NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in millions of dollars, unless otherwise indicated)
(Unaudited)
1. ORGANIZATION
Hyatt Hotels Corporation, a Delaware corporation, and its consolidated subsidiaries have offerings that consist of full service hotels and resorts, select service hotels, all-inclusive resorts, and other properties, including timeshare, fractional, and other forms of residential and vacation units. We also offer distribution and destination management services through ALG Vacations and distribution services through Mr & Mrs Smith, a boutique and luxury global travel platform. At March 31, 2026, our hotel portfolio included 1,548 hotels and all-inclusive resorts (375,260 rooms), and our portfolio of properties operated in 83 countries around the world. Additionally, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and operate under other trade names or marks owned by such hotels or licensed by third parties.
Unless otherwise specified or required by the context, references in this Quarterly Report on Form 10-Q ("Quarterly Report") to "we," "our," "us," "Hyatt," or the "Company" refer to Hyatt Hotels Corporation and its consolidated subsidiaries. As used in this Quarterly Report:
•"hospitality ventures" refer to entities in which we own less than a 100% equity interest;
•"hotel portfolio" refers to our full service hotels, our select service hotels, and our all-inclusive resorts;
•"loyalty program" refers to the World of Hyatt loyalty program that is operated for the benefit of participating properties and is designed to drive guest engagement and repeat business by rewarding members with points and other benefits;
•"properties" or "portfolio of properties" refer to our hotel portfolio and residential and vacation units that we operate, manage, franchise, own, lease, develop, license, or to which we provide services or license our trademarks, including under the Park Hyatt, Alila, Miraval, Impression by Secrets, The Unbound Collection by Hyatt, Andaz, Thompson Hotels, The Standard, Dream Hotels, The StandardX, Breathless Resorts & Spas, JdV by Hyatt, Bunkhouse Hotels, Me and All Hotels, Zoëtry Wellness & Spa Resorts, Hyatt Ziva, Hyatt Zilara, Secrets Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotels & Resorts, Bahia Principe Hotels & Resorts, Alua Hotels & Resorts, Sunscape Resorts & Spas, Grand Hyatt, Hyatt Regency, Destination by Hyatt, Hyatt Centric, Hyatt Vacation Club, Hyatt, Caption by Hyatt, Unscripted by Hyatt, Hyatt Place, Hyatt House, Hyatt Studios, Hyatt Select, and UrCove brands;
•"residential units" refer to residential units that we manage, own, or to which we provide services or license our trademarks, including Hyatt-branded residential units that are either for sale or owned by a third-party and participating in a voluntary rental management program, which are typically located within or adjacent to a full service hotel that is a member of our portfolio of properties or in stand-alone developments; and
•"vacation units" refer to the fractional and timeshare vacation properties we license our trademarks to and that are part of Hyatt Vacation Club.
The unaudited condensed consolidated financial statements and accompanying footnotes (the "Notes") include Hyatt Hotels Corporation and its majority owned and controlled subsidiaries as well as entities consolidated under the variable interest entity ("VIE") model and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete annual financial statements. As a result, this Quarterly Report should be read in conjunction with the consolidated financial statements and accompanying footnotes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "2025 Form 10-K").
Management believes the accompanying condensed consolidated financial statements reflect all adjustments, which are all of a normal recurring nature, considered necessary for a fair presentation of the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Future Adoption of Accounting Standards
Disclosure Improvements—In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2023-06 ("ASU 2023-06"), Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. ASU 2023-06 modifies the disclosure and presentation requirements for certain FASB Accounting Standards Codification topics to align with Securities and Exchange Commission ("SEC") regulations. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from its regulations becomes effective, if the SEC removes the disclosure by June 30, 2027. The provisions of ASU 2023-06 are to be applied prospectively, with early adoption prohibited. We do not expect the adoption of ASU 2023-06 to have a material impact on our condensed consolidated financial statements and accompanying Notes.
Expense Disaggregation Disclosures—In November 2024, the FASB issued Accounting Standards Update No. 2024-03 ("ASU 2024-03"), Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosure of disaggregated information about certain costs and expenses presented on the consolidated statements of income (loss), including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, as clarified by Accounting Standards Update No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, and may be applied either prospectively or retrospectively for any or all prior periods presented. We are currently assessing the impact of adopting ASU 2024-03.
Internal-Use Software—In September 2025, the FASB issued Accounting Standards Update No. 2025-06 ("ASU 2025-06"), Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 removes all references to prescriptive and sequential software development stages and requires entities to begin capitalizing software costs when both of the following occur: (1) management authorizes and commits to funding the software project and (2) it is probable that the project will be completed and the software will be used for its intended purpose. The provisions of ASU 2025-06 are effective for fiscal years beginning after December 15, 2027 and interim periods within those fiscal years, with early adoption permitted, and may be applied prospectively, retrospectively, or with a modified transition approach. We are currently assessing the impact of adopting ASU 2025-06.
Government Grants—In December 2025, the FASB issued Accounting Standards Update No. 2025-10 ("ASU 2025-10"), Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. ASU 2025-10 establishes authoritative guidance on the accounting and presentation of government grants received by a business entity. The provisions of ASU 2025-10 are effective for fiscal years beginning after December 15, 2028 and interim periods within those fiscal years, with early adoption permitted, and may be applied retrospectively or with a modified prospective or retrospective approach. We are currently assessing the impact of adopting ASU 2025-10.
Interim Reporting—In December 2025, the FASB issued Accounting Standards Update No. 2025-11 ("ASU 2025-11"), Interim Reporting (Topic 270): Narrow-Scope Improvements. ASU 2025-11 clarifies the applicability of interim reporting guidance, provides a comprehensive list of required interim disclosures, and establishes a disclosure principle that requires disclosure of material events that occurred after the end of the last annual reporting period. The provisions of ASU 2025-11 are effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied prospectively or retrospectively. We are currently assessing the impact of adopting ASU 2025-11.
Codification Improvements—In December 2025, the FASB issued Accounting Standards Update No. 2025-12 ("ASU 2025-12"), Codification Improvements. The amendments in ASU 2025-12 represent changes to certain FASB Accounting Standards Codification topics that clarify, correct errors, or make minor improvements. The provisions of ASU 2025-12 are effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years, with early adoption permitted, and may be applied prospectively or retrospectively. Early adoption and transition method may be elected on an issue-by-issue basis. We do not expect the adoption of ASU 2025-12 to have a material impact on our condensed consolidated financial statements and accompanying Notes.
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregated Revenues
See Note 16 for our revenues disaggregated by the nature of the product or service.
Contract Balances
Contract assets related to incentive management fees recorded in receivables, net on our condensed consolidated balance sheets were $2 million and insignificant at March 31, 2026 and December 31, 2025, respectively. As our profitability hurdles are generally calculated on a full-year basis, we expect these contract assets to be insignificant at year end.
At both March 31, 2026 and December 31, 2025, we had a $14 million contingent consideration receivable recorded as a contract asset in other assets on our condensed consolidated balance sheets related to an asset disposition that occurred in the fourth quarter of 2025. We estimate contingent consideration on a recurring basis using the expected value method. During the three months ended March 31, 2026, there were no changes in estimate recognized.
Contract liabilities were comprised of the following:
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| March 31, 2026 | | December 31, 2025 |
| Deferred revenue related to the loyalty program | $ | 1,709 | | | $ | 1,604 | |
| Deferred revenue related to distribution and destination management services | 543 | | | 643 | |
| Deferred revenue related to insurance programs | 80 | | | 102 | |
| Advanced deposits | 78 | | | 59 | |
| Initial application fees from franchisees | 50 | | | 50 | |
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| Other deferred revenue | 138 | | | 138 | |
| Total | $ | 2,598 | | | $ | 2,596 | |
Revenue recognized during the three months ended March 31, 2026 and March 31, 2025 included in the contract liabilities balance at the beginning of each year was $637 million and $661 million, respectively. This revenue primarily related to distribution and destination management services and the loyalty program.
Revenue Allocated to Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted revenue expected to be recognized in future periods was approximately $130 million at March 31, 2026. This was primarily related to design services fees from third-party owners and initial application fees from franchisees. Design services fees are recognized as revenues over multiple years, typically over a period of less than five years, using the percentage-of-completion method based on the achievement of design and/or renovation or construction milestones, timing of which is inherently uncertain. Initial application fees are recognized as revenues using the straight-line method over the initial term of the franchise agreement, which is generally 20 years. Of the $130 million of contracted revenue, we expect to recognize approximately 10% within the next 12 months, with the remainder to be recognized thereafter.
4. DEBT AND EQUITY SECURITIES
Variable Interest Entities
Bahia Principe—We consolidate the operating results and financial position of a joint venture that owns the Bahia Principe brand and manages Bahia Principe Hotels & Resorts-branded properties. The resorts managed by the joint venture increase our all-inclusive portfolio and provide guests and loyalty program members more opportunities to experience all-inclusive travel. We provide certain commercial and management support services to the joint venture to support the growth of the Bahia Principe brand and the operation of Bahia Principe Hotels & Resorts-branded properties.
