Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today
reported first quarter 2013 financial results as follows:
-
Adjusted EBITDA was $131 million in the first quarter of 2013 compared
to $125 million in the first quarter of 2012, an increase of 4.8%.
-
Adjusted for special items, net income attributable to Hyatt was $14
million, or $0.09 per share, during the first quarter of 2013 compared
to net income attributable to Hyatt of $5 million, or $0.03 per share,
during the first quarter of 2012.
-
Net income attributable to Hyatt was $8 million, or $0.05 per share,
during the first quarter of 2013 compared to net income attributable
to Hyatt of $10 million, or $0.06 per share, in the first quarter of
2012.
-
Comparable owned and leased hotel RevPAR increased 4.5% (4.4%
excluding the effect of currency) in the first quarter of 2013
compared to the first quarter of 2012.
-
Owned and leased hotel operating margins increased 20 basis points in
the first quarter of 2013 compared to the first quarter of 2012.
Comparable owned and leased hotel operating margins were flat in the
first quarter of 2013 compared to the first quarter of 2012.
-
Comparable systemwide RevPAR increased 2.4% (3.2% excluding the effect
of currency) in the first quarter of 2013 compared to the first
quarter of 2012.
-
Comparable U.S. full service hotel RevPAR increased 2.7% in the first
quarter of 2013 compared to the first quarter of 2012. Comparable U.S.
select service hotel RevPAR increased 6.4% in the first quarter of
2013 compared to the first quarter of 2012.
-
Eight properties were opened. As of March 31, 2013, the Company's
executed contract base consisted of approximately 200 hotels or 45,000
rooms.
-
The Company repurchased 664,951 shares of Class A common stock at a
weighted average price of $41.32 per share, for an aggregate purchase
price of approximately $27 million.
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On April 30, 2013, the Company's Board of Directors authorized the
repurchase of up to an additional $200 million of common stock.
Mark S. Hoplamazian, president and chief executive officer of Hyatt
Hotels Corporation, said, "Our first quarter of 2013 reflected continued
improvement in average daily rates with comparable owned and leased
average daily rate increasing 4% excluding the impact of currency. We
continued to see strength in transient demand, however group demand
declined, in part due to the timing of Easter as compared to the prior
year.
"Our global realignment has been completed and we are seeing the
benefits of increased adaptability and innovation. We are operating
under a structure that is able to be leveraged as we continue to expand.
We believe that our current run-rate in SG&A is at a normalized level
and we continue to maintain discipline on expense growth.
"We continue to execute on our strategy of expanding in new and
attractive markets, with hotels opening in the United States, South
Korea, China and India. We increased our presence in India and France
with announced conversions of five existing hotels in India and four
iconic hotels in France. We also acquired a historic landmark property,
The Driskill, located in Austin, Texas. We remain active in our asset
recycling program and seek opportunities to grow our portfolio of
hotels. Our executed contract base, as a percentage of our existing
portfolio, is the largest among our peers which indicates strong demand
for our brands around the world.
"Looking ahead, we continue to focus on improving performance at
existing hotels and expanding in new and attractive markets. Owned
hotels that have recently undergone renovations are performing well,
particularly in New York and San Francisco. As the year progresses, we
expect margins to improve as we benefit from increases in average daily
rate.
"Finally, we continue to create long-term value for our stockholders by
investing in growth for our business while at the same time returning
capital to our stockholders. In the first quarter, we repurchased
approximately $27 million of common stock and are pleased to announce
that our Board of Directors has authorized the repurchase of up to an
additional $200 million of common stock."
SEGMENT RESULTS & OTHER ITEMS
Owned and Leased Hotels Segment
Total segment Adjusted EBITDA increased 2.2% in the first quarter of
2013 compared to the same period in 2012. Owned and leased Adjusted
EBITDA increased 5.3% in first quarter of 2013 compared to the same
period in 2012. Pro rata share of unconsolidated hospitality ventures
Adjusted EBITDA decreased 11.1% in the first quarter of 2013 compared to
the same period in 2012. The decrease was primarily due to asset sales
and weaker performance in certain international markets.
RevPAR for comparable owned and leased hotels increased 4.5% (4.4%
excluding the effect of currency) in the first quarter of 2013 compared
to the same period in 2012. Occupancy improved 20 basis points and ADR
increased 4.1% (4.0% excluding the effect of currency) compared to the
same period in 2012.
Revenue increased 4.0% in the first quarter of 2013 compared to the same
period in 2012. Comparable hotel revenue increased 1.7% in the first
quarter of 2013 compared to the same period in 2012.
Revenue for comparable owned and leased hotels was negatively impacted
by a decline in group room revenue and lower banquet revenue.
Owned and leased hotel expenses increased 3.7% in the first quarter of
2013 compared to the same period in 2012. Excluding expenses related to
benefit programs funded through Rabbi Trusts and non-comparable hotel
expenses, expenses increased 1.6% in the first quarter of 2013 compared
to the same period in 2012. 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 hotel was added to the portfolio during the first quarter:
-
The Driskill (owned, 189 rooms)
Americas Management and Franchising Segment
Adjusted EBITDA increased 4.3% in the first quarter of 2013 compared to
the same period in 2012.
RevPAR for comparable Americas full service hotels increased 2.6% (2.8%
excluding the effect of currency) in the first quarter of 2013 compared
to the same period in 2012. Occupancy decreased 70 basis points and ADR
increased 3.6% (3.8% excluding the effect of currency) compared to the
same period in 2012. RevPAR was negatively impacted by renovations at
certain managed hotels and the timing of Easter.
