Hyatt Hotels (H) - Q3 2025 Earnings Call
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Call Details
Call Title: Hyatt Hotels Q3 2025 Earnings Conference Call
Date held: November 6, 2025
Management team members present:
Mark Hoplamazian, President and Chief Executive Officer
Joan Botterini, Chief Financial Officer
Adam Roman, Senior Vice President of Investor Relations and Global FP&A
Call Summary
Financial Performance
In the third quarter of 2025, Hyatt reported a system-wide REVPAR growth of 0.3%, which was “impacted by a holiday shift and lapping of one-time events last year.”
The luxury brands demonstrated the highest REVPAR growth, with leisure transient REVPAR increasing by 1.6% and about 6% within luxury brands specifically.
The performance of all-inclusive properties was robust, with Net Package REVPAR increasing by 7.6% year-over-year, reflecting the appeal of luxury all-inclusive travel.
Although business transient REVPAR remained flat, there was a 3% growth in the U.S. market, and select service properties achieved positive growth for the first time in 2025.
Group REVPAR saw a decline of 4.9%, which was expected due to tough comparisons from previous year’s events, including the Olympics in Paris and Democratic National Convention in Chicago.
Joan Botterini noted that adjusted EBITDA in Q3 was $291 million, aligning with expectations.
Growth fees amounted to $283 million, marking a 6.3% increase year-over-year, driven by improved international REVPAR, new hotel openings, and non-REVPAR fees.
Guidance
Hyatt anticipates net REVPAR growth in the range of 2% to 2.5% for the full year of 2025, implying fourth-quarter growth expectations of 0.5% to 2.5%.
The net room growth outlook for 2026 has been revised upward to between 6.3% to 7%, not including acquisitions from Playa.
For 2026, adjusted EBITDA is projected to be between $1.09 billion to $1.11 billion, representing an 8% increase at the midpoint compared to the previous year, after adjusting for asset sales impacts.
The full-year adjusted G&A cost is expected to be around $440 million to $445 million, reflecting realized efficiencies.
Hyatt expressed confidence in the third quarter and expects strong performance from luxury portfolios and international markets in the fourth quarter.
Capital Allocation
Hyatt’s capital return to shareholders is projected to be approximately $350 million in 2025, which includes share repurchases and dividends.
Joan mentioned using net proceeds from the sale of a Playa hotel to repay a portion of the delayed draw term loan, demonstrating a commitment to managing debt levels.
The company continues to prioritize maintaining an investment-grade profile, alongside commitments to return capital to shareholders.
$30 million worth of Class A common stock was repurchased during the quarter, with approximately $792 million remaining under the buyback authorization.
Macro & Demand Trends
Mark Hoplamazian highlighted strong demand for luxury travel and noted that leisure demand remained resilient, with October REVPAR rising by approximately 1% in the U.S. and 5% globally.
Operational challenges due to Hurricane Melissa were acknowledged, though expectations for overall occupancy remain cautiously optimistic.
Bookings for 2026 are reportedly strong, with a high single-digit increase noted for group pace, and discussions on corporate negotiated rates suggest gradual increases of low to mid-single digits compared to 2025.
The company expects special events, including the World Cup, to stimulate demand in the upcoming months.
International Trends
Hyatt continues to see positive REVPAR growth outside the U.S., particularly in Europe and Asia, where international inbound travel has contributed positively to performance.
Greater China also experienced an uptick in REVPAR due to more leisure transient demand, indicating a rebound in this region despite other headwinds.
Mark emphasized a “real momentum in signings” particularly in Asia Pacific and the U.S., which showed 35% growth in each region.
NOTABLE QUOTES:
“Our thoughts are with them and their families, and we’re hopeful for their continued safety and well-being.” - Mark Hoplamazian on Hurricane Melissa.
“As we continue to expand into new segments and markets, we believe the power of World of Hyatt will continue to fuel preference and long-term value creation well into the future.” - Mark Hoplamazian.
“We are on track to more than double our core organic growth rate from last year to this year.” - Mark Hoplamazian.
“We feel really confident about completing those openings.” - Mark Hoplamazian on hotel openings.
“Our loyalty program goes beyond transactional awards to create an experiences platform.” - Mark Hoplamazian on World of Hyatt.
“Adjusted EBITDA was $291 million in the third quarter, in line with our expectations.” - Joan Botterini.
“We’re seeing tremendous strength in organic growth.” - Mark Hoplamazian.
“Luxury travel demand is resilient, and we expect continued strength moving forward.” - Joan Botterini.
“Our members receive the most consistent and guaranteed benefits in the industry.” - Mark Hoplamazian.
“We remain committed to our investment grade profile, and our balance sheet is strong.” - Joan Botterini.
Q&A SUMMARY:
Q1: Steve Pizzella (Deutsche Bank), What are your thoughts on net rooms growth going into 2026 and beyond?
A: Mark highlighted that organic growth is strong, having doubled the core organic growth rate compared to last year. He noted strong momentum in signings heading into Q4, with around 38 hotels planned for opening.
Q2: Smedes Rose (Citi), Can you provide insights into group pace for 2026?
A: Mark mentioned that Group PACE into 2026 is trending high single digits. Although October bookings for 2026 were not as strong as expected, the overall confidence remains high due to attractive booking patterns for the year ahead.
Q3: Ben Chaiken (Mizuho Securities), Can you discuss the expected G&A reduction in 2026?
A: Joan explained that organizational changes and efficiencies have allowed for the adjusted G&A estimate to come down. She indicated that these initiatives are driving an anticipated lower cost base for 2026.
Q4: Richard Clark (Bernstein), What is driving the increase in capital returns?
A: Joan clarified that the increase is derived from the new credit card agreement and restructuring charges, which offset some costs. The focus remains on returning capital to shareholders while maintaining strong growth.
Q5: Steven Grambling (Morgan Stanley), What assumptions underpin the EBITDA increase due to the new co-brand credit card?
A: Joan confirmed that they expect increased earnings stemming from growth in World of Hyatt membership and higher cardholder expenses. The benefit will materialize as the direct relationship grows with Hyatt’s consumer base.
Q6: David Katz (Jefferies), What further details can you share about the master agreement with Homins?
A: Mark noted that the partnership’s dynamics are promising, allowing for efficient development through their joint venture with an emphasis on adaptive reuse of properties in key markets.
Q7: Sean Kelly (Bank of America), Can you elaborate on your cost initiatives?
A: Mark explained that moving toward an insight-led and brand-focused organization includes enhancing agile methodologies and using machine learning, which contributes to efficiency and lowers costs.
Q8: Michael Bellisario (Baird), How is World of Hyatt performing regarding room night contributions?
A: Mark stated that the loyalty program’s penetration continues to rise and is now in the mid-40s percentile. He reiterated the value of a growing elite membership base, linking higher customer engagement directly to performance.
Q9: Patrick Scholes (Truist Securities), How are you feeling about the China market today?
A: Mark expressed a cautiously optimistic sentiment regarding China, noting positive trends in luxury demand and revealing new openings that cater to both the Chinese market and growing international clientele.
Q10: Connor Cunningham (Melius Research), Can you explain the free cash flow targets for next year?
A: Joan outlined that while this year had one-off items impacting cash flow, 2026 is expected to be improved by up to 50% conversion due to strategic growth initiatives and the upcoming benefits from the Playa agreement.
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