Hyatt Hotels (NYSE:H) executives said the company finished 2025 with “momentum” despite a “dynamic macroeconomic environment,” pointing to continued strength in luxury and international travel, a growing loyalty base, and what management described as a now “fully transformed” asset-light model.
Fourth-quarter demand trends led by luxury and leisure
On the call, President and CEO Mark Hoplamazian said Hyatt reported fourth-quarter system-wide RevPAR growth of 4%, driven by luxury brands. Leisure transient RevPAR increased about 6% year over year, including 9% growth across luxury brands.
CFO Joan Bottarini added that in the U.S., RevPAR rose 0.5%, with full-service RevPAR up 2% and select-service RevPAR down as business transient softened. Outside the U.S., she said performance remained strong, led by leisure travel. Asia Pacific excluding Greater China posted RevPAR growth of more than 13% on inbound international travel, while Greater China recorded its strongest quarterly RevPAR growth of the year with domestic travel up mid-single digits. Bottarini also cited continued strength in Europe supported by high-end leisure demand.
Hyatt’s all-inclusive resorts “finished an exceptional year,” Bottarini said, with Net Package RevPAR up 8.3% versus the fourth quarter of 2024, reflecting strong performance in both the Americas and Europe.
Loyalty growth and engagement highlighted
Hoplamazian emphasized “exceptional engagement” from World of Hyatt members, calling loyalty a key driver of commercial performance. He said Hyatt ended 2025 with more than 63 million members, up 19% versus the end of 2024, and that members accounted for nearly half of total occupied rooms globally in 2025.
He also said room nights from members staying 50 or more nights grew 13% during 2025, which management framed as evidence that loyalty is driving “higher value demand,” particularly among frequent guests.
Development pipeline expands as new brands gain traction
Hoplamazian said Hyatt delivered net rooms growth of 7.3% in 2025, marking what he described as industry-leading growth for the ninth consecutive year. Excluding acquisitions, net rooms growth was 6.7%, which he said represented an acceleration versus 2024.
During the fourth quarter, Hyatt surpassed 1,500 open hotels and resorts globally. Hoplamazian cited openings including Park Hyatt Cabo del Sol and Andaz One Bangkok, and said newer upper-midscale brands began to make an impact with the second Hyatt Studios opening and the debut of the first Hyatt Select hotels in the U.S.
Hyatt ended 2025 with a record development pipeline of about 148,000 rooms, up more than 7% from the end of 2024. Hoplamazian said the U.S. posted its strongest year of signings in five years, with 50% of signings in markets where Hyatt does not currently have a brand presence. He added that Unscripted by Hyatt, Hyatt Studios, and Hyatt Select accounted for nearly two-thirds of U.S. signings.
In Q&A, Hoplamazian reiterated he still feels “glass is half full” about growth, citing momentum in newly launched brands. He said Hyatt Select expanded from nine hotels to 32 in the pipeline and described the mix of new construction and conversions. He also said Hyatt Studios increased projects under construction and under design, while Unscripted moved “from nothing” to eight open and eight in the pipeline. Hoplamazian also highlighted UrCove’s scale, saying Hyatt had 72 open by year-end with 93 in the pipeline.
Asked about portfolio deals, he said Hyatt continues to evaluate them but wants deeper relationships—management or franchise—rather than simple affiliations, and noted Europe full service remains a focus.
Asset-light transactions and capital allocation
Hoplamazian highlighted the sale of the remaining 14 hotels in the Playa portfolio to Tortuga Resorts for approximately $2 billion, along with long-term management agreements for 13 properties. He said the transaction strengthens Hyatt’s position in luxury all-inclusive offerings and advances an “asset-light platform.” Hyatt also completed the sale of three Alua properties in Spain acquired in late 2024, again entering long-term management agreements.
Management said Hyatt has three additional hotels under purchase and sale agreements expected to close in the second quarter of 2026, subject to conditions, and is evaluating other potential asset sales. Hoplamazian said that since its 2017 asset sell-down commitment, Hyatt has generated over $5.7 billion of real estate disposition proceeds and invested about $4.4 billion into asset-light platforms, while returning $4.8 billion to shareholders over the period. He said Hyatt expects asset-light earnings to be 90% in 2026.
Fees, profitability, balance sheet actions, and 2026 outlook
Bottarini reported fourth-quarter gross fees increased about 5% to $307 million, and full-year gross fees rose 9% to $1.198 billion. She said organic gross fees have grown by almost 8% on a compounded annual basis from 2017 through 2025.
She said owned and leased segment adjusted EBITDA declined about 2% in the quarter after adjusting for asset sales and the Playa transaction. Distribution segment adjusted EBITDA declined due to Hurricane Melissa and lower booking volumes from four-star-and-below hotels. For the full year, adjusted EBITDA increased more than 7% after adjusting for assets sold in 2024 and Playa-owned hotel earnings.
Hyatt ended 2025 with about $2.3 billion of liquidity, including $1.5 billion of revolver capacity. Bottarini said the company repaid notes due in 2026, issued $400 million of notes due in 2035, and used proceeds from the Playa real estate sale to repay the outstanding balance on a $1.7 billion delayed draw term loan. Hyatt repurchased $114 million of Class A common stock in the quarter and returned about $350 million to shareholders in 2025 through repurchases and dividends, ending the year with $678 million remaining under its authorization.
Bottarini also said Hyatt will update its definition of Adjusted EBITDA beginning in the first quarter of 2026 to exclude pro rata owned and leased Adjusted EBITDA from unconsolidated joint ventures, citing alignment with peers and the company’s evolving strategy.
For 2026, management guided to system-wide RevPAR growth of 1% to 3%, with the U.S. expected at 1% to 2% led by full-service hotels. Hyatt expects net rooms growth of 6% to 7% and gross fees of $1.295 billion to $1.335 billion (8% to 11% growth), reflecting contributions from Playa hotels, temporarily closed hotels in Jamaica, and foreign exchange headwinds from Mexico. Adjusted EBITDA is expected in a range of $1.155 billion to $1.205 billion, representing 13% to 18% growth after adjusting for the removal of pro rata JV EBITDA and asset sales. Adjusted free cash flow is expected at $580 million to $630 million, and Hyatt expects to return $325 million to $375 million to shareholders through repurchases and dividends.
In Q&A, Bottarini said the company has business interruption insurance related to Hurricane Melissa, but the timing and amount of proceeds are still uncertain and were not included in the outlook.
Management also discussed early 2026 trends. Bottarini said group pace for U.S. full-service hotels is up mid-single digits for the year and could benefit from large-scale events such as the World Cup, while all-inclusive pace in the Americas is up over 9% in the first quarter. Responding to questions on first-quarter RevPAR expectations, Hyatt said January was coming in at the high end of its range, with package RevPAR strong and business transient slightly improved but still “a little bit flat” in January, with firmer near-term pace in February and March.
About Hyatt Hotels (NYSE:H)
Hyatt Hotels Corporation (NYSE: H) is a global hospitality company that develops, owns, manages and franchises luxury and business hotels, resorts and vacation properties. Its portfolio spans a range of price points and styles under brands such as Park Hyatt, Grand Hyatt, Andaz, Hyatt Regency, Hyatt Centric, Hyatt Place, Hyatt House, Thompson Hotels, Alila and Destination by Hyatt. In addition to accommodations, the company provides meeting and event spaces, food and beverage outlets, spa and wellness centers, and a variety of guest services designed to cater to both leisure and business travelers.
Hyatt’s business model combines property ownership, management contracts and third-party franchising.
