Hyatt's (H.N) results follow better-than-expected earnings from key peers Marriott International (MAR.N) and Starwood Hotels & Resorts Worldwide (HOT.N) in recent weeks. Those two were buoyed by rising group business and the continued U.S. travel recovery.

Though revenue per available room, a key measure of hotel health, showed strength in North America and internationally at Hyatt, total expenses rose 11 percent. Quarterly revenue rose about 9.5 percent to $958 million.

In its statement on Thursday, Hyatt said a portion of its rise in selling, general and administrative costs was tied to brand launches, bad debts and legal fees.

Net income came to $10 million, or 6 cents a share, in the first quarter, about the same as a year earlier.

Adjusted for items, profit was 3 cents a share in the latest period, down from 7 cents a share a year before. Analysts expected profit of 8 cents a share, according to Thomson Reuters I/B/E/S.

Hyatt boosted its capital spending projection for 2012 by $10 million to $360 million from a February forecast, citing construction of an Omaha, Nebraska property.

The company, which is controlled by the billionaire Pritzker family, this week said Harmit Singh will be succeeded as chief financial officer in mid-August by Gebhard Rainer, current managing director of the Europe/Africa/Middle East region who has been with Hyatt since 1988. Singh will stay on with Hyatt until year's end.

"While we reserve judgment towards the eventual success of this change, we are nonetheless hesitant to embrace the further entrenchment of longtime insiders into this 'semi-public' company," Raymond James analysts said in a note to clients on Thursday.

Shares of Hyatt were down 4 percent at $42.04 in New York Stock Exchange trading.

(Reporting by Karen Jacobs; Editing by Gerald E. McCormick, Dave Zimmerman)

• A Permanent Economic Emergency