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Hyatt's (H) Earnings Miss, Revenues Beat Estimates in Q2
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Hyatt Hotels Corporation (H - Free Report) reported mixed second-quarter 2021 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. However, the top and the bottom line increased on a year-over-year basis.
Nonetheless, the company is stated to have benefitted from solid leisure transient demand, particularly in the United States and Greater China. Leisure transient revenues in these regions have recovered to 2019 levels. During the quarter, the company reported solid momentum with respect to RevPAR growth.
Q2 Earnings & Revenues
The company reported adjusted loss per share of $1.15, wider than the Zacks Consensus Estimate of a loss of 89 cents. In the prior-year quarter, the company reported adjusted loss of $1.80 per share.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Quarterly revenues of $663 million beat the consensus mark of $662 million by 0.2%. Moreover, the top line surged 165.6% on a year-over-year basis.
Operating Highlights
During the quarter, adjusted EBITDA came in at $55 million against $(117) million reported in the year-ago quarter. Moreover, adjusted EBITDA margin increased to 17.9% in the second quarter against a plunge of 274.6% in the year-ago quarter.
Segmental Details
Hyatt manages business through four reportable segments — Owned and Leased Hotels; Americas Management and Franchising; Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising; and Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising.
During the second quarter, revenues in the Owned and Leased Hotels segment totaled $191 million compared with $19 million reported in the prior-year quarter. The upside was primarily driven by strong leisure transient demand in various markets in the United States. However, Owned and leased hotels RevPAR are down 53.4% from 2019 levels. During the quarter, average daily rate (ADR) was up 40.2% and occupancy rate improved 39.3 percentage points from 2020 levels.
Meanwhile, the segment’s adjusted EBITDA came in at $12 million during second quarter against $(78) million reported in the year-ago quarter.
During the quarter, total management and franchise fee revenues came in at $77 million compared with $12 million reported in the year-ago quarter. That said, the metric improved sequentially from $49 million reported in first-quarter 2021.
For Americas Management and Franchising, RevPAR for comparable Americas full-service hotels (during the second quarter) surged 984.3% from the prior-year quarter’s level. While ADR improved 37.4%, occupancy rates increased 36.9 percentage points from the prior-year quarter’s number.
Meanwhile, RevPAR for comparable Americas select-service hotels was up 256.2% year over year. ADR increased 21% and occupancy rates improved 42.2 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during second quarter came in at $54 million, against $(3) million reported in the year-ago quarter.
For ASPAC Management and Franchising, RevPAR for comparable ASPAC full-service hotels (during the second quarter) surged 139.1% from the year-ago quarter’s figure. ADR increased 19.6% and occupancy rates improved 23.6 percentage points from the year-ago quarter’s number.
Meanwhile, RevPAR for comparable ASPAC select-service hotels was up 104.4% on a year-over-year basis. ADR increased 6.1% and occupancy rates improved 26.7 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during second quarter came in at $10 million against $(2) million reported in the year-ago quarter.
For EAME/SW Asia Management and Franchising, comparable EAME/SW Asia full-service hotels’ RevPAR surged 431.4% from the year-ago quarter’s level. ADR increased 23% and occupancy rates improved 21.8 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during second quarter came in at $(1) million compared with $(11) million reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2021, Hyatt reported cash and cash equivalents (including investments in highly-rated money market funds and similar investments) of $1,144 million compared with $1,078 million in the previous quarter. Total debt as of Jun 30, 2021, stood at $3,246 million compared with $3.242 million as of Mar 31, 2021.
Meanwhile, the company stated undrawn borrowing availability of $1,500 million under Hyatt's revolving credit facility.
Other Business Updates
Coming to hotel openings, 27 new hotels (or 4,302 rooms) joined Hyatt's system in the second quarter of 2021. This contributed to a 7.1% increase in net rooms from the second quarter of 2020. As of June 30, 2021, the company had executed management or franchise contracts for approximately 495 hotels (or 101,000 rooms) compared with 490 hotels (or 100,000 rooms) as of Mar 31, 2021.
