Hyatt Hotels Corporation · NYSE:H
Hyatt Hotels — Investor Day (November 2016)
104 slides from Hyatt Hotels's investor day presentation, Nov 22, 2016
Slide 1: Growing with Focus
GROWING WITH FOCUS November 22, 2016GROWING WITH FOCUS November 22, 2016
Slide 2: Video Introductory
VIDEO Introductory
Slide 3: Welcome and Opening Remarks
BRIAN KARABA Treasurer and Senior Vice President, Investor Relations and Corporate Finance Welcome and Opening Remarks
Slide 4: Disclaimers
HYATT / GROWING WITH FOCUS 2016 Disclaimers 4 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements includes statements about Hyatt Hotels Corporation s ( Hyatt or the Company ) pl
Slide 5: Overview of Agenda
HYATT / GROWING WITH FOCUS 2016 Overview of Agenda Pat Grismer Chief Financial Officer Tom Pritzker Executive Chairman of the Board Maryam Banikarim Chief Marketing Officer Mark Hoplamazian President and Chief Executive Officer 5
Slide 6: Hyatt at a glance: properties, countries, colleagues
HYATT / GROWING WITH FOCUS 2016 54 645 PROPERTIES 60 YEAR HISTORY 100,000 COLLEAGUES COUNTRIES 6CONTINENTS across 6 54 Countries across 6 Continents 645 Properties 60 Year History 100,000 Collegues One of 25 Companies Named World s Best Multinational Workplace World of Hyatt Park Hyatt Grand Hyatt H
Slide 7: Hotel Portfolio Has Grown Nearly 70% Since IPO
HYATT / GROWING WITH FOCUS 2016 Hotel Portfolio Has Grown Nearly 70% Since IPO 2009 2016F* Total Hotels (1) 8% CAGR 7 399 >664 (1) Total Hotels; includes All-Inclusive properties; excludes branded residences, serviced apartments and vacation ownership properties * Company s forecasts are based on
Slide 8: Adjusted EBITDA Has Grown 9% Annually Since 2009
HYATT / GROWING WITH FOCUS 2016 Adjusted EBITDA Has Grown 9% Annually Since 2009 $425 $785-795 2009 2016F(1) Adjusted EBITDA (Millions) 9% CAGR 8 * (1) Our forecast of Adjusted EBITDA assumes no additional material acquisitions or dispositions during the remainder of 2016 * Company s forecasts are b
Slide 9: Owned and Leased Segment Margins Have Expanded
HYATT / GROWING WITH FOCUS 2016 Owned and Leased Segment Margins Have Expanded 600 bps 18% ~ 24% 2009 2016F Owned and Leased Segment Hotel Operating Margin +600 bps 9 * Company s forecasts are based on a number of assumptions that are subject to change and many of which are outside the control of th
Slide 10: Adjusted EBITDA Margins Have Expanded
HYATT / GROWING WITH FOCUS 2016 Adjusted EBITDA Margins Have Expanded 900 bps % of Rooms that are Owned & Leased 24% 12% 21% ~ 30% 2009 2016F Adjusted EBITDA Margin +900 BPS * Company s forecasts are based on a number of assumptions that are subject to change and many of which are outside the co
Slide 11: Return on Gross Assets Has Increased
HYATT / GROWING WITH FOCUS 2016 Return on Gross Assets (ROGA) Has Increased by 300 bps 5.0% ~ 8.0% 2009 TTM as of Q3 2016 Return on Gross Assets (ROGA) +300 bps 11
Slide 12: Today's Message: Growing with Focus
HYATT / GROWING WITH FOCUS 2016 Today s Message GROWING with FOCUS 12
Slide 13: Focus is the Key to Our Success
MARK HOPLAMAZIAN President and Chief Executive Officer Focus is the Key to Our Success
Slide 14: Fundamental Scale Differences Have Not Changed
HYATT / GROWING WITH FOCUS 2016 Fundamental Scale Differences Have Not Changed with Recent Industry Consolidation 14 645 5,974 4,820 5,070 3,942 Hyatt Marriott / Starwood Hilton Intercontinental Accor Total Number of Properties (as of Q3 2016) Source: Quarterly Reports on Form 10-Q for the fiscal qu
