CHICAGO, Illinois—Hyatt Hotels Corporation reported its second-quarter 2025 results.
Highlights include:
- Comparable system-wide hotels RevPAR increased 1.6 percent, compared to the second quarter of 2024
- Net rooms growth was 11.8 percent, and net rooms growth excluding acquisitions was 6.5 percent
- Net Income (loss) attributable to Hyatt Hotels Corporation was $(3) million, and adjusted net income was $66 million
- Diluted EPS was $(0.03), and Adjusted Diluted EPS was $0.68
- Gross fees were $301 million, an increase of 9.5 percent, compared to the second quarter of 2024
- Adjusted EBITDA was $303 million, a decrease of 1.1 percent, compared to the second quarter of 2024, or an increase of 9.0 percent after adjusting for assets sold in 2024
- The pipeline of executed management or franchise contracts was approximately 140,000 rooms, an increase of approximately 8 percent, compared to the second quarter of 2024
- Full Year 2025 Outlook: The following metrics do not include the impact of the Playa Hotels Acquisition and the pending Playa Real Estate Transaction.
- Comparable system-wide hotels RevPAR growth is projected between 1 percent to 3 percent, compared to the full year 2024
- Net rooms growth excluding acquisitions is projected between 6 percent and 7 percent, compared to the full year 2024
- Net income is projected between $135 million and $165 million
- Adjusted EBITDA is projected between $1,085 million and $1,130 million, an increase of 7 percent and 11 percent after adjusting for assets sold in 2024, compared to the full year 2024
- Capital Returns to Shareholders is projected to be approximately $300 million, through a combination of dividends and share repurchases
Mark S. Hoplamazian, president and chief executive officer of Hyatt, said, “The second quarter’s results reflect solid performance across our business, including strong fee contribution in a lower RevPAR growth environment. As we look ahead, we are encouraged by recent booking trends, leaving us optimistic about improving performance in the fourth quarter and into next year. We are confident that we will continue to deliver strong financial results as we leverage our brand-led strategy and long history of industry-leading net rooms growth.”
Hoplamazian continued, “The Playa transactions, including the agreement to sell the entirety of Playa’s real estate portfolio, reinforce our commitment to our asset-light business model and solidifies our leadership in the fast-growing luxury all-inclusive segment. The acquisition and planned disposition of the Playa real estate portfolio, at an attractive multiple, allows us to once again create highly durable fees and long-term value for shareholders.”
Second Quarter Operational Commentary
- Luxury chain scales drove RevPAR growth in the second quarter, while select service hotels in the United States saw RevPAR decline compared to the second quarter of 2024. RevPAR growth was negatively impacted by 60 bps due to the timing of the Easter holiday in the second quarter, which fell in the first quarter last year.
- Gross fees increased 10 percent in the quarter, compared to the second quarter last year, with properties from the Bahia Principe and Standard International Transactions contributing approximately $11 million, or approximately 42 percent of the total gross fees growth.
- Base management fees: increased 13 percent, driven by managed hotel RevPAR growth and the contribution of newly-opened hotels.
- Incentive management fees: grew 15 percent, led by newly-opened hotels, all-inclusive resorts’ performance, United States resorts, and favorable foreign currency exchange rates.
- Franchise and other fees: expanded 4 percent, due to non-RevPAR fee contributions and newly-opened hotels.
- Owned and leased segment Adjusted EBITDA increased 1 percent, compared to the second quarter of 2024, after adjusting for assets sold in 2024 and the impact of the Playa Hotels Acquisition. Comparable owned and leased margin decreased by 170 bps in the second quarter, compared to the same period in 2024.
- Distribution segment Adjusted EBITDA was flat, compared to the second quarter of 2024, as higher pricing, effective cost management, and favorable foreign currency exchange offset lower booking volumes.
Openings and Development
During the second quarter, the company:
- Opened 8,920 rooms, inclusive of approximately 2,600 rooms associated with the Playa Hotels Acquisition. Notable openings included:
- Hyatt Regency Zadar, Hyatt’s first property in Croatia; Dreams Rose Hall Resort & Spa; Zélia Halkidiki, a Destination by Hyatt hotel; and AluaSoul Sunny Beach.
- Announced a new upscale brand, Unscripted by Hyatt, which is designed to unlock growth through adaptive reuse and conversion-friendly opportunities
Transactions
The company has provided the following updates on the Playa Hotels Acquisition and Playa Real Estate Transaction:
- Announced the completion of the Playa Hotels Acquisition for $2.6 billion on June 17, 2025.
- Announced entry into a definitive agreement with Tortuga Resorts, a joint venture between an affiliate of KSL Capital Partners, LLC, and Rodina, to sell the entirety of the real estate portfolio acquired as part of the Playa Hotels Acquisition for $2.0 billion on June 30, 2025. Concurrent with the sale, which is expected to close before the end of 2025, the company will enter into 50-year management agreements for 13 of the 15 resorts.
- The company is required to use the proceeds from the Playa Real Estate Transaction to repay the $1.7 billion delayed draw term loan used to fund a portion of the Playa Hotels Acquisition.
Balance Sheet and Liquidity
As of June 30, 2025, the company reported the following:
- Total debt of $6.0 billion, inclusive of the $1.7 billion delayed draw term loan facility.
- Total liquidity of $2.4 billion, inclusive of:
- $912 million of cash and cash equivalents and short-term investments
- $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. The company did not repurchase any shares of Class A common stock during the second quarter.
- The company’s board of directors has declared a cash dividend of $0.15 per share for the third quarter of 2025. The dividend is payable on September 10, 2025, to Class A and Class B stockholders of record as of August 27, 2025
