CHICAGO--(BUSINESS WIRE)--Oct. 30, 2013--
Hyatt Hotels Corporation (NYSE: H) today reported third quarter 2013
financial results as follows:
-
Adjusted EBITDA was $159 million in the third quarter of 2013 compared
to $154 million in the third quarter of 2012, an increase of 3.2%.
-
Adjusted for special items, net income attributable to Hyatt was $36
million, or $0.23 per share, during the third quarter of 2013 compared
to net income attributable to Hyatt of $30 million, or $0.18 per
share, during the third quarter of 2012.
-
Net income attributable to Hyatt was $55 million, or $0.35 per share,
during the third quarter of 2013 compared to net income attributable
to Hyatt of $23 million, or $0.14 per share, in the third quarter of
2012.
-
Comparable owned and leased hotel RevPAR increased 6.0% (5.8%
excluding the effect of currency) in the third quarter of 2013
compared to the third quarter of 2012.
-
Comparable owned and leased hotel operating margins increased 20 basis
points in the third quarter of 2013 compared to the third quarter of
2012. Owned and leased hotel operating margins decreased 70 basis
points in the third quarter of 2013 compared to the third quarter of
2012.
-
Comparable systemwide RevPAR increased 4.3% (5.6% excluding the effect
of currency) in the third quarter of 2013 compared to the third
quarter of 2012.
-
Comparable U.S. full service hotel RevPAR increased 7.6% in the third
quarter of 2013 compared to the third quarter of 2012. Comparable U.S.
select service hotel RevPAR increased 4.5% in the third quarter of
2013 compared to the third quarter of 2012.
-
Eleven hotels were opened. As of September 30, 2013, the Company's
executed contract base consisted of approximately 215 hotels or
approximately 50,000 rooms.
-
The Company repurchased 702,502 shares of common stock at a weighted
average price of $41.28 per share, for an aggregate purchase price of
approximately $29 million.
-
On October 29, 2013, the Company's Board of Directors authorized the
repurchase of up to an additional $200 million of common stock.
Mark S. Hoplamazian
, president and chief executive officer of Hyatt
Hotels Corporation, said, "In the third quarter, positive demand trends
in the U.S., among both transient and group guests, were accompanied by
challenges in certain international markets, including China and India.
"We continue to be focused on growing fees and increasing margins while
pursuing additional growth opportunities. During the quarter, we opened
eleven hotels, bringing our total for the year to 35, reflecting a
strong, steady pace that demonstrates our balanced approach to growing
our presence in new and attractive markets. Our current base of executed
contracts for new hotels is the largest it has ever been and represents
approximately 40% of our current system size. Among the quarter's
openings was that of the highly anticipated Andaz Maui at Wailea,
marking this distinctive brand's debut into the resort segment.
"We have made significant investments in 2013 to position the Company
for growth, including an investment in Playa Hotels & Resorts which will
enable us to enter the rapidly growing all-inclusive resort segment and
to debut two newly created brands,
Hyatt Ziva
and Hyatt Zilara. We
expect to open the first two franchised resorts by year-end and
anticipate that our investment in Playa and our entry into this segment
will provide us with a compelling platform for growth. Earlier this
month, we completed our largest single hotel acquisition and conversion
to date. The Hyatt Regency Orlando, a 1,641-room award-winning,
strategically located hotel will further enhance our position in the
critical group market and is expected to generate strong earnings and
solid returns over the long-term. These investments in our future growth
were funded with cash, generated in part through asset recycling. This
year we have sold six full service and three select service hotels at
strong pricing while maintaining brand presence through management and
franchise agreements.
"In addition to using capital to fuel growth, and consistent with our
balanced, long-term approach to creating value, we continue to return
capital to shareholders. Our Board of Directors recently authorized up
to $200 million of additional share repurchases."
Owned and Leased Hotels Segment
Total segment Adjusted EBITDA decreased 3.5% in the third quarter of
2013 compared to the same period in 2012.
Owned and leased Adjusted EBITDA increased 1.0% in the third quarter of
2013 compared to the same period in 2012 and was negatively impacted by
approximately $5 million of portfolio changes related to dispositions,
acquisitions and openings. See the table on page 15 of the accompanying
schedules for a detailed list of portfolio changes and the
year-over-year net impact to third quarter owned and leased Adjusted
EBITDA.
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
decreased 27.8% in the third quarter of 2013 compared to the same period
in 2012. The decrease was primarily due to portfolio changes related to
openings and dispositions, including approximately $2 million related to
the net impact of portfolio changes since the third quarter of 2012 and
approximately $3 million related to pre-opening expenses and operating
ramp-up at Andaz Maui at Wailea.
Revenue increased 3.6% in the third quarter of 2013 compared to the same
period in 2012. Owned and leased hotel expenses increased 4.5% in the
third quarter of 2013 compared to the same period in 2012.
RevPAR for comparable owned and leased hotels increased 6.0% (5.8%
excluding the effect of currency) in the third quarter of 2013 compared
to the same period in 2012. Occupancy improved 100 basis points and ADR
increased 4.8% (4.5% excluding the effect of currency) compared to the
same period in 2012.
Comparable hotel revenue increased 5.8% in the third quarter of 2013
compared to the same period in 2012. Comparable hotel expenses increased
5.5% in the third 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.
Comparable owned and leased hotel operating margins increased 20 basis
points in the third quarter of 2013 compared to the third quarter of
2012. Comparable owned and leased hotel operating margins for hotels in
the Americas increased 110 basis points in the third quarter of 2013
compared to the third quarter of 2012. Comparable owned and leased hotel
operating margins in the Americas were negatively impacted by higher
benefit costs, rent increases at two hotels and higher property taxes
partially offset by a non-recurring lease termination fee. Comparable
owned and leased hotel operating margins in ASPAC and EAME/SW Asia
decreased 230 basis points in the third quarter of 2013 compared to the
third quarter of 2012. Comparable owned and leased hotel operating
margins in ASPAC and EAME/SW Asia were negatively impacted by weaker
market conditions in Seoul and a difficult comparison in London due to
the Summer Olympics last year.
The following four hotels were removed from the owned and leased
portfolio as they were sold during the third quarter:
-
Hyatt Regency Denver Tech Center (451 rooms)
-
Andaz Napa (141 rooms)
-
Andaz Savannah (151 rooms)
-
Hyatt Regency Santa Clara (501 rooms)
The Company entered into a management or franchise agreement for each
hotel listed above and therefore the hotels remain included within the
Hyatt system.
Management and Franchise Fees
Total fee revenue increased 13.2% to $77 million in the third quarter of
2013 compared to the same period in 2012. Base management fees increased
10.8% to $41 million in the third quarter of 2013 compared to the same
period in 2012, primarily due to strong RevPAR performance in the
Americas and newly converted hotels in EAME/SW Asia. Incentive
management fees increased 11.1% to $20 million in the third quarter of
2013 compared to the same period in 2012 and were primarily driven by
the contribution of newly converted hotels in EAME/SW Asia. Incentive
management fees from newly converted hotels in EAME/SW Asia were
approximately $3 million in the third quarter of 2013, which was below
the Company's expectations. Franchise fees and other revenue increased
23.1% to $16 million in the third quarter of 2013 compared to the same
period in 2012, primarily due to new hotels and hotels recently
converted from managed to franchised.
Americas Management and Franchising Segment
Adjusted EBITDA increased 6.1% in the third quarter of 2013 compared to
the same period in 2012.
RevPAR for comparable Americas full service hotels increased 7.3% (7.7%
excluding the effect of currency) in the third quarter of 2013 compared
to the same period in 2012. Occupancy increased 250 basis points and ADR
increased 3.9% (4.3% excluding the effect of currency) compared to the
same period in 2012.
Group rooms revenue at comparable U.S. full service hotels increased
6.9% in the third quarter of 2013 compared to the same period in 2012.
