Hyatt Hotels Corp., the Pritzker family chain that raised $1.09 billion in an initial public offering last year, reported a second-quarter profit as demand for high-end lodging improved.
Net income was $25 million, or 14 cents a share, compared with a loss of $50 million, or 34 cents, a year earlier, the Chicago-based company said yesterday.
The U.S. lodging industry is beginning to recover after last year’s recession, led by upscale hotels such as Hyatt’s brands. Occupancy at U.S. chain hotels with the costliest rooms climbed to 66 percent this year through June from 60 percent in the same period of 2009, the biggest jump among all categories, according to Smith Travel Research Inc.
"Hyatt’s owned hotels are concentrated in high-end assets in major markets, which along with its extensive international presence puts it right in the segments and geography of the lodging industry that is performing best today," said David Loeb, an analyst at Milwaukee-based Robert W. Baird & Co.
Hyatt is looking to enlarge its portfolio through debt and equity deals and joint ventures, Chief Executive Officer Mark Hoplamazian said during a conference call.