Slide 15: Fundamental Scale Differences Have Not Changed
HYATT / GROWING WITH FOCUS 2016 Fundamental Scale Differences Have Not Changed with Recent Industry Consolidation 15 645 5,974 4,820 5,070 3,942 321,000 Hyatt Marriott / Starwood Hilton Intercontinental Accor Expedia Total Number of Properties (as of Q3 2016) Source: Quarterly Reports on Form 10-Q f
Slide 16: Fundamental Scale Differences Have Not Changed
HYATT / GROWING WITH FOCUS 2016 Fundamental Scale Differences Have Not Changed with Recent Industry Consolidation 16 645 5,974 4,820 5,070 3,942 321,000 1,042,000 Hyatt Marriott / Starwood Hilton Intercontinental Accor Expedia Booking.com Total Number of Properties (as of Q3 2016) Source: Quarterly
Slide 17: Scale Does Not Necessarily Drive Competitive Advantage
HYATT / GROWING WITH FOCUS 2016 Scale Does Not Necessarily Drive Competitive Advantage Incremental scale is less relevant once a minimum relevant scale is achieved Hyatt has the minimum relevant scale necessary to compete and grow Enduring competitive advantage is rooted in brand relevance, emotiona
Slide 18: It All Starts with Understanding the Customer
HYATT / GROWING WITH FOCUS 2016 It All Starts with Understanding the Customer Experiences valued more than just Products Access preferred over ownership Increased demand for personalized experience Heightened focus on wellness / well-being Increased emphasis on convenience / on-demand access, largel
Slide 19: The Essence of Our Growth Strategy
HYATT / GROWING WITH FOCUS 2016 The Essence of Our Growth Strategy Customer Focus Experiences to Drive Preference Multiple Levers of Growth 19
Slide 20: The Essence of Our Growth Strategy
HYATT / GROWING WITH FOCUS 2016 The Essence of Our Growth Strategy Customer Focus Multiple Levers of Growth Experiences to Drive Preference 20
Slide 21: Customer Focus: The High-End Traveler
HYATT / GROWING WITH FOCUS 2016 Customer Focus: The High-End Traveler 21 21% 52% 27% 9% 49% 32% 10% 2% 35% 33% 29% 9% 2% 20% 70% Rooms Mix by Chain Scale (1) Goldman Sachs Investment Research, 9/26/2016 Source: Quarterly Reports on Form 10-Q for the fiscal quarter ended September 30, 2016 (Hyatt, Ma
Slide 22: Hallmarks of the Hyatt Brand
HYATT / GROWING WITH FOCUS 2016 Hallmarks of the Hyatt brand Key Locations High-Quality Assets 22 Differentiated Guest Experiences
Slide 23: We've Gained Share in Full Service
We ve Gained Share in Full Service 8.4% 7.6% 5.2% 4.9% 1.7% 3.2% 3.4% Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Hyatt U.S. Systemwide RevPAR Growth vs. STR Hyatt Full Service STR Luxury STR Upper Upscale 7 consecutive quarters of outperformance Source: Smith Travel Research 23
Slide 24: And Equally in Select Service
And Equally in Select Service Source: Smith Travel Research 10.1% 7.2% 7.1% 6.3% 6.5% 6.9% 4.7% Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Hyatt U.S. Systemwide RevPAR Growth vs. STR Hyatt Select Service STR Upscale 24
Slide 25: Our Customer Focus Has Enabled Deliberate Growth
HYATT / GROWING WITH FOCUS 2016 Our Customer Focus Has Enabled Deliberate Growth 399 >664 2009 2016F* Hotels 2009 2016F* Number of Rooms 5% CAGR 8% CAGR ~120,000 > 172,000 * The Company s forecasts are based on a number of assumptions that are subject to change and many of which are outside th
Slide 26: Number of Rooms With Accelerating Momentum