Group room nights increased 3.8% and group ADR increased 3.0% in the
third quarter of 2013 compared to the same period in 2012.
Transient rooms revenue at comparable U.S. full service hotels increased
8.7% in the third quarter of 2013 compared to the same period in 2012.
Transient room nights increased 4.4% and transient ADR increased 4.2% in
the third quarter of 2013 compared to the same period in 2012.
RevPAR for comparable Americas select service hotels increased 4.5% in
the third quarter of 2013 compared to the same period in 2012. Occupancy
increased 50 basis points and ADR increased 3.8% compared to the same
period in 2012.
Revenue from management and franchise fees increased 10.2% in the third
quarter of 2013 compared to the same period in 2012.
The following eight hotels were added to the portfolio during the third
quarter:
-
Andaz Maui at Wailea (managed, 297 rooms)
-
Hyatt Atlanta Midtown (franchised, 194 rooms)
-
Hyatt Place Charlottesville (franchised, 137 rooms)
-
Hyatt Place Chicago-South/University Medical Center (franchised, 131
rooms)
-
Hyatt Place Detroit/Novi (franchised, 126 rooms)
-
Hyatt Place Salt Lake City/Cottonwood (managed, 124 rooms)
-
Hyatt Place Dewey Beach (franchised, 110 rooms)
-
Hyatt House Raleigh North Hills
(franchised, 137 rooms)
Southeast Asia, China, Australia, South Korea and Japan (ASPAC)
Management and Franchising Segment
Adjusted EBITDA was flat in the third quarter of 2013 compared to the
same period in 2012.
RevPAR for comparable ASPAC hotels decreased 3.0% (increased 2.1%
excluding the effect of currency) in the third quarter of 2013 compared
to the same period in 2012. Occupancy increased 110 basis points and ADR
decreased 4.5% (increased 0.4% excluding the effect of currency)
compared to the same period in 2012. RevPAR was negatively impacted by
weaker demand coupled with increased supply in China.
Revenue from management and franchise fees decreased 10.5% in the third
quarter of 2013 compared to the same period in 2012.
The following three hotels were added to the portfolio during the third
quarter:
-
Park Hyatt Changbaishan, China (managed, 163 rooms)
-
Park Hyatt Siem Reap
, Cambodia (managed, 104 rooms)
-
Hyatt Regency Changbaishan, China (managed, 277 rooms)
Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia)
Management Segment
Adjusted EBITDA increased 120.0% in the third quarter of 2013 compared
to the same period in 2012. The increase was primarily due to newly
converted hotels.
RevPAR for comparable EAME/SW Asia hotels increased 1.2% (2.4% excluding
the effect of currency) in the third quarter of 2013 compared to the
same period in 2012. Occupancy increased 210 basis points and ADR
decreased 2.4% (1.3% excluding the effect of currency) compared to the
same period in 2012. RevPAR was negatively impacted by lower demand
levels in London in the third quarter of 2013 compared to the same
period in 2012, as the third quarter of 2012 benefited from the Summer
Olympics.
Revenue from management and franchise fees increased 35.7% in the third
quarter of 2013 compared to the same period in 2012. The increase was
primarily due to newly converted hotels.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased 2.7% in the
third quarter of 2013 compared to the same period in 2012. Adjusted
selling, general, and administrative expenses decreased 2.9% in the
third 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
Eleven hotels were added in the third quarter of 2013, each of which is
listed above.
The Company expects that a sizable number of new properties will be
opened under various Company brands in the future. As of September 30,
2013 this effort was underscored by executed management or franchise
contracts for approximately 215 hotels (or approximately 50,000 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 third quarter of 2013, the Company repurchased 702,502 shares
of common stock at a weighted average price of $41.28 per share, for an
aggregate purchase price of approximately $29 million. On October 29,
2013, the Company's Board of Directors authorized the repurchase of up
to an additional $200 million of the Company's common stock. The Company
currently has approximately $211 million remaining under its repurchase
authorization. These repurchases may be made from time to time in the
open market, in privately negotiated transactions, or otherwise,
including pursuant to a Rule 10b5-1 plan, at prices that the Company
deems appropriate and subject to market conditions, applicable law and
other factors deemed relevant in the Company’s sole discretion. The
Company is not obligated to repurchase any dollar amount or any number
of shares of common stock, and repurchases may be suspended or
discontinued at any time. The Company intends to pay for shares
repurchased with cash from its balance sheet.
CORPORATE FINANCE / ASSET RECYCLING
During the quarter, the Company:
-
Sold Andaz Napa (141 rooms) and Andaz Savannah (151 rooms) for an
aggregate amount of approximately $115 million.
-
Sold Hyatt Regency Santa Clara (501 rooms) for approximately $93
million. The total sale price may increase to $100 million if certain
performance thresholds are met.
-
Sold Hyatt Regency Denver Tech Center (451 rooms) for approximately
$60 million.
-
Entered the all-inclusive resort segment by investing $325 million in
a joint venture.
During the quarter, an unconsolidated hospitality venture sold the Hyatt
Regency Waikiki. The Company received approximately $6 million for its
equity interest and received a full repayment of a $277 million note
receivable which matured in July 2013. The Company continues to manage
the hotel under a long-term agreement.
Subsequent to the end of the quarter, the Company:
-
Completed the acquisition of The Peabody Orlando for approximately
$717 million in cash and rebranded the hotel as Hyatt Regency Orlando.
-
Received approximately $89 million in cash related to its investment
in Hyatt Regency New Orleans, of which approximately $63 million
reflects a return of capital and approximately $26 million reflects a
preferred return. The Company continues to manage, and also retains a
residual interest in, the hotel.
BALANCE SHEET / OTHER ITEMS
On September 30, 2013, the Company reported the following:
-
Total debt of approximately $1.3 billion.
-
Pro rata share of non-recourse unconsolidated hospitality venture debt
of approximately $737 million compared with approximately $607 million
as of June 30, 2013. The increase was primarily a result of the
inclusion of the Company's pro rata share of non-recourse
unconsolidated hospitality venture debt related to its ownership in
Playa Hotels & Resorts.
-
Cash and cash equivalents, including investments in highly-rated money
market funds and similar investments, of approximately $774 million
and short-term investments of approximately $38 million.
-
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,
including 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 more than $1.2 billion. Investment spending
includes acquisitions, equity investments in joint ventures, debt
investments, contract acquisition costs or other investments.
Investment spending includes the acquisitions of the Driskill Hotel
and the hotel formerly known as The Peabody Orlando and the 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 45 hotels in 2013.
CONFERENCE CALL INFORMATION
The Company will hold an investor conference call today, October 30,
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 857.244.7559, passcode #24735226, 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
October 30, 2013 through midnight on November 6, 2013 by dialing
617.801.6888, passcode #16884833. 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 earnings (losses) from unconsolidated hospitality ventures;
-
asset impairments;
-
gains on sales of real estate;
-
other income (loss), net;
-
depreciation and amortization;
-
interest expense; and
-
(provision) benefit 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, 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 our organizational realignment; loss of key
personnel; hostilities, including future terrorist attacks, or fear of
hostilities that affect travel; travel-related accidents; natural or
man-made disasters such as earthquakes, tsunamis, tornadoes, hurricanes,
floods, oil spills and nuclear incidents; the seasonal and cyclical
nature of the real estate and hospitality businesses; changes in
distribution arrangements, such as through Internet travel
intermediaries; our ability to successfully execute and implement our
common stock repurchase program; 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; the timing of acquisitions and dispositions; 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
September 30, 2013, the Company's worldwide portfolio consisted of 535
properties in 47 countries. For more information, please visit www.hyatt.com.
The term “Hyatt” or “Company” is used in this release for convenience to
refer to Hyatt Hotels Corporation or one or more of its affiliates.
