x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
20-1480589
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
150 North Riverside Plaza, Chicago, Illinois
|
|
60606
|
(71 South Wacker, 12th Floor, Chicago Illinois)
|
|
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
¨
|
|
Non-accelerated filer
|
¨
|
|
Smaller reporting company
|
¨
|
|
|
|
|
Emerging growth company
|
¨
|
|
|
|
|
|
PART I – FINANCIAL INFORMATION
|
|
Item 1.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
PART II – OTHER INFORMATION
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels
|
$
|
518
|
|
|
$
|
519
|
|
|
$
|
1,667
|
|
|
$
|
1,594
|
|
Management and franchise fees
|
122
|
|
|
110
|
|
|
374
|
|
|
332
|
|
||||
Other revenues
|
16
|
|
|
11
|
|
|
53
|
|
|
31
|
|
||||
Other revenues from managed properties
|
463
|
|
|
448
|
|
|
1,407
|
|
|
1,385
|
|
||||
Total revenues
|
1,119
|
|
|
1,088
|
|
|
3,501
|
|
|
3,342
|
|
||||
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels
|
409
|
|
|
402
|
|
|
1,266
|
|
|
1,204
|
|
||||
Depreciation and amortization
|
92
|
|
|
87
|
|
|
274
|
|
|
254
|
|
||||
Other direct costs
|
9
|
|
|
8
|
|
|
34
|
|
|
23
|
|
||||
Selling, general, and administrative
|
89
|
|
|
74
|
|
|
278
|
|
|
237
|
|
||||
Other costs from managed properties
|
463
|
|
|
448
|
|
|
1,407
|
|
|
1,385
|
|
||||
Direct and selling, general, and administrative expenses
|
1,062
|
|
|
1,019
|
|
|
3,259
|
|
|
3,103
|
|
||||
Net gains and interest income from marketable securities held to fund operating programs
|
12
|
|
|
12
|
|
|
37
|
|
|
20
|
|
||||
Equity earnings (losses) from unconsolidated hospitality ventures
|
1
|
|
|
25
|
|
|
(1
|
)
|
|
46
|
|
||||
Interest expense
|
(20
|
)
|
|
(20
|
)
|
|
(61
|
)
|
|
(57
|
)
|
||||
Gains (losses) on sales of real estate
|
—
|
|
|
—
|
|
|
34
|
|
|
(21
|
)
|
||||
Other income (loss), net
|
(19
|
)
|
|
4
|
|
|
23
|
|
|
1
|
|
||||
INCOME BEFORE INCOME TAXES
|
31
|
|
|
90
|
|
|
274
|
|
|
228
|
|
||||
PROVISION FOR INCOME TAXES
|
(14
|
)
|
|
(28
|
)
|
|
(100
|
)
|
|
(65
|
)
|
||||
NET INCOME
|
17
|
|
|
62
|
|
|
174
|
|
|
163
|
|
||||
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
|
$
|
16
|
|
|
$
|
62
|
|
|
$
|
173
|
|
|
$
|
163
|
|
EARNINGS PER SHARE
—
Basic
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
0.14
|
|
|
$
|
0.48
|
|
|
$
|
1.38
|
|
|
$
|
1.22
|
|
Net income attributable to Hyatt Hotels Corporation
|
$
|
0.13
|
|
|
$
|
0.48
|
|
|
$
|
1.37
|
|
|
$
|
1.22
|
|
EARNINGS PER SHARE
—
Diluted
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
0.14
|
|
|
$
|
0.47
|
|
|
$
|
1.37
|
|
|
$
|
1.21
|
|
Net income attributable to Hyatt Hotels Corporation
|
$
|
0.13
|
|
|
$
|
0.47
|
|
|
$
|
1.36
|
|
|
$
|
1.21
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
Net income
|
$
|
17
|
|
|
$
|
62
|
|
|
$
|
174
|
|
|
$
|
163
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of tax expense of $- for the three and nine months ended September 30, 2017 and September 30, 2016
|
11
|
|
|
(12
|
)
|
|
71
|
|
|
3
|
|
||||
Unrealized (losses) gains on available-for-sale securities, net of tax (benefit) expense of $(7) and $21 for the three and nine months ended September 30, 2017, respectively, and $(5) and $- for the three and nine months ended September 30, 2016, respectively
|
(12
|
)
|
|
(8
|
)
|
|
33
|
|
|
—
|
|
||||
Unrealized gains on derivative activity, net of tax expense of $- for the three and nine months ended September 30, 2017 and September 30, 2016
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Other comprehensive income (loss)
|
—
|
|
|
(20
|
)
|
|
105
|
|
|
3
|
|
||||
COMPREHENSIVE INCOME
|
17
|
|
|
42
|
|
|
279
|
|
|
166
|
|
||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
|
$
|
16
|
|
|
$
|
42
|
|
|
$
|
278
|
|
|
$
|
166
|
|
|
Nine Months Ended
|
||||||
|
September 30, 2017
|
|
September 30, 2016
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
174
|
|
|
$
|
163
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
274
|
|
|
254
|
|
||
Equity losses (earnings) from unconsolidated hospitality ventures and distributions received
|
27
|
|
|
(21
|
)
|
||
(Gains) losses on sales of real estate
|
(34
|
)
|
|
21
|
|
||
Realized losses from marketable securities
|
40
|
|
|
—
|
|
||
Working capital changes and other
|
(31
|
)
|
|
(66
|
)
|
||
Net cash provided by operating activities
|
450
|
|
|
351
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of marketable securities and short-term investments
|
(365
|
)
|
|
(365
|
)
|
||
Proceeds from marketable securities and short-term investments
|
364
|
|
|
373
|
|
||
Contributions to investments
|
(67
|
)
|
|
(31
|
)
|
||
Return of investments
|
200
|
|
|
78
|
|
||
Acquisitions, net of cash acquired
|
(259
|
)
|
|
(331
|
)
|
||
Capital expenditures
|
(212
|
)
|
|
(140
|
)
|
||
Proceeds from sales of real estate, net of cash disposed
|
296
|
|
|
289
|
|
||
Sales proceeds transferred to escrow as restricted cash
|
(267
|
)
|
|
—
|
|
||
Sales proceeds transferred from escrow to cash and cash equivalents
|
98
|
|
|
29
|
|
||
Other investing activities
|
(16
|
)
|
|
4
|
|
||
Net cash used in investing activities
|
(228
|
)
|
|
(94
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from debt, net of issuance costs of $- and $4, respectively
|
620
|
|
|
520
|
|
||
Repayments of debt
|
(391
|
)
|
|
(435
|
)
|
||
Repurchase of common stock
|
(555
|
)
|
|
(268
|
)
|
||
Proceeds from redeemable noncontrolling interest in preferred shares of a subsidiary
|
9
|
|
|
—
|
|
||
Other financing activities
|
(4
|
)
|
|
(2
|
)
|
||
Net cash used in financing activities
|
(321
|
)
|
|
(185
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
15
|
|
||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(99
|
)
|
|
87
|
|
||
CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR
|
482
|
|
|
457
|
|
||
CASH AND CASH EQUIVALENTS—END OF PERIOD
|
$
|
383
|
|
|
$
|
544
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for interest
|
$
|
77
|
|
|
$
|
73
|
|
Cash paid during the period for income taxes
|
$
|
125
|
|
|
$
|
74
|
|
Non-cash investing and financing activities are as follows:
|
|
|
|
||||
Change in accrued capital expenditures
|
$
|
19
|
|
|
$
|
5
|
|
Non-cash management and franchise agreement intangibles
|
$
|
3
|
|
|
$
|
38
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Equity method investments
|
$
|
175
|
|
|
$
|
180
|
|
Cost method investments
|
24
|
|
|
6
|
|
||
Total investments
|
$
|
199
|
|
|
$
|
186
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Total revenues
|
$
|
196
|
|
|
$
|
326
|
|
|
$
|
649
|
|
|
$
|
952
|
|
Gross operating profit
|
80
|
|
|
110
|
|
|
225
|
|
|
312
|
|
||||
Income from continuing operations
|
38
|
|
|
40
|
|
|
36
|
|
|
118
|
|
||||
Net income
|
38
|
|
|
40
|
|
|
36
|
|
|
118
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Loyalty program
