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 |
|