Earnings call transcript: Hyatt Q2 2025 earnings beat forecasts, stock rises

Published 07/08/2025, 20:18
 Earnings call transcript: Hyatt Q2 2025 earnings beat forecasts, stock rises

Hyatt Hotels Corporation reported its second-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.68, compared to the forecasted $0.65. The company’s revenue also exceeded projections, reaching 1.75 billion dollars against the anticipated 1.74 billion dollars. Following the announcement, Hyatt’s stock rose by 6.58% in pre-market trading, reflecting investor confidence in the company’s performance and strategic initiatives. According to InvestingPro data, Hyatt currently trades at a PEG ratio of 0.71, suggesting potential undervaluation relative to its growth prospects. The company maintains a "GOOD" overall financial health score of 2.54 out of 5, backed by strong profitability metrics.

Key Takeaways

  • Hyatt’s Q2 EPS of $0.68 beat the forecast of $0.65, marking a 4.62% surprise.
  • Revenue exceeded expectations, reaching 1.75 billion dollars.
  • Pre-market stock price surged 6.58% to $145.
  • Net rooms growth increased by 11.8%, bolstered by strategic acquisitions.
  • Full-year adjusted EBITDA is projected between 1.085 billion and 1.130 billion dollars.

Company Performance

Hyatt demonstrated robust performance in the second quarter of 2025, with system-wide Revenue Per Available Room (RevPAR) growth of 1.6%, adjusting to 2.2% when accounting for the Easter shift. The company reported a 9.5% increase in gross fees, reaching 301 million dollars. Adjusted EBITDA grew by approximately 9% after adjusting for asset sales, showcasing the effectiveness of Hyatt’s strategic initiatives and operational efficiency. The company maintains a moderate debt level with a debt-to-equity ratio of 1.33, while delivering a solid return on equity of 22% over the last twelve months.

Financial Highlights

  • Revenue: 1.75 billion dollars, slightly above the forecast of 1.74 billion dollars.
  • Earnings per share: $0.68, compared to the forecasted $0.65.
  • Gross fees: 301 million dollars, up 9.5% year-over-year.
  • Adjusted EBITDA: 3 billion dollars, a 9% increase after asset sales adjustments.

Earnings vs. Forecast

Hyatt exceeded both EPS and revenue forecasts for Q2 2025. The EPS beat of 4.62% indicates a stronger-than-expected performance, aligning with the company’s historical trend of surpassing market expectations. The revenue surprise of 0.57% further underscores Hyatt’s operational strength and strategic positioning in the hospitality sector.

Market Reaction

Following the earnings release, Hyatt’s stock rose by 6.58% in pre-market trading, reaching $145. This increase reflects investor optimism driven by Hyatt’s financial performance and strategic growth initiatives, including the acquisition of Playa Hotels and Resorts. The stock’s movement contrasts with broader market trends, highlighting Hyatt’s unique position in the luxury and upper upscale segments.

Outlook & Guidance

Hyatt anticipates full-year 2025 gross fees to range between 1.195 billion and 1.215 billion dollars, a 10% increase at the midpoint. The company also projects its full-year adjusted EBITDA to be between 1.085 billion and 1.130 billion dollars. Looking ahead, Hyatt expects RevPAR growth of 1-3% for 2025, with the strongest growth anticipated in the fourth quarter. With a market capitalization of $13.25 billion and an EV/EBITDA multiple of 19.14, investors seeking detailed valuation analysis and growth projections can access comprehensive metrics through InvestingPro’s extensive financial database and expert insights.

Executive Commentary

CEO Mark Hoplamazian highlighted the company’s strategic positioning, stating, "We are now at an inflection point, poised to scale with efficiency and speed." He also emphasized the growth in Hyatt’s luxury chain scale rooms mix, which has increased by 1,000 basis points since 2017. The introduction of the "Unscripted by Hyatt" brand is expected to accelerate growth in the upper midscale segment.

Risks and Challenges

  • The potential impact of economic downturns on leisure and business travel demand.
  • Challenges in integrating recent acquisitions such as Playa Hotels and Resorts.
  • Competitive pressures in the luxury and upper upscale hospitality segments.
  • Uncertainty in the Chinese market, as discussed during the earnings call.
  • Ongoing asset sale strategy and its implications for future growth.

Q&A

During the earnings call, analysts inquired about the integration of Playa Hotels and Resorts and its potential to enhance distribution channels. The company addressed concerns about the cautious outlook for the China market and provided insights into its ongoing asset sale strategy. Additionally, discussions included future earnings potential and credit card negotiations, reflecting investor interest in Hyatt’s strategic direction and financial health.

Full transcript - Hyatt Hotels Corp (H) Q2 2025:

Conference Operator: Good morning, and welcome to the Hyatt Second Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer question As a reminder, this conference call is being recorded. I would now like to turn the call over to Adam Roman, Senior Vice President of Investor Relations and Global FP and A. Thank you.

Please go ahead.

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt: Thank you, and welcome to Hyatt’s second quarter twenty twenty five earnings conference call. Joining me on today’s call are Mark Hoplamazian, Hyatt’s President and Chief Executive Officer and Joan Bottarini, Hyatt’s Chief Financial Officer. Before we start, I would like to remind everyone that our comments today will include forward looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10 ks, quarterly reports on Form 10 Q and other SEC filings. These risks could cause our actual results to be materially different from those expressed in or implied by our comments.

Forward looking statements in the earnings release that we issued today, along with the comments on this call, are made only as of today and will not be updated as actual events unfold. In addition, you can find a reconciliation of non GAAP financial measures referred to in today’s remarks under the Financials section of our Investor Relations website and in this morning’s earnings release. An archive of this call will be available on our website for ninety days. Additionally, we posted an investor presentation containing supplemental information on our Investor Relations website this morning. Please note that unless otherwise stated, references to occupancy, average daily rate and RevPAR reflect comparable system wide hotels on a constant currency basis.

Percentage changes disclosed during the call are on a year over year basis unless otherwise noted. With that, I will now turn the call over to Mark.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Thanks, Adam. Good morning, everyone, and thank you for joining us today. I would like to start our call by saying how proud I am of our team’s accomplishments over the last quarter. I’m thrilled that we closed on the acquisition of Playa Hotels and Resorts and entered into an agreement to sell the entire Playa real estate portfolio. I would like to extend a warm welcome to the Playa colleagues who joined the Hyatt family.

