Hyatt Hotels Corp. Q4 FY2025 earnings call

Brand Focus Strategy

• Advanced to a more brand-focused organization in 2025, using sharper brand positioning and deeper insights to go to market differently, serving guests on more stay occasions and attracting owners.

Operating Results

• Fourth quarter system-wide RevPAR grew 4% driven by luxury brands; leisure transient RevPAR up ~6%, luxury brands saw 9% growth; business transient RevPAR down 1% in Q4, full service hotels in international markets had low single-digit growth; group RevPAR up 3%.

Development

• Achieved net rooms growth of 7.3% in 2025, ninth consecutive year of industry-leading growth; development pipeline reached record ~148,000 rooms; 50% of U.S. signings in new markets; new brands like Hyatt Select, Hyatt Studios, Unscripted by Hyatt showed strong momentum.

Transactions

• Sold remaining 14 hotels in Playa portfolio to Tortuga Resorts and entered into long-term management agreements for 13; completed sale of three Alua properties in Spain; working on selling additional owned properties with three under purchase and sale agreements.

Loyalty Program

• World of Hyatt members ended 2025 at over 63,000,000, up 19% from 2024, accounting for nearly half of total occupied hotel rooms in 2025; 13% increase in room nights from members who stayed 50 or more nights.

In the fourth quarter, system-wide RevPAR grew 4%. Leisure transient RevPAR increased ~6%, with luxury brands seeing leisure transient RevPAR grow 9%. Business transient RevPAR declined 1% in Q4, while full service hotels in international markets had low single-digit growth. Group RevPAR increased 3%. Gross fees in Q4 increased ~5% to $307,000,000, and full-year gross fees grew 9% to $1,198,000,000. Owned and Leased segment adjusted EBITDA declined ~2% adjusted for asset sales and the Playa transaction. Distribution segment adjusted EBITDA declined year-over-year due to Hurricane Melissa and lower booking volumes from four-star and below hotels.

• Full-year system-wide RevPAR growth expected 1%-3%, with international markets growing faster than U.S., luxury brands as strongest chain scale.
• Net rooms growth expected 6%-7% with new brands driving momentum.
• Gross fees expected to grow 8%-11% to $1,295,000,000 - $1,335,000,000.
• Adjusted EBITDA expected to grow 13%-17% to $1,155,000,000 - $1,205,000,000.
• Adjusted free cash flow expected to increase 20%-30% to $580,000,000 - $630,000,000.
• Capital return expected $325,000,000 - $375,000,000.
• First quarter 2026 global RevPAR expected at midpoint of full-year range, international markets growing faster than U.S.

• Hurricane Melissa impacted Distribution segment; Jamaica closed hotels excluded from comparable metrics in 2026.
• Uncertainty regarding insurance claims from Hurricane Melissa in terms of amount and timing.
• Potential impact of market and operational factors on future performance.

Q: Dan Pitzer asked about net unit growth at 6%-7% and drivers for the outlook including new brands and appetite for larger partnership deals.

A: Mark Hoplamazian said glass is half full, momentum is strong with new brands like Hyatt Select, Unscripted having strong pipeline, and focusing on portfolio deals in new markets.

Q: Benjamin Nicolas Chaiken inquired about how AI travel search ranking system would work.

A: Mark Hoplamazian said natural language search capability on hyatt.com is live, working with OpenAI, and expects attribute-based and intent-based search to be more popular.

Q: Shaun Clisby Kelley asked if AI initiatives are related to G&A cost control efficiency.

A: Mark Hoplamazian said some efficiency gains are from automation and AI, including in group sales force with increased productivity.

Q: Richard J. Clarke asked about EBITDA definition change and capital returns.

A: Joan Bottarini said EBITDA change aligns with peers and strategy, and capital allocation is to invest in growth and return excess cash.

Q: Brandt Montour asked about first quarter RevPAR and business transient trends.

A: Joan Bottarini said January RevPAR at high end of range, BT slightly flat but improving, and Mark Hoplamazian mentioned lapping inauguration impact and positive pace in February and March.

Q: Smedes Rose asked about non-consolidated joint ventures monetization and Hurricane Melissa insurance claims.

A: Mark Hoplamazian said working on monetizing JVs, and Joan Bottarini said there are insurance claims but timing of proceeds uncertain.

Q: Steven Pizzella asked about ALG Vacations' strategy.

A: Mark Hoplamazian said ALG Vacations is helpful for new property acquisition and distribution, and open to strategic alternatives meeting certain conditions.

Q: Lizzie Dove asked about rooms growth and contribution of new brands.

A: Mark Hoplamazian said 6%-7% is organic growth including conversion brands, and new brands like Hyatt Select have strong pipeline and contribute to growth.