Hyatt Hotels Gears Up to Report Q4 Earnings: Here's What to Expect

Core Viewpoint - Hyatt Hotels Corporation is set to report its fourth-quarter 2025 results on February 12, 2026, with expectations of revenue growth driven by luxury travel demand and international market momentum [1][4]. Financial Performance - In the last reported quarter, Hyatt's adjusted loss per share and revenues missed the Zacks Consensus Estimate by 161.2% and 2.5%, respectively, with a year-over-year revenue growth of 9.6% and a bottom line decline of 131.9% [1]. - The Zacks Consensus Estimate for the upcoming quarter's EPS has increased to 50 cents from 46 cents, indicating a 19.1% increase from the previous year's EPS of 42 cents. Revenue is estimated at nearly $1.77 billion, reflecting a 10.5% increase from the prior-year quarter [3]. Revenue Drivers - The anticipated revenue growth is attributed to strong demand for luxury and all-inclusive travel, with significant contributions from net package RevPAR growth and international markets, particularly in Europe and Greater China [4][6]. - Management expects system-wide RevPAR growth for the fourth quarter to be between 0.5% and 2.5%, with full-service hotels in the U.S. projected to outperform select-service properties [5]. Operational Insights - The company is experiencing improving leisure-transient demand in Greater China, alongside solid performance in upper-upscale and luxury properties, which is expected to sustain momentum [6]. - The model predicts revenues from Franchise and other fees to rise 4.6% year over year to $123.6 million, with gross fees expected to increase 4.2% to $306.2 million [7]. Profitability Expectations - Fourth-quarter adjusted EBITDA is projected to increase by 27.2% year over year to $324.4 million, supported by growing fee income and an asset-light earnings mix [10]. - However, profitability may face pressure from ongoing inflation in operating costs and integration-related expenses [8]. Strategic Changes - Hyatt is shifting towards an asset-light earnings mix, targeting to exceed 90% in the near term, which will replace capital-intensive owned earnings with higher-margin fee income [9].