Hyatt and FedEx Report Strong Earnings
Hyatt Hotels reported quarterly earnings that beat analyst estimates by $1.04 per share, indicating resilience in the hospitality sector. Similarly, logistics giant FedEx expects its holiday quarter adjusted profit to top Wall Street's view.
- Hyatt's net rooms grew 7.3% in 2025, marking the ninth consecutive year the company has led the industry in portfolio expansion. It has a record pipeline of approximately 148,000 rooms for future development. - The hotel operator is advancing an "asset-light" strategy, recently completing the sale of 14 hotels. Hyatt anticipates that 90% of its earnings in 2026 will come from this fee-driven model. - For 2026, Hyatt projects system-wide Revenue Per Available Room (RevPAR) to grow between 1% and 3% and forecasts an increase in adjusted EBITDA of 13% to 18%. - FedEx has set a fiscal 2029 target of $98 billion in consolidated revenue and $8 billion in operating income, excluding its Freight business which is being spun off. - CEO Raj Subramaniam stated FedEx is entering a "new era" with a vision to "make supply chains smarter for everyone," focusing on high-margin sectors like healthcare, automotive, and premium e-commerce. - The logistics company's positive outlook is supported by its "DRIVE" program, a comprehensive initiative expected to achieve over $4 billion in permanent cost savings by fiscal year 2025. - As part of its European growth strategy, FedEx recently invested in the parcel delivery specialist InPost to enhance efficiency and profitability on the continent.
