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Actionable news in H: HYATT HOTELS CORPORATION,

- Hyatt Hotels Corporation ("Hyatt" Or The "Company") (Nyse: H) Today Reported

The following excerpt is from the company's SEC filing.

quarter

financial results.

Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, "Our RevPAR growth was strong due to greater transient business and increased market share. These positive results drove solid fee growth across our system."

Third quarter

financial results are as follows:

Adjusted EBITDA was

$172 million

in the

quarter of

compared to

$179 million

, a decrease of

. Adjusted EBITDA in the

was negatively impacted by $17 million due to net dispositions and $7 m illion due to net unfavorable currency impacts, compared to the

Adjusted for special items, net income attributable to Hyatt was

$42 million

per share, during the

compared to net income attributable to Hyatt of

$30 million

Net income attributable to Hyatt was

$25 million

$32 million

per share, in the

Comparable owned and leased hotels RevPAR increased

excluding the effect of currency) in the

Comparable owned and leased hotels operating margins decreased

basis points in the

. Owned and leased hotels operating margins decreased

Comparable systemwide RevPAR increased

omparable U.S. full service hotel RevPAR increased 5.2% in the

. Comparable U.S. select service hotel RevPAR increased 7.1% in the

hotels were opened during the

. As of

September 30, 2015

, the Company's executed contract base consisted of approximately

hotels or approximately

56,000

rooms.

The Company repurchased

3,735,460

shares of common stock at a weighted average price of

$52.11

per share, for an aggregate purchase price of approximately

$195 million

Mr. Hoplamazian continued, "Adjusted EBITDA grew nearly 10% in the third quarter, excluding the impact of foreign exchange and dispositions of hotels last year. This level of growth is a testament to the strength of our business model and reflects strong ongoing performance in our existing hotels and the positive effects of significant net growth in our hotel and rooms base around the world.

"Year-to-date through the third quarter, we added 37 hotels to our system, 28% more than the same period last year, and expect to open approximately 13 more hotels by year-end. Our base of executed contracts for new hotels increased to approximately

rooms in the third quarter, reflecting a significant potential increase relative to our existing size. We remain focused on opening new hotels across multiple geographies to expand our differentiated offering in new and attractive markets.

"Our growth profile is expected to yield greater management and franchise fees in the years ahead. Total fees grew nearly 12% year-to-date through the third quarter, or 16% excluding the impact of foreign exchange. We expect this strong fee growth profile to progress as we continue to realize meaningful net hotel and net rooms growth.

"Looking ahead, we expect overall operating performance at our hotels in the U.S. to remain strong, based on continued economic growth and positive group and transient trends."

Owned and Leased Hotels Segment

Total segment Adjusted EBITDA decreased

compared to the same period in

Owned and leased hotels Adjusted EBITDA decreased

. Refer to the table on page 18 of the schedules for a detailed list of portfolio changes and the year-over-year net impact to

quarter owned and leased hotels Adjusted EBITDA.

Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA increased

Revenue decreased

. Owned and leased hotels expenses decreased

RevPAR for comparable owned and leased hotels increased

. Occupancy increased

basis points and ADR increased

excluding the effect of currency) compared to the same period in

Comparable owned and leased hotels revenue increased

. Excluding expenses related to benefit programs funded through rabbi trusts and non-comparable hotel expenses, expenses increased

. Refer to the table on page 12 of the schedules for a reconciliation of comparable owned and leased hotels expenses to owned and leased hotels expenses.

Management and Franchise Fees

Total fee revenue increased

(13.8% excluding the effect of currency) to

$103 million

. Base management fees increased

$47 million

. Incentive management fees decreased

23 million

, primarily due to unfavorable foreign exchange translation. Franchise fees increased

24 million

, primarily due to new hotels and hotels

recently converted from managed to franchised. Other fee revenues increased

$9 million

as a result of increased amortization of deferred gains from hotels sold subject to long-term management agreements and termination fees.

Americas Management and Franchising Segment

RevPAR for comparable Americas full service hotels increased

Group rooms revenue at comparable U.S. full service hotels increased 1.4% in the

. Group room nights decreased 3.2% and group ADR increased 4.7% in the

Transient rooms revenue at comparable U.S. full service hotels increased 9.2% in the

. Transient room nights increased 4.6% and transient ADR increased 4.4% in the

RevPAR for comparable Americas select service hotels increased

Revenue from management, franchise and other fees increased

The following six hotels were added to the portfolio during the

quarter:

Hyatt Place Bloomington / Normal (franchised, 114 rooms)

Hyatt Place Buffalo / Amherst (franchised, 137 rooms)

Hyatt Place Charleston / Historic District (managed, 191 rooms)

Hyatt Place Tegucigalpa, Honduras (franchised, 126 rooms)

Hyatt House Atlanta / Downtown (franchised, 150 rooms)

Hyatt House Charleston / Historic District (managed, 113 rooms)

One hotel was removed from the portfolio during the third quarter.

