Business travel revenue “significantly improved” at Hyatt Hotels Corp.’s full-service properties, the company announced Thursday during its third-quarter earnings call, increasing to a level 20 percent below the same timeframe in 2019, up from 38 percent below in the second quarter. That improvement continued into October, CEO Mark Hoplamazian said, adding that the segment was exhibiting “encouraging momentum.”
“We’re seeing strong recovery in certain sectors that have previously lagged such as tech, manufacturing and entertainment,” Hoplamazian said. “Given our conversations with customers and executives, we expect business transient to continue this positive trajectory in the months ahead.”
Group and meetings demand continues to surge, Hoplamazian said. “We booked 30 percent more in group business into 2023 for our Americas full-service managed properties as compared to the same booking period in 2019, and the rates at which we are booking business are more than 17 percent higher.”
Hoplamazian said that “we’ve seen continued strength in near-term demand” and added that Hyatt sales representatives who attended the IMEX America trade show in Las Vegas last month considered meeting planner attendees “enthusiastic and optimistic” about future demand prospects.
“There is strong pent-up demand, and we expect to see a continued acceleration in group business,” he said.
Q3 Metrics and Performance
Hyatt’s third-quarter systemwide comparable revenue per available room increased nearly 46 percent to $133.31, and U.S. RevPAR increased 35.6 percent to $147.70. Hoplamazian called it “strongest third quarter in the company’s history.”
Third-quarter global occupancy at Hyatt’s owned and leased hotels was 69.3 percent, up 13.1 percentage points year over year. Average daily rate at those properties increased 19.4 percent from the third quarter of 2021 to $255.62, in constant dollars. Net income was $28 million versus $120 million one year prior.
Hyatt’s third-quarter net rooms increased 18.7 percent year over year, although when excluding Apple Leisure Group, the portfolio of resort holdings Hyatt acquired last year, that figure is 4.5 percent. Hyatt’s development pipeline as of Sept. 30 included approximately 114,000 rooms.
Hyatt projects full-year 2022 RevPAR to increase 60 percent to 65 percent year over year, to a level 4 percent to 7 percent below 2019.
Hyatt Q2 performance
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