Q1 2026 Hyatt Hotels Corp Earnings Call Transcript
Key Points
- Hyatt Hotels Corp (H) reported a 5.4% increase in system-wide RevPAR, exceeding expectations, driven by strong demand in luxury brands globally.
- The World of Hyatt loyalty program saw an 18% increase in membership, reaching approximately 66 million members, with members accounting for nearly half of total occupied rooms globally.
- Hyatt's development pipeline reached a record of approximately 151,000 rooms, up more than 9% compared to the previous year, indicating strong growth potential.
- The company achieved net rooms growth of 5% for the first quarter, with notable openings in high-demand markets such as Lisbon, Shanghai, and Brooklyn.
- Hyatt's core fee business performed well, with gross fees increasing approximately 9% to $333 million, driven by strong performance across its managed portfolio and newly opened hotels.
- RevPAR in the Middle East and Africa declined by approximately 4% due to ongoing conflict, impacting fees by approximately $10 million for the year.
- The distribution segment faced challenges due to temporary factors, including hotel closures in Jamaica and lower demand in Mexico due to security concerns.
- Hyatt terminated the purchase and sale agreement for the Anda London Liverpool Street and is no longer under contract for two other properties, reflecting challenges in asset sales.
- The company expects a decline in the Distribution segment by approximately $25 million for the full year, including $15 million in the second quarter due to security concerns in Mexico.
- Hyatt's owned and leased segment adjusted EBITDA declined by approximately $2 million, adjusted for the impact of asset sales, indicating challenges in this segment.
Good morning, and welcome to the Hyatt first quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Adam Rohman, Senior Vice President of Investor Relations and Global FP&A. Thank you. Please go ahead.
Thank you, and welcome to Hyatt's first quarter 2026 earnings conference call. Joining me on today's call are Mark Hoplamazian, Hyatt's Chairman, President and Chief Executive Officer; and Joan Bottarini, Hyatt's Chief Financial Officer.
Before we start, I would like to remind everyone that our comments today will include forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10-K quarterly reports on Form 10-Q and other SEC filings. These risks could cause our actual results to be materially different from those
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