Hyatt Hotel returns to 2Q profit

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 in a statement today. Earnings excluding one-time items were 18 cents a share. That beat the average estimate of about 8 cents from 12 analysts surveyed by Bloomberg.

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 tilt toward the high end, which is the sector that's seen the biggest increases," said David Loeb, an analyst at Milwaukee-based Robert W. Baird & Co. "An awful lot of their profits stem from their owned hotels."

Starwood Hotels & Resorts Worldwide Inc., owner of luxury brands including the St. Regis and W hotels, on July 22 reported earnings that beat analysts' estimates and raised its forecast for revenue per available room, or revpar.

Revenue at Hyatt rose 5 percent to $889 million. Hyatt's revpar for hotels owned or leased for at least a year increased 9.6 percent.

Marriott International Inc., the largest U.S. hotel chain, on July 15 said second-quarter profit more than tripled and increased its full-year earnings forecast.

Hyatt reported its results before the open of regular U.S. trading. The stock has increased 59 percent from its IPO price.