Hyatt Earnings: Although Full Results Are Delayed, Brand Appears to Continue to Hold Its Allure

Narrow-moat Hyatt offered some insights into its fourth-quarter and full-year 2023 results after postponing its comprehensive earnings announcement and investor call due to the need for additional time to finalize accounting for its Unlimited Vacation Club. Hyatt's comparable systemwide revenue per available room, or revPAR, popped 17% for the full year, edging our 16% estimate. Management, franchise, license, and other fees totaled $985 million in fiscal 2023, ahead of our $958 million expectation, while 15.5% comparable owned and leased hotels revPAR and 5.9% net rooms growth fell just shy of our 16% and 6.1% growth assumptions, respectively. We observe ongoing strength in Hyatt’s brand, which continues to gain traction as evidenced by an 8.5% year-over-year increase in its room pipeline to 127,000 rooms, equating to an industry-leading 40% of its existing base.