Hyatt’s Q3 RevPAR increases as a result of improved demand

Hyatt Hotels Corporation’s third-quarter earnings soared as the company’s net income increased to $30 million, from $5 million a year earlier.

Published: 08 Nov 2010

Hyatt Hotels Corporation’s third-quarter earnings soared as the company’s net income increased to $30 million, from $5 million a year earlier.

Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said during the third quarter RevPAR, margins, and fees increased as a result of improved demand.

“Higher levels of corporate and group business resulted in improved performance at convention and business hotels in particular. International hotels continued to perform well as occupancies and rates increased in several regions, contributing to fee growth of approximately 25 percent in the quarter,” Hoplamazian said.

RevPAR for comparable owned and leased hotels increased 6.9 in the third quarter of 2010 compared to the same period in 2009. Occupancy improved 440 basis points, and ADR increased 0.7 percent. Revenue climbed to $879 million from $806 million.

Improvement

Last month, Marriott indicated that corporate and leisure demand continues to strengthen. The group stated that it is leading the U.S. industry in pushing retail price increases.

J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said, “We expect 2011 to be even better than 2010 as demand and pricing continue to strengthen. We are currently forecasting 2011 systemwide worldwide REVPAR to increase 6 to 8 percent. We also expect to open 25,000 to 30,000 rooms worldwide in 2011.”

Starwood Hotels & Resorts recently shared that the company’s “distinctive and compelling” brands are gaining share, and Starwood’s strong presence in the key global cities has positioned it well to benefit from the return of the business traveller.

The net loss was $6 million in the third quarter of 2010 compared to net income of $40 million in the third quarter of 2009.

The U.S. lodging industry is recovering after last year’s recession, led by upscale hotels such as Hyatt’s brands, highlighted a report filed by Bloomberg. Occupancy at U.S. chain hotels with the costliest rooms rose to 67 percent this year through August from 62 percent a year earlier, according to Smith Travel Research Inc. That compares with occupancies of 65 percent across all hotel categories in the top 25 U.S. markets in the first eight months of 2010.

 
 
 

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