☒
|
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.)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
|||
Class A common stock
|
H
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
|
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
|
||||||
|
March 31, 2020
|
|
March 31, 2019
|
||||
REVENUES:
|
|
|
|
||||
Owned and leased hotels
|
$
|
323
|
|
|
$
|
470
|
|
Management, franchise, and other fees
|
108
|
|
|
141
|
|
||
Amortization of management and franchise agreement assets constituting payments to customers
|
(6
|
)
|
|
(5
|
)
|
||
Net management, franchise, and other fees
|
102
|
|
|
136
|
|
||
Other revenues
|
35
|
|
|
45
|
|
||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
533
|
|
|
590
|
|
||
Total revenues
|
993
|
|
|
1,241
|
|
||
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
|
|
|
|
||||
Owned and leased hotels
|
272
|
|
|
357
|
|
||
Depreciation and amortization
|
80
|
|
|
80
|
|
||
Other direct costs
|
34
|
|
|
45
|
|
||
Selling, general, and administrative
|
47
|
|
|
128
|
|
||
Costs incurred on behalf of managed and franchised properties
|
555
|
|
|
605
|
|
||
Direct and selling, general, and administrative expenses
|
988
|
|
|
1,215
|
|
||
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts
|
(48
|
)
|
|
30
|
|
||
Equity losses from unconsolidated hospitality ventures
|
(2
|
)
|
|
(3
|
)
|
||
Interest expense
|
(17
|
)
|
|
(19
|
)
|
||
Gains on sales of real estate
|
8
|
|
|
1
|
|
||
Asset impairments
|
(3
|
)
|
|
(3
|
)
|
||
Other income (loss), net
|
(81
|
)
|
|
51
|
|
||
INCOME (LOSS) BEFORE INCOME TAXES
|
(138
|
)
|
|
83
|
|
||
BENEFIT (PROVISION) FOR INCOME TAXES
|
35
|
|
|
(20
|
)
|
||
NET INCOME (LOSS)
|
(103
|
)
|
|
63
|
|
||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
||
NET INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION
|
$
|
(103
|
)
|
|
$
|
63
|
|
EARNINGS (LOSSES) PER SHARE—Basic
|
|
|
|
||||
Net income (loss)
|
$
|
(1.02
|
)
|
|
$
|
0.60
|
|
Net income (loss) attributable to Hyatt Hotels Corporation
|
$
|
(1.02
|
)
|
|
$
|
0.60
|
|
EARNINGS (LOSSES) PER SHARE—Diluted
|
|
|
|
||||
Net income (loss)
|
$
|
(1.02
|
)
|
|
$
|
0.59
|
|
Net income (loss) attributable to Hyatt Hotels Corporation
|
$
|
(1.02
|
)
|
|
$
|
0.59
|
|
|
Three Months Ended
|
||||||
|
March 31, 2020
|
|
March 31, 2019
|
||||
Net income (loss)
|
$
|
(103
|
)
|
|
$
|
63
|
|
Other comprehensive loss, net of taxes:
|
|
|
|
||||
Foreign currency translation adjustments, net of tax expense of $- for the three months ended March 31, 2020 and March 31, 2019
|
(51
|
)
|
|
(6
|
)
|
||
Unrealized losses on derivative activity, net of tax benefit of $(9) and $(1) for the three months ended March 31, 2020 and March 31, 2019, respectively
|
(25
|
)
|
|
(4
|
)
|
||
Other comprehensive loss
|
(76
|
)
|
|
(10
|
)
|
||
COMPREHENSIVE INCOME (LOSS)
|
(179
|
)
|
|
53
|
|
||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION
|
$
|
(179
|
)
|
|
$
|
53
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,194
|
|
|
$
|
893
|
|
Restricted cash
|
18
|
|
|
150
|
|
||
Short-term investments
|
68
|
|
|
68
|
|
||
Receivables, net of allowances of $38 and $32 at March 31, 2020 and December 31, 2019, respectively
|
365
|
|
|
421
|
|
||
Inventories
|
12
|
|
|
12
|
|
||
Prepaids and other assets
|
65
|
|
|
134
|
|
||
Prepaid income taxes
|
31
|
|
|
28
|
|
||
Total current assets
|
1,753
|
|
|
1,706
|
|
||
Equity method investments
|
259
|
|
|
232
|
|
||
Property and equipment, net
|
3,294
|
|
|
3,456
|
|
||
Financing receivables, net of allowances of $99 and $100 at March 31, 2020 and December 31, 2019, respectively
|
35
|
|
|
35
|
|
||
Operating lease right-of-use assets
|
479
|
|
|
493
|
|
||
Goodwill
|
326
|
|
|
326
|
|
||
Intangibles, net
|
427
|
|
|
437
|
|
||
Deferred tax assets
|
199
|
|
|
144
|
|
||
Other assets
|
1,526
|
|
|
1,588
|
|
||
TOTAL ASSETS
|
$
|
8,298
|
|
|
$
|
8,417
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
360
|
|
|
$
|
11
|
|
Accounts payable
|
133
|
|
|
150
|
|
||
Accrued expenses and other current liabilities
|
279
|
|
|
304
|
|
||
Current contract liabilities
|
291
|
|
|
445
|
|
||
Accrued compensation and benefits
|
90
|
|
|
144
|
|
||
Current operating lease liabilities
|
30
|
|
|
32
|
|
||
Total current liabilities
|
1,183
|
|
|
1,086
|
|
||
Long-term debt
|
1,602
|
|
|
1,612
|
|
||
Long-term contract liabilities
|
613
|
|
|
475
|
|
||
Long-term operating lease liabilities
|
386
|
|
|
393
|
|
||
Other long-term liabilities
|
806
|
|
|
884
|
|
||
Total liabilities
|
4,590
|
|
|
4,450
|
|
||
Commitments and contingencies (see Note 13)
|
|
|
|
|
|
||
EQUITY:
|
|
|
|
||||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding as of March 31, 2020 and December 31, 2019
|
—
|
|
|
—
|
|
||
Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 35,570,053 issued and outstanding at March 31, 2020, and Class B common stock, $0.01 par value per share, 397,457,686 shares authorized, 65,463,274 shares issued and outstanding at March 31, 2020. Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 36,109,179 issued and outstanding at December 31, 2019, and Class B common stock, $0.01 par value per share, 397,457,686 shares authorized, 65,463,274 shares issued and outstanding at December 31, 2019
|
1
|
|
|
1
|
|
||
Additional paid-in capital
|
—
|
|
|
—
|
|
||
Retained earnings
|
3,989
|
|
|
4,170
|
|
||
Accumulated other comprehensive loss
|
(285
|
)
|
|
(209
|
)
|
||
Total stockholders' equity
|
3,705
|
|
|
3,962
|
|
||
Noncontrolling interests in consolidated subsidiaries
|
3
|
|
|
5
|
|
||
Total equity
|
3,708
|
|
|
3,967
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
8,298
|
|
|
$
|
8,417
|
|
|
Three Months Ended
|
||||||
|
March 31, 2020
|
|
March 31, 2019
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
(103
|
)
|
|
$
|
63
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
||||
Gains on sales of real estate
|
(8
|
)
|
|
(1
|
)
|
||
Depreciation and amortization
|
80
|
|
|
80
|
|
||
Release of contingent consideration liability
|
—
|
|
|
(25
|
)
|
||
Amortization of share awards
|
17
|
|
|
21
|
|
||
Amortization of operating lease right-of-use assets
|
8
|
|
|
9
|
|
||
Deferred income taxes
|
(45
|
)
|
|
1
|
|
||
Equity losses from unconsolidated hospitality ventures
|
2
|
|
|
3
|
|
||
Amortization of management and franchise agreement assets constituting payments to customers
|
6
|
|
|
5
|
|
||
Unrealized (gains) losses, net
|
79
|
|
|
(12
|
)
|
||
Distributions from unconsolidated hospitality ventures
|
2
|
|
|
2
|
|
||
Working capital changes and other
|
(138
|
)
|
|
(133
|
)
|
||
Net cash provided by (used in) operating activities
|
(100
|
)
|
|
13
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of marketable securities and short-term investments
|
(110
|
)
|
|
(67
|
)
|
||
Proceeds from marketable securities and short-term investments
|
109
|
|
|
123
|
|
||
Contributions to equity method and other investments
|
(21
|
)
|
|
(7
|
)
|
||
Return of equity method and other investments
|
2
|
|
|
—
|
|
||
Acquisitions, net of cash acquired
|
—
|
|
|
(15
|
)
|
||
Capital expenditures
|
(55
|
)
|
|
(66
|
)
|
||
Proceeds from sales of real estate, net of cash disposed
|
78
|
|
|
—
|
|
||
Other investing activities
|
10
|
|
|
(7
|
)
|
||
Net cash provided by (used in) investing activities
|
13
|
|
|
(39
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from long-term debt
|
400
|
|
|
120
|
|
||
Repayments of debt
|
(51
|
)
