Hyatt Hotels Corporation (H) Bundle
A Brief History of Hyatt Hotels Corporation
Hyatt Hotels Corporation has a storied history that began in 1957 when Jay Pritzker acquired the Hyatt House motel near Los Angeles International Airport. Over the decades, Hyatt has expanded significantly, establishing its presence in various markets around the world.
Corporate Structure and Operations
As of 2024, Hyatt operates over 1,150 properties in more than 70 countries. The company's portfolio includes well-known brands such as Park Hyatt, Grand Hyatt, Hyatt Regency, and Hyatt Place. Hyatt's business model focuses on management and franchising, which accounts for a significant portion of its revenues.
Financial Performance
For the nine months ended September 30, 2024, Hyatt reported total revenues of $5,046 million, compared to $5,007 million for the same period in 2023, reflecting a modest increase in operational performance. The breakdown of revenues for this period is as follows:
| Revenue Source | 2024 (in million $) | 2023 (in million $) |
|---|---|---|
| Base Management Fees | 295 | 281 |
| Incentive Management Fees | 170 | 167 |
| Franchise and Other Fees | 340 | 272 |
| Owned and Leased Revenue | 910 | 984 |
| Distribution Revenue | 818 | 832 |
| Other Revenues | 58 | 238 |
| Revenues for Reimbursed Costs | 2,511 | 2,267 |
Stock Performance and Shareholder Returns
As of September 30, 2024, Hyatt's Class A common stock has seen substantial activity, with 7,923,062 shares repurchased at a weighted-average price of $148.81 per share for a total of $1,179 million. The company has maintained a consistent dividend policy, declaring cash dividends of $0.15 per share for three consecutive quarters in 2024, totaling $46 million for the nine months ended September 30, 2024.
Recent Developments
In 2024, Hyatt announced the acquisition of Standard International for $150 million, enhancing its lifestyle offering. This strategic move is part of Hyatt's ongoing efforts to diversify its portfolio and expand its market presence.
Key Financial Metrics
Key financial metrics for Hyatt as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Net Income | $1,352 million |
| Adjusted EBITDA | $841 million |
| Total Assets | $11,865 million |
| Total Liabilities | $8,168 million |
| Stockholders' Equity | $3,700 million |
Market Presence
Hyatt's global footprint positions it well in the competitive hospitality market, particularly in regions experiencing growth in travel and tourism. The company's focus on enhancing guest experiences and expanding its luxury offerings has contributed to its resilience and growth.
A Who Owns Hyatt Hotels Corporation (H)
Ownership Structure
Hyatt Hotels Corporation has a dual-class share structure comprising Class A and Class B common stock. As of September 30, 2024, the ownership breakdown is as follows:
| Class | Shares Outstanding | Voting Rights | Ownership Percentage |
|---|---|---|---|
| Class A | 42,277,394 | 1 vote per share | ~ 30% |
| Class B | 53,748,579 | 10 votes per share | ~ 70% |
Major Shareholders
The Pritzker family is the primary shareholder and has significant control over Hyatt due to their ownership of Class B shares. Key details include:
- Trusts for the benefit of certain Pritzker family members own a substantial portion of Class B shares.
- As of September 30, 2024, the Pritzker family trusts collectively hold approximately 48% of the voting power.
- Recent transactions included the repurchase of 3,629,480 shares of Class B common stock at a weighted-average price of $154.66 per share for an aggregate price of approximately $561 million.
Institutional Ownership
Institutional investors also hold a significant portion of Hyatt's shares, with the following data reflecting the top institutional shareholders:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 7,200,000 | ~ 8.9% |
| BlackRock, Inc. | 6,500,000 | ~ 8.1% |
| State Street Corporation | 5,300,000 | ~ 6.6% |
Recent Changes in Ownership
In 2024, Hyatt underwent significant changes in its equity structure, including:
- Repurchase of Class B shares totaling $657 million, which reflects a strategic move to consolidate ownership and reduce the number of outstanding shares.
- Conversion of 1,379,064 shares of Class B common stock into Class A common stock.
- As of September 30, 2024, the total stockholders' equity was reported at $3.7 billion, with a net debt of $2.0 billion.
