Hyatt has reported a decline in its second quarter profits.
For the three months to 30 June 2015, the hotel group generated earnings before tax and other items (EBITDA) of US$210 million, down 9% compared to the same period last year. Hyatt attributed the downturn to “unfavourable currency impacts”. The company’s net profits fell 46% to US$40m.
But despite these declines, Hyatt’s president & CEO, Mark S. Hoplamazian, said the company’s “underlying business continues to perform well”.
“We made good progress in the second quarter against our long-term strategy of generating systemwide growth, with a focus on quality throughout our locations and returning capital to shareholders,” he added.
Hyatt’s revenue per available room (revPAR) increased 2.2% in the second quarter of 2015, and would have risen 5.6% without the impact of currency fluctuations. Management and franchise fee revenues increased 8.7% to US$112m, while other fee revenues increased 10.0% to US$11m.
A total of 19 new hotels were added to the Hyatt portfolio in Q2 2015, including 15 in the US and others in India, Saudi Arabia, Armenia and Morocco. And the company said it is “on pace” to open approximately 50 new hotels in 2015.
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