Hyatt Hotels Corp.'s business transient demand
"continues to gain momentum," company officials said Friday, with
systemwide fourth-quarter revenue for the segment up 11 percent year over year.
Meanwhile, negotiated corporate rates for 2024 in the United States are up in
"the high single digits," Hyatt CEO Mark Hoplamazian said Friday on
an earnings call.
Overall Hyatt systemwide fourth-quarter revenue per
available room increased 19.1 percent year over year, a figure that outpaced
Hyatt's projection of 15 percent to 16 percent. Increased demand in all sectors
lifted that boat, officials said, including business transient travel, revenue
from which in Q4 reached 93 percent of 2019 levels globally.
"Business transient has fully recovered to 2019 levels
in many parts of the world, while the United States continues to improve,"
Hoplamazian said. "Looking ahead, we remain confident that business
transient will continue to recover, with 2024 corporate negotiated rates in the
U.S. up in the high single digits compared to 2023."
Fourth-quarter room revenue from group bookings was up 11
percent from 2022, Hoplamazian said, and the group booking pace for full-service
managed properties in the Americas region is up 8 percent from 2023 levels.
Hyatt Q4 and Full-Year Performance
Hyatt's fourth-quarter systemwide RevPAR increased 9.1
percent year over year to $138.63, while average daily rate increased 2.5
percent to $205.31 and occupancy increased 4 percentage points to 67.5 percent.
For the full year of 2023, Hyatt's RevPAR increased 17
percent year over year to $141.18, while ADR grew 4.7 percent to $204.60 and
occupancy increased 7.2 percentage points to 69 percent.
Hyatt's performance was driven by its Asia-Pacific region,
where fourth-quarter RevPAR increased 37.6 percent year over year and full-year
RevPAR increased 60.3 percent.
Hyatt projects a full-year 2024 systemwide RevPAR increase
of 3 percent to 5 percent year over year, in line with most
industry forecasts. The 2024 increase in the U.S. is projected to be at
"the lower end of that range," Hyatt CFO Joan Bottarini said on the
call.
Hyatt fourth-quarter revenue increased to $1.66 billion from
$1.59 billion year over year. Full-year revenue increased to $6.67 billion from
$5.9 billion one year prior. Fourth-quarter net income was $26 million compared
with $294 million the year prior, while full-year net income declined to $220
million in 2023 from $455 million in 2022.
The company said 101 properties—including 43
conversions—joined its portfolio in 2023, representing nearly 24,000 rooms.
Hyatt's pipeline at the end of the year included 650 properties representing
about 127,000 rooms, according to the company.
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