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Hyatt Hotels Reports 3rd Qrt. 2011 Net Income of $14 million
Compared to $30 million Same Period Last Year
RevPAR Increased 9.2%

CHICAGO, Nov 02, 2011- Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported financial results as follows:
  • Adjusted EBITDA was $135 million in the third quarter of 2011 compared to $111 million in the third quarter of 2010, an increase of 21.6%.
  • Net income attributable to Hyatt was $14 million, or $0.08 per share, during the third quarter of 2011 compared to net income attributable to Hyatt of $30 million, or $0.17 per share, in the third quarter of 2010. Adjusted for special items, net income attributable to Hyatt was $27 million, or $0.16 per share, during the third quarter of 2011 compared to net income attributable to Hyatt of $9 million, or $0.06 per share, during the third quarter of 2010. See the table on page 3 of the accompanying schedules for a summary of special items.
  • Comparable owned and leased hotels RevPAR increased 9.2% (6.9% excluding the effect of currency) in the third quarter of 2011 compared to the third quarter of 2010.
  • Owned and leased hotel operating margins increased 600 basis points in the third quarter of 2011 compared to the third quarter of 2010. Comparable owned and leased hotel operating margins increased 350 basis points in the third quarter of 2011 compared to the same period in 2010. See the table on page 9 of the accompanying schedules for a reconciliation of comparable owned and leased hotel operating margin to owned and leased hotel operating margin.
  • Comparable North American full-service RevPAR increased 7.1% (6.8% excluding the effect of currency) in the third quarter of 2011 compared to the third quarter of 2010. Comparable North American select-service RevPAR increased 8.8% in the third quarter of 2011 compared to the third quarter of 2010.
  • Comparable International RevPAR increased 9.6% (3.4% excluding the effect of currency) in the third quarter of 2011 compared to the third quarter of 2010.
  • The Company added 26 properties during the third quarter of 2011, including 19 properties acquired from LodgeWorks, L.P. and its private equity partners ("LodgeWorks").

Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, "I am very pleased that we completed the acquisition of 19 hotels from LodgeWorks during the quarter and welcomed a number of former LodgeWorks associates as new members of the Hyatt family. This acquisition immediately expands our extended-stay presence, expertise and development capabilities in North America, as well as adds several unique full-service hotels to Hyatt's portfolio. While it is still early, we are pleased with the initial results. We are also looking forward to the re-branding of all our extended-stay properties to our newly announced Hyatt House brand, which is on track for early 2012."

"We saw strong RevPAR growth in the third quarter, especially at our owned hotels and those located in North America. In addition, performance at our comparable owned and leased hotels was strong, with margins expanding by 350 basis points. The significant renovations at five of our owned properties neared completion during the quarter and initial guest and meeting planner response has been overwhelmingly positive. We are enthusiastic about the anticipated long-term benefits of these renovations."

"We continue to generate strong interest in our brands and we are excited about opening managed hotels in India, China, and Tanzania during the quarter. We believe we remain well poised for future opportunities as we have maintained significant liquidity following a bond offering and the amendment of our revolving line of credit during the quarter."

SEGMENT RESULTS & OTHER ITEMS

Owned and Leased Hotels Segment

Adjusted EBITDA increased 26.2% in the third quarter of 2011 compared to the same period in 2010.

RevPAR for comparable owned and leased hotels increased 9.2% (6.9% excluding the effect of currency) in the third quarter of 2011 compared to the same period in 2010. Occupancy improved 300 basis points, and ADR increased 5.0% (2.7% excluding the effect of currency).

Revenues increased 3.3% (1.3% excluding the effect of currency) in the third quarter of 2011 compared to the same period in 2010. Comparable hotel revenues increased 8.5% (6.5% excluding the effect of currency) in the third quarter of 2011 compared to the same period in 2010.

Owned and leased expenses decreased 4.3% in the third quarter of 2011 compared to the same period in 2010. Excluding expenses related to benefit programs funded through Rabbi Trusts and non-comparable hotel expenses, expenses increased 3.9% in the third quarter of 2011 compared to the same period in 2010. See the table on page 9 of the accompanying schedules for a reconciliation of comparable owned and leased hotels expenses to owned and leased hotels expenses.

