Hyatt Hotels Corp. fell the most in more than three months in New York trading after the chain controlled by the Pritzker family reported quarterly results that missed estimates, hampered by a sluggish Washington market and slower growth in international markets.
Hyatt, based in Chicago, fell 4.1 percent $36.50 at the close in New York, the biggest decline since July 12.
Third-quarter net income was $23 million, or 14 cents a share, the company said today in a statement. That missed the 18-cent average estimate of 15 analysts in a Bloomberg survey. Profit was up from $14 million, or 8 cents, a year earlier.
“The shift in the Jewish holidays in September and a weaker D.C. market impacted North American results, while slower growth in international markets, coupled with a stronger U.S. dollar impacted international results,” Nikhil Bhalla, an analyst at FBR & Co. in Arlington, Virginia, said in a note after the earnings release.
Revenue per available room, an industry measure of occupancy and rates, increased 4.2 percent for full-service hotels in North America during the quarter. Bhalla had expected 5 percent revpar growth. Overseas, revpar climbed 0.8 percent.
“In the short term, the company is seeing some headwinds, including slower growth of near-term group booking activity in North America and lower revenue growth in a number of international markets due to individual market dynamics,” Hyatt said in the statement. The hotelier gets about 70 percent of its earnings before interest, taxes, depreciation and amortization from the U.S.
Revenue rose 8.9 percent to $977 million in the quarter from $897 million a year earlier.
Starwood Hotels & Resorts Worldwide Inc., the owner of the W and St. Regis brands, fell to a three-month low last week after reporting slowing demand Europe and China and cutting a fourth-quarter forecast. Marriott International Inc., the largest publicly traded U.S. hotel chain, on Oct. 3 reported earnings that beat estimates, partly because year-earlier costs from the spinoff of its timeshare business weren’t unrepeated.