|
|
(1
|
)
|
||
Repurchases of common stock
|
(69
|
)
|
|
(102
|
)
|
||
Dividends paid
|
(20
|
)
|
|
(20
|
)
|
||
Other financing activities
|
(7
|
)
|
|
(2
|
)
|
||
Net cash provided by (used in) financing activities
|
253
|
|
|
(5
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
3
|
|
|
—
|
|
||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
169
|
|
|
(31
|
)
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR
|
1,063
|
|
|
622
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD
|
$
|
1,232
|
|
|
$
|
591
|
|
|
Three Months Ended
|
||||||
|
March 31, 2020
|
|
March 31, 2019
|
||||
Cash paid during the period for interest
|
$
|
37
|
|
|
$
|
39
|
|
Cash paid during the period for income taxes
|
$
|
31
|
|
|
$
|
10
|
|
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
13
|
|
|
$
|
13
|
|
Non-cash investing and financing activities are as follows:
|
|
|
|
|
|
||
Non-cash contributions to equity method and other investments (see Note 7, Note 13)
|
$
|
33
|
|
|
$
|
—
|
|
Non-cash issuance of financing receivables
|
$
|
—
|
|
|
$
|
1
|
|
Change in accrued capital expenditures
|
$
|
9
|
|
|
$
|
1
|
|
Non-cash right-of-use assets obtained in exchange for operating lease liabilities
(see Note 7)
|
$
|
4
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
Common Shares Outstanding
|
|
Common Stock Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Noncontrolling Interests in Consolidated Subsidiaries
|
|
Total
|
||||||||||||||||||
|
Class A
|
Class B
|
|
Class A
|
Class B
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
BALANCE—January 1, 2019
|
39,507,817
|
|
67,115,828
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
3,819
|
|
|
$
|
(200
|
)
|
|
$
|
7
|
|
|
$
|
3,677
|
|
Total comprehensive income
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
63
|
|
|
(10
|
)
|
|
—
|
|
|
53
|
|
|||||||
Noncontrolling interests
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||||
Repurchase of common stock
|
(1,452,858
|
)
|
—
|
|
|
—
|
|
—
|
|
|
(71
|
)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(102
|
)
|
|||||||
Employee stock plan issuance
|
19,245
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Share-based payment activity
|
326,972
|
|
—
|
|
|
—
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||||
Cash dividends of $0.19 per share (see Note 14)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|||||||
BALANCE—March 31, 2019
|
38,401,176
|
|
67,115,828
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,831
|
|
|
$
|
(210
|
)
|
|
$
|
6
|
|
|
$
|
3,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
BALANCE—December 31, 2019
|
36,109,179
|
|
65,463,274
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,170
|
|
|
$
|
(209
|
)
|
|
$
|
5
|
|
|
$
|
3,967
|
|
Cumulative effect of accounting changes, net of tax (see Note 3)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||||
BALANCE—January 1, 2020
|
36,109,179
|
|
65,463,274
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,169
|
|
|
$
|
(209
|
)
|
|
$
|
5
|
|
|
$
|
3,966
|
|
Total comprehensive loss
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(103
|
)
|
|
(76
|
)
|
|
—
|
|
|
(179
|
)
|
|||||||
Noncontrolling interests
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||||||
Repurchase of common stock
|
(827,643
|
)
|
—
|
|
|
—
|
|
—
|
|
|
(12
|
)
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
|||||||
Employee stock plan issuance
|
16,654
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Share-based payment activity
|
271,863
|
|
—
|
|
|
—
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||||
Cash dividends of $0.20 per share (see Note 14)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|||||||
BALANCE—March 31, 2020
|
35,570,053
|
|
65,463,274
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,989
|
|
|
$
|
(285
|
)
|
|
$
|
3
|
|
|
$
|
3,708
|
|
•
|
Equity securities consist of interest-bearing money market funds, mutual funds, common shares, and preferred shares. Equity securities with a readily determinable fair value are recorded at fair value on our condensed consolidated balance sheets based on listed market prices or dealer quotations where available. Equity securities without a readily determinable fair value are recognized at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Net gains and losses, both realized and unrealized, and impairment charges on equity securities are recognized in other income (loss), net on our condensed consolidated statements of income (loss).
|
•
|
Debt securities include preferred shares, time deposits, and fixed income securities, including U.S. government obligations, obligations of other government agencies, corporate debt, mortgage-backed and asset-backed securities, and municipal and provincial notes and bonds. Debt securities are classified as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM").
|
•
|
Trading securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Net gains and losses, both realized and unrealized, on trading
|
•
|
AFS securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Unrealized gains and losses on AFS debt securities are recognized in accumulated other comprehensive loss on our condensed consolidated balance sheets. Realized gains and losses on debt securities are recognized in other income (loss), net on our condensed consolidated statements of income (loss). AFS securities are assessed quarterly for expected credit losses which are recognized in other income (loss), net on our condensed consolidated statements of income (loss). In determining the reserve for credit losses, we evaluate AFS securities at the individual security level and consider our investment strategy, current market conditions, financial strength of the underlying investments, term to maturity, credit rating, and our intent and ability to sell the securities.
|
•
|
HTM securities—investments that we have the intent and ability to hold until maturity and are recorded at amortized cost, net of expected credit losses. HTM securities are assessed for expected credit losses quarterly, and credit losses are recognized in other income (loss), net on our condensed consolidated statements of income (loss). We evaluate HTM securities individually when determining the reserve for credit losses due to the unique risks associated with each security. In determining the reserve for credit losses, we consider the financial strength of the underlying assets including the current and forecasted performance of the property, term to maturity, credit quality of the owner, and current market conditions.
|
•
|
Performance and other guarantees—On a quarterly basis, we evaluate the likelihood of funding under a guarantee. To the extent we determine an obligation to fund is both probable and estimable based upon performance during the period, we record a separate contingent liability with the offset recognized in other income (loss), net.
|
•
|
Debt repayment guarantees—At inception of the guarantee and on a quarterly basis, we evaluate the risk of funding under a guarantee. Based on the current and forecasted performance of the underlying property, whether the property owner is current on debt service, the historical performance of the property, and the current market, we record a separate liability with an offset recognized in other income (loss), net or equity earnings (losses) from unconsolidated hospitality ventures as necessary.
