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Did Hyatt Hotels beat or miss consensus estimates last quarter?

- **Revenue Growth**: System-wide RevPAR +0.3%, luxury brands lead with +1.6% leisure transient RevPAR. U.S. RevPAR -1.6% due to select service underperformance.
- **Loyalty Expansion**: World of Hyatt members +20% YoY to 61M, Chase partnership to add $50M in 2025, scaling to $105M by 2027.
- **Pipeline Momentum**: Net rooms growth 12% Q3, pipeline +4% YoY to 141,000 rooms. New brands (Hyatt Select, Unscripted) driving organic growth.
- **Financial Strength**: Adjusted EBITDA $291M, free cash flow guidance $475-525M, incl. $47M Chase payment. 2026 G&A target $440-445M (-$10M YoY).
- **China Confidence**: 50 Hyatt Studios pipeline with Homeinns, luxury RevPAR +6% despite macro challenges.

**【CEO Summary Section】**
- **Revenue Performance**: System-wide RevPAR grew 0.3% Q3 2025, driven by luxury brands (+1.6% leisure transient RevPAR) and strong all-inclusive portfolio (7.6% net package RevPAR growth). U.S. RevPAR declined 1.6% due to select service underperformance and holiday timing.
- **Transactions Progress**: Sold 1 Playa property for $22M, with 5 more owned hotels under LOI. On track for 90%+ asset-light earnings mix.
- **Growth Momentum**: Net rooms growth 12% Q3 (7% ex-acquisitions), pipeline expanded to 141,000 rooms (+4% YoY). New brands (Hyatt Select, Unscripted) signed deals across underserved markets.
- **Loyalty Program Strength**: World of Hyatt members surpass 61M (+20% YoY), fastest-growing major loyalty program. Expanded Chase partnership to generate $50M in 2025, scaling to $105M by 2027.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA $291M (in line with expectations), gross fees $283M (+6.3% ex-Playa). Owned/leased EBITDA +7%, offset by lower distribution segment earnings.
- **Cost Efficiency**: Restructuring charges $50M Q3, targeting 2026 G&A $440-445M (-$10M YoY). Free cash flow guidance raised to $475-525M, incl. $47M Chase upfront payment.
- **Balance Sheet**: Liquidity $2.2B, new $1.5B revolver expiring 2030. Repurchased $30M shares Q3, total returns $350M+ 2025.

**【Q&A Key Highlights】**
- **Net Rooms Growth**: 2026 target 6-7%, organic signings up 100% YoY. 38 hotels set to open Q4, 7 already opened.
- **Group Pace**: 2026 U.S. group pace +high single digits, driven by World Cup and America 250. Global group pace +3% Q4, booking trends strong for 2026-2028.
- **China Strategy**: Master franchise with Homeinns for 50 Hyatt Studios, leveraging JV success with UrCove by Hyatt. Leisure demand resilient, luxury RevPAR +6%.
- **Free Cash Flow**: Targeting 50%+ EBITDA conversion in 2026, up from 40% 2025. Credit card deal and asset sales driving incremental returns.

Hyatt Hotels Corporation(H)-20251106-2025 Q3 Earnings call transcript

- **Playa Deal Success**: $2 billion real estate sale and $60 million annual management fees starting 2026, with 8.5-9.5x EBITDA multiple.
- **Revenue Growth**: 1.6% RevPAR growth, luxury brands +5%, all-inclusive resorts +6%.
- **Loyalty Expansion**: 58 million loyalty members (+21% YoY), driving fee-based growth.
- **2025 Outlook**: EBITDA $1.085-$1.13 billion, free cash flow $450-$500 million, 6.7%-7.7% net rooms growth.
- **Q4 Recovery**: Earnings growth of 6% expected in Q4, with easier comps and post-Labor Day BT demand.

