Hyatt Hotels Corp. reported continued softness in its all-inclusive portfolio during the third quarter, with the segment's systemwide net package RevPAR decreasing 0.9% compared with the same period in 2023.
The company disclosed in its Q2 earnings report that its Inclusive Collection portfolio enjoyed "a really strong" first quarter with double-digit net package RevPAR, but that was followed by a more modest 3% increase in the second quarter.
The Q3 decline was particularly pronounced in the Americas region, where the company's Inclusive Collection properties saw net package RevPAR fall 5%, due primarily to hurricane impacts. (Hyatt defines net package RevPAR as including revenue derived from the sale of package revenue comprised of rooms revenue, food and beverage and entertainment.)
Mark Hoplamazian
Despite these challenges, Hyatt CEO Mark Hoplamazian told analysts during a Thursday earnings call that forward bookings show promise for the segment, with Americas all-inclusive resorts' pace up 10% over the festive period as well as up over 20% for the first quarter of 2025.
The quarter's all-inclusive slowdown comes as Hyatt continues to expand its footprint in the space, with the company most recently announcing a 50-50 joint venture with Spanish hospitality company Grupo Pinero, which is owner of the all-inclusive Bahia Principe Hotels & Resorts brand. The partnership will add 23 resorts to Hyatt's existing portfolio of more than 120 all-inclusive resorts across Mexico, the Caribbean, Central America and Europe.
"This is a unique opportunity to expand our all-inclusive offerings in the four-and-a-half-star category, which fills white space in our brand portfolio," said Hoplamazian. He estimated that over 85% of Hyatt's all-inclusive resorts in the Americas play in the five-star space.
He added that the company has continued to see "healthy signings" among its all-inclusive brands in the Americas, while also announcing Hyatt's first all-inclusive expansion into Asia Pacific with signed agreements for a Hyatt Zilara and Hyatt Ziva in Thailand.
Additionally, Hyatt's European all-inclusives emerged as a bright spot in the quarter, with Hyatt CFO Joan Bottarini citing "impressive" net package RevPAR growth of approximately 13%, driven by high demand in the Balearic and Canary Islands.
A slight U.S. uptick overall
In the U.S., systemwide RevPAR growth was modest at just over 1%, buoyed by strong business transient and group travel demand, with Hyatt's business transient revenue up approximately 16% in major urban markets.
U.S. leisure travel, however, faced headwinds from weather events and increased international outbound travel to Europe and Asia Pacific.
• Related: Taylor Swift tour brings a windfall for hotels
Globally, Hyatt reported systemwide RevPAR growth of 3% for the quarter, with particularly strong performance in Europe, where RevPAR increased 15%, and in Asia Pacific excluding Greater China, where RevPAR was up approximately 10%.
In the third quarter, Hyatt saw global, systemwide occupancy increase 1.3 percentage points to 72.5% while systemwide ADR rose 1.2%, to $201.75.
The company reported net income of $471 million for the quarter, with adjusted Ebitda of $275 million, representing an 8.9% increase from the previous year.