Hotels

Hyatt swings to £123m loss in Q3

Hyatt Hotels Corporation has reported that net loss attributable to the group was $161m (£123m) in the third quarter of 2020, down by 154.2% against the $296m (£227m) net income reported the prior year. 

In the same period, adjusted EBITDA crashed by 129.9% to a loss of $48m (£37m), while comparable system-wide RevPAR tumbled 72% amid the pandemic.

Nonetheless, RevPAR did see some recovery across all of Hyatt’s regions in the third quarter, with comparable system-wide RevPAR more than doubling sequentially off the low in the second quarter of 2020. 

The pace of recovery varied by region, but was led by occupancy gains in Greater China and the United States.

In addition, Hyatt has continued to reopen hotels where operations had been suspended, and as of September 30, 2020, 92% of total system-wide hotels were open compared to 80% of total system-wide hotels at June 30, 2020.

Looking ahead, preliminary October 2020 RevPAR estimates reflect a “modest sequential improvement” compared to the third quarter, and a decrease of approximately 70% compared to October of 2019. According to Hyatt, these estimates were driven primarily by leisure transient demand. 

The group also reported a net room growth of 6%, whilst reporting a pipeline of executed management or franchise contracts for approximately 101,000 new rooms, an increase of 9.8% compared to the third quarter of 2019. 

Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said: “In the third quarter, we doubled the number of room nights sold compared to the second quarter of 2020. 

“I am also very encouraged that we opened 27 new hotels representing over 4,300 new rooms, a record number of hotel openings for any third quarter in our history, while sustaining our pipeline for future growth during this disrupted time.”

He added: “We expect demand to remain uneven over the coming months and believe the ingenuity and resilience of our teams will enable us to continue to win share and deepen our strong relationships with our loyal guests and customers.

“Furthermore, we believe our strong liquidity position will help to sustain our operations over time and support our long-term growth strategy. During this time, our unwavering commitment to living our purpose to care for our colleagues, guests, owners, and communities around the globe is of paramount importance.”

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