In an effort to evaluate performance and as a follow up to our YouTube, we compare how the quarter measured up to previous management commentary and guidance.
OVERALL: WORSE: RevPAR was healthy and top-line was fine, but EBITDA missed expectations due to high SG&A growth and a higher contribution of occupancy to RevPAR than rate.
- GROUP BOOKINGS
- SAME: 2013 and 2014 bookings are still looking good with most of the strength on the rate side.
- WORSE: even excluding the one-time costs, SG&A was far higher than previous expectations
- CLOSE IN BOOKINGS BOOKINGS
- BETTER: Close-in bookings continued to be strong. In the quarter for the quarter bookings were up 20% with equal contribution from rate and occupancy. In the quarter for the year bookings were up 30% YoY, driven primarily by rate. Rate strength was driven by group bookings and higher corporate rates. They are still seeing a lot of activity come in that 90-day window.
- IMPACT OF RENOVATIONS:
- BETTER: Hyatt was pleased with their progress and results of their renovations. Renovations from their big five hotels contributed 190bps in margin improvements QoQ.
- 2012 HOTEL OPENINGS
- SAME: Hyatt continues to expect over 20 hotel openings in 2012
- NEW YORK OUTLOOK:
- SAME: The company's long term outlook remained bullish. The city seems to be absorbing new supply just fine with projected RevPAR growth in the mid-to high single digit range. Both transit and group demand is up.
- UPDATE ON THE RIO PROJECT
- SAME: On schedule and hope to open before 2016 Olympics, pre-opening development costs will continue. They still plan on engaging potential partners to complete the project down the road.
- SAME: Hyatt purchased an asset in Mexico City and remain active in pursing M&A opportunities. They have yet to see a strong pickup in the transactions market yet.
- SAME: 2012 guidance was raised from $350MM to $360MM due to the recently announced construction of Hyatt Place Omaha Downtown/Old Market.