Hyatt Releases Upbeat Hotel Metrics, Delays Conference Call
Hyatt postponed an investor conference call scheduled for Thursday. But investors shrugged off the delay and focused on preliminary financial results.
The hotel operator said it needed additional time “to finalize accounting related to Unlimited Vacation Club deferred cost activity in its Apple Leisure Group segment.” It added that there would be no “cash impact” from the result of that accounting.
“The optics, particularly related to anything ‘accounting’ related, are almost never good, especially when disclosed on the eve of an earnings release,” wrote Michael Bellisario, director, senior research analyst at Baird Equity Research, in a report. “Positively, though, Hyatt provided several performance highlights and operating updates, all of which were strong.”
Hyatt’s stock price rose more than 3% after the announcement of the postponed call and the release of preliminary data.
“That tells you everything,” Bellisario said in response to our query.
Other analysts agreed.
“While postponing earnings isn’t a good look for the company, the published results so far look very good and highly encouraging for 4Q earnings,” said C. Patrick Scholes, managing director, lodging and leisure equity research of Truist Securities, in response to our query.
Hyatt’s 2023 Performance
Hyatt didn’t provide a full report on its 2023 performance. But it did release some key numbers for the year.
Hyatt’s revenue per available room, a key industry metric, rose 17% year-over-year.
It grew the net number of rooms it manages by 5.9%.
Free cash flow was $602 million, the highest in the company’s history.
The hotel development pipeline had approximately 127,000 rooms at year’s end, a company record. The pipeline represented 40% of the company’s current room count.
To boost its luxury portfolio, Hyatt plans to add more than 35 luxury hotels and resorts worldwide by 2035.
Last year, the company introduced its Hyatt Studios brand. It has since executed deals representing about 2,000 rooms. Dealmakers are in talks for about 200 properties, the company said.
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