US hotel operator Hyatt Hotels Corp has recorded a loss for the first quarter of 2021 as people stayed at home due to the COVID-19 pandemic.
However, the company said that business demand gained momentum in the period, albeit at a more modest pace than leisure demand.
After the pandemic pushed the hospitality industry to one of its worst downturns in 2020, hotel operators are expected to bounce back this year on the back of rising inoculation rates and pent-up demand.
CEO Statement
"The expansion of vaccine distribution and the easing of travel restrictions in certain markets fueled improved confidence in travel in many of the markets in which we operate," Hyatt CEO Mark Hoplamazian said.
Statistics
Hyatt said that its first quarter comparable system-wide revenue per available room (RevPAR) - a key measure of a hotel's performance - fell by approximately 48.9%.
Total revenue fell by 55.9% to $438 million, missing analysts' estimates of $468.9 million.
Net loss attributable to Hyatt was $304 million, or $2.99 per share, in the three months that ended on March 31, compared with a loss of $103 million, or $1.02 per share, a year earlier.
Excluding items, Hyatt lost $3.57 per share.
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