Hyatt withdraws 2020 outlook as coronavirus spreads

Earnings

Hyatt Regency Orlando International Airport.

Source: Orlando International Airport

Hyatt Hotels said on Monday it was withdrawing its 2020 earnings outlook, as the coronavirus outbreak spreads across the globe hurting travel demand.

The company had previously forecast adjusted profit for 2020 between $760 million and $780 million.

Greater China revenue per available room (RevPAR) has been affected due to the impact on demand outside the country following corporate travel restrictions in North America and Europe, the hotel chain said.

RevPAR is a key metric to measure a hotel’s financial health and is calculated by multiplying the average daily room rate by the occupancy rate.

“This is an evolving situation, and our ability to assess the financial impact of COVID-19 on our business continues to be limited,” Chief Executive Officer Mark Hoplamazian said.

Larger rival Marriott last week warned the outbreak could significantly hurt its full-year results and it was unable to estimate the full financial impact.

Hyatt’s shares were down 1.5% at $75.91 in extended trading.

Products You May Like

Articles You May Like

Top Wall Street analysts back these stocks as earnings season kicks off
Target’s same-store sales up 17% over the holidays as it holds on to some of its pandemic gains
Are we in a stock market bubble? | Charts that Count
How being unemployed in 2020 could lead to a surprise tax bill
CEO of world’s largest money manager sees stocks rallying in 2021 but not as much as last year

Leave a Reply

Your email address will not be published. Required fields are marked *