This Quarterly Report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about the Company's plans, strategies, and financial performance, and prospective or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate ("ADR"); limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions, including political or civil unrest or changes in trade policy; the impact of global tariff policies or regulations; economic sanctions or other government restrictions that may limit our ability to conduct business or receive payments; hostilities, or fear of hostilities, including the ongoing military conflict in the Middle East and security-related disruptions in Mexico, as well as terrorist attacks or other acts of violence, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as hurricanes, earthquakes, tsunamis, tornadoes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; the impact of government-issued travel advisories, airspace closures, or flight suspensions on international arrivals and hotel bookings in affected regions; our ability to successfully achieve specified levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations or realize anticipated synergies; failure to successfully complete proposed transactions, including the failure to satisfy closing conditions or obtain required approvals; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of our real estate assets; unforeseen terminations of our management and hotel services agreements or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; risks associated with the introduction of new brand concepts, including lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and manage the Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; and violations of regulations or laws related to our franchising business and licensing businesses and our international operations.
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These factors are not necessarily all of the important factors that could cause our actual results, performance, or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors could also harm our business, financial condition, results of operations, or cash flows. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
The following discussion should be read in conjunction with the Company's condensed consolidated financial statements and accompanying Notes, which appear elsewhere in this Quarterly Report.
Overview
Our portfolio of properties consists of full service hotels and resorts, select service hotels, all-inclusive resorts, and other properties, including timeshare, fractional, and other forms of residential and vacation units. We also offer distribution and destination management services through ALG Vacations and distribution services through Mr & Mrs Smith, a boutique and luxury global travel platform. Additionally, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and operate under other trade names or marks owned by such hotels or licensed by third parties. The following table summarizes our portfolio of properties:
Properties at June 30, Rooms at June 30,
2026 2025 Change 2026 2025 Change
System-wide hotels
Managed (1) 580 553 27 4.9 % 167,276 161,147 6,129 3.8 %
Franchised 803 754 49 6.5 % 144,721 135,072 9,649 7.1 %
Owned and leased (2) 22 22 — — % 7,928 7,927 1 0.0 %
Total (3) 1,405 1,329 76 5.7 % 319,925 304,146 15,779 5.2 %
System-wide all-inclusive resorts
Managed (1) 148 134 14 10.4 % 56,699 51,605 5,094 9.9 %
Owned and leased 6 24 (18) (75.0) % 1,262 8,039 (6,777) (84.3) %
Total 154 158 (4) (2.5) % 57,961 59,644 (1,683) (2.8) %
Total system-wide (4) 1,559 1,487 72 4.8 % 377,886 363,790 14,096 3.9 %
Mr & Mrs Smith (5) 1,242 1,182 60 5.1 % 41,882 39,010 2,872 7.4 %
Hyatt Vacation Club 22 22 — — % 1,993 1,997 (4) (0.2) %
Residential 44 41 3 7.3 % 4,919 4,455 464 10.4 %
(1) Includes properties that we manage or provide services to.
(2) Figures do not include unconsolidated hospitality ventures.
(3) Figures do not include all-inclusive properties.
(4) Figures do not include Mr & Mrs Smith, Hyatt Vacation Club, and certain residential units.
(5) Represents unaffiliated Mr & Mrs Smith properties available through hyatt.com, which are not reflected in the system-wide figures above.
We report our consolidated operations in U.S. dollars. Amounts are reported in millions, unless otherwise noted. Percentages may not recompute due to rounding, and percentage changes that are not meaningful are presented as "NM." Constant dollar disclosures used throughout Management's Discussion and Analysis of Financial Condition and Results of Operations are non-GAAP measures. See "—Key Business Metrics Evaluated by Management" for further discussion.
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During the six months ended June 30, 2026, we revised our definition of Adjusted EBITDA to no longer include our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA, and we recast prior-period results to provide comparability. The revised definition is consistent with information provided to our CODM. See "—Key Business Metrics Evaluated by Management" for an explanation of how we utilize Adjusted EBITDA, why we present it, and material limitations on its usefulness, as well as a reconciliation of our net income (loss) attributable to Hyatt Hotels Corporation to Adjusted EBITDA.
Additionally, during the fourth quarter of 2025, we amended our co-branded credit card agreement with a third party, and as of the effective date of the amendment, the co-branded credit card programs were integrated into our loyalty program. Prior to the integration, certain amounts related to our co-branded credit card programs were recognized in other revenues, other direct costs, and general and administrative expenses on our condensed consolidated statements of income (loss). Following the integration into the loyalty program, these amounts are recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income (loss). License fee revenues continue to be recognized within franchise and other fees.
Overview of Financial Results
Consolidated revenues increased $21 million, or 1.2%, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Gross fee revenues and revenues for reimbursed costs increased $23 million and $78 million, respectively, primarily driven by higher revenues and improved operating performance at our existing properties as well as growth of our hotel portfolio compared to the three months ended June 30, 2025. Owned and leased revenues decreased $30 million, compared to the three months ended June 30, 2025, primarily driven by the sale of the Playa Hotels Portfolio. Distribution revenues decreased by $37 million, compared to the three months ended June 30, 2025, driven by lower booking volumes, in part due to reduced travel demand to certain destinations.
Comparable system-wide hotels Revenue per Available Room ("RevPAR") for the three months ended June 30, 2026 was $158.70, which represented a 5.9% increase compared to the three months ended June 30, 2025 in constant dollars. Comparable system-wide all-inclusive resorts Net Package RevPAR for the three months ended June 30, 2026 was $197.45, which represented a 1.2% decrease compared to the three months ended June 30, 2025 in reported dollars. See "—RevPAR and Net Package RevPAR Statistics" for further discussion.
