Hyatt Hotels Corp., the chain controlled by the Pritzker family, said second-quarter earnings climbed 5.4 percent amid strong demand in major U.S. cities.
Net income rose to $39 million, or 24 cents a share, from $37 million, or 22 cents, a year earlier, the Chicago-based company said today in a statement. The average of 12 estimates in a Bloomberg survey was for earnings of 22 cents a share.
Hyatt is benefiting from steady bookings at its high-end hotels in “gateway” U.S. cities, said Nikhil Bhalla, a senior lodging analyst at FBR & Co. in Arlington, Virginia. Hotel occupancy in the top 25 U.S. markets climbed to 69 percent this year through June, from 66 percent a year earlier, according to Smith Travel Research Inc., based in Hendersonville, Tennessee.
About 70 percent of Hyatt’s earnings before interest, taxes, depreciation and amortization is from the U.S., “and that region has held up better than some other parts of the world,” Bhalla said in a telephone interview before the report.
Second-quarter revenue rose to $1.01 billion from $936 million a year earlier. Revenue per available room, an industry measure of occupancies and rates, increased 8.7 percent for full-service hotels in North America. Overseas, revpar climbed 3.8 percent.
Adjusted earnings, which exclude items such as gains and losses on marketable securities, fell to $39 million, or 24 cents a share, from $46 million, or 27 cents, a year earlier. The year-earlier profit included a gain of $12 million, or 7 cents a share, from a tax adjustment against losses in the company’s foreign operations.