Hyatt Hotels Corporation

11/06/2025 | Press release | Distributed by Public on 11/06/2025 12:29

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
This Quarterly Report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about the Company's plans, strategies, and financial performance, and prospective or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the effects that the pendency of the planned Playa Hotels Portfolio disposition may have on us, the occurrence of any event, change or other circumstance that could give rise to the termination of the share purchase agreement; the effects that any termination of the share purchase agreement may have on us or our business; failure to successfully complete the planned Playa Hotels Portfolio disposition; legal proceedings that may be instituted related to the planned Playa Hotels Portfolio disposition; significant and unexpected costs, charges or expenses related to the planned Playa Hotels Portfolio disposition; inability to obtain regulatory or governmental approvals in connection with the planned Playa Hotels Portfolio disposition or to obtain such approvals on satisfactory conditions; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate ("ADR"); limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions, including political or civil unrest or changes in trade policy; the impact of global tariff policies or regulations; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as hurricanes, earthquakes, tsunamis, tornadoes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve specified levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations or realize anticipated synergies; failure to successfully complete proposed transactions, including the failure to satisfy closing conditions or obtain required approvals; our ability to successfully complete dispositions of certain of our owned real estate assets within targeted timeframes and at expected values; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of our real estate assets; unforeseen terminations of our management and hotel services agreements or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; risks associated with the introduction of new brand concepts, including lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and manage the Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; and violations of regulations or laws related to our franchising business and licensing businesses and our international operations.
These factors are not necessarily all of the important factors that could cause our actual results, performance, or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors could also harm our business, financial condition, results of operations, or cash flows. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified
in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
The following discussion should be read in conjunction with the Company's condensed consolidated financial statements and accompanying Notes, which appear elsewhere in this Quarterly Report.
Overview
Our portfolio of properties consists of full service hotels and resorts, select service hotels, all-inclusive resorts, and other properties, including timeshare, fractional, and other forms of residential and vacation units. On June 17, 2025, we completed the acquisition of Playa Hotels, a leading owner, operator, and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations. On June 29, 2025, we entered into a definitive agreement to sell the Playa Hotels Portfolio to an unrelated third party. We expect to close on the planned disposition of the 14 remaining properties in the Playa Hotels Portfolio by the end of 2025.
At September 30, 2025, our hotel portfolio consisted of 1,497 properties (366,347 rooms), including:
•648 managed properties (194,248 rooms), including 111 all-inclusive resorts (39,256 rooms), all of which we operate under management and hotel services agreements with third-party owners;
•692 franchised properties (127,387 rooms);
•45 owned and leased properties (15,734 rooms), including 17 hotels (6,060 rooms), 6 operating leased all-inclusive resorts (1,262 rooms), 4 operating leased hotels (1,697 rooms), 17 all-inclusive resorts (6,544 rooms), and 1 finance leased hotel (171 rooms), all of which we manage;
•21 managed properties and 2 franchised properties owned or leased by unconsolidated hospitality ventures (7,477 rooms);
•67 franchised properties (9,615 rooms) operated by an unconsolidated hospitality venture in connection with a master license agreement by Hyatt; including 6 properties (1,246 rooms) that are leased by the unconsolidated hospitality venture; and
•22 all-inclusive resorts (11,886 rooms) operated by a consolidated hospitality venture.
Our property portfolio also included:
•22 vacation units (1,997 rooms) under the Hyatt Vacation Club brand and operated by third parties; and
•41 residential units (4,458 rooms), which consist of branded residences and serviced apartments. We manage all of the serviced apartments and those branded residential units that participate in a rental program with an adjacent Hyatt-branded hotel.
Additionally, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and operate under other trade names or marks owned by such hotels or licensed by third parties. We also offer distribution and destination management services through ALG Vacations and distribution services through Mr & Mrs Smith, a boutique and luxury global travel platform.
We report our consolidated operations in U.S. dollars. Amounts are reported in millions, unless otherwise noted. Percentages may not recompute due to rounding, and percentage changes that are not meaningful are presented as "NM." Constant dollar disclosures used throughout Management's Discussion and Analysis of Financial Condition and Results of Operations are non-GAAP measures. See "-Non-GAAP Measures" for further discussion.
Overview of Financial Results
Consolidated revenues increased $157 million, or 9.7%,during the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024. Gross fee revenues and revenues for reimbursed costs increased $15 million and $36 million, respectively, primarily driven by higher revenues and improved operating performance at our existing properties as well as growth of our hotel portfolio compared to the quarter ended September 30, 2024. Owned and leased revenues increased $142 million, compared to the quarter ended September 30, 2024, due to the Playa Hotels Acquisition, partially offset by net disposition activity in 2024.
Comparable system-wide hotels Revenue per Available Room ("RevPAR") for the quarter ended September 30, 2025 was $146.24, which represented a 0.3% improvement compared to the quarter ended September 30, 2024 in constant dollars. Comparable system-wide all-inclusive resorts Net Package RevPAR for the quarter ended September 30, 2025 was $194.56, which represented a 7.6% increase compared to the quarter ended September 30, 2024 in reported dollars. See "-RevPAR and Net Package RevPAR Statistics" for further discussion.
During the quarter ended September 30, 2025, leisure transient RevPAR improved driven by travel outside of the United States and business transient RevPAR improved in the United States compared to the quarter ended September 30, 2024. Group RevPAR declined, compared to the quarter ended September 30, 2024, in part due to the timing of the Jewish holidays as well as the impacts of the Paris Summer Olympics and the Democratic National Convention in 2024. At September 30, 2025, group booking pace for October through December 2025 at our comparable full-service managed hotels in the United States is up 2.5% compared to the same period in 2024.
For the quarter ended September 30, 2025, we reported a $49 million net loss attributable to Hyatt Hotels Corporation, representing a $520 million decrease, compared to the quarter ended September 30, 2024, primarily driven by a decrease in gains (losses) on sales of real estate and other. Our consolidated Adjusted EBITDA for the quarter ended September 30, 2025 was $291 million, a $16 million increase compared to the quarter ended September 30, 2024. See "-Results of Operations" and "-Segment Results" for further discussion.
During the quarter ended September 30, 2025, we returned $45 million of capital to our stockholders through $30 million of share repurchases and $15 million of quarterly dividend payments.
