Hyatt Hotels Corp. posted its fifth consecutive quarter of record results in Q2, with every business segment flying high.<\/p>\n
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.”\u00a0<\/p>\n
Hoplamazian added that Q2 leisure revenue was up 26% from 2019.<\/p>\n
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.\u00a0\u00a0<\/p>\n
Group revenue was also a standout in Q2, up 14% from a year earlier and fully recovered from the pandemic.<\/p>\n
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.”<\/p>\n
“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.”<\/p>\n
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.\u00a0<\/p>\n
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.\u00a0<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.\u00a0<\/p>\n
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.<\/p>\n