregate purchase price of approximately $25 million, and had approximately $15 million remaining under its repurchase authorization as of July 26, 2013.

CORPORATE FINANCE

During the quarter, the Company completed the following transactions:

  • Sold Hyatt Fisherman's Wharf (313 rooms) for approximately $104 million.
  • Sold Hyatt Santa Barbara (195 rooms) for approximately $61 million.
  • Redeemed all of our outstanding 5.750% senior notes due 2015 for $278 million.
  • Completed a tender offer of our 6.875% Senior Notes due in 2019 resulting in a cash outflow, including the early tender premium, of $66 million. $196 million of our 6.875% Senior Notes due in 2019 remains outstanding.
  • Sold $350 million of 3.375% Senior Notes due July 15, 2023 at a public offering price of 99.498%.

Subsequent to the end of the quarter, the Company:

  • Announced plans to enter the all-inclusive resort segment by investing $325 million in a joint venture.
  • Received a full repayment of a $277 million note receivable related to Hyatt Regency Waikiki, which matured in July 2013.

On June 30, 2013, the Company had total debt of approximately $1.3 billion.

On June 30, 2013, the Company had cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of approximately $718 million and short-term investments of approximately $87 million.

On June 30, 2013, the Company had undrawn borrowing availability of approximately $1.4 billion under its revolving credit facility.

2013 INFORMATION

The Company is providing the following information for the 2013 fiscal year:

  • Adjusted SG&A expense is expected to be approximately $310 million.
  • Capital expenditures are expected to be approximately $250 million, including approximately $80 million for investment in new properties, such as Grand Hyatt Rio de Janeiro, Hyatt Place Omaha and other properties.
  • In addition to the capital expenditures described above, investment spending is expected to be over $500 million. Investment spending includes acquisitions, equity investments in joint ventures, debt investments, contract acquisition costs, or other investments. Investment spending includes the acquisition of the Driskill Hotel and the expected investment in the all-inclusive resort segment.
  • Depreciation and amortization expense is expected to be approximately $340 million.
  • Interest expense is expected to be approximately $70 million.
  • Expects to open over 40 hotels in 2013.

CONFERENCE CALL INFORMATION

The Company will hold an investor conference call today, July 31, 2013, at 10:30 a.m. CT. The Company requests that questions be submitted via email to earnings@hyatt.com by 9:00 a.m. CT. Hyatt management will read and respond to as many submitted questions as possible. All interested persons may listen to a simultaneous webcast of the conference call, which may be accessed through the Company's website at http://www.hyatt.com and selecting the Investor Relations link located at the bottom of the page, or by dialing 857.244.7315, passcode #76926094, approximately 10 minutes before the scheduled start time. For those unable to listen to the live broadcast, a replay will be available from 1:00 p.m. CT on July 31, 2013 through midnight on August 7, 2013 by dialing 617.801.6888, passcode #14695124. Additionally, an archive of the webcast will be available on the Investor Relations website for approximately 90 days.

DEFINITIONS

Adjusted EBITDA

We use the term Adjusted EBITDA throughout this earnings release. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define consolidated Adjusted EBITDA as net income attributable to Hyatt Hotels Corporation plus our pro-rata share of unconsolidated hospitality ventures Adjusted EBITDA based on our ownership percentage of each venture, adjusted to exclude the following items:

  • equity losses from unconsolidated hospitality ventures;
  • asset impairments;
  • gains on sales of real estate;
  • other income (loss), net;
  • depreciation and amortization;
  • interest expense; and
  • provision for income taxes.

We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA of each of our reportable segments to corporate and other Adjusted EBITDA.

Our Board of Directors and executive management team focus on Adjusted EBITDA as a key performance and compensation measure both on a segment and on a consolidated basis. Adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance both on a segment and on a consolidated basis. Our president and chief executive officer, who is our chief operating decision maker, also evaluates the performance of each of our reportable segments and determines how to allocate resources to those segments, in significant part, by assessing the Adjusted EBITDA of each segment. In addition, the compensation committee of our Board of Directors determines the annual variable compensation for certain members of our management based in part on consolidated Adjusted EBITDA, segment Adjusted EBITDA or some combination of both.

We believe Adjusted EBITDA is useful to investors because it provides investors the same information that we use internally for purposes of assessing our operating performance and making selected compensation decisions.

Adjusted EBITDA is not a substitute for net income attributable to Hyatt Hotels Corporation, net income, cash flows from operating activities or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income generated by our business or discretionary cash available to us to invest in the growth of our business. Our management compensates for these limitations by reference to our GAAP results and using Adjusted EBITDA supplementally.

Adjusted Selling, General, and Administrative Expense

Adjusted selling, general, and administrative expenses exclude the impact of expenses related to benefit programs funded through rabbi trusts.

Comparable Owned and Leased Hotel Operating Margin

We define Comparable Owned and Leased Hotel Operating Margin as the difference between comparable owned and leased hotels revenue and comparable owned and leased hotels expenses. Comparable owned and leased hotels revenue is calculated by removing non-comparable hotels revenue from owned and leased hotels revenue as reported in our condensed consolidated statements of income. Comparable owned and leased hotel expenses is calculated by removing both non-comparable hotels expenses and the impact of expenses funded through rabbi trusts from owned and leased hotel expenses as reported in our condensed consolidated statements of income.