RevPAR and Net Package RevPAR Statistics
The tables below include comparable system-wide RevPAR and Net Package RevPAR:
Three Months Ended September 30,
Number of comparable hotels (2) RevPAR Occupancy ADR
vs. 2024 vs. 2024
2025 (in constant $) 2025 vs. 2024 2025 (in constant $)
Comparable system-wide hotels (1) 1,138 $ 146.24 0.3 % 72.8 % 0.4 % pts $ 200.90 (0.2) %
United States 674 $ 149.44 (1.6) % 72.0 % (0.9) % pts $ 207.49 (0.4) %
Americas (excluding United States) 67 $ 158.60 3.9 % 68.7 % 0.1 % pts $ 230.77 3.7 %
Greater China 138 $ 89.61 1.7 % 76.2 % 2.8 % pts $ 117.56 (2.1) %
Asia Pacific (excluding Greater China) 113 $ 144.08 5.1 % 74.0 % 2.6 % pts $ 194.82 1.4 %
Europe 107 $ 232.52 1.2 % 76.2 % 1.4 % pts $ 305.30 (0.6) %
Middle East & Africa 39 $ 104.82 8.5 % 66.9 % 2.0 % pts $ 156.57 5.2 %
(1) Consists of hotels that we manage, franchise, own, lease, or provide services to, excluding all-inclusive properties.
(2) During the three months ended September 30, 2025, we removed the following properties from comparable hotels: five properties that left the hotel portfolio, two properties that experienced an extended closure, and one property that underwent a significant renovation.
Nine Months Ended September 30,
Number of comparable hotels (4) RevPAR Occupancy ADR
vs. 2024 vs. 2024
2025 (in constant $) 2025 vs. 2024 2025 (in constant $)
Comparable system-wide hotels (3) 1,138 $ 144.25 2.5 % 71.0 % 1.1 % pts $ 203.30 1.0 %
United States 674 $ 148.65 1.1 % 70.8 % - % pts $ 209.92 1.0 %
Americas (excluding United States) 67 $ 175.90 2.2 % 69.2 % (1.0) % pts $ 254.17 3.6 %
Greater China 138 $ 85.18 1.4 % 71.9 % 3.4 % pts $ 118.48 (3.5) %
Asia Pacific (excluding Greater China) 113 $ 148.34 7.9 % 73.1 % 3.0 % pts $ 202.89 3.5 %
Europe 107 $ 190.28 3.3 % 69.5 % 1.3 % pts $ 273.78 1.3 %
Middle East & Africa 39 $ 135.09 10.6 % 69.0 % 3.9 % pts $ 195.79 4.4 %
(3) Consists of hotels that we manage, franchise, own, lease, or provide services to, excluding all-inclusive properties.
(4) In addition to the properties removed from comparable hotels during the three months ended September 30, 2025, we also removed the following properties during the nine months ended September 30, 2025: 11 properties that left the hotel portfolio, three properties that underwent a significant renovation, three properties that experienced a seasonal closure, two properties that experienced an extended closure, one property that temporarily suspended operations, one property that underwent an expansion, and one property that converted from franchised to managed.
RevPAR at our comparable system-wide hotels increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by strong leisure transient travel outside of the United States. RevPAR at our comparable system-wide hotels also increased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to strong business transient travel in the United States.
Three Months Ended September 30,
Number of comparable resorts (3) Net Package RevPAR Occupancy Net Package ADR
vs. 2024 vs. 2024
2025 (in reported $) 2025 vs. 2024 2025 (in reported $)
Comparable system-wide all-inclusive resorts (1) 91 $ 194.56 7.6 % 73.7 % 2.0 % pts $ 263.97 4.6 %
Americas (excluding United States) 56 $ 188.26 4.2 % 66.9 % 2.9 % pts $ 281.51 (0.3) %
Europe (2) 35 $ 208.68 15.4 % 89.0 % 0.3 % pts $ 234.47 15.0 %
(1) Consists of all-inclusive properties that we manage, lease, or provide services to.
(2) Certain resorts operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(3) During the three months ended September 30, 2025, we removed the following properties from comparable resorts: one property that underwent a significant renovation and one property that left the hotel portfolio.
Nine Months Ended September 30,
Number of comparable resorts (6) Net Package RevPAR Occupancy Net Package ADR
vs. 2024 vs. 2024
2025 (in reported $) 2025 vs. 2024 2025 (in reported $)
Comparable system-wide all-inclusive resorts (4) 91 $ 225.33 7.9 % 77.2 % 3.7 % pts $ 291.86 2.7 %
Americas (excluding United States) 56 $ 246.53 6.1 % 74.4 % 4.3 % pts $ 331.36 - %
Europe (5) 35 $ 165.61 15.8 % 85.1 % 2.3 % pts $ 194.56 12.6 %
(4) Consists of all-inclusive properties that we manage, lease, or provide services to.
(5) Certain resorts operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(6) In addition to the properties removed from comparable resorts during the three months ended September 30, 2025, we also removed the following properties during the nine months ended September 30, 2025: eight franchised properties that we acquired, four properties that experienced a seasonal closure, three properties that left the hotel portfolio, two properties that underwent a significant renovation, and one property that underwent an expansion.
Net Package RevPAR at our comparable all-inclusive resorts increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, driven by higher demand and Net Package ADR.
Three Months Ended September 30,
RevPAR Occupancy ADR
Number of comparable hotels (1) vs. 2024 vs. 2024
2025 (in constant $) 2025 vs. 2024 2025 (in constant $)
Comparable owned and leased hotels (2) 21 $ 232.33 2.7 % 74.3 % (0.9) % pts $ 312.54 4.0 %
(1) During the three months ended September 30, 2025, no properties were removed from comparable hotels.
(2) Excludes unconsolidated hospitality ventures and all-inclusive leased properties.
Nine Months Ended September 30,
RevPAR Occupancy ADR
Number of comparable hotels (3) vs. 2024 vs. 2024
2025 (in constant $) 2025 vs. 2024 2025 (in constant $)
Comparable owned and leased hotels (4) 21 $ 218.23 5.1 % 71.9 % 0.4 % pts $ 303.35 4.4 %
(3) During the nine months ended September 30, 2025, no properties were removed from comparable hotels.
(4) Excludes unconsolidated hospitality ventures and all-inclusive leased properties.
RevPAR at our comparable owned and leased hotels increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by strong group demand and ADR, partially offset by the impact of the Paris Summer Olympics in 2024.
Results of Operations
Three and Nine Months Ended September 30, 2025 Compared with Three and Nine Months Ended September 30, 2024
Consolidated Results
For additional information regarding our consolidated results, refer to our condensed consolidated statements of income (loss) included in this Quarterly Report.
The impact from our investments in marketable securities held to fund our deferred compensation plans through rabbi trusts was recognized on the following financial statement line items and had no impact on net income (loss): revenues for reimbursed costs; general and administrative expenses; owned and leased expenses; reimbursed costs; and net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Fee revenues.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Base management fees $ 107 $ 97 $ 10 9.8 %
Incentive management fees 53 52 1 2.1 %
Franchise and other fees 123 119 4 4.3 %
Gross fees 283 268 15 5.9 %
Contra revenue (34) (27) (7) (23.5) %
Net fees $ 249 $ 241 $ 8 3.8 %
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Base management fees $ 334 $ 295 $ 39 13.0 %
Incentive management fees 191 170 21 12.3 %
Franchise and other fees 366 340 26 7.9 %
Gross fees 891 805 86 10.7 %
Contra revenue (69) (56) (13) (22.0) %
Net fees $ 822 $ 749 $ 73 9.8 %
Base management fees increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by portfolio growth, inclusive of the Bahia Principe Transaction, and increased leisure transient demand. Additionally, the nine months ended September 30, 2025 benefited from increased business transient demand.
