Hyatt’s gross margin has experienced significant contraction, falling from 46.5% in 2024Q4 to 10.1% by 2026Q1, indicating challenges in maintaining pricing power during its rapid portfolio expansion.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Sales/Revenue | 6.22B | 7.15B | 3.3B | 3.61B | 3.27B | 1.45B | 780M | 2.56B | 2.5B | 2.7B | 2.53B | 2.54B | 2.71B | 2.56B | 2.41B | 3.7B | 3.53B | 3.33B | 3.84B | 3.74B |
| Revenue Growth % | 93.56% | 116.96% | -8.67% | 10.33% | 126.37% | 85.26% | -69.52% | 2.44% | -7.48% | 6.55% | -0.31% | -6.13% | 5.7% | 6.48% | -34.94% | 4.85% | 5.85% | -13.16% | 2.65% | - |
| Cost of Goods Sold | 5.13B | 6.35B | 1.89B | 2.22B | 1.97B | 964M | 692M | 1.56B | 1.49B | 1.7B | 1.61B | 1.59B | 1.73B | 1.66B | 1.58B | 2.96B | 3.14B | 3.02B | 3.18B | 3.06B |
| COGS % of Revenue | - | 88.8% | 57.46% | 61.43% | 60.26% | 66.71% | 88.72% | 60.84% | 59.81% | 62.78% | 63.69% | 62.59% | 63.74% | 64.83% | 65.59% | 79.96% | 89.11% | 90.73% | 82.96% | 81.89% |
| Gross Profit | 1.1B | 801M | 1.4B | 1.39B | 1.3B | 481M | 88M | 1B | 1B | 1B | 920M | 951M | 982M | 901M | 828M | 436M | 384M | 309M | 654M | 677M |
| Gross Margin % | 17.61% | 11.2% | 42.54% | 38.57% | 39.74% | 33.29% | 11.28% | 39.16% | 40.19% | 37.22% | 36.31% | 37.41% | 36.26% | 35.17% | 34.41% | 11.79% | 10.89% | 9.27% | 17.04% | 18.11% |
| Gross Profit Growth % | - | -42.87% | 0.72% | 7.08% | 170.27% | 446.59% | -91.22% | -0.2% | -0.1% | 9.24% | -3.26% | -3.16% | 8.99% | 8.82% | 89.91% | 13.54% | 24.27% | -52.75% | -3.4% | - |
| Operating Expenses | 526M | 240M | 548M | 578M | 435M | 366M | 321M | 417M | 320M | 377M | 315M | 308M | 327M | 323M | 686M | 741M | 276M | 579M | 903M | 891M |
| OpEx % of Revenue | - | 3.36% | 16.63% | 16.02% | 13.3% | 25.33% | 41.15% | 16.3% | 12.81% | 13.96% | 12.43% | 12.12% | 12.08% | 12.61% | 28.51% | 20.04% | 7.83% | 17.38% | 23.53% | 23.84% |
| Selling, General & Admin | 429M | 555M | 548M | 578M | 435M | 366M | 321M | 417M | 320M | 377M | 315M | 308M | 327M | 323M | 316M | 283M | 276M | 261M | 290M | 292M |
| SG&A % of Revenue | - | 7.76% | 16.63% | 16.02% | 13.3% | 25.33% | 41.15% | 16.3% | 12.81% | 13.96% | 12.43% | 12.12% | 12.08% | 12.61% | 13.13% | 7.65% | 7.83% | 7.83% | 7.56% | 7.81% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | -315M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 458M | 0 | 318M | 613M | 599M |
| Operating Income | 570M | 561M | 854M | 814M | 865M | 115M | -233M | 585M | 684M | 628M | 605M | 643M | 655M | 578M | 166M | 153M | 108M | 48M | 364M | 385M |
| Operating Margin % | 9.16% | 7.85% | 25.91% | 22.55% | 26.44% | 7.96% | -29.87% | 22.86% | 27.38% | 23.26% | 23.88% | 25.3% | 24.19% | 22.56% | 6.9% | 4.14% | 3.06% | 1.44% | 9.49% | 10.3% |
| Operating Income Growth % | - | -34.31% | 4.91% | -5.9% | 652.17% | 149.36% | -139.83% | -14.47% | 8.92% | 3.8% | -5.91% | -1.83% | 13.32% | 248.19% | 8.5% | 41.67% | 125% | -86.81% | -5.45% | - |
| EBITDA | 899M | 886M | 1.19B | 1.21B | 1.29B | 425M | 77M | 914M | 1.01B | 976M | 947M | 963M | 1.01B | 923M | 519M | 458M | 387M | 318M | 613M | 599M |
| EBITDA Margin % | 14.44% | 12.39% | 36.01% | 33.55% | 39.47% | 29.41% | 9.87% | 35.72% | 40.47% | 36.15% | 37.37% | 37.88% | 37.26% | 36.03% | 21.57% | 12.39% | 10.97% | 9.54% | 15.98% | 16.02% |
| EBITDA Growth % | -26.49% | -25.36% | -1.98% | -6.2% | 203.76% | 451.95% | -91.58% | -9.59% | 3.59% | 3.06% | -1.66% | -4.56% | 9.32% | 77.84% | 13.32% | 18.35% | 21.7% | -48.12% | 2.34% | - |
