Hyatt Hotels Shares Dip After Earnings Miss Expectations

Hyatt Hotels Corporation saw its shares plummet nearly 10% in early trading Thursday. This drop followed the release of disappointing fourth-quarter financial results.

Analysts predicted earnings per share (EPS) of $0.71 on revenue of $1.65 billion. However, Hyatt reported adjusted EPS of $0.42 on revenue of $1.60 billion.

Election and Holidays Impact Business

Hyatt cited several factors contributing to the shortfall. Notably, the company pointed to decreased group demand, likely influenced by the presidential election. Other travel companies have reported similar trends. Additionally, Hyatt highlighted the impact of shifted Jewish holidays. Rosh Hashanah and Yom Kippur fell earlier in October 2023 compared to September 2022. This shift potentially kept more Jewish travelers home, impacting fourth-quarter bookings.

Despite the recent dip, Hyatt’s shares have enjoyed a strong performance over the past 12 months, rising nearly 20%.