Hyatt Hotels Corporation reported a 5.7% year-over-year increase in comparable systemwide RevPAR for the first quarter, ended March 25. Net rooms growth was 10.5%
“In the face of growing volatility in the economy and financial markets, we continue to deliver strong performance, highlighted by our first quarter results,” said Mark S. Hoplamazian, president/CEO, Hyatt. “As we look ahead, recent shifts in booking behavior—particularly in shorter-term demand—have led us to modestly revise our outlook for the remainder of the year. That said, we remain confident in the resilience of our asset-light business model, the strength of our brand portfolio and our ability to adapt to evolving market conditions. We are excited about the momentum in our pipeline and the continued strong demand we’re seeing for our brands around the world.”
First-quarter highlights include:
- Net income attributable to Hyatt Hotels Corporation was $20 million and Adjusted Net Income was $46 million
- Diluted EPS was $0.19 and Adjusted Diluted EPS was $0.46
- Gross fees were $307 million, an increase of 16.9%, compared to the first quarter of 2024
- Adjusted EBITDA was $273 million, an increase of 5.4%, or an increase of 24.4% after adjusting for assets sold in 2024, compared to the first quarter of 2024
- Pipeline of executed management or franchise contracts was approximately 138,000 rooms
First-quarter operational commentary
Business transient and group travel drove systemwide and U.S. RevPAR growth. The quarter was impacted by Easter, which took place in the second quarter, whereas the holiday fell in the first quarter last year.
Gross fee growth of 17% in the quarter with properties from the Bahia Principe and Standard International transactions contributing approximately $17 million, or 38%, of the total gross fee growth.
Base management fees: increased 16%, driven by managed hotel RevPAR growth and the contribution of newly opened hotels.
Incentive management fees grew 18%, led by newly opened hotels, Americas all-inclusive resorts, favorable FX and international hotels, notably in Asia-Pacific (excluding Greater China).
Franchise and other fees expanded 17%, due to non-RevPAR fee contributions, RevPAR growth in the U.S. and newly opened hotels.
Owned and leased segment Adjusted EBITDA grew 18% after adjusting for assets sold in 2024, compared to the first quarter of 2024. Comparable owned and leased margin increased by 70 bps in the first quarter compared to the same period in 2024.
Excluding the impact of the UVC transaction, distribution segment results improved by 10%, compared to the first quarter of 2024, from higher pricing, effective cost management and favorable foreign currency exchange despite lower booking volumes in the quarter.
Openings and development
During the first quarter, the company opened 11,253 rooms, including:
- The first Hyatt Studios property, Hyatt Studios Mobile / Tillmans Corner.
- The Venetian Resort Las Vegas, with 7,092 rooms, which became available through Hyatt booking channels in January; these rooms were not included in the 2024 year-end pipeline figures.
- Other notable openings; Andaz Doha; Hotel La Compañia del Valle, part of The Unbound Collection by Hyatt; and seven UrCove properties.
- Announced a new brand, Hyatt Select, an upper-midscale, transient conversion brand designed to meet the needs of modern travelers while delivering an efficient, cost-effective model for owners.
Transactions
The company has provided the following updates on the planned Playa Hotels acquisition:
- Continues to advance discussions for the sale of Playa’s real estate and expects to be in a position to enter into an agreement to sell that real estate in the near future.
- Announced on April 28 the extension of the tender offer period to 5:00 p.m., New York City time on May 23.
- Issued $500 million of 5.050% senior notes due 2028 and $500 million of 5.750% senior notes due 2032, and received approximately $990 million of net proceeds. The company intends to use the net proceeds to finance a portion of the Playa Hotels acquisition.
- Entered into a credit agreement with a syndicate of lenders on April 11 for a $1.7 billion delayed draw term loan facility whereby proceeds will be used to finance the remaining portion of the Playa Hotels acquisition.
Full-year 2025 outlook
- Comparable systemwide hotels RevPAR growth is projected between 1% to 3%, compared to the full-year 2024
- Net rooms growth is projected between 6% to 7%
- Net income is projected between $95 million and $150 million
- Adjusted EBITDA is projected between $1.080 billion and $1.135 billion, an increase of 6% to 12% after adjusting for assets sold in 2024
