Following a similar move by Wyndham
Hotels & Resorts earlier this week, Hyatt Hotels Corp. revised its 2019
revenue per available room guidance down again after flat third quarter
year-over-year RevPAR results. It now anticipates full-year RevPAR growth to be
0.5 percent, as opposed to a range of 1 percent to 2 percent. It started the
year anticipating growth within a range of 1 percent to 3 percent.
"The reduction was primarily driven by two
factors," said president and CEO Mark Hoplamazian, "the
performance of our select-service hotels in the U.S., primarily Hyatt Place
properties, and the disruptions experienced in Hong Kong." For the latter,
RevPAR for the third quarter declined 36 percent, and for October it was down
50 percent compared to a year prior, Hoplamazian added. Despite that, the
overall greater China market remains strong and the number of year-to-date
signings already exceed those from 2018.
Systemwide occupancy rose just 0.5 percentage points, while
average daily rate declined 0.7 percent. The quarterly picture for the Americas
was mixed. Full-service brands saw all three key indicators rise: RevPAR growth
by 1.5 percent, occupancy by 0.7 percentage points and ADR by 0.7 percent.
Select-service hotels, however, registered declines across the board: 2.4
percent for RevPAR, 0.4 percentage points for occupancy and 1.8 percent for
ADR.
Transient rooms revenue at comparable U.S. full-service hotels
increased 1 percent, room nights increased 2.3 percent and ADR decreased 1.3
percent. Overall group rooms revenue at comparable U.S. full-service hotels
decreased 0.2 percent, room nights decreased 2.3 percent and ADR increased 2.2
percent. Corporate group rooms revenue "continued to hold up well with an
8 percent increase over 2018," Holpamazian said, but this was offset by
lower demand from associations and leisure group business. Looking ahead, the
group booking pace for all years is up, with the exception of 2021, which is
down a little more than 1 percent.
Net income for the quarter increased 25.4 percent year over
year to $296 million. The company opened 20 hotels, with 4,422 rooms, during
the quarter, representing 13.2 percent growth over the same quarter last year,
or 7.9 percent excluding the acquisition of Two Roads Hospitality in fourth
quarter 2018.
"Our pipeline remains robust while continuing to
deliver solid organic net rooms growth of almost 8 percent this quarter,"
Hoplamazian said. "While the current global operating environment is
challenging, we feel confident in our ability to manage through volatility and
identify opportunities to strengthen our brands and performance.
Hyatt also launched its new
lifestyle brand Caption by Hyatt at the end of the quarter.
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