Hyatt Hotels (H) 4th Annual Morgan Stanley Travel & Leisure Conference summary

Strategic focus and growth

• Emphasis on differentiation at scale, targeting premium positioning and high-end guests, driving strong growth in the World of Hyatt program with 18%-20% annual compounding.

• Achieved highest RevPAR growth in the industry over the last five years and leading net rooms growth over nine years.

• Organic net rooms growth since 2017 has compounded at 7%, with total net rooms growth at 9%.

• Fee growth since 2022 has been 14% compounded, with organic fee growth at 10%.

• Strategy aims for durable, industry-leading growth by maintaining competitive advantages.

Financial performance and capital allocation

• Averaged 55% free cash flow to Adjusted EBITDA over the past three years, expected to continue or grow over the next three years.

• Over 30% of market cap available through free cash flow and asset monetization.

• Asset monetization proceeds and free cash flow are managed together for reinvestment and shareholder returns.

• Outlook to be about 95% asset-light earnings, with flexibility to take on debt for opportunities or shareholder returns.

• Commitment to maintaining investment grade for financial flexibility and stability.

Growth pipeline and brand strategy

• Pipeline at highest level ever, with strong developer interest and high activity in new brands like Hyatt Select, Hyatt Studios, and Unscripted by Hyatt.

• Room growth guidance of 6%-8%, best in class, driven by premium and upper mid-scale segments, with 35%-40% conversion rates.

• Focus on continuity and adjacency in brand expansion, avoiding gaps between segments to maximize loyalty program value.

• Expansion into branded residential (Resi) programs, especially in luxury and lifestyle segments, is accelerating.