CHICAGO--August 2, 2011--Hyatt Hotels Corporation (“Hyatt” or
the “Company”) (NYSE: H) today reported financial results for the
second quarter of 2011 as follows:
SECOND QUARTER 2011
- Adjusted EBITDA was $151 million
compared to $135 million in the second quarter of 2010, an increase of
11.9%.
- Net income attributable to Hyatt
was $37 million, or $0.22 per share, compared to net income
attributable to Hyatt of $25 million, or $0.14 per share, in the second
quarter of 2010. Adjusted for special items, net income attributable to
Hyatt was $46 million, or $0.27 per share, during the second quarter of
2011 compared to net income attributable to Hyatt of $33 million, or
$0.18 per share, during the second 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 5.9% (3.3% excluding the effect of currency) compared
to the second quarter of 2010.
- Owned and leased hotel operating
margins increased 50 basis points compared to the second quarter of
2010. Comparable owned and leased hotel operating margins increased 80
basis points 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 5.0% (4.7% excluding the effect of
currency) compared to the second quarter of 2010. Comparable North
American select-service RevPAR increased 9.6% compared to the second
quarter of 2010.
- Comparable International RevPAR
increased 9.9% (2.5% excluding the effect of currency) compared to the
second quarter of 2010.
- The Company opened five properties
during the second quarter of 2011 including three owned extended-stay
hotels purchased during the second quarter of 2011 for approximately
$77 million.
- During the second quarter of 2011,
the Company repurchased 8,987,695 shares of Class B common stock for
approximately $396 million and retired such shares.
Mark S. Hoplamazian, president and chief executive officer of
Hyatt Hotels Corporation, said, "Our business performed well in the
second quarter, showing solid growth in earnings, stronger occupancy
levels and increased average rates in multiple segments and regions.
Management and franchise fee growth was over 15%. We continued to
expand our presence in markets that are important to our customers and
increased our executed contract base for future hotels to 150.
The momentum continued in our select service portfolio with
RevPAR increasing almost 10%. We are building on that momentum with
three recently announced transactions — two acquisitions and the
formation of a joint venture — that will expand our select service
presence, heighten awareness of our successful brands among both guests
and owners and strengthen our select service development capabilities,
thereby enhancing our ability to attract third party capital to fuel
our growth in this attractive segment in North America and
internationally."
SECOND QUARTER 2011 SEGMENT RESULTS
& OTHER ITEMS
Owned and Leased Hotels Segment
Adjusted EBITDA increased 10.7% in the second quarter of 2011
compared to the same period in 2010. Adjusted EBITDA is estimated to
have been negatively impacted by approximately $10 million due to
renovations during the second quarter of 2011. This estimate is based
upon a RevPAR and flow-through assumption for each property under
renovation.
RevPAR for comparable owned and leased hotels increased 5.9%
(3.3% excluding the effect of currency) in the second quarter of 2011
compared to the same period in 2010. Occupancy improved 100 basis
points, and ADR increased 4.6% (2.0% excluding the effect of currency).
Due to the aforementioned renovations, RevPAR for comparable
owned and leased hotels is estimated to have been negatively impacted
by approximately 500 basis points. This estimate is based upon a RevPAR
assumption for each respective market.
Revenues increased 0.2% (decreased 2.3% excluding the effect
of currency) in the second quarter of 2011 compared to the same period
in 2010. Comparable hotel revenues increased 6.6% (4.0% excluding the
effect of currency) in the second quarter of 2011 compared to the same
period in 2010.
Owned and leased expenses decreased 0.5% in the second
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 5.6% in the second
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.
The following transactions were completed during the quarter:
- The Company purchased three
extended-stay hotels in California for approximately $77 million.
- The Company sold eight hotels (six
Hyatt Place properties and two Hyatt Summerfield Suites properties) to
a joint venture for $110 million. Hyatt owns 40% of the joint venture.
North American Management and Franchising Segment
Adjusted EBITDA increased by 7.3% in the second quarter of
2011 compared to the same period in 2010, due primarily to an increase
in RevPAR.
RevPAR for comparable North American full-service hotels
increased 5.0% (4.7% excluding the effect of currency) in the second
quarter of 2011 compared to the same period in 2010. Occupancy
increased 180 basis points and ADR increased 2.5% (2.2% excluding the
effect of currency).
RevPAR for comparable North American select-service hotels
increased 9.6% in the second quarter of 2011 compared to the same
period in 2010. Occupancy increased 460 basis points and ADR increased
by 3.2%.
Revenue from management, franchise, and other fees increased
7.7% in the second quarter of 2011 compared to the same period in 2010.
The following hotels were added to the portfolio during the
second quarter:
- Hyatt Summerfield Suites San
Diego/Sorrento Mesa (owned, 194 rooms)
- Hyatt Summerfield Suites
Cypress/Anaheim (owned, 142 rooms)
- Hyatt Summerfield Suites
Emeryville/San Francisco Bay Area (owned, 234 rooms)
International Management and Franchising Segment
Adjusted EBITDA increased by 22.2% in the second quarter of
2011 compared to the same period in 2010 as a result of increased fee
revenue from new hotels and non-recurring items.
