Hyatt Reports Fourth Quarter And Full Year 2024 Results

Hyatt’s Financials for Q4 and FY24

Hyatt Hotels Corporation has reported fourth quarter and full year 2024 results. Highlights include:

• Comparable system-wide hotels RevPAR growth was 5.0% in the fourth quarter and 4.6% for the full year of 2024, compared to the same periods in 2023

• Comparable system-wide all-inclusive resorts’ Net Package RevPAR growth was 2.9% in the fourth quarter and 4.4% for the full year of 2024

• Net room growth was 7.8% for the full year of 2024, in line with the full-year outlook for 2024

• Net income (loss) was $(56) million in the fourth quarter and $1,296 million for the full year of 2024. Adjusted net income was $40 million in the fourth quarter and $375 million for the full year of 2024

• Diluted EPS was $(0.58) in the fourth quarter and $12.65 for the full year of 2024. Adjusted Diluted EPS was $0.42 in the fourth quarter and $3.66 for the full year of 2024

• Adjusted EBITDA was $255 million in the fourth quarter and $1,096 million for the full year of 2024

• A pipeline of executed management or franchise contracts was approximately 138,000 rooms

• Repurchased approximately 8 million shares of Class A and Class B common stock for an aggregate purchase price of $1,190 million for the full year of 2024, returning $1,250 million to shareholders through dividends and share repurchases

• 2025 full-year comparable system-wide hotels RevPAR growth is projected to increase 2.0% to 4.0% on a constant currency basis, compared to the full year of 2024

• 2025 full-year net rooms growth is projected to be 6.0% to 7.0%, compared to the full year of 2024

• 2025 full-year net income is projected between $190 million and $240 million

• 2025 full-year Adjusted EBITDA is projected between $1,100 million and $1,150 million

Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, “The purposeful evolution of our business model and strong brand focus has accelerated our network effect benefiting each of our stakeholders. Our fourth quarter results demonstrate the strength of our commercial offerings, as evidenced by the growth of the World of Hyatt loyalty program, which reached approximately 54 million members. Our operating results and industry leading net rooms growth allowed us to achieve record levels of gross fees while returning over $1.2 billion to shareholders in 2024.”

Fourth Quarter Results and Highlights

Adjusted EBITDA increased 20.3% in the fourth quarter of 2024, compared to the same period in 2023 when adjusted for the net impact of asset sales.

• Management and franchising: Results reflected strong business and leisure transient travel, while group demand during the fourth quarter was impacted by the shift of the Jewish holidays and the U.S. election in November. In the United States, performance was driven by the continued recovery in business transient travel. Greater China Hotel’s RevPAR growth was flat compared to last year, a significant improvement from the third quarter of 2024 results as business transient travel benefited Mainland China hotels. International inbound travel continues to drive growth in the Asia Pacific, excluding Greater China.

• Owned and leased: Adjusted EBITDA increased 5.1% in the fourth quarter, compared to the same period in 2023 when adjusted for the net impact of transactions. Comparable owned and leased margins increased to 20.5%, up 70 bps, in the fourth quarter, driven by strong rates in the same period in 2023.

• Distribution: Hurricane Milton and lower booking volumes for the fourth quarter impacted results, partially offset by lower overhead costs. Excluding the impact of the UVC Transaction, Adjusted EBITDA decreased $4 million.

Openings and Development

Notable openings included Grand Hyatt Deer Valley, Dreams Madeira Resort Spa & Marina, Park Hyatt London River Thames, Thompson Palm Springs, and nine UrCove properties.

As of December 31, 2024, the Company had a pipeline of executed management or franchise contracts for approximately 720 hotels (or approximately 138,000 rooms), representing pipeline expansion of roughly 9% year over year.

Transactions and Capital Strategy

During the fourth quarter of 2024, the Company:

• Acquired Standard International, as previously announced, on October 1, 2024, for approximately $150 million and up to an additional $185 million of contingent consideration.

• Closed the Bahia Principe Transaction on December 27, 2024, for €359 million (approximately $374 million). Additional deferred consideration of €60 million is payable at future dates.

• Completed the asset acquisition of three Alua properties on November 15, 2024, for €117 million (approximately $123 million) and assumed $53 million of long-term debt as part of the transaction. The Company intends to sell these assets and has begun the marketing process.

