Hyatt Hotels Corp. saw some pullback in demand for all-inclusive resorts in the second quarter, which CEO Mark Hoplamazian attributed to a "return to pre-pandemic seasonality" in Mexico and the Caribbean.
During Hyatt's Q2 earnings call Tuesday, CFO Joan Bottarini said Hyatt's Inclusive Collection portfolio enjoyed "a really strong" first quarter with double-digit net package revenue per available room (RevPAR), followed by a more modest 3% increase in the second quarter. (Hyatt defines net package RevPAR as including revenue derived from the sale of package revenue comprised of rooms revenue, food and beverage and entertainment.)
In the Americas, the Inclusive Collection's net package RevPAR growth for Q2 was 2%.
There is some difficulty in the current quarter.
"In the third quarter, we've certainly had temporary disruptions with the early hurricane and [airline] system disruptions," Bottarini alsaid. "But as we look forward in the fourth quarter, we're seeing pacing up into the festive season in the mid-single digits."
Hoplamazian added that the Inclusive Collection's resorts in Europe have continued to strengthen, "lapping strong results last year."
The slowdown in all-inclusive growth comes as Hyatt also reports softening domestic leisure travel in the U.S. Leisure revenue decreased approximately 2% in the quarter. Hoplamazian pointed to "temporary headwinds" affecting this segment, including significant renovations at several key U.S. resorts and lingering effects from last year's wildfires in Maui.
Those renovation projects include the Confidante Miami Beach, which is slated to reopen as the Andaz Miami Beach, as well as the Hyatt Regency Scottsdale in Arizona and Hyatt Regency Indian Wells in California, both of which are undergoing updates and will relaunch under the Grand Hyatt brand.
Hyatt reported strong performance in the group and business segments. The company's group revenue increased by approximately 8%, while business revenue was up 14% in the U.S.
The company posted a systemwide RevPAR gain of 4.7%, to $149.31, in the second quarter, while average daily rate (ADR) rose 1.1%, to $204.73. Occupancy was up 2.4 percentage points, to 72.9%.
Hyatt reported second-quarter net income of $359 million, up from $68 million in the second quarter of 2023. Total revenue for the quarter was $1.703 billion, slightly down from $1.705 billion a year earlier.