CHICAGO--November
3, 2010--Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H)
today reported financial results for the third quarter and year-to-date
2010 as follows:
THIRD QUARTER 2010
- Adjusted EBITDA was $111 million
compared to $92 million in the third quarter of 2009, an increase of
20.7%.
- Net income attributable to Hyatt
was $30 million, or $0.17 per share, compared to net income
attributable to Hyatt of $5 million, or $0.03 per share, in the third
quarter of 2009. Net income attributable to Hyatt included a favorable
impact from special items of $21 million after-tax, or $0.11 per share,
during the third quarter of 2010 compared to a favorable impact from
special items of $5 million after-tax, or $0.03 per share, during the
third quarter of 2009. See the table on page 3 of the accompanying
schedules for a summary of special items.
- Comparable owned and leased hotels
RevPAR increased 6.9% (7.3% excluding the effect of currency) compared
to the third quarter of 2009.
- Owned and leased hotel operating
margins increased 120 basis points compared to the third quarter of
2009. Comparable owned and leased hotel operating margins increased 130
basis points compared to the same period in 2009. See the table on page
8 of the accompanying schedules for a reconciliation of comparable
owned and leased hotel operating margins to owned and leased hotel
operating margins.
- Comparable North American
full-service RevPAR increased 7.5% (7.3% excluding the effect of
currency) compared to the third quarter of 2009. Comparable North
American select-service RevPAR increased 9.1% compared to the third
quarter of 2009.
- Comparable International RevPAR
increased 17.3% (15.1% excluding the effect of currency) compared to
the third quarter of 2009.
- The Company opened three properties
during the third quarter of 2010.
Mark S. Hoplamazian, president and chief executive officer of
Hyatt Hotels Corporation, said, "During the third quarter, RevPAR,
margins, and fees increased as a result of improved demand. Higher
levels of corporate and group business resulted in improved performance
at convention and business hotels in particular. International hotels
continued to perform well as occupancies and rates increased in several
regions, contributing to fee growth of approximately 25% in the
quarter."
"During the third quarter, we opened three hotels, including
Andaz 5th Avenue in New York City, an owned property. In total, we
expect to open approximately 30 properties in 2010. In terms of future
expansion, last month we announced the development of Andaz Wailea
Resort and Residences in Maui, Hawaii, which is scheduled to open in
2012. Also, during the last week we announced the development of three
new hotels in New York -- Park Hyatt New York, Hyatt 48Lex, and a Hyatt
property near Union Square. Also, the major renovation of Grand Hyatt
New York is progressing well. We are excited about increasing and
improving our presence in key markets in the years ahead."
THIRD QUARTER 2010 SEGMENT RESULTS &
OTHER ITEMS
Owned and Leased Hotels Segment
Adjusted EBITDA increased 16.7% in the third quarter of 2010
compared to the same period in 2009.
RevPAR for comparable owned and leased hotels increased 6.9%
(7.3% excluding the effect of currency) in the third quarter of 2010
compared to the same period in 2009. Occupancy improved 440 basis
points, and ADR increased 0.7% (1.0% excluding the effect of currency).
Revenues increased 3.9% (4.1% excluding the effect of
currency) in the third quarter of 2010 compared to the same period in
2009. Comparable hotel revenues increased 5.6% (5.9% excluding the
effect of currency) largely due to increased occupancy in the third
quarter of 2010 compared to the same period in 2009. The strong
performance at the Company’s North American owned and leased hotels
contributed significantly to the revenue growth in the third quarter of
2010 compared to the same period in 2009.
Owned and leased expenses increased 2.5% in the third quarter
of 2010 compared to the same period in 2009. Excluding expenses related
to benefit programs funded through Rabbi Trusts and non-comparable
hotel expenses, expenses increased 4.0% in the third quarter of 2010
compared to the same period in 2009. See the table on page 8 of the
accompanying schedules for a reconciliation of comparable owned and
leased hotels expense to owned and leased hotels expense.
The following property was added to the portfolio during the
third quarter of 2010:
- Andaz 5th Avenue (owned, 184 rooms)
Three hotels were removed from the owned and leased portfolio
as follows:
- Sold Hyatt Regency Greenville for
$15 million and entered into a franchise contract for the property.
- Sold one non-Hyatt branded
property.
- Conveyed Hyatt Regency Princeton to
the lender. The Company continues to manage the property.
North American Management and Franchising Segment
Adjusted EBITDA increased by 32.1% in the third quarter of
2010 compared to the same period in 2009.
RevPAR for comparable North American full-service hotels
increased 7.5% (7.3% excluding the effect of currency) in the third
quarter of 2010 compared to the same period in 2009. Occupancy
increased 360 basis points and ADR increased 2.3% (2.1% excluding the
effect of currency).
RevPAR for comparable North American select-service hotels
increased 9.1% in the third quarter of 2010 compared to the same period
in 2009. Occupancy increased 520 basis points and ADR increased by
1.6%.
Revenue from management, franchise, and other fees increased
14.3% in the third quarter of 2010 compared to the same period in 2009
primarily due to increased hotel revenue and a greater number of
properties.
The following properties were added to the portfolio during
the third quarter of 2010:
- Andaz 5th Avenue (owned, 184 rooms)
- Hyatt Place Columbus/OSU
(franchised, 126 rooms)
- Hyatt Place Philadelphia/King of
Prussia (franchised, 129 rooms)
The one aforementioned non-Hyatt branded property was removed
from the portfolio during the third quarter of 2010.
International Management and Franchising Segment
Adjusted EBITDA increased by 30.8% in the third quarter of
2010 compared to the same period in 2009 as a result of increased fee
revenue.
RevPAR for comparable international hotels increased 17.3%
(15.1% excluding the effect of currency) in the third quarter of 2010
compared to the same period in 2009. Occupancy increased 600 basis
points and ADR increased 6.5% (4.5% excluding the effect of currency).
Revenue from management, franchise and other fees increased
14.8% in the third quarter of 2010 compared to the same period in 2009
primarily as a result of increased hotel revenue and profits,
particularly in the Asia-Pacific region.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased by
3.0% in the third quarter 2010 compared to the same period in 2009.
Adjusted selling, general, and administrative expenses increased by
3.4% in the third quarter of 2010 compared to the same period in 2009.
See the table on page 7 of the accompanying schedules for a
reconciliation of adjusted selling, general, and administrative
expenses to selling, general and administrative expenses.
CAPITAL EXPENDITURES
Capital expenditures during the third quarter of 2010 totaled
approximately $60 million, including approximately $6 million for
investment in new properties.
Year-to-date 2010 capital expenditures totaled approximately
$150 million, including approximately $39 million for investment in new
properties.
