Hyatt Withdraws 2020 Outlook As Coronavirus Spreads

By Dave Simpson
Hyatt Withdraws 2020 Outlook As Coronavirus Spreads

Hyatt Hotels Corp has said that it is withdrawing its 2020 earnings outlook as the coronavirus outbreak spreads across the globe hurting travel demand.

The company had previously forecast adjusted profit of between $760 million and $780 million for 2020.

Greater China revenue per available room (RevPAR) has been affected due to the impact on demand outside the country following corporate travel restrictions in North America and Europe, the hotel chain said.

RevPAR is a key metric to measure a hotel's financial health and is calculated by multiplying the average daily room rate by the occupancy rate.

"Evolving Situation"

"This is an evolving situation, and our ability to assess the financial impact of COVID-19 on our business continues to be limited," CEO Mark Hoplamazian said.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.