v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM is our Chairman, President and Chief Executive Officer. We define our operating and reportable segments as follows:
•Management and franchising—This segment derives its earnings primarily from the provision of management, franchising, and hotel services, or the licensing of our intellectual property to (i) our portfolio of properties, (ii) our co-branded credit card programs, and (iii) other hospitality-related businesses. Intersegment revenues relate to management and franchise fees earned from our owned and leased hotels and commission fees earned from certain ALG Vacations bookings, both of which are eliminated in consolidation. Additionally, we recognize revenues for reimbursed costs in this segment primarily related to payroll at managed properties where we are the employer, as well as costs associated with system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties.
•Owned and leased—This segment derives its earnings from owned and leased hotel properties located predominantly in the Americas, but also in certain other international locations. Adjusted EBITDA includes intercompany management and franchise fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Intersegment revenues relate to free night award redemptions earned by our owned and leased hotels related to our co-branded credit card programs and are eliminated in consolidation.
•Distribution—This segment derives its earnings primarily from distribution and destination management services offered through ALG Vacations and the boutique and luxury global travel platform offered through Mr & Mrs Smith. Adjusted EBITDA includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
Within overhead, we include unallocated corporate expenses.
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.
Our CODM evaluates performance based on segment revenues and Adjusted EBITDA. Our CODM uses these measures to evaluate trends and assess segment operating performance as compared to our prior-period and forecasted results as well as our industry and competitors in order to determine how to allocate resources to each segment. Significant segment expenses include Adjusted general and administrative expenses, owned and leased expenses, and distribution expenses. Our CODM does not evaluate our operating segments using discrete asset information.
We define Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus net income (loss) attributable to noncontrolling interests, adjusted to exclude 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.
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.
The following tables present revenues disaggregated by the nature of the product or service and by segment and a reconciliation of segment revenues to segment Adjusted EBITDA:
Three Months Ended June 30, 2026
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$131 $— $— $131 $(7)$124 
Incentive management fees66 — — 66 (2)64 
Franchise and other fees137 — — 137 (1)136 
Gross fees334 — — 334 (10)324 
Rooms and packages— 191 — 191 (5)186 
Food and beverage— 55 — 55 — 55 
Other — 33 — 33 — 33 
Owned and leased— 279 — 279 (5)274 
Distribution— — 225 225 — 225 
Segment revenues334 279 225 838 (15)823 
Contra revenue(17)— — (17)— (17)
Revenues for reimbursed costs1,023 — — 1,023 — 1,023 
Total revenues$1,340 $279 $225 $1,844 $(15)$1,829 
Intersegment revenues$10 $5 $— $15 
Six Months Ended June 30, 2026
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$264 $— $— $264 $(13)$251 
Incentive management fees153 — — 153 (3)150 
Franchise and other fees259 — — 259 (3)256 
Gross fees676 — — 676 (19)657 
Rooms and packages— 337 — 337 (9)328 
Food and beverage— 103 — 103 — 103 
Other — 62 — 62 — 62 
Owned and leased— 502 — 502 (9)493 
Distribution— — 499 499 — 499 
Segment revenues676 502 499 1,677 (28)1,649 
Contra revenue(40)— — (40)— (40)
Revenues for reimbursed costs1,968 — — 1,968 — 1,968 
Total revenues$2,604 $502 $499 $3,605 $(28)$3,577 
Intersegment revenues$19 $9 $— $28 
Three Months Ended June 30, 2026
Management and franchisingOwned and leasedDistribution
Segment revenues$334 $279 $225 
Significant segment expenses:
Adjusted general and administrative expenses(68)(3)— 
Owned and leased expenses (1)— (237)— 
Distribution expenses (2)— — (199)
Other segment items (3)— 1 1 
Segment Adjusted EBITDA$266 $40 $27 
(1) Includes intercompany management fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(3) Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts. Distribution removes stock-based compensation expense recognized in distribution expenses.
Six Months Ended June 30, 2026
Management and franchisingOwned and leasedDistribution
Segment revenues$676 $502 $499 
Significant segment expenses:
Adjusted general and administrative expenses(146)(5)— 
Owned and leased expenses (4)— (448)— 
Distribution expenses (5)— — (446)
Other segment items (6)— 1 3 
Segment Adjusted EBITDA$530 $50 $56 
(4) Includes intercompany management fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(5) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(6) Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts. Distribution removes stock-based compensation expense recognized in distribution expenses.
