CHICAGO—Hyatt Hotels Corporation reported a net loss of $161 million in the third quarter of 2020, but opened a record number of hotels in the quarter.
The loss compares to net income of $296 million in the third quarter of 2019. Adjusted net loss was $150 million compared to adjusted net income attributable to Hyatt of $39 million in the third quarter of 2019.
Mark S. Hoplamazian, president/CEO of Hyatt Hotels Corporation, said, “Third quarter results reflect Hyatt’s ability to adapt to a continuously changing and uneven demand environment. In the third quarter, we doubled the number of room nights sold compared to the second quarter of 2020. I am exceptionally proud of our hotel teams who gained transient demand market share in the segments and geographies of strongest demand globally as they continue to discover and secure demand from many different sources. I am also very encouraged that we opened 27 new hotels representing over 4,300 new rooms, a record number of hotel openings for any third quarter in our history, while sustaining our pipeline for future growth during this disrupted time.”
Third quarter of 2020 highlights as compared to the third quarter of 2019 are as follows:
- Net income (loss) decreased 154.2% to a net loss of $161 million.
- Adjusted EBITDA decreased 129.9% to $(48) million.
- Cash and cash equivalents of $1,778 million.
- Comparable system-wide RevPAR decreased 72.0%.
- Net rooms growth of 6.0%.
- Pipeline of executed management or franchise contracts for approximately 101,000 rooms, an increase of 9.8% compared to the third quarter 2019.
Hoplamazian continued, “We expect demand to remain uneven over the coming months and believe the ingenuity and resilience of our teams will enable us to continue to win share and deepen our strong relationships with our loyal guests and customers. Furthermore, we believe our strong liquidity position will help to sustain our operations over time and support our long-term growth strategy. During this time, our unwavering commitment to living our purpose to care for our colleagues, guests, owners and communities around the globe is of paramount importance.”
RevPAR continued to recover across all of Hyatt’s regions in the third quarter of 2020 with comparable system-wide RevPAR more than doubling sequentially off the low in the second quarter of 2020. The pace of recovery varied by region, and was led by occupancy gains in Greater China and U.S. select-service hotels.
In the third quarter of 2020, RevPAR at comparable full-service and select-service hotels in the Americas benefited from stronger demand in certain markets within the US. Within the APAC region, Greater China continued to lead the RevPAR recovery driven by strong domestic demand. Within the EAME/SW Asia region, RevPAR benefited from hotel re-openings over the summer holiday. RevPAR at comparable owned and leased hotels moderately increased over the quarter as more hotels resumed operations and leisure transient demand strengthened.
Hyatt continues to re-open hotels where operations had been suspended. As of September 30, 2020, 92% of total system-wide hotels (88% of rooms) were open compared to 80% of total system-wide hotels (74% of rooms) at June 30, 2020.
Preliminary October 2020 comparable system-wide RevPAR estimates reflect a modest sequential improvement compared to the third quarter of 2020, and a decrease of approximately 70% compared to October of 2019. These estimates are driven primarily by leisure transient demand. As of Oct. 31, 2020, 94% of total system-wide hotels (92% of rooms) were open.