Hyatt Hotels Corp (H) reported its earnings for the fourth quarter of 2023, and the results were a pleasant surprise for investors. The company's earnings per share (EPS) of $0.64, beat the consensus estimate of $0.38 by $0.26. Revenue for the quarter was $1.66 billion, surpassing expectations of $1.61 billion. 

Adjusted EBITDA for the quarter was $241 million, while the full-year adjusted EBITDA reached $1,029 million, exceeding expectations. Comparable system-wide RevPAR (revenue per available room) increased by 9.1% in the fourth quarter and 17.0% for the full year, compared to the same periods in 2022, also surpassing the full-year outlook. 

Hyatt Hotels Corporation's President and Chief Executive Officer, Mark S. Hoplamazian, expressed satisfaction with the company's progress towards its strategic vision and earnings evolution. The quarter marked the completion of a transformative year, with RevPAR growth exceeding the high end of the guidance range and industry-leading net rooms growth for the seventh consecutive year. This led to a record level of fees and the highest free cash flow in Hyatt's history.

The company returned $500 million to its shareholders and achieved an asset-light earnings mix of approximately 76% for the full year, a testament to the successful execution of its strategy. 

The company's net income for the fourth quarter was $26 million, while it reached $220 million for the full year, surpassing the 2023 outlook. Adjusted EBITDA for the quarter was $241 million, and it reached $1,029 million for the full year, exceeding expectations. 

System-wide RevPAR growth was impressive, with a 17% increase for the full year and a 9.1% rise in the fourth quarter. The company also achieved 5.9% net rooms growth, consistent with its full-year outlook. 

Hyatt Hotels Corporation bought back approximately 4.1 million Class A shares for $453 million in 2023, and the total capital returns to shareholders for the full year amounted to $500 million, in line with projections. 

The company's income statement reflects a robust net income and adjusted net income for both the fourth quarter and the full year. The balance sheet shows a solid liquidity position, with total debt at $3,056 million and a pro rata share of unconsolidated hospitality venture debt at $548 million, mostly non-recourse to Hyatt. 

Hyatt Hotels Corporation's Q4 2023 earnings report was a pleasant surprise for investors, with EPS beating expectations and revenue surpassing consensus estimates. The company's revenue per available room growth, adjusted EBITDA, and net rooms growth all exceeded expectations, demonstrating the successful execution of its strategy. The company returned significant capital to shareholders and achieved an asset-light earnings mix, further strengthening its financial position. With a solid liquidity position and a promising outlook for the industry, Hyatt Hotels Corporation is well-positioned for continued growth and success.

$H(H)