During the three months ended June 30, 2026, leisure transient and group RevPAR improved, driven by strong performance in the United States throughout the quarter, in part due to the impact of the FIFA World Cup, compared to the three months ended June 30, 2025. Leisure transient RevPAR also benefited from continued strength across Asia Pacific. Business transient RevPAR improved driven by United States select service properties and Asia Pacific (excluding Greater China). At June 30, 2026, group booking pace for July through December 2026 at our comparable full service managed hotels in the United States is up 5.7% compared to the same period in 2025.
During the three months ended June 30, 2026, we reported $110 million of net income attributable to Hyatt Hotels Corporation, representing a $113 million increase, compared to the three months ended June 30, 2025, primarily driven by a decrease in transaction and integration costs and increases in other income (loss), net and net fee revenues. During the three months ended June 30, 2026, Adjusted EBITDA was $297 million, an $11 million increase compared to the three months ended June 30, 2025. See "—Results of Operations" and "—Segment Results" for further discussion.
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RevPAR and Net Package RevPAR Statistics
Three Months Ended June 30,
Number of comparable hotels (2) RevPAR Occupancy ADR
vs. 2025 vs. 2025
2026 (in constant $) 2026 vs. 2025 2026 (in constant $)
Comparable system-wide hotels (1) 1,212 $ 158.70 5.9 % 73.2 % 0.6 % pts $ 216.81 5.0 %
United States 693 $ 169.23 6.7 % 74.1 % 0.6 % pts $ 228.28 5.7 %
Americas (excluding United States) 75 $ 195.26 9.5 % 71.8 % 2.3 % pts $ 272.08 6.1 %
Greater China 173 $ 93.80 7.2 % 73.5 % 2.1 % pts $ 127.60 4.1 %
Asia Pacific (excluding Greater China) 128 $ 149.76 10.3 % 74.3 % 3.1 % pts $ 201.66 5.7 %
Europe 102 $ 228.14 4.5 % 75.9 % 1.4 % pts $ 300.51 2.5 %
Middle East & Africa 41 $ 98.43 (28.3) % 50.5 % (18.1) % pts $ 194.81 (2.7) %
(1) Consists of hotels that we manage, franchise, own, lease, or provide services to, excluding all-inclusive properties.
(2) During the three months ended June 30, 2026, we removed the following properties from comparable hotels: six properties that left the hotel portfolio and two properties that underwent a large-scale capital project.
Six Months Ended June 30,
Number of comparable hotels (4) RevPAR Occupancy ADR
vs. 2025 vs. 2025
2026 (in constant $) 2026 vs. 2025 2026 (in constant $)
Comparable system-wide hotels (3) 1,212 $ 150.96 5.7 % 70.5 % 1.1 % pts $ 214.22 4.1 %
United States 693 $ 156.45 5.1 % 70.2 % 0.4 % pts $ 222.96 4.5 %
Americas (excluding United States) 75 $ 200.83 7.9 % 70.7 % 2.3 % pts $ 283.96 4.3 %
Greater China 173 $ 92.50 9.7 % 71.9 % 3.5 % pts $ 128.65 4.4 %
Asia Pacific (excluding Greater China) 128 $ 161.13 10.9 % 75.2 % 3.5 % pts $ 214.17 5.8 %
Europe 102 $ 190.90 5.6 % 69.1 % 2.2 % pts $ 276.29 2.3 %
Middle East & Africa 41 $ 122.41 (14.5) % 56.5 % (11.2) % pts $ 216.72 2.5 %
(3) Consists of hotels that we manage, franchise, own, lease, or provide services to, excluding all-inclusive properties.
(4) In addition to the properties removed from comparable hotels during the three months ended June 30, 2026, we also removed the following properties from comparable hotels during the six months ended June 30, 2026: seven properties that left the hotel portfolio, three properties that were closed during the period, and one property that underwent a large-scale capital project.
RevPAR at our comparable system-wide hotels increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily driven by continued strength in leisure travel in the United States and Asia Pacific. RevPAR at our comparable system-wide hotels also benefited from strong ADR as well as strong group travel in the United States, in part due to the impact of the FIFA World Cup during the three months ended June 30, 2026. During the three and six months ended June 30, 2026, the Middle East & Africa was negatively impacted by geopolitical conflict in the Middle East.
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Three Months Ended June 30,
Number of comparable resorts (3) Net Package RevPAR Occupancy Net Package ADR
vs. 2025 vs. 2025
2026 (in reported $) 2026 vs. 2025 2026 (in reported $)
Comparable system-wide all-inclusive resorts (1) 109 $ 197.45 (1.2) % 72.8 % (2.1) % pts $ 271.25 1.7 %
Americas (excluding United States) 68 $ 217.39 (2.3) % 70.6 % (2.6) % pts $ 307.78 1.3 %
Europe (2) 41 $ 146.21 3.4 % 78.3 % (1.0) % pts $ 186.63 4.7 %
(1) Consists of all-inclusive properties that we manage, lease, or provide services to.
(2) Certain resorts operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(3) During the three months ended June 30, 2026, we removed the following properties from comparable resorts: two properties that underwent a large-scale capital project, one property for which comparable results are not available, and one property that was closed during the period.
Six Months Ended June 30,
Number of comparable resorts (6) Net Package RevPAR Occupancy Net Package ADR
vs. 2025 vs. 2025
2026 (in reported $) 2026 vs. 2025 2026 (in reported $)
Comparable system-wide all-inclusive resorts (4) 109 $ 237.40 3.5 % 77.5 % (0.8) % pts $ 306.34 4.7 %
Americas (excluding United States) 68 $ 262.75 2.8 % 77.0 % (0.7) % pts $ 341.04 3.7 %
Europe (5) 41 $ 155.21 8.2 % 78.9 % (1.4) % pts $ 196.60 10.1 %
(4) Consists of all-inclusive properties that we manage, lease, or provide services to.
