News for the Hospitality Executive |
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Hyatt Hotels Corporation | ||
Table of Contents | ||
Financial Information (unaudited) | ||
1. |
Condensed Consolidated Statements of Income (Loss) |
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2. |
Reconciliation of Non-GAAP to GAAP Measure: Adjusted EBITDA to EBITDA and a reconciliation of EBITDA to Net Income (Loss) Attributable to Hyatt Hotels Corporation |
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3. |
Summary of Special Items - Three Months Ended June 30, 2010 and 2009 |
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4. |
Summary of Special Items - Six Months Ended June 30, 2010 and 2009 |
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5. |
RevPAR, Revenues, and Adjusted EBITDA by Segment, as Reported |
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6. |
Segment Financial Summary |
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7. |
Hotel Chain Statistics - Comparable Locations |
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8. |
Fee Summary |
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9. |
Reconciliation of Non-GAAP to GAAP Measure: Adjusted Selling, General, and Administrative Expenses to Selling, General, and Administrative Expenses |
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10. |
Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and Leased Hotel Operating Margin to Owned and Leased Hotel Operating Margin |
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11. |
Properties and Rooms / Units by Geography |
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12. |
Properties and Rooms / Units by Brand |
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Page 1 |
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Hyatt Hotels Corporation | ||||||||||||||||||
Condensed Consolidated Statements of Income (Loss) | ||||||||||||||||||
For the Three and Six Months Ended June 30, 2010 and 2009 | ||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||
REVENUES: | ||||||||||||||||||
Owned and leased hotels | $ | 483 | $ | 459 | $ | 934 | $ | 875 | ||||||||||
Management and franchise fees | 64 | 55 | 121 | 109 | ||||||||||||||
Other revenues | 12 | 13 | 23 | 29 | ||||||||||||||
Other revenues from managed properties (a) | 330 | 320 | 652 | 623 | ||||||||||||||
Total revenues | 889 | 847 | 1,730 | 1,636 | ||||||||||||||
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||||||||||||||||
Owned and leased hotels | 374 | 366 | 738 | 708 | ||||||||||||||
Depreciation and amortization | 66 | 65 | 136 | 130 | ||||||||||||||
Other direct costs | 2 | 3 | (3 | ) | 8 | |||||||||||||
Selling, general, and administrative | 58 | 69 | 127 | 122 | ||||||||||||||
Other costs from managed properties (a) | 330 | 320 | 652 | 623 | ||||||||||||||
Direct and selling, general, and administrative expenses | 830 | 823 | 1,650 | 1,591 | ||||||||||||||
Net gains (losses) and interest income from marketable securities held to fund | ||||||||||||||||||
operating programs | (8 | ) | 13 | (1 | ) | 8 | ||||||||||||
Equity losses from unconsolidated hospitality ventures | (11 | ) | (11 | ) | (19 | ) | (13 | ) | ||||||||||
Interest expense | (12 | ) | (11 | ) | (24 | ) | (27 | ) | ||||||||||
Asset impairments | (3 | ) | (5 | ) | (3 | ) | (5 | ) | ||||||||||
Other income (loss), net | (6 | ) | (83 | ) | 10 | (56 | ) | |||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 19 | (73 | ) | 43 | (48 | ) | ||||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | - | 25 | (17 | ) | 13 | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 19 | (48 | ) | 26 | (35 | ) | ||||||||||||
