Hyatt Hotels Corporation for the second quarter 2024 reported systemwide hotels RevPAR increased 4.7% compared to the same period in 2023. The company’s pipeline reached a record high of 130,000 rooms.
“We posted solid second-quarter results demonstrating our differentiated positioning and continued momentum,” said Mark S. Hoplamazian, president/CEO, Hyatt. “System-wide RevPAR grew by 4.7% and net rooms growth was 4.6%, generating record gross fee revenue of $275 million in the quarter. Our pipeline reached a new record of 130,000 rooms, up 9% year-over-year, reflecting strong developer interest in our brands. We saw continued growth of the World of Hyatt loyalty program, with membership increasing by 21% year-over-year to a record 48 million members. These achievements demonstrated the strength of our asset-light earnings model, which is designed to deliver strong free cash flow and enhance shareholder value.”
Second-quarter highlights include:
- Comparable system-wide all-inclusive resorts net package RevPAR increased 3.0% compared to the same period in 2023
- Net rooms growth was approximately 4.6%
- Net income was $359 million and adjusted net income was $158 million
- Diluted EPS was $3.46 and adjusted diluted EPS was $1.53
- Adjusted EBITDA was $307 million
- Pipeline of executed management or franchise contracts was approximately 130,000 rooms
- Full-year comparable system-wide hotels RevPAR is projected to increase 3% to 4% on a constant currency basis compared to full-year 2023
- Full-year net income is projected between $1.055 billion and $1.115 billion
- Full-year adjusted EBITDA is projected between $1.135 billion and $1.175 billion
Segment results and highlights
Management and franchising: Second-quarter results reflected strong performance in business transient and group travel. In the U.S., RevPAR increased more than 2% from strong group and business travel, while leisure travel was negatively impacted by the timing of Easter, renovations at large resort properties and continued impact from the 2023 Maui wildfires. Travel within Europe remains strong driven by inbound travel from the U.S. and large one-time events. Greater China was impacted by strong outbound travel from Greater China to other markets within Asia, including Japan and South Korea. In Asia-Pacific excluding Greater China, RevPAR increased approximately 18% during the quarter.
Owned and leased: Adjusted EBITDA in the second quarter increased 9% compared to the second quarter of 2023, when adjusted for the net impact of transactions. Comparable margins increased 110 bps compared to the second quarter of 2023, as revenue growth outpaced expenses.
Distribution: Adjusted EBITDA in the second quarter increased $9 million compared to the second quarter of 2023. Excluding Unlimited Vacation Club, adjusted EBITDA was below 2023 by approximately $5 million, consistent with the expectations communicated previously because of ALG Vacations lapping a strong second quarter last year.
Openings and development
In the second quarter, 18 new hotels (or 3,251 rooms) joined Hyatt’s portfolio. Notable openings included Park Hyatt Changsha, Maison Métier, The Legend Paracas Resort, the first Destination by Hyatt property in Peru and Hyatt Vivid Grand Island, the first open Hyatt Vivid Hotels & Resorts property. Additionally, the first Caption by Hyatt properties outside the U.S. opened in the quarter: Caption by Hyatt Namba Osaka and Caption by Hyatt Zhongshan Park Shanghai. The first Hyatt Centric in Shanghai, Hyatt Centric Zhongshan Park Shanghai, also opened in the quarter.
As of June 30, the company had a pipeline of executed management or franchise contracts for approximately 670 hotels (approximately 130,000 rooms).