(5) Certain resorts operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(6) In addition to the properties removed from comparable resorts during the three months ended June 30, 2026, we also removed two properties that were closed during the period from comparable resorts during the six months ended June 30, 2026.
Net Package RevPAR at our comparable all-inclusive resorts decreased during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to the impact of reduced demand for travel to certain destinations following security-related incidents in Mexico. Net Package RevPAR at our comparable all-inclusive resorts increased during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, as the impact from reduced demand for travel was more than offset by higher Net Package ADR in the first quarter of 2026.
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Three Months Ended June 30,
Number of comparable hotels (2) RevPAR Occupancy ADR
vs. 2025 vs. 2025
2026 (in constant $) 2026 vs. 2025 2026 (in constant $)
Comparable owned and leased hotels (1) 22 $ 251.40 8.8 % 75.6 % 0.7 % pts $ 332.65 7.8 %
(1) Excludes unconsolidated hospitality ventures and all-inclusive leased properties.
(2) During the three months ended June 30, 2026, no properties were removed from comparable hotels.
Six Months Ended June 30,
Number of comparable hotels (4) RevPAR Occupancy ADR
vs. 2025 vs. 2025
2026 (in constant $) 2026 vs. 2025 2026 (in constant $)
Comparable owned and leased hotels (3) 22 $ 228.29 6.8 % 71.9 % 0.8 % pts $ 317.36 5.6 %
(3) Excludes unconsolidated hospitality ventures and all-inclusive leased properties.
(4) During the six months ended June 30, 2026, no properties were removed from comparable hotels.
RevPAR at our comparable owned and leased hotels increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily driven by strong ADR as well as strong group and leisure transient demand.
Results of Operations
Three and Six Months Ended June 30, 2026 Compared with Three and Six Months Ended June 30, 2025
Consolidated Results
For additional information regarding our consolidated results, refer to our condensed consolidated statements of income (loss) included in this Quarterly Report.
Changes in the fair value of marketable securities held in rabbi trusts to fund our deferred compensation plans are driven by the market performance of the underlying invested assets. The changes in fair value were recognized in the following financial statement line items and had no impact on net income (loss):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Revenues for reimbursed costs $ 27 $ 15 $ 21 $ 9
General and administrative expenses (57) (30) (45) (18)
Owned and leased expenses (1) (1) (1) (1)
Reimbursed costs (27) (15) (21) (9)
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts 58 31 46 19
Impact to net income (loss) $ — $ — $ — $ —
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Fee revenues.
Three Months Ended June 30,
2026 2025 Better / (Worse)
Base management fees $ 124 $ 113 $ 11 10.2 %
Incentive management fees 64 62 2 2.6 %
Franchise and other fees 136 126 10 8.1 %
Gross fees 324 301 23 7.8 %
Contra revenue (17) (15) (2) (14.2) %
Net fees $ 307 $ 286 $ 21 7.4 %
Six Months Ended June 30,
2026 2025 Better / (Worse)
Base management fees $ 251 $ 227 $ 24 10.5 %
Incentive management fees 150 138 12 8.7 %
Franchise and other fees 256 243 13 5.7 %
Gross fees 657 608 49 8.2 %
Contra revenue (40) (35) (5) (14.6) %
Net fees $ 617 $ 573 $ 44 7.8 %
Base and incentive management fees increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily driven by new long-term management agreements with the third-party buyer of the Playa Hotels Portfolio. The increase in base management fees was also driven by strong leisure transient demand, most notably in the United States and Asia Pacific. Incentive management fees also benefited from improved hotel performance in Asia Pacific, partially offset by the impact of reduced demand for travel to certain destinations in the Americas (excluding United States), as well as the Middle East & Africa due to geopolitical conflict in the Middle East.
Franchise and other fees increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily driven by license fees, which benefited from our co-branded credit card programs, and franchise fees due to hotel performance in the United States, partially offset by franchise fees recognized in 2025 related to properties that are now subject to long-term management agreements with the third-party buyer of the Playa Hotels Portfolio.
Contra revenue increased during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to accelerated amortization of key money assets, partially offset by a payment made to a third-party owner and accrued performance cure payments in 2025.
Owned and leased revenues.
Three Months Ended June 30,
2026 2025 Better / (Worse) Currency Impact
Comparable owned and leased revenues $ 272 $ 246 $ 26 10.4 % $ 3
Non-comparable owned and leased revenues 2 58 (56) (96.8) % —
Owned and leased revenues $ 274 $ 304 $ (30) (9.9) % $ 3
Six Months Ended June 30,
2026 2025 Better / (Worse) Currency Impact
Comparable owned and leased revenues $ 491 $ 453 $ 38 8.3 % $ 9
Non-comparable owned and leased revenues 2 70 (68) (97.4) % 1
Owned and leased revenues $ 493 $ 523 $ (30) (5.8) % $ 10
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Comparable owned and leased revenues increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily driven by strong ADR and leisure transient demand.
Non-comparable owned and leased revenues decreased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, driven by the sale of the Playa Hotels Portfolio and the sale of the shares of the entities that own three Alua properties in the fourth quarter of 2025.
Distribution revenues. During the three and six months ended June 30, 2026, distribution revenues decreased $37 million and $78 million, respectively, compared to the three and six months ended June 30, 2025, driven by lower booking volumes, in part due to reduced travel demand to certain destinations in Mexico and Jamaica.
Other revenues. During the three and six months ended June 30, 2026, other revenues decreased $11 million and $22 million, respectively, compared to the three and six months ended June 30, 2025, driven by the integration of our co-branded credit card programs into the loyalty program in the fourth quarter of 2025.
Revenues for reimbursed costs.
