Key Takeaways:
- EPS of $1.12 beat the $0.90 consensus estimate, up from $0.68 a year ago
- Comparable system-wide RevPAR rose 5.9% on strong leisure and group demand
- Full-year Adjusted EBITDA outlook of $1.155B-$1.205B implies 13%-18% growth
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Hyatt Hotels beats Q2 estimates with $1.12 EPS as RevPAR climbs 5.9%
Hyatt Hotels Corp. reported second-quarter adjusted earnings per share of $1.12, surpassing the $0.90 consensus estimate and rising from $0.68 a year earlier, as comparable system-wide RevPAR grew 5.9 percent.
"Our strong second quarter results reflect the continued strength of Hyatt's differentiated portfolio and the deep engagement of our high-value guests around the world," Mark S. Hoplamazian, Chairman, President and Chief Executive Officer, said. "The resilience of our core fee business enabled us to absorb temporary regional headwinds while maintaining our full year outlook."
Revenue reached $1.83 billion, topping the $1.81 billion reported in the same quarter last year. Gross fees rose 7.8 percent to $324 million, driven by base management fee growth of 10.2 percent on managed hotel RevPAR strength across the United States. Adjusted EBITDA increased 3.4 percent to $297 million, or 8.8 percent after adjusting for assets sold in 2025. Net income attributable to Hyatt was $110 million.
The company opened 3,585 rooms during the quarter, including Miraval The Red Sea, the first Miraval property outside the United States. Its pipeline of executed management or franchise contracts reached approximately 154,000 rooms, up 10 percent from a year ago. Net rooms growth for the trailing twelve months was 3.9 percent, or 4.4 percent excluding rooms removed from the Playa Hotels acquisition.
Hyatt maintained its full-year 2026 outlook for comparable system-wide RevPAR growth of 3.5 percent to 4.5 percent, while projecting Adjusted EBITDA of $1.155 billion to $1.205 billion, representing 13 percent to 18 percent growth over 2025 after adjusting for asset sales. The company expects to return $325 million to $375 million to shareholders through dividends and share repurchases this year.
The earnings beat signals that Hyatt's asset-light fee model continues to generate strong cash flows even as temporary headwinds in Mexico and the Middle East weigh on its owned and distribution segments. Investors will watch the company's third-quarter results for signs of recovery in those markets and progress toward the 6 percent net rooms growth target for the full year.
This article is for informational purposes only and does not constitute investment advice.