CORPORATE FINANCE
During the third quarter of 2010, the Company:
- Invested $60 million for preferred
equity in the Hyatt Regency New Orleans re-development.
- Sold two aforementioned properties
(Hyatt Regency Greenville and one non-Hyatt branded property) for $20
million.
- Conveyed Hyatt Regency Princeton to
the lender, resulting in a reduction in debt of approximately $45
million.
On September 30, 2010, the Company had total debt of
approximately $800 million, cash and cash equivalents, including
investments in highly-rated money market funds and similar investments,
of approximately $1.0 billion, short-term investments of approximately
$600 million and undrawn borrowing availability of approximately $1
billion under its revolving credit facility.
YEAR-TO-DATE 2010
- Adjusted EBITDA was $358 million
compared to $303 million for year-to-date 2009, an increase of 18.2%
(17.1% excluding the effect of currency). Adjusted EBITDA for
year-to-date 2010 benefited from an approximately $8 million settlement
related to a vacation ownership property.
- Net income attributable to Hyatt
was $60 million, or $0.34 per share, compared to a net loss
attributable to Hyatt of $31 million, or $0.21 per share, for
year-to-date 2009. Net income (loss) attributable to Hyatt included a
favorable impact from special items of $16 million after-tax, or $0.08
per share, for year-to-date 2010 compared to an unfavorable impact from
special items of $48 million after-tax, or $0.32 per share, for
year-to-date 2009. See the table on page 3 of the accompanying
schedules for a summary of special items.
- Comparable owned and leased hotels
RevPAR increased 8.8% (8.3% excluding the effect of currency) compared
to year-to-date 2009.
- Both owned and leased hotel
operating margins and comparable owned and leased hotel operating
margins increased 170 basis points compared to year-to-date 2009. See
the table on page 8 of the accompanying schedules for a reconciliation
of comparable owned and leased hotel operating margins to owned and
leased hotel operating margins.
- Comparable North American
full-service RevPAR increased 4.1% (3.8% excluding the effect of
currency) compared to year-to-date 2009. Comparable North American
select-service RevPAR increased 6.6% compared to year-to-date 2009.
- Comparable International RevPAR
increased 19.1% (14.0% excluding the effect of currency) compared to
year-to-date 2009.
- The Company opened 25 properties in
year-to-date 2010.
2010 INFORMATION
The Company is providing the following information for the
2010 fiscal year:
- Capital expenditures are expected
to be in the range of $250 to $260 million, inclusive of broad-scope
renovation projects at five owned properties. The Company began
renovations at these properties during the third quarter and expects
that displacement will negatively impact owned and leased segment
results for the remainder of 2010. The broad-scope renovations will
continue to negatively impact owned and leased segment results through
the fourth quarter of 2011.
- Depreciation and amortization
expense is expected to be in the range of $275 to $285 million.
- Interest expense is expected to be
in the range of $50 to $55 million.
CONFERENCE CALL INFORMATION
The Company will hold an investor conference call today,
November 3, 2010, at 10 a.m. CT. All interested persons may listen to a
simultaneous webcast of the conference call, which may be accessed
through the Company's website at http://www.hyatt.com and selecting the Investor
Relations link located at the bottom of the page, or by dialing
617-614-2706, passcode #67527368, approximately 10 minutes before the
scheduled start time. For those unable to listen to the live broadcast,
a replay will be available from 1:00 p.m. CT on November 3, 2010
through midnight on November 10, 2010 by dialing 617-801-6888, passcode
#77755086. Additionally, an archive of the webcast will be available on
the Investor Relations website for approximately 90 days.
DEFINITIONS
Adjusted EBITDA
We use the term Adjusted EBITDA throughout this earnings
release. Adjusted EBITDA, as we define it, is a non-GAAP measure. We
define consolidated Adjusted EBITDA as net income (loss) attributable
to Hyatt Hotels Corporation plus our pro-rata share of unconsolidated
hospitality ventures Adjusted EBITDA based on our ownership percentage
of each venture, adjusted to exclude the following items:
- equity earnings (losses) from
unconsolidated hospitality ventures;
- asset impairments;
- other income (loss), net;
- discontinued operations, net of
tax;
- net loss (income) attributable to
noncontrolling interests;
- depreciation and amortization;
- interest expense; and
- (provision) benefit for income
taxes.
We calculate consolidated Adjusted EBITDA by adding the
Adjusted EBITDA of each of our reportable segments to corporate and
other Adjusted EBITDA.
Our board of directors and executive management team focus on
Adjusted EBITDA as a key performance and compensation measure both on a
segment and on a consolidated basis. Adjusted EBITDA assists us in
comparing our performance over various reporting periods on a
consistent basis because it removes from our operating results the
impact of items that do not reflect our core operating performance both
on a segment and on a consolidated basis. Our President and Chief
Executive Officer, who is our chief operating decision maker, also
evaluates the performance of each of our reportable segments and
determines how to allocate resources to those segments, in significant
part, by assessing the Adjusted EBITDA of each segment. In addition,
the compensation committee of our board of directors determines the
annual variable compensation for certain members of our management
based in part on consolidated Adjusted EBITDA, segment Adjusted EBITDA
or some combination of both.
We believe Adjusted EBITDA is useful to investors because it
provides investors the same information that we use internally for
purposes of assessing our operating performance and making compensation
decisions.
Adjusted EBITDA is not a substitute for net income (loss)
attributable to Hyatt Hotels Corporation, income (loss) from continuing
operations, cash flows from operating activities or any other measure
prescribed by GAAP. There are limitations to using non-GAAP measures
such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can
make an evaluation of our operating performance more consistent because
it removes items that do not reflect our core operations, other
companies in our industry may define Adjusted EBITDA differently than
we do. As a result, it may be difficult to use Adjusted EBITDA or
similarly named non-GAAP measures that other companies may use to
compare the performance of those companies to our performance. Because
of these limitations, Adjusted EBITDA should not be considered as a
measure of the income generated by our business or discretionary cash
available to us to invest in the growth of our business. Our management
compensates for these limitations by reference to our GAAP results and
using Adjusted EBITDA supplementally.
Adjusted Selling, General and
Administrative Expense
Adjusted selling, general and administrative expenses exclude
the impact of expenses related to benefit programs funded through Rabbi
Trusts in addition to expenses resulting from the termination of
supplemental executive defined benefit plans.