We hold a variable interest in the joint venture, which is a VIE, and we are the primary beneficiary. The following table summarizes the VIE's assets and liabilities, including the effect of foreign currency translation, recorded on our condensed consolidated balance sheets. The assets may only be used to settle obligations of the consolidated VIE, if any. In addition, there is no recourse to us for the consolidated VIE's liabilities.
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| March 31, 2026 | | December 31, 2025 |
| Cash and cash equivalents | $ | 27 | | | $ | 23 | |
| Receivables | 11 | | | 7 | |
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| Total current assets | 38 | | | 30 | |
| Operating lease right-of-use assets | — | | | 1 | |
| Goodwill | 175 | | | 178 | |
| Intangibles, net | 547 | | | 561 | |
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| Other assets | 59 | | | 59 | |
| Total assets | $ | 819 | | | $ | 829 | |
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| Accounts payable | $ | 2 | | | $ | 2 | |
| Accrued expenses and other current liabilities | 5 | | | 5 | |
| Accrued compensation and benefits | 1 | | | 1 | |
| Total current liabilities | 8 | | | 8 | |
| Long-term operating lease liabilities | — | | | 1 | |
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| Other long-term liabilities | 178 | | | 180 | |
| Total liabilities | $ | 186 | | | $ | 189 | |
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Unlimited Vacation Club—The entity that owns the Unlimited Vacation Club business is classified as a VIE in which we hold a variable interest but are not the primary beneficiary, and we account for our common ownership interest as an equity method investment. We manage the Unlimited Vacation Club business under a long-term management agreement and license and royalty agreement.
At March 31, 2026 and December 31, 2025, we had $83 million and $80 million, respectively, recorded in other long-term liabilities (see Note 10) on our condensed consolidated balance sheets related to our guaranteed obligations of this unconsolidated VIE. At March 31, 2026 and December 31, 2025, our maximum exposure to loss was $151 million and $149 million, respectively, which includes the maximum exposure of our guaranteed obligations (see Note 12).
Equity Method Investments
At March 31, 2026 and December 31, 2025, we had $192 million and $186 million, respectively, of equity method investments recorded on our condensed consolidated balance sheets. One of our unconsolidated hospitality ventures has its equity shares listed on the BSE Limited and National Stock Exchange of India Limited stock exchanges. At March 31, 2026, the aggregate value of our equity shares was $173 million based on the price per share of the principal market.
During the three months ended March 31, 2026, an equity method investment, in which we hold an ownership interest, sold the underlying hotel to a third party, and we recognized an insignificant gain in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income. At the time of sale, we had $10 million of outstanding financing receivables related to the unconsolidated hospitality venture, which were repaid in conjunction with the sale. Additionally, the unconsolidated hospitality venture repaid its third-party mortgage loan on the property, and we were released from our debt repayment guarantee (see Note 12). Upon sale, we entered into a long-term franchise agreement for the property.
Marketable Securities and Other Investments
We hold various forms of debt and equity securities for investment purposes and to fund our loyalty program, deferred compensation plans held in rabbi trusts, and captive insurance company. We also periodically transfer available cash and cash equivalents to purchase marketable securities.
Trading Securities—Our trading securities are recorded at fair value based on listed market prices or dealer quotations, where available. At both March 31, 2026 and December 31, 2025, our interest-bearing money market funds were recorded in cash and cash equivalents and all other trading securities were recorded in other assets on our condensed consolidated balance sheets. The following table summarizes the fair values of our trading securities:
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| March 31, 2026 | | December 31, 2025 | | | | |
| Level One—Quoted Prices in Active Markets for Identical Assets | | | | | | | |
| Interest-bearing money market funds | $ | 204 | | | $ | 441 | | | | | |
| Exchange-traded funds | 7 | | | 7 | | | | | |
| Common shares | 13 | | | 13 | | | | | |
| Marketable securities held to fund rabbi trusts | 566 | | | 594 | | | | | |
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| Level Two—Significant Other Observable Inputs | | | | | | | |
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| U.S. government obligations | 67 | | | 68 | | | | | |
| U.S. government agencies | 8 | | | 9 | | | | | |
| Corporate debt securities | 7 | | | 7 | | | | | |
| Mortgage-backed securities | 5 | | | 4 | | | | | |
| Asset-backed securities | 2 | | | 1 | | | | | |
| Municipal and provincial notes and bonds | 2 | | | 2 | | | | | |
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| Total | $ | 881 | | | $ | 1,146 | | | | | |
The impact from marketable securities held to fund rabbi trusts was recognized in the following financial statement line items on our condensed consolidated statements of income and had no impact on net income: revenues for reimbursed costs; general and administrative expenses; owned and leased expenses; reimbursed costs; and net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
Net unrealized losses and realized gains recognized in revenues for reimbursed costs, net gains (losses) and interest income from marketable securities held to fund rabbi trusts, and other income (loss), net on our condensed consolidated statements of income were as follows:
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| Three Months Ended March 31, |
| 2026 | | 2025 |
| Net losses | $ | (18) | | | $ | (8) | |
| Less: net gains recognized on securities sold during the period | (4) | | | (3) | |
| Unrealized losses, net recognized on securities held at period end | $ | (22) | | | $ | (11) | |
Available-for-Sale Debt Securities—We hold various available-for-sale ("AFS") debt investments, including fixed income instruments and time deposits with contractual maturity dates ranging from 2026 through 2070, which are recorded at fair value based on listed market prices or dealer quotations, where available. Additionally, we hold a preferred equity investment that is mandatorily redeemable at the earlier of March 31, 2033 or the occurrence of a contractual redemption event, which includes a change in control, at an amount that can vary based on the profitability of the underlying properties. The fair value of the preferred equity investment was estimated using a Monte Carlo simulation to model the probability of possible outcomes. The model included assumptions and judgments regarding discount rates, volatility, expected timing of cash flows, estimated probability of achieving the contractual objectives, and hotel operating results.
Except as noted below, our AFS debt securities were recorded in other assets on our condensed consolidated balance sheets. The following tables summarize the fair values of our AFS debt securities:
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| March 31, 2026 |
| Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair value |
| Level Two—Significant Other Observable Inputs | | | | | | | |
| U.S. government obligations (1) | $ | 231 | | | $ | 1 | | | $ | (3) | | | $ | 229 | |
| U.S. government agencies | 26 | | | — | | | — | | | 26 | |
| Corporate debt securities (2) | 321 | | | 2 | | | (2) | | | 321 | |
| Mortgage-backed securities | 37 | | | — | | | (1) | | | 36 | |
| Asset-backed securities | 34 | | | — | | | — | | | 34 | |
| Municipal and provincial notes and bonds | 4 | | | — | | | — | | | 4 | |
| Time deposits (3) | 43 | | | — | | | — | | | 43 | |
| Level Three—Significant Unobservable Inputs | | | | | | | |
| Preferred equity | 108 | | | — | | | — | | | 108 | |
| Total | $ | 804 | | | $ | 3 | | | $ | (6) | | | $ | 801 | |
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(1) Includes $3 million and $7 million recorded in cash and cash equivalents and short-term investments, respectively. |
(2) Includes $7 million and $59 million recorded in cash and cash equivalents and short-term investments, respectively. |
(3) Includes $27 million and $12 million recorded in cash and cash equivalents and short-term investments, respectively. |
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| December 31, 2025 | | | | | | | |
| Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair value | | | | | | | |
| Level Two—Significant Other Observable Inputs | | | | | | | | | | | | | | |
| U.S. government obligations | $ | 224 | | | $ | 2 | | | $ | (2) | | | $ | 224 | | | | | | | | |
| U.S. government agencies | 23 | | | — | | | — | | | 23 | | | | | | | | |
| Corporate debt securities (1) | 262 | | | 4 | | | (1) | | | 265 | | | | | | | | |
| Mortgage-backed securities | 33 | | | — | | | — | | | 33 | | | | | | | | |
| Asset-backed securities | 35 | | | — | | | — | | | 35 | | | | | | | | |
| Municipal and provincial notes and bonds | 3 | | | — | | | — | | | 3 | | | | | | | | |
| Time deposits (2) | 23 | | | — | | | — | | | 23 | | | | | | | | |
| Level Three—Significant Unobservable Inputs | | | | | | | | | | | | | | |
| Preferred equity | 104 | | | — | | | — | | | 104 | | | | | | | | |
| Total | $ | 707 | | | $ | 6 | | | $ | (3) | | | $ | 710 | | | | | | | | |
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(1) Includes $18 million recorded in short-term investments. | | | | | | | |
(2) Includes $12 million and $8 million recorded in cash and cash equivalents and short-term investments, respectively. | | | | | | | |
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During both the three months ended March 31, 2026 and March 31, 2025, we recognized an insignificant amount of net realized gains in other income (loss), net on our condensed consolidated statements of income. Net unrealized losses recognized on our condensed consolidated financial statements were as follows:
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| Three Months Ended March 31, |
| 2026 | | 2025 |
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Other comprehensive income (loss) (Note 13) | $ | (6) | | | $ | (5) | |
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During the year ended December 31, 2025, a $30 million convertible debt investment associated with one of our franchised properties was extinguished in conjunction with the recapitalization of the franchisee. During the three months ended March 31, 2025, we recognized $12 million of net unrealized losses in other comprehensive income (loss) and a $5 million credit loss provision in other income (loss), net on our condensed consolidated financial statements related to this investment.
