Hyatt Reports Q1 2025 Results

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CHICAGO, Illinois—Hyatt Hotels Corporation reported first-quarter 2025 results. Highlights include:

• Comparable system-wide hotels RevPAR increased 5.7 percent, compared to the first quarter of 2024
• Net rooms growth was 10.5 percent
• 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 percent, compared to the first quarter of 2024
• Adjusted EBITDA was $273 million, an increase of 5.4 percent, or an increase of 24.4 percent 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 percent to 3 percent, compared to the full year 2024
• Net rooms growth is projected between 6 percent to 7 percent, 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 percent to 12 percent 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 percent in the quarter with properties from the Bahia Principe and Standard International Transactions contributing approximately $17 million, or 38 percent, of the total gross fee growth.
  • Base management fees: increased 16 percent, driven by managed hotel RevPAR growth and the contribution of newly opened hotels.
  • Incentive management fees grew 18 percent, 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 percent, due to non-RevPAR fee contributions, RevPAR growth in the United States, and newly opened hotels.
• Owned and leased segment Adjusted EBITDA grew 18 percent 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 percent, 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.

Openings and Development

During the first quarter, the company:

• Opened 11,253 rooms, including:
  • The first Hyatt Studios property, Hyatt Studios Mobile / Tillmans Corner.
  • The Venetian Resort Las Vegas, with 7,092 rooms, which became available through Hyatt booking channels in January; these rooms were not included in the 2024 year-end pipeline figures.
  • Other notable openings: Andaz Doha, Hotel La Compañia del Valle, part of The Unbound Collection by Hyatt, and seven UrCove properties.
• Announced a new brand, Hyatt Select, an upper midscale, transient conversion brand designed to meet the needs of modern travelers while delivering an efficient, cost-effective model for owners.

Transactions

The company has provided the following updates on the planned Playa Hotels Acquisition:

• Continues to advance discussions for the sale of Playa’s real estate and expects to be in a position to enter into an agreement to sell that real estate in the near future.
• Announced on April 28, 2025, the extension of the tender offer period to 5:00 p.m., New York City time on May 23, 2025.
• Issued $500 million of 5.050 percent senior notes due 2028 and $500 million of 5.750 percent senior notes due 2032, and received approximately $990 million of net proceeds. The company intends to use the net proceeds to finance a portion of the Playa Hotels Acquisition.
• Entered into a credit agreement with a syndicate of lenders on April 11, 2025, for a $1.7 billion delayed draw term loan facility whereby proceeds will be used to finance the remaining portion of the Playa Hotels Acquisition.

Balance Sheet and Liquidity

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 percent senior notes due 2025 at maturity for approximately $460 million, inclusive of $10 million of accrued interest.

2025 Outlook

The company is providing the following updated outlook for the 2025 fiscal year:

¹ Refer to the tables on schedule A-10 for a reconciliation of estimated net income attributable to Hyatt Hotels Corporation to Adjusted EBITDA, G&A expenses to Adjusted G&A Expenses, and net cash provided by operating activities to Free Cash Flow and Adjusted Free Cash Flow.

² Adjusted EBITDA outlook growth excludes the $80 million contribution from sold assets in 2024. Refer to the tables on schedule A-9 for further details.

• Our outlook for system-wide RevPAR implies a balance of year growth of 0 percent at the low end of our range and 2 percent at the high end of our range, and reflects a continuation of booking trends seen during the past four weeks.
• Net income outlook projected year-over-year decline is driven by 2024 gains on sale of real estate that are not expected to repeat at the same levels in 2025.
• Adjusted EBITDA outlook is projected between $1,080 million – $1,135 million, growing between 6 percent to 12 percent compared to the full year 2024 after adjusting for assets sold in 2024.
• Adjusted Free Cash Flow growth compared to full year 2024 is impacted by elevated levels of interest expense and cash taxes.
• While the company is not providing an outlook for capital returns to shareholders at this time due to the planned Playa Hotels Acquisition, Hyatt remains committed to its capital allocation strategy, including returning capital to shareholders through a combination of quarterly dividends and share repurchases.