Three Months Ended June 30,
2026 2025 Change
Revenues for reimbursed costs $ 1,023 $ 945 $ 78 8.3 %
Less: rabbi trust impact (1) (27) (15) (12) (78.5) %
Revenues for reimbursed costs, excluding rabbi trust impact $ 996 $ 930 $ 66 7.1 %
(1) Amounts offset with the rabbi trust impact in reimbursed costs.
Six Months Ended June 30,
2026 2025 Change
Revenues for reimbursed costs $ 1,968 $ 1,831 $ 137 7.5 %
Less: rabbi trust impact (2) (21) (9) (12) (126.3) %
Revenues for reimbursed costs, excluding rabbi trust impact $ 1,947 $ 1,822 $ 125 6.9 %
(2) Amounts offset with the rabbi trust impact in reimbursed costs.
Revenues for reimbursed costs increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily driven by higher reimbursements for payroll and related expenses at managed properties where we are the employer and an increase in reimbursed costs related to system-wide services provided to managed and franchised properties. The higher reimbursements for expenses were due to increased demand at our existing properties and portfolio growth.
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General and administrative expenses.
Three Months Ended June 30,
2026 2025 Change
General and administrative expenses $ 180 $ 152 $ 28 18.2 %
Less: rabbi trust impact (1) (57) (30) (27) (91.7) %
Less: stock-based compensation expense (16) (12) (4) (22.3) %
Adjusted general and administrative expenses (2) $ 107 $ 110 $ (3) (2.1) %
(1) Amounts offset with the rabbi trust impact in net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
(2) See "—Key Business Metrics Evaluated by Management" for further discussion.
Six Months Ended June 30,
2026 2025 Change
General and administrative expenses $ 310 $ 278 $ 32 11.6 %
Less: rabbi trust impact (3) (45) (18) (27) (145.7) %
Less: stock-based compensation expense (41) (41) — 0.1 %
Adjusted general and administrative expenses (4) $ 224 $ 219 $ 5 2.7 %
(3) Amounts offset with the rabbi trust impact in net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
(4) See "—Key Business Metrics Evaluated by Management" for further discussion.
General and administrative expenses increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily due to the market performance of the underlying investments in marketable securities held to fund our deferred compensation plans through rabbi trusts and payroll and related costs, which increased in part due to the Playa Hotels Acquisition. During the three months ended June 30, 2026, compared to the three months ended June 30, 2025, the increase was partially offset by the reversal of credit loss reserves on certain receivables.
Owned and leased expenses.
Three Months Ended June 30,
2026 2025 Better / (Worse)
Comparable owned and leased expenses $ 220 $ 201 $ (19) (10.0) %
Non-comparable owned and leased expenses 2 44 42 95.9 %
Rabbi trust impact (1) 1 1 — (30.4) %
Owned and leased expenses $ 223 $ 246 $ 23 8.8 %
(1) Amounts offset with the rabbi trust impact in net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Six Months Ended June 30,
2026 2025 Better / (Worse)
Comparable owned and leased expenses $ 419 $ 384 $ (35) (9.0) %
Non-comparable owned and leased expenses 3 55 52 95.5 %
Rabbi trust impact (2) 1 1 — (66.9) %
Owned and leased expenses $ 423 $ 440 $ 17 3.9 %
(2) Amounts offset with the rabbi trust impact in net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Comparable owned and leased expenses increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily due to increased variable expenses at certain hotels, most notably payroll and related costs.
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Non-comparable owned and leased expenses decreased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, driven by the sale of the Playa Hotels Portfolio and the sale of the shares of the entities that own three Alua properties in the fourth quarter of 2025.
Distribution expenses. During the three and six months ended June 30, 2026, distribution expenses decreased $21 million and $42 million, compared to the three and six months ended June 30, 2025, driven by lower booking volumes, in part due to reduced travel demand to certain destinations in Mexico and Jamaica, as well as cost reduction actions.
Other direct costs. During the three and six months ended June 30, 2026, other direct costs decreased $20 million and $44 million, respectively, compared to the three and six months ended June 30, 2025, driven by the integration of our co-branded credit card programs into the loyalty program in the fourth quarter of 2025.
Transaction and integration costs. During the three and six months ended June 30, 2026, transaction and integration costs decreased $74 million and $81 million, respectively, compared to the three and six months ended June 30, 2025, primarily due to transaction costs related to the Playa Hotels Acquisition.
Depreciation and amortization expenses. During the three and six months ended June 30, 2026, depreciation and amortization expenses decreased $9 million and $13 million, respectively, compared to the three and six months ended June 30, 2025, primarily driven by lower amortization expense due to certain fully amortized intangible assets and lower depreciation and amortization expenses as a result of the sale of the shares of the entities that own three Alua properties in the fourth quarter of 2025.
Reimbursed costs.
Three Months Ended June 30,
2026 2025 Change
Reimbursed costs $ 1,020 $ 949 $ 71 7.5 %
Less: rabbi trust impact (1) (27) (15) (12) (78.5) %
Reimbursed costs, excluding rabbi trust impact $ 993 $ 934 $ 59 6.4 %
(1) Amounts offset with the rabbi trust impact in revenues for reimbursed costs.
Six Months Ended June 30,
2026 2025 Change
Reimbursed costs $ 1,983 $ 1,851 $ 132 7.1 %
Less: rabbi trust impact (2) (21) (9) (12) (126.3) %
Reimbursed costs, excluding rabbi trust impact $ 1,962 $ 1,842 $ 120 6.5 %
(2) Amounts offset with the rabbi trust impact in revenues for reimbursed costs.
Reimbursed costs increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily driven by increased payroll and related expenses at managed properties where we are the employer and expenses related to system-wide services provided to managed and franchised properties. The higher expenses were due to increased demand at our existing properties and portfolio growth.