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||
|
Owned and leased hotels
|
Americas management and franchising
|
ASPAC management and franchising
|
EAME/SW Asia management and franchising
|
Corporate and other
|
Eliminations
|
Total
|
||||||||||||||
Rooms revenues
|
$
|
185
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(7
|
)
|
$
|
178
|
|
Food and beverage
|
105
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
105
|
|
|||||||
Other
|
40
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40
|
|
|||||||
Owned and leased hotels
|
330
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
323
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Base management fees
|
—
|
|
44
|
|
6
|
|
7
|
|
—
|
|
(10
|
)
|
47
|
|
|||||||
Incentive management fees
|
—
|
|
4
|
|
3
|
|
2
|
|
—
|
|
(1
|
)
|
8
|
|
|||||||
Franchise fees
|
—
|
|
27
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27
|
|
|||||||
Other fees
|
—
|
|
1
|
|
2
|
|
1
|
|
1
|
|
—
|
|
5
|
|
|||||||
License fees
|
—
|
|
8
|
|
8
|
|
—
|
|
5
|
|
—
|
|
21
|
|
|||||||
Management, franchise, and other fees
|
—
|
|
84
|
|
19
|
|
10
|
|
6
|
|
(11
|
)
|
108
|
|
|||||||
Amortization of management and franchise agreement assets constituting payments to customers
|
—
|
|
(4
|
)
|
(1
|
)
|
(1
|
)
|
—
|
|
—
|
|
(6
|
)
|
|||||||
Net management, franchise, and other fees
|
—
|
|
80
|
|
18
|
|
9
|
|
6
|
|
(11
|
)
|
102
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Other revenues
|
—
|
|
27
|
|
—
|
|
—
|
|
8
|
|
—
|
|
35
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
—
|
|
484
|
|
27
|
|
20
|
|
2
|
|
—
|
|
533
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
$
|
330
|
|
$
|
591
|
|
$
|
45
|
|
$
|
29
|
|
$
|
16
|
|
$
|
(18
|
)
|
$
|
993
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Deferred revenue related to the loyalty program
|
$
|
696
|
|
|
$
|
671
|
|
Advanced deposits
|
54
|
|
|
77
|
|
||
Initial fees received from franchise owners
|
41
|
|
|
41
|
|
||
Deferred revenue related to system-wide services
|
3
|
|
|
5
|
|
||
Other deferred revenue
|
110
|
|
|
126
|
|
||
Total contract liabilities
|
$
|
904
|
|
|
$
|
920
|
|
|
2020
|
|
2019
|
||||
Beginning balance, January 1
|
$
|
920
|
|
|
$
|
830
|
|
Cash received and other
|
246
|
|
|
247
|
|
||
Revenue recognized
|
(262
|
)
|
|
(228
|
)
|
||
Ending balance, March 31
|
$
|
904
|
|
|
$
|
849
|
|
•
|
Deferred revenue related to the loyalty program and revenue from base and incentive management fees as the revenue is allocated to a wholly unperformed performance obligation in a series;
|
•
|
Revenues related to royalty fees as they are considered sales-based royalty fees;
|
•
|
Revenues received for free nights granted through our co-branded credit cards as the awards are required to be redeemed within 12 months; and
|
•
|
Revenues related to advanced bookings at owned and leased hotels as each stay has a duration of 12 months or less.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Total revenues
|
$
|
117
|
|
|
$
|
116
|
|
Gross operating profit
|
34
|
|
|
39
|
|
||
Loss from continuing operations
|
(7
|
)
|
|
(10
|
)
|
||
Net loss
|
(7
|
)
|
|
(10
|
)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Loyalty program (Note 9)
|
$
|
510
|
|
|
$
|
483
|
|
Deferred compensation plans held in rabbi trusts (Note 9 and Note 11)
|
385
|
|
|
450
|
|
||
Captive insurance companies
|
173
|
|
|
180
|
|
||
Total marketable securities held to fund operating programs
|
$
|
1,068
|
|
|
$
|
1,113
|
|
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
|
(172
|
)
|
|
(219
|
)
|
||
Marketable securities held to fund operating programs included in other assets
|
$
|
896
|
|
|
$
|
894
|
|
|
Three Months Ended March 31,
|
||||||
2020
|
|
2019
|
|||||
Loyalty program (Note 19)
|
$
|
11
|
|
|
$
|
9
|
|
|
Three Months Ended March 31,
|
||||||
2020
|
|
2019
|
|||||
Unrealized gains (losses)
|
$
|
(50
|
)
|
|
$
|
28
|
|
Realized gains
|
2
|
|
|
2
|
|
||
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts
|
$
|
(48
|
)
|
|
$
|
30
|
|
|
March 31, 2020
|
|
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
|
$
|
509
|
|
|
$
|
509
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
444
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
444
|
|
|||||
Common shares
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
Level Two - Significant Other Observable Inputs
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
45
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
4
|
|
|||||
U.S. government obligations
|
207
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
201
|
|
|||||
U.S. government agencies
|
42
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
39
|
|
|||||
Corporate debt securities
|
159
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
141
|
|
|||||
Mortgage-backed securities
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||
Asset-backed securities
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||
Municipal and provincial notes and bonds
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Total
|
$
|
1,494
|
|
|
$
|
509
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
917
|
|
|
December 31, 2019
|
|
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
|
$
|
269
|
|
|
$
|
269
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
502
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
502
|
|
|||||
Common shares
|
102
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|||||
Level Two - Significant Other Observable Inputs
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
47
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
6
|
|
|||||
U.S. government obligations
|
202
|
|
|
—
|
|
|
4
|
|
|
31
|
|
|
167
|
|
|||||
U.S. government agencies
|
50
|
|
|
—
|
|
|
3
|
|
|
6
|
|
|
41
|
|
|||||
Corporate debt securities
|
161
|
|
|
—
|
|
|
20
|
|
|
18
|
|
|
123
|
|
|||||
Mortgage-backed securities
|
23
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
19
|
|
|||||
Asset-backed securities
|
39
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
33
|
|
|||||
Municipal and provincial notes and bonds
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|||||
Total
|
$
|
1,399
|
|
|
$
|
269
|
|
|
$
|
68
|
|
|
$
|
66
|
|
|
$
|
996
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Unsecured financing to hotel owners
|
$
|
134
|
|
|
$
|
135
|
|
Less: allowance for losses
|
(99
|
)
|
|
(100
|
)
|
||
Total long-term financing receivables, net of allowances
|
$
|
35
|
|
|
$
|
35
|
|
|
2020
|
|
2019
|
||||
Allowance at January 1
|
$
|
100
|
|
|
$
|
101
|
|
Provisions
|
2
|
|
|
2
|
|
||
Foreign currency exchange, net
|
(3
|
)
|
|
—
|
|
||
Allowance at March 31
|
$
|
99
|
|
|
$
|
103
|
|
|
March 31, 2020
|
||||||||||||||
|
Gross loan balance (principal and interest)
|
|
Related allowance
|
|
Net financing receivables
|
|
Gross receivables on non-accrual status
|
||||||||
Loans
|
$
|
34
|
|
|
$
|
(1
|
)
|
|
$
|
33
|
|
|
$
|
—
|
|
Impaired loans (1)
|
40
|
|
|
(40
|
)
|
|
—
|
|
|
40
|
|
||||
Total loans
|
74
|
|
|
(41
|
)
|
|
33
|
|
|
40
|
|
||||
Other financing arrangements
|
60
|
|
|
(58
|
)
|
|
2
|
|
|
58
|
|
||||
Total unsecured financing receivables
|
$
|
134
|
|
|
$
|
(99
|
)
|
|
$
|
35
|
|
|
$
|
98
|
|
|
December 31, 2019
|
||||||||||||||
|
Gross loan balance (principal and interest)
|
|
Related allowance
|
|
Net financing receivables
|
|
Gross receivables on non-accrual status
|
||||||||
Loans
|
$
|
33
|
|
|
$
|
(1
|
)
|
|
$
|
32
|
|
|
$
|
—
|
|
Impaired loans (2)
|
43
|
|
|
(43
|
)
|
|
—
|
|
|
43
|
|
||||
Total loans
|
76
|
|
|
(44
|
)
|
|
32
|
|
|
43
|
|
||||
Other financing arrangements
|
59
|
|
|
(56
|
)
|
|
3
|
|
|
56
|
|
||||
Total unsecured financing receivables
|
$
|
135
|
|
|
$
|
(100
|
)
|
|
$
|
35
|
|
|
$
|
99
|
|
|
March 31, 2020
|
|
Weighted-
average useful
lives in years
|
|
December 31, 2019
|
|||||
Management and franchise agreement intangibles
|
$
|
363
|
|
|
18
|
|
|
$
|
367
|
|
Brand and other indefinite-lived intangibles
|
144
|
|
|
—
|
|
|
144
|
|
||
Advanced booking intangibles
|
14
|
|
|
5
|
|
|
14
|
|
||
Other definite-lived intangibles
|
8
|
|
|
6
|
|
|
8
|
|
||
Intangibles
|
529
|
|
|
|
|
533
|
|
|||
Less: accumulated amortization
|
(102
|
)
|
|
|
|
(96
|
)
|
|||
Intangibles, net
|
$
|
427
|
|
|
|
|
$
|
437
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Amortization expense
|
$
|
7
|
|
|
$
|
3
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Management and franchise agreement assets constituting payments to customers (1)
|
$
|
431
|
|
|
$
|
423
|
|
Marketable securities held to fund the loyalty program (Note 5)
|
420
|
|
|
347
|
|
||
Marketable securities held to fund rabbi trusts (Note 5)
|
385
|
|
|
450
|
|
||
Marketable securities held for captive insurance companies (Note 5)
|
91
|
|
|
97
|
|
||
Long-term investments
|
74
|
|
|
65
|
|
||
Common shares of Playa N.V. (Note 5)
|
21
|
|
|
102
|
|
||
Other
|
104
|
|
|
104
|
|
||
Total other assets
|
$
|
1,526
|
|
|
$
|
1,588
|
|
(1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees.
