Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Investor Day (May 2023)
26 slides from Hyatt Hotels's investor day presentation, May 11, 2023
Slide 1: Apple Leisure Group
APPLE LEISURE GROUP ASSET LIGHT, FEE BASED, VERTICALLY INTEGRATED SECRETS IMPRESSION MOXCHÉ, MEXICO HYATT AND RELATED MARKS ARE TRADEMARKS OF HYATT CORPORATION OR ITS AFFILIATES. © 2023 HYATT CORPORATION. ALL RIGHTS RESERVED. 1
Slide 2: Speakers
SECRETS AKUMAL RIVIERA MAYA, MEXICO SPEAKERS MARK RODRIGO RAY HOPLAMAZIAN LLAGUNO SNISKY PRESIDENT AND GROUP PRESIDENT, GROUP PRESIDENT, CHIEF EXECUTIVE UNLIMITED VACATION CLUB ALG VACATIONS OFFICER 2
Slide 3: Record airlift into all-inclusive markets reflects growing popularity
SECRETS BAHIA MITA SURF & SPA RESORT, MEXICO RECORD AIRLIFT INTO ALL-INCLUSIVE MARKETS REFLECTS GROWING POPULARITY AIRLIFT TO TOP ALL-INCLUSIVE DESTINATIONS 1 HAS INCREASED NEARLY 250% SINCE 2005; CONTINUES TO STRENGTHEN IN 2023 Airlift Seat Volume to Key All-Inclusive Destinations 30 Seats (Million
Slide 4: High-end travelers love all-inclusive
HIGH-END TRAVELERS LOVE ALL-INCLUSIVE ALG ALL-INCLUSIVE GUESTS SAVE Convenience 13 % Value per room night at ALG resorts when compared to non-all-inclusive comparable set 1 Simplicity Guests value the convenience and ease of an all-inclusive offering, when they can also ensure great service, accommo
Slide 5: Owners love all-inclusive
SECRETS HUATULCO RESORT & SPA, MEXICO OWNERS LOVE ALL-INCLUSIVE RELATIVE TO NON-ALL-INCLUSIVE COMPARABLE SET 1 , Owners value strong financial returns ALG OWNERS GENERATE through high occupancy, effective cost management and high GOP margins Over 80% of hotels in the ALG portfolio are composed of mu
Slide 6: All-inclusive guests increasingly prefer luxury and upper upscale
ALL-INCLUSIVE GUESTS INCREASINGLY PREFER LUXURY AND UPPER UPSCALE BREATHLESS RIVIERA CANCUN NEARLY 80% OF ALL-INCLUSIVE ROOMS ADDED SINCE 2020 RESORT & SPA, ARE IN THE LUXURY AND UPPER UPSCALE CHAIN SCALE MEXICO Mix of Rooms Added in All-Inclusive Segment by Decade 22% 42% 37% 48% 32% 27% 18% 25% 46
Slide 7: Apple Leisure Group: Innovators of luxury all-inclusive
APPLE LEISURE GROUP I N N O VAT O R S O F L U X U R Y A L L - I N C L U S I V E DREAMS NATURA RESORT & SPA, MEXICO 7
Slide 8: ALG's end-to-end solutions drive loyalty and growth
SECRETS MOXCHÉ, MEXICO Booking platform provides all-inclusive vacation experiences including flights, transport, excursions, and resort packages ALG'S END-TO-END SOLUTIONS DRIVE LOYALTY AND GROWTH Membership program World’s largest portfolio provides exclusive of luxury all- offerings at our all-in
Slide 9: ALG model drives significant fee-based earnings
ALUASOUL IBIZA, SPAIN Management Membership Fees Revenues Primarily driven by Primarily driven by ALG MODEL DRIVES fees paid by hotel owners to manage or the sale of Unlimited Vacation ASSET SIGNIFICANT FEE- franchise a resort property LIGHT Club membership contracts BASED EARNINGS Distribution and
Slide 10: ALG's unique competitive advantages have led to explosive growth
ZOËTRY MALLORCA, SPAIN ALG’S UNIQUE COMPETITIVE ADVANTAGES HAVE LED TO EXPLOSIVE GROWTH 34 32 Number of resort properties grew from only 9 in 2007 to ~16% 24 25 CAGR 111 resorts 15 19 19 20 in 2022 13 14 12 10 8 5 6 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 AL
Slide 11: Inclusive Collection
A L G + H YAT T INCLUSIVE COLLECTION ALUA CALAS DE MALLORCA RESORT, SPAIN 11
Slide 12: The largest portfolio of luxury all-inclusive resorts in the world
Spain Balearic Mexico Bulgaria Dominican Spain Caribbean Republic Mainland Portugal Mexico St. Martin Pacific Aruba Curaçao Spain Canary Jamaica Greece Colombia Panama St. Lucia Costa Rica Footprint as of Dec’22 Resorts Resorts Open Coming Soon INCLUSIVE COLLECTION: THE LARGEST PORTFOLIO 9 121 38K $
Slide 13: Leading position in luxury all-inclusive
HYATT ZIVA CAP CANA, DOMINICAN REPUBLIC LEADING POSITION IN LUXURY ALL-INCLUSIVE THROUGH THE LAUNCH OF THE “INCLUSIVE COLLECTION” HYATT HAS A LEADING POSITION IN LUXURY ALL-INCLUSIVE Global Luxury Chain Scale All-Inclusive Market Share 33 % Global Luxury Chain Scale All-Inclusive 33% Market Share 14
