Hyatt Hotels Corporation reported third-quarter results that surpassed expectations, driven by strong performance in its luxury and upper-upscale segments. The company’s revenue per available room (RevPAR) increased by 8.9% compared to the same period last year, exceeding analysts’ forecasts.
Financial Performance in the Third Quarter
For the quarter ending September 30, Hyatt posted a net income of $68 million, or $0.62 per share. This compares to a net income of $28 million, or $0.25 per share, in the third quarter of 2022. Adjusted net income reached $75 million, or $0.70 per share, surpassing the consensus estimate of $0.66 per share.
Total revenues for the quarter were $1.62 billion, up from $1.54 billion in the same period last year. System-wide RevPAR rose 8.9% year-over-year, with the luxury and upper-upscale segments leading the growth. Comparable owned and leased hotels saw RevPAR increase by 10.6% over the prior year.
Luxury and Upper-Upscale Segments Lead Growth
Hyatt’s luxury and upper-upscale properties were key contributors to the company’s RevPAR gains. CEO Mark Hoplamazian stated, “Our results reflect the strength of our brand and the increasing demand for luxury and lifestyle travel.” He added that Hyatt’s portfolio of high-end hotels continues to attract both leisure and business travelers.
The company noted particularly strong performance in international markets, with RevPAR in Europe, the Middle East, and Africa up 15.7% year-over-year. In the Americas, RevPAR grew by 6.2% during the quarter.
Development Pipeline and Outlook
Hyatt reported that its pipeline of executed management or franchise contracts reached approximately 123,000 rooms, representing a 6% increase from the previous year. The company opened 20 new hotels in the third quarter, adding over 4,000 rooms to its global portfolio.
Looking ahead, Hyatt reaffirmed its full-year 2023 outlook, expecting system-wide RevPAR growth between 14% and 16% over 2022. The company also anticipates net rooms growth of approximately 6% for the year.
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