As part of the acquisition of assets from LodgeWorks, 19 hotels were added to the owned and leased portfolio in the third quarter of 2011 (with an additional hotel acquisition closing during the fourth quarter of 2011):

  • AVIA Long Beach (owned, 138 rooms)
  • AVIA Napa (owned, 141 rooms)
  • AVIA Savannah (owned, 151 rooms)
  • AVIA The Woodlands (owned, 70 rooms)
  • Hotel Sierra Green Bay (owned, 241 rooms)
  • Hotel Sierra Branchburg (owned, 139 rooms)
  • Hotel Sierra Charlotte City Center (owned, 163 rooms)
  • Hotel Sierra Washington / Dulles (owned, 162 rooms)
  • Hotel Sierra Fishkill (owned, 135 rooms)
  • Hotel Sierra Morrisville / Raleigh (owned, 141 rooms)
  • Hotel Sierra Parsippany (owned, 140 rooms)
  • Hotel Sierra Rancho Cordova (owned, 158 rooms)
  • Hotel Sierra Richmond (owned, 134 rooms)
  • Hotel Sierra Santa Clara (owned, 150 rooms)
  • Hotel Sierra San Jose (owned, 164 rooms)
  • Hotel Sierra San Ramon (owned, 142 rooms)
  • Hotel Sierra Shelton (owned, 127 rooms)
  • Hyatt Place Madison (owned, 151 rooms)1
  • Hyatt Summerfield Suites Plymouth Meeting (owned, 131 rooms)1

1Property was previously franchised and included in North American Management and Franchising segment

One hotel, Hyatt on Capitol Square, was removed from the owned and leased portfolio in the third quarter of 2011. The lessor of this hotel exercised a termination right.

North American Management and Franchising Segment

Adjusted EBITDA increased by 8.1% in the third quarter of 2011 compared to the same period in 2010.

RevPAR for comparable North American full-service hotels increased 7.1% (6.8% excluding the effect of currency) in the third quarter of 2011 compared to the same period in 2010. Occupancy increased 260 basis points and ADR increased 3.5% (3.2% excluding the effect of currency).

RevPAR for comparable North American select-service hotels increased 8.8% in the third quarter of 2011 compared to the same period in 2010. Occupancy increased 410 basis points and ADR increased by 3.1%.

Revenue from management, franchise, and other fees increased 8.3% in the third quarter of 2011 compared to the same period in 2010.

The following hotels were added to the portfolio during the third quarter:

  • Hyatt 48Lex (franchised, 116 rooms)
  • Hyatt Place Long Island / East End (franchised, 100 rooms)
  • Hotel Sierra Bellevue (managed, 160 rooms) 2,3
  • Hotel Sierra Redmond (managed, 144 rooms) 2,3
  • AVIA Long Beach (owned, 138 rooms) 4
  • AVIA Napa (owned, 141 rooms) 4
  • AVIA Savannah (owned, 151 rooms) 4
  • AVIA The Woodlands (owned, 70 rooms) 4
  • Hotel Sierra Green Bay (owned, 241 rooms) 4
  • Hotel Sierra Branchburg (owned, 139 rooms) 2
  • Hotel Sierra Charlotte City Center (owned, 163 rooms) 2
  • Hotel Sierra Washington / Dulles (owned, 162 rooms) 2
  • Hotel Sierra Fishkill (owned, 135 rooms) 2
  • Hotel Sierra Morrisville / Raleigh (owned, 141 rooms) 2
  • Hotel Sierra Parsippany (owned, 140 rooms) 2
  • Hotel Sierra Rancho Cordova (owned, 158 rooms) 2
  • Hotel Sierra Richmond (owned, 134 rooms) 2
  • Hotel Sierra Santa Clara (owned, 150 rooms) 2
  • Hotel Sierra San Jose (owned, 164 rooms) 2
  • Hotel Sierra San Ramon (owned, 142 rooms) 2
  • Hotel Sierra Shelton (owned, 127 rooms) 2

2Properties to be rebranded to a Hyatt select-service brand

3The Company acquired the management rights, but not the real estate as part of LodgeWorks transaction

4Properties to be rebranded to a Hyatt full-service brand

Two hotels were removed from the portfolio in the third quarter of 2011.

International Management and Franchising Segment

Adjusted EBITDA was flat in the third quarter of 2011 compared to the same period in 2010.

RevPAR for comparable international hotels increased 9.6% (3.4% excluding the effect of currency) in the third quarter of 2011 compared to the same period in 2010. Occupancy increased 60 basis points and ADR increased 8.6% (2.4% excluding the effect of currency).

Revenue from management, franchise and other fees increased 9.7% in the third quarter of 2011 compared to the same period in 2010.

