By Will Feuer
Shares of Hyatt Hotels hit a record high as demand for hotels remains strong amidst recovery hopes for business travel and conferences.
Record Stock Surge
The stock surged nearly 9% to $147.13 in morning trading, marking a 29% increase over the past year.
Impressive Financial Performance
Hyatt reported fourth-quarter revenue of $1.66 billion, surpassing analyst expectations of $1.61 billion. Adjusted earnings per share also exceeded estimates at 64 cents, compared to the anticipated 38 cents.
Positive Outlook
Chief Executive Mark Hoplamazian shared on a conference call that all customer segments – leisure, business, and group – are showing robust demand. Group bookings are up 8% compared to last year, while corporate negotiated rates for business travelers in the U.S. have seen significant growth.
Growth Strategies
Hyatt is focusing on achieving a 3% to 5% increase in system-wide revenue per available room (RevPAR) in 2024. The company also plans to capitalize on real estate sales, aiming for $2 billion in gross proceeds by the end of 2024. With $961 million already realized from recent deals, Hyatt is strategically leveraging its real estate assets for further growth.