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change take
— Sean O’Neill
Hyatt postponed an investor call scheduled for Thursday. But investors shrugged off the delay and focused on preliminary financial performance.
The hotelier said it needed more time “to complete accounting related to the deferred cost activities of Apple Leisure Group’s Infinity Vacation Club.” The accounting results will have no “cash impact”, it added.
“Situations like this, especially as they relate to ‘accounting,’ are almost never a good thing,” Michael Bellisario, director and senior research analyst at Baird Equity Research, wrote in a note. , especially with the disclosures coming on the eve of earnings.” “On the positive side, however, Hyatt provided some performance highlights and operational updates, all of which were very strong.”
Hyatt shares rose more than 3% after announcing the postponement of the conference call and releasing preliminary data.
“That tells you everything,” Bellisario said in response to our query.
Other analysts agree.
C. Patrick Scholes, managing director of lodging and leisure equity research at Truist Securities, responded: “While the earnings delay is not good news for the company, the results reported so far look very good and are good news for fourth-quarter earnings. Very encouraging.” our query.
Hyatt’s 2023 results
Hyatt did not provide a full report on 2023 results. But it did release some key numbers for the year.
- Hyatt’s revenue per available room, a key industry metric, increased 17% year over year.
- The net number of rooms under its management increased by 5.9%.
- Free cash flow was US$602 million, the highest level in the company’s history.
- By the end of the year, there were approximately 127,000 rooms in hotel development, a company record. This pipeline project represents 40% of the company’s current guest room count.
- To expand its luxury hotel portfolio, Hyatt plans to add more than 35 luxury hotels and resorts worldwide by 2035.
- Last year, the company launched the Hyatt Studios brand. The company has since executed transactions for approximately 2,000 rooms. The company said dealmakers are negotiating for about 200 properties.
Year-to-date performance of lodging industry stock index
What am I looking at? Performance of stocks in the hotel and short-term rental sectors within the ST200. The index includes companies publicly traded on global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative lodging and timeshares.
Skift Travel 200 (ST200) The financial performance of nearly 200 travel companies worth more than trillion dollars is combined into a single number. View more hotel and short-term rental financial sector performance.
Read the full methodology behind the Skift Travel 200.
Image source: King room with garden view at Park Hyatt Abu Dhabi Hotel & Villas. Source: Hyatt Regency.
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