CHICAGO–Oct. 31, 2012– Hyatt Hotels Corporation (?Hyatt? or the ?Company?) (NYSE: H) today reported financial results as follows:
– Adjusted EBITDA was $154 million in the third quarter of 2012 compared to $135 million in the third quarter of 2011, an increase of 14.1%.
– Net income attributable to Hyatt was $23 million, or $0.14 per share, during the third quarter of 2012 compared to net income attributable to Hyatt of $14 million, or $0.08 per share, in the third quarter of 2011. Adjusted for special items, net income attributable to Hyatt was $30 million, or $0.18 per share, during the third quarter of 2012 compared to net income attributable to Hyatt of $27 million, or $0.16 per share, during the third quarter of 2011. See the table on page 3 of the accompanying schedules for a summary of special items.
– Comparable owned and leased hotel RevPAR increased 4.6% (6.3% excluding the effect of currency) in the third quarter of 2012 compared to the third quarter of 2011.
– Owned and leased hotel operating margins increased 70 basis points in the third quarter of 2012 compared to the third quarter of 2011. Comparable owned and leased hotel operating margins increased 20 basis points in the third quarter of 2012 compared to the same period in 2011. See the table on page 9 of the accompanying schedules for a reconciliation of comparable owned and leased hotel operating margin to owned and leased hotel operating margin.
– Comparable North American full service hotel RevPAR increased 4.2% in the third quarter of 2012 compared to the third quarter of 2011. Comparable North American select service hotel RevPAR increased 6.0% in the third quarter of 2012 compared to the third quarter of 2011.
– Comparable international hotel RevPAR increased 0.8% (5.2% excluding the effect of currency) in the third quarter of 2012 compared to the third quarter of 2011.
– Five properties were opened during the third quarter of 2012.
– During the third quarter, the Company repurchased 911,244 shares of Class A common stock at an average price of $38.78 per share, for an aggregate purchase price of approximately $35 million.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, ?We have made significant progress since our IPO nearly three years ago. We have materially increased earnings, expanded our presence in many key markets, improved guest satisfaction levels, gained market share at many of our properties, and strengthened engagement among our associates across our hotels.
During the quarter, Adjusted EBITDA increased by over 14% as we benefited from the recent acquisitions of hotels in the U.S. and Mexico, as well as from the results of some of our key owned hotels that were renovated last year. North American transient rate growth also benefited overall results.
[quote]?Looking ahead over the long-term, we are well positioned for continued growth. We have strong brands, a high-quality owned real estate portfolio, and a large number of executed management or franchise contracts for future hotels. In the short-term, we are seeing some headwinds, including slower growth of near-term group booking activity in North America and lower revenue growth in a number of international markets due to individual market dynamics. We are confident in our ability to manage through potential economic and marketplace volatility and we continue to maintain margin and cost discipline.
?We are focused on creating long-term value for shareholders. We expect to utilize our strong balance sheet and capital base to opportunistically expand our presence and increase earnings in the years ahead. We recently sold several hotel properties at attractive pricing, while retaining long-term management agreements, as part of our asset recycling strategy. We have repurchased approximately $69 million of our stock since August. These actions reflect and reinforce our belief in the intrinsic value of Hyatt.? [/quote]