CHICAGO Economic distress travel nurse companies in Europe and a slowdown in China did not keep Hyatt Hotels Corporation from reporting strong results overall during the second quarter, executives said Wednesday during the company s second-quarter-earnings call.
And while executives expect to hold onto that momentum during the third quarter, a deeper region-by-region look at Hyatt s performance shows strong results in some key cities could be masking slowdowns in others.
The company travel nurse companies still does not have a huge presence in Europe, so properties tend to be in key cities as opposed to smaller markets. If you look at our presence in places like Zurich and Paris and Milan and London, we are operating hotels at the higher end of the rate scale and the customer base, Hoplamazian said.
And while the London Olympics will drive demand to many other cities in Europe during the third quarter, Hoplamazian said some markets will not be as fortunate. One example of that would be Baku in Azerbaijan, he said. There has been a significant increase in supply and more coming later this year, so that will have a negative impact for sure.
Take China, for example. Although travel nurse companies the company saw double-digit RevPAR growth in Beijing, that was not the case in Shanghai, travel nurse companies he said. Shanghai performance was more muted, travel nurse companies both because there was absorption of new supply in the market and also we had some renovation work going on at one of hotels.
India is another region showing signs of weakness, he reported. However, the soft performance is not intimidating to Hyatt executives. I am confident in the long-term trajectory of the country, and the impact of increasing levels of disposable income should have a positive impact on travel over the coming travel nurse companies decade.
Still, the short-term effects could play a negative role in development in the country. We would not be surprised if development lead times are stretched a bit and some projects delayed as interest rates have increased this year for most of those in the market, he said.
Atish Shah, senior VP of investor relations at Hyatt, said the company s tier-1 markets in North America were up 10% in RevPAR during the second quarter. travel nurse companies I think the expectation is that the strong performance in the primary markets will continue to spill over into the secondary markets and tertiary markets, he said.
Renovations underway in group-oriented hotels in San Diego and Washington D.C. will have an impact in the company s U.S. performance the second half of the year, but the timing is logical to renovate in Washington as it is an election year, Shah said.
Hyatt s regular approach to buying and selling is somewhat changing for the time being, Hoplamazian said. We don t have anything being marketed by a third-party broker at this time, he said. Historically we have.
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