DISCONTINUED OPERATIONS: | ||||||||||||||||||
Loss from discontinued operations, net of income tax benefit | ||||||||||||||||||
of $1 and $1 for the three months and $2 and $1 for the six months ended June 30, 2010 and 2009, respectively | (1 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||||
Gain on the sale of discontinued operations, net of income tax expense | ||||||||||||||||||
of $3 and $- for the three months and $3 and $- for the six months ended June 30, 2010 and 2009, respectively | 6 | - | 6 | - | ||||||||||||||
NET INCOME (LOSS) | 24 | (50 | ) | 29 | (38 | ) | ||||||||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1 | - | 1 | 2 | ||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ | 25 | $ | (50 | ) | $ | 30 | $ | (36 | ) | ||||||||
EARNINGS PER SHARE - Basic | ||||||||||||||||||
Income (loss) from continuing operations | $ | 0.11 | $ | (0.33 | ) | $ | 0.15 | $ | (0.26 | ) | ||||||||
Net income (loss) attributable to Hyatt Hotels Corporation | $ | 0.14 | $ | (0.34 | ) | $ | 0.17 | $ | (0.27 | ) | ||||||||
EARNINGS PER SHARE - Diluted | ||||||||||||||||||
Income (loss) from continuing operations | $ | 0.11 | $ | (0.33 | ) | $ | 0.15 | $ | (0.26 | ) | ||||||||
Net income (loss) attributable to Hyatt Hotels Corporation | $ | 0.14 | $ | (0.34 | ) | $ | 0.17 | $ | (0.27 | ) | ||||||||
Basic share counts | 174.1 | 145.6 | 174.0 | 132.8 | ||||||||||||||
Diluted share counts | 174.3 | 145.6 | 174.1 | 132.8 | ||||||||||||||
(a) The Company includes in total revenues the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin and includes in Direct and Selling, General and Administrative Expenses these reimbursed costs. These costs relate primarily to payroll costs where the Company is the employer. | ||||||||||||||||||
Page 2 |
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Hyatt Hotels Corporation | |||||||||||||||||
Reconciliation of Non-GAAP to GAAP Measure: Adjusted EBITDA to EBITDA and a reconciliation of EBITDA to Net Income (Loss) Attributable to Hyatt Hotels Corporation | |||||||||||||||||
The table below provides a reconciliation of consolidated Adjusted EBITDA to EBITDA and a reconciliation of EBITDA to Net Income (Loss) Attributable to Hyatt Hotels Corporation. Adjusted EBITDA, as the Company defines it, is a non-GAAP financial measure. See definitions for our definition of Adjusted EBITDA and why we present it. | |||||||||||||||||
(in millions) | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||
Adjusted EBITDA | $ | 135 | $ | 120 | $ | 247 | $ | 211 | |||||||||
Equity losses from unconsolidated hospitality ventures | (11 | ) | (11 | ) | (19 | ) | (13 | ) | |||||||||
Asset impairments | (3 | ) | (5 | ) | (3 | ) | (5 | ) | |||||||||
Other income (loss), net | (6 | ) | (83 | ) | 10 | (56 | ) | ||||||||||
Discontinued operations, net of tax | 5 | (2 | ) | 3 | (3 | ) | |||||||||||
Net loss attributable to noncontrolling interests | 1 | - | 1 | 2 | |||||||||||||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | (18 | ) | (18 | ) | (32 | ) | (28 | ) | |||||||||
EBITDA | $ | 103 | $ | 1 | $ | 207 | $ | 108 | |||||||||
Depreciation and amortization | (66 | ) | (65 | ) | (136 | ) | (130 | ) | |||||||||
Interest expense | (12 | ) | (11 | ) | (24 | ) | (27 | ) | |||||||||
(Provision) benefit for income taxes | - | 25 | (17 | ) | 13 | ||||||||||||
Net Income (Loss) Attributable to Hyatt Hotels Corporation | $ | 25 | $ | (50 | ) | $ | 30 | $ | (36 | ) | |||||||
