Hyatt Reports Q1 Loss of $103M
Hyatt reported first-quarter 2020 financial results this week. The hotel chain had a net loss of $103 million, or $1.02 per diluted share, in the first quarter of 2020, compared to net income attributable to Hyatt of $63 million, or $0.59 per diluted share, in the first quarter of 2019.
Hyatt posted revenues of $993 million for the quarter ended March 2020. That is a 20% decline compared to year-ago revenues of $1.24 billion. The first quarter was not fully under the devastating effect of the coronavirus. Travel started seeing a big decline onlu in March.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, “As COVID-19 became a global pandemic, we took prompt and meaningful actions to manage the first phase of the impact of the virus. We obtained substantial additional cash, reduced investment and corporate spending to preserve cash, and we reduced third party hotel owners’ direct costs through this period. While we continue to operate in an environment of suppressed demand and great uncertainty, we believe our existing liquidity provides sufficient capacity to cover at least 30 months of operations under current conditions.”
Other Q1 2020 Financial Highlights vs Q1 2019
- Net income (loss) decreased 262.8% to a net loss of $103 million.
- Adjusted EBITDA decreased 54.3% to $86 million, a decrease of 53.9% in constant currency.
- Comparable system-wide RevPAR decreased 28.1%, including a decrease of 25.8% at comparable owned and leased hotels.
- Comparable U.S. hotel RevPAR decreased 24.5%; full service hotel RevPAR decreased 25.2% and select service hotel RevPAR decreased 23.0%.
- Net rooms growth was 6.3% in the first quarter of 2020.
- Comparable owned and leased hotels operating margin decreased 1,060 basis points to 14.5%.
- Adjusted EBITDA margin of 18.3% decreased 1,010 basis points in constant currency.
35% of Hotels Closed
Hyatt reported gradual improvement over the past few weeks in Greater China, with occupancy approaching 25% at the end of April. Other parts of the world remain under quarantines and travel restrictions, which have resulted in significant declines in occupancy with uncertainty surrounding near-term improvement. System-wide occupancy rates as of April 30, 2020 are averaging approximately 15% for hotels that remain operational.
As of April 30, 2020, operations were suspended at approximately 35% of Hyatt properties. Operations were suspended at 62% of full service hotels and 19% of the select service hotels in the Americas, at 17% of hotels in the ASPAC region, and at 58% of hotels in the EAME/SW Asia region.
You can read the full report here.
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