• Sold Hyatt Regency O’Hare Chicago for gross proceeds of $40 million on December 10, 2024, to an unrelated third party and entered into a long-term franchise agreement. The Company provided $20 million in seller financing and committed to a loan of up to $45 million for a future renovation.

• Sold its ownership interests in two unconsolidated hospitality ventures, Park Hyatt Los Cabos at Cabo Del Sol Hotel and Residences on December 13, 2024, and Hyatt Centric Downtown Nashville on December 17, 2024, and retained long-term management agreements.

On February 10, 2025, the Company announced its agreement to purchase all outstanding shares of Playa Hotels & Resorts N.V. (“Playa”) for $13.50 per share, totalling approximately $2.6 billion. This includes around $900 million in debt, net of cash (called the “Playa Transaction”). Upon closing, the Company intends to announce a new commitment to generate at least $2.0 billion from asset sales by the end of 2027. This initiative may encompass both Hyatt’s existing assets and Playa’s properties. The Company anticipates that its asset-light earnings mix will surpass 90% on a pro forma basis in 2027. To finance the acquisition, the Company plans to utilize entirely new debt. It expects to pay off over 80% of this debt with projected proceeds from the asset sales after closing the transaction.

Balance Sheet and Liquidity

As of December 31, 2024, the Company reported the following:

• Total debt of $3,782 million.

• Pro rata share of unconsolidated hospitality venture debt of $370 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees under separate agreements.

• Total liquidity of approximately $2.9 billion with $1,383 million of cash and cash equivalents and short-term investments, and borrowing availability of $1,497 million under Hyatt’s revolving credit facility, net of letters of credit outstanding.

On November 20, 2024, the Company issued $150 million in senior notes due in 2029 at an issue price of 99.693%. This issuance contributes to a total of $600 million of 5.250% senior notes due in 2029, of which $450 million was initially issued on June 17, 2024. Additionally, the Company issued $450 million of 5.375% senior notes due in 2031, priced at 99.745%. The Company obtained about $594 million in net proceeds in the fourth quarter after deducting underwriting discounts and offering expenses. These proceeds will repay the 5.375% senior notes due on April 23, 2025, before their maturity date.

In the fourth quarter, the Company bought back 69,194 Class A common stock shares for about $11 million. For 2024, it repurchased 4,362,776 shares of Class A and 3,629,480 shares of Class B common stock, amounting to approximately $1,190 million. By the end of the fourth quarter, the Company had 42,613,090 Class A shares and 53,531,579 Class B shares issued and outstanding. Throughout 2024, the Company returned $1,250 million to its shareholders, which includes dividends and share repurchases. As of December 31, 2024, approximately $971 million remains available under its share repurchase authorization.

The Company’s board of directors has announced a cash dividend of $0.15 per share for Q1 2025. This dividend will be paid on March 12, 2025, to Class A and Class B stockholders on record as of February 28, 2025.

2025 Outlook

The Company offers the following forecast for the 2025 fiscal year. Please see slide 13 in the fourth quarter and full year 2024 investor presentation for the growth outlook of Adjusted EBITDA, which has been adjusted for asset sales. Because of the ongoing Playa Transaction, the Company cannot provide shareholders with an outlook on capital returns.

1. RevPAR is based on constant currency, whereby previous periods are translated based on the current period’s exchange rate. The system-wide hotels’ RevPAR growth percentage for 2025 vs. 2024 is based on comparable hotels.
2. Refer to the tables on schedule A-11 to reconcile estimated net income attributable to Hyatt Hotels Corporation to Adjusted EBITDA, G&A expenses to Adjusted G&A Expenses, and net cash provided by operating activities to Free Cash Flow and Adjusted Free Cash Flow.
3. During the year ended December 31, 2024, the Company revised its definition of Adjusted EBITDA to exclude transaction and integration costs and recast prior-period results to provide comparability. Refer to page A-6 of the schedules for additional detail.

No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2025 Outlook. The Company’s 2025 Outlook is based on several assumptions that are subject to change, many of which are outside the control of the Company. The Company’s expectations may change if actual results vary from these assumptions. There can be no assurance that Hyatt will achieve these results.