Hyatt Reports First Quarter 2025 Results

Hyatt Hotels Corporation has reported first quarter 2025 results.

Highlights

Highlights include:

• Comparable system-wide hotels RevPAR increased 5.7%, compared to the first quarter of 2024
• Net rooms growth was 10.5%
• Net income attributable to Hyatt Hotels Corporation was $20 million and Adjusted Net Income was $46 million
• Diluted EPS was $0.19 and Adjusted Diluted EPS was $0.46
• Gross fees were $307 million, an increase of 16.9%, compared to the first quarter of 2024
• Adjusted EBITDA was $273 million, an increase of 5.4%, or an increase of 24.4% after adjusting for assets sold in 2024, compared to the first quarter of 2024
• Pipeline of executed management or franchise contracts was approximately 138,000 rooms
• Repurchased approximately 1.1 million shares of Class A common stock for an aggregate purchase price of $149 million

Full Year 2025 Outlook:

• Comparable system-wide hotels RevPAR growth is projected between 1% to 3%, compared to the full year 2024
• Net rooms growth is projected between 6% to 7%, compared to the full year 2024
• Net income is projected between $95 million and $150 million
• Adjusted EBITDA is projected between $1,080 million and $1,135 million, an increase of 6% to 12% after adjusting for assets sold in 2024, compared to the full year 2024
• Adjusted Free Cash Flow is projected between $450 million and $500 million, excluding approximately $117 million of cash taxes on asset sales and approximately $43 million of costs associated with the Playa Hotels Acquisition

Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "In the face of growing volatility in the economy and financial markets, we continue to deliver strong performance, highlighted by our first quarter results. As we look ahead, recent shifts in booking behavior—particularly in shorter-term demand—have led us to modestly revise our outlook for the remainder of the year. That said, we remain confident in the resilience of our asset-light business model, the strength of our brand portfolio, and our ability to adapt to evolving market conditions. We are excited about the momentum in our pipeline and the continued strong demand we're seeing for our brands around the world."

First Quarter Operational Commentary

• Business transient and group travel drove system-wide and United States RevPAR growth. The quarter was impacted by Easter, which took place in the second quarter, whereas the holiday fell in the first quarter last year.
• Gross fee growth of 17% in the quarter with properties from the Bahia Principe and Standard International Transactions contributing approximately $17 million, or 38%, of the total gross fee growth.
• Base management fees: increased 16%, driven by managed hotel RevPAR growth and the contribution of newly-opened hotels.
• Incentive management fees: grew 18%, led by newly-opened hotels, Americas all-inclusive resorts, favorable FX, and international hotels, notably in Asia Pacific (excluding Greater China).
• Franchise and other fees: expanded 17%, due to non-RevPAR fee contributions, RevPAR growth in the United States, and newly-opened hotels.
• Owned and leased segment Adjusted EBITDA grew 18% after adjusting for assets sold in 2024, compared to the first quarter of 2024. Comparable owned and leased margin increased by 70 bps in the first quarter compared to the same period in 2024.
• Excluding the impact of the UVC Transaction, distribution segment results improved by 10%, compared to the first quarter of 2024, from higher pricing, effective cost management, and favorable foreign currency exchange despite lower booking volumes in the quarter.

As of March 31, 2025, the Company reported the following:

• Total debt of $4.3 billion.
• Total liquidity of $3.3 billion, inclusive of:
• $1,805 million of cash and cash equivalents, and short-term investments, and
• $1,497 million of borrowing capacity under Hyatt's revolving credit facility, net of letters of credit outstanding.
• Total remaining share repurchase authorization of $822 million. During the first quarter, the Company repurchased a total of 1,078,511 shares of Class A common stock for approximately $149 million.
• During the first quarter, the Company repaid the outstanding $450 million of 5.375% senior notes due 2025 at maturity for approximately $460 million, inclusive of $10 million of accrued interest.
• The Company's board of directors has declared a cash dividend of $0.15 per share for the second quarter of 2025. The dividend is payable on June 11, 2025 to Class A and Class B stockholders of record as of May 29, 2025.