Q2 2026 Hyatt Hotels Corp Earnings Call Transcript
Key Points
- Strong RevPAR growth of 5.9% in Q2 2026, exceeding expectations, driven by durable demand from high-end travelers and the FIFA World Cup.
- Record development pipeline of approximately 154,000 rooms, up 10% year-over-year, indicating strong owner preference for Hyatt brands.
- World of Hyatt membership grew 17% to 69 million members, enhancing the network effect and driving direct channel demand.
- Gross fees increased 8% to $324 million, reflecting strong performance across managed portfolio and new hotel openings.
- Adjusted EBITDA grew approximately 9% year-over-year after adjusting for asset sales, demonstrating the strength of the core fee business.
- Net package RevPAR in all-inclusive portfolio declined 1.2% due to security incidents in Mexico and lower flight capacity.
- RevPAR in the Middle East declined 36% due to ongoing regional conflict, reducing full-year fees by approximately $10 million.
- Distribution segment adjusted EBITDA declined due to hotel closures in Jamaica from Hurricane Melissa and softer demand in Mexico.
- Sale of Hyatt Grand Central New York is no longer expected to close in 2026, delaying asset monetization.
- Net rooms growth outlook adjusted downward due to slippage of Q4 openings into 2027, reflecting timing uncertainties.
Good morning, and welcome to Hyatt's second 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 Ryan Nuckols, Vice President of Investor Relations and Corporate Strategy. Please go ahead.
Thank you, and welcome to Hyatt's second 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'd 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 expressed in or implied by our comments.
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