Tables to follow
Hyatt Hotels Corporation
Table of Contents
Financial Information (unaudited)
1.
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Condensed Consolidated Statements of Income
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2.
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Reconciliation of Non-GAAP to GAAP Measure: Adjusted EBITDA to
EBITDA and a Reconciliation of EBITDA to Net Income Attributable to
Hyatt Hotels Corporation
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3.
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Reconciliation of Non-GAAP to GAAP Measure: Summary of Special Items
- Three Months Ended September 30, 2013 and 2012
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4.
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Reconciliation of Non-GAAP to GAAP Measure: Summary of Special Items
- Nine Months Ended September 30, 2013 and 2012
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5.
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Segment Financial Summary
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6.
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Hotel Chain Statistics - Comparable Locations
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7.
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Hotel Brand Statistics - Comparable Locations
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8.
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Fee Summary
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9.
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Reconciliation of Non-GAAP to GAAP Measure: Adjusted Selling,
General, and Administrative Expenses to Selling, General, and
Administrative Expenses
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10.
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Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and
Leased Hotel Operating Margin to Owned and Leased Hotel Operating
Margin
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11.
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Net Gains (Losses) and Interest Income from Marketable Securities
Held to Fund Operating Programs
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12.
|
|
Capital Expenditures and Investment Spending Summary
|
13.
|
|
Properties and Rooms / Units by Geography
|
14.
|
|
Properties and Rooms / Units by Brand
|
15.
|
|
Year-over-Year Net Impact of Portfolio Changes to Owned and Leased
Adjusted EBITDA - Three Months Ended September 30, 2013
|
Page 1
|
Hyatt Hotels Corporation
|
Condensed Consolidated Statements of Income
|
For the Three and Nine Months Ended September 30, 2013 and 2012
|
(in millions, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
Owned and leased hotels
|
|
|
$
|
521
|
|
|
$
|
503
|
|
|
$
|
1,585
|
|
|
$
|
1,504
|
|
Management and franchise fees
|
|
|
77
|
|
|
68
|
|
|
248
|
|
|
227
|
|
Other revenues
|
|
|
22
|
|
|
22
|
|
|
63
|
|
|
59
|
|
Other revenues from managed properties (a)
|
|
|
406
|
|
|
384
|
|
|
1,197
|
|
|
1,159
|
|
Total revenues
|
|
|
1,026
|
|
|
977
|
|
|
3,093
|
|
|
2,949
|
|
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
|
|
|
|
|
|
|
|
|
|
Owned and leased hotels
|
|
|
399
|
|
|
382
|
|
|
1,203
|
|
|
1,148
|
|
Depreciation and amortization
|
|
|
81
|
|
|
88
|
|
|
254
|
|
|
263
|
|
Other direct costs
|
|
|
10
|
|
|
8
|
|
|
25
|
|
|
21
|
|
Selling, general, and administrative
|
|
|
77
|
|
|
75
|
|
|
236
|
|
|
238
|
|
Other costs from managed properties (a)
|
|
|
406
|
|
|
384
|
|
|
1,197
|
|
|
1,159
|
|
Direct and selling, general, and administrative expenses
|
|
|
973
|
|
|
937
|
|
|
2,915
|
|
|
2,829
|
|
Net gains and interest income from marketable securities held to
fund operating programs
|
|
|
12
|
|
|
8
|
|
|
22
|
|
|
18
|
|
Equity earnings (losses) from unconsolidated hospitality ventures
|
|
|
16
|
|
|
(5
|
)
|
|
10
|
|
|
(6
|
)
|
Interest expense
|
|
|
(15
|
)
|
|
(18
|
)
|
|
(48
|
)
|
|
(53
|
)
|
Asset impairments
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
Gains on sales of real estate
|
|
|
26
|
|
|
—
|
|
|
125
|
|
|
—
|
|
Other income (loss), net
|
|
|
2
|
|
|
(5
|
)
|
|
(12
|
)
|
|
12
|
|
INCOME BEFORE INCOME TAXES
|
|
|
94
|
|
|
20
|
|
|
264
|
|
|
91
|
|
(PROVISION) BENEFIT FOR INCOME TAXES
|
|
|
(39
|
)
|
|
3
|
|
|
(89
|
)
|
|
(19
|
)
|
NET INCOME
|
|
|
55
|
|
|
23
|
|
|
175
|
|
|
72
|
|
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
|
|
|
$
|
55
|
|
|
$
|
23
|
|
|
$
|
175
|
|
|
$
|
72
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.35
|
|
|
$
|
0.14
|
|
|
$
|
1.10
|
|
|
$
|
0.44
|
|
Net income attributable to Hyatt Hotels Corporation
|
|
|
$
|
0.35
|
|
|
$
|
0.14
|
|
|
$
|
1.10
|
|
|
$
|
0.44
|
|
EARNINGS PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.35
|
|
|
$
|
0.14
|
|
|
$
|
1.10
|
|
|
$
|
0.44
|
|
Net income attributable to Hyatt Hotels Corporation
|
|
|
$
|
0.35
|
|
|
$
|
0.14
|
|
|
$
|
1.10
|
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
Basic share counts
|
|
|
156.3
|
|
|
165.5
|
|
|
159.3
|
|
|
165.6
|
|
Diluted share counts
|
|
|
156.9
|
|
|
165.8
|
|
|
159.8
|
|
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Adjusted EBITDA
|
|
$
|
159
|
|
|
$
|
154
|
|
|
$
|
502
|
|
|
$
|
459
|
|
Equity earnings (losses) from unconsolidated hospitality ventures
|
|
16
|
|
|
(5
|
)
|
|
10
|
|
|
(6
|
)
|
Asset impairments
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
Gains on sales of real estate
|
|
26
|
|
|
—
|
|
|
125
|
|
|
—
|
|
Other income (loss), net
|
|
2
|
|
|
(5
|
)
|
|
(12
|
)
|
|
12
|
|
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
|
(13
|
)
|
|
(18
|
)
|
|
(48
|
)
|
|
(58
|
)
|
EBITDA
|
|
$
|
190
|
|
|
$
|
126
|
|
|
$
|
566
|
|
|
$
|
407
|
|
Depreciation and amortization
|
|
(81
|
)
|
|
(88
|
)
|
|
(254
|
)
|
|
(263
|
)
|
Interest expense
|
|
(15
|
)
|
|
(18
|
)
|
|
(48
|
)
|
|
(53
|
)
|
(Provision) benefit for income taxes
|
|
(39
|
)
|
|
3
|
|
|
(89
|
)
|
|
(19
|
)
|
Net income attributable to Hyatt Hotels Corporation
|
|
$
|
55
|
|
|
$
|
23
|
|
|
$
|
175
|
|
|
$
|
72
|
|
Page 3
|
Hyatt Hotels Corporation
|
Reconciliation of Non-GAAP to GAAP Measure: Summary of Special
Items - Three Months Ended September 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 September 30, 2013 and 2012,
respectively.
