Hyatt Achieves Remarkable Financial Milestones in 2023, Sets Optimistic Outlook for 2024
Hyatt Hotels Corporation has proudly announced its robust financial performance for the year 2023, showcasing a remarkable adjusted net income of $276 million and a significant 17% increase in revenue per available room (RevPAR). This achievement not only highlights the company’s solid growth but also signals a strong recovery and a positive trajectory for the global hospitality industry post-pandemic.
In a year that was pivotal for the industry, Hyatt’s financial outcomes have been especially noteworthy. The company’s adjusted EBITDA reached a stellar $1.029 billion, surpassing its own forecasts for the year. The fourth quarter saw a 9.1% increase in system-wide RevPAR compared to the same period in 2022, culminating in a yearly rise of 17%, which outperformed expectations.
A key highlight of Hyatt’s 2023 success story is its unprecedented net room growth of 5.9%, concluding the year with an impressive pipeline of 127,000 rooms under development through executed management or franchise contracts. This expansion was underscored by the addition of 101 new hotels to Hyatt’s global portfolio.
Hyatt’s financial prosperity enabled the company to return $500 million to its shareholders in capital returns, underlining its commitment to shareholder value and confidence in its financial health and strategic direction.
Mark S. Holpamazian, President and CEO of Hyatt, reflected on the year’s achievements, stating, “The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution.” He highlighted the exceptional RevPAR growth, industry-leading net rooms growth, and the achievement of the highest free cash flow in Hyatt’s history as key indicators of the company’s successful execution of its strategy.
Looking ahead to 2024, Hyatt is optimistic about its financial prospects, anticipating system-wide RevPAR to increase by 3-5% year-over-year and projecting a net room growth of 5.5-6%. The company also forecasts a net income of approximately $560 million and plans to maintain capital returns to shareholders in the range of $550-600 million.
Hyatt’s strong financial performance in 2023 and its positive outlook for 2024 reflect the company’s resilience, strategic foresight, and commitment to excellence. As Hyatt continues to expand its global footprint and enhance its service offerings, it remains a leading force in the hospitality industry, poised for even greater success in the years to come.