Strong Net Rooms Growth of 13.6% in 2018 Including Two Roads
Acquisition
26.7% Increase in Cash Dividend
CHICAGO--(BUSINESS WIRE)--
Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today
reported fourth quarter 2018 financial results. Net income attributable
to Hyatt was $44 million, or $0.40 per diluted share, in the fourth
quarter of 2018, compared to $213 million, or $1.75 per diluted share,
in the fourth quarter of 2017. Net income in the fourth quarter of 2017
included a $217 million gain from the sale of Avendra, LLC, an equity
method investment, and $58 million of incremental tax expense
attributable to recent U.S. tax reform. Adjusted net income attributable
to Hyatt was $69 million, or $0.62 per diluted share, in the fourth
quarter of 2018, compared to $6 million, or $0.06 per diluted share, in
the fourth quarter of 2017. Refer to the table on page 4 of the
schedules for a summary of special items impacting Adjusted net income
and Adjusted earnings per share in the three months ended December 31,
2018.
Mark S. Hoplamazian, president and chief executive officer of Hyatt
Hotels Corporation, said, "We had a very strong 2018 driven by another
year of double-digit growth in management and franchising fees, nearly
offsetting the earnings decline in our owned & leased segment, resulting
from over $1.0 billion of asset sales. We successfully closed the
acquisition of Two Roads Hospitality LLC, adding five new compelling
brands into the Hyatt portfolio and significant future growth
opportunities."
Fourth quarter 2018 financial results as compared to fourth quarter 2017
are as follows:
-
Net income decreased 79.2% to $44 million.
-
Adjusted EBITDA increased 5.0% to $182 million, up 6.8% in constant
currency.
-
Comparable system-wide RevPAR increased 1.5%, including an increase of
3.0% at comparable owned and leased hotels.
-
Comparable U.S. hotel RevPAR increased 0.9%; full service and select
service hotel RevPAR increased 2.6% and decreased 3.0%, respectively.
-
Comparable owned and leased hotels operating margin increased 240
basis points to 25.1%.
-
Adjusted EBITDA margin increased 280 basis points to 28.7% in constant
currency.
Fiscal year 2018 financial results as compared to fiscal year 2017 are
as follows:
-
Net income increased 97.5% to $769 million.
-
Adjusted EBITDA decreased 1.9% to $777 million, down 1.7% in constant
currency, reflecting significant transaction activity.
-
Comparable system-wide RevPAR increased 3.1%, including an increase of
3.6% at comparable owned and leased hotels.
-
Comparable U.S. hotel RevPAR increased 2.0%; full service and select
service hotel RevPAR increased 2.8% and 0.2%, respectively.
-
Comparable owned and leased hotels operating margin increased 140
basis points to 24.1%.
-
Adjusted EBITDA margin increased 190 basis points to 30.9% in constant
currency.
-
Net rooms growth was 13.6% in 2018, compared to growth of 7.0% in
2017. Excluding the acquisition of Two Roads Hospitality LLC ("Two
Roads"), net rooms growth was 7.2%.
-
As of December 31, 2018, the Company's pipeline consisted of
approximately 445 hotels, or approximately 89,000 rooms. This compared
to approximately 330 hotels or approximately 70,000 rooms as of
December 31, 2017.
-
The Company repurchased 12,723,895 shares of common stock for $966
million in 2018, compared to 12,186,308 shares for $723 million in
2017.
Mr. Hoplamazian continued, "We believe we are well-positioned to
continue to execute our long-term shift to an asset-lighter business
model. This is supported by a significant increase in our pipeline,
which now stands at approximately 89,000 rooms, equivalent to more than
42% of our system, and our sustained net rooms growth of 7% or better."
Fourth quarter of 2018 financial results as compared to the fourth
quarter of 2017 are as follows:
Owned and Leased Hotels Segment
Total owned and leased hotels segment Adjusted EBITDA decreased 2.2%
(1.2% in constant currency) including a 4.6% decrease (0.2% in constant
currency) in pro rata share of unconsolidated hospitality ventures
Adjusted EBITDA. The decrease in total segment Adjusted EBITDA was
primarily driven by transaction activity. Refer to the table on page 20
of the schedules for a detailed list of portfolio changes and the
year-over-year net impact to fourth quarter owned and leased hotels
segment Adjusted EBITDA. Owned and leased hotels segment revenues
decreased 10.9% (10.2% in constant currency).
