Dive Brief:
- Hyatt posted system-wide RevPAR gains for the fourth quarter of 2023 and for the full year, up 9.1% and 17%, respectively, exceeding the hotel company’s full-year outlook for 2023, according to an earnings report published Friday.
- Hyatt also saw significant portfolio growth in 2023, with its net rooms count increasing 5.9% for the full year, the report detailed. The company grew its pipeline of executed management or franchise contracts to a record 650 hotels, or approximately 127,000 rooms, during the year.
- On the heels of what Hyatt President and CEO Mark Hoplamazian called a “transformative year,” Hyatt will continue to expand its new and existing brands in 2024 as travel demand remains strong.
Dive Insight:
Hyatt’s full-year performance gains come hand-in-hand with a year of portfolio growth across various segments.
In April, Hyatt launched its first upper midscale brand in the Americas, Hyatt Studios. By year-end, the hotel company broke ground on the extended stay brand’s first location. Hyatt added 17 Hyatt Studios hotels, or approximately 2,000 rooms, to its pipeline in 2023, according to the earnings report.
“The momentum around Hyatt Studios has significantly exceeded our expectations,” Hoplamazian said during a Friday earnings call with analysts, adding that there are 200 Hyatt Studios deals in various stages of negotiations.
In September, the hotel company announced a strategic plan to expand its Hyatt Place and Hyatt House brands to new markets. Also that month, Hyatt expanded its luxury lifestyle pipeline by 30 hotels.
The company’s growth in luxury lifestyle has continued into 2024, with the opening of Thompson Houston earlier this month.
During the call, Hyatt CFO Joan Bottarini said that portfolio growth is expected to continue in 2024.
“We expect net room growth between 5.5% and 6%,” Bottarini said, referring to year-over-year growth for full-year 2024. “And we are confident that we will see another healthy year of portfolio growth driven by both organic growth and conversions.”
Consumers’ healthy appetite for travel will bolster continued growth as well, Hoplamazian noted.
“Demand for leisure travel remains elevated,” he said, adding that group demand is also strong. “We anticipate another solid year of demand for group meetings and events.”
Industrywide, group business has recovered in several top U.S. markets, and this resurgence has resulted in increased hotel profits in some markets like New York City.
Earlier this week, Hyatt announced new Americas leadership and a regional restructuring to support its “continued focus on growth, operational excellence and performance optimization within its largest region.”