We are very excited for what lies ahead and the expertise they bring to Hyatt. Our operating results this quarter are a testament to the power of our brand focused strategy, the strength of our network and the dedication of Hyatt colleagues across the globe. For the twelfth consecutive year, Hyatt was nominated to Fortune’s 100 Best Companies to Work For, underscoring how we’ve been able to maintain our culture of care even as we have significantly grown and transformed our business. I want to thank all of the Hyatt colleagues across the globe for their continued care for our guests, customers and each other. Before I cover results, I’d like to provide an update on our transactions activity, starting with the acquisition of Playa Hotels and Resorts, which was completed on June 17.

This transaction included the acquisition of 15 all inclusive resorts, including eight existing Hyatt franchise resorts under our Hyatt Ziva and Hyatt Zilara brands. On June 30, we announced that we entered into an agreement with Tortuga Resorts to sell the entirety of the real estate acquired as part of the Playa transaction for $2,000,000,000 with the ability to receive an additional $143,000,000 if certain conditions are met. We are pleased to be entering into this agreement with an ownership group that has deep knowledge and experience in the luxury all inclusive space. Concurrent with the sale, which we believe could close by the middle of the fourth quarter, we will enter into fifty year management agreements for 13 of the 15 resorts. In 2026, we expect to earn an additional 60,000,000 to $65,000,000 of management fees, net of franchise fees that we previously would have earned from Playa.

We also expect to generate earnings through our distribution platform. Upon stabilization in 2027, we expect the implied multiple on the net purchase price for the asset light business to be 8.5x to 9.5x, a very strong outcome consistent with our stabilized valuations on asset light acquisitions since 2017. We are extremely pleased with the terms of the transaction and the speed at which we were able to execute. We expect the transaction to be accretive to shareholders in the first full year. This transaction demonstrates our commitment to our asset light business model while continuing to strengthen our brand portfolio and leadership in the luxury all inclusive segment.

We also continue to make progress to sell several of our own hotel properties. The three hotels that were under a formal marketing process last quarter are now subject to an exclusivity agreement, and we expect to sign a letter of intent soon. We also have one property that is under a signed PSA and two that are under a letter of intent. We remain under contract for the sales of Hyatt Grand Central New York and Andaz London Liverpool Street, but we do not expect either of those transactions to close this year. We will share additional updates as these transactions progress, and we continue to expect our asset light earnings mix to exceed 90% by 2027.

Now turning to operating results. This morning, we reported system wide RevPAR growth of 1.6 for the quarter or 2.2% when adjusting for the shift of Easter from the first quarter in twenty twenty four to the second quarter in twenty twenty five. RevPAR growth was strongest among our luxury brands as high end consumers continue to prioritize travel. Leisure transient RevPAR was up 2.6% to last year, reflecting the shift of Easter and increased approximately 6% for our luxury brands. All inclusive net package RevPAR increased 6% compared to the 2024 in The Americas, highlighting the continued strength of luxury all inclusive travel.

Business transient RevPAR was flat in the quarter with The United States declining by 1.5%, driven by select service hotels. Business transient RevPAR was up in the low single digits for our full service U. S. Hotels as well as hotels in Europe and Asia Pacific, excluding Greater China. Group RevPAR in the quarter was up 0.3% to last year and increased 1.1% when accounting for the timing of Easter.

Group pace for full service managed properties in The United States is approximately flat compared to 2024 for the last half of the year. The third quarter, which is lapping 6% year over year growth in 2024, has a challenging year over year calendar comparison due to special events like the Democratic National Convention in Chicago and the timing of Pays for the fourth quarter is up approximately 3%, and we should see easier comparisons due to the timing of Rosh Hashanah as well as lapping last year’s elections in The United States. As we look further out, pace in 2026 is up in the high single digits, and we are seeing positive momentum in bookings for 2026 and beyond. Although booking trends in the second quarter were softer compared to the first quarter, we’re seeing an uptick in future bookings for both leisure and business transient travel.

Our group and corporate customers have shared that travel continues to be a priority, especially for customer facing meetings, and we expect U. S. RevPAR growth to improve after Labor Day. We continue to see exceptional engagement from our World of Hyatt loyalty members, a key driver and differentiator of our commercial performance. Since 2017 through the 2024, we have grown loyalty membership by approximately 27% per year, significantly outpacing the growth of our largest competitors.

We ended the 2025 with over 58,000,000 members, an increase of 21% compared to the 2024. And spend on our co brand credit card continues to be strong. This sustained growth underscores both the benefits of our loyalty program to high end travelers and the desirability of our network. As we expand our brand footprint in new and established markets, we are delivering more opportunities for our members to engage with Hyatt. The World of Hyatt program remains a powerful growth engine, deepening guest relationships, reducing customer acquisition costs and reinforcing our value proposition to owners and developers.

Turning to growth. We achieved net rooms growth of 11.8% during the quarter, including approximately 2,600 rooms that joined the Hyatt system as part of the Playa acquisition. The additional rooms from Playa add approximately 70 basis points to our full year twenty twenty five outlook, which we have raised to 6.7% to 7.7%, inclusive of the Playa rooms. During the second quarter, we delivered net rooms growth, excluding acquisitions, of 6.5% and had several notable openings reflecting the strength of our brands across key segments and geographies. In Europe, we expanded our resort offerings with the opening of resorts on Greece’s Aegean Coast and in Bulgaria.

We also added to our Essentials portfolio, opening new Eurocove hotels in China and new select service properties in Canada. We continue to be very busy on the development front and ended the quarter with a pipeline of approximately 140,000 rooms, an 8% increase over last year. Signings increased by over 30% compared to the 2024 and included several exciting projects such as two Zoetry resorts, 10 Eurocove hotels in Greater China and two Grand Hyatt hotels in India to highlight a few. We are encouraged by the level of development interest in our brands, which we expect to translate to greater expansion of our pipeline, especially within our Essentials brand portfolio and continued organic growth over time. We expect to accelerate the growth of our Essentials portfolio with the introduction of our newest brand, Unscripted by Hyatt.