The following hotels were added to the portfolio during the third quarter:

  • Grand Hyatt Goa (managed, 313 rooms)
  • Hyatt Regency Guiyang (managed, 366 rooms)
  • Hyatt Regency Chennai (managed, 327 rooms)
  • Hyatt Regency Dar es Salaam (managed, 180 rooms)
  • Hyatt Regency Jinan (managed, 210 rooms)

Two properties were removed from the portfolio in the third quarter of 2011, including the recently added Park Hyatt Ningbo due to unexpected delays in the full opening.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses decreased by 14.7% in the third quarter of 2011 compared to the same period in 2010. Adjusted selling, general, and administrative expenses increased by 14.8% in the third quarter of 2011 compared to the same period in 2010. See the table on page 8 of the accompanying schedules for a reconciliation of adjusted selling, general, and administrative expenses to selling, general, and administrative expenses.

OPENINGS AND FUTURE EXPANSION

Hyatt added 26 hotels in the third quarter of 2011, each of which is listed above.

The Company expects to open a significant number of new properties in the future. As of September 30, 2011, this effort was underscored by executed management or franchise contracts for more than 150 hotels (or more than 36,000 rooms) across all brands. The executed contracts represent potential entry into several new countries and expansion into many new markets in which the Company is under-represented. Approximately 70% of the projected new hotels will be located outside North America.

CAPITAL EXPENDITURES

Capital expenditures during the third quarter of 2011 totaled $98 million, categorized as follows:

  • Maintenance: $22 million
  • Enhancements to existing properties: $72 million
  • Investment in new facilities: $4 million

CORPORATE FINANCE

During the third quarter, the Company acquired a portfolio of assets from LodgeWorks for a total purchase price of approximately $661 million, including 19 hotels that closed during the third quarter, one hotel closing in the fourth quarter, and the management and/or franchise rights to an additional four hotels.

During the third quarter, the Company issued and sold $250 million of 3.875% senior notes due 2016 at a public offering price of 99.571% and $250 million of 5.375% senior notes due 2021 at a public offering price of 99.846%.

On September 30, 2011, the Company had total debt of approximately $1.23 billion, cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of approximately $690 million, short-term investments of approximately $500 million and undrawn borrowing availability of approximately $1.4 billion under its amended and restated revolving credit facility.

2011 INFORMATION

The Company is providing the following information for the 2011 fiscal year:

  • Capital expenditures are expected to be in the range of $390 to $400 million, inclusive of significant renovation projects at five owned properties.
  • Depreciation and amortization expense is expected to be approximately $300 million.
  • Interest expense is expected to be approximately $60 million.
  • The Company expects to open over 35 hotels in total in 2011, including openings related to acquisitions completed in 2011.

CONFERENCE CALL INFORMATION

The Company will hold an investor conference call today, November 2, 2011, at 10:00 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 617.213.8837, passcode #27145891, 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 2, 2011 through midnight on November 9, 2011 by dialing 617.801.6888, passcode #16544728. 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 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 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 attributable to Hyatt Hotels Corporation, income 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.

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. 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.

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 operated hotels" is defined the same as "Comparable systemwide hotels" with the exception that it is limited to only those hotels we manage or operate and excludes hotels we franchise. "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, general economic uncertainty in key global markets, the rate and pace of economic recovery following economic downturns; levels of spending in business and leisure segments 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 Reports on Form 10-Q, 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 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(R), Park Hyatt(R), Andaz(R), Grand Hyatt(R), Hyatt Regency(R), Hyatt Place(R) and Hyatt Summerfield Suites(R) brand names and have locations on six continents. Hyatt Summerfield Suites is being rebranded as Hyatt HouseTM. Hyatt Residential Group, Inc., a Hyatt Hotels Corporation subsidiary, develops, operates, markets or licenses Hyatt ResidencesTM and Hyatt Vacation Club(R), which is changing its name to Hyatt Residence ClubTM. As of September 30, 2011, the Company's worldwide portfolio consisted of 478 properties in 45 countries. 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
2.
Reconciliation of Non-GAAP to GAAP Measure: Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation
3.
Summary of Special Items - Three Months Ended September 30, 2011 and 2010
4.
Summary of Special Items - Nine Months Ended September 30, 2011 and 2010
5.
Segment Financial Summary
6.
Hotel Chain Statistics - Comparable Locations
7.
Fee Summary
8.
Reconciliation of Non-GAAP to GAAP Measure: Adjusted Selling, General, and Administrative Expenses to Selling, General, and Administrative Expenses
9.
Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and Leased Hotel Operating Margin to Owned and Leased Hotel Operating Margin
10.
Properties and Rooms / Units by Geography
11.
Properties and Rooms / Units by Brand



