Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Investor Day (May 2023)
153 slides from Hyatt Hotels's investor day presentation, May 11, 2023
Slide 1: Investor Day 2023
Exhibit 99.1 Investor 2023 Day S E C R E T S M O X C H É A N D S E C R E T S I M P R E S S I O N M O X C H É , M E X I C O H Y A T T A N D R ELAT E D M AR K S A R E T R AD EM AR KS O F H Y AT T C OR POR AT I ON O R I T S A F F I LI AT E S. © 2 0 23 H Y AT T C OR POR AT I O N . A LL R I GH T S R ES E
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 our plans, strategies, outlook
Slide 3: Agenda
AGENDA OPENING | Noah Hoppe, SVP Investor Relations and FP&A THE NEW HYATT | Mark Hoplamazian, President & CEO Mark Hoplamazian, President & CEO | Rodrigo Llaguno, Group President, POWER OF THE ALG PLATFORM | Unlimited Vacation Club | Ray Snisky, Group President, ALG Vacations PERSONALIZING THE GUES
Slide 4: Speakers
SPEAKERS Mark Thomas Joan Pritzker Hoplamazian Bottarini E X E C U T I V E P R E S I D E N T & C H I E F E V P & C H I E F E X E C U T I V E O F F I C E R C H A I R M A N F I N A N C I A L O F F I C E R Mark Rodrigo Margaret Ray Egan Vondrasek Llaguno Snisky E V P & C H I E F G R O U P P R E S I D E
Slide 5: Hyatt Yesterday 2009
HYATT YESTERDAY 2009 H o te ls a s o f 2 0 0 9 Hotels Hotel Sub- Pipeline 399 120K ~270 27K Rooms Markets Rooms 2009 2009 2009 2009 5 F i gures are as of fi s c al y ear end 2009. S ub -Ma r k e ts defi ned by S mi th T rav el Res earc h as T rac ts bas ed on Dec embe r 2022 S T R c ons en s us . E
Slide 6: Hyatt Today 2022 + Pipeline
HYATT TODAY 2022 + PIPELINE H o te ls a s o f 2 0 2 2 P i p e line H o tel s a s o f 2 0 2 2 T R I P L E D N U M B E R O F H O T E L S , N E A R LY T R I P L E D N U M B E R O F R O O M S & S U B - M A R K E T S & Q U A D R U P L E D N U M B E R O F P I P E L I N E R O O M S S IN C E 2 0 0 9 ~ Hotel
Slide 7: The New Hyatt: Fee Based, Resilient, & Asset Light
THE NEW HYATT: FEE BASED, RESILIENT, & ASSET LIGHT MARK HOPLAMAZIAN | PRESIDENT & CHIEF EXECUTIVE OFFICER T H E D I W A C L U B B Y A L I L A , I N D I A 7
Slide 8: We care for people so they can be their best
We ©“. for people so they can be their best. HYALT
Slide 9: Hyatt's Intentional Evolution
HYATT’S INTENTIONAL EVOLUTION YESTERDAY TODAY TOMORROW 2009 2022 2025 ~$ $ 750M $ 60M 473M † † Free Cash Flow F ree C as h F low † Free C ash Flow > 1,500 1,263 Hotels 399 H otels Hotels % > % 75 80 37% à à1 A sset-Lig h t E arnings M ix As s et-Light Earnings M ix à Asset-Lig h t Earnings Mix 1ààà
Slide 10: Decisive, Thoughtful Actions Since 2007
DECISIVE, THOUGHTFUL ACTIONS SINCE 2007 POSITION HYATT AS A HIGH-GROWTH, ASSET LIGHT COMPANY PHASE 1: LAY THE GROUNDWORK PHASE 2: ACCELERATE GROWTH & ASSET-LIGHT EARNINGS MIX 2007 – 2016 2017-2022 Lead Industr y in Growth | Sell Owned Assets| Acquire Asset-Light Platfor ms Built Development Team Lau
Slide 11: Strategic Investments & Expansion of Brands Have Driven Loyalty
T H E B E E K M A N , N E W Y O R K STRATEGIC INVESTMENTS & EXPANSION OF BRANDS HAVE DRIVEN LOYALTY & PREFERENCE Select ORGANIC BRANDS Luxury PLATFORM S Service LAUNCHED Wellbeing ACQUIRED Luxury / Lifestyle Lifestyle All-Inclusive All-Inclusive LOYALTY PROGRAM RELAUNCH + DATA & DIGITAL INVESTM ENT
Slide 12: We're Transforming How We Work
WE’RE TRANSFORMING HOW WE WORK Outcome-Centricity Experimentation: Create, Test, Learn, and Adjust Rapidly DRIVING A CULTURE OF Push Decision Making Down & AGILITY Cross-Functional Collaboration and Decision-Making SPEED 12
Slide 13: A Fundamentally Different Company Today
A N D A Z B A L I , I N D O N E S I A Resulting in... A FUNDAMENTALLY DIFFERENT COMPANY TODAY Industry Leading Growth Strategic Investments in Transformation, Differentiation, & Driving a Culture of & Acquisitions Data, Digital, & Loyalty Cash Flow Generation Agility & Speed 13
Slide 14: Our Transformation Is Driving Value for Shareholders
OUR TRANSFORMATION IS DRIVING VALUE FOR SHAREHOLDERS… WE ARE MORE FEE BASED, ASSET LIGHT, CASH FLOW GENERATIVE, & RESILIENT > % $ 40 increase 473M †à † in Adjusted EBITDA + Net Deferrals + Net Free Cash Flow generation in 2022, à 1 Financed Contracts in 2022, over 2019 new record by nearly 50% $ ~$
Slide 15: We're Outpacing the Industry
… AND WE’RE OUTPACING THE INDUSTRY SYSTEM-WIDE ROOMS VS 2017 FEE REVENUE VS 2017 PIPELINE VS 2017 LOYALTY MEMBERS VS 2017 + % + % + % + % 64 62 67 260 +37% +31% +114% +22% +23% +21% +14% +61% +15% +8% +5% +15% S ourc e: P ubl i c fi l i ngs for Hy att Hotel s Corpor a ti o n , Hi l ton Worl dw i de
Slide 16: Global Macro Trends & Strategic Investments Provide Tailwinds
H Ô T E L D U P A L A I S B I A R R I T Z — T H E U N B O U N D C O L L E C T I O N B Y H Y A T T , F R A N C E GLOBAL MACRO TRENDS & STRATEGIC INVESTMENTS PROVIDE CONTINUED TAILWINDS Conversion Opportunities Strong Industry Explosive Growth & Resurgence of Group Strength and Resilience Fundamentals
Slide 17: Hyatt's Portfolio Is Optimally Positioned
HYATT’S PORTFOLIO IS OPTIMALLY POSITIONED… 1 † 2 2022 ROOM S REVENUE M IX 2022 ADJUSTED EBITDA M IX BY SEGM ENT BY HOTEL TYPE ~20% ~25% ~8% ~60% ~60% ~15% ~12% Lux ury , Lifes ty l e, Resort Select Serv ice Leisure Transient Busines s Transient Group Busines s / O ther Group/Conv e n ti on G R A N D
Slide 18: Vision, Mission, Values and Strategy
OUR VISION: A WORLD OF UNDERSTAN D ING AND CARE OUR M ISSION: WE DELIVER DISTINCT IVE EXPERIENCES FOR OUR GUESTS OUR VALUES: EM PATHY, EXPERIM ENT AT IO N, INCLUSION, INTEGRIT Y, RESPECT, WELLBEING …WE HAVE M AXIMIZE OUR CORE INTEGRATE NEW OPTIMIZE CAPITAL & OUR STRATEGY THE RIGHT BUSINESS GROWTH PL