|
$
|
403
|
|
|
$
|
394
|
|
Deferred compensation plans held in rabbi trusts (Note 9)
|
388
|
|
|
352
|
|
||
Captive insurance companies
|
111
|
|
|
65
|
|
||
Total marketable securities held to fund operating programs
|
$
|
902
|
|
|
$
|
811
|
|
Less current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets
|
(155
|
)
|
|
(109
|
)
|
||
Marketable securities held to fund operating programs included in other assets
|
$
|
747
|
|
|
$
|
702
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Loyalty program
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
3
|
|
Deferred compensation plans held in rabbi trusts
|
11
|
|
|
12
|
|
|
35
|
|
|
17
|
|
||||
Total net gains and interest income from marketable securities held to fund operating programs
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
37
|
|
|
$
|
20
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Interest bearing money market funds
|
$
|
47
|
|
|
$
|
106
|
|
Time deposits
|
47
|
|
|
45
|
|
||
Preferred shares
|
—
|
|
|
290
|
|
||
Common shares
|
127
|
|
|
—
|
|
||
Total marketable securities held for investment purposes
|
$
|
221
|
|
|
$
|
441
|
|
Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments
|
(94
|
)
|
|
(151
|
)
|
||
Marketable securities held for investment purposes included in other assets
|
$
|
127
|
|
|
$
|
290
|
|
|
2017
|
|
2016
|
||||
Fair value at January 1
|
$
|
290
|
|
|
$
|
335
|
|
Gross unrealized gains
|
—
|
|
|
19
|
|
||
Gross unrealized losses
|
(54
|
)
|
|
(7
|
)
|
||
Realized losses
|
(40
|
)
|
|
—
|
|
||
Interest income
|
94
|
|
|
—
|
|
||
Cash redemption
|
(290
|
)
|
|
—
|
|
||
Fair value at June 30
|
$
|
—
|
|
|
$
|
347
|
|
Gross unrealized losses
|
—
|
|
|
(13
|
)
|
||
Fair value at September 30
|
$
|
—
|
|
|
$
|
334
|
|
|
September 30, 2017
|
|
Cash and cash equivalents
|
|
Short-term investments
|
|
Prepaids and other assets
|
|
Other assets
|
||||||||||
Level One - Quoted Prices in Active Markets for Identical Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing money market funds
|
$
|
93
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
388
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
388
|
|
|||||
Common shares
|
127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|||||
Level Two - Significant Other Observable Inputs
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
60
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
11
|
|
|||||
U.S. government obligations
|
155
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
116
|
|
|||||
U.S. government agencies
|
50
|
|
|
—
|
|
|
3
|
|
|
8
|
|
|
39
|
|
|||||
Corporate debt securities
|
184
|
|
|
—
|
|
|
4
|
|
|
37
|
|
|
143
|
|
|||||
Mortgage-backed securities
|
21
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
16
|
|
|||||
Asset-backed securities
|
42
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
32
|
|
|||||
Municipal and provincial notes and bonds
|
3
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|||||
Total
|
$
|
1,123
|
|
|
$
|
93
|
|
|
$
|
56
|
|
|
$
|
100
|
|
|
$
|
874
|
|
|
December 31, 2016
|
|
Cash and cash equivalents
|
|
Short-term investments
|
|
Prepaids and other assets
|
|
Other assets
|
||||||||||
Level One - Quoted Prices in Active Markets for Identical Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing money market funds
|
$
|
114
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
352
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
352
|
|
|||||
Level Two - Significant Other Observable Inputs
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
59
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
13
|
|
|||||
U.S. government obligations
|
142
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
109
|
|
|||||
U.S. government agencies
|
53
|
|
|
—
|
|
|
9
|
|
|
8
|
|
|
36
|
|
|||||
Corporate debt securities
|
181
|
|
|
—
|
|
|
1
|
|
|
35
|
|
|
145
|
|
|||||
Mortgage-backed securities
|
22
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
17
|
|
|||||
Asset-backed securities
|
34
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
26
|
|
|||||
Municipal and provincial notes and bonds
|
5
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|||||
Level Three - Significant Unobservable Inputs
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred shares
|
290
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|||||
Total
|
$
|
1,252
|
|
|
$
|
114
|
|
|
$
|
56
|
|
|
$
|
90
|
|
|
$
|
992
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Unsecured financing to hotel owners
|
$
|
126
|
|
|
$
|
119
|
|
Less allowance for losses
|
(107
|
)
|
|
(100
|
)
|
||
Total long-term financing receivables, net
|
$
|
19
|
|
|
$
|
19
|
|
|
2017
|
|
2016
|
||||
Allowance at January 1
|
$
|
100
|
|
|
$
|
98
|
|
Provisions
|
4
|
|
|
4
|
|
||
Other adjustments
|
1
|
|
|
1
|
|
||
Allowance at June 30
|
$
|
105
|
|
|
$
|
103
|
|
Provisions
|
1
|
|
|
3
|
|
||
Other adjustments
|
1
|
|
|
—
|
|
||
Allowance at September 30
|
$
|
107
|
|
|
$
|
106
|
|
|
September 30, 2017
|
||||||||||||||
|
Gross loan balance (principal and interest)
|
|
Related allowance
|
|
Net financing receivables
|
|
Gross receivables on non-accrual status
|
||||||||
Loans
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
Impaired loans (1)
|
60
|
|
|
(60
|
)
|
|
—
|
|
|
60
|
|
||||
Total loans
|
73
|
|
|
(60
|
)
|
|
13
|
|
|
60
|
|
||||
Other financing arrangements
|
53
|
|
|
(47
|
)
|
|
6
|
|
|
47
|
|
||||
Total unsecured financing receivables
|
$
|
126
|
|
|
$
|
(107
|
)
|
|
$
|
19
|
|
|
$
|
107
|
|
|
December 31, 2016
|
||||||||||||||
|
Gross loan balance (principal and interest)
|
|
Related allowance
|
|
Net financing receivables
|
|
Gross receivables on non-accrual status
|
||||||||
Loans
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
Impaired loans (2)
|
56
|
|
|
(56
|
)
|
|
—
|
|
|
56
|
|
||||
Total loans
|
69
|
|
|
(56
|
)
|
|
13
|
|
|
56
|
|
||||
Other financing arrangements
|
50
|
|
|
(44
|
)
|
|
6
|
|
|
44
|
|
||||
Total unsecured financing receivables
|
$
|
119
|
|
|
$
|
(100
|
)
|
|
$
|
19
|
|
|
$
|
100
|
|
|
|
||
Current assets, net of cash acquired
|
$
|
1
|
|
Property and equipment
|
173
|
|
|
Indefinite-lived intangibles (1)
|
37
|
|
|
Management agreement intangibles (2)
|
14
|
|
|
Goodwill (3)
|
19
|
|
|
Other definite-lived intangibles (4)
|
7
|
|
|
Total assets
|
$
|
251
|
|
|
|
||
Current liabilities
|
$
|
12
|
|
Deferred tax liabilities
|
3
|
|
|
Total liabilities
|
15
|
|
|
Total net assets acquired attributable to Hyatt Hotels Corporation
|
236
|
|
|
Total net assets acquired attributable to noncontrolling interests
|
1
|
|
|
Total net assets acquired
|
$
|
237
|
|
|
|
|
September 30, 2017
|
|
Weighted-
average useful
lives in years
|
|
December 31, 2016
|
||||
Management and franchise agreement intangibles
|
$
|
635
|
|
|
25
