The surge in American tourists to Europe and Asia this summer has positively influenced Hyatt Hotels’ quarterly profits.
- Hyatt’s adjusted earnings rose nearly 9%, hitting $275 million in the last quarter.
- The company witnessed substantial demand in business and group travel during the third quarter.
- Expansions include the acquisition of new hotels and a major joint venture in the Caribbean and Spain.
- Hyatt’s loyalty programme saw an impressive 22% increase in membership, totalling 51 million members.
Hyatt Hotels Corporation’s financial performance in the recent quarter has shown notable improvement, driven largely by increased travel from the United States to key international markets such as Europe and Asia. The company reported an almost 9% growth in adjusted earnings, reaching $275 million in the quarter ending September 30, paired with a net income of $471 million.
A marked rise in business and group travel during the third quarter contributed significantly to these financial gains, even as leisure travel was somewhat constrained by factors including ongoing renovations, adverse weather conditions, and a notable increase in outbound travel from the U.S. to foreign destinations, specifically Europe and Asia Pacific, albeit excluding China.
The performance was further enhanced by a 15% uptick in revenue per available room (revpar) in Europe, aided significantly by events such as the summer Olympics in Paris. Overall, revpar rose by 3% year-on-year. This increase aligns with more typical seasonal booking patterns, despite disturbances from hurricanes Beryl and Helene, which affected some operations.
Hyatt expanded its portfolio with 16 new hotels consisting of 2,589 rooms, with notable additions like a Park Hyatt in Marrakech. The company ended the quarter with nearly 700 hotels in its management or franchise contract pipeline, representing approximately 135,000 rooms.
In a significant development, Hyatt secured a €359 million agreement for a 50% stake in a joint venture, aiming to incorporate 23 Bahia Principe all-inclusive resorts across the Caribbean and Spain into its offerings, covering a total 12,000 rooms.
Further enhancing its unique market position, Hyatt entered into the luxury tented accommodation sector through a strategic alliance with Under Canvas, adding 13 outdoor resorts to its portfolio. This move aligns with Hyatt’s innovative strategies to diversify its offerings and cater to evolving consumer preferences.
The enhancement of the World of Hyatt loyalty programme is noteworthy, witnessing a 22% increase in memberships this quarter, pushing the total to a notable 51 million members. Mark Hoplamazian, President and CEO, remarked on the strength demonstrated by the company’s results and growth strategies, emphasising the expanding pipeline and the robust earnings model underpinning their financial success.
Through strategic share repurchases and dividends, over $1.2 billion has been returned to shareholders, illustrating the company’s commitment to delivering value and reinforcing investor confidence.
Hyatt’s strategic growth and strong financial performance underscore its robust position in the global hospitality sector.
