All of Hyatt's business segments thrive in Q2
Hyatt Hotels Corp. posted its fifth consecutive quarter of record results in Q2, with every business segment flying high.
Even leisure travel continued to grow (up 7% from a year earlier), which CEO Mark Hoplamazian called “particularly impressive considering the pent-up demand that drove very strong results in the second and third quarter of 2022 due to omicron’s impact.”
Hoplamazian added that Q2 leisure revenue was up 26% from 2019.
Meanwhile, a bounce-back in business travel continues. That segment was up 36%, with Hoplamazian estimating that business travel is now 86% recovered from the pandemic. May and June were particularly good with revenue at 90% of 2019 due to strengthened demand from large corporations.
Group revenue was also a standout in Q2, up 14% from a year earlier and fully recovered from the pandemic.
All-inclusive resorts continue to thrive
Hyatt’s Apple Leisure Group division of all-inclusive resorts continued its momentum in the quarter. ALG’s net package RevPAR grew 8% year over year. Hoplamazian added that growth is settling into “more normalized demand patterns.”
“Typically, there’s a break point after Labor Day where you see a significant falloff in business — we saw none of that last year,” said Hoplamazian. “We do expect aa normalization of that seasonality and a drop-off after Labor Day for ALG.”
Hoplamazian said he sees potential for all-inclusives to attract a larger share of group business with increased exposure to meeting planners and travel advisors.
According to Hyatt CFO Joan Bottarini, the ALG Vacations packaged-travel business also did well in Q2, posting revenue growth of 7% and compiling approximately 740,000 guest departures.
ALG’s Unlimited Vacation Club added approximately 9,000 new memberships during the quarter, adding to an existing base of around 140,000 active members.
For Q2, Hyatt said systemwide RevPAR climbed 10.1% to $206. Occupancy rose 3.9 percentage points, reaching 74%. Average daily rate rose 4.4% to $279.
Hyatt reported second-quarter net income of $68 million, down from $206 million in the second quarter of 2022. Total revenue for the quarter was $1.7 billion, up from nearly $1.48 billion a year earlier.
On June 2, Hyatt completed its $72 million acquisition of Mr & Mrs Smith, a buy that gives Hyatt customers direct booking access to some 1,500 curated boutique and luxury properties.
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