Slide 19: Accelerating Our Transformation
ACCELERATING OUR TRANSFORMATION † UNLOCKING VALUE AND DRIVING FREE CASH FLOW A L I L A F O R T B I S H A N G A R H , I N D I A 19
Slide 20: Earnings from Acquisitions Have Doubled Earnings Lost from Dispositions
EARNINGS FROM ACQUISITIONS HAVE DOUBLED EARNINGS LOST FROM DISPOSITIONS SINCE 2017… ACQUIRED $3.6B SOLD $3.8B NET ASSET-LIGHT PLATFORMS REAL ESTATE AT ~8X MULTIPLE AT >16X MULTIPLE ~$à N et Finance d C ontrac ts 60M ~$ à 95M N et Deferr a ls † A djuste d E B ITDA ~$ ~$ ~$ 225M 300M 225M † Adjusted E
Slide 21: Asset-Light Trajectory Decreases Capital Expenditures
H Y A T T R E G E N C Y T H E S S A L O N I K I , G R E E C E … ASSET-LIGHT TRAJECTORY DECREASES CAPITAL EXPENDITURES ~$ 321M $ 201M 2017-2019 Capital 2022 Capital Expenditures Average Expenditures A v erage Capi tal E x pendi tur es c al c ul ate d from fi gures as of eac h res pec ti v e fi s c al
Slide 22: Resulting in Record Free Cash Flow
A L I L A K O T H A I F A R U M A L D I V E S , I N D O N E S I A † …RESULTING IN RECORD FREE CASH FLOW 473 † Free Cash Flow (In Millions, USD) Covid-19 Impacted 289 269 251 224 220 198 140 62 60 44 29 27 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 F i gures c al c ul
Slide 23: We Are More Fee Based, Asset Light... Journey Not Complete
A L I L A U B U D , I N D O N E S I A WE ARE MORE FEE BASED ASSET LIGHT CASH FLOW GENERATIVE RESILIENT … AND OUR JOURNEY IS NOT COMPLETE 23
Slide 24: Free Cash Flow Expected to Increase ~60% from 2022 to 2025
S C H L O S S R O X B U R G H E , U N I T E D K I N G D O M † FREE CASH FLOW EXPECTED TO INCREASE ~60% FROM 2022 TO 2025 DRIVEN BY OVER $1.2 BILLION IN FEE REVENUE † Free Cash Flow (In Millions, USD) 750 > % 550 80 473 Covid-19 Impacted 2025 Asset-Light 289 à 269 Earnings Mix Drives 251 224 220 † 19
Slide 25: Capacity to Expand Sell-Down Commitment Beyond 2024
CAPACITY TO EXPAND SELL -DOWN COMMITMENT BEYOND 2024: ESTIMATED $2.6B-$3.2B IN OWNED ASSET VALUE REMAINING AFTER COMPLETION OF CURRENT SELL -DOWN COMMITMENT ~$ $ $ 300M 13x to 15x 3.9B to 4.5B 1 Owned Hotel Adjusted EBITDA Assumed M ultiple $ Subtracting 1.3B Remaining Disposition Commitment by YE 2
Slide 26: Disciplined Approach to Acquisitions
DISCIPLINED APPROACH TO ACQUISITIONS WE WILL CONTINUE FOCUSING ON VALUE ACCRETIVE PLATFORMS WHILE RETURNING EXCESS CAPITAL TO SHAREHOLDERS Asset-Light Earnings Complementary or Adjacent Customer Base Significant Embedded & Prospective Growth Expands Geographic Footprint Offers Compelling Guest Exper
Slide 27: Strategic Acquisitions
STRATEGIC ACQUISITIONS A DEEPER DIVE INTO HYATT’S TRANSFORMATION M I R A V A L A R I Z O N A R E S O R T A N D S P A , A R I Z O N A 27
Slide 28: Acquisitions Transform Hyatt Portfolio
Acquired Acquired Acquired Acquired 2017 2018 2021 2023 ACQUISITIONS TRANSFORM HYATT PORTFOLIO, INCREASE GUEST CHOICE, ENHANCE LOYALTY, AND DRIVE STRONG RESULTS 28
Slide 29: Leading in Luxury: Miraval
LEADING IN LUXURY Miraval ext end s our reach int o wellbeing & is d eeply $915 valued by our most loyal Total Revenue PAR (TRevPAR) g uest s $487 ~$ 400M Acquisition Price + Development CapEx $186 ~$ 35M EBITDA PAR † 2023E Adjusted EBITDA $110 % 45 World of Hyatt Miraval U.S. Luxury Chain Scale Roo
Slide 30: Accelerating Growth: Two Roads Hospitality
ACCELERATING GROWTH 18 Two Road s Hospit alit y is a hig h-g rowt h plat f orm embraced by our members 12 ~$ 467M 10 Acquisition Price ~$ 50M 2023E Fees 5 % + 43 ~$ 30M World of Hyatt Estimated Stabilized Pipeline Fees Room Night At time of Acquisition As of Q1 2023 Contribution A L I L A V E N T A
Slide 31: Leading in All-Inclusive: ALG
LEADING IN ALL-INCLUSIVE ALG Resorts (Rooms) ALG has been our 34 most t ransf ormat ive acq uisit ion $ $ 231M 2.7B † 2022 Adjusted EBITDA Acquisition Price + 31 $ 94M à 2022 Net Deferrals % 21 + $ World of Hyatt 63M Room Night à 2022 Net Financed Contracts At Time of Acqusition Year-end 2022 Contri
Slide 32: Expanding Lifestyle Reach: Dream Hotel Group
EXPANDING LIFESTYLE REACH Dream Hot el G roup DHG Hotels acq uisit ion broad ens our lif est yle reach & 24 provid es d if f erent iated experience f or our loyal members 12 ~$ ~$ 125M 12M Ac quisition Pric e Expec ted Management 1 Fees of Open Hotels Open Hotels Signed Agreements Up to Up to Extend
Slide 33: Acquisitions Drive Differentiation and Long-Term Growth
S E C R E T S L A N Z A R O T E R E S O R T & S P A , S P A I N OUR ACQUISITIONS DRIVE DIFFERENTION & SERVE AS A PLATFORM FOR LONG-TERM GROWTH >50K ~20K Luxury, Lifestyle, or Resort Pipeline Hotel Rooms $ ~ > 500M 8X Stabilized Earnings Aggregate Earnings Multiple Contribution Estimate On Purchase P
Slide 34: Apple Leisure Group
APPLE LEISURE GROUP ASSET LIGHT, FEE BASED, VERTICAL LY INTEGRAT ED S E C R E T S I M P R E S S I O N M O X C H É , M E X I C O H Y A T T A N D R ELAT E D M AR K S A R E T R AD EM AR KS O F H Y AT T C OR POR AT I ON O R I T S A F F I LI AT E S. © 2 0 23 H Y AT T C OR POR AT I O N . A LL R I GH T S R
Slide 35: Speakers
S E C R E T S A K U M A L R I V I E R A M A Y A , M E X I C O SPEAKERS M A R K R O DR I G O R A Y H O P L A M A Z I A N L L A G U N O SN I SK Y P R E S I D E N T A N D G R O U P P R E S I D E N T , G R O U P P R E S I D E N T , C H I E F E X E C U T I V E U N L I M IT E D V A C A T I O N C L U B A L
Slide 36: Record Airlift into All-Inclusive Markets
