Shares of Hyatt Hotels fell 9% on Thursday after the company lowered its annual net rooms growth forecast, and flagged a hit from the Middle East conflict and unrest in Mexico during the second quarter.
Comparable system-wide hotels RevPAR increased 5.9%, compared to the second quarter of 2025. Comparable system-wide all-inclusive resorts Net Package RevPAR decreased 1.2%, compared to the second quarter of 2025.
Net rooms growth for the trailing twelve months was 3.9%, or 4.4% excluding rooms from the Playa Hotels Acquisition that were removed from Hyatt's room count in the second half of 2025.
Pipeline of executed management or franchise contracts was approximately 154,000 rooms, an increase of 10.0%, compared to the second quarter of 2025.
Diluted EPS was $1.14 and Adjusted Diluted EPS was $1.12.
Net income attributable to Hyatt Hotels Corporation was $110 million and Adjusted Net Income was $108 million.
Gross fees were $324 million, an increase of 7.8%, compared to the second quarter of 2025.
Adjusted EBITDA was $297 million, an increase of 3.4%, compared to the second quarter of 2025, or an increase of 8.8% after adjusting for assets sold in 2025.
Repurchased 62,605 shares of Class A common stock during the second quarter for an aggregate purchase price of $12 million. Year-to-date through June 30, 2026, the Company returned $175 million to shareholders through dividends and share repurchases.
Full Year 2026 Outlook
· Comparable system-wide hotels RevPAR growth is projected to be between 3.5% and 4.5%, compared to the full year 2025
· Net rooms growth is projected to be approximately 6%, compared to the full year 2025
· Net income attributable to Hyatt Hotels Corporation is projected to be between $250 million and $335 million
· Adjusted EBITDA is projected to be between $1,155 million and $1,205 million, an increase of 13% to 18%, compared to the full year 2025, after adjusting for the period of ownership of hotels acquired as part of the Playa Hotels Acquisition and assets sold in 2025
· Capital returns to shareholders are projected to be between $325 million and $375 million through dividends and share repurchases
Mark S. Hoplamazian, Chairman, President and Chief Executive Officer, said, "Our strong second quarter results reflect the continued strength of Hyatt's differentiated portfolio and the deep engagement of our high-value guests around the world. The resilience of our core fee business enabled us to absorb temporary regional headwinds while maintaining our full year outlook. Although we are taking a measured view on the timing of openings later this year, continued signing momentum and a high-quality development pipeline reinforce our confidence in Hyatt's long-term growth model and value creation strategy."
Second Quarter Operational Commentary
Luxury and Upper Upscale chain scales drove RevPAR growth in the quarter. Leisure transient and group RevPAR each delivered strong growth, while business transient RevPAR grew in the low single digits. Geopolitical conflict in the Middle East negatively impacted RevPAR growth by approximately 110 bps.
Net Package RevPAR decreased 1.2%, compared to the second quarter of 2025, reflecting softer demand in the second quarter, in part due to the security concerns in Mexico during the first quarter and lower airlift into certain destinations.
Openings and Development
During the second quarter, the Company:
· Opened 3,585 rooms. Notable openings included Miraval The Red Sea, the first Miraval property outside the United States and The Barai Hua Hin, introducing The Unbound Collection by Hyatt brand to Thailand.
· Announced a strategic master franchise agreement with Dossen Group to develop and operate hotels for the Hyatt Select brand in the Chinese Mainland, supporting future expansion of Hyatt's portfolio in the region.
Balance Sheet and Liquidity
As of June 30, 2026, the Company reported the following:
· Total debt of $4.3 billion.
· Total liquidity of $2.1 billion, inclusive of:
· $606 million of cash and cash equivalents and short-term investments; and
· $1,497 million of available borrowing capacity under Hyatt's revolving credit facility, net of letters of credit outstanding.
The Company repurchased $12 million of Class A common stock during the second quarter. Remaining share repurchase authorization as of June 30, 2026 totaled approximately $1.5 billion.
The Company's board of directors has declared a cash dividend of $0.15 per share for the third quarter of 2026. The dividend is payable on September 10, 2026 to Class A and Class B stockholders of record as of August 27, 2026.
