Hyatt Sees Gains In Business, Group Demand

Hyatt Hotels Corp. today reported an increase in both transient and group demand during the first quarter of 2010 and rate growth at selected hotels, though overall rates continued to decline during the quarter.

Total occupancy at Hyatt's 369 systemwide hotels increased year over year by 5.8 percentage points to 64.4 percent during the quarter. Occupancy growth was particularly strong in North American select service properties—the Hyatt Place and Summerfield Suites brands—and internationally, up 8.7 percentage points and 8 percentage points, respectively.

Hyatt president and CEO Mark Hoplamazian said most markets in North America reported occupancy increases. "On the group side, we have begun to see greater booking activity, but we continue to have limited visibility on future bookings due to short lead times and smaller-sized bookings," he said in a statement.

In a conference call to investors, Hoplamazian said performance was particularly strong in the Europe, the Middle East and Africa and Asia/Pacific regions. Internationally, average daily rate increased by 3.6 percent compared with the first quarter of 2009, though it was a 4.3 percent decrease in constant dollars. Rates in North America continued to decline, however, down 7.9 percent in full-service brands and 10.7 percent in select-service brands.

Overall systemwide revenue per available room increased by 5 percent during the quarter. International RevPAR was up 18.7 percent. Select-service North American properties increased RevPAR by 2.6 percent, while full-service RevPAR decreased by 2.2 percent.

Hyatt added 10 properties to its portfolio during the quarter, half of which were Hyatt Place properties in the United States. The company also sold one property: the Hyatt Regency Boston.