|
(in millions, except per share amounts)
|
|
|
|
Location on Condensed Consolidated
Statements of
Income
|
|
Three Months Ended
September 30,
|
|
|
|
|
2013
|
|
2012
|
Net income attributable to Hyatt Hotels Corporation
|
|
|
|
$
|
55
|
|
|
$
|
23
|
|
Earnings per share
|
|
|
|
$
|
0.35
|
|
|
$
|
0.14
|
|
Special items
|
|
|
|
|
|
|
Gains on sales of real estate (a)
|
|
Gains on sales of real estate
|
|
(26
|
)
|
|
—
|
|
Gain on sale of residential properties (b)
|
|
Equity earnings (losses) from unconsolidated hospitality ventures
|
|
(8
|
)
|
|
—
|
|
Marketable securities (c)
|
|
Other income (loss), net
|
|
(1
|
)
|
|
—
|
|
Transaction costs (d)
|
|
Other income (loss), net
|
|
3
|
|
|
—
|
|
Realignment costs (e)
|
|
Other income (loss), net
|
|
—
|
|
|
12
|
|
Gain on sublease agreement (f)
|
|
Other income (loss), net
|
|
—
|
|
|
(2
|
)
|
Total special items - pre-tax
|
|
|
|
(32
|
)
|
|
10
|
|
Income tax (provision) benefit for special items
|
|
(Provision) benefit for income taxes
|
|
13
|
|
|
(3
|
)
|
Total special items - after-tax
|
|
|
|
(19
|
)
|
|
7
|
|
Special items impact per share
|
|
|
|
$
|
(0.12
|
)
|
|
$
|
0.04
|
|
Net income attributable to Hyatt Hotels Corporation, adjusted for
special items
|
|
|
|
$
|
36
|
|
|
$
|
30
|
|
Earnings per share, adjusted for special items
|
|
|
|
$
|
0.23
|
|
|
$
|
0.18
|
|
(a) Gains on sales of real estate - During the third quarter, we
sold the Hyatt Regency Denver Tech subject to a franchise agreement
for a gain of $26 million.
|
(b) Gain on sale of residential properties - During the third
quarter, we recognized a gain of $8 million in connection with the
sale of residential properties at one of our joint ventures.
|
(c) Marketable securities - Represents (gains) losses on investments
not used to fund operating programs.
|
(d) Transaction costs - We incurred $3 million in transaction costs
to acquire the hotel formerly known as The Peabody Orlando and to
close on our investment in the all-inclusive resort segment during
the three months ended September 30, 2013.
|
(e) Realignment costs - Represents costs incurred as part of our
Company's realignment in 2012.
|
(f) Gain on sublease agreement - During the third quarter of 2012,
we recorded a $2 million gain due to the termination of a sublease.
|
Page 4
|
Hyatt Hotels Corporation
|
Reconciliation of Non-GAAP to GAAP Measure: Summary of Special
Items - Nine Months Ended September 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 nine months ended September 30, 2013 and 2012,
respectively.
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
Location on Condensed Consolidated
Statements of
Income
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2013
|
|
2012
|
Net income attributable to Hyatt Hotels Corporation
|
|
|
|
$
|
175
|
|
|
$
|
72
|
|
Earnings per share
|
|
|
|
$
|
1.10
|
|
|
$
|
0.44
|
|
Special items
|
|
|
|
|
|
|
Gains on sales of real estate (a)
|
|
Gains on sales of real estate
|
|
(125
|
)
|
|
—
|
|
Gain on sale of artwork
|
|
Other income (loss), net
|
|
(29
|
)
|
|
—
|
|
Gain on sale of residential properties (b)
|
|
Equity earnings (losses) from unconsolidated hospitality ventures
|
|
(8
|
)
|
|
—
|
|
Marketable securities (c)
|
|
Other income (loss), net
|
|
(1
|
)
|
|
(17
|
)
|
Foreign currency translation loss on sale of joint venture (d)
|
|
Equity earnings (losses) from unconsolidated hospitality ventures
|
|
2
|
|
|
—
|
|
Transaction costs (e)
|
|
Other income (loss), net
|
|
3
|
|
|
1
|
|
Asset impairments (f)
|
|
Asset impairments
|
|
11
|
|
|
—
|
|
Charitable contribution to Hyatt Thrive Foundation (g)
|
|
Other income (loss), net
|
|
20
|
|
|
—
|
|
Debt settlement costs (h)
|
|
Other income (loss), net
|
|
35
|
|
|
—
|
|
Gain on sublease agreement (i)
|
|
Other income (loss), net
|
|
—
|
|
|
(2
|
)
|
Realignment costs (j)
|
|
Other income (loss), net
|
|
—
|
|
|
19
|
|
Unconsolidated hospitality ventures impairment (k)
|
|
Equity earnings (losses) from unconsolidated hospitality ventures
|
|
—
|
|
|
1
|
|
Total special items - pre-tax
|
|
|
|
(92
|
)
|
|
2
|
|
Income tax (provision) benefit for special items
|
|
(Provision) benefit for income taxes
|
|
36
|
|
|
1
|
|
Total special items - after-tax
|
|
|
|
(56
|
)
|
|
3
|
|
Special items impact per share
|
|
|
|
$
|
(0.35
|
)
|
|
$
|
0.02
|
|
Net income attributable to Hyatt Hotels Corporation, adjusted for
special items
|
|
|
|
$
|
119
|
|
|
$
|
75
|
|
Earnings per share, adjusted for special items
|
|
|
|
$
|
0.75
|
|
|
$
|
0.46
|
|
(a) Gains on sales of real estate - Includes gains on the sale of
Hyatt Fisherman's Wharf, Hyatt Santa Barbara and Hyatt Regency
Denver Tech, which were sold subject to franchise agreements.
|
(b) Gain on sale of residential properties - During the third
quarter, we recognized a gain of $8 million in connection with the
sale of residential properties at one of our joint ventures.
|
(c) Marketable securities - Represents (gains) losses on investments
not used to fund operating programs.
|
(d) Foreign currency translation loss on sale of joint venture -
During the nine months ended September 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.
|
(e) Transaction costs - We incurred $3 million in transaction costs
to acquire the hotel formerly known as The Peabody Orlando and to
close on our investment in the all-inclusive resort segment during
the nine months ended September 30, 2013. In the nine months ended
September 30, 2012, we incurred $1 million in transaction costs to
acquire the Hyatt Regency Mexico City.
|
(f) 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.
|
(g) 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.
|
(h) 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.
|
(i) Gain on sublease agreement - During the nine months ended
September 30, 2012, we recorded a $2 million gain due to the
termination of a sublease.
|
(j) Realignment costs - Represents costs incurred as part of our
Company's realignment in 2012.
|
(k) Unconsolidated hospitality ventures impairment - During the nine
months ended September 30, 2012, we recorded an impairment charge of
$1 million related to an investment in a vacation ownership property.