RevPAR for comparable international hotels increased 9.9%
(2.5% excluding the effect of currency) in the second quarter of 2011
compared to the same period in 2010. Occupancy decreased 10 basis
points and ADR increased 10.2% (2.7% excluding the effect of currency).
Revenue from management, franchise and other fees increased
14.7% in the second quarter of 2011 compared to the same period in
2010.
The following hotels were added to the portfolio during the
second quarter:
- Park Hyatt Maldives (managed, 50
rooms)
- Park Hyatt Ningbo (joint venture,
228 rooms)
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased by
22.4% in the second quarter of 2011 compared to the same period in
2010. Adjusted selling, general, and administrative expenses increased
by 9.4% in the second 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 opened five hotels in the second 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 June 30, 2011, this effort was
underscored by executed management or franchise contracts for over 150
hotels (or more than 35,000 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 second quarter of 2011
totaled $72 million, categorized as follows:
- Maintenance: $18 million
- Enhancements to existing
properties: $52 million
- Investment in new facilities: $2
million
CORPORATE FINANCE
During the second quarter of 2011, the Company purchased the
aforementioned three extended-stay hotels for approximately $77
million.
The Company sold six owned Hyatt Place properties and two
owned Hyatt Summerfield Suites properties to a joint venture between
Hyatt and Noble Investment Group for $110 million. Hyatt owns 40% of
the joint venture.
The Company announced in July that it will purchase 24 hotels
and related assets, including management, franchise and intellectual
property rights for an aggregate purchase price of approximately $802
million in cash. The closings for the majority of asset purchases are
expected to take place in the third quarter of 2011, although the
purchases of certain assets may close at later dates.
During the quarter, the Company repurchased 8,987,695 shares
of Class B common stock for approximately $396 million and retired such
shares.
On June 30, 2011, the Company had total debt of approximately
$770 million, cash and cash equivalents, including investments in
highly-rated money market funds and similar investments, of
approximately $875 million, short-term investments of approximately
$520 million and undrawn borrowing availability of approximately $1.1
billion under its 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 $380 to $400 million, inclusive of significant
renovation projects at five owned properties.
- Depreciation and amortization
expense is expected to be in the range of $285 to $295 million.
- Interest expense is expected to be
in the range of $50 to $55 million.
- The Company expects to open
approximately 15 hotels total in 2011 (excluding openings related to
the acquisition announced in July).
CONFERENCE CALL INFORMATION
The Company will hold an investor conference call today,
August 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
617.614.3945, passcode #92045811, 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 August 2, 2011 through
midnight on August 9, 2011 by dialing 617.801.6888, passcode #
23322523. 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, the rate and pace of
economic recovery following the recent economic downturn; 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 report on
Form 10Q for the fiscal quarter ended June 30, 2011, 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®, Park Hyatt®, Andaz®, Grand
Hyatt®, Hyatt Regency®, Hyatt Place®and Hyatt
Summerfield Suites® brand names and have locations
on six continents. Hyatt Residential Group, Inc., a Hyatt
Hotels Corporation subsidiary, develops, operates, markets or
licenses Hyatt ResidencesTM and Hyatt
Vacation Club®, which is changing its name to Hyatt
Residence ClubTM. As of June 30, 2011,
the Company’s worldwide portfolio consisted of 456 properties in 44
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 June 30, 2011 and 2010 |
4. |
|
Summary of
Special Items - Six Months Ended June 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 Six Months Ended June 30, 2011 and 2010 |
(In
millions, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
REVENUES: |
|
|
|
|
|
|
|
|
Owned and leased
hotels |
|
$ |
484 |
|
|
$ |
483 |
|
|
$ |
916 |
|
|
$ |
934 |
|
Management and
franchise fees |
|
|
75 |
|
|
|
64 |
|
|
|
145 |
|
|
|
121 |
|
Other revenues |
|
|
17 |
|
|
|
12 |
|
|
|
31 |
|
|
|
23 |
|
Other