|
|
March 31, 2020
|
||||||||||||||||||
|
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)
|
$
|
1,965
|
|
|
$
|
1,896
|
|
|
$
|
—
|
|
|
$
|
1,504
|
|
|
$
|
392
|
|
|
December 31, 2019
|
||||||||||||||||||
|
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)
|
$
|
1,627
|
|
|
$
|
1,740
|
|
|
$
|
—
|
|
|
$
|
1,680
|
|
|
$
|
60
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Deferred compensation plans funded by rabbi trusts (Note 5)
|
$
|
385
|
|
|
$
|
450
|
|
Income taxes payable
|
164
|
|
|
147
|
|
||
Self-insurance liabilities (Note 13)
|
79
|
|
|
80
|
|
||
Deferred income taxes (Note 12)
|
45
|
|
|
47
|
|
||
Guarantee liabilities (Note 13)
|
42
|
|
|
46
|
|
||
Other
|
91
|
|
|
114
|
|
||
Total other long-term liabilities
|
$
|
806
|
|
|
$
|
884
|
|
|
|
The four managed hotels in France
|
|
Other performance guarantees
|
|
All performance guarantees
|
||||||||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
Beginning balance, January 1
|
|
$
|
20
|
|
|
$
|
36
|
|
|
$
|
13
|
|
|
$
|
11
|
|
|
$
|
33
|
|
|
$
|
47
|
|
Initial guarantee obligation liability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Amortization of initial guarantee obligation liability into income
|
|
(4
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
(4
|
)
|
||||||
Performance guarantee expense, net
|
|
20
|
|
|
20
|
|
|
6
|
|
|
1
|
|
|
26
|
|
|
21
|
|
||||||
Net payments during the period
|
|
(15
|
)
|
|
(16
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(18
|
)
|
|
(19
|
)
|
||||||
Ending balance, March 31
|
|
$
|
21
|
|
|
$
|
36
|
|
|
$
|
15
|
|
|
$
|
10
|
|
|
$
|
36
|
|
|
$
|
46
|
|
Property description
|
|
Maximum potential future payments
|
|
Maximum exposure net of recoverability from third parties
|
|
Other long-term liabilities recorded at March 31, 2020
|
|
Other long-term liabilities recorded at December 31, 2019
|
|
Year of guarantee expiration
|
||||||||
Hotel properties in India (1)
|
|
$
|
159
|
|
|
$
|
159
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
2020
|
Hotel and residential properties in Brazil (2), (3)
|
|
90
|
|
|
38
|
|
|
3
|
|
|
3
|
|
|
various, through 2023
|
||||
Hotel properties in Tennessee (2)
|
|
44
|
|
|
20
|
|
|
8
|
|
|
8
|
|
|
various, through 2023
|
||||
Hotel property in Pennsylvania (2), (4)
|
|
32
|
|
|
11
|
|
|
2
|
|
|
—
|
|
|
various, through 2023
|
||||
Hotel properties in California (2)
|
|
31
|
|
|
12
|
|
|
3
|
|
|
3
|
|
|
various, through 2021
|
||||
Hotel property in Massachusetts (2), (4)
|
|
27
|
|
|
15
|
|
|
5
|
|
|
6
|
|
|
various, through 2022
|
||||
Hotel properties in Georgia (2)
|
|
27
|
|
|
13
|
|
|
5
|
|
|
2
|
|
|
various, through 2024
|
||||
Hotel property in Oregon (2), (4)
|
|
15
|
|
|
6
|
|
|
2
|
|
|
3
|
|
|
various, through 2022
|
||||
Other (2), (3)
|
|
19
|
|
|
5
|
|
|
2
|
|
|
2
|
|
|
various, through 2022
|
||||
Total
|
|
$
|
444
|
|
|
$
|
279
|
|
|
$
|
33
|
|
|
$
|
32
|
|
|
|
|
Balance at
January 1, 2020 |
|
Current period other comprehensive income (loss) before reclassification
|
|
Amount reclassified from accumulated other comprehensive loss
|
|
Balance at
March 31, 2020 |
||||||||
Foreign currency translation adjustments
|
$
|
(183
|
)
|
|
$
|
(51
|
)
|
|
$
|
—
|
|
|
$
|
(234
|
)
|
Unrecognized gains on AFS debt securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Unrecognized pension cost
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||
Unrealized losses on derivative instruments
|
(18
|
)
|
|
(25
|
)
|
|
—
|
|
|
(43
|
)
|
||||
Accumulated other comprehensive loss
|
$
|
(209
|
)
|
|
$
|
(76
|
)
|
|
$
|
—
|
|
|
$
|
(285
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
Balance at
January 1, 2019 |
|
Current period other comprehensive income (loss) before reclassification
|
|
Amount reclassified from accumulated other comprehensive loss
|
|
Balance at
March 31, 2019 |
||||||||
Foreign currency translation adjustments
|
$
|
(191
|
)
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
(197
|
)
|
Unrecognized pension cost
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||
Unrealized losses on derivative instruments
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
(8
|
)
|
||||
Accumulated other comprehensive loss
|
$
|
(200
|
)
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
(210
|
)
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Class A common stock
|
$
|
7
|
|
|
$
|
7
|
|
Class B common stock
|
13
|
|
|
13
|
|
||
Total cash dividends paid
|
$
|
20
|
|
|
$
|
20
|
|
Date declared
|
|
Dividend per share amount
for Class A and Class B
|
|
Date of record
|
|
Date paid
|
||
February 13, 2020
|
|
$
|
0.20
|
|
|
February 26, 2020
|
|
March 9, 2020
|
February 13, 2019
|
|
$
|
0.19
|
|
|
February 27, 2019
|
|
March 11, 2019
|
•
|
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 earned by our owned and leased hotels related to our co-branded credit cards and 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 as well as revenues from residential management operations. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to payroll at managed properties where the Company is the employer, as well as costs associated with sales, reservations, technology, and marketing services (collectively, "system-wide services") and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and 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, Greater China, Australia, South Korea, Japan, and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned hotel, which was sold during the year ended December 31, 2019, and 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, Africa, the Middle East, India, Central Asia, and Nepal. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Owned and leased hotels
|
|
|
|
||||
Owned and leased hotels revenues
|
$
|
330
|
|
|
$
|
477
|
|
Intersegment revenues (a)
|
7
|
|
|
7
|
|
||
Adjusted EBITDA
|
34
|
|
|
103
|
|
||
Depreciation and amortization
|
63
|
|
|
64
|
|
||
Americas management and franchising
