Hyatt Hotels (H) 2026 Baird Global Consumer, Technology & Services Conference summary

Recent performance and outlook

• Q1 RevPAR exceeded expectations, with strong results in the U.S. and international markets despite Middle East disruptions.

• Q2 is showing continued positive momentum, with April and May both performing better than anticipated, driven by U.S. and Asia strength.

• Select service hotels are improving year-over-year, but luxury hotels continue to outperform, especially in the U.S.

• Group bookings remain solid, with corporate travel from top accounts prioritized and booking windows stable.

• Middle East represents 3% of fee revenue; occupancy dropped after conflict but is gradually recovering, with new hotel openings planned in Saudi Arabia.

Growth strategy and development pipeline

• Net unit growth targets of 6%-8% over the next three years are supported by scalable brands and significant white space, especially in 300 untapped U.S. markets.

• The development pipeline includes over 150,000 rooms, representing 40% of the existing base, with strong growth in China and India.

• All-inclusive and soft brands present further expansion opportunities in fragmented markets like Europe, North Africa, and Asia.

• Hyatt Studios, launched with developer input, has five hotels open and several more in the pipeline, with stabilized construction costs and ongoing support for developers.

• International expansion for Studios and Select brands is underway, with licensing agreements and multi-unit deals in China and plans for further global growth.

Capital allocation and M&A

• $2.2–$2.7 billion in cash is targeted over three years, with priorities on asset-light growth and shareholder returns.

• A $1 billion increase in share repurchase authorization signals ongoing commitment to returning capital.

• M&A focus remains on off-market, luxury, and lifestyle opportunities that complement the existing network, with Europe identified as a key under-penetrated region.

• Real estate sales are ongoing, with a goal to be 95% asset-light by 2028; proceeds will fund growth or be returned to shareholders.