Dive Brief:

• Hyatt’s comparable systemwide RevPAR was up 43% in the first quarter of 2023, compared to the same time last year, and up 6% compared to the first quarter of 2019, according to the company’s first-quarter earnings report. 
• The Americas, Asian Pacific and European, Middle Eastern and African management and franchising segments all generated significant growth in the first quarter, which Hyatt attributed to increasing travel demand.
• Also in the first quarter, Hyatt generated a record $231 million in total management, franchise, license and other fees, up 50% compared to the first quarter of 2022.

Dive Insight:

Hyatt reported net income of $58 million in the first quarter of 2023 compared to a net loss of $73 million in the first quarter of 2022. Adjusted EBITDA for the quarter was $268 million compared to $169 million in the first quarter of last year. 

The Americas management and franchising segment generated $119 million, up 40.2% from the same time last year. The Asian Pacific and EMEA management and franchising segments also saw a significant boost, generating $25 million (up 264.2%) and $12 million (up 256.9%), respectively. 

For the Americas segment, Hyatt attributed strong results to sustained strength of leisure travel demand and continued improvement in business travel demand. Additionally, group demand in the segment showed notable momentum, Hyatt said. 

Other major hotel brands saw similar trends in traveler behavior, with Hilton and Wyndham citing strong leisure travel demand and spending among consumers based on their first-quarter earnings. Additionally, Pebblebrook Hotel Trust attributed increased business demand, both group and transient, for rising occupancy at its U.S. urban hotels. 

Hyatt said strong results in the Asian Pacific segment were led by broad recovery across the region, while the EMAE segment benefited from strong international inbound demand.

In February, Hyatt completed the $125 million acquisition of Dream Hotel Group. In the first quarter, the company also launched Hyatt Studios, the first upper-midscale brand in the Americas for extended-stay travelers, and entered an agreement to acquire luxury hotel platform Mr & Mrs Smith. 

“For the fourth consecutive quarter we posted record results that exceeded our expectations, demonstrating our unique positioning and differentiated model. We raised our full year RevPAR outlook while maintaining our record level pipeline and industry leading net rooms growth,” said Mark S. Hoplamazian, president and CEO of Hyatt, in the earnings report. “We continue to experience favorable booking trends and our outlook remains optimistic.”