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Hyatt Hotels Corp., the chain controlled by the Pritzker family, said second-quarter profit jumped as travel demand climbed at its U.S. properties.
Net income climbed to $112 million, or 70 cents a share, from $39 million, or 24 cents, a year earlier, the Chicago-based company said today in a statement.
Hyatt is benefiting from increased demand by individual business travelers and vacationers, especially in North America, which accounts for two-thirds of the company’s operating income, according to Nikhil Bhalla, an analyst at FBR & Co. in Arlington, Virginia.
“Strong demand in the U.S., particularly in cities like Chicago, which is their home market, helped them,” Bhalla said in a telephone interview before the report.
Adjusted earnings, which exclude items such as gains on the sale of real estate, were $70 million, or 43 cents a share. The average estimate of 23 analysts was 30 cents a share, according to data compiled by Bloomberg.
Revenue rose to $1.09 billion from $1.01 billion from a year earlier. Second-quarter revenue per available room, an industry measure of occupancy and rates, increased 7.1 percent.
Marriott International Inc., the largest publicly traded U.S. hotel chain, is scheduled to report earnings after markets close today. Starwood Hotels & Resorts Worldwide Inc., owner of the luxury St. Regis and W brands, last week said second-quarter earnings climbed 12 percent from a year earlier, helped by cost cuts and sales of vacation units at the company’s South Florida resort.
–Editors: Christine Maurus, Kara Wetzel, Jeff St.Onge
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