HYATT / GROWING WITH FOCUS 2016 ~120,000 ~172,000 2009 2010 2011 2012 2013 2014 2015 2016F* Number of Rooms With Accelerating Momentum 3.5% CAGR (2009-2012) 6.6% CAGR (2012-2016) 26 * The Company s forecasts are based on a number of assumptions that are subject to change and many of which are outsid
Slide 27: The Essence of Our Growth Strategy
HYATT / GROWING WITH FOCUS 2016 The Essence of Our Growth Strategy Customer Focus Experiences to Drive Preference Multiple Levers of Growth 27
Slide 28: Care is at the Center of Our Purpose
HYATT / GROWING WITH FOCUS 2016 Care is at the Center of Our Purpose WE care FOR PEOPLE SO THEY CAN BE THEIR BEST 28
Slide 29: How We're Scaling Care
HYATT / GROWING WITH FOCUS 2016 How We re Scaling Care 29 Unscripted Engagement Digital Engagement Personalized Engagement
Slide 30: Our Focus on Care is Being Felt by Our Guests
HYATT / GROWING WITH FOCUS 2016 75% of our customers give us a 9 or a 10 in Customer Service Our Focus on Care is Being Felt by Our Guests 70% of our customers give us a 9 or a 10 in Staff Sincerely Cares thoughtful gesture courteous very sweet greeted with welcomed thanks a lot very nice pleasantne
Slide 31: Guest Experience Drives Loyalty
HYATT / GROWING WITH FOCUS 2016 Guest Experience Drives Loyalty 11% CAGR 2011 2015 MEMBERSHIP 31 Gold Passport
Slide 32: And Increased Guest Engagement
HYATT / GROWING WITH FOCUS 2016 And Increased Guest Engagement 4.7 2.9 Loyalty Program Members Non-Members Average Room nights per Year (2015) 24% 35% 2011 2015 Gold Passport Penetration (Revenue) 32
Slide 33: Significant Spend by Our Best Guests
HYATT / GROWING WITH FOCUS 2016 Resulting in Significant Spend by Our Best Guests $16,800 $5,700 $860 Diamond Platinum Base Average Revenue by Tier $1,460 $470 HGP Member Non-Member Average Revenue by Member Type 33 (Year Ended 2015) (Year Ended 2015)
Slide 34: Taking Loyalty to the Next Level: World of Hyatt
HYATT / GROWING WITH FOCUS 2016 Taking Loyalty to the Next Level 34 WORLD OF HYATT
Slide 35: The Essence of Our Growth Strategy
HYATT / GROWING WITH FOCUS 2016 The Essence of Our Growth Strategy Customer Focus Experiences to Drive Preference Multiple Levers of Growth 35
Slide 36: We Have Many Levers of Growth
HYATT / GROWING WITH FOCUS 2016 Portfolio of brands New hotel development Adjacent spaces We Have Many Levers of Growth 36
Slide 37: With Lots of Places to Expand
HYATT / GROWING WITH FOCUS 2016 With Lots of Places to Expand 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large Mid-Sized Small Airport Resort % of US Markets with Distribution 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large Mid-Sized Small Airport Resort % of US Tracts with Distribution As of Q1
Slide 38: Industry Leader in Development
HYATT / GROWING WITH FOCUS 2016 Despite Our Focus on Quality and Targeted Growth, We Are an Industry Leader in Development 38% 36% 33% 30% 30% Hilton Hyatt Marriott IHG Accor Pipeline as % of Existing Rooms (1) Goldman Sachs Investment Research, 9/26/2016 Source: Quarterly Reports on Form 10-Q for t
Slide 39: Our Distribution Has Shown Impressive Growth
HYATT / GROWING WITH FOCUS 2016 Our Distribution Has Shown Impressive Growth 298 433 2009 2016 # of Global Tracts with Hyatt Representation 45 54 2009 2016 # of Countries with Hyatt Representation Source: Smith Travel Research, as of 9/30/2016 39
Slide 40: Distribution Expected to Continue to Grow
