Hyatt Moves Lower On Revenue Miss
Hyatt Hotels (NYSE: H) reported a miss on top line while beating bottom line results today. Other names in the space may have responded negatively like Wynn Resorts (NASDAQ: WYNN), Las Vegas Sands (NYSE: LVS) and Marriott International (NASDAQ: MAR).
According to Benzinga Pro, “Hyatt Hotels Corporation reports Q2 EPS of $0.47 versus the estimated $0.45, beating by $0.02. EPS were Up 9% from the same quarter last year. Revenue came in at $1.16B versus the estimated $1.18B. Sales were Up 6% year over year.”
The CEO of Hyatt, Mark S. Hoplamazian states:
"In the second quarter, we reported constant currency system wide RevPAR (revenue per available room) growth of 6.1% driven by continued robust transient demand and rate growth. Comparable owned and leased hotels RevPAR increased 4.0% and comparable owned and leased hotels operating margins decreased 20 basis points partially due to a difficult comparison to a strong second quarter in 2013 as well as adverse market conditions at two hotels outside the Americas. On a year-to-date basis, we saw strong performance at owned and leased hotels with comparable RevPAR up 5.1% and comparable operating margins up 60 basis points.”
While Hyatt did beat on earnings, comp RevPAR may not have come in at a high enough of a rate to drive the top line results needed to beat consensus estimates. Furthermore, broader equities are selling off, which is why names in the hotel space are performing in-line with the S&P 500.
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