Chicago-based Hyatt Hotels Corporation (NYSE:H) reported a sharp increase in its third quarter earnings on Wednesday. Net profits for the quarter jumped 64 percent to $23 million or 14 cents per share, compared to $14 million in the year ago quarter. The strong profits reflect higher revenue per available room and increased occupancy.
Hyatt Hotels Corporation (NYSE:H) said the earnings would be $30 million, or 18 cents per share, if you exclude the special one time items such as business restructuring. It said the revenues per available room (RevPAR) were strong in North America, but grew just 1 percent in the international markets, due to a strong dollar. Net revenues for the quarter were up 9 percent to $977 million from $897 million in the same quarter a year ago. Analysts were expecting a revenue of $1 billion and adjusted profit of 17 cents per share.
Hyatt Hotels Corporation (NYSE:H) said its RevPAR was hurt by the timing of the September holidays, compared to last year. The company said it sees some headwinds in the short-term, as group booking in North America is slowing. However, the company is well-positioned to grow in the long-term.
The hotel chain said the RevPAR for comparable owned and leased hotels, an important metric in the hotel business, rose 4.6 percent. The actual increase was 6.3 percent, but it was marred by the effect of currency. Occupancy increased 4 percent from the last year. Operating margins for comparable owned and leased hotels jumped 20 basis points from a year ago.
Hyatt Hotels Corporation (NYSE:H) president and CEO Mark Hoplamazian said that the hotel chain has made significant progress since its IPO three years ago. "We have materially increased earnings, expanded our presence in many key markets, improved guest satisfaction levels, gained market share at many of our properties, and strengthened engagement among our associates across our hotels," he said.
The company said it opened five new hotels during the third quarter and anticipates to add more than 20 hotels during 2012. Hyatt Hotels Corporation (NYSE:H) shares are down 4.2 percent to $36.45 on the NYSE.