CHICAGO--(BUSINESS WIRE)--Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today reported financial results as follows:
- Adjusted EBITDA was $154 million in the third quarter of 2012 compared to $135 million in the third quarter of 2011, an increase of 14.1%.
- Net income attributable to Hyatt was $23 million, or $0.14 per share, during the third quarter of 2012 compared to net income attributable to Hyatt of $14 million, or $0.08 per share, in the third quarter of 2011. Adjusted for special items, net income attributable to Hyatt was $30 million, or $0.18 per share, during the third quarter of 2012 compared to net income attributable to Hyatt of $27 million, or $0.16 per share, during the third quarter of 2011. See the table on page 3 of the accompanying schedules for a summary of special items.
- Comparable owned and leased hotel RevPAR increased 4.6% (6.3% excluding the effect of currency) in the third quarter of 2012 compared to the third quarter of 2011.
- Owned and leased hotel operating margins increased 70 basis points in the third quarter of 2012 compared to the third quarter of 2011. Comparable owned and leased hotel operating margins increased 20 basis points in the third quarter of 2012 compared to the same period in 2011. 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 hotel RevPAR increased 4.2% in the third quarter of 2012 compared to the third quarter of 2011. Comparable North American select service hotel RevPAR increased 6.0% in the third quarter of 2012 compared to the third quarter of 2011.
- Comparable international hotel RevPAR increased 0.8% (5.2% excluding the effect of currency) in the third quarter of 2012 compared to the third quarter of 2011.
- Five properties were opened during the third quarter of 2012.
- During the third quarter, the Company repurchased 911,244 shares of Class A common stock at an average price of $38.78 per share, for an aggregate purchase price of approximately $35 million.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, “We have made significant progress since our IPO nearly three years ago. We have materially increased earnings, expanded our presence in many key markets, improved guest satisfaction levels, gained market share at many of our properties, and strengthened engagement among our associates across our hotels.
“During the quarter, Adjusted EBITDA increased by over 14% as we benefited from the recent acquisitions of hotels in the U.S. and Mexico, as well as from the results of some of our key owned hotels that were renovated last year. North American transient rate growth also benefited overall results.
“Looking ahead over the long-term, we are well positioned for continued growth. We have strong brands, a high-quality owned real estate portfolio, and a large number of executed management or franchise contracts for future hotels. In the short-term, we are seeing some headwinds, including slower growth of near-term group booking activity in North America and lower revenue growth in a number of international markets due to individual market dynamics. We are confident in our ability to manage through potential economic and marketplace volatility and we continue to maintain margin and cost discipline.
“We are focused on creating long-term value for shareholders. We expect to utilize our strong balance sheet and capital base to opportunistically expand our presence and increase earnings in the years ahead. We recently sold several hotel properties at attractive pricing, while retaining long-term management agreements, as part of our asset recycling strategy. We have repurchased approximately $69 million of our stock since August. These actions reflect and reinforce our belief in the intrinsic value of Hyatt.”
SEGMENT RESULTS & OTHER ITEMS
Owned and Leased Hotels Segment
Total segment Adjusted EBITDA increased 8.5% in the third quarter of 2012 compared to the same period in 2011. Owned and leased Adjusted EBITDA increased 15.5% in third quarter of 2012 compared to the same period in 2011. Owned and leased Adjusted EBITDA benefited from acquisitions and renovations completed in the third quarter of 2011. Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA decreased 18.2% in the third quarter of 2012 as a result of the sale of two joint venture interests, negative foreign exchange and weaker performance in two international markets compared to the same period in 2011.
RevPAR for comparable owned and leased hotels increased 4.6% (6.3% excluding the effect of currency) in the third quarter of 2012 compared to the same period in 2011. Occupancy improved 40 basis points and ADR increased 4.0% (5.7% excluding the effect of currency) compared to the same period in 2011.
Revenues increased 7.0% in the third quarter of 2012 compared to the same period in 2011. Comparable hotel revenues increased 1.8% in the third quarter of 2012 compared to the same period in 2011.
RevPAR for comparable owned and leased hotels was negatively impacted by the timing of holidays in September as compared to the same period in 2011. In addition, specific market conditions negatively impacted several international owned hotels.
Owned and leased hotel expenses increased 6.1% in the third quarter of 2012 compared to the same period in 2011. Excluding expenses related to benefit programs funded through Rabbi Trusts and non-comparable hotel expenses, expenses increased 1.4% in the third quarter of 2012 compared to the same period in 2011. 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.
North American Management and Franchising Segment
Adjusted EBITDA increased 20.0% in the third quarter of 2012 compared to the same period in 2011.
RevPAR for comparable North American full service hotels increased 4.2% in the third quarter of 2012 compared to the same period in 2011. Occupancy decreased 50 basis points and ADR increased 4.9% (5.0% excluding the effect of currency) compared to the same period in 2011.
RevPAR for comparable North American full service hotels was negatively impacted by the timing of holidays in September as well as weaker performance in Washington, D.C. compared to the same period in 2011. Additionally, renovations at managed properties in Washington, D.C. and Dallas negatively impacted results.
Group rooms revenue at comparable North American full service hotels increased 0.6% in the third quarter of 2012 compared to the same period in 2011. Group room nights decreased 2.6% and group ADR increased 3.3% in the third quarter of 2012 compared to the same period in 2011.