Incentive management fees increased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily driven by portfolio growth, inclusive of the Bahia Principe Transaction, and hotel performance in ASPAC (excluding Greater China). Additionally, the nine months ended September 30, 2025 benefited from hotel performance in the Americas (excluding United States), primarily due to hotel profits being positively impacted by currency translation.
Franchise and other fees increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by license fees related to our co-branded credit card programs and franchise fees due to portfolio growth, partially offset by franchise fees recognized in 2024 related to properties that were acquired in the Playa Hotels Acquisition. Additionally, franchise and other fees increased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to management and royalty fees related to the management of and licensing of certain of our brands to the Unlimited Vacation Club paid membership program following the UVC Transaction.
Contra revenue increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, due to incremental key money assets amortization. The increase during the nine months ended September 30, 2025 was also driven by a payment made to a third-party owner.
Owned and leased revenues.
Three Months Ended September 30,
2025 2024 Better / (Worse) Currency Impact
Comparable owned and leased revenues $ 241 $ 235 $ 6 2.9 % $ 4
Non-comparable owned and leased revenues 188 52 136 261.9 % -
Owned and leased revenues $ 429 $ 287 $ 142 49.8 % $ 4
Nine Months Ended September 30,
2025 2024 Better / (Worse) Currency Impact
Comparable owned and leased revenues $ 673 $ 639 $ 34 5.4 % $ 3
Non-comparable owned and leased revenues 279 271 8 3.0 % (2)
Owned and leased revenues $ 952 $ 910 $ 42 4.7 % $ 1
Comparable owned and leased revenues increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by strong group and business transient travel.
Non-comparable owned and leased revenues increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by the Playa Hotels Acquisition, partially offset by net disposition activity in 2024.
Distribution revenues. During the three and nine months ended September 30, 2025, distribution revenues decreased $29 million and $49 million, respectively, compared to the three and nine months ended September 30, 2024, primarily driven by lower booking and departure volume within ALG Vacations and lower travel credit breakage, partially offset by higher pricing.
Other revenues. During the nine months ended September 30, 2025, other revenues decreased $23 million, compared to the nine months ended September 30, 2024, primarily driven by the UVC Transaction.
Revenues for reimbursed costs.
Three Months Ended September 30,
2025 2024 Change
Revenues for reimbursed costs $ 903 $ 867 $ 36 4.1 %
Less: rabbi trust impact (1) (11) (8) (3) (36.0) %
Revenues for reimbursed costs, excluding rabbi trust impact $ 892 $ 859 $ 33 3.8 %
(1) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within reimbursed costs.
Nine Months Ended September 30,
2025 2024 Change
Revenues for reimbursed costs $ 2,734 $ 2,511 $ 223 8.9 %
Less: rabbi trust impact (2) (20) (21) 1 6.6 %
Revenues for reimbursed costs, excluding rabbi trust impact $ 2,714 $ 2,490 $ 224 9.0 %
(2) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within reimbursed costs.
Revenues for reimbursed costs increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, driven by higher reimbursements for payroll and related expenses at managed properties where we are the employer and an increase in reimbursed costs related to system-wide services provided to managed and franchised properties. The higher reimbursements for expenses were due to increased demand at our existing properties and portfolio growth.
General and administrative expenses.
Three Months Ended September 30,
2025 2024 Change
General and administrative expenses $ 138 $ 126 $ 12 9.6 %
Less: rabbi trust impact (1) (22) (17) (5) (37.5) %
Less: stock-based compensation expense (13) (9) (4) (36.9) %
Adjusted general and administrative expenses (2) $ 103 $ 100 $ 3 2.8 %
(1) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
(2) See "-Non-GAAP Measures" for further discussion.
Nine Months Ended September 30,
2025 2024 Change
General and administrative expenses $ 416 $ 412 $ 4 1.0 %
Less: rabbi trust impact (3) (40) (43) 3 4.5 %
Less: stock-based compensation expense (54) (52) (2) (2.4) %
Adjusted general and administrative expenses (4) $ 322 $ 317 $ 5 1.5 %
(3) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
(4) See "-Non-GAAP Measures" for further discussion.
General and administrative expenses increased during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to improved market performance of the underlying investments in marketable securities held to fund our deferred compensation plans through rabbi trusts, increased payroll and related costs associated with the Bahia Principe Transaction and the Playa Hotels Acquisition, and increased stock-based compensation expense.
General and administrative expenses increased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to increased payroll and related costs associated with the Bahia Principe Transaction and the Playa Hotels Acquisition and the reversal of credit loss reserves on certain receivables in 2024, partially offset by the impact of the UVC Transaction.
Owned and leased expenses.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Comparable owned and leased expenses $ 196 $ 190 $ (6) (3.4) %
Non-comparable owned and leased expenses 150 37 (113) (300.3) %
Rabbi trust impact (1) - 1 1 34.7 %
Owned and leased expenses $ 346 $ 228 $ (118) (51.9) %
(1) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Comparable owned and leased expenses $ 567 $ 534 $ (33) (6.2) %
Non-comparable owned and leased expenses 218 179 (39) (22.3) %
Rabbi trust impact (2) 1 3 2 57.7 %
Owned and leased expenses $ 786 $ 716 $ (70) (9.9) %
(2) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Comparable owned and leased expenses increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily due to increased variable expenses at certain hotels, most notably payroll and related costs.
Non-comparable owned and leased expenses increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by the Playa Hotels Acquisition, partially offset by net disposition activity in 2024.
Distribution expenses. During the three and nine months ended September 30, 2025, distribution expenses decreased $13 million and $36 million, respectively, compared to the three and nine months ended September 30, 2024, primarily driven by cost management strategies and lower variable expenses at ALG Vacations as a result of lower booking and departure volume.
Other direct costs. During the three months ended September 30, 2025, other direct costs increased $3 million, compared to the three months ended September 30, 2024, primarily driven by expenses related to our co-branded credit card programs. During the nine months ended September 30, 2025, other direct costs decreased $15 million, compared to the nine months ended September 30, 2024, primarily driven by the UVC Transaction, partially offset by an increase in expenses related to our co-branded credit card programs.
Transaction and integration costs. During the three and nine months ended September 30, 2025, transaction and integration costs increased $17 million and $104 million, respectively, compared to the three and nine months ended September 30, 2024, primarily due to transaction and integration costs related to the Playa Hotels Acquisition and integration costs related to the acquisition of Standard International. See Part I, Item 1, "Financial Statements-Note 7 to our Condensed Consolidated Financial Statements" for additional information.
