Short-Term Corp. Mtg. Surge Fuels Hyatt’s Q2

A rapid return of short-term corporate meetings and the
continued recovery of business transient volume, led by the hotel company’s
largest accounts, helped push Hyatt Hotels Corp. to what CEO Mark Hoplamazian
on Tuesday called a “superior” second quarter.

The company during the quarter realized
“unprecedented” short-term group demand, Hoplamazian said during a
conference call with investors. While overall group revenue increased
throughout the quarter, from down 14 percent in April in group revenue against
2019 levels to down 7 percent in June, it was short-term corporate meetings for
which demand exploded, he said.

“We continue to see significant short-term group demand
primarily from corporations with gross group bookings in the second quarter for
stays that will occur this year at 45 percent above 2019 levels for our
Americas full-service managed properties,” Hoplamazian said.

Transient business travel also continued to recover, he said,
from down 58 percent in revenue compared with 2019 during the first quarter to
down 38 percent in the second quarter, and 31 percent in June. Those numbers
were stronger among Hyatt’s national accounts, which collectively were 71
percent recovered to 2019 levels in June, and its 10 largest accounts, which
collectively were more than 80 percent recovered, he said. 

“As more employees return to office, restrictions are
eased and cross-border travel more fully resumes, we anticipate business
transient to continue to strengthen in the months ahead,” Hoplamazian
said.

Hyatt Q2 Performance

Second-quarter systemwide occupancy among Hyatt’s comparable
owned and leased hotels was 70.4 percent, up 30.8 percentage points year over
year. Average daily rate at those properties increased 35.2 percent to $265.

Systemwide revenue per available room increased 82 percent
year over year to $130.16.

Hyatt’s second-quarter earnings before interest, taxes,
depreciation and amortization increased to $255 million. About $54 million of
that total was contributed by Apple Leisure Group, the portfolio of resort
holdings Hyatt
acquired last year. Hyatt’s EBITDA in the second quarter of 2021 was $55
million.

Excluding Apple Leisure Group, Hyatt’s second-quarter net
rooms growth was 4.6 percent, and its development pipeline as of June 30
included approximately 106,000 rooms.

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