revenues from managed properties (a) |
|
|
360 |
|
|
|
330 |
|
|
|
719 |
|
|
|
652 |
|
Total revenues |
|
|
936 |
|
|
|
889 |
|
|
|
1,811 |
|
|
|
1,730 |
|
|
|
|
|
|
|
|
|
|
DIRECT AND
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: |
|
|
|
|
|
|
|
|
Owned and leased
hotels |
|
|
372 |
|
|
|
374 |
|
|
|
726 |
|
|
|
738 |
|
Depreciation and
amortization |
|
|
72 |
|
|
|
66 |
|
|
|
143 |
|
|
|
136 |
|
Other direct
costs |
|
|
6 |
|
|
|
2 |
|
|
|
10 |
|
|
|
(3 |
) |
Selling,
general, and administrative |
|
|
71 |
|
|
|
58 |
|
|
|
141 |
|
|
|
127 |
|
Other
costs from managed properties (a) |
|
|
360 |
|
|
|
330 |
|
|
|
719 |
|
|
|
652 |
|
Direct and
selling, general, and administrative expenses |
|
|
881 |
|
|
|
830 |
|
|
|
1,739 |
|
|
|
1,650 |
|
|
|
|
|
|
|
|
|
|
Net gains (losses) and interest
income from marketable securities held to fund operating programs
|
|
|
2 |
|
|
|
(8 |
) |
|
|
8 |
|
|
|
(1 |
) |
Equity earnings
(losses) from unconsolidated hospitality ventures |
|
|
2 |
|
|
|
(11 |
) |
|
|
5 |
|
|
|
(19 |
) |
Interest expense
|
|
|
(14 |
) |
|
|
(12 |
) |
|
|
(27 |
) |
|
|
(24 |
) |
Asset
impairments |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Other
income (loss), net |
|
|
(9 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES |
|
|
35 |
|
|
|
19 |
|
|
|
51 |
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
(PROVISION) BENEFIT FOR INCOME TAXES |
|
|
1 |
|
|
|
-
|
|
|
|
(5 |
) |
|
|
(17 |
) |
|
|
|
|
|
|
|
|
|
INCOME FROM
CONTINUING OPERATIONS |
|
|
36 |
|
|
|
19 |
|
|
|
46 |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
DISCONTINUED
OPERATIONS: |
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of income tax benefit of $- and $1 for the three months
and $- and $2 for the six months ended June 30, 2011 and 2010,
respectively
|
|
|
-
|
|
|
|
(1
|
) |
|
|
-
|
|
|
|
(3
|
) |
|
|
|
|
|
|
|
|
|
Gains on sales of discontinued
operations, net of income tax expense of $- and $3 for the three months
and $- and $3 for the six months ended June 30, 2011 and 2010,
respectively
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
36 |
|
|
|
24 |
|
|
|
46 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
NET
INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION |
|
$ |
37 |
|
|
$ |
25 |
|
|
$ |
47 |
|
|
$ |
30 |
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE - Basic |
|
|
|
|
|
|
|
|
Income from
continuing operations |
|
$ |
0.21 |
|
|
$ |
0.11 |
|
|
$ |
0.27 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
Gain from
discontinued operations |
|
$ |
-
|
|
|
$ |
0.03 |
|
|
$ |
-
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Hyatt Hotels Corporation |
|
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.28 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE - Diluted |
|
|
|
|
|
|
|
|
Income from
continuing operations |
|
$ |
0.21 |
|
|
$ |
0.11 |
|
|
$ |
0.27 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
Gain from
discontinued operations |
|
$ |
-
|
|
|
$
|
0.03
|
|
|
$ |
-
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Hyatt Hotels Corporation |
|
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.28 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
Basic share
counts |
|
|
169.9 |
|
|
|
174.1 |
|
|
|
172.1 |
|
|
|
174.0 |
|
|
|
|
|
|
|
|
|
|
Diluted share
counts |
|
|
170.1 |
|
|
|
174.3 |
|
|
|
172.3 |
|
|
|
174.1 |
|
(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 June 30, |
|
Six Months Ended June 30, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
151 |
|
|
$ |
135 |
|
|
$ |
260 |
|
|
$ |
247 |
|
Equity earnings
(losses) from unconsolidated hospitality ventures |
|
|
2 |
|
|
|
(11 |
) |
|
|
5 |
|
|
|
(19 |
) |
Asset
impairments |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Other income
(loss), net |
|
|
(9 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
10 |
|
Discontinued
operations, net of tax |
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
|
|
3
|
|
Net loss
attributable to noncontrolling interests |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Pro rata
share of unconsolidated hospitality ventures Adjusted EBITDA |
|
|
(22 |
) |
|
|
(18 |
) |
|
|
(37 |
) |
|
|
(32 |
) |
EBITDA |
|
$ |
122 |
|
|
$ |
103 |
|
|
$ |
222 |
|
|
$ |
207 |
|
Depreciation and
amortization |
|
|
(72 |
) |
|
|
(66 |
) |
|
|
(143 |
) |
|
|
(136 |
) |
Interest expense
|
|
|
(14 |
) |
|
|
(12 |
) |
|
|
(27 |
) |
|
|
(24 |
) |
(Provision) benefit for income taxes |
|
|
1 |
|
|
|
-
|
|
|
|
(5 |
) |
|
|
(17 |
) |
Net
Income Attributable to Hyatt Hotels Corporation |
|
$ |
37 |
|
|
$ |
25 |
|
|
$ |
47 |
|
|
$ |
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 3
|
