Hyatt Hotels Corporation H is scheduled to report second-quarter 2026 results on July 30, before the opening bell.
H’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, and missed once, the average surprise being 52.7%.
Trend in the Estimate Revision of H
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at 90 cents, indicating growth of 32.4% from 68 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.82 billion, suggesting an increase of 0.4% from the prior-year quarter’s figure.
Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote
Let's look at how things have shaped up in the quarter.
Factors Likely to Shape Hyatt’s Quarterly Results
Hyatt’s second-quarter 2026 performance is likely to have benefited from resilient premium-leisure demand, improving U.S. business trends, healthy group bookings and continued momentum across key international markets. Management expects system-wide RevPAR growth of around 3% for the quarter, reflecting solid growth in the United States, the start of FIFA World Cup-related demand in June and continued international strength, excluding the Middle East.
Leisure-transient demand is expected to have remained an important growth driver in the quarter under review. Hyatt entered the period with continued strength among higher-income travelers, particularly across its luxury and full-service brands. Management indicated that it had not observed meaningful weakness among premium customers, which is likely to have supported RevPAR in the second quarter.
Group and business-transient demand are likely to have aided U.S. performance. Hyatt expects U.S. RevPAR to increase between 2% and 3% in the quarter to be reported, supported partly by FIFA World Cup-related demand beginning in June. Group pace for U.S. full-service hotels was up in the mid-single digits for the remainder of 2026, while World Cup host markets were experiencing particularly strong group-booking trends. Easier comparisons across select-service hotels are likely to have supported domestic RevPAR growth.
The company’s fee-driven business model is expected to have supported earnings in the quarter under review. Hyatt anticipates gross fees to increase in the mid-single-digit range, supported by favorable RevPAR trends, hotel openings and continued expansion of its managed and franchised portfolio. Our model predicts second-quarter gross fees to rise 6.7% year over year to $321.1 million.
International markets are likely to have remained an important growth catalyst. Greater China and the broader Asia-Pacific region entered the to-be-reported quarter with strong momentum, supported by domestic leisure activity, inbound travel and healthy demand trends. Europe is also expected to have remained resilient, particularly across Hyatt’s full-service and luxury portfolio.
However, second-quarter performance is likely to have been tempered by geopolitical disruption in the Middle East and weaker demand in Mexico. Management expects the Middle East impact to be more pronounced in the quarter before improving sequentially during the second half. Security concerns in Mexico and continued hotel closures in Jamaica are also expected to have pressured the Distribution segment. Our model predicts distribution revenues to decline 13.4% year over year to $226.9 million in the quarter under review. Hyatt expects the Mexico disruption to reduce second-quarter Distribution-segment adjusted EBITDA by approximately $15 million.
What Our Model Says About H Stock
Our proven model does not conclusively predict an earnings beat for Hyatt this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
H’s Earnings ESP: Hyatt has an Earnings ESP of -5.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hyatt’s Zacks Rank: The company currently has a Zacks Rank #3.
Stocks Poised to Beat on Earnings
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat.
Life Time Group Holdings, Inc. LTH has an Earnings ESP of +1.12% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Life Time Group is expected to register a 21.6% increase in earnings for the to-be-reported quarter. LTH reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 10.9%.
Marriott International, Inc. MAR currently has an Earnings ESP of +1.88% and a Zacks Rank of 3.
Marriott’s earnings for the to-be-reported quarter are expected to increase 15.5%. MAR reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 1.5%.
Cinemark Holdings, Inc. CNK currently has an Earnings ESP of +6.4% and a Zacks Rank of 3.
Cinemark’s earnings for the to-be-reported quarter are expected to increase 57.1%. CNK reported lower-than-expected earnings in each of the trailing four quarters, the average miss being negative 20.4%.
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This article originally published on Zacks Investment Research (zacks.com).