Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Investor Day (May 2023)
20 slides from Hyatt Hotels's investor day presentation, May 11, 2023
Slide 1: Growing With Intent
GROWING WITH INTENT MARK HOPLAMAZIAN | PRESIDENT & CHIEF EXECUTIVE OFFICER ALILA WUZHEN, CHINA HYATT AND RELATED MARKS ARE TRADEMARKS OF HYATT CORPORATION OR ITS AFFILIATES. © 2023 HYATT CORPORATION. ALL RIGHTS RESERVED. 1
Slide 2: Hyatt has led the industry in net rooms growth for 6 consecutive years
HYATT HAS LED THE INDUSTRY IN NET ROOMS GROWTH FOR 6 CONSECUTIVE YEARS Hyatt NET ROOMS GROWTH 2017 – 2022 Marriott Hilton + 7.0 % + 7.2 % + 7.4 % + 5.2 % + 6.1 % + 6.7 % IHG + 50BPS + 20BPS + 80BPS + 10BPS + 50BPS + 200BPS Excluding: Two Roads & ALG 5.6% 6.5% 4.0% 4.7% 7.0% 4.8% 4.8% 6.6% 5.6% 3.1%
Slide 3: We've grown without compromising quality
7PINES RESORT IBIZA, SPAIN Hyatt focused growth on Luxury properties to serve high-end customers Luxury Upper Upscale Upscale Upper Midscale WE’VE GROWN WITHOUT 39% 29% 29% COMPROMISING 3% QUALITY… While competitors focused on Chain scale mix of net rooms growth Upscale and Upper Midscale & Midscale
Slide 4: …and transformed our portfolio
HANA-MAUI RESORT, HAWAII … AND TRANSFORMED OUR PORTFOLIO LUXURY, LIFESTYLE, OR RESORT ROOMS AS % OF PORTFOLIO 2017 – 2022 304K Luxury, Lifestyle, 135K or Resort 186K +76K All Other 59K Luxury, Lifestyle, or Resort Rooms 169K 127K 2017 2022 32% 44% portfolio mix of portfolio mix of Luxury, Lifestyle,
Slide 5: Since 2017, Hyatt has grown luxury, resort and lifestyle rooms
PARK HYATT ZANZIBAR, TANZINIA SINCE 2017, HYATT HAS: 2X 3X 4X Luxury Rooms Resort Rooms Lifestyle Rooms 18 224 13 New Countries New Sub-Markets Brands added entered entered Figures as fiscal year end 2022 and do not include vacation ownership, residential, or condominium ownership units. Figures cal
Slide 6: Hyatt has the fastest growing luxury portfolio
HYATT HAS THE FASTEST GROWING LUXURY PORTFOLIO Net change in Luxury Chain Scale rooms 2017 – 2022 +46K +25K +10K +7K HYATT ZIVA RIVIERA CANCUN, MEXICO Figures as fiscal year end 2022 and do not include vacation ownership, residential, or condominium ownership units. Figures calculated as of fiscal y
Slide 7: Commanding position in properties most valued by loyalty members
PARK HYATT ST. KITTS CHRISTOPHE HARBOUR, ST. KITTS HYATT IS DIFFERENTIATED WITH A COMMANDING POSITION IN PROPERTIES MOST VALUED BY OUR LOYALTY MEMBERS GLOBAL MARKET SHARE OF LUXURY BRANDED ROOMS IN RESORT LOCATIONS 18% 15% #1 Global Market share of Luxury Rooms in 7% Resort Locations 4% Figures as f
Slide 8: Hyatt is the premier hotel brand for high-end travelers
HYATT IS THE PREMIER HOTEL BRAND FOR HIGH-END TRAVELERS Average Rates $195 $173 $151 $124 ANDAZ MAUI AT WAILEA RESORT, HAWAII Reported figures as fiscal year end 2022. Source: 2017-2022 Earnings Releases and Annual Reports; Hyatt Hotels Corporation, Hilton Worldwide Holdings Inc., Marriott Internati
Slide 9: Hyatt's growth outlook is strong
HYATT’S GROWTH OUTLOOK IS STRONG PARK HYATT MALDIVES HADAHAA, INDONESIA 9
Slide 10: We expect to maintain our industry leading position
47,000 WE EXPECT TO 6-7% NRG CAGR MAINTAIN OUR 2024-2025 INDUSTRY LEADING 25,000 21,000 22,000 19,000 18,000 POSITION; NET 16,000 15,000 12,000 12,000 13,000 12,000 ROOMS GROWTH 9,000 OF 6-7% PLANNED 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2024E 2025E Organic Rooms M&A Rooms 7PINES RESORT SARD