Hyatt Hotels Corporation |
Summary of Special Items - Three Months Ended June 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 June 30, 2011 and June 30, 2010, respectively. |
|
|
|
|
|
|
|
|
(in
millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Location on Condensed
Consolidated
Statements of Income
|
|
Three Months Ended June 30, |
|
|
|
|
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
Net
income attributable to Hyatt Hotels Corporation |
|
|
|
$ |
37 |
|
|
$ |
25 |
|
|
Earnings
per share |
|
|
|
$ |
0.22 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
Special Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments (a)
|
|
Asset impairments |
|
|
1 |
|
|
|
3 |
|
|
Unconsolidated hospitality
ventures
impairment (b)
|
|
Equity earnings (losses) from
unconsolidated hospitality ventures
|
|
|
-
|
|
|
|
9
|
|
|
Loss on sale of
real estate (c) |
|
Other income (loss), net
|
|
|
2 |
|
|
|
-
|
|
|
Marketable
securities (d) |
|
Other income (loss), net
|
|
|
6 |
|
|
|
9 |
|
|
Loss on
sublease agreement (e) |
|
Other income
(loss), net |
|
|
5 |
|
|
|
-
|
|
|
Total special
items - pre-tax |
|
|
|
|
14 |
|
|
|
21 |
|
|
(Provision)
benefit for income taxes for special items |
|
(Provision)
benefit for income taxes |
|
|
(5 |
) |
|
|
(8 |
) |
|
Discontinued operations, net of tax |
|
Gain
from discontinued operations, net |
|
|
-
|
|
|
|
(5 |
) |
|
Total
special items - after-tax |
|
|
|
|
9 |
|
|
|
8 |
|
|
Special
items impact per share |
|
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Hyatt Hotels Corporation, adjusted for special
items |
|
|
$ |
46 |
|
|
$ |
33 |
|
|
Earnings
per share, adjusted for special items |
|
|
|
$ |
0.27 |
|
|
$ |
0.18 |
|
|
|
|
(a) Asset impairments − During
the second quarters of 2011 and 2010, we identified and recorded $1
million and $3 million of asset impairment charges related to the
impairment of property and equipment at owned hotels, respectively.
|
(b) Unconsolidated hospitality
ventures impairment − During the second quarter of 2010, we recorded an
impairment charge of $9 million related to an investment in a vacation
ownership property.
|
(c)
Loss on sale of real estate - During the second quarter of 2011, we
sold eight hotels from our owned hotel portfolio for a loss of $2
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 June 30, 2011, we have tentatively agreed to a new sublease
agreement with a related party. The new sublease agreement contemplates
sublease income paid to Hyatt that represents market rates and is
approximately $5 million less than the rental payments that we are
required to make under the master lease.
|
|
Page 4
|
Hyatt Hotels Corporation |
Summary of Special Items - Six Months Ended June 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 six months
ended June 30, 2011 and June 30, 2010, respectively. |
|
|
|
|
|
|
|
|
(in
millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Location
on Condensed Consolidated |
|
|
|
|
|
Statements
of Income |
|
Six Months Ended June 30, |
|
|
|
|
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
Net
income attributable to Hyatt Hotels Corporation |
|
|
|
$ |
47 |
|
|
$ |
30 |
|
|
Earnings
per share |
|
|
|
$ |
0.28 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
Special Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairments (a) |
|
Asset impairments |
|
|
1 |
|
|
|
3 |
|
|
Unconsolidated hospitality
ventures
impairment (b)
|
|
Equity earnings (losses) from
unconsolidated hospitality ventures
|
|
|
-
|
|
|
|
9
|
|
|
Loss on sale of
real estate (c) |
|
Other income (loss), net
|
|
|
2 |
|
|
|
-
|
|
|
Marketable
securities (d) |
|
Other income (loss), net
|
|
|
7 |
|
|
|
(2 |
) |
|
Loss on
sublease agreement (e) |
|
Other income
(loss), net |
|
|
5 |
|
|
|
-
|
|
|
Total special
items - pre-tax |
|
|
|
|
15 |
|
|
|
10 |
|
|
(Provision) benefit for income taxes for special items |
|
(Provision) benefit for income taxes |
|
|
(5 |
) |
|
|
(3 |
) |
|
Discontinued operations, net of tax |
|
Gain
from discontinued operations, net |
|
|
-
|
|
|
|
(3 |
) |
|
Total
special items - after-tax |
|
|
|
|
10 |
|
|
|
4 |
|
|
Special
items impact per share |
|
|
|
$ |
0.05 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Hyatt Hotels Corporation, adjusted for special
items |
|
|
|
$ |
57 |
|
|
$ |
34 |
|
|
Earnings
per share, adjusted for special items |
|
|
|
$ |
0.33 |
|
|
$ |
0.18 |
|
|
|
|
(a) Asset impairments − During
the second quarters of 2011 and 2010, we identified and recorded $1
million and $3 million of asset impairment charges related to the
impairment of property and equipment at owned hotels, respectively.
