US-based Hyatt Hotels Corporation reported a slight decrease in earnings due to its acquisition of Two Roads Hospitality last year.
Hyatt acquired the boutique hotel company in November 2018 for $405m (£316m), adding 65 hotels to its portfolio.
In its 2018 financial results, the company said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 1.9% to $777m (£607m); while revenue per available room (revpar) increased 3.1%.
Mark S Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said: "We had a very strong 2018 driven by another year of double-digit growth in management and franchising fees, nearly offsetting the earnings decline in our owned and leased segment, resulting from more than $1b (£782m) of asset sales. We successfully closed the acquisition of Two Roads Hospitality, adding five new compelling brands into the Hyatt portfolio and significant future growth opportunities.
"We believe we are well-positioned to continue to execute our long-term shift to an asset-lighter business model. This is supported by a significant increase in our pipeline, which now stands at approximately 89,000 rooms, equivalent to more than 42% of our system, and our sustained net rooms growth of 7% or better."
For 2019, the company expects earnings to be between approximately $780m (£608m) and $800m (£624m), to open more than 80 new hotels and increase revpar approximately 1%-3%.Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).