Depreciation and amortization expenses.During the three months ended September 30, 2025, depreciation and amortization expenses increased $2 million, compared to the three months ended September 30, 2024, primarily driven by additional amortization expense for intangible assets acquired in the Bahia Principe Transaction, partially offset by lower depreciation expense as a result of net disposition activity in 2024. During the nine months ended September 30, 2025, depreciation and amortization expenses decreased $12 million, compared to the nine months ended September 30, 2024, primarily driven by lower depreciation expense as a result of net disposition activity in 2024 and lower amortization expense related to the UVC Transaction, partially offset by additional amortization expense for intangible assets acquired in the Bahia Principe Transaction.
Reimbursed costs.
Three Months Ended September 30,
2025 2024 Change
Reimbursed costs $ 905 $ 881 $ 24 2.6 %
Less: rabbi trust impact (1) (11) (8) (3) (36.0) %
Reimbursed costs, excluding rabbi trust impact $ 894 $ 873 $ 21 2.3 %
(1) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within revenues for reimbursed costs.
Nine Months Ended September 30,
2025 2024 Change
Reimbursed costs $ 2,756 $ 2,570 $ 186 7.2 %
Less: rabbi trust impact (2) (20) (21) 1 6.6 %
Reimbursed costs, excluding rabbi trust impact $ 2,736 $ 2,549 $ 187 7.3 %
(2) The change was driven by the market performance of the underlying invested assets and offsets with the rabbi trust impact within revenues for reimbursed costs.
Reimbursed costs increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, driven by increased payroll and related expenses at managed properties where we are the employer and expenses related to system-wide services provided to managed and franchised properties. The higher expenses were due to increased demand at our existing properties and portfolio growth.
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Rabbi trust gains (losses) allocated to general and administrative expenses $ 22 $ 17 $ 5 37.5 %
Rabbi trust gains (losses) allocated to owned and leased expenses - 1 (1) (34.7) %
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ 22 $ 18 $ 4 32.3 %
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Rabbi trust gains (losses) allocated to general and administrative expenses $ 40 $ 43 $ (3) (4.5) %
Rabbi trust gains (losses) allocated to owned and leased expenses 1 3 (2) (57.7) %
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ 41 $ 46 $ (5) (8.6) %
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts increased during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, and decreased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, driven by the market performance of the underlying invested assets.
Equity earnings (losses) from unconsolidated hospitality ventures.
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 Better /
(Worse) 		2025 2024 Better /
(Worse)
Impairment charges related to investments in unconsolidated hospitality ventures $ (29) $ - $ (29) $ (36) $ (10) $ (26)
Hyatt's share of unconsolidated hospitality ventures' net gains (losses) excluding foreign currency (8) (11) 3 (8) (34) 26
Hyatt's share of unconsolidated hospitality ventures' foreign currency exchange, net - (6) 6 - (3) 3
Gain on dilution of ownership interest in an unconsolidated hospitality venture - - - - 79 (79)
Distributions from unconsolidated hospitality ventures 3 4 (1) 3 6 (3)
Other (1) - - - 1 (6) 7
Equity earnings (losses) from unconsolidated hospitality ventures $ (34) $ (13) $ (21) $ (40) $ 32 $ (72)
(1) The nine months ended September 30, 2024 includes equity losses primarily related to a debt repayment guarantee for a hotel property in the United States.
See Part I, Item 1, "Financial Statements-Note 4 and Note 13 to our Condensed Consolidated Financial Statements" for additional information.
Interest expense. During the three and nine months ended September 30, 2025, interest expense increased $40 million and $102 million, respectively, compared to the three and nine months ended September 30, 2024, primarily due to the issuances of senior notes in 2024 and 2025, the DDTL Loans, and bridge commitment fees related to the Playa Hotels Acquisition, partially offset by the redemption of certain of our senior notes in 2024 and 2025. See Part I, Item 1, "Financial Statements-Note 10 to our Condensed Consolidated Financial Statements" for additional information.
Gains (losses) on sales of real estate and other.During the three months ended September 30, 2024, we recognized a $514 million pre-tax gain related to the sale of Hyatt Regency Orlando and an adjacent undeveloped land parcel.
During the nine months ended September 30, 2024, we also recognized the following:
•$257 million pre-tax gain related to the sale of Park Hyatt Zurich;
•$231 million pre-tax gain related to the UVC Transaction;
•$172 million pre-tax gain related to the sale of the shares of the entities that own Hyatt Regency Aruba Resort Spa and Casino;
•$100 million pre-tax gain related to the sale of Hyatt Regency San Antonio Riverwalk; and
•$4 million pre-tax loss related to the sale of Hyatt Regency Green Bay.
See Part I, Item 1, "Financial Statements-Note 4 and Note 7 to our Condensed Consolidated Financial Statements" for additional information.
Asset impairments. During the three months ended September 30, 2025, we recognized $9 million of impairment charges related to intangible assets. During the nine months ended September 30, 2025, we recognized an additional $14 million of impairment charges related to intangible assets, property and equipment, and operating lease ROU assets. During the three months ended September 30, 2024, we recognized $35 million of impairment charges related to property and equipment, intangible assets, and operating lease ROU assets. During the nine months ended September 30, 2024, we recognized an additional $17 million of impairment charges primarily related to goodwill. See Part I, Item 1, "Financial Statements-Note 5, Note 7, and Note 8 to our Condensed Consolidated Financial Statements" for additional information.
Other income (loss), net. During the three and nine months ended September 30, 2025, other income (loss), net decreased $74 million and $84 million, respectively, compared to the three and nine months ended September 30, 2024. See Part I, Item 1, "Financial Statements-Note 19 to our Condensed Consolidated Financial Statements" for additional information.
Provision for income taxes.
Three Months Ended September 30,
2025 2024 Change
Income (loss) before income taxes $ (17) $ 608 $ (625) (102.8) %
Provision for income taxes (33) (137) 104 76.3 %
Effective tax rate (194.2) % 22.6 % (216.8) %
Nine Months Ended September 30,
2025 2024 Change
Income before income taxes $ 73 $ 1,611 $ (1,538) (95.5) %
Provision for income taxes (103) (259) 156 60.5 %
Effective tax rate 140.9 % 16.1 % 124.8 %
Provision for income taxes decreased during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily driven by the gain on sale of Hyatt Regency Orlando and an adjacent undeveloped land parcel in 2024. Provision for income taxes decreased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily driven by the aforementioned gain on sale and the earnings impact from the sales of Hyatt Regency Aruba Resort Spa and Casino, Park Hyatt Zurich, and Hyatt Regency San Antonio Riverwalk as well as the UVC Transaction in 2024.
