Hyatt yesterday released its second-quarter numbers after the market was closed, and, as expected in this environment, they weren’t pretty.
The overall revenue was down 89% (April, May & June), and the chain still has 120+ hotels closed (most of those full service & higher number of rooms than Hyatt’s average) as of July 31.
You can access Hyatt here.
READ MORE: World of Hyatt Rae & Bonus Points Offers
Here are a couple of pages that I found interesting:
When you compare RevPAR (Revenue Per Available Room), Occupancy, and ADR (Average Daily Rates), you can conclude that the select-service hotels, which Hyatt calls Composite Upscale (I guess that it sounds better) have performed better.
And when we usually complain that luxury hotels don’t discount, they do. The luxury segment ADR was down 42% compared to 31% at the select service.
Hyatt properties by brand:
You can see that at least five Destination resorts have exited and to Alila’s. This is not uncommon when a new owner takes over, and franchisees are not necessarily too happy about it.
Almost exactly half of Hyatt’s hotels are select-service Hyatt Place’s and Hyatt House’s.
Here’s the operation update from Hyatt:
The recovery in RevPAR has been mixed, as various parts of the world remain subject to travel restrictions and quarantines which continue to suppress demand and drive uncertainty surrounding the pace and timing of recovery across individual markets. Comparable system-wide RevPAR improved sequentially in each month after the low point in April.
Greater China, where the impacts of the COVID-19 pandemic were first reported, continues to lead the recovery. RevPAR in Greater China has shown continued improvement since May, with preliminary estimates indicating occupancy reaching approximately 57% at the end of July. Excluding Hong Kong, Macau, and Taiwan, preliminary estimates indicate occupancy in China reached approximately 65% at the end of July.
The recovery in Greater China and certain markets within the Americas and EAME/SW Asia regions is being led by strength in leisure transient demand.
Hyatt continues to re-open hotels where operations had been suspended. As of July 31, 2020, approximately 87% of total system-wide hotels were open compared to approximately 65% of total system-wide hotels as of April 30, 2020. Approximately 75% of full service hotels and 96% of select service hotels in the Americas, 70% of hotels in the EAME/SW Asia region, and 92% of hotels in the ASPAC region were open. All but one of our full and select service hotels in Greater China were open. Approximately 69% of owned and leased hotels were open.
For the month of July 2020, preliminary estimates indicate RevPAR decreased approximately 76% for all comparable system-wide hotels compared to July of 2019 reflecting the ongoing impact of the pandemic. RevPAR statistics for Hyatt’s comparable system-wide hotels that were open during the period can be found on the Company’s website as ‘Supplemental Data – Comparable Open Hotel RevPAR’ at investors.hyatt.com under the quarterly earnings section. This supplemental information includes the number of open comparable system-wide hotels and open comparable hotel RevPAR statistics by month, and the second quarter ended June 30, 2020.
Here’s the full release:
Hyatt owned and leased hotels:
This was likely the worst quarter for all the hotel companies the April being the absolute bottom month of all. The rest depends on when we can turn the corner with this on-going pandemic.
Accor, Hilton, IHG, and Marriott will soon release their numbers. We don’t usually pay too much attention to the financials of these companies, but in this environment, they do matter.
Hyatt has ample liquidity available to get through this challenging environment. It is an entirely different question of what happens with all the outside investors and REITs that own most of the hotels. There will be plenty of foreclosures, hotel closings, and reflags in the next 12 to 18 months.
Continue Reading: Source Link