Hyatt Hotels has reported a strong performance in the second quarter of 2024, driven by robust business and group travel. The US-based company achieved a revenue per available room (RevPAR) of $149.31 in Q2, marking a 4.7 per cent increase over the same period last year. This growth was supported by a 2.4 percentage point increase in occupancy to 72.9 per cent, as well as a 1.1 per cent uptick in the average daily rate (ADR) to $204.73.
In Europe, Hyatt’s hotels performed even more strongly, with ADR up by 3.6 per cent year-on-year to $253.08. RevPAR saw a significant increase of 10.5 per cent to $188.09, while occupancy rose by 4.6 points to 74.3 per cent over the same period. These impressive results in Europe demonstrate Hyatt’s ability to attract and retain guests in a competitive market.
Mark Hoplamazian, Hyatt’s CEO, praised the Q2 results as “solid” and highlighted the company’s continued momentum towards growth. He noted that Hyatt’s pipeline reached a new record of 130,000 rooms, reflecting strong developer interest in the brand. Additionally, the World of Hyatt loyalty program saw a 21 per cent increase in membership year-over-year, reaching a record 48 million members. These achievements underscore the strength of Hyatt’s asset-light earnings model, which aims to deliver strong free cash flow and enhance shareholder value.
In its earning statement, Hyatt attributed the Q2 results to strong performance in business transient and group travel, particularly in the US. The company also noted that travel within Europe remained robust, driven by inbound travel from the United States and large one-time events. This indicates Hyatt’s ability to adapt to changing travel trends and capitalize on opportunities in key markets.
While Hyatt’s revenue for the quarter remained flat year-on-year at $1.7 billion, net profit saw a significant increase from $68 million in Q2 of 2023 to $359 million this year. This growth was primarily driven by the proceeds of selling real estate, including properties such as Park Hyatt Zurich in Switzerland, Hyatt Regency San Antonio Riverwalk, and Hyatt Regency Green Bay in the US. These strategic divestments allowed Hyatt to optimize its portfolio and generate additional value for shareholders.
Overall, Hyatt Hotels’ strong performance in the second quarter of 2024 reflects its ability to adapt to changing market conditions, capitalize on growth opportunities, and deliver value to both guests and shareholders. With a focus on innovation, customer loyalty, and strategic asset management, Hyatt is well-positioned for continued success in the hospitality industry.