S E C R E T S B A H I A M I T A S U R F & S P A R E S O R T , M E X I C O RECORD AIRLIFT INTO ALL -INCLUSIVE MARKETS REFLECTS GROWING POPULARITY 1 AIRLIFT TO TOP ALL-INCLUSIVE DESTINATIONS HAS INCREASED NEARLY 250% SINCE 2005; CONTINUES TO STRENGT HEN IN 2023 Airlift Seat Volume to Key All-Inclusive
Slide 37: 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-i ncl usive 1 Simplicity comparable set Guests value the convenience and ease of an all-inclusive offering, when they can also ensure great service, accom
Slide 38: Owners Love All-Inclusive
S E C R E T S H U A T U L C O R E S O R T & S P A , M E X I C O OWNERS LOVE ALL-INCLUSIVE 1 RELATIVE TO NON-ALL-INCL USIVE COMPARABL E SET , Owners value strong financial returns ALG OWNERS GENERAT E through high occupancy, effective cost management and high GOP margins Over 80% of hotels in the ALG
Slide 39: All-Inclusive Guests Prefer Luxury and Upper Upscale
ALL-INCLUSIVE GUESTS INCREASINGLY PREFER LUXURY AND UPPER UPSCALE B R E A T H L E S S NEARLY 80% OF ALL-INCLUSIVE ROOMS ADDED SINCE 2020 R I V I E R A C A N C U N R E S O R T & S P A , ARE IN THE LUXURY AND UPPER UPSCAL E CHAIN SCALE M E X I C O Mix of Rooms Added in All-Inclusive Segment by Decade
Slide 40: Apple Leisure Group
APPLE LEISURE GROUP I N N OVAT OR S OF L U X U R Y A L L - IN C L U S IV E D R E A M S N A T U R A R E S O R T & S P A , M E X I C O 40
Slide 41: ALG's End-to-End Solutions Drive Loyalty and Growth
S E C R E T S M O X C H É , M E X I C O 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- offeri
Slide 42: ALG Model Drives Significant Fee-Based Earnings
A L U A S O U L I B I Z A , S P A I N Management Membership Fees Revenues Primarily driven by Primarily driven by fees paid by hotel the sale of ALG MODEL DRIVES owners to manage or Unlimited Vacation AS S E T franchise a resort Club membership SIGNIFICANT FEE- property contracts L IGHT BASED EARNIN
Slide 43: ALG's Unique Competitive Advantages Have Led to Explosive Growth
Z O Ë T R Y M A L L O R C A , S P A I N ALG’S UNIQUE COMPETITIVE ADVANTAGES HAVE LED TO EXPLOSIVE GROWTH 34 32 Number of resort properties ~16% 25 grew from only 9 in 2007 to 24 CAGR 20 19 19 111 resorts 15 14 in 2022 13 12 10 8 6 5 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 44: ALG + Hyatt Inclusive Collection
A L G + H YAT T INCLUSIVE COLLECTION A L U A C A L A S D E M A L L O R C A R E S O R T , S P A I N 44
Slide 45: Largest Portfolio of Luxury All-Inclusive Resorts
Spain Balearic M ex ic o Bulgaria Dom inic an Spain C aribbean M ainland R epublic Portugal M ex ic o St. M artin Pac ific C uraç ao Aruba Spain C anary Greec e J am aic a C olom bia St. Luc ia Panam a C os ta R ic a F o o t p rin t a s o f D e c ’2 2 R e s orts R e s ort s Open C o m in g S o on IN
Slide 46: Leading Position in Luxury All-Inclusive
H Y A T T Z I V A C A P C A N A , D O M I N I C A N R E P U B L I C LEADING POSITION IN LUXURY ALL-INCLUSIVE THROUGH THE LAUNCH OF THE “INCLUSIVE COLLECTION” HYATT HAS A LEADING POSITION IN LUXURY ALL-INCLUSIVE % 33 Global Luxury Chain Scale All-Inclusive Market Share Global Luxury Chain Scale All-I
Slide 47: 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 S E C R E T S M O X C H É , M E X I C O 47
Slide 48: 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 49: Unlimited Vacation Club Is a Highly Valued Source of Demand
S E C R E T S M A R O M A B E A C H R I V I E R A C A N C U N , M E X I C O UNLIMITED VACATION CLUB IS A HIGHLY VALUED UNIQUE SOURCE OF DEMAND Active Member Growth ENGAGED (in thousand s) 131 MEMBERS 118 106 103 87 69 52 FUELS 38 PERFORMANCE 27 19 4 0 11 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 50: UVC Earnings Are Durable
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 25, 000 new contracts signed 2017-2019 20, 000 2021: Contracts 2016 Signed jumps after Covid
Slide 51: ALG Vacations
ALG VACATIONS O N E O F T H E L A R G E S T P R O V I D E R S O F L E I S U R E T R AV E L T O M E X I C O & T H E C A R I B B E A N S E C R E T S P L A Y A M U J E R E S G O L F & S P A R E S O R T , M E X I C O 51
Slide 52: ALG Vacations Supports Travel Advisors & Guests
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 53: ALG Vacations Share of Travelers to Key All-Inclusive Markets
Z O Ë T R Y M O N T E G O B A Y , J A M A I C A % 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 S ourc e: E s ti mated v ol ume of l ei s ure trav el ers i nto Mex i
Slide 54: ALG Vacations Helps Drive Strong Occupancy
ALG VACATIONS HELPS DRIVE STRONG OCCUPANCY TO ALG RESORTS 1 3 6 0 b p s h ig her o c cupancy in 2 0 2 2 1 vs . n o n -a ll-inclu sive c o mparable s e t p o wered b y AL G Ne twork, in c luding AL G Va c a tions 1 OCCUPANCY FOR ALG RESORTS COMPARE D TO A NON-ALL -I NCL USIVE COMPARABL E SET 90% AL G
Slide 55: Fueling the Continued Growth of ALG
FUELING THE CONTINUED GROWTH OF ALG Z O Ë T R Y C U R A Ç A O R E S O R T & S P A , C U R A Ç A O 55
Slide 56: World of Hyatt Fuels Continued Growth at ALG Resorts
D R E A M S L A S M A R E A S , C O S T A R I C A WORLD OF HYATT FUELS CONTINUED GROWTH AT ALG RESORTS > % Spend premium of World of Hyatt members 30 versus Non-Members at ALG resorts Since completion of ALG transaction, World of % % Hyatt member contributio n at 0 → 21 ALG resorts in the Americas P
Slide 57: New Resorts to Open in 2023
12 NEW RESORTS TO OPEN IN 2023, D R E A M S F L O R A R E S O R T & ADDING 5,000 ROOMS S P A , D O M I N I C A N R E P U B L I C Openings scheduled for 2023 in 8 destinations across 4 countries MEXICO PACIFIC CURAÇAO Zöetry Curaçao (Room Addition) Dreams Estrella del M ar BULGARI A MEXICO CARIBBE AN