|
(b) Unconsolidated hospitality
ventures impairment − During the second quarter of 2010, we recorded an
impairment charge of $9 million related to an investment in a vacation
ownership property.
|
(c) Loss on sale of real estate -
During the second quarter of 2011, we sold eight hotels from our owned
hotel portfolio for a loss of $2 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 June 30, 2011, we have tentatively agreed to a new sublease
agreement with a related party. The new sublease agreement contemplates
sublease income paid to Hyatt that represents market rates and is
approximately $5 million less than the rental payments that we are
required to make under the master lease.
|
|
Page 5
|
Hyatt Hotels Corporation |
Segment Financial Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
Change |
|
Change |
|
|
2011 |
|
2010 |
|
($) |
|
(%) |
|
2011 |
|
2010 |
|
($) |
|
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased
|
|
$ |
484 |
|
|
$ |
483 |
|
|
$ |
1 |
|
|
0.2 |
% |
|
$ |
916 |
|
|
$ |
934 |
|
|
$ |
(18 |
) |
|
(1.9 |
)% |
North America |
|
|
56 |
|
|
|
52 |
|
|
|
4 |
|
|
7.7 |
% |
|
|
107 |
|
|
|
97 |
|
|
|
10 |
|
|
10.3 |
% |
International |
|
|
39 |
|
|
|
34 |
|
|
|
5 |
|
|
14.7 |
% |
|
|
76 |
|
|
|
66 |
|
|
|
10 |
|
|
15.2 |
% |
Total management
and franchising |
|
|
95 |
|
|
|
86 |
|
|
|
9 |
|
|
10.5 |
% |
|
|
183 |
|
|
|
163 |
|
|
|
20 |
|
|
12.3 |
% |
Corporate and
other |
|
|
17 |
|
|
|
12 |
|
|
|
5 |
|
|
41.7 |
% |
|
|
31 |
|
|
|
23 |
|
|
|
8 |
|
|
34.8 |
% |
Other revenues
from managed properties |
|
|
360 |
|
|
|
330 |
|
|
|
30 |
|
|
9.1 |
% |
|
|
719 |
|
|
|
652 |
|
|
|
67 |
|
|
10.3 |
% |
Eliminations |
|
|
(20 |
) |
|
|
(22 |
) |
|
|
2 |
|
|
9.1 |
% |
|
|
(38 |
) |
|
|
(42 |
) |
|
|
4 |
|
|
9.5 |
% |
Total
revenues |
|
$ |
936 |
|
|
$ |
889 |
|
|
$ |
47 |
|
|
5.3 |
% |
|
$ |
1,811 |
|
|
$ |
1,730 |
|
|
$ |
81 |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased
|
|
$ |
92 |
|
|
$ |
85 |
|
|
$ |
7 |
|
|
8.2 |
% |
|
$ |
152 |
|
|
$ |
153 |
|
|
$ |
(1 |
) |
|
(0.7 |
)% |
Pro rata
share of unconsolidated hospitality ventures |
|
|
22 |
|
|
|
18 |
|
|
|
4 |
|
|
22.2 |
% |
|
|
37 |
|
|
|
32 |
|
|
|
5 |
|
|
15.6 |
% |
Total owned and
leased |
|
|
114 |
|
|
|
103 |
|
|
|
11 |
|
|
10.7 |
% |
|
|
189 |
|
|
|
185 |
|
|
|
4 |
|
|
2.2 |
% |
North American
management and franchising |
|
|
44 |
|
|
|
41 |
|
|
|
3 |
|
|
7.3 |
% |
|
|
84 |
|
|
|
72 |
|
|
|
12 |
|
|
16.7 |
% |
International
management and franchising |
|
|
22 |
|
|
|
18 |
|
|
|
4 |
|
|
22.2 |
% |
|
|
42 |
|
|
|
32 |
|
|
|
10 |
|
|
31.3 |
% |
Corporate and other |
|
|
(29 |
) |
|
|
(27 |
) |
|
|
(2 |
) |
|
(7.4 |
)% |
|
|
(55 |
) |
|
|
(42 |
) |
|
|
(13 |
) |
|
(31.0 |
)% |
Adjusted
EBITDA |
|
$ |
151 |
|
|
$ |
135 |
|
|
$ |
16 |
|
|
11.9 |
% |
|
$ |
260 |
|
|
$ |
247 |
|
|
$ |
13 |
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 6
|
Hyatt Hotels Corporation |
Hotel Chain Statistics |
Comparable Locations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
Change
|
|
Six Months Ended June 30, |
|
|
|
|
Change |
Owned and leased hotels (# hotels) (a) |
|
2011 |
|
2010 |
|
Change |
|
|
(in
constant $) |
|
2011 |
|
2010 |
|
Change |
|
|
(in
constant $) |
|
Full
service (39) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$ |
194.18 |
|
$ |
185.06 |
|
4.9% |
|
|
2.0% |
|
$ |
195.22 |
|
$ |
188.87 |
|
3.4% |
|
|
1.5% |
|
|
Occupancy |
|
|
73.4% |
|
|
73.2% |
|
0.2% |
|
pts |
