CHICAGO-Hyatt Hotels on Thursday reported higher income and RevPAR numbers for fourth quarter 2011, compared to Q4 2010, crediting in part the shorter but more plentiful stays by business and vacation travelers in today’s economy. The firm, with about 483 properties in 45 countries, has almost $1 billion on its balance sheet, and said it is poised to expand by opening a significant number of new properties in the future.
Harmit Singh, CFO, said in the company’s conference call about Q4 that RevPAR increased 6.5% in North America from the fourth quarter 2010. Transient business, the guests who stay for less than one week, was strong in the quarter, with revenues generated up about 13% compared with Q4, he said. RevPAR for Latin America and Southwest Asia was also strong, but Japan, North Africa and Shanghai numbers were down, he said.
The company listed net income of $52 million for the quarter, compared to net income of $6 million. This figure was helped by a tax benefit of about $28 million, from foreign tax credits and an $11 million foreign tax settlement.
Mark Hoplamazian, president and CEO, said during the call that the company plans to expand in two main areas – in New York City and overseas. Hyatt will double its number of hotels in the East Coast city by 2014, he said. “My outlook for New York long-term is very bullish,” Hoplamazian said during the call. “New York is a wonderful place because it’s made up of a number of individual markets, it’s not monolithic, so demand drivers and rate levels around the city will vary significantly.”
He also said Hyatt is likely to use its large balance sheet to secure opportunities outside the United States, particularly in Latin America and Europe, where there have been more acquisition and development opportunities. “We operate with a long-term perspective,” he said. “With that in mind, the outlook for our company has never been brighter. We expect to see a significant number of new openings in key high-growth markets outside of the United States.”
Already announced earlier this month was the company’s new partnership with Naseel Holding Co. to build three new hotels in Saudi Arabia. The venture will build the 400-room Grand Hyatt Jeddah and the 240-room Hyatt Regency Jeddah here, and the 275-room Park Hyatt Riyadh in Riyadh, near the Kingdom Center.
On Thursday’s call, Hoplamazian also discussed a new project in Rio de Janeiro. He said the firm has been engaged in securing entitlements, financing and partners to complete the hotel on land it owns. “That will be an area of activity for us during the course of the year,” he said. “And yes, our current plan is to be able to complete that project well ahead of the Olympics.”
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