Hyatt Hotels 3Q net income falls, revenue rises

Hyatt Hotels Corp.'s third-quarter net income dropped 53 percent because of one-time charges, but the hotel operator's adjusted earnings beat analysts' estimates and revenue rose on increased occupancy and higher room rates.

The company, whose brands include Hyatt Regency and Andaz, reported net income of $14 million, or 8 cents per share, compared with $30 million, or 17 cents per share, in the same period last year.

Excluding a loss on marketable securities, provisions on hotel loans and other one-time items, earnings were 16 cents per share. Analysts polled by FactSet expected 7 cents per share.

Revenue for the three months ended Sept. 30 climbed 2 percent to $897 million from $879 million, but missed Wall Street's forecast of $920 million.

Revenue per available room for owned and leased hotels open at least a year rose 9.2 percent in the quarter, with both occupancy and average daily rate improving.

Revenue per available room, or revpar, is a key gauge of a lodging company's health.

Revpar for full-service North American hotels open at least a year rose 7.1 percent. The figure was up 8.8 percent for select-service locations, which includes the Hyatt Place and Hyatt Summerfield Suites brands.

Revpar for international hotels open at least a year increased 9.6 percent.

Hyatt, based in Chicago, said Wednesday that it added 26 hotels in the quarter. It plans to open more than 35 during the year.