Held-to-Maturity Debt Securities—We hold time deposits and investments in third-party entities associated with certain of our hotels. The investments are recorded at amortized cost, net of expected credit losses and unamortized discounts, as held-to-maturity ("HTM") debt securities. Except as noted below, our HTM debt securities were recorded in other assets on our condensed consolidated balance sheets:
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| March 31, 2026 |
| Amortized cost | | Allowance for credit losses | | Net carrying value | | Gross carrying value on nonaccrual status | | Year of contractual maturity date |
| Time deposits | $ | 175 | | | $ | — | | | $ | 175 | | | $ | — | | | 2027 |
| Preferred equity (1) | 335 | | | (15) | | | 320 | | | 16 | | | various, through 2033 |
| Total | $ | 510 | | | $ | (15) | | | $ | 495 | | | $ | 16 | | | |
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(1) Includes $26 million recorded in prepaids and other assets. |
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| December 31, 2025 |
| Amortized cost | | Allowance for credit losses | | Net carrying value | | Gross carrying value on nonaccrual status | | Year of contractual maturity date |
| Time deposits | $ | 153 | | | $ | — | | | $ | 153 | | | $ | — | | | 2027 |
| Preferred equity | 322 | | | (9) | | | 313 | | | 16 | | | various, through 2062 |
| Total | $ | 475 | | | $ | (9) | | | $ | 466 | | | $ | 16 | | | |
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At March 31, 2026 and December 31, 2025, our preferred equity included a $197 million and $196 million, respectively, investment recorded net of a $28 million and $29 million, respectively, unamortized discount. Accretion of the discount was recognized in interest income within other income (loss), net on our condensed consolidated statements of income (see Note 18) and was based on an imputed interest rate of 8.9%.
The following table summarizes the activity in our HTM debt securities allowance for credit losses:
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| 2026 | | 2025 |
| Allowance at January 1 | $ | 9 | | | $ | 9 | |
| Provisions | 6 | | | — | |
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| Allowance at March 31 | $ | 15 | | | $ | 9 | |
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The following table summarizes the fair values of our HTM debt securities:
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| March 31, 2026 | | December 31, 2025 |
| Level Two—Significant Other Observable Inputs | | | |
| Time deposits | $ | 175 | | | $ | 153 | |
| Preferred equity | — | | | 1 | |
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| Level Three—Significant Unobservable Inputs | | | |
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| Preferred equity | 322 | | | 314 | |
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Equity Securities Without A Readily Determinable Fair Value—At March 31, 2026 and December 31, 2025, we held $6 million and $11 million, respectively, of investments in equity securities without a readily determinable fair value, which were recorded in other assets on our condensed consolidated balance sheets and represent investments in entities where we do not have the ability to significantly influence the operations of the entity.
During the three months ended March 31, 2026 and March 31, 2025, we recognized $5 million and an insignificant amount, respectively, of impairment charges in other income (loss), net on our condensed consolidated statements of income (see Note 18) as the estimated fair values of the investments were less than the carrying values. We estimated the fair values, which are classified as Level Three in the fair value hierarchy, using internally developed cash flow models.
Fair Value Measurement—During both the three months ended March 31, 2026 and March 31, 2025, there were no transfers between levels of the fair value hierarchy for any of our securities.
5. RECEIVABLES
Receivables
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| March 31, 2026 | | December 31, 2025 |
| Total receivables | $ | 1,199 | | | $ | 1,202 | |
| Less: allowance for credit losses | (82) | | | (79) | |
| Total receivables, net of allowances | $ | 1,117 | | | $ | 1,123 | |
The following table summarizes the activity in our receivables allowance for credit losses:
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| 2026 | | 2025 | | |
| Allowance at January 1 | $ | 79 | | | $ | 62 | | | |
| Provisions (reversals), net | 7 | | | 4 | | | |
| Write-offs | (4) | | | (2) | | | |
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| Allowance at March 31 | $ | 82 | | | $ | 64 | | | |
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Financing Receivables
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| March 31, 2026 | | December 31, 2025 |
| Secured financing to hotel owners | $ | 174 | | | $ | 163 | |
| Unsecured financing to hotel owners and unconsolidated hospitality ventures (1) | 229 | | | 255 | |
| Deferred fee arrangements | 119 | | | 104 | |
| Total financing receivables | $ | 522 | | | $ | 522 | |
| Less: current portion of financing receivables included in receivables, net | (21) | | | (30) | |
| Less: allowance for credit losses | (58) | | | (50) | |
| Total long-term financing receivables, net of allowances | $ | 443 | | | $ | 442 | |
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(1) Includes a $40 million and $39 million loan, net of a $10 million and $11 million unamortized discount, at March 31, 2026 and December 31, 2025, respectively, related to seller financing issued in conjunction with a prior asset disposition. Accretion of the discount was recognized in interest income within other income (loss), net on our condensed consolidated statements of income (see Note 18) and was based on an imputed interest rate of 9.4%. |
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The following table summarizes the activity in our financing receivables allowance for credit losses:
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| 2026 | | 2025 | | |
| Allowance at January 1 | $ | 50 | | | $ | 36 | | | |
| Provisions (reversals), net | 9 | | | 6 | | | |
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| Write-offs | (1) | | | — | | | |
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| Allowance at March 31 | $ | 58 | | | $ | 42 | | | |
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| | | | | |
| | | | | |
| | | | | |
| | | | | |
Our financing receivables were comprised of the following:
| | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2026 |
| | Amortized cost | | Allowance for credit losses | | Net carrying value | | Gross carrying value on nonaccrual status |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Junior and senior mortgage loans | $ | 174 | | | $ | — | | | $ | 174 | | | $ | — | |
| | | | | | | |
| | | | | | | |
| Unsecured loans | 229 | | | (48) | | | 181 | | | 46 | |
| Deferred fee arrangements (1) | 119 | | | (10) | | | 109 | | | 111 | |
| Total | $ | 522 | | | $ | (58) | | | $ | 464 | | | $ | 157 | |
| | | | | | | |
| (1) Primarily greater than 90 days past due based on the nature of the financing receivables class. |
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2025 |
| | Amortized cost | | Allowance for credit losses | | Net carrying value | | Gross carrying value on nonaccrual status |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Junior and senior mortgage loans | $ | 163 | | | $ | — | | | $ | 163 | | | $ | — | |
| Unsecured loans | 255 | | | (41) | | | 214 | | | 46 | |
| Deferred fee arrangements (1) | 104 | | | (9) | | | 95 | | | 96 | |
| Total | $ | 522 | | | $ | (50) | | | $ | 472 | | | $ | 142 | |
| | | | | | | |
| (1) Primarily greater than 90 days past due based on the nature of the financing receivables class. |
We estimated the fair value of financing receivables, which are classified as Level Three in the fair value hierarchy, to be approximately $496 million and $493 million at March 31, 2026 and December 31, 2025, respectively.
6. ACQUISITIONS AND DISPOSITIONS
Acquisitions
Playa Hotels & Resorts N.V.—During the year ended December 31, 2025, we completed a tender offer process to purchase all of the issued and outstanding ordinary shares of Playa Hotels & Resorts N.V. ("Playa Hotels," and such acquisition, the "Playa Hotels Acquisition") at a cash price of $13.50 per share (the "Offer Consideration"). Immediately prior to the acquisition date, we held 9.9% of Playa Hotels' outstanding shares, which were accounted for as trading securities. On June 11, 2025, the acquisition date, we paid cash of $1,497 million, obtained control over a majority of the outstanding shares, and repaid Playa Hotels' existing term loan for $1,078 million, inclusive of $3 million of accrued interest. All remaining shares were acquired from June 12, 2025 to June 17, 2025. The impact of the noncontrolling interest during the intervening period was insignificant. On June 17, 2025, we completed the acquisition, which was financed through proceeds from debt (see Note 9). We accounted for the transaction as a business combination.
