CHICAGO--(BUSINESS WIRE)--Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported third quarter 2017 financial results. Net income attributable to Hyatt was $16 million, or $0.13 per diluted share, in the third quarter of 2017, compared to $62 million, or $0.47 per diluted share, in the third quarter of 2016. Adjusted net income attributable to Hyatt was $32 million, or $0.26 per diluted share, in the third quarter of 2017, compared to $61 million, or $0.47 per diluted share, in the third quarter of 2016. Refer to the table on page 4 of the schedules for a summary of special items impacting Adjusted net income and Adjusted earnings per share in the three months ended September 30, 2017.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, "Our third quarter results reflect continued, upward momentum in our business, with solid systemwide RevPAR growth, a double-digit percentage increase in our fee revenue and an expansion of our development pipeline. We continue to have sustained growth in our base of hotel rooms and remain on track for a record number of hotel openings in 2017. Given these results, we have increased the midpoint of our full-year outlook for RevPAR and Adjusted EBITDA."
Third quarter of 2017 financial highlights as compared to the third quarter of 2016 are as follows:
- Net income decreased 73.4% to $16 million.
- Adjusted EBITDA decreased 6.2% to $180 million, down 6.7% in constant currency.
- Comparable systemwide RevPAR increased 1.6%, including a decrease of 1.1% at comparable owned and leased hotels. Excluding the impacts of Jewish holiday timing and natural disasters, comparable systemwide RevPAR increased 2.6% and comparable owned and leased RevPAR increased 0.5%.
- Comparable U.S. hotel RevPAR decreased 0.1%; full service and select service hotel RevPAR decreased 0.7% and increased 1.4%, respectively. Excluding the impacts of Jewish holiday timing and natural disasters, comparable U.S. hotel RevPAR increased 1.3%; full service and select service hotel RevPAR increased 1.2% and 1.7%, respectively.
- Comparable owned and leased hotels operating margins decreased 40 basis points to 23.0%.
- Adjusted EBITDA margin decreased 260 basis points to 27.5%, in constant currency.
- Net hotel and net rooms growth was 9.0% and 6.5%, respectively.
Mr. Hoplamazian continued, "With the recent sale of two hotels and the completion of nearly $250 million of share repurchases in the third quarter, we are fulfilling our commitment to be a net seller of assets in 2017 and return substantial capital to shareholders. Looking ahead, we plan to extend this strategy to sell roughly $1.5 billion of real estate over the next three years, which we are confident will unlock additional shareholder value and drive the growth of our business."
Third quarter of 2017 financial results as compared to the third quarter of 2016 are as follows:
Owned and Leased Hotels Segment
Total owned and leased hotels segment Adjusted EBITDA decreased 13.8% (14.3% in constant currency) including a 38.0% decrease in pro rata share of unconsolidated hospitality ventures Adjusted EBITDA. The decrease in total segment Adjusted EBITDA was driven by the lapping of the 2016 Olympic Games, transaction activity, natural disasters, and the shift in the timing of certain Jewish holidays to the third quarter in 2017, from the fourth quarter in 2016. Refer to the table on page 17 of the schedules for a detailed list of portfolio changes and the year-over-year net impact to total owned and leased hotels segment Adjusted EBITDA.
Owned and leased hotels segment revenues decreased 2.7% (3.2% in constant currency). RevPAR for comparable owned and leased hotels decreased 1.1%. Occupancy decreased 160 basis points and ADR increased 1.0%.
Management and Franchise Fees
Total fee revenue increased 12.2% (11.9% in constant currency) to $122 million, driven by new hotels and improved performance at existing hotels. Base management fees increased 5.4% to $51 million and incentive management fees increased 21.4% to $30 million. Franchise fees increased 11.9% to $30 million. Other fee revenues increased 23.4% to $11 million.
Americas Management and Franchising Segment
Americas management and franchising segment Adjusted EBITDA increased 6.8% (6.5% in constant currency). RevPAR for comparable Americas full service hotels decreased 0.3%; occupancy decreased 30 basis points and ADR increased 0.2%. RevPAR for comparable Americas select service hotels increased 1.7%; occupancy increased 110 basis points and ADR increased 0.4%. Revenue from management, franchise and other fees increased 5.9% (5.7% in constant currency).