Comparable Owned and Leased Hotel
Operating Margin
We define Comparable Owned and Leased Hotel Operating Margin
as the difference between comparable owned and leased hotels revenue
and comparable owned and leased hotels expenses. Comparable owned and
leased hotels revenue is calculated by removing noncomparable hotels
revenue from owned and leased hotels revenue as reported in our
condensed consolidated statements of income (loss). Comparable owned
and leased hotel expenses is calculated by removing both noncomparable
hotels expenses and the impact of expenses funded through Rabbi Trusts
from owned and leased hotel expenses as reported in our condensed
consolidated statements of income (loss).
Comparable Hotels
“Comparable systemwide hotels” represents all properties we
manage or franchise (including owned and leased properties) and that
are operated for the entirety of the periods being compared and that
have not sustained substantial damage, business interruption or
undergone large scale renovations during the periods being compared or
for which comparable results are not available. We may use variations
of comparable systemwide hotels to specifically refer to comparable
systemwide North American full service or select service hotels or
comparable systemwide international full service hotels for those
properties that we manage or franchise within the North American and
international management and franchising segments, respectively.
“Comparable owned and leased hotels” represents all properties we own
or lease and that are operated and consolidated for the entirety of the
periods being compared and have not sustained substantial damage,
business interruption or undergone large scale renovations during the
periods being compared or for which comparable results are not
available. Comparable systemwide hotels and comparable owned and leased
hotels are commonly used as a basis of measurement in the industry.
“Non-comparable systemwide hotels” or “Non-comparable owned and leased
hotels” represent all hotels that do not meet the respective definition
of “comparable” as defined above.
Revenue Per Available Room (RevPAR)
RevPAR is the product of the average daily rate and the
average daily occupancy percentage. RevPAR does not include non-room
revenues, which consist of ancillary revenues generated by a hotel
property, such as food and beverage, parking, telephone and other guest
service revenues. Our management uses RevPAR to identify trend
information with respect to room revenues from comparable properties
and to evaluate hotel performance on a regional and segment basis.
RevPAR is a commonly used performance measure in the industry.
RevPAR changes that are driven predominately by changes in
occupancy have different implications for overall revenue levels and
incremental profitability than do changes that are driven predominately
by changes in average room rates. For example, increases in occupancy
at a hotel would lead to increases in room revenues and additional
variable operating costs (including housekeeping services, utilities
and room amenity costs), and could also result in increased ancillary
revenues (including food and beverage). In contrast, changes in average
room rates typically have a greater impact on margins and profitability
as there is no substantial effect on variable costs.
Average Daily Rate (ADR)
ADR represents hotel room revenues, divided by total number of
rooms sold in a given period. ADR measures average room price attained
by a hotel and ADR trends provide useful information concerning the
pricing environment and the nature of the customer base of a hotel or
group of hotels. ADR is a commonly used performance measure in the
industry, and we use ADR to assess the pricing levels that we are able
to generate by customer group, as changes in rates have a different
effect on overall revenues and incremental profitability than changes
in occupancy, as described above.
Occupancy
Occupancy represents the total number of rooms sold divided by
the total number of rooms available at a hotel or group of hotels.
Occupancy measures the utilization of our hotels’ available capacity.
Management uses occupancy to gauge demand at a specific hotel or group
of hotels in a given period. Occupancy levels also help us determine
achievable ADR levels as demand for hotel rooms increases or decreases.
Select Service
The term “select service” includes our Hyatt Place and Hyatt
Summerfield Suites brands. These properties have limited food and
beverage outlets and do not offer comprehensive business or banquet
facilities but rather are suited to serve smaller business meetings.
FORWARD-LOOKING STATEMENTS
Forward-Looking Statements in this press
release, which are not historical facts, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements include statements about our plans, strategies,
occupancy and ADR trends, market share, the number of properties we
expect to open in the future, our expected capital expenditures,
depreciation and amortization expense and interest expense, estimates,
financial performance, prospects or future events and involve known and
unknown risks that are difficult to predict. As a result, our actual
results, performance or achievements may differ materially from those
expressed or implied by these forward-looking statements. In some
cases, you can identify forward-looking statements by the use of words
such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“continue,” “likely,” “will,” “would” and variations of these terms and
similar expressions, or the negative of these terms or similar
expressions. Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by us and
our management, are inherently uncertain. Factors that may cause actual
results to differ materially from current expectations include, among
others, the depth and duration of the current economic downturn; levels
of spending in the business, travel and leisure industries as well as
consumer confidence; declines in occupancy and average daily rate;
hostilities, including future terrorist attacks, or fear of hostilities
that affect travel; travel-related accidents; changes in the tastes and
preferences of our customers; relationships with associates and labor
unions and changes in labor law; the financial condition of, and our
relationships with, third-party property owners, franchisees and
hospitality venture partners; if our third-party owners, franchisees or
development partners are unable to access the capital necessary to fund
current operations or implement our plans for growth; risk associated
with potential acquisitions and dispositions and the introduction of
new brand concepts; changes in the competitive environment in our
industry and the markets where we operate; outcomes of legal
proceedings; changes in federal, state, local or foreign tax law;
fluctuations in currency exchange rates; general volatility of the
capital markets; our ability to access the capital markets; and other
risks discussed in the Company’s filings with the U.S. Securities and
Exchange Commission, including our Annual Report on Form 10-K and our
Quarterly Report on Form 10-Q for the fiscal quarter ended September
30, 2010, which filings are available from the SEC. We caution you not
to place undue reliance on any forward-looking statements, which are
made as of the date of this press release. We undertake no obligation
to update publicly any of these forward-looking statements to reflect
actual results, new information or future events, changes in
assumptions or changes in other factors affecting forward-looking
statements, except to the extent required by applicable laws. If we
update one or more forward-looking statements, no inference should be
drawn that we will make additional updates with respect to those or
other forward-looking statements.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is
a leading global hospitality company with a proud heritage of making
guests feel more than welcome. Thousands of members of the Hyatt family
in 45 countries strive to make a difference in the lives of the guests
they encounter every day by providing authentic hospitality. The
Company’s subsidiaries manage, franchise, own and develop hotels and
resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand
Hyatt®, Hyatt Regency®, Hyatt Place® and Hyatt
Summerfield Suites® brand names and have locations under
development on five continents. Hyatt Vacation Ownership, Inc.,
a Hyatt Hotels Corporation subsidiary, develops and operates
vacation ownership properties under the Hyatt Vacation Club®
brand. As of September 30, 2010, the Company’s worldwide
portfolio consisted of 447 properties. For more information, please
visit www.hyatt.com.
