Hyatt Q2 Earnings & Revenues Beat, System-Wide Hotel RevPAR Up Y/Y

Hyatt Hotels Corporation H delivered better-than-expected second-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate. On a year-over-year basis, the top line grew, while the bottom line tumbled.
    
The quarter’s results reflect continued strong-demand trends across the company’s globally diversified brand offerings. Its focus on an asset-light business model and pipeline momentum positions it to adapt to uncertain market conditions and ensure improvements throughout the year and beyond.

Following the results, the company’s shares moved up 6.6% during today’s pre-market trading session.

Hyatt’s Q2 Earnings & Revenue Discussion

Hyatt reported adjusted earnings per share (EPS) of 68 cents, beating the Zacks Consensus Estimate of 66 cents by 3%. In the year-ago quarter, the company reported an adjusted EPS of 1.53 cents.

Revenues of $1.808 billion topped the consensus mark of $1.741 billion by 3.9% and inched up 6.2% on a year-over-year basis.

Hyatt Hotels Corporation Price, Consensus and EPS Surprise

Hyatt Hotels Corporation price-consensus-eps-surprise-chart | Hyatt Hotels Corporation Quote

During the quarter, H witnessed a 3.2% decline in Owned and Leased revenues to $304 million. Distribution revenues also declined 5.8% to $262 million. However, the company witnessed a 10% year-over-year growth in Other revenues.

Net fees increased 10.4% year over year to $286 million.  Revenues for reimbursed costs grew 12.2% to $945 million from $842 million reported in the prior-year quarter. 

The company reported a 1.6% increase in comparable system-wide hotel RevPAR (revenue per available room) compared with the same period in 2024. Comparable system-wide all-inclusive resorts’ Net Package RevPAR rose 8.6% year over year. Luxury chain scales supported RevPAR growth.

Hyatt’s Operating Highlights

Adjusted EBITDA was $303 million, down 1.1% year over year (but up 9% after adjusting for assets sold in 2024). Our model predicted the metric to be $298.2 million.

Adjusted EBITDA of Management and Franchising increased year over year by 7.2% and 25.6%, respectively, to $238 million. The Distribution segment’s adjusted EBITDA remained flat year over year. On the other hand, the Owned and Leased segment’s adjusted EBITDA decreased 19% year over year to $64 million.

Balance Sheet of Hyatt

As of June 30, 2025, Hyatt reported cash and cash equivalents of $912 million compared with $1.383 billion at 2024-end. Total liquidity was $2.4 billion at the second-quarter end. Total debt as of June 30, 2025, was $6 billion, up from $3.78 billion at 2024-end.

Other Business Updates of Hyatt

Regarding hotel openings, 8,920 rooms joined Hyatt's system in the second quarter. As of June 30, 2025, the company had a pipeline of executed management or franchise contracts for approximately 140,000 rooms.

Hyatt’s 2025 Outlook Revised

For 2025, the company continues to expect adjusted general and administrative expenses to be between $450 million and $460 million, up 1-4% year over year. Capital expenditures are anticipated to be about $150 million. Net rooms growth is still anticipated to be between 6% and 7% year over year.

Management now anticipates 2025 system-wide RevPAR to rise 1-3% from the 2024 level. Adjusted EBITDA is expected to be in the band of $1.085-$1.130 billion, up 7-11% year over year. The company still expects adjusted free cash flow to be in the range of $450-$500 million, down 17-7% year over year.

H’s Zacks Rank & Key Picks

Hyatt currently has a Zacks Rank #3 (Hold). 

Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc CCL, Monarch Casino & Resort, Inc. MCRI and Planet Fitness, Inc. PLNT.

Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 20.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.9% and 40.9%, respectively, from the year-ago levels.
 
Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 28.5% in the year-to-date period.
 
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.

Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 11.6% in the year-to-date period.
 
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.5% and 12.4%, respectively, from the year-ago period’s levels.

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This article originally published on Zacks Investment Research (zacks.com).

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