Hyatt Feels Pinch From Lower Group Business in Its Hometown of Chicago
Photo Credit: The exterior of the Hyatt Place in downtown Chicago. RevPAR in the U.S. dropped 0.3 percent in the second quarter. Hyatt
Skift Take
Hyatt’s second-quarter performance was another step in the right direction for the brand. But were it not for a slowdown in its U.S. and Chinese markets, it would have been better.
Hyatt’s second-quarter earnings performance had its share of ups and downs.
The company reported total revenue-per-available-room (RevPAR) growth of 1.3 percent, along with revenue of $1.2 billion. Profits also jumped 10 percent to $86 million.
Yet a slowdown in the chain’s U.S. group business and select-service hotel segment undermined results, Hyatt said on its earnings call Wednesday.
U.S. RevPAR dropped 0.3 percent year-over-year led by a 2.4 decline in select-service chain demand, Hyatt Chief Financial Officer Joan Bottarini told analysts.
CEO Mark Hoplamazian also said group revenues, encompassing both corporate and leisure business, plummeted 15 percent