|
|
|
|
||||
Management, franchise, and other fees revenues
|
84
|
|
|
104
|
|
||
Contra revenue
|
(4
|
)
|
|
(4
|
)
|
||
Other revenues
|
27
|
|
|
36
|
|
||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
484
|
|
|
548
|
|
||
Intersegment revenues (a)
|
10
|
|
|
17
|
|
||
Adjusted EBITDA
|
68
|
|
|
93
|
|
||
Depreciation and amortization
|
5
|
|
|
6
|
|
||
ASPAC management and franchising
|
|
|
|
||||
Management, franchise, and other fees revenues
|
19
|
|
|
32
|
|
||
Contra revenue
|
(1
|
)
|
|
—
|
|
||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
27
|
|
|
24
|
|
||
Intersegment revenues (a)
|
—
|
|
|
—
|
|
||
Adjusted EBITDA
|
8
|
|
|
20
|
|
||
Depreciation and amortization
|
1
|
|
|
1
|
|
||
EAME/SW Asia management and franchising
|
|
|
|
||||
Management, franchise, and other fees revenues
|
10
|
|
|
18
|
|
||
Contra revenue
|
(1
|
)
|
|
(1
|
)
|
||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
20
|
|
|
17
|
|
||
Intersegment revenues (a)
|
1
|
|
|
2
|
|
||
Adjusted EBITDA
|
1
|
|
|
10
|
|
||
Depreciation and amortization
|
—
|
|
|
—
|
|
||
Corporate and other
|
|
|
|
||||
Revenues
|
14
|
|
|
15
|
|
||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
2
|
|
|
1
|
|
||
Intersegment revenues (a)
|
—
|
|
|
—
|
|
||
Adjusted EBITDA
|
(27
|
)
|
|
(40
|
)
|
||
Depreciation and amortization
|
11
|
|
|
9
|
|
||
Eliminations
|
|
|
|
||||
Revenues (a)
|
(18
|
)
|
|
(26
|
)
|
||
Adjusted EBITDA
|
2
|
|
|
1
|
|
||
TOTAL
|
|
|
|
||||
Revenues
|
$
|
993
|
|
|
$
|
1,241
|
|
Adjusted EBITDA
|
86
|
|
|
187
|
|
||
Depreciation and amortization
|
80
|
|
|
80
|
|
(a)
|
Intersegment revenues are included in management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net income (loss) attributable to Hyatt Hotels Corporation
|
$
|
(103
|
)
|
|
$
|
63
|
|
Interest expense
|
17
|
|
|
19
|
|
||
(Benefit) provision for income taxes
|
(35
|
)
|
|
20
|
|
||
Depreciation and amortization
|
80
|
|
|
80
|
|
||
EBITDA
|
(41
|
)
|
|
182
|
|
||
Contra revenue
|
6
|
|
|
5
|
|
||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
(533
|
)
|
|
(590
|
)
|
||
Costs incurred on behalf of managed and franchised properties
|
555
|
|
|
605
|
|
||
Equity losses from unconsolidated hospitality ventures
|
2
|
|
|
3
|
|
||
Stock-based compensation expense (Note 15)
|
15
|
|
|
20
|
|
||
Gains on sales of real estate (Note 7)
|
(8
|
)
|
|
(1
|
)
|
||
Asset impairments
|
3
|
|
|
3
|
|
||
Other (income) loss, net (Note 19)
|
81
|
|
|
(51
|
)
|
||
Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA
|
6
|
|
|
11
|
|
||
Adjusted EBITDA
|
$
|
86
|
|
|
$
|
187
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Numerator:
|
|
|
|
||||
Net income (loss)
|
$
|
(103
|
)
|
|
$
|
63
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
||
Net income (loss) attributable to Hyatt Hotels Corporation
|
$
|
(103
|
)
|
|
$
|
63
|
|
Denominator:
|
|
|
|
||||
Basic weighted-average shares outstanding
|
101,402,348
|
|
|
105,976,163
|
|
||
Share-based compensation
|
—
|
|
|
1,543,020
|
|
||
Diluted weighted-average shares outstanding
|
101,402,348
|
|
|
107,519,183
|
|
||
Basic Earnings (Losses) Per Share:
|
|
|
|
||||
Net income (loss)
|
$
|
(1.02
|
)
|
|
$
|
0.60
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
||
Net income (loss) attributable to Hyatt Hotels Corporation
|
$
|
(1.02
|
)
|
|
$
|
0.60
|
|
Diluted Earnings (Losses) Per Share:
|
|
|
|
||||
Net income (loss)
|
$
|
(1.02
|
)
|
|
$
|
0.59
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
||
Net income (loss) attributable to Hyatt Hotels Corporation
|
$
|
(1.02
|
)
|
|
$
|
0.59
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Unrealized gains (losses), net (Note 5)
|
$
|
(79
|
)
|
|
$
|
12
|
|
Performance guarantee expense, net (Note 13)
|
(26
|
)
|
|
(21
|
)
|
||
Release and amortization of debt repayment guarantee liability
|
—
|
|
|
17
|
|
||
Release of contingent consideration liability
|
—
|
|
|
25
|
|
||
Performance guarantee liability amortization (Note 13)
|
5
|
|
|
4
|
|
||
Depreciation recovery
|
6
|
|
|
6
|
|
||
Interest income (Note 5)
|
11
|
|
|
6
|
|
||
Other, net
|
2
|
|
|
2
|
|
||
Other income (loss), net
|
$
|
(81
|
)
|
|
$
|
51
|
|
•
|
413 managed properties (126,251 rooms), all of which we operate under management and hotel services agreements with third-party property owners;
|
•
|
446 franchised properties (73,387 rooms), all of which are owned by third parties that have franchise agreements with us and are operated by third parties;
|
•
|
31 owned properties (13,534 rooms) (including 1 consolidated hospitality venture), 1 finance leased property (171 rooms), and 6 operating leased properties (2,086 rooms), all of which we manage; and
|
•
|
25 managed properties and 2 franchised properties owned or leased by unconsolidated hospitality ventures (8,045 rooms).
|
•
|
8 all-inclusive resorts (3,153 rooms), all of which are owned by a third party in which we hold common shares and which operates the resorts under franchise agreements with us;
|
•
|
16 vacation ownership properties under the Hyatt Residence Club brand and operated by third parties;
|
•
|
36 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; and
|
•
|
37 condominium ownership properties for which we provide services for the rental programs or homeowners associations (including 1 unconsolidated hospitality venture).
|
•
|
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 ("Americas"), which consists of our management and franchising of properties located in the United States, Latin America, Canada, and the Caribbean;
|
•
|
ASPAC management and franchising ("ASPAC"), which consists of our management and franchising of properties located in Southeast Asia, Greater China, Australia, South Korea, Japan, and Micronesia; and
|
•
|
EAME/SW Asia management and franchising ("EAME/SW Asia"), which consists of our management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia, and Nepal.