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Net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Three Months Ended June 30,
2026 2025 Better / (Worse)
Rabbi trust gains (losses) allocated to general and administrative expenses $ 57 $ 30 $ 27 91.7 %
Rabbi trust gains (losses) allocated to owned and leased expenses 1 1 — 30.4 %
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ 58 $ 31 $ 27 89.5 %
Six Months Ended June 30,
2026 2025 Better / (Worse)
Rabbi trust gains (losses) allocated to general and administrative expenses $ 45 $ 18 $ 27 145.7 %
Rabbi trust gains (losses) allocated to owned and leased expenses 1 1 — 66.9 %
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ 46 $ 19 $ 27 142.9 %
Equity earnings (losses) from unconsolidated hospitality ventures.
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 Better / (Worse) 2026 2025 Better / (Worse)
Distributions from unconsolidated hospitality ventures $ 8 $ 1 $ 7 $ 8 $ 1 $ 7
Hyatt's share of unconsolidated hospitality ventures' net gains (losses) excluding foreign currency — 6 (6) (12) — (12)
Impairment charges related to investments in unconsolidated hospitality ventures — (6) 6 — (7) 7
Other (1) 3 5 (2) 2 — 2
Equity earnings (losses) from unconsolidated hospitality ventures $ 11 $ 6 $ 5 $ (2) $ (6) $ 4
(1) The three and six months ended June 30, 2025 primarily includes equity earnings (losses) related to certain debt repayment guarantees.
Interest expense. During the three and six months ended June 30, 2026, interest expense decreased $10 million and $11 million, respectively, compared to the three and six months ended June 30, 2025, primarily driven by the repayment of the DDTL Loans, redemptions of certain of our senior notes, and bridge commitment fees related to the Playa Hotels Acquisition, partially offset by issuances of senior notes, all of which occurred in 2025. See Part I, Item 1, "Financial Statements—Note 10 to our Condensed Consolidated Financial Statements" for additional information.
Asset impairments. During the three and six months ended June 30, 2026, we recognized $5 million and $26 million, respectively, of impairment charges related to intangible assets. During the three months ended June 30, 2025, we recognized $10 million of impairment charges related to property and equipment, operating lease ROU assets, and intangible assets. During the six months ended June 30, 2025, we recognized an additional $4 million of impairment charges related to intangible assets. See Part I, Item 1, "Financial Statements—Note 5 and Note 8 to our Condensed Consolidated Financial Statements" for additional information.
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Other income (loss), net. During the three and six months ended June 30, 2026, other income (loss), net increased $24 million and $31 million, respectively, compared to the three and six months ended June 30, 2025. See Part I, Item 1, "Financial Statements—Note 19 to our Condensed Consolidated Financial Statements" for additional information.
Provision for income taxes.
Three Months Ended June 30,
2026 2025 Change
Income before income taxes $ 182 $ 38 $ 144 386.4 %
Provision for income taxes (73) (42) (31) (78.6) %
Effective tax rate 40.3 % 109.8 % (69.5) %
Six Months Ended June 30,
2026 2025 Change
Income before income taxes $ 239 $ 90 $ 149 167.8 %
Provision for income taxes (89) (70) (19) (27.5) %
Effective tax rate 37.2 % 78.1 % (40.9) %
Provision for income taxes increased and the effective tax rate decreased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily due to increased pre-tax income. See Part I, Item 1, "Financial Statements—Note 12 to our Condensed Consolidated Financial Statements" for additional information.
Segment Results
We manage our business within the following reportable segments: management and franchising, owned and leased, and distribution. We evaluate segment operating performance using segment revenues and Adjusted EBITDA. See Part I, Item 1, "Financial Statements—Note 17 to our Condensed Consolidated Financial Statements" for additional information, including a reconciliation of segment Adjusted EBITDA to income before income taxes.
Management and franchising segment.
Three Months Ended June 30,
2026 2025 Better / (Worse)
Gross fees (1) $ 334 $ 312 $ 22 7.3 %
Other revenues (1) — 11 (11) (100.0) %
Segment revenues (2) $ 334 $ 323 $ 11 3.6 %
(1) See "—Results of Operations" for further discussion regarding the increase in gross fee revenues and decrease in other revenues.
(2) Includes $10 million and $11 million of intersegment revenues for the three months ended June 30, 2026 and June 30, 2025, respectively.
Six Months Ended June 30,
2026 2025 Better / (Worse)
Gross fees (3) $ 676 $ 628 $ 48 7.8 %
Other revenues (3) — 22 (22) (100.0) %
Segment revenues (4) $ 676 $ 650 $ 26 4.2 %
(3) See "—Results of Operations" for further discussion regarding the increase in gross fee revenues and decrease in other revenues.
(4) Includes $19 million and $20 million of intersegment revenues for the six months ended June 30, 2026 and June 30, 2025, respectively.
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Three Months Ended June 30,
2026 2025 Better / (Worse)
Segment Adjusted EBITDA $ 266 $ 238 $ 28 11.6 %
Six Months Ended June 30,
2026 2025 Better / (Worse)
Segment Adjusted EBITDA $ 530 $ 474 $ 56 11.7 %
Adjusted EBITDA increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, driven by increases in gross fee revenues, partially offset by increased general and administrative expenses, primarily due to payroll and related costs, in part due to the Playa Hotels Acquisition. During the three months ended June 30, 2026, compared to the three months ended June 30, 2025, the increase in general and administrative expenses was partially offset by the reversal of credit loss reserves on certain receivables. Additionally, the results of our co-branded credit card programs recognized in other revenues and other direct costs prior to the integration into the loyalty program in the fourth quarter of 2025 negatively impacted Adjusted EBITDA during the three and six months ended June 30, 2025.
