Hyatt Hotels (H, Financial) just posted Q3 earnings, showing a 3% rise in system-wide RevPAR, driven by strong business and group travel demand, though leisure bookings faced some headwinds from renovations and weather. The management and franchising segment saw nearly 9% growth in adjusted EBITDA, underscoring Hyatt's resilience. Meanwhile, the quarter added 16 new hotels, including Alila Shanghai and Park Hyatt Marrakech, pushing Hyatt's development pipeline to an all-time high of 135,000 rooms.
But investors didn't seem impressed today—Hyatt's shares dropped 5.5% after management pulled back slightly on its full-year guidance. CEO Mark Hoplamazian pointed to big wins, like a 22% increase in World of Hyatt memberships to a record 51 million. The company's asset-light model continues to shine, with over $1.2 billion returned to shareholders through buybacks and dividends this year, highlighting Hyatt's priority on capital efficiency and value creation.
Looking ahead, Hyatt trimmed its full-year EBITDA forecast to $1.10 to $1.12 billion, down from previous projections, while holding steady on expected RevPAR growth of 3% to 4%. With share repurchases now totaling $657 million and capital returns expected to reach $1.25 billion for the year, Hyatt is on track for solid long-term performance. Jefferies analyst David Katz noted potential near-term pressure on travel trends, but Hyatt's focus on strategic growth keeps it poised to deliver value for the long haul.
