Hyatt Hotels Corp.’s comparable systemwide revenue per available room increased 0.3 percent compared to the third quarter of 2024, while net rooms growth was 12.1 percent. Net rooms growth excluding acquisitions was 7 percent.
At the same time, net income (loss) attributable to Hyatt Hotels was $(49) million and adjusted net income (loss) was $(29) million. Adjusted earnings before interest, taxes, depreciation and amortization was $291 million, an increase of 5.6 percent, compared to the third quarter of 2024, or an increase of 10.1 percent after adjusting for assets sold in 2024
Third-Quarter Operations
While global RevPAR was up, United States RevPAR declined 1.6 percent year over year, which CFO Joan Bottarini said was in line with the company’s expectations. The decline, she added, was driven by select-service hotels and the timing of the Rosh Hashanah holiday, which occurred in the third quarter this year compared to the fourth quarter last year.
Luxury chain scales drove RevPAR growth in the third quarter. Leisure transient RevPAR was the strongest area of growth while group RevPAR growth was negatively impacted by approximately 100 basis points due to the timing of the Rosh Hashanah holiday.
“Our luxury brands continue to generate the highest RevPAR growth, consistent with trends that we've seen since the beginning of the year,” Bottarini said. “Leisure transient RevPAR increased 1.6 percent to last year and was up approximately 6 percent across our luxury brands. Our all-inclusive portfolio continued to deliver strong results with net RevPAR up 7.6 percent compared to the third quarter of 2024, demonstrating the strength of luxury [and] all-inclusive travel.”
Net Package RevPAR increased 7.6 percent in the third quarter compared to the third quarter last year, further illustrating the strong performance of luxury all-inclusive travel.
Owned and leased segment adjusted EBITDA increased 7 percent, compared to the third quarter of 2024, after adjusting for assets sold in 2024 and the impact of the Playa Hotels acquisition. Comparable owned and leased margin decreased by 40 basis points in the third quarter, compared to the same period in 2024.
Distribution segment adjusted EBITDA declined compared to the third quarter of 2024, due to lower booking volumes and the lapping of a one-time benefit from ALG Vacations travel credits last year which was not offset by higher pricing and effective cost management.
Openings and Development
“Organic growth is extremely strong,” President and CEO Mark Hoplamazian said during the earnings call. “We are on track to more than double our core organic growth rate from last year to this year.”
During the third quarter, the company opened 5,163 rooms. Notable openings included the Park Hyatt Kuala Lumpur in the tallest skyscraper in Asia Pacific, the Park Hyatt Johannesburg, the Secrets Playa Esmeralda Resort and Spa in Punta Cana and the Hyatt Regency Times Square, the first Hyatt Regency property in Manhattan and the 30th property in New York City.
The company also announced a new master franchise agreement with HomeInns Hotel Group. Under this agreement, HomeInns Hotel Group plans to open 50 Hyatt Studios branded hotels over the next several years and develop a pipeline to fuel future growth across China.
Hoplamazian emphasized “real momentum in signings” for the fourth quarter, particularly for the new Hyatt Select and Unscripted brands. “Based on the momentum that we're seeing right now, we are expecting continued acceleration of signings through the fourth quarter. In terms of net rooms growth, we have about 38 hotels that we have planned to open in the fourth quarter. Seven of those were opened in October.” As of the end of September, the pipeline of executed management or franchise contracts was approximately 141,000 rooms, an increase of 4.4 percent, compared to the third quarter of 2024.
“Our strong pipeline and the momentum we are seeing in our upscale and upper-midscale brands underscore the significant white space that we believe will support strong growth for years to come,” Hoplamazian said.
Transactions
The company has provided the following updates on the Playa Real Estate Transaction and the 15 properties acquired from the Playa Hotels Acquisition:
Hyatt expects to close on the Playa Real Estate Transaction to sell 14 properties by the end of the year and use the proceeds to repay the amounts outstanding under the $1.7 billion delayed draw term loan used to finance a portion of the Playa Hotels Acquisition. Concurrent with the sale, the company will enter into 50-year management agreements for 13 of the 14 properties. The remaining property is subject to a separate contractual arrangement.
On Sept. 18, one property in Playa del Carmen was sold to a separate third-party buyer for approximately $22 million. Net proceeds of the sale were used to repay a portion of the delayed draw term loan. This was one of two properties that were not subject to long-term management agreements with Tortuga resorts, Hoplamazian said. “We remain on track to close the real estate transaction with Tortuga for the remaining 14 hotels by the end of the year.”
Full Year 2025 Outlook
“For the United States, we expect RevPAR growth for both the fourth quarter and full-year 2025 of approximately 1 percent,” Bottarini told investors on the earnings call. Hoplamazian agreed, noting that U.S. RevPAR was up 1 percent in October and 5 percent globally.
Comparable systemwide hotels RevPAR growth is projected to be between 2 percent to 2.5 percent, compared to the full year 2024.
Net rooms growth excluding acquisitions is projected between 6.3 percent to 7 percent, compared to the full year 2024.
Net income is projected to be between $70 million and $86 million, while adjusted EBITDA is projected between $1.09 billion and $1.11 billion, an increase of 7 percent to 9 percent after adjusting for assets sold in 2024, compared to the full year 2024.
These metrics do not include the impact of the Playa Hotels Acquisition and the pending Playa Real Estate Transaction.