Hyatt released their 1st quarter 2020 results which have been not surprisingly significantly impacted due to COVID-19. Hyatt has seend RevPAR decline of 28% from the same time last year.
At the end of last most, Hyatt has temporarily closed 35% of all their hotels worldwide due to COVID-19, with the majority of these being in the United States. Of their Americas hotels 62% of their full service hotels and 19% of select service hotels were currently closed. Operations were suspended at 82% of their owned and leased hotels.
First quarter of 2020 financial highlights as compared to the first quarter of 2019 are as follows:
- Net income (loss) decreased 262.8% to a net loss of $103 million.
- Adjusted EBITDA decreased 54.3% to $86 million, a decrease of 53.9% in constant currency.
- Comparable system-wide RevPAR decreased 28.1%, including a decrease of 25.8% at comparable owned and leased hotels.
- Comparable U.S. hotel RevPAR decreased 24.5%; full service hotel RevPAR decreased 25.2% and select service hotel RevPAR decreased 23.0%.
- Net rooms growth was 6.3% in the first quarter of 2020.
- Comparable owned and leased hotels operating margin decreased 1,060 basis points to 14.5%.
- Adjusted EBITDA margin of 18.3% decreased 1,010 basis points in constant currency.
It’s clear that Hyatt has been severely impacted by COVID-19, and as a result has closed many of their hotels worldwide, with the largest percentage being in the United States.
Hyatt manages hotels as well as franchises many of their brands, but when it comes to hotels closing, we see a much larger percentage of managed hotels being closed than franchised hotels.
One encouraging piece is that at the end of April, occupancy rates at China hotels increased slightly to 25%, giving a glimpse of hope that travel is slowly starting to return, which can be an indication of what’s to come in the rest of the world in the month’s following.
Feel free to share your take on Hyatt’s 1st quarter results in the comments below.