Chicago, Illinois-based Hyatt Corp. (NYSE:H) reported its second-quarter earnings rose 48% beating analyst estimates, helped by stronger occupancy levels.
Total revenue rose 5.3% to $936 million for the three months ending June 30. That compares with $889 million a year ago.
The hotel operator, which competes with companies like Marriot, Inc. (NYSE: MAR), posted profits of $37 million, or 22 cents a share, compared to $25 million, or 14 cents a share, in the same quarter last year.
Adjusted for one-time items, including a loss on the sales of eight hotels, asset impairments and losses on certain investments, net income was 27 cents a share.
Economists, on average, had expected Hyatt to earn 15 cents per share on sales of $910 million, according to Bloomberg.
Hyatt’s Chief Executive Mark S. Hoplamazian said it had stronger occupancy levels and increased average rates in multiple segments and regions.
Revenue per available room (Revpar), a measure of occupancy and rates, for comparable owned and leased hotels grew 5.9%.
In North America full-service revenue per available room rose 5%, while comparable North American select-service revenue per available room grew 9.6%.
Comparable international revenue per available room rose 9.9%, aided by a foreign exchange gain.
Revenues from management and franchise fees grew 17%.
Meanwhile, adjusted earnings before taxes, interest, depreciation and amortization grew 11.9% to $151 million, up from $135 million.
During the second quarter, the company purchased three extended-stay hotels in California and two overseas, one in the Maldives and one in China for $77 million.
The Hotel operator expects to open 15 hotels this year. Currently, it had 456 properties in 44 countries as of June 30.