HYATT / GROWING WITH FOCUS 2016 And Is Expected to Continue to Grow Over the Next 3 Years 298 433 560 2009 2016 2019E* 2009 2016 2019 # of Global Tracts with Hyatt Representation # of Countries with Hyatt Representation 45 54 >70 > * Source: Smith Travel Research, as of 9/30/2016 The Company s
Slide 41: Strategic Context for Growth
HYATT / GROWING WITH FOCUS 2016 Insight-driven Customer Experience Design Experience-Delivery Focus Brand Love / Emotional Engagement Core + Adjacent Spaces Strategic Context for Growth FROM TO Product Design Operations-Driven Execution Loyalty Program Core Business Only 41
Slide 42: Context Informs Avenues of Growth
HYATT / GROWING WITH FOCUS 2016 TRADITIONAL NON-TRADITIONAL EXPERIENCE TYPES Context Informs Avenues of Growth STAYS NON-STAYS On-premise events and/or clubs F&B on premises Spa experiences Vacations homes Destination club Cruises, trains, etc. Adventure travel Off-premise events and/or clubs F&
Slide 43: The Essence of Our Strategy
HYATT / GROWING WITH FOCUS 2016 The Essence of Our Strategy 43 CUSTOMER FOCUS EXPERIENCES TO DRIVE PREFERENCE MULTIPLE LEVERS OF GROWTH
Slide 44: Strategy Driving Growth
HYATT / GROWING WITH FOCUS 2016 Openings Pipeline Loyalty Program Market Share Strategy Driving Growth 44 CUSTOMER FOCUS EXPERIENCES TO DRIVE PREFERENCE MULTIPLE LEVERS OF GROWTH MOMENTUM RevPAR Growth Margin Improvement Hotel Development PERFORMANCE
Slide 45: How We Bring Our Strategy to Life
HYATT / GROWING WITH FOCUS 2016 How We Bring Our Strategy to Life BUILD & DELIVER OPERATE GROW Brand-led Experiences with Excellence with Intent GOAL: become the most PREFERRED hospitality brand LOVED AND RESPECTED BY ALL PURPOSE: We care for people so they can be their best CULTIVATE The Best P
Slide 46: Build and Deliver Brand-led Experiences
MARYAM BANIKARIM Chief Marketing Officer Build and Deliver Brand-led Experiences
Slide 47: Build & Deliver Brand-led Experiences
HYATT / GROWING WITH FOCUS 2016 BUILD & DELIVER OPERATE GROW Brand-led Experiences with Excellence with Intent GOAL: CULTIVATE The Best People and Evolve the Culture 47 PURPOSE: We care for people so they can be their best become the most PREFERRED hospitality brand LOVED AND RESPECTED BY ALL
Slide 48: Irrational Loyalty
HYATT / GROWING WITH FOCUS 2016 48 Irrational Loyalty NOTE: The above logos are shown for informational purposes to illustrate relevant examples
Slide 49: A New Loyalty Program
HYATT / GROWING WITH FOCUS 2016 A New Loyalty Program 49 To foster a community of loyalists, increase incremental spend and better serve our guests Deliver a customer value proposition that increases share of wallet with target guests Ensure that program is competitive & financially sound Align
Slide 50: Introducing World of Hyatt
HYATT / GROWING WITH FOCUS 2016 Introducing 50 WORLD OF HYATT
Slide 51: Video World of Hyatt
Video World of Hyatt
Slide 52: New Program Highlights
HYATT / GROWING WITH FOCUS 2016 New Program Highlights Enhanced benefits based on qualitative and quantitative research Elite tier status earned based on nights stayed or dollars spent; stays eliminated as criteria for elite tier status Number of elite tier levels expanded from 2 to 3; Progressive b
Slide 53: Initial Stakeholder Reactions Positive
HYATT / GROWING WITH FOCUS 2016 Initial Stakeholder Reactions Positive ?Hyatt gets credit for bringing a new model of loyalty to its rewards program. If it proves successful, Hyatt will reap the rewards far before its lagging competitors.? ~ Forbes ?reflects a somewhat significant loyalty strategy p
