HYATT Hotels Corporation says it expects to lose up to US$20 million ($3.11 billion) in earnings next year as a result of Hurricane Melissa’s impact on its Jamaican portfolio, but the global hotel group is positioning the island for what it believes could be a breakout 2027.

The Chicago-based operator told investors this week that it projects a US$15 million loss in gross booking fees for 2026 due to the temporary closure of eight all-inclusive resorts in Jamaica, with adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) expected to decline between US$15 million and US$20 million.

“We’re going to take a hit in 2026. We’ve already been very explicit about what that is,” Hyatt President and Chief Executive Officer Mark S Hoplamazian said during the company’s earnings call on Thursday.

But the Hyatt chief executive framed the setback as a transitional phase rather than a structural impairment of the assets.

“2027 has the opportunity for us to far exceed what our own underwriting was out of those resorts when we did the deal and sold the properties,” Hoplamazian said, signalling that the company expects rebuilt and repositioned hotels to outperform the financial assumptions used in its 2025 Playa Hotels & Resorts acquisition.

“I look at it and say that I’m excited about the prospects for Jamaica. I’m excited about the financial prospects for those properties as we head into 2027.”

Hyatt had initially planned to reopen the eight resorts on February 1 but has since shifted bookings to November 1 as recovery work continues after the passage of the category five hurricane. The revised timeline positions the company to target the peak 2027 winter tourism season with what it describes as fully refreshed and upgraded properties.

“We’re going to have full refreshed, newly rebuilt, renovated and upgraded hotels in Jamaica which is going to have a very strong year,” Hoplamazian said. “There are too many jobs that are dependent on this industry for the Government to not throw everything they have and the kitchen sink at this for 2027.”

Hyatt’s exposure to Jamaica expanded significantly following its June 2025 acquisition of Playa Hotels & Resorts N.V. for an enterprise value of US$2.6 billion. In December 2025, Hyatt sold 13 properties to TRQ Tortuga B.V. for US$2 billion and entered into 50-year management agreements, reinforcing its asset-light strategy under which it earns management and booking fees rather than owning the underlying real estate.

Through the Playa deal, Hyatt added 1,203 rooms across four Jamaican properties, supplementing the 899 rooms it already controlled through its earlier acquisition of Apple Leisure Group. The Jamaican portfolio includes Breathless Montego Bay Resort & Spa, Dreams Rose Hall Resort & Spa, Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Secrets St. James Montego Bay, Secrets Wild Orchid Montego Bay, Jewel Grande Montego Bay Resort & Spa and Zoëtry Montego Bay Jamaica.

The hurricane’s financial impact had already led Hyatt reducing its 2025 adjusted EBITDA outlook for Playa by US$10 million. The additional US$15 million to US$20 million EBITDA impact projected for 2026 underscores the scale of disruption in one of the Caribbean’s most tourism-dependent markets.

Despite the near-term drag on earnings, Hoplamazian praised the Government’s reconstruction efforts, citing rapid restoration of infrastructure and regulatory support to accelerate rebuilding.

“The Government is taking action to facilitate getting building products brought in without undue tariffs and taxes, and labour,” he said. “They have assured us, and we know that their airports are open, roads are open, potable water supply is restored and the grid is restored. They did this in record time. Just remarkable.”

Hoplamazian also disclosed that he met Tourism Minister Edmund Bartlett in Spain two weeks ago, where he received assurances about Jamaica’s recovery trajectory and the importance of restoring capacity ahead of 2027. Hyatt Chief Financial Officer Joan Bottarini indicated during the earnings call that all the properties have business interruption insurance claims, but the receipt of those funds were unknown.

Hyatt’s disclosures come as more than 20 Jamaican resorts are scheduled to reopen later in 2026. According to Visit Jamaica, Bahia Principe Grand Jamaica is slated to reopen by December 1, while Bahia Principe Luxury Runaway remains closed for extended renovation. Hyatt holds a 50 per cent stake, alongside Grupo Piñero, in the joint venture entity Management Hotelero Piñero, S.L. which owns and manages the Bahia Principe brand. Investors should learn more information on Hyatt’s assessment of Jamaica when it files its annual report or 10-K filing shortly.

HOPLAMAZIAN… I’m excited about the prospects for Jamaica.