Hyatt Hotels Corporation H is scheduled to report third-quarter 2026 results on Oct. 29, 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 58.1%.
Trend in the Estimate Revision of H
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 69 cents, indicating growth of 330% year over year.
For revenues, the consensus mark is pinned at $1.77 billion, implying a 1% decrease from the prior-year quarter.
Let's look at how things have shaped up in the quarter.
Factors Likely to Shape Hyatt’s Quarterly Results
Hyatt’s third-quarter 2026 top line is expected to have been impacted by weakness in its all-inclusive resort business and regional operating challenges. During its second-quarter earnings call, management indicated that net package revenue per available room (RevPAR) is expected to decline moderately year over year in the third quarter. Booking trends at Hyatt's all-inclusive resorts in Mexico have been improving sequentially but remained below expectations following a security incident earlier in 2026.
Lower flight capacity has also constrained demand, while the company expects the recovery in travel spending among customers seeking four-star properties to take time. These challenges might have offset strength in other parts of Hyatt's portfolio.
The company's top line is also likely to have encountered headwinds from geopolitical disruptions and a less favorable contribution from certain parts of its portfolio. Hyatt expects hotel revenues in the Middle East to have remained significantly below the prior-year level because of the ongoing regional conflict. Management expects this can reduce full-year fees by approximately $10 million. In addition, temporary hotel closures in Jamaica following Hurricane Melissa and softer demand in Mexico have been weighing on the distribution business.
The company has also experienced some portfolio-related room-count reductions, including adjustments related to Playa Hotels and turnover in its UrCove and Lindner portfolios. Although Hyatt expects third-quarter global RevPAR growth to be toward the lower end of its full-year outlook, continued expansion in the asset-light business might have supported gross fee growth in the high single digits.
Our model predicts net fee revenues to increase 25.6%, whereas Owned and Leased as well as Distribution revenues are expected to decline 34.6% and 38.5%, year over year, respectively.
Hyatt's bottom line is likely to have improved, supported by continued growth in its core fee-based business, a larger hotel portfolio and operating efficiencies. Management highlighted strong demand for its luxury and lifestyle brands, a record development pipeline of approximately 154,000 rooms and growing loyalty-program membership, all of which support fee generation.
The company also expects its asset-light model to translate fee growth into higher earnings and cash flow with relatively modest incremental capital requirements. Furthermore, management indicated that distribution-related pressure was concentrated in the first half of 2026 and expected some improvement in the second half. These factors might have supported adjusted EBITDA growth and stronger profitability, even as regional demand challenges limit the pace of revenue growth.
Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote
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 is not the case here.
H’s Earnings ESP: Hyatt has an Earnings ESP of -10.57% at present. 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.
Marriott International, Inc. MAR currently has an Earnings ESP of +1.56% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
MAR’s earnings for the to-be-reported quarter are expected to increase 15.4%. Marriott reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 2.5%.
Choice Hotels International, Inc. CHH has an Earnings ESP of +0.19% and a Zacks Rank of 3 at present.
For the to-be-reported quarter, Choice Hotels is expected to register an 8.1% increase in earnings. Choice Hotels reported better-than-expected earnings in the trailing two out of the four quarters and missed twice, the average surprise being negative 4.8%.
Norwegian Cruise Line Holdings Ltd. NCLH currently has an Earnings ESP of +2.26% and a Zacks Rank of 3.
For the to-be-reported quarter, Norwegian Cruise’s earnings are expected to decrease 23.33%. Norwegian Cruise reported better-than-expected earnings in each of the trailing four quarters, with the average surprise being 20%.
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Hyatt Hotels Corporation (H): Free Stock Analysis Report
Marriott International, Inc. (MAR): Free Stock Analysis Report
Choice Hotels International, Inc. (CHH): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).