Hyatt Posts $58 Million Quarterly Profit, Raises Revenue-Per-Room Outlook As Mexico Weighs On Resorts
Gross fees grew 15.2% in the third quarter, and Hyatt lifted its 2026 capital-return target to $375 million to $425 million.
Hyatt Hotels, the Chicago-based company that manages and franchises hotels and all-inclusive resorts, earned $58 million in the third quarter against a $49 million loss a year earlier, and raised its 2026 outlook for revenue per available room and returns to shareholders, the company said Thursday. Weak demand for Mexican destinations dragged on its all-inclusive resorts.
Fees drive the quarter
Net income attributable to Hyatt came to $0.60 per diluted share, versus a loss of $0.51 a year earlier. Adjusted earnings reached $1.27 per share, on adjusted net income of $122 million.
Gross fees rose 15.2% to $327 million. Base management fees climbed 10.0%, incentive fees 21.9% and franchise fees 16.8%. Adjusted EBITDA, the company's preferred operating profit measure, rose 6.2% to $295 million, or 19% after adjusting for assets sold in 2025.
Comparable system-wide hotel revenue per available room rose 7.2%, with U.S. hotels up 8.2%. The company said the U.S. figure benefited partly from the FIFA World Cup and the timing of the Jewish holidays. Luxury led the gains.
Mexico drags on resorts
Net package revenue per available room at all-inclusive resorts fell 2.5%, which Hyatt attributed mainly to weaker demand for travel to certain Mexican destinations; growth in the Caribbean and Europe partly offset it. Distribution segment adjusted EBITDA also declined, which the company tied to temporary factors including Jamaica hotel closures after Hurricane Melissa.
Owned-and-leased revenue fell to $271 million from $429 million a year earlier, as Hyatt moved toward fee income. It completed its Playa Hotels acquisition on June 17, 2025, then sold the Playa real estate portfolio for a total of $2 billion, keeping 50-year management agreements on 13 of 14 properties.
CEO Mark Hoplamazian said the results reflect "the strength of Hyatt's differentiated brands, growing commercial platform, and asset-light business model."
Higher outlook, bigger payout
Hyatt now projects 2026 system-wide revenue per available room growth of 5.0% to 5.5%, and U.S. growth of 5% to 6%. It expects net income of $240 million to $310 million and adjusted EBITDA of $1,170 million to $1,200 million. It also raised its capital returns target to $375 million to $425 million through dividends and buybacks.
The company bought back 867,109 shares for $147 million in the quarter and returned $336 million through September 30 for the year to date. About $1.4 billion of repurchase authorization remains. Total debt stood at $4.4 billion, with liquidity of $1.8 billion.
Pipeline of executed management or franchise contracts reached about 158,000 rooms, up 12.1% from a year earlier. Hyatt said Net Package RevPAR should return to growth in the fourth quarter as Mexico bookings improve.
Hyatt holds its investor call at 9:00 a.m. CT Thursday, and its $0.15 per share fourth-quarter dividend is payable December 7 to holders of record on November 23.
