by Lacey Pfalz
Last updated: 10:20 AM ET, Thu October 31, 2024
Hyatt Hotels Corporation saw another successful quarter of growth this year, with a record development pipeline and a stronger business travel and group travel demand than in previous years.
Net income was $471 million, with an Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization of $275 million, which is 8.9 percent higher than the same quarter last year. Shareholders were given a diluted earnings per share of $4.63.
Comparable system-wide hotels RevPAR, or revenue per available room, increased 3 percent year over year, with a net rooms growth of 4.3 percent during the quarter.
Hyatt’s pipeline is still breaking records each quarter, with around 690 hotels in its pipeline of executed management or franchise contracts. During the quarter, the company began its partnership with Under Canvas and opened sixteen new hotels, including the Alila Shanghai and the Park Hyatt Marrakech. It also confirmed its interest in purchasing Standard International.
Events like the Democratic and Republican National Conventions in the United States gave the company boosts in revenue, but smaller business travel and groups also continued to grow this year, comprising much of Hyatt’s revenue in the United States especially, where international and outbound leisure travel continues to reign supreme. RevPAR increased 15 percent in Europe during the quarter, spurred largely in part due to the 2024 Summer Olympics in Paris.
Full Year Expectations Remain High
Hyatt expects the 2024 fiscal year to end on a high, with a system-wide hotels RevPAR growth of 3-4 percent compared to last year, and a net income range between $1.4 billion and $1.45 billion. Shareholders are expected to take home a full-year capital return of $1.25 billion.
"We reported solid third quarter results, with gross fee revenues reaching $268 million,” said Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt. “Our pipeline reached a new record of approximately 135,000 rooms, increasing 10% year-over-year, and World of Hyatt membership expanded to a record of 51 million members, growing a remarkable 22% year-over-year.”
“Our operating results and capital allocation strategy, including the completion of our 2021 asset-disposition commitment, acquisition of Standard International, and planned joint venture transaction to manage Bahia Principe branded hotels and resorts, demonstrate the strength of our asset-light earnings model leading to the return of over $1.2 billion to shareholders through share repurchases and dividends so far this year,” he concluded.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