Transient rooms revenue at comparable North American full service hotels increased 5.8% in the third quarter of 2012 compared to the same period in 2011. Transient room nights increased 0.3% and transient ADR increased 5.5% in the third quarter of 2012 compared to the same period in 2011.
Revenue from management and franchise fees increased 9.6% in the third quarter of 2012 compared to the same period in 2011.
The following three hotels were added to the portfolio during the third quarter:
- Hyatt Place Delray Beach (franchised, 134 rooms)
- Hyatt Place San Diego/Vista-Carlsbad (franchised, 150 rooms)
- Hyatt House Falls Church (franchised, 148 rooms)
One property was removed from the portfolio during the third quarter.
International Management and Franchising Segment
Adjusted EBITDA increased 11.8% in the third quarter of 2012 compared to the same period in 2011.
RevPAR for comparable international hotels increased 0.8% (5.2% excluding the effect of currency) in the third quarter of 2012 compared to the same period in 2011. Occupancy increased 20 basis points and ADR increased 0.4% (4.8% excluding the effect of currency) compared to the same period in 2011.
Revenue from management and franchise fees increased 2.9% (8.3% excluding the effect of currency) in the third quarter of 2012 compared to the same period in 2011.
The following two hotels were added to the portfolio during the third quarter:
- Hyatt Regency Chongqing (managed, 321 rooms)
- Grand Hyatt Kuala Lumpur (managed, 412 rooms)
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased by 29.3% in the third quarter of 2012 compared to the same period in 2011. Adjusted selling, general, and administrative expenses were flat in the third quarter of 2012 compared to the same period in 2011, partially as a result of the Company's realignment. 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
Five hotels were added in the third quarter of 2012, 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 September 30, 2012 this effort was underscored by executed management or franchise contracts for more than 175 hotels (or more than 39,000 rooms) across all brands. The executed contracts represent potential entry into several new countries and expansion into many new markets or markets in which the Company is under-represented. Approximately 75% of the future expansion is expected to be located outside North America.
CAPITAL EXPENDITURES
Capital expenditures during the third quarter of 2012 totaled $53 million, categorized as follows:
- Maintenance: $21 million
- Enhancements to existing properties: $30 million
- Investment in new properties: $2 million
SHARE REPURCHASE
During the third quarter, the Company announced that its Board of Directors authorized the repurchase of up to $200 million of the Company's common stock. Repurchases under the authorization 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. During the third quarter, the Company repurchased 911,244 shares of Class A common stock at an average price of $38.78 per share, for an aggregate purchase price of approximately $35 million. From October 1 through October 26, 2012, the Company repurchased 862,687 shares of Class A common stock at an average price of $38.86 per share, for an aggregate purchase price of approximately $34 million. The Company has approximately $131 million remaining under its current share repurchase authorization.
CORPORATE FINANCE
During the quarter, the Company sold its interest in two joint venture full service hotels for approximately $52 million. In addition, as a result of the sales, the Company's share of unconsolidated hospitality venture indebtedness was reduced by approximately $51 million. The Company will continue to manage these hotels under long-term management agreements.
Subsequent to the end of the quarter, the Company closed on the sale of eight select service hotels with an aggregate of 1,043 rooms for approximately $87 million. The Company will continue to manage these hotels under long-term management agreements.
On September 30, 2012, the Company had total debt of approximately $1.2 billion.
On September 30, 2012, the Company had cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of approximately $450 million and short-term investments of approximately $540 million.
On September 30, 2012, the Company had undrawn borrowing availability of approximately $1.4 billion under its revolving credit facility.
2012 INFORMATION
The Company is providing the following information for the 2012 fiscal year:
- Adjusted SG&A expense is expected to be approximately $305 million.
- Capital expenditures are expected to be approximately $340 million.
- Depreciation and amortization expense is expected to be approximately $355 million.
- Interest expense is expected to be approximately $70 million.
- The Company expects to open over 20 hotels in 2012.
