Hyatt Hotels Corp. announced solid year-over-year improvements for the first quarter of 2025.
The company’s comparable systemwide revenue per available room for its hotels increased 5.7 percent compared to the first quarter of 2024. Adjusted earnings before interest, taxes, depreciation or amortization was $273 million, an increase of 5.4 percent, or an increase of 24.4 percent after adjusting for assets sold in 2024, compared to the first quarter of 2024 net income attributable to Hyatt Hotels Corp. was $20 million and adjusted net income was $46 million. Gross fees were $307 million, an increase of 16.9 percent compared to the first quarter of 2024
First Quarter Operations
Business transient and group travel drove systemwide and United States RevPAR growth. The quarter was impacted by Easter, which took place in the second quarter, whereas the holiday fell in the first quarter last year.
Owned and leased segment adjusted EBITDA grew 18 percent after adjusting for assets sold in 2024, compared to the first quarter of 2024. Comparable owned and leased margin increased by 70 basis points in the first quarter compared to the same period in 2024.
Excluding the impact of the UVC Transaction, distribution segment results improved by 10 percent, compared to the first quarter of 2024, from higher pricing, effective cost management, and favorable foreign currency exchange despite lower booking volumes in the quarter.
Openings and Development
Hyatt’s net rooms growth for the quarter was 10.5 percent.
During the quarter, the company opened 11,253 rooms, including the first Hyatt Studios property, Hyatt Studios Mobile / Tillmans Corner. The Venetian Resort Las Vegas, with 7,092 rooms, became available through Hyatt booking channels in January; these rooms were not included in the 2024 year-end pipeline figures.
Other notable openings for the quarter include the Andaz Doha, Hotel La Compañia del Valle (part of The Unbound Collection by Hyatt) and seven UrCove properties.
The company also announced a new brand, Hyatt Select, an upper-midscale, transient conversion brand.
The pipeline of executed management or franchise contracts was approximately 138,000 rooms
The Playa Deal
The company provided updates on the planned Playa Hotels Acquisition.
- Continues to advance discussions for the sale of Playa's real estate and expects to be in a position to enter into an agreement to sell that real estate in the near future.
- Announced on April 28 the extension of the tender offer period to 5:00 p.m., New York City time on May 23.
- Issued $500 million of 5.050 percent senior notes due 2028 and $500 million of 5.750 percent senior notes due 2032, and received approximately $990 million of net proceeds. The company intends to use the net proceeds to finance a portion of the Playa Hotels Acquisition.
- Entered into a credit agreement with a syndicate of lenders on April 11 for a $1.7 billion delayed draw term loan facility whereby proceeds will be used to finance the remaining portion of the Playa Hotels Acquisition.
2025 Outlook
- Comparable systemwide hotels RevPAR growth is projected between 1 percent to 3 percent, compared to the full year 2024
- Net rooms growth is projected between 6 percent to 7 percent, compared to the full year 2024
- Net income is projected between $95 million and $150 million
- Adjusted EBITDA is projected between $1.08 billion and $1.13 billion, an increase of 6 percent to 12 percent after adjusting for assets sold in 2024, compared to the full year 2024
- Adjusted free cash flow is projected between $450 million and $500 million, excluding approximately $117 million of cash taxes on asset sales and approximately $43 million of costs associated with the Playa Hotels Acquisition