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by Michael J. Shapiro | May 03, 2016

Group rooms revenue fell by 3.5 percent at full-service Hyatt Hotels in the United States for the first quarter, the company announced in its first-quarter earnings report. Group room nights were down by 4.8 percent year-over-year, although the group average daily rate did climb by 1.4 percent. 

Transient business surged, however, with revenue up by 9.8 percent at U.S. full-service hotels, transient room nights up by 6.5 percent and transient ADR up by 3.1 percent year-over-year. ADR increased by 3.6 percent overall at full-service hotels in the States, and revenue per available room climbed by 2.2 percent. Systemwide RevPAR for Hyatt likewise grew by 2.2 percent globally for the quarter. Hyatt's select-service properties in the U.S. posted a particularly strong quarter, with a 6.8 percent RevPAR increase.

"We are pleased with our solid start to the year and encouraged by positive trends in our business," said Hyatt president and CEO Mark S. Hoplamazian. "Based on current trends, we remain confident in our ability to achieve comparable systemwide RevPAR growth of 3 to 5 percent for the year."

Starwood Hotels and Resorts, meanwhile, reported a worldwide, systemwide RevPAR increase of 1 percent, with North American properties enjoying a more robust 2 percent RevPAR bump. Starwood hotels throughout Asia, excluding China, posted a 5 percent year-over-year RevPAR growth. Starwood anticipates RevPAR growth of 2 to 4 percent for the year. The company did not hold a first-quarter conference call due to its planned merger with Marriott, still expected to close mid-year.

"We had a very strong quarter, despite facing a tough macroeconomic environment and the distraction of a very public bidding war for our company," said Thomas Mangas, CEO of Starwood. He noted that RevPAR was in line with their expectations and that the company well exceeded expectations for its net income before interest expense, taxes, depreciation and amortization.