Revenue rose 4% during the first quarter for Hyatt Hotels Corp., driven by growing RevPAR, higher management fees and creeping ADR.
Hyatt posted US$10 million of profit, or 6 cents a share—double the US$5 million, or 3 cents, the firm recorded a year ago. Excluding special items, the company earned 7 cents a share, up from break-even results in the first quarter of 2010.
Quarterly revenue rose to US$875 million from US$841 million, exceeding analyst estimates of US$861 million. RevPAR, at Hyatt’s owned and leased hotels was up 2%, even as hotel operating margins fell 120 basis points.
In North America, RevPAR grew 8.1% year over year, with results even better in the select-service category, where RePAR was up 11.6%.
“Transient demand was very strong in the first quarter, with both occupancy and rate improvements across many markets,” says CEO Mark Hoplamazian. “We are very pleased with the performance of our hotels, particularly the strong continuing increases in RevPAR in our Hyatt Place and Hyatt Summerfield Suites properties.
"Looking ahead, year-over-year North America group booking activity for future dates continues to be strong. This is encouraging as the booking window remains short, and we are keeping a close eye on changes period-over-period. Recent activity gives us confidence in the recovery for the remainder of 2011 and beyond.”
Hyatt did even better internationally during the quarter, with RevPAR up 11%.
“Our international hotels continued to perform well, and we saw particularly strong performance in China and Brazil,” Hoplamazian says. “There was some increased volatility in the results in the first quarter due to the devastating earthquake and tsunami and aftermath in Japan, as well as specific events in the Middle East and North Africa, but demand throughout Asia Pacific and Latin America was strong.”
Hyatt posted US$10 million of profit, or 6 cents a share—double the US$5 million, or 3 cents, the firm recorded a year ago. Excluding special items, the company earned 7 cents a share, up from break-even results in the first quarter of 2010.
Quarterly revenue rose to US$875 million from US$841 million, exceeding analyst estimates of US$861 million. RevPAR, at Hyatt’s owned and leased hotels was up 2%, even as hotel operating margins fell 120 basis points.
In North America, RevPAR grew 8.1% year over year, with results even better in the select-service category, where RePAR was up 11.6%.
“Transient demand was very strong in the first quarter, with both occupancy and rate improvements across many markets,” says CEO Mark Hoplamazian. “We are very pleased with the performance of our hotels, particularly the strong continuing increases in RevPAR in our Hyatt Place and Hyatt Summerfield Suites properties.
"Looking ahead, year-over-year North America group booking activity for future dates continues to be strong. This is encouraging as the booking window remains short, and we are keeping a close eye on changes period-over-period. Recent activity gives us confidence in the recovery for the remainder of 2011 and beyond.”
Hyatt did even better internationally during the quarter, with RevPAR up 11%.
“Our international hotels continued to perform well, and we saw particularly strong performance in China and Brazil,” Hoplamazian says. “There was some increased volatility in the results in the first quarter due to the devastating earthquake and tsunami and aftermath in Japan, as well as specific events in the Middle East and North Africa, but demand throughout Asia Pacific and Latin America was strong.”