Hyatt Hotels Corp.'s systemwide third-quarter business transient revenue per available room was about flat year over year, the company reported Thursday, but in the U.S. it improved by about 3 percent.
Hyatt expects 2026 average corporate negotiated rates "to increase in the low-to-mid single-digit range" year over year, CEO Mark Hoplamazian said during the company's quarterly earnings call.
Business transient RevPAR at Hyatt's select-service properties in Q3 increased year over year for the first time in 2025, Hoplamazian said.
Meanwhile, Hyatt's exposure to declines in U.S. government travel volume due to the ongoing shutdown have been "relatively small," Hoplamazian said, but acknowledged that the move by the U.S. Department of Transportation and U.S. Federal Aviation Administration to cut capacity by 10 percent at 40 airportsbeginning Friday would have an effect on demand.
"It would be naive to say, no, there won't be any risk whatsoever when something like 10 percent of the capacity is coming out of the system," Hoplamazian said, but Hyatt hotels during the shutdown have been assessing alternate sources and channels of demand, which should help maintain flexibility in the event of capacity cuts. "There are drive-to resources that we often tap," he said.
The last lengthy U.S. government shutdown, in 2018 and 2019, concluded after the FAA began to limit flights at major airports, which Hoplamazian cited in discussing the current situation.
"My recollection is when we had a long government shutdown some years ago, the air traffic control dynamics is actually what led to finally getting back to a reopening of the government," Hoplamazian said. "And so I think with reduced mobility, there might be more pressure on lawmakers to come back to the table."
Hyatt Q3 Metrics
Hyatt's systemwide third-quarter revenue per available room increased 0.3 percent year over year to $146.24.
Systemwide average daily rate decreased 0.2 percent to $200.90, while occupancy increased 0.4 percentage points to 72.8 percent.
In the United States, RevPAR declined 1.6 percent year over year to $149.44, as ADR decreased 0.4 percent to $207.49 and occupancy declined 0.9 percentage points to 72 percent.
Hyatt projects full-year 2025 comparable systemwide RevPAR growth between 2 percent and 2.5 percent compared with 2024. That's a narrower range than the 1 percent to 3 percent the company offered in the prior quarter, and Hyatt CFO Joan Bottarini said it implies fourth-quarter growth of 0.5 percent to 2.5 percent year over year.
October year-over-year RevPAR is up 5 percent systemwide and 1 percent in the United States, Bottarini said. Hyatt projects U.S. RevPAR in both the fourth-quarter and full-year 2025 to increase 1 percent year over year, she said.
Hyatt's RevPAR projections do not take into account its $2.6 billion acquisition of all-inclusive resort chain Playa Hotels & Resorts, which closed June 17.
Hyatt's total third-quarter revenue increased about 10 percent year over year to nearly $1.8 billion. Hyatt's net loss was $50 million compared with net income of $471 million in Q3 2024.
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