RevPAR for comparable owned and leased hotels increased 3.0%. Occupancy
increased 100 basis points and ADR increased 1.7%.
Management, Franchise and Other Fees
Total fee revenues increased 10.3% (12.0% in constant currency) to $145
million. Base management fees increased 11.7% to $58 million and
incentive management fees increased 6.6% to $43 million, driven by new
system-wide hotels and hotel conversions from owned to managed in the
Americas management and franchising segment. Franchise fees increased
7.8% to $31 million. Other fee revenues increased 24.1% to $13 million.
The fee contribution from the Two Roads acquisition was immaterial to
the quarter's results.
Americas Management and Franchising Segment
Americas management and franchising segment Adjusted EBITDA increased
11.6% (12.3% in constant currency). RevPAR for comparable Americas full
service hotels increased 3.4%; occupancy increased 40 basis points and
ADR increased 2.9%. RevPAR for comparable Americas select service hotels
decreased 3.7%; occupancy decreased 230 basis points and ADR decreased
0.6%. Revenue from management, franchise and other fees increased 8.9%
(9.5% in constant currency).
Group rooms revenue at comparable U.S. full service hotels increased
2.7%; room nights increased 1.3% and ADR increased 1.4%. Transient rooms
revenue at comparable U.S. full service hotels increased 1.2%; room
nights decreased 2.0% and ADR increased 3.2%.
Americas net rooms increased 13.0% compared to the fourth quarter of
2017, or 5.3% excluding Two Roads.
Southeast Asia, Greater China, Australia, South Korea, Japan and
Micronesia (ASPAC) Management and Franchising Segment
ASPAC management and franchising segment Adjusted EBITDA increased 1.7%
(5.2% in constant currency). RevPAR for comparable ASPAC full service
hotels increased 2.1%, driven by growth in Southeast Asia, Japan and
Hong Kong. Occupancy increased 120 basis points and ADR increased 0.5%.
Revenue from management, franchise and other fees increased 10.6% (13.4%
in constant currency).
ASPAC net rooms increased 18.4% compared to the fourth quarter of 2017,
or 13.2% excluding Two Roads.
Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia)
Management and Franchising Segment
EAME/SW Asia management and franchising segment Adjusted EBITDA
increased 8.8% (15.0% in constant currency). RevPAR for comparable
EAME/SW Asia full service hotels increased 2.7%, driven by growth in
most European markets and partially offset by weak performance in the
Middle East. Occupancy increased 220 basis points and ADR decreased
0.5%. Revenue from management, franchise and other fees increased 5.9%
(10.3% in constant currency).
EAME/SW Asia net rooms increased 10.3% compared to the fourth quarter of
2017, or 9.0% excluding Two Roads.
Corporate and Other
Corporate and other Adjusted EBITDA increased 3.9% (consistent in
constant currency).
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses decreased 40.2%. Adjusted
selling, general, and administrative expenses decreased 5.4%, primarily
due to marketing initiatives completed during 2017, including master
brand marketing. The decrease was partially offset by $6 million of
selling, general, and administrative expenses, related to the Two Roads
acquisition including $4 million of integration costs. Refer to the
table on page 11 of the schedules for a reconciliation of selling,
general, and administrative expenses to Adjusted selling, general, and
administrative expenses.
OPENINGS AND FUTURE EXPANSION
The Company's net rooms were 13.6% higher in the fourth quarter of 2018,
compared to the fourth quarter of 2017. Excluding the impact of the Two
Roads acquisition, net rooms were 7.2% higher in the fourth quarter of
2018 compared to the fourth quarter of 2017. During the 2018 fiscal
year, the Company opened 63 hotels excluding the Two Roads acquisition,
representing 14,962 rooms.
