Hyatt Hotels posts quarterly profit

Hyatt Hotels Corp. returned to a second-quarter profit as demand for its rooms increased.

Published: 09 Aug 2010

Hyatt Hotels Corp. returned to a second-quarter profit as demand for its rooms increased.

Net income was $25 million, compared with a loss of $50 million a year earlier.

Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, referred to the improved transient demand experienced by “many” of the group’s properties in the second quarter.

“At several properties, particularly those in international markets, average rate increases resulted in strong RevPAR growth versus the second quarter last year. Our fees increased over 16 percent due to RevPAR growth and new hotels in our portfolio. The group booking cycle continues to be short but we saw increased levels of booking activity for future periods during the second quarter. We experienced strong margin performance in our owned hotels despite the fact that the revenue increase was driven primarily by occupancy gains,” said Hoplamazian.

Highlights:

  • RevPAR for comparable North American full-service hotels increased 6.8 percent in the second quarter of 2010 compared to the same period in 2009. Occupancy increased 550 basis points and ADR declined 1.1 percent (1.5 percent excluding the effect of currency).
  • RevPAR for comparable North American select-service hotels increased 7.8 percent in the second quarter of 2010 compared to the same period in 2009. Occupancy increased 860 basis points but was partially offset by a 4.6 percent decline in ADR.
  • Comparable International RevPAR increased 21.4 percent compared to the second quarter of 2009.

 
 
 

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