Slide 54: Our Portfolio of Brands
HYATT / GROWING WITH FOCUS 2016 To Meet Customer Needs Luxury Lifestyle Modern Essentials Premium All Inclusive Vacation Ownership Our Portfolio of Brands 54 THE UNBOUND COLLECTION BY hyatt CALLUP GREAT WORKPLACE AWARD GREAT PLACE TO WORK WORLD?S BEST MULTINATIONAL WORKPLACES 2016 THE UNBOUND COLLEC
Slide 55: Start with Customer Needs
THE UNBOUND COLLECTION BY hyatt CALLUP GREAT WORKPLACE AWARD GREAT PLACE TO WORK WORLD?S BEST MULTINATIONAL WORKPLACES 2016 THE UNBOUND COLLECTION BY HYATT GRAND HYATT ANDAZ PARK HYATT HYATT REGENCY HYATT CENTRIC HYATT PLACE HYATT HOUSE HYATT / GROWING WITH FOCUS 2016 Start with Customer Needs 55 Am
Slide 56: Video Hyatt Place / Hyatt House
Video Hyatt Place / Hyatt House Behind the Scenes
Slide 57: New Portfolio Additions Unlock Growth
HYATT / GROWING WITH FOCUS 2016 New Portfolio Additions Unlock Growth Active pipeline fueled by strong consumer & owner demand 10 Hotels Open 5 Hotels Open 57 THE UNBOUND COLLECTION BY HYATT CALLUP GREAT WORKPLACE AWARD
Slide 58: Video Centric
Video Centric
Slide 59: Video Unbound Collection
Video Unbound Collection
Slide 60: The Unbound Collection by Hyatt
HYATT / GROWING WITH FOCUS 2016 60 THE UNBOUND COLLECTION BY hyatt
Slide 61: Segmentation Has Informed Business, Marketing & Customer Strategy
HYATT / GROWING WITH FOCUS 2016 Segmentation Has Informed Business, Marketing & Customer Strategy 61 Informed experience strategy Identified target customers by brand Informed brand positioning, marketing decisions and messaging to better compete in the marketplace and win share Identified brand
Slide 62: Cultivate the Best People and Evolving the Culture
MARK HOPLAMAZIAN President and Chief Executive Officer Cultivate the Best People and Evolving the Culture HYATT
Slide 63: Cultivate the Best People and Evolve the Culture
HYATT / GROWING WITH FOCUS 2016 BUILD & DELIVER OPERATE GROW Brand-led Experiences with Excellence with Intent GOAL: CULTIVATE The Best People and Evolve the Culture 63 PURPOSE: We care for people so they can be their best become the most PREFERRED hospitality brand ? LOVED AND RESPECTED BY ALL
Slide 64: It All Begins with Our Colleagues
It All Begins with Our Colleagues 64
Slide 65: Our Culture Drives Performance
HYATT / GROWING WITH FOCUS 2016 Our Culture Drives Performance 65 WE care FOR PEOPLE SO THEY CAN BE THEIR BEST
Slide 66: Strong Colleague Engagement
HYATT / GROWING WITH FOCUS 2016 Strong Colleague Engagement One of 5 employers recognized by Gallup in 2016 with ?highest distinction? One of the World?s Best Multinational Workplaces recognized by Fortune for three years in a row (#11 in 2016) 66 GALLUP GREAT WORKPLACE AWARD GREAT PLACE TO WORK WOR
Slide 67: Enabled by Colleague-Facing Innovation
HYATT / GROWING WITH FOCUS 2016 Enabled by Colleague-Facing Innovation 67 MOVED FROM . . . MOVED TO . . . Paper based, manually prepared schedules that require dual data entry Colleagues can view schedules and request time off through mobile. Future enhancements include shift swapping and the abilit
Slide 68: Result: Colleague, Guest and Owner Satisfaction
HYATT / GROWING WITH FOCUS 2016 Result: Colleague, Guest and Owner Satisfaction 68
Slide 69: Operate With Excellence
MARK HOPLAMAZIAN President and Chief Executive Officer Operate With Excellence
Slide 70: Operate with Excellence
