Hyatt Hotels Corp. has already made noise in 2025 with its its acquisition of Playa Hotels and Resorts. Last year wasn’t too shabby, either.
Net rooms grew 7.8% for the full year of 2024, in line with its outlook, while system-wide RevPAR in Q4 increased 5%, with full-year RevPAR growth of 4.6%. The company reported that high-end consumers continue to prioritize travel, with Hyatt’s luxury brands driving the strongest growth. Leisure transient rooms revenue increased by 4% in Q4, while business transient revenue saw a significant 10% rise.
Still, Hyatt reported a loss of $56 million in its fourth quarter. For the year, the company reported profit of $1.3 billion.
Hyatt expects performance in the first quarter of 2025 to be “at or above the high end of our full-year guidance,” despite an anticipated $40 million negative impact on adjusted EBITDA due to completed real estate dispositions in 2024.
“We continue to see our large corporate customers back on the road, driving an increase in both demand and average rate,” said Mark Hoplamazian, president and CEO of Hyatt.
Hyatt also achieved record growth in its loyalty program, World of Hyatt, which reached 54 million members by the end of 2024, a 22% year-over-year increase. “Since launching in 2017, we have grown our loyalty membership base on average by 27% per year. Our relationship with our members is more than a transaction. We are committed to caring for them so they can be their best.”
Acquisitions and Asset-light Expansion
Hyatt’s acquisition of Playa Hotels and Resorts for $2.6 billion, including $900 million in debt net of cash, is expected to strengthen Hyatt’s presence in the all-inclusive market through long-term management agreements for Hyatt Ziva and Hyatt Zilara properties.
Hoplamazian reaffirmed the company’s commitment to an asset-light strategy, noting, “At closing, we expect to announce a new commitment to realize at least $2 billion in proceeds by the end of 2027, ensuring our asset-light earnings mix exceeds 90% by that time.”
Hyatt also finalized its acquisition of Standard International and a 50% joint venture with Grupo Piñero to manage Bahia Príncipe Hotels & Resorts.
Additionally, Hyatt sold the Hyatt Regency O’Hare in Chicago and its stake in the Park Hyatt Los Cabos Hotel and Residences, while retaining long-term management agreements. Some of the notable openings in the fourth quarter included the Park Hyatt London, River Thames, Grand Hyatt Deer Valley and the Thompson Palm Springs.
Talking about Hyatt’s further appetite for M&A, Hoplamazian said that things will “calm down” after the Playa deal.
“We feel really good about the brand portfolio that we currently have and we are focusing our attention on optimization. That’s part of the rationale behind the brand organization.”
Pipeline Expansion
The company’s development pipeline expanded to approximately 138,000 rooms in Q4, reflecting a 9% year-over-year jump. Notably, the Venetian Resort Las Vegas joined the Hyatt system in January 2025, adding 7,100 rooms and bringing Hyatt’s total Las Vegas footprint to nearly 10,000 rooms.
“We achieved net rooms growth of 7.8% in 2024, marking the eighth consecutive year of industry-leading expansion,” Hoplamazian said.
Looking ahead, Hyatt projects strong group business for 2025, with group room revenue pacing 7% higher than 2024. Business transient revenue, the fastest-growing segment, was up 12% in 2024, benefiting major urban markets like New York, Washington D.C. and Seattle.
Lindner Group Insolvency
Hyatt acknowledged the insolvency filing of a franchisee associated with the Lindner Group in Germany. The company has taken a cautious approach by factoring potential attrition into its net rooms growth outlook.
“We believe this is a very conservative assumption given that these types of proceedings generally focus on structuring a viable path forward,” Hoplamazian said. “None of the affected hotels have ceased operations and the family along with third-party appointees are actively working through the process.”
The affected properties represent over 2,000 rooms, but Hyatt remains confident in their overall growth trajectory.
Future Outlook
Hyatt remains focused on growing its luxury, lifestyle and all-inclusive segments while expanding its upper mid-scale brands like Caption by Hyatt and UrCove.
“We expect to continue to grow at a healthy pace with well-defined brands and organic growth from our record pipeline,” said Hoplamazian.
As Hyatt continues to scale its brand footprint, the company remains confident in delivering strong financial returns and increased shareholder value. This provides more opportunities in more places for its members and guests, driving further loyalty to Hyatt and better performance for its owners.