Equity Holdings and Market Performance
Hyatt's market performance indicators include:
| Metric | Value | Change (YoY) |
|---|---|---|
| Market Capitalization | $8.5 billion | +15% |
| Stock Price (as of Sept 30, 2024) | $197.50 | +20% |
| Dividend Yield | 0.30% | Stable |
Conclusion on Ownership Dynamics
The ownership of Hyatt Hotels Corporation is predominantly characterized by the Pritzker family's controlling interest through Class B shares, with significant institutional support. Recent actions to repurchase shares and convert Class B to Class A highlight ongoing strategies to optimize capital structure and shareholder value.
Hyatt Hotels Corporation (H) Mission Statement
Current Mission Statement
The mission statement of Hyatt Hotels Corporation emphasizes providing authentic hospitality by making a difference in the lives of the guests they serve. Hyatt seeks to deliver quality experiences and maintain a commitment to excellence in all areas of their operations.
Financial Overview
As of September 30, 2024, Hyatt Hotels Corporation reported significant financial metrics reflecting its operational performance:
| Metric | Value |
|---|---|
| Total Revenues | $5,007 million |
| Net Income | $1,352 million |
| Adjusted EBITDA | $841 million |
| Basic Earnings Per Share | $13.38 |
| Diluted Earnings Per Share | $13.04 |
| Cash Flows from Operating Activities | $398 million |
Operational Performance
Hyatt's operational performance can be gauged through key metrics as follows:
| Region | Number of Comparable Hotels | RevPAR ($) | Occupancy Rate (%) | Average Daily Rate (ADR) ($) |
|---|---|---|---|---|
| United States | 647 | $149 | 70.9% | $210 |
| Americas (Excluding U.S.) | 66 | $180 | 70.1% | $257 |
| Greater China | 122 | $88 | 69.7% | $127 |
| Asia Pacific (Excluding Greater China) | 106 | $141 | 70.9% | $199 |
| Europe | 103 | $171 | 68.7% | $249 |
| Middle East & Africa | 40 | $123 | 65.5% | $188 |
Recent Acquisitions and Investments
Hyatt has made several strategic acquisitions and investments to enhance its market presence:
- Acquired Dream Hotel Group for $125 million.
- Acquired Mr & Mrs Smith for approximately $72 million.
- Invested $119 million in capital expenditures during the nine months ended September 30, 2024.
Shareholder Returns
Hyatt has actively returned capital to shareholders through share repurchases and dividends:
| Action | Amount |
|---|---|
| Total Share Repurchases (2024) | $1,179 million |
| Quarterly Dividends Paid | $46 million |
Debt and Capital Structure
Hyatt's capital structure reflects a focus on maintaining a strong balance sheet:
| Debt Metric | Value |
|---|---|
| Consolidated Debt (September 30, 2024) | $3,142 million |
| Net Consolidated Debt | $2,008 million |
| Total Debt-to-Total Capital | 45.9% |
| Net Debt-to-Total Capital | 29.4% |
Global Presence
As of September 30, 2024, Hyatt's portfolio consisted of:
- 1,363 hotels across 79 countries.
- 326,845 rooms worldwide.
- 701 hotels in the United States, comprising 157,154 rooms.
- 124 all-inclusive resorts with a total of 42,634 rooms.
Conclusion on Strategic Direction
Hyatt continues to focus on enhancing its brand portfolio and operational efficiencies while delivering exceptional service to its guests. The company's commitment to quality hospitality remains central to its mission as it navigates the complexities of the global hospitality market.
How Hyatt Hotels Corporation (H) Works
Overview of Operations
Hyatt Hotels Corporation operates through various segments, including management and franchising, owned and leased hotels, and distribution services. As of September 30, 2024, Hyatt managed 1,084 comparable system-wide hotels across multiple regions.
Financial Performance
For the quarter ended September 30, 2024, Hyatt reported a net income of $471 million, a significant increase from $68 million in the same quarter of 2023. The consolidated Adjusted EBITDA for the same period was $275 million, compared to $253 million in 2023, indicating an 8.9% growth year-over-year.
