Hyatt Hotels Corp.’s president and CEO, Mark Hoplamazian, expressed optimism during the company’s recent earnings call regarding the business travel demand in 2024. He highlighted that the systemwide first-quarter revenue from the business travel sector was up by 6% year over year, indicating a strong recovery trend. Revenue from business-travel stays globally showed a consistent increase, particularly in January and February, with the U.S. market displaying similar positive trends, signifying a recovery in business travel.
Hoplamazian shared some staggering statistics during the earnings call to further emphasize the strength of the business travel segment. He mentioned that business transient hotels saw a remarkable increase of almost 16% in the first quarter, with convention hotels up by about 11%. Specific locations, such as New York City, San Jose, and Seattle, reported significant growth, attributing it to the rise in technology transient and business transient by 30% in the first quarter.
Hyatt’s systemwide first-quarter revenue per available room witnessed a 5.5% increase to $131.86, accompanied by a 2% rise in the average daily rate to $202.33. Occupancy also increased by 2.2 percentage points to 65.2%, reflecting a positive performance in the hospitality sector. In the U.S. market, while Revenue Per Available Room (RevPAR) increased by 0.2% to $132.68, the average daily rate dropped by 0.4% to $205.41. However, excluding the impact of the Easter holiday shift, U.S. RevPAR actually increased by about 2%, as shared by Hyatt’s CFO, Joan Bottarini.
The company reported a first-quarter revenue increase to $1.71 billion from $1.68 billion compared to the previous year. Net income also witnessed a significant boost, increasing to $522 million from $58 million in Q1 2023, largely driven by the sales of Hyatt properties in various locations. Hyatt’s net rooms increased by 5.5% year over year, surpassing 323,400 rooms, while the pipeline showed a promising 10% growth, exceeding 129,000 rooms.
Hyatt Hotels Corp.’s robust performance in the business travel sector in 2024 reflects a positive trajectory for the hospitality industry. With encouraging statistics, strong financial results, and a promising outlook, Hyatt seems well-positioned to capitalize on the growing demand for business travel and continue its success in the market.