Page 3 |
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Hyatt Hotels Corporation | |||||||||||||||||||||||||||
Summary of Special Items - Three Months Ended June 30, 2010 and 2009 | |||||||||||||||||||||||||||
The following table includes the detail of special items which resulted in decreases (increases) to pretax income (loss), net income (loss) attributable to Hyatt Hotels Corporation and diluted EPS for the three months ended June 30, 2010 and June 30, 2009, respectively. |
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(in millions, except per share amounts) | |||||||||||||||||||||||||||
Three Months Ended June 30, 2010 | Three Months Ended June 30, 2009 | ||||||||||||||||||||||||||
Location on Condensed Consolidated Statements of Income (Loss) |
Pretax Income (Loss) |
Net Income (Loss) Attributable to Hyatt Hotels Corporation |
Diluted EPS | Pretax Income (Loss) | Net Income (Loss) Attributable to Hyatt Hotels Corporation | Diluted EPS | |||||||||||||||||||||
Special Items: | |||||||||||||||||||||||||||
Discontinued operations (a) | (Gain) Loss from discontinued operations | $ | - | $ | (5 | ) | $ | (0.03 | ) | $ | - | $ | 2 | $ | 0.01 | ||||||||||||
Income from cost method investment (b) | Other income (loss), net | - | - | - | (1 | ) | (1 | ) | (0.01 | ) | |||||||||||||||||
Asset impairments (c) | Asset impairments | 3 | 2 | 0.01 | 5 | 3 | 0.02 | ||||||||||||||||||||
Unconsolidated hospitality
ventures |
Equity losses from unconsolidated hospitality ventures |
9 | 6 | 0.03 | 10 | 6 | 0.04 | ||||||||||||||||||||
Debt settlement costs (e) | Other income (loss), net | - | - | - | 93 | 57 | 0.39 | ||||||||||||||||||||
Marketable securities (f) | Other income (loss), net | 9 | 5 | 0.03 | (5 | ) | (3 | ) | (0.02 | ) | |||||||||||||||||
Total Special Items | $ | 21 | $ | 8 | $ | 0.04 | $ | 102 | $ | 64 | $ | 0.43 | |||||||||||||||
a) Discontinued operations - During the three months ended June 30, 2010 we sold a residential property and recognized a gain on sale of $6 million, net of taxes. This gain was partially offset by a loss from operations at one of our owned hotels of $1 million. During the three months ended June 30, 2009 we incurred a $3 million charge related to the impairment of property and equipment in one of our owned hotels that has been classified as available for sale in 2010. | |||||||||||||||||||||||||||
b) Income from cost method investment - In 2009, we recorded $1 million of income related to distributions from certain non-hospitality related real estate investments. | |||||||||||||||||||||||||||
c) Asset impairments - During the second quarter of 2010, we identified and recorded $3 million of asset impairment charges related to the impairment of property and equipment at one of our owned hotels. During the second quarter of 2009, we recorded a $5 million impairment of intangible assets relating to a management agreement covering certain select service hotels. | |||||||||||||||||||||||||||
d) Unconsolidated hospitality ventures impairments - During the second quarter of 2010, we recorded an impairment charge of $9 million related to an investment in a vacation ownership property. During the second quarter of 2009, we recorded $10 million of impairment charges, of which $7 million related to an investment in a hospitality venture property and $3 million related to an investment in a vacation ownership property. | |||||||||||||||||||||||||||
