Hyatt Hotels Corporation (H, Financial) filed Quarterly Report for the period ended 2010-09-30.
Hyatt Hotels Corporation has a market cap of $1.8 billion; its shares were traded at around $40.96 with a P/E ratio of 216.1 and P/S ratio of 0.5. H is in the portfolios of Ron Baron of Baron Funds, John Paulson of Paulson & Co., Columbia Wanger of Columbia Wanger Asset Management, Manning & Napier Advisors, Inc, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jim Simons of Renaissance Technologies LLC.
The increase in other revenues from managed properties was due to higher cost reimbursements to us from managed properties, in-line with higher revenues. Benefit programs funded through rabbi trusts insignificantly impacted other revenues from managed properties for the three months ended September 30, 2010 when compared to the three months ended September 30, 2009. For the nine months ended September 30, 2010 other revenues from managed properties included a decrease of $11 million in benefits costs resulting from declining performance of the underlying assets for benefit programs funded through rabbi trusts, when compared to the nine months ended September 30, 2009. These expenses are offset in other costs from managed properties, thus having no net impact to our earnings. Excluding this amount, other revenues from managed properties increased $83 million, or 9%, in the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009.
Comparable owned and leased hotel revenue increased $24 million and $92 million for the three and nine month periods, respectively, which includes net unfavorable currency effects of $1 million and net favorable currency effects of $11 million, respectively. Non-comparable owned and leased hotel revenue decreased $7 million and $16 million for the three and nine month periods, respectively. This was primarily due to the sale of the Hyatt Regency Boston in the first quarter of 2010. The impact of this sale has been partially offset in the third quarter of 2010 by the opening of the Andaz Fifth Avenue in July 2010. We also experienced a $12 million and $24 million increase in management and franchise fee revenues for the three and nine months ended September 30, 2010, respectively. Included in consolidated management fees for the three and nine months ended September 30, 2010 were base management fees of $33 million and $97 million, a 14% and 12% increase from the three and nine months ended September 30, 2009, respectively. For the three and nine months ended September 30, 2010, incentive management fees were $19 million and $62 million, a 36% and 15% increase from the three and nine months ended September 30, 2009, respectively. These increases in hotel revenue and management fees were primarily driven by an increase in demand which was reflected in higher occupancy levels, particularly from group business in North America and higher transient demand in international markets. Incentive management fees increased due to higher hotel operating profits at comparable hotels, fees generated at hotels opened in 2010 and improved performance at hotels opened in 2009. Corporate and other revenues, which represent the revenues of our vacation ownership business, increased $1 million for the three months ended September 30, 2010, and decreased $4 million, or 8%, for the nine months ended September 30, 2010, primarily as a result of a decrease in
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Hyatt Hotels Corporation has a market cap of $1.8 billion; its shares were traded at around $40.96 with a P/E ratio of 216.1 and P/S ratio of 0.5. H is in the portfolios of Ron Baron of Baron Funds, John Paulson of Paulson & Co., Columbia Wanger of Columbia Wanger Asset Management, Manning & Napier Advisors, Inc, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We continue to maintain a high level of liquidity in our balance sheet with over $1.6 billion in cash and cash equivalents, including investments in highly-rated money market funds and short-term investments at September 30, 2010. At September 30, 2010, we had available credit facilities with banks for various corporate purposes. The amount of unused credit facilities as of September 30, 2010 was approximately $1.0 billion.The increase in other revenues from managed properties was due to higher cost reimbursements to us from managed properties, in-line with higher revenues. Benefit programs funded through rabbi trusts insignificantly impacted other revenues from managed properties for the three months ended September 30, 2010 when compared to the three months ended September 30, 2009. For the nine months ended September 30, 2010 other revenues from managed properties included a decrease of $11 million in benefits costs resulting from declining performance of the underlying assets for benefit programs funded through rabbi trusts, when compared to the nine months ended September 30, 2009. These expenses are offset in other costs from managed properties, thus having no net impact to our earnings. Excluding this amount, other revenues from managed properties increased $83 million, or 9%, in the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009.
Comparable owned and leased hotel revenue increased $24 million and $92 million for the three and nine month periods, respectively, which includes net unfavorable currency effects of $1 million and net favorable currency effects of $11 million, respectively. Non-comparable owned and leased hotel revenue decreased $7 million and $16 million for the three and nine month periods, respectively. This was primarily due to the sale of the Hyatt Regency Boston in the first quarter of 2010. The impact of this sale has been partially offset in the third quarter of 2010 by the opening of the Andaz Fifth Avenue in July 2010. We also experienced a $12 million and $24 million increase in management and franchise fee revenues for the three and nine months ended September 30, 2010, respectively. Included in consolidated management fees for the three and nine months ended September 30, 2010 were base management fees of $33 million and $97 million, a 14% and 12% increase from the three and nine months ended September 30, 2009, respectively. For the three and nine months ended September 30, 2010, incentive management fees were $19 million and $62 million, a 36% and 15% increase from the three and nine months ended September 30, 2009, respectively. These increases in hotel revenue and management fees were primarily driven by an increase in demand which was reflected in higher occupancy levels, particularly from group business in North America and higher transient demand in international markets. Incentive management fees increased due to higher hotel operating profits at comparable hotels, fees generated at hotels opened in 2010 and improved performance at hotels opened in 2009. Corporate and other revenues, which represent the revenues of our vacation ownership business, increased $1 million for the three months ended September 30, 2010, and decreased $4 million, or 8%, for the nine months ended September 30, 2010, primarily as a result of a decrease in
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