Hyatt Hotels (NYSE: H) reported Q4 EPS of $0.29, $0.01 better than the analyst estimate of $0.28.

Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, "Our business continues to have good momentum and we believe we\'re well-positioned for continued growth in 2017. In 2016, Adjusted EBITDA grew approximately 5%, fueled by systemwide comparable RevPAR growth of 2.5%. Excluding the impact of foreign exchange, Adjusted EBITDA grew approximately 6%. For 2017, we expect systemwide comparable RevPAR growth of approximately 0% to 2% and Adjusted EBITDA growth of approximately 3% to 7%, in constant currency and before the impact of transactions."

2017 OUTLOOK

The Company is providing the following information for the 2017 fiscal year:

• Net income is expected to be approximately $94 million to $129 million.
• Adjusted EBITDA is expected to be approximately $795 million to $830 million. These estimates include a negative impact from foreign currency translation of approximately $15 million (reflected in the low end of the forecast) to $10 million (reflected in the high end of the forecast). Refer to the table on page 3 of the schedules for a full reconciliation of the Company\'s forecast for Net Income attributable to Hyatt Hotels Corporation to Adjusted EBITDA, a Non-GAAP measure. No additional disposition or acquisition activity has been included in the forecast, including financial statement impacts related to the Company\'s investment in Playa Hotels & Resorts B.V. (\"Playa\") which may occur in connection with Playa’s potential business combination with Pace Holdings Corporation or potential future initial public offering. Please refer to Hyatt\'s annual report on Form 10-K for further details regarding Hyatt\'s investment in Playa.
• Comparable systemwide RevPAR is expected to increase approximately 0% to 2%, as compared to fiscal year 2016.
• Adjusted selling, general, and administrative expenses are expected to be approximately $310 million. This includes approximately $20 million of new spending related to key growth initiatives, and excludes approximately $31 million of stock-based compensation expense, and any potential expenses related to benefit programs funded through rabbi trusts.
• Capital expenditures are expected to be approximately $430 million. The increase from capital expenditures in 2016 is attributable to the following: approximately $55 million related to the redevelopment and repositioning of Miraval Group assets; approximately $65 million related to new corporate development projects which will be recycled over time; approximately $50 million related to Hyatt\'s new corporate headquarters; and approximately $50 million related to increased levels of reinvestment in the Company\'s existing owned and leased portfolio due to the timing of property renovations.
• 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 unconsolidated hospitality ventures, debt investments, contract acquisition costs and other investments. The Company expects that the funds required for these investments over time would be generated through dispositions of existing owned and leased hotels as well as the sale of ownership interests in unconsolidated hospitality ventures.
• Depreciation and amortization expense is expected to be approximately $370 million to $374 million.
• Interest expense is expected to be approximately $77 million.
• Other income (loss), net is expected to be negatively impacted by approximately $80 million related to performance guarantee expense for the four managed hotels in France. Hyatt expects 2017 to be the peak year for this expense due to the timing of extensive hotel renovations and persistent market softness.
• The effective tax rate is expected to be approximately 36% to 38%. The increase in tax rate versus 2016 is attributable to non-recurring discrete tax benefits in 2016 as well as unbenefited tax losses in 2017.
• The Company expects to open approximately 60 hotels.

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