Page 1

Hyatt Hotels Corporation
Condensed Consolidated Statements of Income
For the Three and Nine Months Ended September 30, 2011 and 2010
(In millions, except per share amounts)
(Unaudited)




















Three Months Ended September 30,
Nine Months Ended September 30,


2011
2010
2011
2010
REVENUES:







Owned and leased hotels
$ 470

$ 455

$ 1,386

$ 1,389
Management and franchise fees

66


61


211


182
Other revenues

18


11


49


34
Other revenues from managed properties (a)

343


352


1,062


1,004
Total revenues

897


879


2,708


2,609









DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:







Owned and leased hotels

360


376


1,086


1,114
Depreciation and amortization

75


68


218


204
Other direct costs

8


3


18


-
Selling, general, and administrative

58


68


199


195
Other costs from managed properties (a)

343


352


1,062


1,004
Direct and selling, general, and administrative expenses

844


867


2,583


2,517









Net gains (losses) and interest income from marketable securities held to fund operating programs



(15 )

13


(7 )

12
Equity earnings (losses) from unconsolidated hospitality ventures

1


(4 )

6


(23 )
Interest expense

(15 )

(16 )

(42 )

(40 )
Asset impairments

(1 )

(11 )

(2 )

(14 )
Other income (loss), net

(15 )

52


(21 )

62









INCOME BEFORE INCOME TAXES

8


46


59


89









(PROVISION) BENEFIT FOR INCOME TAXES

5


(17 )

-


(34 )









INCOME FROM CONTINUING OPERATIONS

13


29


59


55









DISCONTINUED OPERATIONS:







Loss from discontinued operations, net of income tax benefit of $- and $- for the three months ended and $- and $2 for the nine months ended September 30, 2011 and 2010, respectively



-


-


-


(3 )









Gains on sales of discontinued operations, net of income tax expense of $- and $1 for the three months ended and $- and $4 for the nine months ended September 30, 2011 and 2010, respectively



-


1


-


7









NET INCOME

13


30


59


59









NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

1


-


2


1









NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
$ 14

$ 30

$ 61

$ 60









EARNINGS PER SHARE - Basic







Income from continuing operations
$ 0.08

$ 0.17

$ 0.35

$ 0.32









Income from discontinued operations
$ -

$ -

$ -

$ 0.02









Net income attributable to Hyatt Hotels Corporation
$ 0.08

$ 0.17

$ 0.36

$ 0.34









EARNINGS PER SHARE - Diluted







Income from continuing operations
$ 0.08

$ 0.17

$ 0.35

$ 0.32









Income from discontinued operations
$ -

$ -

$ -

$ 0.02









Net income attributable to Hyatt Hotels Corporation
$ 0.08

$ 0.17

$ 0.36

$ 0.34









Basic share counts

165.5


174.1


169.9


174.1









Diluted share counts

165.6


174.2


170.3


174.3









(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 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 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,


2011
2010
2011
2010









Adjusted EBITDA
$ 135

$ 111

$ 395

$ 358
Equity earnings (losses) from unconsolidated hospitality ventures

1


(4 )

6


(23 )
Asset impairments

(1 )

(11 )

(2 )

(14 )
Other income (loss), net

(15 )

52


(21 )

62
Discontinued operations, net of tax

-


1


-


4
Net loss attributable to noncontrolling interests

1


-


2


1
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA

(22 )

(18 )

(59 )

(50 )
EBITDA
$ 99

$ 131

$ 321

$ 338
Depreciation and amortization

(75 )

(68 )

(218 )

(204 )
Interest expense

(15 )

(16 )

(42 )

(40 )
(Provision) benefit for income taxes

5


(17 )

-


(34 )
Net Income Attributable to Hyatt Hotels Corporation
$ 14

$ 30

$ 61

$ 60

















Page 3

Hyatt Hotels Corporation
Summary of Special Items - Three Months Ended September 30, 2011 and 2010

The following table represents a reconciliation of net income attributable to Hyatt Hotels Corporation, adjusted for special items, to net income attributable to Hyatt Hotels Corporation presented for the three months ended September 30, 2011 and September 30, 2010, respectively.







