Hyatt Reports Strong Growth and Record Development Pipeline
Hyatt Hotels Corporation has announced another successful quarter in 2024, showcasing significant growth driven by strong demand in business and group travel. The company reported a net income of $471 million and an Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $275 million, reflecting an 8.9 percent increase compared to the same quarter last year. Shareholders benefited from a diluted earnings per share of $4.63.
During the quarter, Hyatt’s comparable system-wide hotels achieved a 3 percent year-over-year increase in RevPAR (revenue per available room), alongside a 4.3 percent net rooms growth. The company continues to break records with approximately 690 hotels in its development pipeline, consisting of executed management or franchise contracts. This quarter also marked the launch of a partnership with Under Canvas and the opening of 16 new hotels, including the Alila Shanghai and Park Hyatt Marrakech. Additionally, Hyatt confirmed its interest in acquiring Standard International.
Events such as the Democratic and Republican National Conventions provided a revenue boost for the company, while smaller business travel and group bookings contributed significantly to Hyatt’s earnings, especially in the United States. Meanwhile, international and outbound leisure travel remains robust. In Europe, RevPAR surged by 15 percent during the quarter, largely fueled by anticipation of the 2024 Summer Olympics in Paris.
Looking ahead, Hyatt maintains high expectations for the fiscal year 2024, forecasting a system-wide hotels RevPAR growth of 3-4 percent compared to last year and a net income range between $1.4 billion and $1.45 billion. Shareholders are projected to receive a full-year capital return of $1.25 billion.
Mark S. Hoplamazian, President and CEO of Hyatt, commented, “We reported solid third-quarter results, with gross fee revenues reaching $268 million. Our pipeline reached a new record of approximately 135,000 rooms, increasing 10% year-over-year, and World of Hyatt membership expanded to a record 51 million members, growing a remarkable 22% year-over-year.”
Hoplamazian further highlighted that Hyatt’s operating results and capital allocation strategy—including completing the 2021 asset-disposition commitment and the acquisition of Standard International—illustrate the strength of its asset-light earnings model, leading to over $1.2 billion returned to shareholders through share repurchases and dividends this year.
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