|
|
$
|
589
|
|
Lease related intangibles
|
126
|
|
|
110
|
|
115
|
|
||
Advanced bookings intangibles
|
12
|
|
|
6
|
|
11
|
|
||
Brand and other intangibles (1)
|
71
|
|
|
11
|
|
22
|
|
||
|
844
|
|
|
|
|
737
|
|
||
Accumulated amortization
|
(162
|
)
|
|
|
|
(138
|
)
|
||
Intangibles, net
|
$
|
682
|
|
|
|
|
$
|
599
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Amortization expense
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
23
|
|
|
$
|
20
|
|
|
September 30, 2017
|
||||||||||||||||||
|
Carrying value
|
|
Fair value
|
|
Quoted prices in active markets for identical assets (level one)
|
|
Significant other observable inputs (level two)
|
|
Significant unobservable inputs (level three)
|
||||||||||
Debt (1)
|
$
|
1,797
|
|
|
$
|
1,904
|
|
|
$
|
—
|
|
|
$
|
1,470
|
|
|
$
|
434
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Carrying value
|
|
Fair value
|
|
Quoted prices in active markets for identical assets (level one)
|
|
Significant other observable inputs (level two)
|
|
Significant unobservable inputs (level three)
|
||||||||||
Debt (2)
|
$
|
1,565
|
|
|
$
|
1,642
|
|
|
$
|
—
|
|
|
$
|
1,450
|
|
|
$
|
192
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Deferred gains on sales of hotel properties
|
$
|
372
|
|
|
$
|
363
|
|
Deferred compensation plans (Note 4)
|
388
|
|
|
352
|
|
||
Loyalty program liability
|
296
|
|
|
296
|
|
||
Guarantee liabilities (Note 11)
|
110
|
|
|
124
|
|
||
Other
|
384
|
|
|
337
|
|
||
Total other long-term liabilities
|
$
|
1,550
|
|
|
$
|
1,472
|
|
|
|
The four managed hotels in France
|
|
Other performance guarantees
|
|
All performance guarantees
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Beginning balance, January 1
|
|
$
|
66
|
|
|
$
|
93
|
|
|
$
|
13
|
|
|
$
|
4
|
|
|
$
|
79
|
|
|
$
|
97
|
|
Initial guarantee obligation liability upon inception
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||||
Amortization of initial guarantee obligation liability into income
|
|
(7
|
)
|
|
(17
|
)
|
|
(2
|
)
|
|
—
|
|
|
(9
|
)
|
|
(17
|
)
|
||||||
Performance guarantee expense (income), net
|
|
41
|
|
|
29
|
|
|
(1
|
)
|
|
(2
|
)
|
|
40
|
|
|
27
|
|
||||||
Net payments during the period
|
|
(49
|
)
|
|
(34
|
)
|
|
(1
|
)
|
|
—
|
|
|
(50
|
)
|
|
(34
|
)
|
||||||
Foreign currency exchange, net
|
|
6
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
3
|
|
||||||
Ending balance, June 30
|
|
$
|
57
|
|
|
$
|
74
|
|
|
$
|
12
|
|
|
$
|
2
|
|
|
$
|
69
|
|
|
$
|
76
|
|
Amortization of initial guarantee obligation liability into income
|
|
(4
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
(8
|
)
|
||||||
Performance guarantee expense, net
|
|
13
|
|
|
13
|
|
|
1
|
|
|
—
|
|
|
14
|
|
|
13
|
|
||||||
Net (payments) receipts during the period
|
|
(16
|
)
|
|
(10
|
)
|
|
1
|
|
|
1
|
|
|
(15
|
)
|
|
(9
|
)
|
||||||
Foreign currency exchange, net
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
||||||
Ending balance, September 30
|
|
$
|
53
|
|
|
$
|
70
|
|
|
$
|
13
|
|
|
$
|
3
|
|
|
$
|
66
|
|
|
$
|
73
|
|
Property description
|
|
Maximum potential future payments
|
|
Maximum exposure net of recoverability from third parties
|
|
Other long-term liabilities recorded at September 30, 2017
|
|
Other long-term liabilities recorded at December 31, 2016
|
|
Year of guarantee expiration
|
||||||||
Hotel property in Washington State
(1), (3), (4), (5)
|
|
$
|
215
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
35
|
|
|
2020
|
Hotel properties in India (2), (3)
|
|
184
|
|
|
184
|
|
|
18
|
|
|
21
|
|
|
2020
|
||||
Hotel property in Brazil (1)
|
|
80
|
|
|
40
|
|
|
2
|
|
|
3
|
|
|
2020
|
||||
Hotel property in Minnesota
|
|
25
|
|
|
25
|
|
|
2
|
|
|
2
|
|
|
2021
|
||||
Hotel property in Arizona (1), (4)
|
|
25
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
2019
|
||||
Hotel properties in California (1)
|
|
31
|
|
|
13
|
|
|
6
|
|
|
6
|
|
|
various, through 2021
|
||||
Other (1)
|
|
20
|
|
|
14
|
|
|
2
|
|
|
—
|
|
|
various, through 2021
|
||||
Total
|
|
$
|
580
|
|
|
$
|
276
|
|
|
$
|
60
|
|
|
$
|
69
|
|
|
|
|
Stockholders'
equity
|
|
Noncontrolling interests
in consolidated
subsidiaries
|
|
Total equity
|
||||||
Balance at January 1, 2017
|
$
|
3,903
|
|
|
$
|
5
|
|
|
$
|
3,908
|
|
Net income attributable to Hyatt Hotels Corporation
|
173
|
|
|
—
|
|
|
173
|
|
|||
Other comprehensive income
|
105
|
|
|
—
|
|
|
105
|
|
|||
Contributions from noncontrolling interests
|
—
|
|
|
1
|
|
|
1
|
|
|||
Repurchase of common stock
|
(555
|
)
|
|
—
|
|
|
(555
|
)
|
|||
Directors compensation
|
2
|
|
|
—
|
|
|
2
|
|
|||
Employee stock plan issuance
|
3
|
|
|
—
|
|
|
3
|
|
|||
Share-based payment activity
|
20
|
|
|
—
|
|
|
20
|
|
|||
Balance at September 30, 2017
|
$
|
3,651
|
|
|
$
|
6
|
|
|
$
|
3,657
|
|
|
|
|
|
|
|
||||||
|
Stockholders'
equity |
|
Noncontrolling interests
in consolidated subsidiaries |
|
Total equity
|
||||||
Balance at January 1, 2016
|
$
|
3,991
|
|
|
$
|
4
|
|
|
$
|
3,995
|
|
Net income attributable to Hyatt Hotels Corporation
|
163
|
|
|
—
|
|
|
163
|
|
|||
Other comprehensive income
|
3
|
|
|
—
|
|
|
3
|
|
|||
Repurchase of common stock
|
(268
|
)
|
|
—
|
|
|
(268
|
)
|
|||
Directors compensation
|
2
|
|
|
—
|
|
|
2
|
|
|||
Employee stock plan issuance
|
3
|
|
|
—
|
|
|
3
|
|
|||
Share-based payment activity
|
19
|
|
|
—
|
|
|
19
|
|
|||
Balance at September 30, 2016
|
$
|
3,913
|
|
|
$
|
4
|
|
|
$
|
3,917
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
SARs
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
9
|
|
RSUs
|
3
|
|
|
2
|
|
|
14
|
|
|
13
|
|
||||
PSUs and PSs
|
1
|
|
|
(2
|
)
|
|
2
|
|
|
(1
|
)
|
||||
Total stock-based compensation recorded within selling, general, and administrative expenses
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
26
|
|
|
$
|
21
|
|
•
|
Owned and leased hotels
—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions at our owned and leased hotels related to our co-branded credit card, which are eliminated in consolidation.
|
•
|
Americas management and franchising
—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in the United States, Latin America, Canada and the Caribbean. This segment's revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to payroll costs at managed properties where the Company is the employer. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees earned from the Company's owned hotels, which are eliminated in consolidation.
|
•
|
ASPAC management and franchising
—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Southeast Asia, as well as Greater China, Australia, South Korea, Japan and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, marketing and technology costs. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees earned from the Company's owned hotels, which are eliminated in consolidation.
