Hyatt Hotels Corporation (H Quick QuoteH - Free Report) has delivered better-than-expected first-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line tumbled.

The quarter’s results reflect the continued strong demand trends across the company’s diversified brand offerings globally. Its focus on an asset-light business model and the pipeline momentum positions it to adapt to the uncertain market conditions and ensure improvements throughout the year and beyond.

Following the results, the company’s shares moved up 8.9% during today’s pre-market trading session.

Hyatt’s Q1 Earnings & Revenue Discussion

Hyatt reported adjusted earnings per share (EPS) of 46 cents, beating the Zacks Consensus Estimate of 30 cents by 53.3%. In the year-ago quarter, the company reported an adjusted EPS of 77 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Revenues of $1.718 billion marginally topped the consensus mark of $1.702 billion by 0.9% and inched up 0.2% on a year-over-year basis.

During the quarter, H witnessed a 29.1% decline in Owned and Leased revenues to $219 million and a 68.6% decrease in Other revenues to $11 million, on a year-over-year basis. Distribution revenues also declined 1.3% to $315 million. However, Net fees increased 15.3% year over year to $287 million.  Revenues for reimbursed costs grew 10.5% to $886 million from $802 million reported in the prior-year quarter.

The company reported a 5.7% increase in comparable system-wide hotel RevPAR compared with the same period in 2024. Comparable system-wide all-inclusive resorts’ Net Package RevPAR rose 4.5% year over year. Strong business transient and group travel demand trends drove the results, along with the newly opened properties.

Hyatt’s Operating Highlights

Adjusted EBITDA was $273 million, up 5.4% year over year (or up 24.4% after adjusting for assets sold in 2024). Our model predicted the metric to be $264.2 million.

Adjusted EBITDA of Management and Franchising as well as Distribution increased year over year by 16.3% and 25.6%, respectively, to $236 million and $49 million. On the other hand, the Owned and Leased segment’s adjusted EBITDA dwindled 56.5% year over year to $27 million.

Balance Sheet of Hyatt

As of March 31, 2025, Hyatt reported cash and cash equivalents of $1.805 billion compared with $1.383 billion at 2024-end. Total liquidity was $3.3 billion at the first-quarter end. Total debt as of March 31, 2025, was $4.3 billion, up from $3.78 billion at 2024-end.

Other Business Updates of Hyatt

Regarding hotel openings, 11,253 rooms joined Hyatt's system in the first quarter. As of March 31, 2025, the company had a pipeline of executed management or franchise contracts for approximately 138,000 rooms.

Hyatt’s 2025 Outlook Revised

For 2025, the company continues to expect adjusted general and administrative expenses to be between $450 million and $460 million, up 1-4% year over year. Capital expenditures are anticipated to be about $150 million. Net rooms growth is still anticipated to be between 6% and 7% year over year.

Management now anticipates 2025 system-wide RevPAR to rise 1-3% from the 2024 level compared with the prior projection of 2-4% growth. Adjusted EBITDA is expected to be in the band of $1.08-$1.135 billion, up 6-12% year over year. The company still expects adjusted free cash flow to be in the range of $450-$500 million, down 17-7% year over year.

H’s Zacks Rank & Recent Consumer Discretionary Releases

Hyatt currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Norwegian Cruise Line Holdings Ltd. (NCLH Quick QuoteNCLH - Free Report) reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the top and bottom lines decreased on a year-over-year basis.

Results in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates. For 2025, Norwegian Cruise anticipates occupancy to be approximately 102.5% compared with the prior guidance of 103.4% and Capacity Days to be about 24.545 million.

MGM Resorts International (MGM Quick QuoteMGM - Free Report) reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom lines declined from the prior-year quarter’s level.

Management remains optimistic about the outlook for the rest of 2025, supported by strong forward bookings and expectations for record hotel performance in April on the Las Vegas Strip. MGM Resorts stated progress on the $200 million EBITDA enhancement plan and expects more than $150 million to be realized in 2025.

Caesars Entertainment, Inc. (CZR Quick QuoteCZR - Free Report) reported mixed first-quarter 2025 results with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. Nonetheless, both the top and bottom lines improved on a year-over-year basis.

Caesars Entertainment’s first-quarter performance was driven by record results in the Digital segment. Growth in the regional segment, supported by recently opened properties, and solid performance in Las Vegas, despite a tough comparison to last year’s Super Bowl period, also aided the quarter’s performance.