Tables to follow
|
Hyatt Hotels Corporation
|
Table
of Contents |
Financial
Information (unaudited) |
|
|
|
1.
|
|
Condensed
Consolidated Statements of Income (Loss) |
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 |
3.
|
|
Summary of
Special Items - Three and Nine Months Ended September 30, 2010 and 2009
|
4.
|
|
Segment Financial
Summary |
5.
|
|
Hotel Chain
Statistics - Comparable Locations |
6.
|
|
Fee Summary |
7.
|
|
Reconciliation of
Non-GAAP to GAAP Measure: Adjusted Selling, General, and Administrative
Expenses to Selling, General, and Administrative Expenses |
8.
|
|
Reconciliation of
Non-GAAP to GAAP Measure: Comparable Owned and Leased Hotel Operating
Margin to Owned and Leased Hotel Operating Margin |
9.
|
|
Properties and
Rooms / Units by Geography |
10.
|
|
Properties and
Rooms / Units by Brand |
|
Page 1
|
Hyatt
Hotels Corporation |
Condensed
Consolidated Statements of Income (Loss) |
For
the Three and Nine Months Ended September 30, 2010 and 2009 |
(In
millions, except per share amounts) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
REVENUES: |
|
|
|
|
|
|
|
|
|
Owned
and leased hotels |
|
$
|
455
|
|
|
$
|
438
|
|
|
$
|
1,389
|
|
|
$
|
1,313
|
|
Management
and franchise fees |
|
|
61
|
|
|
|
49
|
|
|
|
182
|
|
|
|
158
|
|
Other
revenues |
|
|
11
|
|
|
|
10
|
|
|
|
34
|
|
|
|
39
|
|
Other revenues from managed properties (a) |
|
|
352
|
|
|
|
309
|
|
|
|
1,004
|
|
|
|
932
|
|
Total
revenues |
|
|
879
|
|
|
|
806
|
|
|
|
2,609
|
|
|
|
2,442
|
|
|
|
|
|
|
|
|
|
|
|
DIRECT
AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: |
|
|
|
|
|
|
|
Owned
and leased hotels |
|
|
376
|
|
|
|
367
|
|
|
|
1,114
|
|
|
|
1,075
|
|
Depreciation
and amortization |
|
|
68
|
|
|
|
68
|
|
|
|
204
|
|
|
|
198
|
|
Other
direct costs |
|
|
3
|
|
|
|
1
|
|
|
|
-
|
|
|
|
9
|
|
Selling,
general, and administrative |
|
|
68
|
|
|
|
66
|
|
|
|
195
|
|
|
|
188
|
|
Other costs from managed properties (a) |
|
|
352
|
|
|
|
309
|
|
|
|
1,004
|
|
|
|
932
|
|
Direct
and selling, general, and administrative expenses |
|
|
867
|
|
|
|
811
|
|
|
|
2,517
|
|
|
|
2,402
|
|
|
|
|
|
|
|
|
|
|
|
Net
gains and interest income from marketable securities held to fund |
|
|
|
|
|
|
|
|
operating programs
|
|
|
13
|
|
|
|
14
|
|
|
|
12
|
|
|
|
22
|
|
Equity
earnings (losses) from unconsolidated hospitality ventures |
|
|
(4
|
)
|
|
|
2
|
|
|
|
(23
|
)
|
|
|
(11
|
)
|
Interest
expense |
|
|
(16
|
)
|
|
|
(15
|
)
|
|
|
(40
|
)
|
|
|
(42
|
)
|
Asset
impairments |
|
|
(11
|
)
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
(5
|
)
|
Other income (loss), net |
|
|
52
|
|
|
|
12
|
|
|
|
62
|
|
|
|
(44
|
)
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES |
|
|
46
|
|
|
|
8
|
|
|
|
89
|
|
|
|
(40
|
)
|
|
|
|
|
|
|
|
|
|
|
(PROVISION) BENEFIT FOR INCOME TAXES |
|
|
(17
|
)
|
|
|
(2
|
)
|
|
|
(34
|
)
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) FROM CONTINUING OPERATIONS |
|
|
29
|
|
|
|
6
|
|
|
|
55
|
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED
OPERATIONS: |
|
|
|
|
|
|
|
|
|
Loss
from discontinued operations, net of income tax benefit |
|
|
|
|
|
|
|
|
of $-
and $1 for the three months ended and $2 and $2 for the nine months
ended September 30, 2010 and 2009, respectively |
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
Gain
on the sale of discontinued operations, net of income tax expense |
|
|
|
|
|
|
|
|
of $1 and $- for the three months ended and $4 and $- for
the nine months ended September 30, 2010 and 2009, respectively |
|
|
1
|
|
|
|
-
|
|
|
|
7
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) |
|
|
30
|
|
|
|
6
|
|
|
|
59
|
|
|
|
(32
|
)
|
|
|
|
|
|
|
|
|
|
|
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS
CORPORATION |
|
$
|
30
|
|
|
$
|
5
|
|
|
$
|
60
|
|
|
$
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE - Basic |
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations |
|
|
$
|
0.17
|
|
|
$
|
0.04
|
|
|
$
|
0.32
|
|
|
$
|
(0.20
|
)
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Hyatt Hotels Corporation |
|
$
|
0.17
|
|
|
$
|
0.03
|
|
|
$
|
0.34
|
|
|
$
|
(0.21
|
)
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE - Diluted |
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations |
|
|
$
|
0.17
|
|
|
$
|
0.04
|
|
|
$
|
0.32
|
|
|
$
|
(0.20
|
)
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Hyatt Hotels Corporation |
|
$
|
0.17
|
|
|
$
|
0.03
|
|
|
$
|
0.34
|
|
|
$
|
(0.21
|
)
|
|
|
|
|
|
|
|
|
|
|
Basic share
counts |
|
|
|
174.1
|
|
|
|
168.2
|
|
|
|
174.1
|
|
|
|
144.7
|
|
|
|
|
|
|
|
|
|
|
|
Diluted share
counts |
|
|
|
174.2
|
|
|
|
168.2
|
|
|
|
174.3
|
|
|
|
144.7
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
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 September 30, |
|
Nine Months Ended September 30, |
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
111
|
|
|
$
|
92
|
|
|
$
|
358
|
|
|
$
|
303
|
|
Equity earnings
(losses) from unconsolidated hospitality ventures |
|
|
(4
|
)
|
|
|
2
|
|
|
|
(23
|
)
|
|
|
(11
|
)
|
Asset impairments
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
(5
|
)
|
Other income
(loss), net |
|
|
52
|
|
|
|
12
|
|
|
|
62
|
|
|
|
(44
|
)
|
Discontinued
operations, net of tax |
|
|
1
|
|
|
|
-
|
|
|
|
4
|
|
|
|
(3
|
)
|
Net loss (income)
attributable to noncontrolling interests |
|
|
-
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
1
|
|
Pro rata