Transient rooms revenue at comparable U.S. full service hotels increased 1.5%; room nights increased 2.9% and ADR decreased 1.3%. Group rooms revenue at comparable U.S. full service hotels decreased 6.6%; room nights decreased 8.0% and ADR increased 1.5%. Group demand was negatively impacted by Jewish holiday timing and natural disasters.
The following seven hotels were added to the portfolio in the third quarter:
- Carlton Hotel Newport Beach, a Hyatt Affiliated Hotel (franchised, 343 rooms). Hyatt expects this hotel to be rebranded as a Hyatt Regency.
- Hyatt Regency Lake Washington at Seattle’s Southport (managed, 347 rooms)
- Hyatt Centric Guatemala City, Guatemala (franchised, 138 rooms)
- Hyatt Place Eugene / Oakway Center (franchised, 130 rooms)
- Hyatt Place Santa Cruz (franchised, 106 rooms)
- Hyatt Place St. Petersburg / Downtown (franchised, 175 rooms)
- Hyatt House Chicago / Oak Brook (franchised, 144 rooms)
One hotel was removed from the portfolio in the third quarter.
Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising Segment
ASPAC management and franchising segment Adjusted EBITDA increased 19.9% (21.2% in constant currency). RevPAR for comparable ASPAC full service hotels increased 6.3%, driven by strong RevPAR growth in Greater China. Occupancy increased 430 basis points and ADR increased 0.2%. Revenue from management, franchise and other fees increased 17.8% (18.8% in constant currency).
The following hotel was added to the portfolio in the third quarter:
- Grand Hyatt Changsha, China (managed, 345 rooms)
Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising Segment
EAME/SW Asia management and franchising segment Adjusted EBITDA increased 41.3% (36.1% in constant currency). RevPAR for comparable EAME/SW Asia full service hotels increased 3.5%, driven by improved performance in Western Europe and Turkey. Occupancy increased 160 basis points and ADR increased 0.9%. Revenue from management, franchise and other fees increased 18.6% (15.6% in constant currency).
The following hotel was added to the portfolio in the third quarter:
- Hyatt Regency Lucknow, India (managed, 206 rooms)
Corporate and Other
Corporate and other Adjusted EBITDA decreased 25.9% (consistent in constant currency), primarily driven by increased selling, general, and administrative expenses.
Corporate and other revenues increased 175.6% (consistent in constant currency), primarily driven by wellness business acquisitions (Miraval and Exhale Enterprises, Inc. ("exhale")) and increased revenues related to the Company's co-branded credit card program.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased 20.2%, inclusive of rabbi trust impact and stock- based compensation. Adjusted selling, general, and administrative expenses increased 19.5%, primarily driven by payroll and related expenses, master brand marketing spend in support of the launch of the World of Hyatt platform, and additional expenses related to the acquisitions of Miraval and exhale. Refer to the table on page 10 of the schedules for a reconciliation of selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses.
OPENINGS AND FUTURE EXPANSION
Nine hotels (or 1,934 rooms) were added in the third quarter of 2017, each of which is listed above. The Company's net rooms increased 6.5%, compared to the third quarter of 2016. The Company is on pace to add at least 60 hotels in the 2017 fiscal year.
As of September 30, 2017, the Company had executed management or franchise contracts for approximately 315 hotels (or approximately 69,000 rooms), compared to the expectation for 300 hotels and 66,000 rooms as of June 30, 2017. The executed contracts represent important potential entry into several new countries and expansion into new markets or markets in which Hyatt is under-represented.
During the third quarter of 2017, the Company repurchased 4,012,093 shares of common stock for an aggregate purchase price of approximately $247 million. Repurchase activity included 1,813,459 Class B shares at $59.29 per share, 1,401,787 Class A shares at $57.07 per share, and 796,847 Class A shares which settled as the final tranche of the March 2017 accelerated share repurchase (ASR). Under the March 2017 ASR, the Company repurchased a total of 5,393,669 shares at a weighted average share price of $55.62. The Company ended the third quarter with 47,426,878 Class A and 74,123,330 Class B shares outstanding.
No additional share repurchases have been made to date in the fourth quarter of 2017. As of October 27, 2017, Hyatt had approximately $302 million remaining under its share repurchase authorization.
CORPORATE FINANCE / ASSET RECYCLING
During the third quarter, the Company completed the following transactions:
- Made a minority investment in Oasis Luxury Rentals, Inc., a private accommodations company, and acquired exhale, which provides spa services and high-quality fitness classes. Neither of these transactions was material to the Company.