(in millions, except per share amounts)














Location on Condensed Consolidated



Statements of Income

Three Months Ended September 30,





2011
2010







Net income attributable to Hyatt Hotels Corporation


$ 14

$ 30
Earnings per share


$ 0.08

$ 0.17







Special Items












Asset impairments (a)
Asset impairments

1


11
Unconsolidated hospitality ventures impairment (b)
Equity earnings (losses) from unconsolidated hospitality ventures

-


6
Gain on sale of real estate (c)
Other income (loss), net

-


(6 )
Marketable securities (d)
Other income (loss), net

12


(10 )
Gain on extinguishment of debt (e)
Other income (loss), net

-


(35 )
Provisions on hotel loans (f)
Other income (loss), net

4


2
Transaction costs (g)
Other income (loss), net

4


-
Total special items - pre-tax



21


(32 )
(Provision) benefit for income taxes for special items
(Provision) benefit for income taxes

(8 )

12
Discontinued operations, net of tax
Income from discontinued operations, net

-


(1 )
Total special items - after-tax



13


(21 )
Special items impact per share


$ 0.08

$ (0.11 )







Net income attributable to Hyatt Hotels Corporation, adjusted for special items


$ 27

$ 9
Earnings per share, adjusted for special items


$ 0.16

$ 0.06







(a) Asset impairments -- During the third quarter of 2011, we recorded $1 million of asset impairment charges related to the impairment of inventory at a vacation ownership property. During the third quarter of 2010, we recorded $11 million of impairment charges primarily related to the impairment of a company owned airplane.

(b) Unconsolidated hospitality ventures impairment -- During the third quarter of 2010, we recorded an impairment charge of $6 million related to an investment in a hospitality venture property.

(c) Gain on sale of real estate - During the third quarter of 2010, we sold a hotel for a gain of $6 million.

(d) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs.

(e) 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, at which time a gain on extinguishment of debt of $35 million was recorded.

(f) Provisions on hotel loans - In the third quarters of 2011 and 2010, we recorded $4 million and $2 million, respectively, in provisions related to certain hotel developer loans based on our assessment of their collectability.

(g) Transaction costs - In the third quarter of 2011, we incurred $4 million in transaction costs to acquire hotels and other assets from LodgeWorks, L.P. and its private equity partners.


Page 4

Hyatt Hotels Corporation
Summary of Special Items - Nine Months Ended September 30, 2011 and 2010

The following table represents a reconciliation of net income attributable to Hyatt Hotels Corporation, adjusted for special items, to net income attributable to Hyatt Hotels Corporation presented for the nine months ended September 30, 2011 and September 30, 2010, respectively.







(in millions, except per share amounts)














Location on Condensed Consolidated



Statements of Income
Nine Months Ended September 30,




2011
2010







Net income attributable to Hyatt Hotels Corporation


$ 61

$ 60
Earnings per share


$ 0.36

$ 0.34







Special Items












Asset impairments (a)
Asset impairments

2


14
Unconsolidated hospitality ventures impairment (b)
Equity earnings (losses) from unconsolidated hospitality ventures

-


15
(Gain) loss on sale of real estate (c)
Other income (loss), net

2


(6 )
Marketable securities (d)
Other income (loss), net

19


(12 )
Loss on sublease agreement (e)
Other income (loss), net

5


-
Gain on extinguishment of debt (f)
Other income (loss), net

-


(35 )
Provisions on hotel loans (g)
Other income (loss), net

4


2
Transaction costs (h)
Other income (loss), net

4


-
Total special items - pre-tax



36


(22 )
(Provision) benefit for income taxes for special items
(Provision) benefit for income taxes

(14 )

10
Discontinued operations, net of tax
Income from discontinued operations, net

-


(4 )
Total special items - after-tax



22


(16 )
Special items impact per share


$ 0.13

$ (0.08 )







Net income attributable to Hyatt Hotels Corporation, adjusted for special items


$ 83

$ 44
Earnings per share, adjusted for special items


$ 0.49

$ 0.26














(a) Asset impairments -- During the nine months ended September 30, 2011 and 2010, we identified and recorded $2 million and $14 million of asset impairment charges. The 2011 charge includes a $1 million impairment taken on inventory at one of our vacation ownership properties. The 2010 charge includes a $10 million impairment of a company owned airplane and a $3 million impairment of property and equipment at one of our owned hotels.

(b) Unconsolidated hospitality ventures impairment -- During the nine months ended September 30, 2010, we recorded an impairment charge of $9 million related to an investment in a vacation ownership property and $6 million related to an investment in a hospitality venture property.

