Hyatt Hotels mounted a partial rebound from the coronavirus-fueled collapse in demand but still posted a larger-than-expected quarterly loss.
For the third quarter, the luxury hotel giant reported Wednesday a net loss of $161 million, or $1.59 per share, after losing $236 million in the previous quarter. A year ago, it made a pre-COVID profit of $296 million.
On an adjusted basis, Hyatt lost $1.48 per share in the third quarter, missing analysts’ estimates of a $1.29 per share loss.
CEO Mark Hoplamazian noted, however, that Hyatt doubled the number of room nights sold compared to the second quarter of 2020 as leisure travel picked up.
“I am exceptionally proud of our hotel teams who gained transient demand market share in the segments and geographies of strongest demand globally as they continue to discover and secure demand from many different sources,” he said in a news release.
According to Hyatt, revenue per available room (RevPAR), a key metric, continued to recover across all of its regions, more than doubling from the low in the second quarter of 2020. The recovery was led by occupancy gains in Greater China and select service hotels in the U.S.
With travel restrictions easing, nearly all of Hyatt’s hotels have reopened and 92% of its rooms are available to guests. The company said preliminary estimates for October show a modest sequential improvement in comparable system-wide RevPAR from the third quarter and a year-on-year decline of about 70%.
“We expect demand to remain uneven over the coming months,” Hoplamazian said.
In trading Wednesday, Hyatt shares fell 1.6% to $57.41, bringing their losses for the year to date to 35.6%.
U.S. hotel occupancy was at 48% in the week ending Oct. 24, compared with 32% a year earlier, according to research firm STR. Like many other areas of travel, occupancy hit its lowest point in April (22%) and inched up in May and June before stalling at a level that has basically stayed the same since July.