Slide 58: ALG Segment Drives Significant Cash Flow Generation
B R E A T H L E S S C A N C U N S O U L R E S O R T & S P A , M E X I C O ALG SEGMENT DRIVES SIGNIFICANT CASH FLOW GENERATION ASSET-LIGHT PLATFORM HAS EXCEEDED EXPECTATIONS; FINANCIAL PERFORM ANCE DRIVES STRONG FREE CASH FLOW % Full-Year 2022 ALG Segment Financial Results ~75 †àà Adjusted EBITDA , N
Slide 59: Hyatt + ALG: We're Just Getting Started
H YAT T + A L G WE’RE JUST GETTING STARTED Z O Ë T R Y C A S A D E L M A R L O S C A B O S , M E X I C O 59
Slide 60: Personalizing the Guest & Customer Experience
L A Z A M B R A , S P A I N PERSONALIZING THE GUEST & CUSTOMER EXPERIENCE MARK VONDRASEK | EVP & CHIEF COMMERCIAL OFFICER 60
Slide 61: Boundless, Independent and Inclusive Collections
ana memanro GRAD Oran HRC. ; UrCove HYATT 8 ik BOUNDLESS COLLECTION INDEPENDENT COLLECTION M/RAVAL, ALLA. ANC Az, +o SmBR oq. BREN CHYATT, ‘je 2. INCLUSIVE COLLECTION se ZOETRY HYATT 4
Slide 62: We're Building from a Position of Strength
WE’RE BUILDING FROM A POSITION OF STRENGTH MEMBER GROWTH AND DIRECT CHANNEL VS 2019 MARKET SHARE VS 2019 LOYALTY PENETRATION VS 2017 + + + + 310BPS 220BPS 2.6X 1200BPS 2019 2022 2017 2022 2017 2022 2019 2022 Sy stem- W i de Sy stem- W i de Sy stem- W i de A L I L A V I L L A S U L U W A T U , I N D
Slide 63: Scale Affords Increased Investment
SCALE AFFORDS INCREASED INVESTMENT $ + % 22B 44 Our system is expected Increase in spend on behalf to generate $22B in of our hotels expected in 2023, revenue in 2023 relative to 2019 (excludes World of Hyatt and ALG) T H O M P S O N Z I H U A T A N E J O , M E X I C O Inc reas e i n s pend repres e
Slide 64: Insights Shaping Our Work
A N D A Z A M S T E R D A M P R I N S E N G R A C H T , N E T H E R L A N D S INSIGHTS SHAPING Changes in Why Care for the Wellbeing & Familiar, Flexible & How People Sustainability & Secure OUR WORK We Travel I Care About Passions Technology 64
Slide 65: Key Areas of Focus
G R A N D H Y A T T A M M A N , J O R D A N KEY AREAS OF FOCUS Harnessing Value Redefining Commercializing Wellbeing & 2 from Our Growth 1 Loyalty 3 Ancillary Offerings Reimagining Sales, Meetings Elevating Our Digital & 4 5 & Events Technology Platforms 65
Slide 66: Harnessing Value from Growth
HARNESSING VALUE FROM GROWTH O n A pri l 28, 2023 Hy att announc e d an agreem e n t to ac qui re Mr & Mrs S mi th; the trans ac ti o n i s anti c i pat ed to c l os e i n Q2 2023. T he Compan y 's l ong -ter m outl ook are bas ed on a number of as s umpti o ns that are s ubj ec t to c hange and man
Slide 67: Redefining Loyalty
REDEFINING LOYALTY “Best Hotel Rewards Program” “America’s Best Loyalty Program”
Slide 68: Building on Momentum in Loyalty
BUILDING ON MOMENTUM IN LOYALTY % + % 90 Stay 46 More of member room nights more stays in a year than WORLD OF HYATT are booked direct profiled non-members MEMBER VALUE + % 1 = 40 Spend 73 More 1 Globalist = the revenue average spend per year value of 40 non-members than profiled non-members F U J I
Slide 69: Differentiated Benefits from Strategic Alliances
P Á R I S I U D V A R H O T E L B U D A P E S T , H U N G A R Y DIFFERENTIATED BENEFITS FROM STRATEGIC ALLIANCES 69
Slide 70: A Unique Time and Opportunity to Shape Loyalty
H O T E L S O P H I A B A R C E L O N A , S P A I N Globalist “This is simply an awesome benefit. I used it recently for my brother…I love being able A UNIQUE TIME AND to treat my close friends and family to something special.” OPPORTUNITY Travel Advisor TO SHAPE WHAT LOYALTY “I love this idea as re
Slide 71: Video
[VIDEO] HYATT
Slide 72: Commercializing Wellbeing & Ancillary Offerings
A N D A Z C O S T A R I C A R E S O R T A T P E N I N S U L A P A P A G A Y O , C O S T A R I C A COMMERCIALIZING WELLBEING & ANCILLARY OFFERINGS 72
Slide 73: Iconic Experiences Offered at Scale
M I R A V A L B E R K S H I R E S R E S O R T A N D S P A , M A S S A C H U S E T T S ICONIC EXPERIENCES OFFERED AT SCALE 150+ wellbeing Targeted global alliances Branded, scaled & infused experiences globally with exclusive across the guest journey inspired by the hospitality collaborations brand l
Slide 74: Video
[VIDEO] HYATT
Slide 75: Commercializing at Scale
A N D A Z M A U I A T W A I L E A R E S O R T COMMERCIALIZING AT SCALE 75
Slide 76: Reimagining Sales, Meetings & Events
REIMAGINING SALES, MEETINGS & EVENTS 76
Slide 77: Building on Momentum in Sales, Meetings & Events
BUILDING ON MOMENTUM IN SALES, MEETINGS & EVENTS From 2019 to 2022 we HYATT PRIVÉ SALES GROWTH GROUP MARKET SHARE grew market share in % + + % 90 510BPS 116 of our top 10 corporate accounts A N D A Z L O N D O N L I V E R P O O L S T R E E T , U N I T E D K I N G D O M 2019 2022 2019 2022 F i gures
Slide 78: Reimagining Sales, Meetings & Events
REIMAGINING SALES, MEETINGS & EVENTS hyatt.com/events Redesign S trengthening Hyatt P rivé & Leverage E xtending World of Hyatt B enefits to Customers Together by Hyatt: Wellbeing & S ustainability 78
Slide 79: Video
[VIDEO] HYATT
Slide 80: Elevating Our Digital & Technology Platforms
ELEVATING OUR DIGITAL & TECHNOLOGY PLATFORMS 80
Slide 81: Building on Momentum in Digital
BUILDING ON MOMENTUM IN DIGITAL DIRECT CHANNEL VS 2019 20 MO NTHS + 310BPS OF DIGITA L DIRECT OU TPE RFORMING OTA’s + % 5 CLICK TO BO O K 2019 2022 % 40 Sy stem- W i de LO WER BO UNCE T H O M P S O N A T L A N T A — ON N EW P ROPERTY S ITES B U C K H E A D , G E O R G I A F i gures as of eac h res p
