Hyatt(H) - 2024 Q3 - Quarterly Report

Financial Performance - Consolidated revenues increased by $7 million, or 0.5$471 million, a $403 million increase compared to the same quarter in 2023[187]. - Consolidated Adjusted EBITDA for the quarter was$275 million, an increase of $22 million compared to the same period in 2023[187]. - Income before income taxes for Q3 2024 was$608 million, up from $101 million in Q3 2023, representing a 497.9$210 million, an increase of 9.4% compared to $192 million in the same period of 2023[244]. - Adjusted EBITDA for owned and leased hotels was$49 million for the three months ended September 30, 2024, a decrease of 15.1% from $58 million in the same period of 2023[254]. - Adjusted EBITDA for the distribution segment was$38 million for the three months ended September 30, 2024, an increase of 26.1% from $31 million in 2023[259]. - Adjusted EBITDA for owned and leased hotels for the nine months ended September 30, 2024, was$156 million, a decrease of 15.5% from $185 million in the same period of 2023[254]. - The company reported a 141.3$259 million for the nine months ended September 30, 2024, compared to $107 million in the same period of 2023[282]. Revenue Breakdown - Comparable system-wide hotels revenue per available room (RevPAR) was$146, representing a 3.0% improvement in constant currency compared to the prior year[184]. - Gross fee revenues increased by $25 million, driven by improved operating performance and growth in the hotel portfolio[183]. - Comparable system-wide all-inclusive resorts Net Package RevPAR was$204, a 0.9% decrease compared to the prior year[185]. - Group rooms revenues increased approximately 6% compared to 2023, indicating strong growth in group travel demand[186]. - The increase in base management fees for the three months ended September 30, 2024, was primarily driven by the Americas and Europe[191]. - Franchise fees increased during the three months ended September 30, 2024, primarily driven by the United States, and during the nine months ended September 30, 2024, driven by the Americas and Europe[194]. - Other fees increased during the three and nine months ended September 30, 2024, primarily due to management and royalty fees related to the Unlimited Vacation Club and increased license fees from co-branded credit card programs[195]. - Total owned and leased revenues for the three months ended September 30, 2024, were $287 million, a decrease of 13.1$329 million in 2023, while for the nine months, total revenues were $910 million, down 7.6$984 million[198]. - Comparable owned and leased revenues increased by 7.2% to $679 million for the nine months ended September 30, 2024, compared to$632 million in 2023, driven by group and business transient demand[198]. - Revenues for reimbursed costs increased by 14.9% to $867 million for the three months ended September 30, 2024, and by 10.7$2.511 billion for the nine months[202]. Shareholder Returns - The company returned $672 million to shareholders through$657 million in share repurchases and $15 million in dividends during the quarter[188]. - The company repurchased 7,923,062 shares of Class A and Class B common stock for an aggregate purchase price of$1,179 million during the nine months ended September 30, 2024[295]. - The company paid three quarterly cash dividends of $0.15 per share on outstanding shares totaling$46 million during the nine months ended September 30, 2024[295]. Expenses and Costs - General and administrative expenses for the three months ended September 30, 2024, increased by 3.4% to $126 million, while adjusted expenses decreased by 14.2$100 million[205]. - Transaction and integration costs decreased by $5 million during the nine months ended September 30, 2024, primarily due to costs related to previous acquisitions[212]. - Interest expense increased by$9 million in Q3 2024 compared to Q3 2023, primarily due to the issuance of senior notes[221]. - The company recognized $35 million in impairment charges related to property and equipment during Q3 2024[226]. - Other income (loss), net increased by$44 million in Q3 2024 compared to Q3 2023[228]. Market Performance - Comparable system-wide RevPAR increased by 3.0% to $146 for the three months ended September 30, 2024, compared to the same period in 2023[234]. - Occupancy rate for comparable system-wide hotels was 72.5$209, with an occupancy rate of 74.9% for the three months ended September 30, 2024[236]. - The increase in RevPAR during the three months ended September 30, 2024, was driven by strong ADR, particularly due to events like the Democratic National Convention and the Paris Summer Olympics[252]. Capital Expenditures and Investments - The company invested $119 million in capital expenditures during the nine months ended September 30, 2024[292]. - The company acquired the me and all hotels brand name for$28 million during the nine months ended September 30, 2024[292]. - Total capital expenditures for the nine months ended September 30, 2024, were $119 million, a decrease from$134 million in the same period of 2023[302]. Debt and Financial Position - The company's debt-to-total capital ratio was 45.9% as of September 30, 2024, compared to 46.2% as of December 31, 2023[300]. - The company had $101 million in letters of credit issued directly with financial institutions outstanding at September 30, 2024, down from$256 million at December 31, 2023[306]. - The company has no balance outstanding on its revolving credit facility as of September 30, 2024[305]. - The company continues to be exposed to market risks from changes in interest rates and foreign currency exchange rates, with no material changes reported as of September 30, 2024[309].