​Hyatt and IHG Triumph in 2023: Record Profits and Expansion Amid Surging Travel Demand

​Hyatt and IHG Triumph in 2023: Record Profits and Expansion Amid Surging Travel Demand

Posted by Emma on 2nd Mar 2024

In the competitive hospitality sector, Hyatt and InterContinental Hotels Group (IHG) reported significant growth and expansion in 2023, reflecting a strong demand for travel and a robust performance across their respective markets.

Hyatt saw a system-wide revenue per available room (RevPAR) increase of 15.6% across the EMEA region, with an even higher growth rate of 17% globally. This surge was particularly pronounced in its luxury segment, where RevPAR escalated by 21.5% compared to 2022. The Chicago-based hotel group's net income reached $26 million in Q4 2023 and $220 million for the full year. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) from managed and franchised hotels in the EMEA region grew by 19.7% to $17 million, attributed to resilient leisure demand alongside strong business transient and group performance. Hyatt expanded its EMEA portfolio with 12 new hotels, including notable additions in London, and globally launched 101 unique hotels, 43 of which were brand conversions. As of the end of 2023, Hyatt's future looked promising with a pipeline of approximately 650 hotels, 75 of which are in the EMEA region, signalling continued growth, especially in its luxury and upscale segments.

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Similarly, IHG reported a 14% increase in UK RevPAR and a 16% global growth, with profits before tax nearly doubling from $540 million in 2022 to over $1 billion in 2023. Adjusted EBITDA also rose significantly to $1.1 billion. The EMEAA region saw a 23.7% RevPAR increase from 2022, with a notable performance in the Kimpton, InterContinental, and Hotel Indigo brands. IHG expanded its EMEAA presence with 68 new hotels, leading to 1,237 properties, emphasising the strength of its Holiday Inn, Holiday Inn Express, and Crowne Plaza brands. The group also highlighted its focus on luxury and lifestyle brands, with record conversions marking 37% of its combined signings and openings activity in 2023. IHG's global footprint includes 6,363 hotels after removing 76 over the past year, and it announced a $800 million share buyback program for 2024, underscoring its financial robustness and commitment to shareholder returns.

Hyatt and IHG have showcased resilience and strategic growth in a post-pandemic landscape, capitalising on the rebounding travel demand. Hyatt's focus on luxury and upscale market segments, alongside its strategic brand conversions and pipeline expansion, contrasts with IHG's broad portfolio growth, significant financial gains, and emphasis on conversions and luxury and lifestyle brands. As these hotel giants continue to expand and innovate, their strategies reflect a nuanced approach to capturing market share and enhancing guest experiences, positioning them well for future growth in the global hospitality industry.

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