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Hyatt profit skyrockets after £734m hotel sales

04 May 2018 by
Hyatt profit skyrockets after £734m hotel sales

The US-based Hyatt Hotels Corporation saw its net income for the first quarter of 2018 increase by nearly 644% to $411m (£304.2m) after it sold three international hotels.

The company offloaded the 301-bedroom Andaz Maui at Wailea Resort, the 668-bedroom Grand Hyatt San Francisco and the 454-bedroom Hyatt Regency Coconut Point resort and spa for around $992m (£734.3m) to Host Hotels & Resorts on 29 March.

The move was part of Hyatt's plans to sell around $1.5b (£1.1b) worth of property by the end of 2020, as it aims to reduce the number of property assets it holds.

However, earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 7.3% to $202m (£149.5m) for the period, and were 8.4% lower on a constant currency basis.

Comparable systemwide revpar increased 4.3%, including an increase of 1.6% at comparable owned and leased hotels.

Net room growth was 7.2%. Management, franchise and other fee revenue increase 15.7% (13.9% in constant currency) to $132m (£97.7m).

Mark S. Hoplamazian, president and chief executive of Hyatt Hotels Corporation, said: "We had a strong start to the year, highlighted by better-than-expected lodging fundamentals and a $1b (£740m) sale of three hotel properties."

He added the firm was "cautiously optimistic" for the rest of the year and expected more growth in revpar and hotel rooms.

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