Group rooms revenue at comparable U.S. full service hotels decreased
5.8% in the first quarter of 2013 compared to the same period in 2012.
Group room nights decreased 7.4% and group ADR increased 1.7% in the
first quarter of 2013 compared to the same period in 2012.
Transient rooms revenue at comparable U.S. full service hotels increased
8.0% in the first quarter of 2013 compared to the same period in 2012.
Transient room nights increased 3.7% and transient ADR increased 4.1% in
the first quarter of 2013 compared to the same period in 2012.
RevPAR for comparable Americas select service hotels increased 6.4%
(6.4% excluding the effect of currency) in the first quarter of 2013
compared to the same period in 2012. Occupancy increased 170 basis
points and ADR increased 3.9% (3.9% excluding the effect of currency)
compared to the same period in 2012.
Revenue from management and franchise fees was flat in the first quarter
of 2013 compared to the same period in 2012. Fees were negatively
impacted by the previously mentioned renovations at certain managed
hotels, contract change or termination fees received in the prior period
and fewer managed hotels in the first quarter of 2013 compared to the
same period in 2012.
The following four hotels were added to the portfolio during the first
quarter:
-
The Driskill (owned, 189 rooms)
-
Hyatt Place Corpus Christi (franchised, 103 rooms)
-
Hyatt Place Austin Downtown (franchised, 296 rooms)
-
Hyatt Place New York/Midtown-South (franchised, 185 rooms)
Southeast Asia, China, Australia, South Korea and Japan (ASPAC)
Management and Franchising Segment
Adjusted EBITDA decreased 18.2% in the first quarter of 2013 compared to
the same period in 2012.
RevPAR for comparable ASPAC hotels decreased 2.6% (0.4% excluding the
effect of currency) in the first quarter of 2013 compared to the same
period in 2012. Occupancy increased 70 basis points and ADR decreased
3.6% (1.4% excluding the effect of currency) compared to the same period
in 2012. RevPAR was negatively impacted by renovations at several hotels.
Revenue from management and franchise fees decreased 13.6% in the first
quarter of 2013 compared to the same period in 2012. Fees were
negatively impacted by a contract termination fee received in the prior
period and the previously mentioned renovations.
The following two hotels were added to the portfolio during the first
quarter:
-
Park Hyatt Busan, South Korea (managed, 269 rooms)
-
Hyatt Regency Qingdao, China (managed, 439 rooms)
Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia)
Management Segment
Adjusted EBITDA increased 33.3% in the first quarter of 2013 compared to
the same period in 2012.
RevPAR for comparable EAME/SW Asia hotels increased 4.6% (6.2% excluding
the effect of currency) in the first quarter of 2013 compared to the
same period in 2012. Occupancy increased 440 basis points and ADR
decreased 2.5% (1.0% excluding the effect of currency) compared to the
same period in 2012.
Revenue from management and franchise fees was flat in the first quarter
of 2013 compared to the same period in 2012.
The following two hotels were added to the portfolio during the first
quarter:
-
Hyatt Amritsar, India (managed, 248 rooms)
-
Hyatt Ahmedabad, India (managed, 178 rooms)
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses decreased by 9.7% in the
first quarter of 2013 compared to the same period in 2012. Adjusted
selling, general, and administrative expenses decreased by 7.2% in the
first quarter of 2013 compared to the same period in 2012. 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
Eight hotels were added in the first quarter of 2013, each of which is
listed above.
The Company expects that a significant number of new properties will be
opened under various Company brands in the future. As of March 31, 2013
this effort was underscored by executed management or franchise
contracts for approximately 200 hotels (or approximately 45,000 rooms)
across all brands. The executed contracts represent potential entry into
several new countries and expansion into new markets or markets in which
the Company is under-represented.
CAPITAL EXPENDITURES
Capital expenditures during the first quarter of 2013 totaled $43
million, categorized as follows:
-
Maintenance: $14 million
-
Enhancements to existing properties: $20 million
-
Investment in new properties: $9 million
SHARE REPURCHASE
During the first quarter of 2013, the Company repurchased 664,951 shares
of Class A common stock at a weighted average price of $41.32 per share,
for an aggregate purchase price of approximately $27 million. From April
1 through April 26, 2013, the Company repurchased 372,764 shares of
Class A common stock at a weighted average price of $41.78 per share,
for an aggregate purchase price of approximately $16 million, and had
approximately $21 million remaining under its repurchase authorization
as of April 26, 2013. On April 30, 2013, the Company's Board of
Directors authorized the repurchase of up to an additional $200 million
of the Company's common stock. These repurchases may be made from time
to time in the open market, in privately negotiated transactions, or
otherwise, including pursuant to a Rule 10b5-1 plan, at prices that the
Company deems appropriate and subject to market conditions, applicable
law and other factors deemed relevant in the Company's sole discretion.
The Company is not obligated to repurchase any dollar amount or any
number of shares of common stock, and repurchases may be suspended or
discontinued at any time. The Company intends to pay for shares
repurchased with cash from its balance sheet.
CORPORATE FINANCE
During the quarter, the Company completed the following transactions:
-
Acquired The Driskill in Austin, Texas for approximately $85 million.
-
Sold three select service hotels, with an aggregate of 426 rooms, for
approximately $36 million.
-
Sold its interest in a joint venture for a nominal amount. The joint
venture owned one ASPAC hotel which the Company continues to manage
under a long-term agreement. As a result of this sale, the Company's
pro rata share of unconsolidated hospitality venture debt was reduced
by approximately $23 million.
