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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM is our 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 property portfolio, (ii) our co-branded credit card programs, and (iii) other hospitality-related businesses, including the Unlimited Vacation Club following the UVC Transaction. 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, and for purposes of segment Adjusted EBITDA, includes our pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA, primarily based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany management and franchise fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Intersegment revenues relate to promotional 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. Prior to the UVC Transaction, this segment also included earnings from a paid membership program offering benefits exclusively at certain all-inclusive resorts primarily in Latin America and the Caribbean. 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.
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 and our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA, primarily based on our ownership percentage of each owned and leased venture, adjusted to exclude amortization of management and hotel services agreement and franchise agreement assets ("key money assets") and performance cure payments, which constitute payments to customers ("Contra revenue"); revenues for reimbursed costs; stock-based compensation expense; transaction and integration costs; depreciation and amortization; reimbursed costs that we intend to recover over the long term; 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 exclude the impact of deferred compensation plans funded through rabbi trusts and stock-based compensation expense. Adjusted general and administrative expenses assist us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis.
The following tables present revenues disaggregated by the nature of the product or service and by segment and a reconciliation of segment revenues to segment Adjusted EBITDA:
Three Months Ended June 30, 2025
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$120 $— $— $120 $(7)$113 
Incentive management fees64 — — 64 (2)62 
Franchise and other fees128 — — 128 (2)126 
Gross fees312 — — 312 (11)301 
Rooms and packages— 223 — 223 (5)218 
Food and beverage— 53 — 53 — 53 
Other — 33 — 33 — 33 
Owned and leased— 309 — 309 (5)304 
Distribution— — 262 262 — 262 
Other revenues11 — — 11 — 11 
Segment revenues323 309 262 894 (16)878 
Contra revenue(15)— — (15)— (15)
Revenues for reimbursed costs945 — — 945 — 945 
Total revenues$1,253 $309 $262 $1,824 $(16)$1,808 
Intersegment revenues$11 $5 $— $16 
Six Months Ended June 30, 2025
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$240 $— $— $240 $(13)$227 
Incentive management fees141 — — 141 (3)138 
Franchise and other fees247 — — 247 (4)243 
Gross fees628 — — 628 (20)608 
Rooms and packages— 371 — 371 (9)362 
Food and beverage— 99 — 99 — 99 
Other — 62 — 62 — 62 
Owned and leased— 532 — 532 (9)523 
Distribution— — 577 577 — 577 
Other revenues22 — — 22 — 22 
Segment revenues650 532 577 1,759 (29)1,730 
Contra revenue(35)— — (35)— (35)
Revenues for reimbursed costs1,831 — — 1,831 — 1,831 
Total revenues$2,446 $532 $577 $3,555 $(29)$3,526 
Intersegment revenues$20 $9 $— $29 
Three Months Ended June 30, 2025
Management and franchisingOwned and leasedDistribution
Segment revenues$323 $309 $262 
Significant segment expenses:
Adjusted general and administrative expenses(65)(3)— 
Owned and leased expenses (1)— (261)— 
Distribution expenses (2)— — (220)
Other segment items:
Other income (expenses) (3)(20)2 1 
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA— 17 — 
Segment Adjusted EBITDA$238 $64 $43 
(1) Includes intercompany management and franchise fee expenses paid to our management and franchising segment and promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs, both of which are eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
(3) Management and franchising primarily includes direct costs associated with our co-branded credit card programs recognized in other direct costs. Owned and leased includes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts and stock-based compensation expense recognized in owned and leased expenses. Distribution includes stock-based compensation expense recognized in distribution expenses.
Six Months Ended June 30, 2025
Management and franchisingOwned and leasedDistribution
Segment revenues$650 $532 $577 
Significant segment expenses:
Adjusted general and administrative expenses(132)(5)— 
Owned and leased expenses (1)— (467)— 
Distribution expenses (2)— — (488)
Other segment items:
Other income (expenses) (3)(44)2 3 
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA— 29 — 
Segment Adjusted EBITDA$474 $91 $92 
(1) Includes intercompany management and franchise fee expenses paid to our management and franchising segment and promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs, both of which are eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
(3) Management and franchising primarily includes direct costs associated with our co-branded credit card programs recognized in other direct costs. Owned and leased includes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts and stock-based compensation expense recognized in owned and leased expenses. Distribution includes stock-based compensation expense recognized in distribution expenses.