Subsequent to the end of the third quarter, the Company completed the following portfolio transaction:
- Sold Royal Palms Resort and Spa in Phoenix, Arizona (119 rooms) and Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch (493 rooms) for approximately $305 million. The hotels continue to be Hyatt-branded under long-term management agreements.
CAPITAL STRATEGY UPDATE
The Company is announcing plans to sell approximately $1.5 billion of real estate over the next three years. This represents an evolution of Hyatt's capital strategy to unlock additional shareholder value and provide funds for future growth investments, while maintaining balance sheet capacity that will continue to fuel growth. These plans will also accelerate the shift to a more fee-driven business model.
BALANCE SHEET / OTHER ITEMS
As of September 30, 2017, the Company reported the following:
- Total debt of $1.8 billion.
- Pro rata share of unconsolidated hospitality venture debt of $571 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
- Cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of $383 million, restricted cash of $224 million and short-term investments of $56 million.
- Undrawn borrowing availability of $1.2 billion under Hyatt's revolving credit facility.
The Company is reaffirming the following information for the 2017 fiscal year:
- Adjusted selling, general, and administrative expenses are expected to be approximately $310 million. This excludes approximately $31 million of stock-based compensation expense and any potential expenses related to benefit programs funded through rabbi trusts.
- 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.
- Interest expense is expected to be approximately $80 million.
- The effective tax rate is expected to be approximately 36% to 38%.
The Company is revising the following information for the 2017 fiscal year:
- Comparable systemwide RevPAR is expected to increase approximately 2.5% to 3%, compared to fiscal year 2016. The Company's previous expectation was 1% to 3%.
- Net income is expected to be approximately $193 million to $210 million, compared to the previous expectation of $173 million to $201 million.
- Adjusted EBITDA is expected to be approximately $805 million to $815 million, compared to the previous expectation of $795 million to $815 million. These estimates reflect an approximate $6 million reduction related to hotel dispositions completed at the beginning of the fourth quarter 2017. These estimates also include a negative impact from foreign currency of approximately $5 million (low end of the forecast) to $0 (high end of the forecast), compared to previous expectation of $10 million to $5 million. Refer to the table on page 3 of the schedules for a reconciliation of Hyatt's forecast for Net Income to Adjusted EBITDA.
- Capital expenditures are expected to be approximately $300 million, compared to the previous expectation of $350 million. The decrease is attributable to a shift in the timing of certain hotel renovations and recent hotel dispositions.
- Depreciation and amortization expense is expected to be approximately $365 million to $369 million, compared to the previous expectation of $362 million to $366 million.
- The Company expects to open at least 60 hotels, compared to the previous expectation of approximately 60 hotels.
Hyatt's outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that Hyatt will achieve these results.
CONFERENCE CALL INFORMATION
The Company will hold an investor conference call today, November 2, 2017, at 10:30 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 investors.hyatt.com, or by dialing 647.689.4468 or 833.238.7946, passcode #90906055, approximately 10 minutes before the scheduled start time. For those unable to listen to the live broadcast, a replay will be available from 1:30 p.m. CT on November 2, 2017 through November 3, 2017 at midnight by dialing 416.621.4642, passcode #90906055. Additionally, an archive of the webcast will be available on the Company’s website for 90 days.
AVAILABILITY OF INFORMATION ON HYATT'S WEBSITE
Investors and others should note that Hyatt routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) filings, press releases, public conference calls, webcasts and the Hyatt Investor Relations website. While not all of the information that the Company posts to the Hyatt Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Hyatt to review the information that it shares at the Investor Relations link located at the bottom of the page on hyatt.com. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Sign up for Email Alerts" in the "Investor Resources" section of Hyatt's website at investors.hyatt.com.
Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA") and EBITDA
We use the terms Adjusted EBITDA and EBITDA throughout this earnings release. Adjusted EBITDA and EBITDA, as the Company defines them, are non-GAAP measures. We define consolidated Adjusted EBITDA as net income attributable to Hyatt Hotels Corporation plus its pro rata share of unconsolidated hospitality ventures Adjusted EBITDA based on its ownership percentage of each venture, adjusted to exclude the following items:
- interest expense;
- provision for income taxes;
- depreciation and amortization;
- equity earnings (losses) from unconsolidated hospitality ventures;
- stock-based compensation expense;
- gains (losses) on sales of real estate; and
- other income (loss), net.