Upon acquisition, each unvested restricted share and restricted stock unit award held by non-executive directors of Playa Hotels and certain terminating employees (collectively, the "Terminating Employees") became fully vested and was automatically converted into the right to receive cash, equal to the Offer Consideration multiplied by the total number of unvested ordinary shares as of immediately prior to the closing of the Playa Hotels Acquisition. Vesting for awards eligible to vest based on performance goals was determined based on relevant provisions in underlying award agreements, with such vesting occurring either (i) as though the greater of target performance or actual performance had been achieved or (ii) as though target performance had been achieved, except that, all such awards granted during 2024 vested at the applicable maximum performance level. We paid $55 million to Terminating Employees, of which $25 million was attributable to pre-combination vesting and was therefore included in the purchase consideration. The remaining $30 million was attributable to post-combination vesting and expensed during the year ended December 31, 2025.
Additionally, we assumed outstanding unvested restricted shares and restricted stock unit awards (the "Continuing Awards") that were previously granted to continuing employees under the Playa Hotels N.V. 2017 Omnibus Incentive Plan (the "Playa Hotels Plan") and converted each award into time-vested restricted stock units ("RSUs," and such awards, the "Assumed Awards"). The number of shares issued for the Assumed Awards was based on the number of ordinary shares subject to such Continuing Award immediately prior to the closing of the Playa Hotels Acquisition multiplied by the applicable exchange ratio. Vesting for awards eligible to vest based on performance goals was determined based on relevant provisions in underlying award agreements, with such vesting occurring either (i) as though the greater of target performance or actual performance had been achieved or (ii) as though target performance had been achieved, except that, all such awards granted during 2024 vested at the applicable maximum performance level. The Assumed Awards continue to be governed by the terms of the Playa Hotels Plan and are subject to the same vesting and other terms and conditions as were applicable to the corresponding Continuing Awards, except that if the holder of an Assumed Award is terminated without "cause" or terminates employment for "good reason" within 12 to 24 months, as applicable for specified holders, following the closing of the Playa Hotels Acquisition, such holder's Assumed Awards will vest in full, subject to execution of a release.
The fair value of the Assumed Awards, which was estimated based on the closing stock price of our Class A common stock on the acquisition date, was $17 million, of which $3 million was attributable to pre-combination vesting and was therefore included in the purchase consideration. The remaining $14 million was attributable to post-combination vesting and will be recognized as compensation expense on a straight-line basis over the requisite service period on our condensed consolidated statements of income (see Note 14).
Total purchase consideration was determined as follows:
| | | | | |
| Ordinary shares outstanding | 123,013,382 |
| Less: Hyatt's previously-held ordinary shares | (12,143,621) |
| Total number of ordinary shares acquired | 110,869,761 |
| Offer Consideration per share | $ | 13.50 | |
| Cash paid to shareholders | $ | 1,497 | |
| Cash settlement of share-based payment awards to Terminating Employees | 25 | |
| Fair value of Continuing Awards | 3 | |
| Settlement of preexisting relationship (1) | 8 | |
| Total purchase consideration | $ | 1,533 | |
(1) Represents the effective settlement of existing receivables and key money assets related to Playa Hotels, which was determined based on the respective carrying values at the acquisition date. |
The acquisition primarily consisted of 15 all-inclusive resorts across Mexico, the Dominican Republic, and Jamaica (the "Playa Hotels Portfolio"). During the year ended December 31, 2025, we sold the entirety of Playa Hotels Portfolio to unrelated third parties for approximately $2,000 million, inclusive of a $200 million preferred equity investment in the parent of one of the third-party entities that owns the properties, and up to an additional $143 million of contingent consideration, if certain operating thresholds are met. Upon sale, we entered into long-term management agreements for 13 of the 15 properties.
Upon acquisition, we recorded estimates of the fair value of the assets acquired and liabilities assumed based on available information as of the acquisition date. Assets and liabilities associated with the Playa Hotels Portfolio were classified as held for sale and were recorded at their estimated fair values less costs to sell.
The fair value of the acquired property and equipment that was classified as held for sale was estimated using a market approach and market participant assumptions, which incorporated the following:
•The agreed-upon sales price of the Playa Hotels Portfolio, less amounts for committed capital expenditures to be incurred prior to the sale.
•The fair value of the preferred equity investment and contingent consideration, both of which were estimated using a Monte Carlo simulation to model the probability of possible outcomes. The valuation methodology included assumptions and judgments, as applicable, regarding discount rates, volatility, expected timing of cash flows, estimated probability of achieving the contractual objectives, and hotel operating results, which are primarily Level Three inputs.
•The fair value of agreed-upon tax indemnifications, which was estimated using a probability-based weighting approach to determine the likelihood of payment of the potential tax liabilities. The valuation methodology included assumptions and judgments regarding probability weighting, discount rates, outcomes of tax assessments, and expected timing of cash flows, which are primarily Level Three inputs.
We recorded an assumed liability in accrued expenses and other current liabilities related to tax liabilities triggered by the acquisition. The liability was estimated using the cumulative-probability approach to determine the expected payment amount. The valuation methodology included assumptions and judgments regarding the cumulative probabilities, which are primarily Level Three inputs. The remaining assets and liabilities were recorded at their carrying values, which approximated their fair values.
During the three months ended March 31, 2026, we recorded a $2 million increase to goodwill on our condensed consolidated balance sheet related to measurement period adjustments that resulted in a corresponding increase in current liabilities held for sale at the acquisition date.
We will finalize the fair values of the assets acquired and liabilities assumed in the second quarter of 2026. We will continue to evaluate the fair values and classification of the assets acquired and liabilities assumed. Accordingly, these estimates, along with any related tax impacts, are subject to change during the measurement period, which is up to one year from the date of acquisition.
The following table summarizes the preliminary fair value of the identifiable net assets acquired at the acquisition date:
| | | | | |
| Purchase consideration | $ | 1,533 | |
| Fair value of Hyatt's previously-held ordinary shares | 164 | |
| Total to be allocated | $ | 1,697 | |
| |
| Cash and cash equivalents | $ | 195 | |
| Receivables | 7 | |
| Prepaids and other assets | 4 | |
| Current assets held for sale | 141 | |
| Property and equipment | 2 | |
| Operating lease right-of-use assets | 6 | |
| Goodwill (1) | 969 | |
| Deferred tax assets | 2 | |
| Other assets | 1 | |
| Long-term assets held for sale | 1,761 | |
| Total assets acquired | $ | 3,088 | |
| |
| Accounts payable | $ | 34 | |
| Accrued expenses and other current liabilities | 113 | |
| Accrued compensation and benefits | 8 | |
| Current liabilities held for sale | 120 | |
| Debt | 1,075 | |
| |
| Long-term operating lease liabilities | 5 | |
| Other long-term liabilities | 1 | |
| Long-term liabilities held for sale | 35 | |
| Total liabilities assumed | $ | 1,391 | |
| Total net assets acquired attributable to Hyatt Hotels Corporation | $ | 1,697 | |
(1) The goodwill is attributable to securing the ability for us to manage certain properties in the Playa Hotels Portfolio over the long term as well as the growth opportunities we expect to realize by introducing the properties to our all-inclusive platform offerings, including our distribution and destination management services and the Unlimited Vacation Club business that we manage. The goodwill, of which $861 million was recorded within our management and franchising segment and $108 million was recorded within our distribution segment, was not tax deductible at the acquisition date. |
Following the acquisition date, the operating results of Playa Hotels were recognized on our condensed consolidated statements of income.
Unaudited Pro Forma Combined Financial Information
The following table presents the unaudited pro forma combined results of Hyatt and Playa Hotels for the three months ended March 31, 2025 as if the Playa Hotels Acquisition had occurred on January 1, 2024:
| | | | | | | | |
| Total revenues | | $ | 1,972 | |
| Net income attributable to Hyatt Hotels Corporation | | 58 | |
The unaudited pro forma combined financial information was based on the historical financial information of Hyatt and Playa Hotels, excluding Playa Hotels properties sold prior to the acquisition, and includes adjustments for the following factually supportable transactions, directly attributable to the acquisition:
•Elimination of historical related-party transactions between Hyatt and Playa Hotels that would be considered intercompany transactions;
•Incremental interest expense associated with the delayed draw term loan facility as well as the 2028 Notes and 2032 Notes, both as defined in Note 9, that were used to finance the acquisition, repay certain indebtedness of Playa Hotels and its subsidiaries in connection with the acquisition, and pay related fees and expenses as well as the removal of Playa Hotels' historical interest expense;
•Recognition of stock-based compensation expense related to Assumed Awards issued to continuing employees;
•Recognition of non-recurring transaction costs related to the acquisition;
•Removal of the unrealized gains and losses related to our previously-held ordinary shares in Playa Hotels historically recognized by Hyatt; and
•Tax effects of the acquisition as if Playa Hotels had been part of the combined company since January 1, 2024.
