Hyatt CEO Mark Hoplamazian reported "another record-breaking quarter" during the company's Q4 earnings call Thursday, bolstered in part by an "exceptional" performance by Apple Leisure Group resorts.
The Apple Leisure Group portfolio includes the four- and five-star Secrets, Dreams, Breathless, Zoetry, Alua and Sunscape all-inclusive brands. Fourth-quarter net package RevPAR in the Americas increased 24.4% from 2019 levels for the Apple Leisure Group brands, while total net package revenue worldwide rose 65.4%. (Hyatt defines net package RevPAR as including revenue derived from the sale of package revenue comprised of rooms revenue, food and beverage and entertainment.)
Hoplamazian said that the company's legacy business also performed "exceptionally well," as group revenue fully recovered to 2019 levels.
"Conversations with corporate customers continue to suggest further recovery is ahead for group and business transient travel, and leisure transient shows no signs of slowing as evidenced by the strong bookings at our resorts," he said.
Still, Hoplamazian said that despite a solid booking pace in 2023 thus far, the forecast for the latter part of the year is murky, as booking windows remain "relatively short."
"Embedded in the backdrop to all of this is a slowing in the second half with respect to relative macroeconomic conditions," said Hoplamazian, adding that Hyatt expects to have "dramatically better visibility" into the remainder of the year after the first quarter.
For the fourth quarter, systemwide RevPAR increased 34.8%, to $126.33, from the prior year, while systemwide occupancy rose 8.2 percentage points, to 63.5%. Average daily rate was up 17.5%, to $198.88.
The company reported Q4 revenue of $1.59 billion, a 47.6% increase. Hyatt posted net income of $294 million, reversing a $29 million net loss in the fourth quarter of 2021.