Hyatt Hotels Corp. reported a rebound in all-inclusive resorts during the fourth quarter of 2024, with all-inclusive net package RevPAR growing 2.9% following some softness in the prior quarter.
The growth comes as Hyatt prepares to acquire all-inclusive resort owner and operator Playa Hotels & Resorts for $2.6 billion.
"We're well poised to strengthen our existing all-inclusive infrastructure in Mexico and the Caribbean," Hyatt CEO Mark Hoplamazian told analysts during the company's earnings call, adding that the Playa deal comes as institutional capital is increasingly entering the all-inclusive market in the Americas.
"The model is very, very attractive," said Hoplamazian. He said all-inclusives have high margins, yields and cash flow, and that the "durability of the model has been proven."
Big growth in business travel
The company's broader performance was solid, too, with systemwide RevPAR growing 5% in the quarter. U.S. RevPAR increased over 3%, while business travel emerged as the strongest growth segment with 10% revenue growth.
Group revenue was flat but grew 5% when adjusted for timing of Jewish holidays in October and U.S. elections in November.
Hyatt's systemwide occupancy hit 68.9% in the fourth quarter, up 2.1 percentage points from the prior year, while average daily rate (ADR) increased 1.8%, to $204.40.
For Q4, Hyatt reported a net loss of $56 million compared to net income of $26 million in the prior year's Q4. Hyatt said it recognized a $161 million impairment charge "related to goodwill and definite and indefinite-lived intangible assets."
CEO addresses new brand structure
During the call, Hoplamazian highlighted Hyatt's revamped brand organization, which groups its portfolio into Luxury, Lifestyle, Inclusive, Classics and Essentials categories.
Notably, two of Hyatt's all-inclusive brands -- Impression by Secrets and Breathless Resorts & Spas -- now fall under the Luxury and Lifestyle categories rather than Inclusive.
The company's Luxury category features Park Hyatt, Alila, Miraval, Impression by Secrets and Unbound Collection, while its Lifestyle category is home to Andaz, Thompson, The Standard, The StandardX, Dream Hotels, Breathless, JDV by Hyatt, Bunkhouse and Me And All.
The Inclusive lineup now includes Hyatt Ziva, Hyatt Zilara, Zoetry, Secrets, Dreams, Hyatt Vivid, Sunscape and Alua.
The Classics portfolio has Hyatt, Grand Hyatt and Hyatt Regency, while the Essentials collection features Caption by Hyatt, Hyatt Place and Hyatt House among others.
According to Hoplamazian, the revamped organization will allow Hyatt "to further elevate the focus on our guests and customers that we serve in these brand groups."