| D&A (Non-Cash Add-back) | 329M | 325M | 333M | 397M | 426M | 310M | 310M | 329M | 327M | 348M | 342M | 320M | 354M | 345M | 353M | 305M | 279M | 270M | 249M | 214M |
| EBIT | 403M | 395M | 416M | 331M | 427M | -251M | -632M | 197M | 332M | 260M | 268M | 323M | 301M | 233M | 166M | 153M | 108M | 48M | 364M | 385M |
| Net Interest Income | -214M | -177M | 123M | 74M | 44M | 28M | 30M | 25M | 28M | 110M | 19M | 8M | 12M | 101M | 23M | 23M | 21M | 21M | 23.1M | 42.9M |
| Interest Income | 102M | 137M | 123M | 74M | 44M | 28M | 30M | 25M | 28M | 110M | 19M | 8M | 12M | 101M | 23M | 23M | 21M | 21M | 23.1M | 42.9M |
| Interest Expense | 316M | 314M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -484M | -480M | 709M | -504M | -502M | -71M | -727M | 421M | 267M | 94M | -323M | -449M | -130M | -257M | -71M | -70M | -20M | -103M | -160M | 89M |
| Pretax Income | 86M | 81M | 1.56B | 310M | 363M | 44M | -960M | 1.01B | 951M | 722M | 289M | 194M | 525M | 321M | 95M | 83M | 88M | -55M | 204M | 474M |
| Pretax Margin % | 1.38% | 1.13% | 47.42% | 8.59% | 11.1% | 3.04% | -123.08% | 39.31% | 38.07% | 26.74% | 11.4% | 7.63% | 19.39% | 12.53% | 3.95% | 2.24% | 2.5% | -1.65% | 5.32% | 12.68% |
| Income Tax | 118M | 130M | 267M | 90M | -92M | 266M | -257M | 240M | 182M | 332M | 85M | 70M | 179M | 116M | 8M | -28M | 37M | -10M | 90M | 208M |
| Effective Tax Rate % | 137.21% | 160.49% | 17.08% | 29.03% | -25.34% | 604.55% | 26.77% | 23.86% | 19.14% | 45.98% | 29.41% | 36.08% | 34.1% | 36.14% | 8.42% | -33.73% | 42.05% | 18.18% | 44.12% | 43.88% |
| Net Income | -34M | -52M | 1.3B | 220M | 455M | -222M | -703M | 766M | 769M | 249M | 204M | 124M | 344M | 207M | 88M | 113M | 66M | -43M | 170M | 271M |
| Net Margin % | -0.55% | -0.73% | 39.32% | 6.1% | 13.91% | -15.36% | -90.13% | 29.93% | 30.78% | 9.22% | 8.05% | 4.88% | 12.7% | 8.08% | 3.66% | 3.06% | 1.87% | -1.29% | 4.43% | 7.25% |
| Net Income Growth % | -104.28% | -104.01% | 489.09% | -51.65% | 304.95% | 68.42% | -191.78% | -0.39% | 208.84% | 22.06% | 64.52% | -63.95% | 66.18% | 135.23% | -22.12% | 71.21% | 253.49% | -125.29% | -37.27% | - |
| Net Income (Continuing) | -32M | -49M | 1.3B | 220M | 455M | -222M | -703M | 766M | 769M | 390M | 204M | 124M | 346M | 205M | 87M | 111M | 51M | -45M | 114M | 266M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 323M | 325M | 279M | 3M | 3M | 3M | 3M | 5M | 7M | 16M | 5M | 4M | 4M | 8M | 10M | 10M | 13M | 24M | 28M | 35M |
| EPS (Diluted) | -0.35 | -0.54 | 12.65 | 2.04 | 4.09 | -2.14 | -6.94 | 7.21 | 6.68 | 3.08 | 1.53 | 0.86 | 2.23 | 1.30 | 0.53 | 0.67 | 0.38 | -0.28 | 1.31 | 2.01 |
| EPS Growth % | -104.69% | -104.27% | 520.1% | -50.12% | 291.12% | 69.16% | -196.26% | 7.93% | 116.88% | 101.31% | 77.91% | -61.43% | 71.54% | 145.28% | -20.9% | 76.32% | 235.71% | -121.37% | -34.83% | - |
| EPS (Basic) | - | -0.54 | 12.99 | 2.10 | 4.17 | -2.14 | -6.94 | 7.32 | 6.79 | 3.12 | 1.55 | 0.87 | 2.25 | 1.30 | 0.53 | 0.67 | 0.38 | -0.28 | 1.31 | 2.01 |
| Diluted Shares Outstanding | 96.9M | 95.5M | 102.42M | 107.73M | 111.26M | 103.97M | 101.33M | 106.29M | 115.13M | 126.35M | 133.94M | 144M | 154.35M | 159.19M | 165.38M | 169.24M | 174.35M | 153.57M | 128.06M | 134.63M |
| Basic Shares Outstanding | 94.5M | 95.5M | 99.79M | 104.86M | 109.09M | 103.97M | 101.33M | 104.59M | 113.26M | 124.84M | 132.93M | 142.81M | 153.14M | 158.54M | 165.02M | 168.76M | 174.12M | 153.57M | 128.04M | 134.59M |
