Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Q3 2024 Earnings Presentation
24 slides from Hyatt Hotels's earnings presentation, Oct 31, 2024
Slide 1: Hyatt Investor Deck Third Quarter 2024
Hyatt Investor Deck THIRD QUARTER 2024 ALILA SHANGHAI N E W LY O P E N E D Q 3 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: Owned Hotel Dispositions Fueled Asset-Light Investments While Delivering Shareholder Returns
SINCE 2017: OWNED HOTEL DISPOSITIONS FUELED ASSET-LIGHT INVESTMENTS WHILE DELIVERING STRONG SHAREHOLDER RETURNS Asset $5.6B ~15.1x ~($340M) Dispositions Total Disposition Proceeds, Aggregate Adj. EBITDA † Adj. EBITDA † Reduction 2 Net of Purchases Multiple 1 $3.6B ~9.5x ~$380M Total Asset-Light Aggr
Slide 5: 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 6: Hyatt's 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: Global Hospitality Company Focused on Serving the High-End Traveler
BRUNFELS HOTEL, THE UNBOUND COLLECTION BY HYATT GLOBAL HOSPITALITY COMPANY FOCUSED ON SERVING THE HIGH-END TRAVELER 79 29 1,363 Countries Around Global Brands Hotels and All-Inclusive the World and 6 Continents Properties 326,845 #1 ~135,000 Rooms World’s Largest Portfolio Rooms in Pipeline of Luxur
Slide 8: Redefining Loyalty
REDEFINING LOYALTY U N D E R C A N VA S A C A D I A 51M 2024 Best Hotel Rewards Program World of Hyatt Members 2023 Best Hotel Loyalty Program 22% 44% J.D. Power & 2023 Highest in Overall Customer Satisfaction Membership Growth More Members per Hotel Associates (mobile app and web)2 Since Last Year
Slide 9: World of Hyatt Global Brands
World of Hyatt Global Brands As of September 30, 2024. 9
Slide 10: Quarterly Highlights
PARK HYATT MARRAKECH QUARTERLY HIGHLIGHTS 10
Slide 11: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS FINANCIAL RESULTS OPERATIONAL RESULTS $471M $4.63 + 3.0% + 4.3% NET DILUTED SYSTEM-WIDE NET ROOMS INCOME EPS HOTELS REVPAR◊ GROWTH $275M $268M + 10% + 22% ADJUSTED GROSS INCREASE OF ROOMS WORLD OF HYATT EBITDA † FEES IN PIPELINE MEMBER GROWTH ~135,000 | A NEW RECORD 51M | A NEW RE
Slide 12: Full Year 2024 Outlook
FULL YEAR 2024 OUTLOOK 3.0 - 4.0% $1,400M - $1,450M 7.75 - 8.25% System-Wide Hotels RevPAR ◊ Net Income Net Rooms Growth 1 1 1 1 4.0 - 4.5% 1 1 excluding Bahia Principe Transaction $ $ 1,100M 380M ~$ to to 1,250M $ $ 1,120M 410M Capital Returns to Adjusted EBITDA †1 Free Cash Flow † Shareholders 2 1
Slide 13: 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 14: Capital Allocation Strategy
ALILA SHANGHAI 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 14
Slide 15: Committed to Returning Capital Through Dividends & Share Repurchases
COMMITTED TO PARK HYATT MARRAKECH RETURNING CAPITAL THROUGH DIVIDENDS & SHARE REPURCHASES SHARE 2024 OUTLOOK QUARTERLY ~ $0.15 DIVIDEND 1 $982M REPURCHASE $1,250M FOR CAPITAL AUTHORIZATION 2 RETURNS 3 1 Fourth quarter dividend payable on December 6, 2024 to shareholders of record as of November 22,
Slide 16: Committed to Investment Grade
COMMITTED TO Senior Notes Maturities by Year Total Debt: $3.1B 1 INVESTMENT GRADE $M USD $1,240 Credit Ratings BBB- Baa3 BBB- Stable Stable Stable $600 $450 $400 $399 Liquidity STRONG POSITION WITH: $— $1.1B 2024 2 2025 2026 2027 2028 2029 & Beyond Cash, Cash Equivalents, & Short-Term Investments 1
Slide 17: 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 18: Appendix
HYALTT APPENDIX
Slide 19: 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 20: 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 21: Definitions
Definitions Net Package Revenue per Available Room ("RevPAR"): Net Package RevPAR is the product of the Net Package ADR and the average daily occupancy percentage. Net Package RevPAR generally includes revenue derived from the sale of package revenue comprised of rooms revenue, food and beverage, an
Slide 22: 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income attributable to Hyatt Hote
Slide 23: 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 $ 1,400 $ 1,450 Interest expense 175 175 Provision for income taxes 259 279 Depreciation and amortization 333 333 Contra revenue 74 74 Reimbursed c
Slide 24: Hyatt
HYALTT We ©”. for people so they can be their best.