Hyatt Hotels Corp. reported continued softness for its all-inclusive portfolio during the third quarter, with systemwide net package RevPAR for the segment down 0.9% compared to the same period in 2023.
The company said in its second-quarter earnings report that its Inclusive Collection portfolio enjoyed a “very strong” first quarter with double-digit net package RevPAR, but followed that up with a more modest 3% increase in the second quarter.
The third quarter decline was particularly pronounced in the Americas, where net packaged RevPAR declined 5% at the company’s Inclusive Collection properties, primarily due to hurricane impacts. (Hyatt defines net package RevPAR to include revenue derived from the sale of package revenue consisting of room revenue, food and beverage, and entertainment.)
Mark Hoflamazian
Despite the challenges, Hyatt CEO Mark Hoplamazian told analysts on Thursday’s earnings call that forward bookings are showing promise for the segment. Growth at all-inclusive resorts in the U.S. increased by 10% during the festive period and more than 20% in the first quarter. 2025.
The all-inclusive slowdown this quarter comes as Hyatt continues to expand its presence in the sector. Most recently, the company announced a 50-50 joint venture with Spanish hotel company Grupo Pinero, 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 4.5-star category, filling a gap in our brand portfolio,” said Hoplamazian. He estimated that more than 85% of Hyatt’s all-inclusive resorts in the Americas are in the five-star space.
He said Hyatt continues to see “healthy engagement” among its all-inclusive brands in the Americas, and has signed deals for Thailand’s Hyatt Zilara and Hyatt Ziva, expanding Hyatt’s expansion into Asia Pacific. It added that for the first time, it had announced a comprehensive expansion.
Additionally, Hyatt’s European all-inclusive offerings were a bright spot this quarter. Hyatt CFO Joan Bottarini cited “impressive” net package RevPAR growth of about 13%, driven by strong demand in the Balearic and Canary Islands.
Slight increase across the U.S.
In the U.S., driven by strong business transient and group travel demand, systemwide RevPAR growth was modest at just over 1%, with Hyatt’s business transient revenue increasing approximately 16% in major metropolitan markets.
But leisure travel in the U.S. has faced headwinds due to extreme weather events and increased international travel to Europe and Asia Pacific.
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Globally, Hyatt reported systemwide RevPAR growth of 3% in the quarter, with particularly strong performance in Europe, where RevPAR increased 15%, and Asia Pacific, excluding China, where RevPAR increased approximately 10%.
In the third quarter, Hyatt’s global system occupancy increased 1.3 percentage points to 72.5%, and systemwide ADR increased 1.2% to $201.75.
The company reported net income of $471 million for the quarter and adjusted Ebitda of $275 million, up 8.9% year-over-year.