Three Months Ended June 30, 2025
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$120 $— $— $120 $(7)$113 
Incentive management fees64 — — 64 (2)62 
Franchise and other fees128 — — 128 (2)126 
Gross fees312 — — 312 (11)301 
Rooms and packages— 223 — 223 (5)218 
Food and beverage— 53 — 53 — 53 
Other— 33 — 33 — 33 
Owned and leased— 309 — 309 (5)304 
Distribution— — 262 262 — 262 
Other revenues11 — — 11 — 11 
Segment revenues323 309 262 894 (16)878 
Contra revenue(15)— — (15)— (15)
Revenues for reimbursed costs945 — — 945 — 945 
Total revenues$1,253 $309 $262 $1,824 $(16)$1,808 
Intersegment revenues$11 $5 $— $16 
Six Months Ended June 30, 2025
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$240 $— $— $240 $(13)$227 
Incentive management fees141 — — 141 (3)138 
Franchise and other fees247 — — 247 (4)243 
Gross fees628 — — 628 (20)608 
Rooms and packages— 371 — 371 (9)362 
Food and beverage— 99 — 99 — 99 
Other— 62 — 62 — 62 
Owned and leased— 532 — 532 (9)523 
Distribution— — 577 577 — 577 
Other revenues22 — — 22 — 22 
Segment revenues650 532 577 1,759 (29)1,730 
Contra revenue(35)— — (35)— (35)
Revenues for reimbursed costs1,831 — — 1,831 — 1,831 
Total revenues$2,446 $532 $577 $3,555 $(29)$3,526 
Intersegment revenues$20 $9 $— $29 
Three Months Ended June 30, 2025
Management and franchisingOwned and leasedDistribution
Segment revenues$323 $309 $262 
Significant segment expenses:
Adjusted general and administrative expenses(65)(3)— 
Owned and leased expenses (1)— (261)— 
Distribution expenses (2)— — (220)
Other segment items (3)(20)2 1 
Segment Adjusted EBITDA$238 $47 $43 
(1) Includes intercompany management and franchise fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(3) Management and franchising includes direct costs associated with our co-branded credit card programs recognized in other direct costs prior to the integration into the loyalty program in the fourth quarter of 2025. Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts and stock-based compensation expense recognized in owned and leased expenses. Distribution removes stock-based compensation expense recognized in distribution expenses.
Six Months Ended June 30, 2025
Management and franchisingOwned and leasedDistribution
Segment revenues$650 $532 $577 
Significant segment expenses:
Adjusted general and administrative expenses(132)(5)— 
Owned and leased expenses (4)— (467)— 
Distribution expenses (5)— — (488)
Other segment items (6)(44)2 3 
Segment Adjusted EBITDA$474 $62 $92 
(4) Includes intercompany management and franchise fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(5) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(6) Management and franchising includes direct costs associated with our co-branded credit card programs recognized in other direct costs prior to the integration into the loyalty program in the fourth quarter of 2025. Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts and stock-based compensation expense recognized in owned and leased expenses. Distribution removes stock-based compensation expense recognized in distribution expenses.
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Management and franchising$266 $238 $530 $474 
Owned and leased40 47 50 62 
Distribution27 43 56 92 
Segment Adjusted EBITDA333 328 636 628 
Unallocated overhead expenses(36)(42)(73)(82)
Eliminations— — — 1 
Contra revenue(17)(15)(40)(35)
Revenues for reimbursed costs1,023 945 1,968 1,831 
Reimbursed costs(1,020)(949)(1,983)(1,851)
Stock-based compensation expense (1)(17)(14)(44)(45)
Transaction and integration costs(8)(82)(24)(105)
Depreciation and amortization(73)(82)(149)(162)
Equity earnings (losses) from unconsolidated hospitality ventures11 6 (2)(6)
Interest expense(64)(74)(129)(140)
Gains (losses) on sales of real estate and other2 (2)2 (2)
Asset impairments(5)(10)(26)(14)
Other income (loss), net53 29 103 72 
Income before income taxes$182 $38 $239 $90 
(1) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs (see Note 15).