e) Debt settlement costs - Amounts relate to costs associated with the repurchase of senior subordinated notes and early settlement of a subscription agreement. The costs include $88 million of make whole payments and early settlement premiums and a $5 million write-off of deferred financing costs. | |||||||||||||||||||||||||||
f) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs. | |||||||||||||||||||||||||||
Page 4 |
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Hyatt Hotels Corporation | |||||||||||||||||||||||||||
Summary of Special Items - Six Months Ended June 30, 2010 and 2009 | |||||||||||||||||||||||||||
The following table includes the detail of special items which resulted in decreases (increases) to pretax income (loss), net income (loss) attributable to Hyatt Hotels Corporation and diluted EPS for the six months ended June 30, 2010 and June 30, 2009, respectively. |
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(in millions, except per share amounts) | |||||||||||||||||||||||||||
Six Months Ended June 30, 2010 | Six Months Ended June 30, 2009 | ||||||||||||||||||||||||||
Location on Condensed Consolidated Statements of Income (Loss) | Pretax Income (Loss) | Net Income (Loss) Attributable to Hyatt Hotels Corporation | Diluted EPS | Pretax Income (Loss) | Net Income (Loss) Attributable to Hyatt Hotels Corporation | Diluted EPS | |||||||||||||||||||||
Special Items: | |||||||||||||||||||||||||||
Discontinued operations (a) | (Gain) Loss from discontinued operations | $ | - | $ | (3 | ) | $ | (0.02 | ) | $ | - | $ | 3 | $ | 0.02 | ||||||||||||
Income from cost method investment (b) | Other income (loss), net | - | - | - | (22 | ) | (14 | ) | (0.11 | ) | |||||||||||||||||
Asset impairments (c) | Asset impairments | 3 | 2 | 0.01 | 5 | 3 | 0.02 | ||||||||||||||||||||
Unconsolidated hospitality
ventures |
Equity losses from unconsolidated hospitality ventures |
9 | 6 | 0.03 | 10 | 6 | 0.05 | ||||||||||||||||||||
Debt settlement costs (e) | Other income (loss), net | - | - | - | 93 | 57 | 0.43 | ||||||||||||||||||||
Marketable securities (f) | Other income (loss), net | (2 | ) | (1 | ) | (0.01 | ) | (2 | ) | (1 | ) | (0.01 | ) | ||||||||||||||
Total Special Items | $ | 10 | $ | 4 | $ | 0.01 | $ | 84 | $ | 54 | $ | 0.40 | |||||||||||||||
a) Discontinued operations - During the six months ended June 30, 2010 we sold a residential property and recognized a gain on sale of $6 million, net of taxes. The gain was partially offset by an impairment charge and loss from operations at one of our owned hotels for a total of $3 million. During the six months ended June 30, 2009 we incurred a $3 million charge related to the impairment of property and equipment in one of our owned hotels that has been classified as available for sale in 2010. | |||||||||||||||||||||||||||
b) Income from cost method investment - In 2009, we recorded $22 million of income related to distributions from certain non-hospitality related real estate investments. | |||||||||||||||||||||||||||
c) Asset impairments - During 2010, we identified and recorded $3 million of asset impairment charges related to the impairment of property and equipment at one of our owned hotels. During 2009, we recorded a $5 million impairment of intangible assets relating to a management agreement covering certain select service hotels. | |||||||||||||||||||||||||||
d) Unconsolidated hospitality ventures impairments - During the second quarter of 2010, we recorded an impairment charge of $9 million related to an investment in a vacation ownership property. During the second quarter of 2009, we recorded $10 million of impairment charges, of which $7 million related to an investment in a hospitality venture property and $3 million related to an investment in a vacation ownership property. | |||||||||||||||||||||||||||