The effective tax rate decreased during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily driven by reduced pre-tax income in 2025. The effective tax rate increased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily driven by reduced pre-tax income and a non-cash tax adjustment related to deferred tax assets.
See Part I, Item 1, "Financial Statements-Note 12 to our Condensed Consolidated Financial Statements" for additional information.
Segment Results
We evaluate segment operating performance using segment revenues and Adjusted EBITDA. See Part I, Item 1, "Financial Statements-Note 17 to our Condensed Consolidated Financial Statements" for additional information, including a reconciliation of segment Adjusted EBITDA to income (loss) before income taxes.
Management and franchising segment revenues and Adjusted EBITDA.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Gross fees (1) $ 298 $ 279 $ 19 7.1 %
Other revenues 12 12 - (0.1) %
Segment revenues (2) $ 310 $ 291 $ 19 6.8 %
(1) See "-Results of Operations" for further discussion regarding the increase in gross fee revenues.
(2) Includes $14 million and $10 million of intersegment revenues for the three months ended September 30, 2025 and September 30, 2024, respectively.
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Gross fees (3) $ 926 $ 844 $ 82 9.8 %
Other revenues 34 31 3 10.5 %
Segment revenues (4) $ 960 $ 875 $ 85 9.8 %
(3) See "-Results of Operations" for further discussion regarding the increase in gross fee revenues.
(4) Includes $34 million and $38 million of intersegment revenues for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Segment Adjusted EBITDA $ 226 $ 210 $ 16 7.6 %
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Segment Adjusted EBITDA $ 700 $ 635 $ 65 10.3 %
Adjusted EBITDA increased during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily driven by increased gross fee revenues. The increase during the nine months ended September 30, 2025 was partially offset by increased general and administrative expenses, which was primarily due to payroll and related costs and the reversal of credit loss reserves on certain receivables in 2024, as well as an increase in other direct costs driven by expenses related to our co-branded credit card programs.
Owned and leased segment revenues and Adjusted EBITDA.
Three Months Ended September 30,
2025 2024 Better / (Worse) Currency Impact
Segment revenues (1), (2) $ 436 $ 290 $ 146 50.2 % $ 4
(1) See "-Results of Operations" for further discussion regarding the increase in owned and leased revenues.
(2) Includes $7 million and $3 million of intersegment revenues for the three months ended September 30, 2025 and September 30, 2024, respectively.
Nine Months Ended September 30,
2025 2024 Better / (Worse) Currency Impact
Segment revenues (3), (4) $ 968 $ 927 $ 41 4.4 % $ 1
(3) See "-Results of Operations" for further discussion regarding the increase in owned and leased revenues.
(4) Includes $16 million and $17 million of intersegment revenues for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Owned and leased Adjusted EBITDA (1) $ 70 $ 49 $ 21 41.0 %
Pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA 13 14 (1) (6.5) %
Segment Adjusted EBITDA $ 83 $ 63 $ 20 30.4 %
(1) See "-Results of Operations" for further discussion regarding the increases in owned and leased revenues and owned and leased expenses.
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Owned and leased Adjusted EBITDA (2) $ 132 $ 156 $ (24) (15.6) %
Pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA 42 48 (6) (12.5) %
Segment Adjusted EBITDA $ 174 $ 204 $ (30) (14.8) %
(2) See "-Results of Operations" for further discussion regarding the increases in owned and leased revenues and owned and leased expenses.
Our pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA decreased during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily driven by the sale of our ownership interest in an unconsolidated hospitality venture in 2024 as well as a property undergoing a significant renovation.
Distribution segment revenues and Adjusted EBITDA.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Segment revenues (1) $ 192 $ 221 $ (29) (13.5) %
(1) See "-Results of Operations" for further discussion regarding the decrease in distribution revenues.
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Distribution revenues (2) $ 769 $ 818 $ (49) (6.0) %
Other revenues (2) - 26 (26) (100.0) %
Segment revenues $ 769 $ 844 $ (75) (8.9) %
(2) See "-Results of Operations" for further discussion regarding the decreases in distribution revenues and other revenues.
Three Months Ended September 30,
2025 2024 Better / (Worse)
Segment Adjusted EBITDA (1) $ 21 $ 38 $ (17) (45.6) %
(1) See "-Results of Operations" for further discussion regarding the decreases in distribution revenues and distribution expenses.
Nine Months Ended September 30,
2025 2024 Better / (Worse)
Segment Adjusted EBITDA $ 113 $ 120 $ (7) (6.5) %
Excluding the impact of the UVC Transaction, Adjusted EBITDA decreased $13 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, driven by decreases in distribution revenues and distribution expenses. See "-Results of Operations" for further discussion.
Non-GAAP Measures
Adjusted Earnings Before Interest Expense, Taxes, Depreciation, and Amortization ("Adjusted EBITDA")
We use the term Adjusted EBITDA throughout this Quarterly Report. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define consolidated Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus net income (loss) attributable to noncontrolling interests and our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA, primarily based on our ownership percentage of each owned and leased venture, adjusted to exclude the following items:
•management and hotel services agreement and franchise agreement assets (key money assets) amortization and performance cure payments, which constitute payments to customers (Contra revenue);
•revenues for reimbursed costs;
•reimbursed costs that we intend to recover over the long term;
•stock-based compensation expense;
•transaction and integration costs;
•depreciation and amortization;
•equity earnings (losses) from unconsolidated hospitality ventures;
•interest expense;
•gains (losses) on sales of real estate and other;
•asset impairments;
•other income (loss), net; and
•benefit (provision) for income taxes.
We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA of each of our reportable segments and eliminations to unallocated overhead expenses.
Our board of directors and executive management team focus on Adjusted EBITDA as one of the key performance and compensation measures both on a segment and on a consolidated basis. Adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations both on a segment and on a consolidated basis. Our President and Chief Executive Officer, who is our CODM, also evaluates the performance of each of our reportable segments and determines how to allocate resources to those segments, in part, by assessing the Adjusted EBITDA of each segment. In addition, the compensation committee of our board of directors determines the annual variable compensation for certain members of our management based in part on consolidated Adjusted EBITDA, segment Adjusted EBITDA, or some combination of both.
We believe Adjusted EBITDA is useful to investors because it provides investors with the same information that we use internally for purposes of assessing our operating performance and making compensation decisions and facilitates our comparison of results with our prior-period and forecasted results as well as our industry and competitors.
Adjusted EBITDA excludes certain items that can vary widely across different industries and among companies within the same industry, including interest expense and benefit or provision for income taxes, which are dependent on company specifics, including capital structure, credit ratings, tax policies, and jurisdictions in which they operate; depreciation and amortization, which are dependent on company policies including how the assets are utilized as well as the lives assigned to the assets; Contra revenue, which is dependent on company policies and strategic decisions regarding payments to hotel owners; and stock-based compensation expense, which varies among companies as a result of different compensation plans companies have adopted.