-
Entered into long-term management agreements for four hotels in
France. In conjunction with the agreements, the Company entered into a
seven year performance guarantee.
Subsequent to the end of the quarter, the Company:
-
Announced that it will redeem its outstanding 5.750% Senior Notes due
2015, of which an aggregate principal amount of $250 million is
currently outstanding, on May 10, 2013. In accordance with the terms
of the Notes, the redemption price is expected to be approximately
$281 million.
-
Commenced a cash tender offer to purchase any and all of its $250
million outstanding aggregate principal amount of 6.875% Senior Notes
due 2019.
On March 31, 2013, the Company had total debt of approximately $1.2
billion.
On March 31, 2013, the Company had cash and cash equivalents, including
investments in highly-rated money market funds and similar investments,
of approximately $330 million and short-term investments of
approximately $457 million.
On March 31, 2013, the Company had undrawn borrowing availability of
approximately $1.4 billion under its revolving credit facility.
2013 INFORMATION
The Company is providing the following information for the 2013 fiscal
year:
-
Adjusted SG&A expense is expected to be approximately $305 million.
-
Capital expenditures are expected to be approximately $275 million,
including approximately $100 million for investment in new properties,
such as Grand Hyatt Rio de Janeiro, Hyatt Place Omaha and other
properties.
-
In addition to the capital expenditures described above, investment
spending is expected to be approximately $100 to $120 million.
Investment spending includes new equity investments in joint ventures,
debt investments, contract acquisition costs, or other investments.
-
Depreciation and amortization expense is expected to be approximately
$340 million.
-
Interest expense is expected to be approximately $70 million
(excluding any impact from the previously mentioned 2015 Senior Notes
redemption and 2019 Senior Notes tender offer, as these have not been
completed).
-
Expects to open over 35 hotels in 2013.
CONFERENCE CALL INFORMATION
The Company will hold an investor conference call today, May 1, 2013, at
10:30 a.m. CT. The Company requests that questions be submitted via
email to earnings@hyatt.com by
9:00 a.m. CT. Hyatt management will read and respond to as many
submitted questions as possible. 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 857.244.7307, passcode #84546251, 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
May 1, 2013 through midnight on May 8, 2013 by dialing 617.801.6888,
passcode #65897105. 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 losses from unconsolidated hospitality ventures;
-
asset impairments;
-
other income, net;
-
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 selected compensation
decisions.
Adjusted EBITDA is not a substitute for net income attributable to Hyatt
Hotels Corporation, net income, 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 non-comparable 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 non-comparable 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 Americas full service or select service hotels for those
properties that we manage or franchise within the Americas management
and franchising segment, comparable systemwide ASPAC full service hotels
for those properties that we manage or franchise within the ASPAC
management and franchising segment, or comparable systemwide EAME/SW
Asia full service hotels for those properties that we manage within the
EAME/SW Asia management segment. 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 predominantly by changes in occupancy
have different implications for overall revenue levels and incremental
profitability than do changes that are driven predominantly 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 the brands Hyatt Place and Hyatt House.
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, margin trends, the number of properties we expect
to open in the future, our expected adjusted SG&A expense, capital
expenditures, depreciation and amortization expense and interest expense
estimates, financial performance, expected funding under performance
guarantees, 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; limited visibility with respect to
short and medium-term group bookings; our ability to successfully
achieve certain levels of operating profit at hotels that have
performance guarantees with our third-party owners; the impact of hotel
renovations; our ability to successfully execute and implement our
organizational realignment; our ability to successfully execute our
common stock repurchase program; loss of key personnel, including as a
result of our organizational realignment; 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; foreign exchange rate
fluctuations or currency restructurings; 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, 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 House® 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 Residence ClubTM. As of
March 31, 2013, the Company's worldwide portfolio consisted of 508
properties in 46 countries. For more information, please visit www.hyatt.com.
Tables to follow
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Hyatt Hotels Corporation
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Table of Contents
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Financial Information (unaudited)
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1.
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Condensed Consolidated Statements of Income
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2.
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Reconciliation of Non-GAAP to GAAP Measure: Adjusted EBITDA to
EBITDA and a Reconciliation of EBITDA to Net Income Attributable
to Hyatt Hotels Corporation
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3.
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Reconciliation of Non-GAAP to GAAP Measure: Summary of Special Items
- Three Months Ended March 31, 2013 and 2012
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4.
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Segment Financial Summary
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5.
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Hotel Chain Statistics - Comparable Locations
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6.
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Hotel Brand Statistics - Comparable Locations
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7.
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Fee Summary
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8.
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Reconciliation of Non-GAAP to GAAP Measure: Adjusted Selling,
General, and Administrative Expenses to Selling, General, and
Administrative Expenses
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9.
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Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and
Leased Hotel Operating Margin to Owned and Leased Hotel Operating
Margin
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10.
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Net Gains and Interest Income from Marketable Securities Held to
Fund Operating Programs
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11.
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Properties and Rooms / Units by Geography
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12.