Comparable Hotels

Comparable systemwide hotels represents all properties we manage or franchise (including owned and leased properties) and that are operated for the entirety of the periods being compared and that have not sustained substantial damage, business interruption or undergone large scale renovations during the periods being compared or for which comparable results are not available. We may use variations of comparable systemwide hotels to specifically refer to comparable systemwide Americas full service or select service hotels for those properties that we manage or franchise within the Americas management and franchising segment, comparable systemwide ASPAC full service hotels for those properties that we manage or franchise within the ASPAC management and franchising segment, or comparable systemwide EAME/SW Asia full service hotels for those properties that we manage within the EAME/SW Asia management segment. Comparable operated hotels is defined the same as Comparable systemwide hotels with the exception that it is limited to only those hotels we manage or operate and excludes hotels we franchise. “Comparable owned and leased hotels” represents all properties we own or lease and that are operated and consolidated for the entirety of the periods being compared and have not sustained substantial damage, business interruption or undergone large scale renovations during the periods being compared or for which comparable results are not available. Comparable systemwide hotels and comparable owned and leased hotels are commonly used as a basis of measurement in the industry. Non-comparable systemwide hotels or Non-comparable owned and leased hotels represent all hotels that do not meet the respective definition of comparable as defined above.

Revenue per Available Room (RevPAR)

RevPAR is the product of the average daily rate and the average daily occupancy percentage. RevPAR does not include non-room revenues, which consist of ancillary revenues generated by a hotel property, such as food and beverage, parking, telephone and other guest service revenues. Our management uses RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a regional and segment basis. RevPAR is a commonly used performance measure in the industry.

RevPAR changes that are driven predominantly by changes in occupancy have different implications for overall revenue levels and incremental profitability than do changes that are driven predominantly by changes in average room rates. For example, increases in occupancy at a hotel would lead to increases in room revenues and additional variable operating costs (including housekeeping services, utilities and room amenity costs), and could also result in increased ancillary revenues (including food and beverage). In contrast, changes in average room rates typically have a greater impact on margins and profitability as there is no substantial effect on variable costs.

Average Daily Rate (ADR)

ADR represents hotel room revenues, divided by total number of rooms sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and we use ADR to assess the pricing levels that we are able to generate by customer group, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described above.

Occupancy

Occupancy represents the total number of rooms sold divided by the total number of rooms available at a hotel or group of hotels. Occupancy measures the utilization of our hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help us determine achievable ADR levels as demand for hotel rooms increases or decreases.

Select service

The term select service includes the brands Hyatt Place and Hyatt House . These properties have limited food and beverage outlets and do not offer comprehensive business or banquet facilities but rather are suited to serve smaller business meetings.

FORWARD-LOOKING STATEMENTS

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, occupancy and ADR trends, market share, margin trends, the number of properties we expect to open in the future, our expected adjusted SG&A expense, capital expenditures, investment spending, depreciation and amortization expense and interest expense estimates, financial performance, expected funding under performance guarantees, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, general economic uncertainty in key global markets, the rate and pace of economic recovery following economic downturns; levels of spending in business and leisure segments as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to short and medium-term group bookings; our ability to successfully achieve certain levels of operating profit at hotels that have performance guarantees with our third-party owners; the impact of hotel renovations; our ability to successfully execute and implement our organizational realignment; loss of key personnel, including as a result of our organizational realignment; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; travel-related accidents; changes in the tastes and preferences of our customers; relationships with associates and labor unions and changes in labor law; the financial condition of, and our relationships with, third-party property owners, franchisees and hospitality venture partners; if our third-party owners, franchisees or development partners are unable to access the capital necessary to fund current operations or implement our plans for growth; risk associated with potential acquisitions and dispositions and the introduction of new brand concepts; changes in the competitive environment in our industry and the markets where we operate; outcomes of legal proceedings; changes in federal, state, local or foreign tax law; foreign exchange rate fluctuations or currency restructurings; general volatility of the capital markets; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company's subsidiaries manage, franchise, own and develop hotels and resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place® and Hyatt House® brand names and have locations on six continents. Hyatt Residential Group, Inc., a Hyatt Hotels Corporation subsidiary, develops, operates, markets or licenses Hyatt ResidencesTM and Hyatt Residence ClubTM. As of June 30, 2013, the Company's worldwide portfolio consisted of 524 properties in 46 countries. For more information, please visit www.hyatt.com.

Tables to follow

 
Hyatt Hotels Corporation
Table of Contents
Financial Information (unaudited)
 

1.

