Executive Summary

Q1 2025 delivered solid operational results: system-wide RevPAR +5.7% YoY, gross fees a record $307M, and Adjusted EBITDA $273M, aided by luxury strength and new openings (e.g., The Venetian via Hyatt channels) .
EPS beat: Adjusted diluted EPS was $0.46 vs S&P Global consensus of $0.36*, while management moderated full-year RevPAR growth to 1–3% (from 2–4%) on softer near-term U.S. leisure and business transient bookings .
Guidance trimmed: 2025 Net Income to $95–$150M (from $190–$240M) on non-repeat of 2024 gains on asset sales; Gross fees to $1.185–$1.215B (slightly lower); Adjusted EBITDA to $1.08–$1.135B (slightly lower) .
Capital and pipeline remain strengths: ~138k rooms in pipeline, net rooms growth +10.5% in Q1; total liquidity ~$3.3B; dividend maintained at $0.15 and $822M buyback authorization remaining .
Potential catalysts/risks: Progress on Playa acquisition (tender extended to May 23) and real estate sale discussions vs. near-term RevPAR moderation in U.S. upscale/select-service; APAC ex-China and all-inclusive pacing strong .

What Went Well and What Went Wrong

What Went Well
- Fee power and EBITDA resilience: Gross fees +16.9% YoY to $307M; Adjusted EBITDA $273M, +24% YoY on an asset-sale adjusted basis .
- Mix benefits and loyalty: Luxury brands led, all-inclusive net package RevPAR +4.5%; World of Hyatt ~56M members (+22% YoY), with higher penetration and strong co-brand card spend .
- Strategic execution: Development momentum (Hyatt Studios opening; newly announced “Hyatt Select”) and asset-light earnings mix underpinning more predictable EBITDA sensitivity vs. prior cycles .
- CEO tone: “We remain confident in the resilience of our asset-light business model … and our ability to adapt to evolving market conditions." .
What Went Wrong
- Macro softness in near-term U.S. leisure and business transient (upscale/select-service), driving a modest guide cut; balance-of-year RevPAR implied 0–2% growth .
- U.S. short-term leisure and select-service BT pressure; association group softer (corporate group stronger), and some government group cancellations .
- Definition mismatches complicate external comparisons (e.g., EBITDA vs “Adjusted EBITDA”); distribution outlook trimmed from prior upside to roughly flat vs 2024 for the rest of year .

Financial Results

Headline metrics vs prior periods and S&P Global consensus (where available). Periods are chronological (oldest → newest).

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ex reimbursed ($USD Millions)	762.0*	761.0*	832.0*
Primary EPS (S&P, $)	0.94 (actual)*	0.42 (actual)*	0.46 (actual)* vs 0.36 est*
GAAP Diluted EPS ($)	$4.63	$(0.58)	$0.19
Adjusted Diluted EPS ($)	$0.94	$0.42	$0.46
Net Income ($USD Millions)	$471	$(56)	$20
Adjusted EBITDA ($USD Millions)	$275	$255	$273
Comparable O&L Margin change (bps YoY)	+210 bps	+70 bps	+70 bps

Values with asterisk (*) are from S&P Global and may use definitions that differ from company reporting. Values retrieved from S&P Global.

Segment EBITDA breakdown ($USD Millions):

Segment Adjusted EBITDA	Q3 2024	Q4 2024	Q1 2025
Management & Franchising	210	219	236
Owned & Leased	63	57	27
Distribution	38	20	49
Overhead	(36)	(41)	(40)
Eliminations	—	—	1
Total Adjusted EBITDA	275	255	273

KPIs and operating stats:

KPI	Q3 2024	Q4 2024	Q1 2025
System-wide RevPAR growth YoY	+3.0%	+5.0%	+5.7%
All-inclusive Net Package RevPAR YoY	(0.9)%	+2.9%	+4.5%
System-wide Occupancy	n/a	n/a	66.6% (+2.1pts YoY)
System-wide ADR growth YoY	n/a	n/a	+2.3%
World of Hyatt members (approx.)	51M	54M	~56M

Additional Q1 2025 details:

Gross fees $307M (+16.9% YoY), with Bahia Principe and Standard International adding ~$17M of growth .
Geographic highlights: APAC ex-China RevPAR +11.2%; Europe +8.5%; U.S. +5.4%; all-inclusive Americas net package RevPAR +4.1% .
Balance sheet/liquidity: Total debt ~$4.3B; liquidity ~$3.3B; cash & ST investments ~$1.805B; revolver availability ~$1.497B; Q2 dividend $0.15 .

Guidance Changes

Metric	Period	Previous Guidance (Feb 13, 2025)	Current Guidance (May 1, 2025)	Change
System-wide RevPAR growth	FY 2025	2% to 4%	1% to 3%	Lowered
Net Rooms Growth	FY 2025	6% to 7%	6% to 7%	Maintained
Net Income ($M)	FY 2025	$190–$240	$95–$150	Lowered (non-repeat of 2024 gains)
Gross Fees ($M)	FY 2025	$1,200–$1,230	$1,185–$1,215	Slightly Lowered
Adjusted G&A ($M)	FY 2025	$450–$460	$450–$460	Maintained
Adjusted EBITDA ($M)	FY 2025	$1,100–$1,150	$1,080–$1,135	Slightly Lowered
Capital Expenditures ($M)	FY 2025	~ $150	~ $150	Maintained
Adjusted Free Cash Flow ($M)	FY 2025	$450–$500	$450–$500	Maintained

