- Hyatt reported growth in RevPAR and development expansion in Q1.
- Net income was $38 million, while adjusted net income was $61 million.
- Pipeline reached about 151,000 rooms, up 9.4 percent YoY.
HYATT HOTELS CORP. reported growth in RevPAR, fee-based earnings and development expansion in the first quarter despite regional headwinds. It posted 5.4 percent year-over-year comparable systemwide RevPAR growth for the three months ended March 31, driven by luxury demand and its all-inclusive resort portfolio.
The results reflect the company’s reliance on its asset-light fee business and brand mix to support earnings, Hyatt said in a statement. Net income was $38 million for the quarter, while adjusted net income was $61 million. Adjusted EBITDA was $266 million, up year over year despite geopolitical disruptions and weaker demand in some international markets.
“Our strong first quarter results reflect the continued strength of our core fee business and the resilience of our differentiated portfolio of high-quality brands,” said Mark S. Hoplamazian, Hyatt’s chairman, president and CEO. “As we look to the balance of the year and beyond, we are focused on further elevating Hyatt by strengthening the performance of our brands, our talent and our technology to enhance how we operate and build on our competitive advantages.”
Hyatt’s all-inclusive resorts remained a growth driver, with net package RevPAR rising 7.4 percent year over year. Luxury hotels led overall RevPAR gains, while leisure transient demand was the largest contributor. Group and business transient demand posted low single-digit growth, while conflict in the Middle East reduced overall RevPAR growth by about 50 basis points during the quarter.
Gross fees increased 8.6 percent year over year to $333 million, supported by higher base management fees, incentive management fees, newly opened properties and the Playa Hotels acquisition. Base management fees rose 10.9 percent, driven by RevPAR gains outside the U.S., resort performance in the U.S. and portfolio expansion. Incentive management fees increased 13.8 percent, led by Asia-Pacific and newly opened hotels, partly offset by weaker results in the Middle East and Mexico.
Franchise and other fees increased 3.1 percent, supported by RevPAR growth in U.S. select-service properties and non-RevPAR fee contributions, partly offset by the absence of fees from properties transferred in the Playa transaction. Owned and leased segment adjusted EBITDA declined by $2 million year over year after adjusting for asset sales, while the distribution segment was affected by temporary disruptions, including hurricane-related hotel closures in Jamaica and lower demand in Mexico.
Hyatt opened 3,966 rooms during the quarter, including Andaz Lisbon, Andaz Shanghai ITC and The Livingston in Brooklyn, expanding its lifestyle and urban portfolio. The company’s development pipeline reached about 151,000 rooms, up 9.4 percent year over year.
In January, Hyatt said U.S. room signings in 2025 reached a five-year high, rising 30 percent from 2024. About half were in new markets, while more than 80 percent of the U.S. pipeline consists of new-build projects. Hyatt is also expanding select-service and conversion brands such as Hyatt Select and Hyatt Studios.
Hyatt reiterated its full-year 2026 outlook, projecting comparable systemwide RevPAR growth of 2 percent to 4 percent. Net rooms growth is expected at 6 percent to 7 percent, while net income attributable to the company is forecast at $255 million to $350 million. Adjusted EBITDA is projected at $1.155 billion to $1.205 billion, up 13 percent to 18 percent from 2025.
Hyatt is updating its World of Hyatt loyalty program, expanding award redemptions from three to five levels across eight categories starting in May. The framework aligns hotels within category caps, manages peak demand and reduces category shifts.