   

Condensed Consolidated Statements of Income

2. Reconciliation of Non-GAAP to GAAP Measure: Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation
3. Reconciliation of Non-GAAP to GAAP Measure: Summary of Special Items - Three Months Ended June 30, 2013 and 2012
4. Reconciliation of Non-GAAP to GAAP Measure: Summary of Special Items - Six Months Ended June 30, 2013 and 2012
5. Segment Financial Summary
6. Hotel Chain Statistics - Comparable Locations
7. Hotel Brand Statistics - Comparable Locations
8. Fee Summary
9. Reconciliation of Non-GAAP to GAAP Measure: Adjusted Selling, General, and Administrative Expenses to Selling, General, and Administrative Expenses
10. Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and Leased Hotel Operating Margin to Owned and Leased Hotel Operating Margin
11. Net Gains (Losses) and Interest Income from Marketable Securities Held to Fund Operating Programs
12. Capital Expenditures and Investment Spending Summary
13. Properties and Rooms / Units by Geography
14. Properties and Rooms / Units by Brand
 

Page 1

Hyatt Hotels Corporation
Condensed Consolidated Statements of Income
For the Three and Six Months Ended June 30, 2013 and 2012

(in millions, except per share amounts)

(unaudited)

 
   

Three Months Ended
June 30,

 

Six Months Ended
June 30,

2013   2012 2013   2012
REVENUES:
Owned and leased hotels $ 572 $ 528 $ 1,064 $ 1,001
Management and franchise fees 96 80 171 159
Other revenues 21 20 41 37
Other revenues from managed properties (a) 403   386   791   775  
Total revenues 1,092 1,014 2,067 1,972
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
Owned and leased hotels 413 389 804 766
Depreciation and amortization 85 89 173 175
Other direct costs 8 7 15 13
Selling, general, and administrative 75 70 159 163
Other costs from managed properties (a) 403   386   791   775  
Direct and selling, general, and administrative expenses 984 941 1,942 1,892
Net gains (losses) and interest income from marketable securities held to fund operating programs — (4 ) 10 10
Equity losses from unconsolidated hospitality ventures (5 ) — (6 ) (1 )
Interest expense (16 ) (17 ) (33 ) (35 )
Asset impairments (3 ) — (11 ) —
Gains on sales of real estate 99 — 99 —
Other income (loss), net (16 ) 5   (14 ) 17  
INCOME BEFORE INCOME TAXES 167 57 170 71
PROVISION FOR INCOME TAXES (55 ) (18 ) (50 ) (22 )
NET INCOME 112 39 120 49

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

—   —   —   —  
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 112   $ 39   $ 120   $ 49  
 
EARNINGS PER SHARE - Basic
Net income $ 0.70 $ 0.24 $ 0.75 $ 0.30
Net income attributable to Hyatt Hotels Corporation $ 0.70 $ 0.24 $ 0.75 $ 0.30
EARNINGS PER SHARE - Diluted
Net income $ 0.70 $ 0.24 $ 0.75 $ 0.30
Net income attributable to Hyatt Hotels Corporation $ 0.70 $ 0.24 $ 0.75 $ 0.30
 
Basic share counts 159.8 165.9 160.9 165.7
Diluted share counts 160.2 166.0 161.3 166.0

(a) The Company includes in total revenues the reimbursement of costs incurred on behalf of managed hotel property owners with no added margin and includes in direct and selling, general, and administrative expenses these reimbursed costs. These costs relate primarily to payroll costs where the Company is the employer.

Page 2

Hyatt Hotels Corporation
Reconciliation of Non-GAAP to GAAP Measure: Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation
The table below provides a reconciliation of consolidated Adjusted EBITDA to EBITDA and a reconciliation of EBITDA to net income attributable to Hyatt Hotels Corporation. Adjusted EBITDA, as the Company defines it, is a non-GAAP financial measure. See Definitions for our definition of Adjusted EBITDA and why we present it.

(in millions)

 
    Three Months Ended     Six Months Ended
June 30, June 30,
2013   2012 2013   2012
Adjusted EBITDA $ 212 $ 180 $ 343 $ 305
Equity losses from unconsolidated hospitality ventures (5 ) — (6 ) (1 )
Asset impairments (3 ) — (11 ) —
Gains on sales of real estate 99 — 99 —
Other income (loss), net (16 ) 5 (14 ) 17
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA (19 ) (22 ) (35 ) (40 )
EBITDA $ 268 $ 163 $ 376 $ 281
Depreciation and amortization (85 ) (89 ) (173 ) (175 )
Interest expense (16 ) (17 ) (33 ) (35 )
Provision for income taxes (55 ) (18 ) (50 ) (22 )
Net income attributable to Hyatt Hotels Corporation $ 112   $ 39   $ 120   $ 49  
 
Page 3
Hyatt Hotels Corporation
Reconciliation of Non-GAAP to GAAP Measure: Summary of Special Items - Three Months Ended June 30, 2013 and 2012

The following table represents a reconciliation of net income attributable to Hyatt Hotels Corporation, adjusted for special items, to net income attributable to Hyatt Hotels Corporation presented for the three months ended June 30, 2013 and 2012, respectively.