Slide 82: Elevating Our Digital Platforms
ELEVATING OUR DIGITAL PLATFORMS DISCOVERY SEARCH PERSONALIZATION 82 82
Slide 83: Elevating Our Technology Platforms
A L I L A M A N G G I S , I N D O N E S I A ELEVATING OUR TECHNOLOGY PLATFORMS PROFIT- BEST- SPEED-TO- OPTIMIZED IN-CLASS MARKET Revenue Management Central Reservations Integration System System Capabilities 83 83
Slide 84: Key Areas of Focus
KEY AREAS OF FOCUS H A R N E S S R E D E F I N E R E I M A G I N E S A L E S , V A L U E F R O M G R O W T H L O YA L T Y M E E T I N G S & E V E N T S C O M M E R C I A L I Z E E L E V A T E D I G I T A L W E L L B E I N G & A N C I L L A R Y & T E C H N O L O G Y 84
Slide 85: Growing with Intent
GROWING WITH INTENT MARK HOPLAMAZIAN | PRESIDENT & CHIEF EXECUTIVE OFFICER A L I L A W U Z H E N , C H I N A H Y A T T A N D R ELAT E D M AR K S A R E T R AD EM AR KS O F H Y AT T C OR POR AT I ON O R I T S A F F I LI AT E S. © 2 0 23 H Y AT T C OR POR AT I O N . A LL R I GH T S R ES ER VED . 85
Slide 86: Hyatt Has Led the Industry in Net Rooms Growth
HYATT HAS LED THE INDUSTRY IN NET ROOMS GROWTH FOR 6 CONSECUTIVE YEARS Hyatt NET ROOMS GROWTH 2017 – 2022 Marriott Hilton IHG + % + % + % + % + % + % 7.0 7.2 7.4 5.2 6.7 6.1 + + + + + + 50BPS 20BPS 80BPS 10BPS 200BPS 50BPS Ex cludin g: Two Roads & ALG 0.3% 5.6% 6.5% 4.0% 4.7% 7.0% 4.8% 4.8% 6.6% 5.6
Slide 87: We've Grown Without Compromising Quality
7 P I N E S R E S O R T I B I Z A , S P A I N Hyatt focused growth on Luxury properties to serve high-end customers Luxury Upper Upscale Upscale Upper M idscale WE’VE GROWN 39% 29% 29% WITHOUT COMPROMISING 3% QUALITY… While competito rs focused on Chain scale mix of net rooms growth Upscale and Uppe
Slide 88: Transformed Our Portfolio
H A N A - M A U I R E S O R T , H A W A I I … AND TRANSFORMED OUR PORTFOLIO LUXURY, LIFESTYLE, OR RESORT ROOMS AS % OF PORTFOLIO 2017 – 2022 304K Lux ury , Lifes ty l e, or Resort 135K 186K +76K All Other 59K Luxury, Lifestyle, or Resort Rooms 169K 127K 2017 2022 % % 32 44 portfol i o mix of portfol
Slide 89: Since 2017, Hyatt Has Grown Lifestyle, Luxury and Resort Rooms
P A R K H Y A T T Z A N Z I B A R , T A N Z I N I A SINCE 2017, HYATT HAS: 4X 2X 3X Lifestyle Rooms Luxury Rooms Resort Rooms 13 18 224 New Countries New Sub-Markets Brands added entered entered F i gures as fi s c al y ear end 2022 and do not i nc l ude v ac ati on ow ners hi p, res i denti al , or
Slide 90: 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 H Y A T T Z I V A R I V I E R A C A N C U N , M E X I C O F i gures as fi s c al y ear end 2022 and do not i nc l ude v ac ati on ow ners hi p, res i denti al , or c ondomi ni u m ow
Slide 91: Commanding Position in Luxury Resort Properties
P A R K H Y A T T S T . K I T T S C H R I S T O P H E H A R B O U R , S T . K I T T S 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
Slide 92: 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 A N D A Z M A U I A T W A I L E A R E S O R T , H A W A I I Report e d fi gures as fi s c al y ear end 2022. S ourc e: 2017-20 2 2 E arni ngs Rel eas es and A nnual Reports ; Hy att Hotel s Corpo ra ti o n, Hi
Slide 93: Hyatt's Growth Outlook Is Strong
HYATT’S GROWTH OUTLOOK IS STRONG P A R K H Y A T T M A L D I V E S H A D A H A A , I N D O N E S I A 93
Slide 94: Net Rooms Growth of 6-7% Planned
47,000 6-7% WE EXPECT TO NRG CAGR 2024 -2025 MAINTAIN OUR 25,000 22,000 21,000 INDUSTRY LEADING 19,000 18,000 16,000 15,000 13,000 POSITION; NET 12,000 12,000 12,000 9,000 ROOMS GROWTH OF 6-7% PLANNED 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2024E 2025E Organic Rooms M&A Rooms 7 P I N E S R E S
Slide 95: Record Pipeline Fuels Growth
RECORD PIPELINE FUELS 580 117,000 ROOMS GROWTH PROPERTIES ROOMS 1 2 America s EAME Lux ury Upper Upscale 3 Franchised Managed ASPAC ALG Upscale & Upper Midscal e 7% 23% 29% 33% 40% Pipeline Pipeline Rooms Pipeline Rooms Rooms by by Type by Segment Chain Scale 49% 67% 21% 31% A L I L A D I W A G O A
Slide 96: Our Pipeline Leads the Industry
OUR PIPELINE LEADS THE A N D A Z M U N I C H S C H W A B I N G E R T O R , G E R M A N Y INDUSTRY AS % OF EXISTING BASE ROOMS IN PIPELINE AS % OF EXISTING ROOMS 38% 37% 33% 31% A L I L A S O L O , I N D O N E S I A F i gures c al c ul ated as fi s c al y ear end 2022. S ourc e: 2022 E arni ng s Rel
Slide 97: Opportunity to Enter More Markets and Expand Depth
SIGNIFICANT OPPORTUNITY TO ENTER MORE MARKETS AND EXPAND DEPTH IN EACH MARKET HOTELS PER M ARKET GLOBAL M ARKET COVERAG E: HYATT COM PARED TO PEERS Peer Average 100% Top 200 Markets 93% 14 4 96% Hotels per Market Hotels per Market Middle 200 Markets 60% 63% Hyatt peers, on average, have Remaining Ma
Slide 98: Attractive Foundation for Growth
ATTRACTIVE FOUNDATION FOR GROWTH BRAND AWARENESS, LOCATION IN TOP MARKET S, & PORTFOLIO DIFFERENTIAT ION PROVIDE AN OPPORT UNIT Y FOR SIGNIFICANT EXPANSION % % 93 95 1 Hyatt brand awareness in U.S., in line Hotel presence in top with top competito rs & ahead of 200 global markets competitive set ave
Slide 99: Backed by Data: Research Confirms the Opportunity
BACKED BY DATA OUR RESEARC H CONFIRM S THE OPPORT UNIT Y > % 60 When guests who stay at Hyatt also stay 1 guest spend 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 V i s a Cons ul ti n g & A nal y
Slide 100: Growing Our Footprint: U.S. Submarkets
H Y A T T H O U S E D E N V E R / D O W N T O W N , C O L O R A D O + GROWING OUR FOOTPRINT 250 U.S. Submarkets SIGNIFICANT OPPORT UNIT Y 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 p
