Mark Hoplamazian , president and CEO , Hyatt Hotels Corp .
market bookings for business travel over the next two months look very strong , led by corporate negotiated accounts ,” Hoplamazian said .
The auspicious numbers helped Hyatt achieve global RevPAR growth of 4.7 % compared to the same period in 2023 .
Net rooms growth was approximately 4.6 % in the quarter , about a third of which came via conversions . “ We believe that we will end the year at closer to 50 % of the total net rooms growth being conversions ,” Hoplamazian said .
The pipeline of executed management or franchise contracts was approximately 130,000 rooms , a 9 % YOY increase . Net income in the quarter was $ 359 million .
Leisure transient decreased approximately 2 % in the quarter , but was up 2 %, Hoplamazian noted , when excluding the impact of Easter , significant renovations at several U . S . resorts and Hyatt ’ s Maui
Hyatt opened both the Park Hyatt Changsha ( shown here ) and Caption by Hyatt Namba Osaka ( opposite page ) in Q2 .
hotels , which were negatively impacted by the wildfires in Q3 of last year .
Like its competitors , Hyatt saw decelerating performance in the lower-end tiers , which was countered by vigor at its higher-end properties . “ While there are signs of slowing demand in the lower chain skills , we saw strength among the high-end consumer ,” Hoplamazian said .
Hyatt ’ s luxury RevPAR increased 6.9 % driven by hotels in Europe and Asia Pacific . Notable openings in the quarter included Park Hyatt Changsha , which is the 10th Park Hyatt in Greater China , and the Hyatt Vivid Grand Island in Cancun , Hyatt ’ s first Vivid all-inclusive property . Hyatt also opened its first Caption by Hyatt properties outside the U . S . in Shanghai and Osaka .
World of Hyatt membership reached 48 million members at quarter end , a 21 % increase over the past year . Hoplamazian on the call highlighted Mr & Mrs Smith , a direct booking platform of boutique and luxury properties that Hyatt acquired in 2023 . “ Our most active World of Hyatt members have been very engaged with it ,” he said , accounting for more than 20 % of these bookings . By the end of this year , Hoplamazian said he expected to have more than 1,000 Mr & Mrs Smith properties available through World of Hyatt .
Strategic partnerships and M & A continue to be part of Hyatt ’ s playbook . It recently announced an exclusive alliance with Under Canvas , a provider of outdoor , upscale accommodations that World of Hyatt members will be able to earn and redeem points at . In 2022 , it announced a partnership with Germany ’ s Lindner Hotels and this year acquired the me and all hotels brand from it .
“ Our focus on expanding our network effect as we grow allows us to offer more options to our members , increasing their loyalty to Hyatt and making Hyatt more attractive to prospective developers ,” Hoplamazian said .
Hyatt also met and exceeded its asset divestment goal of $ 2 billion . It completed the sales of Park Hyatt Zurich , Hyatt Regency San Antonio and Hyatt Regency Green Bay in the quarter , accounting for $ 1.5 billion in gross proceeds . In mid- August , it closed the sale of the 1,641-room Hyatt Regency Orlando to affiliates of RIDA Development Corporation and an Ares Management Real Estate fund for approximately $ 1.07 billion .
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