In conjunction with the start of the NYU International Hospitality Industry Investment Conference, Hyatt Hotels Corporation has released an update on operating results for May, summer travel booking trends and confirmation of the closing of previously announced asset dispositions.
“We are delighted that we closed on the last of four previously announced owned hotel dispositions. In total, these four dispositions generated $812 million in gross proceeds and demonstrate meaningful and expeditious progress towards our current $2 billion asset disposition commitment,” said Mark S. Hoplamazian, president and CEO of Hyatt. “Additionally, our operational metrics in May serve as further evidence of continued recovery with comparable system-wide RevPAR improving from April, and system-wide RevPAR outside of Asia Pacific actualizing 3 percent above 2019 levels for the second consecutive month. As we look forward, we anticipate a busy summer travel season ahead.”
Comparable system-wide RevPAR in May was approximately $127, representing the strongest RevPAR performance in any individual month since November of 2019. System-wide RevPAR in May was around 6 percent below May 2019 or approximately 3 percent above May 2019 when excluding Asia-Pacific. Comparable system-wide RevPAR in May improved 2 percent as compared to April driven by improved occupancy, primarily in urban markets. The average daily rate in May was around 8 percent above May 2019 led by luxury brands in the Americas, which exceeded 2019 by around 24 percent.
Leisure transient revenue remained at record levels, up 18 percent this May compared to the same month in 2019, bolstered by a strong performance over Memorial Day weekend where RevPAR in the Americas was approximately 24 percent above Memorial Day weekend of 2019. Business transient and group revenue also continued to strengthen in May, growing by 23 percent and 11 percent, respectively, from April. In May, business transient revenue was 35 percent below May of 2019 and group revenue was 12 percent below May of 2019.
The strength of Memorial Day weekend and favorable forward booking trends indicate a robust summer travel season ahead. System-wide comparable transient revenue on the books for the months of June through August is pacing 5 percent ahead of the same time in 2019 or 15 percent ahead when excluding Asia-Pacific. Additionally, short-term demand for group business continues to trend substantially ahead of 2019 levels. Gross group room revenue booked in May for stay dates in 2022 for comparable Americas full service managed properties was 46 percent above May 2019. Group pace for the remainder of the year, from June through December, has improved from April and is approximately 9 percent below 2019 levels.
Hyatt’s all-inclusive portfolio also continues to experience strong results. Based on preliminary results, net package RevPAR in May for Apple Leisure Group (ALG) resorts in the Americas is estimated to be around 17-20 percent higher in comparison with the same properties managed by ALG in May 2019. Additionally, gross package revenue for ALG resorts in the Americas is pacing more than 30 percent above 2019 levels over the months of June through August for the same set of properties.
The company has closed on all four previously announced asset dispositions resulting in gross proceeds of $812 million, or above 40 percent of its current $2 billion disposition target, reflecting an aggregate multiple of 15.7x 2019 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and entered into a long-term management agreement for each of the properties upon sale. The previously announced dispositions include Hyatt Regency Indian Wells Resort & Spa, Grand Hyatt San Antonio River Walk, The Driskill in Austin, Texas and The Confidante Miami Beach. Additionally, the company is marketing two additional owned hotels for sale.
For more information, visit www.hyatt.com.
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