This brand fills a key white space in Hyatt’s portfolio, allowing us to grow in more markets and at an accelerated pace. The brand is designed to unlock growth through conversion friendly opportunities, and this approach gives owners a flexible path to benefit from our global distribution and the World of Hyatt loyalty program. We’re seeing great interest from the development community, and we expect Unscripted by Hyatt to scale rapidly through conversions and complement the recent brand additions in our Essentials portfolio, Hyatt Select and Heid Studios. As we look to the future, we remain confident in our strategy and our ability to deliver value across economic cycles. We believe our brand led and agile approach enables us to respond to shifting market dynamics on a real time basis while continuing to care for our stakeholders and create meaningful differentiation in a competitive landscape.

We built a high end portfolio of brands through deliberate and disciplined expansion in the luxury, lifestyle and all inclusive spaces. Our luxury chain scale rooms mix has increased by 1,000 basis points since 2017, while our largest competitors have seen their luxury mix stay flat or decline. Our growth has been intentional. We have cultivated deep commercial and operational expertise while attracting and growing a high end customer base. This has yielded meaningful differentiation for Hyatt with more than 70 of our portfolio in the luxury and upper upscale chain scales, a position that we believe is difficult to replicate and provides a competitive advantage.

This sets us apart from our peers and positions Hyatt among the most recognized and respected names in global hospitality. This strategy has attracted a valuable customer base with greater disposable income, who seek out quality experiences, engage deeply with our brands and demonstrate strong loyalty. The strength of that engagement is reflected through the compounding growth in our World of Hyatt program, increased co brand credit card spend and high fees per room. Having built this foundation and transformed to an asset light business model, we are now at an inflection point, poised to scale with efficiency and speed. As we further expand into the upscale and upper midscale segments, brands like Hyatt Select, Hyatt Studios and Unscripted by Hyatt will allow us to grow with intention in markets where we have significant white space.

In The U. S. Alone, we are absent from more than 50% of STR tracks. And in tracks where we have a presence, our hotel count is approximately 20% the size of our largest competitors. This white space gives us robust growth opportunities, allowing us to provide existing members with more ways to stay with us while introducing new guests to Hyatt.

I’m incredibly excited about Hyatt’s future. We have an unmatched global portfolio of premium luxury lifestyle and resort brands that has driven significant loyalty membership. Our significant white space for growth is expected to increase our fee based earnings, further improving our capital efficient asset light model. We believe we are positioned to generate durable, growing free cash flow and deliver significant shareholder value. I would like to close by again expressing my gratitude to all Hyde colleagues who live our purpose every day by caring for each of our stakeholders, especially through changing market dynamics.

Joan will now provide more details on our operating results. Joan, over to you.

Joan Bottarini, Chief Financial Officer, Hyatt: Thanks, Mark, and good morning, everyone. RevPAR growth in the second quarter grew 1.6 compared to last year, in line with our expectations shared during our first quarter earnings call. As Mark mentioned, similar to the trends seen in the first quarter, the highest end chain scales outperformed with our luxury brands up over 5% in the second quarter. In The United States, RevPAR was flat to last year driven by the lower chain scales and the shift of Easter from the first quarter last year to the second quarter this year. The luxury chain scale performed well, up over 4% in the quarter from strength in group business.

Upper upscale hotels were negatively impacted by the timing of Easter, which led to lower group contribution in the quarter, while upscale hotels were 1% below last year due to softer business transient demand. RevPAR outside of The United States performed well, and we saw continued strength in Europe and Asia Pacific, excluding Greater China. International inbound travel continues to be an important driver of results for these regions. Greater China grew RevPAR for the second consecutive quarter due to increases in leisure transient RevPAR. Demand for leisure travel remains very healthy within our all inclusive portfolio.

Net package RevPAR growth at our all inclusive properties in The Americas and in Europe was exceptionally strong during the second quarter. Pace is up almost 5% in The Americas for the third quarter, and we’re excited about the sustained demand for luxury all inclusive travel for the remainder of the year. We reported gross fees in the quarter of $301,000,000, up 9.5%. Our strong fee growth was driven by international RevPAR performance, new hotel openings, and growth in non RevPAR fees. The second quarter demonstrates our ability to generate sustained fee growth in a lower RevPAR growth environment, highlighting the strength of our premium brands and industry leading net rooms growth.

Owned and leased segment adjusted EBITDA increased by 1% when adjusted for the net impact of asset sales and the Playa Hotel acquisition. Distribution segment adjusted EBITDA was flat to last year as higher pricing, effective cost management, and favorable foreign currency exchange offset lower booking volumes in the four star and below segments served by ALG Vacations. In total, adjusted EBITDA was $3.00 $3,000,000 in the second quarter, an increase of approximately 9% after adjusting for assets sold in 2024. In the quarter, we recognized approximately $14,000,000 of adjusted EBITDA related to the Playa acquisition for our period of ownership in the second quarter. During the quarter, we financed the Playa acquisition through a combination of cash on hand and drawing on the term loan we entered into early in the second quarter.

Upon close of the real estate sale of the Playa assets, we’ll use the net proceeds to repay the term loan as per the terms of the agreement. As of 06/30/2025, we had total liquidity of approximately $2,400,000,000 including approximately $1,500,000,000 in capacity on our revolving credit facility and approximately $900,000,000 of cash, cash equivalents and short term investments. In the second quarter, we paid a quarterly dividend of $0.15 per share and have approximately $822,000,000 remaining under our share repurchase authorization. We remain committed to our investment grade profile and our balance sheet is strong. Before I cover our full year outlook for 2025, I’d like to note that we have provided additional schedules within the earnings release and the investor deck, which include our expectations for Playa in the third and fourth quarter of this year.

In these schedules and for simplicity, Playa’s results post acquisition are included for the entirety of the balance of the year with the assumption that the Playa real estate sale transaction does not close before the end of the year. However, based on current expectations, we anticipate the Playa real estate sale transaction could close by the middle of the fourth quarter of this year pending antitrust approval in Mexico. I’d like to note that approximately 60% of fourth quarter adjusted EBITDA for Playa’s real estate is forecasted to be earned in December. I’ll now cover our full year outlook for 2025, which does not include the impact of the Playa acquisition or planned real estate transaction. The full details of our outlook can be found on page three of our earnings release.