Revenue Streams
Hyatt's revenue streams include:
- Base management fees: $97 million
- Incentive management fees: $52 million
- Franchise and other fees: $119 million
- Gross fees: $268 million
RevPAR and Hotel Performance
Comparable system-wide hotels achieved a Revenue per Available Room (RevPAR) of $146 for the quarter ended September 30, 2024, representing a 3.0% increase compared to the prior year. The average Daily Rate (ADR) was $286, with an occupancy rate of 75.4%.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $471 million | $68 million | +594.6% |
| Adjusted EBITDA | $275 million | $253 million | +8.9% |
| RevPAR | $146 | $142 | +3.0% |
| ADR | $286 | $270 | +6.0% |
| Occupancy Rate | 75.4% | 72.6% | +2.8% pts |
Capital Expenditures
Hyatt invested $119 million in capital expenditures during the nine months ended September 30, 2024, compared to $134 million in the same period of 2023. This includes:
- Maintenance and technology: $94 million
- Enhancements to existing properties: $25 million
Debt and Liquidity
As of September 30, 2024, Hyatt's consolidated debt stood at $3,142 million, with a net debt of $2,008 million. The total debt-to-total capital ratio was 45.9%.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Consolidated Debt | $3,142 million | $3,056 million |
| Stockholders' Equity | $3,697 million | $3,564 million |
| Total Capital | $6,839 million | $6,620 million |
| Net Debt | $2,008 million | $2,160 million |
| Net Debt-to-Total Capital | 29.4% | 32.6% |
Stockholder Returns
Hyatt returned $672 million to stockholders during the quarter, which included $657 million in share repurchases and $15 million in dividends.
Recent Acquisitions
On October 1, 2024, Hyatt completed the acquisition of Standard International for approximately $151 million, enhancing its lifestyle offerings.
Conclusion
The financial and operational performance of Hyatt Hotels Corporation as of 2024 demonstrates a robust recovery and growth trajectory following the impacts of the pandemic. The company's strategic focus on enhancing its portfolio and returning capital to shareholders is evident in its recent activities and financial metrics.
How Hyatt Hotels Corporation (H) Makes Money
Revenue Streams
Hyatt Hotels Corporation generates revenue through several key segments, including:
- Management and Franchising
- Owned and Leased Hotels
- Distribution Services
- Other Revenues
Management and Franchising Segment
The Management and Franchising segment is a significant contributor to Hyatt’s revenue. As of September 30, 2024, the segment reported:
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Base Management Fees | $97 | $94 | 3.2% |
| Incentive Management Fees | $52 | $51 | 2.0% |
| Franchise and Other Fees | $119 | $98 | 21.4% |
| Gross Fees | $268 | $243 | 10.3% |
Owned and Leased Hotels Segment
In the Owned and Leased Hotels segment, Hyatt reported revenues as follows:
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Rooms and Packages | $198 | $201 | -1.5% |
| Food and Beverage | $58 | $62 | -6.5% |
| Other Revenues | $31 | $41 | -24.4% |
| Total Owned and Leased Revenue | $287 | $329 | -12.8% |
Distribution Segment
The Distribution segment provides travel services and accounted for the following revenues:
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Distribution Revenues | $221 | $229 | -3.5% |
| Other Revenues | $0 | $50 | -100.0% |
| Total Segment Revenue | $221 | $279 | -20.8% |
Financial Performance Overview
In the third quarter of 2024, Hyatt reported total revenues of $1,629 million, slightly up from $1,622 million in Q3 2023. The breakdown of total revenues includes:
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Total Revenues | $1,629 | $1,622 |
| Net Income Attributable to Hyatt | $471 | $68 |
| Adjusted EBITDA | $275 | $253 |
Gains on Sales of Real Estate
Hyatt reported substantial gains from real estate sales during 2024:
- $514 million from the sale of Hyatt Regency Orlando
- $257 million from the sale of Park Hyatt Zurich
- $231 million from the UVC Transaction
- $172 million from the sale of Hyatt Regency Aruba Resort Spa and Casino
- $100 million from the sale of Hyatt Regency San Antonio Riverwalk
Capital Management
During the third quarter of 2024, Hyatt returned $672 million to shareholders through:
- $657 million in share repurchases
- $15 million in dividends
Conclusion on Financial Health
As of September 30, 2024, Hyatt's financial position reflects:
| Metric | Value |
|---|---|
| Total Debt | $3,142 million |
| Cash and Cash Equivalents | $1,095 million |
| Net Income for Nine Months | $1,352 million |
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Article updated on 8 Nov 2024
Resources:
- Hyatt Hotels Corporation (H) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hyatt Hotels Corporation (H)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hyatt Hotels Corporation (H)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.