MUMBAI, August 4, 2014 /PRNewswire/ --
Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) recently reported second quarter 2014 financial results.
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Announcing the Company's earnings, CEO Mark Hoplamazian said, "In the second quarter, we reported constant currency systemwide RevPAR growth of 6.1% driven by continued robust transient demand and rate growth. Comparable owned and leased hotels RevPAR increased 4.0% and comparable owned and leased hotels operating margins decreased 20 basis points partially due to a difficult comparison to a strong second quarter in 2013 as well as adverse market conditions at two hotels outside the Americas. On a year-to-date basis, we saw strong performance at owned and leased hotels with comparable RevPAR up 5.1% and comparable operating margins up 60 basis points."
"We opened 10 hotels in the quarter including iconic hotels, such as Andaz Tokyo Toranomon Hills and Park Hyatt Vienna. We opened six Hyatt Place hotels in important new locations including our first Hyatt Place hotels in China and Dubai. We are on track to open approximately 40 hotels this year, reflecting continued owner preference for our brands," he added. "We continue to be active asset recyclers. By year-end 2014, we expect to close on the sale of Hyatt Residential Group for $190 million. In addition, we are currently marketing for sale eight full service hotels and more than 40 select service hotels. We expect to maintain our brand presence on each hotel upon sale."
Europe, Middle East & Africa and Southwest Asia (EMEA/SW Asia) Management Segment
Adjusted EBITDA decreased 50.0% in the second quarter of 2014 compared to the same period in 2013.
RevPAR for comparable EAME/SW Asia hotels increased 3.8% (3.9% excluding the effect of currency) in the second quarter of 2014 compared to the same period in 2013. Occupancy increased 70 basis points and ADR increased 2.8% (2.9% excluding the effect of currency) compared to the same period in 2013.
Revenue from management and other fees decreased 32.1% in the second quarter of 2014 compared to the same period in 2013. This is primarily because no incentive management fees were earned at four managed hotels in France in the second quarter of 2014 as compared to $10 million of incentive management fees booked from these hotels in the second quarter of 2013.
The following two hotels were added to the portfolio during the second quarter:
To read the full earnings release, please visit Hyatt's Investor Relations website.
Primary Media Contact: Yasmin D. Poonegar, [email protected], +97147031211, Hyatt Hotels & Resorts, Southwest Asia
Secondary Media Contact: Faiza Kapoor, [email protected], +91-9833313416, IPAN Hill+Knowlton Strategies
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