Hyatt Hotels' fourth quarter was met with a positive market response, supported by robust non-GAAP earnings and solid revenue growth. Management attributed this momentum to the strength of luxury and leisure travel demand, particularly across its high-end brands and all-inclusive resorts. CEO Mark Hoplamazian highlighted the 19% growth in World of Hyatt loyalty membership and the company’s industry-leading net rooms growth, noting, “Our purpose has remained our North Star, driving investment in our brands and loyalty program.”
Is now the time to buy H? Find out in our full research report (it’s free for active Edge members).
Hyatt Hotels (H) Q4 CY2025 Highlights:
- Revenue: $1.79 billion vs analyst estimates of $1.80 billion (11.7% year-on-year growth, in line)
- Adjusted EPS: $1.33 vs analyst estimates of $0.36 (significant beat)
- Adjusted EBITDA: $292 million vs analyst estimates of $288.7 million (16.3% margin, 1.1% beat)
- EBITDA guidance for the upcoming financial year 2026 is $1.18 billion at the midpoint, below analyst estimates of $1.26 billion
- Operating Margin: 5%, in line with the same quarter last year
- RevPAR: $146.01 at quarter end, up 3.6% year on year
- Market Capitalization: $15.86 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hyatt Hotels’s Q4 Earnings Call
- Dan Pitzer (JPMorgan) asked about the sustainability of net unit growth and appetite for portfolio deals. CEO Mark Hoplamazian emphasized strong organic momentum and ongoing discussions for larger management and franchise agreements.
- Benjamin Nicolas Chaiken (Mizuho) inquired about the impact of AI-powered travel search and ranking. Hoplamazian detailed Hyatt’s early adoption of intent-based search and partnerships with multiple large language model providers.
- Shaun Clisby Kelley (Bank of America) probed on AI’s role in cost efficiency. Hoplamazian confirmed that automation and AI have directly enabled reductions in general and administrative expenses and improved data quality.
- Richard J. Clarke (Bernstein) questioned the lower cash flow conversion rates and RevPAR guidance. CFO Joan Bottarini explained that the outlook includes deleveraging efforts and clarified the bridge for core fee growth.
- Smedes Rose (Citi) asked about the rationale for excluding JV EBITDA from results and potential insurance offsets from hurricane impacts. Management explained the strategy shift and indicated insurance proceeds were not included in current guidance.
Catalysts in Upcoming Quarters
As we look to future quarters, our analysts are monitoring (1) net room growth, especially progress in Greater China and India, (2) the pace of AI-driven digital channel adoption and its impact on direct bookings, and (3) recovery in the distribution segment following the resolution of hurricane-related disruptions in Jamaica. We will also track the execution of planned portfolio deals and the expansion of the loyalty program as key indicators of sustained momentum.
Hyatt Hotels currently trades at $168.63, in line with $168.63 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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