(in millions, except per share amounts)

 
    Location on Condensed Consolidated     Three Months Ended
Statements of Income June 30,
2013     2012
Net income attributable to Hyatt Hotels Corporation $ 112   $ 39  
Earnings per share $ 0.70   $ 0.24  
Special items
Gains on sales of real estate (a) Gains on sales of real estate (99 ) —
Gain on sale of artwork Other income (loss), net (29 ) —
Asset impairments (b) Asset impairments 3 —
Charitable contribution to Hyatt Thrive Foundation (c) Other income (loss), net 20 —
Debt settlement costs (d) Other income (loss), net 35 —
Marketable securities (e) Other income (loss), net — (9 )
Realignment costs (f) Other income (loss), net — 7
Transaction costs (g) Other income (loss), net — 1
Unconsolidated hospitality ventures impairment (h) Equity losses from unconsolidated hospitality ventures —   1  
Total special items - pre-tax (70 ) —
Income tax (provision) benefit for special items Provision for income taxes 28   —  
Total special items - after-tax (42 ) —  
Special items impact per share $ (0.27 ) $ —  
Net income attributable to Hyatt Hotels Corporation, adjusted for special items $ 70   $ 39  
Earnings per share, adjusted for special items $ 0.43   $ 0.24  
(a)     Gains on sales of real estate - Represents gains on the sale of Hyatt Fisherman's Wharf and Hyatt Santa Barbara, which were sold subject to franchise agreements.
(b) Asset impairments - We recorded a $3 million impairment charge related to a property that was classified as held for sale at June 30, 2013.
(c)

Charitable contribution to Hyatt Thrive Foundation - We committed to fund $20 million to a charitable foundation that we recently formed with the intent that the foundation will fund charitable activities over time.

(d) Debt settlement costs - We incurred $35 million in debt settlement costs for the redemption of our 2015 Notes and the tender of a portion of our 2019 Notes.
(e) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs.
(f) Realignment costs - Represents costs incurred as part of our Company's realignment in 2012.
(g) Transaction costs - We incurred $1 million in transaction costs to acquire the Hyatt Regency Mexico City in 2012.
(h) Unconsolidated hospitality ventures impairment - During the three months ended June 30, 2012, we recorded an impairment charge of $1 million related to an investment in a vacation ownership property.
 
Page 4
Hyatt Hotels Corporation
Summary of Special Items - Six Months Ended June 30, 2013 and 2012

The following table represents a reconciliation of net income attributable to Hyatt Hotels Corporation, adjusted for special items, to net income attributable to Hyatt Hotels Corporation presented for the six months ended June 30, 2013 and 2012, respectively.

(in millions, except per share amounts)

 
  Location on Condensed Consolidated   Six Months Ended
Statements of Income June 30,
2013   2012
Net income attributable to Hyatt Hotels Corporation $ 120   $ 49  
Earnings per share $ 0.75   $ 0.30  
Special items
Gains on sales of real estate (a) Gains on sales of real estate (99 ) —
Gain on sale of artwork Other income (loss), net (29 ) —
Foreign currency translation loss on sale of joint venture (b) Equity losses from unconsolidated hospitality ventures 2 —
Asset impairments (c) Asset impairments 11 —
Charitable contribution to Hyatt Thrive Foundation (d) Other income (loss), net 20 —
Debt settlement costs (e) Other income (loss), net 35 —
Marketable securities (f) Other income (loss), net — (17 )
Realignment costs (g) Other income (loss), net — 7
Transaction costs (h) Other income (loss), net — 1
Unconsolidated hospitality ventures impairment (i) Equity losses from unconsolidated hospitality ventures —   1  
Total special items - pre-tax (60 ) (8 )
Income tax (provision) benefit for special items Provision for income taxes 24   3  
Total special items - after-tax (36 ) (5 )
Special items impact per share $ (0.23 ) $ (0.03 )
Net income attributable to Hyatt Hotels Corporation, adjusted for special items $ 84   $ 44  
Earnings per share, adjusted for special items $ 0.52   $ 0.27  
(a)     Gains on sales of real estate - Represents gains on the sale of Hyatt Fisherman's Wharf and Hyatt Santa Barbara, which were sold subject to franchise agreements.
(b) Foreign currency translation loss on sale of joint venture - During the six months ended June 30, 2013, we had a foreign currency translation loss of $2 million as a result of the sale of our interest in a foreign joint venture.
(c) Asset impairments - We recorded a $3 million impairment charge related to a property that was classified as held for sale at June 30, 2013. In conjunction with our regular assessment of impairment indicators, we identified property and equipment whose carrying values exceeded its fair value, and as a result, we recorded an $8 million impairment charge during the first quarter of 2013.
(d)

Charitable contribution to Hyatt Thrive Foundation - We committed to fund $20 million to a charitable foundation that we recently formed with the intent that the foundation will fund charitable activities over time.

(e) Debt settlement costs - We incurred $35 million in debt settlement costs for the redemption of our 2015 Notes and the tender of a portion of our 2019 Notes.
(f) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs.
(g) Realignment costs - Represents costs incurred as part of our Company's realignment in 2012.
(h) Transaction costs - We incurred $1 million in transaction costs to acquire the Hyatt Regency Mexico City in 2012.
(i) Unconsolidated hospitality ventures impairment - During the six months ended June 30, 2012, we recorded an impairment charge of $1 million related to an investment in a vacation ownership property.
 