Owned and leased segment.
Three Months Ended June 30,
2026 2025 Better / (Worse) Currency Impact
Segment revenues (1), (2) $ 279 $ 309 $ (30) (9.9) % $ 3
(1) See "—Results of Operations" for further discussion regarding the decrease in owned and leased revenues.
(2) Includes $5 million of intersegment revenues for both the three months ended June 30, 2026 and June 30, 2025.
Six Months Ended June 30,
2026 2025 Better / (Worse) Currency Impact
Segment revenues (3), (4) $ 502 $ 532 $ (30) (5.8) % $ 10
(3) See "—Results of Operations" for further discussion regarding the decrease in owned and leased revenues.
(4) Includes $9 million of intersegment revenues for both the six months ended June 30, 2026 and June 30, 2025.
Three Months Ended June 30,
2026 2025 Better / (Worse)
Segment Adjusted EBITDA (1) $ 40 $ 47 $ (7) (17.9) %
(1) See "—Results of Operations" for further discussion regarding the decreases in owned and leased revenues and owned and leased expenses.
Six Months Ended June 30,
2026 2025 Better / (Worse)
Segment Adjusted EBITDA (2) $ 50 $ 62 $ (12) (20.0) %
(2) See "—Results of Operations" for further discussion regarding the decreases in owned and leased revenues and owned and leased expenses.
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Distribution segment.
Three Months Ended June 30,
2026 2025 Better / (Worse)
Segment revenues (1) $ 225 $ 262 $ (37) (14.0) %
(1) See "—Results of Operations" for further discussion regarding the decrease in distribution revenues.
Six Months Ended June 30,
2026 2025 Better / (Worse)
Segment revenues (2) $ 499 $ 577 $ (78) (13.4) %
(2) See "—Results of Operations" for further discussion regarding the decrease in distribution revenues.
Three Months Ended June 30,
2026 2025 Better / (Worse)
Segment Adjusted EBITDA (1) $ 27 $ 43 $ (16) (35.7) %
(1) See "—Results of Operations" for further discussion regarding the decreases in distribution revenues and distribution expenses.
Six Months Ended June 30,
2026 2025 Better / (Worse)
Segment Adjusted EBITDA (2) $ 56 $ 92 $ (36) (39.1) %
(2) See "—Results of Operations" for further discussion regarding the decreases in distribution revenues and distribution expenses.
Key Business Metrics Evaluated by Management
Adjusted Earnings Before Interest Expense, Taxes, Depreciation, and Amortization ("Adjusted EBITDA")
We use the term Adjusted EBITDA throughout this Quarterly Report. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus net income (loss) attributable to noncontrolling interests, adjusted to exclude the following items:
•payments to customers (contra revenue), including performance cure payments and amortization of management and hotel services agreement and franchise agreement assets (key money assets);
•revenues for reimbursed costs;
•reimbursed costs that we intend to recover over the long term;
•stock-based compensation expense;
•transaction and integration costs;
•depreciation and amortization;
•equity earnings (losses) from unconsolidated hospitality ventures;
•interest expense;
•gains (losses) on sales of real estate and other;
•asset impairments;
•other income (loss), net; and
•benefit (provision) for income taxes.
We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA of each of our reportable segments and eliminations to unallocated overhead expenses.
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Our board of directors and executive management team focus on Adjusted EBITDA as one of the key performance and compensation measures both on a segment and on a consolidated basis. Adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations both on a segment and on a consolidated basis. Our Chairman, President and Chief Executive Officer, who is our CODM, also evaluates the performance of each of our reportable segments and determines how to allocate resources to those segments, in part, by assessing the Adjusted EBITDA of each segment. In addition, the talent and compensation committee of our board of directors determines the annual variable compensation and long-term incentive compensation for certain members of our management based in part on financial measures including and/or derived from consolidated Adjusted EBITDA, segment Adjusted EBITDA, or some combination of both.
We believe Adjusted EBITDA is useful to investors because it provides investors with the same information that we use internally for purposes of assessing our operating performance and making compensation decisions and facilitates our comparison of results with our prior-period and forecasted results as well as our industry and competitors.
Adjusted EBITDA excludes certain items that can vary widely across different industries and among companies within the same industry, including interest expense and benefit or provision for income taxes, which are dependent on company specifics, including capital structure, credit ratings, tax policies, and jurisdictions in which they operate; depreciation and amortization, which are dependent on company policies including how the assets are utilized as well as the lives assigned to the assets; contra revenue, which is dependent on company policies and strategic decisions regarding payments to hotel owners; and stock-based compensation expense, which varies among companies as a result of different compensation plans companies have adopted.
We exclude revenues for reimbursed costs and reimbursed costs which relate to the reimbursement of payroll costs and system-wide services and programs that we operate for the benefit of our hotel owners as contractually we do not provide services or operate the related programs to generate a profit or bear a loss over the long term. If we collect amounts in excess of amounts spent, we have a commitment to our hotel owners to spend these amounts on the related system-wide services and programs. Additionally, if we spend in excess of amounts collected, we have a contractual right to adjust future collections or expenditures to recover prior-period costs. These timing differences are due to our discretion to spend in excess of revenues earned or less than revenues earned in a single period to ensure that the system-wide services and programs are operated in the best long-term interests of our hotel owners. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively, and instead are designed to result in a cumulative break-even balance. Therefore, we exclude the net impact when evaluating period-over-period changes in our operating results. Adjusted EBITDA includes reimbursed costs related to system-wide services and programs that we do not intend to recover from hotel owners.
Finally, we exclude other items that are not core to our operations and may vary in frequency or magnitude, such as transaction and integration costs, asset impairments, unrealized and realized gains and losses on marketable securities, and gains and losses on sales of real estate and other.
