Hyatt Hotels (H) came out with quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +366.67%. A quarter ago, it was expected that this hotel operator would post earnings of $0.49 per share when it actually produced a loss of $0.3, delivering a surprise of -161.22%.Over the last four quarters, the compan ...

Hyatt Hotels (H) reported a fourth quarter net loss to company of $20 million compared to a loss of $56 million, a year ago. Loss per share was $0.21 compared to a loss of $0.58. Adjusted EBITDA increased to $292 million from $255 million. Adjusted earnings per share increased to $1.33 from $0.42. Total revenues increased to $1.79 billion from $1.60 billion, prior year. Comparable system-wide hotels RevPAR growth was 4.0% in the fourth quarter. For 2026, the company expects net income attributable to Hyatt ...

Financial Performance - Net income attributable to Hyatt Hotels Corporation was $(20) million in Q4 2025 and $(52) million for the full year 2025, while Adjusted Net Income was $126 million in Q4 2025 and $209 million for the full year 2025[4]. - Total revenues for the year ended December 31, 2025, were $7,101 million, an increase from $6,648 million in 2024, representing a growth of 6.8%[25]. - Net income attributable to Hyatt Hotels Corporation for the year ended December 31, 2025, was $1,296 million, compared to a loss of $52 million in 2024[25]. - Adjusted EBITDA for the year ended December 31, 2025, was $1,159 million, an increase from $1,096 million in 2024[38]. - The company reported a net loss attributable to Hyatt Hotels Corporation of $20 million for Q4 2025, compared to a net loss of $56 million in Q4 2024[37]. - The diluted earnings per share for the year ended December 31, 2025, was $(0.55), compared to $12.65 in 2024[47]. Revenue and Fees - Gross fees were $307 million in Q4 2025, an increase of 4.5% compared to Q4 2024, and $1,198 million for the full year 2025, an increase of 9.0% compared to 2024[4]. - Gross fees for 2026 are expected to be between $1,295 million and $1,335 million, an increase of 8% to 11% compared to $1,198 million in 2025[10]. - Hyatt's total revenues for reimbursed costs were $3,629 million for the year ended December 31, 2025[37]. Operational Metrics - Comparable system-wide hotels RevPAR growth was 4.0% in Q4 2025 and 2.9% for the full year 2025 compared to the same periods in 2024[4]. - System-wide RevPAR for 2025 reached $146.01, a 4.0% increase compared to 2024[26]. - Occupancy rate for system-wide hotels in 2025 was 69.4%, up 0.5 percentage points from 2024[26]. - Average Daily Rate (ADR) for system-wide hotels in 2025 was $210.47, reflecting a 3.4% increase from 2024[26]. - In Greater China, RevPAR increased by 6.7% to $94.14, with an occupancy rate of 73.7%, up 2.7 percentage points[26]. - The Americas (excluding U.S.) saw a RevPAR increase of 5.0% to $176.93, with occupancy at 68.5%, up 1.6 percentage points[26]. Future Outlook - The company expects 2026 system-wide hotels RevPAR growth of 1.0% to 3.0% and net rooms growth of 6.0% to 7.0%[10]. - Projected net income attributable to Hyatt Hotels Corporation for 2026 is between $235 million and $320 million, representing a 552% to 715% increase compared to $(52) million in 2025[10]. - The 2026 outlook for Adjusted EBITDA ranges from $1,155 million to $1,205 million, with net income attributable to Hyatt Hotels Corporation projected between $235 million and $320 million[70]. Costs and Expenses - General and administrative expenses for the year ended December 31, 2025, totaled $555 million, slightly up from $548 million in 2024[25]. - The company incurred transaction and integration costs of $173 million for the year ended December 31, 2025, compared to $42 million in 2024, reflecting increased activity in acquisitions or integrations[25]. - Adjusted G&A Expenses for the year ended December 31, 2025, were $445 million, slightly up from $444 million in 2024[40]. Capital and Liquidity - Total liquidity as of December 31, 2025, was $2.3 billion, including $813 million in cash and cash equivalents[7]. - The company recognized $173 million in transaction and integration costs for the year ended December 31, 2025, primarily related to the Playa Hotels Acquisition[47]. - Free Cash Flow for the year ended December 31, 2025, was $159 million, down from $463 million in 2024[38]. Property and Portfolio - The company opened 8,253 rooms in Q4 2025, including significant new properties like Park Hyatt Cabo del Sol and Andaz One Bangkok[7]. - As of December 31, 2025, Hyatt Hotels Corporation operates a total of 1,528 properties with 372,763 rooms globally, including 726 managed properties with 223,823 rooms[31][35]. - The pipeline as of December 31, 2025, includes approximately 830 hotels and 148,000 rooms globally, with 250 hotels in the United States alone[66]. Special Items and Adjustments - Adjusted Net Income (Loss) excludes special items and is considered an indicator of operating performance, allowing for period-over-period comparisons[82]. - Total adjustment to segment revenues from sold assets for Fiscal Year 2024 was $(267) million, with quarterly adjustments of $(119) million in Q1, $(82) million in Q2, $(42) million in Q3, and $(24) million in Q4[57]. - Total adjustment to segment Adjusted EBITDA from sold assets for Fiscal Year 2024 was $(81) million, with quarterly adjustments of $(38) million in Q1, $(29) million in Q2, $(12) million in Q3, and $(2) million in Q4[57].