Southeast Asia, China, Australia, South Korea and Japan (ASPAC) Management and Franchising Segment

RevPAR for comparable ASPAC full service hotels decreased

(increased

basis points and ADR decreased

Revenue from management, franchise and other fees decreased

The following two hotels were added to the portfolio during the

Hyatt Regency Naha, Okinawa, Japan (franchised, 294 rooms)

Hyatt Regency Wuhan Optics Valley, China (managed, 330 rooms)

Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management Segment

RevPAR for comparable EAME/SW Asia full service hotels decreased

basis points and ADR decreased

Revenue from management and other fees decreased

, primarily due to the impact from the stronger U.S. dollar and decreased performance at certain properties in the Middle East.

The following hotel was added to the portfolio during the

Hyatt Place Dubai Baniyas Square, United Arab Emirates (managed, 126 rooms)

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses decreased

. Adjusted selling, general, and administrative expenses decreased

, primarily due to the sale of the Company's vacation ownership business and lower stock-based compensation expenses in the quarter. Refer to the table on page 11 of the schedules for a reconciliation of adjusted selling, general, and administrative expenses to selling, general, and administrative expenses.

OPENINGS AND FUTURE EXPANSION

hotels were added in the

, each of which is listed above. The Company added 37 hotels year-to-date through

and is on pace to open

approximately 50

hotels during the

fiscal year.

, the Company had executed management or franchise contracts for approximately

hotels (or approximately

rooms). The executed contracts represent potential entry into several new countries and expansion into new markets or markets in which the Company is under-represented.

SHARE REPURCHASE

During the

, the Company repurchased

. From October 1 through October 30,

985,308

shares of common stock at a weighted average price of $49.07 per share, for an aggregate purchase price of approximately

$48 million

. As of October 30, 2015, the Company had approximately $257 million remaining under its share repurchase authorization.

CORPORATE FINANCE / ASSET RECYCLING

quarter, the Company completed the following transactions:

Sold an unconsolidated hospitality venture interest which owned one hotel for approximately $3 million. The Company continues to manage the hotel.

BALANCE SHEET / OTHER ITEMS

, the Company reported the following:

Total debt of approximately

$1.4 billion

Pro rata share of non-recourse unconsolidated hospitality venture debt of approximately

$682 million

compared with approximately

$638 million

Cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of

$569 million

, short-term investments of

$65 million

and restricted cash of

$97 million

Undrawn borrowing availability of approximately

$1.5 billion

under its revolving credit facility.

INFORMATION

The Company is reaffirming the following information for the

fiscal year:

Depreciation and amortization expense is expected to be approximately $310 million.

Interest expense is expected to be approximately $70 million.

The Company expects to open

The Company is revising the following information for the

Adjusted selling, general, and administrative expenses are expected to be approximately $305 million (compared to previous expectation of approximately $315 million).

Capital expenditures are expected to be approximately $290 million (compared to previous expectation of approximately $320 million), including investments in new properties of approximately $115 million (compared to previous expectation of approximately $150 million).

In addition to the capital expenditures described above, the Company intends to continue a strong level of investment spending. Investment spending includes acquisitions, equity investments in joint ventures, debt investments, contract acquisition costs or other investments.

CONFERENCE CALL INFORMATION

The Company will hold an investor conference call today,

November 3, 2015

, at 10:00 a.m. CT. All interested persons may listen to a simultaneous webcast of the conference call, which may be accessed through the Company's website at www.hyatt.com and selecting the Investor Relations link located at the bottom of the page, or by dialing 647.788.4901, passcode #52469697, approximately 10 minutes before the scheduled start time. For those unable to listen to the live broadcast, a replay will be available from 1:00 p.m. CT on November 3, 2015 through November 4, 2015 at midnight by dialing 404.537.3406, passcode #52469697. Additionally, an archive of the webcast will be available on the Company's website for approximately 90 days.

DEFINITIONS

We use the term Adjusted EBITDA throughout this earnings release. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define consolidated Adjusted EBITDA as net income attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated hospitality ventures Adjusted EBITDA based on our ownership percentage of each venture, adjusted to exclude the following items:

equity earnings (losses) from unconsolidated hospitality ventures;

asset impairments;

gains on sales of real estate;

other income (loss), net;

net income attributable to noncontrolling interests;

depreciation and amortization;

interest expense; and

provision for income taxes.

We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA of each of our reportable segments to corporate and other Adjusted EBITDA.

Our board of directors and executive management team focus on Adjusted EBITDA as a key performance and compensation measure both on a segment and on a consolidated basis. Adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance both on a segment and on a consolidated basis. Our president and chief executive officer, who is our chief operating decision maker, also evaluates the performance of each of our reportable segments and determines how to allocate resources to those segments, in significant part, by assessing the Adjusted EBITDA of each segment. In addition, the compensation committee of our board of directors determines the annual variable compensation for certain members of our management based in part on consolidated Adjusted EBITDA, segment Adjusted EBITDA or some combination of both.

We believe Adjusted EBITDA is useful to investors because it provides investors the...


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