Page 5
Hyatt Hotels Corporation
Segment Financial Summary

(in millions)

 
  Three Months Ended       Six Months Ended    
June 30, June 30,
2013   2012 Change ($) Change (%) 2013   2012 Change ($) Change (%)
Revenue
Owned and leased $ 572 $ 528 $ 44 8.3 % $ 1,064 $ 1,001 $ 63 6.3 %
Americas 75 69 6 8.7 % 139 133 6 4.5 %
ASPAC 22 21 1 4.8 % 41 43 (2 ) (4.7 )%
EAME/SW Asia 28   16   12   75.0 % 43   31   12   38.7 %
Total management and franchising 125 106 19 17.9 % 223 207 16 7.7 %
Corporate and other 21 20 1 5.0 % 41 37 4 10.8 %
Other revenues from managed properties 403 386 17 4.4 % 791 775 16 2.1 %
Eliminations (29 ) (26 ) (3 ) (11.5 )% (52 ) (48 ) (4 ) (8.3 )%
Total revenues $ 1,092   $ 1,014   $ 78   7.7 % $ 2,067   $ 1,972   $ 95   4.8 %
 
Adjusted EBITDA
Owned and leased $ 126 $ 110 $ 16 14.5 % $ 205 $ 185 $ 20 10.8 %
Pro rata share of unconsolidated hospitality ventures 19   22   (3 ) (13.6 )% 35   40   (5 ) (12.5 )%
Total owned and leased 145 132 13 9.8 % 240 225 15 6.7 %
Americas management and franchising 62 54 8 14.8 % 110 100 10 10.0 %
ASPAC management and franchising 14 11 3 27.3 % 23 22 1 4.5 %
EAME/SW Asia management 20 8 12 150.0 % 28 14 14 100.0 %
Corporate and other (29 ) (25 ) (4 ) (16.0 )% (58 ) (56 ) (2 ) (3.6 )%
Adjusted EBITDA $ 212   $ 180   $ 32   17.8 % $ 343   $ 305   $ 38   12.5 %
 

Page 6

Hyatt Hotels Corporation
Hotel Chain Statistics
Comparable Locations
 
          Three Months Ended             Six Months Ended        
June 30, June 30,
    Change (in     Change (in
2013 2012 Change constant $) 2013 2012 Change constant $)
Owned and leased hotels (# hotels) (a)
Full service (42)
ADR $ 213.96 $ 200.18 6.9 % 6.8 % $ 212.18 $ 200.87 5.6 % 5.5 %
Occupancy 78.7 % 78.5 % 0.2 % pts 74.3 % 74.3 % — % pts
RevPAR $ 168.28 $ 157.23 7.0 % 6.9 % $ 157.63 $ 149.32 5.6 % 5.5 %
 
Select service (53)
ADR $ 113.93 $ 108.29 5.2 % 5.2 % $ 111.50 $ 106.08 5.1 % 5.1 %
Occupancy 82.8 % 80.9 % 1.9 % pts 78.0 % 76.4 % 1.6 % pts
RevPAR $ 94.30 $ 87.66 7.6 % 7.6 % $ 86.91 $ 81.01 7.3 % 7.3 %
 
Comparable owned and leased hotels (95)
ADR $ 184.17 $ 173.22 6.3 % 6.3 % $ 182.26 $ 173.12 5.3 % 5.2 %
Occupancy 79.8 % 79.2 % 0.6 % pts 75.3 % 74.9 % 0.4 % pts
RevPAR $ 147.03 $ 137.25 7.1 % 7.1 % $ 137.32 $ 129.7 5.9 % 5.8 %
 
Managed and franchised hotels (# hotels; includes owned and leased hotels)
Americas
Full service (137)
ADR $ 181.42 $ 173.54 4.5 % 4.7 % $ 179.76 $ 172.65 4.1 % 4.3 %
Occupancy 78.2 % 77.5 % 0.7 % pts 73.9 % 73.9 % — % pts
RevPAR $ 141.94 $ 134.56 5.5 % 5.6 % $ 132.88 $ 127.58 4.2 % 4.3 %
 
Select service (214)
ADR $ 108.85 $ 104.57 4.1 % 4.1 % $ 108.47 $ 104.32 4.0 % 4.0 %
Occupancy 80.1 % 78.6 % 1.5 % pts 76.4 % 74.8 % 1.6 % pts
RevPAR $ 87.15 $ 82.18 6.0 % 6.0 % $ 82.84 $ 77.98 6.2 % 6.2 %
 
ASPAC
Full service (48)
ADR $ 228.15 $ 237.41 (3.9 )% (1.1 )% $ 227.96 $ 236.85 (3.8 )% (1.2 )%
Occupancy 67.3 % 67.1 % 0.2 % pts 66.0 % 65.5 % 0.5 % pts
RevPAR $ 153.61 $ 159.24 (3.5 )% (0.7 )% $ 150.36 $ 155.13 (3.1 )% (0.5 )%
 
EAME/SW Asia
Full service (50)
ADR $ 229.69 $ 237.32 (3.2 )% (2.5 )% $ 233.81 $ 240.79 (2.9 )% (1.7 )%
Occupancy 66.5 % 61.1 % 5.4 % pts 65.0 % 60.1 % 4.9 % pts
RevPAR $ 152.75 $ 145.10 5.3 % 6.1 % $ 151.95 $ 144.82 4.9 % 6.2 %
 
Comparable systemwide hotels (449)
ADR $ 175.22 $ 171.60 2.1 % 2.8 % $ 174.92 $ 171.73 1.9 % 2.6 %
Occupancy 75.7 % 74.4 % 1.3 % pts 72.3 % 71.3 % 1.0 % pts
RevPAR $ 132.69 $ 127.73 3.9 % 4.6 % $ 126.46 $ 122.52 3.2 % 4.0 %
 

(a) Owned and leased hotel figures do not include unconsolidated hospitality ventures.