Core Viewpoint - Hyatt Hotels Corporation is set to report its fourth-quarter 2025 results on February 12, 2026, with expectations of revenue growth driven by luxury travel demand and international market momentum [1][4]. Financial Performance - In the last reported quarter, Hyatt's adjusted loss per share and revenues missed the Zacks Consensus Estimate by 161.2% and 2.5%, respectively, with a year-over-year revenue growth of 9.6% and a bottom line decline of 131.9% [1]. - The Zacks Consensus Estimate for the upcoming quarter's EPS has increased to 50 cents from 46 cents, indicating a 19.1% increase from the previous year's EPS of 42 cents. Revenue is estimated at nearly $1.77 billion, reflecting a 10.5% increase from the prior-year quarter [3]. Revenue Drivers - The anticipated revenue growth is attributed to strong demand for luxury and all-inclusive travel, with significant contributions from net package RevPAR growth and international markets, particularly in Europe and Greater China [4][6]. - Management expects system-wide RevPAR growth for the fourth quarter to be between 0.5% and 2.5%, with full-service hotels in the U.S. projected to outperform select-service properties [5]. Operational Insights - The company is experiencing improving leisure-transient demand in Greater China, alongside solid performance in upper-upscale and luxury properties, which is expected to sustain momentum [6]. - The model predicts revenues from Franchise and other fees to rise 4.6% year over year to $123.6 million, with gross fees expected to increase 4.2% to $306.2 million [7]. Profitability Expectations - Fourth-quarter adjusted EBITDA is projected to increase by 27.2% year over year to $324.4 million, supported by growing fee income and an asset-light earnings mix [10]. - However, profitability may face pressure from ongoing inflation in operating costs and integration-related expenses [8]. Strategic Changes - Hyatt is shifting towards an asset-light earnings mix, targeting to exceed 90% in the near term, which will replace capital-intensive owned earnings with higher-margin fee income [9].

Economic Data - The People's Bank of China will release January CPI and PPI on February 11 [1] - The National Bureau of Statistics will publish the monthly report on January commodity residential sales price index on February 13 [1] - Financial data including January social financing and new RMB loans will also be released next week [1] - In the US, December retail sales month-on-month will be announced on February 10, followed by January unemployment rate and non-farm employment data on February 11 [1] Earnings Reports - The US earnings season continues with several notable companies reporting next week, including BP, Barclays, Marriott, Coca-Cola, and AstraZeneca on February 10 [2] - Other companies such as NetEase, Youdao, and Total will report on February 11, while TripAdvisor and Hyatt will report on February 12 [2] - In Hong Kong, SMIC will report earnings on February 10, followed by Budweiser APAC and NetEase Cloud Music on February 11 [2] New Stock Issuance - One new stock, Tongbao Optoelectronics, will be available for subscription on February 9, with Ai De Technology listing on the Beijing Stock Exchange on February 10 [2] - Several new stocks will list in Hong Kong, including Lanke Technology on February 9 and Aixin Yuanzhi on February 10 [2] Stock Unlocking - A total of 33 restricted stocks will be unlocked next week, with a total market value exceeding 36 billion yuan, led by Hunan YN with 24.096 billion yuan [3][10] Central Bank Operations - The central bank will have 4.055 billion yuan of reverse repos maturing next week, with specific amounts maturing each day [3][10] Government Bonds - The Ministry of Finance will issue the first phase of RMB government bonds in Hong Kong on February 11, with a scale of 14 billion yuan [13]

