Hyatt Hotels (H) 7th Annual Wells Fargo Consumer Conference summary

U.S. and global demand trends

• Leisure travel demand remains strong, with normalization to last year's elevated levels and continued growth into Q4 and the holiday season.

• Group business in the U.S. is growing at mid- to high-single digits, with strong booking pace into next year.

• Business transient travel is recovering, led by small and medium enterprises, with large corporates gaining momentum in 2023.

• Europe saw double-digit leisure growth, partially offsetting moderating demand in the Caribbean.

• China experienced a strong Q1 rebound, followed by a pullback, but outbound travel and government stimulus support long-term optimism.

Capital allocation and asset-light strategy

• Exceeded $2 billion asset sale goal, reaching $2.6 billion and transitioning to an asset-light model with over 80% of earnings from asset-light businesses.

• Realized $5.6 billion in asset sales over six years, reinvested $3.4 billion into asset-light businesses, and returned $4.5 billion to shareholders.

• Ongoing asset sales and redevelopments expected to provide future proceeds; focus remains on balancing growth, investment, and shareholder returns.

• 2024 capital return is elevated due to asset sale proceeds; future returns will depend on ongoing asset management and investment opportunities.

Pipeline, development, and market outlook

• U.S. and international pipelines remain robust, with industry-leading growth as a percentage of the existing base.

• China pipeline is strong, with growth in Tier Two and Three cities, supported by government infrastructure investment and available resources.

• Long-term view on China remains positive despite near-term challenges, with flight capacity recovery seen as a future tailwind.

• Developers face higher equity requirements due to interest rates, but anticipated rate relief could accelerate pipeline growth.