| Dividend Payout Ratio | - | - | 4.63% | 21.36% | - | - | - | 10.44% | 8.84% | - | - | - | - | - | - | - | - | - | 1.18% | 0.37% |
Margin Compression and Integration
As reported in recent financial statements, Hyatt’s revenue growth has exhibited extreme volatility, peaking at 136.3% in 2025Q4 before moderating, suggesting that the company's top-line trajectory is heavily influenced by inorganic contributions and post-pandemic recovery cycles rather than consistent, organic expansion across its global hotel portfolio.
The dramatic fluctuations in quarterly revenue growth indicate that Hyatt is currently in a transitional phase where integration effects from acquisitions like Apple Leisure Group dominate the headline figures. Investors should monitor whether the company can transition toward a more predictable, organic growth model as the impact of these large-scale integrations begins to normalize in future periods.
Based on reported figures, Hyatt’s gross margin has experienced significant contraction, falling from 46.5% in 2024Q4 to 10.1% by 2026Q1, which suggests that the company is struggling to maintain pricing power or manage the rising cost of service delivery within its increasingly complex, all-inclusive resort portfolio.
The sharp decline in gross margins implies that the company's cost structure is becoming increasingly burdened by the operational intensity of its newer segments. This trend warrants further investigation into whether the current margin profile is a temporary byproduct of integration or a permanent shift toward a lower-margin business model.
According to recent SEC filings, Hyatt’s operating income has failed to scale consistently with revenue, as evidenced by an operating margin that dipped to 6.1% in 2026Q1, indicating that the company is currently unable to leverage its fixed cost base effectively during this period of rapid expansion.
The lack of clear operating leverage suggests that the company's SG&A and property-level costs are rising in lockstep with revenue, preventing meaningful flow-through to the bottom line. This may indicate that the current management-heavy model requires significant overhead investment that is not yet yielding the expected economies of scale.
As indicated by the provided data, Hyatt’s net income has swung from a high of $522 million in 2024Q1 to a loss of $20 million in 2025Q4, suggesting that reported earnings are heavily impacted by non-operating items and one-time charges that mask the underlying operational performance.
The extreme variance in net income, coupled with inconsistent stock-based compensation patterns, makes it difficult to ascertain the true earnings power of the core business. Analysts should focus on adjusted EBITDA metrics to strip away the noise created by these non-recurring items and better understand the company's actual cash-generating capability.
Quick answers to the most common questions about buying H stock.
For fiscal year 2025, Hyatt Hotels Corporation (H) reported total revenue of $7.15B. This represents a 91.3% increase compared to $3.74B in 2007.
Hyatt Hotels Corporation (H) reported a net loss of $52.0M for the fiscal year ending 2025.
Hyatt Hotels Corporation (H) reported an operating income of $561.0M, resulting in an operating profit margin of 7.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Hyatt Hotels Corporation (H) generated $801.0M in gross profit for the year, representing a gross profit margin of 11.2%. This demonstrates the company's core pricing power and production efficiency.