Hyatt Q1 Earnings & Revenues Top, System-Wide Hotel RevPAR Up Y/Y

Core Viewpoint - Hyatt Hotels Corporation reported better-than-expected first-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate, although the bottom line saw a decline year-over-year [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 46 cents, surpassing the Zacks Consensus Estimate of 30 cents by 53.3%, while the adjusted EPS decreased from 77 cents in the same quarter last year [3]. - Revenues reached $1.718 billion, slightly above the consensus mark of $1.702 billion by 0.9%, and showed a marginal year-over-year increase of 0.2% [3]. Revenue Breakdown - Owned and Leased revenues fell by 29.1% to $219 million, and Other revenues decreased by 68.6% to $11 million year-over-year [4]. - Distribution revenues declined by 1.3% to $315 million, while Net fees increased by 15.3% year-over-year to $287 million [4]. - Revenues for reimbursed costs grew by 10.5% to $886 million from $802 million reported in the prior-year quarter [4]. Operating Highlights - Adjusted EBITDA was $273 million, reflecting a 5.4% year-over-year increase, or a 24.4% increase after adjusting for assets sold in 2024 [6]. - Adjusted EBITDA for Management and Franchising increased by 16.3% to $236 million, and Distribution EBITDA rose by 25.6% to $49 million [6]. - The Owned and Leased segment's adjusted EBITDA decreased by 56.5% year-over-year to $27 million [6]. Balance Sheet - As of March 31, 2025, cash and cash equivalents stood at $1.805 billion, up from $1.383 billion at the end of 2024 [7]. - Total liquidity was reported at $3.3 billion, with total debt increasing to $4.3 billion from $3.78 billion at the end of 2024 [7]. Business Updates - In Q1 2025, Hyatt added 11,253 rooms to its system, with a pipeline of executed management or franchise contracts for approximately 138,000 rooms as of March 31, 2025 [8]. 2025 Outlook - The company expects adjusted general and administrative expenses to be between $450 million and $460 million, reflecting a 1-4% year-over-year increase [9]. - Capital expenditures are anticipated to be around $150 million, with net rooms growth projected between 6% and 7% year-over-year [9]. - System-wide RevPAR is now expected to rise by 1-3% from the 2024 level, down from a prior projection of 2-4% growth [10]. - Adjusted EBITDA is forecasted to be in the range of $1.08-$1.135 billion, representing a 6-12% year-over-year increase [10].