Q2 REVIEW |
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the large , global players , bringing as many new hotels into their systems is best achieved at scale , not piecemeal . Hoplamazian said that generational shifts , from Mexico to Europe , are opening up opportunities toward multiproperty conversions . “ They want to hold the real estate and sign up management ,” he said . “ The incidence of that has increased .”
Business segment-wise , leisure transient revenue increased by 26 % in the second
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WE ' RE GETTING PAID A LOT TO WAIT
– MARK HOPLAMAZIAN ,
PRESIDENT AND CEO OF
HYATT HOTELS CORP ., ON NOT
AGGRESSIVELY MARKETING
OWNED ASSETS .
quarter , a 200-basis-point improvement from the growth that it realized in the first quarter of this year compared to the first quarter of 2019 and “ a clear sign that leisure guests continue to prioritize travel ,” Hoplamazian said .
Business transient revenue was up 36 % compared to the second quarter of 2022 and 86 % recovered to the second quarter of 2019 and led by large corporate accounts in the Americas . Group revenue in the quarter was up 14 % compared
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to the second quarter of 2022 and “ fully recovered compared to the second quarter of 2019 ,” Hoplamazian remarked .
For Hyatt ' s full-service , managed hotels in the Americas , group revenue was up 31 % in the first half of 2023 . “ We had an extremely strong quarter , booking nearly $ 500 million in group business for all future periods , an increase of 36 % to the second quarter of 2022 ,” Hoplamazian noted . This was the highest group production quarter since the first quarter of 2019 , he added . For 2024 , group pace is up 10 % with average rates and room nights each up approximately 5 %.
As comps in the U . S . begin to tighten , Hyatt , not unique to other global lodging companies , is turning more attention to overseas markets , namely Europe and Greater China . “ Markets traditionally dependent on international inbound travel into Greater China , like Shanghai and
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Shenzhen , were below second quarter 2019 levels , but it ' s shown meaningful improvement compared to the first quarter of this year ,” Hoplamazian said . “ Outside of Greater China , performance in Europe was outstanding , as RevPAR increased 23 % compared to the second quarter of 2022 and was up 30 % compared to the same period in 2019 .”
Some of Europe ' s performance success is being fueled by U . S . travelers gravitating there after restrictions lifted . Hoplamazian said they ' ve seen a 6 % increase in U . S . outbound travel to Europe , which has resulted in Hyatt ' s European hotels having a U . S . guest composition of 27 %, up 6 percentage points from last year . “ Europe has been leading both business transient and leisure for the last couple of quarters ,” he said , adding that there is also a higher incidence of Europeans staying in Europe for their vacations .
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Hyatt Studios is Hyatt ’ s new upper-midscale , extendedstay product . |
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24 hotelsmag . com September 2023 |