Hyatt Hotels Corporation

Hyatt reported second-quarter system-wide RevPAR growth of 5.9% year over year, with U.S. RevPAR up 6.7%, outside the U.S. RevPAR up nearly 5% (and 7.5% excluding the Middle East), Greater China up 7.2%, and Asia Pacific excluding Greater China up more than 10%. Gross fees increased 8% to $324 million. Adjusted EBITDA was up approximately 9% year over year after adjusting for asset sales; owned and leased segment adjusted EBITDA increased 16% after adjusting for asset sales. World of Hyatt membership ended at approximately 69 million, up 17% year over year, and the development pipeline reached approximately 154,000 rooms, up 10%. For the full year, Hyatt raised system-wide RevPAR growth outlook to 3.5%–4.5%, expects U.S. RevPAR growth of 3%–4%, net rooms growth of approximately 6%, gross fees of $1.305 billion to $1.335 billion (up 9%–11%), adjusted EBITDA of $1.155 billion to $1.205 billion (up 13%–18%), adjusted free cash flow of $580 million to $630 million (up 20%–30%), and capital returns of $325 million to $375 million. For Q3, management expects global RevPAR growth toward the low end of the full-year range, net package RevPAR moderately below last year, and gross fees to grow in the high-single-digit range.

Mark Hoplamazian framed the quarter as proof that Hyatt’s more asset-light model is working: premium demand, strong loyalty growth, and a record pipeline are translating into fee growth and cash generation. He repeatedly emphasized that luxury and leisure are driving share gains and said Hyatt’s brands are outperforming across regions. His tone was confident and emphatic, especially on long-term organic growth, with repeated comments that the company is highly confident in the Investor Day framework and momentum into 2027.

Joan Bottarini highlighted the financial strength of the core fee business, citing gross fees of $324 million, adjusted EBITDA up about 9% year over year after asset-sale adjustments, and total liquidity of about $2.1 billion, including $1.5 billion of revolver capacity. She said year to date Hyatt returned about $175 million to shareholders, with about $26 million in Q2, and still has about $1.5 billion remaining under its share repurchase authorization. On guidance, she noted Middle East hotel revenue is still expected to reduce full-year fees by about $10 million, Mexico is now expected to create about a $15 million fee impact versus prior outlook, and distribution segment EBITDA will be about $25 million lower year over year. Despite that, she maintained full-year EBITDA, fee, free cash flow, and capital return guidance.

Analysts focused on the net rooms growth reset, U.S. RevPAR pace, and weak Q2 buybacks. Management said some openings shifted later because conversion projects are taking longer than expected and many openings are concentrated in Q4, with some potentially slipping into 2027; they also reiterated the 6%–8% long-term net rooms growth target and stressed that fee growth matters more than rooms growth. On demand, they said group booking windows are broadly stable, business transient remains short-term, and leisure booking windows are mostly unchanged, while Mexico/Cancun is improving sequentially but still below prior expectations. On capital returns, Joan said Q2 buybacks were low partly because the company was effectively locked out around Investor Day timing, but full-year capital return guidance remains unchanged.