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Hyatt Hotels (H) shares surged in early trading Thursday after the company reported first-quarter results above analysts' expectations.
The Chicago-based hotel chain posted adjusted earnings per share of $0.46 on revenue of $1.72 billion. Analysts surveyed by Visible Alpha were looking for $0.30 and $1.69 billion, respectively.
Hyatt registered revenue per available room, or RevPAR, of $134.55, slightly below projections of $135.58. Comparable system-wide hotels RevPAR growth of 5.7% beat the consensus 3.5%.
Hyatt Lowers Full-Year RevPAR Growth Forecast
However, Hyatt lowered its full-year comparable system-wide hotels RevPAR growth forecast to 1% to 3% from the prior 2% to 4%. It affirmed its net rooms growth outlook of 6% to 7%.
"Recent shifts in booking behavior—particularly in shorter-term demand—have led us to modestly revise our outlook for the remainder of the year," CEO Mark Hoplamazian said. "That said, we remain confident in the resilience of our asset-light business model, the strength of our brand portfolio, and our ability to adapt to evolving market conditions. We are excited about the momentum in our pipeline and the continued strong demand we're seeing for our brands around the world."
Last month, Goldman Sachs lowered its outlook for U.S. hotels, expecting RevPAR to grow 0.4% in 2025, down from its prior estimate of 1.4%, and dropped its rating for Hyatt stock to "sell."
Hyatt shares, which entered Thursday down nearly 30% this year, jumped over 5% after the opening bell.
This article has been updated since it was first published to include additional information and reflect more recent share price values.
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