Hyatt Hotels raised its full-year 2026 hotel revenue per available room outlook following stronger-than-expected U.S. demand, including increased travel associated with the FIFA World Cup.
The company now expects comparable system-wide hotel RevPAR to increase between 3.5% and 4.5% in 2026, up from its previous forecast of 2% to 4%. U.S. RevPAR is expected to increase between 3% and 4% for the full year, while Hyatt anticipates moderately stronger growth in international markets.
The outlook increase followed a quarter in which comparable system-wide hotel RevPAR rose 5.9% year-over-year. Hyatt said strong performance in the United States, including demand connected to the FIFA World Cup, supported the improved forecast.
Luxury and upper-upscale hotels led RevPAR growth during the quarter. Leisure transient and group RevPAR both delivered strong growth, while business transient RevPAR increased in the low single digits.
The performance came despite geopolitical disruptions. Conflict in the Middle East reduced Hyatt’s second-quarter RevPAR growth by approximately 110 basis points, indicating that underlying hotel demand would have been even stronger without the regional headwind.
Hyatt’s stronger hotel-demand outlook contrasted with softer performance across its all-inclusive resort portfolio. Comparable system-wide all-inclusive Net Package RevPAR declined 1.2%, reflecting weaker demand following security concerns in Mexico and reduced airline capacity into certain destinations.
The company expects all-inclusive Net Package RevPAR growth to remain positive for the full year, but below its previous expectations. Hyatt said booking trends in Mexico have continued to improve sequentially, although the recovery has been slower than anticipated.
Hyatt also took a more measured position on the timing of new hotel openings. The company reduced its 2026 net rooms growth outlook from a range of 6% to 7% to approximately 6%, reflecting the possibility that some openings scheduled for the second half of the year could move into early 2027.
Despite the timing adjustment, Hyatt’s development pipeline remained strong. The company had approximately 154,000 rooms under executed management or franchise contracts at the end of the quarter, representing a 10% year-over-year increase.
Hyatt opened 3,585 rooms during the second quarter, including Miraval The Red Sea, the first Miraval property outside the United States, and The Barai Hua Hin, which introduced The Unbound Collection by Hyatt brand to Thailand.
Gross fees increased 7.8% to $324 million, driven by strong performance from Hyatt’s core fee-based business. Base management fees increased 10.2%, supported by managed hotel RevPAR growth, strength in the United States, and contributions from the Playa Hotels acquisition.
Adjusted EBITDA increased 3.4% to $297 million. After adjusting for hotels sold in 2025, adjusted EBITDA increased 8.8%. Hyatt maintained its full-year adjusted EBITDA outlook of $1.155 billion to $1.205 billion.
The company reported net income attributable to Hyatt of $110 million and adjusted net income of $108 million. Diluted earnings per share were $1.14, while adjusted diluted earnings per share were $1.12.
Hyatt maintained its forecast for gross fees of $1.305 billion to $1.335 billion and adjusted free cash flow of $580 million to $630 million. The company expects to return between $325 million and $375 million to shareholders through dividends and share repurchases during 2026.
KEY QUOTES:
“Our strong second quarter results reflect the continued strength of Hyatt’s differentiated portfolio and the deep engagement of our high-value guests around the world.”
Mark S. Hoplamazian, Chairman, President And Chief Executive Officer Of Hyatt
