Hyatt Hotels Corp.'s second-quarter performance overall exceeded expectations, but the company faces a mixed bag when it comes to the performance of its hotels in different parts of the world.
Hyatt's revenue per available room declined notably in the Middle East and subtly in Mexico — with year-over-year declines of 36% and 1.2%, respectively. Executives credited the conflict in the Middle East and security issues in Mexico for driving down hotel performance.
Meanwhile, Hyatt's hotels in the Dominican Republic achieved 8% RevPAR growth in the second quarter year over year and the company's portfolio in China has seen growth, too.
“Interestingly, in China, China luxury properties were up 11% this past quarter… China is on fire. We are up almost 10% in the first half in RevPAR in China,” said Hyatt CEO, President and Chairman Mark Hoplamazian.
High-end hotels have been sources of momentum for Hyatt, he added.
"Leisure and luxury has been the engine that has just continued to propel us to really, really significant fee growth market share," Hoplamazian said. "Our luxury and lifestyle hotels are up three points of market share this past quarter. So I would say we're clicking on all cylinders when it comes to the higher-end guest."
But it's not just Hyatt's high-end business segments that are seeing growth, Hoplamazian said.
"RevPAR was up in all customer segments," he said. "Business and group travel was solid, with business-transient RevPAR increasing approximately 2% during the quarter, and group RevPAR increasing more than 7% compared to last year."
Hyatt's hotel pipeline is 10% bigger now compared to last year with 154,000 rooms contracted. For 2026, Hyatt expects a net rooms growth of 6% for the full year, which is on the lower end of Hyatt's outlook from last quarter. Hoplamazian said he's being conservative with expectations, since most of the year's openings are slated for the fourth quarter and some could slip into 2027.
"Our development pipeline remains very healthy, and we expect net rooms growth to accelerate significantly over the second half of the year, with a large number of our expected openings scheduled for the fourth quarter," he said. "We continue to see meaningful opportunities from both conversions and new-build openings."
Joan Bottarini, Hyatt's chief financial officer, pointed to fee growth in the second quarter.
"Gross fees increased 8% to $324 million driven by strong performance across our managed portfolio, fees from newly opened hotels, the new management agreements from the Playa portfolio and growth in license fees," she said.
Hyatt's fee growth has been consistent with organic fee growth at over 10% over the last five years, Hoplamazian said. He added this is higher than Hyatt's peers.
"I would just continue to remind people to please pay attention to fee growth," he said. "That's where you can take money to the bank."
By the numbers
Hyatt's comparable system-wide hotels RevPAR increased 5.9% compared to the second quarter of 2025, according to the company's earnings release. For its all-inclusive resorts, comparable system-wide net package RevPAR decreased 1.2% compared to the same time period last year.
Hyatt's net income was $110 million and adjusted net income was $108 million.
For pipeline growth, Hyatt reportedly secured franchise contracts for the addition of 154,000 hotel rooms in the quarter, an increase of 10% compared to the second quarter of 2025.
As of press time, Hyatt's stock was trading at $175.22 a share, up 9.3% year to date. The NYSE composite was up 9.6% for the same period.