e) Debt settlement costs - Amounts relate to costs associated with the repurchase of senior subordinated notes and early settlement of a subscription agreement. The costs include $88 million of make whole payments and early settlement premiums and a $5 million write-off of deferred financing costs. | |||||||||||||||||||||||||||
f) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs. | |||||||||||||||||||||||||||
Page 5 |
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Hyatt Hotels Corporation | ||||||||||||||||||||||||
RevPAR, Revenues, and Adjusted EBITDA by Segment, as Reported | ||||||||||||||||||||||||
Owned and Leased Hotels | ||||||||||||||||||||||||
(in millions, except for RevPAR statistics and percentages) | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | Change ($) | Change (%) | 2010 | 2009 | Change ($) | Change (%) | |||||||||||||||||
RevPAR (comparable owned and leased hotels) | ||||||||||||||||||||||||
Full Service | $ | 128 | $ | 116 | $ | 12 | 9.8% | $ | 123 | $ | 112 | $ | 11 | 10.4% | ||||||||||
Select Service | 71 | 65 | 6 | 8.6% | 66 | 63 | 3 | 5.9% | ||||||||||||||||
Total Owned and Leased Hotels | $ | 113 | $ | 103 | $ | 10 | 9.6% | $ | 109 | $ | 99 | $ | 10 | 9.7% | ||||||||||
Revenues | $ | 483 | $ | 459 | $ | 24 | 5.2% | $ | 934 | $ | 875 | $ | 59 | 6.7% | ||||||||||
Adjusted EBITDA | $ | 103 | $ | 92 | $ | 11 | 12.0% | $ | 185 | $ | 157 | $ | 28 | 17.8% | ||||||||||
North American Management and Franchising | ||||||||||||||||||||||||
(in millions, except for RevPAR statistics and percentages) | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | Change ($) | Change (%) | 2010 | 2009 | Change ($) | Change (%) | |||||||||||||||||
RevPAR (North America comparable hotels) | ||||||||||||||||||||||||
North America Full Service | $ | 116 | $ | 109 | $ | 7 | 6.8% | $ | 109 | $ | 106 | $ | 3 | 2.5% | ||||||||||
North America Select Service | 70 | 65 | 5 | 7.8% | 66 | 63 | 3 | 5.3% | ||||||||||||||||
Revenues | ||||||||||||||||||||||||
Management, Franchise and Other Fees | $ | 52 | $ | 48 | $ | 4 | 8.3% | $ | 97 | $ | 93 | $ | 4 | 4.3% | ||||||||||
Other Revenues from Managed Properties | 309 | 304 | 5 | 1.6% | 611 | 589 | 22 | 3.7% | ||||||||||||||||
Total Revenue | $ | 361 | $ | 352 | $ | 9 | 2.6% | $ | 708 | $ | 682 | $ | 26 | 3.8% | ||||||||||
Adjusted EBITDA | $ | 41 | $ | 35 | $ | 6 | 17.1% | $ | 72 | $ | 65 | $ | 7 | 10.8% | ||||||||||
International Management and Franchising | ||||||||||||||||||||||||
(in millions, except for RevPAR statistics and percentages) | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | Change ($) | Change (%) | 2010 | 2009 | Change ($) | Change (%) | |||||||||||||||||
RevPAR (International comparable hotels) | ||||||||||||||||||||||||
International Full Service | $ | 139 | $ | 115 | $ | 24 | 21.4% | $ | 137 | $ | 114 | $ | 23 | 20.1% | ||||||||||
Revenues | ||||||||||||||||||||||||
Management, Franchise and Other Fees | $ | 34 | $ | 28 | $ | 6 | 21.4% | $ | 66 | $ | 54 | $ | 12 | 22.2% | ||||||||||
Other Revenues from Managed Properties | 16 | 12 | 4 | 33.3% | 32 | 26 | 6 | 23.1% | ||||||||||||||||
Total Revenue | $ | 50 | $ | 40 | $ | 10 | 25.0% | $ | 98 | $ | 80 | $ | 18 | 22.5% | ||||||||||
Adjusted EBITDA | $ | 18 | $ | 12 | $ | 6 | 50.0% | $ | 32 | $ | 24 | $ | 8 | 33.3% | ||||||||||
Page 6 |
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Hyatt Hotels Corporation | ||||||||||||||||
