Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Q1 2024 Earnings Presentation
21 slides from Hyatt Hotels's earnings presentation, May 9, 2024
Slide 1: Hyatt Investor Deck First Quarter 2024
Hyatt Investor Deck FIRST QUARTER 2024 S E C R E T S P L AYA B L A N C A C O S TA M U J E R E S N E W LY O P E N E D Q 1 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: Global hospitality company focused on serving the high-end traveler
ALILA KOTHAIFARU MALDIVES GLOBAL HOSPITALITY COMPANY FOCUSED ON SERVING THE HIGH-END TRAVELER 78 29 1,341 Countries Around Global Brands 1 Hotels and All-Inclusive the World and 6 Continents Properties 323,405 #1 ~129,000 Rooms World’s Largest Portfolio Rooms in Pipeline of Luxury Branded Rooms A Co
Slide 4: World of Hyatt global brands
World of Hyatt global brands Global Brands based on Inventory as of March 31, 2024, with addition of Hyatt Studios. 4
Slide 5: Hyatt's portfolio is uniquely positioned; significant expansion of luxury, resort, lifestyle
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 6: Investment considerations and strategic vision
INVESTMENT CONSIDERATIONS AND ◊ 76% Asset-Light Earnings Mix 3 in 2023, STRATEGIC VISION 1 DATA AS OF YEAR END 2023 compared to 47% in 2017 76% $602M Rooms, fees, pipeline, and loyalty membership growing at a faster rate than our Asset-Light Free Cash Flow† Earnings Mix◊ larger competitors Operation
Slide 7: Strategic growth across multiple dimensions
STRATEGIC GROWTH ACROSS MULTIPLE DIMENSIONS SYSTEM-WIDE ROOMS GROSS FEE REVENUE PIPELINE LOYALTY MEMBERS ASSET-LIGHT EARNINGS MIX ◊1 + % + % + % + % + bps 73 95 81 340 2,900 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 8: Quarterly Highlights
FUJI SPEEDWAY HOTEL QUARTERLY HIGHLIGHTS 8
Slide 9: Q1 2024 Highlights
THOMPSON HOUSTON N E W LY O P E N E D Q 1 2 0 2 4 Q1 2024 HIGHLIGHTS FINANCIAL RESULTS HIGHLIGHTS $522M $58 $4.93 $252M $262M • Hyatt named one of the “100 Best Companies to Work For” by Fortune and Great Places to Work, marking the eleventh year in a row M • >700 Mr & Mrs Smith properties now avail
Slide 10: Full Year 2024 Outlook Is Strong
FULL YEAR 2024 OUTLOOK IS STRONG % % 3.0 - 5.0 $1,135M - $1,195M 5.5 - 6.0 System-Wide Hotels RevPAR ◊ Net Income Net Rooms Growth $ $ $ 1,150M 575M 800M to to to $ $ $ 1,190M 625M 850M Adjusted EBITDA † Free Cash Flow † Capital Returns to Shareholders 1 R O N I L G O A , J D V B Y H YAT T 1 Figure
Slide 11: Updated earnings growth model reflects simplified and more predictable earnings
UPDATED 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 As
Slide 12: Capital Allocation Strategy
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 PARK HYATT ZURICH 12
Slide 13: Committed to returning capital through dividends & share repurchases
COMMITTED TO A L I L A V I L L A S U L U WAT U RETURNING CAPITAL THROUGH DIVIDENDS & SHARE REPURCHASES QUARTERLY DIVIDEND SHARE REPURCHASE AUTHORIZATION $800M 2024 OUTLOOK INCREASED $0.15 Hyatt declares a $0.15 per $1.8B Hyatt increases authorization to Hyatt increases 2024 outlook per share share c
Slide 14: Committed to Investment Grade
COMMITTED TO Senior Notes Maturities by Year Total Debt: $3.1B 1 INVESTMENT GRADE $M USD Credit Ratings $839 BBB- Baa3 BBB- $746 Stable Stable Stable $600 $450 $400 Liquidity STRONG POSITION WITH: $0.8B Cash, Cash Equivalents, 2024 2025 2026 2027 2028 & Beyond & Short-Term Investments $1.5B 1 Chart
Slide 15: What to expect in 2024 and beyond
WHAT TO EXPECT IN 2024 AND BEYOND… Sale of majority interest in Unlimited Vacation Club and segment realignment leads to simplified business model Increasing Asset-Light Earnings Mix ◊ (> 80%), underpinned by the successful completion of our asset disposition program Growth that enhances network eff
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 Average Daily Rate ("ADR"): ADR represents hotel room revenues, divided by the total number of rooms sold in a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer
Slide 20: 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 March 31, 2024 2023 Net income attributable to Hyatt Hotels Corporation $ 522 $ 58 Interest expense 38
Slide 21: 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 $ 1,135 $ 1,195 Interest expense 151 151 Provision for income taxes 149 179 Depreciation and amortization 340 340 Contra revenue 54 54 Reimbursed c