To mark the start of the summer travel season, Hyatt Hotels (NYSE: H) became yet another travel corporation to proclaim a return to normalcy.
According to an update from the hotel chain on Monday, travel patterns for the Memorial Day weekend helped deliver the greatest RevPAR since November 2019.
The return of leisure travel was further emphasized by management over the Memorial Day weekend, as RevPAR in the Americas was around 24% higher than Memorial Day weekend 2019.
According to Hyatt (H) CEO Mark Hoplamazian, “our operational indicators in May provide an additional indication of continuing improvement, with comparable systemwide RevPAR rising from April, and systemwide RevPAR outside of Asia Pacific actualizing 3% over 2019 levels for the second consecutive month.” Summer travel is expected to be a busy time for us this year.
Systemwide RevPAR in May was 6% lower than in May 2019 outside of the Memorial Day weekend, or 3% higher than in May 2019 when operations in the Asia Pacific area are excluded. Despite China’s strict Covid-19 lockdowns, travel in Asia has taken longer to recover.
For the months of June through August, comparable systemwide transient revenue on the books is expected to be 5 percent higher than the same time in 2019, or 15 percent higher excluding the Asia Pacific, according to Hyatt’s report on reservations. Short-term demand for the company’s group business is also on the rise, according to the firm.
In premarket trading on Monday, Hyatt Hotels shares rose by 0.4 percent to $92.55.
The recent windfall is a good one for the tourism business after two years of battling with a patchwork of Covid-19 pandemic restrictions. Following a suspension of dividends at the beginning of the epidemic, Marriott International (MAR) and Hilton Worldwide Holdings (HLT) recently announced that they will restart payments. In anticipation of a busy summer travel season, the corporations have released travel advice.
Although others worry that the excitement about travel may be premature. According to Marriott’s forward-looking projections, for example, RevPAR in North America is likely to remain essentially unchanged for the remainder of 2022.
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