Fast-growing Hyatt loyalty program expands

Core Insights - Hyatt Hotels Corporation is expanding its partnership with Chase to enhance rewards for World of Hyatt cardmembers, aiming to grow and engage with loyal travelers [1][2] - The World of Hyatt loyalty program has over 60 million members and is the fastest-growing in the global hospitality industry, with a growth rate of nearly 30% per year since 2017 [2] Strategic Highlights - The partnership is expected to contribute approximately $50 million to adjusted EBITDA in 2025, increasing to around $105 million by 2027, along with $47 million in upfront cash in late 2025 [3] - The expansion is designed to drive additional stays at Hyatt properties from Chase cardmembers through Chase Travel and Chase Ultimate Rewards [6] Financial Performance - Hyatt's third-quarter earnings report indicates a 0.3% increase in comparable system-wide hotels RevPAR, with net rooms growth at 12.1% [7] - The company reported a net loss of $49 million, contrasting with a net income of $471 million in the previous year, while adjusted EBITDA rose by 5.6% to $291 million [7] Future Outlook - For the full year 2025, Hyatt projects comparable system-wide hotels RevPAR growth between 2% to 2.5%, net rooms growth of 6.3% to 7.0%, and net income between $70 million and $86 million [8] - Adjusted EBITDA is expected to be between $1,090 million and $1,110 million, reflecting a 7% to 9% increase after adjusting for assets sold in 2024, with capital returns to shareholders projected at approximately $350 million [8]