Strong Revenue and EBITDA Growth
The company reported net income of $55.2 million, adjusted EBITDAre of $79.5 million, and adjusted FFO per share of $0.57, marking a 9.6% increase compared to the same quarter last year. Second quarter same-property hotel EBITDA of $84 million was 22.2% above 2024 levels.
Successful Renovation and Performance of Grand Hyatt Scottsdale
The Grand Hyatt Scottsdale Resort's performance was a major driver, contributing to a 4% same-property RevPAR increase. The resort achieved a RevPAR increase of nearly 150% and exceeded 2019 group room nights and revenue.
Strong Group Business Demand
Group business demand was very strong, driving a 15.6% increase in same-property group room revenues. Food and beverage revenue from groups was particularly strong, with banquet revenue growth of nearly 20%.
Positive Performance in Key Markets
RevPAR growth was particularly strong in markets like Pittsburgh, Orlando, and California, with Fairmont Pittsburgh up almost 30% due to the U.S. Open, and other properties like Kimpton Canary Santa Barbara up 10%.
Efficient Capital Management
The company completed the sale of Fairmont Dallas for $111 million, generating an unlevered IRR of 11.3%. It also reduced projected capital expenditures for the year by $25 million.