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Hyatt Withdraws 2020 Guidance Due To Coronavirus

Hyatt Hotels Corporation (NYSE:H) today announced it is withdrawing its previously announced 2020 outlook and earnings sensitivity based on Greater China RevPAR due to the impact on travel demand outside of

Benzinga · 03/02/2020 22:01

Hyatt Hotels Corporation (NYSE:H) today announced it is withdrawing its previously announced 2020 outlook and earnings sensitivity based on Greater China RevPAR due to the impact on travel demand outside of Greater China, in part as a result of new corporate travel restrictions in North America and Europe, as well as near-term cancellations outside of Greater China, as a result of the COVID-19 outbreak.

Mark S. Hoplamazian, president and chief executive officer, said, "We are very proud of what our colleagues in the Hyatt family are doing to provide care for our guests, customers, hotel owners, and the communities in which our hotels operate, as the impact of COVID-19 continues to be felt in an increasing number of communities around the world. It is in these types of circumstances that our purpose – to care for people so they can be their best – has the greatest impact."

"This is an evolving situation, and our ability to assess the financial impact of COVID-19 on our business continues to be limited due to quickly changing circumstances and uncertain consumer demand for travel. The 2020 outlook we provided with our fourth quarter earnings announcement was clearly stated as our base case excluding the impact of COVID-19. Since then, we have continued to monitor the situation and, while we remain unable at this time to quantify the full-year impact on our financial results, we believe it is appropriate to withdraw our previously announced 2020 outlook and earnings sensitivity based on Greater China RevPAR. Over the past week, we have seen the outbreak spread beyond Greater China as well as temporary travel restrictions imposed by many companies, resulting in a decrease in near-term transient bookings and an increase in near-term group cancellations in North America and Europe that will impact our full-year outlook and earnings sensitivity. We continue to closely monitor the situation, and plan to provide more information during our first quarter earnings call based on the information we have available at that time."

"We are confident in the resilience and capabilities of our teams to manage through the challenges our industry faces. We continue to care for our colleagues, guests, customers, hotel owners, and the communities in which our hotels operate that have been affected by this public health issue. Our thoughts remain with the individuals and communities affected across the world as the public health response to COVID-19 continues."