Two of the world’s biggest hotel companies reported third-quarter results within days of each other, and both showed growth with caveats. Hilton, reporting October 27, posted revenue of about $3.33 billion, up 6.6 percent from a year earlier but slightly below analyst expectations. It raised its full-year forecast for revenue per available room, a key hotel measure, to growth of 4 to 4.5 percent, citing resilient travel demand and strong luxury performance.
The regional split at Hilton was stark. United States RevPAR rose about 7 percent, while the Middle East and Africa fell 5.6 percent. Hilton’s chief executive, Christopher Nassetta, acknowledged that geopolitical conditions had affected performance more than expected. The company also reported a development pipeline of roughly 543,100 rooms, indicating that its long-term expansion plans remain intact despite the regional weakness.
Hyatt’s report, dated October 29, was stronger on the headline numbers. Comparable systemwide hotel RevPAR increased 7.2 percent, gross fees rose 15.2 percent and the development pipeline stands near 158,000 rooms. The soft spot was all-inclusive resorts, where comparable net package RevPAR fell 2.5 percent. Hyatt pointed to weaker demand in certain Mexican destinations, partly offset by growth in the Caribbean and Europe.
Hurricane Melissa also disrupted Hyatt’s distribution business in Jamaica. Hyatt’s chief executive, Mark Hoplamazian, credited luxury brands, the commercial platform and the company’s asset-light model for the results. Taken together, the two reports suggest that US and luxury demand remain firm, while destinations tied to geopolitical risk or resort-heavy travel face a tougher stretch. For travelers, that could mean more bargaining room at all-inclusives in some markets and fewer discounts in strong US cities.
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