HYATT / GROWING WITH FOCUS 2016 70 BUILD & DELIVER OPERATE GROW Brand-led Experiences with Excellence with Intent GOAL: CULTIVATE The Best People and Evolve the Culture PURPOSE: We care for people so they can be their best become the most PREFERRED hospitality brand ? LOVED AND RESPECTED BY ALL
Slide 71: New Data-Insight-Driven Model for Asset Management
HYATT / GROWING WITH FOCUS 2016 Embraced a New, Data-Insight-Driven Model for Asset Management Links property-level revenue enhancement and profit improvement opportunities to Hyatt?s strategic priorities ?Dream team? of ~12 operators and corporate colleagues spends a week at each property, working
Slide 72: New Approach Yielding Impressive Results
HYATT / GROWING WITH FOCUS 2016 New Approach Yielding Impressive Results 72 12 months prior to visit ~32.5% ~36% 12 months after visit Gross Operating Profit Margins of Hotels using New Asset Management Model in 2015 Over 50% of the hotels have increased RevPAR Index Over 60% of the hotels have expe
Slide 73: Member Discount Program Driving Preference
Member Discount Program Driving Preference with Guests and Owners Member Discount Revenue since April 2016 56% of Hotels increased RevPAR Index 51% of Hotels increased ADR Index Impact of Member Discount program on ADR / RevPAR (April -August 2016) New Loyalty Members 33% Existing Loyalty Members 27
Slide 74: Operating With Excellence for Colleagues, Customers and Owners
HYATT / GROWING WITH FOCUS 2016 Operating With Excellence for Colleagues, Customers and Owners 74
Slide 75: Grow With Intent
PAT GRISMER Chief Financial Officer Grow With Intent HYATT
Slide 76: Grow with Intent
HYATT / GROWING WITH FOCUS 2016 BUILD & DELIVER OPERATE GROW Brand-led Experiences with Excellence with Intent GOAL: CULTIVATE The Best People and Evolve the Culture PURPOSE: We care for people so they can be their best become the most PREFERRED hospitality brand ? LOVED AND RESPECTED BY ALL 76
Slide 77: Consuming Class Penetration Highlights Global Growth Opportunity
HYATT / GROWING WITH FOCUS 2016 Consuming Class Penetration Highlights Global Growth Opportunity Americas: 640 hotels* Europe: 665 hotels* China: 61 hotels* Middle East & Africa: 162 hotels* Total Asia: 103 hotels* India: 144 hotels* 77 *per million consuming class households Source: Oxford Econ
Slide 78: Pipeline Has Grown Aggressively
HYATT / GROWING WITH FOCUS 2016 Pipeline Has Grown Aggressively 27,000 61,000 2009 Q3 2016 Hyatt Pipeline Rooms 22% 36% 2009 Q3 2016 Hyatt Pipeline Rooms as a % of Total Rooms 12% CAGR 78 As of 9/30/2016
Slide 79: Substantial Pipeline Within Each Chain Scale Segment
HYATT / GROWING WITH FOCUS 2016 LUXURY Substantial Pipeline Within Each Chain Scale Segment 25% UPPER UPSCALE 34% UPSCALE 41% % of Rooms in Pipeline Illustrative Average Annual Fee Per Room based on Historicals $3,750 $2,500 $1,875 79 As of 9/30/2016 THE UNBOUND COLLECTION BY hyatt CALLUP GREAT WORK
Slide 80: Substantial Pipeline Within Each Region
HYATT / GROWING WITH FOCUS 2016 AMERICAS Luxury 4% Substantial Pipeline Within Each Region Upper Upscale 5% Upscale 21% 17% of Existing 31% Base ASPAC Luxury 13% Upper Upscale 19% Upscale 12% 100% of Existing 44% Base EAME—SWA Luxury 7% Upper Upscale 11% Upscale 7% 81% of Existing 25% Base % of Room
Slide 81: Opening Hotels Where Our Guests Want Us to Be