As of December 31, 2018, the Company had executed management or
franchise contracts for approximately 445 hotels (approximately 89,000
rooms), compared to the expectation for 340 hotels and 73,000 rooms as
of September 30, 2018, and compared to approximately 330 hotels
(approximately 70,000 rooms) at December 31, 2017. The pipeline of
executed contracts includes approximately 35 hotels and approximately
5,000 rooms represented by the five brands acquired in the Two Roads
acquisition.
The pipeline of executed contracts represents important potential
expansion into several new markets or markets in which Hyatt is
under-represented. Refer to the table on page 19 of the schedules for a
breakdown of the pipeline.
ACQUISITION OF TWO ROADS HOSPITALITY LLC
In November 2018, the Company completed the acquisition of Two Roads for
a purchase price of $405 million. The transaction also includes
potential additional consideration of up to $96 million if the sellers
complete specific actions with respect to certain of the acquired
management agreements within 120 days from the date of acquisition and
up to $8 million in the event of the execution of certain potential new
management agreements related to the development of certain potential
new deals previously identified and generated by the sellers or
affiliates of the sellers within one year of the closing of the
transaction.
As of December 31, 2018, the acquisition of Two Roads added 65 hotel
properties or approximately 12,000 rooms, along with 10 condominium
ownership properties comprising approximately 1,500 units, to our
portfolio, a pipeline of approximately 5,000 rooms, and the addition of
five new brands. The condominium ownership properties operate under the
Destination Residential Management business.
SHARE REPURCHASE/DIVIDEND
As part of the Company's commitment to return meaningful capital to
shareholders, the Company is increasing its quarterly cash dividend by
26.7% to $0.19 per share from $0.15 per share, representing an
annualized dividend of $0.76 per share. The first quarter dividend will
be payable on March 11, 2019 to Class A and Class B shareholders on
record as of February 27, 2019.
During the 2018 fiscal year, the Company repurchased a record $966
million of shares, consisting of 12,723,895 shares of common stock
(10,293,241 Class A shares and 2,430,654 Class B shares). During the
fourth quarter of 2018, the Company repurchased 4,163,883 shares of
common stock (4,160,229 Class A shares and 3,654 Class B shares) for an
aggregate purchase price of $292 million. The Company ended the fourth
quarter with 39,507,817 Class A and 67,115,828 Class B shares issued and
outstanding.
From January 1 through February 8, 2019, the Company repurchased 797,415
shares of Class A common stock for an aggregate purchase price of $54
million. As of February 8, 2019, the Company had approximately $614
million remaining under its share repurchase authorization.
CAPITAL STRATEGY
The Company remains on track to successfully execute plans to sell
approximately $1.5 billion of real estate by the end of 2020 as part of
its capital strategy. To date, the Company has sold approximately $1.1
billion of real estate under the program.
BALANCE SHEET / OTHER ITEMS
As of December 31, 2018, the Company reported the following:
-
Total debt of $1.6 billion.
-
Pro rata share of unconsolidated hospitality venture debt of $528
million, substantially all of which is non-recourse to Hyatt and a
portion of which Hyatt guarantees pursuant to separate agreements.
-
Cash and cash equivalents, including investments in highly-rated money
market funds and similar investments, of $570 million, short-term
investments of $116 million and restricted cash of $33 million.
-
Undrawn borrowing availability of $1.5 billion under its revolving
credit facility.
2019 OUTLOOK
The Company is providing the following information for the 2019 fiscal
year:
-
Net income is expected to be approximately $109 million to $147
million.
-
Adjusted EBITDA is expected to be approximately $780 million to $800
million. These estimates include an unfavorable impact from foreign
currency of approximately $7 million (low end of the forecast) to $2
million (high end of the forecast). Refer to the table on page 3 of
the schedules for a reconciliation of Net Income to Adjusted EBITDA.
-
Adjusted EBITDA contribution from the Two Roads acquisition prior to
non-recurring integration-related costs is estimated to be
approximately $20 million to $25 million. After including integration
costs, the net contribution to 2019 Adjusted EBITDA is expected to be
flat to $5 million.
-
Adjusted selling, general, and administrative expenses are expected to
be approximately $345 million. This includes Hyatt selling, general,
and administrative expenses of approximately $305 million, as well as
selling, general, and administrative expenses associated with the
acquisition of Two Roads, of which $20 million to $25 million is
related to one-time integration costs in 2019. This excludes
approximately $35 million of stock-based compensation expense and any
potential impact related to benefit programs funded through rabbi
trusts.