The unaudited pro forma combined financial information does not necessarily reflect what the combined company's financial condition or results of operations would have been had the transaction and the related financing occurred on January 1, 2024. The unaudited pro forma combined financial information also may not be useful in predicting the future financial condition and results of operations of the combined company following the acquisition. In addition, the unaudited pro forma combined financial information does not give effect to any cost savings, operating synergies, or revenue synergies that may result from the transaction, including the impact of the sale of the Playa Hotels Portfolio, or the costs to achieve any synergies.
7. INTANGIBLES, NET
| | | | | | | | | | | | | | | | | | | | | | | |
| | | March 31, 2026 |
| Weighted-average useful lives in years | | Gross carrying value | | Accumulated amortization | | Net carrying value |
| Management and hotel services agreement and franchise agreement intangibles | 21 | | $ | 1,506 | | | $ | (380) | | | $ | 1,126 | |
| Brand and other indefinite-lived intangibles | — | | | 807 | | | — | | | 807 | |
| Customer relationships intangibles | 11 | | 354 | | | (138) | | | 216 | |
| Other intangibles | 9 | | 28 | | | (13) | | | 15 | |
| Total | | | $ | 2,695 | | | $ | (531) | | | $ | 2,164 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2025 |
| | | | Gross carrying value | | Accumulated amortization | | Net carrying value |
| Management and hotel services agreement and franchise agreement intangibles | | | $ | 1,545 | | | $ | (367) | | | $ | 1,178 | |
| Brand and other indefinite-lived intangibles | | | 809 | | | — | | | 809 | |
| Customer relationships intangibles | | | 354 | | | (129) | | | 225 | |
| Other intangibles | | | 29 | | | (12) | | | 17 | |
| Total | | | $ | 2,737 | | | $ | (508) | | | $ | 2,229 | |
| | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | | |
| 2026 | | 2025 | | | | | |
| Amortization expense | $ | 33 | | | $ | 36 | | | | | | |
The following table summarizes impairment charges recognized in asset impairments on our condensed consolidated statements of income:
| | | | | | | | | | | | | |
| Three Months Ended March 31, | | |
| 2026 | | 2025 | | |
| Management and hotel services agreement and franchise agreement intangibles (1) | $ | 21 | | | $ | 4 | | | |
| | | | | |
| | | | | |
| (1) Primarily the result of contract terminations and recognized within our management and franchising segment. |
8. OTHER ASSETS
| | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 |
| Key money assets | $ | 1,125 | | | $ | 1,095 | |
AFS debt securities (Note 4) | 686 | | | 672 | |
Marketable securities held to fund rabbi trusts (Note 4) | 566 | | | 594 | |
HTM debt securities (Note 4) | 469 | | | 466 | |
Other trading securities (Note 4) | 111 | | | 111 | |
Indemnification asset (Note 4) | 59 | | | 59 | |
| Other | 125 | | | 128 | |
| Total | $ | 3,141 | | | $ | 3,125 | |
|
9. DEBT
| | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 |
| | | |
| | | |
| | | |
$600 million senior unsecured notes maturing in 2027—5.750% | $ | 600 | | | $ | 600 | |
$400 million senior unsecured notes maturing in 2028—4.375% | 399 | | | 399 | |
$500 million senior unsecured notes maturing in 2028—5.050% | 500 | | | 500 | |
$600 million senior unsecured notes maturing in 2029—5.250% | 600 | | | 600 | |
$450 million senior unsecured notes maturing in 2030—5.750% | 440 | | | 440 | |
$450 million senior unsecured notes maturing in 2031—5.375% | 450 | | | 450 | |
$500 million senior unsecured notes maturing in 2032—5.750% | 500 | | | 500 | |
$350 million senior unsecured notes maturing in 2034—5.500% | 350 | | | 350 | |
$400 million senior unsecured notes maturing in 2035—5.400% | 400 | | | 400 | |
| Variable rate term loan | 51 | | | 51 | |
| Floating average rate loan | 19 | | | 19 | |
| | | |
| Total debt excluding finance lease obligations, unamortized discounts, and unamortized deferred financing fees | 4,309 | | | 4,309 | |
| Finance lease obligations | 3 | | | 3 | |
| Unamortized discounts and deferred financing fees | (32) | | | (34) | |
| Total debt | 4,280 | | | 4,278 | |
| Less: current maturities of long-term debt | (605) | | | (6) | |
| Total long-term debt | $ | 3,675 | | | $ | 4,272 | |
| | | |
|
Senior Notes Issuances—During the three months ended March 31, 2025, we issued $500 million of 5.050% senior notes due 2028 at an issue price of 99.905% (the "2028 Notes") and $500 million of 5.750% senior notes due 2032 at an issue price of 99.936% (the "2032 Notes"). We received $990 million of net proceeds, after deducting $10 million of underwriting discounts and other offering expenses. We used the net proceeds to fund a portion of the purchase consideration for the Playa Hotels Acquisition (see Note 6). Interest is payable semi-annually on March 30 and September 30 of each year and commenced on September 30, 2025.
Senior Notes Repayment—During the three months ended March 31, 2025, we repaid the outstanding $450 million of 5.375% senior notes due 2025 (the "2025 Notes") at maturity for $460 million, inclusive of $10 million of accrued interest.
Revolving Credit Facility—During both the three months ended March 31, 2026 and March 31, 2025, we had no borrowings or repayments on our revolving credit facility in effect for each of the respective periods. At both March 31, 2026 and December 31, 2025, we had no balance outstanding. At March 31, 2026, we had $1,497 million of borrowing capacity available under our revolving credit facility, net of letters of credit outstanding (see Note 12).
Fair Value—The following table summarizes the fair value of our debt, which includes the senior unsecured notes above (collectively, the "Senior Notes") and other long-term debt and excludes finance lease obligations, unamortized discounts, and deferred financing fees:
| | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 |
| Level Two—Significant Other Observable Inputs | | | |
| Senior Notes | $ | 4,286 | | | $ | 4,349 | |
| | | |
| Level Three—Significant Unobservable Inputs | | | |
| Other long-term debt | 71 | | | 71 | |
10. OTHER LONG-TERM LIABILITIES
| | | | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 | | |
| Income taxes payable | $ | 584 | | | $ | 562 | | | |
Deferred compensation plans funded by rabbi trusts (Note 4 and Note 8) | 566 | | | 594 | | | |
Deferred income taxes (Note 11) | 214 | | | 216 | | | |
Guarantee liabilities (Note 12) | 180 | | | 186 | | | |
Contingent consideration liabilities (Note 12) | 145 | | | 177 | | | |
Self-insurance liabilities (Note 12) | 94 | | | 91 | | | |
| | | | | |
| Deferred consideration liability (1) | 45 | | | 45 | | | |
| Other | 95 | | | 85 | | | |
| Total | $ | 1,923 | | | $ | 1,956 | | | |
(1) At both March 31, 2026 and December 31, 2025, we had $23 million related to the deferred consideration liability recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets. The total deferred consideration liability was net of a $1 million and $2 million unamortized discount at March 31, 2026 and December 31, 2025, respectively. Accretion of the discount was recognized in interest expense on our condensed consolidated statements of income and was based on an imputed interest rate of 4.8%. | | |
11. TAXES
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | | | |
| 2026 | | 2025 | | | | | | | | |
| Provision for income taxes | $ | 16 | | | $ | 28 | | | | | | | | | |
Provision for income taxes decreased during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to a tax benefit recognized in 2026 related to the settlement of an assumed tax liability that was triggered by the Playa Hotels Acquisition. Additionally, the decrease was driven by tax expense recognized in 2025 related to a foreign tax audit.
We are subject to audits by federal, state, and foreign tax authorities. U.S. tax years 2021 through 2023 are currently under field exam. U.S. tax years 2009 through 2011 have been subject to a U.S. Tax Court case concerning the tax treatment of the loyalty program in which the Internal Revenue Service is asserting that loyalty program contributions are taxable income to the Company. The U.S. Court of Appeals for the Seventh Circuit recently vacated the Tax Court's decision in that case, as discussed below. U.S. tax years 2012 through 2020 are open pending the outcome of the proceedings for U.S. years 2009 through 2011.
The Tax Court issued an opinion on October 2, 2023 related to the loyalty program case and determined that the Company must recognize approximately $12 million in net taxable income for the tax years 2009 through 2011, but that the Company need not recognize approximately $228 million in net taxable income related to tax years that preceded 2009. The Tax Court entered its decision on September 13, 2024. The Company filed a Notice of Appeal to the U.S. Court of Appeals for the Seventh Circuit on December 9, 2024 to challenge the Tax Court's rulings that were not in the Company's favor. On April 22, 2026, the Seventh Circuit issued an opinion agreeing with certain of the Company's legal arguments, disagreeing with certain of the Tax Court's conclusions, vacating the decision of the Tax Court, and remanding the case to the Tax Court for further proceedings. If the Tax Court ultimately reaches a conclusion consistent with its prior opinion, the estimated income tax payment due for the subsequent tax years 2012 through 2026 would be $361 million, including $66 million of estimated interest, net of federal benefit. We believe we have an adequate uncertain tax liability recorded for this matter and believe that the ultimate outcome of this matter will not have a material effect on our consolidated financial position, results of operations, or liquidity.