(c) (Gain) loss on sale of real estate - During the nine months ended September 30, 2011, we sold eight hotels from our owned hotel portfolio for a loss of $2 million. During 2010, we sold a hotel for a gain of $6 million.

(d) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs.

(e) Loss on sublease agreement - As of September 30, 2011, we have tentatively agreed to a new sublease agreement with a related party that results in a $5 million loss based on terms of the existing master lease.

(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, at which time a gain on extinguishment of debt of $35 million was recorded.

(g) Provisions on hotel loans - During the first nine months of 2011 and 2010, we recorded $4 million and $2 million, respectively, in provisions related to certain hotel developer loans based on our assessment of their collectability.

(h) Transaction costs - In the nine months ended September 30, 2011, we incurred $4 million in transaction costs to acquire hotels and other assets from LodgeWorks, L.P. and its private equity partners.








Page 5

Hyatt Hotels Corporation
Segment Financial Summary

















(in millions)


































Three Months Ended September 30,




Nine Months Ended September 30,









Change
Change




Change
Change


2011
2010
($)
(%)
2011
2010
($)
(%)

















Revenue:















Owned and leased
$ 470

$ 455

$ 15

3.3 %
$ 1,386

$ 1,389

$ (3 )
(0.2 )%
North America

52


48


4

8.3 %

159


145


14

9.7 %
International

34


31


3

9.7 %

110


97


13

13.4 %
Total management and franchising

86


79


7

8.9 %

269


242


27

11.2 %
Corporate and other

18


11


7

63.6 %

49


34


15

44.1 %
Other revenues from managed properties

343


352


(9 )
(2.6 )%

1,062


1,004


58

5.8 %
Eliminations

(20 )

(18 )

(2 )
(11.1 )%

(58 )

(60 )

2

3.3 %
Total revenues
$ 897

$ 879

$ 18

2.0 %
$ 2,708

$ 2,609

$ 99

3.8 %

















Adjusted EBITDA:















Owned and leased
$ 84

$ 66

$ 18

27.3 %
$ 236

$ 219

$ 17

7.8 %
Pro rata share of unconsolidated hospitality ventures

22


18


4

22.2 %

59


50


9

18.0 %
Total owned and leased

106


84


22

26.2 %

295


269


26

9.7 %
North American management and franchising

40


37


3

8.1 %

124


109


15

13.8 %
International management and franchising

17


17


-

0.0 %

59


49


10

20.4 %
Corporate and other

(28 )

(27 )

(1 )
(3.7 )%

(83 )

(69 )

(14 )
(20.3 )%
Adjusted EBITDA
$ 135

$ 111

$ 24

21.6 %
$ 395

$ 358

$ 37

10.3 %































Page 6

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) (a)


2011
2010
Change


(in constant $)
2011
2010
Change


(in constant $)

Full service (39)





















ADR
$ 189.49
$ 180.61
4.9%


2.3%
$ 193.16
$ 185.98
3.9%


1.7%
Occupancy

76.0%

73.2%
2.8%
pts



71.4%

70.6%
0.8%
pts

RevPAR
$ 144.07
$ 132.12
9.0%


6.3%
$ 137.86
$ 131.29
5.0%


2.8%





















Select service (46)





















ADR
$ 92.01
$ 86.99
5.8%


5.8%
$ 92.50
$ 87.33
5.9%


5.9%
Occupancy

82.6%

79.0%
3.6%
pts



78.4%

75.4%
3.0%
pts

RevPAR
$ 75.99
$ 68.75
10.5%


10.5%
$ 72.57
$ 65.83
10.2%


10.2%





















Comparable owned and leased hotels (85)





















ADR
$ 164.03
$ 156.29
5.0%


2.7%
$ 166.66
$ 160.54
3.8%


2.0%
Occupancy

77.6%

74.6%
3.0%
pts



73.1%

71.8%
1.3%
pts

RevPAR
$ 127.35
$ 116.58
9.2%


6.9%
$ 121.84
$ 115.22
5.7%


3.9%





















Managed and franchise hotels (# hotels; includes owned & leased hotels)

North America





















Full service (121)



















ADR
$ 158.79
$ 153.46
3.5%


3.2%
$ 161.66
$ 156.50
3.3%


3.0%
Occupancy

76.3%

73.7%
2.6%
pts



72.7%

70.4%
2.3%
pts

RevPAR
$ 121.16
$ 113.08
7.1%


6.8%
$ 117.55
$ 110.21
6.7%


6.4%





















Select service (178)



















