In preparation for HYATT's Q3 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.




  • $1.5 billion senior unsecured revolving credit facility that matures in September 2016, which replaces its existing $1.13 billion facility which had been scheduled to mature in June 2012
  • New R/C pricing at current ratings is L+1.175% plus a 20bps facility fee
  • "We are extremely pleased to have secured this committed facility at more favorable terms, backed by a strong group of diversified banks"


  • Acquired 20 hotels for $660MM
    • "With one hotel acquisition to close during the fourth quarter of 2011.
  • "The acquisition also includes the management or franchise rights to an additional four hotels."
  • "Hyatt expects the acquisition to have a positive impact of approximately $10 million, exclusive of transaction costs, on Adjusted EBITDA for the remainder of 2011. In 2012, the purchase is expected to generate approximately $40 million of Adjusted EBITDA."


  •  $250MM principal amount of 3.875% senior notes due 2016
    • Priced at 99.571; grade: BBB
  •  $250MM principal amount of 5.375% senior notes due 2021.
    • Priced at 99.846; grade: BBB



  • “Rate growth was a result of continued shift in mix of business, as well as increased pricing power due to higher levels of occupancy.”
  • “We own 40% of the joint venture and have committed to invest over $30 million of equity, which together with Noble’s investment and with moderate levels of leverage, should allow the JV to build six to eight new select-service hotels over the next few years. The first of these hotels is already under development in the Atlanta area.”
  • “Group revenue pace for the year is still positive, with short-term bookings still limiting longer-term visibility....rates are getting firmer."
  • "No plans for future share repurchase"
  • “In 3Q, we expect the renovations to have a less than 100 basis point impact to RevPAR and a less than $5 million impact to adjusted EBITDA. Starting in the fourth quarter, and into 2012, we expect to see the positive impact of the renovations in our reported owned and leased segment results.”
  • [ROI on Lodgeworks] “If you begin in a framework that’s sort of mid to higher single-digit kind of cap rates, we would look to expand that into double-digits over time on a return on gross investment.”
  • [Transaction opportunities] “We’re seen more select-oriented opportunities both in the U.S. and outside the U.S., as well as full-service and some luxury deals….. I would say that the direct comparison for the deals that we just talked about are fewer and far between, but the overall level of activity in the market has been growing.”
  • “We expect to open 15 properties this year, excluding LodgeWorks acquisitions….I think we opened about seven so far, about eight balance of the year.”
  • “The mindset’s fairly cautious right now given the undertone on the macroeconomic factors, especially in North America.”
  • “Business that we have on our books or booked for 2012, the rates are about 8% higher than where we think we will end in terms of areas for the group business at the end of ’11….We also saw that our corporate and association business on the group side, which is about 70% of the Group side, was up in terms of revenue in the low double-digit combination of demand and rate."
  • “We’ve been very focused on employment and housing prices and general confidence levels in the economy.”
  • “The best way to model our tax rate is 35% on our U.S. income and 20% on our international income….If you adjust for the reversal in this quarter, tax rate varies anywhere from 35% to 40%. So, I think that would be a good indication of the tax rate that you can project.”
  • [Fee impact] “We still believe that a full year downside ... will be in the region of about approximately $5 million...that’s an even split between the Middle East and Japan."

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