The president and CEO of Hyatt Hotels Corp., Mark Hoplamazian, expressed his optimism regarding the business travel sector during the company’s recent earnings call. Hoplamazian highlighted the impressive 6% year-over-year increase in systemwide first-quarter revenue from business-travel stays, with some segments experiencing even higher growth rates. He emphasized the strength of global business travel revenue, particularly in January and February, as well as the positive trends observed in the U.S.
Hoplamazian stated that April’s systemwide business-travel revenue saw a significant 21% year-over-year increase, although this figure was slightly inflated due to the timing of the Easter holiday. Despite this, he shared statistics that underscored the robust performance of the business travel segment. Business transient hotels grew by almost 16% in the first quarter, while convention hotels and specific locations like New York City, San Jose, and Seattle experienced notable increases in business transient activity.
While the exact nature of Hoplamazian’s figures was not clarified, he described the numbers as “staggering,” reflecting his confidence in the business travel sector’s resurgence. First-quarter group revenue also saw a 6% year-over-year increase, with bookings for the remainder of the year showing a promising 7% growth compared to 2023. Hyatt’s revenue per available room (RevPAR) rose by 5.5% in the first quarter to $131.86, driven by a 2% increase in average daily rate (ADR) and a 2.2 percentage point rise in occupancy.
Hyatt’s Chief Financial Officer, Joan Bottarini, noted that excluding the Easter shift, U.S. RevPAR actually increased by approximately 2%. The company maintained its forecast of a 3% to 5% year-over-year growth in full-year 2024 RevPAR. Notably, Hyatt’s net income significantly rose to $522 million in the first quarter of 2024, compared to $58 million in the same period of the previous year. This increase was largely attributed to the sale of Hyatt properties in several locations. Additionally, both net rooms and Hyatt’s development pipeline showed substantial growth, indicating a positive trajectory for the company’s future expansion efforts.
Hyatt Hotels Corp.’s strong performance in the business travel sector, as indicated by robust revenue growth and strategic financial management, points towards a promising outlook for the company’s continued success in the hospitality industry.
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