Rising summer US travel to Europe and Asia lifts quarterly Hyatt profits
Hyatt Hotels reported a jump in quarterly profit on Tuesday, fueled by a surge in summer travel to Europe and Asia
The hotel chain said net income rose to $246 million in the three months ended Sept. 30, from $152 million a year earlier. Revenue per available room, a key industry metric, increased 11.7% in the Americas, 20.2% in Europe and 31.1% in Asia-Pacific
Revenue per available room in the Americas was up 11.7% in the third quarter, reflecting strong demand for Hyatt's hotels in major cities such as New York, Chicago and San Francisco. In Europe, revenue per available room increased 20.2%, driven by robust travel demand in the region, particularly in the United Kingdom, France and Germany. Asia-Pacific saw an even stronger increase in revenue per available room, with a 31.1% rise, reflecting pent-up demand for travel in the region following the lifting of COVID-19 travel restrictions.
The company said it expects continued strong demand for travel in the fourth quarter, with group bookings and corporate travel expected to drive growth. Hyatt also said it plans to open 11 new hotels in the fourth quarter, including the highly anticipated Park Hyatt London River Thames.
Here are some additional insights from Hyatt's earnings report:
- Total revenue increased 32.4% to $1.8 billion.
- Adjusted earnings per share were $1.24, beating analysts' estimates of $1.17.
- Hyatt's global occupancy rate was 77.5%, up from 70.6% a year earlier.
- The company's average daily rate was $163.54, up from $137.72 a year earlier.