Growing presence in key asset types. Growth over the past 7 years: As of 9/30/2016 Opening Hotels Where Our Guests Want Us to Be New Markets Focused Presence Entered 135 new markets and 9 new countries over the past 7 years New Line of Business Entered all inclusive resort business with investment i
Slide 82: Value Created by Full Service Asset Recycling
HYATT / GROWING WITH FOCUS 2016 Value Created by Full Service Asset Recycling Joint ventures are not included in the above Number of Properties Average EBITDA Multiple Gains (Recognized and Deferred) Total Gross Proceeds Average Sales Price per Room Annual Fees Paid to Hyatt Post Sale 22 $1.5B $219K
Slide 83: Improved Quality of Owned and Leased Portfolio
HYATT / GROWING WITH FOCUS 2016 Improved Quality of Owned and Leased Portfolio 26% 4% 1% 7% 62% Year-Ended 12/31/2009 Q3 2016 NOTE: Markets ranked using Hyatt?s internal Market Ranking Tool 66% 16% 9% 3% 6% 83 A Markets (Top Tier) B Markets C Markets D Markets (Lowers Tier) Select Service
Slide 84: Value Also Unlocked by Select Service Recycling
HYATT / GROWING WITH FOCUS 2016 Value Also Unlocked by Select Service Recycling Joint ventures are not included in the above Number of Properties Average EBITDA Multiple Gains (Recognized and Deferred) Total Gross Proceeds Average Sales Price per Room Annual Fees Paid to Hyatt Post Sale 73 $1.2B $12
Slide 85: Owned Real Estate: Valuable Catalyst for Growth
HYATT / GROWING WITH FOCUS 2016 Owned Real Estate: Valuable Catalyst for Growth Chain Scale Owned Rooms Illustrative Gross Market Value Per Room Illustrative Gross Market Value Luxury 4,972 ~$700K ~$3.5B Upper Upscale 12,742 ~$270K ~$3.5B ~$7.0B As of September 30, 2016. Chain scale defined by STR.
Slide 86: Expect Owned Portfolio to Continue to Evolve
HYATT / GROWING WITH FOCUS 2016 Expect Owned Portfolio to Continue to Evolve KEY CONSIDERATIONS: Overall Deal Economics, Tax Impact, Market Conditions, Reinvestment Opportunities Evolution of Owned and Leased Hotels Upscale United States Secondary and tertiary markets LESS Luxury and Upper Upscale I
Slide 87: Growing Shareholder Returns
PAT GRISMER Chief Financial Officer Growing Shareholder Returns
Slide 88: Management and Franchise Fees Have Grown at Double-Digit Rate
Management and Franchise Fees Have Grown at Double?Digit Rate 88 (1) Includes all third party fees. * The Company?s forecasts are based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the C
Slide 89: Owned and Leased Segment Adjusted EBITDA
$442 ~ $515 2012 2013 2014 2015 2016F* Owned and Leased Segment Adjusted EBITDA (millions) Faster than Our Owned Business 89 4% 2012-2016F CAGR * The Company?s forecasts are based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actua
Slide 90: Contributing to Improved Margins and Asset Returns
HYATT / GROWING WITH FOCUS 2016 Contributing to Improved Margins and Asset Returns 26% ~30% 0% 10% 20% 30% 40% 2012 2013 2014 2015 2016F* Adjusted EBITDA Margin 6.5% ~ 8.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 2012 2013 2014 2015 TTM as of Q3 2016 ROGA +400 bps +150 bps * The Company?s forecasts are
Slide 91: Owned and Leased Properties Generate over Half of Adjusted EBITDA
Owned and Leased Properties Generate over Half of Adjusted EBITDA Owned and Leased 56% Americas 35% EAME / SWA 3% ASPAC 6% 2016F Adjusted EBITDA Composition by Segment(1) (1) Excludes corporate and other * The Company?s forecasts are based on a number of assumptions that are subject to change and ma
