Hyatt reorganizes, releases Q1 earnings

On Wednesday Hyatt announced that it would reorganize its structure with the creation of three operating regions — the Americas, Asia and EMEA.

The three operating regions of Hyatt Hotels Corp., Chicago, will draw upon resources, standards, policies, practices and tools provided by the newly created global operations center to support existing hotel needs and future growth. The heads of each of the regions and of the global operations center will report to Mark Hoplamazian, Hyatt’s president and CEO.

“I firmly believe that realigning our resources will allow us to execute faster and more effectively and will enable Hyatt to enhance its position as a powerful global brand and to deliver exceptional results,” said Hoplamazian.

A newly formed real estate and capital strategy group, reporting to Hoplamazian, will be responsible for implementing Hyatt’s overall capital strategy, managing its hotel asset base and providing support to Hyatt’s development professionals around the world. The real estate and capital strategy group will oversee all investments made by Hyatt in hotel properties on a global basis.

In other organizational changes, Hyatt has appointed Gebhard Rainer to replace Harmit Singh as executive vice president and CFO, effective in August. Rainer currently works as Hyatt’s managing director EMEA.

Chuck Floyd will lead the global operations center, based in Chicago. Floyd has been with Hyatt for more than 30 years and currently serves as executive vice president, COO – North America.

Rakesh Sarna will lead the new Americas region. Sarna has been with Hyatt for more than 32 years and currently serves as executive vice president, COO – International.

Steve Haggerty will lead the new real estate and capital strategy group. Haggerty joined Hyatt in 2007 and currently serves as executive vice president, global head of real estate and development.

In the new regional structure, the current Asia Pacific and Southwest Asia operating divisions will be a part of the Asia region under the oversight of Larry Tchou.

Profit level unchanged

On Thursday Hyatt reported a US$10 million profit for the first quarter of 2012, the same amount it posted in the first quarter of 2011.

Although revenue increased 9.5% to US958 million, expenses increased 33% with the introduction of new brands, debt and legal fees.