Summary:
- Hyatt posted mixed Q3 results ending Sept. 30.
- Systemwide RevPAR rose 0.3 percent YOY, led by luxury brands.
- Pipeline reached 141,000 rooms, up 4.4 percent from Q3 2024.
HYATT HOTELS CORP. reported mixed third quarter results for the period ending Sept. 30, with fee-based earnings up but overall revenue largely flat. Comparable systemwide RevPAR rose 0.3 percent year over year, led by the company’s luxury brands.
Leisure transient travel drove RevPAR growth, while group business declined about 100 basis points due to the Rosh Hashanah holiday shifting from the fourth to the third quarter, Hyatt said in a statement.
Net package RevPAR rose 7.6 percent, supported by luxury all-inclusive demand.
“Our third quarter results reflect the strength of our core fee business and our disciplined approach to cost management,” said Mark Hoplamazian, Hyatt’s president and CEO. “As we continue our evolution to a brand-led organization, we are focused on elevating guest experiences, deepening customer loyalty through World of Hyatt and expanding into high-growth segments and geographies. Looking into the fourth quarter and beyond, we believe our high-end customer base, robust pipeline with significant white space for growth and rapidly expanding loyalty program position us to drive sustained growth and create long-term value for our shareholders.”
Hyatt’s net rooms grew 12.1 percent year over year, or 7 percent excluding acquisitions. The company’s pipeline totaled about 141,000 rooms, up 4.4 percent from the third quarter of 2024. During the quarter, Hyatt opened 5,163 rooms, including Hyatt Regency Times Square in New York and signed a master franchise agreement with HomeInns Hotel Group to develop 50 Hyatt Studios hotels in China.
Hyatt’s gross fees rose 5.9 percent to $283 million, or 6.3 percent excluding the Playa Hotels acquisition. Base management fees increased 10 percent, driven by RevPAR growth outside the U.S. and new openings. Incentive management fees grew 2 percent, supported by new properties and performance in Asia-Pacific excluding Greater China.
Franchise and other fees rose 4 percent, driven by contributions from new hotels and offset by the removal of fees from eight Hyatt Ziva and Hyatt Zilara properties acquired with Playa Hotels. Adjusted EBITDA was $291 million, up 5.6 percent year over year, or 10.1 percent excluding 2024 asset sales.
Hyatt reported a net loss of $49 million and an adjusted net loss of $29 million. The company continues to manage the delayed-draw $1.7 billion term loan from the Playa Hotels acquisition, including a recent $22 million property sale in Playa del Carmen. Proceeds will be used to repay the loan, while management agreements for 13 of the 14 sold properties will extend for 50 years.
As of Sept. 30, total debt was $6 billion and total liquidity was $2.2 billion, including $749 million in cash and equivalents and $1.5 billion in borrowing capacity.
Hyatt expects comparable systemwide RevPAR growth of 2 to 2.5 percent in 2025, net rooms growth excluding acquisitions of 6.3 to 7 percent, and adjusted EBITDA of $1.09 to $1.11 billion, up 7 to 9 percent. Net income is projected at $70 to $86 million. The company plans to return about $350 million to shareholders through dividends and share repurchases and expects continued EBITDA growth from third-party loyalty programs, including its expanded agreement with Chase for World of Hyatt cardmembers.
In September, Hyatt celebrated the 45th anniversary of its Park Hyatt brand, launched in 1980 with Park Hyatt Chicago and rolled out “Luxury Is Personal,” its first global marketing campaign for the brand in over five years.
