Friday, May 2, 2025

Hyatt Projects Reduced RevPAR Growth Amid Changes in Booking Trends

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In its Q1 2025 earnings report, Hyatt Hotels demonstrated resilience amid economic volatility, with a 5.7% year-over-year increase in comparable systemwide hotel RevPAR driven by business transient and group travel. The company also reported a 10.5% rise in net room growth, fueled by the opening of over 11,000 new rooms. However, CEO Mark Hoplamazian warned of slowing booking behaviors affecting leisure travel and significant cancellations in government group bookings, prompting a downgrade in Hyatt’s full-year RevPAR growth outlook to a range of 1% to 3%. Despite these challenges, Hyatt’s development pipeline remains robust, with approximately 138,000 rooms planned, indicating strong interest in new brands geared towards suburban and smaller markets. The company’s shift towards an asset-light model is expected to provide greater stability amidst economic fluctuations.

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