Slide 101: An Upper Midscale Brand Conceived by Developers
AN UPPER MIDSCALE BRAND CONCEIVED BY DEVELOPERS 101
Slide 102: 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 102
Slide 103: Hyatt Studios Interest Is Strong
BOOSTS NETWORK EFFECT & FURTHER ACCELERATES INDUSTRY LEADING GROWTH INTEREST IS STRONG INTEREST EXPRESSE D IN THE FOLLOWING MARKET S > ME A r e a o f f o c u s 100 WA VT ND MN MT T h e H y a t t S t u d i o s b r a n d h a s NH OR MA l e t t e r s o f i n t e r e s t t o t a l i n g NY WI RI CT SD m
Slide 104: Illustrative Annual Net Rooms Growth Outlook 2024-2025
P A R K H Y A T T M A L D I V E S H A D A H A A , I N D O N E S I A ILLUSTRAT IVE ANNUAL NET ROOM S GROWTH OUTLOOK 2024 – 2025 % % MULTIPLE LEVERS 6 – 7 TO DRIVE INDUSTRY LEADING NEW CONSTRUCTI ON CONVERSIONS RAMPING UPPER MIDSCALE GROWTH ~ > % 40% 20 Pipeline rooms are of Net Rooms Growth under con
Slide 105: World of Care
WORLD OF CARE MARGARET EGAN | EVP & GENERAL COUNSEL WORLD OF CARE EXECUTIVE SPONSOR G R A N D H Y A T T J A K A R T A A N D A L I L A S C B D J A K A R T A , I N D O N E S I A H Y A T T A N D R ELAT E D M AR K S A R E T R AD EM AR KS O F H Y AT T C OR POR AT I ON O R I T S A F F I LI AT E S. © 2 0 2
Slide 106: Video
[VIDEO] HYATT
Slide 107: World of Care Focus Areas
Climate Change & Water Conservation Diversity, Equity & Inclusion Fair & Ethical Business Waste & Circulari ty Colleague Development Risk Management Responsible Sourcing Wellbeing Data Privacy & Security Thriving Destinations Human Rights Working with Other Businesses Community Engagement & Voluntee
Slide 108: 2030 Environmental Goals
2030 ENVIRONMENTAL GOALS A HEALTHY ENVIRONMENT IS IMPORTANT FOR ALL PEOPLE TO BE THEIR BEST. HYATT IS COMMITTED TO ADVANCING ENVIRONMENTAL ACTION SO THAT DESTINATIONS AROUND THE WORLD ARE VIBRANT FOR OUR GUESTS, CUSTOMERS, COLLEAGUES & COMMUNITIES. The Company’s illustrative long -term goals for 203
Slide 109: Change Starts Here
CHANGE STARTS HERE WHO WE EMPLOY, DEVELOP, & ADVANCE 2x 10K Women & People Of Color Opportunity Youth in leadership positions by 2025 Hires by 2025 WHO WE SUPPORT WHO WE BUY FROM & WORK WITH $ 500 1 Million in multi-year grants to 6 non-profit New Black Suppliers organizations in the United States t
Slide 110: World of Care Governance
WORLD OF CARE GOVERNANCE Our Governance Structure Board of Directors Advances Organizational & Nominating and Corporate Governance Committee Understanding & Collaboration for ESG Topics & Identifies Direct Executive Sponsor: Responsibility for the General Counsel Alignment of Hyatt's Principles Acro
Slide 111: 2022 Reporting & Progress Update
2022 REPORTING & PROGRESS UPDATE 2021 GLOBAL REPORTING INITIATIVE (GRI) “I just started at Hyatt this week, and I am so impressed with all that I have seen so far about World of Care. I have been looking for a company that cares about its employees and the impact it has on the world around it.” – No
Slide 112: Global World of Care Recognition
GLOBAL WORLD OF CARE RECOGNITION ® Top 3 Ranking for Midcap Companies Ragan Communications CSR & Human Rights Campaign PEOPLE and Great Place to Work in Gaming & Lodging (2023) Diversity Awards Best Places to Work for LGBTQ+ Equality Companie s that Care (2022; 18 consecu t iv e y ears) (2022; 4 con
Slide 113: Global World of Care Recognition
GLOBAL WORLD OF CARE RECOGNITION P A R K H Y A T T Z U R I C H , S W I T Z E R L A N D 113
Slide 114: Video
[VIDEO] HYATT
Slide 115: Driving Financial Results
DRIVING FINANCIAL RESULTS JOAN BOTTARINI | EVP & CHIEF FINANCIAL OFFICER H O T E L F I G U E R O A , C A L I F O R N I A H Y A T T A N D R ELAT E D M AR K S A R E T R AD EM AR KS O F H Y AT T C OR POR AT I ON O R I T S A F F I LI AT E S. © 2 0 23 H Y AT T C OR POR AT I O N . A LL R I GH T S R ES ER
Slide 116: 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 our plans, strategies, outlook
Slide 117: Transforming Our Earnings Profile
Operational and Commercial Execution Leading to Record † Performance and Free Cash Flow Strong Outlook Supported by Optimal Positioning and Investment in Capabilities TRANSFORMING Industry Leading Growth Driven by Powerful Network OUR EARNINGS Effect and Brand Preference PROFILE Capital Allocation S
Slide 118: Achieved Strong Operational & Financial Results in 2022
P A R K H Y A T T S Y D N E Y , A U S T R A L I A A C H IE V E D S T R ON G OP E R AT I ON A L & F IN A N C IA L R E S U LT S IN 2 0 2 2 Operational Results Cash Flow & Capital Allocation $ $ $ $ $ 908M + 94M + 63M 473M 717M †àà † Adjusted EBITDA Net Deferrals Net Financed Contracts Free Cash Flow P
Slide 119: Hyatt Is Positioned for Strong Growth in 2023
P A R K H Y A T T S H A N G H A I , C H I N A HYATT IS POSITIONED FOR STRONG GROWTH IN 2023 Q1 2 0 2 3 RE S ULT S + % + % 43 33 àà System-wide RevPAR vs LY System-wide Net Package RevPAR vs LY + % + % 6 3 àà System-wide RevPAR vs 2019 Levels Asia Pacific RevPAR vs 2019 Levels F UL L - Y E A R 2 0 2
Slide 120: Outlook for 2023 Implies Another Year of Record Results
OUTLOOK FOR 2023 IMPLIES ANOTHER YEAR OF RECORD RESULTS 2023 OUTLOOK †àà Adjusted EBITDA + Net Deferrals + Net Financed Contracts + % (U S D in millions ) 23 % 1,225 23 +6% 60 -1% Growth Driv en by +4% +3% 120 +10% 63 65 2023 Outlook 1,000 63 94 12%-16% 94 Asset Light Accounts for: à System-wide Rev
Slide 121: Full-Year 2023 Outlook Is Strong
