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The Hyatt Group<\/strong> can congratulate itself on its upscale strategy, with the first quarter of 2024<\/strong> still auguring well<\/strong>.<\/p>\n <\/p>\n The Chicago-based global hotel group has announced a return to its pre-Covid performance<\/strong> in both the leisure and Mice categories.<\/strong><\/p>\n <\/p>\n As of March 31, 2024<\/strong>, Hyatt Hotels Corporation<\/strong> counted over 1,300 hotels and establishments in 78 countries on six continents<\/strong>. This is a more concentrated \u201ccuration\u201d than most of its major competitors, who tend to operate around 4,000 to 5,000 establishments, as Tour Hebdo<\/strong> points out. The Hyatt group markets its properties under 29 brands<\/strong>, divided between the Timeless Collection (Park Hyatt\u00ae, Grand Hyatt\u00ae, Hyatt Vacation Club\u00ae, UrCove…), the Boundless Collection (Miraval\u00ae, Alila\u00ae, Andaz\u00ae, Thompson Hotels\u00ae, Dream\u00ae Hotels<\/strong>… ), the Independent Collection (The Unbound Collection by Hyatt\u00ae, Destination by Hyatt\u00ae,and JdV by Hyatt\u00ae) or under the names Impression by Secrets, Hyatt Ziva\u00ae, Hyatt Zilara\u00ae, Zo\u00ebtry\u00ae Wellness & Spa Resorts<\/strong>,,etc.<\/p>\n <\/p>\n <\/p>\n Each of these brands is \u201cat the top end of the market, which allows us to maintain a more personalized customer experience and keep our identity<\/strong>\u201d, asserted Michel Morauw, Hyatt’s Managing Director for Northern Europe<\/strong>, last April.<\/p>\n <\/p>\n One of his reasons for satisfaction is the fact that World of Hyatt, the group’s loyalty platform, has surpassed \u201c40 million active customers<\/strong>\u201d, a figure that has \u201cquadrupled in the last 4 to 5 years\u201d.<\/strong><\/p>\n <\/p>\n\n <\/p>\n And the group seems to be doing well. \u201cThe year is off to a very good start, with gross fee income reaching a record $262 million in the quarter<\/strong>,\u201d points out Mark S. Hoplamazian, Hyatt’s President and CEO<\/strong>. Our pipeline also reached a new record, increasing 10% year-on-year to 129,000 rooms, and we achieved net room growth of 5.5%.<\/strong>\u201d<\/p>\n <\/p>\n What’s more, \u201cthe significant progress we’ve made on asset disposals<\/strong> is helping to strengthen our low-asset earnings mix, reflecting our execution to permanently reduce property holdings,\u201d further enthuses the executive.<\/p>\n <\/p>\n <\/p>\n In more detail, Hyatt’s performance in the first quarter of 2024 was impressive.<\/strong><\/p>\n <\/p>\n The group posted 5.5% growth in hotel RevPAR and 11% growth in net RevPAR from resort packages<\/strong>, both comparable system-wide to the same period in 2023.<\/p>\n <\/p>\n Group net income was $522 million<\/strong> and adjusted net income $75 million. This gives adjusted diluted earnings per share of $0.71.<\/strong><\/p>\n <\/p>\n Adjusted EBITDA<\/strong> for the first quarter was $252 million<\/strong>.<\/p>\n <\/p>\n The number of management or franchise contracts executed was around 129,000 rooms<\/strong>.<\/p>\n <\/p>\n In the \u201cManagement and Franchising<\/strong>\u201d segment, quarterly results \u201cwere driven by strong demand in all customer segments<\/strong>\u201d. On a regional level, the Group cites \u201coutbound travel from Greater China<\/strong>\u201d, particularly in \u201cJapan, Thailand and South Korea\u201d, as well as \u201cstrong leisure demand in Mexico and the Caribbean<\/strong> for all-inclusive hotels and resorts\u201d. Europe was driven by \u201cimpressive growth in net package RevPAR\u201d, boosted in particular by \u201cstrong demand for resorts in the Canary Islands<\/strong>\u201d. In the United States, growth \u201cnormalized\u201d<\/strong>, with RevPAR up \u201cby around 2%, excluding the Easter impact\u201d.<\/p>\n <\/p>\n <\/p>\n By contrast, the \u201cProperties and Rentals<\/strong>\u201d segment underperformed<\/strong>, with a 9% decline in adjusted EBITDA in the first quarter, after adjusting for asset disposals. Hyatt attributes this to \u201cdifficult comparisons with 2023<\/strong>, including the Super Bowl in Phoenix, higher real estate taxes, higher salaries and transaction costs related to ongoing asset sales\u201d.<\/p>\n <\/p>\n Finally, the \u201cDistribution\u201d segment was \u201caffected by difficult year-on-year comparisons<\/strong>, particularly due to ALG Vacations, which made up for a strong quarter the previous year\u201d.<\/p>\n <\/p>\n In the first quarter, Hyatt added 12 new hotels (2,425 rooms)<\/strong> to its portfolio. It inaugurated its first hotel in Kenya<\/strong>, the Hyatt Regency Nairobi Westlands, as well as five new UrCove properties in China,<\/strong> and the Thompson Houston<\/strong> (USA), Secrets Tides Punta Cana<\/strong> (Dominican Republic) and Secrets Playa Blanca Costa Mujeres<\/strong> (Mexico).<\/p>\n <\/p>\n As at March 31, 2024, the Group had a pipeline of management or franchise contracts<\/strong> in place for around 670 hotels (approximately 129,000 rooms)<\/strong>.<\/p>\n <\/p>\n <\/p>\n For the full year 2024<\/strong>, Hyatt expects system-wide comparable hotel RevPAR<\/strong> to increase by 3% to 5% at constant exchange rates<\/strong>, and net income of $1,135 to $1,195 million.<\/p>\n <\/p>\n Adjusted EBITDA<\/strong> for the full year is expected to reach between $1,150 and $1,190 million<\/strong>. This remains \u201cin line with previously provided guidance<\/strong> after adjusting for a $30 million reduction attributed\u201d in particular to sales of the Park Hyatt Zurich, Hyatt Regency San Antonio Riverwalk and Hyatt Regency Green Bay.<\/p>\n <\/p>\n For the full year, returns to shareholders<\/strong> are expected to reach between $800 and $850 million<\/strong>.<\/p>\n\u201cTop of the market<\/h2>\n
Strong first-quarter performance<\/h2>\n
\u201cProperties and rentals\u201d underperform<\/h2>\n
Outlook for 2024 in line with forecasts<\/h2>\n
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