Hyatt Chairman Thomas Pritzker Resigns Amid Epstein Scandal Fallout

Hyatt Hotels Corp. is entering 2026 at a pivotal moment: longtime executive chairman Thomas J. Pritzker has resigned amid scrutiny of his association with Jeffrey Epstein, while the company doubles down on an “asset-light” expansion designed to supercharge global growth. Pritzker’s exit and board retirement plan, announced 16 February, follow his acknowledgement of “terrible judgment” in maintaining contact with Epstein and Ghislaine Maxwell. The 75-year-old billionaire, who steered Hyatt through its 2009 IPO and pandemic downturn, said stepping aside was “essential to protecting Hyatt” as investigations into Epstein’s network widen. President and CEO Mark Hoplamazian now takes on the combined role of chairman and chief executive, consolidating leadership while promising “unwavering focus on growth and culture.” Investors appeared to shrug off the governance shock. Hyatt shares dipped less than 1 % before recovering, buoyed by a bullish fourth-quarter earnings call on 12 February. Hoplamazian told analysts that system-wide RevPAR rose 4 % year-over-year in Q4 2025, driven by a 6 % surge in high-spending leisure travelers and a 9 % lift across the group’s luxury flags. With the $2 billion sale of its remaining Playa Hotels real-estate portfolio now closed, “Hyatt is fully transformed into an asset-light business, and we expect asset-light earnings to reach 90 % in 2026,” the CEO said. Key growth indicators for 2026 • Net rooms growth forecast: 6 %–7 %. • Record development pipeline: 148,000 contracted rooms worldwide. • Three new deals under contract, expected to close by Q2. • Global RevPAR guidance: +1 % to +3 %. New brands fuel momentum Much of that pipeline stems from three fresh flags—Hyatt Select (upper-midscale), Hyatt Studios (extended stay) and Unscripted by Hyatt (upscale conversion)—which accounted for nearly two-thirds of U.S. signings in 2025. The trio enables Hyatt to penetrate secondary markets where the parent brand has little or no presence, a strategic counterweight to Marriott and Hilton’s own midscale pushes. Hoplamazian emphasized that the company is “evaluating additional asset sales” to recycle capital into management and franchise opportunities with higher margins. Why the leadership shift matters for growth Hyatt’s founder-family governance model has long reassured developers, but Pritzker’s Epstein links threatened reputational risk just as the company courts new investors in Asia-Pacific and the Middle East. Consolidating the chair and CEO roles under Hoplamazian streamlines decision-making at a time when speed to market is critical: Hyatt aims to open seven hotels in India alone next year and is chasing luxury all-inclusive conversions in Mexico and the Caribbean. Outlook Analysts note that Hyatt’s slim real-estate footprint insulates it from rising interest-rate pressure, while its leisure-heavy mix should capture demand tied to events like the 2026 FIFA World Cup and a robust U.S. meetings calendar. The chief headwind is labor cost inflation, but Hyatt says its global scale allows “targeted hiring” and technology efficiencies. Bottom line: Even amid a high-profile leadership departure, Hyatt’s fundamentals remain strong. If the company hits its asset-light earnings target and keeps RevPAR ahead of peers, the brand could emerge from 2026 with greater market share—and a refreshed reputation.