FULL-YEAR 2023 OUTLOOK IS STRONG % ~ % ~$ ~$ 12-16 6 225M 550M à † RevPAR Range Net Room s Growth Net Inc om e Free Cash Flow $ 1,020M ~$ ~$ to + 120M + 60M $ àà Net Deferrals Net Financ ed Contrac ts 1,070M † Adjusted EBIT DA A L I L A H I N U B A Y , O M A N T he Compan y ’ s 2023 outl ook i s bas
Slide 122: Growth Expected to Continue in 2024 & 2025
GROWTH EXPECTED TO CONTINUE IN 2024 & 2025 E X P E CT E D IL L U S T R AT IV E CAGR: 2 0 2 4 -2025 à à System-wide RevPAR Net Package RevPAR Net Rooms Growth % % % % % % 3 - 7 3 - 7 6 - 7 ALG Vacation s Departures Mov e Directiona l ly UVC Signed Contracts Mov e Directiona l ly à with Net Package Re
Slide 123: 2025 Illustrative Outlook Reflects Strong Momentum
2025 ILLUSTRATIVE OUTLOOK REFLECTS STRONG MOMENTUM †àà Adjusted EBITDA + Net Deferrals + Net Financed Contracts % 12 (U S D in millions ) CAGR 2024 & 2025 - - 1,400 70 + % 12 CAGR 120 2024-2025 Outlook 60 100 1,125 120 60 5% à System-wide RevPAR & Net 120 1,210 à Package RevPAR Growth Asset Light Ac
Slide 124: Earnings Model Sensitivities
EARNINGS MODEL SENSITIVITIES REFLECT A MORE RESILIENT, † ASSET LIGHT, & FREE CASH FLOW GENERATIVE BUSINESS KEY METRICS EARNINGS MODEL SENSITIVIT IES FOR 2024 AND 2025 à † † System-wide RevPAR O&L Adjusted EBITDA Fee-Based Adjusted EBITDA +/- 1 point ~$ $ ~$ $ 3 – 5M 8 – 12M à Net Package RevPAR +/-
Slide 125: Asset-Light, Fee-Driven Model Increases Cash Flow
ASSET-LIGHT, FEE-DRIVEN MODEL INCREASES CASH FLOW AND REDUCES VOLATILITY 9% 11% Benefits of Asset-Light Business > % 80 Model 2025 à • More Predictable Earnings Stream Asset-Light Earnings Mix Estimated Mix Driven by Top-Line Revenue 1 <20% by Source • Long-Term Durable Contracts $ 1.2B • Low Capita
Slide 126: Asset Light Transformation Drives Lower Capital Expenditures
ASSET LIGHT TRANSFORMATION DRIVES LOWER CAPITAL EXPENDITURES… 2025 ILLUSTRATIVE OUTLOOK (In million s, U S D) 1,400 70 120 1,210 ~$ 1,065 63 200M 94 Run-Rate Capital Expenditur es 908 Reduction 792 sinc e 2017 ~300 > pt ~200 ~100 33 0 2022 2025E 2017 à Asset-Ligh t Earnings Mix Midpoint Increase As
Slide 127: Higher Free Cash Flow Conversion
…AND HIGHER FREE CASH à FLOW CONVERSION 2025 ILLUSTRATIVE OUTLOOK (In million s, U S D) 1,400 70 120 1,210 ~$ 1,065 450M 63 94 † Free Cash Flow Growth 908 since 2017 54% 792 44% ~750 37% ~ pt 473 17 289 0 Free Cash Flow 2017 2022 2025E à Conversion Percentage Increase Midpoint since 2017 †àà † A dju
Slide 128: Significant Cumulative Cash Generation Over Next Three Years
C O M M U N E B Y T H E G R E A T W A L L , C H I N A † FREE CASH FLOW RESULTS IN SIGNIFICANT CUMULATIVE CASH GENERATION OVER THE NEXT THREE YEARS 2023E – 2025E CUMULATIVE RANGE at the Midpoint †à Adjusted EBITDA + Net Deferrals + à ~$ Net Financed Contracts 3.8B Illustra tive Outlook Range † Free C
Slide 129: Significant Cash on Hand to Invest and Increase Shareholder Returns
A L I L A H I N U B A Y , O M A N SIGNIFICANT CASH ON HAND TO INVEST IN GROWTH & INCREASE SHAREHOLDER RETURNS CUMULATIVE ILLUSTRATIVE 2023E TO 2025E † F r e e C a sh F l ow P o s t-T ax O & L D i sp osition P r oc eeds ~$ ~$ 1.1B 1.9B $1.3B O&L Disposi ti on Proceeds less ~15% assume d tax rate CASH
Slide 130: Invest for Growth: Prioritize Asset Light Platforms
INVEST FOR GROWTH: HYATT WILL CONTINUE TO PRIORITIZE INVESTMENTS IN ASSET LIGHT PLATFORMS Ac quired 2017 Ac quired 2018 Ac quired 2021 Ac quired 2023 $400M $467M $125M $2.7B Acquisition Price 1 Acquisition Price Acquisition Price Acquisitio n Price + Developmen t CapEx ~8X Aggregate Earnings Multipl
Slide 131: Committed to Returning Capital Through Dividends & Share Repurchases
A L I L A V I L L A S U L U W A TU , I N D O N E S I A COMMITTED TO RETURNING CAPITAL THROUGH DIVIDENDS & EXCESS CASH THROUGH SHARE REPURCHASES QUA RTERLY DIVIDEN D REINSTA TED SHA RE REPURC HA S E A UTHORIZA TI O N Hyatt resumes cash dividends, declaring a $ Hyatt increases authoriz atio n by $1 bi
Slide 132: Committed to Investment Grade
H Y A T T P L A C E P A N A M A C I T Y B E A C H / B E A C H F R O N T , F L O R I D A COMMITTED TO Debt Maturity by Year INVESTMENT GRADE Total Debt: $3.1B $M USD Credit Ratings BBB- Baa3 BBB- Stable Stable Negative 848 749 Liquidity 660 Strong position with: 452 404 $1.2B $1.5B Cash, Cash Equival
Slide 133: Unlocking Value Through Asset Sales
UNLOCKING VALUE THROUGH ASSET SALES IS CORE TO OUR LONG-TERM STRATEGY TOTAL 2017 2018 2019 2020 2021 2022 1 $305M $1.4B $956M $11M $779M $852M $4.3B Asset Sales GH San Francisco HR Atlanta HR Baku HR Lost Pines HR Indian Wells HR Scottsdale AZ Maui GH Seoul HR Lake Tahoe GH San Antonio Royal Palms R
Slide 134: High Quality & Diverse Asset Base Provides Optionality
HIGH QUALITY & DIVERSE ASSET BASE PROVIDES OPTIONALITY FOR CURRENT COMMITMENT & BEYOND CURRENT PORTFOLIO OF OWNED ASSETS AT 13 – 15X MULTIPLE IMPLIES $3.9B – $4.5B OF VALUE IRREPLACEABL E LUXURY LUXURY WELLBEING/RESORTS BUSINESS/OTHER GROUP/CONVENTION 5 HOTELS 4 HOTELS 7 HOTELS 7 HOTELS H Y A T T G
Slide 135: Irreplaceable Luxury Hotels
P A R K H Y A T T C H I C A G O P A R K H Y A T T N E W Y O R K P A R K H Y A T T Z U R I C H ààà ~$500 A DR ~$1,050 A DR ~$750 A DR IRREPLACEABLE LUXURY P A R K H Y A T T P A R I S - V E N D Ô M E A N D A Z L O N D O N L I V E R P O O L S T R E E T 5 Iconic Sought After Locations à ~$à ~$1,000 A DR
Slide 136: Luxury Wellbeing and Resorts
M I R A V A L A R I Z O N A M I R A V A L A U S T I N R E S O R T A N D S P A R E S O R T A N D S P A ~$1,800 TRev P OR ~$1,500 TRev P OR ~410 A cres ~240 A cres LUXURY WELLBEING/ RESORTS High barrier to entry resorts on H Y A T T R E G E N C Y A R U B A M I R A V A L B E R K S H I R E S R E S O R T
