Published on : Saturday, February 15, 2014
Hyatt Hotels Corporation today reported fourth quarter 2013 financial results as follows:Adjusted EBITDA was $178 million in the fourth quarter of 2013 compared to $147 million in the fourth quarter of 2012, an increase of 21.1%.Adjusted for special items, net income attributable to Hyatt was $51 million, or $0.32 per share, during the fourth quarter of 2013 compared to net income attributable to Hyatt of $33 million, or $0.20 per share, during the fourth quarter of 2012.
Net income attributable to Hyatt was $32 million, or $0.20 per share, during the fourth quarter of 2013 compared to net income attributable to Hyatt of $16 million, or $0.09 per share, in the fourth quarter of 2012.
Comparable owned and leased hotel Rev PAR increased 6.2% (5.9% excluding the effect of currency) in the fourth quarter of 2013 compared to the fourth quarter of 2012.
Comparable owned and leased hotel operating margins increased 60 basis points in the fourth quarter of 2013 compared to the same period in 2012. Owned and leased hotel operating margins increased 110 basis points in the fourth quarter of 2013 compared to the fourth quarter of 2012.Comparable system wide Rev PAR increased 4.2% (5.9% excluding the effect of currency) in the fourth quarter of 2013 compared to the fourth quarter of 2012.
Comparable U.S. full service hotel Rev PAR increased 7.0% in the fourth quarter of 2013 compared to the fourth quarter of 2012. Comparable U.S. select service hotel Rev PAR increased 4.0% in the fourth quarter of 2013 compared to the fourth quarter of 2012.
Sixteen properties were opened. As of December 31, 2013, the Company’s executed contract base consisted of approximately 240 hotels or approximately 54,000 rooms.
The Company repurchased 468,679 shares of common stock at a weighted average price of $48.12 per share, for an aggregate purchase price of approximately $23 million.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, “In the fourth quarter, we continued to see positive demand trends among both transient and group travelers, particularly in the Americas. This is leading to continued rate improvement across our brands.
“We continue to be focused on expanding our presence in key markets around the world. During the quarter, we opened 16 hotels, bringing our total hotel openings for the year to 51 hotels. The fourth quarter openings included our first all inclusive resorts, Hyatt Ziva Los Cabos and Hyatt Zilara Cancun and the second resort for the Andaz brand, Andaz Peninsula Papagayo that opened to very positive guest feedback and joins the recently opened Andaz Maui at Wailea.
We also continued to expand the Hyatt Place brand by opening hotels in urban markets such as Charlotte, Minneapolis, Nashville and Omaha. Our current base of executed contracts for new hotels is the largest it has ever been and represents approximately 40% of our current system size, reflecting healthy demand for our brands across all regions.
“Our asset recycling strategy continues to provide additional opportunities to fund growth in targeted areas.
In 2013, we sold seven full service and three select service hotels at strong pricing while maintaining brand presence. Additionally, we realized more than $400 million in cash from the settlement of loans, and the sale of venture and preferred equity investments. During the fourth quarter, we acquired our partner’s interest in Grand Hyatt San Antonio, a leading hotel that is adjacent to the Henry B.
Gonzalez Convention Center. Consistent with our asset recycling strategy, we recently announced the expected sale of a portfolio of 10 hotels under the Hyatt Place, Hyatt House and Hyatt brands to a high quality owner for $313 million.
“Looking ahead, we expect healthy occupancy levels in the U.S. to support increasing strength in room prices. We expect to continue our asset recycling program and deploy proceeds into key growth priorities in order to drive guest and owner preference for our brands.”
Tags: Hotel News, Hyatt Reports Fourth Quarter 2013 Results