We continue to monitor the dynamic macroeconomic environment, and as the second quarter progressed, consumer confidence improved. However, lower chain scales underperformed our full service chain scales, especially in The US. We expect lower chain scales in The US to underperform luxury and international markets in the third quarter, which is in line with the expectations that we shared during our first quarter call. Our full year 2025 RevPAR range of one to 3% implies RevPAR growth for the balance of the year of between flat to up 2%, and we expect the third quarter to be towards the lower end of our balance of the year range and the fourth quarter at or above the high end of our balance of the year range. For The United States, we expect RevPAR for the balance of the year to be around flat compared to last year.

We expect third quarter RevPAR growth to be flat to down slightly, and we expect to return to positive RevPAR growth in the fourth quarter led by group and business transient as we lap the presidential elections last year. For Greater China, visibility remains limited. But as we lap easier comparisons to last year, we believe RevPAR could be up in the low single digits for the balance of the year. We anticipate our properties in Asia Pacific, excluding Greater China, will have the strongest growth in RevPAR of any geographic regions as they continue to benefit from significant international inbound travel. In Europe, we expect RevPAR growth to be flat for the balance of year with RevPAR growth contracting in the third quarter as we lap difficult comparisons, including the Olympics in Paris last summer.

We expect RevPAR growth to be positive in the fourth quarter. We are maintaining our net rooms growth outlook range of 6% to 7%, which does not include rooms added from the Playa acquisition. Gross fees are expected to be in the range of 1.195 to $1,215,000,000, a 10% increase at the midpoint of our range compared to last year. Adjusted EBITDA is expected to be in the range of $1,085,000,000 to $1,130,000,000 a 9% increase at the midpoint of our range compared to last year when adjusting for the impact of asset sales. As a reminder, owned assets sold in 2024 accounted for $80,000,000 worth of owned and leased segment adjusted EBITDA last year.

Our full year adjusted EBITDA outlook implies balance of year growth of 6% at the midpoint of our range. We expect most of our year over year growth of adjusted EBITDA, excluding the impact of asset sales for the balance of the year, to occur in the fourth quarter as we lap easier comparisons, especially in The US, which has a more favorable calendar, as well as higher one time g and a cost last year that will not repeat this year. In the third quarter, we expect weaker demand among lower chain scales, impacting select service RevPAR in The United States as well as earnings in the distribution segment. As

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: a

Joan Bottarini, Chief Financial Officer, Hyatt: reminder, our owned Park Hyatt properties in Paris and Chicago benefited from the Olympics and Democratic National Convention, respectively, in 2024. Adjusted free cash flow is expected to be in the range of 450 to $500,000,000, which excludes 117,000,000 of deferred cash taxes paid in 2025 related to asset sales that took place in 2024. We are reinstating our full year outlook for capital returns to shareholders and expect to return approximately $300,000,000 in 2025 inclusive of share repurchases and dividends. Our capital allocation priorities remain unchanged. We are committed to our investment grade profile, identifying opportunities to invest in growth that creates shareholder value, and returning excess cash to shareholders in the form of dividends and share repurchases.

In closing, we are proud of our second quarter results and the strong execution around the Playa acquisition that will deliver asset light earnings at a very attractive multiple once the sale of the real estate is completed later this year. We believe our commercial and growth strategy, the quality of our brand portfolio, and operational agility position us well to navigate this dynamic environment, and we remain committed to delivering against our long term financial and strategic objectives. This concludes our prepared remarks, and we’re now happy to answer your questions.

Conference Operator: Thank you. We will now begin the question and answer session. We’ll take our first question from Connor Cunningham at Melius Research.

Connor Cunningham, Analyst, Melius Research: Hi, everyone. Thank you. Been very busy over the past couple of months. So again, I appreciate the detail in the slide deck too on just the outcomes for the low and the high end as well. So thank you there.

Just on the improvement

Analyst: that

Connor Cunningham, Analyst, Melius Research: you expect through the remainder of the year, I’m just trying to understand it a little bit better. It seems like you expect some weakness in the third quarter. Is that mostly isolated to July and then things get better? I’m just it just there’s a lot of comp headwinds and whatnot. It seems like the biggest swing factor is on the BT side.

So just any thoughts on the moving parts as we move throughout the year? What gives you confidence that things get better towards the year end? Thank you.

Joan Bottarini, Chief Financial Officer, Hyatt: Sure, Connor. I’ll just summarize some of what I said in my prepared remarks. As we look at the second half of the year and relative to the EBITDA guidance that we provided for the full year, the second half would suggest a would reflect a 6% growth in EBITDA for the second half. And I mentioned that we expect the majority of that to be earned in the fourth quarter because, as you said, in the third quarter, as you mentioned, there are some, in particular, tougher comps, several one time events including the Olympics and the Democratic National Convention. Those one time events will as they were realized in the second excuse me, the third quarter of last year, that that is one of the headwinds that we will have in the third quarter.

We also have slower group pace growth in the third quarter that we’re seeing right now. So it is slightly negative. As Mark mentioned earlier, our group pace is flat for the remainder of the year, and so the third quarter is negative as of right now. And then there’s some slower pickup in our lower chain scales, and that impacts our upscale business in The U. S.

As well as our distribution business. So that is sort of the headwinds in the third quarter, just to give a little bit more color. And then on the fourth quarter pickup, yes, there are easier comps because of onetime events in the fourth quarter, including some of the holiday shifts and the presidential election in November. Easier comps there in the fourth quarter. We’re seeing some better pickup on the BT side that we expect to realize post Labor Day into the fourth quarter.

That’s still a shorter term business, but as we talk to our top corporate customers, they are confident in getting back on the road post Labor Day. So that is what we’re hearing and what we’re seeing in the numbers recently. The group pace numbers, I mentioned that while we’re flat for the full for the entirety of the second half of the year, the fourth quarter is positive. So that gives us confidence. Obviously, we have, you know, more visibility to group pace, so that’s that’s a positive in the fourth quarter.

So there’s quite a few reasons for the difference in the growth rates that we expect in the third quarter and the fourth quarter. And we feel really good about our expectations based on what was the bookings that we’re seeing and those estimates that we provided for the remainder of the year.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: I would just add that if you if you pick your head up from this year into next year, the group pace into next year is extremely strong with a lot of it represented by rate increases. So while I think Joan explained the profile of the remainder of the year with great detail, I think the maybe the more important message is that we see a an improving picture heading into 2026 in addition to all the things that Joan just mentioned.

