Increased international travel from the US to Europe and Asia over the summer helped raise quarterly profits at Hyatt Hotels Corporation.
Adjusted earnings (ebitda) rose by almost 9% year-on-year to $275 million in the three months to September 30, with net income of $471 million.
Hyatt also provided guidance on its full year outlook, with full year adjusted ebitda projected at between $1.1 billion-$1.12 billion with net income between $1.4 billion-$1.45 billion.
The company reported strong business and group travel demand during the third quarter, while leisure was impacted in the US by renovations, weather, and increased international outbound to Europe and Asia Pacific, excluding China
Results for the third quarter reflected more seasonal booking patterns compared to last year but also the impact of Hurricanes Beryl and Helene, Hyatt said.
The key metric of revenue per available room (revpar) in Europe increased 15%, bolstered by the summer Olympics in Paris. Overall revpar was up three per cent year-on-year.
A total of 16 new hotels with 2,589 rooms joined Hyatt’s portfolio in the three month period, including a Park Hyatt in Marrakech.
The company ended the quarter with a pipeline of management or franchise contracts for almost 700 hotels representing 135,000 rooms.
Hyatt has since agreed a €359 million deal for 50% of a joint venture to add 23 Bahia Principe all-inclusive resorts (pictured) in the Caribbean and Spain to its portfolio, covering 12,000 rooms.
The company has also entered the luxury tented accommodation arena with 13 outdoor resorts in an alliance with specialist firm Under Canvas.
Meanwhile, a 22% increase in membership of the World of Hyatt loyalty programme saw numbers reach a record 51 million.
President and chief executive Mark Hoplamazian said: “We reported solid third quarter results, with gross fee revenues reaching $268 million.
“Our pipeline reached a new record of approximately 135,000 rooms, increasing 10% year-over-year, and World of Hyatt membership expanded to a record of 51 million members, growing a remarkable 22% year-over-year.”
He cited operating results, the planned joint venture transaction to manage Bahia Principe branded hotels and resorts and other initiatives as demonstrating the strength of the group’s “asset-light earnings model”, leading to the return of more than $1.2 billion to shareholders through share repurchases and dividends so far this year.