CEO Mark Hoplamazian said he is optimistic about booking
trends in 4Q25 and into 2026.
CHICAGO – Hyatt Hotels Corp. delivered solid results for
2Q25 and beat Street estimates led by luxury RevPAR growth with U.S. select-service declining.
Like many of the other major hotel companies, Hyatt said
trends point to stronger performance in the fourth quarter and into 2026.
Comparable system-wide RevPAR increased 1.6% year-over-year
(YOY) in 2Q25.
Net rooms growth was 11.8% and 6.5% when excluding
acquisitions.
Pipeline of executed management or franchise contracts
was approximately 140,000 rooms, an increase of approximately 8% YOY.
“Hyatt’s
2Q25 results topped Street estimates due to $14 million of Playa earnings
contribution (most consensus estimates did not include the partial period of
Playa ownership),” wrote R.W. Baird analyst Michael Bellisario. “RevPAR growth of 1.6% was a touch below Baird/Street
expectations, and 'core' results (ex-Playa) appear to be more in line
with to slightly below expectations. Positively, full-year 'comparable' guidance midpoints (ex-Playa) are mostly unchanged except for gross fees +$5
million; including Playa, full-year guidance generally matches our
expectations.”
For full-year 2025 (not including the impact of the Playa
Hotels acquisition and the pending Playa real estate transaction), Hyatt
forecast:
- Comparable system-wide RevPAR growth is
projected between 1% to 3% YOY.
- Net rooms growth, excluding acquisitions, is
projected between 6% to 7% YOY.
- Net income is projected between $135 million and
$165 million.
- Adjusted EBITDA is projected between $1.085 billion
and $1.130 billion, a YOY increase of 7% to 11% after adjusting for assets sold
in 2024.
- Capital returns to shareholders is projected to
be approximately $300 million, through a combination of dividends and share
repurchases.
Closer look at 2Q25
Gross fees increased 10% YOY in the quarter with properties
from the Bahia Principe and Standard International transactions contributing
approximately $11 million, or approximately 42% of the total gross fees growth.
Base management fees increased 13%, driven by managed RevPAR
growth and the contribution of newly opened hotels.
Incentive management fees grew 15%, led by newly opened
hotels, all-inclusive resorts performance, U.S. resorts, and favorable foreign
currency exchange rates.
Franchise and other fees expanded 4% due to non-RevPAR fee
contributions and newly opened hotels.
Owned and leased segment Adjusted EBITDA increased 1% YOY after
adjusting for assets sold in 2024 and the impact of the Playa Hotels acquisition.
Comparable owned and leased margin decreased by 170 bps YOY in the second
quarter.
Distribution segment Adjusted EBITDA was flat YOY as higher
pricing, effective cost management, and favorable foreign currency exchange
offset lower booking volumes.
On the development side, Hyatt opened 8,920 rooms, inclusive
of approximately 2,600 rooms associated with the Playa Hotels acquisition.
Hyatt also announced a new upscale brand, Unscripted by
Hyatt, which is designed to unlock growth through adaptive reuse and
conversion-friendly opportunities.
Hyatt announced the completion of the Playa Hotels acquisition
in 2Q25 for $2.6 billion and entry into a definitive agreement with Tortuga
Resorts, a joint venture between an affiliate of KSL Capital Partners and
Rodina, to sell the entirety of the real estate portfolio acquired as part of
the Playa Hotels acquisition for $2.0 billion. Concurrent with the sale,
which is expected to close before the end of 2025, Hyatt will enter into
50-year management agreements for 13 of the 15 resorts. Hyatt is required to
use the proceeds from the Playa real estate transaction to repay the
$1.7 billion delayed draw term loan used to fund a portion of the Playa
Hotels acquisition.
Other 2Q25 results:
- Net income (loss) attributable to Hyatt was
$(3) million and Adjusted Net Income was $66 million
- Diluted EPS was $(0.03) and Adjusted
Diluted EPS was $0.68
- Gross fees were $301 million, an increase
of 9.5%, compared to the second quarter of 2024
- Adjusted EBITDA was $303 million, a
decrease of 1.1%, compared to the second quarter of 2024, or an increase of
9.0% after adjusting for assets sold in 2024