Hyatt Hotels’ stock took a hit after the company revealed its fourth-quarter performance was negatively impacted by both the presidential election season and the timing of the High Holy Days.
On Thursday, Hyatt, identified as (H) on the stock exchange, disclosed its recent financial results. Unfortunately, these figures were not in line with what Wall Street analysts had predicted, leading to a drop of nearly 11% in early trading.
A significant factor in this downturn, according to the company, was a dip in group demand, influenced by the election cycle—a pattern observed by other travel businesses too. Additionally, a shift in the Jewish holidays played a role. With Rosh Hashanah and Yom Kippur happening in early October instead of September in 2023, it appears more Jewish travelers chose to remain home for these observances, affecting travel and hotel business.
CEO Mark Hoplamazian, during an earnings call, pointed out that although the group’s revenue from rooms remained unchanged during the quarter, there was an increase of 5% when adjusting for the holidays and the November elections. He noted, “We usually experience a lull in group bookings during holiday periods,” according to a Hyatt spokesperson.
For the fourth quarter, Hyatt reported an adjusted earnings per share (EPS) of $0.42, with revenue reaching $1.60 billion. This fell short of expectations set by analysts from Visible Alpha, who had anticipated an EPS of $0.71 and revenues of $1.65 billion.
Despite this recent setback, Hyatt’s shares have risen approximately 14% over the past year.
This story has been updated to include the latest information on Hyatt’s share prices and their comments on the financial results. For the original piece, you can visit Investopedia.