Adjusted EBITDA is not a substitute for net income (loss) attributable to Hyatt Hotels Corporation, net income (loss), or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income or loss generated by our business. Our management compensates for these limitations by referencing our GAAP results and using Adjusted EBITDA supplementally. See our condensed consolidated statements of income (loss) in our condensed consolidated financial statements included elsewhere in this Quarterly Report.
See below for a reconciliation of net income (loss) attributable to Hyatt Hotels Corporation to Adjusted EBITDA.
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Adjusted General and Administrative Expenses
Adjusted general and administrative expenses, as we define it, is a non-GAAP measure. Adjusted general and administrative expenses excludes the impact of deferred compensation plans funded through rabbi trusts and stock-based compensation expense. Adjusted general and administrative expenses assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis. See "—Results of Operations" for a reconciliation of general and administrative expenses to Adjusted general and administrative expenses.
ADR and Net Package ADR
ADR represents hotel room revenues divided by the total number of rooms sold in a given period. Net Package ADR represents net package revenues divided by the total number of rooms sold in a given period. Net package revenues generally include revenue derived from the sale of packages at all-inclusive resorts comprised of rooms, food and beverage, and entertainment revenues, net of compulsory tips paid to employees. ADR and Net Package ADR measure the average room price attained by a property, and trends in these metrics provide useful information concerning the pricing environment and the nature of the customer base of a property or group of properties. ADR and Net Package ADR are commonly used performance measures in our industry, and we use these metrics to assess the pricing levels that we are able to generate by a customer group, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described in "—RevPAR and Net Package RevPAR" below.
Comparable system-wide and Comparable owned and leased
"Comparable system-wide" represents all properties we manage, franchise, or provide services to, including owned and leased properties, that are operated for the entirety of the periods being compared and have not experienced business interruption or undergone large-scale capital projects during the periods being compared. Comparable system-wide also excludes properties for which comparable results are not available. We may use variations of comparable system-wide to specifically refer to comparable system-wide hotels or our all-inclusive resorts, for those properties that we manage, franchise, or provide services to within our management and franchising segment. "Comparable owned and leased" represents owned or leased hotels and/or all-inclusive resorts that are operated and consolidated for the entirety of the periods being compared and have not experienced business interruption or undergone large-scale capital projects during the periods being compared. Comparable owned and leased also excludes properties for which comparable results are not available. Comparable system-wide and comparable owned and leased are commonly used as a basis of measurement in our industry. "Non-comparable system-wide" or "non-comparable owned and leased" represent all properties, including those that do not meet the above definition of "comparable."
Constant Dollar Currency
We report the results of our operations both on an as reported basis, as well as on a constant dollar basis. Constant Dollar Currency, which is a non-GAAP measure, excludes the effects of movements in foreign currency exchange rates between comparative periods. We believe constant dollar analysis provides valuable information regarding our results as it removes currency fluctuations from our operating results. We calculate Constant Dollar Currency by restating prior-period local currency financial results at current-period exchange rates. These restated amounts are then compared to our current-period reported amounts to provide operationally driven variances in our results.
Occupancy
Occupancy represents the total number of rooms sold divided by the total number of rooms available at a property or group of properties. Occupancy measures the utilization of a property's available capacity. We use occupancy to gauge demand at a specific property or group of properties in a given period. Occupancy levels also help us determine achievable ADR levels as demand for property rooms increases or decreases.
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RevPAR and Net Package RevPAR
RevPAR is the product of ADR and the average daily occupancy percentage and excludes non-room revenues, which consist of ancillary revenues generated by a property, such as food and beverage, parking, and other guest service revenues. Net Package RevPAR is the product of Net Package ADR and the average daily occupancy percentage and generally includes revenue derived from the sale of packages at all-inclusive resorts comprised of rooms, food and beverage, and entertainment revenues, net of compulsory tips paid to employees. RevPAR and Net Package RevPAR are commonly used performance measures in our industry, and we use these metrics to identify trend information with respect to room revenues from comparable properties and to evaluate property performance on a geographical and segment basis.
Changes in RevPAR and Net Package RevPAR that are driven predominantly by changes in occupancy have different implications for overall revenue levels and incremental profitability than do changes that are driven predominantly by changes in average room rates. For example, increases in occupancy at a property would lead to increases in room revenues or net package revenues, as applicable, and additional variable operating costs, including housekeeping services, utilities, and room amenity costs. Increases in occupancy at properties measured using RevPAR could also result in increased ancillary revenues, such as food and beverage. In contrast, changes in average room rates typically have a greater impact on margins and profitability as average room rate changes result in minimal direct impacts to variable operating costs.
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The tables below provide a reconciliation of net income (loss) attributable to Hyatt Hotels Corporation to Adjusted EBITDA:
Three Months Ended June 30,
2026 2025 Change
Net income (loss) attributable to Hyatt Hotels Corporation $ 110 $ (3) $ 113 NM
Contra revenue 17 15 2 14.2 %
Revenues for reimbursed costs (1,023) (945) (78) (8.3) %
Reimbursed costs 1,020 949 71 7.5 %
Stock-based compensation expense (1) 17 14 3 9.9 %
Transaction and integration costs 8 82 (74) (90.2) %
Depreciation and amortization 73 82 (9) (10.7) %
Equity (earnings) losses from unconsolidated hospitality ventures (11) (6) (5) (70.8) %
Interest expense 64 74 (10) (13.6) %
(Gains) losses on sales of real estate and other (2) 2 (4) (240.2) %
Asset impairments 5 10 (5) (52.7) %
Other (income) loss, net (53) (29) (24) (85.8) %
Provision for income taxes 73 42 31 78.6 %
Net loss attributable to noncontrolling interests (1) (1) — (1.1) %
Adjusted EBITDA $ 297 $ 286 $ 11 3.4 %
(1) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs.