CONFERENCE CALL INFORMATION
The Company will hold an investor conference call today, October 31, 2012, 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 617.213.8856, passcode #95633907, 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 October 31, 2012 through midnight on November 30, 2012 by dialing 617.801.6888, passcode #96350921. 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;
- 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 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 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 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, 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, 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; the impact of hotel renovations; our ability to successfully execute and implement our organizational realignment and the costs associated with such organizational realignment; our ability to successfully execute and implement 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 HouseTM 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 September 30, 2012, the Company's worldwide portfolio consisted of 496 properties in 45 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. |
Condensed Consolidated Statements of Income |
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| 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, 2012 and 2011 | |
| 4. | Summary of Special Items - Nine Months Ended September 30, 2012 and 2011 | |
| 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. | Net Gains (Losses) and Interest Income from Marketable Securities Held to Fund Operating Programs | |
| 11. | Properties and Rooms / Units by Geography | |
| 12. | 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 and Nine Months Ended September 30, 2012 and 2011 |
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(in millions, except per share amounts) |
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(unaudited) |
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| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| REVENUES: | |||||||||||||||||
| Owned and leased hotels | $ | 503 | $ | 470 | $ | 1,504 | $ | 1,386 | |||||||||
| Management and franchise fees | 68 | 66 | 227 | 211 | |||||||||||||
| Other revenues | 22 | 18 | 59 | 49 | |||||||||||||
| Other revenues from managed properties (a) | 384 | 343 | 1,159 | 1,062 | |||||||||||||
| Total revenues | 977 | 897 | 2,949 | 2,708 | |||||||||||||
| DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | |||||||||||||||||
| Owned and leased hotels | 382 | 360 | 1,148 | 1,086 | |||||||||||||
| Depreciation and amortization | 88 | 75 | 263 | 218 | |||||||||||||
| Other direct costs | 8 | 8 | 21 | 18 | |||||||||||||
| Selling, general, and administrative | 75 | 58 | 238 | 199 | |||||||||||||
| Other costs from managed properties (a) | 384 | 343 | 1,159 | 1,062 | |||||||||||||
| Direct and selling, general, and administrative expenses | 937 | 844 | 2,829 | 2,583 | |||||||||||||
| Net gains (losses) and interest income from marketable securities held to fund operating programs | 8 | (15 | ) | 18 | (7 | ) | |||||||||||
| Equity earnings (losses) from unconsolidated hospitality ventures | (5 | ) | 1 | (6 | ) | 6 | |||||||||||
| Interest expense | (18 | ) | (15 | ) | (53 | ) | (42 | ) | |||||||||
| Asset impairments | — | (1 | ) | — | (2 | ) | |||||||||||
| Other income (loss), net | (5 | ) | (15 | ) | 12 | (21 | ) | ||||||||||
| INCOME BEFORE INCOME TAXES | 20 | 8 | 91 | 59 | |||||||||||||
| (PROVISION) BENEFIT FOR INCOME TAXES | 3 | 5 | (19 | ) | — | ||||||||||||
| NET INCOME | 23 | 13 | 72 | 59 | |||||||||||||
| NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | 1 | — | 2 | |||||||||||||
| NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ | 23 | $ | 14 | $ | 72 | $ | 61 | |||||||||
| EARNINGS PER SHARE - Basic | |||||||||||||||||
| Net income | $ | 0.14 | $ | 0.08 | $ | 0.44 | $ | 0.35 | |||||||||
| Net income attributable to Hyatt Hotels Corporation | $ | 0.14 | $ | 0.08 | $ | 0.44 | $ | 0.36 | |||||||||
| EARNINGS PER SHARE - Diluted | |||||||||||||||||
| Net income | $ | 0.14 | $ | 0.08 | $ | 0.44 | $ | 0.35 | |||||||||
| Net income attributable to Hyatt Hotels Corporation | $ | 0.14 | $ | 0.08 | $ | 0.44 | $ | 0.36 | |||||||||
| Basic share counts | 165.5 | 165.5 | 165.6 | 169.9 | |||||||||||||
| Diluted share counts | 165.8 | 165.6 | 166.0 | 170.3 | |||||||||||||
| (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. |
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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. |
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(in millions) |