|
Page 5
|
Hyatt Hotels Corporation
|
Segment Financial Summary
|
(in millions)
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased
|
|
$
|
521
|
|
|
$
|
503
|
|
|
$
|
18
|
|
|
3.6
|
%
|
|
$
|
1,585
|
|
|
$
|
1,504
|
|
|
$
|
81
|
|
|
5.4
|
%
|
Management and franchising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
65
|
|
|
59
|
|
|
6
|
|
|
10.2
|
%
|
|
204
|
|
|
192
|
|
|
12
|
|
|
6.3
|
%
|
ASPAC
|
|
17
|
|
|
19
|
|
|
(2
|
)
|
|
(10.5
|
)%
|
|
58
|
|
|
62
|
|
|
(4
|
)
|
|
(6.5
|
)%
|
EAME/SW Asia
|
|
19
|
|
|
14
|
|
|
5
|
|
|
35.7
|
%
|
|
62
|
|
|
45
|
|
|
17
|
|
|
37.8
|
%
|
Total management and franchising
|
|
101
|
|
|
92
|
|
|
9
|
|
|
9.8
|
%
|
|
324
|
|
|
299
|
|
|
25
|
|
|
8.4
|
%
|
Corporate and other
|
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
%
|
|
63
|
|
|
59
|
|
|
4
|
|
|
6.8
|
%
|
Other revenues from managed properties
|
|
406
|
|
|
384
|
|
|
22
|
|
|
5.7
|
%
|
|
1,197
|
|
|
1,159
|
|
|
38
|
|
|
3.3
|
%
|
Eliminations
|
|
(24
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
%
|
|
(76
|
)
|
|
(72
|
)
|
|
(4
|
)
|
|
(5.6
|
)%
|
Total revenues
|
|
$
|
1,026
|
|
|
$
|
977
|
|
|
$
|
49
|
|
|
5.0
|
%
|
|
$
|
3,093
|
|
|
$
|
2,949
|
|
|
$
|
144
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased
|
|
$
|
98
|
|
|
$
|
97
|
|
|
$
|
1
|
|
|
1.0
|
%
|
|
$
|
303
|
|
|
$
|
282
|
|
|
$
|
21
|
|
|
7.4
|
%
|
Pro rata share of unconsolidated hospitality ventures
|
|
13
|
|
|
18
|
|
|
(5
|
)
|
|
(27.8
|
)%
|
|
48
|
|
|
58
|
|
|
(10
|
)
|
|
(17.2
|
)%
|
Total owned and leased
|
|
111
|
|
|
115
|
|
|
(4
|
)
|
|
(3.5
|
)%
|
|
351
|
|
|
340
|
|
|
11
|
|
|
3.2
|
%
|
Americas management and franchising
|
|
52
|
|
|
49
|
|
|
3
|
|
|
6.1
|
%
|
|
162
|
|
|
149
|
|
|
13
|
|
|
8.7
|
%
|
ASPAC management and franchising
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
%
|
|
32
|
|
|
31
|
|
|
1
|
|
|
3.2
|
%
|
EAME/SW Asia management
|
|
11
|
|
|
5
|
|
|
6
|
|
|
120.0
|
%
|
|
39
|
|
|
19
|
|
|
20
|
|
|
105.3
|
%
|
Corporate and other
|
|
(24
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
%
|
|
(82
|
)
|
|
(80
|
)
|
|
(2
|
)
|
|
(2.5
|
)%
|
Adjusted EBITDA
|
|
$
|
159
|
|
|
$
|
154
|
|
|
$
|
5
|
|
|
3.2
|
%
|
|
$
|
502
|
|
|
$
|
459
|
|
|
$
|
43
|
|
|
9.4
|
%
|
Page 6
|
Hyatt Hotels Corporation
|
Hotel Chain Statistics
|
Comparable Locations
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
Change
(in constant $)
|
|
2013
|
|
2012
|
|
Change
|
|
Change
(in constant $)
|
Owned and leased hotels (# hotels) (a)
|
|
|
Full service (38)
|
|
|
|
ADR
|
|
$
|
210.68
|
|
|
$
|
203.28
|
|
|
3.6
|
%
|
|
3.3
|
%
|
|
$
|
213.69
|
|
|
$
|
204.13
|
|
|
4.7
|
%
|
|
4.5
|
%
|
|
Occupancy
|
|
78.3
|
%
|
|
76.3
|
%
|
|
2.0
|
%
|
pts
|
|
|
75.6
|
%
|
|
74.8
|
%
|
|
0.8
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
165.06
|
|
|
$
|
155.12
|
|
|
6.4
|
%
|
|
6.1
|
%
|
|
$
|
161.58
|
|
|
$
|
152.78
|
|
|
5.8
|
%
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service (53)
|
|
|
|
ADR
|
|
$
|
115.58
|
|
|
$
|
108.58
|
|
|
6.5
|
%
|
|
6.5
|
%
|
|
$
|
112.91
|
|
|
$
|
106.96
|
|
|
5.6
|
%
|
|
5.6
|
%
|
|
Occupancy
|
|
81.1
|
%
|
|
82.7
|
%
|
|
(1.6
|
)%
|
pts
|
|
|
79.0
|
%
|
|
78.5
|
%
|
|
0.5
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
93.76
|
|
|
$
|
89.83
|
|
|
4.4
|
%
|
|
4.4
|
%
|
|
$
|
89.22
|
|
|
$
|
83.97
|
|
|
6.3
|
%
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotels (91)
|
|
|
|
ADR
|
|
$
|
181.25
|
|
|
$
|
173.03
|
|
|
4.8
|
%
|
|
4.5
|
%
|
|
$
|
182.30
|
|
|
$
|
173.79
|
|
|
4.9
|
%
|
|
4.8
|
%
|
|
Occupancy
|
|
79.2
|
%
|
|
78.2
|
%
|
|
1.0
|
%
|
pts
|
|
|
76.6
|
%
|
|
75.9
|
%
|
|
0.7
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
143.52
|
|
|
$
|
135.39
|
|
|
6.0
|
%
|
|
5.8
|
%
|
|
$
|
139.72
|
|
|
$
|
131.99
|
|
|
5.9
|
%
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed and franchised hotels (# hotels; includes owned
and leased hotels)
|
|
|
Americas
|
|
|
|
Full service (137)
|
|
|
|
ADR
|
|
$
|
175.40
|
|
|
$
|
168.82
|
|
|
3.9
|
%
|
|
4.3
|
%
|
|
$
|
178.23
|
|
|
$
|
171.34
|
|
|
4.0
|
%
|
|
4.3
|
%
|
|
Occupancy
|
|
78.4
|
%
|
|
75.9
|
%
|
|
2.5
|
%
|
pts
|
|
|
75.4
|
%
|
|
74.6
|
%
|
|
0.8
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
137.52
|
|
|
$
|
128.12
|
|
|
7.3
|
%
|
|
7.7
|
%
|
|
$
|
134.45
|
|
|
$
|
127.76
|
|
|
5.2
|
%
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service (214)
|
|
|
|
ADR
|
|
$
|
108.99
|
|
|
$
|
105.00
|
|
|
3.8
|
%
|
|
3.8
|
%
|
|
$
|
108.65
|
|
|
$
|
104.55
|
|
|
3.9
|
%
|
|
3.9
|
%
|
|
Occupancy
|
|
79.2
|
%
|
|
78.7
|
%
|
|
0.5
|
%
|
pts
|
|
|
77.3
|
%
|
|
76.1
|
%
|
|
1.2
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
86.33
|
|
|
$
|
82.59
|
|
|
4.5
|
%
|
|
4.5
|
%
|
|
$
|
84.02
|
|
|
$
|
79.53
|
|
|
5.6
|
%
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASPAC
|
|
|
|
Full service (48)
|
|
|
|
ADR
|
|
$
|
219.25
|
|
|
$
|
229.64
|
|
|
(4.5
|
)%
|
|
0.4
|
%
|
|
$
|
224.94
|
|
|
$
|
234.37
|
|
|
(4.0
|
)%
|
|
(0.7
|
)%
|
|
Occupancy
|
|
69.0
|
%
|
|
67.9
|
%
|
|
1.1
|
%
|
pts
|
|
|
67.0
|
%
|
|
66.3
|
%
|
|
0.7
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
151.35
|
|
|
$
|
155.98
|
|
|
(3.0
|
)%
|
|
2.1
|
%
|
|
$
|
150.70
|
|
|
$
|
155.41
|
|
|
(3.0
|
)%
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAME/SW Asia
|
|
|
|
Full service (50)
|
|
|
|
ADR
|
|
$
|
222.61
|
|
|
$
|
228.09
|
|
|
(2.4
|
)%
|
|
(1.3
|
)%
|
|
$
|
230.30
|
|
|
$
|
236.67
|
|
|
