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Hyatt Hotels sees profit drop

Updated: May 1, 2013 5:49PM



Hyatt Hotels Corp. said Wednesday that its first-quarter net income fell on rising costs and revenue that came in below Wall Street expectations.

The Chicago-based company said that group demand declined, which it blamed partly on the timing of Easter this year.

Net income was $8 million, or 5 cents per share, compared with $10 million, or 6 cents per share, a year earlier.

The company said that excluding items such as asset write-downs, it would have earned 9 cents per share. Analysts, who usually exclude items, expected adjusted earnings of 8 cents per share.

With higher average daily room rates at owned and leased hotels, revenue rose to $975 million from $958 million, but that still fell short of analysts’ forecast of $1 billion, according to FactSet.

Expenses at owned and leased hotels rose 4 percent.

The company owns, manages and franchises hotels under several names including Hyatt, Grand Hyatt and Hyatt Regency.



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