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Adjusted EBITDA | $ | 154 | $ | 135 | $ | 459 | $ | 395 | ||||||||
| Equity earnings (losses) from unconsolidated hospitality ventures | (5 | ) | 1 | (6 | ) | 6 | ||||||||||
| Asset impairments | — | (1 | ) | — | (2 | ) | ||||||||||
| Other income (loss), net | (5 | ) | (15 | ) | 12 | (21 | ) | |||||||||
| Net loss attributable to noncontrolling interests | — | 1 | — | 2 | ||||||||||||
| Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | (18 | ) | (22 | ) | (58 | ) | (59 | ) | ||||||||
| EBITDA | $ | 126 | $ | 99 | $ | 407 | $ | 321 | ||||||||
| Depreciation and amortization | (88 | ) | (75 | ) | (263 | ) | (218 | ) | ||||||||
| Interest expense | (18 | ) | (15 | ) | (53 | ) | (42 | ) | ||||||||
| (Provision) benefit for income taxes | 3 | 5 | (19 | ) | — | |||||||||||
| Net income attributable to Hyatt Hotels Corporation | $ | 23 | $ | 14 | $ | 72 | $ | 61 | ||||||||
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Page 3 |
| Hyatt Hotels Corporation |
| Summary of Special Items - Three Months Ended September 30, 2012 and 2011 |
| 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, 2012 and September 30, 2011, respectively. |
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(in millions, except per share amounts) |
| Location on Condensed Consolidated | Three Months Ended | |||||||||
| Statements of Income | September 30, | |||||||||
| 2012 | 2011 | |||||||||
| Net income attributable to Hyatt Hotels Corporation | $ | 23 | $ | 14 | ||||||
| Earnings per share | $ | 0.14 | $ | 0.08 | ||||||
| Special items | ||||||||||
| Asset impairments (a) | Asset impairments | — | 1 | |||||||
| Marketable securities (b) | Other income (loss), net | — | 12 | |||||||
| Gain on sublease agreement (c) | Other income (loss), net | (2 | ) | — | ||||||
| Realignment costs (d) | Other income (loss), net | 12 | — | |||||||
| Provisions on hotel loans (e) | Other income (loss), net | — | 4 | |||||||
| Transaction costs (f) | Other income (loss), net | — | 4 | |||||||
| Total special items - pre-tax | 10 | 21 | ||||||||
| Provision for income taxes for special items | (Provision) benefit for income taxes | (3 | ) | (8 | ) | |||||
| Total special items - after-tax | 7 | 13 | ||||||||
| Special items impact per share | $ | 0.04 | $ | 0.08 | ||||||
| Net income attributable to Hyatt Hotels Corporation, adjusted for special items | $ | 30 | $ | 27 | ||||||
| Earnings per share, adjusted for special items | $ | 0.18 | $ | 0.16 | ||||||
| (a) Asset impairments - During the third quarter of 2011, we identified and recorded $1 million of asset impairment charges related to the impairment of inventory at a vacation ownership property. |
| (b) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs. |
| (c) Gain on sublease agreement - During the third quarter of 2012, we recorded a $2 million gain due to the termination of a sublease. |
| (d) Realignment costs - Represents costs incurred as part of our Company's realignment. |
| (e) Provisions on hotel loans - In the third quarter of 2011, we recorded $4 million in provisions related to certain hotel developer loans based on our assessment of their collectability. |
| (f) 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, 2012 and 2011 |
| 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, 2012 and 2011, respectively. |
|
(in millions, except per share amounts) |
| Location on Condensed Consolidated | Nine Months Ended | |||||||||
| Statements of Income | September 30, | |||||||||
| 2012 | 2011 | |||||||||
| Net income attributable to Hyatt Hotels Corporation | $ | 72 | $ | 61 | ||||||
| Earnings per share | $ | 0.44 | $ | 0.36 | ||||||
| Special items | ||||||||||
| Asset impairments (a) | Asset impairments | — | 2 | |||||||
| Equity earnings (losses) from unconsolidated | ||||||||||
| Unconsolidated hospitality ventures impairment (b) | hospitality ventures | 1 | — | |||||||
| Loss on sale of real estate (c) | Other income (loss), net | — | 2 | |||||||
| Marketable securities (d) | Other income (loss), net | (17 | ) | 19 | ||||||
| (Gain) loss on sublease agreement (e) | Other income (loss), net | (2 | ) | 5 | ||||||
| Realignment costs (f) | Other income (loss), net | 19 | — | |||||||
| Provisions on hotel loans (g) | Other income (loss), net | — | 4 | |||||||
| Transaction costs (h) | Other income (loss), net | 1 | 4 | |||||||
| Total special items - pre-tax | 2 | 36 | ||||||||
| Provision for income taxes for special items | (Provision) benefit for income taxes | 1 | (14 | ) | ||||||
| Total special items - after-tax | 3 | 22 | ||||||||
| Special items impact per share | $ | 0.02 | $ | 0.13 | ||||||
| Net income attributable to Hyatt Hotels Corporation, adjusted for special items | $ | 75 | $ | 83 | ||||||
