Hyatt hotels reported higher-than-expected RevPar growth in 2023, driven by improved group and business transient results along with resilient leisure demand, the company announced on Friday (23 February).
The US-based hotel company posted a 9.1 per cent year-on-year increase in system-wide revenue per available room (RevPAR) for the fourth quarter of 2023, while RevPAR for the full year increased 17 per cent compared to the same period in 2022.
The uptick was largely attributed to the “rapid recovery” in Greater China and the strengthening group demand in the US – where group bookings for full-service managed properties is currently up 8 per cent for full year 2024 compared to 2023.
Hyatt president and CEO Mark Hoplamazian, said: “The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution.
“RevPAR growth exceeded the high end of our guidance range and we had industry leading net rooms growth for the seventh consecutive year. This led to a record level of fees and the highest free cash flow in Hyatt’s history,” he added.
Europe, Middle East and Africa saw “strong” business transient and group performance and “resilient” leisure demand in the fourth quarter, resulting in a 19.7 per cent year-on-year increase in revenue to $17 million. Full-year revenue was 30.4 per cent higher than 2022 at $61 million, with the region benefitting from increased airlift from the US, Middle East, and China.
The Asia-Pacific region, meanwhile, saw the highest fourth-quarter revenue gains, with a 76.9 per cent increase to $36 million compared to the same period in 2022, and a 131.9 per cent increase in revenue for the full year.
Across the Americas, a 7.6 per cent year-on-year rise in revenue in the firth quarter to $114 million was driven by “improved” group and business transient results and continual leisure demand. RevPAR in the US was up 3 per cent in the fourth quarter compared to the same period in 2022, driven by strong group rate.
Hyatt’s system-wide net income was $26 million in the fourth quarter, while full-year net income exceeded guidelines at $220 million. Adjusted net income was $68 million in the fourth quarter and $276 million for the full year of 2023.
Meanwhile, adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) came in at $241 million for Q4 and $1,029 million for the full year. Net rooms growth for the year was 5.9 per cent.
The company opened 101 new hotels (the equivalent of 23,965 rooms) in 2023, including 29 properties in the fourth quarter.
Looking ahead, Hyatt expects full-year system-wide RevPAR for 2024 to increase between 3 per cent to 5 per cent compared to 2023, and net rooms growth to increase between 5.5 per cent and 6 per cent.