(2.7
|
)%
|
|
(1.6
|
)%
|
|
Occupancy
|
|
58.9
|
%
|
|
56.8
|
%
|
|
2.1
|
%
|
pts
|
|
|
63.0
|
%
|
|
59.0
|
%
|
|
4.0
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
131.18
|
|
|
$
|
129.59
|
|
|
1.2
|
%
|
|
2.4
|
%
|
|
$
|
144.99
|
|
|
$
|
139.69
|
|
|
3.8
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable systemwide hotels (449)
|
|
|
|
ADR
|
|
$
|
169.89
|
|
|
$
|
167.01
|
|
|
1.7
|
%
|
|
3.0
|
%
|
|
$
|
173.18
|
|
|
$
|
170.12
|
|
|
1.8
|
%
|
|
2.7
|
%
|
|
Occupancy
|
|
75.1
|
%
|
|
73.2
|
%
|
|
1.9
|
%
|
pts
|
|
|
73.2
|
%
|
|
72.0
|
%
|
|
1.2
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
127.55
|
|
|
$
|
122.33
|
|
|
4.3
|
%
|
|
5.6
|
%
|
|
$
|
126.83
|
|
|
$
|
122.46
|
|
|
3.6
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
Change (in
constant $)
|
|
2013
|
|
2012
|
|
Change
|
|
Change (in
constant $)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed and franchised hotels (# hotels; includes owned and
leased hotels)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Park Hyatt (27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
319.03
|
|
|
$
|
330.65
|
|
|
(3.5
|
)%
|
|
(1.5)%
|
|
$
|
337.67
|
|
|
$
|
345.19
|
|
|
(2.2
|
)%
|
|
(0.5)%
|
|
Occupancy
|
|
65.9
|
%
|
|
60.9
|
%
|
|
5.0
|
%
|
pts
|
|
|
65.4
|
%
|
|
60.8
|
%
|
|
4.6
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
210.14
|
|
|
$
|
201.36
|
|
|
4.4
|
%
|
|
6.6%
|
|
$
|
220.80
|
|
|
$
|
209.78
|
|
|
5.3
|
%
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Andaz (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
276.50
|
|
|
$
|
284.93
|
|
|
(3.0
|
)%
|
|
(2.7)%
|
|
$
|
274.47
|
|
|
$
|
276.44
|
|
|
(0.7
|
)%
|
|
(0.4)%
|
|
Occupancy
|
|
80.3
|
%
|
|
80.1
|
%
|
|
0.2
|
%
|
pts
|
|
|
76.9
|
%
|
|
76.7
|
%
|
|
0.2
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
221.91
|
|
|
$
|
228.27
|
|
|
(2.8
|
)%
|
|
(2.5)%
|
|
$
|
211.12
|
|
|
$
|
212.11
|
|
|
(0.5
|
)%
|
|
(0.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Hyatt (36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
230.11
|
|
|
$
|
230.62
|
|
|
(0.2
|
)%
|
|
2.3%
|
|
$
|
237.14
|
|
|
$
|
236.30
|
|
|
0.4
|
%
|
|
1.9%
|
|
Occupancy
|
|
74.0
|
%
|
|
72.9
|
%
|
|
1.1
|
%
|
pts
|
|
|
73.6
|
%
|
|
73.2
|
%
|
|
0.4
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
170.31
|
|
|
$
|
168.01
|
|
|
1.4
|
%
|
|
3.9%
|
|
$
|
174.44
|
|
|
$
|
172.93
|
|
|
0.9
|
%
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt (25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
167.27
|
|
|
$
|
161.47
|
|
|
3.6
|
%
|
|
3.3%
|
|
$
|
168.20
|
|
|
$
|
161.18
|
|
|
4.4
|
%
|
|
4.2%
|
|
Occupancy
|
|
79.6
|
%
|
|
78.5
|
%
|
|
1.1
|
%
|
pts
|
|
|
75.1
|
%
|
|
74.5
|
%
|
|
0.6
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
133.16
|
|
|
$
|
126.80
|
|
|
5.0
|
%
|
|
4.7%
|
|
$
|
126.28
|
|
|
$
|
120.14
|
|
|
5.1
|
%
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt Regency (139)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
165.12
|
|
|
$
|
161.55
|
|
|
2.2
|
%
|
|
3.5%
|
|
$
|
167.57
|
|
|
$
|
164.33
|
|
|
2.0
|
%
|
|
2.9%
|
|
Occupancy
|
|
73.9
|
%
|
|
71.5
|
%
|
|
2.4
|
%
|
pts
|
|
|
71.8
|
%
|
|
70.5
|
%
|
|
1.3
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
122.01
|
|
|
$
|
115.45
|
|
|
5.7
|
%
|
|
7.0%
|
|
$
|
120.28
|
|
|
$
|
115.79
|
|
|
3.9
|
%
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt Place (161)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
102.62
|
|
|
$
|
99.02
|
|
|
3.6
|
%
|
|
3.6%
|
|
$
|
102.64
|
|
|
$
|
98.88
|
|
|
3.8
|
%
|
|
3.8%
|
|
Occupancy
|
|
77.6
|
%
|
|
77.4
|
%
|
|
0.2
|
%
|
pts
|
|
|
76.1
|
%
|
|
75.1
|
%
|
|
1.0
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
79.63
|
|
|
$
|
76.61
|
|
|
3.9
|
%
|
|
3.9%
|
|
$
|
78.06
|
|
|
$
|
74.30
|
|
|
5.1
|
%
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt House (53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
125.17
|
|
|
$
|
120.38
|
|
|
4.0
|
%
|
|
4.0%
|
|
$
|
124.13
|
|
|
$
|
119.39
|
|
|
4.0
|
%
|
|
4.0%
|
|
Occupancy
|
|
83.6
|
%
|
|
82.2
|
%
|
|
1.4
|
%
|
pts
|
|
|
80.8
|
%
|
|
78.6
|
%
|
|
2.2
|
%
|
pts
|
|
|
RevPAR
|
|
$
|
104.63
|
|
|
$
|
98.92
|
|
|
5.8
|
%
|
|
5.8%
|
|
$
|
100.30
|
|
|
$
|
93.81
|
|
|
6.9
|
%
|
|
6.9%
|
Page 8
|
Hyatt Hotels Corporation
|
Fee Summary
|
(in millions)
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management fees
|
|
$
|
41
|
|
|
$
|
37
|
|
|
$
|
4
|
|
|
10.8
|
%
|
|
$
|
121
|
|
|
$
|
115
|
|
|
$
|
6
|
|
|
5.2
|
%
|
Incentive management fees
|
|
20
|
|
|
18
|
|
|
2
|
|
|
11.1
|
%
|
|
80
|
|
|
70
|
|
|
10
|
|
|
14.3
|
%
|
Franchise fees and other revenue
|
|
16
|
|
|
13
|
|
|
3
|
|
|
23.1
|
%
|
|
47
|
|
|
42
|
|
|
5
|
|
|
11.9
|
%
|
Total fees
|
|
$
|
77
|
|
|
$
|
68
|
|
|
$
|
9
|
|
|
13.2
|
%
|
|
$
|
248
|
|
|
$
|
227
|
|
|
$
|
21
|
|
|
9.3
|
%
|
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
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
Adjusted selling, general, and administrative expenses (a)
|
|
$
|
68
|
|
|
$
|
70
|
|
|
$
|
(2
|
)
|
|
(2.9
|
)%
|
|
$
|
220
|
|
|
$
|
227
|
|
|
$
|
(7
|
)
|
|
(3.1
|
)%
|
Rabbi trust impact
|
|
9
|
|
|
5
|
|
|
4
|
|
|
80.0
|
%
|
|
16
|
|
|
11
|
|
|
5
|
|
|
45.5
|
%
|
Selling, general, and administrative expenses
|
|
$
|
77
|
|
|
$
|
75
|
|
|
$
|
2
|
|
|
2.7
|
%
|
|
$
|
236
|
|
|
$
|
238
|
|
|
$
|
(2
|
)
|
|
(0.8
|
)%
|
(a) Segment breakdown for adjusted selling, general, and administrative
expenses.
