Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Raymond James 34th Annual Institutional Investors Conference 2013
20 slides from Hyatt Hotels's conference presentation, March 2013
Slide 1: Hyatt Hotels Corporation – Raymond James 34th Annual Institutional Investors Conference
Hyatt hotels corporation Raymond James 34th annual institutional investors conference March 2013
Slide 2: Forward looking statements
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, occupancy and ADR tr
Slide 3: Mission / Goal / Values
MISSION / GOAL / VALUES MISSION To provide authentic hospitality by making a difference in the lives of the people we touch every day, including our associates, guests and owners GOAL To become the most preferred brand in each customer segment that we serve for our associates, guests and owners VALU
Slide 4: Hyatt at a Glance
HYATT AT A GLANCE Global hospitality company with 50+ year history and a long-term strategic focus 500 properties across 7 premier lodging brands and one residential brand 46 countries with presence in many key gateway cities Owner, manager, franchisor Diverse earnings streams with strong balance sh
Slide 5: Global Footprint with Premier Brands – 500 Properties in 46 Countries
GLOBAL FOOTPRINT WITH PREMIER BRANDS – 500 PROPERTIES IN 46 COUNTRIES GRAND HYATT HYATT PARK HYATT ANDAZ HYATT HYATT PLACE HYATT HOUSE HYATT REGENCY RESIDENTIAL 30 HOTELS 9 HOTELS 38 HOTELS 28 HOTELS 144 HOTELS 172 HOTELS 54 HOTELS 25 PROPERTIES 6,014 1,823 21,515 6,948 66,841 22,335 7,603 2,065 ROO
Slide 6: Strategy Drives Brand Preference and Shareholder Value
STRATEGY DRIVES BRAND PREFERENCE AND SHAREHOLDER VALUE Focus on Improvement in the Expanding Our Presence Performance of Existing Hotels in Attractive Markets • Increase presence • Increase share of hotel stays − existing markets • Enhance operational efficiency − emerging market expansion • Enhance
Slide 7: Diverse portfolio with strong base of owned and managed properties
Diverse portfolio with strong base of owned and managed properties 135,144 rooms / 500 properties* Total Room Portfolio Mix Total Rooms by Brand Rooms by Region Residential Property Hyatt House Hyatt Residences Andaz Other Other Americas Americas Vacation Southwest Asia Unconsolidated 1,102 7,603 1,
Slide 8: Presence in key global markets
Presence in key global markets Asia Pacific Americas Subtotal: 53 Subtotal: 368 Other Americas Subtotal: 8 EAME/SW Asia Subtotal: 54 Global Headquarters Offices Owned, Leased and Unconsolidated Hospitality Ventures Managed and Franchised Note: As of December 31, 2012 Note: Excludes residence and tim
Slide 9: Operating leverage from significant owned and managed portfolio
operating leverage from Significant owned and managed portfolio Adjusted EBITDA 1,2 ~5% ~10% Owned & Leased ~5% Americas Management & Franchising ~50% ASPAC Management & Franchising ~30% EAME / SW Asia Management Unconsolidated Hospitality Ventures 1 Represents approximate segment mix based on 2012
Slide 10: Owned and Leased Market and Brand Mix
owned and leased market and Brand mix Top owned and leased markets by Owned and Leased Adjusted Adjusted EBITDA 1 EBITDA Brand Mix 1 12% 11% 8% Park Hyatt, Andaz, 5% 5% 5% 5% ~20% Grand Hyatt 4% 4% 4% 4% ~40% Hyatt Regency, Hyatt Hyatt Place, Hyatt 0% ~40% House 1 Represents 2012 owned and leased Ad
Slide 11: Owned and Leased Margin Continues to Improve
Owned and leased Margin continues to improve Owned and Leased Operating Margin 1 26% 25% 23% 23% 22% 20% 18% 2006 2007 2008 2009 2010 2011 2012 Adjusted EBITDA 2 708 687 628 606 538 476 406 2006 2007 2008 2009 2010 2011 2012 1 Owned and leased operating margin is defined as the margin on owned and l
Slide 12: Owned / Venture Hotels in Key Gateway Cities
Owned / Venture Hotels in Key Gateway Cities allow hyatt to benefit from global travel trends Chicago, IL New York, NY Mexico City, Mexico Washington, D.C. San Francisco, CA Park Hyatt Chicago Grand Hyatt New York Hyatt Regency Mexico City Park Hyatt Washington Grand Hyatt San Francisco 198 Rooms 1,
Slide 13: Recent Innovative Transactions – Maintaining and Expanding Presence
Recent innovative transactions – maintaining and Expanding presence • Hyatt Regency Birmingham • Acquired for ~$43M with plans to invest ~$10M in renovations • Expect >$5M of Adj. EBITDA in 2013 • Hotel has operated as a Hyatt-branded hotel since opening in 1990 • Long-term management agreements for
Slide 14: Additional Progress on Recycling Capital
Additional progress on Recycling capital • Innovative transactions with Summit Hotel Properties – Sale of 11 select service hotels (1,469 rooms) • Aggregate sales price of ~$123M • ~11.5x trailing 12-month EBITDA multiple; ~7.3% trailing 12-month cap rate • Continue to manage under long-term agreeme
Slide 15: Recent and Near-Term Hotel Openings Provide Entry Into New Markets
Recent and Near-Term Hotel Openings Provide Entry Into New Markets Chongqing, China Maui, USA Kuala Lumpur, Malaysia Amsterdam, Netherlands Hyatt Regency Chongqing Andaz Maui at Wailea Grand Hyatt Kuala Lumpur Andaz Amsterdam 321 Rooms 297 Rooms 412 Rooms 122 Rooms Opened 3Q 2012 Expected Opening 20
Slide 16: High-value Executed Contract Base
High-value Executed contract Base Executed contract base of approximately 200 hotels and 45,000 rooms 1 • Almost half are international full service hotels • Grown executed contract base ~67% from 120 hotels (27,000 rooms) to 200 hotels (45,000 rooms) • Executed contract base represents ~35% of exis
Slide 17: Executed Contract Base Mix
Executed contract base mix Rooms by Region Rooms by Brand Americas 25% Park Hyatt, Andaz, 31% 36% 33% Grand Hyatt ASPAC Hyatt Regency, Hyatt Hyatt Place, Hyatt 33% EAME / SW Asia 42% House Rooms by Ownership / Contract Type 7% 18% Owned, Leased and Unconsolidated Hospitality Ventures Managed 75% Fra
Slide 18: Corporate Finance Highlights
Corporate finance highlights • One of the highest credit ratings among lodging peers • Approximately $1B of cash, equivalents and short-term investments • Undrawn borrowing capacity of $1.4B under revolving credit facility • Approximately $63M remaining under the Company’s $200M share repurchase aut
Slide 19: Investment Highlights
Investment Highlights Global hospitality platform with high quality hotels located in desirable markets World class brands and long-term strategic focus on brand preference Diverse earnings streams and growth opportunities Disciplined financial approach with strong balance sheet and significant liqu
Slide 20: Hyatt – You're More Than Welcome
HYALT YOU’RE more THAN WELCOME HYALT™
Hyatt Hotels — Raymond James 34th Annual Institutional Investors Conference 2013 on 6ix