Why Hyatt Hotels Shares Are Falling Today

Hyatt Hotels Corp H reported second-quarter FY23 sales growth of 15% year-on-year to $1.71 billion, beating the analyst consensus of $1.65 billion.

Comparable system-wide RevPAR increased 15% Y/Y. Net Rooms Growth was 6.9%.

Comparable owned and leased hotels RevPAR increased 10.1% versus last year.

Adjusted EBITDA rose to $273 million versus $255 million last year.

Adjusted EPS of $0.82 missed the analyst consensus of $0.83.

Hyatt repurchased 969,000 shares for $108 million in Q2.

At the end of Q2, the company had a consolidated debt of $3.1 billion.

Outlook: Hyatt expects FY23 net income of $215 million, Adjusted EBITDA of $1.02 billion - $1.07 billion, and capital expenditure to be $200 million.

The company currently expects to grow net rooms by approximately 6%.

It now expects system-wide constant dollar RevPAR to grow 14% - 16% from 2022.

Price Action: H shares are trading lower by 8.4% at $112.02 on the last check Thursday.