|
|
|
69.0% |
|
|
69.3% |
|
(0.3%) |
|
pts |
|
|
|
RevPAR |
|
$ |
142.51 |
|
$ |
135.43 |
|
5.2% |
|
|
2.3% |
|
$ |
134.71 |
|
$ |
130.87 |
|
2.9% |
|
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service (46) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$ |
92.27 |
|
$ |
87.62 |
|
5.3% |
|
|
5.3% |
|
$ |
92.78 |
|
$ |
87.52 |
|
6.0% |
|
|
6.0% |
|
|
Occupancy |
|
|
81.4% |
|
|
78.3% |
|
3.1% |
|
pts |
|
|
|
76.3% |
|
|
73.5% |
|
2.8% |
|
pts |
|
|
|
RevPAR |
|
$ |
75.10 |
|
$ |
68.58 |
|
9.5% |
|
|
9.5% |
|
$ |
70.83 |
|
$ |
64.34 |
|
10.1% |
|
|
10.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotels (85) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$ |
167.18 |
|
$ |
159.89 |
|
4.6% |
|
|
2.0% |
|
$ |
168.13 |
|
$ |
162.84 |
|
3.2% |
|
|
1.6% |
|
|
Occupancy |
|
|
75.4% |
|
|
74.4% |
|
1.0% |
|
pts |
|
|
|
70.8% |
|
|
70.3% |
|
0.5% |
|
pts |
|
|
|
RevPAR |
|
$ |
125.97 |
|
$ |
119.01 |
|
5.9% |
|
|
3.3% |
|
$ |
119.04 |
|
$ |
114.52 |
|
3.9% |
|
|
2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed and franchise hotels (# hotels; includes owned & leased
hotels) |
|
North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service
(122) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$ |
163.14 |
|
$ |
159.20 |
|
2.5% |
|
|
2.2% |
|
$ |
163.43 |
|
$ |
158.35 |
|
3.2% |
|
|
3.0% |
|
|
Occupancy |
|
|
75.2% |
|
|
73.4% |
|
1.8% |
|
pts |
|
|
|
70.9% |
|
|
68.7% |
|
2.2% |
|
pts |
|
|
|
RevPAR |
|
$ |
122.67 |
|
$ |
116.79 |
|
5.0% |
|
|
4.7% |
|
$ |
115.87 |
|
$ |
108.85 |
|
6.4% |
|
|
6.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service (177) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$ |
96.05 |
|
$ |
93.03 |
|
3.2% |
|
|
3.2% |
|
$ |
96.91 |
|
$ |
93.67 |
|
3.5% |
|
|
3.5% |
|
|
Occupancy |
|
|
78.3% |
|
|
73.7% |
|
4.6% |
|
pts |
|
|
|
74.1% |
|
|
69.4% |
|
4.7% |
|
pts |
|
|
|
RevPAR |
|
$ |
75.17 |
|
$ |
68.59 |
|
9.6% |
|
|
9.6% |
|
$ |
71.86 |
|
$ |
65.01 |
|
10.5% |
|
|
10.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
comparable hotels (96) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$ |
235.68 |
|
$ |
213.91 |
|
10.2% |
|
|
2.7% |
|
$ |
231.57 |
|
$ |
212.43 |
|
9.0% |
|
|
3.3% |
|
|
Occupancy |
|
|
64.7% |
|
|
64.8% |
|
(0.1%) |
|
pts |
|
|
|
64.4% |
|
|
63.5% |
|
0.9% |
|
pts |
|
|
|
RevPAR |
|
$ |
152.46 |
|
$ |
138.67 |
|
9.9% |
|
|
2.5% |
|
$ |
149.06 |
|
$ |
134.91 |
|
10.5% |
|
|
4.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable systemwide hotels (395) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR |
|
$ |
167.19 |
|
$ |
159.82 |
|
4.6% |
|
|
1.9% |
|
$ |
167.32 |
|
$ |
159.69 |
|
4.8% |
|
|
2.7% |
|
|
Occupancy |
|
|
72.9% |
|
|
71.1% |
|
1.8% |
|
pts |
|
|
|
69.7% |
|
|
67.4% |
|
2.3% |
|
pts |
|
|
|
RevPAR |
|
$ |
121.83 |
|
$ |
113.59 |
|
7.3% |
|
|
4.5% |
|
$ |
116.64 |
|
$ |
107.66 |
|
8.3% |
|
|
6.2% |
(a) |
|
Owned and leased
hotel statistics do not include unconsolidated hospitality ventures. |
|
|
|
Page 7
|
Hyatt Hotels Corporation |
Fee
Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions) |
|
Three Months Ended June 30, |
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
2011 |
|
2010 |
|
Change ($) |
|
Change (%) |
|
2011 |
|
2010 |
|
Change ($) |
|
Change (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management
fees |
|
$ |
38 |
|
$ |
34 |
|
$ |
4 |
|
|
11.8 |
% |
|
$ |
73 |
|
$ |
64 |
|
$ |
9 |
|
|
14.1 |
% |
Incentive
management fees |
