Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Q4 2021 Earnings Presentation
34 slides from Hyatt Hotels's earnings presentation, Feb 17, 2022
Slide 1: Q4 2021 Supplemental Presentation
Q4 2021 Supplemental Presentation 02/16/2022 SECRETS® BAHIA MITA
Slide 2: Disclaimers
DISCLAIMERS FORWARD-LOOKING STATEMENTS Forward-Looking Statements in this presentation, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about Hyatt Hotels Corporation’s (the
Slide 3: 2021 Recap: A Year of Transformation
2021 Recap A Year of Transformation ZOETRY® CASA DEL MAR LOS CABOS 3
Slide 4: Hyatt Performance Recap: Key Highlights
2 0 2 1 H YAT T P E R F O R M A N C E R E C A P 1 KEY HIGHLIGHTS $77.80 $257M Acquired Apple Leisure Group RevPAR2 Adjusted EBITDA† (“ALG”) +67% vs. 2020 +$434M vs. 2020 Completed $1.5B Asset Disposition Commitment +12% +19.5% Launched New $2.0B Asset Pipeline Growth Net Rooms Growth year-over-year
Slide 5: Key Metrics Strengthen Significantly as Year Progresses
K E Y M E T R I C S S T R E N G T H E N S I G N I F I C A N T LY A S Y E A R P R O G R E S S E S 2021 ADJUSTED EBITDA † ($M) & REVPAR 1 2021 KEY FINANCIAL METRICS ALG Adjusted System-wide RevPAR vs. 2019 EBITDA† contribution Q4 does not include a $19M $97 Adjusted EBITDA† System-wide 120 $112M 0.00%
Slide 6: Leisure Transient at Record Strength; Business Transient and Group Primed for Growth
L E I S U R E T R A N S I E N T AT R E C O R D S T R E N G T H ; B U S I N E S S TRANSIENT AND GROUP PRIMED FOR GROWTH IN 2022 SYSTEM-WIDE ROOMS REVENUE 1 % VS. 2019 Leisure Transient Revenue Builds on 102% 97% Strong Momentum in 85% Q3; Reaches Record Level in Q4 58% 60% 51% Group and Business Tran
Slide 7: Leisure Mix Grows as a % of Revenues with ALG Acquisition
LEISURE MIX GROWS AS A % OF REVENUES WITH ALG ACQUISITION 2019 ROOMS REVENUE 1 MIX ESTIMATED MIX AT FULL RECOVERY 2 ~20% of Group is Leisure ~30% ~27% ~45% ~52% ~21% ~25% Leisure Business Group 3 Transient Transient ALG Expected to Expand Leisure Revenue Mix by 700 bps 1. Comparable system-wide hote
Slide 8: Industry Leading Net Rooms Growth Driven by ALG Acquisition and Record Organic Openings
I N D U S T RY L E A D I N G N E T R O O M S G R O W T H D R I V E N B Y ALG ACQUISITION AND RECORD YEAR OF ORGANIC OPENINGS SYSTEM-WIDE ROOMS 1 ROUNDED TO NEAREST THOUSAND +19.5% 47 285 ALG 32 +13.4% 238 Hyatt 15 +6.1% 2 Hyatt opened 99 HOTELS Including 17 CONVERSIONS (17,800 ROOMS) 17% of total AL
Slide 9: Growth Contributing to a Transformed Portfolio
G R O W T H I S C O N T R I B U T I N G TO A T R A N S F O R M E D P O R T F O L I O ; H YAT T H A S E X PA N D E D B Y ~ 1 0 0 K R O O M S , 5 3 % , I N 4 Y E A R S SYSTEM-WIDE ROOMS ROUNDED TO NEAREST THOUSAND +53% 32 285 12 55 +17% +6% 186 +30% 1 ALILA® HINU BAY 9 1. Organic growth net of termina
Slide 10: Hyatt Portfolio Uniquely Positioned; Expansion of Luxury, Lifestyle and Resort Hotels
H YAT T P O R T F O L I O I S U N I Q U E LY P O S I T I O N E D ; D R I V E N B Y S I G N I F I C A N T E X PA N S I O N O F L U X U RY, L I F E S T Y L E A N D R E S O R T H O T E L S YE YE GROWTH 2017 1 2021 HYATT GLOBAL SHARE3 LUXURY ROOMS 43K 85K Doubled Luxury Rooms #1 World's Largest Portfoli
Slide 11: Pipeline Continues to Expand
P I P E L I N E C O N T I N U E S TO E X PA N D ; LEADING POSITION AS % OF EXISTING BASE PIPELINE ROOMS 1 ROUNDED TO NEAREST THOUSAND +61% 113 9 ALG 7 Two Roads 101 101 97 89 Hyatt 70 2017 2018 2019 2020 2021 61% Pipeline represents ~40% Industry-leading pipeline 40% of pipeline rooms are growth ove
Slide 12: Executing on Hyatt's Capital Strategy Accelerates Fee-Based Earnings
