Hyatt(H) - 2025 Q1 - Quarterly Report

Financial Performance - Consolidated revenues increased by $4 million, or 0.2$20 million, a decrease of $502 million compared to the same quarter in 2024, primarily due to lower gains on sales of real estate[173]. - Consolidated Adjusted EBITDA for the quarter was$273 million, an increase of $14 million compared to the same period in 2024[173]. - Comparable system-wide hotels Revenue per Available Room (RevPAR) was$135, representing a 5.7% improvement in constant currency compared to the quarter ended March 31, 2024[171]. - Net income attributable to Hyatt Hotels Corporation decreased by 96.4% to $20 million for the three months ended March 31, 2025, compared to$522 million in the same period of 2024[249]. - Adjusted EBITDA increased by 5.4% to $273 million for the three months ended March 31, 2025, compared to$259 million in the same period of 2024[249]. - Income before income taxes decreased to $52 million in the three months ended March 31, 2025, down$489 million or 90.4% from $541 million in 2024[217]. Revenue Breakdown - Gross fee revenues increased by$45 million, driven by improved operating performance and growth in the hotel portfolio[170]. - Owned and leased revenues decreased by $90 million compared to the same quarter in 2024 due to net disposition activity[170]. - Comparable owned and leased revenues increased by 8.3$195 million, driven by strong group demand[190]. - Segment revenues for the management and franchising segment increased by $41 million or 14.1$327 million in the three months ended March 31, 2025, compared to $286 million in 2024[220]. - Owned and leased segment revenues decreased by$93 million or 29.5% to $223 million in the three months ended March 31, 2025, compared to$316 million in 2024[224]. - Distribution segment revenues decreased by $30 million or 8.7$315 million in the three months ended March 31, 2025, compared to $345 million in 2024[228]. Expenses and Costs - General and administrative expenses decreased by$43 million to $126 million, a 25.8$902 million, driven by higher payroll and related expenses at managed properties[206]. - Transaction and integration costs rose by $15 million, primarily due to costs related to the planned Playa Hotels Acquisition[203]. - Interest expense increased by$28 million during the three months ended March 31, 2025, primarily due to the issuance of senior notes in 2024 and bridge commitment fees related to the planned Playa Hotels Acquisition[213]. Shareholder Returns - The company returned $163 million to stockholders through$149 million in share repurchases and $14 million in dividends during the quarter[174]. - The company returned$163 million to stockholders during the quarter, including $149 million in share repurchases and$14 million in dividends[252]. Debt and Capital Expenditures - Total debt increased to $4.328 billion as of March 31, 2025, from$3.782 billion as of December 31, 2024, resulting in a total debt-to-total capital ratio of 55.6%[257]. - Capital expenditures totaled $30 million for the three months ended March 31, 2025, down from$34 million in the same period of 2024[259]. - The company repaid $450 million of the outstanding 2025 Notes at maturity during the quarter[251]. Market Performance - Comparable system-wide all-inclusive resorts Net Package RevPAR was$305, a 4.5% increase compared to the same period in 2024[171]. - The increase in RevPAR at comparable owned and leased hotels was 9.0%, reaching $189, driven by strong group demand[182]. - Base management fees rose to$114 million, a 16.1% increase from 2024, attributed to increased business transient and group demand[186]. - Incentive management fees increased by 18.4% to $76 million, primarily due to the Bahia Principe Transaction and strong hotel performance in ASPAC and the Americas[187]. - Group RevPAR increased approximately 9$4 million related to intangible assets, compared to a $15 million impairment charge related to goodwill in 2024[215]. - Other income (loss), net decreased by$11 million during the three months ended March 31, 2025, compared to the same period in 2024[216]. - Cash provided by operating activities decreased by $89 million to$153 million for the three months ended March 31, 2025, compared to $242 million in the same period of 2024[255]. Miscellaneous - The company plans to use proceeds from recent debt issuances to fund the planned Playa Hotels Acquisition[251]. - As of March 31, 2025, the company had no outstanding balance on its revolving credit facility, which is intended for working capital and general corporate purposes[263]. - The company issued$105 million in letters of credit directly with financial institutions as of March 31, 2025, with weighted-average fees of approximately 92 basis points[264]. - There have been no material changes to the company's critical accounting policies or methodologies since the previous disclosures in the 2024 Form 10-K as of March 31, 2025[265]. - The company reported no material changes to its market risk as previously disclosed in the 2024 Form 10-K as of March 31, 2025[266].