Hyatt raises 2026 RevPAR outlook as Q3 gross fees rise 15%

Hyatt Hotels Corporation (H) said in an 8-K filing on Oct. 29 that third-quarter 2026 net income attributable to the company was $58 million, or 60 cents per diluted share.

Adjusted diluted earnings were $1.27 per share. Total revenues were $1.74 billion, compared with $1.79 billion a year earlier.

Here's how the company did:

• Adjusted diluted EPS: $1.27 per share vs. a loss of 30 cents a year earlier
• Revenue: $1.74 billion vs. $1.79 billion a year earlier
• Gross fees: $327 million, up 15.2% from $283 million
• Adjusted EBITDA: $295 million, up 6.2% from $278 million

The company, headquartered in Chicago, said its portfolio included more than 1,500 hotels and all-inclusive properties in 84 countries as of Sept. 30.

Comparable system-wide hotels RevPAR rose 7.2% from a year earlier. In the United States, RevPAR grew 8.2%, which the company said benefited in part from the FIFA World Cup and the timing of the Jewish holidays.

Net Package RevPAR at all-inclusive resorts fell 2.5%. The company attributed the decline mainly to lower demand for travel to certain destinations in Mexico, partly offset by growth in the Caribbean and Europe.

Base management fees rose 10.0%, incentive management fees rose 21.9% and franchise and other fees rose 16.8%. The company said executed management or franchise contracts reached about 158,000 rooms, up 12.1% from a year earlier.

Net income has risen in each of the last three quarters, from a loss of $49.0 million in the third quarter of 2025 to $110.0 million in the second quarter of 2026, according to its SEC filings.

2026 guidance

The company raised its full-year comparable system-wide hotels RevPAR growth outlook to 5.0% to 5.5%, from the 3.5% to 4.5% range it gave on July 30. It said the increase reflects strong third-quarter performance and momentum after the Labor Day holiday.

It set its net income attributable to Hyatt Hotels Corporation outlook at $240 million to $310 million, down from $250 million to $335 million. Gross fees are now expected at $1,320 million to $1,335 million, from $1,305 million to $1,335 million.

Adjusted EBITDA is now projected at $1,170 million to $1,200 million, compared with $1,155 million to $1,205 million before. The company expects Distribution segment Adjusted EBITDA to fall about $30 million for the full year from 2025, a $5 million larger decline than in its prior outlook, driven by lower demand in Mexico.

The outlook excludes any disposition or acquisition activity beyond what had been completed as of the release date.

Cash and capital returns

The company repurchased 867,109 Class A shares for $147 million in the third quarter. It returned $336 million to shareholders through dividends and buybacks in the nine months through Sept. 30, and it now expects capital returns of $375 million to $425 million for 2026, up from $325 million to $375 million.

As of Sept. 30, remaining repurchase authorization totaled about $1.4 billion, total debt was $4.4 billion and total liquidity was $1.8 billion.

The board declared a fourth-quarter dividend of 15 cents per share, payable Dec. 7 to Class A and Class B stockholders of record as of Nov. 23.

Chairman, President and Chief Executive Officer Mark S. Hoplamazian said the third-quarter results "reinforce the strength of Hyatt's differentiated brands." He added, "We believe these competitive advantages position us to drive quality growth, durable fee earnings, increasing free cash flow, and long-term shareholder value."