E X E C U T I N G O N H YAT T ’ S C A P I TA L S T R AT E G Y L E A D S TO A N A C C E L E R AT I O N I N F E E B A S E D E A R N I N G S MONETIZING ADDITIONAL ACCELERATION TO FEE-BASED EARNINGS HYATT’S CAPITAL OWNED ASSETS EARNINGS MIX, % OF TOTAL 1 STRATEGY Monetize Additional Owned Assets $3B 20
Slide 13: ALG Results: Network Effect Driving Growth
ALG Results Network Effect Driving Growth DREAMS® DOMINICUS LA ROMANA 13
Slide 14: ALG Full Year 2021 Results Significantly Ahead of Underwriting
ALG FULL YEAR 2021 R E S U LT S S I G N I F I C A N T LY A H E A D O F U N D E R W R I T I N G $28M + $98M + $48M Adjusted EBITDA† Net Deferrals Net Financed Contracts FULL YEAR KEY HIGHLIGHTS Net Package RevPAR ahead of 2019 from July to December Opened ~8K rooms and 29 hotels AMR™ Fee Revenue of $
Slide 15: ALG Key Metrics Reach Record Levels in Second Half of 2021
ALG KEY METRICS REACH RECORD LEVELS IN SECOND HALF OF 2021 ADJUSTED EBITDA † + NET DEFERRALS + FINANCED CONTRACTS KEY OPERATIONAL METRICS $ IN MILLIONS 1H 2H GROWTH Adjusted EBITDA† Net Deferrals 34 Financed Contracts NET PACKAGE REVPAR 97.17 138.30 42% 68 MANAGEMENT FEES $25M $52M 108% 14 30 31% 23
Slide 16: ALG Posts Strong Results as Part of Hyatt for Two Months in Q4 2021
A L G P O S T S S T R O N G R E S U LT S A S PA R T O F H YAT T FOR TWO MONTHS IN Q4 2021 $4M + $19M + $8M Adjusted EBITDA† Net Deferrals Net Financed Contracts TWO MONTH KEY HIGHLIGHTS Net Package RevPAR 7% ahead of 2019 for comparable hotels in Americas AMR™ Fee Revenue of $21M; 26% above 2019 Sig
Slide 17: Strategically Integrated Platform Drives Hotel Performance
S T R AT E G I C A L LY I N T E G R AT E D P L AT F O R M D R I V E S H O T E L P E R F O R M A N C E 1 #1 13% 15% 30% of rooms occupied of Total Hotel Revenue of U.S.-based ALG World’s #1 Provider of at AMR™ hotels at AMR™ hotels is Vacations® bookings U.S.-based leisure are members in driven by th
Slide 18: AMR and Unlimited Vacation Club Create a Powerful Network Effect
A M R ™ A N D U N L I M I T E D VA C AT I O N C L U B ® C R E AT E A P O W E R F U L N E T W O R K E F F E C T ; D R I V E VA L U E F O R G U E S T S A N D O W N E R S MEMBERSHIP ENGAGEMENT & S AT I S FA C T I O N 18% p.a. ~20% of signed contracts are existing IS HIGH Membership growth, members upgr
Slide 19: Integrated Platform Leads to Unprecedented Growth and Strong Pipeline
I N T E G R AT E D P L AT F O R M L E A D S TO U N P R E C E D E N T E D G R O W T H & S T R O N G P I P E L I N E TO F U E L F U T U R E E X PA N S I O N AMR™ COLLECTION HOTELS & ROOMS 1 Expansion in Europe 99 20% CAGR 16% 69 CAGR 51 19% 32 CAGR 24 19 9 4 2007 2017 2019 2021 YE Hotels YE Rooms (000
Slide 20: ALG Integration Expected to Drive Incremental Growth in 2022 and Beyond
A L G I N T E G R AT I O N E X P E C T E D TO D R I V E I N C R E M E N TA L G R O W T H I N 2 0 2 2 A N D B E Y O N D VALUE ENHANCEMENTS • World of Hyatt integration for the Americas in summer of 2022, with Europe to follow • AMR™ Collection hotels to be fully bookable through Hyatt channels for th
Slide 21: Accounting Considerations
Accounting Considerations DREAMS® LOS CABOS SUITES GOLF RESORT & SPA 21
Slide 22: AMR and Unlimited Vacation Club Generate Strong Cash Flow
A M R ™ A N D U N L I M I T E D VA C AT I O N C L U B ® G E N E R AT E S T R O N G C A S H F L O W ; A D J U S T E D E B I T D A † I M PA C T E D B Y N E T D E F E R R A L S CONTRACT SIGNING END OF CONTRACT TERM Significant portion of cash received at time of signing CASH Membership fee either paid-
Slide 23: Unlimited Vacation Club Creates Net Deferrals and Net Financed Contracts