share of unconsolidated hospitality ventures Adjusted EBITDA |
|
|
(18
|
)
|
|
|
(15
|
)
|
|
|
(50
|
)
|
|
|
(43
|
)
|
EBITDA |
|
$
|
131
|
|
|
$
|
90
|
|
|
$
|
338
|
|
|
$
|
198
|
|
Depreciation and
amortization |
|
|
(68
|
)
|
|
|
(68
|
)
|
|
|
(204
|
)
|
|
|
(198
|
)
|
Interest expense |
|
|
(16
|
)
|
|
|
(15
|
)
|
|
|
(40
|
)
|
|
|
(42
|
)
|
(Provision)
benefit for income taxes |
|
|
(17
|
)
|
|
|
(2
|
)
|
|
|
(34
|
)
|
|
|
11
|
|
Net
Income (Loss) Attributable to Hyatt Hotels Corporation |
|
$
|
30
|
|
|
$
|
5
|
|
|
$
|
60
|
|
|
$
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Page 3
|
|
|
|
|
|
|
|
|
|
|
Hyatt
Hotels Corporation |
Summary
of Special Items - Three and Nine Months Ended September 30, 2010 and
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
The
following table represents a reconciliation of net income (loss)
attributable to Hyatt Hotels Corporation, adjusted for special items,
to net income (loss) attributable to Hyatt Hotels Corporation presented
for the three and nine months ended September 30, 2010, and September
30, 2009, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location on Condensed
Consolidated Statements of
Income (Loss)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Hyatt Hotels Corporation |
|
|
|
$
|
30
|
|
|
$
|
5
|
|
|
$
|
60
|
|
|
$
|
(31
|
)
|
|
Earnings
per share |
|
|
|
$
|
0.17
|
|
|
$
|
0.03
|
|
|
$
|
0.34
|
|
|
$
|
(0.21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from cost
method investment (a) |
|
Other income
(loss), net |
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(22
|
)
|
|
Asset impairments
(b) |
|
Asset impairments
|
|
|
11
|
|
|
|
-
|
|
|
|
14
|
|
|
|
5
|
|
|
Unconsolidated
hospitality ventures impairments (c) |
|
Equity earnings
(losses) from unconsolidated hospitality ventures |
|
|
6
|
|
|
|
-
|
|
|
|
15
|
|
|
|
10
|
|
|
Provisions on
hotel loans (d) |
|
Other income
(loss), net |
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
Debt settlement
costs (e) |
|
Other income
(loss), net |
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
93
|
|
|
Gain on
extinguishment of debt (f) |
|
Other income
(loss), net |
|
|
(35
|
)
|
|
|
-
|
|
|
|
(35
|
)
|
|
|
-
|
|
|
Gain on sale of
real estate (g) |
|
Other income
(loss), net |
|
|
(6
|
)
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
-
|
|
|
Marketable
securities (h) |
|
Other
income (loss), net |
|
|
(10
|
)
|
|
|
(8
|
)
|
|
|
(12
|
)
|
|
|
(11
|
)
|
|
Total special
items - pre-tax |
|
|
|
|
(32
|
)
|
|
|
(8
|
)
|
|
|
(22
|
)
|
|
|
75
|
|
|
(Provision)
benefit for income taxes for special items |
|
(Provision)
benefit for income taxes |
|
|
12
|
|
|
|
3
|
|
|
|
10
|
|
|
|
(30
|
)
|
|
Discontinued
operations, net of tax (i) |
|
(Gain)
Loss from discontinued operations |
|
|
(1
|
)
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
3
|
|
|
Total
special items - after-tax |
|
|
|
|
(21
|
)
|
|
|
(5
|
)
|
|
|
(16
|
)
|
|
|
48
|
|
|
Special
items impact per share |
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Hyatt Hotels Corporation, adjusted for
special items |
|
|
|
$
|
9
|
|
|
$
|
-
|
|
|
$
|
44
|
|
|
$
|
17
|
|
|
Earnings
per share, adjusted for special items |
|
|
|
$
|
0.06
|
|
|
$
|
-
|
|
|
$
|
0.26
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a)
Income from cost method investment - During the nine months ended
September 30, 2009, we recorded $22 million of income related to
distributions from certain non-hospitality related real estate
investments. |
b) Asset impairments - During the
three and nine months ended September 30, 2010, we identified and
recorded $10 million related to the impairment of a company owned
airplane. This asset has been classified as an asset held for sale as
of September 30, 2010. During the nine months ended September 30, 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 nine months ended September 30, 2009, we recorded a
$5 million impairment of intangible assets relating to a management
agreement covering certain select service hotels.
|
c) Unconsolidated hospitality
ventures impairments - In the three months ended September 30, 2010, we
recorded an impairment charge of $6 million related to an investment in
a hotel property. In the nine months ended September 30, 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.
|
d)
Provisions on hotel loans - In the third quarter of 2010, we recorded
$2 million in provisions related to certain hotel developer loans based
on our assessment of their collectability. |
e) Debt settlement costs - In the
nine months ended September 30, 2009, we recorded amounts related 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) Gain on extinguishment of debt
- During 2010, we extinguished $45 million of mortgage debt for a
majority owned property as a result of executing a deed in lieu of
foreclosure transaction with the lender. The deed was transferred to
the lender on September 30, 2010 and at that time a gain on
extinguishment of debt of $35 million was recorded.
|
g)
Gain on sale of real estate - Represents a $6 million gain on the sale
of the Hyatt Regency Greenville in the third quarter of 2010. |
h)
Marketable securities - Represents (gains) losses on investments in
trading securities not used to fund operating programs. |
i) Discontinued operations -
During the three months ended September 30, 2010, we sold a hotel
property and recognized a gain on sale of $1 million, net of taxes.