| Earnings per share, adjusted for special items | $ | 0.46 | $ | 0.49 | ||||||
| (a) Asset impairments - During the nine months ended September 30, 2011, we identified and recorded $2 million of asset impairment charges. The 2011 charge includes a $1 million impairment taken on inventory at one of our vacation ownership properties. |
| (b) Unconsolidated hospitality ventures impairment - During the nine months ended September 30, 2012, we recorded an impairment charge of $1 million related to an investment in a vacation ownership property. |
| (c) 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. |
| (d) Marketable securities - Represents (gains) losses on investments in trading securities not used to fund operating programs. |
| (e) (Gain) loss on sublease agreement - During the nine months ended September 30, 2012, we recorded a $2 million gain due to the termination of a sublease. During the nine months ended September 30, 2011, we recorded a $5 million loss on a sublease agreement with a related party based on the terms of our existing master lease. |
| (f) Realignment costs - Represents costs incurred as part of our Company's realignment. |
| (g) Provisions on hotel loans - During the nine months ended September 30, 2011, we recorded $4 million 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, 2012, we incurred $1 million in transaction costs to acquire the Hyatt Regency Mexico City. In the nine months ended September 30, 2011, we incurred $4 million in transaction costs to acquire hotels and other assets from LodgeWorks, L.P. and its private equity partners. |
|
Page 5 |
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|
Hyatt Hotels Corporation |
||||||||||||||||||||||||||||||
|
Segment Financial Summary |
||||||||||||||||||||||||||||||
|
(in millions) |
||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||
| 2012 | 2011 | Change ($) | Change (%) | 2012 | 2011 | Change ($) | Change (%) | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Owned and leased | $ | 503 | $ | 470 | $ | 33 | 7.0 | % | $ | 1,504 | $ | 1,386 | $ | 118 | 8.5 | % | ||||||||||||||
| North America | 57 | 52 | 5 | 9.6 | % | 185 | 159 | 26 | 16.4 | % | ||||||||||||||||||||
| International | 35 | 34 | 1 | 2.9 | % | 114 | 110 | 4 | 3.6 | % | ||||||||||||||||||||
| Total management and franchising | 92 | 86 | 6 | 7.0 | % | 299 | 269 | 30 | 11.2 | % | ||||||||||||||||||||
| Corporate and other | 22 | 18 | 4 | 22.2 | % | 59 | 49 | 10 | 20.4 | % | ||||||||||||||||||||
| Other revenues from managed properties | 384 | 343 | 41 | 12.0 | % | 1,159 | 1,062 | 97 | 9.1 | % | ||||||||||||||||||||
| Eliminations | (24 | ) | (20 | ) | (4 | ) | (20.0 | )% | (72 | ) | (58 | ) | (14 | ) | (24.1 | )% | ||||||||||||||
| Total revenues | $ | 977 | $ | 897 | $ | 80 | 8.9 | % | $ | 2,949 | $ | 2,708 | $ | 241 | 8.9 | % | ||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||
| Owned and leased | $ | 97 | $ | 84 | $ | 13 | 15.5 | % | $ | 282 | $ | 236 | $ | 46 | 19.5 | % | ||||||||||||||
| Pro rata share of unconsolidated hospitality ventures | 18 | 22 | (4 | ) | (18.2 | )% | 58 | 59 | (1 | ) | (1.7 | )% | ||||||||||||||||||
| Total owned and leased | 115 | 106 | 9 | 8.5 | % | 340 | 295 | 45 | 15.3 | % | ||||||||||||||||||||
| North American management and franchising | 48 | 40 | 8 | 20.0 | % | 148 | 124 | 24 | 19.4 | % | ||||||||||||||||||||
| International management and franchising | 19 | 17 | 2 | 11.8 | % | 63 | 59 | 4 | 6.8 | % | ||||||||||||||||||||
| Corporate and other | (28 | ) | (28 | ) | — | — | % | (92 | ) | (83 | ) | (9 | ) | (10.8 | )% | |||||||||||||||
| Adjusted EBITDA | $ | 154 | $ | 135 | $ | 19 | 14.1 | % | $ | 459 | $ | 395 | $ | 64 | 16.2 | % | ||||||||||||||
|
Page 6 |
||||||||||||||||||||||||||||||
|
Hyatt Hotels Corporation |
||||||||||||||||||||||||||||||
|
Hotel Chain Statistics |
||||||||||||||||||||||||||||||
|
Comparable Locations |
||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||
| Change (in | Change (in | |||||||||||||||||||||||||||||
| 2012 | 2011 | Change | constant $) | 2012 | 2011 | Change | constant $) | |||||||||||||||||||||||
| Owned and leased hotels (# hotels) (a) |
|
|||||||||||||||||||||||||||||
| Full service (39) |
|
|||||||||||||||||||||||||||||
| ADR | $ | 201.05 | $ | 194.64 | 3.3 | % | 5.3 | % | $ | 201.25 | $ | 197.97 | 1.7 | % | 3.2 | % | ||||||||||||||
| Occupancy | 77.4 | % | 76.4 | % | 1.0 | % | pts | 75.6 | % | 71.8 | % | 3.8 | % | pts | ||||||||||||||||
| RevPAR | $ | 155.55 | $ | 148.80 | 4.5 | % | 6.5 | % | $ | 152.23 | $ | 142.20 | 7.1 | % | 8.6 | % | ||||||||||||||
| Select service (46) |
|
|||||||||||||||||||||||||||||