-
Capital expenditures are expected to be approximately $375 million.
-
Depreciation and amortization expense is expected to be approximately
$347 million to $352 million.
-
Interest expense is expected to be approximately $78 million to $79
million.
-
Other income (loss), net is expected to be negatively impacted by
approximately $40 million to $50 million related to performance
guarantee expense for the four managed hotels in France.
-
The effective tax rate is expected to be approximately 28% to 30%.
-
The Company expects to grow units, on a net rooms basis, by
approximately 7.0% to 7.5%, reflecting over 80 new hotel openings.
-
The Company expects to return approximately $300 million to
shareholders through a combination of cash dividends on its common
stock and share repurchases.
The company is reaffirming the following information for the 2019 fiscal
year:
-
Comparable system-wide RevPAR is expected to increase approximately 1%
to 3%, as compared to fiscal year 2018.
No disposition or acquisition activity beyond what has been completed as
of the date of this release has been included in the 2019 Outlook. The
Company's 2019 Outlook is based on a number of assumptions that are
subject to change and many of which are outside the control of the
Company. If actual results vary from these assumptions, the Company's
expectations may change. There can be no assurance that Hyatt will
achieve these results.
CONFERENCE CALL INFORMATION
The Company will hold an investor conference call tomorrow, February 14,
2019, at 10:30 a.m. CT. Participants may listen to a simultaneous
webcast of the conference call, which may be accessed through the
Company's website at investors.hyatt.com, or by dialing 647.689.4468 or
(toll free) 833.238.7946, passcode #9573586, approximately 10 minutes
before the scheduled start time. For those unable to listen to the live
broadcast, a replay will be available from 1:30 p.m. CT on February 14,
2019 through February 15, 2019 at midnight by dialing 416.621.4642,
passcode #9573586. An archive of the webcast will be available on the
Company's website for 90 days.
AVAILABILITY OF INFORMATION ON HYATT'S WEBSITE
Investors and others should note that Hyatt routinely announces material
information to investors and the marketplace using U.S. Securities and
Exchange Commission (SEC) filings, press releases, public conference
calls, webcasts and the Hyatt Investor Relations website. While not all
of the information that the Company posts to the Hyatt Investor
Relations website is of a material nature, some information could be
deemed to be material. Accordingly, the Company encourages investors,
the media and others interested in Hyatt to review the information that
it shares at the Investor Relations link located at the bottom of the
page on hyatt.com. Users may automatically receive email alerts and
other information about the Company when enrolling an email address by
visiting "Email Alerts" in the "Investor Resources" section of Hyatt's
website at investors.hyatt.com.
DEFINITIONS
Adjusted Earnings Before Interest Expense, Taxes,
Depreciation and Amortization (Adjusted EBITDA) and EBITDA
We use the terms Adjusted EBITDA and EBITDA throughout this earnings
release. Adjusted EBITDA and EBITDA, as the Company defines them, are
non-GAAP measures. We define consolidated Adjusted EBITDA as net income
attributable to Hyatt Hotels Corporation plus its pro rata share of
unconsolidated hospitality ventures Adjusted EBITDA based on its
ownership percentage of each venture, adjusted to exclude the following
items:
-
interest expense;
-
provision for income taxes;
-
depreciation and amortization;
-
amortization of management and franchise agreement assets constituting
payments to customers (Contra revenue);
-
revenues for the reimbursement of costs incurred on behalf of managed
and franchised properties;
-
costs incurred on behalf of managed and franchised properties;
-
equity earnings (losses) from unconsolidated hospitality ventures;
-
stock-based compensation expense;
-
gains (losses) on sales of real estate;
-
asset impairments; and
-
other income (loss), net
Effective January 1, 2018, we made two modifications to our definition
of Adjusted EBITDA with the implementation of ASU 2014-09 Revenue from
Contracts with Customers. Our definition has been updated to exclude
Contra revenue which was previously recognized as amortization expense.
