Hyatt's Shares Surge after the Company Reports Q1 Profits Above Estimates
Hyatt Hotels (H) skyrocketed in early trade Thursday, following the company's first-quarter results that outperformed analysts' predictions. The Chicago-based hotel powerhouse reported adjusted earnings per share of $0.46 on revenue of $1.72 billion. By contrast, analysts anticipated a mere $0.30 and $1.69 billion, respectively.
Hyatt's revenue per available room (RevPAR) was $134.55, falling slightly short of the projected $135.58. RevPAR growth for comparable system-wide hotels clocked in at a strong 5.7%, beating the consensus of 3.5%.
Adjustments in Hyatt's Full-Year RevPAR Growth Forecast
Despite the solid Q1 performance, Hyatt revised its full-year comparable system-wide hotels RevPAR growth forecast to 1% to 3%, down from the initial 2% to 4%. CEO Mark Hoplamazian said the shift in booking behavior, particularly in shorter-term demand, prompted the tweaked outlook.
In spite of this revision, Hoplamazian stated they remain confident in their asset-light business model, their strong brand portfolio, and their adaptability to evolving market conditions. They are optimistic about the momentum in their pipeline and sustainable demand for their brands worldwide.
Last month, Goldman Sachs revised its perspective on U.S. hotels, forecasting RevPAR growth of 0.4% in 2025, as compared to the previous estimation of 1.4%. Their rating for Hyatt stock was amended to "sell."
Hyatt's shares, which had dipped close to 30% this year, soared over 5% after the opening bell following these results.
In case you're wondering, Hyatt did not disclose specific 2022 RevPAR figures in the search results, which mainly concentrated on the hotel chain's 2025 outlook, Q1 2025 performance, and tempered 2025 forecast. Nevertheless, here's some context for its current guidance and recent trends:
Hyatt’s 2025 RevPAR Guidance
- The revised full-year 2025 RevPAR growth projection for Hyatt now stands at 1-3%, lowered from its earlier 2-4% estimate[1][3]. This adjustment reflects changing demand patterns and shorter-term bookings.
- The Q1 2025 performance demonstrated a remarkable 5.7% YoY growth in comparable system-wide RevPAR, boosted by a robust 7.3% growth in group-focused hotels[4][5].
- Demand remains variable, with markets like Las Vegas boasting significant 44.6% weekly RevPAR increases in April (2025), while others such as Phoenix face double-digit declines due to challenging YoY comparisons[5].
- Mark Hoplamazian, CEO of Hyatt Hotels, adjusted the full-year comparable system-wide hotels RevPAR growth forecast to 1% to 3%, indicating a decrease from the initial 2% to 4%.
- Hoplamazian remains optimistic about Hyatt's asset-light business model, strong brand portfolio, and adaptability to evolving market conditions, citing confidence in the momentum in their pipeline and sustainable demand for their brands worldwide.
- Goldman Sachs recently revised its perspective on U.S. hotels, predicting RevPAR growth of 0.4% in 2025 compared to the previous estimation of 1.4%, and changed its rating for Hyatt stock to "sell."
- Despite revising its full-year 2025 RevPAR growth projection and decreased demand in certain markets like Phoenix, Hyatt's shares soared over 5% after the opening bell following its Q1 results.
- Hyatt did not disclose specific 2022 RevPAR figures in the search results, but the revised full-year 2025 RevPAR growth projection now stands at 1-3%, reflecting changing demand patterns and shorter-term bookings.
