Hyatt has increased its financial outlook for 2026, attributing its resilience to a robust demand from premium leisure travelers. In the third quarter, the company reported that U.S. RevPAR climbed 8.2%, a figure that included an approximate lift of 50 basis points driven by the FIFA World Cup. CEO Mark Hoplamazian described luxury leisure as the "juggernaut of growth" for the hotel chain during a recent earnings call. Consequently, adjusted EBITDA rose 19% to $295 million after accounting for hotels sold in the previous year.
The company now projects full-year RevPAR growth between 5% and 5.5% for 2026, an increase from the 3.5% to 4.5% range provided in July. This new forecast surpasses the average Wall Street analyst estimate of 4.7%. While domestic demand has proven strong, international markets faced specific challenges. In the Middle East, international inbound travel to Hyatt properties fell by 40% following the U.S.-Iran war; however, regional RevPAR declined by only about 3%, with the company estimating roughly $10 million in fees at risk for the year. Elsewhere, Europe saw growth of 4.3%, Asia Pacific excluding China grew more than 10%, and China recorded a 2.1% increase.
Despite these gains, the all-inclusive segment emerged as a weak point in the portfolio. Net package RevPAR for this category dropped 2.5%, primarily due to a demand decline of over 10% in Cancún linked to airline capacity cuts. Additionally, the presence of sargassum seaweed in the Riviera Maya negatively impacted demand in that region. CFO Joan Bottarini noted that booking pace for the all-inclusive segment in 2027 is currently up in the high single digits. Hoplamazian cautioned against overinterpreting October indicators, citing market volatility and the upcoming U.S. midterm elections as factors that could influence short-term trends.
Sources: Skift.