Connor Cunningham, Analyst, Melius Research: Yeah. The x are right. It’s certainly encouraging. But maybe I can ask another one just on the co branded credit card negotiations. I mean, just trying to understand a little bit better on the timeline and what you guys are trying to accomplish.

From an outsider’s perspective, you’ve obviously have a ton of growth in luxury. Your loyalty members are up over 400%. It just seems like you’re in

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: a pretty good negotiating position. Just any level if you

Connor Cunningham, Analyst, Melius Research: can level set us there, would be great. Thank you.

Joan Bottarini, Chief Financial Officer, Hyatt: Connor, we will update you as soon as we have something to update. As we’ve mentioned, we do feel good about what we’ll be able to accomplish, but we’ll provide more specifics on our expected economics as soon as we’re able to do that. And I I would I would expect, you know, maybe we’ll be in a position later this year, early next year.

Connor Cunningham, Analyst, Melius Research: Okay. Had to try.

Patrick Skull, Analyst, Truist Securities: Thank you.

Conference Operator: We’ll move next to Steven Grambling at Morgan Stanley.

Steven Grambling, Analyst, Morgan Stanley: Hi, thanks. Just know you’ve done a lot with getting the Playa real estate sale done here or on the path to being completed by the end of the year. But as we think about other hotel dispositions, maybe remind us of where you stand and how you think about capital allocation from any proceeds that could come out from that?

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Sure, Stephen. Thanks for the question. Proceeds Joan mentioned this, but the proceeds from the sale of the Playa real estate will go entirely to pay down debt that’s outstanding associated with that. It is it does actually satisfy the goal that we set for real estate dispositions at $2,000,000,000 Having said that, you heard that we’ve got a lot of activity in other assets, and we will continue to stay focused on further dispositions. And that will certainly allow us to have more flexibility with respect to return of capital to shareholders.

And we expect that picture, that is the return of capital to shareholders, to continue to improve as every quarter that goes by, we become increasingly fee based in our earnings mix and the conversion to free cash flow is going up. And it’s also true that we have a fortress balance sheet as it is post the pay down of the debt that we took on for the Playa acquisition. So I think that’s what you can expect to see over the next eighteen months.

Steven Grambling, Analyst, Morgan Stanley: And one very quick follow-up. You talked about the improving free cash flow conversion. Maybe I missed this in your opening remarks, but how is the big beautiful bill potentially going to impact your your cash taxes? And how you think about cash conversion over the next couple of years?

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: It’ll have some impact. We have the benefit, like everybody else does, of accelerated depreciation. And that while the form of the capital that we’re spending is much less about bricks and mortar and investments in hotels and more about technology, that those are all qualified for accelerated depreciation as well. So I think we will realize some benefits with respect to our cash taxes as a result of that. Beyond that, I’m not sure that there’s much to to talk about.

Joan Bottarini, Chief Financial Officer, Hyatt: No. Just to reinforce the fact that free cash flow as we sell real estate, continue to sell real estate and get to our 90% expectation for, asset light earnings

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Yeah.

Joan Bottarini, Chief Financial Officer, Hyatt: That we’ll have, greater and greater levels of free cash flow conversion over time.

Steven Grambling, Analyst, Morgan Stanley: Great. Thanks. I’ll jump back in the queue.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Thanks, Stephen.

Conference Operator: We’ll move to our next question from Shaun Kelley at Bank of America.

Shaun Kelley, Analyst, Bank of America: Hey. Good morning, everyone. Thank you for taking my questions. Mark or Joan, maybe one place to start would be just kind of can you help us with the building blocks for next year overall? I think for the most part, the investment community gets some, but there is a lot moving around.

So if we think about kind of part one being the clean Playa fees once the real estate is divested, part two being the credit card deal, part three being some amount of organic net unit growth and then part four being trying to think about owned and leased pieces that are kind of net or maybe we need to annualize. Can you just help with some parameters around sort of each of those areas just as people are starting to kind of look out a little further and want a clean look at what Hyatt really can do on the earnings power side next year? That’d be great.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: I think we’ll split this up. Joan, you can take the first two, and I’ll jump in after that.

Joan Bottarini, Chief Financial Officer, Hyatt: Okay. Sean, I’ll take the So Mark had had mentioned, the expectations that, actually, we we published when we announced the deal, the the Playa acquisition deal that, ultimately, the the the contracts that we’re entering into, the fifty year contracts, with the Tortuga buyer, reflects about 60 to 65,000,000 of fees on an incremental basis. So when you look at that at a on a full year basis, what we were what we were realizing pre acquisition was about 15 to $20,000,000 of franchise fees. So that is the increment for 2026 relative to Playa.

And and and with respect to that’s on the fee side. And with with respect to the credit card, I’ll just reiterate what I just responded to, which is that we will provide you insight into economics as soon as we’re able to do that, as soon as we have a deal to share. So later when we provide guidance for 2026 more officially, we’ll be sure to give you some insight into that.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: And then on the other two points. First, the asset sale impacts, we’ve laid out on Page 15 of the investor information deck that was released this morning, the quarter by quarter adjustments for 2024. And we will continue to report these adjustments out on a quarterly basis to facilitate everyone’s ability to understand what the impact is on a year over year basis. I think baseline as we head into next year is is, you know, is established the foundation is established with really strong group pace and a continuing positive outlook for leisure travel, especially in the luxury leisure segment. I know that overall leisure numbers have been weaker, but that’s primarily driven, if not entirely driven, or maybe more than 100% driven by lower chain scales.

So that’s not where we live. And if you include Europe in in the outlook with respect to leisure, it’s actually even better. So we were US resorts were up mid single digits year to date. If you include and all inclusive resorts in The Americas were up almost 7%. If you include Europe, it’s up 8%.

So that’s year to date, but the outlook continues to be very strong. Pace into the remainder of the year for our HIC Height Inclusive Collection hotels is strong, as is the pace outlook for the Playa hotels that we now own. So I think the the most important thing in terms of the the the outlook heading into 2026 relates to those dynamics, where we’ve got big chunks of our business that all have positive signs. And I I don’t remember what your fourth oh, NRG, of course. How could I forget?

