For now, the Hyatt (backed by the Pritzker family) and its competitors are downplaying the impact of the Russian invasion on their business.
Speaking Tuesday at the Raymond James Institutional Investors Conference in Orlando, Hyatt Chief Financial Officer Joan Bottarini said the company is watching the Russia-Ukraine situation “extremely closely” but “we haven’t seen any material impacts.”
Marriott International CEO Tony Capuano said yesterday during the JPMorgan Gaming, Lodging, Restaurant & Leisure Management Access Forum in Las Vegas that the company has 28 managed and franchised hotels in Russia, which collectively represent less than 1% of the revenue it gets from fees. Russian travelers, he said, also account for less than 1% of all nightly hotel room bookings around the world.
“We are very focused on the safety of our associates and the safety of our guests in those markets. But from a materiality perspective in terms of the company’s financial performance, (it’s) not particularly significant,” Capuano said of Russia.
As for whether the invasion will impact hotel business in Europe at large, Capuano said it’s too soon to say. “Recovery around the world has largely been driven by traveler confidence. And depending on how the situation evolves in Ukraine, could that have an impact on traveler confidence to Europe? Of course.”
Shares of Hyatt closed Tuesday at just under $85 apiece, roughly even with the company’s stock price a year ago, but down 11% year to date.