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Properties and Rooms / Units by Brand
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Page 1
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Hyatt Hotels Corporation
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Condensed Consolidated Statements of Income
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For the Three Months Ended March 31, 2013 and 2012
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(in millions, except per share amounts)
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(unaudited)
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Three Months Ended
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March 31,
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2013
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2012
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REVENUES:
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Owned and leased hotels
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$
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492
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$
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473
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Management and franchise fees
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75
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79
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Other revenues
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20
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17
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Other revenues from managed properties (a)
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388
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389
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Total revenues
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975
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958
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DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
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Owned and leased hotels
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391
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377
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Depreciation and amortization
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88
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86
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Other direct costs
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7
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6
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Selling, general, and administrative
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84
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93
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Other costs from managed properties (a)
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388
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389
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Direct and selling, general, and administrative expenses
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958
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951
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Net gains and interest income from marketable securities held to
fund operating programs
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10
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|
|
14
|
|
|
Equity losses from unconsolidated hospitality ventures
|
|
|
(1
|
)
|
|
(1
|
)
|
|
Interest expense
|
|
|
(17
|
)
|
|
(18
|
)
|
|
Asset impairments
|
|
|
(8
|
)
|
|
—
|
|
|
Other income, net
|
|
|
2
|
|
|
12
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
3
|
|
|
14
|
|
|
(PROVISION) BENEFIT FOR INCOME TAXES
|
|
|
5
|
|
|
(4
|
)
|
|
NET INCOME
|
|
|
8
|
|
|
10
|
|
|
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
|
—
|
|
|
—
|
|
|
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
|
|
|
$
|
8
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - Basic
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.05
|
|
|
$
|
0.06
|
|
|
Net income attributable to Hyatt Hotels Corporation
|
|
|
$
|
0.05
|
|
|
$
|
0.06
|
|
|
EARNINGS PER SHARE - Diluted
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.05
|
|
|
$
|
0.06
|
|
|
Net income attributable to Hyatt Hotels Corporation
|
|
|
$
|
0.05
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
Basic share counts
|
|
|
161.9
|
|
|
165.5
|
|
|
Diluted share counts
|
|
|
162.5
|
|
|
166.0
|
|
(a) The Company includes in total revenues the reimbursement of costs
incurred on behalf of managed hotel property owners 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
|
|
|
|
March 31,
|
|
|
|
2013
|
|
2012
|
|
Adjusted EBITDA
|
|
$
|
131
|
|
|
$
|
125
|
|
|
Equity losses from unconsolidated hospitality ventures
|
|
(1
|
)
|
|
(1
|
)
|
|
Asset impairments
|
|
(8
|
)
|
|
—
|
|
|
Other income, net
|
|
2
|
|
|
12
|
|
|
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
|
(16
|
)
|
|
(18
|
)
|
|
EBITDA
|
|
$
|
108
|
|
|
$
|
118
|
|
|
Depreciation and amortization
|
|
(88
|
)
|
|
(86
|
)
|
|
Interest expense
|
|
(17
|
)
|
|
(18
|
)
|
|
(Provision) benefit for income taxes
|
|
5
|
|
|
(4
|
)
|
|
Net income attributable to Hyatt Hotels Corporation
|
|
$
|
8
|
|
|
$
|
10
|
|
|
|
|
Page 3
|
|
Hyatt Hotels Corporation
|
|
Reconciliation of Non-GAAP to GAAP Measure: Summary of Special Items
- Three Months Ended March 31, 2013 and 2012
|
|
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 March 31, 2013 and March 31,
2012, respectively.
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Location on Condensed Consolidated
|
|
Three Months Ended
|
|
|
|
Statements of Income
|
|
March 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
Net income attributable to Hyatt Hotels Corporation
|
|
|
|
$
|
8
|
|
|
$
|
10
|
|
|
Earnings per share
|
|
|
|
$
|
0.05
|
|
|
$
|
0.06
|
|
|
Special items
|
|
|
|
|
|
|
|
Asset impairments (a)
|
|
Asset impairments
|
|
8
|
|
|
—
|
|
|
Foreign currency translation loss on sale of joint venture (b)
|
|
Equity losses from unconsolidated hospitality ventures
|
|
2
|
|
|
—
|
|
|
Marketable securities (c)
|
|
Other income, net
|
|
—
|
|
|
(8
|
)
|
|
Total special items - pre-tax
|
|
|
|
10
|
|
|
(8
|
)
|
|
Income tax (provision) benefit for special items
|
|
(Provision) benefit for income taxes
|
|
(4
|
)
|
|
3
|
|
|
Total special items - after-tax
|
|
|
|
6
|
|
|
(5
|
)
|
|
Special items impact per share
|
|
|
|
$
|
0.04
|
|
|
$
|
(0.03
|
)
|
|
Net income attributable to Hyatt Hotels Corporation, adjusted for
special items
|
|
|
|
$
|
14
|
|
|
$
|
5
|
|
|
Earnings per share, adjusted for special items
|
|
|
|
$
|
0.09
|
|
|
$
|
0.03
|
|
|
(a) Asset impairments - In conjunction with our regular assessment
of impairment indicators, we identified property and equipment
whose carrying value exceeded its fair value and as a result
recorded an $8 million impairment charge to asset impairments in
the condensed consolidated statements of income in the three
months ended March 31, 2013.
|
|
(b) Foreign currency translation loss on sale of joint venture -
During the three months ended March 31, 2013, we had a foreign
currency translation loss of $2 million as a result of the sale of
our interest in a foreign joint venture.
|
|
(c) Marketable securities - Represents gains on investments in
trading securities not used to fund operating programs.