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
Americas management and franchising
|
|
$
|
14
|
|
|
$
|
11
|
|
|
$
|
3
|
|
|
27.3
|
%
|
|
$
|
42
|
|
|
$
|
43
|
|
|
$
|
(1
|
)
|
|
(2.3
|
)%
|
ASPAC management and franchising
|
|
9
|
|
|
11
|
|
|
(2
|
)
|
|
(18.2
|
)%
|
|
26
|
|
|
31
|
|
|
(5
|
)
|
|
(16.1
|
)%
|
EAME/SW Asia management
|
|
7
|
|
|
9
|
|
|
(2
|
)
|
|
(22.2
|
)%
|
|
23
|
|
|
27
|
|
|
(4
|
)
|
|
(14.8
|
)%
|
Owned and leased
|
|
3
|
|
|
2
|
|
|
1
|
|
|
50.0
|
%
|
|
9
|
|
|
8
|
|
|
1
|
|
|
12.5
|
%
|
Corporate and other (b)
|
|
35
|
|
|
37
|
|
|
(2
|
)
|
|
(5.4
|
)%
|
|
120
|
|
|
118
|
|
|
2
|
|
|
1.7
|
%
|
Adjusted selling, general, and administrative expenses
|
|
$
|
68
|
|
|
$
|
70
|
|
|
$
|
(2
|
)
|
|
(2.9
|
)%
|
|
$
|
220
|
|
|
$
|
227
|
|
|
$
|
(7
|
)
|
|
(3.1
|
)%
|
(b) Corporate and other includes vacation ownership expenses of $8
million for both the three months ended September 30, 2013 and 2012,
respectively, and $23 million for both the nine months ended
September 30, 2013 and 2012, respectively.
Page 10
|
Hyatt Hotels Corporation
|
Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and
Leased Hotel Operating Margin to Owned and Leased Hotel Operating
Margin
|
Below is a breakdown of consolidated owned and leased hotels
revenues and expenses, as used in calculating comparable owned and
leased hotel operating margin percentages. Results of operations
as presented on the condensed consolidated statements of income
include the impact of expenses recognized with respect to employee
benefit programs funded through rabbi trusts. Certain of these
expenses are recognized in owned and leased hotels expenses and
are completely offset by the corresponding net gains and interest
income from marketable securities held to fund operating programs,
thus having no net impact to our earnings. Below is a
reconciliation of this account excluding the impact of our rabbi
trusts and excluding the impact of non-comparable hotels.
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotels
|
|
$
|
475
|
|
|
$
|
449
|
|
|
$
|
26
|
|
|
5.8
|
%
|
|
$
|
1,431
|
|
|
$
|
1,364
|
|
|
$
|
67
|
|
|
4.9
|
%
|
Non-comparable hotels
|
|
46
|
|
|
54
|
|
|
(8
|
)
|
|
(14.8
|
)%
|
|
154
|
|
|
140
|
|
|
14
|
|
|
10.0
|
%
|
Owned and leased hotels revenue
|
|
$
|
521
|
|
|
$
|
503
|
|
|
$
|
18
|
|
|
3.6
|
%
|
|
$
|
1,585
|
|
|
$
|
1,504
|
|
|
$
|
81
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotels
|
|
$
|
363
|
|
|
$
|
344
|
|
|
$
|
19
|
|
|
5.5
|
%
|
|
$
|
1,082
|
|
|
$
|
1,045
|
|
|
$
|
37
|
|
|
3.5
|
%
|
Non-comparable hotels
|
|
33
|
|
|
36
|
|
|
(3
|
)
|
|
(8.3
|
)%
|
|
114
|
|
|
98
|
|
|
16
|
|
|
16.3
|
%
|
Rabbi trust
|
|
3
|
|
|
2
|
|
|
1
|
|
|
50.0
|
%
|
|
7
|
|
|
5
|
|
|
2
|
|
|
40.0
|
%
|
Owned and leased hotels expense
|
|
$
|
399
|
|
|
$
|
382
|
|
|
$
|
17
|
|
|
4.5
|
%
|
|
$
|
1,203
|
|
|
$
|
1,148
|
|
|
$
|
55
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased hotel operating margin percentage
|
|
23.4
|
%
|
|
24.1
|
%
|
|
|
|
(0.7
|
)%
|
|
24.1
|
%
|
|
23.7
|
%
|
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotel operating margin percentage
|
|
23.6
|
%
|
|
23.4
|
%
|
|
|
|
0.2
|
%
|
|
24.4
|
%
|
|
23.4
|
%
|
|
|
|
1.0
|
%
|
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
September 30,
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
Rabbi trust impact allocated to selling, general, and administrative
expenses
|
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
80.0
|
%
|
|
$
|
16
|
|
|
$
|
11
|
|
|
$
|
5
|
|
|
45.5
|
%
|
Rabbi trust impact allocated to owned and leased hotels expense
|
|
3
|
|
|
2
|
|
|
1
|
|
|
50.0
|
%
|
|
7
|
|
|
5
|
|
|
2
|
|
|
40.0
|
%
|
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
|
)
|
|
(100.0
|
)%
|
|
(1
|
)
|
|
2
|
|
|
(3
|
)
|
|
(150.0
|
)%
|
Net gains and interest income from marketable securities held to
fund operating programs
|
|
$
|
12
|
|
|
$
|
8
|
|
|
$
|
4
|
|
|
(50.0
|
)%
|
|
$
|
22
|
|
|
$
|
18
|
|
|
$
|
4
|
|
|
(22.2
|
)%
|
Page 12
|
Hyatt Hotels Corporation
|
Capital Expenditures and Investment Spending Summary
|
(in millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
Maintenance
|
|
$
|
32
|
|
$
|
21
|
|
$
|
63
|
|
$
|
64
|
Enhancements to existing properties
|
|
4
|
|
30
|
|
40
|
|
114
|
Investment in new properties
|
|
22
|
|
2
|
|
47
|
|
32
|
Total
|
|
$
|
58
|
|
$
|
53
|
|
$
|
150
|
|
$
|
210
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
Investment Spending
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Acquisitions, net of cash acquired
|
|
$
|
—
|
|
$
|
1
|
|
$
|
85
|
|
$
|
180
|
Investments (equity, debt and other)
|
|
364
|
|
19
|
|
437
|
|
127
|
Total
|
|
$
|
364
|
|
$
|
20
|
|
$
|
522
|
|
$
|
307
|
Page 13
|
Hyatt Hotels Corporation
|
Properties and Rooms / Units by Geography
|
|
|
|
|
|
|
September 30, 2013
|
|
June 30, 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
|
|
26
|
|
|
12,972
|
|
|
30
|
|
|
14,216
|
|
|
31
|
|
|
14,536
|
|
|
(4
|
)
|
|
(1,244
|
)
|
|
(5
|
)
|
|
(1,564
|
)
|
|
|
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
|
|
|
7,241
|
|
|
53
|
|
|
7,242
|
|
|
56
|
|
|
7,669
|
|
|
0
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(428
|
)
|
Total owned and leased hotels
|
|
95
|
|
|
25,354
|
|
|
99
|
|
|
26,599
|
|
|
103
|
|
|
27,349
|
|
|
(4
|
)
|
|
(1,245
|
)
|
|
(8
|
)
|
|
(1,995
|
)
|
Managed and franchised hotels (includes owned and leased hotels)
|
|
|
|
|
|
|
September 30, 2013
|
|
June 30, 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
|
|
102
|
|
|
54,430
|
|
|
103
|
|
|
54,873
|
|
|
