Hyatt Hotels (H) Up 15.2% Since Last Earnings Report: Can It Continue?

Hyatt Hotels Corporation is one of the global hospitality company. This company is developing, owning, operating, managing, franchising, licensing, or providing services to a portfolio of properties. The NYSE: H company is operated through four segments such as owned and leased hotels, America’s management and franchising (Americas), ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia). The Americas segment is consisting of the management and franchising of properties located in the United States, Latin America, Canada, and the Caribbean. The EAME/SW Asia segment is consisting of the management and franchising of properties located in Europe, Africa, India, Central Asia, and Nepal.

Earnings & Revenues Miss Estimates

  • Hyatt reported dismal second-quarter 2020 results, wherein earnings and revenues not only missed the Zacks Consensus Estimate but also declined sharply on a year-over-year basis.
  • The company reported an adjusted loss per share of $1.80, wider than the Zacks Consensus Estimate of a loss of $1.38. The NYSE: H company had reported adjusted earnings per share of 76 cents.
  • Quarterly revenues of $250 million missed the consensus mark of $251 million by 0.2%. The top line also declined by 80.6% from the year-ago quarter.

Operating Highlights

It is adjusted EBITDA slumped 154.6% to $117 million (down 155.2% at constant currency). Moreover, it is also adjusted EBITDA declined 274.6% in the second quarter against 31.6% growth in the year-ago quarter.

Segmental Details

  • Hyatt manages business through four reportable segments such as Owned and Leased Hotels, Americas Management and Franchising, Southeast Asia, Greater China, Australia, South Korea, and Europe, Africa, Middle East, and Southwest Asia (EAME/SW Asia) Management and Franchising.
  • Revenues at Owned and Leased Hotels are totaled $20 million, down 95.9% from the year-ago quarter number. The sharp decline can primarily be attributed to the impact of coronavirus on comparable owned and leased hotels as well as dispositions.
  • Meanwhile, adjusted EBITDA decreased 168.2% to ($78) million. At constant currency, the same declined by 168.6%.
  • Revenues at Americas Management and Franchising amounted to $10 million, reflecting a decline of 92.5% and 92.4% from the year-ago figure and constant currency, respectively.
  • RevPAR for comparable Americas full-service hotels decreased by 95.7%. ADR is declined 35.4%, occupancy rates fell 74 percentage points from the year-ago quarter number.
  • Meanwhile, RevPAR for comparable Americas select-service hotels was down 81.2%. While ADR declined 31.1%, occupancy rates decreased 57.7 percentage points from the year-ago quarter number.

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