We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA of each of our reportable segments and eliminations 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 operations both on a segment and on a consolidated basis. Our president and chief executive officer, who is the 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 same information that the Company uses internally for purposes of assessing operating performance and making compensation decisions.
Adjusted EBITDA and EBITDA are not substitutes for net income attributable to Hyatt Hotels Corporation, net income, or any other measure prescribed by accounting principles generally accepted in the United States of America (GAAP). There are limitations to using non-GAAP measures such as Adjusted EBITDA and EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income generated by our business. Our management compensates for these limitations by reference to its GAAP results and using Adjusted EBITDA supplementally.
Adjusted EBITDA Margin
We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenues, net of other revenues from managed properties. Other revenues from managed properties reflect reimbursed costs incurred on behalf of managed hotel property owners. We believe Adjusted EBITDA margin is useful to investors because it provides investors the same information that the Company uses internally for purposes of assessing operating performance.
Adjusted Net Income
Adjusted net income, as we definite it, is a non-GAAP measure. We define Adjusted net income as net income attributable to Hyatt Hotels Corporation excluding special items, which are those items deemed not to be reflective of ongoing operations. We believe Adjusted net income provides meaningful comparisons of ongoing operating results.
Adjusted Selling, General, and Administrative (SG&A) Expenses
Adjusted SG&A expenses, as we define it, is a non-GAAP measure. Adjusted SG&A expenses exclude the impact of expenses related to benefit programs funded through rabbi trusts and stock-based compensation expense. Adjusted SG&A expenses assist us in comparing our performance over various reporting periods on a consistent basis since it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis.
Comparable Owned and Leased Hotels Operating Margin
We define comparable owned and leased hotels operating margin as the difference between comparable owned and leased hotels revenues and comparable owned and leased hotels expenses. Comparable owned and leased hotels revenues is calculated by removing non-comparable hotels revenues from owned and leased hotels revenues as reported in our condensed consolidated statements of income. Comparable owned and leased hotels expenses is calculated by removing both non-comparable owned and leased hotels expenses and the impact of expenses funded through rabbi trusts from owned and leased hotels expenses as reported in our condensed consolidated statements of income. We believe comparable owned and leased hotels operating margin is useful to investors because it provides investors the same information that the Company uses internally for purposes of assessing operating performance.
"Comparable systemwide hotels" represents all properties we manage or franchise (including owned and leased properties) and that are operated for the entirety of the periods being compared and that have not sustained substantial damage, business interruption or undergone large scale renovations during the periods being compared or for which comparable results are not available. We may use variations of comparable systemwide hotels to specifically refer to comparable systemwide Americas full service or select service hotels for those properties that we manage or franchise within the Americas management and franchising segment, comparable systemwide ASPAC full service or select service hotels for those properties that we manage or franchise within the ASPAC management and franchising segment, or comparable systemwide EAME/SW Asia full service or select service hotels for those properties that we manage or franchise within the EAME/SW Asia management and franchising segment. "Comparable operated hotels" is defined the same as "comparable systemwide hotels" with the exception that it is limited to only those hotels we manage or operate and excludes hotels we franchise. "Comparable owned and leased hotels" represents all properties we own or lease and that are operated and consolidated for the entirety of the periods being compared and have not sustained substantial damage, business interruption or undergone large scale renovations during the periods being compared or for which comparable results are not available. Comparable systemwide hotels and comparable owned and leased hotels are commonly used as a basis of measurement in our industry. "Non-comparable systemwide hotels" or "non-comparable owned and leased hotels" represent all hotels that do not meet the respective definition of "comparable" as defined above.
Constant Dollar Currency
We report the results of our operations both on an as reported basis, as well as on a constant dollar basis. Constant dollar currency, which is a non-GAAP measure, excludes the effects of movements in foreign currency exchange rates between comparative periods. We believe constant dollar analysis provides valuable information regarding our results as it removes currency fluctuations from our operating results. We calculate constant dollar currency by restating prior-period local currency financial results at the current period’s exchange rates. These adjusted amounts are then compared to our current period reported amounts to provide operationally driven variances in our results.
