Hyatt Hotels Corp. CEO Mark Hoplamazian called the company’s second-quarter performance the “strongest in the company’s history by a significant margin,” fueled by “record-level leisure demand” and the company’s Apple Leisure Group (ALG) all-inclusive portfolio.<\/p>\n
During a Tuesday earnings call, Hoplamazian told investors that ALG, which Hyatt acquired for $2.7 billion last year, “significantly exceeded our expectations” in the quarter.\u00a0<\/p>\n
For the three months through June, net package RevPAR at ALG-managed all-inclusive properties in the Americas was ahead of 2019 levels by 17%, according to Hoplamazian. (Hyatt defines net package RevPAR as including revenue derived from “the sale of package revenue comprised of rooms revenue, food and beverage and entertainment.”)<\/p>\n
Moreover, based on preliminary results for July, Hyatt reported that net package RevPAR at ALG-managed resorts in the Americas is trending 24% higher than July 2019 levels, while total package revenue for the entire ALG portfolio is approximately 74% higher than July of 2019.<\/p>\n
“The strong net package RevPAR environment also contributed to a record number of new Unlimited Vacation Club contract signings and another terrific quarter for the ALG Vacations distribution [platforms],” added Hoplamazian. “And it’s worth acknowledging the strong results were achieved when travel alternatives, such as European destinations and cruise lines had significantly more availability than in prior periods.”<\/p>\n
Apple Leisure Group’s ALG Vacations arm includes packaged-travel brands Apple Vacations, Funjet Vacations, Blue Sky Tours Hawaii, Travel Impressions, CheapCaribbean and BeachBound.\u00a0<\/p>\n
Meanwhile, the pace of recovery within Hyatt’s legacy business “also exceeded expectations,” said Hoplamazian, with systemwide RevPAR improving from down 25% on 2019 in the first quarter to down only 5% in the second quarter.\u00a0<\/p>\n
Excluding the region Hyatt identifies as Greater China, which comprises mainland China, Hong Kong, Macau and Taiwan, Hyatt’s systemwide RevPAR finished ahead of 2019 for the three-month period.\u00a0<\/p>\n
For the second quarter, Hyatt saw systemwide second-quarter RevPAR increase 81.7% on the same period last year, to $130.16.\u00a0<\/p>\n
Occupancy for the quarter improved nearly 18 percentage points on the year prior, to 65.5%, while ADR for the quarter was up 32.4% on 2021, to $198.78.<\/p>\n
Hyatt’s revenue for the quarter jumped 124% on the prior year, to $1.48 billion, while net income for the second quarter increased to $206 million, versus a loss of $9 million in Q2 of 2021.<\/p>\n