|
|
|
|
|
|
|
|
|
|
Page 4
|
|
Hyatt Hotels Corporation
|
|
Segment Financial Summary
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Owned and leased
|
|
$
|
492
|
|
|
$
|
473
|
|
|
$
|
19
|
|
|
4.0
|
%
|
|
Americas
|
|
64
|
|
|
64
|
|
|
—
|
|
|
—
|
%
|
|
ASPAC
|
|
19
|
|
|
22
|
|
|
(3
|
)
|
|
(13.6
|
)%
|
|
EAME/SW Asia
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
%
|
|
Total management and franchising
|
|
98
|
|
|
101
|
|
|
(3
|
)
|
|
(3.0
|
)%
|
|
Corporate and other
|
|
20
|
|
|
17
|
|
|
3
|
|
|
17.6
|
%
|
|
Other revenues from managed properties
|
|
388
|
|
|
389
|
|
|
(1
|
)
|
|
(0.3
|
)%
|
|
Eliminations
|
|
(23
|
)
|
|
(22
|
)
|
|
(1
|
)
|
|
(4.5
|
)%
|
|
Total revenues
|
|
$
|
975
|
|
|
$
|
958
|
|
|
$
|
17
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Owned and leased
|
|
$
|
79
|
|
|
$
|
75
|
|
|
$
|
4
|
|
|
5.3
|
%
|
|
Pro rata share of unconsolidated hospitality ventures
|
|
16
|
|
|
18
|
|
|
(2
|
)
|
|
(11.1
|
)%
|
|
Total owned and leased
|
|
95
|
|
|
93
|
|
|
2
|
|
|
2.2
|
%
|
|
Americas management and franchising
|
|
48
|
|
|
46
|
|
|
2
|
|
|
4.3
|
%
|
|
ASPAC management and franchising
|
|
9
|
|
|
11
|
|
|
(2
|
)
|
|
(18.2
|
)%
|
|
EAME/SW Asia management
|
|
8
|
|
|
6
|
|
|
2
|
|
|
33.3
|
%
|
|
Corporate and other
|
|
(29
|
)
|
|
(31
|
)
|
|
2
|
|
|
6.5
|
%
|
|
Adjusted EBITDA
|
|
$
|
131
|
|
|
$
|
125
|
|
|
$
|
6
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Page 5
|
|
Hyatt Hotels Corporation
|
|
Hotel Chain Statistics
|
|
Comparable Locations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change (in
|
|
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
constant $)
|
|
Owned and leased hotels (# hotels) (a)
|
|
|
Full service (44)
|
|
|
|
ADR
|
|
$
|
208.81
|
|
|
$
|
200.47
|
|
|
4.2
|
%
|
|
4.1
|
%
|
|
|
|
Occupancy
|
|
70.1
|
%
|
|
70.2
|
%
|
|
(0.1
|
)%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
146.38
|
|
|
$
|
140.77
|
|
|
4.0
|
%
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service (53)
|
|
|
|
ADR
|
|
$
|
108.70
|
|
|
$
|
103.58
|
|
|
4.9
|
%
|
|
4.9
|
%
|
|
|
|
Occupancy
|
|
73.1
|
%
|
|
71.8
|
%
|
|
1.3
|
%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
79.45
|
|
|
$
|
74.36
|
|
|
6.8
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotels (97)
|
|
|
|
ADR
|
|
$
|
179.77
|
|
|
$
|
172.76
|
|
|
4.1
|
%
|
|
4.0
|
%
|
|
|
|
Occupancy
|
|
70.9
|
%
|
|
70.7
|
%
|
|
0.2
|
%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
127.53
|
|
|
$
|
122.07
|
|
|
4.5
|
%
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed and franchised hotels (# hotels; includes owned
and leased hotels)
|
|
|
Americas
|
|
|
|
Full service (137)
|
|
|
|
ADR
|
|
$
|
177.87
|
|
|
$
|
171.67
|
|
|
3.6
|
%
|
|
3.8
|
%
|
|
|
|
Occupancy
|
|
69.6
|
%
|
|
70.3
|
%
|
|
(0.7
|
)%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
123.72
|
|
|
$
|
120.60
|
|
|
2.6
|
%
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service (214)
|
|
|
|
ADR
|
|
$
|
108.05
|
|
|
$
|
104.03
|
|
|
3.9
|
%
|
|
3.9
|
%
|
|
|
|
Occupancy
|
|
72.6
|
%
|
|
70.9
|
%
|
|
1.7
|
%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
78.49
|
|
|
$
|
73.77
|
|
|
6.4
|
%
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASPAC
|
|
|
|
Full service (48)
|
|
|
|
ADR
|
|
$
|
227.76
|
|
|
$
|
236.27
|
|
|
(3.6
|
)%
|
|
(1.4
|
)%
|
|
|
|
Occupancy
|
|
64.6
|
%
|
|
63.9
|
%
|
|
0.7
|
%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
147.09
|
|
|
$
|
151.02
|
|
|
(2.6
|
)%
|
|
(0.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAME/SW Asia
|
|
|
|
Full service (50)
|
|
|
|
ADR
|
|
$
|
238.18
|
|
|
$
|
244.40
|
|
|
(2.5
|
)%
|
|
(1.0
|
)%
|
|
|
|
Occupancy
|
|
63.5
|
%
|
|
59.1
|
%
|
|
4.4
|
%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
151.13
|
|
|
$
|
144.53
|
|
|
4.6
|
%
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable systemwide hotels (449)
|
|
|
|
ADR
|
|
$
|
174.57
|
|
|
$
|
171.87
|
|
|
1.6
|
%
|
|
2.4
|
%
|
|
|
|
Occupancy
|
|
68.8
|
%
|
|
68.3
|
%
|
|
0.5
|
%
|
pts
|
|
|
|
|
RevPAR
|
|
$
|
120.16
|
|
|
$
|
117.31
|
|
|
2.4
|
%
|
|
3.2
|
%
|
(a) Owned and leased hotel figures do not include unconsolidated
hospitality ventures.
