CHICAGO, Illinois—Hyatt Motels Company reported its second-quarter 2025 outcomes.
Highlights embrace:
- Comparable system-wide lodges RevPAR elevated 1.6 p.c, in comparison with the second quarter of 2024
- Web rooms progress was 11.8 p.c, and web rooms progress excluding acquisitions was 6.5 p.c
- Web Earnings (loss) attributable to Hyatt Motels Company was $(3) million, and adjusted web revenue was $66 million
- Diluted EPS was $(0.03), and Adjusted Diluted EPS was $0.68
- Gross charges had been $301 million, a rise of 9.5 p.c, in comparison with the second quarter of 2024
- Adjusted EBITDA was $303 million, a lower of 1.1 p.c, in comparison with the second quarter of 2024, or a rise of 9.0 p.c after adjusting for belongings bought in 2024
- The pipeline of executed administration or franchise contracts was roughly 140,000 rooms, a rise of roughly 8 p.c, in comparison with the second quarter of 2024
- Full 12 months 2025 Outlook: The next metrics don’t embrace the influence of the Playa Motels Acquisition and the pending Playa Actual Property Transaction.
- Comparable system-wide lodges RevPAR progress is projected between 1 p.c to three p.c, in comparison with the total 12 months 2024
- Web rooms progress excluding acquisitions is projected between 6 p.c and seven p.c, in comparison with the total 12 months 2024
- Web revenue is projected between $135 million and $165 million
- Adjusted EBITDA is projected between $1,085 million and $1,130 million, a rise of seven p.c and 11 p.c after adjusting for belongings bought in 2024, in comparison with the total 12 months 2024
- Capital Returns to Shareholders is projected to be roughly $300 million, by means of a mix of dividends and share repurchases
Mark S. Hoplamazian, president and chief govt officer of Hyatt, stated, “The second quarter’s outcomes mirror strong efficiency throughout our enterprise, together with sturdy price contribution in a decrease RevPAR progress surroundings. As we glance forward, we’re inspired by latest reserving developments, leaving us optimistic about enhancing efficiency within the fourth quarter and into subsequent 12 months. We’re assured that we are going to proceed to ship sturdy monetary outcomes as we leverage our brand-led technique and lengthy historical past of industry-leading web rooms progress.”
Hoplamazian continued, “The Playa transactions, together with the settlement to promote the whole lot of Playa’s actual property portfolio, reinforce our dedication to our asset-light enterprise mannequin and solidifies our management within the fast-growing luxurious all-inclusive section. The acquisition and deliberate disposition of the Playa actual property portfolio, at a beautiful a number of, permits us to as soon as once more create extremely sturdy charges and long-term worth for shareholders.”
Second Quarter Operational Commentary
- Luxurious chain scales drove RevPAR progress within the second quarter, whereas choose service lodges in the USA noticed RevPAR decline in comparison with the second quarter of 2024. RevPAR progress was negatively impacted by 60 bps because of the timing of the Easter vacation within the second quarter, which fell within the first quarter final 12 months.
- Gross charges elevated 10 p.c within the quarter, in comparison with the second quarter final 12 months, with properties from the Bahia Principe and Customary Worldwide Transactions contributing roughly $11 million, or roughly 42 p.c of the overall gross charges progress.
- Base administration charges: elevated 13 p.c, pushed by managed resort RevPAR progress and the contribution of newly-opened lodges.
- Incentive administration charges: grew 15 p.c, led by newly-opened lodges, all-inclusive resorts’ efficiency, United States resorts, and favorable international forex alternate charges.
- Franchise and different charges: expanded 4 p.c, resulting from non-RevPAR price contributions and newly-opened lodges.
- Owned and leased section Adjusted EBITDA elevated 1 p.c, in comparison with the second quarter of 2024, after adjusting for belongings bought in 2024 and the influence of the Playa Motels Acquisition. Comparable owned and leased margin decreased by 170 bps within the second quarter, in comparison with the identical interval in 2024.
- Distribution section Adjusted EBITDA was flat, in comparison with the second quarter of 2024, as larger pricing, efficient price administration, and favorable international forex alternate offset decrease reserving volumes.
Openings and Growth
In the course of the second quarter, the corporate:
- Opened 8,920 rooms, inclusive of roughly 2,600 rooms related to the Playa Motels Acquisition. Notable openings included:
- Hyatt Regency Zadar, Hyatt’s first property in Croatia; Goals Rose Corridor Resort & Spa; Zélia Halkidiki, a Vacation spot by Hyatt resort; and AluaSoul Sunny Seaside.
- Introduced a brand new upscale model, Unscripted by Hyatt, which is designed to unlock progress by means of adaptive reuse and conversion-friendly alternatives
Transactions
The corporate has supplied the next updates on the Playa Motels Acquisition and Playa Actual Property Transaction:
- Introduced the completion of the Playa Motels Acquisition for $2.6 billion on June 17, 2025.
- Introduced entry right into a definitive settlement with Tortuga Resorts, a three way partnership between an affiliate of KSL Capital Companions, LLC, and Rodina, to promote the whole lot of the true property portfolio acquired as a part of the Playa Motels Acquisition for $2.0 billion on June 30, 2025. Concurrent with the sale, which is anticipated to shut earlier than the tip of 2025, the corporate will enter into 50-year administration agreements for 13 of the 15 resorts.
- The corporate is required to make use of the proceeds from the Playa Actual Property Transaction to repay the $1.7 billion delayed draw time period mortgage used to fund a portion of the Playa Motels Acquisition.
Stability Sheet and Liquidity
As of June 30, 2025, the corporate reported the next:
- Complete debt of $6.0 billion, inclusive of the $1.7 billion delayed draw time period mortgage facility.
- Complete liquidity of $2.4 billion, inclusive of:
- $912 million of money and money equivalents and short-term investments
- $1,497 million of borrowing capability underneath Hyatt’s revolving credit score facility, web of letters of credit score excellent.
- Complete remaining share repurchase authorization of $822 million. The corporate didn’t repurchase any shares of Class A standard inventory throughout the second quarter.
- The corporate’s board of administrators has declared a money 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 document as of August 27, 2025