Slide 92: 85% of Adjusted EBITDA Generated in the Americas
HYATT / GROWING WITH FOCUS 2016 85% of Adjusted EBITDA Generated in the Americas We expect to source more of our earnings from higher-growth international markets over time (1) Excludes corporate and other 92
Slide 93: Shape of Development Pipeline Demonstrates Geographic Shift
HYATT / GROWING WITH FOCUS 2016 Shape of Development Pipeline Demonstrates Magnitude of Geographic Shift 71% 12% 17% Existing Rooms (1) (1) As of 9/30/2016. Total Hotels; includes All-Inclusive properties; excludes branded residences, serviced apartments and vacation ownership properties (2) Assumes
Slide 94: Strong International Growth Rates, Notably China and India
HYATT / GROWING WITH FOCUS 2016 While also Highlighting Strong International Growth Rates, Notably China and India 17% 12% 4% ASPAC EAME SWA Americas 20% 9% China India Projected Annual Growth Rates in Rooms 2016-2019* Projected Annual Growth Rates in Rooms 2016-2019* * The Company?s forecasts are b
Slide 95: Multi-Faceted Earnings Growth Model
HYATT / GROWING WITH FOCUS 2016 Multi-Faceted Earnings Growth Model Comparable RevPAR New Hotels Increased Margins Strong Adjusted EBITDA growth New Businesses 95
Slide 96: Sustainable Mid-to-high Single Digit Earnings Growth Model
HYATT / GROWING WITH FOCUS 2016 Sustainable Mid-to-high Single Digit Earnings Growth Model Ongoing EBITDA Growth Model (excluding impact of foreign currency translation and owned and leased transactions) Comparable RevPAR Growth New Hotels 0% -5% ~2% ~1% ~1% O&L Margin Expansion Adjusted SG&
Slide 97: Balance Sheet Enables Capital Deployment to Stimulate Growth
HYATT / GROWING WITH FOCUS 2016 Balance Sheet Enables Capital Deployment to Stimulate Growth 97 2.2x 3.0x S&P Adjusted Leverage Ratio as of 6/30/2016 Target Ratio Adjusted Leverage Ratio
Slide 98: Since IPO, Returned $2.2B to Shareholders
HYATT / GROWING WITH FOCUS 2016 Since IPO, Returned $2.2B to Shareholders Without Reducing Liquidity of Stock 98 $396 $136 $275 $445 $715 $268 2011 2012 2013 2014 2015 2016 YTD Share Repurchase ($ millions) 330 478 311 345 468 537 2011 2012 2013 2014 2015 2016 YTD Average Daily Trading Volume (thous
Slide 99: Strong Growth Model Strengthening
HYATT / GROWING WITH FOCUS 2016 Openings Pipeline Loyalty Program Market Share Strong Growth Model Strengthening 99 CUSTOMER FOCUS EXPERIENCES TO DRIVE PREFERENCE MULTIPLE LEVERS OF GROWTH MOMENTUM RevPAR Growth Margin Improvement Hotel Development PERFORMANCE
Slide 100: Closing Thoughts
MARK HOPLAMAZIAN President and Chief Executive Officer Closing Thoughts
Slide 101: Growing with Focus
HYATT / GROWING WITH FOCUS 2016 Growing with Focus CUSTOMER FOCUS EXPERIENCES TO DRIVE PREFERENCE MULTIPLE LEVERS OF GROWTH Increasingly brand-led and experiencedriven Intense focus on our core high-end customers -not scale- is the key to our growth Growth through both traditional means and adjacent
Slide 102: Concluding Remarks
Tom Pritzker Executive Chairman of the Board Concluding Remarks
Slide 103: Growing with Focus
HYATT GROWING WITH FOCUS November 22, 2016
Slide 104: Appendix: Definitions; Non-GAAP Financial Measures
HYATT / GROWING WITH FOCUS 2016 APPENDIX Hyatt Hotels Corporation Definitions; Non-GAAP Financial Measures; Reconciliations of Non-GAAP Financials Measures to U.S. GAAP This presentation includes references to certain financial measures, each identified with the symbol “†”, that are not calculated o