Hyatt Hotels Corp.'s second-quarter business travel revenue per available room was about flat year over year, and softer still in the U.S. and at limited-service properties. Still, executives project stronger business transient demand after Labor Day.
Hyatt's second-quarter U.S. business travel RevPAR declined 1.5 percent year over year, CEO Mark Hoplamazian said Thursday during the company's quarterly earnings call, and also declined in Hyatt's U.S. select-service hotels. U.S. business travel RevPAR at Hyatt's full-service hotels increased "in the low single digits," he said.
"Although booking trends in the second quarter were softer compared to the first quarter, we're seeing an uptick in future bookings for both leisure and business transient travel," Hoplamazian said. "Our group and corporate customers have shared that travel continues to be a priority, especially for customer-facing meetings, and we expect U.S. RevPAR growth to improve after Labor Day."
Hyatt CFO Joan Bottarini added that the company is "seeing some better pickup on the BT side that we expect to realize post-Labor Day into the fourth quarter. That's still a shorter-term business. But as we talk to our top corporate customers, they are confident in getting back on the road post-Labor Day."
Hyatt Q2 Metrics
Hyatt's systemwide second-quarter revenue per available room increased 1.6 percent year over year to $150.97. Hoplamazian credited strong leisure travel by high-end travelers at Hyatt's luxury brand and noted that the year-over-year systemwide RevPAR increase would have been 2.2 percent absent the effect of the shift in the Easter holiday.
Hyatt's systemwide second-quarter average daily rate increased 1 percent to $206.47, and occupancy increased 0.5 percentage points to 73.1 percent.
In the United States, RevPAR declined 0.1 percent year over year to $157.92, while ADR increased 1.1 percent to $213.74 and occupancy declined 0.9 percentage points to 73.9 percent.
Hyatt maintained its outlook for a 1 percent to 3 percent year-over-year increase in full-year 2025 RevPAR. The new projection implies systemwide RevPAR for the balance of 2025 would be flat to 2 percent higher than 2024 levels, Bottarini said, adding that the company expects third-quarter RevPAR to be closer to the bottom of that range and fourth-quarter RevPAR to be nearer the top.
Hyatt's RevPAR projection does not take into account its $2.6 billion acquisition of all-inclusive resort chain Playa Hotels & Resorts, which closed June 17.
Hyatt's total second-quarter revenue increased about 6 percent year over year to more than $1.8 billion. Hyatt's net loss was $3 million compared with net income of $359 million in Q2 2024.
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