We exclude revenues for reimbursed costs and reimbursed costs which relate to the reimbursement of payroll costs and for system-wide services and programs that we operate for the benefit of our hotel owners as contractually we do not provide services or operate the related programs to generate a profit or bear a loss over the long term. If we collect amounts in excess of amounts spent, we have a commitment to our hotel owners to spend these amounts on the related system-wide services and programs. Additionally, if we spend in excess of amounts collected, we have a contractual right to adjust future collections or expenditures to recover prior-period costs. These timing differences are due to our discretion to spend in excess of revenues earned or less than revenues earned in a single period to ensure that the system-wide services and programs are operated in the best long-term interests of our hotel owners. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively, and instead are designed to result in a cumulative break-even balance. Therefore, we exclude the net impact when evaluating period-over-period changes in our operating results. Adjusted EBITDA includes reimbursed costs related to system-wide services and programs that we do not intend to recover from hotel owners. Finally, we exclude other items that are not core to our operations and may vary in frequency or magnitude, such as transaction and integration costs, asset impairments, unrealized and realized gains and losses on marketable securities, and gains and losses on sales of real estate and other.
Adjusted EBITDA is not a substitute for net income (loss) attributable to Hyatt Hotels Corporation, net income (loss), or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income or loss generated by our business. Our management compensates for these limitations by referencing our GAAP results and using Adjusted EBITDA supplementally. See our condensed consolidated statements of income (loss) in our condensed consolidated financial statements included elsewhere in this Quarterly Report.
See below for a reconciliation of net income (loss) attributable to Hyatt Hotels Corporation to consolidated Adjusted EBITDA.
Adjusted General and Administrative Expenses
Adjusted general and administrative expenses, as we define it, is a non-GAAP measure. Adjusted general and administrative expenses excludes the impact of deferred compensation plans funded through rabbi trusts and stock-based compensation expense. Adjusted general and administrative expenses assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis. See "-Results of Operations" for a reconciliation of general and administrative expenses to Adjusted general and administrative expenses.
ADR
ADR represents hotel room revenues divided by the total number of rooms sold in a given period. ADR measures the average room price attained by a hotel, and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in our industry, and we use ADR to assess the pricing levels that we are able to generate by customer group, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described below.
Comparable system-wide and Comparable owned and leased
"Comparable system-wide" represents all properties we manage, franchise, or provide services to, including owned and leased properties, that are operated for the entirety of the periods being compared and that have not sustained substantial damage, business interruption, or undergone large-scale renovations during the periods being compared. Comparable system-wide also excludes properties for which comparable results are not available. We may use variations of comparable system-wide to specifically refer to comparable system-wide hotels or our all-inclusive resorts, for those properties that we manage, franchise, or provide services to within our management and franchising segment. "Comparable owned and leased" represents all properties we own or lease that are operated and consolidated for the entirety of the periods being compared and have not sustained substantial damage, business interruption, or undergone large-scale renovations during the periods being compared. Comparable owned and leased also excludes properties for which comparable results are not available. We may use variations of comparable owned and leased to specifically refer to comparable owned and leased hotels or our all-inclusive resorts, for those properties that we own or lease within our owned and leased segment. Comparable system-wide and comparable owned and leased are commonly used as a basis of measurement in our industry. "Non-comparable system-wide" or "non-comparable owned and leased" represent all properties that do not meet the respective definition of "comparable" as defined above.
Constant Dollar Currency
We report the results of our operations both on an as reported basis, as well as on a constant dollar basis. Constant Dollar Currency, which is a non-GAAP measure, excludes the effects of movements in foreign currency exchange rates between comparative periods. We believe constant dollar analysis provides valuable information regarding our results as it removes currency fluctuations from our operating results. We calculate Constant Dollar Currency by restating prior-period local currency financial results at current-period exchange rates. These restated amounts are then compared to our current-period reported amounts to provide operationally driven variances in our results.
Net Package ADR
Net Package ADR represents net package revenues divided by the total number of rooms sold in a given period. Net package revenues generally include revenue derived from the sale of packages at all-inclusive resorts comprised of rooms, food and beverage, and entertainment revenues, net of compulsory tips paid to employees. Net Package ADR measures the average room price attained by a hotel, and Net Package ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. Net Package ADR is a commonly used performance measure in our industry, and we use Net Package ADR to assess the pricing levels that we are able to generate by customer group, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described below.
Net Package RevPAR
Net Package RevPAR is the product of the Net Package ADR and the average daily occupancy percentage. Net Package RevPAR generally includes revenue derived from the sale of packages comprised of rooms, food and beverage, and entertainment revenues, net of compulsory tips paid to employees. Our management uses Net Package RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a geographical and segment basis. Net Package RevPAR is a commonly used performance measure in our industry.
Occupancy
Occupancy represents the total number of rooms sold divided by the total number of rooms available at a property or group of properties. Occupancy measures the utilization of a property's available capacity. We use occupancy to gauge demand at a specific property or group of properties in a given period. Occupancy levels also help us determine achievable ADR levels as demand for property rooms increases or decreases.
RevPAR
RevPAR is the product of the ADR and the average daily occupancy percentage. RevPAR does not include non-room revenues, which consist of ancillary revenues generated by a hotel property, such as food and beverage, parking, and other guest service revenues. Our management uses RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a geographical and segment basis. RevPAR is a commonly used performance measure in our industry.
RevPAR changes that are driven predominantly by changes in occupancy have different implications for overall revenue levels and incremental profitability than do changes that are driven predominantly by changes in average room rates. For example, increases in occupancy at a hotel would lead to increases in room revenues and additional variable operating costs, including housekeeping services, utilities, and room amenity costs, and could also result in increased ancillary revenues, including food and beverage. In contrast, changes in average room rates typically have a greater impact on margins and profitability as average room rate changes result in minimal impacts to variable operating costs.
The tables below provide a reconciliation of net income (loss) attributable to Hyatt Hotels Corporation to consolidated Adjusted EBITDA:
Three Months Ended September 30,
2025 2024 Change
Net income (loss) attributable to Hyatt Hotels Corporation $ (49) $ 471 $ (520) (110.4) %
Contra revenue 34 27 7 23.5 %
Revenues for reimbursed costs (903) (867) (36) (4.1) %
Reimbursed costs 905 881 24 2.6 %
Stock-based compensation expense (1) 14 9 5 42.9 %
Transaction and integration costs 25 8 17 224.4 %
Depreciation and amortization 83 81 2 1.9 %
Equity (earnings) losses from unconsolidated hospitality ventures 34 13 21 161.7 %
Interest expense 90 50 40 80.0 %
(Gains) losses on sales of real estate and other - (514) 514 100.1 %
Asset impairments 9 35 (26) (75.2) %
Other (income) loss, net 4 (70) 74 105.1 %
Provision for income taxes 33 137 (104) (76.3) %
Net loss attributable to noncontrolling interests (1) - (1) NM
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 13 14 (1) (6.5) %
Adjusted EBITDA $ 291 $ 275 $ 16 5.6 %
(1) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses and excludes amounts recognized in transaction and integration costs.
