Hyatt Hotels Corp. Softness in the previous quarter.
Growth as Hyatt Prepare for acquisition Playa Hotels & Resorts, owner and operator of the all-inclusive resort, is priced at $2.6 billion.
“We are well prepared to strengthen our existing all-inclusive infrastructure in Mexico and the Caribbean,” Hyatt CEO Mark Hoplamazian told analysts on the company’s earnings call in the Americas.
“The model is very, very attractive,” Hoplamaz said. He said the full library has high profit margins, yields and cash flow, and “the durability of the model has been proven.”
Great growth in business travel
The company’s broader performance is also stable, with Systemwide Revpar growing by 5% in the quarter. Revpar in the U.S. grew by more than 3%, while business travel became the strongest growth area, with revenue rising 10%.
Group revenues remained flat, but revenues rose 5% at the time of the Jewish holiday in October and the U.S. election adjustment in November.
Hyatt’s system-wide occupancy rate reached 68.9% in the fourth quarter, up 2.1 percentage points from the previous year, while the average daily interest rate (ADR) rose 1.8% to $204.40.
For the fourth quarter, Hyatt reported a net loss of $56 million, compared with net income of $26 million in the fourth quarter of the previous year. Hyatt said it acknowledged $161 million damage charges “related to goodwill, determined intangible assets”.
CEO solves new brand structure
During the call, Hoplamazian highlighted Hyatt’s improved brand organization, which divides its portfolio into luxury, lifestyle, inclusive, classic and essential categories.
It is worth noting that Hyatt’s two all-inclusive brands – Secret and breathless resorts and spas – now fall into the luxury and lifestyle category rather than inclusiveness.
The company’s luxury categories include impressions of Park Hyatt, Alila, Miraval, Secret and Unbounded Collection, while its lifestyle categories are Andaz, Thompson ), Standard, Standard X, Fantasy Hotel, Dyspnea, Hyatt, Bunkhouse, Bunkhouse, Bunkhouse and my homeland.
The inclusive lineup now includes Hyatt Ziva, Hyatt Zilara, Zoetry, Secrets, Dreams, Vivid, Vivid, Sunscreen and Alua.
The classic portfolio of Hyatt, Hyatt and Hyatt Regents, while the Essentials Collection is titled Hyatt, Hyatt Place and Hyatt House among others.
Hoplamazian said the revamped organization will allow Hyatt to “further increase attention to the guests and customers we serve within these brand groups.”
