by Lacey Pfalz
Last updated: 10:00 AM ET, Thu November 4, 2021
Hyatt Hotels Corporation has released a report of its third quarter 2021 results, showcasing yet again that the world's largest hotel corporations are leading the hotel industry's recovery.
Compared to last year's quarter three net income loss of $161 million, Hyatt has made a profit with a net income of $120 million this quarter, which ended September 30, 2021.
RevPAR, or revenue per available room, is another key indicator of a hotel or hotel corporation's success. While it doesn't correlate directly with hotel occupancy rates, they are somewhat related in that when one grows, the other usually grows, too.
RevPAR grew 29 percent in the third quarter due to leisure travel and a growth of business travel in some regions, with business travel demand growing more than 40 percent from the second quarter.
EBITDA, or earnings before interest, taxes, depreciation or amortization, is split into the Hyatt corporation's regional management and franchising segments: the Americas region; the Southeast Asia, Greater China, Australia, New Zealand, South Korea, Japan and Micronesia (ASPAC) region; and the Europe, Africa, Middle East and Southeast Asia (EAME/SW Asia) region.
The Americas segment's Adjusted EBITDA rose from $16 million last year to $74 million this third quarter. ASPAC reported an Adjusted EBITDA decrease, from $9 million the same time last year to $6 million this year, due to travel restrictions in these various Asian countries.
The Adjusted EBITDA of the EAME/SW Asia management and franchising segment increased to $5 million this year from $2 million last year as travel restrictions eased.
This third quarter expanded Hyatt's number of hotels, adding twenty new properties totalling 4,599 rooms. The corporation also recently finalized the acquisition of Apple Leisure Group and hundreds of properties currently in development.
As of September 30, 99 percent of all Hyatt properties worldwide were open. Hyatt Hotel Corporation has reported a total debt of $2.98 billion.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, "During the quarter, we again produced results that exceeded expectations and demonstrated the resilience of our business. Adjusted EBITDA for the third quarter approached 70% of 2019 levels and more than doubled from the prior quarter. Leisure demand continues to lead the recovery and momentum for business and group travel is growing. The recovery is evident in more markets as travel restrictions ease and borders reopen."
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