Hyatt Covid-19 Update (Corporate)

Hyatt, on Wednesday, released its first-quarter financial results that also include information about the effect of the Covid-19 pandemic to the company.

I went through the filing and will dial into the call today to see if there are any additional tidbits about what Hyatt’s guidance is for the rest of the year and 2021.

You can access Hyatt here.

READ MORE: World of Hyatt Rate & Bonus Points Promotions

Here are some tidbits as of April 30:

  • 35% of all hotels were closed
  • 82% owned and leased hotels had suspended operations
  • 62% of full-service hotels had suspended operations in the Americas
  • 19% of select-service hotels were closed in the Americas
  • 17% of ASPAC (Asia-Pacific) hotels closed
  • 58% EAME/SW Asia (Europe, Africa, Middle East & Southwestern Asia) hotels closed
  • 600 of Hyatt’s 932 hotels are in the United States

Here are some notes from the call:

  • April RevPAR down 96% in the Americas
  • April RevPAR down 95% in EMEA/SW Asia
  • April RevPAR down 85%/90% in ASPAC latter if excluding Greater China
  • Current liquidity allows operating at minimum for 30 months
  • Hygiene manager at every hotel
  • Breakeven for full-service hotel 40% to 45% occupancy
  • Breakeven for select-service hotel 30% to 35% occupancy
  • Minimum 15% occupancy for reopening

Hyatt Brand Distribution March 31, 2020:

Here’s the announcement from Hyatt:

Download (PDF, 316KB)

Conclusion

The first quarter (January – March) results won’t yet fully factor in the severity of Covid-19 to the hospitality sector due to most of the world not closing until early/mid-March. The second-quarter results will be bad, awful.

The select service (Hyatt Place and Hyatt House) hotels are mostly open while full-service ones are closed, especially those that are owned and leased by Hyatt itself.

Hyatt’s financial standing is good, and the hotel company will get through this pandemic. It will be very challenging few years for the sector, however.

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