Approximately, 98% of total system-wide hotels were open as of Jun 30, 2021 compared with 96% as on Mar 31, 2021.
2021 Outlook
For 2021, the company expects adjusted selling, general and administrative expenses to be approximately $240 million and capital expenditures at approximately $110 million. Meanwhile, unit growth in 2021 is anticipated to be more than 6% on a net-rooms basis.
Marriott International, Inc. (MAR - Free Report) reported solid second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics also increased year over year. The company’s adjusted earnings per share (EPS) of 79 cents beat the Zacks Consensus Estimate of 42 cents. In the prior-year quarter, the company had reported adjusted loss of 57 cents per share. Quarterly revenues of $3,149 million surpassed the consensus mark of $3,014 million. The top line surged 115.1% on a year-over-year basis. The upside was primarily driven by improved leisure demand in Mainland China, U.S. and Canada regions.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported solid second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics also increased year over year. The company’s adjusted EPS of 56 cents beat the Zacks Consensus Estimate of 34 cents. In the prior-year quarter, the company had reported adjusted loss of 61 cents per share. Quarterly revenues of $1,329 million beat the consensus mark of $1,308 million. Moreover, the top line surged 135.6% from the year-ago quarter’s levels. Notably, ramp up of vaccinations and leniency in travel restrictions were tailwinds for the company.
Marriott Vacations Worldwide Corporation (VAC - Free Report) reported mixed second-quarter 2021 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. However, the top and the bottom line increased on a year-over-year basis. The company’s adjusted EPS of 85 cents missed the Zacks Consensus Estimate of 89 cents. In the prior-year quarter, the company had reported adjusted loss of $1.76 per share. Quarterly revenues of $979 million beat the consensus mark of $921 million. Moreover, the top line surged 104% from the year-ago quarter’s levels. The uptick was driven by a rise in contract sales.
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Hyatt's (H) Earnings Miss, Revenues Beat Estimates in Q2
Hyatt Hotels Corporation (H - Free Report) reported mixed second-quarter 2021 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. However, the top and the bottom line increased on a year-over-year basis.
Nonetheless, the company is stated to have benefitted from solid leisure transient demand, particularly in the United States and Greater China. Leisure transient revenues in these regions have recovered to 2019 levels. During the quarter, the company reported solid momentum with respect to RevPAR growth.
Q2 Earnings & Revenues
The company reported adjusted loss per share of $1.15, wider than the Zacks Consensus Estimate of a loss of 89 cents. In the prior-year quarter, the company reported adjusted loss of $1.80 per share.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Hyatt Hotels Corporation price-consensus-eps-surprise-chart | Hyatt Hotels Corporation Quote
Quarterly revenues of $663 million beat the consensus mark of $662 million by 0.2%. Moreover, the top line surged 165.6% on a year-over-year basis.
Operating Highlights
During the quarter, adjusted EBITDA came in at $55 million against $(117) million reported in the year-ago quarter. Moreover, adjusted EBITDA margin increased to 17.9% in the second quarter against a plunge of 274.6% in the year-ago quarter.
Segmental Details
Hyatt manages business through four reportable segments — Owned and Leased Hotels; Americas Management and Franchising; Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising; and Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising.
During the second quarter, revenues in the Owned and Leased Hotels segment totaled $191 million compared with $19 million reported in the prior-year quarter. The upside was primarily driven by strong leisure transient demand in various markets in the United States. However, Owned and leased hotels RevPAR are down 53.4% from 2019 levels. During the quarter, average daily rate (ADR) was up 40.2% and occupancy rate improved 39.3 percentage points from 2020 levels.
Meanwhile, the segment’s adjusted EBITDA came in at $12 million during second quarter against $(78) million reported in the year-ago quarter.
During the quarter, total management and franchise fee revenues came in at $77 million compared with $12 million reported in the year-ago quarter. That said, the metric improved sequentially from $49 million reported in first-quarter 2021.
