Hyatt Hotels Corporation has reported a strong start to 2024, buoyed by growth in its core hotel business and continued expansion of its franchise network.
Revenue per available room (RevPAR) increased 5.5% year-over-year across comparable hotels within the Hyatt system.
All-inclusive resorts performed even better, with net package RevPAR rising 11% compared to the first quarter of 2023. Net rooms also grew by 5.5%.
Hyatt reported a net income of $522m, with adjusted net income reaching $75m. Earnings per share (EPS) adjusted for one-time factors came in at $0.71. Adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation], a measure of profitability, reached $252m.
Hyatt expects its full-year 2024 RevPAR to grow between 3% and 5%. Net income is projected to range between $1.135bn and $1.195bn.
The company's adjusted EBITDA forecast of $1.15bn to $1.19bn remains in line with previous guidance after accounting for the impact of recent transactions.
Hyatt also reiterated its commitment to returning between $800m and $850m to shareholders in 2024.
The company's development pipeline continues to flourish, reaching a record high of 129,000 rooms. Hyatt opened 12 new hotels in the first quarter, including properties in Houston, Punta Cana and Nairobi, and several locations in China.
Hyatt made significant progress on its strategy to become more asset-light through the sale of several properties.
The company has already surpassed $1.5bn in gross proceeds from real estate sales and remains on track to achieve its $2bn target by the end of 2024.
Hyatt's investment in Indian hospitality venture Juniper Hotels also yielded positive results with a successful initial public offering.
Hyatt maintains a healthy level of liquidity with $2.3bn in cash and available credit.
The company's board of directors declared a quarterly cash dividend of $0.15 per share for Q1 2024.
Hyatt's first-quarter results point to a promising overall outlook for 2024. The company is experiencing growth in its core business, is optimising its asset portfolio, and remains committed to delivering value to its shareholders.
