Dive Brief:
- Hyatt Hotels Corporation reported second quarter 2023 earnings on Thursday, posting record total fee revenue after system-wide RevPAR increased 15% year on year and 8% compared to the same period in 2019. Net rooms growth increased by 6.9%.
- In Q2, Hyatt’s net income was $68 million, down from $206 million in the same quarter last year. Meanwhile, adjusted EBITDA increased to $273 million in the second quarter, up from $255 million at the same time last year.
- This was Hyatt’s fifth consecutive record quarter. In an earnings call, President and CEO Mark Hoplamazian said the company’s outlook “remains optimistic,” with performance bolstered by continued leisure transient demand and strong business travel recovery.
Dive Insight:
“Leisure guests continue to prioritize travel,” Hoplamazian said on the call with analysts, noting leisure transient revenue increased by 26% over the same quarter of 2019. Business recovery, he added, continued to “gain momentum.”
The company grew its pipeline in the second quarter to 119,000 rooms, representing approximately 40% of Hyatt’s existing portfolio.
“We believe our increasing asset-light earnings mix and free cash flow define a clear path for continued success and enhanced shareholder value into the future," Hoplamazian said in the earnings release.
He added that the World of Hyatt loyalty program is seeing significant growth, having added 7 million new members in the past 12 months, an increase of 20%.
Hoplamazian also noted that Hyatt Studios — the company’s first upper-midscale brand in the Americas, announced in Q2 — has generated significant interest from potential investors. The CEO said he expects the first one to open in late 2024.
Hyatt also completed its acquisition of luxury hotel platform Mr & Mrs Smith in the quarter, which will allow guests to book properties on the platform through Hyatt’s own digital channels.