Slide 14: Unlimited Vacation Club
UNLIMITED VACATION CLUB H I G H LY VA L U E D B Y M E M B E R S A N D O W N E R S SECRETS MOXCHÉ, MEXICO 14
Slide 15: Unlimited Vacation Club benefits maximize value for members
UNLIMITED VACATION CLUB BENEFITS MAXIMIZE VALUE FOR MEMBERS Access to the largest network of luxury all-inclusive properties Free nights and discounts on room prices across all ALG resorts with room upgrades VIP treatment on property, including a streamlined check-in process, access to special areas
Slide 16: Unlimited Vacation Club is a highly valued unique source of demand
UNLIMITED VACATION CLUB IS A HIGHLY SECRETS MAROMA BEACH RIVIERA CANCUN, MEXICO VALUED UNIQUE SOURCE OF DEMAND Active Member Growth (in thousands) 131 ENGAGED MEMBERS 118 103 106 87 69 52 FUELS 38 PERFORMANCE 27 19 0 4 11 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ~11% ~20% <6%
Slide 17: Unlimited Vacation Club earnings are durable; new contracts track ALG Americas growth
UNLIMITED VACATION CLUB EARNINGS ARE DURABLE; NEW CONTRACTS TRACK CLOSELY TO ALG AMERICAS GROWTH NEW SIGNED CONTRACTS ARE STRONGLY CORRELATED TO ALG SYSTEM GROWTH IN THE AMERICAS 30,000 2022: Record year of NEW CONTRACTS EXCLUDING UPGRADES 25,000 new contracts signed 2017-2019 20,000 2021: Contracts
Slide 18: ALG Vacations
ALG VACATIONS ONE OF THE LARGEST PROVIDERS O F L E I S U R E T R AV E L T O M E X I C O & THE CARIBBEAN SECRETS PLAYA MUJERES GOLF & SPA RESORT, MEXICO 18
Slide 19: ALG Vacations supports travel advisors and guests as a distribution platform
ALG VACATIONS SUPPORTS TRAVEL ADVISORS & GUESTS, DRIVING IMPRESSIVE MARKET SHARE AS A DISTRIBUTION PLATFORM Online marketplace for travel suppliers and U.S.-based travel advisors Provides dynamic packaging & multi-channel merchandising to airlines, hotels, & tour operators for both B2B & B2C Persona
Slide 20: ALG Vacations estimated to account for 12% of US travelers to key all-inclusive markets
ZOËTRY MONTEGO BAY, JAMAICA 12 % ALG Vacations is estimated to account for 12% of all travelers from the United States to key all- inclusive markets in Mexico & Caribbean; Driving strong market share for owners Source: Estimated volume of leisure travelers into Mexico and the Caribbean based on a Mc
Slide 21: ALG Vacations helps drive strong occupancy to ALG resorts
ALG VACATIONS HELPS DRIVE STRONG OCCUPANCY TO ALG RESORTS 1360 bps higher occupancy in 2022 vs. non-all-inclusive comparable set 1 powered by ALG Network, including OCCUPANCY FOR ALG RESORTS COMPARED TO A NON-ALL-INCLUSIV E COMPARABLE SET 1 ALG Vacations 90% ALG Vacations drives effortless booking e
Slide 22: Fueling the continued growth of ALG
FUELING THE CONTINUED GROWTH OF ALG ZOËTRY CURAÇAO RESORT & SPA, CURAÇAO 22
Slide 23: World of Hyatt fuels continued growth at ALG resorts
DREAMS LAS MAREAS, COSTA RICA WORLD OF HYATT FUELS CONTINUED GROWTH AT ALG RESORTS >30% Spend premium of World of Hyatt members versus Non-Members at ALG resorts Since completion of ALG transaction, World of Hyatt member contribution at ALG resorts in the Americas 0 21 % Prior to % Following has i
Slide 24: 12 new resorts to open in 2023, adding 5,000 rooms
12 NEW RESORTS TO OPEN IN 2023, DREAMS FLORA RESORT & SPA, DOMINICAN REPUBLIC ADDING 5,000 ROOMS Openings scheduled for 2023 in 8 destinations across 4 countries MEXICO PACIFIC CURAÇAO Dreams Estrella del Mar Zöetry Curaçao (Room Addition) MEXICO CARIBBEAN BULGARIA SECRETS IMPRESSION DREAMS SUNNY BE
Slide 25: ALG segment drives significant cash flow generation
BREATHLESS CANCUN SOUL ALG SEGMENT DRIVES SIGNIFICANT CASH RESORT & SPA, MEXICO FLOW GENERATION ASSET-LIGHT PLATFORM HAS EXCEEDED EXPECTATIONS; ~75 % FINANCIAL PERFORMANCE DRIVES STRONG FREE CASH FLOW Full-Year 2022 ALG Segment Financial Results Adjusted EBITDA †, Net Deferrals ◊, and Net Financed C
Slide 26: We're just getting started
H YAT T + A L G WE’RE JUST GETTING STARTED ZOËTRY CASA DEL MAR LOS CABOS, MEXICO 26