Six Months Ended June 30,
2026 2025 Change
Net income attributable to Hyatt Hotels Corporation $ 148 $ 17 $ 131 802.4 %
Contra revenue 40 35 5 14.6 %
Revenues for reimbursed costs (1,968) (1,831) (137) (7.5) %
Reimbursed costs 1,983 1,851 132 7.1 %
Stock-based compensation expense (2) 44 45 (1) (3.8) %
Transaction and integration costs 24 105 (81) (76.6) %
Depreciation and amortization 149 162 (13) (8.2) %
Equity (earnings) losses from unconsolidated hospitality ventures 2 6 (4) (58.3) %
Interest expense 129 140 (11) (8.0) %
(Gains) losses on sales of real estate and other (2) 2 (4) (174.4) %
Asset impairments 26 14 12 78.6 %
Other (income) loss, net (103) (72) (31) (45.8) %
Provision for income taxes 89 70 19 27.5 %
Net income attributable to noncontrolling interests 2 3 (1) (40.1) %
Adjusted EBITDA $ 563 $ 547 $ 16 2.8 %
(2) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs.
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Liquidity and Capital Resources
Overview
We finance our business primarily with existing cash, short-term investments, and cash generated from our operations. As part of our long-term business strategy, we use net proceeds from dispositions and certain investments to pay down debt as necessary to maintain our investment-grade profile; support new investment opportunities, including acquisitions; and return capital to our stockholders, when appropriate. We may also borrow cash under our revolving credit facility or from other third-party sources and raise funds by issuing debt or equity securities. We maintain a cash investment policy that emphasizes the preservation of capital.
At June 30, 2026, we had $2,103 million of total liquidity, including $606 million of cash, cash equivalents, and short-term investments and $1,497 million of availability under our revolving credit facility, net of letters of credit outstanding.
We believe that our cash position, short-term investments, cash from operations, borrowing capacity under our revolving credit facility, and access to the capital markets will be adequate to meet all of our funding requirements and capital deployment objectives in both the short term and long term.
Sources and Uses of Cash
Six Months Ended June 30,
2026 2025 Change
Net cash provided by operating activities $ 150 $ 86 $ 64
Net cash used in investing activities (173) (1,120) 947
Net cash provided by (used in) financing activities (228) 936 (1,164)
Cash flows from operating activities. During the six months ended June 30, 2026, cash flows from operating activities increased, compared to the six months ended June 30, 2025, primarily due to decreases in cash paid for transaction costs related to the Playa Hotels Acquisition and cash paid for income taxes.
Cash flows from investing activities. During the six months ended June 30, 2026, cash flows from investing activities increased, compared to the six months ended June 30, 2025, primarily due to the Playa Hotels Acquisition, partially offset by a decrease in net proceeds from the sale of marketable securities and short-term investments.
Cash flows from financing activities. During the six months ended June 30, 2026, cash flows from financing activities decreased, compared to the six months ended June 30, 2025, primarily due to proceeds from the DDTL Loans, 2028 Notes, and 2032 Notes, which were used to finance the Playa Hotels Acquisition, partially offset by the repayments of Playa Hotels' term loan and the 2025 Notes.
Capital Expenditures
We routinely make capital expenditures to enhance our business primarily through renovations at our owned properties, investments in technology, and other capital projects. We have been, and will continue to be, disciplined with respect to our capital spending, taking into account our cash flows from operations.
Six Months Ended June 30,
2026 2025
Total capital expenditures $ 45 $ 74
Less: capital expenditures related to the Playa Hotels Portfolio — (5)
Capital expenditures, net of amounts related to the Playa Hotels Portfolio $ 45 $ 69
During the six months ended June 30, 2026, capital expenditures, net of amounts related to the Playa Hotels Portfolio, decreased, compared to the six months ended June 30, 2025, primarily driven by lower investments in technology and renovation spend.
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Sources of Liquidity
At June 30, 2026, we had $4.3 billion of total debt outstanding, of which $605 million is due in the short term. Interest on our Senior Notes is payable semi-annually. Our total debt, excluding finance lease obligations, unamortized discounts, and unamortized deferred financing fees, had a weighted-average interest rate of 5.3% and a weighted-average maturity of approximately four years. At June 30, 2026, we were in compliance with all applicable covenants under the indenture governing our Senior Notes.
Our revolving credit facility is intended to provide financing for working capital and general corporate purposes, including commercial paper backup and permitted investments and acquisitions. At June 30, 2026, we had no balance outstanding, and we were in compliance with all applicable covenants under our revolving credit facility.
We issue letters of credit either under our revolving credit facility or directly with financial institutions. At June 30, 2026, we had $111 million in letters of credit issued directly with financial institutions outstanding. These letters of credit mature on various dates through 2027 and had weighted-average fees of approximately 92 basis points.
See Part I, Item 1, "Financial Statements—Note 10 and Note 13 to our Condensed Consolidated Financial Statements" for additional information.
Capital Return to Stockholders
During the three and six months ended June 30, 2026, we returned $26 million and $175 million, respectively, of capital to our stockholders through $12 million and $147 million of share repurchases, respectively, and $14 million and $28 million of dividend payments, respectively. At June 30, 2026, we had $1,531 million remaining under the share repurchase program. See Part I, Item 1, "Financial Statements—Note 14 to our Condensed Consolidated Financial Statements" for additional information.
Critical Accounting Policies and Estimates
Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures in our condensed consolidated financial statements and accompanying Notes. We have disclosed those estimates that we believe are critical and require complex judgment in their application in our 2025 Form 10-K. At June 30, 2026, there have been no material changes to our critical accounting policies or the methodologies or assumptions we apply under them as previously disclosed in Item 7 to Part II of our 2025 Form 10-K.