Dive Brief:
- Hyatt Hotels Corp. posted “solid” performance results for the second quarter of 2024, with its system-wide RevPAR growing 4.7% year over year in the quarter and net rooms increasing 4.6% for the same period, CEO Mark Hoplamazian said in an earnings report published Tuesday.
- The hotel company’s pipeline also reached a new record of 130,000 rooms, up 9% year over year in Q2, Hoplamazian detailed. And its World of Hyatt loyalty program also grew, with membership increasing 21% year over year to 48 million members.
- Shortly after the second quarter ended, Bloomberg reported that Hyatt is in advanced talks to acquire boutique hotel operator Standard International. During a Tuesday earnings call with analysts, Hoplamazian did not comment on the reported acquisition but said Hyatt will “continue to be very intentional with our organic and inorganic growth, ensuring that our brand and property portfolio expansion creates opportunities for new guests to find us and join World of Hyatt.”
Dive Insight:
Hospitality pros told Hotel Dive earlier this month that brand acquisition is a means for Hyatt to build portfolio scale quickly and attract loyalty members. Despite the World of Hyatt membership growth in Q2, the program still lags competitors like Marriott International and Hilton, which each have closer to 200 million loyalty members.
In the second quarter, Hyatt added 700 boutique and luxury hotels and villas from the Mr & Mrs Smith platform, which it acquired in 2023. During the call, Hoplamazian said the company expects to have more than 1,000 Mr & Mrs Smith properties available through World of Hyatt by year-end. Hyatt also acquired German hotel brand Me and All in the second quarter.
Beyond brand acquisitions, Hyatt added 18 hotels, or 3,251 rooms, to its portfolio in the second quarter, including New Orleans luxury hotels Maison Métier and The Barnett, which will join the company’s Independent Collection this year. The move was part of Hyatt’s larger strategic push in the luxury lifestyle segment.
As of June 30, the company had a pipeline of executed management or franchise contracts for approximately 670 hotels, reflecting “strong developer interest,” Hoplamazian said on the call.
“Signings in the quarter were healthy across the world, led by the United States and Greater China,” Hoplamazian added, noting that Hyatt continues to see heightened interest in its midscale extended stay brand, Hyatt Studios, particularly.
As for travel demand, Hoplamazian said group and business transient were Hyatt’s strongest customer segments in the second quarter. Group pace for Hyatt’s U.S. full-service managed properties is up 7% year over year for the second half of 2024, he added.
The company anticipates “higher growth rates [for group] in the third quarter compared to the fourth quarter,” Hoplamazian said, adding that the pharma and tech sectors dominated “very strong July booking activity.”
