by Lacey Pfalz
Last updated: 9:30 AM ET, Thu May 9, 2024
Hyatt Hotels Corporation celebrated its record-breaking growth and financial success during the first quarter of 2024, breaking records on gross fee revenue, pipeline growth and World of Hyatt membership.
The post-pandemic recovery period is far behind Hyatt this year. During the first quarter, comparable system-wide hotels RevPAR, or revenue per available room, increased 5.5 percent year over year.
Hyatt broke three records this quarter: its development pipeline is the largest it's ever been, with 129,000 rooms in executed management or franchise contracts, which is around 670 hotels. In the first quarter alone, Hyatt celebrated the opening of 12 new hotels with a total of 2,425 rooms, including Thompson Houston, Secrets Tides Punta Cana and Hyatt Regency Nairobi Westlands.
World of Hyatt membership grew 22 percent, for a total of 46 million members. And gross fee revenue reached the highest it's ever been, at $262 million in the first quarter alone.
"The year is off to a great start with gross fee revenue reaching a record of $262 million in the quarter,” said Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt. “Our pipeline also reached a new record, expanding 10% year-over-year to 129,000 rooms, and we realized net rooms growth of 5.5%. World of Hyatt membership has grown by 22%, reaching a new record of 46 million members. Significant progress on asset dispositions is further expanding our asset-light earnings mix, reflecting our execution to permanently reduce owned real estate."
Net income for the first three months of 2024 was $522 million, with an adjusted net income of $75 million. All-inclusive resorts, which are growing in popularity across the major hotel corporations, saw a net package RevPAR increase of 11 percent from the first quarter of 2023.
The 2024 Outlook
Hyatt Hotels Corporation expects to continue its growth into the rest of the year. It predicts full year comparable system-wide hotels RevPAR will increase between 3 to 5 percent from 2023, and that net income will range between $1.135 billion and $1.195 billion. Capital returns to shareholders this year is projected to be between $800 and $850 million.
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