Hotels Seeing Major Economic Gains
Hyatt Hotels Corp. reported a 21.1 percent year-over-year increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter of 2013, as well as an adjusted net income of $51 million for the quarter. That represents a 54.5 percent increase over the fourth quarter of 2012. Systemwide revenue per available room was up 4.2 percent year-over-year; RevPAR at comparable U.S. full-service hotels grew by 7 percent. "In the fourth quarter, we continued to see positive demand trends among both transient and group travelers, particularly in the Americas," said Global Hyatt Corp. president and CEO Mark S. Hoplamazian in the earnings report. "This is leading to continued rate improvement across our brands." In the U.S., group rooms revenue at comparable full-service hotels was up by 6.3 percent year-over-year, accompanied by a 3.9 percent increase in group room nights and a 2.4 percent rise in average daily rate for groups.
Starwood Hotels & Resorts has reported that systemwide revenue per available room skyrocketed in the fourth quarter for its luxury brands. An 11.2 percent year-over-year increase was noted for the St. Regis/Luxury Collection properties. The second highest RevPAR gain was realized by W Hotels, with a 6.1 percent increase. For all of Starwood's brands in North America, a 6.1 percent RevPAR gain was realized for the quarter. "Starwood had a strong year in 2013," said CEO Frits van Paasschen in the report. "Occupancies in North America reached record levels for the third straight quarter, and in a weak economic environment, occupancies in Europe remained high. In Latin America, Asia Pacific, Africa and the Middle East, we delivered strong footprint and fee growth." Starwood is projecting worldwide RevPAR growth of 5 to 7 percent for 2014.