U N L I M I T E D VA C AT I O N C L U B ® C R E AT E S N E T D E F E R R A L S A N D N E T F I N A N C E D C O N T R A C T S P R I M A R I LY I N T W O WAY S NEW CONTRACT SIGNED MEMBERSHIP FEE ACCOUNTING IMPLICATION Signed Contracts fall Membership Fee is one-time charge with Revenue and expense rec
Slide 24: Illustrative Year Membership Contract Highlights
I L L U S T R AT I V E 1 0 - Y E A R M E M B E R S H I P C O N T R A C T H I G H L I G H T S D I F F E R E N C E I N W H E N VA L U E C R E AT I O N I S R E F L E C T E D Adjusted EBITDA † Adjusted EBITDA† + Net Deferrals + Net Financed Contracts % BY YEAR % BY YEAR 31% 11% 6% 100% 100% 17% 49% 66%
Slide 25: Adjusted EBITDA + Net Deferrals + Net Financed Contracts Reflects Economic Value Creation
ADJUSTED EBITDA† + NET DEFERRALS + NET FINANCED C O N T R A C T S R E F L E C T S E C O N O M I C VA L U E C R E AT I O N Reflects economic value1 creation in the period a membership contract is signed Tracks closely with cash flow generation Consistent with how performance is incentivized Allows fo
Slide 26: Appendix
Appendix DREAMS® VISTA CANCUN GOLF & SPA RESORT 26
Slide 27: Definitions
DEFINITIONS Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (Adjusted EBITDA) and EBITDA We use the terms Adjusted EBITDA and EBITDA throughout this presentation. Adjusted EBITDA and EBITDA, as the Company defines them, are non-GAAP measures. We define Adjusted EBITDA
Slide 28: Definitions
DEFINITIONS Adjusted Selling, General, and Administrative (SG&A) Expenses Adjusted SG&A expenses, as we define it, is a non-GAAP measure. Adjusted SG&A expenses exclude the impact of deferred compensation plans funded through rabbi trusts and stock-based compensation expense. Adjusted SG&A expenses
Slide 29: Reconciliation of Non-GAAP Financial Measure
R E C O N C I L I AT I O N O F N O N - G A A P F I N A N C I A L M E A S U R E Hyatt Hotels Corporation Reconciliation of Non-GAAP Financial Measure: SG&A Expenses to Adjusted SG&A Expenses Results of operations as presented on the consolidated statements of income (loss) include expenses recognized
Slide 30: Reconciliation of Non-GAAP Financial Measure (cont.)
R E C O N C I L I AT I O N O F N O N - G A A P F I N A N C I A L M E A S U R E ( C O N T. ) Hyatt Hotels Corporation Reconciliation of Non-GAAP Measure: Reconciliation of Net Income (Loss) Attributable to Hyatt Hotels Corporation to EBITDA and EBITDA to Adjusted EBITDA (in millions) Q1 2021 Q2 2021
Slide 31: ALG Two-Month Contribution to Hyatt Consolidated Income Statement in Q4 2021
A L G T W O - M O N T H C O N T R I B U T I O N TO H YAT T C O N S O L I D AT E D I N C O M E S TAT E M E N T I N Q 4 2 0 2 1 Three Months Ended December 31st, 20211 USD in millions Hyatt excluding ALG ALG Combined REVENUES: Owned and leased hotels $ 280 $ - $ 280 Management, franchise, and other fe
Slide 32: ALG Two-Month Contribution to Hyatt Adjusted EBITDA in Q4 2021
A L G T W O - M O N T H C O N T R I B U T I O N TO H YAT T A D J U S T E D E B I T D A † I N Q 4 2 0 2 1 Three Months Ended December 31st, 20211 USD in millions Hyatt excluding ALG ALG Combined Net loss attributable to Hyatt Hotels Corporation $ (1) $ (28) $ (29) Interest expense 40 - 40 (Benefit) p
Slide 33: ALG Historical Performance by Quarter in 2021
A L G H I S TO R I C A L P E R F O R M A N C E B Y Q U A R T E R I N 2 0 2 1 Q1 Q2 Q3 Q4 Year to Date Net Package RevPAR (Americas) $ 75.62 $ 125.97 $ 135.47 $ 168.20 $ 127.40 Net Package RevPAR (Europe) $ 39.72 $ 50.14 $ 101.36 $ 86.11 $ 87.88 Net Package RevPAR (Total) $ 74.67 $ 117.41 $ 124.84 $
Slide 34: Hyatt
HYALT