|
|
|
January 2020
|
|
February 2020
|
|
March 2020
|
|
Three Months Ended March 31, 2020
|
||||
Owned and leased
|
|
1.7
|
%
|
|
3.4
|
%
|
|
(71.9
|
)%
|
|
(25.8
|
)%
|
Management and franchising:
|
|
|
|
|
|
|
|
|
||||
Americas
|
|
2.0
|
%
|
|
0.3
|
%
|
|
(63.6
|
)%
|
|
(23.8
|
)%
|
ASPAC
|
|
(6.9
|
)%
|
|
(56.8
|
)%
|
|
(77.8
|
)%
|
|
(48.0
|
)%
|
EAME/SW Asia
|
|
10.5
|
%
|
|
(2.5
|
)%
|
|
(69.3
|
)%
|
|
(21.9
|
)%
|
System-wide
|
|
1.2
|
%
|
|
(10.6
|
)%
|
|
(66.6
|
)%
|
|
(28.1
|
)%
|
|
Three Months Ended March 31,
|
|||||||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|
Currency Impact
|
|||||||||||
Comparable owned and leased hotels revenues
|
$
|
323
|
|
|
$
|
418
|
|
|
$
|
(95
|
)
|
|
(22.8
|
)%
|
|
$
|
(2
|
)
|
Non-comparable owned and leased hotels revenues
|
—
|
|
|
52
|
|
|
(52
|
)
|
|
(99.4
|
)%
|
|
(1
|
)
|
||||
Total owned and leased hotels revenues
|
$
|
323
|
|
|
$
|
470
|
|
|
$
|
(147
|
)
|
|
(31.2
|
)%
|
|
$
|
(3
|
)
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Base management fees
|
$
|
47
|
|
|
$
|
63
|
|
|
$
|
(16
|
)
|
|
(24.4
|
)%
|
Incentive management fees
|
8
|
|
|
34
|
|
|
(26
|
)
|
|
(78.1
|
)%
|
|||
Franchise fees
|
27
|
|
|
32
|
|
|
(5
|
)
|
|
(14.8
|
)%
|
|||
Management and franchise fees
|
82
|
|
|
129
|
|
|
(47
|
)
|
|
(36.2
|
)%
|
|||
Other fees revenues
|
26
|
|
|
12
|
|
|
14
|
|
|
105.8
|
%
|
|||
Management, franchise, and other fees
|
$
|
108
|
|
|
$
|
141
|
|
|
$
|
(33
|
)
|
|
(23.6
|
)%
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Management, franchise, and other fees
|
$
|
108
|
|
|
$
|
141
|
|
|
$
|
(33
|
)
|
|
(23.6
|
)%
|
Contra revenue
|
(6
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
(23.0
|
)%
|
|||
Net management, franchise, and other fees
|
$
|
102
|
|
|
$
|
136
|
|
|
$
|
(34
|
)
|
|
(25.4
|
)%
|
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Change
|
|||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
$
|
533
|
|
|
$
|
590
|
|
|
$
|
(57
|
)
|
|
(9.6
|
)%
|
Less: rabbi trust impact
|
20
|
|
|
(13
|
)
|
|
33
|
|
|
255.8
|
%
|
|||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties excluding rabbi trust impact
|
$
|
553
|
|
|
$
|
577
|
|
|
$
|
(24
|
)
|
|
(4.1
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Comparable owned and leased hotels expense
|
$
|
276
|
|
|
$
|
313
|
|
|
$
|
37
|
|
|
11.9
|
%
|
Non-comparable owned and leased hotels expense
|
3
|
|
|
40
|
|
|
37
|
|
|
92.3
|
%
|
|||
Rabbi trust impact
|
(7
|
)
|
|
4
|
|
|
11
|
|
|
260.0
|
%
|
|||
Total owned and leased hotels expense
|
$
|
272
|
|
|
$
|
357
|
|
|
$
|
85
|
|
|
23.9
|
%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Change
|
|||||||||
Selling, general, and administrative expenses
|
$
|
47
|
|
|
$
|
128
|
|
|
$
|
(81
|
)
|
|
(63.2
|
)%
|
Less: rabbi trust impact
|
41
|
|
|
(26
|
)
|
|
67
|
|
|
258.0
|
%
|
|||
Less: stock-based compensation expense
|
(15
|
)
|
|
(20
|
)
|
|
5
|
|
|
21.0
|
%
|
|||
Adjusted selling, general, and administrative expenses
|
$
|
73
|
|
|
$
|
82
|
|
|
$
|
(9
|
)
|
|
(11.4
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Change
|
|||||||||
Costs incurred on behalf of managed and franchised properties
|
$
|
555
|
|
|
$
|
605
|
|
|
$
|
(50
|
)
|
|
(8.2
|
)%
|
Less: rabbi trust impact
|
20
|
|
|
(13
|
)
|
|
33
|
|
|
255.8
|
%
|
|||
Costs incurred on behalf of managed and franchised properties excluding rabbi trust impact
|
$
|
575
|
|
|
$
|
592
|
|
|
$
|
(17
|
)
|
|
(2.8
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Rabbi trust impact allocated to selling, general, and administrative expenses
|
$
|
(41
|
)
|
|
$
|
26
|
|
|
$
|
(67
|
)
|
|
(258.0
|
)%
|
Rabbi trust impact allocated to owned and leased hotels expense
|
(7
|
)
|
|
4
|
|
|
(11
|
)
|
|
(260.0
|
)%
|
|||
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts
|
$
|
(48
|
)
|
|
$
|
30
|
|
|
$
|
(78
|
)
|
|
(258.3
|
)%
|
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Income (loss) before income taxes
|
$
|
(138
|
)
|
|
$
|
83
|
|
|
$
|
(221
|
)
|
|
(267.0
|
)%
|
Benefit (provision) for income taxes
|
35
|
|
|
(20
|
)
|
|
55
|
|
|
280.2
|
%
|
|||
Effective tax rate
|
25.4
|
%
|
|
23.5
|
%
|
|
|
|
|
(1.9
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|
Currency Impact
|
|||||||||||
Comparable owned and leased hotels revenues
|
$
|
330
|
|
|
$
|
425
|
|
|
$
|
(95
|
)
|
|
(22.4
|
)%
|
|
$
|
(2
|
)
|
Non-comparable owned and leased hotels revenues
|
—
|
|
|
52
|
|
|
(52
|
)
|
|
(99.4
|
)%
|
|
(1
|
)
|
||||
Total segment revenues
|
$
|
330
|
|
|
$
|
477
|
|
|
$
|
(147
|
)
|
|
(30.7
|
)%
|
|
$
|
(3
|
)
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||
|
2020
|
|
vs. 2019
(in constant $)
|
|
2020
|
|
vs. 2019
|
|
2020
|
|
vs. 2019
(in constant $)
|
|||||||
Comparable owned and leased hotels
|
$
|
130
|
|
|
(25.8
|
)%
|
|
55.3
|
%
|
|
(18.8)% pts
|
|
$
|
235
|
|
|
(0.5
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Owned and leased hotels Adjusted EBITDA
|
$
|
28
|
|
|
$
|
92
|
|
|
$
|
(64
|
)
|
|
(69.3
|
)%
|
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
|
6
|
|
|
11
|
|
|
(5
|
)
|
|
(47.4
|
)%
|
|||
Segment Adjusted EBITDA
|
$
|
34
|
|
|
$
|
103
|
|
|
$
|
(69
|
)
|
|
(66.9
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise, and other fees
|
$
|
84
|
|
|
$
|
104
|
|
|
$
|
(20
|
)
|
|
(20.0
|
)%
|
Contra revenue
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
(12.2
|
)%
|
|||
Other revenues
|
27
|
|
|
36
|
|
|
(9
|
)
|
|
(25.0
|
)%
|
|||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
484
|
|
|
548
|
|
|
(64
|
)
|
|
(11.6
|
)%
|
|||
Total segment revenues
|
$
|
591
|
|
|
$
|
684
|
|
|
$
|
(93
|
)
|
|
(13.7
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||
(Comparable System-wide Hotels)
|
2020
|
|
vs. 2019 (in constant $)
|
|
2020
|
|
vs. 2019
|
|
2020
|
|
vs. 2019 (in constant $)
|
|||||||
Americas Full Service
|
$
|
115
|
|
|
(24.2
|
)%
|
|
54.3
|
%
|
|
(16.5)% pts
|
|
$
|
212
|
|
|
(1.2
|
)%
|
Americas Select Service
|
$
|
