Hyatt expects to open 85 hotels this year, five more than its initial plans

Hyatt Hotels Corporation plans to open 85 hotels during fiscal year 2019, five establishments more than its initial expansion plan, after reviewing its annual expectations, after closing the second quarter of its fiscal year with 22 openings, equivalent to an offer of 3,909 rooms.

The new openings undertaken from April to June, contributed to a 12.6% increase in the net rooms of the North American group compared to the second quarter of 2018.

As of June 30, the Chicago-based group operating under 19 brands executed contracts under franchise or management for 460 hotels with an offer of 92,000 rooms (vs. 91,000 as of March 31). Currently, its portfolio of establishments amounts to 875 properties in more than 60 countries.

In Spain, the hotel group has partnered with Hesperia Hotels & Resorts, a Spanish chain with which it signed two franchise agreements for the opening of two establishments, located in Madrid and Barcelona, ​​under the Hyatt Regency brand, for which the Spanish chain will maintain the property and its operational management.

It is the ‘Hyatt Regency Hesperia’, of 171 rooms, until now the Hotel Hesperia Madrid and the ‘Hyatt Regency Barcelona Fira’ (until now Hotel Hesperia Barcelona Tower) of 280 rooms, which will open under this brand from the fourth quarter of this year. The two have a five-star category and constitute two of the most valuable assets of the Hesperia chain.

CHECK FORECASTS

Hyatt, which revised its annual forecasts at the end of July, expects to close 2019 with an increase of between 1% and 2% of its income per available room (RevPar) – one of the main indicators of the sector – compared to the range of 1% -3% growth estimated previously.

In addition, it expects to place its adjusted gross operating profit (Ebitda) for the full year between 755 million and 775 million dollars (680.6 million and 698 million euros), compared to the initial fork of 780-800 million euros. dollars (703-721 million).

These adjustments are mainly due to the problems related to the construction of several properties in Austin, Texas and Lenox, in Massachusetts, and the impact of the sale of its participation in the company that owns the ‘Grand Hyatt San Francisco’, as stated in its semiannual accounts report.

Hyatt increased its earnings in the second quarter by 11.6%, to 86 million dollars (77.4 million euros), with 13.7% more revenue to 1,289 million dollars (1,161 million euros). In the first semester it reduced its attributed profit by 69.4%, to 149 million dollars (134.2 million euros) compared to the same period of 2018 for investments made, with a 12.8% increase in its billing.