HYATT HOTELS CORP. reported a third-quarter net income of $471 million, with adjusted EBITDA of $275 million—an 8.9 percent increase over the same period last year. Systemwide RevPAR rose 3 percent year-over-year, and net rooms grew approximately 4.3 percent for the quarter.
“We reported solid third-quarter results, with gross fee revenues reaching $268 million,” said Mark S. Hoplamazian, president and CEO of Hyatt. “Our pipeline reached a record 135,000 rooms, up 10 percent year-over-year, and World of Hyatt membership expanded to 51 million members, growing 22 percent. Our capital strategy, including asset-disposition completion, the acquisition of Standard International, and a joint venture with Bahia Principe, reflects the strength of our asset-light model, leading to over $1.2 billion returned to shareholders through repurchases and dividends this year.”
Full-year projections indicate a 3 percent to 4 percent RevPAR increase for comparable systemwide hotels, with net income expected between $1.4 and $1.45 billion, Hyatt said in a statement. Adjusted EBITDA is projected to range from $1.1 to $1.12 billion.
Business and group travel demand
Management and franchising results showed strong demand for business transient and group travel in the U.S. while leisure demand was affected by renovations, weather, and increased outbound travel. In Europe, RevPAR rose 15 percent, driven by the Paris Olympics, while Asia-Pacific, excluding Greater China, saw a 10 percent increase due to continued outbound travel from Greater China.
Adjusted EBITDA for the quarter rose 13 percent, with comparable margins increasing 210 basis points, supported by high ADR during the Democratic National Convention in Chicago and the Paris Olympics. Third-quarter results reflected more seasonal booking patterns and impacts from hurricanes Beryl and Helene, partially offset by commissions and travel credits from Mr & Mrs Smith and ALG Vacations. Excluding the UVC transaction impact, adjusted EBITDA declined by $5 million.
Expanding pipeline
Around 16 hotels with 2,589 rooms joined Hyatt’s portfolio in the third quarter, including Alila Shanghai, Brunfels Hotel in the Unbound Collection, Grand Hyatt Kunming, and Park Hyatt Marrakech. Hyatt also added 13 outdoor resorts through an alliance with Under Canvas, bringing the pipeline to around 690 hotels with 135,000 rooms under executed management or franchise contracts as of Sept. 30.
With the Aug. 16 sale of Hyatt Regency Orlando and adjacent land, Hyatt surpassed its $2 billion asset-disposition target, realizing $2.6 billion in gross proceeds at a 13.3x multiple over three years. The company anticipates an asset-light earnings mix exceeding 80 percent by 2025.
On October 1, Hyatt acquired Standard International for $150 million, with potential additional consideration of up to $185 million. Later, on Oct. 28, Hyatt announced a joint venture with Grupo Piñero, investing $380.7 million for a 50 percent stake, with an additional $65.3 million contingent on specific conditions. This transaction, expected to close soon, will add 23 all-inclusive resorts with 12,000 rooms to Hyatt’s managed portfolio.
Since 2017, Hyatt’s global pipeline has grown by nearly 85 percent, reaching a record 129,000 rooms. Over this period, the company doubled its luxury rooms, tripled its resort rooms, and quintupled its lifestyle rooms.
