Exhibit 99.1 |
2 Forward-Looking Statements in this presentation, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, occupancy and ADR trends, market share, the number of properties we expect to open in the future, our expected capital expenditures, depreciation and amortization expense and interest expense, estimates, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the depth and duration of the current economic downturn; levels of spending in the business, travel and leisure industries as well as consumer confidence; declines in occupancy and average daily rate; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; travel-related accidents; changes in the tastes and preferences of our customers; relationships with associates and labor unions and changes in labor law; the financial condition of, and our relationships with, third-party property owners, franchisees and hospitality venture partners; if our third-party owners, franchisees or development partners are unable to access the capital necessary to fund current operations or implement our plans for growth; risk associated with potential acquisitions and dispositions and the introduction of new brand concepts; changes in the competitive environment in our industry and the markets where we operate; outcomes of legal proceedings; changes in federal, state, local or foreign tax law; fluctuations in currency exchange rates; general volatility of the capital markets; our ability to access the capital markets; and other risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this presentation. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. In this presentation, management has referred to Adjusted EBITDA, which is not presented in accordance with US GAAP. For our definition of Adjusted EBITDA and a reconciliation of consolidated Adjusted EBITDA to EBITDA and a reconciliation of EBITDA to net income (loss) attributable to Hyatt Hotels Corporation, please refer to Part I, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” of our Annual Report on Form 10-K for fiscal year 2009 or the information posted on the Investor Relations page of the Company’s website, which can be accessed at http://www.hyatt.com and by selecting the Investor Relations link located at the bottom of the page. |
3 Mission / Goal / Values To become the most preferred brand in each segment that we serve for our associates, guests and owners foster a common purpose and culture within the Hyatt family through shared core values of mutual respect, intellectual honesty and integrity, humility, fun, creativity and innovation We aim to provide authentic hospitality To by making a difference in the lives of the people we touch every day, including our associates, guests and owners |
4 Key Highlights Global footprint in key gateway cities provides a foundation for expansion in high growth markets Strategy of owning, managing and franchising properties provides diversity of earnings streams and growth opportunities Strong capital base and ability to support growth Experienced management team Premier brands and a long-term strategic focus on brand preference |
5 Expanding Our Presence in Attractive Markets Increase market presence Increase focus on franchising, primarily in North America Utilize our capital and asset base for targeted growth Improvement in the Performance of Existing Hotels Focus on associate engagement Enhance operational efficiency Enhance customer satisfaction Increase revenue share of hotel in its market Renovate / re-invest in owned hotels Strategy Drives Brand Preference and Shareholder Value |
6 Portfolio of Brands Note: Percentages based upon room/unit counts as of March 31, 2010 Select Service Upscale (15%) Luxury (4%) Select Service Extended Stay (3%) Vacation Ownership / Residential (2%) Upper Upscale (76%) |
7 Distribution Overview Hyatt / Hyatt Regency 71,277 58% Grand Hyatt 21,567 17% Hyatt Place 19,055 15% Hyatt Residential 1,337 1% Hyatt Vacation Ownership 962 1% Andaz 912 1% Summerfield Suites 4,213 3% Park Hyatt 4,729 4% Total Rooms by Brand Total Room Portfolio Mix Rooms By Region Owned & Leased 28,315 23% Managed 64,468 52% Franchised 17,224 14% Unconsolidated Hospitality Venture 11,746 9% Residential Property 1,337 1% Vacation Ownership 962 1% Note: Room/unit counts as of March 31, 2010 1 Excludes Timeshare and Residences We have 124,052 rooms/units in our worldwide portfolio North America 71% ASPAC 17% EAME 7% Southwest Asia 3% Other Americas 2% 1 |
