Hyatt Hotels Corporation (NYSE: H) today announced that its
Board of Directors has authorized the repurchase of up to an
additional $750 million of the Company’s common stock. The
authorization is consistent with Hyatt’s ongoing commitment to
return meaningful capital to stockholders while continuing to
invest in growth opportunities. Year-to-date through November 15,
2017, the Company repurchased over $700 million of common stock. As
of December 14, 2017, the Company had approximately $864 million
available under its share repurchase authorization (including the
$750 million authorized on December 14, 2017).
On November 9, 2017, the Company sold the 550-room Hyatt Regency
Monterey Hotel and Spa in Monterey, CA for approximately $60
million, resulting in the recognition of a pre-tax gain of
approximately $17 million. The gain will be characterized as a
special item and will be recorded outside of Hyatt’s Adjusted
EBITDA. The sale was part of six properties actively marketed for
sale as announced during the Company’s first quarter 2017 earnings
call. The property will remain in the Hyatt system under a
long-term franchise agreement.
The sale of Hyatt Regency Monterey Hotel and Spa brings the
Company’s total dispositions, including hotel properties and other
investments, to approximately $920 million in 2017. These
dispositions reflect a total estimated headwind of approximately
$56 million to Owned & Leased hotels segment Adjusted EBITDA in
2018, inclusive of an approximate $9 million impact from Monterey.
The anticipated Adjusted EBITDA impact from the sale of Monterey on
2017 results is immaterial.
On December 11, 2017, Hyatt received net cash proceeds of
approximately $217 million related to the sale of Avendra LLC to
Aramark Corporation. The transaction resulted in the recognition of
approximately $20 million in equity earnings from unconsolidated
hospitality ventures which, consistent with the Company’s Form 8-K
dated October 16, 2017, will be characterized as a special item and
recorded outside of Adjusted EBITDA, Adjusted Net Income and
Adjusted EPS.
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, outlook,
occupancy, ADR and growth trends, market share, the number of
properties we expect to open in the future, the amount by which the
Company intends to reduce its real estate asset base and the
anticipated timeframe for such asset dispositions, our expected
adjusted SG&A expense, our estimated comparable systemwide
RevPAR growth, our estimated Adjusted EBITDA growth, maintenance
and enhancement to existing properties capital expenditures,
investments in new properties 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 and a worsening
of global economic conditions or low levels of economic growth; the
rate and the 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 future bookings;
loss of key personnel; hostilities, or fear of hostilities,
including future terrorist attacks, that affect travel;
travel-related accidents; natural or man-made disasters such as
earthquakes, tsunamis, tornadoes, hurricanes, floods, wildfires,
oil spills, nuclear incidents and global outbreaks of pandemics or
contagious diseases or fear of such outbreaks; our ability to
successfully execute on our strategy to reduces our real estate
asset base within targeted timeframes and at expected values;
declines in the value of our real estate assets; our ability to
successfully achieve certain levels of operating profits at hotels
that have performance guarantees in favor of our third-party
owners; the impact of hotel renovations; risks associated with our
capital allocation plans and common stock repurchase program,
including the amount and timing of share repurchases and the risk
that our common stock repurchase program could increase volatility
and fail to enhance stockholder value; the seasonal and cyclical
nature of the real estate and hospitality businesses; changes in
distribution arrangements, such as through internet travel
intermediaries; changes in the tastes and preferences of our
customers, including the entry of new competitors in the lodging
business; relationships with colleagues and labor unions and
changes in labor laws; financial condition of, and our
relationships with, third-party property owners, franchisees and
hospitality venture partners; the possible inability of third-party
owners, franchisees or development partners to access capital
necessary to fund current operations or implement our plans for
growth; risks associated with potential acquisitions and
dispositions and the introduction of new brand concepts; the timing
of acquisitions and dispositions; failure to successfully complete
proposed transactions (including the failure to satisfy closing
conditions or obtain required approvals); unforeseen terminations
of our management or franchise agreements; changes in federal,
state, local or foreign tax law; increases in interest rates and
operating costs; foreign exchange rate fluctuations or currency
restructurings; lack of acceptance of new brands or innovation; our
ability to successfully implement our new global loyalty platform,
and the level of acceptance of the new program by our guests;
general volatility of the capital markets and our ability to access
such markets; changes in the competitive environment in our
industry, including as a result of industry consolidation, and the
markets where we operate; cyber incidents and information
technology failures; outcomes of legal or administrative
proceedings; violations of regulations or laws related to our
franchising business; and other risks discussed in the Company's
filings with the SEC, 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 only as of the date of this press release. We do not undertake
or assume any 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 law. 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 statement.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading
global hospitality company with a portfolio of 13 premier brands.
As of September 30, 2017 the Company's portfolio included 739
properties in 57 countries. The Company's purpose to care for
people so they can be their best informs its business decisions and
growth strategy and is intended to create value for shareholders,
build relationships with guests and attract the best colleagues in
the industry. The Company's subsidiaries develop, own, operate,
manage, franchise, license or provide services to hotels, resorts,
branded residences and vacation ownership properties, including
under the Park Hyatt®, Miraval®, Grand Hyatt®, Hyatt Regency®,
Hyatt®, Andaz®, Hyatt Centric®, The Unbound Collection by
Hyatt®, Hyatt Place®, Hyatt House®, Hyatt
Ziva™, Hyatt Zilara™ and Hyatt Residence
Club® brand names and have locations on six continents. For
more information about Hyatt Hotels Corporation, please visit
www.hyatt.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171214006370/en/
Hyatt Hotels CorporationInvestor Contact:Amanda Bryant,
312.780.5539amanda.bryant@hyatt.comorMedia Contact:Stephanie
Lerdall, 312.780.5399stephanie.lerdall@hyatt.com
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