Hyatt Hotels (NYSE:H) reported a much stronger-than-expected 48% improvement in second-quarter profit as revenue per available room climbed in both the U.S. and abroad and the company continued into expand in new regions.
The Chicago-based hotel chain operator posted net income of $37 million, or 22 cents a share, compared with $25 million, or 14 cents a share, in the same quarter last year.
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Excluding special items, Hyatt earned 27 cents a share, widely ahead of average analyst estimates polled by Thomson Reuters of 15 cents.
Led by an increase in North American revenue per available room (RevPAR), the hotel chain saw total revenues climb 5.3% to $936 million from $889 million a year ago. The results beat the Streets view of $910.1 million.
Comparable owned and leased hotels RevPAR climbed 5.9% with improved margins, while RevPAR gained 9.9% internationally.
Our business performed well in the second quarter, showing solid growth in earnings, stronger occupancy levels and increased average rates in multiple segments and regions, Hyatt CEO Mark Hoplamazian said in a statement. We continued to expand our presence in markets that are important to our customers and increased our executed contract base for future hotels to 150.
During the quarter, the company purchased three extended-stay hotels in California for roughly $77 million and sold eight hotels to a joint venture in which it holds a 40% share for $110 million. The acquisitions will help the company expand its select service presence and heighten awareness about the brand, Hoplamazian said.
Hyatt, which plans to open an additional 15 hotels this year, said it expects to open a significant number of new properties in the future, 70% of which will be located outside North America.