Hyatt Hotels Corporation has reported net income of $237m (£185.5m) in the third quarter of 2018, compared with $18m (£14m) in the same period the previous year.
Adjusted net income attributable to Hyatt was found to be $37m (£28.9m), compared with $29 (£22m) in 2017. The increase in net income was attributed to the “gains on sales of real estate”.
However adjusted EBITDA decreased by 0.9% to $175m (£136.9m). Hyatt also reported that Comparable system-wide RevPAR increased by 2.8%, including an increase of 5.3% at comparable owned and leased hotels.
In the EAME/SW Asia region management and franchising segment Adjusted EBITDA increased 16% and RevPAR for full service hotels increased 11%, driven primarily by strong growth in Russia, Western Europe, and Turkey.
Mark Hoplamazian, president and CEO of Hyatt Hotels Corporation, said: “We reported another quarter of solid growth, led by a 9% increase in management and franchise fees and 5% RevPAR growth at our owned and leased hotels, both on a constant-currency basis. Our outlook for the remainder of 2018 remains positive, including comparable system-wide RevPAR growth of 3.5% at the mid-point of our full-year guidance range.”
He added: “We are continuing to execute our long-term growth strategy while returning meaningful capital to shareholders, enabled in part by our sell-down of real estate. Earlier this month, we announced plans to acquire Two Roads Hospitality, a high-end lifestyle hotel management company which we expect will expand the growth of our management and franchising business.
“We also increased our shareholder capital return expectations for 2018 to approximately $1.0 billion inclusive of share repurchases and dividends, and have a new $750 million share repurchase authorization.”
The group added that 12 hotels (2,608 rooms) were opened in the third quarter of 2018. The company’s net rooms increased 7.6%, compared to the third quarter of 2017. Hyatt added it is on pace to open approximately 60 hotels in the 2018 fiscal year.