Revenue per Available Room (RevPAR)
RevPAR is the product of the average daily rate (ADR) and the average daily occupancy percentage. RevPAR does not include non-room revenues, which consist of ancillary revenues generated by a hotel property, such as food and beverage, parking, telephone and other guest service revenues. Our management uses RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a regional and segment basis. RevPAR is a commonly used performance measure in our industry. RevPAR changes that are driven predominantly by changes in occupancy have different implications for overall revenue levels and incremental profitability than do changes that are driven predominantly by changes in average room rates. For example, increases in occupancy at a hotel would lead to increases in room revenues and additional variable operating costs (including housekeeping services, utilities and room amenity costs), and could also result in increased ancillary revenues (including food and beverage). In contrast, changes in average room rates typically have a greater impact on margins and profitability as there is no substantial effect on variable costs.
Average Daily Rate (ADR)
ADR represents hotel room revenues, divided by the total number of rooms sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in our industry, and we use ADR to assess the pricing levels that we are able to generate by customer group, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described above.
Occupancy represents the total number of rooms sold divided by the total number of rooms available at a hotel or group of hotels. Occupancy measures the utilization of a hotel's available capacity. We use occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help us determine achievable ADR levels as demand for hotel rooms increases or decreases.
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, outlook, occupancy, ADR and growth trends, market share, the number of properties we expect to open in the future, the amount by which the Company intends to reduce its real estate asset base and the anticipated timeframe for such asset dispositions, our expected adjusted SG&A expense, our estimated comparable systemwide RevPAR growth, our estimated Adjusted EBITDA growth, maintenance and enhancement to existing properties capital expenditures, investments in new properties capital expenditures, depreciation and amortization expense and interest expense estimates, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and the pace of economic recovery following economic downturns; levels of spending in business and leisure segments as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters such as earthquakes, tsunamis, tornadoes, hurricanes, floods, wildfires, oil spills, nuclear incidents and global outbreaks of pandemics or contagious diseases or fear of such outbreaks; our ability to successfully execute on our strategy to reduces our real estate asset base within targeted timeframes and at expected values; declines in the value of our real estate assets; our ability to successfully achieve certain levels of operating profits at hotels that have performance guarantees in favor of our third-party owners; the impact of hotel renovations; risks associated with our capital allocation plans and common stock repurchase program, including the amount and timing of share repurchases and the risk that our common stock repurchase program could increase volatility and fail to enhance stockholder value; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers, including the entry of new competitors in the lodging business; relationships with colleagues and labor unions and changes in labor laws; financial condition of, and our relationships with, third-party property owners, franchisees and hospitality venture partners; the possible inability of third-party owners, franchisees or development partners to access capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and the introduction of new brand concepts; the timing of acquisitions and dispositions; failure to successfully complete proposed transactions (including the failure to satisfy closing conditions or obtain required approvals); unforeseen terminations of our management or franchise agreements; changes in federal, state, local or foreign tax law; increases in interest rates and operating costs; foreign exchange rate fluctuations or currency restructurings; lack of acceptance of new brands or innovation; our ability to successfully implement our new global loyalty platform, and the level of acceptance of the new program by our guests; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, including as a result of industry consolidation, and the markets where we operate; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; violations of regulations or laws related to our franchising business; and other risks discussed in the Company's filings with the SEC, including our annual report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a portfolio of 13 premier brands. As of September 30, 2017 the Company's portfolio included 739 properties in 57 countries. The Company's purpose to care for people so they can be their best informs its business decisions and growth strategy and is intended to create value for shareholders, build relationships with guests and attract the best colleagues in the industry. The Company's subsidiaries develop, own, operate, manage, franchise, license or provide services to hotels, resorts, branded residences and vacation ownership properties, including under the Park Hyatt®, Miraval®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Andaz®, Hyatt Centric®, The Unbound Collection by Hyatt™, Hyatt Place®, Hyatt House®, Hyatt Ziva™, Hyatt Zilara™ and Hyatt Residence Club® brand names and have locations on six continents. By adoption of a board resolution, Hyatt Corporation has expressly abandoned its rights to the composite mark Classic Residence by Hyatt. This abandonment has no impact on any other trademark owned by Hyatt Corporation, including without limitation, Hyatt® and related marks. For more information about Hyatt Hotels Corporation, please visit www.hyatt.com.
The financial section of this release, including a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures, is provided on the Company's website at investors.hyatt.com.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the definitions of the non-GAAP measures presented beginning on page 7 and non-GAAP reconciliations included in the schedules.