Hyatt Moves Lower on Revenue Miss

Hyatt Hotels 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 WYNN, Las Vegas Sands LVS, and Marriott International 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.