Segment Financial Summary | ||||||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue: | ||||||||||||||||
Owned and leased | $ | 483 | $ | 459 | $ | 934 | $ | 875 | ||||||||
North America | 52 | 48 | 97 | 93 | ||||||||||||
International | 34 | 28 | 66 | 54 | ||||||||||||
Total Management and franchising | 86 | 76 | 163 | 147 | ||||||||||||
Corporate and other | 12 | 13 | 23 | 29 | ||||||||||||
Other revenues from managed properties | 330 | 320 | 652 | 623 | ||||||||||||
Eliminations | (22 | ) | (21 | ) | (42 | ) | (38 | ) | ||||||||
Total revenues | $ | 889 | $ | 847 | $ | 1,730 | $ | 1,636 | ||||||||
Adjusted EBITDA: | ||||||||||||||||
Owned and leased | $ | 85 | $ | 74 | $ | 153 | $ | 129 | ||||||||
Pro rata share of unconsolidated hospitality ventures | 18 | 18 | 32 | 28 | ||||||||||||
Total owned and leased | 103 | 92 | 185 | 157 | ||||||||||||
North America management and franchising | 41 | 35 | 72 | 65 | ||||||||||||
International management and franchising | 18 | 12 | 32 | 24 | ||||||||||||
Corporate and other | (27 | ) | (19 | ) | (42 | ) | (35 | ) | ||||||||
Adjusted EBITDA | $ | 135 | $ | 120 | $ | 247 | $ | 211 | ||||||||
Page 8 |
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Hyatt Hotels Corporation | ||||||||||||||||||||||
Fee Summary | ||||||||||||||||||||||
(in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2010 | 2009 | Change ($) | Change (%) | 2010 | 2009 | Change ($) | Change (%) | |||||||||||||||
Fees: | ||||||||||||||||||||||
Base management fees | $ | 34 | $ | 29 | $ | 5 | 17.2% | $ | 64 | $ | 58 | $ | 6 | 10.3% | ||||||||
Incentive management fees | 23 | 20 | 3 | 15.0% | 43 | 40 | 3 | 7.5% | ||||||||||||||
Franchise and other fees | 7 | 6 | 1 | 16.7% | 14 | 11 | 3 | 27.3% | ||||||||||||||
Total fees | $ | 64 | $ | 55 | $ | 9 | 16.4% | $ | 121 | $ | 109 | $ | 12 | 11.0% | ||||||||
Page 9 |
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Hyatt Hotels Corporation | ||||||||||||||||||||||||||||
Reconciliation of Non-GAAP to GAAP Measure: Adjusted Selling, General, and Administrative Expenses to Selling, General, and Administrative Expenses | ||||||||||||||||||||||||||||
Results of operations as presented on condensed consolidated statements of income (loss) include the impact of expenses recognized with respect to employee benefit programs funded through rabbi trusts. Certain of these expenses are recognized in selling, general, and administrative expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund operating programs, thus having no net impact to our earnings. Below is a reconciliation of this account excluding the impact of our rabbi trust investments. | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2010 | 2009 | Change ($) | Change (%) | 2010 | 2009 | Change ($) | Change (%) | |||||||||||||||||||||
Adjusted Selling, General and Administrative Expenses | $ | 64 | $ | 61 | $ | 3 | 4.9 | % | $ | 129 | $ | 119 | $ | 10 | 8.4 | % | ||||||||||||
Rabbi Trust impact | (6 | ) | 8 | (14 | ) | (175.0 | )% | (2 | ) | 3 | (5 | ) | (166.7 | )% | ||||||||||||||
Selling, General and Administrative Expenses | $ | 58 | $ | 69 | $ | (11 | ) | (15.9 | )% | $ | 127 | $ | 122 | $ | 5 | 4.1 | % | |||||||||||
Page 10 |
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Hyatt Hotels Corporation | |||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and Leased Hotel Operating Margin to Owned and Leased Hotel Operating Margin | |||||||||||||||||||||||||||||||