Slide 11: Record pipeline fuels rooms growth
RECORD PIPELINE FUELS ROOMS GROWTH 580 117,000 PROPERTIES ROOMS Americas EAME Luxury1 Upper Upscale2 Franchised Managed ASPAC ALG Upscale & Upper Midscale3 7% 23% 29% 33% 40% Pipeline Pipeline Rooms Pipeline Rooms Rooms by by Type by Segment Chain Scale 49% 67% 21% 31% ALILA DIWA GOA, INDIA Figures
Slide 12: Our pipeline leads the industry as % of existing base
ANDAZ MUNICH SCHWABINGER OUR PIPELINE LEADS THE INDUSTRY AS % OF EXISTING BASE TOR, GERMANY ROOMS IN PIPELINE AS % OF EXISTING ROOMS 38% 37% 33% 31% ALILA SOLO, INDONESIA Figures calculated as fiscal year end 2022. Source: 2022 Earnings Releases and Annual Report; Hyatt Hotels Corporation, Hilton Wo
Slide 13: Significant opportunity to enter more markets and expand depth
SIGNIFICANT OPPORTUNITY TO ENTER MORE MARKETS AND EXPAND DEPTH IN EACH MARKET HOTELS PER MARKET GLOBAL MARKET COVERAGE: HYATT COMPARED TO PEERS Peer Average 14 100% Hotels per Market 4 Hotels per Market Top 200 Markets 93% 96% Middle 200 Markets 60% 63% Hyatt peers, on average, have 10 more hotels R
Slide 14: Attractive foundation for growth
ATTRACTIVE FOUNDATION FOR GROWTH BRAND AWARENESS, LOCATION IN TOP MARKETS, & PORTFOLIO DIFFERENTIATION PROVIDE AN OPPORTUNITY FOR SIGNIFICANT EXPANSION 95% 93% Hyatt brand awareness 1 in U.S., in line Hotel presence in top with top competitors & ahead of competitive set average 200 global markets HY
Slide 15: Backed by data
BACKED BY DATA OUR RESEARCH CONFIRMS THE OPPORTUNITY > 60 % When guests who stay at Hyatt also stay guest spend 1 with a competitor, nearly two-thirds of the time it is because: there is no Hyatt within 5 miles, or, the guest stayed at a lower chain scale hotel 1 Visa Consulting & Analytics, Decembe
Slide 16: Growing our footprint
HYATT HOUSE DENVER/ DOWNTOWN, COLORADO 250 + U.S. Submarkets GROWING OUR FOOTPRINT SIGNIFICANT OPPORTUNITY TO BROADEN OUR SUBMARKET Targeted PRESENCE IN THE UNITED STATES to Enter 100% U.S. submarket penetration gap that Hyatt plans to address Current Hyatt submarket penetration by location type Urb
Slide 17: An upper midscale brand conceived by developers
AN UPPER MIDSCALE BRAND CONCEIVED BY DEVELOPERS 17
Slide 18: Developer-driven approach
DEVELOPER-DRIVEN APPROACH BRAND RESPONSIVE TO GUEST & OWNER NEEDS Simple design that is intended to keep construction costs low Extended stay offering designed to be flexible for developer needs Operating model designed to be efficient, streamline hotel operations, & generate outsized returns 18
Slide 19: Boosts network effect and further accelerates industry leading growth
BOOSTS NETWORK EFFECT & FURTHER ACCELERATES INDUSTRY LEADING GROWTH INTEREST IS STRONG INTEREST EXPRESSED IN THE FOLLOWING MARKETS > 100 WA Area of focus ME VT MT ND MN The Hyatt Studios brand has NH letters of interest totaling OR NY MA WI RI more than 100 properties with ID SD CT MI the first sche
Slide 20: Multiple levers to drive industry leading growth
PARK HYATT MALDIVES HADAHAA, INDONESIA ILLUSTRATIVE ANNUAL NET ROOMS GROWTH OUTLOOK 2024 – 2025 MULTIPLE LEVERS TO DRIVE 6 –7 % % INDUSTRY LEADING GROWTH NEW CONSTRUCTION CONVERSIONS RAMPING UPPER MIDSCALE ~40% >20 % Pipeline r oom s ar e of Net Room s Gr owth under constr uction expected to com e f