Hyatt Hotels (H) Q2 2026 earnings summary

Executive summary

• System-wide RevPAR grew 5.9% year-over-year in Q2 2026, led by luxury and upper upscale segments, with strong leisure and group demand, and notable contributions from the FIFA World Cup, offsetting regional headwinds in the Middle East and Mexico.

• Net income attributable to shareholders was $110 million, with adjusted EBITDA of $297 million, and diluted EPS at $1.14, reflecting strong operational and financial performance.

• Net rooms grew 3.9% (4.4% excluding Playa Hotels adjustments), with the development pipeline reaching 154,000 rooms, up 10% year-over-year.

• World of Hyatt membership expanded to 69 million, up 17% year-over-year, reinforcing loyalty and brand strength.

• Maintained a disciplined asset-light strategy, focusing on durable fee growth, cash flow, and long-term shareholder value.

Financial highlights

• Gross fees increased 8% to $324 million, driven by higher base management, incentive, and franchise fees, especially in the U.S. and Asia Pacific.

• Adjusted EBITDA rose 3.4% year-over-year to $297 million, or 8.8% after adjusting for asset sales.

• Owned and leased segment adjusted EBITDA increased 16% (adjusted for asset sales); distribution segment EBITDA declined due to temporary hotel closures and lower demand in Mexico.

• Total liquidity stood at $2.1 billion, including $606 million in cash and $1.5 billion in revolving credit capacity.

• Returned $175 million to shareholders year-to-date via repurchases and dividends; $1.5 billion remains under repurchase authorization.

Outlook and guidance

• Raised full-year 2026 system-wide RevPAR growth outlook to 3.5%–4.5%; U.S. RevPAR growth expected at 3%–4%.

• Net rooms growth forecast at approximately 6% for 2026, with over half of openings in Q4.

• Net income guidance for 2026 is $250–$335 million; adjusted EBITDA expected between $1,155–$1,205 million, up 13%–18% from 2025 baseline.

• Adjusted free cash flow for 2026 expected at $580–$630 million; capital returns to shareholders projected at $325–$375 million.

• Third quarter global RevPAR growth expected at the low end of the full-year range; Net Package RevPAR to be moderately below last year.