CHICAGO--(BUSINESS WIRE)--
Hyatt Hotels Corporation (NYSE: H) today announced that its Board of
Directors has authorized the repurchase of up to an additional $750
million of the Company’s common stock. The authorization is consistent
with Hyatt’s ongoing commitment to return meaningful capital to
stockholders while continuing to invest in growth opportunities.
Year-to-date through November 15, 2017, the Company repurchased over
$700 million of common stock. As of December 14, 2017, the Company had
approximately $864 million available under its share repurchase
authorization (including the $750 million authorized on December 14,
2017).
On November 9, 2017, the Company sold the 550-room Hyatt
Regency Monterey Hotel and Spa in Monterey, CA for approximately $60
million, resulting in the recognition of a pre-tax gain of approximately
$17 million. The gain will be characterized as a special item and will
be recorded outside of Hyatt’s Adjusted EBITDA. The sale was part of six
properties actively marketed for sale as announced during the Company’s
first quarter 2017 earnings call. The property will remain in the Hyatt
system under a long-term franchise agreement.
The sale of Hyatt Regency Monterey Hotel and Spa brings the Company’s
total dispositions, including hotel properties and other investments, to
approximately $920 million in 2017. These dispositions reflect a total
estimated headwind of approximately $56 million to Owned & Leased hotels
segment Adjusted EBITDA in 2018, inclusive of an approximate $9 million
impact from Monterey. The anticipated Adjusted EBITDA impact from the
sale of Monterey on 2017 results is immaterial.
On December 11, 2017, Hyatt received net cash proceeds of approximately
$217 million related to the sale of Avendra LLC to Aramark Corporation.
The transaction resulted in the recognition of approximately $20 million
in equity earnings from unconsolidated hospitality ventures which,
consistent with the Company’s Form 8-K dated October 16, 2017, will be
characterized as a special item and recorded outside of Adjusted EBITDA,
Adjusted Net Income and Adjusted EPS.
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, outlook, occupancy, ADR
and growth trends, market share, the number of properties we expect to
open in the future, the amount by which the Company intends to reduce
its real estate asset base and the anticipated timeframe for such asset
dispositions, our expected adjusted SG&A expense, our estimated
comparable systemwide RevPAR growth, our estimated Adjusted EBITDA
growth, maintenance and enhancement to existing properties capital
expenditures, investments in new properties capital expenditures,
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 and a worsening of
global economic conditions or low levels of economic growth; the rate
and the 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 future bookings; loss of key personnel;
hostilities, or fear of hostilities, including future terrorist attacks,
that affect travel; travel-related accidents; natural or man-made
disasters such as earthquakes, tsunamis, tornadoes, hurricanes, floods,
wildfires, oil spills, nuclear incidents and global outbreaks of
pandemics or contagious diseases or fear of such outbreaks; our ability
to successfully execute on our strategy to reduces our real estate asset
base within targeted timeframes and at expected values; declines in the
value of our real estate assets; our ability to successfully achieve
certain levels of operating profits at hotels that have performance
guarantees in favor of our third-party owners; the impact of hotel
renovations; risks associated with our capital allocation plans and
common stock repurchase program, including the amount and timing of
share repurchases and the risk that our common stock repurchase program
could increase volatility and fail to enhance stockholder value; the
seasonal and cyclical nature of the real estate and hospitality
businesses; changes in distribution arrangements, such as through
internet travel intermediaries; changes in the tastes and preferences of
our customers, including the entry of new competitors in the lodging
business; relationships with colleagues and labor unions and changes in
labor laws; financial condition of, and our relationships with,
third-party property owners, franchisees and hospitality venture
partners; the possible inability of third-party owners, franchisees or
development partners to access capital necessary to fund current
operations or implement our plans for growth; risks associated with
potential acquisitions and dispositions and the introduction of new
brand concepts; the timing of acquisitions and dispositions; failure to
successfully complete proposed transactions (including the failure to
satisfy closing conditions or obtain required approvals); unforeseen
terminations of our management or franchise agreements; changes in
federal, state, local or foreign tax law; increases in interest rates
and operating costs; foreign exchange rate fluctuations or currency
restructurings; lack of acceptance of new brands or innovation; our
ability to successfully implement our new global loyalty platform, and
the level of acceptance of the new program by our guests; general
volatility of the capital markets and our ability to access such
markets; changes in the competitive environment in our industry,
including as a result of industry consolidation, and the markets where
we operate; cyber incidents and information technology failures;
outcomes of legal or administrative proceedings; violations of
regulations or laws related to our franchising business; and other risks
discussed in the Company's filings with the SEC, 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 only as of the date of this press release. We
do not undertake or assume any 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 law. 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 statement.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global
hospitality company with a portfolio of 13 premier brands. As of
September 30, 2017 the Company's portfolio included 739 properties in 57
countries. The Company's purpose to care for people so they can be their
best informs its business decisions and growth strategy and is intended
to create value for shareholders, build relationships with guests and
attract the best colleagues in the industry. The Company's subsidiaries
develop, own, operate, manage, franchise, license or provide services to
hotels, resorts, branded residences and vacation ownership properties,
including under the Park Hyatt®, Miraval®, Grand Hyatt®, Hyatt
Regency®, Hyatt®, Andaz®, Hyatt Centric®, The Unbound Collection by
Hyatt®, Hyatt Place®, Hyatt House®,
Hyatt Ziva™, Hyatt
Zilara™ and Hyatt Residence Club® brand names and
have locations on six continents. For more information about Hyatt
Hotels Corporation, please visit www.hyatt.com.
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Source: Hyatt Hotels Corporation