Nine Months Ended September 30,
2025 2024 Change
Net income (loss) attributable to Hyatt Hotels Corporation $ (32) $ 1,352 $ (1,384) (102.4) %
Contra revenue 69 56 13 22.0 %
Revenues for reimbursed costs (2,734) (2,511) (223) (8.9) %
Reimbursed costs 2,756 2,570 186 7.2 %
Stock-based compensation expense (2) 59 55 4 6.5 %
Transaction and integration costs 130 26 104 412.2 %
Depreciation and amortization 245 257 (12) (4.7) %
Equity (earnings) losses from unconsolidated hospitality ventures 40 (32) 72 226.6 %
Interest expense 230 128 102 79.1 %
(Gains) losses on sales of real estate and other 2 (1,267) 1,269 100.2 %
Asset impairments 23 52 (29) (55.4) %
Other (income) loss, net (68) (152) 84 55.9 %
Provision for income taxes 103 259 (156) (60.5) %
Net income attributable to noncontrolling interests 2 - 2 NM
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 42 48 (6) (12.5) %
Adjusted EBITDA $ 867 $ 841 $ 26 3.1 %
(2) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses and excludes amounts recognized in transaction and integration costs.
Liquidity and Capital Resources
Overview
We finance our business primarily with existing cash, short-term investments, and cash generated from our operations. As part of our long-term business strategy, we use net proceeds from dispositions to pay down debt; support new investment opportunities, including acquisitions; and return capital to our stockholders, when appropriate. We may also borrow cash under our revolving credit facility or from other third-party sources and raise funds by issuing debt or equity securities. We maintain a cash investment policy that emphasizes the preservation of capital.
During the three months ended September 30, 2025, we sold one of the properties in the Playa Hotels Portfolio to an unrelated third party for $22 million and used the proceeds to repay $22 million of the DDTL Loans. We expect to close on the planned disposition of the 14 remaining properties in the Playa Hotels Portfolio by the end of 2025. Upon completion, we expect to successfully execute our commitment announced in February 2025 to realize at least $2.0 billion of proceeds from asset sales by the end of 2027. See Part I, Item 1, "Financial Statements-Note 7 and Note 10 to our Condensed Consolidated Financial Statements" for additional information. On October 30, 2025, we entered into a credit agreement with a syndicate of lenders that provides for a $1.5 billion senior unsecured revolving credit facility and matures in October 2030. The credit agreement refinanced and replaced in its entirety our credit agreement dated May 18, 2022.
We may, from time to time, seek to retire or purchase our outstanding equity and/or debt securities through cash purchases and/or exchanges for other securities, in open market purchases, privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan or an ASR transaction. Such repurchases or exchanges, if any, will depend on prevailing market conditions, restrictions in our existing or future financing arrangements, our liquidity requirements, contractual restrictions, and other factors. The amounts involved may be material. During the quarter ended September 30, 2025, we returned $45 million of capital to our stockholders through $30 million of share repurchases and $15 million of quarterly dividend payments. At September 30, 2025, we had approximately $792 million remaining under the share repurchase program. See Part I, Item 1, "Financial Statements-Note 14 to our Condensed Consolidated Financial Statements" for additional information.
We believe that our cash position, short-term investments, cash from operations, borrowing capacity under our revolving credit and delayed draw term loan facilities, and access to the capital markets will be adequate to meet all of our funding requirements and capital deployment objectives in both the short term and long term.
Recent Transactions Affecting our Liquidity and Capital Resources
During both the nine months ended September 30, 2025 and September 30, 2024, various transactions impacted our liquidity. See "-Sources and Uses of Cash."
Sources and Uses of Cash
Nine Months Ended September 30,
2025 2024
Cash provided by (used in):
Operating activities $ 66 $ 398
Investing activities (1,187) 983
Financing activities 867 (1,184)
Effect of exchange rate changes on cash (13) (11)
Change in cash, cash equivalents, and restricted cash classified within current assets held for sale (50) 3
Net increase (decrease) in cash, cash equivalents, and restricted cash $ (317) $ 189
Cash Flows from Operating Activities
Cash provided by operating activities decreased $332 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to an increase in cash paid for interest and income taxes as well as transaction costs related to the Playa Hotels Acquisition.
Cash Flows from Investing Activities
During the nine months ended September 30, 2025:
•We acquired all of the issued and outstanding ordinary shares of Playa Hotels for $1,274 million, net of cash acquired.
•We invested $143 million in capital expenditures (see "-Capital Expenditures").
•We invested $40 million in HTM debt securities.
•We contributed $31 million to unconsolidated hospitality ventures.
•We received $22 million of net proceeds from the sale of one of the properties in the Playa Hotels Portfolio.
•We received $276 million of net proceeds from the sale of marketable securities and short-term investments.
During the nine months ended September 30, 2024:
•We received $723 million of net proceeds from the sale of Hyatt Regency Orlando and an adjacent undeveloped land parcel.
•We received $244 million of net proceeds from the sale of Park Hyatt Zurich.
•We received $226 million of net proceeds from the sale of Hyatt Regency San Antonio Riverwalk.
•We received $173 million of net proceeds from the sale of the shares of the entities that own Hyatt Regency Aruba Resort Spa and Casino.
•We received $41 million of net proceeds from the UVC Transaction.
•We received $3 million of net proceeds from the sale of Hyatt Regency Green Bay.
•We acquired the Me and All Hotels brand name for $28 million, inclusive of closing costs.
•We contributed $32 million to unconsolidated hospitality ventures.
•We invested $45 million in a HTM debt security.
•We issued $91 million of financing receivables.
•We invested $117 million in net purchases of marketable securities and short-term investments.
•We invested $119 million in capital expenditures (see "-Capital Expenditures").
Cash Flows from Financing Activities
During the nine months ended September 30, 2025:
•We borrowed $1,700 million of DDTL Loans and received approximately $1,694 million of proceeds, net of $6 million of issuance costs, which we used to finance the Playa Hotels Acquisition, repay certain indebtedness of Playa Hotels and its subsidiaries in connection with the acquisition, and pay related fees and expenses.
•We issued senior notes and received approximately $990 million of net proceeds, after deducting $10 million of underwriting discounts and other offering expenses.
•We repaid $22 million of the DDTL Loans using proceeds from the sale of one of the properties in the Playa Hotels Portfolio.
•We paid $24 million of withholding taxes for stock-based compensation.
