HYATT HOTELS CORP. reported $26 million in net income for the fourth quarter of 2023 and $220 million for the year. Comparable system-wide RevPAR grew by 9.1 percent during the same period and 17 percent for the full year of 2023, outperforming figures from 2022 and exceeding the previous full-year outlook.
Adjusted net income reached $68 million in Q4 and $276 million for full-year 2023, Hyatt said in a statement.
“The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution,” said Mark Hoplamazian, Hyatt’s president and CEO. “RevPAR growth exceeded the high end of our guidance range and we had industry-leading net rooms growth for the seventh consecutive year. This led to a record level of fees and the highest free cash flow in Hyatt’s history. We returned $500 million to our shareholders and achieved an asset-light earnings mix of approximately 76 percent for the full year, a testament to the successful execution of our strategy.”
Growth factors
Hyatt said that the fourth quarter results were propelled by group demand recovery and increased rate growth across both group and transient customers, leading to robust RevPAR growth compared to the fourth quarter of 2022.
In the fourth quarter of 2023, a record $256 million in management, franchise, license and other fees were generated, propelled by robust global travel demand and net rooms growth, the statement said. The pipeline of executed management or franchise contracts encompassed approximately 127,000 rooms.
Comparable owned and leased hotels' operating margin expanded by 240 basis points compared to the fourth quarter of 2019 and by 310 basis points compared to the full year of 2019. In the quarter, total fees increased by 6 percent compared to the fourth quarter of 2022, with U.S. RevPAR up 3 percent over the same period driven by strong group rates.
29 new hotels opened
Hyatt added approximately 29 new hotels (9,648 rooms) to its global portfolio in the fourth quarter, with a total of 101 new hotels (23,965 rooms) joining throughout the year, including 43 hotels (13,223 rooms) that converted to a Hyatt brand.
Net rooms growth for Hyatt reached 5.9 percent for the full year of 2023, aligning with the annual outlook, the statement said. As of Dec. 31, the company's pipeline encompassed around 650 hotels (approximately 127,000 rooms), featuring 17 Hyatt Studios hotels (around 2,000 rooms).
In the fourth quarter, developers broke ground on the first Hyatt Studios hotel in Mobile, Alabama.
2024 outlook
Hyatt anticipates a systemwide RevPAR growth between 3 and 5 percent in 2024, the statement said. Moreover, net rooms growth is forecasted to range between 5.5 percent and 6 percent for the year, with expected revenue of approximately $560 million and adjusted EBITDA projected to fall between $1.175 billion and $1.225 billion.
Hyatt also noted that the group booking pace for Americas full-service managed properties is up 8 percent for the full year of 2024 compared to 2023.
IHG Hotels & Resorts recently announced plans to return over $1 billion in 2024 through dividends and share buybacks, fueled by a 23 percent profit growth from reportable segments, surpassing $1 billion for the first time.
