by Lacey Pfalz
Last updated: 9:25 AM ET, Tue August 6, 2024
Hyatt Hotels Corporation celebrated three new records when it shared its second quarter economic statement, with record fee revenue, development pipeline and World of Hyatt loyalty rewards members.
Hyatt’s system-wide hotels RevPAR, or revenue per available room, increased 4.7 percent compared to the same quarter in 2023, with a net rooms growth of 4.6. Because of these two increases, Hyatt saw the highest amount of fee revenue generated in a single quarter, at $275 million.
Hyatt’s development pipeline also grew 9 percent year-over-year, to reach a record 130,000 rooms across about 670 hotels and resorts. The hotel giant welcomed 18 new hotels in the second quarter of the year, which represent 3,251 rooms. Notable openings include Caption by Hyatt Namba Osaka, The Legend Paracas Resort and Maison Métier.
Its World of Hyatt loyalty rewards program saw a record number of members, with 48 million members. It grew 21 percent year-over-year. World of Hyatt members can now, as of the second quarter of the year, earn and redeem rewards points for the me and all hotels brand and Under Canvas.
In terms of finances, Hyatt’s net income was $359 this quarter, with an adjusted EBITDA of $307 million. Shareholders earned about $3.46 this quarter (according to the diluted EPS), with Hyatt predicting full-year capital returns to be between $800 million and $850 million.
"We posted solid second quarter results demonstrating our differentiated positioning and continued momentum,” said Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt. “System-wide RevPAR grew by 4.7% and net rooms growth was 4.6%, generating record gross fee revenue of $275 million in the quarter. Our pipeline reached a new record of 130,000 rooms, up 9% year-over-year, reflecting strong developer interest in our brands. We saw continued growth of the World of Hyatt loyalty program, with membership increasing by 21% year-over-year to a record 48 million members. These achievements demonstrated the strength of our asset-light earnings model, which is designed to deliver strong free cash flow and enhance shareholder value."
Looking ahead to the full-year results, Hyatt predicts a net income of $1.055 to $1.115 billion, with system-wide RevPAR growth between 3-4 percent and a net rooms growth of 5.5-6 percent.
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