Hyatt Hotels welcomes surprise profit increase in third quarter results

Natasha Clark
Follow Natasha
The Chicago-based hotel operator reported adjusted earnings of 47 cents per share, topping expectations (Source: Getty)

Hyatt Hotels today welcomed warm third quarter results showing a sharp boost in earnings to $62m (£49.7m).

The group reported a surprise profit increase on higher revenue from its hotels, as well as increased management and franchise fees.

The results

The Chicago-based company said its net income had increased 148 per cent to $63m from last year. It also reported growth in hotels and revenue per room was up 2.5 per cent over the past year.

The company expects its full-year results to be slightly down, however, from $260m to $250m.

Total fee revenue increased 6.8 per cent, while revenue from owned and leased hotels was up 3.8 per cent from the same quarter last year.

Why it's interesting

Despite the boom in the shared economy market which has been fuelling Airbnb bookings, revenue per room is up for Hyatt.

The results also show strength in the Americas, and the company is on course to open 60 hotels this year.

At the time of writing on Thursday afternoon, Hyatt Hotels were up 3.49 per cent on the New York Stock Exchange.

What the company said

Mark Hoplamazian, president and chief executive of Hyatt, said:

"Looking ahead, we believe we are well positioned to deliver against our growth strategy, by serving the needs of high-end travellers. Additionally, given our executed contract base of approximately 61,000 rooms, or more than 35 per cent of our current room base, we believe our portfolio of high-quality brands is poised for meaningful and sustainable growth.

"Last week, we announced an exciting new loyalty program, World of Hyatt, which we expect will drive even higher levels of guest preference once it officially launches in March of next year. With the positive momentum we see in our business, we expect another year of solid growth in 2017."

Related articles