|
•
|
EAME/SW Asia management and franchising
—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Europe,
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Owned and leased hotels
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels revenues
|
$
|
505
|
|
|
$
|
519
|
|
|
$
|
1,625
|
|
|
$
|
1,594
|
|
Other revenues
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||
Intersegment revenues (a)
|
3
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Adjusted EBITDA
|
104
|
|
|
120
|
|
|
383
|
|
|
400
|
|
||||
Depreciation and amortization
|
75
|
|
|
71
|
|
|
222
|
|
|
211
|
|
||||
Americas management and franchising
|
|
|
|
|
|
|
|
||||||||
Management and franchise fees revenues
|
95
|
|
|
90
|
|
|
308
|
|
|
281
|
|
||||
Other revenues from managed properties
|
419
|
|
|
409
|
|
|
1,278
|
|
|
1,266
|
|
||||
Intersegment revenues (a)
|
15
|
|
|
16
|
|
|
58
|
|
|
57
|
|
||||
Adjusted EBITDA
|
82
|
|
|
77
|
|
|
269
|
|
|
242
|
|
||||
Depreciation and amortization
|
5
|
|
|
5
|
|
|
14
|
|
|
14
|
|
||||
ASPAC management and franchising
|
|
|
|
|
|
|
|
||||||||
Management and franchise fees revenues
|
27
|
|
|
23
|
|
|
79
|
|
|
67
|
|
||||
Other revenues from managed properties
|
26
|
|
|
24
|
|
|
78
|
|
|
72
|
|
||||
Intersegment revenues (a)
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Adjusted EBITDA
|
17
|
|
|
14
|
|
|
48
|
|
|
38
|
|
||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
EAME/SW Asia management and franchising
|
|
|
|
|
|
|
|
||||||||
Management and franchise fees revenues
|
18
|
|
|
15
|
|
|
51
|
|
|
47
|
|
||||
Other revenues from managed properties
|
18
|
|
|
15
|
|
|
51
|
|
|
47
|
|
||||
Intersegment revenues (a)
|
3
|
|
|
2
|
|
|
7
|
|
|
8
|
|
||||
Adjusted EBITDA
|
11
|
|
|
8
|
|
|
28
|
|
|
24
|
|
||||
Depreciation and amortization
|
1
|
|
|
1
|
|
|
4
|
|
|
4
|
|
||||
Corporate and other
|
|
|
|
|
|
|
|
||||||||
Revenues
|
32
|
|
|
12
|
|
|
91
|
|
|
34
|
|
||||
Adjusted EBITDA
|
(35
|
)
|
|
(27
|
)
|
|
(93
|
)
|
|
(91
|
)
|
||||
Depreciation and amortization
|
11
|
|
|
10
|
|
|
33
|
|
|
24
|
|
||||
Eliminations
|
|
|
|
|
|
|
|
||||||||
Revenues (a)
|
(21
|
)
|
|
(19
|
)
|
|
(73
|
)
|
|
(66
|
)
|
||||
Adjusted EBITDA
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
TOTAL
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
1,119
|
|
|
$
|
1,088
|
|
|
$
|
3,501
|
|
|
$
|
3,342
|
|
Adjusted EBITDA
|
180
|
|
|
192
|
|
|
637
|
|
|
613
|
|
||||
Depreciation and amortization
|
92
|
|
|
87
|
|
|
274
|
|
|
254
|
|
(a)
|
Intersegment revenues are included in the management and franchise fees revenues and owned and leased hotels revenues and in Eliminations.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income attributable to Hyatt Hotels Corporation
|
$
|
16
|
|
|
$
|
62
|
|
|
$
|
173
|
|
|
$
|
163
|
|
Interest expense
|
20
|
|
|
20
|
|
|
61
|
|
|
57
|
|
||||
Provision for income taxes
|
14
|
|
|
28
|
|
|
100
|
|
|
65
|
|
||||
Depreciation and amortization
|
92
|
|
|
87
|
|
|
274
|
|
|
254
|
|
||||
EBITDA
|
142
|
|
|
197
|
|
|
608
|
|
|
539
|
|
||||
Equity (earnings) losses from unconsolidated hospitality ventures
|
(1
|
)
|
|
(25
|
)
|
|
1
|
|
|
(46
|
)
|
||||
Stock-based compensation expense (Note 13)
|
5
|
|
|
1
|
|
|
26
|
|
|
21
|
|
||||
(Gains) losses on sales of real estate (Note 6)
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
21
|
|
||||
Other (income) loss, net (Note 17)
|
19
|
|
|
(4
|
)
|
|
(23
|
)
|
|
(1
|
)
|
||||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
15
|
|
|
23
|
|
|
59
|
|
|
79
|
|
||||
Adjusted EBITDA
|
$
|
180
|
|
|
$
|
192
|
|
|
$
|
637
|
|
|
$
|
613
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
17
|
|
|
$
|
62
|
|
|
$
|
174
|
|
|
$
|
163
|
|
Net income and accretion attributable to noncontrolling interests
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Net income attributable to Hyatt Hotels Corporation
|
$
|
16
|
|
|
$
|
62
|
|
|
$
|
173
|
|
|
$
|
163
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
124,010,961
|
|
|
131,917,434
|
|
|
126,399,472
|
|
|
133,672,570
|
|
||||
Share-based compensation and equity-classified forward contract
|
1,396,922
|
|
|
1,146,718
|
|
|
1,315,462
|
|
|
933,563
|
|
||||
Diluted weighted average shares outstanding
|
125,407,883
|
|
|
133,064,152
|
|
|
127,714,934
|
|
|
134,606,133
|
|
||||
Basic Earnings Per Share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
0.14
|
|
|
$
|
0.48
|
|
|
$
|
1.38
|
|
|
$
|
1.22
|
|
Net income and accretion attributable to noncontrolling interests
|
(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
||||
Net income attributable to Hyatt Hotels Corporation
|
$
|
0.13
|
|
|
$
|
0.48
|
|
|
$
|
1.37
|
|
|
$
|
1.22
|
|
Diluted Earnings Per Share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
0.14
|
|
|
$
|
0.47
|
|
|
$
|
1.37
|
|
|
$
|
1.21
|
|
Net income and accretion attributable to noncontrolling interests
|
(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
||||
Net income attributable to Hyatt Hotels Corporation
|
$
|
0.13
|
|
|
$
|
0.47
|
|
|
$
|
1.36
|
|
|
$
|
1.21
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
SARs
|
29,100
|
|
|
73,300
|
|
|
32,300
|
|
|
80,400
|
|
RSUs
|
400
|
|
|
—
|
|
|
200
|
|
|
4,200
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest income (Note 4)
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
99
|
|
|
$
|
5
|
|
Depreciation recovery
|
7
|
|
|
8
|
|
|
19
|
|
|
19
|
|
||||
Performance guarantee liability amortization (Note 11)
|
5
|
|
|
8
|
|
|
14
|
|
|
25
|
|
||||
Debt repayment guarantee liability amortization (Note 11)
|
2
|
|
|
—
|
|
|
8
|
|
|
1
|
|
||||
Cease use liability
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
||||
Realized losses (Note 4)
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
||||
Performance guarantee expense, net (Note 11)
|
(14
|
)
|
|
(13
|
)
|
|
(54
|
)
|
|
(40
|
)
|
||||
Other
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(9
|
)
|
||||
Other income (loss), net
|
$
|
(19
|
)
|
|
$
|
4
|
|
|
$
|
23
|
|
|
$
|
1
|
|
•
|
291
managed properties (
94,685
rooms), all of which we operate under management agreements with third-party property owners;
|
•
|
333
franchised properties (
54,959
rooms), all of which are owned by third parties that have franchise agreements with us and are operated by third parties;
|
•
|
33
owned properties (
16,803
rooms) (including
1
consolidated hospitality venture),
1
capital leased property (
171
rooms), and
7
operating leased properties (
2,411
rooms), all of which we manage; and
|
•
|
23
managed properties and
6
franchised properties owned or leased by unconsolidated hospitality ventures (
8,231
rooms).
|
•
|
3
destination wellness resorts (
399
rooms), all of which we own and operate (including
1
consolidated hospitality venture);
|
•
|
6
all inclusive resorts (
2,401
rooms), all of which are owned by a third party in which we hold a common share investment and which operates the resorts under franchise agreements with us;
|
•
|
16
vacation ownership properties, all of which are licensed by Interval Leisure Group ("ILG") under the Hyatt Residence Club brand and operated by third parties, including ILG and its affiliates; and
|
•
|
20
residential properties, which consist of branded residences and serviced apartments. We manage all of the serviced apartments and those branded residential units that participate in a rental program with an adjacent Hyatt-branded hotel.
|
•
|
Owned and leased hotels, which consists of our owned and leased full service and select service hotels and, for purposes of segment Adjusted EBITDA, our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture;
|
•
|
Americas management and franchising, which consists of our management and franchising of properties located in the United States, Latin America, Canada and the Caribbean;
|
•
|
ASPAC management and franchising, which consists of our management and franchising of properties located in Southeast Asia, as well as Greater China, Australia, South Korea, Japan and Micronesia; and
|
•
|
EAME/SW Asia management and franchising, which consists of our management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia and Nepal.
|
•
|
acquired exhale for $16 million, net of $1 million cash acquired; and
|
•
|
repurchased $100 million of our Class A common stock under our August 2017 ASR and approximately
$107 million
of our Class B common stock to return capital to our shareholders.
