Hyatt Hotels Corp. on Thursday reported increased revenues,
particularly in its international properties, despite continued drops in rates
during the second quarter, though the company expects to see high-single-digit percentage
rate increases as a result of upcoming corporate transient rate negotiations.
Revenue per available room was up by 6.8 percent for
full-service hotels in North America compared with the second quarter of 2009,
and RevPAR for select-service hotels increased by 7.8 percent. In Hyatt's
international properties, RevPAR was up 21.4 percent. Hyatt president and CEO
Mark Hoplamazian said in a conference call to investors that occupancy levels
during the quarter increased at the majority of hotels around the globe.
Full-service rates in North America declined by 1.1 percent
during the quarter and by 4.6 percent in the select-service tier, while
international rates were up by 5.7 percent. Group rates were up 4 percent for
the quarter, according to Hyatt.
Hoplamazian, however, said the company expects to increase
corporate rates during negotiations this year, though those will vary by
account. "We're working off a low base to begin with, so we expect to see
rate increases through the negotiating season," Hoplamazian said. "It's
in the very early days at this point, but the discussions range from low single
digits to low double digits."
Hyatt opened 12 new hotels during the quarter, including one
Park Hyatt resort, one Hyatt Regency resort, a Hyatt in Miami, three properties
in its extended stay Summerfield Suites brand and six midprice Hyatt Place
properties.