We are on pace this year to a great outcome, in my opinion. I with the 70 basis points that we added to the outlook is has to do with the Playa transaction. But our our feeling and our sentiment, especially given the increased signings pace in the second quarter and some of the dynamics that we’re seeing in some of the traction that we are starting to see really grab hold in the upper mid scale for us. And our focus on that area is, in my opinion, going to continue to be the tailwind. And so I think we’ll have wind in our sails with respect to energy heading into next year and the year after that.

And I’m increasingly confident that we’ll be able to maintain those levels of growth as we look forward.

Joan Bottarini, Chief Financial Officer, Hyatt: Yes. And I would just add, for your modeling purposes, Sean, the confidence that Mark just described about the business and our growth, this all leads to our confidence in the c l go helping holding up. So Yeah. I think that helps with respect to, what you’re looking for for modeling into next year.

Michael Bellisario, Analyst, Baird: Yep.

Shaun Kelley, Analyst, Bank of America: Thanks. I know that was a long one. Just a clarification, Joan, and I will, I won’t go any deeper. But just, for the incremental fees from Playa in terms of numbers that you gave, I think that, you’d originally laid out 55,000,000 to $60,000,000 Just to be clear, that’s the incremental fees. In addition, you keep the fees that you already had, right?

So but that will be the incremental bump for $26 over 2025.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Yes. The incremental that number is the incremental first of all, it was 60,000,000 to 65

Joan Bottarini, Chief Financial Officer, Hyatt: Fees. Top line fees.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Top line fees that net of the franchise fees that we would have received from Playa.

Joan Bottarini, Chief Financial Officer, Hyatt: Right. Which is why I provided those because when you actually look at the second half of this year

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Right.

Joan Bottarini, Chief Financial Officer, Hyatt: When you consolidate Playa,

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: you’re going to

Joan Bottarini, Chief Financial Officer, Hyatt: see a, which is which is you’ll see that on page three of the earnings release

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Yep.

Joan Bottarini, Chief Financial Officer, Hyatt: That, on a consolidated basis, for the second half of the year, we don’t earn any fees because we own the real estate.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: We own the real estate. Yeah.

Shaun Kelley, Analyst, Bank of America: So that

Joan Bottarini, Chief Financial Officer, Hyatt: is why I provided the 15 to 20, which was the pre acquisition fee franchise fees that we collected from Playa. The 50 to 55 that you’re referencing, Sean, that was an EBITDA number that we provided.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Yeah. So, yeah, just to be clear, the 60 to 65 is the gross fees. That number is net of $17,000,000 that we would have otherwise received. And the 50,000,000 to $55,000,000 is the EBITDA that’s implied from those from the 60,000,000 to $65,000,000 of fees. Is that clear?

Shaun Kelley, Analyst, Bank of America: And that’s it. It’s clear. Thank you so much. I know it’s a

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: lot. Yep.

Conference Operator: We’ll move next to Michael Bellisario at Baird.

Michael Bellisario, Analyst, Baird: Mark, two parter for you on the recent brand acquisition. Just first on Standard and but here, Crunchy Pay. Where are we in the process of integration on the various milestones that that you guys worked through? What what is isn’t bookable on Hyatt channels? How has loyalty contribution trended so far?

And then that $11,000,000 of fees that you referenced in the press release, how was that relative to your expectations? And then secondarily for Playa, what sort of the integration time line there for the converted hotels? And then also your expected step up in the associated distribution earnings over time?

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Thanks, Michael. With respect to Standard, we are live across the portfolio. There may be one hotel in their portfolio that’s not live on World of Hyatt yet. I’m not sure. The Manor, I think, was the last hotel to convert or to be brought live.

So I as I sit here, I just don’t remember, but it’s a single hotel. The early results are quite remarkable. You know, Amar Lovani, who runs our lifestyle team, ran, development and and was a key leader for w when w hotels were launched when he worked at Starwood. And so he understands exactly how a a premier world class sort of loyalty program with the right customer base can actually interface with a lifestyle group where you don’t end up with sort of cognitive dissonance when you walk walk into our hotels. And so there’s a profile of customer that is going to be attracted to Standard, but the early results are really better than we expected in terms of contribution.

The Standard hotels are performing extremely well. That strength is maintained through our acquisition of the company. So everything that we are looking at is displacement of more expensive channels. So the owners of those hotels will benefit a lot from World of Hyatt members now staying in their hotels, and we expect that to grow further over time. So we will buttress and and strengthen the overall earnings profile for those hotels and reduce distribution costs all at the same time.

So we we’re really very favorable about that on that. As to the corporate integration work, that’ll continue to unfold during the remainder of the year. Omar and his team have done a complete inventory of all of our lifestyle hotels and also identified a lot of runway. So they’re they’re they’re sort of tag teaming their time through getting the integration work done and growing all of our brands. And we’ve already seen some really significant activity in our lifestyle brands, including Branded Resy, which has been super encouraging.

With respect to Baia Principe, likewise, that’s that is fully managed out of the JV that we have a 50% interest in. And that integration work continues. I think we did fast track World of Hyatt integration into those hotels. I don’t know whether that’s taken hold quite yet. If it has, it’s been only literally in the last few days.

So we have yet to really see significant impact with respect to our customer base into those hotels. Having said that, the business is is performing quite well, at least as well as our as our underwriting and pro form a expectations. And the third one, the third area that you asked about was? Or is it just by a participant standard?

Michael Bellisario, Analyst, Baird: Well, the the third is just just on the the Playa hotels that you’re gonna convert. Just

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Oh, yeah. Sorry. Thank you. Yes. There is disruption with respect to the rebranding.

All of that will we will be fully ramped by by the end of the year. So that is that’s underway, and and we are turning on the channels that we have unique capabilities in, including ALG vacations. And so, yes, there is disruption there. Anytime you change brand groups, you’re gonna end up with disruption, but we’ll all of that will be fully behind us come January ’26.

Michael Bellisario, Analyst, Baird: Very helpful. Thank you. Thanks.

Conference Operator: We’ll move next to Smedes Rose at Citi.

Analyst: Hi, thank you. I did have one more question around your supplier acquisition. I think as part of that you kept a $200,000,000 preferred interest in assets. And just going forward, I assume that the well, I don’t know if you can give any kind of scope on kind of the interest you expect to receive there. I assume that’s not included in the fees that you’ve lined out going forward.

