Hyatt Hotels Corp. reported first-quarter 2021 financial results that included a US$304 million net loss, or US$2.99 per diluted share, compared to net loss of US$103 million, or US$1.02 per diluted share, in the first quarter of 2020. Adjusted net loss was US$363 million, or $3.57 per diluted share, in the first quarter of 2021, compared to adjusted net loss of US$35 million, or US$0.35 per diluted share, in the first quarter of 2020.
“First quarter results exceeded expectations as demand improved meaningfully over the course of the quarter,” said Hyatt President and CEO Mark Hoplamazian. “The expansion of vaccine distribution and the easing of travel restrictions in certain markets fueled improved confidence in travel in many of the markets in which we operate. We also reported strong net rooms growth of 6.5%, reaching an important milestone with the opening of our 1,000th hotel in the quarter.”
First quarter of 2021 highlights are as follows:
- Net losses increased compared to the first quarter of 2020 to a net loss of US$304 million. The net loss included a US$193 million non-cash full valuation allowance on U.S. deferred income tax assets.
- Adjusted EBITDA decreased 123.3% compared to the first quarter of 2020, to $(20) million.
- Comparable system-wide RevPAR decreased 48.9% compared to the first quarter of 2020, and decreased 65.4% compared to the first quarter 2019 on a reported basis.1
- Comparable owned and leased hotels RevPAR decreased 64.4% compared to the first quarter of 2020, and decreased 72.5% compared to the first quarter 2019 on a reported basis.1
- Net rooms growth of 6.5%.
- Pipeline of executed management or franchise contracts for approximately 100,000 rooms.
- As of March 31, 2021, the company had cash, cash equivalents and short-term investments of US$1,628 million.
Hoplamazian continued, “While risks do remain in the management of the pandemic, we are optimistic about continued growth of demand in the coming months and the balance of 2021. The demand levels we saw in March have continued through April. While leisure travel continues to lead the recovery, we are encouraged by positive indicators across other travel segments as well.”
Truist Securities analyst C. Patrick Scholes wrote on Tuesday that Hyatt’s reported 1Q21 Adjusted EBITDA of -US$20M was better than its pre-earnings estimate of -US$28M and consensus of -US$36M.
Hyatt also reported 23 new hotels (or 3,919 rooms) opened in the first quarter of 2021, contributing to a 6.5% increase in net rooms compared to the first quarter of 2020. As of March 31, the company had executed management or franchise contracts for approximately 490 hotels (or approximately 100,000 rooms).
The Company is providing the following guidance for the 2021 fiscal year:
- Adjusted selling, general, and administrative expenses are expected to be approximately US$240 million.
- Capital expenditures are expected to be approximately $110 million.
- The company expects to grow units, on a net rooms basis, by over 5%.