Hotel chain Hyatt reported mixed second-quarter results on Tuesday and made bullish comments about future demand, despite concerns that pent-up travel demand will wane after the summer.
Hyatt stock rose Tuesday while other travel stocks were mixed.
The hotel operator reports as more analysts try to get a read on travel trends beyond the Labor Day peak, amid concerns that rising prices could turn people away from vacationing.
Hyatt Earnings
Hyatt earned 46 cents a share for the June-ended second quarter. That was well above estimates for six cents per share.
Sales came in at $1.359 billion, according to FactSet. That was below forecasts for $1.367 billion.
Comparable system-wide revenue per available room increased 82% to $130.16. That figure for U.S. hotels increased 85% to $150.52.
"The results in July and favorable forward booking trends reflect continued strength," Hyatt said in its earnings release.
Growth in Hyatt's luxury hotels helped keep July demand above 2019 levels, the company said. Short-term demand for group business bookings "continues to trend significantly ahead of 2019," Hyatt said.
Hyatt expects full-year comparable system-wide constant dollar RevPAR to be up 55%-60%. System-wide constant dollar RevPAR is expected to be 4%-9% below 2019.
Hyatt Stock, Travel Stocks
Hyatt stock rose 2.7% to 87.49 on the stock market today, just below its 200-day line. Shares have a 57 Composite Rating. Their EPS Rating is 38.
Among other travel stocks, Marriott International rose 0.3%. Hilton edged up 0.6%. Expedia fell 1.6%. All three have reported quarterly results in the past couple of weeks.
The price of a hotel room stay has risen over this year, with more people resuming travel and hotel staffing harder to come by.
Visibility 'Not That Long-Term'
During a conference in June, Hyatt said that 40% of its hotels were geared toward luxury, lifestyle and resort hotels. Business travel to larger U.S. cities had rebounded, it said.
Truist Securities travel stocks analyst Patrick Scholes, in a note last week, said higher-end hotels in the U.S., which benefited more from the revival of business and group travel, continued to outperform lower-end ones. Lower-end hotels, which have benefited from a comeback in leisure travel, thus had more difficult year-over-year comparisons, he said.
He also said that particularly popular leisure destinations, like those in Florida, had shown recent signs of cooling off. Spiking room rates, he said, likely priced out some customers. He also said Europe has reemerged as a vacation spot following a rollback in travel restrictions and a more friendly exchange rate.
Demand in China, he said, was improving, despite travel restrictions.
