Hyatt Hotels (NYSE:H) Exceeds Q1 Expectations, Stock Soars

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H Cover Image — Hyatt Hotels (NYSE:H) Exceeds Q1 Expectations, Stock Soars

Jabin Bastian

Thu, May 1, 2025, 8:53 AM 4 min read

Revenue: $1.72 billion vs analyst estimates of $1.69 billion (flat year on year, 2% beat)
Adjusted EPS: $0.46 vs analyst estimates of $0.36 (28.8% beat)
Adjusted EBITDA: $273 million vs analyst estimates of $244 million (15.9% margin, 11.9% beat)
EBITDA guidance for the full year is $1.11 billion at the midpoint, below analyst estimates of $1.12 billion
RevPAR: $134.55 at quarter end, up 2% year on year
Market Capitalization: $10.75 billion

Company Overview

Founded in 1957, Hyatt Hotels (NYSE:H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.

Sales Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Hyatt Hotels’s 6.9% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the consumer discretionary sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Hyatt Hotels’s recent performance shows its demand has slowed as its annualized revenue growth of 2.8% over the last two years was below its five-year trend.

Hyatt Hotels Year-On-Year Revenue Growth

We can dig further into the company’s revenue dynamics by analyzing its revenue per available room, which clocked in at $134.55 this quarter and is a key metric accounting for daily rates and occupancy levels. Over the last two years, Hyatt Hotels’s revenue per room averaged 4.9% year-on-year growth. Because this number is better than its revenue growth, we can see its room bookings outperformed its sales from other areas like restaurants, bars, and amenities.

This quarter, Hyatt Hotels’s $1.72 billion of revenue was flat year on year but beat Wall Street’s estimates by 2%.

Looking ahead, sell-side analysts expect revenue to grow 3.8% over the next 12 months, similar to its two-year rate. Although this projection implies its newer products and services will spur better top-line performance, it is still below average for the sector.

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Operating Margin

in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Hyatt Hotels’s EPS grew at a spectacular 21.7% compounded annual growth rate over the last five years, higher than its 6.9% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its operating margin didn’t expand.

Hyatt Hotels Trailing 12-Month EPS (Non-GAAP)

In Q1, Hyatt Hotels reported EPS at $0.46, down from $0.76 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Hyatt Hotels’s full-year EPS of $3.35 to shrink by 4.3%.

Key Takeaways from Hyatt Hotels’s Q1 Results

We enjoyed seeing Hyatt Hotels beat analysts’ revenue, EPS, and EBITDA expectations this quarter. On the other hand, its full-year EBITDA guidance was below Wall Street’s estimates. Still, we think this was a solid quarter with some key areas of upside. The stock traded up 5.7% to $119.06 immediately after reporting.

Indeed, Hyatt Hotels had a rock-solid quarterly earnings result, but is this stock a good investment here? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

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