75
|
|
|
(22.9
|
)%
|
|
56.7
|
%
|
|
(13.8)% pts
|
|
$
|
133
|
|
|
(4.0
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
68
|
|
|
$
|
93
|
|
|
$
|
(25
|
)
|
|
(26.6
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise, and other fees
|
$
|
19
|
|
|
$
|
32
|
|
|
$
|
(13
|
)
|
|
(40.6
|
)%
|
Contra revenue
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(23.5
|
)%
|
|||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
27
|
|
|
24
|
|
|
3
|
|
|
13.3
|
%
|
|||
Total segment revenues
|
$
|
45
|
|
|
$
|
56
|
|
|
$
|
(11
|
)
|
|
(17.5
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||
(Comparable System-wide Hotels)
|
2020
|
|
vs. 2019 (in constant $)
|
|
2020
|
|
vs. 2019
|
|
2020
|
|
vs. 2019 (in constant $)
|
|||||||
ASPAC Full Service
|
$
|
70
|
|
|
(48.0
|
)%
|
|
36.3
|
%
|
|
(31.5)% pts
|
|
$
|
193
|
|
|
(3.1
|
)%
|
ASPAC Select Service
|
$
|
24
|
|
|
(47.5
|
)%
|
|
30.6
|
%
|
|
(26.4)% pts
|
|
$
|
79
|
|
|
(2.3
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
8
|
|
|
$
|
20
|
|
|
$
|
(12
|
)
|
|
(58.5
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Segment revenues
|
|
|
|
|
|
|
|
|||||||
Management, franchise, and other fees
|
$
|
10
|
|
|
$
|
18
|
|
|
$
|
(8
|
)
|
|
(43.0
|
)%
|
Contra revenue
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(55.0
|
)%
|
|||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
20
|
|
|
17
|
|
|
3
|
|
|
21.7
|
%
|
|||
Total segment revenues
|
$
|
29
|
|
|
$
|
34
|
|
|
$
|
(5
|
)
|
|
(14.6
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||
|
RevPAR
|
|
Occupancy
|
|
ADR
|
|||||||||||||
(Comparable System-wide Hotels)
|
2020
|
|
vs. 2019 (in constant $)
|
|
2020
|
|
vs. 2019
|
|
2020
|
|
vs. 2019 (in constant $)
|
|||||||
EAME/SW Asia Full Service
|
$
|
88
|
|
|
(22.5
|
)%
|
|
51.3
|
%
|
|
(13.5)% pts
|
|
$
|
172
|
|
|
(2.0
|
)%
|
EAME/SW Asia Select Service
|
$
|
53
|
|
|
(12.7
|
)%
|
|
58.2
|
%
|
|
(8.0)% pts
|
|
$
|
90
|
|
|
(0.7
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Segment Adjusted EBITDA
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
(9
|
)
|
|
(91.2
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Better / (Worse)
|
|||||||||
Revenues
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
(1
|
)
|
|
(4.1
|
)%
|
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
2
|
|
|
1
|
|
|
1
|
|
|
6.1
|
%
|
|||
Adjusted EBITDA
|
(27
|
)
|
|
(40
|
)
|
|
13
|
|
|
30.6
|
%
|
|
•
|
interest expense;
|
•
|
benefit (provision) for income taxes;
|
•
|
depreciation and amortization;
|
•
|
amortization of management and franchise agreement assets constituting payments to customers ("Contra revenue");
|
•
|
revenues for the reimbursement of costs incurred on behalf of managed and franchised properties;
|
•
|
costs incurred on behalf of managed and franchised properties;
|
•
|
equity earnings (losses) from unconsolidated hospitality ventures;
|
•
|
stock-based compensation expense;
|
•
|
gains (losses) on sales of real estate;
|
•
|
asset impairments; and
|
•
|
other income (loss), net.
|
|
Three Months Ended March 31,
|
|||||||||||||
2020
|
|
2019
|
|
Change
|
||||||||||
Net income (loss) attributable to Hyatt Hotels Corporation
|
$
|
(103
|
)
|
|
$
|
63
|
|
|
$
|
(166
|
)
|
|
(262.8
|
)%
|
Interest expense
|
17
|
|
|
19
|
|
|
(2
|
)
|
|
(8.7
|
)%
|
|||
(Benefit) provision for income taxes
|
(35
|
)
|
|
20
|
|
|
(55
|
)
|
|
(280.2
|
)%
|
|||
Depreciation and amortization
|
80
|
|
|
80
|
|
|
—
|
|
|
(0.1
|
)%
|
|||
EBITDA
|
(41
|
)
|
|
182
|
|
|
(223
|
)
|
|
(122.3
|
)%
|
|||
Contra revenue
|
6
|
|
|
5
|
|
|
1
|
|
|
23.0
|
%
|
|||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
|
(533
|
)
|
|
(590
|
)
|
|
57
|
|
|
9.6
|
%
|
|||
Costs incurred on behalf of managed and franchised properties
|
555
|
|
|
605
|
|
|
(50
|
)
|
|
(8.2
|
)%
|
|||
Equity losses from unconsolidated hospitality ventures
|
2
|
|
|
3
|
|
|
(1
|
)
|
|
(40.6
|
)%
|
|||
Stock-based compensation expense
|
15
|
|
|
20
|
|
|
(5
|
)
|
|
(21.0
|
)%
|
|||
Gains on sales of real estate
|
(8
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
(794.5
|
)%
|
|||
Asset impairments
|
3
|
|
|
3
|
|
|
—
|
|
|
(16.7
|
)%
|
|||
Other (income) loss, net
|
81
|
|
|
(51
|
)
|
|
132
|
|
|
258.4
|
%
|
|||
Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA
|
6
|
|
|
11
|
|
|
(5
|
)
|
|
(47.4
|
)%
|
|||
Adjusted EBITDA
|
$
|
86
|
|
|
$
|
187
|
|
|
$
|
(101
|
)
|
|
(54.3
|
)%
|
|
|
Three Months Ended March 31,
|
||||||
2020
|
|
2019
|
|||||
Cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
(100
|
)
|
|
$
|
13
|
|
Investing activities
|
13
|
|
|
(39
|
)
|
||
Financing activities
|
253
|
|
|
(5
|
)
|
||
Effect of exchange rate changes on cash
|
3
|
|
|
—
|
|
||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
$
|
169
|
|
|
$
|
(31
|
)
|
•
|
We received $72 million of proceeds related to the disposition of a 60% ownership interest in certain subsidiaries that are developing a hotel, parking, and retail space in Philadelphia, Pennsylvania.
|
•
|
We received $6 million of proceeds from the sale of a building in Omaha, Nebraska.
|
•
|
We invested $55 million in capital expenditures (see "—Capital Expenditures").
|
•
|
We invested $66 million in capital expenditures (see "—Capital Expenditures").
|
•
|
We acquired land for $15 million from an unrelated third party.
|
•
|
We received $56 million of net proceeds from the sale of marketable securities and short-term investments.
|
•
|
We repurchased 827,643 shares of Class A common stock for an aggregate purchase price of $69 million.
|
•
|
We paid a quarterly $0.20 per share cash dividend on Class A and Class B common stock totaling $20 million.
|
•
|
We borrowed $400 million and repaid $50 million on our revolving credit facility.
|
•
|
We repurchased 1,452,858 shares of Class A common stock for an aggregate purchase price of $102 million.
|
•
|
We paid a quarterly $0.19 per share cash dividend on Class A and Class B common stock totaling $20 million.