During the nine months ended September 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 at one of our owned
hotels for a total of $3 million. During the nine months ended
September 30, 2009, we incurred a $3 million charge related to the
impairment of property and equipment in one of our owned hotels that
has been subsequently sold in 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt
Hotels Corporation |
|
|
|
|
|
|
Segment
Financial Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
2010 |
|
2009 |
|
Change ($) |
|
Change (%) |
|
2010 |
|
2009 |
|
Change ($) |
|
Change (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased |
|
$
|
455
|
|
|
$
|
438
|
|
|
$
|
17
|
|
|
3.9
|
%
|
|
$
|
1,389
|
|
|
$
|
1,313
|
|
|
$
|
76
|
|
|
5.8
|
%
|
North America |
|
|
48
|
|
|
|
42
|
|
|
|
6
|
|
|
14.3
|
%
|
|
|
145
|
|
|
|
135
|
|
|
|
10
|
|
|
7.4
|
%
|
International
|
|
|
31
|
|
|
|
27
|
|
|
|
4
|
|
|
14.8
|
%
|
|
|
97
|
|
|
|
81
|
|
|
|
16
|
|
|
19.8
|
%
|
Total management
and franchising |
|
|
79
|
|
|
|
69
|
|
|
|
10
|
|
|
14.5
|
%
|
|
|
242
|
|
|
|
216
|
|
|
|
26
|
|
|
12.0
|
%
|
Corporate and
other |
|
|
11
|
|
|
|
10
|
|
|
|
1
|
|
|
10.0
|
%
|
|
|
34
|
|
|
|
39
|
|
|
|
(5
|
)
|
|
(12.8
|
)%
|
Other revenues
from managed properties |
|
|
352
|
|
|
|
309
|
|
|
|
43
|
|
|
13.9
|
%
|
|
|
1,004
|
|
|
|
932
|
|
|
|
72
|
|
|
7.7
|
%
|
Eliminations
|
|
|
(18
|
)
|
|
|
(20
|
)
|
|
|
2
|
|
|
10.0
|
%
|
|
|
(60
|
)
|
|
|
(58
|
)
|
|
|
(2
|
)
|
|
(3.4
|
)%
|
Total
revenues |
|
$
|
879
|
|
|
$
|
806
|
|
|
|
73
|
|
|
9.1
|
%
|
|
$
|
2,609
|
|
|
$
|
2,442
|
|
|
|
167
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased |
|
$
|
66
|
|
|
$
|
57
|
|
|
$
|
9
|
|
|
15.8
|
%
|
|
$
|
219
|
|
|
$
|
186
|
|
|
$
|
33
|
|
|
17.7
|
%
|
Pro rata
share of unconsolidated hospitality ventures |
|
|
18
|
|
|
|
15
|
|
|
|
3
|
|
|
20.0
|
%
|
|
|
50
|
|
|
|
43
|
|
|
|
7
|
|
|
16.3
|
%
|
Total owned and
leased |
|
|
84
|
|
|
|
72
|
|
|
|
12
|
|
|
16.7
|
%
|
|
|
269
|
|
|
|
229
|
|
|
|
40
|
|
|
17.5
|
%
|
North America
management and franchising |
|
|
37
|
|
|
|
28
|
|
|
|
9
|
|
|
32.1
|
%
|
|
|
109
|
|
|
|
94
|
|
|
|
15
|
|
|
16.0
|
%
|
International
management and franchising |
|
|
17
|
|
|
|
13
|
|
|
|
4
|
|
|
30.8
|
%
|
|
|
49
|
|
|
|
36
|
|
|
|
13
|
|
|
36.1
|
%
|
Corporate
and other |
|
|
(27
|
)
|
|
|
(21
|
)
|
|
|
(6
|
)
|
|
(28.6
|
)%
|
|
|
(69
|
)
|
|
|
(56
|
)
|
|
|
(13
|
)
|
|
(23.2
|
)%
|
Adjusted
EBITDA |
|
$
|
111
|
|
|
$
|
92
|
|
|
|
19
|
|
|
20.7
|
%
|
|
$
|
358
|
|
|
$
|
303
|
|
|
|
55
|
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt
Hotels Corporation |
Hotel
Chain Statistics |
Comparable
Locations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Change |
|
Nine Months Ended September 30, |
|
|
Change |
Owned and leased hotels (# hotels) |
|
2010 |
|
2009 |
|
Change |
|
(in constant $) |
|
2010 |
|
2009 |
|
Change |
|
(in constant $) |
|
Full
service (45) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$
|
170.78
|
|
|
$
|
167.72
|
|
|
1.8
|
%
|
|
2.2
|
%
|
|
$
|
176.44
|
|
|
$
|
175.51
|
|
|
0.5
|
%
|
|
(0.0
|
%)
|
|
|
Occupancy |
|
|
73.2
|
%
|
|
|
69.9
|
%
|
|
3.3
|
%
|
pts |
|
|
|
70.5
|
%
|
|
|
64.9
|
%
|
|
5.6
|
%
|
pts |
|
|
|
RevPAR |
|
$
|
124.98
|
|
|
$
|
117.20
|
|
|
6.6
|
%
|
|
7.1
|
%
|
|
$
|
124.38
|
|
|
$
|
113.97
|
|
|
9.1
|
%
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select
service (54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$
|
88.89
|
|
|
$
|
90.52
|
|
|
(1.8
|
%)
|
|
(1.8
|
%)
|
|
$
|
89.44
|
|
|
$
|
94.99
|
|
|
(5.8
|
%)
|
|
(5.8
|
%)
|
|
|
Occupancy |
|
|
79.6
|
%
|
|
|
72.2
|
%
|
|
7.5
|
%
|
pts |
|
|
|
75.8
|
%
|
|
|
66.9
|
%
|
|
8.9
|
%
|
pts |
|
|
|
RevPAR |
|
$
|
70.80
|
|
|
$
|
65.34
|
|
|
8.4
|
%
|
|
8.4
|
%
|
|
$
|
67.83
|
|
|
$
|
63.54
|
|
|
6.8
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
owned and leased hotels (99) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$
|
148.64
|
|
|
$
|
147.60
|
|
|
0.7
|
%
|
|
1.0
|
%
|
|
$
|
153.09
|
|
|
$
|
154.57
|
|
|
(1.0
|
%)
|
|
(1.4
|
%)
|
|
|
Occupancy |
|
|
74.8
|
%
|
|
|
70.5
|
%
|
|
4.4
|
%
|
pts |
|
|
|
71.9
|
%
|
|
|
65.4
|
%
|
|
6.4
|
%
|
pts |
|
|
|
RevPAR |
|
$
|
111.22
|
|
|
$
|
104.01
|
|
|
6.9
|
%
|
|
7.3
|
%
|
|
$
|
110.00
|
|
|
$
|
101.14
|
|
|
8.8
|
%
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed
and franchised hotels (# hotels; includes owned & leased hotels)
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
service (119) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$
|
152.34
|
|
|
$
|
148.91
|
|
|
2.3
|
%
|
|
2.1
|
%
|
|
$
|
155.79
|
|
|
$
|
159.22
|
|
|
(2.2
|
%)
|
|
(2.5
|
%)
|
|
|
Occupancy |
|
|
73.6
|
%
|
|
|
70.1
|
%
|
|
3.6
|
%
|
pts |
|
|
|
70.5
|
%
|
|
|
66.3
|
%
|
|
4.3
|
%
|