•We paid three quarterly $0.15 per share cash dividends on outstanding shares of Class A and Class B common stock totaling $43 million.
•We repurchased 1,290,310 shares of Class A common stock for an aggregate purchase price of $179 million.
•We repaid the outstanding 2025 Notes at maturity for approximately $460 million, inclusive of $10 million of accrued interest.
•We assumed Playa Hotels' existing term loan and repaid the outstanding balance for approximately $1,078 million, inclusive of $3 million of accrued interest, on the acquisition date.
During the nine months ended September 30, 2024:
•We repurchased 7,923,062 shares of Class A and Class B common stock for an aggregate purchase price of $1,179 million.
•We repaid the outstanding 2024 Notes at maturity for approximately $753 million, inclusive of $7 million of accrued interest.
•We paid three quarterly $0.15 per share cash dividends on outstanding shares of Class A and Class B common stock totaling $46 million.
•We paid $41 million of withholding taxes for stock-based compensation.
•We borrowed approximately $44 million in conjunction with the sale of Park Hyatt Zurich.
•We issued senior notes and received approximately $786 million of net proceeds, after deducting $14 million of underwriting discounts and other offering expenses.
We define net debt as total debt less the total of cash and cash equivalents and short-term investments. We consider net debt and its components to be an important indicator of liquidity and a guiding measure of capital structure strategy. Net debt is a non-GAAP measure and may not be computed the same as similarly titled measures used by other companies. The following table provides a summary of our debt-to-total capital ratios:
September 30, 2025 December 31, 2024
Consolidated debt (1) $ 6,014 $ 3,782
Stockholders' equity 3,484 3,547
Total capital 9,498 7,329
Total debt-to-total capital 63.3 % 51.6 %
Consolidated debt (1) 6,014 3,782
Less: cash and cash equivalents and short-term investments (2) (749) (1,383)
Net consolidated debt $ 5,265 $ 2,399
Net debt-to-total capital 55.4 % 32.7 %
(1) Excludes approximately $406 million and $370 million of our share of unconsolidated hospitality venture indebtedness at September 30, 2025 and December 31, 2024, respectively, substantially all of which is non-recourse to us and a portion of which we guarantee pursuant to separate agreements. See Part I, Item 1, "Financial Statements-Note 13 to our Condensed Consolidated Financial Statements" for additional information.
(2) Excludes $50 million of cash and cash equivalents reclassified to current assets held for sale at September 30, 2025.
Capital Expenditures
We routinely make capital expenditures to enhance our business. As part of the planned disposition of the Playa Hotels Portfolio, we are committed to invest in certain renovation projects. We classify our capital expenditures into maintenance and technology and enhancements to existing properties. We have been, and will continue to be, disciplined with respect to our capital spending, taking into account our cash flows from operations.
Nine Months Ended September 30,
2025 2024
Maintenance and technology $ 94 $ 94
Enhancements to existing properties 49 25
Total capital expenditures $ 143 $ 119
Excluding the impact of the Playa Hotels Acquisition, capital expenditures decreased $11 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily driven by renovation spend at certain owned hotels in 2024.
Senior Notes
The table below sets forth the outstanding principal balance of our Senior Notes at September 30, 2025, as described in Part I, Item 1, "Financial Statements-Note 10 to our Condensed Consolidated Financial Statements." Interest on the outstanding Senior Notes is payable semi-annually.
Outstanding principal amount
$400 million senior unsecured notes maturing in 2026-4.850%
$ 400
$600 million senior unsecured notes maturing in 2027-5.750%
600
$400 million senior unsecured notes maturing in 2028-4.375%
399
$500 million senior unsecured notes maturing in 2028-5.050%
500
$600 million senior unsecured notes maturing in 2029-5.250%
600
$450 million senior unsecured notes maturing in 2030-5.750%
440
$450 million senior unsecured notes maturing in 2031-5.375%
450
$500 million senior unsecured notes maturing in 2032-5.750%
500
$350 million senior unsecured notes maturing in 2034-5.500%
350
Total Senior Notes $ 4,239
We are in compliance with all applicable covenants under the indenture governing our Senior Notes at September 30, 2025.
Revolving Credit Facility
Our revolving credit facility is intended to provide financing for working capital and general corporate purposes, including commercial paper backup and permitted investments and acquisitions. At September 30, 2025, we had no balance outstanding. See Part I, Item 1, "Financial Statements-Note 10 to our Condensed Consolidated Financial Statements."
We are in compliance with all applicable covenants under the revolving credit facility at September 30, 2025.
On October 30, 2025, we entered into a credit agreement that refinanced and replaced in its entirety our credit agreement dated May 18, 2022. See Part I, Item 1 "Financial Statements-Note 20 to our Condensed Consolidated Financial Statements" for additional information.
Delayed Draw Term Loan Facility
On April 11, 2025, we entered into a credit agreement with a syndicate of lenders for a $1,700 million DDTL Facility. On June 11, 2025, we drew $1,700 million on the DDTL Facility and used the proceeds to finance the Playa Hotels Acquisition, repay certain indebtedness of Playa Hotels and its subsidiaries in connection with the acquisition, and pay related fees and expenses. The DDTL Loans mature in 2028 and bear interest, at our option, at base rate plus a range of 0.000% to 0.425% per annum, depending on our debt ratings, or Term SOFR plus a range of 0.815% to 1.425% per annum, depending on our debt ratings. We may prepay the outstanding aggregate principal amount, in whole or in part, at any time, subject to certain restrictions and upon notice to the administrative agent. We are required to prepay the DDTL Loans with proceeds of certain debt incurrences, equity issuances, and asset sales, and are also required, solely to the extent that the aggregate amount of voluntary and mandatory prepayments made on or prior to the second anniversary of the funding date does not exceed $500 million, to prepay the DDTL in an amount equal to such deficit on such second anniversary. The credit agreement contains customary affirmative, negative and financial covenants, representations and warranties, and default provisions. At September 30, 2025, we had $1,678 million of principal outstanding under the DDTL Facility. See Part I, Item 1, "Financial Statements-Note 7 and Note 10 to our Condensed Consolidated Financial Statements."
Letters of Credit
We issue letters of credit either under our revolving credit facility or directly with financial institutions. We had $106 million in letters of credit issued directly with financial institutions outstanding at September 30, 2025. At September 30, 2025, these letters of credit, which mature on various dates through 2026, had weighted-average fees of approximately 92 basis points. See Part I, Item 1, "Financial Statements-Note 13 to our Condensed Consolidated Financial Statements."
Critical Accounting Policies and Estimates
Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures in our condensed consolidated financial statements and accompanying Notes. We have disclosed those estimates that we believe are critical and require complex judgment in their application in our 2024 Form 10-K. At September 30, 2025, there have been no material changes to our critical accounting policies or the methodologies or assumptions we apply under them as previously disclosed in our 2024 Form 10-K.
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