Or again, just sort of thinking about building blocks for next year, would that be a significant sort of economic interest for you?

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Yes. So quick summary. The returns associated with that preferred are not fees, period. So they don’t show up in the fee line. That’s not we’re not conflating anything or or recharacterizing anything, just to be super clear about that.

Second, the way that that piece of paper is structured, it will encourage the buyer to refinance and repay that over time. So I’m not going to go into the specifics about at what rate the paper is issued at this point. Structurally, it has features in it that over time will step up. So we expect that refinancing will be available. One of the reasons we were so confident about the sale of this real estate, first of all, we know the market extraordinarily well.

We’re the largest player in this asset class as manager. And secondly, the yield profile for these assets is is quite high, and it’s quite high relative to anything that you might find in The United States, for example. And I think that over time, people will come to understand and that the institutional community, as evidenced by our sale, by the way, will not only understand but take advantage of that. And that is what allows you tremendous financial flexibility. So, yes, the buyers will earn a very attractive yield, and that’s in part because that’s what the market is.

It is also true that the free cash flow that that results from that, gives them tremendous financial flexibility. So they’re set up for, I think, a very good rate rate of return, and we’re set up for getting our capital back.

Joan Bottarini, Chief Financial Officer, Hyatt: That’s right.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: And and fifty year management agreements for the hotels that are staying in our system.

Joan Bottarini, Chief Financial Officer, Hyatt: Right. And and before we move to the next question, I just wanted to clarify. Adam just, clarified a point I’ve made earlier, and this is in reference to Sean’s question. Our EBITDA expectations for 2026 for Playa are 55 to 60,000,000, and that has not changed since what we previously published. So, just wanted to make sure that that was clear.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Yep. Sorry. That was $5,000,000 lower than that’s what I said. So that was my mess up. Sorry about that, Jeff.

Joan Bottarini, Chief Financial Officer, Hyatt: Oh, no. We haven’t changed our expectations.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Can I just can

Analyst: I just switch over for a moment to, I know Hyatt Studio has been a big focus of kind of your rollout, and I I assume it’s an important part of your net rooms growth expectations? Any kind of change or updates you can provide there in terms of how that rollout is going?

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Not really. It’s more of what we described last quarter. We have more hotels under construction. We have a lot more in the funnel. And so we are very focused on converting into signed contracts and then into construction.

But the early results in mobile are very, very strong. So we feel good about that. And I would point you to pages six and seven of the investor information pack that we that we deck that rather that we published this morning. Really, what that demonstrates pretty starkly is just how big the opportunity is for us. The whole the whole the whole strategy has been based around building and strengthening the halo that Hyatt has enjoyed for many years as a premier player and as a high quality player and as a as a high rated player.

So we’ve established the top end in a proportion that is vastly in excess in terms of our system, that is, to our competitors. And now as we lean into all of these markets in which we have no representation, we believe that we’re going to find tremendous take rate. Because the network effect for us is inviting a lot of people to start staying with us and existing members to to stay with us since we’ll have something in those markets. They already we already have in place the resort portfolio and the luxury portfolio that provides the aspiration for all of our mobile type members, that’s partly what’s driving a 27% compounded growth rate from 2017. And, cumulatively, we’re we’re growing 20% every quarter that goes by, almost 60,000,000 members, which is more than twice the number of members that SPG had when Marriott purchased Starwood.

So we are really seeing tremendous, traction in both World of Hyatt and the interest in our brands in these wide open markets. But I would I would definitely take a look at pages six and seven. That’ll give you a very clear picture about where we stand and why we’re so confident about our growth rate going forward.

Patrick Skull, Analyst, Truist Securities: Great. Thank you. I appreciate it.

Conference Operator: We’ll go next to Vince Chaikin at Mizuho.

Michael Bellisario, Analyst, Baird: Hey. Thanks for taking my questions. You have three additional assets you referred to in the prepared remarks. Think you said I believe you said one hotel under one hotel signed and two under LOI. If you dispose of more this year, would that increase your shareholder return expectations?

And then I don’t know if you want to touch this or not, but is there any way to size that opportunity for those three hotels? And then one follow-up. Yes.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Our practice is to provide specifics once we close transactions, so we’ll wait to do that. But the answer to your question is, first, you’ve heard us repeat, I don’t know how many times, that we’re committed to an investment grade profile. We are well on our way to doing that with the paydown of the debt once we close the Playa real estate transaction. So we it those transactions, assuming that they close this year, could open up additional opportunities for us. And as we look into next year, as I mentioned earlier, we do have an expectation that we we will be able to lean more heavily into shareholder returns, for all the reasons that we discussed earlier.

Michael Bellisario, Analyst, Baird: Got it. And then just one quick follow-up. Just what what are you seeing in China either by chain scale or customer segmentation? Any any color would be helpful. Thanks.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Yeah. The word of the day in China is caution and conservatism. The impact of the current policies that are in place plus concern over the potential impact from continued friction over tariffs has led to, I would say, a tremendous level of caution, more more significant than we experienced in The US. It’s depending on what quarter you look at, we’ve seen sustained demand in business transient and then, more recently, leisure. But, in fact, what’s happening is, that a lot of the higher end customers in China, are actually spending more as they as they move as they travel outside of China.

But outside of China is not spending in China because inbound traffic remains very low. So right now, I would say name of the game is caution and conservatism. And I think that the there’s an increasing expectation that there will be some policy shifts. Beijing is very historically, the government is very responsive and sensitive to customer sentiment. So there is a growing expectation that there will be some policy shifts and possibly some more clarity around the tariff picture.

So I would say that we don’t have a tremendous level of a crystal ball because everything is shortened up in terms of bookings. But we don’t see really any significant holes as we look forward nor is there a way for us to predict that we’re gonna see a massive recovery in this year. And by way of reminder, total fees that we earn out of China are roughly 7% of our total fee base.

Conference Operator: We’ll go next to Patrick Skull with Truist Securities.

Patrick Skull, Analyst, Truist Securities: Hi. Good morning, everyone. Thank you. Now that the Playa transaction is closed and it seems like it is going well and as intended, Would it be completely unrealistic to think there could be a similar opportunity with, the public hotel REITs, which seem to be trading below NAV, the opportunity for you to be to flip the real estate and then enter into similar long term management contracts? Again, would that be completely on your list?

