Hyatt Raises Room Revenue Growth Forecast to 5.0%–5.5% After 7.2% Quarterly Increase
Key Facts
Hyatt raised its forecast for comparable systemwide revenue per available room at its hotels to 5.0%–5.5% in 2026, after the measure rose 7.2% in the third quarter compared with the same period in 2025. The company reported the results on October 29, attributing the forecast revision to strong quarterly performance and continued momentum after Labor Day. Hyatt said its U.S. growth forecast now stands at 5%–6% for the full year. By contrast, the all-inclusive resorts’ net room revenue index fell 2.5% during the quarter. The divergence reflects differing demand between hotels and resorts, with the U.S. market remaining strong while certain Mexican destinations face pressure.
The U.S. revenue per available room index rose 8.2% year over year in the third quarter, the company said. Hyatt attributed the performance to a strong U.S. consumer and partial benefit from the FIFA World Cup and the timing of Jewish holidays. The company said expected U.S. room revenue growth for the year is between 5% and 6%, moderately stronger than growth in international markets. The all-inclusive resorts’ net room revenue index declined mainly because of lower travel demand for certain destinations in Mexico. Growth in the Caribbean and Europe helped limit the impact of that weakness, but did not prevent an overall decline in the index.
Diluted earnings per share were $0.60 in the third quarter, while adjusted diluted earnings per share reached $1.27. Net income attributable to Hyatt was $58 million, compared with adjusted net income of $122 million. Gross fees totaled $327 million, up 15.2% from the third quarter of 2025. Chief Executive Mark Hoplamazian said the strong quarterly results, including 15% fee growth, reinforce the strength of the brands, the growing commercial platform and the asset-light business model. Base management fees rose 10.0%, incentive management fees increased 21.9%, and franchise and other fees climbed 16.8% year over year. The increases show fee growth broadening across the different categories during the quarter.
Adjusted earnings before interest, taxes, depreciation and amortization totaled $295 million, up 6.2% from the third quarter of 2025. They increased 19% after adjusting for the impact of assets sold in 2025. By contrast, adjusted earnings in the distribution segment declined compared with the same period last year. Hyatt attributed this mainly to temporary factors, including hotel closures in Jamaica in the wake of Hurricane Melissa and lower demand in Mexico. For its 2026 guidance, the company expects adjusted earnings before interest, taxes, depreciation and amortization of between $1.170 billion and $1.200 billion. The range represents expected growth of between 14% and 17% after adjusting the comparison base for the period of Playa hotel ownership and assets sold in 2025.
Hyatt expects net income attributable to the company of between $240 million and $310 million in 2026, and gross fees of between $1.320 billion and $1.335 billion. On expansion, rooms under executed management or franchise agreements totaled about 158,000 in the third quarter, up 12.1% year over year. The company opened 3,808 rooms during the quarter. Net room growth over the 12 months ended with the third quarter was 3.8%, or 3.9% excluding Playa rooms removed from Hyatt’s count in the fourth quarter of 2025. The company expects net room growth of about 6% in 2026 compared with 2025.
The company expects the all-inclusive resorts’ net room revenue index to return to growth in the fourth quarter and remain positive for the full year. Hyatt said booking trends in Mexico continue to improve sequentially. On September 30, 2026, total liquidity stood at $1.8 billion, comprising $495 million in cash and cash equivalents and short-term investments, and $1,347 million in available borrowing capacity after letters of credit. Total debt was $4.4 billion on the same date. These figures reflect the company’s financial position at quarter-end, alongside its expansion plans and return of capital to shareholders.
Hyatt raised its 2026 forecast for returning capital to shareholders through dividends and share repurchases to a range of $375–425 million. The company repurchased 867,109 Class A shares for $147 million during the third quarter. Total capital returned to shareholders through dividends and repurchases reached $336 million from the start of the year through September 30. It also declared a cash dividend of $0.15 per share for the fourth quarter, payable on December 7 to shareholders of record on November 23. Before the results announcement, Hyatt shares closed at $172.97 on October 27 and $173.35 on October 28, according to EL7 data. The company scheduled its investor call for October 29 at 9:00 a.m. Central Time.