Hyatt Hotels Corp. reported an increase in net rooms growth and flat revenue per available room on its third-quarter earnings call.
"RevPAR was flat in the quarter, but we saw improved performance in the United States, which grew by 3% compared to last year, with select service delivering positive quarterly growth for the first time in 2025," CEO and President Mark Hoplamazian said on the call.
Executives provided updates on Hyatt's ongoing portfolio sales related to its acquisition of Playa Hotels & Resorts, which closed in June.
Within two weeks of the close of the $2.6 billion deal, Hyatt announced its intent to sell the entire Playa portfolio — 15 all-inclusive resorts — to Tortuga Resorts, a joint venture of KSL Capital Partners and Mexico City-based family office Rodina.
The resorts are located across Mexico, the Dominican Republic and Jamaica. Hyatt and Tortuga will have 50-year management agreements for 13 of the properties while the remaining two are under separate contractual agreements.
In September, Hyatt sold a resort in Playa Del Carmen to a third-party buyer for around $22 million. Hoplamazian said the net proceeds of the sale were used to repay a portion of the delayed draw term loan.
"This was one of two properties that were not subject to long-term management agreements with Tortuga Resorts," he continued. "We remain on track to close the real estate transaction with Tortuga for the remaining 14 hotels by the end of the year."
Hyatt had previously announced Tortuga planned to purchase the real estate of all 15 Playa properties, including the two not subject to Hyatt management agreements.
At the beginning of the quarter, Hyatt Regency Times Square opened and became Manhattan's first Hyatt Regency-branded hotel. Owned by Argent Ventures and managed by Highgate, the 795-room hotel underwent a multimillion-dollar renovation before reopening under its new brand.
In light of the damage sustained from Hurricane Melissa, Hyatt adjusted its full-year outlook for 2025.
"We've lowered our fourth-quarter outlook for Playa by $7 million at the midpoint of our range, as a result of Hurricane Melissa, while the full-year outlook remains unchanged after a strong third quarter. For modeling purposes, our outlook assumes that we will own Playa's real estate for the entirety of the fourth quarter," said Joan Bottarini, Hyatt’s chief financial officer.
Hyatt reported continued growth for its all-inclusive properties, which grew significantly across key metrics.
"Net package RevPAR growth at our all-inclusive properties grew 7.6% in the quarter, highlighting the continued strong demand for leisure travel," Bottarini said. "Pace for our all-inclusive hotels in the Americas, excluding Jamaica, is up over 8% in the fourth quarter and for the holiday festive period is up over 11%."
Last month, Hyatt announced a master franchise agreement with Shanghai-based Homeinns Hotel Group for the Hyatt Studios brand. As part of the deal, Homeinns will open 50 new Hyatt Studios hotels across China over the coming years.
When asked about Hyatt's growth in China as a whole, Hoplamazian said he feels good about the company's strategy so far.
"Some of the things that we have been known for in China continue to shine in ways that I think are notable," Hoplamazian said, pointing specifically to the recent opening of the Alila Shanghai. "We're running, maturely, more than 20% ahead of the brand that used to occupy that hotel."
Hyatt's loyalty program World of Hyatt has continued to growth throughout 2025. Hoplamazian said World of Hyatt surpassed 61 million members during the third quarter.
"World of Hyatt continues to be the fastest-growing major global hospitality loyalty program with membership having increased nearly 30% annually since 2017," Hoplamazian said. "Today, we have more than 40% more members per hotel compared to our closest competitor."
Hoplamazian also spoke briefly about Hyatt's expanded partnership with Chase. The deal is expected to drive bookings at Hyatt properties from Chase cardholders via Chase Travel and Chase Ultimate Rewards.
Hyatt officials expect the adjusted earnings before interest, taxes, depreciation and amortization contribution from their credit card deal and "similar third-party relationships" to more than double by 2027.
By the numbers
For the third quarter, Hyatt reported a 0.3% year-over-year growth in its comparable systemwide revenue per available room, according to the company's earnings release. Hyatt grew its net rooms by 12.1% — or 7% when excluding acquisitions — during the quarter.
Hyatt posted a net loss of $49 million and an adjusted net loss of $29 million. The company's adjusted EBITDA rose 5.6% year over year to $291 million, but when adjusting for assets sold in 2024, adjusted EBITDA was up 10.1%.
The pipeline of executed hotel management or franchise contracts was about 141,000 rooms last quarter, representing an increase of 4.4%, compared to the third quarter of 2024.
As of publication time, Hyatt's stock was trading at $146.37 a share, down 6.8% year to date. The New York Stock Exchange Composite was up 11.6% for the same period.