Hyatt shares slip as results show pain of global travel collapse
[NEW YORK] Hyatt Hotels reported second-quarter results that show just how deep the pain from travel bans and hotel closures have been for the lodging industry.
Revenue per available room (RevPAR), a measure of rates and occupancy, fell 89 per cent worldwide in the period, according to a statement Monday.
The company reported an adjusted net loss of US$183 million, or US$1.80 a share. Analysts were expecting a loss of US$137 million on average. The company's shares dropped on Tuesday in in New York.
KEY INSIGHTS
Hyatt's hotel portfolio skews toward full-service properties that are more likely to depend on group meetings and corporate travel. That helps explain why Hyatt's results lagged Wyndham Hotels & Resorts, whose roadside motel brands saw RevPAR decline by 54 per cent from the year-ago period.
The recent spike in coronavirus cases has weighed on what was a nascent travel recovery in the US. Hyatt said RevPAR was down 76 per cent in July compared with a year earlier. Hotel bookings had increased gradually during the quarter as vacationers embarked on road trips to regional destinations.
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Hyatt said it has enough liquidity to "fund operations for at least the next 36 months" even if room demand stays at second-quarter levels. The company has spent recent months conserving cash by laying off corporate employees and lining up new credit facilities.
MARKET REACTION
Hyatt shares dropped at much as 4.9 per cent to US$45.62 on Tuesday. The stock had plummeted about 47 per cent this year through Monday's close.
BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Toronto home sales fall for third month in April; prices rise
Far East Shopping Centre owners in private talks after close of S$928 million en bloc tender
US mortgage rates up for fifth week at 7.22%
Amsterdam parking space up for grabs for half-a-million euros
Where innovation and play meet: Singapore Science Park welcomes new ‘mini city’ concept
Singapore top recipient of Q1 cross-border investments in Apac: Knight Frank