Hyatt Sees Occupancy Rates Remaining Strong

Hyatt Hotels Corp said it expected occupancy and room rates at its hotels to remain strong as U.S. business travel continues to grow.

The owner of the Park Hyatt, Grand Hyatt and Hyatt Regency chain of hotels reported a first-quarter profit above analysts' estimates, partly helped by a tight supply of rooms.

"Looking ahead, we expect healthy occupancy and (room) rate growth, particularly in the Americas, as (Hyatt's) group business continues to recover and transient business remains strong," Chief Executive Mark Hoplamazian said in a statement.

Group rooms are booked in bulk for events and meetings and typically bring in more revenue as guests usually avail added services such as catering and banquet. The company's transient business caters to individual customers traveling for business or leisure.

Hyatt reported a 9.3 percent rise in group rooms revenue at U.S. full service hotels open at least one year.

Rivals Marriott International Inc and Starwood Hotels & Resorts Worldwide Inc also posted better-than-expected quarterly profits earlier in April.

Hyatt's comparable systemwide revenue per available room (revPAR), a key metric for the hotel industry, increased 7.7 percent.

RevPAR is calculated by multiplying a hotel's average daily room rate by its occupancy rate.

Net income attributable to Hyatt rose to $56 million, or 36 cents per share, in the first quarter ended March 31, from $8 million, or 5 cents per share, a year earlier.

Hyatt reported earnings of 13 cents per share, excluding items, above the 11 cents per share analysts on average had expected.

Revenue rose 10 percent to $1.07 billion from $975 million and was above the average analyst estimate of $1.06 billion, according to Thomson Reuters I/B/E/S.

Hyatt shares closed at $54.02 on the New York Stock Exchange on Tuesday.