Hyatt Hotels : Q1 2026 Non-GAAP Reconciliation

Published: 2026-04-30 11:21:16 ET H

Published on 04/30/2026 at 11:21 am EDT

‌Table of Contents

Reconciliation of Non-GAAP Financial Measures (unaudited)

Schedule

Page

Reconciliations of Net Income Attributable to Hyatt Hotels Corporation to Adjusted EBITDA

A - 2

G&A Expenses to Adjusted G&A Expenses

A - 3

Special Items

A - 4

2025 Reconciliation of Non-GAAP Financial Measures

A - 5

Outlook: Reconciliations of Non-GAAP Financial Measures

A - 7

Percentages on the following schedules may not recompute due to rounding. Not meaningful percentage changes are presented as "NM".

‌Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Income Attributable to Hyatt Hotels Corporation to Adjusted EBITDA‌

(in millions)

2026

2025

Net income attributable to Hyatt Hotels Corporation

$ 38

$ 20

Contra revenue

Revenues for reimbursed costs

(945)

(886)

Reimbursed costs

963

902

Stock-based compensation expense (a)

Transaction and integration costs

Depreciation and amortization

Equity (earnings) losses from unconsolidated hospitality ventures

Interest expense

Asset impairments

Other (income) loss, net

(50)

(43)

Provision for income taxes

Net income attributable to noncontrolling interests

Includes amounts recognized in general and administrative expenses and distribution expenses; excludes amounts recognized in transaction and integration costs.

During the three months ended March 31, 2026, the Company revised its definition of Adjusted EBITDA to no longer include its pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA and recast prior-period results to provide comparability. Refer to page A-13 for an explanation of how the Company utilizes Adjusted EBITDA, why the Company presents it, and material limitations on its usefulness.

The table below provides a breakdown for Adjusted EBITDA:

(in millions)

2026

2025

Management and franchising

$ 264

$ 236

Owned and leased

Distribution

Overhead

(37)

(40)

Eliminations

Results for the three months ended March 31, 2025 have been recast for comparability as a result of the Company's revised definition of Adjusted EBITDA.

‌Reconciliation of Non-GAAP Financial Measure: G&A Expenses to Adjusted G&A Expenses

Results of operations as presented on the condensed consolidated statements of income include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in G&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no impact to net income. G&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this measure excluding the impact of our rabbi trust investments and stock-based compensation expense.

(in millions)

2026

2025

G&A expenses

$ 130

$ 126

Less: Rabbi trust impact

Less: Stock-based compensation expense

(25)

(29)

‌Reconciliation of Non-GAAP Financial Measures: Net Income Attributable to Hyatt Hotels Corporation and Diluted Earnings Per Class A and Class B Share to Adjusted Net Income Attributable to Hyatt Hotels Corporation and Adjusted Diluted Earnings Per Class A and Class B Share

(in millions, except per share amounts)

2026

2025

Net income attributable to Hyatt Hotels Corporation

$ 38

$ 20

Diluted earnings per share

$ 0.40

$ 0.19

Special items:

Asset impairments

Transaction and integration costs

Fund deficits (a)

Utilization of Avendra and other proceeds (b)

Restructuring costs (c)

(Gains) losses, net on marketable securities (c)

(10)

Contingent consideration liabilities fair value adjustments (c)

(31)

(5)

Other

Special items - pre-tax

Income tax provision for special items

(7)

(11)

Total special items - after-tax

$ 23

$ 26

Special items impact per diluted share

$ 0.23

$ 0.27

Represents net deficits recognized that we intend to recover in future periods on certain funds due to the timing of revenue and expense recognition. During the three months ended March 31, 2026 (Q1 2026) and March 31, 2025 (Q1 2025), this fund activity was recognized in revenues for reimbursed costs ($222 million and $201 million, respectively), reimbursed costs ($236 million and $213 million, respectively), depreciation and amortization expenses ($4 million and $5 million, respectively), and other income (loss), net ($7 million and $5 million, respectively). These figures exclude revenues and expenses related to payroll at managed properties where we are the employer and other expenses, which were recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income but are not considered part of our fund activity.

During Q1 2026 and Q1 2025, we recognized expenses related to the partial utilization of the Avendra LLC sale proceeds for the benefit of our hotels in reimbursed costs ($4 million and $4 million, respectively) and depreciation and amortization expenses ($1 million and $1 million, respectively) on our condensed consolidated statements of income. The gain recognized in conjunction with the sale of Avendra LLC was included as a special item during the year ended December 31, 2017.

Amounts were recognized in other income (loss), net on our condensed consolidated statements of income.

