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Hyatt Hotels Corporation H is scheduled to report first-quarter 2025 results on May 1, before the opening bell.
H’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed on two occasions, the average surprise being 6.1%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Trend in Estimate Revision of H
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at 30 cents, indicating a deterioration of 57.8% from 71 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.7 billion, suggesting a decline of 0.7% from the prior-year quarter’s figure.
Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote
Let us look at how things have shaped up in the quarter.
Factors Likely to Shape Hyatt’s Quarterly Results
Hyatt’s first-quarter performance is likely to have benefited from accelerated net room additions, and strategic expansion in the all-inclusive and luxury segments.
Sustained demand from high-end travelers and rising corporate travel activity are expected to have aided the company’s revenue per available room performance in the to-be-reported quarter. Leisure transient revenues showed solid growth momentum entering 2025, while business transient demand remained robust across major urban markets. Hyatt’s management highlighted that transient pace for the first quarter is up in the high single digits compared to the prior year, supported by favorable holiday timing.
Strong contributions from franchise and other fees, as well as base and incentive fees, are expected to have supported Hyatt’s performance in the to-be-reported quarter. Early contributions from the recently added Venetian Resort Las Vegas and the Bahia Principe portfolio are also likely to bolster fee income in the quarter under review. Our model predicts the first-quarter gross fees to rise 13.9% year over year to $298.5 million.
Hyatt’s expanding loyalty base — World of Hyatt — alongside strong credit card spend and heightened brand engagement, is expected to have supported commercial performance. Loyalty-driven demand, coupled with strong early-year performance from corporate group business and favorable booking patterns, is expected to have bolstered its occupancy and performance in the first quarter.
However, inflationary pressures, labor cost increases in select markets and the drag from asset sales completed in 2024 may have weighed on Hyatt’s bottom line in the first quarter. The company expects adjusted EBITDA in the first quarter to be negatively impacted by approximately $40 million due to 2024 real estate dispositions.