Why Is Hyatt Hotels Stock Sliding Today?

Zinger Key Points
  • Hyatt Hotels Q1 adjusted EPS of $0.71 missed the analyst consensus of $0.91.
  • Hyatt currently expects to grow net rooms by 5.5% - 6%. in FY24.

Hyatt Hotels Corporation H shares are trading lower after the company reported first-quarter adjusted EPS below street view.

The company reported first-quarter FY24 sales growth of 2% year-on-year to $1.714 billion, beating the analyst consensus estimate of $1.707 billion.

Comparable system-wide RevPAR increased 5.5% to $131.86. System-wide Net Rooms Growth was 5.5%. Comparable owned and leased hotels RevPAR increased 0.1% to $178.04.

Adjusted EBITDA fell 5.9% to $252 million from $268 million last year. Adjusted EPS of $0.71 missed the analyst consensus of $0.91.

Hyatt repurchased 528,427 million shares of Class A common stock for $76 million in the first quarter. The company held $794 million in cash and equivalents as of March-end. At the end of first-quarter, the company had a total debt of $3.05 billion.

The company’s board of directors has authorized the repurchase of up to an additional $1 billion of the company’s common stock. As of May 9, the company has approximately $1.8 billion remaining under the share repurchase authorization.

Outlook: Hyatt expects FY24 capital expenditure to be $170 million. The company currently expects to grow net rooms by 5.5% – 6%. It expects comparable system-wide hotels RevPAR to increase 3% to 5% on a constant currency basis.

The company’s full-year Adjusted EBITDA is projected between $1.15 billion and $1.19 billion and is in line with the previously provided outlook when adjusting for $30 million of reduced Adjusted EBITDA due to transactions.

Price Action: H shares are trading lower by 1.62% at $145.43 at the last check Thursday.

Photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceBuybacksBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!