 
Page 7
Hyatt Hotels Corporation
Hotel Brand Statistics
Comparable Locations
 
    Three Months Ended      

Six Months Ended

   
June 30,

June 30,

  Change (in   Change (in
2013 2012 Change constant $) 2013 2012 Change constant $)
 
Systemwide (# hotels; includes owned, leased, managed and franchised hotels)
 
Park Hyatt (27)
ADR $ 340.15 $ 346.68 (1.9 )% (0.5 )% $ 347.24 $ 352.58 (1.5 )% — %
Occupancy 66.6 % 61.2 % 5.4 % pts 65.1 % 60.7 % 4.4 % pts
RevPAR $ 226.67 $ 212.23 6.8 % 8.3 % $ 226.21 $ 214.03 5.7 % 7.4 %
 
Andaz (8)
ADR $ 284.88 $ 282.61 0.8 % 1.3 % $ 273.36 $ 271.73 0.6 % 1.0 %
Occupancy 80.9 % 81.9 % (1.0 )% pts 75.2 % 75.0 % 0.2 % pts
RevPAR $ 230.44 $ 231.43 (0.4 )% 0.1 % $ 205.64 $ 203.73 0.9 % 1.4 %
 
Grand Hyatt (36)
ADR $ 242.30 $ 239.95 1.0 % 2.1 % $ 240.75 $ 239.16 0.7 % 1.8 %
Occupancy 75.4 % 74.6 % 0.8 % pts 73.3 % 73.3 % — % pts
RevPAR $ 182.81 $ 178.97 2.1 % 3.2 % $ 176.53 $ 175.42 0.6 % 1.8 %
 
Hyatt (25)
ADR $ 170.40 $ 163.40 4.3 % 4.2 % $ 168.71 $ 161.02 4.8 % 4.7 %
Occupancy 78.2 % 77.8 % 0.4 % pts 72.8 % 72.5 % 0.3 % pts
RevPAR $ 133.33 $ 127.11 4.9 % 4.8 % $ 122.80 $ 116.78 5.2 % 5.1 %
 
Hyatt Regency (139)
ADR $ 169.55 $ 166.23 2.0 % 2.7 % $ 168.87 $ 165.76 1.9 % 2.6 %
Occupancy 74.4 % 73.2 % 1.2 % pts 70.7 % 70.0 % 0.7 % pts
RevPAR $ 126.09 $ 121.76 3.6 % 4.3 % $ 119.41 $ 115.96 3.0 % 3.7 %
 
Hyatt Place (161)
ADR $ 103.21 $ 99.11 4.1 % 4.1 % $ 102.65 $ 98.80 3.9 % 3.9 %
Occupancy 78.8 % 77.6 % 1.2 % pts 75.3 % 74.0 % 1.3 % pts
RevPAR $ 81.35 $ 76.93 5.7 % 5.7 % $ 77.26 $ 73.13 5.6 % 5.6 %
 
Hyatt House (53)
ADR $ 123.42 $ 118.85 3.9 % 3.9 % $ 123.58 $ 118.85 4.0 % 4.0 %
Occupancy 83.4 % 81.2 % 2.2 % pts 79.4 % 76.8 % 2.6 % pts
RevPAR $ 102.99 $ 96.55 6.7 % 6.7 % $ 98.10 $ 91.23 7.5 % 7.5 %
 
Page 8
Hyatt Hotels Corporation
Fee Summary

(in millions)

 
  Three Months Ended       Six Months Ended    
June 30, June 30,
2013   2012 Change ($) Change (%) 2013   2012 Change ($) Change (%)
Fees
Base management fees $ 43 $ 40 $ 3 7.5 % $ 80 $ 78 $ 2 2.6 %
Incentive management fees 35 26 9 34.6 % 60 52 8 15.4 %
Franchise fees and other revenue 18   14   4   28.6 % 31   29   2   6.9 %
Total fees $ 96   $ 80   $ 16   20.0 % $ 171   $ 159   $ 12   7.5 %
 

Page 9

Hyatt Hotels Corporation
Reconciliation of Non-GAAP to GAAP Measure: Adjusted Selling, General, and Administrative Expenses to Selling, General, and Administrative Expenses
Results of operations as presented on condensed consolidated statements of income include the impact of expenses recognized with respect to employee benefit programs funded through rabbi trusts. Certain of these expenses are recognized in selling, general, and administrative expenses and are completely offset by the corresponding net gains and interest income from marketable securities held to fund operating programs, thus having no net impact to our earnings. Below is a reconciliation of this account excluding the impact of our rabbi trust investments.

