Hyatt Hotels Corporation (NYSE: H) has reported its fourth quarter and full year 2023 financial results. Here are the highlights from the press release:
Financial Results: Net income was $26 million in Q4 2023 and $220 million for the full year, exceeding the full year outlook for 2023. Adjusted net income was $68 million in Q4 2023 and $276 million for the full year. Diluted EPS was $0.25 in Q4 2023 and $2.05 for the full year, with adjusted diluted EPS at $0.64 in Q4 2023 and $2.56 for the full year. Adjusted EBITDA was $241 million in Q4 2023 and $1,029 million for the full year, surpassing the full year outlook range for 2023. Comparable system-wide RevPAR increased 9.1% in Q4 2023 and 17.0% for the full year, compared to the same periods in 2022, exceeding the full year outlook for 2023. Share repurchases totaled approximately 890 thousand Class A shares for $95 million in Q4 2023 and about 4.1 million Class A shares for $453 million for the full year.
Operational Update: A record level of management, franchise, license, and other fees of $256 million were generated in Q4 2023. Comparable system-wide RevPAR increased 9.1% in Q4 2023 and 17.0% for the full year, compared to the same periods in 2022, driven by rapid recovery in Greater China and strengthening group demand in the United States. * 29 new hotels (or 9,648 rooms) joined Hyatt's portfolio in Q4 2023, and 101 new hotels (or 23,965 rooms) joined for the full year, inclusive of 43 hotels (or 13,223 rooms) which converted to a Hyatt brand.
Transactions and Capital Strategy: The company completed a transaction resulting in the restructuring of the entity that owns its unlimited vacation club business by selling 80% of the entity to an investor unaffiliated with Hyatt for $80 million. Hyatt sold Hyatt Regency Aruba Resort Spa and Casino for approximately $240 million to an unrelated third party and entered into a long-term management agreement.
Balance Sheet and Liquidity: Total debt stood at $3,056 million as of December 31, 2023. The company repurchased a total of 889,902 Class A common shares for approximately $95 million in Q4 2023 and repurchased a total of 4,123,828 Class A common shares for approximately $453 million during the full year of 2023.
The company provided an outlook for the 2024 fiscal year, including expectations for system-wide RevPAR, net rooms growth, net income, management, franchise, license, and other fees, adjusted SG&A, adjusted EBITDA, net deferrals and net financed contracts, capital expenditures, free cash flow, and capital returns to shareholders.
Today the company's shares have moved 6.0% to a price of $143.63. For more information, read the company's full 8-K submission here.
