Hyatt has reported strong growth in the first few months of the year, with significant booking increases across its properties. The hotel chain has seen a rise in bookings from business travelers, guests at its all-inclusive resorts, and loyalty program members. CEO Mark Hoplamazian expressed optimism during the earnings call, citing positive factors such as the recovery of business travel and the impact of events like the Olympics and Taylor Swift concerts on travel demand.
Revenue from transient business travelers and group room blocks has increased for Hyatt, with strong growth in business transient revenue particularly in forward bookings beyond the first quarter. The company is also seeing higher demand for meetings and events at its U.S. full-service managed properties, indicating a positive trend in business travel recovery. Additionally, Hyatt’s loyalty program membership has grown by 22% year-over-year, reaching 46 million members, which is expected to drive profitability through longer stays and increased spending.
The acquisition of Apple Leisure Group in 2021 has proven to be a successful move for Hyatt, with their all-inclusive resorts in the Americas showing significant growth in net package revenue per available room. Bookings at all-inclusive properties, especially in Mexico and the Caribbean, have been strong, with Cancun bookings up by 6%. While demand is normalizing in the Americas and Europe, Hyatt expects all-inclusive performance to remain steady for the rest of the year.
In the first quarter, Hyatt’s revenue per available room increased by 5.5%, with even better performance at their all-inclusive resorts, which saw a surge of 11%. The hotel group also expanded its managed rooms by 5.5%, with a promising pipeline of new contracts for future growth. Despite challenges like lower profit margins at owned hotels, higher real estate taxes, and increased wages, Hyatt reported a strong net income of $522 million and adjusted EBITDA of $252 million for the quarter.
Looking at the accommodations sector stock index performance year-to-date, Hyatt’s strong growth is reflected in the positive performance of hotel and short-term rental sector stocks within the ST200 index. The index includes companies globally traded across various sectors of the travel industry, reflecting the overall financial performance of nearly 200 travel companies. Hyatt’s resilience and growth in key areas such as business travel, loyalty programs, and all-inclusive resorts have contributed to a positive outlook for the company’s future prospects and financial health. Overall, the travel industry is showing signs of recovery, with Hyatt poised to benefit from the returning demand for travel and accommodations.
