Hyatt Hotels‘ quarterly results were better than expected thanks to strong demand for leisure travel.
An adjusted loss of 33 cents-a-share in the first quarter was narrower than analysts’ estimates of 38 cents, according to FactSet data. Total revenue of $1.28 billion for the March quarter was higher than the $1.11 billion analysts predicted. A year earlier the hotel chain generated a $3.57 per share net loss.
Revenue per available room, a key hotel industry measure known as RevPAR, which is calculated by dividing room sales by the number of room nights available to guests for a given period, increased 107% year-over-year worldwide and 126% in the U.S. & Canada.
Hyatt’s (stock: H) stock went up 1.8% to $80.79 in premarket trading on Tuesday,
“Record levels of leisure demand fueled nearly 60% of our rooms revenue in the quarter,” said CEO Mark Hoplamazian, who also pointed to strong pace of bookings for business and group travel, which should strengthen the recovery ahead.
Last week, rival Marriott International (MAR) said it saw the largest surge in travel demand in the first quarter since the pandemic began. Before that, Hilton Worldwide Holdings (HLT) reported mixed earnings, but the hotel chain also noted an increase in tourism and it is forecasting a strong summer.
Hyatt made no quarterly dividend payments during the first quarter while Hilton authorized a quarterly cash dividend of 15 cents per share of common stock this month. Marriott’s board declared a 30 cents per share in quarterly cash dividend for the end of the second quarter, or June.
Write to Karishma Vanjani at [email protected]