Hyatt Narrowed Losses in 2025, Debuts ChatGPT App

Hyatt Hotels Corporation has announced its financial results for the fourth quarter and full year 2025, highlighting operational improvements and a strong focus on AI-driven travel discovery.

Fourth quarter 2025 financial results

• Adjusted EBITDA reached $292 million, representing a 14.6 percent increase compared with the same period in 2024. When excluding the impact of assets sold in 2024 and the Playa Hotels acquisition, adjusted EBITDA still rose 3.8 percent.
• Gross fees totaled $307 million during the quarter, up 4.5 percent year over year.
• Although the company reported a net loss of $20 million, this marked a significant improvement compared with the $56 million loss recorded in Q4 2024.
• Diluted EPS showed a loss of $0.21, improving from a loss of $0.58 in the prior year.
• Comparable system-wide hotel RevPAR grew 4 percent in the fourth quarter, though this was slightly below the 5 percent growth recorded a year earlier.

Full year 2025 financial results

• Hyatt delivered adjusted EBITDA of $1.16 billion, a 5.8 percent increase compared with 2024. When adjusting for asset sales and the Playa Hotels acquisition, the growth rate improves to 7.4 percent.
• Gross fees for the year reached almost $1.2 billion, up 9.0 percent year over year, underscoring the company’s continued transition toward an asset-light model focused on management and franchise income.
• Hyatt reported a net loss of $52 million for the full year, a dramatic improvement from the $1.3 billion loss recorded in 2024.
• Diluted EPS showed a loss of $0.55, compared with positive $12.65 in 2024, reflecting differences in one-time items and financial adjustments between the years.
• Comparable system-wide hotel RevPAR increased 2.9 percent in 2025, compared to 4.6 percent growth in 2024, indicating more moderate demand growth across the portfolio.

2026 financial outlook signals cautious optimism

For the year 2026, Hyatt expects

• net income between $235 and $320,
• gross fees between $1,295 and $1,335,
• and adjusted EBITDA between $1,155 and $1,205.

These projections suggest steady expansion in fee generation while maintaining disciplined cost management.

AI driving booking and revenue gains

CEO Mark Hoplamazian emphasized during the earnings call that Hyatt’s multi-year investment in artificial intelligence is showing measurable results. The company has rebuilt its website search engine to better reflect how travelers actually research and plan trips, incorporating search functionality based on natural language.

Hoplamazian explained that data collected over multiple quarters shows improved booking conversion rates—the native and intent-driven search capabilities are positively influencing both customer engagement and transaction volume.

Expansion into conversational AI platforms

Hyatt has also partnered with OpenAI to launch a branded app within ChatGPT, allowing travelers to search for hotels, ask follow-up questions, and explore options in a conversational format. However, when they are ready to complete a reservation, the booking is finalized on Hyatt’s own digital platform.

This approach mirrors a recent initiative by ALL Accor, the booking and loyalty ecosystem of Accor. ALL Accor introduced its own app within ChatGPT, allowing users to input destinations and travel dates in a conversational format to browse properties across its global network. Like Hyatt, Accor redirects customers to its official booking platform once they decide to confirm a reservation.

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