Hyatt Hotels’ systemwide first-quarter business transient revenue per available room increased 2.4 per cent year over year, the company reported on Thursday (30 April).
The performance of business transient in the quarter breaks a streak of flat or declining business transient RevPAR recorded across Hyatt's 2025 quarterly earnings.
During the company's earnings call, Hyatt CEO Mark Hoplamazian called the results for business transient and group RevPAR, which rose nearly 4 per cent year over year, "solid."
Business transient demand also drove positive numbers for Hyatt's select-service brands, which posted a 1.8-per cent year-over-year increase in RevPAR for the first quarter.
Hyatt's systemwide first-quarter RevPAR increased 5.4 per cent year over year, besting Hyatt's projection of 2 per cent first-quarter RevPAR growth made in its fourth-quarter earnings update.
The company revised its full-year 2026 RevPAR outlook to 2 per cent to 4 per cent growth year over year, up from the 1 per cent to 3 per cent year-over-year growth projected in its fourth-quarter earnings update.
Middle East impact
RevPAR for Hyatt's Middle East and Africa region declined 3.9 per cent year over year to $148.05, driven by a 5.3 per cent drop in occupancy year over year to 62 per cent.
Bottarini said RevPAR for the region is "expected to be down significantly compared to last year" and that the conflict is expected to cost Hyatt approximately $10 million in management and franchise fees for the balance of the year.
Asked about whether higher fuel prices, increased air ticket prices or reduced flight capacities caused by the war in Iran have shown up in Hyatt's booking pace, Hoplamazian said "not at the moment."
"We are very sensitive to what is happening with airfares, because airlines will have to adjust their fares to accommodate fuel price increases," Hoplamazian said. "If there is a persistence of higher oil prices and those keep going up, I think the biggest hit in terms of demand will be among lower-income households. That is true across retail as well as hospitality. That is where a disproportionate amount of the pain will be felt."
Hoplamazian said Hyatt's current outlook accounts for a "more pronounced" impact in the region during the second quarter and improvement in the back half of the year.
Hyatt Q1 metrics
Hyatt's systemwide average daily rate increased 3.2 per cent year over year to $211.39, while occupancy rose 1.5 percentage points to 67.7 per cent.
In Europe RevPAR increased 7.5 per cent year over year to $152.87, as ADR grew 2.2 per cent to $246.07 and occupancy bumped up 3 percentage points to 62.1 per cent.
Hyatt's total first quarter revenue increased 1.7 per cent year over year to $1.7 billion.
As of 31 March, Hyatt's portfolio stood at nearly 1,550 properties or more than 375,000 rooms. Its development pipeline increased 9.4 per cent year over year to more than 150,000 rooms.
Hyatt ended the first quarter with approximately 66 million World of Hyatt loyalty members, up 18 per cent year over year.