Hyatt Hotels Q2 adjusted EPS beats estimates on  luxury, upper upscale hotels demand

Overview

• US hospitality group's Q2 Adjusted EPS and Adjusted EBITDA beat analyst expectations

• Comparable system-wide hotels RevPAR rose 5.9%, while all-inclusive resorts Net Package RevPAR fell 1.2% yr/yr

• Company repurchased $12 mln in shares during Q2

Outlook

• Hyatt projects full-year 2026 RevPAR growth of 3.5% to 4.5%

• Company expects net rooms growth of approximately 6% for full-year 2026

• Hyatt sees 2026 adjusted EBITDA between $1,155 mln and $1,205 mln

Result Drivers

• LUXURY AND GROUP DEMAND - RevPAR growth was driven by luxury and upper upscale hotels, with strong leisure and group demand, while business transient demand grew in the low single digits

• REGIONAL HEADWINDS - Geopolitical conflict in the Middle East and security concerns in Mexico weighed on RevPAR growth and demand, particularly at all-inclusive resorts

• FEE INCOME GROWTH - Gross fees rose 7.8% yr/yr, driven by managed hotel RevPAR, U.S. strength, and contributions from the Playa Hotels Acquisition, partially offset by hurricane impacts and lower fees in some regions

Company press release: ID:nBwbRX68Ra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Hyatt Hotels Corp is $198.00, about 6.4% above its July 29 closing price of $186.02

• The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 39 three months ago

Reuters Recommended Reads

• July 28 - Hilton raises annual room revenue growth forecast on World Cup, travel demand

• July 30 - Accor says Middle East conflict hit Q2 room revenue, Dubai returns to growth

• July 29 - Resilient tourists help US travel firms absorb Middle East shock

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)