pts |
|
|
|
RevPAR |
|
$
|
112.13
|
|
|
$
|
104.31
|
|
|
7.5
|
%
|
|
7.3
|
%
|
|
$
|
109.85
|
|
|
$
|
105.49
|
|
|
4.1
|
%
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select
service (158) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$
|
92.40
|
|
|
$
|
90.94
|
|
|
1.6
|
%
|
|
1.6
|
%
|
|
$
|
92.80
|
|
|
$
|
97.06
|
|
|
(4.4
|
%)
|
|
(4.4
|
%)
|
|
|
Occupancy |
|
|
75.7
|
%
|
|
|
70.5
|
%
|
|
5.2
|
%
|
pts |
|
|
|
72.6
|
%
|
|
|
65.1
|
%
|
|
7.5
|
%
|
pts |
|
|
|
RevPAR |
|
$
|
69.94
|
|
|
$
|
64.09
|
|
|
9.1
|
%
|
|
9.1
|
%
|
|
$
|
67.36
|
|
|
$
|
63.20
|
|
|
6.6
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
(92) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$
|
210.31
|
|
|
$
|
197.49
|
|
|
6.5
|
%
|
|
4.5
|
%
|
|
$
|
212.28
|
|
|
$
|
201.61
|
|
|
5.3
|
%
|
|
0.8
|
%
|
|
|
Occupancy |
|
|
64.9
|
%
|
|
|
58.9
|
%
|
|
6.0
|
%
|
pts |
|
|
|
64.4
|
%
|
|
|
56.9
|
%
|
|
7.5
|
%
|
pts |
|
|
|
RevPAR |
|
$
|
136.55
|
|
|
$
|
116.40
|
|
|
17.3
|
%
|
|
15.1
|
%
|
|
$
|
136.68
|
|
|
$
|
114.74
|
|
|
19.1
|
%
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
systemwide hotels (369) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$
|
155.75
|
|
|
$
|
149.98
|
|
|
3.9
|
%
|
|
3.1
|
%
|
|
$
|
158.73
|
|
|
$
|
158.49
|
|
|
0.1
|
%
|
|
(1.4
|
%)
|
|
|
Occupancy |
|
|
71.6
|
%
|
|
|
67.0
|
%
|
|
4.5
|
%
|
pts |
|
|
|
69.2
|
%
|
|
|
63.5
|
%
|
|
5.7
|
%
|
pts |
|
|
|
RevPAR |
|
$
|
111.46
|
|
|
$
|
100.54
|
|
|
10.9
|
%
|
|
10.0
|
%
|
|
$
|
109.80
|
|
|
$
|
100.57
|
|
|
9.2
|
%
|
|
7.5
|
%
|
|
|
|
|
Page 6
|
|
|
|
Hyatt
Hotels Corporation |
|
|
|
Fee
Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions) |
|
Three Months Ended September 30, |
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
2010 |
|
2009 |
|
Change ($) |
|
Change
(%) |
|
2010 |
|
2009 |
|
Change ($) |
|
Change
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management
fees |
|
$
|
33
|
|
$
|
29
|
|
$
|
4
|
|
13.8%
|
|
$
|
97
|
|
$
|
87
|
|
$
|
10
|
|
11.5%
|
Incentive
management fees |
|
|
19
|
|
|
14
|
|
|
5
|
|
35.7%
|
|
|
62
|
|
|
54
|
|
|
8
|
|
14.8%
|
Franchise
and other fees |
|
|
9
|
|
|
6
|
|
|
3
|
|
50.0%
|
|
|
23
|
|
|
17
|
|
|
6
|
|
35.3%
|
Total
fees |
|
$
|
61
|
|
$
|
49
|
|
$
|
12
|
|
24.5%
|
|
$
|
182
|
|
$
|
158
|
|
$
|
24
|
|
15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 September 30, |
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
2010 |
|
2009 |
|
Change ($) |
|
Change (%) |
|
2010 |
|
2009 |
|
Change ($) |
|
Change (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Selling,
General and Administrative Expenses |
|
$
|
61
|
|
$
|
59
|
|
$
|
2
|
|
|
3.4
|
%
|
|
$
|
190
|
|
$
|
178
|
|
$
|
12
|
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rabbi Trust
impact |
|
|
7
|
|
|
7
|
|
|
-
|
|
|
0.0
|
%
|
|
|
5
|
|
|
10
|
|
|
(5
|
)
|
|
(50.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
General and Administrative Expenses |
|
$
|
68
|
|
$
|
66
|
|
$
|
2
|
|
|
3.0
|
%
|
|
$
|
195
|
|
$
|
188
|
|
$
|
7
|
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 September 30, |
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
2010 |
|
2009 |
|
Change ($) |
|
Change (%) |
|
2010 |
|
2009 |
|
Change ($) |
|
Change (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned
and leased hotels |
|
$
|
450
|
|
|
$
|
426
|
|
|
$
|
24
|
|
|
5.6
|
%
|
|
$
|
1,374
|
|
|
$
|
1,282
|
|
|
$
|
92
|
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncomparable
hotels |
|
|
5
|
|
|
|
12
|
|
|
|
(7
|
)
|
|
(58.3
|
)%
|
|
|
15
|
|
|
|
31
|
|
|
|
(16
|
)
|
|
(51.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and
Leased Hotels Revenue |
|
$
|
455
|
|
|
$
|
438
|
|
|
$
|
17
|
|
|
3.9
|
%
|
|
$
|
1,389
|
|
|
$
|
1,313
|
|
|
$
|
76
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned
and leased hotels |
|
$
|
367
|
|
|
$
|
353
|
|
|
$
|
14
|
|
|
4.0
|
%
|
|
$
|
1,095
|
|
|
$
|
1,044
|
|
|
$
|
51
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncomparable
hotels |
|
|
5
|
|
|
|
9
|
|
|
|
(4
|
)
|
|
(44.4
|
)%
|
|
|
17
|
|
|
|
23
|
|
|
|
(6
|
)
|
|
(26.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rabbi Trust |
|
|
4
|
|
|
|
5
|
|
|
|
(1
|
)
|
|
(20.0
|
)%
|
|
|
2
|
|
|
|
8
|
|
|
|
(6
|
)
|
|
(75.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and
Leased Hotels Expense |
|
$
|
376
|
|
|
$
|
367
|
|
|
$
|
9
|
|
|
2.5
|
%
|
|
$
|
1,114
|
|
|
$
|
1,075
|
|
|
$
|
39
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and
leased hotel operating margins percentage |
|
|
17.4
|
%
|
|
|
16.2
|
%
|
|
|
|
1.2
|
%
|
|
|
19.8
|
%
|
|
|
18.1
|
%
|
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
owned and leased hotel operating margin percentage |
|
|
18.4
|
%
|
|
|
17.1
|
%
|
|
|
|
1.3
|
%
|
|
|
20.3
|
%
|
