Hyatt Hotels’ second quarter saw revenue growth surpassing Wall Street expectations, driven by robust demand for luxury and all-inclusive segments, and supported by strategic acquisitions. Management credited the closing of the Playa Hotels & Resorts deal and ongoing strength in the World of Hyatt loyalty program as significant contributors. CEO Mark Hoplamazian emphasized, “RevPAR growth was strongest among our luxury brands as high-end consumers continue to prioritize travel.” While the quarter reflected continued expansion and strong international performance, management acknowledged softness in lower-tier U.S. properties and a challenging margin environment.
Is now the time to buy H? Find out in our full research report (it’s free).
Hyatt Hotels (H) Q2 CY2025 Highlights:
- Revenue: $1.81 billion vs analyst estimates of $1.72 billion (6.2% year-on-year growth, 4.8% beat)
- Adjusted EPS: $0.68 vs analyst estimates of $0.67 (1.8% beat)
- Adjusted EBITDA: $303 million vs analyst estimates of $291.4 million (16.8% margin, 4% beat)
- EBITDA guidance for the full year is $1.11 billion at the midpoint, below analyst estimates of $1.12 billion
- Operating Margin: 3.2%, down from 8.8% in the same quarter last year
- RevPAR: $150.97 at quarter end, up 1.1% year on year
- Market Capitalization: $13.87 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hyatt Hotels’s Q2 Earnings Call
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Conor T. Cunningham (Melius Research) asked about the expected improvement in the second half of the year, particularly what drives confidence in a turnaround after Q3. CFO Joan Bottarini explained that challenging year-over-year comparisons and event-driven comps will weigh on Q3, but easier comps and better group/business transient bookings should support Q4 improvement.
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Conor T. Cunningham (Melius Research) also questioned the timing and expected economics of the co-branded credit card negotiations. Bottarini reiterated that updates would come later in the year or early next, but management is optimistic about their negotiating position given loyalty growth.
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Stephen Grambling (Morgan Stanley) inquired about capital allocation strategy following further asset sales. CEO Mark Hoplamazian said proceeds from Playa would pay down acquisition debt, increasing future flexibility for shareholder returns as the mix shifts more fee-based.
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Michael Joseph Bellisario (Baird) sought clarity on integration timelines for new brands and the Playa acquisition. Hoplamazian stated that full integration and rebranding disruptions should be resolved by January 2026, with early results from lifestyle brands exceeding expectations.
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Smedes Rose (Citi) asked about Hyatt Studios rollout and net rooms growth. Hoplamazian noted strong early performance in new locations, a deep construction pipeline, and a focus on filling geographic gaps in Hyatt’s U.S. footprint.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and success of asset sales and the resulting increase in fee-based earnings, (2) the impact of new brand launches and development signings on net rooms growth, and (3) signs of recovery in U.S. lower chain scales and international travel demand, especially in Greater China and the Caribbean. Execution on integration of the Playa acquisition and progress in loyalty program engagement will also be key indicators.
Hyatt Hotels currently trades at $145.24, up from $136.02 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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