Hyatt Hotels on Thursday posted a major earnings miss, after on Monday announcing a deal to purchase all-inclusive resort operator Playa. Wyndham Hotels posted mixed results late Wednesday. Marriott International managed to beat estimates for Q4 results early Tuesday but its first-quarter guidance disappointed.
Hyatt Earnings
Hyatt Hotels on Thursday reported earnings of 42 cents per share adjusted, missing FactSet estimates for a 17% increase to 75 cents. Revenue ticked down to $1.648 billion, also missing views for $1.656 billion.
The company's revenue per available room (RevPAR) growth for hotels hit 5% during the quarter, with a 2.9% increase in RevPAR for all-inclusive resorts.
Hyatt expects system-wide hotel RevPAR to to rise 2% to 4% for 2025, with a 6% to 7% increase in net rooms. The company's 2025 guidance calls for net income between $190 million and $240 million, with $450 million to $500 million in adjusted free cash flow.
Hyatt's $2.6 Billion Deal
Elsewhere, Hyatt on Monday reported it agreed to purchase the remaining outstanding shares of Playa Hotels & Resorts, which owns and operates a number of all-inclusive resorts in Mexico, the Dominican Republic and Jamaica. Prior to Monday's announcement, Hyatt owned a 9.4% stake in Playa.
Hyatt plans to pay $13.50 per share, or about $2.6 billion, including about $900 million of debt, net of cash. The hotel giant said the acquisition provides an opportunity to secure long-term management agreements for its all-inclusive properties, Hyatt Ziva and Hyatt Zilara. The deal will also expand Hyatt's distribution channels, including ALG Vacations and Unlimited Vacation Club, to Playa's portfolio, offering additional benefits to guests at Playa hotels.
Hyatt said it remains committed to its asset-light model and intends to find third-party buyers for Playa's owned properties. Once the transaction closes, Hyatt expects to realize at least $2 billion of proceeds from asset sales by the end of 2027. The company predicts asset-light earnings to exceed 90% on a pro forma basis in 2027.
Hyatt expects to fund the transaction with new debt financing and expects to pay down over 80% of the new debt financing with proceeds from asset sales. The transaction is expected to close later this year, subject to approval from Playa shareholders and regulators.
Hyatt shares tumbled about 9% Thursday.
Prior to Thursday's retreat, H stock was trading below a 168.20 buy point for a cup base, also matching its record high.
PLYA stock inched up Tuesday and swung 2.3% higher Monday. The move pushed shares to all-time highs and cleared the previous record of 13.15 from Feb. 6.
Wyndham Hotels
Wyndham Hotels late Wednesday reported a 14% increase in earnings to $1.04 per share adjusted, beating views for 99 cents. Revenue rose 7% to $341 million, but fell short of expectations for $344 million.
Revenue per available room (RevPAR) increased 5% from last year. Wyndham opened a record 68,700 rooms globally, representing 4% system-wide room growth.
Wyndham also announced an 8% increase in its quarterly dividend to 41 cents per share, which will be paid out in Q1.
Shares fell 1.6% Thursday.
WH stock is trading above a 105.16 buy point for a flat base, after breaking out in late January.
The current buy zone, which stretches 5% beyond the buy point, extends to 110.41.
Marriott
Marriott reported a 31% decline in earnings to $2.45 per share adjusted on 5.5% revenue growth to $6.43 billion.
The results edged out FactSet expectations for a 33% decline in earnings on $6.4 billion in revenue.
Revenue per available room (RevPAR) increased 5% worldwide for the fourth quarter, with 4.1% growth from the U.S. and Canada. International RevPAR rose 7.2%.
For Q1, Marriott expects worldwide comparable RevPAR to increase between 3% and 4%. The hotelier expects to generate $1.24 billion to $1.255 billion in gross fee revenues. First-quarter adjusted earnings are expected to range from $2.20 to $2.26 per share. The guidance was slightly below FactSet views for earnings of $2.37 per share with $1.28 billion in fee revenue.
Marriott's 2025 guidance called for adjusted earnings between $9.82 and $10.19 per share adjusted with $5.37 billion to $5.48 billion in fee revenue. The company forecasts full-year comparable RevPAR grows 2% to 4% worldwide, with 4% to 5% net room growth.
MAR stock retreated about 5.4% Tuesday to fall out of a buy zone and approach its 50-day line. Shares on Thursday broke out above a 295.45 buy point for a flat base and on Friday hit a record high of 307.52.
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