Hotel Giants Thrive: Hyatt & Wyndham’s 2024 Success
In a remarkable display of resilience and strategic growth, two of the world’s leading hotel giants—Hyatt Hotels Corporation and Wyndham Hotels & Resorts—reported robust full-year 2024 results, while also unveiling optimistic forecasts for 2025. Both companies are leveraging growth, development, and fee revenue as key drivers behind their success.
Hyatt’s Impressive Growth and Expansion
Hyatt Hotels Corporation showcased significant gains in 2024, highlighted by a strong system-wide RevPAR (revenue per available room) growth of 5 percent in the final quarter, contributing to a full-year RevPAR increase of 4.6 percent over 2023. The all-inclusive segment was no exception, growing by 4.4 percent year-over-year.
The company’s expansion strategy remains in full swing. In the fourth quarter alone, Hyatt welcomed 81 new hotels, bolstered by strategic acquisitions such as Standard International and Bahia Principe. By year-end, the development pipeline had swelled to around 720 hotels, leading to a full-year net rooms growth of 7.8 percent. Financially, Hyatt reported an adjusted net income of $375 million and a full-year Diluted EPS of $12.65. Although the fourth quarter saw a temporary net income loss of $56 million (or $0.58 per share), the adjusted EBITDA for the quarter stood at $255 million, while the annual figure reached an impressive $1.096 billion.
CEO Mark S. Hoplamazian emphasized the company’s strategic evolution, noting that the “purposeful evolution of our business model and strong brand focus has accelerated our network effect benefiting each of our stakeholders.” He credited the success to the growth of the World of Hyatt loyalty program, which now boasts approximately 54 million members, and highlighted record levels of gross fees that returned over $1.2 billion to shareholders in 2024.
Wyndham’s Steady Performance and Fee Revenue Focus
Wyndham Hotels & Resorts experienced similar momentum in the fourth quarter, with global RevPAR growing by 5 percent—mirroring Hyatt’s quarter-over-quarter performance. However, its full-year RevPAR growth was more modest at 2 percent, with U.S. RevPAR remaining steady in 2024. Wyndham’s portfolio expansion saw a 4 percent net rooms growth from 2023, with nearly 70,000 new rooms added. The development pipeline also grew by 5 percent, reaching a record 252,000 rooms.
Financially, Wyndham reported a net income of $289 million for the full year, while its fourth quarter net income soared by 70 percent to $85 million. The company’s adjusted EBITDA for 2024 was $694 million—a 5 percent increase over the previous year—with the fourth quarter marking a 9 percent rise to $168 million. Wyndham is banking on fee revenue, known as FeePAR, as a major growth driver, with estimates for 2025 fee-related revenue ranging between $1.49 billion and $1.51 billion. This focus mirrors Hyatt’s success in fee revenue, where it generated $268 million in the third quarter of 2024 alone.
Optimistic Outlook for 2025
Looking ahead, both hotel giants predict a strong 2025 for the travel and hospitality sector. Hyatt anticipates full-year RevPAR growth between 2 and 4 percent, coupled with a net rooms growth of 6 to 7 percent. The company forecasts net income between $190 million and $240 million, with adjusted EBITDA between $1.1 billion and $1.15 billion. Notably, Hyatt’s expansion continues with its planned acquisition of Playa Hotels & Resorts N.V. for $2.6 billion.
Wyndham expects its full-year RevPAR to grow 2 to 3 percent, with net rooms growth projected between 3.6 percent and 4.6 percent. Its net income forecast for 2025 is between $369 million and $379 million, while adjusted EBITDA is predicted to range from $745 million to $755 million, with shareholders enjoying an Adjusted Diluted EPS of $4.66 to $4.78.
As both companies position themselves for future growth, the strong 2024 performance and strategic plans for 2025 signal a bright future for the hospitality industry.
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