Hyatt Hotels Corp.'s fourth-quarter business transient volume remained below pre-pandemic levels but shows “incremental improvement from the previous quarter,” president and CEO Mark Hoplamazian said Thursday during an earnings call.
The company reported fourth-quarter systemwide revenue per available room increased 34.8 percent to $126.33 from 2021 levels, and up 2.4 percent over 2019.
RevPAR recovery in Q4 was again “powered by strong pricing with leisure transient and group average rates up 19 percent and 15 percent compared to 2019 levels, respectively,” according to the company
The company hit another milestone with fourth-quarter systemwide group revenue surpassing 2019 levels by 1.3. percent, which Hoplamazian called “a testament to our association and corporate customers prioritizing in-person interaction and connection.”
Average daily rates also remained strong for Hyatt in Q4. ADR was up 14 percent above 2019 levels, while “while occupancy continued to recover,” according to the company.
And while Hyatt’s Q4 leisure demand and revenue remained strong, its business transient revenue was 18 percent below 2019 levels. Hyatt executives nevertheless shared optimistic outlooks. “Continued recovery in Asia Pacific and ongoing improvements in group and business transient demand serve as key contributors to our RevPAR growth expectations over the back half of the year,” Hyatt CFO Joan Bottarini said.
Looking ahead, Bottarini said the company expects “full-year 2023 system wide RevPAR growth in the range of 10 percent to 15 percent compared to 2022." She added, "We expect larger growth rates over the first half of the year, in the mid-20 percent range.”
Additional Q4 Results
Hyatt pipeline was also increased to an all-time-high of 117,000 rooms by the end of the year, “bolstered by a robust year of signings that more than offset the impressive pace of openings,” Hoplamazian said. Hyatt’s pipeline total includes 8,000 rooms from the Apple Leisure Group acquisition.
Hyatt’s systemwide fourth-quarter occupancy reached 63.5 percent, up 8.2 percentage points over 2021. Hyatt’s Q4 average daily rate reached $198.88, up 17.5 percent over the year prior.
Hyatt reported net income of $294 million in Q4, which was a gain over the company’s loss in 2021.
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