Hyatt Hotels Corp.'s luxury and all-inclusive brands continued to be the company's top performers in the third quarter, with Hyatt CEO Mark Hoplamazian highlighting travel advisors' role in driving all-inclusive bookings.
"Our all-inclusive portfolio continued to deliver strong results, with net package RevPAR up 7.6% compared to the third quarter of 2024, demonstrating the strength of luxury all-inclusive travel," Hoplamazian said during Hyatt's Q3 earnings call.
Hyatt CEO Mark Hoplamazian said "hundreds of thousands of travel advisors are linked directly into our systems." Photo Credit: Questex
He called wholesaler ALG Vacations, which Hyatt acquired as part of its 2021 purchase of Apple Leisure Group, a "critical distribution channel" for all-inclusives.
"Hundreds of thousands of travel agents and advisors are linked directly into our systems," he said. "Our direct production into our own resorts is up year over year and has continued to rise every year since we've owned the company."
At the start of the call, Hoplamazian acknowledged Hurricane Melissa's impact in Jamaica, and CFO Joan Bottarini later added that Hyatt lowered its fourth-quarter outlook for its Playa Hotels & Resorts all-inclusive business by approximately $7 million as a result of the hurricane. Hyatt acquired Playa in June.
Hyatt's Inclusive Collection has temporarily closed eight Montego Bay-area all-inclusives in Jamaica in the wake of Hurricane Melissa. The resorts are slated to reopen Jan. 31.
According to Bottarini, the company's all-inclusives in the Americas excluding Jamaica are up 8% in the fourth quarter and up 11% for the holiday season.
Another good quarter for luxury
Hyatt's luxury brands did well in Q3, with leisure RevPAR up 6% in the segment. Bottarini said Hyatt anticipates luxury hotels and international markets will also perform well in Q4, "supported by strong demand trends and high-end consumer resilience."
Across the entire company, Hyatt's RevPAR grew just 0.3% in the third quarter. Leisure RevPAR increased 1.6%, while group RevPAR declined 4.9%. Business RevPAR was flat.
In the U.S., RevPAR declined 1.6% due to a diminishing performance by select-service hotels and the timing of Rosh Hashanah. Hoplamazian pointed to improving business travel trends in the U.S., with business RevPAR growing 3%.
International markets performed better than the U.S. The Americas excluding the U.S. posted RevPAR growth of 3.9%, while Asia Pacific excluding greater China had 5.1% growth. The Middle East and Africa grew 8.5%, Europe was up 1.2% and greater China 1.7%.