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Mar 31
Hyatt Q1 2025 Earnings Report
Hyatt posted solid first-quarter results with growing RevPAR, adjusted EBITDA gains, and increased net room openings.
Key Takeaways
Hyatt reported a strong start to 2025 with $20M in net income, boosted by significant fee growth, strong demand, and its asset-light business model.
Net income reached $20 million and adjusted net income was $46 million.
System-wide comparable RevPAR rose 5.7% YoY.
Net rooms grew by 10.5%, including key additions like The Venetian Resort Las Vegas.
Adjusted EBITDA increased by 24.4% after adjusting for asset sales.
Hyatt
Hyatt
Forward Guidance
Hyatt expects modest RevPAR growth and solid net rooms expansion for FY2025, though net income will be affected by non-recurring 2024 asset sale gains.
Positive Outlook
- Projected 1% to 3% RevPAR growth in 2025.
- Net rooms expected to grow by 6% to 7%.
- Adjusted EBITDA projected between $1.08B and $1.135B.
- Strong liquidity position of $3.3B.
- Positive momentum from recent property additions and pipeline.
Challenges Ahead
- Net income projected to decline due to absence of prior year asset sale gains.
- Adjusted free cash flow expected to decline due to higher interest and tax costs.
- Booking trends reflect shorter-term demand and some volatility.
- Playa Hotels acquisition introduces integration and execution risk.
- No current guidance on shareholder capital returns due to acquisition plans.