Hyatt Hotels (H) Morgan Stanley 2nd Annual Travel & Leisure Conference summary

Financial performance and progress

• RevPAR growth in 2023 and early 2024 exceeded prior outlook, with strong free cash flow and asset sales at favorable valuations.

• Fee-based earnings and margins improved, especially from international markets and a transformative membership club transaction.

• Net rooms growth remains on track, with sustained and growing fees per key.

• Asset sales have reached nearly $5 billion at a 15x multiple, with strategic long-term management contracts retained.

• Margin expansion initiatives and AI-driven productivity are expected to drive further improvement.

Strategic priorities and growth initiatives

• Focused on completing asset sales by year-end and maintaining core business performance.

• Emphasizing conversions and portfolio deals, especially in Europe, due to slower new construction starts.

• Investing in ancillary revenue streams, including well-being and food & beverage innovation.

• Pipeline profile remains stable, with 70% outside the U.S. and continued growth in Hyatt Studios.

• Fee per key is expected to rise as new properties open, with no signs of dilution.

Market trends and outlook

• International business is robust across leisure, business, and group segments, with strong outlook for the year.

• U.S. growth is slower but healthy, with group business as a standout and significant runway for occupancy.

• China and Asia Pacific show double-digit growth, with outbound Chinese travel driving regional demand.

• Air capacity constraints remain a tailwind for inbound China, with expectations for further recovery.

• Group business is expected to deliver incremental growth through this year and next.