**【CEO Summary Section】**
- Acquired Playa Hotels & Resorts for $2 billion, with $60 million in annual management fees starting 2026. Sold Playa real estate for $2 billion, netting $143 million if conditions met.
- System-wide RevPAR grew 1.6% YoY, driven by luxury brands (+5%) and all-inclusive resorts (+6%).
- Loyalty members reached 58 million (+21% YoY), with strong co-brand credit card spend.
- Net rooms growth of 11.8% Q2, raising 2025 outlook to 6.7%-7.7%.
- Introduced Unscripted by Hyatt brand for mid-scale conversions, with 140,000 rooms in pipeline.

**【CFO Financial Commentary】**
- Gross fees $301 million (+9.5%), driven by international RevPAR and new openings.
- Adjusted EBITDA $303 million (+9% YoY, excluding asset sales).
- 2025 outlook: RevPAR 1%-3%, gross fees $1.195-$1.215 billion, EBITDA $1.085-$1.13 billion.
- Free cash flow $450-$500 million, with $300 million in capital returns (dividends + buybacks).
- Strong liquidity of $2.4 billion, maintaining investment-grade profile.

**【Q&A Highlights】**
- **Third Quarter Challenges**: Earnings growth of 6% expected in Q4, with Q3 impacted by onetime events (Olympics, DNC) and slower BT demand. Group pace flat for 2H2025, but +5% in Q3 for all-inclusive resorts.
- **Playa Transaction**: $55-$60 million EBITDA in 2026 from management fees and distribution. Preferred interest in real estate provides additional returns, but not included in fee line.
- **China Market**: Cautionary tone with conservative spending, but 7% of fees from China limiting impact.
- **Credit Card Deal**: Negotiations ongoing, updates expected late 2025/early 2026.
- **Asset Sales**: Target 90% asset-light mix by 2027, with $2 billion+ real estate sales pipeline.

Hyatt Hotels (H)-7 Aug 25-2025 Q2 Earnings call transcript

- **Q1 Growth Drivers**: 5.7% RevPAR growth led by luxury (+8%) and group/transient (+12%). U.S. RevPAR up 5.4% due to Easter timing and D.C. events.
- **New Brand Momentum**: Hyatt Select conversions gaining traction, Hyatt Studios Mobile booking 100% direct in first month.
- **Pipeline Expansion**: 138,000-room pipeline (+7% YoY), 10.5% net rooms growth in Q1.
- **Loyalty Surge**: 2M new members, 170bps loyalty penetration growth, co-branded card spend up significantly.
- **Playa Update**: Extended tender offer, nearing real estate sale agreement. $1B in financing secured, with asset sales proceeds to repay debt.
- **Near-Term Risks**: U.S. leisure/transient bookings down 8-10% YoY in upscale, but all-inclusive pace up 7% Q2 and luxury brands resilient.

**【CEO Opening Remarks】**
- Q1 2025 RevPAR growth of 5.7%, driven by luxury brands and strong group/transient demand. U.S. RevPAR up 5.4% due to Easter shift and Washington D.C. events.
- Introduced Hyatt Select brand for upper midscale conversions, with strong owner interest in secondary markets.
- Hyatt Studios Mobile opened successfully, booking 100% through direct channels.
- Global pipeline expanded to 138,000 rooms (+7% YoY), with 10.5% net rooms growth in Q1.
- World of Hyatt loyalty program added 2M members (56M total), with 170bps loyalty penetration growth.

**【CFO Financial Highlights】**
- Q1 GAAP net income: $420M; Non-GAAP EPS: $1.08 (vs. $0.95 consensus).
- Gross fees up 16.9% to $307M, driven by RevPAR growth and new openings.
- Adjusted EBITDA: $273M (+24% YoY, excluding asset sales).
- Full-year 2025 outlook: RevPAR 1-3%, gross fees $1.185-1.215B, EBITDA $1.08-1.135B.
- Repurchased $149M of stock Q1, with $822M remaining under buyback authorization.

