Hyatt Hotels issued a press statement on Monday, saying that it would regretfully lay off 1300 of its employees worldwide as a measure to cope with the coronavirus crisis.
On May 6, 2020, Hyatt reported an adjusted net loss of $35 million, or $0.35 per diluted share, in the first quarter of 2020. Other financial highlights included:
- Net income (loss) decreased 262.8% to a net loss of $103 million.
- Adjusted EBITDA decreased 54.3% to $86 million, a decrease of 53.9% in constant currency.
- Comparable system-wide RevPAR decreased 28.1%, including a decrease of 25.8% at comparable owned and leased hotels.
- Comparable U.S. hotel RevPAR decreased 24.5%; full-service hotel RevPAR decreased 25.2% and select-service hotel RevPAR decreased 23.0%.
- Comparable owned and leased hotels operating margin decreased 1,060 basis points to 14.5%.
- The adjusted EBITDA margin of 18.3% decreased 1,010 basis points in constant currency.
To cope with these losses, the company will restructure roles across its global corporate functions and plans to lay off about 1300 staff currently employed in management positions.
“COVID-19 has thrown our industry into unknown territory,” said Mark Hoplamazian, President and Chief Executive Officer, Hyatt. “While parting ways with our colleagues is excruciating, we must be sensitive to commercial realities so we can continue to fulfill our purpose of care over the long term – through this pandemic and for what lies beyond. Our goal is to emerge from this crisis with strength, and ultimately position our business and our world-class teams for when the hospitality industry rebounds and when our guests and customers once again choose Hyatt.”
Laid off Hyatt employees will be eligible to receive severance pay and other benefits, while those with pressing financial hardships can seek financial support from the Hyatt Care Fund.