| ADR | $ | 97.86 | $ | 92.01 | 6.4 | % | 6.4 | % | $ | 97.69 | $ | 92.50 | 5.6 | % | 5.6 | % | ||||||||||||||
| Occupancy | 81.6 | % | 82.6 | % | (1.0 | )% | pts | 77.9 | % | 78.4 | % | (0.5 | )% | pts | ||||||||||||||||
| RevPAR | $ | 79.86 | $ | 75.99 | 5.1 | % | 5.1 | % | $ | 76.12 | $ | 72.57 | 4.9 | % | 4.9 | % | ||||||||||||||
| Comparable owned and leased hotels (85) |
|
|||||||||||||||||||||||||||||
| ADR | $ | 174.07 | $ | 167.34 | 4.0 | % | 5.7 | % | $ | 174.65 | $ | 169.71 | 2.9 | % | 4.2 | % | ||||||||||||||
| Occupancy | 78.4 | % | 78.0 | % | 0.4 | % | pts | 76.2 | % | 73.5 | % | 2.7 | % | pts | ||||||||||||||||
| RevPAR | $ | 136.53 | $ | 130.51 | 4.6 | % | 6.3 | % | $ | 133.10 | $ | 124.72 | 6.7 | % | 8.1 | % | ||||||||||||||
| Managed and franchised hotels (# hotels; includes owned and leased hotels) |
|
|||||||||||||||||||||||||||||
| North America | ||||||||||||||||||||||||||||||
| Full service (127) |
|
|||||||||||||||||||||||||||||
| ADR | $ | 168.32 | $ | 160.46 | 4.9 | % | 5.0 | % | $ | 170.29 | $ | 163.42 | 4.2 | % | 4.3 | % | ||||||||||||||
| Occupancy | 75.7 | % | 76.2 | % | (0.5 | )% | pts | 74.4 | % | 72.5 | % | 1.9 | % | pts | ||||||||||||||||
| RevPAR | $ | 127.43 | $ | 122.33 | 4.2 | % | 4.2 | % | $ | 126.67 | $ | 118.47 | 6.9 | % | 7.0 | % | ||||||||||||||
| Select service (195) |
|
|||||||||||||||||||||||||||||
| ADR | $ | 102.24 | $ | 96.91 | 5.5 | % | 5.5 | % | $ | 102.15 | $ | 97.42 | 4.9 | % | 4.9 | % | ||||||||||||||
| Occupancy | 78.2 | % | 77.8 | % | 0.4 | % | pts | 75.8 | % | 74.7 | % | 1.1 | % | pts | ||||||||||||||||
| RevPAR | $ | 79.93 | $ | 75.42 | 6.0 | % | 6.0 | % | $ | 77.47 | $ | 72.77 | 6.5 | % | 6.5 | % | ||||||||||||||
| International | ||||||||||||||||||||||||||||||
| International comparable hotels (97) |
|
|||||||||||||||||||||||||||||
| ADR | $ | 228.11 | $ | 227.10 | 0.4 | % | 4.8 | % | $ | 233.00 | $ | 230.02 | 1.3 | % | 4.6 | % | ||||||||||||||
| Occupancy | 65.0 | % | 64.8 | % | 0.2 | % | pts | 65.7 | % | 64.4 | % | 1.3 | % | pts | ||||||||||||||||
| RevPAR | $ | 148.36 | $ | 147.18 | 0.8 | % | 5.2 | % | $ | 153.18 | $ | 148.09 | 3.4 | % | 6.8 | % | ||||||||||||||
| Comparable systemwide hotels (419) |
|
|||||||||||||||||||||||||||||
| ADR | $ | 168.11 | $ | 162.58 | 3.4 | % | 4.9 | % | $ | 171.03 | $ | 165.55 | 3.3 | % | 4.5 | % | ||||||||||||||
| Occupancy | 73.3 | % | 73.5 | % | (0.2 | )% | pts | 72.3 | % | 70.7 | % | 1.6 | % | pts | ||||||||||||||||
| RevPAR | $ | 123.29 | $ | 119.44 | 3.2 | % | 4.7 | % | $ | 123.73 | $ | 117.12 | 5.6 | % | 6.8 | % | ||||||||||||||
| (a) Owned and leased hotel figures do not include unconsolidated hospitality ventures. |
|
Page 7 |
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|
Hyatt Hotels Corporation |
||||||||||||||||||||||||||||||
|
Fee Summary |
||||||||||||||||||||||||||||||
|
(in millions) |
||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||
| 2012 | 2011 | Change ($) | Change (%) | 2012 | 2011 | Change ($) | Change (%) | |||||||||||||||||||||||
| Fees | ||||||||||||||||||||||||||||||
| Base management fees | $ | 37 | $ | 36 | $ | 1 | 2.8 | % | $ | 115 | $ | 107 | $ | 8 | 7.5 | % | ||||||||||||||
| Incentive management fees | 18 | 18 | — | — | % | 70 | 69 | 1 | 1.4 | % | ||||||||||||||||||||
| Franchise fees and other revenue | 13 | 12 | 1 | 8.3 | % | 42 | 35 | 7 | 20.0 | % | ||||||||||||||||||||
| Total fees | $ | 68 | $ | 66 | $ | 2 | 3.0 | % | $ | 227 | $ | 211 | $ | 16 | 7.6 | % | ||||||||||||||
|
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 | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||
| 2012 | 2011 | Change ($) | Change (%) | 2012 | 2011 | Change ($) | Change (%) | |||||||||||||||||||||||
| Adjusted selling, general, and administrative expenses (a) | $ | 70 | $ | 70 | $ | — | — | % | $ | 227 | $ | 206 | $ | 21 | 10.2 | % | ||||||||||||||
| Rabbi trust impact | 5 | (12 | ) | 17 | 141.7 | % | 11 | (7 | ) | 18 | 257.1 | % | ||||||||||||||||||
| Selling, general and administrative expenses | $ | 75 | $ | 58 | $ | 17 | 29.3 | % | $ | 238 | $ | 199 | $ | 39 | 19.6 | % | ||||||||||||||
|
(a) Segment breakdown for adjusted selling, general, and administrative expenses. |
||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||
| 2012 | 2011 | Change ($) | Change (%) | 2012 | 2011 | Change ($) | Change (%) | |||||||||||||||||||||||
| North American management and franchising | $ | 10 | $ | 12 | $ | (2 | ) | (16.7 | )% | $ | 38 | $ | 35 | $ | 3 | 8.6 | % | |||||||||||||
| International management and franchising | 17 | 18 | (1 | ) | (5.6 | )% | 52 | 51 | 1 | 2.0 | % | |||||||||||||||||||
| Owned and leased | 2 | 2 | — | — | % | 8 | 7 | 1 | 14.3 | % | ||||||||||||||||||||