|
|
|
|
|
RevPAR
|
||||||||||||
|
|
|
|
Three Months Ended September 30,
|
||||||||||||
(Comparable locations)
|
|
Number of comparable hotels (1)
|
|
2017
|
|
2016
|
|
Change
|
|
Change (in constant $)
|
||||||
Systemwide hotels
|
|
594
|
|
$
|
140
|
|
|
$
|
138
|
|
|
1.7
|
%
|
|
1.6
|
%
|
Owned and leased hotels
|
|
37
|
|
$
|
174
|
|
|
$
|
175
|
|
|
(0.5
|
)%
|
|
(1.1
|
)%
|
Americas full service hotels
|
|
152
|
|
$
|
157
|
|
|
$
|
157
|
|
|
(0.1
|
)%
|
|
(0.3
|
)%
|
Americas select service hotels
|
|
298
|
|
$
|
113
|
|
|
$
|
112
|
|
|
1.7
|
%
|
|
1.7
|
%
|
ASPAC full service hotels
|
|
70
|
|
$
|
149
|
|
|
$
|
142
|
|
|
5.0
|
%
|
|
6.3
|
%
|
EAME/SW Asia full service hotels
|
|
63
|
|
$
|
123
|
|
|
$
|
117
|
|
|
5.6
|
%
|
|
3.5
|
%
|
EAME/SW Asia select service hotels
|
|
10
|
|
$
|
72
|
|
|
$
|
62
|
|
|
15.0
|
%
|
|
11.6
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|
Currency Impact
|
|||||||||||
Comparable owned and leased hotels revenues
|
$
|
469
|
|
|
$
|
471
|
|
|
$
|
(2
|
)
|
|
(0.4
|
)%
|
|
$
|
3
|
|
Non-comparable owned and leased hotels revenues
|
49
|
|
|
48
|
|
|
1
|
|
|
1.6
|
%
|
|
—
|
|
||||
Total owned and leased hotels revenues
|
$
|
518
|
|
|
$
|
519
|
|
|
$
|
(1
|
)
|
|
(0.2
|
)%
|
|
$
|
3
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|
Currency Impact
|
|||||||||||
Comparable owned and leased hotels revenues
|
$
|
1,451
|
|
|
$
|
1,459
|
|
|
$
|
(8
|
)
|
|
(0.6
|
)%
|
|
$
|
(3
|
)
|
Non-comparable owned and leased hotels revenues
|
216
|
|
|
135
|
|
|
81
|
|
|
60.5
|
%
|
|
(1
|
)
|
||||
Total owned and leased hotels revenues
|
$
|
1,667
|
|
|
$
|
1,594
|
|
|
$
|
73
|
|
|
4.6
|
%
|
|
$
|
(4
|
)
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Base management fees
|
$
|
51
|
|
|
$
|
49
|
|
|
$
|
2
|
|
|
5.4
|
%
|
Incentive management fees
|
30
|
|
|
25
|
|
|
5
|
|
|
21.4
|
%
|
|||
Franchise fees
|
30
|
|
|
27
|
|
|
3
|
|
|
11.9
|
%
|
|||
Other fee revenues
|
11
|
|
|
9
|
|
|
2
|
|
|
23.4
|
%
|
|||
Total management and franchise fees
|
$
|
122
|
|
|
$
|
110
|
|
|
$
|
12
|
|
|
12.2
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Base management fees
|
$
|
150
|
|
|
$
|
143
|
|
|
$
|
7
|
|
|
5.2
|
%
|
Incentive management fees
|
99
|
|
|
85
|
|
|
14
|
|
|
16.4
|
%
|
|||
Franchise fees
|
86
|
|
|
77
|
|
|
9
|
|
|
11.9
|
%
|
|||
Other fee revenues
|
39
|
|
|
27
|
|
|
12
|
|
|
43.6
|
%
|
|||
Total management and franchise fees
|
$
|
374
|
|
|
$
|
332
|
|
|
$
|
42
|
|
|
12.8
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
Other revenues from managed properties
|
$
|
463
|
|
|
$
|
448
|
|
|
$
|
15
|
|
|
3.1
|
%
|
Less: rabbi trust impact
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
2.7
|
%
|
|||
Other revenues from managed properties excluding rabbi trust impact
|
$
|
458
|
|
|
$
|
443
|
|
|
$
|
15
|
|
|
3.2
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
Other revenues from managed properties
|
$
|
1,407
|
|
|
$
|
1,385
|
|
|
$
|
22
|
|
|
1.6
|
%
|
Less: rabbi trust impact
|
(16
|
)
|
|
(7
|
)
|
|
(9
|
)
|
|
(119.1
|
)%
|
|||
Other revenues from managed properties excluding rabbi trust impact
|
$
|
1,391
|
|
|
$
|
1,378
|
|
|
$
|
13
|
|
|
0.9
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Comparable owned and leased hotels expense
|
$
|
361
|
|
|
$
|
360
|
|
|
$
|
(1
|
)
|
|
(0.1
|
)%
|
Non-comparable owned and leased hotels expense
|
46
|
|
|
40
|
|
|
(6
|
)
|
|
(16.4
|
)%
|
|||
Rabbi trust impact
|
2
|
|
|
2
|
|
|
—
|
|
|
2.7
|
%
|
|||
Total owned and leased hotels expense
|
$
|
409
|
|
|
$
|
402
|
|
|
$
|
(7
|
)
|
|
(1.7
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Comparable owned and leased hotels expense
|
$
|
1,090
|
|
|
$
|
1,088
|
|
|
$
|
(2
|
)
|
|
(0.1
|
)%
|
Non-comparable owned and leased hotels expense
|
170
|
|
|
113
|
|
|
(57
|
)
|
|
(51.1
|
)%
|
|||
Rabbi trust impact
|
6
|
|
|
3
|
|
|
(3
|
)
|
|
(119.1
|
)%
|
|||
Total owned and leased hotels expense
|
$
|
1,266
|
|
|
$
|
1,204
|
|
|
$
|
(62
|
)
|
|
(5.2
|
)%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
Selling, general, and administrative expenses
|
$
|
89
|
|
|
$
|
74
|
|
|
$
|
15
|
|
|
20.2
|
%
|
Less: rabbi trust impact
|
(9
|
)
|
|
(10
|
)
|
|
1
|
|
|
3.4
|
%
|
|||
Less: stock-based compensation expense
|
(5
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(171.4
|
)%
|
|||
Adjusted selling, general, and administrative expenses
|
$
|
75
|
|
|
$
|
63
|
|
|
$
|
12
|
|
|
19.5
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
Selling, general, and administrative expenses
|
$
|
278
|
|
|
$
|
237
|
|
|
$
|
41
|
|
|
17.2
|
%
|
Less: rabbi trust impact
|
(29
|
)
|
|
(14
|
)
|
|
(15
|
)
|
|
(115.4
|
)%
|
|||
Less: stock-based compensation expense
|
(26
|
)
|
|
(21
|
)
|
|
(5
|
)
|
|
(19.0
|
)%
|
|||
Adjusted selling, general, and administrative expenses
|
$
|
223
|
|
|
$
|
202
|
|
|
$
|
21
|
|
|
10.4
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Rabbi trust impact allocated to selling, general, and administrative expenses
|
$
|
9
|
|
|
$
|
10
|
|
|
$
|
(1
|
)
|
|
(3.4
|
)%
|
Rabbi trust impact allocated to owned and leased hotels expense
|
2
|
|
|
2
|
|
|
—
|
|
|
(2.7
|
)%
|
|||
Net gains and interest income from marketable securities held to fund our loyalty program allocated to owned and leased hotels revenues
|
1
|
|
|
—
|
|
|
1
|
|
|
101.5
|
%
|
|||
Net gains and interest income from marketable securities held to fund operating programs
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
(1.3
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Rabbi trust impact allocated to selling, general, and administrative expenses
|
$
|
29
|
|
|
$
|
14
|
|
|
$
|
15
|
|
|
115.4
|
%
|
Rabbi trust impact allocated to owned and leased hotels expense
|
6
|
|
|
3
|
|
|
3
|
|
|
119.1
|
%
|
|||
Net gains and interest income from marketable securities held to fund our loyalty program allocated to owned and leased hotels revenues
|
2
|
|
|
3
|
|
|
(1
|
)
|
|
(48.8
|
)%
|
|||
Net gains and interest income from marketable securities held to fund operating programs
|
$
|
37
|
|
|
$
|
20
|
|
|
$
|
17
|
|
|
89.4
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Equity earnings (losses) from unconsolidated hospitality ventures
|
$
|
1
|
|
|
$
|
25
|
|
|
$
|
(24
|
)
|
|
(96.7
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Equity earnings (losses) from unconsolidated hospitality ventures
|
$
|
(1
|
)
|
|
$
|
46
|
|
|
$
|
(47
|
)
|
|
(101.3
|
)%
|
•
|
decreases of $20 million and $23 million, respectively, as 2016 included equity earnings attributable to distributions from two of our unconsolidated hospitality ventures as a result of debt refinancings; and
|
•
|
decreases of $5 million and $8 million, respectively, due to foreign currency volatility at one of our foreign unconsolidated hospitality ventures which has debt denominated in a currency other than its functional currency.
