Hyatt Integrates Credit Card Programs into World of Hyatt Loyalty Program, Boosting Adjusted EBITDA Forecast
CHICAGO – Hyatt Hotels Corporation announced today the integration of its credit card programs into the World of Hyatt loyalty program. This strategic move is expected to positively impact the company’s financial performance, with a projected Adjusted EBITDA contribution of $50 million in the current period, increasing to $90 million and $105 million in subsequent periods.
The change alters how revenue and costs associated with these programs are recognized. Previously reported within other revenues, direct costs, and Adjusted G&A expenses, these figures will now be reflected within revenues for reimbursed costs on Hyatt’s condensed consolidated statements of income. License fee revenues will continue to be reported under franchise and other fees. This integration aims to streamline financial reporting and better reflect the value of the credit card partnerships within the broader loyalty ecosystem.
Hyatt defines Adjusted EBITDA related to these programs as the economics of the credit card programs and similar third-party relationships. The company notes it is not providing a full reconciliation of net income to Adjusted EBITDA for these programs due to the unpredictable nature of certain adjustments. A reconciliation of consolidated net income attributable to Hyatt Hotels Corporation to Adjusted EBITDA is available on the “Financials” section of the Company’s Investor Relations website.
The company cautions that its estimates are subject to change based on factors outside of its control and that actual results may vary.
investors may contact Adam Rohman (adam.rohman@hyatt.com) or Ryan Nuckols (ryan.nuckols@hyatt.com) with inquiries. Media contact is Steve Snart (steve.snart@hyatt.com).