|
|
18.6
|
%
|
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt
Hotels Corporation |
|
|
|
|
Properties
and Rooms/Units by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, 2010 |
|
June
30, 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 |
|
46
|
|
20,715
|
|
47
|
|
21,211
|
|
47
|
|
21,447
|
|
(1
|
)
|
|
(496
|
)
|
|
(1
|
)
|
|
(732
|
)
|
|
Select
service |
|
54
|
|
7,041
|
|
55
|
|
7,169
|
|
55
|
|
7,169
|
|
(1
|
)
|
|
(128
|
)
|
|
(1
|
)
|
|
(128
|
)
|
Total owned and leased hotels |
|
100
|
|
27,756
|
|
102
|
|
28,380
|
|
102
|
|
28,616
|
|
(2
|
)
|
|
(624
|
)
|
|
(2
|
)
|
|
(860
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed
and franchised hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(includes
owned and leased hotels) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
|
September
30, 2010 |
|
June
30, 2010 |
|
December
31, 2009 |
|
QTD
Change |
|
YTD
Change |
|
Full
service hotels |
|
Properties
|
|
Rooms/Units
|
|
Properties
|
|
Rooms/Units
|
|
Properties
|
|
Rooms/Units
|
|
Properties |
|
Rooms/Units |
|
Properties |
|
Rooms/Units |
|
Managed (a) |
|
116
|
|
60,685
|
|
116
|
|
60,828
|
|
110
|
|
59,225
|
|
-
|
|
|
(143
|
)
|
|
6
|
|
|
1,460
|
|
|
Franchised
|
|
13
|
|
3,947
|
|
12
|
|
3,619
|
|
11
|
|
3,401
|
|
1
|
|
|
328
|
|
|
2
|
|
|
546
|
|
|
Subtotal |
|
129
|
|
64,632
|
|
128
|
|
64,447
|
|
121
|
|
62,626
|
|
1
|
|
|
185
|
|
|
8
|
|
|
2,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service
hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed |
|
80
|
|
10,308
|
|
81
|
|
10,436
|
|
80
|
|
10,285
|
|
(1
|
)
|
|
(128
|
)
|
|
-
|
|
|
23
|
|
|
Franchised
|
|
112
|
|
14,221
|
|
110
|
|
13,956
|
|
96
|
|
12,218
|
|
2
|
|
|
265
|
|
|
16
|
|
|
2,003
|
|
|
Subtotal |
|
192
|
|
24,529
|
|
191
|
|
24,392
|
|
176
|
|
22,503
|
|
1
|
|
|
137
|
|
|
16
|
|
|
2,026
|
|
|
|
|
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
International
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed (a) |
|
100
|
|
33,994
|
|
100
|
|
34,006
|
|
100
|
|
33,914
|
|
-
|
|
|
(12
|
)
|
|
-
|
|
|
80
|
|
|
Franchised
|
|
2
|
|
988
|
|
2
|
|
988
|
|
2
|
|
988
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Subtotal
|
|
102
|
|
34,982
|
|
102
|
|
34,994
|
|
102
|
|
34,902
|
|
-
|
|
|
(12
|
)
|
|
-
|
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total managed & franchised hotels |
|
423
|
|
124,143
|
|
421
|
|
123,833
|
|
399
|
|
120,031
|
|
2
|
|
|
310
|
|
|
24
|
|
|
4,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
ownership |
|
15
|
|
962
|
|
15
|
|
962
|
|
15
|
|
962
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Residential |
|
9
|
|
1,252
|
|
9
|
|
1,252
|
|
10
|
|
1,324
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
(72
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
Total properties and rooms/units |
|
447
|
|
126,357
|
|
445
|
|
126,047
|
|
424
|
|
122,317
|
|
2
|
|
|
310
|
|
|
23
|
|
|
4,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
managed & franchised hotels |
|
September
30, 2010 |
|
June
30, 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
|
|
20,365
|
|
51
|
|
20,372
|
|
51
|
|
20,276
|
|
-
|
|
|
(7
|
)
|
|
-
|
|
|
89
|
|
|
Southwest Asia |
|
12
|
|
4,207
|
|
12
|
|
4,207
|
|
12
|
|
4,207
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Europe, Africa,
Middle East. |
|
32
|
|
8,492
|
|
32
|
|
8,497
|
|
32
|
|
8,501
|
|
-
|
|
|
(5
|
)
|
|
-
|
|
|
(9
|
)
|
|
Other
Americas |
|
7
|
|
1,918
|
|
7
|
|
1,918
|
|
7
|
|
1,918
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Total
International |
|
102
|
|
34,982
|
|
102
|
|
34,994
|
|
102
|
|
34,902
|
|
-
|
|
|
(12
|
)
|
|
-
|
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt
Hotels Corporation |
Properties
and Rooms/Units by Brand |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, 2010 |
|
June
30, 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
|
|
5,049
|
|
25
|
|
5,054
|
|
25
|
|
4,901
|
|
-
|
|
(5
|
)
|
|
-
|
|
|
148
|
|
|
|
Andaz |
|
5
|
|
1,096
|
|
4
|
|
912
|
|
2
|
|
505
|
|
1
|
|
184
|
|
|
3
|
|
|
591
|
|
|
|
Grand Hyatt |
|
37
|
|
21,568
|
|
37
|
|
21,567
|
|
37
|
|
21,561
|
|
-
|
|
1
|
|
|
-
|
|
|
7
|
|
|
|
Hyatt
Regency/Hyatt |
|
164
|
|
71,901
|
|
164
|
|
71,908
|
|
159
|
|
70,561
|
|
-
|
|
(7
|
)
|
|
5
|
|
|
1,340
|
|
|
|
Hyatt Place |
|
158
|
|
19,947
|
|
157
|
|
19,810
|
|
146
|
|
18,433
|
|
1
|
|
137
|
|
|
12
|
|
|
1,514
|
|
|
|
Hyatt Summerfield
Suites |
|
34
|
|
4,582
|
|
34
|
|
4,582
|
|
30
|
|
4,070
|
|
-
|
|
-
|
|
|
4
|
|
|
512
|
|
|
|
Vacation Ownership &
Residential
|
|
24
|
|
2,214
|
|
24
|
|
2,214
|
|
25
|
|
2,286
|
|
-
|
|
-
|
|
|
(1
|
)
|
|
(72
|
)
|
|
|
Total |
|
447
|
|
126,357
|
|
445
|
|
126,047
|
|
424
|
|
122,317
|
|
2
|
|
310
|
|
|
23
|
|
|
4,040
|
|
|