Hyatt achieved a strong rise in profits in the first quarter of the year.
The hotel group generated pre-tax earnings of US$172 million in Q1 2014, 31.3% higher than the US$131m it generated in the same period last year. Net profits surged from US$8m to US$56m.
“In the first quarter, Hyatt’s adjusted EBITDA grew more than 30%, driven by continued robust demand and healthy rate growth among both transient and group guests as well as strong performance from recent acquisitions and openings. These results demonstrate the power of our differentiated business model and multiple earnings tools,” said Mark S. Hoplamazian, Hyatt’s president & CEO.
The group’s revenue per available room (revPAR) increased 7.7% in Q1 2014, but there were some marked differences in terms of regional performance. Hotels in the Americas achieved an 8.6% jump in revPAR, while the growth rate in Asia Pacific was 7.3%. In Europe, Africa and the Middle East however, the revPAR growth rate was just 5.3%.
Hyatt added eight new hotels to its portfolio in the first quarter of 2014, including four Hyatt Place properties in the US, Hyatt Place Amsterdam Airport, Hyatt Regency Chongming in China, and the Hyatt Raipur and Hyatt Regency Ludhiana in India. But the company also removed 10 hotels from its US portfolio in Q1 2014.
Hyatt expects to open approximately 40 hotels in 2014.
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