CHICAGO—Hyatt Hotels Corporation saw an uptick in RevPAR growth, experienced the benefits of the Two Roads Hospitality LLC acquisition, and more. Earnings results for the second quarter reflect these positive moves.
Net income attributable to Hyatt was $86 million, or $0.80 per diluted share, in the second quarter of 2019, compared to $77 million, or $0.66 per diluted share, in the second quarter of 2018. Adjusted net income attributable to Hyatt was $82 million, or $0.76 per diluted share, in the second quarter of 2019, compared to $84 million, or $0.72 per diluted share, in the second quarter of 2018.
“We reported solid second-quarter results. Strong transient demand drove 1.3% system-wide RevPAR growth, and fees and net rooms grew at a double-digit pace inclusive of the Two Roads Hospitality LLC acquisition,” said Mark S. Hoplamazian, president/CEO of Hyatt Hotels Corporation. “We expect the key drivers of growth across our lodging business to continue to drive results within the context of our reduced RevPAR guidance. Separately, we are reducing expectations for full-year Adjusted EBITDA to primarily reflect construction-related issues in our Miraval business, as well as increased transaction adjustments and foreign currency headwinds.”
Second quarter of 2019 financial highlights as compared to the second quarter of 2018 are as follows:
- Net income increased 10.6% to $86 million.
- Adjusted EBITDA decreased 2.1% to $213 million, a decrease of 1% in constant currency.
- Comparable system-wide RevPAR increased 1.3%, including an increase of 2.3% at comparable owned and leased hotels. Excluding the negative impact from the timing of the Easter holiday, comparable RevPAR at system-wide hotels and comparable owned and leased hotels would have increased 1.7% and 2.8%, respectively.
- Comparable U.S. hotel RevPAR decreased 0.3%; full-service hotel RevPAR increased 0.7% and select-service hotel RevPAR decreased 2.3%.
- Net rooms growth was 12.6%, or 6.9%, excluding the acquisition of Two Roads Hospitality LLC in the fourth quarter of 2018.
- Comparable owned and leased hotels operating margin increased 10 basis points to 26.4%.
- Adjusted EBITDA margin of 31.6% decreased 260 basis points in constant currency.
Hoplamazian continued, “We continued to expand our portfolio at a solid pace in the second quarter. Developer demand for our brands remains strong with our base of executed contracts for future openings increasing by 1,000 rooms in the quarter net of opening of nearly 4,000 rooms. Based on this development activity and an increase in conversions of hotels to our brands, we now expect to grow net rooms by 7.25% to 7.75% this year as compared with our prior expectation of 7.0% to 7.5%.”