Hyatt Hotels Corporation (NYSE:H), an American multinational hospitality company headquartered in Chicago disclosed its preliminary financial results for the first 3 months of 2020 and the first half of April.
Numbers paint a grey picture, starting March. Hyatt started 2020 with a growth in single digit numbers (1.7% in January and 3.4% in February excluding Asia Pacific region) but experienced a significant decreases in demand in March.
Even though financial statements for the three months ended March 31, 2020 are not yet complete Hyatt said that they expect Adjusted EBITDA to “decrease materially”. Expected revenue for the first 3 months is between $980 million and $1.0 billion, which is a 20% drop from $1.2B in 2019.
System-wide occupancy rates as of April 15, 2020 are averaging approximately 15% for hotels that remain operational.
Chicago-based hotel chain also said that they will “remain on track to successfully execute plans to sell approximately $1.5 billion of real estate by March 2022” as part of their capital strategy.
Hyatt Hotels Corporation (NYSE: H) dropped by 2.5% at the start of the trading day on Tuesday and it is selling at $53.37 on Apr 21, 09:32 EDT .