|
|
|
|
|
|
|
|
|
|
|
|
Page 6
|
|
Hyatt Hotels Corporation
|
|
Hotel Brand Statistics
|
|
Comparable Locations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change (in
|
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
constant $)
|
|
|
|
|
|
|
|
|
|
|
|
|
Systemwide (# hotels; includes owned, leased, managed and
franchised hotels)
|
|
|
|
|
|
|
|
|
|
|
|
|
Park Hyatt (27)
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
354.75
|
|
|
$
|
358.59
|
|
|
(1.1
|
)%
|
|
0.7%
|
|
|
Occupancy
|
|
63.6
|
%
|
|
60.2
|
%
|
|
3.4
|
%
|
pts
|
|
|
|
RevPAR
|
|
$
|
225.74
|
|
|
$
|
215.84
|
|
|
4.6
|
%
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Andaz (8)
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
259.85
|
|
|
$
|
259.10
|
|
|
0.3
|
%
|
|
0.6%
|
|
|
Occupancy
|
|
69.5
|
%
|
|
68.3
|
%
|
|
1.2
|
%
|
pts
|
|
|
|
RevPAR
|
|
$
|
180.62
|
|
|
$
|
176.91
|
|
|
2.1
|
%
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Hyatt (36)
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
239.09
|
|
|
$
|
238.35
|
|
|
0.3
|
%
|
|
1.5%
|
|
|
Occupancy
|
|
71.2
|
%
|
|
72.1
|
%
|
|
(0.9
|
)%
|
pts
|
|
|
|
RevPAR
|
|
$
|
170.19
|
|
|
$
|
171.88
|
|
|
(1.0
|
)%
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt (26)
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
163.79
|
|
|
$
|
156.14
|
|
|
4.9
|
%
|
|
4.5%
|
|
|
Occupancy
|
|
68.1
|
%
|
|
67.5
|
%
|
|
0.6
|
%
|
pts
|
|
|
|
RevPAR
|
|
$
|
111.49
|
|
|
$
|
105.42
|
|
|
5.8
|
%
|
|
5.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt Regency (138)
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
168.39
|
|
|
$
|
165.48
|
|
|
1.8
|
%
|
|
2.5%
|
|
|
Occupancy
|
|
66.9
|
%
|
|
66.6
|
%
|
|
0.3
|
%
|
pts
|
|
|
|
RevPAR
|
|
$
|
112.71
|
|
|
$
|
110.27
|
|
|
2.2
|
%
|
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt Place (161)
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
102.02
|
|
|
$
|
98.47
|
|
|
3.6
|
%
|
|
3.6%
|
|
|
Occupancy
|
|
71.7
|
%
|
|
70.4
|
%
|
|
1.3
|
%
|
pts
|
|
|
|
RevPAR
|
|
$
|
73.13
|
|
|
$
|
69.34
|
|
|
5.5
|
%
|
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hyatt House (53)
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
123.75
|
|
|
$
|
118.85
|
|
|
4.1
|
%
|
|
4.1%
|
|
|
Occupancy
|
|
75.3
|
%
|
|
72.3
|
%
|
|
3.0
|
%
|
pts
|
|
|
|
RevPAR
|
|
$
|
93.16
|
|
|
$
|
85.90
|
|
|
8.5
|
%
|
|
8.5%
|
|
|
|
|
|
|
|
|
|
Page 7
|
|
Hyatt Hotels Corporation
|
|
Fee Summary
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
Fees
|
|
|
|
|
|
|
|
|
|
Base management fees
|
|
$
|
37
|
|
|
$
|
38
|
|
|
$
|
(1
|
)
|
|
(2.6
|
)%
|
|
Incentive management fees
|
|
25
|
|
|
26
|
|
|
(1
|
)
|
|
(3.8
|
)%
|
|
Franchise fees and other revenue
|
|
13
|
|
|
15
|
|
|
(2
|
)
|
|
(13.3
|
)%
|
|
Total fees
|
|
$
|
75
|
|
|
$
|
79
|
|
|
$
|
(4
|
)
|
|
(5.1
|
)%
|
|
|
|
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 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
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
Adjusted selling, general, and administrative expenses (a)
|
|
$
|
77
|
|
|
$
|
83
|
|
|
$
|
(6
|
)
|
|
(7.2
|
)%
|
|
Rabbi trust impact
|
|
7
|
|
|
10
|
|
|
(3
|
)
|
|
(30.0
|
)%
|
|
Selling, general, and administrative expenses
|
|
$
|
84
|
|
|
$
|
93
|
|
|
$
|
(9
|
)
|
|
(9.7
|
)%
|
(a) Segment breakdown for adjusted selling, general, and administrative
expenses.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
Americas management and franchising
|
|
$
|
15
|
|
|
$
|
18
|
|
|
$
|
(3
|
)
|
|
(16.7
|
)%
|
|
ASPAC management and franchising
|
|
9
|
|
|
10
|
|
|
(1
|
)
|
|
(10.0
|
)%
|
|
EAME/SW Asia management
|
|
8
|
|
|
10
|
|
|
(2
|
)
|
|
(20.0
|
)%
|
|
Owned and leased
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
|
Corporate and other (1)
|
|
42
|
|
|
42
|
|
|
—
|
|
|
—
|
%
|
|
Adjusted selling, general, and administrative expenses
|
|
$
|
77
|
|
|
$
|
83
|
|
|
$
|
(6
|
)
|
|
(7.2
|
)%
|
(1) Corporate and other includes vacation ownership expenses of $8
million for both the three months ended March 31, 2013 and 2012.
