Hyatt Hotels Corporation (H Quick QuoteH - Free Report) reported third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same. The top line declined year over year, while adjusted earnings improved from a year-ago loss. Following the results, the company’s shares are up 1.5% in the pre-market trading session today.

Hyatt reported adjusted earnings of $1.27 per share, surpassing the consensus estimate of 69 cents by 84.1%. The company had reported an adjusted loss of 30 cents per share in the prior-year quarter. Revenues of $1,743 million missed the consensus mark of $1,772 million by 1.6% and declined 2.4% year over year. Strong gross fee growth and a 7.2% increase in comparable system-wide hotel RevPAR supported the performance.

H's Fee Business Drives Growth

Gross fees increased 15.2% year over year to $327 million. Base management fees rose 10% to $117 million, supported by higher managed hotel RevPAR, strength in the United States, contributions from the Playa Hotels acquisition and new hotel openings.

Incentive management fees advanced 21.9% to $65 million, driven by contributions from the Playa Hotels acquisition and solid performance in Asia Pacific. Franchise and other fees climbed 16.8% to $145 million, benefiting from non-RevPAR fee contributions, U.S. RevPAR growth and new openings.

Net fees increased to $309 million from $249 million in the year-ago quarter. Management and franchising adjusted EBITDA rose to $270 million from $226 million.

Hyatt's RevPAR Benefits From U.S. Demand

Comparable system-wide hotel RevPAR increased 7.2% year over year to $154.80. Average daily rate rose 5.7% to $210.36, while occupancy improved 1.1 percentage points to 73.6%.

Luxury hotels led RevPAR growth, with leisure transient and group demand registering strong gains. Business transient RevPAR increased in the low-single-digit range. U.S. RevPAR advanced 8.2%, benefiting partly from the FIFA World Cup and the timing of Jewish holidays.

Asia Pacific, excluding Greater China, recorded RevPAR growth of 10.8%. The Americas, excluding the United States, increased 9.2%, while Europe and Greater China registered growth of 4.3% and 2.1%, respectively. Middle East and Africa RevPAR declined 0.7%.

H's All-Inclusive Resorts Face Demand Pressure

Comparable system-wide all-inclusive resort Net Package RevPAR declined 2.5% year over year to $187.19. Occupancy decreased 4 percentage points to 69.6%, while Net Package average daily rate increased 3% to $268.87.

The decline primarily reflected softer travel demand in certain Mexican destinations, partly offset by growth in the Caribbean and Europe. Net Package RevPAR in the Americas, excluding the United States, fell 5%, while Europe recorded growth of 2.1%.

Distribution adjusted EBITDA declined to $17 million from $21 million. Temporary hotel closures in Jamaica related to Hurricane Melissa and weaker demand in Mexico weighed on segment performance.

Hyatt's Adjusted EBITDA Advances

Adjusted EBITDA increased 6.2% year over year to $295 million. After adjusting for assets sold in 2025, the metric advanced 19%. Owned and leased adjusted EBITDA declined to $39 million from $70 million, reflecting the impact of asset dispositions.

Adjusted general and administrative expenses declined to $100 million from $103 million. Transaction and integration costs decreased to $8 million from $25 million, while depreciation and amortization expenses fell to $72 million from $83 million.

Net income attributable to Hyatt was $58 million in contrast to a loss of $49 million in the prior-year quarter. Adjusted net income reached $122 million against an adjusted loss of $29 million.

H Expands Development Pipeline and Membership

Hyatt opened 3,808 rooms during the quarter. Notable openings included Hyatt Vivid Punta Cana in the Dominican Republic, Beldersoy Resort and SPA in Uzbekistan and Thompson Seville.

The company's pipeline of executed management or franchise contracts reached approximately 158,000 rooms, up 12.1% year over year. Trailing-12-month net rooms growth was 3.8%, or 3.9% excluding certain rooms associated with the Playa Hotels acquisition.

World of Hyatt membership reached approximately 72 million, representing 19% year-over-year growth.

Hyatt Raises Key 2026 Outlook Ranges

For 2026, comparable system-wide hotel RevPAR growth is projected between 5% and 5.5%, up from the previous 3.5-4.5% outlook. Net rooms growth is anticipated at approximately 6%.

Gross fees are expected between $1,320 million and $1,335 million, implying growth of 10-11%. Adjusted EBITDA is projected between $1,170 million and $1,200 million, representing growth of 14-17% from the adjusted 2025 baseline.

Adjusted free cash flow is anticipated between $580 million and $630 million. Management expects Net Package RevPAR to return to growth in the fourth quarter as booking trends in Mexico improve.

H's Liquidity and Shareholder Returns

As of Sept. 30, 2026, Hyatt had total debt of $4.4 billion and liquidity of $1.8 billion, including $495 million in cash, cash equivalents and short-term investments.

The company repurchased shares worth $147 million during the quarter, bringing year-to-date shareholder returns to $336 million. Hyatt increased the 2026 capital returns outlook to $375-$425 million, with approximately $1.4 billion remaining under its share repurchase authorization.

H currently carries a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Cinemark Holdings, Inc. (CNK Quick QuoteCNK - Free Report) , AMC Entertainment Holdings, Inc. (AMC Quick QuoteAMC - Free Report) and Marriott International, Inc. (MAR Quick QuoteMAR - Free Report) .

Cinemark presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Cinemark delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 67.9% in the year-to-date period. The Zacks Consensus Estimate for CNK’s 2026 sales and EPS implies growth of 17.7% and 155.8%, respectively, from the year-ago levels.

AMC Entertainment presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 91.7% in the year-to-date period.

The Zacks Consensus Estimate for AMC’s 2026 sales and EPS indicates an increase of 18.8% and 91.7%, respectively, from the year-ago levels.

Marriott currently carries a Zacks Rank #3. The company delivered a trailing four-quarter earnings beat of 2.5%, on average. The stock has gained 27.1% in the year-to-date period.

The Zacks Consensus Estimate for MAR’s 2026 sales and EPS indicates growth of 6.6% and 17.2%, respectively, from the year-ago period’s levels.