Hyatt Reports Solid Earnings, Adjusts NUG Outlook

Hyatt Hotels Corporation (H) reported solid first-quarter 2023 financial results, outperforming analyst expectations.

The company's revenue increased by 42.4% year-over-year to $1.6 billion, driven by strong demand and higher average daily rates.

Hyatt's net income came in at $183 million, compared to a loss of $84 million in the first quarter of 2022.

The company's adjusted net income per share was $0.70, exceeding the consensus estimate of $0.61.

Hyatt's RevPAR (revenue per available room) increased by 36.8% year-over-year to $119.97, reflecting higher demand and pricing power.

The company's occupancy rate was 72.8%, up from 63.7% in the prior-year quarter.

Hyatt's average daily rate was $164.78, a 20.4% increase compared to $136.82 in Q1 2022.

The company's strong performance was driven by robust leisure demand and continued recovery in business travel.

Hyatt's Americas region saw a 42.9% increase in RevPAR, with all key markets experiencing growth.

The company's Europe, Middle East, Africa, and Southwest Asia (EMEA/SWA) region reported a 32.1% increase in RevPAR.

Hyatt's Asia Pacific region saw a 14.5% increase in RevPAR, with Mainland China remaining impacted by travel restrictions.

The company's group business also showed signs of recovery, with RevPAR increasing by 66.2%.

Hyatt maintained a positive outlook for the rest of the year, but adjusted its net unit growth (NUG) outlook for 2023.

The company now expects to open between 55 and 60 new hotels in 2023, down from the previous guidance of 60 to 65 hotels.

This adjustment reflects the impact of project delays and permitting challenges.