(Bloomberg) -- Hyatt Hotels Corp. reported second-quarter results that show just how deep the pain from travel bans and hotel closures have been for the lodging industry.
- Revenue per available room, a measure of rates and occupancy, fell 89% worldwide in the period, according to a statement Monday.
- The company reported an adjusted net loss of $183 million, or $1.80 a share. Analysts were expecting a loss of $137 million on average. The company's shares dropped on Tuesday in in New York.
Key Insights
- Hyatt's hotel portfolio skews toward full-service properties that are more likely to depend on group meetings and corporate travel. That helps explain why Hyatt's results lagged Wyndham Hotels & Resorts, whose roadside motel brands saw RevPar decline by 54% from the year-ago period.
- The recent spike in coronavirus cases has weighed on what was a nascent travel recovery in the U.S. Hyatt said RevPar was down 76% in July compared with a year earlier. Hotel bookings had increased gradually during the quarter as vacationers embarked on road trips to regional destinations.
- Hyatt said it has enough liquidity to “fund operations for at least the next 36 months” even if room demand stays at second-quarter levels. The company has spent recent months conserving cash by laying off corporate employees and lining up new credit facilities.
Market Reaction
- Hyatt shares dropped at much as 4.9% to $45.62 on Tuesday. The stock had plummeted about 47% this year through Monday's close.
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