(in millions)

 
  Three Months Ended       Six Months Ended    
June 30, June 30,
2013   2012 Change ($) Change (%) 2013   2012 Change ($) Change (%)
Adjusted selling, general, and administrative expenses (a) $ 75 $ 74 $ 1 1.4 % $ 152 $ 157 $ (5 ) (3.2 )%
Rabbi trust impact —   (4 ) 4   100.0 % 7   6   1   16.7 %
Selling, general, and administrative expenses $ 75   $ 70   $ 5   7.1 % $ 159   $ 163   $ (4 ) (2.5 )%
(a) Segment breakdown for adjusted selling, general, and administrative expenses.
      Three Months Ended       Six Months Ended    
June 30, June 30,
2013   2012 Change ($) Change (%) 2013   2012 Change ($) Change (%)
Americas management and franchising $ 13 $ 14 $ (1 ) (7.1 )% $ 28 $ 32 $ (4 ) (12.5 )%
ASPAC management and franchising 8 10 (2 ) (20.0 )% 17 20 (3 ) (15.0 )%
EAME/SW Asia management 8 8 — — % 16 18 (2 ) (11.1 )%
Owned and leased 3 3 — — % 6 6 — — %
Corporate and other (1) 43   39   4   10.3 % 85   81   4   4.9 %
Adjusted selling, general, and administrative expenses $ 75   $ 74   $ 1   1.4 % $ 152   $ 157   $ (5 ) (3.2 )%
(1) Corporate and other includes vacation ownership expenses of $7 million for both the three months ended June 30, 2013 and 2012, respectively, and $15 million for both the six months ended June 30, 2013 and 2012, respectively.
 
Page 10
Hyatt Hotels Corporation
Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and Leased Hotel Operating Margin to Owned and Leased Hotel Operating Margin

Below is a breakdown of consolidated owned and leased hotels revenues and expenses, as used in calculating comparable owned and leased hotel operating margin percentages. Results of operations as presented on the condensed consolidated statements of income include the impact of expenses recognized with respect to employee benefit programs funded through rabbi trusts. Certain of these expenses are recognized in owned and leased hotels expenses and are completely offset by the corresponding net gains and interest income from marketable securities held to fund operating programs, thus having no net impact to our earnings. Below is a reconciliation of this account excluding the impact of our rabbi trusts and excluding the impact of non-comparable hotels.

(in millions)

 
  Three Months Ended       Six Months Ended    
June 30, June 30,
2013   2012 Change ($) Change (%) 2013   2012 Change ($) Change (%)
Revenue
Comparable owned and leased hotels $ 536 $ 501 $ 35 7.0 % $ 999 $ 956 $ 43 4.5 %
Non-comparable hotels 36   27   9   33.3 % 65   45   20   44.4 %
Owned and leased hotels revenue $ 572   $ 528   $ 44   8.3 % $ 1,064   $ 1,001   $ 63   6.3 %
 
Expenses
Comparable owned and leased hotels $ 386 $ 372 $ 14 3.8 % $ 751 $ 732 $ 19 2.6 %
Non-comparable hotels 26 18 8 44.4 % 49 31 18 58.1 %
Rabbi trust 1   (1 ) 2   200.0 % 4   3   1   33.3 %
Owned and leased hotels expense $ 413   $ 389   $ 24   6.2 % $ 804   $ 766   $ 38   5.0 %
 
Owned and leased hotel operating margin percentage 27.8 % 26.3 % 1.5 % 24.4 % 23.5 % 0.9 %
 
Comparable owned and leased hotel operating margin percentage 28.0 % 25.7 % 2.3 % 24.8 % 23.4 % 1.4 %
 
Page 11
Hyatt Hotels Corporation

Net gains (losses) and interest income from marketable securities held to fund operating programs

The table below provides a reconciliation of net gains and interest income from marketable securities held to fund operating programs, all of which are completely offset within other line items of our condensed consolidated statements of income, thus having no net impact to our earnings. The gains or losses on securities held in rabbi trusts are offset to our owned and leased hotels expense for our hotel staff and selling, general, and administrative expenses for our corporate staff and personnel supporting our business segments. The gains or losses on securities held to fund our Hyatt Gold Passport program for our owned and leased hotels are offset by corresponding changes to our owned and leased hotel revenues. The table below shows the amounts recorded to the respective offsetting account.

(in millions)

 
  Three Months Ended       Six Months Ended    
June 30, June 30,
2013   2012 Change ($) Change (%) 2013   2012 Change ($) Change (%)
Rabbi trust impact allocated to selling, general, and administrative expenses $ — $ (4 ) $ 4 100.0 % $ 7 $ 6 $ 1 16.7 %
Rabbi trust impact allocated to owned and leased hotels expense 1 (1 ) 2 200.0 % 4 3 1 33.3 %
Net gains (losses) and interest income from marketable securities held to fund our Gold Passport program allocated to owned and leased hotels revenue (1 ) 1   (2 ) (200.0 )% (1 ) 1   (2 ) (200.0 )%
Net gains (losses) and interest income from marketable securities held to fund operating programs $ —   $ (4 ) $ 4   100.0 % $ 10   $ 10   $ —   — %
 

Page 12

Hyatt Hotels Corporation
Capital Expenditures and Investment Spending Summary

($ in millions)

 
    Three Months Ended     Six Months Ended
June 30, June 30,
2013   2012 2013   2012
Capital Expenditures
Maintenance $ 17 $ 20 $ 31 $ 43
Enhancements to existing properties

 

16

 

32

 

36

 

84

Investment in new properties

 

16

 

 

10

 

 

25

 

 

30

Total $ 49   $ 62   $ 92   $ 157
 
 
Three Months Ended Six Months Ended
June 30, June 30,
Investment Spending 2013 2012 2013 2012
Acquisitions, net of cash acquired

