Hyatt released its second quarter earnings and the results confirm my sentiment expressed to Hyatt’s Chief Marketing Officer John Wallis a couple weeks ago in Las Vegas.
Hyatt Hotels are getting expensive.
Hyatt Hotels made a net profit of $70 million last quarter. Occupancy increased to 79.8%. Average daily rates were up 6.3% over one year ago. Hyatt stock has risen 11% this year. Hyatt 2103 Q2 Financials press release.
Hyatt is growing.
The following seven hotels were added to the portfolio during the second quarter:
- Hyatt Regency Birmingham – The Wynfrey Hotel (franchised, 329 rooms)
- Hyatt Union Square (franchised, 178 rooms)
- Hyatt Place Chicago/River North (franchised, 212 rooms)
- Hyatt Place Pensacola Airport (franchised, 127 rooms)
- Hyatt House Atlanta/Cobb Galleria (franchised, 149 rooms)
- Hyatt House Minot (franchised, 130 rooms)
- Hyatt House Pittsburgh-Southside (franchised, 136 rooms)
- Grand Hyatt Cannes Hôtel Martinez, France (managed, 409 rooms)
- Hyatt Regency Nice Palais de la Méditerranée, France (managed, 187 rooms)
- Hyatt Regency Paris Etoile, France (managed, 950 rooms)
- Hôtel du Louvre – Paris, a Hyatt Hotel, France (managed, 177 rooms)
- Hyatt Regency Gurgaon, India (managed, 451 rooms)
- Hyatt Bangalore, India (managed, 143 rooms)
- Hyatt Hyderabad, India (managed, 166 rooms)
- Hyatt Pune, India (managed, 209 rooms)
The following eight hotels were added to the portfolio during the second quarter in the EMEA and Southwest Asia segment:
Hyatt Times Square New York is now taking reservations for stays from January 1, 2014 in its 54-story hotel with a rooftop lounge. The hotel has only 11 rooms per floor with 487 guest rooms averaging 364 square feet. I assume that average includes the suites making the entry-level rate rooms a bit smaller. A generic average hotel room size in the USA is about 325 square feet across hotel chains.
Hyatt Buys into All-Inclusive Playa Beach Resorts
Hyatt Hotels are gaining all-inclusive beach resorts in Mexico and Caribbean with an ownership stake in Playa Hotels & Resorts. Hyatt is investing $325 million into Playa and plans to rebrand six of 13 Playa resorts to Hyatt brands. Hyatt plans to rebrand the first two properties in Mexico by year-end 2013 and convert four other hotels in Jamaica, Dominican Republic and Mexico in 2014 and 2015 after resort renovations.
Hyatt’s rapid growth
The main impediment for Hyatt in attracting loyal guests is the lack of footprint around the world. There are still only about 500 hotels globally under the Hyatt umbrella, yet Hyatt is using its financial resources to rapidly expand its hotel portfolio for loyalty guests through partnerships and acquisitions.
Hyatt acquired 24 hotels in July 2011 with the purchase of hotel assets from Lodgeworks. Most of these hotels were extended stay Sierra Hotels rebranded with Hyatt Summerfield Suites to HYATT house brand. The upper-upscale Avia properties in places like Napa and Long Beach, California were rebranded to full service Hyatt Hotels and Andaz.
The partnership with MGM Resorts M life has added 12 hotels in Las Vegas for Hyatt Gold Passport members as of June 20, 2013. This is a huge development for the Las Vegas traveler where Hyatt only had one Hyatt Place property in the city. That partnership is planned to expand to other MGM Resorts properties in the future.
And now all-inclusive beach resorts will become a vacation option for Hyatt Gold Passport members visiting Mexico and the Caribbean.
Hyatt is expanding quickly.
And Hyatt brand hotel room rates are on the rise.
Ric Garrido, writer and owner of Loyalty Traveler, shares news and views on hotels, hotel loyalty programs and vacation destinations for frequent guests.