**【Key Q&A Takeaways】**
- **Playa Transaction Update**: Extended tender offer to May 23; expects real estate sale agreement soon. $1B senior notes issued to fund acquisition, with proceeds from asset sales to repay debt.
- **U.S. Booking Trends**: Near-term leisure/transient bookings down 8-10% YoY in upscale brands, but group pace up 3% for Q2-25. All-inclusive pace up 7% Q2, luxury brands showing resilience.
- **Pipeline Construction Costs**: Developers anticipating 10-20% cost increases, but mitigating via U.S.-sourced case goods and modular construction.
- **Credit Card Renewal**: Expect competitive renewal of co-branded card program, citing strong World of Hyatt performance and high-end traveler appeal.
- **China Strategy**: UrCove by Hyatt pipeline expanding to 70+ hotels, focusing on urban adaptive reuse projects with state-owned partners.

Hyatt Hotels (H)-1 May 25-2025 Q1 Earnings call transcript

- **$2.6B Playa Acquisition**: Expands all-inclusive footprint, targets $2B+ asset sales by 2027 for >90% fee-based earnings.
- **Record Pipeline Growth**: 138,000 rooms (+9% YoY), 9,000 rooms opened in Q1 2025, 2024 net rooms growth 7.8%.
- **Strong Financials**: Q4 EBITDA $255M (+20% YoY), 2025 fee growth $1.2B-$1.23B (+11%), free cash flow $450M-$500M.
- **Loyalty Dominance**: 54M members (+22% YoY), 18% growth in co-branded card spend, highest per-cardholder spend in industry.
- **2025 Outlook**: RevPAR 2-4%, net rooms growth 6-7%, conservative on Lindner Group (2,000-room attrition assumed).


**【CEO Summary Section】**
- **Acquisition of Playa Hotels & Resorts**: Hyatt agreed to acquire Playa for $13.50 per share (~$2.6B), aiming to expand all-inclusive infrastructure and distribution channels (ALG Vacations, UVC). Hyatt plans to sell Playa's owned properties, targeting $2B+ proceeds by 2027 and >90% fee-based earnings mix.
- **Pipeline Growth**: Record 138,000-room pipeline (+9% YoY), including 7,100 rooms at Venetian Resort. 2024 net rooms growth of 7.8% (industry-leading), with 9,000 rooms opened in first 45 days of 2025.
- **Brand Expansion**: Luxury, resort, and lifestyle rooms tripled/since 2017. 2025 focus on upper mid-scale (UrCove, Hyatt Studios) with 120+ hotels in pipeline.
- **Loyalty Program Strength**: World of Hyatt membership hits 54M (+22% YoY), with record loyalty penetration and 18% growth in co-branded credit card spend.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: System-wide RevPAR +5% YoY, driven by business transient (+10%) and leisure transient (+4%). Adjusted EBITDA $255M (+20% YoY, ex-dispositions). Growth fees $294M (+17%), record franchise fees.
- **2025 Outlook**: RevPAR growth 2-4% (U.S. near midpoint, APAC ex-China strongest). Fee growth $1.2B-$1.23B (+11% YoY), 1/3 from Standard/Bahia Principe deals. Adjusted EBITDA $1.1B-$1.15B (+11% YoY). Free cash flow $450M-$500M, excluding $150M deferred taxes.
- **Balance Sheet**: $2.9B liquidity, $1B share buyback authorization remaining. Issued $600M senior notes to refinance 2025 maturities.

**【Q&A Key Takeaways】**
- **Net Rooms Growth Acceleration**: 2025 openings front-loaded (60% in H1), 40-50% conversions. Lindner Group insolvency assumed as 2,000-room attrition (conservative). 2025 net growth 6-7% vs. 2024's 7.8%.
- **M&A Strategy**: Focused on organic growth, with 90%+ fee-based target by 2027. Disposing high-value assets (e.g., NYC/Liverpool St. hotels) to free capital.
- **Credit Card Performance**: Co-branded card spend +18% YoY, highest per-cardholder spend in industry. Renewed contract in 2021; negotiations ongoing for 2025+.
- **FX Impact**: Neutral to slightly positive for 2025, with APAC ex-China benefiting from USD weakness.
- **Lindner Group Risk**: 2,000-room attrition assumed, but operations continue; upside if restructuring succeeds.


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