Below is a breakdown of consolidated owned and leased hotels revenues and expenses, as used in calculating comparable owned and leased hotel operating margin percentages. Results of operations as presented on condensed consolidated statements of income (loss) include the impact of expenses recognized with respect to employee benefit programs funded through rabbi trusts. Certain of these expenses are recognized in owned and leased hotels expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund operating programs, thus having no net impact to our earnings. Below is a reconciliation of this account excluding the impact of our rabbi trusts and excluding the impact of non-comparable hotels. | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2010 | 2009 | Change ($) |
Change (%) |
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2010 | 2009 |
Change ($) |
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Change (%) | ||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||
Comparable owned and leased hotels | $ | 482 | $ | 450 | $ | 32 | 7.1 | % | $ | 930 | $ | 863 | $ | 67 | 7.8 | % | |||||||||||||||
Noncomparable hotels | 1 | 9 | (8 | ) | (88.9 | )% | 4 | 12 | (8 | ) | (66.7 | )% | |||||||||||||||||||
Owned and Leased Hotels Revenue | $ | 483 | $ | 459 | $ | 24 | 5.2 | % | $ | 934 | $ | 875 | $ | 59 | 6.7 | % | |||||||||||||||
Expenses | |||||||||||||||||||||||||||||||
Comparable owned and leased hotels | $ | 375 | $ | 356 | $ | 19 | 5.3 | % | $ | 734 | $ | 696 | $ | 38 | 5.5 | % | |||||||||||||||
Noncomparable hotels | 2 | 6 | (4 | ) | (66.7 | )% | 6 | 9 | (3 | ) | (33.3 | )% | |||||||||||||||||||
Rabbi Trust | (3 | ) | 4 | (7 | ) | (175.0 | )% | (2 | ) | 3 | (5 | ) | (166.7 | )% | |||||||||||||||||
Owned and Leased Hotels Expense | $ | 374 | $ | 366 | $ | 8 | 2.2 | % | $ | 738 | $ | 708 | $ | 30 | 4.2 | % | |||||||||||||||
Owned and leased hotel operating margins percentage | 22.6 | % | 20.3 | % | 2.3 | % | 21.0 | % | 19.1 | % | 1.9 | % | |||||||||||||||||||
Comparable owned and leased hotel operating margin percentage | 22.2 | % | 20.9 | % | 1.3 | % | 21.1 | % | 19.4 | % | 1.7 | % | |||||||||||||||||||
Page 11 |
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Hyatt Hotels Corporation | |||||||||||||||||||||||||||
Properties and Rooms/Units by Geography | |||||||||||||||||||||||||||
June 30, 2010 | March 31, 2010 | December 31, 2009 | QTD Change | YTD Change | |||||||||||||||||||||||
Owned and leased hotels | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | |||||||||||||||||
Full service | 47 | 21,211 | 47 | 21,146 | 47 | 21,447 | - | 65 | - | (236 | ) | ||||||||||||||||
Select service | 55 | 7,169 | 55 | 7,169 | 55 | 7,169 | - | - | - | - | |||||||||||||||||
Total owned and leased hotels | 102 | 28,380 | 102 | 28,315 | 102 | 28,616 | - | 65 | - | (236 | ) | ||||||||||||||||
Managed and franchised hotels | |||||||||||||||||||||||||||
(includes owned and leased hotels) | |||||||||||||||||||||||||||
North America | June 30, 2010 | March 31, 2010 | December 31, 2009 | Change | Change | ||||||||||||||||||||||
Full service hotels | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | |||||||||||||||||
Managed (a) | 116 | 60,828 | 114 | 60,082 | 110 | 59,225 | 2 | 746 | 6 | 1,603 | |||||||||||||||||
Franchised | 12 | 3,619 | 11 | 3,404 | 11 | 3,401 | 1 | 215 | 1 | 218 | |||||||||||||||||
Subtotal | 128 | 64,447 | 125 | 63,486 | 121 | 62,626 | 3 | 961 | 7 | 1,821 | |||||||||||||||||
Select service hotels | |||||||||||||||||||||||||||
Managed | 81 | 10,436 | 81 | 10,436 | 80 | 10,285 | - | - | 1 | 151 | |||||||||||||||||
