Hyatt Hotels Corp. has experienced a significant increase in business travel demand in 2024, according to the company’s president and CEO Mark Hoplamazian. The first-quarter revenue from the business travel sector was up 6% year over year, with some segments showing even higher growth. This positive trend is a clear indication that business travel is on the path to recovery. Hoplamazian highlighted that revenue from business-travel stays globally increased by approximately 6% in the quarter, with strong performance in both January and February.
Hoplamazian shared some encouraging statistics during the earnings call, emphasizing the strength of the business travel segment. He mentioned that business transient hotels saw a significant increase of almost 16% in the first quarter, while convention hotels were up by about 11%. Specific locations like New York City, San Jose, and Seattle showed impressive growth, with technology transient and business transient up by 30% in the first quarter.
Hyatt’s systemwide first-quarter revenue per available room experienced a 5.5% increase, reaching $131.86. The average daily rate also saw a 2% increase to $202.33, and occupancy increased by 2.2 percentage points to 65.2%. In the U.S., revenue per available room went up by 0.2% to $132.68. However, the average daily rate dropped by 0.4% to $205.41, even though occupancy increased by 0.4 percentage points to 64.4%.
Despite the positive performance in the first quarter, Hyatt maintained its outlook for a 3% to 5% year-over-year increase in full-year 2024 revenue per available room. The company’s revenue for the quarter increased to $1.71 billion from $1.68 billion the previous year. Net income also experienced a significant boost, increasing to $522 million from $58 million in Q1 2023.
Hyatt Hotels Corp. has shown remarkable growth in business travel demand in 2024, with strong performance across various segments. The positive statistics shared by CEO Mark Hoplamazian during the earnings call reflect the company’s optimistic outlook for the future. By focusing on the continuing recovery of the business travel sector and maintaining a solid financial performance, Hyatt is well-positioned for future growth and success in the hospitality industry.