by Donald Wood
Last updated: 11:22 AM ET, Tue August 9, 2022
Hyatt Hotels Corporation reported net income was $206 million for the second quarter of 2022, a massive increase from a net loss of $9 million during the same period the previous year.
According to second quarter financial results, Hyatt revealed its adjusted net income was $51 million compared to adjusted net loss of $117 million in the second quarter of 2021. Adjusted EBITDA also increased to $255 million from $55 million.
Apple Leisure Group contributed $54 million of Adjusted EBITDA, while comparable system-wide RevPAR increased 82 percent and U.S. hotel RevPAR increased 85 percent. Owned and leased hotels RevPAR increased 140 percent and owned and leased hotels operating margin improved to 31.9 percent in the second quarter.
Hyatt's All-inclusive Net Package RevPAR reached an Average Daily Rate of $255.30, and system-wide Net Rooms Growth was 19 percent. The company's pipeline of executed management or franchise contracts was approximately 113,000 rooms.
"Our second quarter results serve as clear evidence of the earnings power of Hyatt as we continue to transform our business," Hyatt CEO Mark Hoplamazian said. "Total fee revenue exceeded $200 million and was 27 percent higher than any other quarter in the Company's history driven by a record level of leisure transient revenue and rapidly improving group and business transient demand."
"Demand broadened both geographically and by segment, with RevPAR in most of our key geographies exceeding the same period in 2019," Hoplamazian continued. "Our outlook remains optimistic with strong actualized results and booking trends for future periods continuing in July."
During the second-quarter conference call, Hyatt revealed expectations for the rest of 2022, including system-wide constant dollar RevPAR growing to be greater than 2021 by a range of 55-60 percent.
RevPAR is expected to be less than 2019 by a range of four-to-nine percent for hotels that were comparable in both years. The company does expect to grow net rooms by greater than six percent.
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