As this is strictly a matter of financial presentation, we have excluded
Contra revenue in order to be consistent with our prior treatment and to
reflect the way in which we manage our business. We have also excluded
revenues for the reimbursement of costs incurred on behalf of managed
and franchised properties and costs incurred on behalf of managed and
franchised properties. These revenues and costs previously netted to
zero within Adjusted EBITDA. Under ASU 2014-09, the recognition of
certain revenue differs from the recognition of related costs, creating
timing differences that would otherwise impact Adjusted EBITDA. We have
not changed our management of these revenues or expenses, nor do we
consider these timing differences to be reflective of our core
operations. These changes reflect how our management evaluates each
segment's performance and also facilitate comparison with our
competitors. We have applied this change to 2017 historical results to
allow for comparability between the periods presented.
We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA
of each of our reportable segments and eliminations 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 operations 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 the Company uses
internally for purposes of assessing operating performance and making
compensation decisions.
Adjusted EBITDA and EBITDA are not substitutes for net income
attributable to Hyatt Hotels Corporation, net income, or any other
measure prescribed by GAAP. There are limitations to using non-GAAP
measures such as Adjusted EBITDA and 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. Our management
compensates for these limitations by reference to its GAAP results and
using Adjusted EBITDA supplementally.
Adjusted EBITDA Margin
We define Adjusted EBITDA margin as Adjusted EBITDA divided by total
revenues excluding Contra revenue and revenues for the reimbursement of
costs incurred on behalf of managed and franchised properties ("Adjusted
revenues"). We believe Adjusted EBITDA margin is useful to investors
because it provides investors the same information that the Company uses
internally for purposes of assessing operating performance.
Adjusted Net Income
Adjusted net income, as we define it, is a non-GAAP measure. We define
Adjusted net income as net income attributable to Hyatt Hotels
Corporation excluding special items, which are those items deemed not to
be reflective of ongoing operations. We consider Adjusted net income to
be an indicator of operating performance because excluding special items
allows for period-over-period comparisons of our ongoing operations.
Adjusted net income is not a substitute for net income attributable to
Hyatt Hotels Corporation, net income, or any other measure prescribed by
GAAP. There are limitations to using non-GAAP measures such as Adjusted
net income. Although we believe that Adjusted net income can make an
evaluation of our operating performance more consistent because it
removes special items that are deemed not to be reflective of ongoing
operations, other companies in our industry may define Adjusted net
income differently than we do. As a result, it may be difficult to use
Adjusted net income 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 net income should
not be considered as a measure of the income generated by our business.
Our management compensates for these limitations by reference to its
GAAP results and using Adjusted net income supplementally.
Adjusted Selling, General, and Administrative
(SG&A) Expenses
Adjusted SG&A expenses, as we define it, is a non-GAAP measure. Adjusted
selling, general, and administrative expenses exclude the impact of
deferred compensation plans funded through rabbi trusts and stock-based
compensation expense. Adjusted SG&A expenses assist 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 operations, both on a segment and consolidated basis.
Comparable Owned and Leased Hotels Operating Margin
We define comparable owned and leased hotels operating margin as the
difference between comparable owned and leased hotels revenues and
comparable owned and leased hotels expenses. Comparable owned and leased
hotels revenues is calculated by removing non-comparable hotels revenues
from owned and leased hotels revenues as reported in our condensed
consolidated statements of income. Comparable owned and leased hotels
expenses is calculated by removing both non-comparable owned and leased
hotels expenses and the impact of expenses funded through rabbi trusts
from owned and leased hotels expenses as reported in our condensed
consolidated statements of income. We believe comparable owned and
leased hotels operating margin is useful to investors because it
provides investors the same information that the Company uses internally
for purposes of assessing operating performance.
Comparable Hotels
"Comparable system-wide 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 system-wide hotels to specifically refer to comparable
system-wide Americas full service or select service hotels for those
properties that we manage or franchise within the Americas management
and franchising segment, comparable system-wide ASPAC full service or
select service hotels for those properties that we manage or franchise
within the ASPAC management and franchising segment, or comparable
system-wide EAME/SW Asia full service or select service hotels for those
properties that we manage or franchise within the EAME/SW Asia
management and franchising segment. "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 system-wide hotels and
comparable owned and leased hotels are commonly used as a basis of
measurement in our industry. "Non-comparable system-wide hotels" or
"non-comparable owned and leased hotels" represent all hotels that do
not meet the respective definition of "comparable" as defined above.
