Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Q2 2024 Earnings Presentation
22 slides from Hyatt Hotels's earnings presentation, Aug 6, 2024
Slide 1: Hyatt Investor Deck Second Quarter 2024
Hyatt Investor Deck SECOND QUARTER 2024 T H E L E G E N D PA R A C A S R E S O R T N E W LY O P E N E D Q 2 2 0 2 4 HYATT AND RELATED MARKS ARE TRADEMARKS OF HYATT CORPORATION OR ITS AFFILIATES. © 2024 HYATT CORPORATION. ALL RIGHTS RESERVED .
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: Investment Considerations
INVESTMENT CONSIDERATIONS 1 Simple and predictable asset-light business model Global portfolio of brands serving the high-end 76% $602M traveler in each of our segments Asset-Light Free Cash Flow† Earnings Mix◊2 Rooms, fees, pipeline, and loyalty membership growing at a faster rate than our larger c
Slide 4: Strategic Growth Across Multiple Dimensions
STRATEGIC GROWTH ACROSS MULTIPLE DIMENSIONS SYSTEM-WIDE ROOMS GROSS FEE REVENUE PIPELINE LOYALTY MEMBERS ASSET-LIGHT EARNINGS MIX ◊1 + % + % + % + % + 73 95 81 340 2,900 bps 322K 76% 127K 44M $970M 47% 186K 70K $498M 10M 2017 2023 2017 2023 2017 2023 2017 2023 2017 2023 1 Asset-Light Earnings Mix◊ i
Slide 5: Global Hospitality Company Focused on Serving the High-End Traveler
HYATT VIVID GRAND ISLAND GLOBAL HOSPITALITY COMPANY FOCUSED ON SERVING THE HIGH-END TRAVELER 78 29 1,352 Countries Around Global Brands Hotels and All-Inclusive the World and 6 Continents Properties 325,507 #1 ~130,000 Rooms World’s Largest Portfolio Rooms in Pipeline of Luxury Branded Rooms A Compa
Slide 6: Portfolio Uniquely Positioned; Expansion of Luxury, Resort, and Lifestyle Hotels
HYATT'S PORTFOLIO IS UNIQUELY POSITIONED; DRIVEN BY SIGNIFICANT EXPANSION OF LUXURY, RESORT, AND LIFESTYLE HOTELS 2017 1 2023 GROWTH HYATT GLOBAL SHARE3 LUXURY 43K 96K Doubled Luxury Rooms ROOMS #1 World's Largest Portfolio of Luxury Branded Rooms in Resort Locations RESORT ROOMS 23K 75K Tripled Res
Slide 7: World of Hyatt global brands
World of Hyatt global brands Based on brand bar as of June 30, 2024. 7
Slide 8: Quarterly Highlights
CAPTION BY HYATT NAMBA OSAKA QUARTERLY HIGHLIGHTS 8
Slide 9: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS FINANCIAL RESULTS OPERATIONAL RESULTS $359M $3.46 + 4.7% + 4.6% NET DILUTED SYSTEM-WIDE NET ROOMS INCOME EPS HOTELS REVPAR◊ GROWTH $307M $275M + 9% + 21% ADJUSTED GROSS INCREASE OF WORLD OF HYATT EBITDA † FEES ROOMS IN PIPELINE MEMBER GROWTH A NEW RECORD 130,000 | A NEW RECORD 48M
Slide 10: Full Year 2024 Outlook
MAISON MÉTIER FULL YEAR 2024 OUTLOOK % % 3.0 - 4.0 $1,055M - $1,115M 5.5 - 6.0 System-Wide Hotels RevPAR ◊ Net Income Net Rooms Growth $ $ $ 1,135M 560M 800M to to to $ $ $ 1,175M 610M 850M Adjusted EBITDA †1 Free Cash Flow † Capital Returns to Shareholders 2 1 During the quarter ended June 30, 2024
Slide 11: Earnings Growth Model Reflects Simplified and More Predictable Earnings
EARNINGS GROWTH MODEL REFLECTS SIMPLIFIED AND MORE PREDICTABLE EARNINGS EARNINGS GROWTH MODEL SENSITIVITIES FOR 2024 AND 2025 2025 Illustrative Earnings Mix before Overhead +/- +/- 1 point 1 point Owned & Leased % RevPAR ◊ Net Rooms Growth +/- in Adjusted EBITDA † 15 Distribution + = % 10 Asset-Ligh
Slide 12: Capital Allocation Strategy
PARK HYATT CHANGSHA CAPITAL ALLOCATION STRATEGY WE HAVE AND WILL CONTINUE TO: Invest in growth to increase shareholder value Return excess cash to shareholders Commit to an investment-grade profile 12
Slide 13: Committed to Returning Capital Through Dividends & Share Repurchases
COMMITTED TO H YAT T R E G E N C Y N A I R O B I W E S T L A N D S RETURNING CAPITAL THROUGH DIVIDENDS & SHARE REPURCHASES SHARE $800M 2024 OUTLOOK QUARTERLY $0.15 DIVIDEND 1 $1.6B REPURCHASE to FOR CAPITAL AUTHORIZATION 2 $850M RETURNS 3 1 Third quarter dividend payable on September 10, 2024 to sha
Slide 14: Committed to Investment Grade
COMMITTED TO Senior Notes Maturities by Year Total Debt: $3.9B 1 INVESTMENT GRADE $M USD $1,639 Credit Ratings BBB- Baa3 BBB- Stable Stable Stable $746 $600 Liquidity $450 $400 STRONG POSITION WITH: $2.0B Cash, Cash Equivalents, 2024 2 2025 2026 2027 2028 & Beyond & Short-Term Investments 2 1 Chart
Slide 15: What to Expect in 2024 and Beyond
WHAT TO EXPECT IN 2024 AND BEYOND… Durable and predictable asset-light earnings model designed to generate significant and expanding Free Cash Flow † Asset-Light Earnings Mix ◊ above 80%, underpinned by the successful completion of our asset disposition program Growth strategy focused on enhancing n
Slide 16: HYALTT
HYALTT We ©”. for people so they can be their best.
Slide 17: Appendix
HYALTT APPENDIX
Slide 18: Definitions
Definitions Adjusted Earnings Before Interest Expense, Taxes, Depreciation, and Amortization ("Adjusted EBITDA"): We use the term Adjusted EBITDA throughout this earnings release. Adjusted EBITDA, as we define it, is a measure that is not recognized in accordance with accounting principles generally
Slide 19: Definitions
Definitions Asset-Light Earnings Mix: Asset-Light Earnings Mix is calculated as Adjusted EBITDA from the management and franchising segment and distribution segment divided by Adjusted EBITDA, excluding overhead and eliminations. Our management uses this calculation to assess the composition of the
Slide 20: Definitions
Definitions Occupancy: Occupancy represents the total number of rooms sold divided by the total number of rooms available at a hotel or group of hotels. Occupancy measures the utilization of a hotel's available capacity. We use occupancy to gauge demand at a specific hotel or group of hotels in a gi
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in millions) Year Ended December 31, 2023 Net cash provided by operating activities $ 800 Capital expenditures (198) Free Cash Flow $ 602 (in millions) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income attributable to Hyatt Hotels Corporat
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Year Ended December 31, 2024 (in millions) Outlook Range Low Case High Case Net income attributable to Hyatt Hotels Corporation $ 1,055 $ 1,115 Interest expense 175 175 Provision for income taxes 161 191 Depreciation and amortization 345 345 Contra revenue 56 56 Reimbursed c