Dive Brief:
- Hyatt saw systemwide RevPAR increase 7.2% year over year in the third quarter of 2026, according to a Thursday earnings report. In the U.S., the company saw 8.2% year-over-year RevPAR growth, which exceeded expectations, CEO Mark Hoplamazian said on a Thursday earnings call.
- Hyatt’s Q3 was also characterized by “exceptionally strong development activity,” with the company’s pipeline growing 12.1% year over year, per Hoplamazian.
- Amid “continued momentum across all customer segments,” with luxury hotels leading growth, Hyatt raised its full-year 2026 RevPAR growth outlook to a range of between 5% and 5.5%. Hoplamazian also said he is encouraged by ongoing brand strategy and loyalty initiatives.
Dive Insight:
Hyatt saw RevPAR increase across all customer segments in Q3, with leisure transient and group RevPAR seeing strong gains, while business transient RevPAR increased in the low single digits, per the report.
Third-quarter performance “was driven by durable demand from high-end travelers and continued strength across our luxury portfolio, with some benefit from the FIFA World Cup in July and the timing of the Jewish holidays in September,” Hoplamazian said on the call.
He added that “average rates grew in all brand categories,” driving nearly 80% of Hyatt’s RevPAR growth in Q3.
The quarterly results highlight that Hyatt’s premium brands are resonating with today’s travelers, Hoplamazian said. They also remain attractive to owners and developers, as evidenced by development gains in Q3.
Hyatt ended the quarter with a record development pipeline of approximately 158,000 rooms, per the report. Year to date, the company has signed 70% more deals compared to last year, and its construction starts are up over 40%, Hoplamazian said.
“The performance of our luxury, lifestyle and Inclusive Collection brands continue to generate strong owner interest and signings, while our Essentials brands are building continued momentum and expanding Hyatt’s reach,” Hoplamazian added.
The company expects to see more than half of its openings for the full year occur in the fourth quarter, according to Hoplamazian. The Hyatt Regency San Diego Mission Valley in California is slated to open later this year.
Additionally, Hyatt sees significant opportunities to expand its brand presence in the U.S., Hoplamazian said. Amar Lalvani’s recent appointment as Hyatt's first chief creative officer reflects the company’s focus on bringing its brand strategy “to life across the company and equipping colleagues to deliver it,” Hoplamazian said.
On Wednesday, the company announced plans to bring the StandardX brand to North America with an approximately 1,800-key flagship hotel in New York City. Hyatt assumed the brand in 2024 when it acquired boutique hotel operator Standard International, the company from which Lalvani also joined.
On the loyalty front, Hyatt entered into a long-term strategic loyalty collaboration with Delta Air Lines during Q3. The premium travel collaboration represents “a great example of connecting with our members beyond their hotel stay experience,” Hoplamazian said.
