Hyatt FY net income hits $220m

Hyatt has revealed its full-year net income reached $220m (£173m), exceeding its outlook for 2023.

The performance comes as it posted record levels of management, franchise, license, and other fees of $256m (£201m) were generated in the fourth quarter of 2023 driven by continued strong global demand for travel and net rooms growth.

It also posted Adjusted EBITDA of $241m (£189m) in the fourth quarter and $1.02bn (£803m) for the full year of 2023, also exceeding its previous full year outlook range for 2023.

Hyatt revealed that comparable system-wide RevPAR increased 9.1% in the fourth quarter and increased 17.0% for the full year of 2023, compared with the same periods in 2022, driven by the “rapid recovery “in Greater China and strengthening group demand in the United States. Group booking pace for Americas full service managed properties is currently up 8% for full year 2024 compared to 2023.

Meanwhile, Comparable Net Package RevPAR for ALG properties increased 9.2% in the fourth quarter and 13.6% for the full year of 2023, compared to the same periods in 2022. The fourth quarter benefited from improved results in Cancun, with Comparable Net Package RevPAR up approximately 10% compared to the same period in 2022.

In the first quarter of 2024, booking pace for ALG all-inclusive properties in the Americas is up 11% for the first quarter of 2024.

Mark S. Hoplamazian, president and CEO of Hyatt, said: “The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution. RevPAR growth exceeded the high end of our guidance range and we had industry leading net rooms growth for the seventh consecutive year. This led to a record level of fees and the highest free cash flow in Hyatt’s history. We returned $500 million to our shareholders and achieved an asset-light earnings mix of approximately 76% for the full year, a testament to the successful execution of our strategy.”