‌2025 Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Income (Loss) Attributable to Hyatt Hotels Corporation to Adjusted EBITDA; and 2025 Adjusted EBITDA As Reported to 2025 Adjusted EBITDA Baseline After Adjusting for Asset Sales‌

(in millions) Fiscal Year 2025

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

Net income (loss) attributable to Hyatt Hotels Corporation

$ 20

$ (3)

$ (49)

$ (20)

$ (52)

Contra revenue

Revenues for reimbursed costs

(886)

(945)

(903)

(895)

(3,629)

Reimbursed costs

902

949

905

926

3,682

Stock-based compensation expense (a)

Transaction and integration costs

173

Depreciation and amortization

325

Equity (earnings) losses from unconsolidated hospitality ventures

(6)

Interest expense

317

(Gains) losses on sales of real estate and other

Asset impairments

Other (income) loss, net

(43)

(29)

(33)

(101)

Provision for income taxes

130

Net income (loss) attributable to noncontrolling interests

(1)

Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs.

(in millions) Fiscal Year 2025

2025 Adjusted EBITDA As Reported (c)

$ 273

$ 303

$ 291

$ 292

$ 1,159

Less: Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA

(12)

(17)

(13)

(14)

(56)

2025 Adjusted EBITDA As Recast (d)

$ 261

$ 286

$ 278

$ 1,103

Adjustment to owned and leased segment Adjusted EBITDA from sold assets (e)

(2)

(3)

(5)

Adjustment to owned and leased segment Adjusted EBITDA from sold Playa

assets (f)

(14)

(27)

(32)

(73)

Total adjustment to owned and leased segment Adjusted EBITDA from sold assets

(2)

(14)

(30)

(32)

(78)

2025 Adjusted EBITDA Baseline

$ 259

$ 272

$ 248

$ 246

$ 1,025

As reported in the Company's most recent public filing in which each period was presented.

Represents the owned and leased segment Adjusted EBITDA contribution in each period for hotels that have been sold as of March 31, 2026 and for which the company entered into long-term management or franchise agreements upon sale; excludes gross fee revenues retained following the sale. Refer to page A-11 for further details.

Represents the owned and leased segment Adjusted EBITDA contribution in each period for hotels acquired as part of the Playa Hotels Acquisition that were sold as part of the Playa Real Estate Transaction; excludes gross fee revenues retained following the sale. Refer to page A-11 for further details.

2025 Reconciliation of Non-GAAP Financial Measures: G&A Expenses to Adjusted G&A Expenses and Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow

Results of operations as presented on the consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in G&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no impact to net income (loss). G&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this measure excluding the impact of our rabbi trust investments and stock-based compensation expense.

(in millions)

Year Ended December 31,

2025

G&A expenses

$ 555

Less: Rabbi trust impact

(48)

Less: Stock-based compensation expense

(62)

Adjusted G&A Expenses

$ 445

(in millions) Year Ended December 31,

2025

Net cash provided by operating activities

379

Capital expenditures

(220)

Free Cash Flow

159

Cash taxes on asset sales

117

Costs associated with the Playa Hotels Acquisition (a)

198

Adjusted Free Cash Flow

474

Includes cash paid for transaction and integration costs, interest on the delayed draw term loan facility, and other costs associated with the acquisition.

‌Reconciliation of Non-GAAP Financial Measures: Outlook: Net Income Attributable to Hyatt Hotels Corporation to Adjusted EBITDA; G&A Expenses to Adjusted G&A Expenses; and Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow‌

No additional disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2026 outlook. The Company's 2026 outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that the Company will achieve these results. Results of operations as presented on the condensed consolidated statements of income include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in G&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no impact to net income. G&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this forecasted measure excluding the impact of our rabbi trust investments and forecasted stock-based compensation expense.

(in millions)

Low Case

High Case

Net income attributable to Hyatt Hotels Corporation

$ 255

$ 350

Contra revenue

Reimbursed costs, net (a)

110

Stock-based compensation expense (b)

Transaction and integration costs

Depreciation and amortization

310

Equity (earnings) losses from unconsolidated hospitality ventures

Interest expense

260

Asset impairments

Other (income) loss, net

(125)

(145)

Provision for income taxes

130

150

Net income attributable to noncontrolling interests

Adjusted EBITDA

$ 1,155

$ 1,205

Reimbursed costs are presented net of revenues for reimbursed costs as the Company cannot forecast the gross amounts without unreasonable effort.

Includes amounts recognized in general and administrative expenses and distribution expenses; excludes amounts recognized in transaction and integration costs.

Low Case

High Case

G&A expenses

$ 490

$ 500

Less: Rabbi trust impact

Less: Stock-based compensation expense

(62)

Adjusted G&A Expenses

$ 440

$ 450

Low Case

High Case

Net cash provided by operating activities

$ 628

$ 678

Capital expenditures

(135)

Free Cash Flow

$ 493

$ 543

Cash taxes on asset sales

Costs associated with the Playa Hotels Acquisition (c)

Adjusted Free Cash Flow

$ 580

$ 630

Disclaimer

Hyatt Hotels Corporation published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 15:20 UTC.