$

—

$

179

$

85

$

179

Investments (equity, debt and other)

 

37

 

 

78

 

 

73

 

 

108

Total

$

37   $ 257   $ 158   $ 287
 

Page 13

Hyatt Hotels Corporation
Properties and Rooms / Units by Geography
 
      June 30, 2013   March 31, 2013   December 31, 2012   QTD Change   YTD Change
Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units
Owned and leased hotels (a)
Full service hotels
United States 30 14,216 32 14,724 31 14,536 (2 ) (508 ) (1 ) (320 )
Other Americas 4 2,102 4 2,102 4 2,102 0 0 0 0
ASPAC 1 601 1 601 1 601 0 0 0 0
EAME/SW Asia 11 2,438 11 2,438 11 2,441 0 0 0 (3 )
Select service hotels
United States 53   7,242   53   7,243   56   7,669   0   (1 ) (3 ) (427 )
Total owned and leased hotels 99   26,599   101   27,108   103   27,349   (2 ) (509 ) (4 ) (750 )

Managed and franchised hotels (includes owned and leased hotels)

  June 30, 2013   March 31, 2013   December 31, 2012   QTD Change   YTD Change
Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units
Americas

Full service hotels

United States managed 103 54,873 105 54,910 104 54,722 (2 ) (37 ) (1 ) 151
Other Americas managed 15 5,800 15 5,802 15 5,802 0 (2 ) 0 (2 )
Franchised 28   8,511   24   7,496   24   7,515   4   1,015   4   996  
Subtotal 146 69,184 144 68,208 143 68,039 2 976 3 1,145
 
Select service hotels
United States managed 92 12,329 92 12,330 96 12,929 0 (1 ) (4 ) (600 )
Other Americas managed 1 120 1 120 1 120 0 0 0 0
Franchised 140   18,715   135   17,958   128   16,774   5   757   12   1,941  
Subtotal 233 31,164 228 30,408 225 29,823 5 756 8 1,341
 
ASPAC
Full service hotels
ASPAC managed 54 21,049 53 20,746 51 20,016 1 303 3 1,033
ASPAC franchised 2   988   2   988   2   988   0   0   0   0  
Subtotal 56 22,037 55 21,734 53 21,004 1 303 3 1,033
 
EAME/SW Asia
Full service hotels
EAME managed 37 9,802 33 8,079 33 8,084 4 1,723 4 1,718
SW Asia managed 26   7,411   22   6,442   20   6,014   4   969   6   1,397  
Subtotal 63 17,213 55 14,521 53 14,098 8 2,692 10 3,115
 
Select service hotels
SW Asia managed 1   115   1   115   1   115   0   0   0   0  
Subtotal 1 115 1 115 1 115 0 0 0 0
 
Total managed and franchised hotels 499   139,713   483   134,986   475   133,079   16   4,727   24   6,634  
 
Vacation ownership 15 963 15 963 15 963 0 0 0 0
Residential 10 1,102 10 1,102 10 1,102 0 0 0 0
                   
Total properties and rooms/units 524   141,778   508   137,051   500   135,144   16   4,727   24   6,634  
 

(a) Owned and leased hotel figures do not include unconsolidated hospitality ventures.

 

Page 14

Hyatt Hotels Corporation
Properties and Rooms / Units by Brand
 
  June 30, 2013   March 31, 2013   December 31, 2012   QTD Change   YTD Change

Brand

Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units Properties   Rooms/Units
Park Hyatt 31 6,270 31 6,270 30 6,014 0 0 1 256
Andaz 9 1,820 9 1,823 9 1,823 0 (3 ) 0 (3 )
Hyatt 37 8,314 33 7,824 28 6,948 4 490 9 1,366
Grand Hyatt 40 22,245 38 21,513 38 21,515 2 732 2 730
Hyatt Regency 148 69,785 143 67,033 144 66,841 5 2,752 4 2,944
Hyatt Place 177 23,261 175 22,920 172 22,335 2 341 5 926
Hyatt House 57 8,018 54 7,603 54 7,603 3 415 3 415
Vacation Ownership and Residential 25   2,065   25   2,065   25   2,065   0   0   0   0  
Total 524   141,778   508   137,051   500   135,144   16   4,727   24   6,634  
 

Source: Hyatt Hotels Corporation

Investors:
Hyatt Hotels Corporation
Atish Shah, 312.780.5427
atish.shah@hyatt.com
or
Media:
Hyatt Hotels Corporation
Farley Kern, 312.780.5506
farley.kern@hyatt.com

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of September 30, 2023, the Company’s portfolio included more than 1,300 hotels and all-inclusive properties in 76 countries across six continents. The Company's offering includes brands in the Timeless Collection, including Park Hyatt®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt Place®, Hyatt House®, Hyatt Studios, and UrCove; the Boundless Collection, including Miraval®, Alila®, Andaz®, Thompson Hotels®, Dream® Hotels, Hyatt Centric®, and Caption by Hyatt®; the Independent Collection, including The Unbound Collection by Hyatt®, Destination by Hyatt®, and JdV by Hyatt®; and the Inclusive Collection, including Impression by Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry® Wellness & Spa Resorts, Secrets® Resorts & Spas, Breathless Resorts & Spas®, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.

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