Franchised | 110 | 13,956 | 101 | 12,832 | 96 | 12,218 | 9 | 1,124 | 14 | 1,738 | |||||||||||||||||
Subtotal | 191 | 24,392 | 182 | 23,268 | 176 | 22,503 | 9 | 1,124 | 15 | 1,889 | |||||||||||||||||
- | - | ||||||||||||||||||||||||||
International (b) | |||||||||||||||||||||||||||
Managed (a) | 100 | 34,006 | 100 | 34,011 | 100 | 33,914 | - | (5 | ) | - | 92 | ||||||||||||||||
Franchised | 2 | 988 | 2 | 988 | 2 | 988 | - | - | - | - | |||||||||||||||||
Subtotal | 102 | 34,994 | 102 | 34,999 | 102 | 34,902 | - | (5 | ) | - | 92 | ||||||||||||||||
Total managed & franchised hotels | 421 | 123,833 | 409 | 121,753 | 399 | 120,031 | 12 | 2,080 | 22 | 3,802 | |||||||||||||||||
Vacation ownership | 15 | 962 | 15 | 962 | 15 | 962 | - | - | - | - | |||||||||||||||||
Residential | 9 | 1,252 | 10 | 1,337 | 10 | 1,324 | (1 | ) | (85 | ) | (1 | ) | (72 | ) | |||||||||||||
- | - | ||||||||||||||||||||||||||
Total properties and rooms/units | 445 | 126,047 | 434 | 124,052 | 424 | 122,317 | 11 | 1,995 | 21 | 3,730 | |||||||||||||||||
(a) Park Hyatt and Andaz branded hotels located in North America were reclassified from international managed to North America managed as of December 31, 2009. |
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Park Hyatt and Andaz branded hotels were previously managed by and reported within our international management and franchising segment, regardless of the property's location. | |||||||||||||||||||||||||||
(b) Additional details included for a regional breakout of international managed and franchised hotels. |
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International managed & franchised hotels | June 30, 2010 | March 31, 2010 | December 31, 2009 | QTD Change | YTD Change | ||||||||||||||||||||||
(includes owned and leased hotels) | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | |||||||||||||||||
Asia Pacific | 51 | 20,372 | 51 | 20,373 | 51 | 20,276 | - | (1 | ) | - | 96 | ||||||||||||||||
Southwest Asia | 12 | 4,207 | 12 | 4,207 | 12 | 4,207 | - | - | - | - | |||||||||||||||||
Europe, Africa, Middle East. | 32 | 8,497 | 32 | 8,501 | 32 | 8,501 | - | (4 | ) | - | (4 | ) | |||||||||||||||
Other Americas | 7 | 1,918 | 7 | 1,918 | 7 | 1,918 | - | - | - | - | |||||||||||||||||
- | - | - | - | ||||||||||||||||||||||||
Total International | 102 | 34,994 | 102 | 34,999 | 102 | 34,902 | - | (5 | ) | - | 92 | ||||||||||||||||
Page 12 |
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Hyatt Hotels Corporation |
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Properties and Rooms/Units by Brand | |||||||||||||||||||||
June 30, 2010 | March 31, 2010 | December 31, 2009 | QTD Change | YTD Change | |||||||||||||||||
Brand |
Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | |||||||||||
Park Hyatt | 25 | 5,054 | 24 | 4,729 | 25 | 4,901 | 1 | 325 | - | 153 | |||||||||||
Andaz | 4 | 912 | 4 | 912 | 2 | 505 | - | - | 2 | 407 | |||||||||||
Grand Hyatt | 37 | 21,567 | 37 | 21,567 | 37 | 21,561 | - | - | - | 6 | |||||||||||
Hyatt Regency/Hyatt | 164 | 71,908 | 162 | 71,277 | 159 | 70,561 | 2 | 631 | 5 | 1,347 | |||||||||||
Hyatt Place | 157 | 19,810 | 151 | 19,055 | 146 | 18,433 | 6 | 755 | 11 | 1,377 | |||||||||||
Hyatt Summerfield Suites | 34 | 4,582 | 31 | 4,213 | 30 | 4,070 | 3 | 369 | 4 | 512 | |||||||||||
Vacation Ownership & Residential. | 24 | 2,214 | 25 | 2,299 | 25 | 2,286 | (1) | (85) | (1) | (72) | |||||||||||
Total | 445 | 126,047 | 434 | 124,052 | 424 | 122,317 | 11 | 1,995 | 21 | 3,730 |
Contact:
Farley Kern Hyatt Hotels Corporation 312-780-5506 [email protected] |