| Corporate and other (1) | 41 | 38 | 3 | 7.9 | % | 129 | 113 | 16 | 14.2 | % | ||||||||||||||||||||
| Adjusted selling, general, and administrative expenses | $ | 70 | $ | 70 | $ | — | — | % | $ | 227 | $ | 206 | $ | 21 | 10.2 | % | ||||||||||||||
| (1) Corporate and other includes vacation ownership expenses of $8 million and $7 million for the three months ended September 30, 2012 and 2011, respectively, and $23 million and $20 million for the nine months ended September 30, 2012 and 2011, respectively. |
|
Page 9 |
| Hyatt Hotels Corporation |
| Reconciliation of Non-GAAP to GAAP Measure: Comparable Owned and Leased Hotel Operating Margin to Owned and Leased Hotel Operating Margin |
| Below is a breakdown of consolidated owned and leased hotels revenues and expenses, as used in calculating comparable owned and leased hotel operating margin percentages. Results of operations as presented on condensed consolidated statements of income include the impact of expenses recognized with respect to employee benefit programs funded through rabbi trusts. Certain of these expenses are recognized in owned and leased hotels expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund operating programs, thus having no net impact to our earnings. Below is a reconciliation of this account excluding the impact of our rabbi trusts and excluding the impact of non-comparable hotels. |
|
(in millions) |
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||
| 2012 | 2011 | Change ($) | Change (%) | 2012 | 2011 | Change ($) | Change (%) | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Comparable owned and leased hotels | $ | 453 | $ | 445 | $ | 8 | 1.8 | % | $ | 1,378 | $ | 1,318 | $ | 60 | 4.6 | % | ||||||||||||||
| Non-comparable hotels | 50 | 25 | 25 | 100.0 | % | 126 | 68 | 58 | 85.3 | % | ||||||||||||||||||||
| Owned and leased hotels revenue | $ | 503 | $ | 470 | $ | 33 | 7.0 | % | $ | 1,504 | $ | 1,386 | $ | 118 | 8.5 | % | ||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||
| Comparable owned and leased hotels | $ | 350 | $ | 345 | $ | 5 | 1.4 | % | $ | 1,066 | $ | 1,031 | $ | 35 | 3.4 | % | ||||||||||||||
| Non-comparable hotels | 30 | 20 | 10 | 50.0 | % | 77 | 58 | 19 | 32.8 | % | ||||||||||||||||||||
| Rabbi trust | 2 | (5 | ) | 7 | 140.0 | % | 5 | (3 | ) | 8 | 266.7 | % | ||||||||||||||||||
| Owned and leased hotels expense | $ | 382 | $ | 360 | $ | 22 | 6.1 | % | $ | 1,148 | $ | 1,086 | $ | 62 | 5.7 | % | ||||||||||||||
| Owned and leased hotel operating margin percentage | 24.1 | % | 23.4 | % | 0.7 | % | 23.7 | % | 21.6 | % | 2.1 | % | ||||||||||||||||||
| Comparable owned and leased hotel operating margin percentage | 22.7 | % | 22.5 | % | 0.2 | % | 22.6 | % | 21.8 | % | 0.8 | % | ||||||||||||||||||
|
Page 10 |
| Hyatt Hotels Corporation |
| Net gains (losses) and interest income from marketable securities held to fund operating programs |
| The table below provides a reconciliation of net gains (losses) 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 and 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 | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||
| 2012 | 2011 | Change ($) | Change (%) | 2012 | 2011 | Change ($) | Change (%) | |||||||||||||||||||||||
| Rabbi trust impact allocated to selling, general, and administrative expenses | $ | 5 | $ | (12 | ) | $ | 17 | 141.7 | % | $ | 11 | $ | (7 | ) | $ | 18 | 257.1 | % | ||||||||||||
| Rabbi trust impact allocated to owned and leased hotels expense | 2 | (5 | ) | 7 | 140.0 | % | 5 | (3 | ) | 8 | 266.7 | % | ||||||||||||||||||
| Net gains and interest income from marketable securities held to fund our Gold Passport program allocated to owned and leased hotels revenue | 1 | 2 | (1 | ) | (50.0 | )% | 2 | 3 | (1 | ) | (33.3 | )% | ||||||||||||||||||
| Net gains (losses) and interest income from marketable securities held to fund operating programs | $ | 8 | $ | (15 | ) | $ | 23 | 153.3 | % | $ | 18 | $ | (7 | ) | $ | 25 | 357.1 | % | ||||||||||||
|
Page 11 |
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|
Hyatt Hotels Corporation |
|||||||||||||||||||||||||||||||||
|
Properties and Rooms / Units by Geography |
|||||||||||||||||||||||||||||||||
| September 30, 2012 | June 30, 2012 | December 31, 2011 | QTD Change | YTD Change | |||||||||||||||||||||||||||||
| Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | ||||||||||||||||||||||||
| Owned and leased hotels (a) |
|
||||||||||||||||||||||||||||||||
| Full service hotels | |||||||||||||||||||||||||||||||||
| North America | 34 | 15,883 | 34 | 15,882 | 34 | 15,875 | 0 | 1 | 0 | 8 | |||||||||||||||||||||||
| International | 11 | 3,359 | 11 | 3,359 | 10 | 2,603 | 0 | 0 | 1 | 756 | |||||||||||||||||||||||