Do think you that might be something you’d be interested in it? Patrick,

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: thanks for that. I’m I’m a 100% sure I I can’t comment

Joan Bottarini, Chief Financial Officer, Hyatt: on your question. I I

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: know it’s just a little less than old days. I don’t know which really what what the realm of possible explanations is or or responses is. Look, I can tell you that we are really focused on our organic growth and also focused on the things that are really in our wheelhouse. So I really I’m not sure that I I have much to say beyond that.

Patrick Skull, Analyst, Truist Securities: Okay. Thank you. It was just some investor chatter there that I wanted to to ask my question. A more standard question here for Joan. I didn’t hear you mention about, unless I missed it, expectations on The Caribbean for the rest of

Analyst: the year. I wonder if you

Patrick Skull, Analyst, Truist Securities: could talk about that. Thank you.

Joan Bottarini, Chief Financial Officer, Hyatt: Yeah. I we’re very encouraged with what we’re seeing on the booking side in The Caribbean. I mean, we have I think Mark mentioned in his prepared remarks that our pace going into the third quarter is in the 5% range, and, the Playa portfolio is also performing really well. I think it’s, in that same, you know, mid single digit range.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Maybe maybe a little lower because of the the brand conversion.

Joan Bottarini, Chief Financial Officer, Hyatt: Yeah. The brand conversions maybe is having a little bit of an impact, but very strong booking. So I you know, we’re very encouraged by the level of activity we’re seeing going into that market.

Connor Cunningham, Analyst, Melius Research: Okay. Thank you.

Conference Operator: We’ll move next to Richard Clark at Bernstein.

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt0: Hi, there. Thanks for taking my question. Just some questions, I guess, on the last division you not talked about, which is the distribution. Revenue is down year on year, maybe despite an expected Easter boost. And just the mechanics, you said you think you can make some more money in distribution post the acquisition of Playa.

How does that work? Is it more volume or better returns? And just to clarify that any of that in your guidance for this year, some boost to distribution from the side?

Joan Bottarini, Chief Financial Officer, Hyatt: Yeah. You heard right, Richard, that absolutely there’s an opportunity to better utilize that distribution channel from the Playa hotels. They, from a competitive perspective, they did not, utilize that in their revenue management distribution strategy in those hotels. So, now the combination provides a great opportunity for us to fill in into inventory in those properties, leveraging the expertise and and the abilities of ALGB to find good good spacing and booking windows to optimize for those hotels. So that will be that will be recognized for us into 2026.

We’re we’re still ramping into that chain that shift in strategy. And so that would be included in the EBITDA numbers that I just reiterated from our expectations for next year for Playa. And the 55 to 60 for 2026 would include some distribution earnings as a result of that strategy.

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt0: And and and the decline this year, year on year in

Connor Cunningham, Analyst, Melius Research: the in the quarter despite what

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt0: we might think could be an Easter boost to that business?

Joan Bottarini, Chief Financial Officer, Hyatt: Yeah. I you know, we had we had mentioned at the first quarter earnings call that we expect to be flat. Based on what we’re seeing, which is the continued momentum of lower chain scales in those markets, you know, actually realizing some book some bookings that are a bit softer, that’s going to impact distribution in in the third quarter. And we still anticipate being, you know, flat to slightly down, maybe between zero to 5% down in the distribution business for the full year. And that’s because of the structural lower chain scale performance that we’re seeing in that business.

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt0: Understood. Thank you.

Shaun Kelley, Analyst, Bank of America: We’ll

Conference Operator: move next to Duane Pfennigwerth at Evercore ISI.

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt1: Hey, thank you. Just a couple of quick ones. One on SG and A, as you your comment about an inflection point kind of caught our attention. Is the story more about scaling your current SG and A with top line growth? Or is there an efficiency opportunity?

And for my follow-up, can you just remind us what the remaining asset sale target is after Playa? Is there any way to think about that on an annual basis? Thanks for taking the questions.

Joan Bottarini, Chief Financial Officer, Hyatt: So, Dwayne, the way I would answer your s g and a question is when we had set forth our guidance for this year, that guidance actually is a decline on a, call it, a a year over year comparable basis, 2024 to 2525. So we’ve been very disciplined around s g and a, and so the growth rate has declined on the core business. The increase the slight increase that you see in the guidance relative year over year is due to is entirely due to acquisitions. So that’s how we’re managing g and a. We have a little bit of timing.

You’ll you’ll notice that the first half is a is a bit smaller as a proportion to the full year estimate. That’s just a little bit of timing in the second half.

Shaun Kelley, Analyst, Bank of America: Timing cost.

Joan Bottarini, Chief Financial Officer, Hyatt: I’m sorry.

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt1: Got it. And And then just on the remaining asset sale target after Playa, is there any way to think about that on an annual basis as we think kind of longer term?

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: No. Our practice has been to optimize results that is sale results and be really diligent about and thoughtful about who we’re selling to. We’ve executed this way since 2017 at multiples far in excess of anything that’s been attributed to our real estate portfolio. We we we had every expectation of doing that because we we have clear clarity around what our assets are worth. So we will be disciplined in that, but we will stay leaning forward into executing.

So you could expect to see a steady stream of dispositions over time. But I dare not try to guess at what the volumes of that might look like because that’s beyond my pay grade.

Adam Roman, Senior Vice President of Investor Relations and Global FP&A, Hyatt1: Can you just remind us, is total there amount remaining that you’re targeting?

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: No. Frankly, on the one hand, I would say everything is for sale. So there’s no there are no sacred cows. On the other hand, I’ve said in the past, and I’ll just reiterate now, I don’t think that we will ever get to zero. That’s an unrealistic expectation and not evidenced anywhere in the industry.

Connor Cunningham, Analyst, Melius Research: Okay. Thank you.

Mark Hoplamazian, President and Chief Executive Officer, Hyatt: Thanks. I just want to say thank you to all of you for your time this morning. We appreciate your interest in Hyatt, and we certainly hope to see you all showing your lovely faces in our hotels so that we can even do better, and report better results next quarter. So, enjoy the rest of your day. Thank you.

Conference Operator: And this concludes today’s conference call. Thank you for participating, and have a wonderful day. You may all disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.