|
|
|
Page 9
|
|
Hyatt Hotels Corporation
|
|
Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and
Leased Hotel Operating Margin to Owned and Leased Hotel Operating
Margin
|
|
Below is a breakdown of consolidated owned and leased hotels
revenues and expenses, as used in calculating comparable owned and
leased hotel operating margin percentages. Results of operations as
presented on the condensed consolidated statements of income include
the impact of expenses recognized with respect to employee benefit
programs funded through rabbi trusts. Certain of these expenses are
recognized in owned and leased hotels expenses and are completely
offset by the corresponding net gains and interest income from
marketable securities held to fund operating programs, thus having
no net impact to our earnings. Below is a reconciliation of this
account excluding the impact of our rabbi trusts and excluding the
impact of non-comparable hotels.
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotels
|
|
$
|
471
|
|
|
$
|
463
|
|
|
$
|
8
|
|
|
1.7
|
%
|
|
Non-comparable hotels
|
|
21
|
|
|
10
|
|
|
11
|
|
|
110.0
|
%
|
|
Owned and leased hotels revenue
|
|
$
|
492
|
|
|
$
|
473
|
|
|
$
|
19
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotels
|
|
$
|
372
|
|
|
$
|
366
|
|
|
$
|
6
|
|
|
1.6
|
%
|
|
Non-comparable hotels
|
|
16
|
|
|
7
|
|
|
9
|
|
|
128.6
|
%
|
|
Rabbi trust
|
|
3
|
|
|
4
|
|
|
(1
|
)
|
|
(25.0
|
)%
|
|
Owned and leased hotels expense
|
|
$
|
391
|
|
|
$
|
377
|
|
|
$
|
14
|
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Owned and leased hotel operating margin percentage
|
|
20.5
|
%
|
|
20.3
|
%
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Comparable owned and leased hotel operating margin percentage
|
|
21.0
|
%
|
|
21.0
|
%
|
|
|
|
—
|
%
|
|
|
|
Page 10
|
|
Hyatt Hotels Corporation
|
|
Net gains and interest income from marketable securities held to
fund operating programs
|
|
The table below provides a reconciliation of net gains and interest
income from marketable securities held to fund operating programs,
all of which are completely offset within other line items of our
condensed consolidated statements of income, thus having no net
impact to our earnings. The gains or losses on securities held in
rabbi trusts are offset to our owned and leased hotels expense for
our hotel staff and selling, general, and administrative expenses
for our corporate staff and personnel supporting our business
segments. The gains or losses on securities held to fund our Hyatt
Gold Passport program for our owned and leased hotels are offset by
corresponding changes to our owned and leased hotel revenues. The
table below shows the amounts recorded to the respective offsetting
account.
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change ($)
|
|
Change (%)
|
|
Rabbi trust impact allocated to selling, general, and administrative
expenses
|
|
$
|
7
|
|
|
$
|
10
|
|
|
$
|
(3
|
)
|
|
(30.0
|
)%
|
|
Rabbi trust impact allocated to owned and leased hotels expense
|
|
3
|
|
|
4
|
|
|
(1
|
)
|
|
(25.0
|
)%
|
|
Net gains and interest income from marketable securities held to
fund our Gold Passport program allocated to owned and leased hotels
revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
Net gains and interest income from marketable securities held to
fund operating programs
|
|
$
|
10
|
|
|
$
|
14
|
|
|
$
|
(4
|
)
|
|
(28.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 11
|
|
Hyatt Hotels Corporation
|
|
Properties and Rooms / Units by Geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2013
|
|
|
December 31, 2012
|
|
|
QTD Change
|
|
|
|
|
|
|
|
Properties
|
|
Rooms/Units
|
|
Properties
|
|
Rooms/Units
|
|
Properties
|
|
Rooms/Units
|
|
Owned and leased hotels (a)
|
|
|
|
Full service hotels
|
|
|
|
United States
|
|
32
|
|
|
14,724
|
|
|
31
|
|
|
14,536
|
|
|
1
|
|
|
188
|
|
|
|
|
Other Americas
|
|
4
|
|
|
2,102
|
|
|
4
|
|
|
2,102
|
|
|
0
|
|
|
0
|
|
|
|
|
ASPAC
