Group’s rapid recovery boosts Hyatt’s first quarter

Citing the group’s return to operations at a pace that “was significantly above our expectations,” Hyatt Hotels Corp. reported a first-quarter performance on Tuesday that, like its competitors, started slowly but accelerated due to strong leisure demand and business growth. travel reservations.

Group bookings, however, were “where we saw the most pronounced recovery in the quarter,” Hyatt President and CEO Mark Hoplamazian said on a conference call with analysts. System-wide group revenue in April 2022 was 14% below 2019 levels, he said, compared to 25% in March and 43% in the fourth quarter of 2021.

“We’ve heard repeatedly from meeting planners how important reconnecting the person is to associations and businesses, a sentiment that’s evident in our group booking dynamics,” Hoplamazian said. “Large group bookings led by businesses with high food and beverage spend are contributing significantly to our recovery.”

At full-service Hyatt properties in the Americas, the pace of group bookings through December 2022 is 12% below 2019 levels. “The continued strength of short-term bookings, the vast majority of which are corporate, we gives full confidence that the group will continue to close the gap with 2019 levels during this year,” Hoplamazian said.

System-wide trading transient levels in April reached 53% of 2019 levels, a figure that stood at 59% in the Americas, he said. Large national accounts improved to 54% recovered in April from 36% in February. Future transient business bookings in April were about 65% of 2019 levels, he said.

“Consulting firms and industries heavily focused on product and service sales are leading the recovery, with some of these businesses now exceeding 2019 travel levels, and demand continues to expand across all industries over the years. weeks,” Hoplamazian said. “We remain optimistic about the resumption of transient business and its continued momentum in the second half of the year.”

First quarter performance

Hyatt’s systemwide comparable revenue in the first quarter per available room increased 107% year-over-year to $93.98, and in the U.S., it increased 126% to reach $104.45. System-wide RevPAR in April was 9% lower than 2019 levels, Hoplamazian said.

Rising rates outside of China fueled Hyatt’s RevPAR recovery, Hoplamazian said. Hyatt’s average daily rate in March was $195 and $199 in April, “the two highest ADR months in Hyatt’s history,” he said.

Hyatt’s first-quarter earnings before interest, taxes, depreciation and amortization rose to $169 million from a loss of $20 million a year earlier. The company posted a net loss of $73 million in the first quarter, compared to a loss of $304 million in the first quarter of 2021.

Outside of Apple Leisure Group, which Hyatt acquired last year, adding about 100 properties to its portfolio, Hyatt had executed management or franchise deals for about 105,000 rooms as of March 31, up about 5 % year over year.

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