Increased US travel to Europe and Asia contributes to Hyatt’s summer profits.
- Hyatt’s earnings rise 9% due to strong international demand.
- The hotel chain’s net income reached $471 million in Q3.
- New hotel openings and a growing loyalty program drive growth.
- Hyatt enters new markets with innovative accommodation solutions.
Hyatt Hotels Corporation saw its quarterly profits rise, fuelled by an increase in travel from the US to Europe and Asia during the summer months. Adjusted earnings recorded a 9% year-on-year increase, reaching $275 million for the three months ending September 30. This boost in earnings was complemented by a net income of $471 million, signalling robust financial health.
The company has projected its full-year adjusted earnings to be between $1.1 billion and $1.12 billion, with net income anticipated to range from $1.4 billion to $1.45 billion. A significant contributor to this growth was the surge in business and group travel observed in the third quarter. In contrast, leisure travel within the US faced challenges such as property renovations, adverse weather conditions, and a marked rise in international outbound travel to Europe and the Asia Pacific, excluding China.
Hyatt indicates that the revenue per available room (RevPAR) in Europe increased by 15%, partly due to the Paris Summer Olympics. Overall, RevPAR saw a modest 3% year-on-year increase. The company expanded its operations by adding 16 new hotels, including a notable Park Hyatt in Marrakech, bringing over 2,500 rooms to its portfolio.
Additionally, recent expansions include a €359 million joint venture aimed at incorporating 23 Bahia Principe all-inclusive resorts across the Caribbean and Spain, collectively adding around 12,000 rooms. Hyatt’s strategic diversification further extends with the introduction of 13 luxury tented accommodations in partnership with Under Canvas, catering to the growing demand for unique travel experiences.
Hyatt’s loyalty programme, the World of Hyatt, witnessed a remarkable 22% growth, with membership numbers reaching 51 million. This underscores the brand’s expanding reach and the effectiveness of its customer engagement strategies. President and CEO Mark Hoplamazian highlighted the company’s strong quarterly performance, attributing it to the group’s asset-light strategy and the successful implementation of various business initiatives.
Hyatt’s strategic moves and increased US travel have significantly bolstered its quarterly earnings, paving the way for continued growth.