Hyatt Hotels (H) J.P. Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum summary

Business performance and market trends

• Strong end to last year and continued momentum in the first months, especially in leisure travel and all-inclusive regions like Mexico and the Caribbean.

• Corporate and group segments remain healthy, with high-end consumers showing resilience and prioritizing travel.

• U.S. market performance is solid, particularly in luxury and upper upscale segments, offsetting some near-term headwinds.

• Asia and Europe are performing well, with Europe highlighted as a consistent bright spot.

• Booking trends in Mexico rebounded after short-term cancellations, with rebookings and spring break demand supporting recovery.

Geopolitical and regional impacts

• Middle East conflict led to initial focus on guest safety and a drop in occupancy, but region represents less than 5% of annual fee revenue.

• Macro impact from Middle East disruptions is limited, but the area remains a key travel hub under close monitoring.

• Puerto Vallarta incident caused brief cancellations, but bookings have since recovered.

Growth strategy and development

• Luxury, resort, and lifestyle portfolios have expanded significantly through intentional organic and inorganic growth.

• Distribution strategy targets World of Hyatt members and attracts developers through network effects and successful conversions.

• New brands like Hyatt Studios and Hyatt Select address white space in secondary and tertiary markets, aiming to capture more member stays.

• Growth opportunities remain strong due to under-penetration in many global markets, despite presence in top travel destinations.