Hyatt priced a $400 million senior notes offering due 2035, carrying a fixed annual rate of 5.4%. The notes were issued on November 17, 2025, with an expected closing on November 26, 2025, and were underwritten by Deutsche Bank Securities, PNC Capital Markets LLC, and Scotiabank.
The proceeds will be used to retire the company’s 4.850% notes that mature on March 15, 2026. Any remaining funds will be applied to general corporate purposes, providing flexibility for future capital deployment and potential share repurchases.
Hyatt’s total debt stood at $6.0 billion as of September 30, 2025, with $2.2 billion in liquidity. The refinancing replaces higher‑rate, short‑term debt with a longer‑term, lower‑cost instrument, reducing interest expense and extending the debt maturity profile. This aligns with the company’s asset‑light transformation and fee‑based growth strategy, which aims to shift more earnings into management and franchise fees rather than hotel ownership.
The company’s Q3 2025 earnings missed analyst expectations, reporting an EPS of –$0.30 versus an expected $0.49 and revenue of $1.79 billion versus a forecast of $1.81 billion. The refinancing is part of a broader effort to strengthen the balance sheet after the 2025 acquisition of Playa Hotels & Resorts, which increased leverage but was followed by a significant real‑estate divestiture. S&P Global Ratings upgraded Hyatt’s outlook to stable in July 2025, citing accelerated asset sales and planned debt reduction.
Management emphasized confidence in the company’s strategic direction. Chief Financial Officer Thomas Baker noted that “the new notes provide a lower‑cost, longer‑term financing structure that supports our asset‑light model and gives us the flexibility to invest in high‑margin growth opportunities.” He also highlighted the strong performance of the luxury all‑inclusive segment, which is expected to drive future revenue growth.
The offering demonstrates Hyatt’s continued focus on optimizing its capital structure to support long‑term growth while managing leverage in a dynamic market environment. The lower interest rate and extended maturity provide a buffer against potential market volatility and support the company’s ongoing capital deployment plans.
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