Constant Dollar Currency
We report the results of our operations both on an as reported basis, as
well as on a constant dollar basis. Constant dollar currency, which is a
non-GAAP measure, excludes the effects of movements in foreign currency
exchange rates between comparative periods. We believe constant dollar
analysis provides valuable information regarding our results as it
removes currency fluctuations from our operating results. We calculate
constant dollar currency by restating prior-period local currency
financial results at the current period's exchange rates. These restated
amounts are then compared to our current period reported amounts to
provide operationally driven variances in our results.
Revenue per Available Room (RevPAR)
RevPAR is the product of the average daily rate (ADR) 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, 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 our 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 average room rate changes result in
minimal impacts to variable operating costs.
Average Daily Rate (ADR)
ADR represents hotel room revenues, divided by the 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 our 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 a hotel's available capacity. We use
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.
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 system-wide 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 ("ADR");
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 achieve certain levels of operating profits
at hotels that have performance tests or guarantees in favor of our
third-party owners; the impact of hotel renovations and redevelopments;
risks associated with our capital allocation plans and common stock
repurchase program and other forms of shareholder capital return,
including the risk that our common stock repurchase program could
increase volatility and fail to enhance shareholder value; our intention
to pay a quarterly cash dividend and the amounts thereof, if any; 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; relationships with colleagues and labor unions and
changes in labor laws; the 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, and our
ability to successfully integrate completed acquisitions with existing
operations; failure to successfully complete proposed transactions
(including the failure to satisfy closing conditions or obtain required
approvals); our ability to successfully execute on our strategy to
expand our management and franchising business while at the same time
reducing our real estate asset base within targeted timeframes and at
expected values; declines in the value of our real estate assets;
unforeseen terminations of our management or franchise agreements;
changes in federal, state, local, or foreign tax law;
the impact
of changes in the tax code as a result of the Tax Cuts and Jobs Act of
2017 and uncertainty as to how some of those changes may be applied;
increases in interest rates and operating costs; foreign exchange rate
fluctuations or currency restructurings; lack of acceptance of new
brands or innovation; 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; our ability to successfully grow the World
of Hyatt loyalty program; cyber incidents and information technology
failures; outcomes of legal or administrative proceedings; and
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
statements.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global
hospitality company with a portfolio of 19 premier brands. As of
December 31, 2018, the Company's portfolio included more
than 850 properties in 60 countries across six continents. 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 attract and
retain top colleagues, build relationships with guests and create value
for shareholders. The Company's subsidiaries develop, own, operate,
manage, franchise, license or provide services to hotels, resorts,
branded residences, vacation ownership properties, and fitness and spa
locations, including under the Park Hyatt®, Miraval®, Grand
Hyatt®, Alila®, Andaz®, The
Unbound Collection by Hyatt®, Destination®, Hyatt
Regency®, Hyatt®, Hyatt Ziva™, Hyatt
Zilara™, Thompson Hotels®, Hyatt
Centric®, Hyatt House®, Hyatt Place®, Joie
de Vivre®, tommie™, Hyatt
Residence Club® and Exhale® brand names,and operates the World of Hyatt® loyalty program that providesdistinct benefits and exclusive experiences to its valued
members. For more information, please visit www.hyatt.com.
The financial section of this release, including a reconciliation of
the Company’s presented non-GAAP measures to the most directly
comparable GAAP measures, is provided on the Company's website at
investors.hyatt.com.
Note: All RevPAR and ADR percentage changes are in constant
dollars. This release includes references to non-GAAP financial
measures. Refer to the definitions of the non-GAAP measures presented
beginning on page 8 and non-GAAP reconciliations included in the
schedule.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190213005774/en/
Investor Contact:
Amanda Bryant, 312.780.5539
amanda.bryant@hyatt.com
Media Contact:
Franziska Weber, 312.780.6106
franziska.weber@hyatt.com
Source: Hyatt Hotels Corporation