|
|
26 |
|
|
23 |
|
|
3 |
|
|
13.0 |
% |
|
|
52 |
|
|
43 |
|
|
9 |
|
|
20.9 |
% |
Franchise and other fees |
|
|
11 |
|
|
7 |
|
|
4 |
|
|
57.1 |
% |
|
|
20 |
|
|
14 |
|
|
6 |
|
|
42.9 |
% |
Total
fees |
|
$ |
75 |
|
$ |
64 |
|
$ |
11 |
|
|
17.2 |
% |
|
$ |
145 |
|
$ |
121 |
|
$ |
24 |
|
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, |
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
2011 |
|
2010 |
|
Change ($) |
|
Change
(%) |
|
2011 |
|
2010 |
|
Change ($) |
|
Change
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Selling, General, and
Administrative Expenses
|
$ |
70 |
|
$ |
64 |
|
$ |
6 |
|
9.4 % |
|
$ |
136 |
|
$ |
129 |
|
$ |
7 |
|
5.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rabbi Trust
impact |
|
1 |
|
|
(6) |
|
|
7 |
|
(116.7)% |
|
|
5 |
|
|
(2) |
|
|
7 |
|
(350.0)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General, and
Administrative Expenses
|
$ |
71 |
|
$ |
58 |
|
$ |
13 |
|
22.4 % |
|
$ |
141 |
|
$ |
127 |
|
$ |
14 |
|
11.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, |
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
Change |
|
Change |
|
|
2011 |
|
2010 |
|
($) |
|
(%) |
|
2011 |
|
2010 |
|
($) |
|
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned
and leased hotels |
|
$ |
466 |
|
$ |
437 |
|
$ |
29 |
|
6.6 % |
|
$ |
878 |
|
$ |
847 |
|
$ |
31 |
|
3.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncomparable
hotels |
|
|
18 |
|
|
46 |
|
|
(28) |
|
(60.9)% |
|
|
38 |
|
|
87 |
|
|
(49) |
|
(56.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
and Leased Hotels Revenue |
|
$ |
484 |
|
$ |
483 |
|
$ |
1 |
|
0.2 % |
|
$ |
916 |
|
$ |
934 |
|
$ |
(18) |
|
(1.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned
and leased hotels |
|
$ |
358 |
|
$ |
339 |
|
$ |
19 |
|
5.6 % |
|
$ |
692 |
|
$ |
666 |
|
$ |
26 |
|
3.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncomparable
hotels |
|
|
14 |
|
|
38 |
|
|
(24) |
|
(63.2)% |
|
|
32 |
|
|
74 |
|
|
(42) |
|
(56.8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rabbi Trust |
|
|
-
|
|
|
(3)
|
|
|
3 |
|
(100.0)% |
|
|
2 |
|
|
(2) |
|
|
4 |
|
(200.0)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
and Leased Hotels Expense |
|
$ |
372 |
|
$ |
374 |
|
$ |
(2) |
|
(0.5)% |
|
$ |
726 |
|
$ |
738 |
|
$ |
(12) |
|
(1.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased hotel operating
margin percentage
|
|
|
23.1% |
|
|
22.6% |
|
|
|
0.5 % |
|
|
20.7% |
|
|
21.0% |
|
|
|
(0.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotel operating margin percentage |
|
|
23.2% |
|
|
22.4% |
|
|
|
0.8 % |
|
|
21.2% |
|
|
21.4% |
|
|
|
(0.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 10
|
Hyatt Hotels Corporation
|
Properties and Rooms/Units by
Geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2011 |
|
March 31, 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 |
|
41 |
|
18,884 |
|
41 |
|
18,914 |
|
42 |
|
19,447 |
|
-
|
|
|
(30
|
) |
|
(1 |
) |
|
(563 |
) |
Select
service |
|
49 |
|
6,525 |
|
54 |
|
7,041 |
|
54 |
|
7,041 |
|
(5 |
) |
|
(516 |
) |
|
(5 |
) |
|
(516 |
) |
Total owned and leased hotels
|
|
90 |
|
25,409 |
|
95 |
|
25,955 |
|
96 |
|
26,488 |
|
(5 |
) |
|
(546 |
) |
|
(6 |
) |
|
(1,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed and franchised hotels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(includes owned and leased
hotels)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
June 30, 2011 |
|
