• RevPAR Growth: System-wide RevPAR growth of 1.6% for the quarter, or 2.2% when adjusted for the Easter shift.

• Luxury Brand Performance: Luxury brands’ RevPAR increased over 5% in the second quarter.

• All-Inclusive Net Package RevPAR: Increased 6% compared to the second quarter of 2024 in the Americas.

• Net Rooms Growth: Achieved net rooms growth of 11.8% during the quarter, including approximately 2,600 rooms from the Playa acquisition.

• Gross Fees: Reported gross fees of $301 million, up 9.5%.

• Adjusted EBITDA: Total adjusted EBITDA was $303 million, an increase of approximately 9% after adjusting for assets sold in 2024.

• Total Liquidity: Approximately $2.4 billion, including $1.5 billion in revolving credit facility capacity and $900 million in cash and equivalents.

• Full Year 2025 RevPAR Outlook: Expected range of 1% to 3% growth.

• Adjusted Free Cash Flow: Expected to be in the range of $450 million to $500 million.

• Capital Returns to Shareholders: Expected to return approximately $300 million in 2025, inclusive of share repurchases and dividends.

Release Date: August 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Hyatt Hotels Corp (NYSE:H) successfully closed the acquisition of Playa Hotels & Resorts, adding 15 all-inclusive resorts to its portfolio.

• The company entered into an agreement to sell the Playa real estate portfolio for $2 billion, with potential additional earnings of $143 million.

• Hyatt Hotels Corp (NYSE:H) reported system-wide RevPAR growth of 1.6% for the quarter, with luxury brands showing strong performance.

• The World of Hyatt loyalty program continues to grow, with membership increasing by 21% year-over-year, reaching over 58 million members.

• Net rooms growth was 11.8% during the quarter, with significant expansion in Europe and Asia, and a strong development pipeline of approximately 140,000 rooms.

• Business transient RevPAR was flat, with a 1.5% decline in the United States, particularly affecting select service hotels.

• The third quarter faces challenging year-over-year comparisons due to special events and calendar shifts, impacting growth expectations.

• Lower chain scales in the US underperformed, affecting overall RevPAR growth, particularly in the upscale segment.

• The distribution segment’s adjusted EBITDA was flat, with lower booking volumes in the four-star and below segments.

• Visibility in Greater China remains limited, with RevPAR growth expected to be only in the low single digits for the remainder of the year.

Story Continues

Q: Can you explain the expected improvement in performance for the remainder of the year, given the anticipated weakness in the third quarter? A: Joan Bottarini, CFO, explained that the second half of the year is expected to reflect a 6% growth in EBITDA, with most of it occurring in the fourth quarter. The third quarter faces headwinds due to tougher comps from events like the Olympics and the Democratic National Convention. However, the fourth quarter benefits from easier comps and better pickup in business transient travel post-Labor Day. Group pace is also positive for the fourth quarter, providing confidence in the outlook.

Q: What is the status of the co-branded credit card negotiations, and what are you aiming to achieve? A: Joan Bottarini stated that they are optimistic about the negotiations and will provide more specifics on the expected economics once they are able to do so, likely later this year or early next year.

Q: How do you plan to allocate capital from hotel dispositions, and what is the impact on shareholder returns? A: Mark Hoplamazian, CEO, mentioned that proceeds from the Playa real estate sale will be used to pay down debt. The company remains focused on further dispositions, which will enhance flexibility for shareholder returns. As Hyatt becomes more fee-based, the conversion to free cash flow is expected to increase, allowing for more shareholder returns.

Q: Can you provide insights into the integration of recent brand acquisitions like Standard and Playa? A: Mark Hoplamazian noted that the integration of Standard is progressing well, with early results exceeding expectations. For Playa, the integration is managed through a joint venture, and while World of Hyatt integration is fast-tracked, significant impact is yet to be seen. The rebranding of Playa hotels is underway and expected to be fully ramped by the end of the year.

Q: What are the expectations for the Caribbean market for the rest of the year? A: Joan Bottarini expressed optimism about the Caribbean market, noting strong bookings and a mid-single-digit pace increase for the third quarter. The Playa portfolio is also performing well, despite some impact from rent conversions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.