Hyatt to Post Q2 Earnings: What's in Store for the Stock?

Core Viewpoint - Hyatt Hotels Corporation is set to report its second-quarter 2025 results on August 7, with expectations of a significant decline in earnings per share compared to the previous year, while revenues are projected to show modest growth [1][2]. Financial Estimates - The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is 66 cents, reflecting a 56.9% decrease from $1.53 reported in the same quarter last year [2]. - Revenue estimates for the second quarter are approximately $1.74 billion, indicating a 2.2% increase from the prior-year quarter [2]. Revenue Drivers - Hyatt's second-quarter revenue is anticipated to grow year over year, driven by strong Revenue Per Available Room (RevPAR) growth and robust development activity, supported by net room growth, higher rates, and increased occupancy due to strong travel demand [3]. - The company expects RevPAR growth to be stronger in international markets compared to the United States, with all-inclusive resort bookings in the Americas projected to increase by 7% [4]. - Contributions from franchise and other fees are expected to rise by 13.2% year over year to $137 million, with total gross fees predicted to increase by 9.3% to $300.6 million [5]. Loyalty and Engagement - The expanding loyalty program, World of Hyatt, along with strong credit card spending and heightened brand engagement, is expected to enhance commercial performance, contributing to occupancy and overall performance in the second quarter [6]. Cost Pressures - Inflationary pressures, rising labor costs in certain markets, and the impact of asset sales completed in 2024 may negatively affect Hyatt's bottom line, with adjusted EBITDA predicted to decline by 2.9% year over year to $298.2 million [7]. Earnings Prediction Model - The current model does not predict an earnings beat for Hyatt, as the company has an Earnings ESP of -16.79% and a Zacks Rank of 3 [8][9].