Hyatt Hotels Corporation reported continued weakness in its all-inclusive hotel portfolio in the third quarter, with the segment's systemwide net available rooms declining 0.9% compared with the same period in 2023.
The company disclosed in its second-quarter earnings report that its Inclusive Collection portfolio had a “very strong” first quarter with double-digit net RevPAR, but that was followed by a more modest 3% increase in the second quarter.
The decline in the third quarter was particularly pronounced in the Americas, where net RevPAR for the company's Inclusive Collection properties fell 5%, primarily due to the impact of hurricanes. (Hyatt defines net package RevPAR as revenue generated from the sale of package revenue, which includes room revenue, food and beverage and entertainment revenue.)
Mark Hoplamazian
Despite these challenges, Hyatt CEO Mark Hoplamazian told analysts on an earnings call Thursday that early bookings showed promise for the segment, with all-inclusive resorts in the Americas Growth was up 10% during the holiday season and more than 20% in the first quarter of 2025.
The overall slowdown in the quarter comes as Hyatt Hotels continues to expand its presence in the area, with the company recently announcing a 50-50 joint venture with Spanish Hotels Pinero Groupis the 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 offering in the four-and-a-half-star category, filling a gap in our brand portfolio,” said Hoplamazian, who estimates Hyatt's presence in the Americas More than 85% of all-inclusive resorts are classified as five-star hotels.
He added that the company continues to see “healthy signings” across its all-inclusive brands in the Americas, while also announcing Hyatt's first all-inclusive expansion into Asia Pacific, signing a deal to open Hyatt Zilara and Hyatt Ziva in Thailand.
also, Hyatt Europe All-Inclusive Service Hyatt Chief Financial Officer Joan Bottarini said net RevPAR growth of about 13% was “impressive” and a highlight of the quarter, driven by high demand in the Balearic and Canary Islands.
The U.S. overall rose slightly
In the U.S., systemwide RevPAR increased just over 1%, driven by strong business short-term and group travel demand, with Hyatt's business short-term revenue in key urban markets growing approximately 16%.
However, U.S. leisure travel faces headwinds from weather events and increased international outbound travel in Europe and Asia-Pacific.
• Relevant: Taylor Swift tour brings hotel windfall
Globally, Hyatt reported systemwide RevPAR growth of 3% in the quarter, with particularly strong performance in Europe, where RevPAR increased 15%, while in Asia Pacific (excluding Greater China), RevPAR increased About 10%.
In the third quarter, Hyatt Hotels Corporation's global occupancy rate increased 1.3 percentage points to 72.5%, while the system-wide average room rate increased 1.2% to $201.75.
The company reported net profit of $471 million for the quarter and adjusted Ebitda of $275 million, an increase of 8.9% from the previous year.
