System-wide RevPAR Accelerates in May; Future Bookings Continue to Strengthen
CHICAGO (June 6, 2022) – In conjunction with the start of the NYU International Hospitality Industry Investment Conference, Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) is pleased to share an update on operating results for May, summer travel booking trends, and confirmation of the closing of previously announced asset dispositions.
“We are delighted that we closed on the last of four previously announced owned hotel dispositions. In total, these four dispositions generated $812 million in gross proceeds and demonstrate meaningful and expeditious progress towards our current $2 billion asset disposition commitment,” said Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation. “Additionally, our operational metrics in May serve as further evidence of continued recovery with comparable system-wide RevPAR improving from April, and system-wide RevPAR outside of Asia Pacific actualizing 3% above 2019 levels for the second consecutive month. As we look forward, we anticipate a busy summer travel season ahead.”
OPERATIONAL UPDATE
Comparable system-wide RevPAR in May was approximately $127, representing the strongest RevPAR performance in any individual month since November of 2019. System-wide RevPAR in May was approximately 6% below May of 2019(1) or approximately 3% above May of 2019 when excluding Asia Pacific. Comparable system-wide RevPAR in May improved 2% as compared to April driven by improved occupancy, primarily in urban markets. The average daily rate in May was approximately 8% above May of 2019 led by luxury brands in the Americas, which exceeded 2019 by approximately 24%.
Leisure transient revenue remained at record levels, up 18% in May compared to May of 2019, bolstered by a strong performance over Memorial Day weekend where RevPAR in the Americas was approximately 24% above Memorial Day weekend of 2019. Business transient and group revenue also continued to strengthen in May, growing by 23% and 11%, respectively, from April. In May, business transient revenue was 35% below May of 2019 and group revenue was 12% below May of 2019.
The strength of Memorial Day weekend and favorable forward booking trends indicate a robust summer travel season ahead. System-wide comparable transient revenue on the books for the months of June through August is pacing 5% ahead of the same time in 2019 or 15% ahead when excluding Asia Pacific. Additionally, short-term demand for group business continues to trend significantly ahead of 2019 levels. Gross group room revenue booked in May for stay dates in 2022 for comparable Americas full service managed properties was 46% above May of 2019 and group pace for the remainder of the year, from June through December, has improved from April and is approximately 9% below 2019 levels.
Our all-inclusive portfolio also continues to experience strong results. Based on preliminary results, net package RevPAR in May, for Apple Leisure Group (“ALG”) resorts in the Americas, is expected to be approximately 17% to 20% higher in comparison with the same properties managed by ALG in May of 2019. Additionally, gross package revenue for ALG resorts in the Americas is pacing more than 30% above 2019 levels over the months of June through August for the same set of properties.
TRANSACTION / CAPITAL STRATEGY
The Company has closed on all four previously announced asset dispositions resulting in gross proceeds of $812 million, or over 40% of its current $2.0 billion disposition target, reflecting an aggregate multiple of 15.7x 2019 EBITDA, and entered into a long-term management agreement for each of the properties upon sale. The previously announced dispositions include Hyatt Regency Indian Wells Resort & Spa, Grand Hyatt San Antonio River Walk, The Driskill in Austin, Texas and The Confidante Miami Beach. Additionally, the Company is currently marketing two additional owned hotels for sale.
