Hyatt Hotel’s Q2 2025: Modest Loss, Big Growth Plans Ahead

Hyatt Hotels reported a small loss in in the second quarter of 2025 but there’s plenty of reason to be hopeful about the future ahead. 

A Closer Look at the Numbers

Hyatt reported a small net loss of $3 million, but on an adjusted basis they pulled in $66 million. Earnings per share were knocked down to -$0.03, but again adjusted, they’re up $0.68. RevPAR (revenue per available room) rose a modest 1.6 percent overall, though luxury hotels led the way while some U.S. select-service spots lagged.

“At U.S. select service hotels, Hyatt’s business transient travel RevPAR declined by 1.5% year on year in the quarter, though business transient RevPAR was up “in the low single digits” for full-service properties,Hoplamazian shared on the call.” – Hotel Dive

Gross fees climbed nearly 9.5 percent to $301 million. Adjusted EBITDA came in at $303 million, down 1.1 percent year-over-year, but when you strip out asset sales from last year, it’s actually up 9 percent. Hyatt’s growth machine is rolling forward, with net rooms up 11.8 percent (or 6.5 percent excluding acquisitions) and a pipeline of about 140,000 rooms, up around 8 percent.

What’s Shining Bright

• Luxury stays are pulling their weight, with RevPAR gains driven by high-end demand (hoteldive.com).

• Strong performance in fee-based revenue shows the value of Hyatt’s asset-light model.

• Room growth remains solid, and the pipeline is bursting, especially with the splashy Playa Hotels deal.

• The debut of “Unscripted by Hyatt” opens a new, flexible avenue for growth in the upscale and upper-mid segments.

A Few Red Flags

• On the face of it, Hyatt posted a tiny loss, though that mostly reflects one-off items (adjusted net income paints a sunnier picture).

• Some less glamorous segments, like select-service hotels in the U.S., are underperforming compared to luxury counterparts. This suggests that the lower end of the market is softening while luxury is outperforming those declines for the most part.

• Debt is ticking up, with total debt at $6 billion as of June 30, and liquidity at $2.4 billion.

What’s Up Next for Hyatt?

Hyatt expects RevPAR growth of 1–3 percent for the full year and net rooms growth of 6–7 percent (or up to 7.7 percent when including Playa). The year-end adjusted EBITDA guidance is $1.085 billion to $1.130 billion, a healthy 7–11 percent gain . Hyatt also plans to return about $300 million to shareholders in dividends and buybacks.

Most notably, Hyatt could be the first to indicate with hard numbers that travel in the current economic climate is diverging. Revenue and pricing continues to rise or hold its ground in the luxury segment while entry-level properties are showing the first signs of weakness. This could mean the hotelier continues to seek high-end properties and partnerships over adding further Hyatt Place sites or adding to the price-conscious select service market with additional brands.

“In the third quarter, Hyatt expects lower chain scales to continue to underperform luxury and international markets, in line with expectations the company shared during its first-quarter earnings call, CFO Joan Bottarini said on the call.” – Hotel Dive

There was also this cryptic statement from CEO, Hoplamazian:

“The CEO said Hyatt expects the brand to “scale rapidly through conversions.” – Hotel Dive

Conclusion

Hyatt’s Q2 2025 might not be headline fireworks, but it hums with promise. Adjusted profits and strong fee income show the payoff of going asset-light. Luxury growth and a robust development pipeline point toward brighter horizons. Debt and select-service softness remain watchpoints, but Hyatt’s strategy appears steady and hopeful for loyalists. It will be worth watching how those new brands and all-inclusive moves translate into real returns in the coming quarters.

What do you think?