| Select service | 64 | 8,712 | 64 | 8,712 | 64 | 8,712 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
| Total owned and leased hotels | 109 | 27,954 | 109 | 27,953 | 108 | 27,190 | 0 | 1 | 1 | 764 | |||||||||||||||||||||||
|
Managed and franchised hotels |
|||||||||||||||||||||||||||||||||
|
(includes owned and leased hotels) |
|||||||||||||||||||||||||||||||||
| September 30, 2012 | June 30, 2012 | December 31, 2011 | QTD Change | YTD Change | |||||||||||||||||||||||||||||
| Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | ||||||||||||||||||||||||
| North America | |||||||||||||||||||||||||||||||||
| Full service hotels | |||||||||||||||||||||||||||||||||
| Managed | 114 | 59,494 | 115 | 59,994 | 115 | 59,986 | (1 | ) | (500 | ) | (1 | ) | (492 | ) | |||||||||||||||||||
| Franchised | 23 | 7,047 | 23 | 7,047 | 20 | 6,046 | 0 | 0 | 3 | 1,001 | |||||||||||||||||||||||
| Subtotal | 137 | 66,541 | 138 | 67,041 | 135 | 66,032 | (1 | ) | (500 | ) | 2 | 509 | |||||||||||||||||||||
| Select service hotels | |||||||||||||||||||||||||||||||||
| Managed | 95 | 12,781 | 95 | 12,781 | 95 | 12,781 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
| Franchised | 128 | 16,779 | 125 | 16,347 | 120 | 15,247 | 3 | 432 | 8 | 1,532 | |||||||||||||||||||||||
| Subtotal | 223 | 29,560 | 220 | 29,128 | 215 | 28,028 | 3 | 432 | 8 | 1,532 | |||||||||||||||||||||||
| International (b) |
|
||||||||||||||||||||||||||||||||
| Managed | 111 | 36,710 | 109 | 35,977 | 108 | 35,486 | 2 | 733 | 3 | 1,224 | |||||||||||||||||||||||
| Franchised | 2 | 988 | 2 | 988 | 2 | 988 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
| Subtotal | 113 | 37,698 | 111 | 36,965 | 110 | 36,474 | 2 | 733 | 3 | 1,224 | |||||||||||||||||||||||
| Total managed and franchised hotels | 473 | 133,799 | 469 | 133,134 | 460 | 130,534 | 4 | 665 | 13 | 3,265 | |||||||||||||||||||||||
| Vacation ownership | 15 | 963 | 15 | 963 | 15 | 963 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
| Residential | 8 | 1,230 | 8 | 1,230 | 8 | 1,230 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
| Total properties and rooms/units | 496 | 135,992 | 492 | 135,327 | 483 | 132,727 | 4 | 665 | 13 | 3,265 | |||||||||||||||||||||||
| (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. |
|
Page 12 |
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|
International managed and franchised hotels |
||||||||||||||||||||||||||||||||
|
(includes owned and leased hotels) |
||||||||||||||||||||||||||||||||
| September 30, 2012 | June 30, 2012 | December 31, 2011 | QTD Change | YTD Change | ||||||||||||||||||||||||||||
| Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | |||||||||||||||||||||||
| Asia Pacific | 54 | 21,238 | 52 | 20,505 | 53 | 20,981 | 2 | 733 | 1 | 257 | ||||||||||||||||||||||
| Southwest Asia | 19 | 5,822 | 19 | 5,822 | 18 | 5,614 | 0 | 0 | 1 | 208 | ||||||||||||||||||||||
| Europe, Africa, Middle East | 32 | 7,964 | 32 | 7,964 | 32 | 7,961 | 0 | 0 | 0 | 3 | ||||||||||||||||||||||
| Other Americas | 8 | 2,674 | 8 | 2,674 | 7 | 1,918 | 0 | 0 | 1 | 756 | ||||||||||||||||||||||
| Total International | 113 | 37,698 | 111 | 36,965 | 110 | 36,474 | 2 | 733 | 3 | 1,224 | ||||||||||||||||||||||
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Page 13 |
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Hyatt Hotels Corporation |
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Properties and Rooms / Units by Brand |
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| September 30, 2012 | June 30, 2012 | December 31, 2011 | QTD Change | YTD Change | ||||||||||||||||||||||||||
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Brand |
Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | Properties | Rooms/Units | ||||||||||||||||||||
| Park Hyatt | 29 | 5,815 | 29 | 5,815 | 27 | 5,399 | 0 | 0 | 2 | 416 | ||||||||||||||||||||
| Andaz | 8 | 1,701 | 8 | 1,701 | 6 | 1,408 | 0 | 0 | 2 | 293 | ||||||||||||||||||||
| Hyatt | 29 | 7,478 | 29 | 7,478 | 26 | 6,010 | 0 | 0 | 3 | 1,468 | ||||||||||||||||||||
| Grand Hyatt | 38 | 21,505 | 37 | 21,092 | 37 | 21,101 | 1 | 413 | 1 | 404 | ||||||||||||||||||||
| Hyatt Regency | 146 | 67,740 | 146 | 67,920 | 149 | 68,588 | 0 | (180 | ) | (3 | ) | (848 | ) | |||||||||||||||||
| Hyatt Place | 169 | 21,957 | 167 | 21,673 | 162 | 20,573 | 2 | 284 | 7 | 1,384 | ||||||||||||||||||||
| Hyatt House | 54 | 7,603 | 53 | 7,455 | 53 | 7,455 | 1 | 148 | 1 | 148 | ||||||||||||||||||||
| Vacation Ownership and Residential | 23 | 2,193 | 23 | 2,193 | 23 | 2,193 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
| Total | 496 | 135,992 | 492 | 135,327 | 483 | 132,727 | 4 | 665 | 13 | 3,265 | ||||||||||||||||||||