104
|
|
|
54,722
|
|
|
(1
|
)
|
|
(443
|
)
|
|
(2
|
)
|
|
(292
|
)
|
|
|
Other Americas managed
|
|
15
|
|
|
5,800
|
|
|
15
|
|
|
5,800
|
|
|
15
|
|
|
5,802
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
|
Franchised
|
|
31
|
|
|
9,557
|
|
|
28
|
|
|
8,511
|
|
|
24
|
|
|
7,515
|
|
|
3
|
|
|
1,046
|
|
|
7
|
|
|
2,042
|
|
|
|
Subtotal
|
|
148
|
|
|
69,787
|
|
|
146
|
|
|
69,184
|
|
|
143
|
|
|
68,039
|
|
|
2
|
|
|
603
|
|
|
5
|
|
|
1,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service hotels
|
|
|
|
United States managed
|
|
93
|
|
|
12,451
|
|
|
92
|
|
|
12,329
|
|
|
96
|
|
|
12,929
|
|
|
1
|
|
|
122
|
|
|
(3
|
)
|
|
(478
|
)
|
|
|
Other Americas managed
|
|
1
|
|
|
120
|
|
|
1
|
|
|
120
|
|
|
1
|
|
|
120
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
Franchised
|
|
145
|
|
|
19,356
|
|
|
140
|
|
|
18,715
|
|
|
128
|
|
|
16,774
|
|
|
5
|
|
|
641
|
|
|
17
|
|
|
2,582
|
|
|
|
Subtotal
|
|
239
|
|
|
31,927
|
|
|
233
|
|
|
31,164
|
|
|
225
|
|
|
29,823
|
|
|
6
|
|
|
763
|
|
|
14
|
|
|
2,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASPAC
|
|
|
|
Full service hotels
|
|
|
|
ASPAC managed
|
|
57
|
|
|
21,607
|
|
|
54
|
|
|
21,049
|
|
|
51
|
|
|
20,016
|
|
|
3
|
|
|
558
|
|
|
6
|
|
|
1,591
|
|
|
|
ASPAC franchised
|
|
2
|
|
|
988
|
|
|
2
|
|
|
988
|
|
|
2
|
|
|
988
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
Subtotal
|
|
59
|
|
|
22,595
|
|
|
56
|
|
|
22,037
|
|
|
53
|
|
|
21,004
|
|
|
3
|
|
|
558
|
|
|
6
|
|
|
1,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAME/SW Asia
|
|
|
|
Full service hotels
|
|
|
|
EAME managed
|
|
37
|
|
|
9,763
|
|
|
37
|
|
|
9,802
|
|
|
33
|
|
|
8,084
|
|
|
0
|
|
|
(39
|
)
|
|
4
|
|
|
1,679
|
|
|
|
SW Asia managed
|
|
26
|
|
|
7,405
|
|
|
26
|
|
|
7,411
|
|
|
20
|
|
|
6,014
|
|
|
0
|
|
|
(6
|
)
|
|
6
|
|
|
1,391
|
|
|
|
Subtotal
|
|
63
|
|
|
17,168
|
|
|
63
|
|
|
17,213
|
|
|
53
|
|
|
14,098
|
|
|
0
|
|
|
(45
|
)
|
|
10
|
|
|
3,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
510
|
|
|
141,592
|
|
|
499
|
|
|
139,713
|
|
|
475
|
|
|
133,079
|
|
|
11
|
|
|
1,879
|
|
|
35
|
|
|
8,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation ownership
|
|
15
|
|
|
963
|
|
|
15
|
|
|
963
|
|
|
15
|
|
|
963
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
Residential
|
|
10
|
|
|
1,101
|
|
|
10
|
|
|
1,102
|
|
|
10
|
|
|
1,102
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total properties and rooms/units
|
|
535
|
|
|
143,656
|
|
|
524
|
|
|
141,778
|
|
|
500
|
|
|
135,144
|
|
|
11
|
|
|
1,878
|
|
|
35
|
|
|
8,512
|
|
(a) Owned and leased hotel figures do not include unconsolidated
hospitality ventures.
Page 14
|
Hyatt Hotels Corporation
|
Properties and Rooms / Units by Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
June 30, 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
|
|
33
|
|
|
6,535
|
|
|
31
|
|
|
6,270
|
|
|
30
|
|
|
6,014
|
|
|
2
|
|
|
265
|
|
|
3
|
|
|
521
|
|
Andaz
|
|
10
|
|
|
2,116
|
|
|
9
|
|
|
1,820
|
|
|
9
|
|
|
1,823
|
|
|
1
|
|
|
296
|
|
|
1
|
|
|
293
|
|
Hyatt
|
|
38
|
|
|
8,502
|
|
|
37
|
|
|
8,314
|
|
|
28
|
|
|
6,948
|
|
|
1
|
|
|
188
|
|
|
10
|
|
|
1,554
|
|
Grand Hyatt
|
|
40
|
|
|
22,262
|
|
|
40
|
|
|
22,245
|
|
|
38
|
|
|
21,515
|
|
|
0
|
|
|
17
|
|
|
2
|
|
|
747
|
|
Hyatt Regency
|
|
149
|
|
|
70,135
|
|
|
148
|
|
|
69,785
|
|
|
144
|
|
|
66,841
|
|
|
1
|
|
|
350
|
|
|
5
|
|
|
3,294
|
|
Hyatt Place
|
|
182
|
|
|
23,888
|
|
|
177
|
|
|
23,261
|
|
|
172
|
|
|
22,335
|
|
|
5
|
|
|
627
|
|
|
10
|
|
|
1,553
|
|
Hyatt House
|
|
58
|
|
|
8,154
|
|
|
57
|
|
|
8,018
|
|
|
54
|
|
|
7,603
|
|
|
1
|
|
|
136
|
|
|
4
|
|
|
551
|
|
Vacation Ownership and Residential
|
|
25
|
|
|
2,064
|
|
|
25
|
|
|
2,065
|
|
|
25
|
|
|
2,065
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(1
|
)
|
Total
|
|
535
|
|
|
143,656
|
|
|
524
|
|
|
141,778
|
|
|
500
|
|
|
135,144
|
|
|
11
|
|
|
1,878
|
|
|
35
|
|
|
8,512
|
|
Page 15
|
Hyatt Hotels Corporation
|
Year-over-Year Net Impact of Portfolio Changes to Owned and Leased
Adjusted EBITDA (a) - Three months ended September 30, 2013
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Rooms
|
|
Transaction /
Opening Date
|
|
3Q13 Adjusted
EBITDA Impact
|
|
|
|
|
|
|
|
Dispositions (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 Hyatt Place Hotels and 1 Hyatt House Hotel
|
|
1,043
|
|
4Q12
|
|
|
3 Hyatt Place Hotels
|
|
426
|
|
1Q13
|
|
|
Hyatt Fisherman's Wharf
|
|
313
|
|
2Q13
|
|
|
Hyatt Santa Barbara
|
|
195
|
|
2Q13
|
|
|
Hyatt Regency Denver Tech Center
|
|
451
|
|
3Q13
|
|
|
Andaz Savannah
|
|
151
|
|
3Q13
|
|
|
Andaz Napa
|
|
141
|
|
3Q13
|
|
|
Hyatt Regency Santa Clara
|
|
501
|
|
3Q13
|
|
|
|
|
|
|
|
|
|
Year-over-Year Net Impact of Dispositions to Owned and Leased
Adjusted EBITDA
|
|
|
|
|
|
$
|
(7
|
)
|
|
|
|
|
|
|
|
Acquisitions or Openings (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Andaz Amsterdam Prinsengracht
|
|
122
|
|
4Q12
|
|
|
Hyatt Regency Birmingham (U.K.)
|
|
319
|
|
4Q12
|
|
|
The Driskill
|
|
189
|
|
1Q13
|
|
|
|
|
|
|
|
|
|
Year-over-Year Net Impact of Acquisitions and Openings to Owned
and Leased Adjusted EBITDA
|
|
|
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
Year-over-Year Net Impact of Dispositions, Acquisitions and
Openings to Owned and Leased Adjusted EBITDA
|
|
|
|
|
|
$
|
(5
|
)
|
(a) Excludes pro rata share of unconsolidated hospitality ventures.
|
(b) Reflects 2012 Adjusted EBITDA for recently completed
dispositions.
|
(c) Reflects 2013 Adjusted EBITDA for recently completed
acquisitions or openings.
|

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