Three Months Ended June 30, 2024
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$109 $— $— $109 $(9)$100 
Incentive management fees57 — — 57 (3)54 
Franchise and other fees122 — — 122 (1)121 
Gross fees288 — — 288 (13)275 
Rooms and packages— 203 — 203 (7)196 
Food and beverage— 81 — 81 — 81 
Other— 37 — 37 — 37 
Owned and leased— 321 — 321 (7)314 
Distribution— — 278 278 — 278 
Other revenues10 — — 10 — 10 
Segment revenues298 321 278 897 (20)877 
Contra revenue(16)— — (16)— (16)
Revenues for reimbursed costs842 — — 842 — 842 
Total revenues$1,124 $321 $278 $1,723 $(20)$1,703 
Intersegment revenues$13 $7 $— $20 
Six Months Ended June 30, 2024
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$216 $— $— $216 $(18)$198 
Incentive management fees125 — — 125 (7)118 
Franchise and other fees224 — — 224 (3)221 
Gross fees565 — — 565 (28)537 
Rooms and packages— 397 — 397 (14)383 
Food and beverage— 164 — 164 — 164 
Other— 76 — 76 — 76 
Owned and leased— 637 — 637 (14)623 
Distribution— — 597 597 — 597 
Other revenues19 — 26 45 — 45 
Segment revenues584 637 623 1,844 (42)1,802 
Contra revenue(29)— — (29)— (29)
Revenues for reimbursed costs1,644 — — 1,644 — 1,644 
Total revenues$2,199 $637 $623 $3,459 $(42)$3,417 
Intersegment revenues$28 $14 $— $42 
Three Months Ended June 30, 2024
Management and franchisingOwned and leasedDistribution
Segment revenues$298 $321 $278 
Significant segment expenses:
Adjusted general and administrative expenses(60)(2)— 
Owned and leased expenses (1)— (257)— 
Distribution expenses (2)— — (236)
Other segment items:
Other income (expenses) (3)(16)— 1 
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA— 17 — 
Segment Adjusted EBITDA$222 $79 $43 
(1) Includes intercompany management fee expenses paid to our management and franchising segment and promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs, both of which are eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
(3) Management and franchising primarily includes direct costs associated with our co-branded credit card programs recognized in other direct costs. Owned and leased includes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts. Distribution includes stock-based compensation expense recognized in distribution expenses.
Six Months Ended June 30, 2024
Management and franchisingOwned and leasedDistribution
Segment revenues$584 $637 $623 
Significant segment expenses:
Adjusted general and administrative expenses(123)(5)(6)
Owned and leased expenses (1)— (527)— 
Distribution expenses (2)— — (512)
Other segment items:
Other income (expenses) (3)(36)2 (23)
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA— 34 — 
Segment Adjusted EBITDA$425 $141 $82 
(1) Includes intercompany management fee expenses paid to our management and franchising segment and promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs, both of which are eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
(3) Management and franchising primarily includes direct costs associated with our co-branded credit card programs recognized in other direct costs. Owned and leased includes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts. Distribution includes stock-based compensation expense recognized in distribution expenses and the paid membership program prior to the UVC Transaction recognized in other direct costs.
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Management and franchising$238 $222 $474 $425 
Owned and leased64 79 91 141 
Distribution43 43 92 82 
Segment Adjusted EBITDA345 344 657 648 
Unallocated overhead expenses(42)(37)(82)(83)
Eliminations— — 1 1 
Contra revenue(15)(16)(35)(29)
Revenues for reimbursed costs945 842 1,831 1,644 
Reimbursed costs(949)(853)(1,851)(1,689)
Stock-based compensation expense (1)
(14)(15)(45)(46)
Transaction and integration costs(82)(10)(105)(18)
Depreciation and amortization(82)(84)(162)(176)
Equity earnings (losses) from unconsolidated hospitality ventures6 (30)(6)45 
Interest expense(74)(40)(140)(78)
Gains (losses) on sales of real estate and other
(2)350 (2)753 
Asset impairments(10)— (14)(17)
Other income (loss), net
29 28 72 82 
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA(17)(17)(29)(34)
Income before income taxes$38 $462 $90 $1,003 
(1) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses and excludes amounts recognized in transaction and integration costs (see Note 15).