Hyatt Remains In Red During Q1 But Expects A Solid Summer

While Marriott International, Hilton, and Wyndham Hotels & Resorts all reported profits in the first quarter of 2022, Hyatt Hotels Corp. remained in the red—but after a year of big deals and pandemic-driven uneven travel trends, the company’s leadership is optimistic about strong leisure growth in the second quarter and beyond.

Hyatt recorded a net loss of $73 million in the first quarter of this year, compared to a net loss of $304 million in the same period last year. For the quarter, adjusted profits before interest, taxes, depreciation, and amortization were $169 million.

As the first quarter of 2022 came to an end, Hyatt announced record-high average daily rates, which persisted into Q2. The company’s systemwide average prices hit $195 in March before increasing by $4 in April.

President and CEO Mark Hoplamazian stated at an earnings conference with investors that these were “the two biggest ADR months in Hyatt’s history.” In April, the systemwide average daily rate exceeded 2019 by nearly 10%, led by premium brands in the Americas, which exceeded 2019 by approximately 30%”.

Hoplamazian informed investors that the revenue per available room acceleration has been “exceptional” outside of the Asia-Pacific region. Comparable RevPAR in the Americas, Europe, the Middle East, Africa, and Southwest Asia was down 33% from 2019 in January, 5% in March, and almost 3% in April.

Hoplamazian stated that the company’s portfolio is “highly weighted” toward luxury and leisure, with 42% of hotels categorized as luxury, lifestyle, or resort. “And leisure transient revenue drove approximately [60%] of our RevPAR in the first quarter,” he said.

The purchase of luxury-focused Apple Leisure Group last year aided the company’s leisure footprint, and ALG’s RevPAR in the Americas increased 12 percent year on year.