Hyatt Hotels (H) 47th Annual Raymond James Institutional Investor Conference summary

Company Overview, Strategic Vision, and Growth Strategy

• Operates over 1,500 hotels in 83 countries, with a pipeline of 148,000 rooms, the largest luxury-branded portfolio targeting high-end travelers across five brand categories and 36 brands.

• Asset-light business model now accounts for 90% of earnings, nearly doubling free cash flow and supporting sustainable earnings growth.

• Focused on expanding in under-penetrated and underrepresented markets, especially in the U.S. and globally, providing significant organic growth potential.

• Differentiated membership benefits through the World of Hyatt loyalty program foster strong customer loyalty and engagement.

• Plans to continue investing in growth, returning excess cash to shareholders, and maintaining an investment-grade profile.

Financial Performance, Capital Allocation, and Outlook

• Achieved $5.7 billion in asset sales at an average 15x multiple since 2017, reinvesting $4.4 billion in asset-light acquisitions at sub-10x multiples.

• Adjusted free cash flow increased from $289M in 2017 to a projected $527M in 2025, with conversion rates rising from 40% to 51%.

• Returned $4.8 billion to shareholders over the same period, with ongoing opportunities to sell assets into market strength while retaining long-term management contracts.

• Recent acquisition and sale of Playa Hotels' real estate portfolio for $2 billion, securing long-term management agreements.

• 2026 outlook includes continued growth in system-wide RevPAR, net rooms, net income, gross fees, and adjusted EBITDA.

Market Trends, Positioning, and Demand Outlook

• High-end leisure and upper-upscale segments outperform lower chain scales globally, with leisure travelers making up about 50% of the mix and group business remaining healthy.

• Business travel is stable with signs of momentum; overall consumer health is robust across segments.

• January and February RevPAR exceeded expectations, with U.S. performance potentially better than anticipated.

• Brand portfolio spans luxury, lifestyle, inclusive, classics, and essentials, demonstrating focus and differentiation.

• Growth strategy leverages network effects and continued innovation in brand concepts and loyalty programs to capture evolving customer preferences.