Hyatt profit falls, adjusted results beat Street
ASSOCIATED PRESS February 13, 2013 8:26AM
Chicago-based Hyatt Hotels’ net income declined 69 percent in the fourth quarter, hurt by impairment charges and a smaller income tax benefit. Its adjusted results topped Wall Street’s view, and the stock rose in premarket trading Wednesday.
President and CEO Mark Hoplamazian said in a statement that Hyatt Hotels Corp., whose brands include its namesake, Hyatt Regency, Andaz and others, plans to open more than 30 hotels this year. This includes converting four hotels in Paris, Nice and Cannes to Hyatt brands.
For the three months ended Dec. 31, the Chicago-based lodging company earned $16 million, or 9 cents per share. That’s down from $52 million, or 31 cents per share, a year ago.
Taking out impairment charges and other items, earnings were 20 cents per share. Analysts forecast earnings of 12 cents per share, according to a FactSet survey.
Hyatt Hotels had an $11 million income tax benefit in the quarter. A year earlier, the income tax benefit was $28 million.
Revenue climbed to $1 billion from $990 million. Wall Street predicted $1.03 billion in revenue.
Revenue per available room for owned and leased hotels open at least a year climbed 7.5 percent on solid demand. Revenue per available room, or revpar, is a key gauge of a hotel operator’s performance.
Full-year net income was $88 million, or 53 cents per share, down from $113 million, or 67 cents per share, in the prior year. Annual revenue rose 7 percent to $3.95 billion from $3.7 billion.
Hyatt shares added 9 cents to $42.25 about 30 minutes before the market open.