Hyatt Hotels Corporation (NYSE:H) Q3 2024 Earnings Call Transcript

Q3 2024 Earnings Conference Call

Hyatt Hotels Corporation (NYSE:H) held its Q3 2024 Earnings Conference Call on November 1, 2024, at 8:30 AM ET.

The following is a transcript of the call.

Participants:

- Mark S. Hoplamazian - President and Chief Executive Officer - Patrick Grismer - Chief Financial Officer, Senior Vice President of Global Strategy and Corporate Development

Presentation:

Operator

Good day, and welcome to the Hyatt Hotels Corporation Third Quarter 2024 Earnings Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. (Operator Instructions)

I would now like to turn the conference over to Mark Hoplamazian, President and Chief Executive Officer.

Mark S. Hoplamazian

Thank you, Operator. Good morning, everyone, and thank you for joining us to discuss our third quarter 2024 results.

During the quarter, we saw solid growth across all of our key business metrics. Global comparable RevPAR increased 10.4%, occupancy increased 3.4 percentage points to 74.7%, and ADR increased 6.6% to $170.26. This strong performance was driven by continued strength in transient demand, group demand, and a favorable pricing environment.

We also saw continued growth in our loyalty program, World of Hyatt. The number of members in our loyalty program increased by 12% year-over-year to 42 million members. We saw strong engagement from our World of Hyatt members, with program revenue increasing by 18% year-over-year. This growth is a testament to the value that our loyalty program offers to our members and the importance of our loyalty program to our business.

Our strong performance in the third quarter was driven by a number of factors. First, we continue to benefit from the recovery in global travel demand. As the world emerges from the pandemic, people are eager to travel again, and we are seeing strong demand for our hotels from both leisure and business travelers.

Second, we have been successful in executing our strategic plan, which is focused on driving growth through our core brands, expanding our global presence, and enhancing the guest experience. We are also benefiting from the strength of our brands, which are recognized for their quality, service, and innovation.

Finally, I would like to thank our team members for their hard work and dedication. Their commitment to providing our guests with a world-class experience has been instrumental to our success.

Looking ahead to the fourth quarter, we are cautiously optimistic about the outlook for the global travel industry. We expect to see continued growth in demand, and we are well-positioned to benefit from this growth. We are also focused on continuing to execute our strategic plan and enhancing the guest experience.

I will now turn the call over to Patrick Grismer, our Chief Financial Officer, to provide more details on our financial results.

Patrick Grismer

Thank you, Mark. Good morning, everyone.

For the third quarter of 2024, Hyatt Hotels Corporation reported net income of $306 million, or $1.86 per share, compared to net income of $282 million, or $1.74 per share, in the third quarter of 2023. Adjusted EBITDA for the third quarter of 2024 was $590 million, compared to adjusted EBITDA of $542 million in the third quarter of 2023.

Our strong financial performance in the third quarter was driven by the growth in RevPAR, occupancy, and ADR that Mark discussed earlier. We also benefited from the strength of our brands and the execution of our strategic plan. We continue to focus on driving cost efficiencies and improving our margins.

Looking ahead to the fourth quarter, we expect to see continued growth in demand and strong financial performance. We are also focused on continuing to execute our strategic plan and enhancing the guest experience.

Thank you for your time this morning. We are now ready to take your questions.