|
|
1
|
|
|
601
|
|
|
1
|
|
|
601
|
|
|
0
|
|
|
0
|
|
|
|
|
EAME/SW Asia
|
|
11
|
|
|
2,438
|
|
|
11
|
|
|
2,441
|
|
|
0
|
|
|
(3
|
)
|
|
|
|
Select service hotels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
53
|
|
|
7,243
|
|
|
56
|
|
|
7,669
|
|
|
(3
|
)
|
|
(426
|
)
|
|
Total owned and leased hotels
|
|
101
|
|
|
27,108
|
|
|
103
|
|
|
27,349
|
|
|
(2
|
)
|
|
(241
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed and franchised hotels
|
|
(includes owned and leased hotels)
|
|
|
|
|
|
March 31, 2013
|
|
|
December 31, 2012
|
|
|
|
QTD Change
|
|
|
|
|
|
|
Properties
|
|
Rooms/Units
|
|
Properties
|
|
Rooms/Units
|
|
|
Properties
|
|
Rooms/Units
|
|
Americas
|
|
|
|
Full service hotels
|
|
|
|
United States managed
|
|
105
|
|
|
54,910
|
|
|
104
|
|
|
54,722
|
|
|
|
1
|
|
|
188
|
|
|
|
|
Other Americas managed
|
|
15
|
|
|
5,802
|
|
|
15
|
|
|
5,802
|
|
|
|
0
|
|
|
0
|
|
|
|
|
Franchised
|
|
24
|
|
|
7,496
|
|
|
24
|
|
|
7,515
|
|
|
|
0
|
|
|
(19
|
)
|
|
|
|
Subtotal
|
|
144
|
|
|
68,208
|
|
|
143
|
|
|
68,039
|
|
|
|
1
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service hotels
|
|
|
|
United States managed
|
|
92
|
|
|
12,330
|
|
|
96
|
|
|
12,929
|
|
|
|
(4
|
)
|
|
(599
|
)
|
|
|
|
Other Americas managed
|
|
1
|
|
|
120
|
|
|
1
|
|
|
120
|
|
|
|
0
|
|
|
0
|
|
|
|
|
Franchised
|
|
135
|
|
|
17,958
|
|
|
128
|
|
|
16,774
|
|
|
|
7
|
|
|
1,184
|
|
|
|
|
Subtotal
|
|
228
|
|
|
30,408
|
|
|
225
|
|
|
29,823
|
|
|
|
3
|
|
|
585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASPAC
|
|
|
|
Full service hotels
|
|
|
|
ASPAC managed
|
|
53
|
|
|
20,746
|
|
|
51
|
|
|
20,016
|
|
|
|
2
|
|
|
730
|
|
|
|
|
ASPAC franchised
|
|
2
|
|
|
988
|
|
|
2
|
|
|
988
|
|
|
|
0
|
|
|
0
|
|
|
|
|
Subtotal
|
|
55
|
|
|
21,734
|
|
|
53
|
|
|
21,004
|
|
|
|
2
|
|
|
730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAME/SW Asia
|
|
|
|
Full service hotels
|
|
|
|
EAME managed
|
|
33
|
|
|
8,079
|
|
|
33
|
|
|
8,084
|
|
|
|
0
|
|
|
(5
|
)
|
|
|
|
SW Asia managed
|
|
22
|
|
|
6,442
|
|
|
20
|
|
|
6,014
|
|
|
|
2
|
|
|
428
|
|
|
|
|
Subtotal
|
|
55
|
|
|
14,521
|
|
|
53
|
|
|
14,098
|
|
|
|
2
|
|
|
423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select service hotels
|
|
|
|
SW Asia managed
|
|
1
|
|
|
115
|
|
|
1
|
|
|
115
|
|
|
|
0
|
|
|
0
|
|
|
|
|
Subtotal
|
1
|
|
|
115
|
|
|
1
|
|
|
115
|
|
|
|
0
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total managed and franchised hotels
|
|
483
|
|
|
134,986
|
|
|
475
|
|
|
133,079
|
|
|
|
8
|
|
|
1,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation ownership
|
|
15
|
|
|
963
|
|
|
15
|
|
|
963
|
|
|
|
0
|
|
|
0
|
|
|
|
|
Residential
|
|
10
|
|
|
1,102
|
|
|
10
|
|
|
1,102
|
|
|
|
0
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total properties and rooms/units
|
|
508
|
|
|
137,051
|
|
|
500
|
|
|
135,144
|
|
|
|
8
|
|
|
1,907
|
|
(a) Owned and leased hotel figures do not include unconsolidated
hospitality ventures.
|
|
|
|
|
|
|
|
|
|
|
|
Page 12
|
|
Hyatt Hotels Corporation
|
|
Properties and Rooms / Units by Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2013
|
|
|
December 31, 2012
|
|
|
QTD Change
|
|
|
Brand
|
|
Properties
|
|
Rooms/Units
|
|
Properties
|
|
Rooms/Units
|
|
Properties
|
|
Rooms/Units
|
|
Park Hyatt
|
|
31
|
|
|
6,270
|
|
|
30
|
|
|
6,014
|
|
|
1
|
|
|
256
|
|
|
Andaz
|
|
9
|
|
|
1,823
|
|
|
9
|
|
|
1,823
|
|
|
0
|
|
|
0
|
|
|
Hyatt
|
|
33
|
|
|
7,824
|
|
|
28
|
|
|
6,948
|
|
|
5
|
|
|
876
|
|
|
Grand Hyatt
|
|
38
|
|
|
21,513
|
|
|
38
|
|
|
21,515
|
|
|
0
|
|
|
(2
|
)
|
|
Hyatt Regency
|
|
143
|
|
|
67,033
|
|
|
144
|
|
|
66,841
|
|
|
(1
|
)
|
|
192
|
|
|
Hyatt Place
|
|
175
|
|
|
22,920
|
|
|
172
|
|
|
22,335
|
|
|
3
|
|
|
585
|
|
|
Hyatt House
|
|
54
|
|
|
7,603
|
|
|
54
|
|
|
7,603
|
|
|
0
|
|
|
0
|
|
|
Vacation Ownership and Residential
|
|
25
|
|
|
2,065
|
|
|
25
|
|
|
2,065
|
|
|
0
|
|
|
0
|
|
|
Total
|
|
508
|
|
|
137,051
|
|
|
500
|
|
|
135,144
|
|
|
8
|
|
|
1,907
|
|