Core Insights - Baron Focused Growth Fund achieved a 12.34% return in Q4 2025, significantly outperforming the Russell 2500 Growth Index, which returned 0.33% [1] - The Fund's annual return for 2025 was 22.26%, compared to the index's 10.31% [1] - As of December 31, 2025, the top 10 positions of the Fund accounted for 60.1% of net assets [1] Company Performance - Hyatt Hotels Corporation (NYSE:H) contributed positively to the Fund's performance, with shares increasing by 13.1% in Q4 2025, adding 60 basis points to the Fund's performance [3] - The company reported strong revenue per available room (RevPAR) and unit growth rates, despite macroeconomic concerns [3] - Hyatt has extended its credit card agreement with Chase, benefiting from increased membership in its World of Hyatt program [3] - The company is selling owned hotels at accretive rates and using proceeds for stock buybacks, maintaining an investment-grade balance sheet with 90% of revenue coming from fees [3] Market Position - Hyatt Hotels Corporation has a market capitalization of $15.387 billion [2] - Despite its growth and business mix, Hyatt trades at a discount compared to peers, which is expected to narrow as investors recognize its business resilience [3] - The number of hedge funds holding Hyatt shares decreased from 45 to 39 in the third quarter, indicating a potential shift in investor interest [5]

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Summary of Global Hotels & Leisure Conference Call Industry Overview - The conference call discusses the impact of current dollar weakness on the Global Hotels & Leisure industry, particularly focusing on companies with significant international revenue exposure and those with costs denominated in different currencies. Key Points Winners from Dollar Weakness 1. **Booking Holdings (BKNG)**: - Beneficiary of dollar weakness with nearly 80% of room nights outside the US, particularly benefiting from strong Euro against the USD [2][12] - Earnings estimates increased by 2-3% due to favorable FX impact [1] 2. **Airbnb (ABNB)**: - 55% of revenues earned outside the US, with 33% exposure to Europe and 11% each to APAC and LATAM, leading to a positive earnings tailwind from USD weakness [3][12] - Earnings estimates raised by 2-3% [1] 3. **Carnival Corporation (CCL)**: - 45% of revenues generated outside the US, primarily in Europe, benefiting from favorable currency translation [3][12] - Earnings estimates increased by 2-3% [1] 4. **Other Beneficiaries**: - Hilton, Marriott, IHG, and Royal Caribbean (RCL) will also see benefits, but to a lesser extent due to limited non-USD exposure [3] Losers from Dollar Weakness 1. **Accor**: - Despite only 3% of room exposure in the US, approximately 35% of EBITDA is generated in USD while reporting in EUR, leading to a negative impact from dollar weakness [4][14] - Earnings estimates trimmed by ~3% [1] 2. **Hyatt**: - Managed resorts in the Mexican Caribbean earn revenues in USD but have costs in Mexican Pesos, leading to margin compression due to dollar weakness [5][14] - Incentive management fees are sensitive to USD/MXN exchange rates, resulting in a 3-4% headwind to earnings for 2026-2027 [5][15] Financial Implications - The overall impact of dollar weakness is expected to create a material earnings tailwind for US-denominated stocks with high non-US revenue exposure, while negatively affecting those with significant USD costs and EUR-denominated earnings [1][11] - The dollar is down MSD-high teens year-over-year against major currencies, which will have a significant impact on the earnings of companies in the travel sector [9] Investment Ratings - Despite the FX impacts, the investment ratings remain unchanged with Outperform ratings for Marriott, Hyatt, Accor, Melia, Royal Caribbean, and Airbnb [8] Additional Insights - The analysis highlights the importance of currency exposure in the hospitality sector, emphasizing that companies with significant international operations are better positioned to benefit from a weaker dollar [11][20] - The sensitivity of earnings to currency fluctuations is a critical factor for investors to consider when evaluating these companies [14][15] This summary encapsulates the key insights from the conference call regarding the impact of dollar weakness on the Global Hotels & Leisure industry, identifying both winners and losers, and providing a financial outlook for the affected companies.

Group 1 - The last commentary on Hyatt Hotels Corporation was in early 2019, with a bullish rating established in November of the previous year [1] - The commentary reflects a long-term investment strategy focused on undervalued profitable stocks with strong balance sheets and minimal debt [1] - The investment approach includes writing calls against positions to generate additional income, with risk management through position sizing and trailing stop losses [1]

Group 1 - SK Hynix announced the establishment of a new U.S.-based company focused on artificial intelligence solutions, committing at least $10 billion to capitalize on AI growth opportunities [1] - The new entity, tentatively named "AI Company or AI Co.," will act as a hub for SK Group's AI strategies and aim to accelerate technology in global markets [1] - SK Hynix has become a significant player in the AI sector due to its leadership in high-bandwidth memory (HBM) chips, which are essential for AI chipsets like those from Nvidia [2] Group 2 - The U.S. expansion of SK Hynix is in response to increasing investments in AI by other tech giants, leading to heightened demand for memory chips [2] - The new "AI Company" will be created by restructuring Solidigm, a California-based subsidiary focused on enterprise solid-state drives (SSDs) established in 2021 [2] - Operations of Solidigm will be transferred to a new entity named Solidigm Inc., with planned investments in AI Co. to be deployed on a capital-call basis, including strategic investments in American AI firms to enhance synergies across SK Group affiliates [3]