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Income before income taxes
|
$
|
31
|
|
|
$
|
90
|
|
|
$
|
(59
|
)
|
|
(65.7
|
)%
|
Provision for income taxes
|
(14
|
)
|
|
(28
|
)
|
|
14
|
|
|
49.4
|
%
|
|||
Effective tax rate
|
44.5
|
%
|
|
30.2
|
%
|
|
|
|
|
(14.3
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Income before income taxes
|
$
|
274
|
|
|
$
|
228
|
|
|
$
|
46
|
|
|
20.3
|
%
|
Provision for income taxes
|
(100
|
)
|
|
(65
|
)
|
|
(35
|
)
|
|
(54.0
|
)%
|
|||
Effective tax rate
|
36.4
|
%
|
|
28.4
|
%
|
|
|
|
(8.0
|
)%
|
|
Three Months Ended September 30,
|
|||||||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|
Currency Impact
|
|||||||||||
Comparable owned and leased hotels revenues
|
$
|
472
|
|
|
$
|
471
|
|
|
$
|
1
|
|
|
0.1
|
%
|
|
$
|
3
|
|
Non-comparable owned and leased hotels revenues
|
33
|
|
|
48
|
|
|
(15
|
)
|
|
(30.6
|
)%
|
|
—
|
|
||||
Total owned and leased hotels revenues
|
505
|
|
|
519
|
|
|
(14
|
)
|
|
(2.7
|
)%
|
|
3
|
|
||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
||||
Total segment revenues
|
$
|
505
|
|
|
$
|
519
|
|
|
$
|
(14
|
)
|
|
(2.7
|
)%
|
|
$
|
3
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|
Currency Impact
|
|||||||||||
Comparable owned and leased hotels revenues
|
$
|
1,458
|
|
|
$
|
1,459
|
|
|
$
|
(1
|
)
|
|
(0.1
|
)%
|
|
$
|
(3
|
)
|
Non-comparable owned and leased hotels revenues
|
167
|
|
|
135
|
|
|
32
|
|
|
24.4
|
%
|
|
(1
|
)
|
||||
Total owned and leased hotels revenues
|
1,625
|
|
|
1,594
|
|
|
31
|
|
|
2.0
|
%
|
|
(4
|
)
|
||||
Other revenues
|
13
|
|
|
—
|
|
|
13
|
|
|
NM
|
|
|
—
|
|
||||
Total segment revenues
|
$
|
1,638
|
|
|
$
|
1,594
|
|
|
$
|
44
|
|
|
2.8
|
%
|
|
$
|
(4
|
)
|
•
|
the dispositions of Hyatt Regency Grand Cypress and Hyatt Regency Louisville in 2017, and Hyatt Regency Birmingham in 2016; and
|
•
|
Grand Hyatt Rio de Janeiro, which experienced a decline in demand and ADR, as the third quarter of 2016 benefited from the Olympic Games in Brazil.
|
•
|
the acquisition of our partners' interests in Andaz Maui at Wailea Resort in 2016; and
|
•
|
the acquisitions of Royal Palms Resort and Spa and The Confidante Miami Beach in 2016.
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|||||||||||||||
Comparable owned and leased hotels
|
$
|
174
|
|
|
$
|
175
|
|
|
(0.5
|
)%
|
|
(1.1
|
)%
|
|
78.1
|
%
|
|
79.7
|
%
|
|
(1.6
|
)%
|
|
$
|
224
|
|
|
$
|
220
|
|
|
1.6
|
%
|
|
1.0
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|||||||||||||||
Comparable owned and leased hotels
|
$
|
176
|
|
|
$
|
176
|
|
|
(0.2
|
)%
|
|
—
|
%
|
|
77.5
|
%
|
|
78.2
|
%
|
|
(0.7
|
)%
|
|
$
|
226
|
|
|
$
|
225
|
|
|
0.7
|
%
|
|
0.9
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Owned and leased hotels Adjusted EBITDA
|
$
|
89
|
|
|
$
|
97
|
|
|
$
|
(8
|
)
|
|
(7.9
|
)%
|
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
15
|
|
|
23
|
|
|
(8
|
)
|
|
(38.0
|
)%
|
|||
Segment Adjusted EBITDA
|
$
|
104
|
|
|
$
|
120
|
|
|
$
|
(16
|
)
|
|
(13.8
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Owned and leased hotels Adjusted EBITDA
|
$
|
324
|
|
|
$
|
321
|
|
|
$
|
3
|
|
|
1.0
|
%
|
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
59
|
|
|
79
|
|
|
(20
|
)
|
|
(26.4
|
)%
|
|||
Segment Adjusted EBITDA
|
$
|
383
|
|
|
$
|
400
|
|
|
$
|
(17
|
)
|
|
(4.4
|
)%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise and other fees
|
$
|
95
|
|
|
$
|
90
|
|
|
$
|
5
|
|
|
5.9
|
%
|
Other revenues from managed properties
|
419
|
|
|
409
|
|
|
10
|
|
|
2.2
|
%
|
|||
Total segment revenues
|
$
|
514
|
|
|
$
|
499
|
|
|
$
|
15
|
|
|
2.9
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise and other fees
|
$
|
308
|
|
|
$
|
281
|
|
|
$
|
27
|
|
|
9.7
|
%
|
Other revenues from managed properties
|
1,278
|
|
|
1,266
|
|
|
12
|
|
|
0.9
|
%
|
|||
Total segment revenues
|
$
|
1,586
|
|
|
$
|
1,547
|
|
|
$
|
39
|
|
|
2.5
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
(Comparable Systemwide Hotels)
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|||||||||||||||
Americas Full Service
|
$
|
157
|
|
|
$
|
157
|
|
|
(0.1
|
)%
|
|
(0.3
|
)%
|
|
79.1
|
%
|
|
79.4
|
%
|
|
(0.3
|
)%
|
|
$
|
199
|
|
|
$
|
198
|
|
|
0.4
|
%
|
|
0.2
|
%
|
Americas Select Service
|
$
|
113
|
|
|
$
|
112
|
|
|
1.7
|
%
|
|
1.7
|
%
|
|
82.4
|
%
|
|
81.3
|
%
|
|
1.1
|
%
|
|
$
|
138
|
|
|
$
|
137
|
|
|
0.4
|
%
|
|
0.4
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
(Comparable Systemwide Hotels)
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|||||||||||||||
Americas Full Service
|
$
|
157
|
|
|
$
|
154
|
|
|
2.1
|
%
|
|
2.1
|
%
|
|
77.2
|
%
|
|
76.9
|
%
|
|
0.3
|
%
|
|
$
|
204
|
|
|
$
|
201
|
|
|
1.7
|
%
|
|
1.7
|
%
|
Americas Select Service
|
$
|
110
|
|
|
$
|
107
|
|
|
2.4
|
%
|
|
2.4
|
%
|
|
79.6
|
%
|
|
78.8
|
%
|
|
0.8
|
%
|
|
$
|
138
|
|
|
$
|
136
|
|
|
1.3
|
%
|
|
1.3
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
82
|
|
|
$
|
77
|
|
|
$
|
5
|
|
|
6.8
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
269
|
|
|
$
|
242
|
|
|
$
|
27
|
|
|
11.3
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise and other fees
|
$
|
27
|
|
|
$
|
23
|
|
|
$
|
4
|
|
|
17.8
|
%
|
Other revenues from managed properties
|
26
|
|
|
24
|
|
|
2
|
|
|
10.1
|
%
|
|||
Total segment revenues
|
$
|
53
|
|
|
$
|
47
|
|
|
$
|
6
|
|
|
13.9
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise and other fees
|
$
|
79
|
|
|
$
|
67
|
|
|
$
|
12
|
|
|
17.6
|
%
|
Other revenues from managed properties
|
78
|
|
|
72
|
|
|
6
|
|
|
8.3
|
%
|
|||
Total segment revenues
|
$
|
157
|
|
|
$
|
139
|
|
|
$
|
18
|
|
|
12.8
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
(Comparable Systemwide Hotels)
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better (Worse) Constant $
|
|||||||||||||||
ASPAC Full Service
|
$
|
149
|
|
|
$
|
142
|
|
|
5.0
|
%
|
|
6.3
|
%
|
|
75.0
|
%
|
|
70.7
|
%
|
|