8 We Have a Global Footprint Note: Property counts as of March 31, 2010 Europe / Middle East / Africa Subtotal: 36 North America Subtotal: 323 Latin America Subtotal: 7 Southwest Asia Subtotal: 16 Asia Pacific Subtotal: 52 Offices Managed and Franchised Global Headquarters Owned, Leased and Unconsolidated Hospitality Ventures Vacation Ownership and Residential |
9 $628M $708M $687M $406M Attractive Business Model Adjusted EBITDA 2006 2007 2009 2008 2009 Adjusted EBITDA ($406mm) Owned and Leased Operating Margin 23% 25% 26% 18% 2006 2007 2009 2008 50% 12% 13% 25% Owned & Leased North America Management & Franchising International Management & Franchising Unconsolidated Hospitality Ventures 1 3 2 Represents 2009 Actual Adjusted EBITDA. Effective January 1, 2010, our Park Hyatt and Andaz branded hotels are managed and reported geographically by the respective North American or international management and franchising segment consistent with our brands. As a result of this change we are reporting the operating results for the Park Hyatt and Andaz branded hotels located in North America in the North American management and franchising segment for the year ended December 31, 2009. Corporate and other EBITDA of ($79) million not included in percent breakdown. Owned and leased operating margin is defined as the margin on owned and leased hotel results calculated as the difference between owned and leased hotels revenue and owned and leased hotels expense as reflected on our consolidated statements of income (loss). For our definition of Adjusted EBITDA and a reconciliation of consolidated Adjusted EBITDA to EBITDA and a reconciliation of EBITDA to its most directly comparable GAAP measure, net income (loss) attributable to Hyatt Hotels Corporation, see Part I, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” of our Annual Report on Form 10-K for fiscal year 2009 or the information posted on the Investor Relations website, which can be accessed at http://www.hyatt.com and by selecting the Investor Relations link located at the bottom of the page. 1 2 3 |
10 Owned / Venture Hotels in Key Gateway Cities Chicago, IL Park Hyatt Chicago 198 Rooms Mumbai, India Grand Hyatt Mumbai 547 Rooms Grand Hyatt New York 1,311 Rooms New York, NY Seoul, Korea Grand Hyatt Seoul 601 Rooms São Paulo, Brazil Grand Hyatt São Paulo 466 Rooms Hyatt at Olive 8 346 Rooms Seattle, WA Andaz West Hollywood 238 Rooms Los Angeles, CA Park Hyatt Washington 216 Rooms Washington, D.C. Paris, France Park Hyatt Paris - Vendôme 167 Rooms Zurich, Switzerland Park Hyatt Zurich 142 Rooms |
11 Recent and Near-Term Hotel Openings Provide Entry Into New Markets Chennai, India Hyatt Regency Chennai 325 Rooms 4Q 2010 154th Hyatt Place 92 Rooms 2Q 2010 Santa Fe, NM Broomfield, CO 34th Summerfield Suites 123 Rooms 2Q 2010 Shenzhen, China Grand Hyatt Shenzhen 491 Rooms 4Q 2009 Grand Hyatt Macau 791 Rooms 4Q 2009 Macau, China New York, NY Andaz Fifth Avenue 184 Rooms 3Q 2010 Andaz Wall Street 253 Rooms 1Q 2010 Abu Dhabi, UAE Hyatt at Capital Gate, Abu Dhabi 190 Rooms 3Q 2010 Carlsbad, CA Park Hyatt Aviara Resort 329 Rooms 2Q 2010 |
12 Expand into under-penetrated / underrepresented markets As of December 31, 2009, substantiated by 120 executed contracts (over 27,000 rooms) 55% international properties (70% of rooms) Approximately 10 new countries and several new markets Openings Opened 30 new hotels in 2009 (removed 8 hotels) Expect to open 25+ hotels in 2010 Expect to update prospective expansion information annually Expansion Opportunities |
13 $1.3 billion of cash and cash equivalents and undrawn borrowing capacity of another $1.4 billion One of the highest credit ratings among lodging peers with modest current debt levels and significant liquidity No significant near-term maturities ($143 million through 2012) Strong Capital Base Note: Balance sheet information as of March 31, 2010 |
14 Experienced Management Team Over 80,000 associates in 45 countries GM’s have an average tenure of more than 21 years Executive team has an average of 27 years of experience Tom Pritzker, Executive Chairman of Hyatt’s Board of Directors, continues a legacy of strategic leadership and innovation |
15 Financial Highlights Operating leverage is significant Focus on operating margins for our existing portfolio and on returns on capital for the business overall Continued efforts to expand in key gateway cities and emerging markets Strong balance sheet / liquidity |