Dow Jones Newswires | Hyatt Hotels Corp. posted a surprise
profit in the first quarter, though earnings fell 64 percent as the
hotelier benefited from an $8 million settlement and the company was
the latest to report signs of a travel and tourism industry rebound.

President and Chief Executive Mark Hoplamazian said room rates remain
under pressure, but the company is encouraged by year-to-year occupancy
increases in most of its markets. Group bookings also have begun to
rise, but continue to have limited visibility owing to short lead times
and smaller bookings.

A number of companies have reported improving travel trends, including a string of airlines and lodging companies noting a return of business travelers after a long hiatus.

Hyatt reported a profit of $5 million, or 3 cents a share, down from $14 million, or 11 cents a share, a year earlier. The latest period included a net 3 cents in gains, compared with 8 cents a year earlier. Revenue increased to $841 million from $789 million.

Analysts polled by Thomson Reuters most recently forecast a loss of 6 cents on revenue of $779 million.

Revenue per available room, an important measure of profitability in the sector, rose 8.1 percent, excluding currency fluctuations. Revpar fell 2.2 percent in North America but rose 9.6 percent internationally excluding currency impacts.

Hyatt, which made its debut as a public company in November, has been looking for acquisition opportunities–especially in major cities where it has a limited presence. The company has a portfolio of 434 properties, in contrast to rivals such as Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc. (HOT) that manage thousands of hotels globally.