Slide 137: Group & Convention Hotels
H Y A T T R EG EN C Y O R LA N DO ~204K S Q. FT GROUP & CONVENTION HOTELS UNIQUELY POSIT IONED WITH OVER 400K SQ. FT OF AGGREGAT E MEETING SPACE; STRONG GROUP DEMAND TRENDS WITH VERY LIMITED NEW CONVENT ION HOTEL SUPPLY H Y A T T R EG EN C Y B A L T I M OR E H Y A T T R EG EN C Y P H O E N I X H Y A
Slide 138: Shift Towards Asset Light Continues
SHIFT TOWARDS ASSET LIGHT CONTINUES à ASSET-LIGHT EARNINGS MIX + + 2800 bps 500 bps 2026 & BEY OND 2017 2022 Illustrativ e Ongoing shift 2025 + % % > % 100bps 47 75 80 per year and ability to shift further through monetizing owned assets T H E C A R O L I N A I N N , N O R T H C A R O L I N A F i gu
Slide 139: Transforming Our Earnings Profile
Operational and Commercial Execution Leading to Record † Performance and Free Cash Flow Strong Outlook Supported by Optimal Positioning and Investment in Capabilities TRANSFORMING Industry Leading Growth Driven by Powerful Network OUR EARNINGS Effect and Brand Preference PROFILE Capital Allocation S
Slide 140: Appendix 2023
Appendix 2023 S E C R E T S M O X C H É A N D S E C R E T S I M P R E S S I O N M O X C H É H Y A T T A N D R ELAT E D M AR K S A R E T R AD EM AR KS O F H Y AT T C OR POR AT I ON O R I T S A F F I LI AT E S. © 2 0 23 H Y AT T C OR POR AT I O N . A LL R I GH T S R ES ER VED .
Slide 141: 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 our plans, strategies, outlook
Slide 142: 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 earnings release. Adjusted EBITDA and EBITDA, as we define them, are non-GAAP measures. We define consolidated Adjust
Slide 143: Definitions
DEFINITIONS Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Losses) per Share (EPS): Adjusted net income (loss) and Adjusted Diluted EPS, as we define them, are non-GAAP measures. We define Adjusted net income (loss) as net income (loss) attributable to Hyatt Hotels Corporation excluding s
Slide 144: Definitions
DEFINITIONS Revenue per Available Room (RevPAR): RevPAR is the product of the average daily rate and the average daily occupancy percentage. RevPAR does not include non-room revenues, which consist of ancillary revenues generated by a hotel property, such as food and beverage, parking, and other gue
Slide 145: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
NON-GAAP MEASURES RECONCILIATION RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO F REE CASH FLOW 2008-2022 (In Millions, USD) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2022 Net Cash Provided by Operating Activities 287 276 450 393 499 456 473 538 462 587 341 396 674
Slide 146: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
NON-GAAP MEASURES RECONCILIATION RECONCILIATION OF NET INCOME TO EBITDA AND EBITDA TO ADJUSTED EB ITDA 2022, 2019, 2017 (In M illions, USD) 2017 2019 2022 Net income 389 1,263 455 Interest expense 80 75 150 (Benefit)Provision for income taxes 332 (257) (92) Depreciation and amortization 348 329 426
Slide 147: 2023 Outlook: Net Income to Adjusted EBITDA
2023 NON-GAAP MEASURES RECONCILIATION OUTLOOK: NET INCOME TO EBITDA AND EBITDA TO ADJUSTED EBITDA 2023E (In Millions, USD) 2023 Outlook Ranges Low Case High Case Net income 197 255 Interest expense 127 127 Provision for income taxes 141 154 Depreciation and amortization 386 386 EBITDA 850 922 Contra
Slide 148: 2023 Outlook: Net Income to Free Cash Flow
2023 NON-GAAP MEASURES RECONCILIATION OUTLOOK: NET INCOME TO FREE CASH FLOW 2023E (In Millions, USD) 2023 Outlook Ranges Low Case High Case Net income attributable to Hyatt Hotels Corporation 196 254 Stock-based compensation expense 68 68 Income Taxes 13 20 Depreciation and amortization 386 386 Othe
Slide 149: 2023 Outlook: SG&A to Adjusted SG&A
2023 NON-GAAP MEASURES RECONCILIATION OUTLOOK: SG&A EXPENSES TO ADJUSTED SG&A EXPENSES 2023E (In Millions, USD) 2023 Outlook Ranges Low Case High Case SG&A Expenses 546 556 Less: Rabbi Trust Impact (a) - - Less: Stock Based Compensation Expense (66) (66) Adjusted SG&A Expenses 480 490 (a) Impac t of
Slide 150: 2025 Outlook: Net Income to Adjusted EBITDA
2025 NON-GAAP MEASURES RECONCILIATION OUTLOOK: NET INCOME TO EBITDA AND EBITDA TO ADJUSTED EBITDA 2025E (In Millions, USD) 2025 Illustrative Outlook Ranges Low Case High Case Net income 251 419 Interest expense 130 130 Provision for income taxes 222 316 Depreciation and amortization 336 336 EBITDA 9
Slide 151: 2025 Outlook: Net Income to Free Cash Flow
2025 NON-GAAP MEASURES RECONCILIATION OUTLOOK: NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES AND NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW 2025E (In Millions, USD) 2025 Illustrative Oultook Ranges Low Case High Case Net income attributable to Hyatt Hotels Corporation 251
Slide 152: 2023-2025 Cumulative: Net Income to Adjusted EBITDA
2023-2025 CUMULATIVE NON-GAAP MEASURES RECONCILIATION OUTLOOK: NET INCOME TO EBITDA AND EBITDA TO ADJUSTED EBITDA 2023-2025E Cumulative (In M illions, USD) 2023-2025 Cumulative Illustrative Outlook Ranges Low Case High Case Net income 634 990 Interest expense 402 402 Provision for income taxes 531 7
Slide 153: 2023-2025 Cumulative: Net Income to Free Cash Flow
2023-2025 CUMULATIVE NON-GAAP MEASURES RECONCILIATION OUTLOOK: NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES AND NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW 2023-2025E Cumulative (In M illions, USD) 2023-2025 Cumulative Illustrative Outlook Ranges Low Case High Case Net inc