Hyatt stock sinks after the hotel company trimmed its rooms growth forecast

Hyatt trimmed its full-year net rooms growth outlook to approximately 6%, narrowing what had been a range of 6% to 7%, the company said. Chief Executive Officer Mark Hoplamazian said the revised forecast accounts for how hotel openings are distributed across the second half of the year and the chance that some of those openings slip into early 2027, adding that he is approaching the timing of those openings with caution.

Second-quarter revenue per available room across comparable system-wide hotels rose 5.9% compared with the same period a year earlier. Geopolitical conflict in the Middle East reduced that RevPAR growth by about 110 basis points, the company said. Gross fees reached $324 million, up 7.8% from a year earlier, and adjusted EBITDA came in at $297 million, an increase of 3.4%.

Hyatt also flagged pressure from its all-inclusive resort business. Net Package RevPAR at comparable system-wide all-inclusive resorts fell 1.2% in the quarter, reflecting softer demand tied in part to security concerns in Mexico earlier this year and reduced airlift into certain destinations, the company said. While booking trends in Mexico have improved, the pace of recovery has been slower than previously anticipated.

For the full year, Hyatt now projects comparable system-wide hotel RevPAR growth of 3.5% to 4.5%, net income of $250 million to $335 million, and adjusted EBITDA of $1.155 billion to $1.205 billion, the company said. The company also expects to return $325 million to $375 million to shareholders through dividends and share repurchases.

Heading into Thursday, Hyatt stock had gained close to 12% on the year, according to Reuters. Shares were changing hands near $168 during Thursday's session.

"Our strong second quarter results reflect the continued strength of Hyatt's differentiated portfolio and the deep engagement of our high-value guests around the world," Mark Hoplamazian said in a statement. "Although we are taking a measured view on the timing of openings later this year, continued signing momentum and a high-quality development pipeline reinforce our confidence in Hyatt's long-term growth model and value creation strategy."

As of June 30, the company reported total debt of $4.3 billion and total liquidity of $2.1 billion.