Hyatt Hotels Corp. reported higher second quarter rates and revenue per available room, thanks to sustained group demand, business transient momentum and overseas growth, president and CEO Mark Hoplamazian said Thursday during an earnings call.
Hyatt’s business transient revenue in the second quarter increased 36 percent year over year—reaching 86 percent of 2019 levels—and was driven by large corporates in the Americas, Hoplamazian said.
“We had an extremely strong quarter, booking nearly $500 million in group business for all future periods, an increase of 36 percent of the second quarter of 2022,” Hoplamazian said.
“This is the highest group production quarter since the first quarter of 2019,” he said.
Group revenue was up 14 percent year over year in Q2 and was “fully recovered” to 2019 levels, “even though room night demand was down 12 percent,” Hoplamazian said. Group bookings are pacing up 20 percent for 2024, he said.
Hyatt’s systemwide RevPAR was up 15 percent year over year to $148.39 and up 8 percent over 2019. Hyatt’s Q2 RevPAR was “fueled by strong rates and meaningful occupancy growth,” Hyatt CFO Joan Bottarini said.
Hyatt’s second-quarter systemwide average daily rate was $207.37, up 4.5 percent year over year, and occupancy was 71.6 percent, up 6.6 percentage points. While occupancy is still below 2019 levels, the company believes “occupancy gains will continue to drive future growth,” Hoplamazian said.
Bottarini also highlighted the Asia-Pacific market, as Hyatt reported “fully recovered RevPAR” in the region. Second-quarter RevPAR in Greater China exceeded 2019 levels by 6 percent, according to Hyatt.
Additional Q2 Results
Hyatt’s second-quarter total revenue increased 15 percent year over year to $1.7 billion. Net income in Q2 was $68 million compared with $206 million in 2022.