At March 31, 2026 and December 31, 2025, total unrecognized tax benefits recorded in other long-term liabilities on our condensed consolidated balance sheets were $444 million and $503 million, respectively, of which $170 million and $244 million, respectively, would impact the effective tax rate, if recognized. The decrease was primarily related to the settlement of an assumed tax liability that was triggered by the Playa Hotels Acquisition.
Through a prior acquisition, we assumed an assessment of additional corporate income tax from the Mexican tax authorities, which was in the process of being appealed, primarily related to disallowed deductions taken on historical tax returns. Our request for appeal to a higher court for one of the tax years was denied on May 15, 2024, and the assessment was finalized. During the three months ended March 31, 2026, the Mexican Circuit Court issued rulings and disallowed deductions for the other tax year. At both March 31, 2026 and December 31, 2025, we had $37 million of tax liabilities recorded in connection with this matter, which included $24 million and $37 million, respectively, recorded in other long-term liabilities and $13 million and no amount, respectively, recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets.
Further, the Mexican tax authorities disallowed credits taken on historical tax returns and applied value added taxes to certain transactions. The Mexican Circuit Court ruling described above also resulted in a favorable outcome for one of the tax years with respect to this matter. On April 23, 2026, our appeal related to the other tax year was denied. We intend to appeal this decision to a higher court. We have not recorded a liability associated with the additional value added tax for the other tax year as we do not believe a loss is probable. At March 31, 2026, our maximum exposure is not expected to exceed $9 million.
During the year ended December 31, 2018, we received a notice from the Indian tax authorities assessing additional service tax on our operations in India. We appealed this decision and do not believe a loss is probable, and therefore, we have not recorded a liability in connection with this matter. At March 31, 2026, our maximum exposure is not expected to exceed $20 million, including $15 million of estimated penalties and interest.
12. COMMITMENTS AND CONTINGENCIES
In the ordinary course of business, we enter into various commitments, guarantees, surety and other bonds, and letter of credit agreements.
Commitments—At March 31, 2026, we are committed, under certain conditions, to lend, provide certain consideration to, or invest in various business ventures up to $670 million, net of any related letters of credit.
Performance Guarantees and Performance Cure Payments—Certain of our contractual agreements with third-party owners require us to guarantee payments to the owners if specified levels of operating profit are not achieved by their hotels. Except as described below, at March 31, 2026, our performance guarantees had $154 million of remaining maximum exposure and expire between 2027 and 2042.
Through acquisitions, we acquired certain management and hotel services agreements with performance guarantees based on annual performance levels and with expiration dates between 2027 and 2045. Contract terms within certain management and hotel services agreements limit our exposure, and therefore, we are unable to reasonably estimate our maximum potential future payments.
At March 31, 2026 and December 31, 2025, we had $104 million and $114 million, respectively, of total performance guarantee liabilities, which included $87 million and $95 million, respectively, recorded in other long-term liabilities and $17 million and $19 million, respectively, recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets.
Additionally, we enter into certain management and hotel services agreements where we have the right, but not an obligation, to make payments to certain third-party owners if their hotels do not achieve specified levels of operating profit. If we choose not to fund the shortfall, the hotel owner has the option to terminate the contract. At both March 31, 2026 and December 31, 2025, we had $4 million recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets related to these performance cure payments.
Debt Repayment Guarantees—We enter into various debt repayment guarantees, as summarized below, in order to assist third-party owners, franchisees, and unconsolidated hospitality ventures in obtaining third-party financing or to obtain more favorable borrowing terms.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Geographical region | | | Maximum potential future payments (1) | | | Maximum exposure net of recoverability from third parties (1), (2) | | | Other long-term liabilities recorded at March 31, 2026 | | | Other long-term liabilities recorded at December 31, 2025 | | | Year of guarantee expiration (3) |
| United States (4) | | | $ | 94 | | | | $ | 21 | | | | $ | 27 | | | | $ | 23 | | | | various, through 2030 |
| All foreign | | | 13 | | | | — | | | | 10 | | | | 5 | | | | various, through 2028 |
| Total | | | $ | 107 | | | | $ | 21 | | | | $ | 37 | | | | $ | 28 | | | | |
(1) Our maximum exposure is generally based on a specified percentage of the total principal due upon borrower default.
(2) We have agreements with our unconsolidated hospitality venture partners or the respective third-party owners or franchisees to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash or HTM debt security.
(3) Certain underlying debt agreements have extension periods which are not reflected in the year of guarantee expiration.
(4) Certain agreements give us the ability to assume control of the property if defined funding thresholds are met or if certain events occur.
At March 31, 2026, we are not aware, nor have we received any notification, that our third-party owners, franchisees, or unconsolidated hospitality ventures are not current on their debt service obligations where we have provided a debt repayment guarantee.
Other Guarantees—We agreed to guarantee up to $70 million of our hospitality venture partner's investment in the Unlimited Vacation Club (see Note 4). Additionally, we have provided indemnifications to third-party purchasers in certain dispositions and an unconsolidated hospitality venture for obligations the related entities may incur as a result of certain tax matters or uncertain tax positions. At March 31, 2026, the indemnifications for open tax matters had a maximum exposure of $126 million. At March 31, 2026 and December 31, 2025, we had $56 million and $63 million, respectively, of guarantee liabilities recorded in other long-term liabilities on our condensed consolidated balance sheets associated with these guarantees.
Guarantee Liabilities Fair Value—We estimated the fair value of guarantee liabilities, which are classified as Level Three in the fair value hierarchy, to be approximately $187 million and $180 million at March 31, 2026 and December 31, 2025, respectively.
Contingent Consideration Fair Value—As part of acquisitions, we have entered into various contingent consideration arrangements. At March 31, 2026, we had $352 million of potential future consideration remaining under these arrangements. However, we have one arrangement where we are unable to reasonably estimate our maximum potential future consideration remaining.
At March 31, 2026 and December 31, 2025, we had $145 million and $177 million, respectively, recorded in other long-term liabilities and no amount and $3 million, respectively, recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets related to contingent consideration. Our contingent consideration liabilities are remeasured at fair value on a recurring basis and are classified as Level Three in the fair value hierarchy. Changes in fair value were recognized in other income (loss), net on our condensed consolidated statements of income.
The following table summarizes the activity in our contingent consideration liabilities:
| | | | | | | | | | | | | |
| 2026 | | 2025 | | |
| Fair value at January 1 | $ | 180 | | | $ | 217 | | | |
Changes in fair value (Note 18) | (31) | | | (5) | | | |
| Payments | (3) | | | (3) | | | |
Foreign currency exchange, net (Note 18) | (1) | | | — | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Fair value at March 31 | $ | 145 | | | $ | 209 | | | |
| | | | | |
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Insurance—We obtain insurance for potential losses from general liability, property, automobile, aviation, environmental, workers' compensation, employment practices, crime, cyber, and other miscellaneous risks. A portion of these risks is retained through a U.S.-based and licensed captive insurance company that is a wholly owned subsidiary of Hyatt and generally insures our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. At both March 31, 2026 and December 31, 2025, we had $146 million of total reserves for losses in our captive insurance company, which included $52 million and $55 million, respectively, recorded in accrued expenses and other current liabilities and $94 million and $91 million, respectively, recorded in other long-term liabilities (see Note 10) on our condensed consolidated balance sheets.
Collective Bargaining Agreements—At March 31, 2026, approximately 22% of our U.S.-based employees were covered by various collective bargaining agreements, generally providing for basic pay rates, working hours, other conditions of employment, and orderly settlement of labor disputes. Certain employees are covered by union-sponsored, multi-employer pension and health plans pursuant to agreements between various unions and us. Generally, labor relations have been maintained in a normal and satisfactory manner, and we believe our employee relations are good.
Surety and Other Bonds—At March 31, 2026, surety and other bonds issued on our behalf were $155 million, which primarily related to our insurance programs, customer deposits associated with ALG Vacations, taxes, licenses, liens, and utilities for certain managed and franchised hotels.
Letters of Credit—At March 31, 2026, letters of credit outstanding on our behalf were $114 million, which primarily related to our ongoing operations, collateral for customer deposits associated with ALG Vacations, collateral for estimated insurance claims, and securitization of our performance under a certain debt repayment guarantee, which is only called on if the borrower defaults on its obligations. Of the letters of credit outstanding, $3 million reduces the available capacity under our revolving credit facility (see Note 9).
Capital Expenditures—As part of our ongoing business operations, expenditures are required to complete renovation projects that have been approved.
Other—We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender's recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof.