4.3
|
%
|
|
$
|
199
|
|
|
$
|
201
|
|
|
(1.0
|
)%
|
|
0.2
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
(Comparable Systemwide Hotels)
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better (Worse) Constant $
|
|||||||||||||||
ASPAC Full Service
|
$
|
144
|
|
|
$
|
137
|
|
|
5.1
|
%
|
|
6.2
|
%
|
|
72.0
|
%
|
|
66.9
|
%
|
|
5.1
|
%
|
|
$
|
200
|
|
|
$
|
205
|
|
|
(2.4
|
)%
|
|
(1.3
|
)%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
17
|
|
|
$
|
14
|
|
|
$
|
3
|
|
|
19.9
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
48
|
|
|
$
|
38
|
|
|
$
|
10
|
|
|
26.5
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise and other fees
|
$
|
18
|
|
|
$
|
15
|
|
|
$
|
3
|
|
|
18.6
|
%
|
Other revenues from managed properties
|
18
|
|
|
15
|
|
|
3
|
|
|
16.8
|
%
|
|||
Total segment revenues
|
$
|
36
|
|
|
$
|
30
|
|
|
$
|
6
|
|
|
17.7
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise and other fees
|
$
|
51
|
|
|
$
|
47
|
|
|
$
|
4
|
|
|
7.3
|
%
|
Other revenues from managed properties
|
51
|
|
|
47
|
|
|
4
|
|
|
8.7
|
%
|
|||
Total segment revenues
|
$
|
102
|
|
|
$
|
94
|
|
|
$
|
8
|
|
|
8.0
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
(Comparable Systemwide Hotels)
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|||||||||||||||
EAME/SW Asia Full Service
|
$
|
123
|
|
|
$
|
117
|
|
|
5.6
|
%
|
|
3.5
|
%
|
|
66.0
|
%
|
|
64.4
|
%
|
|
1.6
|
%
|
|
$
|
187
|
|
|
$
|
181
|
|
|
3.0
|
%
|
|
0.9
|
%
|
EAME/SW Asia Select Service
|
$
|
72
|
|
|
$
|
62
|
|
|
15.0
|
%
|
|
11.6
|
%
|
|
77.4
|
%
|
|
71.1
|
%
|
|
6.3
|
%
|
|
$
|
93
|
|
|
$
|
88
|
|
|
5.7
|
%
|
|
2.6
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||||||||||||||||||||
(Comparable Systemwide Hotels)
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|
2017
|
|
2016
|
|
Change in
Occ % pts |
|
2017
|
|
2016
|
|
Better /
(Worse) |
|
Better / (Worse) Constant $
|
|||||||||||||||
EAME/SW Asia Full Service
|
$
|
120
|
|
|
$
|
116
|
|
|
3.3
|
%
|
|
3.9
|
%
|
|
66.0
|
%
|
|
63.2
|
%
|
|
2.8
|
%
|
|
$
|
182
|
|
|
$
|
184
|
|
|
(1.1
|
)%
|
|
(0.5
|
)%
|
EAME/SW Asia Select Service
|
$
|
70
|
|
|
$
|
62
|
|
|
13.1
|
%
|
|
12.3
|
%
|
|
73.1
|
%
|
|
65.9
|
%
|
|
7.2
|
%
|
|
$
|
95
|
|
|
$
|
93
|
|
|
2.0
|
%
|
|
1.3
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
11
|
|
|
$
|
8
|
|
|
$
|
3
|
|
|
41.3
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
28
|
|
|
$
|
24
|
|
|
$
|
4
|
|
|
15.6
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Corporate and other revenues
|
$
|
32
|
|
|
$
|
12
|
|
|
$
|
20
|
|
|
175.6
|
%
|
Corporate and other Adjusted EBITDA
|
$
|
(35
|
)
|
|
$
|
(27
|
)
|
|
$
|
(8
|
)
|
|
(25.9
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Better / (Worse)
|
|||||||||
Corporate and other revenues
|
$
|
91
|
|
|
$
|
34
|
|
|
$
|
57
|
|
|
174.1
|
%
|
Corporate and other Adjusted EBITDA
|
$
|
(93
|
)
|
|
$
|
(91
|
)
|
|
$
|
(2
|
)
|
|
(1.8
|
)%
|
•
|
increases of
$16 million
and
$49 million
, respectively, due to the acquisition of Miraval;
|
•
|
increased revenue from our co-branded credit card program of $2 million and $6 million, respectively, as a result of increased point sales and our new agreement that took effect in the second quarter of 2017; and
|
•
|
the acquisition of exhale.
|
•
|
interest expense;
|
•
|
provision for income taxes;
|
•
|
depreciation and amortization;
|
•
|
equity earnings (losses) from unconsolidated hospitality ventures;
|
•
|
stock-based compensation expense;
|
•
|
gains (losses) on sales of real estate; and
|
•
|
other income (loss), net
.
|
|
Three Months Ended September 30,
|
|||||||||||||
2017
|
|
2016
|
|
Change
|
||||||||||
Net income attributable to Hyatt Hotels Corporation
|
$
|
16
|
|
|
$
|
62
|
|
|
$
|
(46
|
)
|
|
(73.4
|
)%
|
Interest expense
|
20
|
|
|
20
|
|
|
—
|
|
|
3.6
|
%
|
|||
Provision for income taxes
|
14
|
|
|
28
|
|
|
(14
|
)
|
|
(49.4
|
)%
|
|||
Depreciation and amortization
|
92
|
|
|
87
|
|
|
5
|
|
|
5.8
|
%
|
|||
EBITDA
|
142
|
|
|
197
|
|
|
(55
|
)
|
|
(27.3
|
)%
|
|||
Equity (earnings) losses from unconsolidated hospitality ventures
|
(1
|
)
|
|
(25
|
)
|
|
24
|
|
|
96.7
|
%
|
|||
Stock-based compensation expense
|
5
|
|
|
1
|
|
|
4
|
|
|
171.4
|
%
|
|||
Other (income) loss, net
|
19
|
|
|
(4
|
)
|
|
23
|
|
|
541.1
|
%
|
|||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
15
|
|
|
23
|
|
|
(8
|
)
|
|
(38.0
|
)%
|
|||
Adjusted EBITDA
|
$
|
180
|
|
|
$
|
192
|
|
|
$
|
(12
|
)
|
|
(6.2
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
2017
|
|
2016
|
|
Change
|
||||||||||
Net income attributable to Hyatt Hotels Corporation
|
$
|
173
|
|
|
$
|
163
|
|
|
$
|
10
|
|
|
6.2
|
%
|
Interest expense
|
61
|
|
|
57
|
|
|
4
|
|
|
7.4
|
%
|
|||
Provision for income taxes
|
100
|
|
|
65
|
|
|
35
|
|
|
54.0
|
%
|
|||
Depreciation and amortization
|
274
|
|
|
254
|
|
|
20
|
|
|
8.1
|
%
|
|||
EBITDA
|
608
|
|
|
539
|
|
|
69
|
|
|
13.0
|
%
|
|||
Equity (earnings) losses from unconsolidated hospitality ventures
|
1
|
|
|
(46
|
)
|
|
47
|
|
|
101.3
|
%
|
|||
Stock-based compensation expense
|
26
|
|
|
21
|
|
|
5
|
|
|
19.0
|
%
|
|||
(Gains) losses on sales of real estate
|
(34
|
)
|
|
21
|
|
|
(55
|
)
|
|
(262.5
|
)%
|
|||
Other (income) loss, net
|
(23
|
)
|
|
(1
|
)
|
|
(22
|
)
|
|
NM
|
|
|||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
59
|
|
|
79
|
|
|
(20
|
)
|
|
(26.4
|
)%
|
|||
Adjusted EBITDA
|
$
|
637
|
|
|
$
|
613
|
|
|
$
|
24
|
|
|
3.9
|
%
|
|
Nine Months Ended September 30,
|
||||||
2017
|
|
2016
|
|||||
Cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
450
|
|
|
$
|
351
|
|
Investing activities
|
(228
|
)
|
|
(94
|
)
|
||
Financing activities
|
(321
|
)
|
|
(185
|
)
|
||
Effect of exchange rate changes on cash
|
—
|
|
|
15
|
|
||
Net (decrease) increase in cash and cash equivalents
|
$
|
(99
|
)
|
|
$
|
87
|
|
•
|
We acquired Miraval for approximately
$237 million
.
