Hyatt Hotels Corp.'s first-quarter profit was unchanged from a year earlier, as higher depreciation and administrative costs offset the effect of a jump in sales from its North American hotels.
Revenue per available room (RevPAR) at Hyatt’s owned and leased hotels rose 8.7% from a year earlier, the company said Thursday.
RevPAR at managed and franchised full-service hotels (Hyatt, Grand Hyatt, Park Hyatt, Hyatt Regency and Andaz) in North America advanced 8.1%, with room rates and occupancy both increasing.
RevPAR at select-service brands (Hyatt Place and Hyatt House) rose 7.2%.
At hotels outside North America, RevPAR rose 6.5%, excluding currency effects.
Companywide, Hyatt's revenue rose 9.5%, to $958 million. Still, net income was $10 million, equal to a year earlier.
A 21% increase in depreciation costs and a 33% surge in selling, general and administrative expenses offset the effect of the higher revenue.
Shares were down about 5% early Thursday Thursday after the company missed earnings and sales estimates. Analysts polled in a Thomson Reuters survey estimated that Hyatt would earn 9 cents a share on $964.8 million in revenue.
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