Hyatt Raises 2025 Outlook on Luxury Travel Demand, but All-Inclusive Resorts Lag

Hyatt Hotels raised its full-year earnings outlook, citing strong demand from affluent travelers at its luxury and lifestyle properties. The company now expects adjusted EBITDA of $1.25 billion to $1.29 billion, up from a prior range of $1.22 billion to $1.28 billion. CEO Mark Hoplamazian said the revised guidance reflects continued pricing power in high-end segments, particularly in the Americas and Europe. However, Hyatt’s all-inclusive portfolio, which includes brands like Secrets and Dreams, saw softer performance. Revenue per available room (RevPAR) at those resorts rose just 1.2% year over year, compared with 4.5% for the company overall. The company’s net income for the first quarter was $522 million, down from $611 million a year earlier, partly due to asset sales. Hyatt’s strategy has shifted toward an asset-light model, with 80% of earnings now coming from fees. The company’s pipeline stands at 138,000 rooms, with 60% in luxury and upper-upscale segments. While the wealth effect has buoyed results, Hyatt’s reliance on high-end leisure travel could expose it to economic downturns. The stock fell 2.3% after the earnings release, reflecting investor concern over the all-inclusive lag. Hyatt expects full-year RevPAR growth of 3% to 5%, but the all-inclusive segment may need a boost from new marketing or renovations. The company plans to open 60 to 70 new hotels in 2025, with a focus on luxury and lifestyle brands. As the summer travel season begins, Hyatt’s ability to attract affluent vacationers to its all-inclusive resorts will be a key test.