Hospitality company Hyatt Hotels (NYSE:H) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 9.6% year on year to $1.79 billion. Its non-GAAP loss of $0.30 per share was significantly below analysts’ consensus estimates.
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Hyatt Hotels (H) Q3 CY2025 Highlights:
- Revenue: $1.79 billion vs analyst estimates of $1.82 billion (9.6% year-on-year growth, 1.7% miss)
- Adjusted EPS: -$0.30 vs analyst estimates of $0.49 (significant miss)
- Adjusted EBITDA: $291 million vs analyst estimates of $282.1 million (16.3% margin, 3.2% beat)
- EBITDA guidance for the full year is $1.1 billion at the midpoint, below analyst estimates of $1.16 billion
- Operating Margin: 5.5%, in line with the same quarter last year
- RevPAR: $146.24 at quarter end, in line with the same quarter last year
- Market Capitalization: $13.18 billion
Company Overview
Founded in 1957, Hyatt Hotels (NYSE:H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Hyatt Hotels’s 18.8% annualized revenue growth over the last five years was solid. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Hyatt Hotels’s recent performance shows its demand has slowed as its annualized revenue growth of 2.4% over the last two years was below its five-year trend. 
We can dig further into the company’s revenue dynamics by analyzing its revenue per available room, which clocked in at $146.24 this quarter and is a key metric accounting for daily rates and occupancy levels. Over the last two years, Hyatt Hotels’s revenue per room averaged 2.1% year-on-year growth. This number doesn’t surprise us as it’s in line with its revenue growth. 
This quarter, Hyatt Hotels’s revenue grew by 9.6% year on year to $1.79 billion, missing Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 8.2% over the next 12 months. While this projection suggests its newer products and services will catalyze better top-line performance, it is still below the sector average.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Hyatt Hotels’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 4.8% over the last two years. This profitability was lousy for a consumer discretionary business and caused by its suboptimal cost structure.
This quarter, Hyatt Hotels generated an operating margin profit margin of 5.5%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Hyatt Hotels’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q3, Hyatt Hotels reported adjusted EPS of negative $0.30, down from $0.94 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Hyatt Hotels’s full-year EPS of $1.26 to grow 179%.
Key Takeaways from Hyatt Hotels’s Q3 Results
It was encouraging to see Hyatt Hotels beat analysts’ EBITDA expectations this quarter. On the other hand, its EPS missed and its full-year EBITDA guidance fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded up 3.7% to $143 immediately after reporting.
Is Hyatt Hotels an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.