ADR
$ 95.60
$ 92.68
3.1%


3.1%
$ 96.53
$ 93.35
3.4%


3.4%
Occupancy

78.1%

74.0%
4.1%
pts



75.5%

70.9%
4.6%
pts

RevPAR
$ 74.68
$ 68.62
8.8%


8.8%
$ 72.85
$ 66.20
10.0%


10.0%





















International





















International comparable hotels (96)



















ADR
$ 227.26
$ 209.26
8.6%


2.4%
$ 230.11
$ 211.35
8.9%


3.0%
Occupancy

65.1%

64.5%
0.6%
pts



64.6%

63.8%
0.8%
pts

RevPAR
$ 147.95
$ 134.95
9.6%


3.4%
$ 148.69
$ 134.92
10.2%


4.2%





















Comparable systemwide hotels (395)





















ADR
$ 162.67
$ 155.30
4.7%


2.5%
$ 165.59
$ 158.08
4.7%


2.6%
Occupancy

73.5%

71.2%
2.3%
pts



71.0%

68.7%
2.3%
pts

RevPAR
$ 119.64
$ 110.58
8.2%


5.9%
$ 117.57
$ 108.59
8.3%


6.0%





















(a) Owned and leased hotel statistics do not include unconsolidated hospitality ventures.


Page 7

Hyatt Hotels Corporation
Fee Summary

















(in millions)
Three Months Ended September 30,




Nine Months Ended September 30,





2011
2010
Change ($)
Change (%)
2011
2010
Change ($)
Change (%)

















Fees:















Base management fees
$ 36
$ 33
$ 3

9.1 %
$ 109
$ 97
$ 12

12.4 %
Incentive management fees

18

19

(1 )
(5.3 )%

70

62

8

12.9 %
Franchise and other fees

12

9

3

33.3 %

32

23

9

39.1 %
Total fees
$ 66
$ 61
$ 5

8.2 %
$ 211
$ 182
$ 29

15.9 %



























Page 8

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 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 September 30,




Nine Months Ended September 30,





2011
2010
Change ($)
Change (%)
2011
2010
Change ($)
Change (%)

















Adjusted Selling, General, and Administrative Expenses
$ 70

$ 61
$ 9

14.8 %
$ 206

$ 190
$ 16

8.4 %

















Rabbi Trust impact

(12 )

7

(19 )
(271.4 )%

(7 )

5

(12 )
(240.0 )%

















Selling, General, and Administrative Expenses
$ 58

$ 68
$ (10 )
(14.7 )%
$ 199

$ 195
$ 4

2.1 %





























Page 9

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 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 September 30,




Nine Months Ended September 30,





2011
2010
Change ($)
Change (%)
2011
2010
Change ($)
Change (%)

















Revenue















Comparable owned and leased hotels
$ 446

$ 411

$ 35

8.5 %
$ 1,324

$ 1,257

$ 67

5.3 %

















Noncomparable hotels

24


44


(20 )
(45.5 )%

62


132


(70 )
(53.0 )%

















Owned and Leased Hotels Revenue
$ 470

$ 455

$ 15

3.3 %
$ 1,386

$ 1,389

$ (3 )
(0.2 )%



















































Expenses















Comparable owned and leased hotels
$ 348

$ 335

$ 13

3.9 %
$ 1,040

$ 1,000

$ 40

4.0 %

















Noncomparable hotels

17


37


(20 )
(54.1 )%

49


112


(63 )
(56.3 )%

















Rabbi Trust

(5 )

4


(9 )
(225.0 )%

(3 )

2


(5 )
(250.0 )%

















Owned and Leased Hotels Expense
$ 360

$ 376

$ (16 )
(4.3 )%
$ 1,086

$ 1,114

$ (28 )
(2.5 )%


































Owned and leased hotel operating margin percentage

23.4 %

17.4 %


6.0 %

21.6 %

19.8 %


1.8 %

















Comparable owned and leased hotel operating margin percentage

22.0 %

18.5 %


3.5 %

21.5 %

20.4 %


1.1 %



























Page 10

Hyatt Hotels Corporation

Properties and Rooms / Units by Geography
























September 30, 2011
June 30, 2011
December 31, 2010
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
45
19,224
41
18,884
42
19,447
4

340

3

(223 )
Select service
63
8,562
49
6,525
54
7,041
14

2,037

9

1,521

Total owned and leased hotels


108
27,786
90
25,409
96
26,488
18

2,377

12

1,298










































Managed and franchised hotels





















(includes owned and leased hotels)





















