By Rob Curran
Hyatt Hotels posted a sharp drop in first-quarter earnings and cut its projections for 2025 net income and revenue per room, citing weakening reservation trends.
The Chicago hotel operator logged earnings of $20 million, or 19 cents a share, down sharply from $522 million a year earlier.
Stripping out certain one-time items, adjusted earnings came in at 46 cents a share, surpassing the average Wall Street target of 33 cents a share.
The Chicago hotelier said comparable revenue growth across all the properties the company manages, franchises or provides services for
For 2025, Hyatt slashed its projection for 2025 earnings to a range between $95 million and $150 million from a prior projection of $190 million-to-$240 million.
The hotel chain cut its projection for growth in comparable revenue-per-available-room, a key measure of hotel profitability, to a range between 1% and 3% from a prior projected range of 2%-to-4%.
"Recent shifts in booking behavior--particularly in shorter-term demand--have led us to modestly revise our outlook for the remainder of the year," said President and Chief Executive Mark Hoplamazian, in a statement.
The warning echoed sentiments from Royal Caribbean Holdings, the cruise line, which had warned of softening in reservation trends in its earnings update.
Rival hotelier Hilton Worldwide shrugged off broad weakness in consumer-discretionary stocks after it posted steady growth, helped by the opening of high-end hotels.
Write to Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
May 01, 2025 07:18 ET (11:18 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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