Management noted the RevPAR guide now implies flat to +2% for the balance of 2025, reflecting recent booking trends, and that the net income decline vs 2024 is due to prior-year asset sale gains not repeating .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Macro/RevPAR	Q3: U.S. leisure impacted by weather/outbound; Europe boosted by Olympics . Q4: FY RevPAR +4.6% .	RevPAR +5.7%; near-term U.S. leisure/BT softness → guide trim; strong APAC ex-China, Europe .	Mixed: international strength vs softer near-term U.S.
Business Transient	Q3: U.S. BT recovery .	Q1 BT +12% YoY; strong in luxury/upper-upscale; pressure in upscale/select service .	Strong at high end; softness in select service
Group	Q3: strong; Olympics helped . Q4: stable .	Remainder of 2025 group pace +~2.5–3%; corporate strong, association softer; some gov’t cancellations .	Healthy corporate; association lag
All-Inclusive	Q3: Net package RevPAR (0.9)% . Q4: +2.9% .	Net package RevPAR +4.5%; Q2 pacing high single digit; 88% of Q2 already booked .	Improving momentum
China/APAC	Q3: APAC ex-China +10% . Q4: China flat; APAC ex-China inbound strong .	China flat in Q1, better in April; APAC ex-China leads growth .	APAC ex-China outperforms
Supply chain/tariffs	—	Developers adding cost contingencies; onshoring case goods to mitigate tariffs .	Proactive mitigation
Development/pipeline	Q3: ~135k pipeline . Q4: ~138k pipeline .	~138k rooms; Hyatt Studios opened; introduced “Hyatt Select” .	Sustained momentum
Asset-light & sensitivity	—	1% RevPAR → ~1.4% change in Adj. EBITDA vs ~2.5% in 2008-era model .	More resilient model
Playa acquisition	Q4: Announced; funding plan .	Tender extended to May 23; advancing real estate sale talks; financing secured .	Progressing

Management Commentary

“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.” — Mark Hoplamazian, CEO .
“Our full-year RevPAR range of 1% to 3% implies flat to +2% for the balance of the year … we’ve seen signs of slowing short-term leisure and business transient demand in the U.S.” — CFO Joan Bottarini .
“Luxury is very strong … upper-upscale positive … negative in upscale/select-service. Group is up ~2.5–3% for the rest of the year; 2026 pace up over 10%.” — CEO .
“Distribution had a good quarter … teams are disciplined on cost. For the balance of the year we now expect roughly flat vs last year.” — CFO .
“We expect to be in a position to sign a deal on Playa’s asset dispositions in the near future … tender offer extended to May 23.” — CEO .

Q&A Highlights

Near-term demand: U.S. leisure and select-service BT softened; luxury and upper-upscale BT remain positive; corporate group strong, association softer; some gov’t group cancellations .
All-inclusive outlook: Q2 pacing high single digits; 88% of Q2 already booked; Americas pacing +7% .
Distribution segment: Q1 was better than expected; balance of year trimmed to roughly flat vs 2024, with cost control and pricing levers .
Playa process and asset sales: Tender extended; focusing on antitrust clearance; seller financing/credit support may be used to optimize deal execution amid financing market dynamics .
Co-brand credit card: No update yet; expect competitive terms given portfolio, distribution and loyalty performance .
Development/tariffs: Developers building in cost contingencies; onshoring case goods to mitigate tariff impact .

Estimates Context

Q1 2025 EPS: Actual $0.46 vs S&P Global consensus $0.36 — beat driven by fee growth, luxury strength, and cost control; company Adjusted Diluted EPS also $0.46 .
Revenue: S&P shows actual $832M vs consensus $1,707.9M*, reflecting definition differences (Hyatt reports reimbursed costs separately; S&P “Revenue” basis may not align). Revenue comparisons are not like-for-like ; see table above.
EBITDA: S&P EBITDA actual $206M vs consensus $244M*; company-reported Adjusted EBITDA was $273M (non-GAAP, excludes reimbursed cost flows and other items) .
Values retrieved from S&P Global.

Key Takeaways for Investors

The core fee engine is healthy and diversified; luxury, international markets, and all-inclusive pacing remain key supports to earnings even as U.S. short-term leisure/select-service soften .
Guidance reset is modest and largely macro/short-term booking driven; asset-light mix and lower EBITDA sensitivity vs prior cycles should cushion volatility .
2025 focus: execution on Playa (tender/antitrust/real estate sales), which can enhance fee mix and scale while remaining disciplined on leverage and asset sales to preserve investment grade .
Distribution outlook has normalized to roughly flat for the balance of 2025; watch pacing, pricing, and FX—management is actively managing costs and mix .
APAC ex-China and Europe are likely to drive outperformance; U.S. group (corporate) remains constructive, supporting base management and incentive fees .
Capital returns continue via dividend and opportunistic buybacks, balanced against Playa financing and prospective asset monetizations ($822M authorization remaining) .
Trading lens: EPS beat vs consensus, but trimmed RevPAR guide and commentary on near-term softness could cap multiple expansion near-term; progress on Playa and sustained fee growth are likely catalysts.

Appendix: Q1 2025 vs S&P Global Consensus Snapshot

Item	Actual	Consensus	Surprise
Primary EPS ($)	0.46*	0.357*	Beat
Revenue ($M, ex reimbursed basis per S&P)	832.0*	1,707.9*	Not comparable (definition)
EBITDA ($M, S&P)	206.0*	244.0*	Miss (definition differs from company Adj. EBITDA $273M )

Values retrieved from S&P Global.

Sources: Hyatt press release and 8-K exhibits including schedules ; Q1 2025 earnings call transcript ; Prior quarters’ press releases ; Playa tender update press release .

Hyatt Hotels Corp (H)·Q1 2025 Earnings Summary