Hyatt Hotels (H -1.60%) predictably saw its revenue and earnings driven into negative territory during the second quarter because of COVID-19's devastating effects on travel, but it nevertheless managed to beat analyst estimates of its revenue by tens of millions of dollars. While consensus forecasts pegged Hyatt's revenues at a total of $180 million, the chain generated $250 million.
Expenses, however, mounted higher than the analysts had guessed, pushing earnings per share (EPS) beyond predicted losses. Quarterly net loss was $183 million, for an adjusted EPS of a $1.80 loss per share, missing the $1.41 loss consensus by $0.39. Revenue per available room, or RevPAR, plunged 89.4% year over year, with RevPAR reaching a low point in April and rebounding since.
Hyatt says the areas first struck by the coronavirus, particularly "Greater China," have also been the first to recover. It has seen a return to 65% occupancy in China, with some areas in the Americas also seeing gains related to leisure travel.
The company reports it has roughly $3 billion in liquidity available, including $1.46 billion in cash and cash equivalents. The net rooms in its hotel network rose 5.8% year over year as Hyatt opened 10 new hotels during Q2, ready for more guests once travel restrictions ease.
Additional responses to the pandemic including streamlining operations, meaning the chain is now "prepared for varied recovery scenarios sustained by continuously evolving new ways of operating that reduce the occupancy levels that are required to break even at the hotel operating level," according to Chief Executive Officer Mark Hoplamazian.