Hyatt Q4 Earnings Beat, Revenues Lag Estimates, Stock Down

Hyatt Hotels Corporation H has delivered fourth-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. Both metrics increased on a year-over-year basis.

Following the results, the company’s shares moved down 1.5% in today’s pre-market trading session.

Hyatt’s Q4 Earnings & Revenue Discussion

Hyatt reported adjusted earnings per share (EPS) of $1.33, surpassing the Zacks Consensus Estimate of 29 cents. In the year-ago quarter, the company reported an EPS of 42 cents.

Revenues of $1,789 million slightly missed the consensus mark of $1,793 million. However, the top line increased 11.7% year over year.

Hyatt Hotels Corporation Price, Consensus and EPS Surprise

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

During the quarter, Owned and Leased revenues came in at $423 million compared with $264 million in the prior-year quarter. Distribution revenues declined 13.7% year over year to $177 million. Other revenues came in at $4 million, down from $11 million in the prior-year quarter.

During the quarter, gross fees increased 4.5% year over year to $307 million, with base management fees rising 8.1%, incentive management fees up 13%, franchise and other fees advancing 3.8% on a year-over-year basis. This upside was supported by managed hotel RevPAR growth outside the United States, with strength from newly opened hotels, solid performance in the Asia Pacific and better results from all-inclusive hotels in Europe. The benefit was partly offset by the removal of franchise fees from eight Hyatt Ziva and Hyatt Zilara properties tied to the Playa Hotels acquisition and weaker demand at select service hotels in the United States.

Net fees during the quarter came in at $290 million compared with $281 million reported in the prior-year quarter.

The company reported a 4% 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 8.3% year over year.

Hyatt’s Operating Highlights

In the fourth quarter, adjusted EBITDA came in at $292 million, up 14.6% year over year.  The metric increased 3.8% after adjusting for assets sold in 2024. Our model predicted the metric to be $324.4 million.

During the quarter, adjusted EBITDA in the Management and Franchising came in at $240 million compared with $219 million reported in the prior-year quarter. Our model predicted the metric to be $266.4 million.

The Owned and Leased segment’s adjusted EBITDA came in at $85 million compared with $57 million reported in the prior-year quarter. Our model predicted the metric to be $66.4 million.

The Distribution segment’s adjusted EBITDA came in at $7 million compared with $20 million reported in the prior-year quarter. Our model predicted the metric to be $38.3 million.

Balance Sheet of Hyatt

As of Dec. 31, 2025, Hyatt reported cash and cash equivalents, and short-term investments of $813 million compared with $749 million reported in the previous quarter. Total liquidity was $2.3 billion at the end of the fourth quarter. Total debt as of Dec. 31, 2025, was $4.3 billion, down from $6 billion reported in the previous quarter.

Other Business Updates of Hyatt

Regarding hotel openings, 8,253 rooms joined Hyatt's system in the fourth quarter. As of Dec. 31, 2025, the company had a pipeline of executed management or franchise contracts for approximately 148,000 rooms, reflecting an increase of 7% year over year.

Hyatt’s 2026 Outlook

For 2026, gross fees are expected to be in the band of $1.295-$1.335 billion. The company expects adjusted general and administrative expenses to be between $440 million and $450 million on a consolidated basis. Capital expenditures are anticipated to be about $135 million on a consolidated basis. Net rooms growth is anticipated to be between 6% and 7% year over year.

Management anticipates 2026 system-wide RevPAR to rise 1-3% from the 2025 level. Adjusted EBITDA is expected to be in the band of $1.155-$1.205 billion. The company expects adjusted free cash flow to be in the range of $580-$630 million.

H’s Zacks Rank & Recent Consumer Discretionary Releases

Hyatt currently has a Zacks Rank #4 (Sell). 

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

Hilton Worldwide Holdings Inc. HLT reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

Hilton’s fourth-quarter 2025 results were supported by steady demand trends, year-over-year RevPAR growth and continued expansion of its global footprint. The company added new hotels during the quarter and delivered strong net unit growth while maintaining a robust development pipeline that provides solid long-term visibility. Continued expansion of its luxury and lifestyle portfolio, along with new brand launches such as the Apartment Collection by Hilton, also contributed positively to overall performance.    

Marriott International, Inc. MAR reported fourth-quarter 2025 results, with adjusted earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines increased on a year-over-year basis.

Marriott delivered steady performance, supported by resilient rooms’ growth, pricing strength and continued development momentum. Global RevPAR posted modest growth, led by stronger international markets, while luxury properties continued to outperform on the back of healthy demand and favorable rates. Despite relatively stable performance in the United States & Canada, Marriott maintained a premium RevPAR compared with peers, reflecting the strength of its diversified brand portfolio and asset-light business model.

Hasbro, Inc. HAS reported fourth-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased year over year. 

Hasbro’s management highlighted a strong 2025, with it returning to growth on the back of disciplined execution and the “Playing to Win” strategy. Leadership emphasized broader fan engagement, new partnerships and meaningful progress toward becoming a more digital and IP-focused business, setting a confident tone for Hasbro for 2026.

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