|
•
|
We invested
$212 million
in capital expenditures (see "—Capital Expenditures").
|
•
|
We contributed a total of
$67 million
in investments and HTM debt securities.
|
•
|
We acquired exhale for
$16 million
, net of $1 million cash acquired.
|
•
|
We sold Hyatt Regency Grand Cypress for approximately
$202 million
; the proceeds were recorded as restricted cash pursuant to a 1031 exchange.
|
•
|
We received $196 million related to the redemption of our Playa preferred shares.
|
•
|
We sold Hyatt Regency Louisville for approximately
$65 million
; the proceeds were initially recorded as restricted cash and subsequently released.
|
•
|
We released $33 million from restricted cash related to the finalization of tax regulatory review in connection with the 2014 disposition of Hyatt Regency Vancouver.
|
•
|
We sold land and construction in progress to an unconsolidated hospitality venture, in which we have a 50% ownership interest for approximately
$29 million
.
|
•
|
We acquired Thompson Miami Beach for approximately $238 million.
|
•
|
We invested
$140 million
in capital expenditures (see "—Capital Expenditures").
|
•
|
We acquired Royal Palms Resort and Spa for approximately $86 million.
|
•
|
We invested $31 million in unconsolidated hospitality ventures.
|
•
|
We sold Andaz 5th Avenue for approximately $240 million.
|
•
|
We received distributions of $78 million from unconsolidated hospitality ventures.
|
•
|
We sold the shares of the company that owns Hyatt Regency Birmingham (U.K.) for approximately $49 million.
|
•
|
We released $29 million from restricted cash related to the finalization of tax regulatory review in connection with the 2014 disposition of Park Hyatt Toronto.
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Consolidated debt (1)
|
$
|
1,796
|
|
|
$
|
1,564
|
|
Stockholders’ equity
|
3,651
|
|
|
3,903
|
|
||
Total capital
|
5,447
|
|
|
5,467
|
|
||
Total debt to total capital
|
33.0
|
%
|
|
28.6
|
%
|
||
Consolidated debt (1)
|
1,796
|
|
|
1,564
|
|
||
Less: Cash and cash equivalents and short-term investments
|
439
|
|
|
538
|
|
||
Net consolidated debt
|
$
|
1,357
|
|
|
$
|
1,026
|
|
Net debt to total capital
|
24.9
|
%
|
|
18.8
|
%
|
(1)
|
Excludes approximately
$571 million
and
$745 million
of our share of unconsolidated hospitality venture indebtedness at
September 30, 2017
and
December 31, 2016
, respectively, substantially all of which is non-recourse to us and a portion of which we guarantee pursuant to separate agreements. The decrease from
December 31, 2016
is primarily attributable to Playa, which is no longer an unconsolidated hospitality venture as discussed in Part I, Item 1 "Financial Statements—Note
4
to the Condensed Consolidated Financial Statements."
|
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
Maintenance and technology
|
$
|
54
|
|
|
$
|
42
|
|
Enhancements to existing properties
|
117
|
|
|
44
|
|
||
Investment in new properties under development or recently opened
|
41
|
|
|
54
|
|
||
Total capital expenditures
|
$
|
212
|
|
|
$
|
140
|
|
Description
|
Principal Amount
|
||
2019 Notes
|
$
|
196
|
|
2021 Notes
|
250
|
|
|
2023 Notes
|
350
|
|
|
2026 Notes
|
400
|
|
|
Total
|
$
|
1,196
|
|
|
Maturities by Period
|
|
|
|
|
||||||||||||||||||||||||||
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Total Carrying Amount
(1)
|
|
Total Fair Value
|
||||||||||||||||
Fixed-rate debt
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
200
|
|
|
$
|
5
|
|
|
$
|
255
|
|
|
$
|
918
|
|
|
$
|
1,383
|
|
|
$
|
1,470
|
|
Average interest rate (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
4.88
|
%
|
|
|
|||||||||||||||
Floating-rate debt (3)
|
$
|
345
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
49
|
|
|
$
|
414
|
|
|
$
|
434
|
|
Average interest rate (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
3.34
|
%
|
|
|
|
|
Total number
of shares
purchased
|
|
Weighted average
price paid
per share
|
|
Total number of
shares purchased
as part of publicly
announced plans
|
|
Maximum number (or approximate dollar value) of shares that may yet be purchased under the program (1)
|
||||||
July 1 to July 31, 2017 (2)
|
|
500,000
|
|
|
$
|
55.62
|
|
|
500,000
|
|
|
$
|
509,119,281
|
|
August 1 to August 31, 2017
|
|
1,698,634
|
|
|
$
|
56.82
|
|
|
1,698,634
|
|
|
$
|
409,119,281
|
|
September 1 to September 30, 2017
|
|
1,813,459
|
|
|
$
|
59.29
|
|
|
1,813,459
|
|
|
$
|
301,603,830
|
|
Total
|
|
4,012,093
|
|
|
$
|
57.78
|
|
|
4,012,093
|
|
|
|
(1)
|
On each of December 13, 2016 and May 4, 2017, we announced approvals of expansions of our share repurchase program pursuant to which we are authorized to purchase up to an additional $250 million and $500 million, respectively, of Class A and Class B common stock in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan. The repurchase program does not have an expiration date. At
September 30, 2017
, we had approximately
$302
million remaining under our current share repurchase authorization. During the period, we settled our March 2017 ASR and entered into the August 2017 ASR to repurchase $100 million of our Class A common stock. At September 30, 2017, there were $20 million of shares that had not yet settled. See Part I, Item 1 "Financial Statements—Note
12
to the Condensed Consolidated Financial Statements" for further details regarding the 2017 share repurchase plan.
|
(2)
|
The repurchase of shares is in partial settlement of the March 2017 ASR. The initial delivery of shares occurred in March 2017, and the final tranche of shares was delivered in July and August in full settlement of the March 2017 ASR. Overall, we repurchased 5,393,669 shares at a weighted-average price per share of $55.62, representing our average share price over the duration of the March 2017 ASR contract less a discount. See Part I, Item 1 "Financial Statements—Note
12
to the Condensed Consolidated Financial Statements" for further details regarding the March 2017 ASR share repurchase plan.
|
Exhibit Number
|
Exhibit Description
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
Hyatt Hotels Corporation
|
|
|
|
|
|
Date:
|
November 2, 2017
|
By:
|
/s/ Mark S. Hoplamazian
|
|
|
|
Mark S. Hoplamazian
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
Hyatt Hotels Corporation
|
|
|
|
|
|
Date:
|
November 2, 2017
|
By:
|
/s/ Patrick J. Grismer
|
|
|
|
Patrick J. Grismer
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Harmit J. Singh
|
|
|
|
Harmit J. Singh
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Susan T. Smith
|
|
|
|
Susan T. Smith
|
|
|
|
General Counsel, Senior Vice President and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Harmit J. Singh
|
|
|
|
Harmit J. Singh
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
|
|
HYATT HOTELS CORPORATION
|
|
|
|
|
|
|
|
By:
|
/s/ Rena Hozore Reiss
|
|
|
|
Rena Hozore Reiss
|
|
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 2, 2017
|
/s/ Mark S. Hoplamazian
|
|
Mark S. Hoplamazian
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 2, 2017
|
/s/ Patrick J. Grismer
|
|
Patrick J. Grismer
|
|
Executive Vice President, Chief Financial Officer
|
|
(Principal Financial Officer)
|
Date: November 2, 2017
|
/s/ Mark S. Hoplamazian
|
|
Mark S. Hoplamazian
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
Date: November 2, 2017
|
/s/ Patrick J. Grismer
|
|
Patrick J. Grismer
|
|
Executive Vice President, Chief Financial Officer
|
|
(Principal Financial Officer)
|