Hyatt hotels announced on Friday (23 February) that they had achieved higher-than-expected RevPar growth in 2023. This growth was driven by improved group and business transient results, as well as resilient leisure demand.
In the fourth quarter of 2023, the US-based hotel company reported a 9.1 per cent year-on-year increase in system-wide revenue per available room (RevPAR). For the full year, RevPAR increased by 17 per cent compared to the same period in 2022.
The company attributed much of this success to the rapid recovery in Greater China and the strengthening group demand in the US. Group bookings for full-service managed properties in the US were up by 8 per cent for the full year of 2024 compared to 2023.
Hyatt’s president and CEO, Mark Hoplamazian, stated: “The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution.” He added, “RevPAR growth exceeded the high end of our guidance range and we had industry-leading net rooms growth for the seventh consecutive year. This led to a record level of fees and the highest free cash flow in Hyatt’s history.”
The Europe, Middle East, and Africa region saw strong business transient and group performance, as well as resilient leisure demand in the fourth quarter. Revenue increased by 19.7 per cent year-on-year to $17 million. Full-year revenue for the region was 30.4 per cent higher than in 2022 at $61 million.
In the Asia-Pacific region, revenue gains were the highest in the fourth quarter, with a 76.9 per cent increase to $36 million compared to the same period in 2022. Revenue for the full year saw a 131.9 per cent increase.
Across the Americas, revenue in the fourth quarter rose by 7.6 per cent year-on-year to $114 million. This increase was driven by improved group and business transient results, as well as continual leisure demand. RevPAR in the US was up by 3 per cent in the fourth quarter compared to the same period in 2022, driven by strong group rates.
In the fourth quarter, Hyatt reported a system-wide net income of $26 million, while full-year net income exceeded guidelines at $220 million. Adjusted net income was $68 million in the fourth quarter and $276 million for the full year of 2023.
Adjusted EBITDA for the company was $241 million for Q4 and $1,029 million for the full year. Net rooms growth for the year was 5.9 per cent.
In 2023, Hyatt opened 101 new hotels (equivalent to 23,965 rooms), including 29 properties in the fourth quarter.
Looking ahead, Hyatt anticipates full-year system-wide RevPAR for 2024 to increase between 3 per cent and 5 per cent compared to 2023, with net rooms growth expected to increase between 5.5 per cent and 6 per cent.
