Hyatt Hotels Corporation has released a report on its third quarter 2021 results, showing once again that the world’s largest hotel companies are leading the hotel industry recovery.
Compared to a net income loss of $ 161 million in the third quarter of last year, Hyatt made a profit with net income of $ 120 million this quarter, which ended September 30, 2021.
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Another key indicator of the success of a hotel or hospitality company is RevPAR, or revenue per available room. While there is no direct correlation with hotel occupancy rates, they are somewhat related in that as one grows the other usually grows as well.
RevPAR increased 29% in Q3 due to leisure travel and business travel growth in some regions, with business travel demand increasing over 40% from Q2 .
EBITDA, or earnings before interest, taxes, depreciation or amortization, is divided into Hyatt’s regional management and franchising segments: the Americas region; the Southeast Asia, Greater China, Australia, New Zealand, South Korea, Japan and Micronesia (ASPAC) region; and the Europe, Africa, Middle East and South East Asia (EAME / South West Asia) region.
The Americas segment adjusted EBITDA increased from $ 16 million last year to $ 74 million this third quarter. ASPAC reported a decline in Adjusted EBITDA, from $ 9 million in the same period last year to $ 6 million this year, due to travel restrictions in these various Asian countries.
Adjusted EBITDA of the EAME / SW Asia management and franchising segment increased to $ 5 million this year, from $ 2 million last year, due to the relaxation of travel restrictions.
This third quarter increased the number of Hyatt hotels, adding twenty new properties totaling 4,599 rooms. The company also recently completed the acquisition of Apple Leisure Group and hundreds of properties currently in development.
As of September 30, 99% of all Hyatt properties worldwide were open. Hyatt Hotel Corporation reported total debt of $ 2.98 billion.
Mark S. Hoplamazian, President and CEO of Hyatt Hotels Corporation, said, “This quarter again delivered results that exceeded expectations and demonstrated the resilience of our business. Adjusted EBITDA for the third quarter approached 70% of 2019 levels and more than doubled from the previous quarter. The demand for leisure continues to lead the recovery and the momentum for business and group travel is growing. The recovery is evident in more markets as travel restrictions ease and borders reopen. “
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