In conjunction with financing obtained for our unconsolidated hospitality ventures and certain managed or franchised properties, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions, actions of the other unconsolidated hospitality venture partners, or actions by the respective third-party owners or franchisees.
As a result of certain dispositions, we have agreed to provide customary indemnifications to third-party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed-upon contract terms expire.
We are subject to various claims and contingencies arising in the normal course of business, which are primarily related to lawsuits and taxes (see Note 11), as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. We record a liability when the loss is probable and reasonably estimable, and if the loss is recoverable from third parties, we record a receivable when the realization of the claim is probable. Based on information currently available, we do not expect the ultimate resolution of such claims and litigation to have a material effect on our condensed consolidated financial statements.
13. EQUITY
Accumulated Other Comprehensive Loss—The components of accumulated other comprehensive loss, net of tax impacts, were as follows:
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| Foreign currency translation adjustments | | AFS debt securities unrealized fair value adjustments | | Derivative instruments adjustments | | Pension liabilities adjustments | | Total |
| Balance at January 1, 2026 | $ | (136) | | | $ | 2 | | | $ | (16) | | | $ | 1 | | | $ | (149) | |
| Other comprehensive loss before reclassification | (3) | | | (4) | | | — | | | — | | | (7) | |
| Amounts reclassified from accumulated other comprehensive loss (1) | — | | | — | | | 1 | | | — | | | 1 | |
| Balance at March 31, 2026 | $ | (139) | | | $ | (2) | | | $ | (15) | | | $ | 1 | | | $ | (155) | |
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(1) Includes realized losses recognized in interest expense on our condensed consolidated statements of income related to the settlement of interest rate locks. We expect to reclassify $5 million of losses, net of insignificant tax impacts, related to the interest rate locks over the next 12 months. |
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| Foreign currency translation adjustments | | AFS debt securities unrealized fair value adjustments | | Derivative instruments adjustments | | Pension liabilities adjustments | | Total |
| Balance at January 1, 2025 | $ | (251) | | | $ | 2 | | | $ | (20) | | | $ | — | | | $ | (269) | |
| Other comprehensive income (loss) before reclassification | 48 | | | (4) | | | — | | | — | | | 44 | |
| Amounts reclassified from accumulated other comprehensive loss (1) | — | | | — | | | 1 | | | — | | | 1 | |
| Balance at March 31, 2025 | $ | (203) | | | $ | (2) | | | $ | (19) | | | $ | — | | | $ | (224) | |
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| (1) Includes realized losses recognized in interest expense on our condensed consolidated statements of income related to the settlement of interest rate locks. |
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Share Repurchases—On May 8, 2024, our board of directors authorized repurchases of up to $1,000 million of our common stock. These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan or an accelerated share repurchase ("ASR") transaction, at prices we deem appropriate and subject to market conditions, applicable law, and other factors deemed relevant in our sole discretion. The common stock repurchase program applies to our Class A and Class B common stock. The share repurchase program does not obligate us to repurchase any dollar amount or number of shares, and the program may be suspended or discontinued at any time and does not have an expiration date.
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| Three Months Ended March 31, |
| 2026 | | 2025 |
| Total number of shares repurchased | 840,249 | | | 1,078,511 | |
| Weighted-average price per share | $ | 160.66 | | | $ | 138.50 | |
| Aggregate purchase price (1) | $ | 135 | | | $ | 149 | |
(1) Excludes related insignificant expenses. |
The shares of Class A common stock repurchased in the open market were retired and returned to the status of authorized and unissued shares. At March 31, 2026, we had approximately $543 million remaining under the share repurchase authorization.
Dividends—The following tables summarize dividends declared to Class A and Class B stockholders of record:
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| Three Months Ended March 31, | | |
| 2026 | | 2025 | | | | |
| Class A common stock | $ | 6 | | | $ | 6 | | | | | |
| Class B common stock | 8 | | | 8 | | | | | |
| Total cash dividends declared | $ | 14 | | | $ | 14 | | | | | |
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| Date declared | | Dividend per share amount for Class A and Class B | | Date of record | | Date paid |
| February 13, 2026 | | $ | 0.15 | | | March 2, 2026 | | March 12, 2026 |
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| February 13, 2025 | | $ | 0.15 | | | February 28, 2025 | | March 12, 2025 |
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14. STOCK-BASED COMPENSATION
As part of our Long-Term Incentive Plan (as amended from time to time, "LTIP"), we award time-vested stock appreciation rights ("SARs"), RSUs, and performance-vested restricted stock units ("PSUs") to certain employees and non-employee directors. In addition, non-employee directors may elect to receive their annual fees and/or annual equity retainers in the form of shares of our Class A common stock. The Assumed Awards (see Note 6) continue to be governed by the terms of the Playa Hotels Plan.
Compensation expense and unearned compensation presented below exclude amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as these expenses have been, and will continue to be, reimbursed by our third-party owners and are recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income. Stock-based compensation expense recognized in general and administrative expenses, distribution expenses, and transaction and integration costs on our condensed consolidated statements of income related to our awards was as follows:
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| Three Months Ended March 31, |
| 2026 | | 2025 |
| SARs | $ | 6 | | | $ | 13 | |
| RSUs | 17 | | | 17 | |
| PSUs | 5 | | | 1 | |
| Total | $ | 28 | | | $ | 31 | |
SARs—During the three months ended March 31, 2026, we granted 148,405 SARs to employees with a weighted-average grant date fair value of $64.86. During the three months ended March 31, 2025, we granted 302,439 SARs to employees with a weighted-average grant date fair value of $53.08.
RSUs—During the three months ended March 31, 2026, we granted 356,685 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $145.13. During the three months ended March 31, 2025, we granted 402,172 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $122.68.
PSUs—During the three months ended March 31, 2026, we granted 10,392 PSUs to an employee with a weighted-average grant date fair value of $144.34. During the three months ended March 31, 2025, we granted 61,714 PSUs to employees with a weighted-average grant date fair value of $146.00.
Unearned Compensation—Our total unearned compensation for our stock-based compensation programs at March 31, 2026 was $5 million for SARs, $58 million for RSUs, and $11 million for PSUs, which will be recognized in general and administrative expenses, distribution expenses, and transaction and integration costs on our condensed consolidated statements of income over a weighted-average period of three years with respect to SARs, three years with respect to RSUs, and one year with respect to PSUs.
15. RELATED-PARTY TRANSACTIONS
In addition to those included elsewhere in the Notes to our condensed consolidated financial statements, related-party transactions entered into by us are summarized as follows:
Equity Method Investments—We have certain investments in unconsolidated hospitality ventures accounted for under the equity method, with ownership interests ranging from 20% to 50%. These entities own, operate, manage, or franchise properties or other hospitality-related businesses, through which we earn management, franchise, license, or royalty fees. We may also provide loans or guarantees to these entities (see Note 4, Note 5, and Note 12) and recognize related income. The following tables summarize amounts recorded on our condensed consolidated financial statements related to these investments:
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| March 31, 2026 | | December 31, 2025 |
| Receivables, net | $ | 46 | | | $ | 44 | |
| Financing receivables, net | 109 | | | 124 | |
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| Three Months Ended March 31, | | |
| 2026 | | 2025 | | | | |
| Base management fees | $ | 4 | | | $ | 4 | | | | | |
| Incentive management fees | 3 | | | 3 | | | | | |
| Franchise and other fees | 19 | | | 17 | | | | | |
| Other income (loss), net (1) | 1 | | | 1 | | | | | |
| (1) Includes income recognized related to loans and guarantees. | | | | |
In addition to the above fees, we provide services related to sales and revenue management, marketing, global care centers (including reservation and customer support), digital and technology, and digital media (collectively, "system-wide services") on behalf of owners of managed and franchised properties and administer the loyalty program for the benefit of Hyatt's portfolio of properties. These expenses have been, and will continue to be, reimbursed by our third-party owners and franchisees and are recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income.
Legal Services—A partner in a law firm that provided services to us throughout 2026 and 2025 is the brother-in-law of our former Executive Chairman. During the three months ended March 31, 2026 and March 31, 2025, we incurred $1 million and $14 million, respectively, of legal fees with this firm. At March 31, 2026 and December 31, 2025, we had $2 million and $1 million, respectively, due to the law firm.
Class B Share Conversion—During the three months ended March 31, 2026 and March 31, 2025, 12,000 shares and 19,001 shares, respectively, of Class B common stock were converted on a share-for-share basis into shares of Class A common stock, $0.01 par value per share. The shares of Class B common stock that were converted into shares of Class A common stock have been retired, thereby reducing the shares of Class B common stock authorized and outstanding.