For Americas Management and Franchising, RevPAR for comparable Americas full-service hotels (during the second quarter) surged 984.3% from the prior-year quarter’s level. While ADR improved 37.4%, occupancy rates increased 36.9 percentage points from the prior-year quarter’s number.
Meanwhile, RevPAR for comparable Americas select-service hotels was up 256.2% year over year. ADR increased 21% and occupancy rates improved 42.2 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during second quarter came in at $54 million, against $(3) million reported in the year-ago quarter.
For ASPAC Management and Franchising, RevPAR for comparable ASPAC full-service hotels (during the second quarter) surged 139.1% from the year-ago quarter’s figure. ADR increased 19.6% and occupancy rates improved 23.6 percentage points from the year-ago quarter’s number.
Meanwhile, RevPAR for comparable ASPAC select-service hotels was up 104.4% on a year-over-year basis. ADR increased 6.1% and occupancy rates improved 26.7 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during second quarter came in at $10 million against $(2) million reported in the year-ago quarter.
For EAME/SW Asia Management and Franchising, comparable EAME/SW Asia full-service hotels’ RevPAR surged 431.4% from the year-ago quarter’s level. ADR increased 23% and occupancy rates improved 21.8 percentage points from the year-ago quarter’s number.
Adjusted EBITDA during second quarter came in at $(1) million compared with $(11) million reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2021, Hyatt reported cash and cash equivalents (including investments in highly-rated money market funds and similar investments) of $1,144 million compared with $1,078 million in the previous quarter. Total debt as of Jun 30, 2021, stood at $3,246 million compared with $3.242 million as of Mar 31, 2021.
Meanwhile, the company stated undrawn borrowing availability of $1,500 million under Hyatt's revolving credit facility.
Other Business Updates
Coming to hotel openings, 27 new hotels (or 4,302 rooms) joined Hyatt's system in the second quarter of 2021. This contributed to a 7.1% increase in net rooms from the second quarter of 2020. As of June 30, 2021, the company had executed management or franchise contracts for approximately 495 hotels (or 101,000 rooms) compared with 490 hotels (or 100,000 rooms) as of Mar 31, 2021.
Approximately, 98% of total system-wide hotels were open as of Jun 30, 2021 compared with 96% as on Mar 31, 2021.
2021 Outlook
For 2021, the company expects adjusted selling, general and administrative expenses to be approximately $240 million and capital expenditures at approximately $110 million. Meanwhile, unit growth in 2021 is anticipated to be more than 6% on a net-rooms basis.
Zacks Rank & Peer Releases
Hyatt currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Marriott International, Inc. (MAR - Free Report) reported solid second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics also increased year over year. The company’s adjusted earnings per share (EPS) of 79 cents beat the Zacks Consensus Estimate of 42 cents. In the prior-year quarter, the company had reported adjusted loss of 57 cents per share. Quarterly revenues of $3,149 million surpassed the consensus mark of $3,014 million. The top line surged 115.1% on a year-over-year basis. The upside was primarily driven by improved leisure demand in Mainland China, U.S. and Canada regions.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported solid second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics also increased year over year. The company’s adjusted EPS of 56 cents beat the Zacks Consensus Estimate of 34 cents. In the prior-year quarter, the company had reported adjusted loss of 61 cents per share. Quarterly revenues of $1,329 million beat the consensus mark of $1,308 million. Moreover, the top line surged 135.6% from the year-ago quarter’s levels. Notably, ramp up of vaccinations and leniency in travel restrictions were tailwinds for the company.
Marriott Vacations Worldwide Corporation (VAC - Free Report) reported mixed second-quarter 2021 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. However, the top and the bottom line increased on a year-over-year basis. The company’s adjusted EPS of 85 cents missed the Zacks Consensus Estimate of 89 cents. In the prior-year quarter, the company had reported adjusted loss of $1.76 per share. Quarterly revenues of $979 million beat the consensus mark of $921 million. Moreover, the top line surged 104% from the year-ago quarter’s levels. The uptick was driven by a rise in contract sales.