March 31, 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) |
|
114 |
|
59,995 |
|
114 |
|
60,021 |
|
114 |
|
60,016 |
|
-
|
|
|
(26
|
) |
|
-
|
|
|
(21
|
) |
Franchised |
|
17 |
|
5,222 |
|
17 |
|
5,216 |
|
16 |
|
4,767 |
|
-
|
|
|
6
|
|
|
1 |
|
|
455 |
|
Subtotal |
|
131 |
|
65,217 |
|
131 |
|
65,237 |
|
130 |
|
64,783 |
|
-
|
|
|
(20
|
) |
|
1 |
|
|
434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service
hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed |
|
76 |
|
10,006 |
|
81 |
|
10,522 |
|
81 |
|
10,522 |
|
(5 |
) |
|
(516 |
) |
|
(5 |
) |
|
(516 |
) |
Franchised |
|
123 |
|
15,675 |
|
115 |
|
14,589 |
|
114 |
|
14,494 |
|
8 |
|
|
1,086 |
|
|
9 |
|
|
1,181 |
|
Subtotal |
|
199 |
|
25,681 |
|
196 |
|
25,111 |
|
195 |
|
25,016 |
|
3 |
|
|
570 |
|
|
4 |
|
|
665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed (a) |
|
101 |
|
33,395 |
|
99 |
|
33,116 |
|
102 |
|
34,519 |
|
2 |
|
|
279 |
|
|
(1 |
) |
|
(1,124 |
) |
Franchised |
|
2 |
|
988 |
|
2 |
|
988 |
|
2 |
|
988 |
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Subtotal
|
|
103 |
|
34,383 |
|
101 |
|
34,104 |
|
104 |
|
35,507 |
|
2 |
|
|
279 |
|
|
(1 |
) |
|
(1,124 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total managed & franchised
hotels
|
|
433 |
|
125,281 |
|
428 |
|
124,452 |
|
429 |
|
125,306 |
|
5 |
|
|
829 |
|
|
4 |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
456 |
|
127,474 |
|
451 |
|
126,645 |
|
453 |
|
127,507 |
|
5 |
|
|
829 |
|
|
3 |
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 &
franchised hotels
|
|
June 30, 2011
|
|
March 31, 2011 |
|
December 31, 2010 |
|
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 |
|
20,204 |
|
50 |
|
19,961 |
|
51 |
|
20,364 |
|
1 |
|
|
243 |
|
|
-
|
|
|
(160
|
) |
Southwest Asia |
|
14 |
|
4,480 |
|
13 |
|
4,430 |
|
13 |
|
4,430 |
|
1 |
|
|
50 |
|
|
1 |
|
|
50 |
|
Europe, Africa, Middle East
|
|
31 |
|
7,781 |
|
31 |
|
7,795 |
|
33 |
|
8,795 |
|
-
|
|
|
(14
|
) |
|
(2 |
) |
|
(1,014 |
) |
Other
Americas |
|
7 |
|
1,918 |
|
7 |
|
1,918 |
|
7 |
|
1,918 |
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International |
|
103 |
|
34,383 |
|
101 |
|
34,104 |
|
104 |
|
35,507 |
|
2 |
|
|
279 |
|
|
(1 |
) |
|
(1,124 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 11
|
Hyatt Hotels Corporation |
Properties and Rooms / Units by Brand |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, 2011 |
|
March 31, 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 |
|
27 |
|
5,313 |
|
25 |
|
5,024 |
|
25 |
|
5,049 |
|
2 |
|
289 |
|
|
2 |
|
|
264 |
|
Andaz |
|
5 |
|
1,101 |
|
5 |
|
1,101 |
|
5 |
|
1,096 |
|
- |
|
- |
|
|
- |
|
|
5 |
|
Grand Hyatt |
|
36 |
|
20,798 |
|
36 |
|
20,825 |
|
37 |
|
21,568 |
|
- |
|
(27 |
) |
|
(1 |
) |
|
(770 |
) |
Hyatt Regency |
|
145 |
|
66,926 |
|
145 |
|
66,935 |
|
146 |
|
67,115 |
|
- |
|
(9 |
) |
|
(1 |
) |
|
(189 |
) |
Hyatt |
|
21 |
|
5,462 |
|
21 |
|
5,456 |
|
21 |
|
5,462 |
|
- |
|
6 |
|
|
- |
|
|
- |
|
Hyatt Place |
|
161 |
|
20,432 |
|
161 |
|
20,432 |
|
161 |
|
20,434 |
|
- |
|
- |
|
|
- |
|
|
(2 |
) |
Hyatt
Summerfield Suites |
|
38 |
|
5,249 |
|
35 |
|
4,679 |
|
34 |
|
4,582 |
|
3 |
|
570 |
|
|
4 |
|
|
667 |
|
Vacation Ownership &
Residential
|
|
23 |
|
2,193 |
|
23 |
|
2,193 |
|
24 |
|
2,201 |
|
-
|
|
- |
|
|
(1 |
) |
|
(8 |
) |
Total |
|
456 |
|
127,474 |
|
451 |
|
126,645 |
|
453 |
|
127,507 |
|
5 |
|
829 |
|
|
3 |
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|