North America


September 30, 2011
June 30, 2011
December 31, 2010
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
59,900
114
59,995
114
60,016
2

(95 )
2

(116 )
Franchised
19
5,682
17
5,222
16
4,767
2

460

3

915
Subtotal
135
65,582
131
65,217
130
64,783
4

365

5

799





















Select service hotels



















Managed
93
12,497
76
10,006
81
10,522
17

2,491

12

1,975
Franchised
121
15,343
123
15,675
114
14,494
(2 )
(332 )
7

849
Subtotal
214
27,840
199
25,681
195
25,016
15

2,159

19

2,824


-
-















International (b)





















Managed (a)
104
34,254
101
33,395
102
34,519
3

859

2

(265 )
Franchised
2
988
2
988
2
988
-

-

-

-
Subtotal
106
35,242
103
34,383
104
35,507
3

859

2

(265 )





















Total managed and franchised hotels


455
128,664
433
125,281
429
125,306
22

3,383

26

3,358





















Vacation ownership
15
963
15
963
15
962
-

-

-

1
Residential
8
1,230
8
1,230
9
1,239
-

-

(1 )
(9 )














-

-




Total properties and rooms/units


478
130,857
456
127,474
453
127,507
22

3,383

25

3,350










































(a) Owned and leased hotel figures do not include unconsolidated hospitality ventures.

(b) Additional details included for a regional breakout of international managed and franchised hotels.






















International managed and franchised hotels











(includes owned and leased hotels)


September 30, 2011
June 30, 2011
December 31, 2010
QTD Change
YTD Change


Properties
Rooms/Units
Properties
Rooms/Units
Properties
Rooms/Units
Properties
Rooms/Units
Properties
Rooms/Units
Asia Pacific
51
20,244
51
20,204
51
20,364
-

40

-

(120 )
Southwest Asia
16
5,119
14
4,480
13
4,430
2

639

3

689
Europe, Africa, Middle East.
32
7,961
31
7,781
33
8,795
1

180

(1 )
(834 )
Other Americas
7
1,918
7
1,918
7
1,918
-

-

-

-





















Total International
106
35,242
103
34,383
104
35,507
3

859

2

(265 )

























Page 11

Hyatt Hotels Corporation
Properties and Rooms / Units by Brand












































September 30, 2011
June 30, 2011
December 31, 2010
QTD Change
YTD Change

Brand


Properties
Rooms/Units
Properties
Rooms/Units
Properties
Rooms/Units
Properties
Rooms/Units
Properties
Rooms/Units
Park Hyatt
26
5,093
27
5,313
25
5,049
(1 )
(220 )
1

44
Andaz
5
1,101
5
1,101
5
1,096
-

-

-

5
Grand Hyatt
37
21,109
36
20,798
37
21,568
1

311

-

(459 )
Hyatt Regency
148
67,694
145
66,926
146
67,115
3

768

2

579
Hyatt
25
5,827
21
5,462
21
5,462
4

365

4

365
Hyatt Place
162
20,532
161
20,432
161
20,434
1

100

1

98
Hyatt Summerfield Suites
52
7,308
38
5,249
34
4,582
14

2,059

18

2,726

Vacation Ownership and Residential


23
2,193
23
2,193
24
2,201
-

-

(1 )
(8 )
Total
478
130,857
456
127,474
453
127,507
22

3,383

25

3,350

.
Contact:

Hyatt Hotels Corporation
Investors:
Atish Shah, 312-780-5427
atish.shah@hyatt.com
or
Media:
Farley Kern, 312-780-5506
farley.kern@hyatt.com

.
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Also See: Hyatt Hotels Reports 2nd Qrt. 2011 Net Income of $37 million Compared to $25 million Last Year / August 2011

Hyatt Hotels Reports a 1st Quarter 2011 Net Income of $10 million Compared to $5 million Last Year; Revenue Decreases 4.2% to $434 million from $451 million / May 2011

Hyatt Hotels Reports a 4th Quarter 2010 Net Income of $6 million Compared to Loss of $12 million Last Year; Revenue Up to $918 million from $889 million / February 2011

Hyatt Hotels, Which Went Public in November, Reports a 4th Quarter 2010 Loss of $12 million Compared with a loss of $142 million Last Year; Revenue Up Less than 1% to $889 million from $886 million / Hotel Operating Statistics / February 2010

Hyatt Hotels Shares Make Strong Showing in First Day of IPO Trading / November 2009
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