Hyatt Hotels Reports Revenue Increase to $1.718 Billion but Net Income Declines to $20 Million

Hyatt Hotels Corporation reported a slight increase in total revenues for the first quarter of 2025, reaching $1.718 billion, up from $1.714 billion in the same period last year. The growth was primarily driven by a rise in gross fee revenues, which increased by $45 million, and revenues for reimbursed costs, which rose by $84 million. However, the company experienced a significant decline in net income, which fell to $20 million, a decrease of $502 million compared to $522 million in the first quarter of 2024. This decline was largely attributed to reduced gains on sales of real estate and lower equity earnings from unconsolidated hospitality ventures.

In terms of operational performance, Hyatt's comparable system-wide hotels reported a Revenue per Available Room (RevPAR) of $135, reflecting a 5.7% increase in constant currency compared to the previous year. The company noted strong demand in business transient and group travel, with group RevPAR increasing approximately 9%. The total number of properties in Hyatt's portfolio stood at 1,460, comprising 357,336 rooms across 79 countries, with 726 hotels located in the United States.

Hyatt's strategic developments included the Bahia Principe Transaction, which contributed to increased management fee revenues, and the ongoing integration of the Unlimited Vacation Club following the UVC Transaction. The company also announced plans to acquire Playa Hotels, a move expected to enhance its all-inclusive resort offerings. To finance this acquisition, Hyatt issued $1 billion in senior notes and entered into a $1.7 billion delayed draw term loan facility.

The company reported a total debt of $4.328 billion as of March 31, 2025, an increase from $3.782 billion at the end of 2024. This rise in debt was primarily due to the issuance of new senior notes. Despite the increase in debt, Hyatt maintained a cash position of $1.735 billion, which, along with cash generated from operations, is expected to support its funding requirements. Looking ahead, Hyatt anticipates continued growth driven by strong demand in the hospitality sector, although it remains cautious about potential economic uncertainties and the integration challenges associated with the Playa Hotels acquisition.