Hyatt Hotels (H) investor relations material

Macro outlook and travel demand

• Travel demand remains strong, with business transient and group segments showing renewed momentum after a summer lull.

• Leisure travel continues to perform well, especially in high-end segments, with solid bookings into festive periods.

• Group bookings for the fourth quarter are positive, and next year is expected to see mid to high single-digit growth.

• All-inclusive business in The Americas is up 9% for festive, reflecting robust demand.

• Business transient booking windows are shorter, but overall health in the segment is maintained.

Market segmentation and trends

• Luxury hotel performance is strong, with mid-single-digit growth, while upscale hotels saw a slight decline, highlighting a persistent gap between high and low-end segments.

• Limited supply growth in luxury and resorts supports sustained rate strength; most travel spend comes from higher-income households.

• Midscale and upscale segments are more sensitive to corporate confidence and economic cycles, but changes are seen as circumstantial rather than permanent.

• Canadian travelers are increasingly choosing Caribbean and Mexican destinations, with a notable decline in Canadian occupancy at US resorts.

All-inclusive and portfolio strategy

• All-inclusive resorts in Latin America and the Caribbean are predominantly five-star, driving strong growth; new four-star additions expand the customer base.

• Distribution business shows strong results in five-star markets, but some pullback at the four-star level.

• Institutional capital is entering the all-inclusive market, increasing liquidity and supporting further development.

• Currency fluctuations, particularly the US dollar vs. Mexican peso, have impacted costs but are being managed.