Hyatt Hotels Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Diluted EPS was $0.60; Adjusted Diluted EPS was $1.27.
• Net income attributable to Hyatt Hotels Corporation was $58 million; Adjusted Net Income was $122 million.
• Gross fees were $327 million, an increase of 15.2% compared to the third quarter of 2025.
• Adjusted EBITDA was $295 million, an increase of 6.2% compared to the third quarter of 2025, or an increase of 19% after adjusting for assets sold in 2025.
• Total debt was $4.4 billion as of September 30, 2026.
• Total liquidity was $1.8 billion, comprising $495 million in cash and short-term investments and $1,347 million in available borrowing capacity under the revolving credit facility.
• Base management fees increased 10.0%, driven by managed hotel RevPAR growth, strong U.S. performance, fees from the Playa Hotels Acquisition, and new openings.
• Incentive management fees increased 21.9%, driven by fees from the Playa Hotels Acquisition and strong performance in Asia Pacific.
• Franchise and other fees increased 16.8%, driven by non-RevPAR fee contributions, U.S. RevPAR growth, and new hotel openings.
• Owned and leased segment Adjusted EBITDA declined 1% compared to the third quarter of 2025 after adjusting for 2025 asset sales.
• Distribution segment Adjusted EBITDA declined compared to the third quarter of 2025 due to temporary factors including hotel closures in Jamaica related to Hurricane Melissa and lower demand in Mexico.

Guidance and Future Outlook:

• Full Year 2026 Comparable system-wide hotels RevPAR growth is projected between 5.0% and 5.5% compared to the full year 2025.
• Full Year 2026 Net rooms growth is projected to be approximately 6% compared to the full year 2025.
• Full Year 2026 Net income attributable to Hyatt Hotels Corporation is projected between $240 million and $310 million.
• Full Year 2026 Adjusted EBITDA is projected between $1,170 million and $1,200 million, representing a 14% to 17% increase compared to the full year 2025 (after adjusting for the period of ownership of hotels acquired as part of the Playa Hotels Acquisition and assets sold in 2025).
• Full Year 2026 Capital returns to shareholders are projected between $375 million and $425 million through dividends and share repurchases.
• Full Year 2026 Gross Fees are projected between $1,320 million and $1,335 million, a 10% to 11% increase compared to 2025.
• Full Year 2026 Adjusted G&A Expenses are projected between $440 million and $445 million, a 1% decrease to flat change compared to 2025.
• Full Year 2026 Capital Expenditures are projected at approximately $130 million, an approximate 41% decrease compared to 2025.
• Full Year 2026 Adjusted Free Cash Flow is projected between $580 million and $630 million, a 22% to 33% increase compared to 2025.
• U.S. RevPAR is expected to grow between 5% and 6% for the full year 2026.
• Net Package RevPAR is expected to return to growth in the fourth quarter and remain positive for the full year as booking trends in Mexico improve sequentially.
• The Adjusted EBITDA outlook reflects a strong Gross Fees outlook, partially offset by an expected decline of approximately $30 million in Distribution segment Adjusted EBITDA for the full year compared to 2025.

Business Segments and Product Lines:

• Comparable system-wide hotels RevPAR increased 7.2% in the third quarter of 2026 compared to the third quarter of 2025.
• Comparable system-wide all-inclusive resorts Net Package RevPAR decreased 2.5% in the third quarter of 2026 compared to the third quarter of 2025.
• Luxury led RevPAR growth in the quarter; leisure transient and group RevPAR delivered strong growth, while business transient RevPAR increased in the low single digits.
• RevPAR in the United States grew 8.2%, benefiting from the strength of the U.S. consumer, the FIFA World Cup, and the timing of Jewish holidays.
• Net Package RevPAR decreased primarily due to lower demand for travel to certain destinations in Mexico, partially offset by growth in the Caribbean and Europe.
• Net rooms growth for the trailing twelve months was 3.8%, or 3.9% excluding rooms from the Playa Hotels Acquisition removed from the count in the fourth quarter of 2025.
• The pipeline of executed management or franchise contracts was approximately 158,000 rooms, an increase of 12.1% compared to the third quarter of 2025.
• During the third quarter, the Company opened 3,808 rooms, including Hyatt Vivid Punta Cana, Beldersoy Resort and SPA, and Thompson Seville.
• Development activity resulted in 12% pipeline growth compared to the third quarter of 2025, with more than half of signings within the Essentials portfolio in the United States occurring in new markets.

Market and Competitive Landscape:

• Management highlighted the strength of Hyatt's differentiated brands, growing commercial platform, and asset-light business model.
• Continued momentum across the business, a record development pipeline, and growing engagement among World of Hyatt members reflect increasing preference for Hyatt brands among guests, owners, and developers.
• The Company's portfolio included more than 1,500 hotels and all-inclusive properties in 84 countries across six continents as of September 30, 2026.

Risks and Challenges:

• Lower demand in Mexico impacted Net Package RevPAR and Distribution segment Adjusted EBITDA.
• Hotel closures in Jamaica related to Hurricane Melissa temporarily impacted Distribution segment Adjusted EBITDA.
• Forward-looking statements are subject to risks including general economic uncertainty, global supply chain constraints, rising construction costs, inflation, geopolitical conditions, military conflicts (including in the Middle East), natural disasters, and changes in travel demand or consumer confidence.
• The Company's 2026 outlook is based on assumptions subject to change, many of which are outside the Company's control.

Management Commentary and Tone:

• Mark S. Hoplamazian, Chairman, President and Chief Executive Officer, stated that strong third-quarter results, including 15% growth in Gross Fees, reinforce the strength of Hyatt's differentiated brands and asset-light business model.
• Management expressed confidence that competitive advantages position the Company to drive quality growth, durable fee earnings, increasing free cash flow, and long-term shareholder value.
• The tone emphasized sustained momentum, a record development pipeline, and growing engagement among loyalty program members.

Other Key Points:

• The Company repurchased 867,109 shares of Class A common stock during the third quarter for an aggregate purchase price of $147 million.
• Year-to-date through September 30, 2026, the Company returned $336 million to shareholders through dividends and share repurchases.
• The remaining share repurchase authorization as of September 30, 2026, totaled approximately $1.4 billion.
• The Board of Directors declared a cash dividend of $0.15 per share for the fourth quarter of 2026, payable on December 7, 2026, to stockholders of record as of November 23, 2026.
• The Company completed the Playa Hotels Acquisition on June 17, 2025, for an enterprise value of approximately $2.6 billion.
• On December 30, 2025, the Company closed on the sale of the real estate portfolio previously acquired from Playa for approximately $2 billion to Tortuga Resorts, entering into 50-year management agreements for 13 of the 14 properties.
• The Company revised its definition of Adjusted EBITDA during the nine months ended September 30, 2026, to no longer include its pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA, with prior-period results recast for comparability.