|
•
|
We borrowed $120 million on our revolving credit facility.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Consolidated debt (1)
|
$
|
1,962
|
|
|
$
|
1,623
|
|
Stockholders' equity
|
3,705
|
|
|
3,962
|
|
||
Total capital
|
5,667
|
|
|
5,585
|
|
||
Total debt to total capital
|
34.6
|
%
|
|
29.1
|
%
|
||
Consolidated debt (1)
|
1,962
|
|
|
1,623
|
|
||
Less: cash and cash equivalents and short-term investments
|
(1,262
|
)
|
|
(961
|
)
|
||
Net consolidated debt
|
$
|
700
|
|
|
$
|
662
|
|
Net debt to total capital
|
12.4
|
%
|
|
11.9
|
%
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Maintenance and technology
|
$
|
13
|
|
|
$
|
13
|
|
Enhancements to existing properties
|
27
|
|
|
31
|
|
||
Investment in new properties under development or recently opened
|
15
|
|
|
22
|
|
||
Total capital expenditures
|
$
|
55
|
|
|
$
|
66
|
|
|
Principal amount
|
||
2021 Notes
|
$
|
250
|
|
2023 Notes
|
350
|
|
|
2026 Notes
|
400
|
|
|
2028 Notes
|
400
|
|
|
Total Senior Notes
|
$
|
1,400
|
|
|
Maturities by Period
|
|
|
|
|
||||||||||||||||||||||||||
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total carrying amount (1)
|
|
Total fair value
|
||||||||||||||||
Fixed-rate debt
|
$
|
5
|
|
|
$
|
255
|
|
|
$
|
5
|
|
|
$
|
355
|
|
|
$
|
6
|
|
|
$
|
952
|
|
|
$
|
1,578
|
|
|
$
|
1,504
|
|
Average interest rate (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
4.51
|
%
|
|
|
|||||||||||||||
Floating-rate debt (3)
|
$
|
353
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
20
|
|
|
$
|
387
|
|
|
$
|
392
|
|
Average interest rate (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
2.22
|
%
|
|
|
•
|
Revenues and Expenses: With the global spread of COVID-19 beginning in March 2020, we began to experience significant decreases in demand and system-wide RevPAR beyond our Greater China properties where the negative impacts first originated. The effects of the pandemic have materially adversely affected, and we expect will continue to materially adversely affect, the revenues and profitability of our owned and leased properties, and revenues may be insufficient to offset certain fixed costs, such as insurance and property taxes. In addition, uncertain or fluctuating real estate valuations and the inability for third party purchasers to obtain capital may prevent us from selling properties on acceptable terms or prevent us from selling properties within our previously announced timeframe.
|
•
|
Operations: In response to the significant decline in demand for hotels across our system, we have taken actions and continue to evaluate spending to manage operating expenses and enhance our financial resources. These actions include furloughing a substantial number of our colleagues, implementing reduced work weeks and pay for other colleagues across our global regions, eliminating non-essential spending and corporate initiatives, and reducing costs related to certain system-wide expenses we incur on behalf of third-party owners related to marketing, sales, reservations, and technology. We have received and we may also receive additional demands or requests from labor unions that represent our colleagues, whether in the course of our periodic renegotiation of our collective bargaining agreements or otherwise, for additional compensation, healthcare benefits, or other terms that could increase costs, and we could experience labor disputes or disruptions as we continue to implement our mitigation plans. Some actions we have taken, or that we may take in the future, to reduce costs for us or our third-party owners or franchisees may negatively impact guest loyalty, owner preference, or our ability to attract and retain colleagues, and our reputation and market share may suffer as a result. Further, once the effects of the pandemic subside, we expect the recovery period could be extended and we expect that certain operational changes, particularly with respect to enhanced health and safety measures, will be necessary and could increase our ongoing costs.
|
•
|
Financial Condition and Indebtedness: As we manage through the effects of the pandemic, our level of indebtedness may increase substantially. On April 21, 2020, we entered into the Revolver Amendment and issued the 2025 Notes and the 2030 Notes to enhance our liquidity profile and cash position in response to the COVID-19 pandemic. A default under our revolving credit facility would enable the lenders to terminate their commitments thereunder and could trigger a cross-default, acceleration, or other consequences under our other indebtedness or financial instruments. There is no guarantee that debt financings will be available in the future to fund our obligations or will be available on terms consistent with our expectations. We also expect the impact of the COVID-19 pandemic on the financial markets could adversely affect our ability to raise equity financing. Changes in the credit ratings of our debt, including our revolving credit facility and the notes, could have an adverse impact on our interest expense. As a result of the general economic uncertainty and the impact of the COVID-19 pandemic, some credit agencies have downgraded
|
•
|
Growth: Our plans for growth could be negatively impacted by the COVID-19 pandemic. The current environment could result in difficulties for hotel owners and franchisees to obtain commercially viable financing. The commitments of owners and developers with whom we have agreements are subject to numerous conditions, and the eventual development and completion of construction of our pipeline properties is subject to numerous risks, including, in certain cases, obtaining adequate financing. In addition, we are experiencing construction delays as a result of business activity restrictions and supply chain interruptions. As a result, our current development pipeline may not be completed and developed into new hotels and those hotels may not open when anticipated, which will impact our net rooms growth. Further, our development pipeline may not grow at the same rate as in the past, and properties in our existing system-wide inventory may exit as a result of the COVID-19 pandemic, which would also negatively impact our net rooms growth. In addition, if we cannot access the capital we need to fund our operations or implement our growth strategy, we may need to postpone or cancel planned renovations or developments, which could impair our ability to compete effectively and harm our business.
|
•
|
Capital Markets Impact: The global stock markets have experienced, and may continue to experience, significant volatility as a result of the COVID-19 pandemic, and the price of our common stock has been volatile and has decreased significantly in recent months. The COVID-19 pandemic and the significant uncertainties it has caused for the global economy, business activity, and business confidence have had, and are likely to continue to have, a significant effect on the market price of securities generally, including our securities. In addition, certain debt covenants restrict our ability to make dividend payments to shareholders or engage in share repurchase activity.
|
|
|
Total number
of shares
purchased (1)
|
|
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
|
||||||
January 1 to January 31, 2020
|
|
301,889
|
|
|
$
|
86.95
|
|
|
301,889
|
|
|
$
|
971,102,648
|
|
February 1 to February 29, 2020
|
|
326,088
|
|
|
$
|
86.17
|
|
|
326,088
|
|
|
$
|
943,002,567
|
|
March 1 to March 31, 2020
|
|
199,666
|
|
|
$
|
76.34
|
|
|
199,666
|
|
|
$
|
927,760,966
|
|
Total
|
|
827,643
|
|
|
$
|
84.08
|
|
|
827,643
|
|
|
|
(1)
|
On each of October 30, 2018 and December 18, 2019, we announced the approvals of the expansions of our share repurchase program. Under each approval, we are authorized to purchase up to an additional $750 million 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 or an accelerated share repurchase transaction. The repurchase program does not have an expiration date. At March 31, 2020, we had approximately $928 million remaining under the share repurchase authorization. We discontinued all share repurchase activity effective March 3, 2020 through the first quarter of 2021.
|
Exhibit Number
|
Exhibit Description
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
4.3
|
|
|
|
10.1
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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
|
|
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
|
|
Hyatt Hotels Corporation
|
|
|
|
|
|
Date:
|
May 7, 2020
|
By:
|
/s/ Mark S. Hoplamazian
|
|
|
|
Mark S. Hoplamazian
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
Hyatt Hotels Corporation
|
|
|
|
|
|
Date:
|
May 7, 2020
|
By:
|
/s/ Joan Bottarini
|
|
|
|
Joan Bottarini
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
(Principal Financial 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.
|
May 7, 2020
|
/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.
|
May 7, 2020
|
/s/ Joan Bottarini
|
|
Joan Bottarini
|
|
Executive Vice President, Chief Financial Officer
|
|
(Principal Financial Officer)
|
May 7, 2020
|
/s/ Mark S. Hoplamazian
|
|
Mark S. Hoplamazian
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
May 7, 2020
|
/s/ Joan Bottarini
|
|
Joan Bottarini
|
|
Executive Vice President, Chief Financial Officer
|
|
(Principal Financial Officer)
|