Major renovation costs hurt HYATT Hotels Corp
Hyatt Hotels Corp., the chain controlled by the Pritzker family, registered lower than expected financial resulrts, with a decline in earnings because of costs from renovations.
First-quarter earnings fell to US$109 million from US$112 million the year earlier, the Chicago-based company said today in a statement.
Hyatt is spending as much as US$400 million to upgrade its properties. The company said on Feb. 17 that displacement from renovations will hurt results through the third quarter of this year. Interruptions have been slightly higher than previously expected, the company’s CFO said.
“We want to finish renovations as soon as possible,” President and Chief Executive Officer Mark Hoplamazian said during the call. The hotelier expects to start seeing “gradually higher results” in the fourth quarter, he said. Revenue increased to $875 million from $841 million a year earlier. Revenue per available room for hotels owned or leased for at least a year climbed 8.1 percent at full- service hotels in North America and 11 percent overseas.