Hyatt Hotels CorpH

Hyatt Hotels Corp Segments Disclosure

10-KFiled Feb 13, 20268 min read
SEGMENT AND GEOGRAPHIC INFORMATION
Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the 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 and franchise 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 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. 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 contra revenue; 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:
Year Ended December 31, 2025
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$473 $— $— $473 $(27)$446 
Incentive management fees280 — — 280 (8)272 
Franchise and other fees497 — — 497 (17)480 
Gross fees1,250 — — 1,250 (52)1,198 
Rooms and packages— 1,038 — 1,038 (22)1,016 
Food and beverage— 215 — 215 — 215 
Other — 144 — 144 — 144 
Owned and leased— 1,397 — 1,397 (22)1,375 
Distribution— — 946 946 — 946 
Other revenues38 — — 38 1 39 
Segment revenues1,288 1,397 946 3,631 (73)3,558 
Contra revenue(86)— — (86)— (86)
Revenues for reimbursed costs3,629 — — 3,629 — 3,629 
Total revenues$4,831 $1,397 $946 $7,174 $(73)$7,101 
Intersegment revenues$51 $22 $— $73 
Year Ended December 31, 2025
Management and franchisingOwned and leasedDistribution
Segment revenues$1,288 $1,397 $946 
Significant segment expenses:
Adjusted general and administrative expenses(275)(10)— 
Owned and leased expenses (1)— (1,189)— 
Distribution expenses (2)— — (829)
Other segment items:
Other (3)(73)5 3 
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA— 56 — 
Segment Adjusted EBITDA$940 $259 $120 
(1) Includes intercompany management and franchise 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 primarily 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. 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.
Year Ended December 31, 2024
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$432 $— $— $432 $(33)$399 
Incentive management fees252 — — 252 (10)242 
Franchise and other fees465 — — 465 (7)458 
Gross fees1,149 — — 1,149 (50)1,099 
Rooms and packages— 777 — 777 (23)754 
Food and beverage— 279 — 279 — 279 
Other — 141 — 141 — 141 
Owned and leased— 1,197 — 1,197 (23)1,174 
Distribution— — 1,023 1,023 — 1,023 
Other revenues42 — 26 68 1 69 
Segment revenues1,191 1,197 1,049 3,437 (72)3,365 
Contra revenue(69)— — (69)— (69)
Revenues for reimbursed costs3,352 — — 3,352 — 3,352 
Total revenues$4,474 $1,197 $1,049 $6,720 $(72)$6,648 
Intersegment revenues$49 $23 $— $72 
Year Ended December 31, 2024
Management and franchisingOwned and leasedDistribution
Segment revenues$1,191 $1,197 $1,049 
Significant segment expenses:
Adjusted general and administrative expenses(268)(10)(6)
Owned and leased expenses (1)— (991)— 
Distribution expenses (2)— — (882)
Other segment items:
Other (3)(69)3 (21)
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA— 62 — 
Segment Adjusted EBITDA$854 $261 $140 
(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 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 expenses related to the paid membership program prior to the UVC Transaction recognized in other direct costs and stock-based compensation expense recognized in distribution expenses.
Year Ended December 31, 2023
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$414 $— $— $414 $(40)$374 
Incentive management fees248 — — 248 (16)232 
Franchise and other fees371 — — 371 (7)364 
Gross fees1,033 — — 1,033 (63)970 
Rooms and packages— 874 — 874 (29)845 
Food and beverage— 333 — 333 — 333 
Other — 161 — 161 — 161 
Owned and leased— 1,368 — 1,368 (29)1,339 
Distribution— — 1,047 1,047 — 1,047 
Other revenues110 — 189 299 1 300 
Segment revenues1,143 1,368 1,236 3,747 (91)3,656 
Contra revenue(47)— — (47)— (47)
Revenues for reimbursed costs3,058 — — 3,058 — 3,058 
Total revenues$4,154 $1,368 $1,236 $6,758 $(91)$6,667 
Intersegment revenues$62 $29 $— $91 
Year Ended December 31, 2023
Management and franchisingOwned and leasedDistribution
Segment revenues$1,143 $1,368 $1,236 
Significant segment expenses:
Adjusted general and administrative expenses(218)(11)(51)
Owned and leased expenses (1)— (1,107)— 
Distribution expenses (2)— — (866)
Other segment items:
Other (3)(143)6 (190)
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA— 64 — 
Segment Adjusted EBITDA$782 $320 $129 
(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 primarily includes direct costs associated with our co-branded credit card programs and the Destination Residential Management business prior to its sale 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 expenses related to the paid membership program prior to the UVC Transaction recognized in other direct costs and stock-based compensation expense recognized in distribution expenses.
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
Year Ended December 31,
202520242023
Management and franchising$940 $854 $782 
Owned and leased259 261 320 
Distribution120 140 129 
Segment Adjusted EBITDA1,319 1,255 1,231 
Unallocated overhead expenses(160)(160)(177)
Eliminations— 1 1 
Contra revenue(86)(69)(47)
Revenues for reimbursed costs3,629 3,352 3,058 
Reimbursed costs(3,682)(3,457)(3,144)
Stock-based compensation expense (1)(68)(62)(75)
Transaction and integration costs(173)(42)(42)
Depreciation and amortization(325)(333)(397)
Equity earnings (losses) from unconsolidated hospitality ventures(46)31 (1)
Interest expense(317)(180)(145)
Gains (losses) on sales of real estate and other(15)1,245 18 
Asset impairments(40)(213)(30)
Other income (loss), net101 257 124 
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA(56)(62)(64)
Income before income taxes$81 $1,563 $310 
(1) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs (see Note 17).
The following tables present revenues and long-lived assets, including property and equipment, net and operating lease ROU assets, by geographical region:
Year Ended December 31,
202520242023
Revenues:
United States$4,955 $5,036 $5,074 
All foreign2,146 1,612 1,593 
Total$7,101 $6,648 $6,667 
 December 31, 2025December 31, 2024
Long-lived assets:
United States$1,271 $1,316 
All foreign634 701 
Total$1,905 $2,017 
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Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 13, 2025
2023Feb 23, 2024
2022Feb 16, 2023
2021Feb 17, 2022
2020Feb 18, 2021
2019Feb 20, 2020
2018Feb 14, 2019
2017Feb 15, 2018
2016Feb 16, 2017
2015Feb 18, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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