Hyatt Raises 2026 Outlook Driven by Luxury Travel Demand
Hyatt raises its 2026 RevPAR forecast to 5%-5.5% after third-quarter U.S. RevPAR rose 8.2% and EBITDA reached $295 million, despite all-inclusive lag.
Stock photo for illustration only, not from the actual event
- Hyatt raised its full-year 2026 RevPAR forecast to 5% to 5.5%, topping Wall Street's 4.7% analyst average.
- U.S. RevPAR climbed 8.2% in the third quarter, boosted by approximately 50 basis points from the FIFA World Cup.
- Adjusted EBITDA rose 19% to reach $295 million when adjusted for hotels sold last year.
- All-inclusive resorts lagged as the sole soft spot, with net package RevPAR dropping 2.5%.
Hyatt Hotels Corporation delivered strong third-quarter results fueled heavily by high-end leisure travelers, prompting the hospitality company to raise its financial outlook for the year despite regional headwinds and softness in specific asset classes.
Speaking during a Thursday earnings call, Hyatt CEO Mark Hoplamazian emphasized that luxury leisure continues to serve as the primary engine for the company's growth. U.S. RevPAR jumped 8.2% during the quarter, a figure that included an approximate 50 basis-point lift driven by the FIFA World Cup tournament.
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Stock photo for illustration only, not from the actual event
The robust performance drove adjusted EBITDA up 19% to $295 million, adjusted for hotel asset sales from the previous year. Consequently, Hyatt upgraded its full-year RevPAR growth forecast for 2026 to a range of 5% to 5.5%, up from its previous July projection of 3.5% to 4.5% and outperforming the 4.7% average Wall Street analyst estimate. Executives cautioned, however, against over-interpreting October indicators due to market volatility and upcoming U.S. midterm elections.
"Luxury leisure has just remained the juggernaut of growth for us"
Mark Hoplamazian, CEO Hyatt
Geographically, Europe grew 4.3%, Asia Pacific excluding China expanded over 10%, and China grew 2.1%. In the Middle East, domestic demand absorbed severe shocks from the U.S.-Iran war, which cut international inbound travel to regional properties by 40%. Despite the plunge, regional RevPAR dropped only about 3%, though Hyatt anticipates roughly $10 million in fee exposure for the year.
Hyatt's ability to cushion Middle Eastern operations through domestic demand highlights the resilience of diversified regional portfolios against geopolitical shocks. However, exposure to regional conflicts remains a critical risk factor that luxury hotel operators must factor into long-term strategic planning.
The sole exception to the upward trend was the all-inclusive portfolio, where net package RevPAR fell 2.5%. The decline was dragged down by Cancún, where demand fell over 10% following airline capacity cuts, alongside sargassum seaweed issues in the Riviera Maya. Nonetheless, CFO Joan Bottarini noted that booking paces for the all-inclusive segment heading into 2027 are up in the high single digits.
Source: Skift
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