Hyatt Hotels (NYSE: H) reported Q1 EPS of $0.45, $0.17 better than the analyst estimate of $0.28.

Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, "We had a strong start to the year, highlighted by continued growth of management and franchising fees. The integration of the Two Roads brands remains on track and is expected to fuel future growth in our managed and franchised business. We are pleased to see continued demand for our brands among developers which drove sequential expansion of our pipeline of executed contracts even as we maintained industry-leading net rooms growth."

First quarter of 2019 financial highlights as compared to the first quarter of 2018 are as follows:

• Net income decreased 84.6% to $63 million.
• Adjusted EBITDA decreased 7.3% to $187 million, a decrease of 6.1% in constant currency.
• Comparable system-wide RevPAR increased 1.8%, including an increase of 2.7% at comparable owned and leased hotels. Excluding the benefit from the timing of the Easter holiday, comparable RevPAR at system-wide hotels and comparable owned and leased hotels would have increased 1.4% and 2.2%, respectively.
• Comparable U.S. hotel RevPAR decreased 0.3%; full service hotel RevPAR increased 0.1% and select service hotel RevPAR decreased 1.3%.
• Net rooms growth was 13.7%, or 7.3% excluding the acquisition of Two Roads Hospitality LLC in the fourth quarter of 2018.
• Comparable owned and leased hotels operating margin increased 120 basis points to 24.7%.
• Adjusted EBITDA margin of 28.5% decreased 220 basis points in constant currency.

Mr. Hoplamazian continued, "Our outlook for the balance of 2019 is consistent with our views at the beginning of the year based on underlying business trends. We expect growth in both system-wide RevPAR and hotel rooms to sustain upward momentum in our lodging fees as we continue to evolve to an asset-lighter business model."

2019 OUTLOOK

The Company is revising the following information for the 2019 fiscal year:

• Net income is expected to be approximately $144 million to $183 million, and primarily reflects changes in expected Other (income) loss, net and Equity losses from unconsolidated hospitality ventures. Please refer to table on page 13 of the schedules for revised ranges.

The Company is reaffirming the following information for the 2019 fiscal year:

• Comparable system-wide RevPAR is expected to increase approximately 1% to 3%, as compared to fiscal year 2018.
• Adjusted EBITDA is expected to be approximately $780 million to $800 million. These estimates include an unfavorable impact from foreign currency of approximately $7 million (low end of the forecast) to $2 million (high end of the forecast). Refer to the table on page 13 of the schedules for a reconciliation of Net Income to Adjusted EBITDA.
• Adjusted EBITDA contribution from the Two Roads acquisition prior to non-recurring integration-related costs is estimated to be approximately $20 million to $25 million.
• Interest expense is expected to be approximately $78 million to $79 million.
• Adjusted selling, general, and administrative expenses are expected to be approximately $345 million inclusive of $25 million of expenses related to one-time integration costs for Two Roads. Adjusted selling, general, and administrative expenses exclude approximately $35 million of stock-based compensation expense and any potential impact related to benefit programs funded through rabbi trusts.
• The Company expects to grow units, on a net rooms basis, by approximately 7.0% to 7.5%, reflecting over 80 new hotel openings.
• Depreciation and amortization expense is expected to be approximately $347 million to $352 million.
• Other income (loss), net is expected to be negatively impacted by approximately $40 million to $50 million related to performance guarantee expense for the four managed hotels in France.
• The effective tax rate is expected to be approximately 28% to 30%.
• Capital expenditures are expected to be approximately $375 million.
• The Company expects to return approximately $300 million to shareholders through a combination of cash dividends on its common stock and share repurchases.

For earnings history and earnings-related data on Hyatt Hotels (H) click here.