Luxury leads Hyatt 2Q25 results

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