Hyatt Experiences Q1 2025 Outcomes

CHICAGO, Illinois—Hyatt Inns Company reported first-quarter 2025 outcomes. Highlights embody:

• Comparable system-wide motels RevPAR elevated 5.7 p.c, in comparison with the primary quarter of 2024
• Web rooms development was 10.5 p.c
• Web revenue attributable to Hyatt Inns Company was $20 million, and Adjusted Web Earnings was $46 million
• Diluted EPS was $0.19, and Adjusted Diluted EPS was $0.46
• Gross charges had been $307 million, a rise of 16.9 p.c, in comparison with the primary quarter of 2024
• Adjusted EBITDA was $273 million, a rise of 5.4 p.c, or a rise of 24.4 p.c after adjusting for belongings offered in 2024, in comparison with the primary quarter of 2024
• Pipeline of executed administration or franchise contracts was roughly 138,000 rooms
• Repurchased roughly 1.1 million shares of Class A typical inventory for an combination buy worth of $149 million

Full Yr 2025 Outlook:

• Comparable system-wide motels RevPAR development is projected between 1 p.c to three p.c, in comparison with the complete yr 2024
• Web rooms development is projected between 6 p.c to 7 p.c, in comparison with the complete yr 2024
• Web revenue is projected between $95 million and $150 million
• Adjusted EBITDA is projected between $1,080 million and $1,135 million, a rise of 6 p.c to 12 p.c after adjusting for belongings offered in 2024, in comparison with the complete yr 2024
• Adjusted Free Money Movement is projected between $450 million and $500 million, excluding roughly $117 million of money taxes on asset gross sales and roughly $43 million of prices related to the Playa Inns Acquisition

Mark S. Hoplamazian, president and chief government officer of Hyatt, stated, “Within the face of rising volatility within the financial system and monetary markets, we proceed to ship sturdy efficiency, highlighted by our first quarter outcomes. As we glance forward, latest shifts in reserving habits—notably in shorter-term demand—have led us to modestly revise our outlook for the rest of the yr. That stated, we stay assured within the resilience of our asset-light enterprise mannequin, the power of our model portfolio, and our means to adapt to evolving market circumstances. We’re excited concerning the momentum in our pipeline and the continued sturdy demand we’re seeing for our manufacturers world wide.”

First Quarter Operational Commentary

• Enterprise transient and group journey drove system-wide and United States RevPAR development. The quarter was impacted by Easter, which came about within the second quarter, whereas the vacation fell within the first quarter final yr.
• Gross payment development of 17 p.c within the quarter with properties from the Bahia Principe and Customary Worldwide Transactions contributing roughly $17 million, or 38 p.c, of the full gross payment development.
  • Base administration charges: elevated 16 p.c, pushed by managed resort RevPAR development and the contribution of newly opened motels.
  • Incentive administration charges grew 18 p.c, led by newly opened motels, Americas all-inclusive resorts, favorable FX, and worldwide motels, notably in Asia Pacific (excluding Larger China).
  • Franchise and different charges: expanded 17 p.c, on account of non-RevPAR payment contributions, RevPAR development in america, and newly opened motels.
• Owned and leased phase Adjusted EBITDA grew 18 p.c after adjusting for belongings offered in 2024, in comparison with the primary quarter of 2024. Comparable owned and leased margin elevated by 70 bps within the first quarter in comparison with the identical interval in 2024.
• Excluding the influence of the UVC Transaction, distribution phase outcomes improved by 10 p.c, in comparison with the primary quarter of 2024, from larger pricing, efficient value administration, and favorable overseas foreign money alternate regardless of decrease reserving volumes within the quarter.

Openings and Growth

Throughout the first quarter, the corporate:

• Opened 11,253 rooms, together with:
  • The primary Hyatt Studios property, Hyatt Studios Cell / Tillmans Nook.
  • The Venetian Resort Las Vegas, with 7,092 rooms, which grew to become accessible by way of Hyatt reserving channels in January; these rooms weren’t included within the 2024 year-end pipeline figures.
  • Different notable openings: Andaz Doha, Lodge La Compañia del Valle, a part of The Unbound Assortment by Hyatt, and 7 UrCove properties.
• Introduced a brand new model, Hyatt Choose, an higher midscale, transient conversion model designed to satisfy the wants of contemporary vacationers whereas delivering an environment friendly, cost-effective mannequin for homeowners.

Transactions

The corporate has offered the next updates on the deliberate Playa Inns Acquisition:

• Continues to advance discussions for the sale of Playa’s actual property and expects to be able to enter into an settlement to promote that actual property within the close to future.
• Introduced on April 28, 2025, the extension of the tender supply interval to five:00 p.m., New York Metropolis time on Could 23, 2025.
• Issued $500 million of 5.050 p.c senior notes due 2028 and $500 million of 5.750 p.c senior notes due 2032, and obtained roughly $990 million of internet proceeds. The corporate intends to make use of the online proceeds to finance a portion of the Playa Inns Acquisition.
• Entered right into a credit score settlement with a syndicate of lenders on April 11, 2025, for a $1.7 billion delayed draw time period mortgage facility whereby proceeds will probably be used to finance the remaining portion of the Playa Inns Acquisition.

Stability Sheet and Liquidity

As of March 31, 2025, the corporate reported the next:

• Complete debt of $4.3 billion.
• Complete liquidity of $3.3 billion, inclusive of:
  • $1,805 million of money and money equivalents, and short-term investments, and
  • $1,497 million of borrowing capability underneath Hyatt’s revolving credit score facility, internet of letters of credit score excellent.
• Complete remaining share repurchase authorization of $822 million. Throughout the first quarter, the corporate repurchased a complete of 1,078,511 shares of Class A typical inventory for roughly $149 million.
• Throughout the first quarter, the corporate repaid the excellent $450 million of 5.375 p.c senior notes due 2025 at maturity for roughly $460 million, inclusive of $10 million of accrued curiosity.

2025 Outlook

The corporate is offering the next up to date outlook for the 2025 fiscal yr:

¹ Check with the tables on schedule A-10 for a reconciliation of estimated internet revenue attributable to Hyatt Inns Company to Adjusted EBITDA, G&A bills to Adjusted G&A Bills, and internet money offered by working actions to Free Money Movement and Adjusted Free Money Movement.

² Adjusted EBITDA outlook development excludes the $80 million contribution from offered belongings in 2024. Check with the tables on schedule A-9 for additional particulars.

• Our outlook for system-wide RevPAR implies a steadiness of yr development of 0 p.c on the low finish of our vary and a couple of p.c on the excessive finish of our vary, and displays a continuation of reserving traits seen in the course of the previous 4 weeks.
• Web revenue outlook projected year-over-year decline is pushed by 2024 beneficial properties on sale of actual property that aren’t anticipated to repeat on the similar ranges in 2025.
• Adjusted EBITDA outlook is projected between $1,080 million – $1,135 million, rising between 6 p.c to 12 p.c in comparison with the complete yr 2024 after adjusting for belongings offered in 2024.
• Adjusted Free Money Movement development in comparison with full yr 2024 is impacted by elevated ranges of curiosity expense and money taxes.
• Whereas the corporate shouldn’t be offering an outlook for capital returns to shareholders presently as a result of deliberate Playa Inns Acquisition, Hyatt stays dedicated to its capital allocation technique, together with returning capital to shareholders by way of a mixture of quarterly dividends and share repurchases.