Hyatt: Occupancy Stabilizing, Trend To Continue

CHICAGO (AP) — Hotel occupancy rates are finally stabilizing, a soon-to-be public Hyatt Hotels Corp. told potential investors Monday, offering more welcome signs to an industry that's been battered by the recession.

The hotel company, which is privately held mainly by the founding Pritzker family and which observers expect will launch its initial public offering this week, said it believes the trend to continue for the remainder of the year.

"However, we expect that there will likely be continued pressure on average room rates," the Chicago company wrote in a document filed Monday with the Securities and Exchange Commission. "The current economic environment makes it difficult for us to predict future demand for our hospitality products and services."

Hotels have been hammered in the recession as corporations cut back on business travel and leisure travelers opt to stay at home.

Late last month, competitor Starwood Hotels & Resorts Worldwide Inc., which owns Sheraton hotels, said its third-quarter profit sank 64 percent. But executives there also said occupancy rates were starting to recover.