16. 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 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 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 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 three months ended March 31, 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:
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| Three Months Ended March 31, 2026 |
| Management and franchising | | Owned and leased | | Distribution | | Segment Total | | Eliminations | | Total |
| Base management fees | $ | 133 | | | $ | — | | | $ | — | | | $ | 133 | | | $ | (6) | | | $ | 127 | |
| Incentive management fees | 87 | | | — | | | — | | | 87 | | | (1) | | | 86 | |
| Franchise and other fees | 122 | | | — | | | — | | | 122 | | | (2) | | | 120 | |
| Gross fees | 342 | | | — | | | — | | | 342 | | | (9) | | | 333 | |
| Rooms and packages | — | | | 146 | | | — | | | 146 | | | (4) | | | 142 | |
| Food and beverage | — | | | 48 | | | — | | | 48 | | | — | | | 48 | |
| Other | — | | | 29 | | | — | | | 29 | | | — | | | 29 | |
| Owned and leased | — | | | 223 | | | — | | | 223 | | | (4) | | | 219 | |
| Distribution | — | | | — | | | 274 | | | 274 | | | — | | | 274 | |
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| Segment revenues | 342 | | | 223 | | | 274 | | | 839 | | | (13) | | | 826 | |
| Contra revenue | (23) | | | — | | | — | | | (23) | | | — | | | (23) | |
| Revenues for reimbursed costs | 945 | | | — | | | — | | | 945 | | | — | | | 945 | |
| Total revenues | $ | 1,264 | | | $ | 223 | | | $ | 274 | | | $ | 1,761 | | | $ | (13) | | | $ | 1,748 | |
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| Intersegment revenues | $ | 9 | | | $ | 4 | | | $ | — | | | $ | 13 | | | | | |
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| Three Months Ended March 31, 2026 | | | |
| Management and franchising | | Owned and leased | | Distribution | | | | | |
| Segment revenues | $ | 342 | | | $ | 223 | | | $ | 274 | | | | | | |
| Significant segment expenses: | | | | | | | | | | |
| Adjusted general and administrative expenses | (78) | | | (2) | | | — | | | | | | |
| Owned and leased expenses (1) | — | | | (211) | | | — | | | | | | |
| Distribution expenses (2) | — | | | — | | | (247) | | | | | | |
| Other segment items (3) | — | | | — | | | 2 | | | | | | |
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| Segment Adjusted EBITDA | $ | 264 | | | $ | 10 | | | $ | 29 | | | | | | |
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| (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) Includes stock-based compensation expense recognized in distribution expenses. | | | |
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| Three Months Ended March 31, 2025 |
| Management and franchising | | Owned and leased | | Distribution | | Segment Total | | Eliminations | | Total |
| Base management fees | $ | 120 | | | $ | — | | | $ | — | | | $ | 120 | | | $ | (6) | | | $ | 114 | |
| Incentive management fees | 77 | | | — | | | — | | | 77 | | | (1) | | | 76 | |
| Franchise and other fees | 119 | | | — | | | — | | | 119 | | | (2) | | | 117 | |
| Gross fees | 316 | | | — | | | — | | | 316 | | | (9) | | | 307 | |
| Rooms and packages | — | | | 148 | | | — | | | 148 | | | (4) | | | 144 | |
| Food and beverage | — | | | 46 | | | — | | | 46 | | | — | | | 46 | |
| Other | — | | | 29 | | | — | | | 29 | | | — | | | 29 | |
| Owned and leased | — | | | 223 | | | — | | | 223 | | | (4) | | | 219 | |
| Distribution | — | | | — | | | 315 | | | 315 | | | — | | | 315 | |
| Other revenues | 11 | | | — | | | — | | | 11 | | | — | | | 11 | |
| Segment revenues | 327 | | | 223 | | | 315 | | | 865 | | | (13) | | | 852 | |
| Contra revenue | (20) | | | — | | | — | | | (20) | | | — | | | (20) | |
| Revenues for reimbursed costs | 886 | | | — | | | — | | | 886 | | | — | | | 886 | |
| Total revenues | $ | 1,193 | | | $ | 223 | | | $ | 315 | | | $ | 1,731 | | | $ | (13) | | | $ | 1,718 | |
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| Intersegment revenues | $ | 9 | | | $ | 4 | | | $ | — | | | $ | 13 | | | | | |
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| Management and franchising | | Owned and leased | | Distribution | | |
| Segment revenues | $ | 327 | | | $ | 223 | | | $ | 315 | | | |
| Significant segment expenses: | | | | | | | |
| Adjusted general and administrative expenses | (67) | | | (2) | | | — | | | |
| Owned and leased expenses (1) | — | | | (206) | | | — | | | |
| Distribution expenses (2) | — | | | — | | | (268) | | | |
| Other segment items (3) | (24) | | | — | | | 2 | | | |
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| Segment Adjusted EBITDA | $ | 236 | | | $ | 15 | | | $ | 49 | | | |
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| (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) 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. Distribution includes stock-based compensation expense recognized in distribution expenses. |
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
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| Management and franchising | | | | | $ | 264 | | | $ | 236 | |
| Owned and leased | | | | | 10 | | | 15 | |
| Distribution | | | | | 29 | | | 49 | |
| Segment Adjusted EBITDA | | | | | 303 | | | 300 | |
| Unallocated overhead expenses | | | | | (37) | | | (40) | |
| Eliminations | | | | | — | | | 1 | |
| Contra revenue | | | | | (23) | | | (20) | |
| Revenues for reimbursed costs | | | | | 945 | | | 886 | |
| Reimbursed costs | | | | | (963) | | | (902) | |
Stock-based compensation expense (1) | | | | | (27) | | | (31) | |
| Transaction and integration costs | | | | | (16) | | | (23) | |
| Depreciation and amortization | | | | | (76) | | | (80) | |
| Equity earnings (losses) from unconsolidated hospitality ventures | | | | | (13) | | | (12) | |
| Interest expense | | | | | (65) | | | (66) | |
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| Asset impairments | | | | | (21) | | | (4) | |
Other income (loss), net | | | | | 50 | | | 43 | |
| Income before income taxes | | | | | $ | 57 | | | $ | 52 | |
(1) Includes amounts recognized in general and administrative expenses and distribution expenses; excludes amounts recognized in transaction and integration costs (see Note 14). |
17. EARNINGS PER SHARE
The following table presents the calculation of basic and diluted earnings per Class A and Class B share:
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| | | Three Months Ended March 31, |
| | | | | 2026 | | 2025 |
| Numerator: | | | | | | | |
| Net income | | | | | $ | 41 | | | $ | 24 | |
| Net income attributable to noncontrolling interests | | | | | $ | 3 | | | $ | 4 | |
| Net income attributable to Hyatt Hotels Corporation | | | | | $ | 38 | | | $ | 20 | |
| Denominator: | | | | | | | |
| Basic weighted-average shares outstanding | | | | | 94,482,303 | | | 95,980,414 | |
| Stock-based compensation | | | | | 2,398,692 | | | 2,083,442 | |
| Diluted weighted-average shares outstanding | | | | | 96,880,995 | | | 98,063,856 | |
| Basic Earnings Per Class A and Class B Share: | | | | | | | |
| Net income | | | | | $ | 0.44 | | | $ | 0.24 | |
| Net income attributable to noncontrolling interests | | | | | $ | 0.03 | | | $ | 0.04 | |
| Net income attributable to Hyatt Hotels Corporation | | | | | $ | 0.41 | | | $ | 0.20 | |
| Diluted Earnings Per Class A and Class B Share: | | | | | | | |
| Net income | | | | | $ | 0.43 | | | $ | 0.23 | |
| Net income attributable to noncontrolling interests | | | | | $ | 0.03 | | | $ | 0.04 | |
| Net income attributable to Hyatt Hotels Corporation | | | | | $ | 0.40 | | | $ | 0.19 | |
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The calculations of diluted earnings per Class A and Class B share do not include the following shares of Class A common stock assumed to be issued as stock-settled SARs and RSUs because they are anti-dilutive.
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| | | Three Months Ended March 31, |
| | | | | 2026 | | 2025 |
| SARs | | | | | 9,300 | | | 3,700 | |
| RSUs | | | | | 300 | | | 1,700 | |
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18. OTHER INCOME (LOSS), NET
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| | | Three Months Ended March 31, |
| | | | | 2026 | | 2025 |
| Interest income | | | | | $ | 32 | | | $ | 35 | |
Contingent consideration liabilities fair value adjustments (Note 12) | | | | | 31 | | | 5 | |
Guarantee amortization income (Note 12) | | | | | 16 | | | 13 | |
Gains (losses), net on marketable securities (Note 4) | | | | | — | | | 10 | |
| Restructuring costs | | | | | (3) | | | (6) | |
Guarantee expense (Note 12) | | | | | (4) | | | (6) | |
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Credit loss (provisions) reversals, net (Note 4 and Note 5) | | | | | (14) | | | (10) | |
| Other, net | | | | | (8) | | | 2 | |
| Other income (loss), net | | | | | $ | 50 | | | $ | 43 | |
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