What happened
Hyatt Hotels (H 0.04%) might be enduringly popular destinations for certain travelers, but few investors were loading up on the company's stock Thursday. It fell by nearly 9% in price, following the release of fresh quarterly results. That was a far steeper fall than the 0.3% decline of the bellwether S&P 500 index.
So what
Before the market opened, Hyatt published its second-quarter numbers. The company earned just over $1.7 billion in total revenue, which was well up from the nearly $1.5 billion in the same period of 2022. That was accompanied by a 15% year-over-year rise in revenue per available room (RevPAR, a key financial statistic in the hospitality industry).
Meanwhile, non-GAAP (generally accepted accounting principles) adjusted net income saw an even higher jump, rising to $88 million ($0.82 per share) from the year-ago result of $51 million.
However, as any savvy investor knows, the market always compares performance with expectation. And unfortunately for Hyatt, on average, analysts tracking the hotelier's stock were anticipating it would book $0.85 per share in adjusted net income.
In the earnings release, Hyatt management attributed its improvements to lively booking by groups, among other factors. It also helped that the company earned a record amount of fees covering management and franchising services, among other activities. This totaled $248 million during the quarter.
Now what
Hyatt also proffered guidance for the entirety of 2023. RevPAR growth should fall close to the second-quarter figure; the company is forecasting 14% to 16% over the 2022 number. Net income, meanwhile, should land at roughly $215 million.
