H - Earnings call transcript Q1 2024 | Hyatt Hotels Corporation

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Operator

Good morning, and welcome to Hyatt's First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Adam Rohman. Senior Vice President of Investor Relations and FP&A. Thank you. ahead. go Please

Adam Rohman

welcome Call. and First XXXX Quarter Thank to Conference Earnings you, Hyatt's

Joining President Hoplamazian, Officer; Mark me are today Hyatt's Bottarini, Chief and Hyatt's and Financial Officer. Joan Executive Chief

to XX-K, everyone I in other cause like include start, our statements on Form securities to are our federal These quarterly under comments uncertainties materially results numerous SEC our we These Before risks forward-looking to report remind and today Form that would by will statements and subject reports laws. expressed annual XX-Q our those could as filings. risks actual implied in differ from on or comments. described

Forward-looking as with today as statements issued of we on actual earnings will made today that not be only events the and in unfold. updated along this the release comments call, are

can referred measures of this at section will you XX available and Relations non-GAAP addition, our to be this under link in find days. of the for a our of website An remarks on archive Financial earnings Reporting release. on Investor hyatt.com reconciliation financial website call In our morning's today's in

Please note occupancy, reflect daily constant our system-wide references that stated, RevPAR a and currency otherwise hotels on to comparable basis. rate average unless

during on unless otherwise Additionally, the noted. call percentage a changes disclosed are year-over-year basis,

will turn I Mark. the now that, With call over to

Mark Hoplamazian

for today. us thank joining Thank Adam. you everyone, morning, you, and Good

high-quality start, business. areas to pleased across all demonstrating great are report dimensions We growth a and is that year asset-light fees to multiple the our of from expanding off

all healthy. first the in seeing. quarter travel Let's customer System-wide across latest start RevPAR the we're very that remains segments X.X% with and trends increased

due business and group compared positively leisure to As week strong impacted anticipated, spring and quarter Easter. over in revenue the travel leading and in transient XXXX negatively break March to Leisure first X% into increased timing demand the Easter the impacted travel. of

Easter. timing transient April As due in the expected, revenue leisure to was of impacted negatively

we moderate, levels growth seeing we consumers are rates not of While are to signs and travel. pre-pandemic significantly year-over-year expect leisure above their reducing

to all-inclusive X% the our group for the Cancun January and second and quarters pace approximately approximately market. anticipate of resorts group in performance example, quarter, is quarter the up increased strong good contribution Americas April with second February. RevPAR up off revenue in the in of X% and room For XX% the last solid to quarter from to We led third compared start second by XXXX, Meanwhile, is with year. the a for

year with full another expect December meetings service U.S. We solid group up for X% events of managed for demand properties of pace for currently through and group XXXX. May

was transient of compared January April business over Finally, and transient's with positive X% XX% growth the recover. approximately we business quarters U.S., last saw a travel X quarter we trends to optimistic that to continues both in the contribution in to business strength XXXX, and similar the in sign And February. RevPAR revenue clear globally XXXX. remain increased up about

members Hyatt Turning membership the reaching longer, and Hyatt highlighting with at new hotels the book hundreds are countries the offerings additional new of than than highly World world valuable through now spend of twice around increased XX more approximately Mr luxury which XXX and in engagement boutique quarter they markets. the grew now through Mrs channels I'm in more thrilled also a our of over our to base, World million is because and members Hyatt. have year, Loyalty available expanding number small including through Hyatt of and villas previously with & past available our program, our properties penetration high We Smith share channels. alliance more that of hotels stay XX strong loyalty to of night end. room membership the XX% quarter, they

We X,XXX the end and World this & expect properties of through year. Channels Smith Mrs Hyatt of Hyatt by to have approximately Mr available

with relationships Smith, our owners. and potential those establishing Mrs engagement also with direct are to Mr to hotel this & We opportunities owners, expand will we lead expect

announced reward our collaboration well-being. loyalty expansive programming, week, to members well-being collaboration other of from further World This with Last for the Peloton their differentiating Hyatt we of global roster Hyatt's prioritizing programs. joins hospitality

Program accolades of Finally, for Rewards World and including several Best Hospitality Hotels Best Hotel being Credit named Newsweek, quarter, Benefits Loyalty Card by Hyatt NerdWallet. received Rewards during Program and and the Best by the

Additionally, Forbes XXXX Travel Guide U.S. were XXX by XX Hyatt by recognized properties recognized were and Hyatt properties

growth recognitions addition Report's These World program's & higher for preference in our Hotel brands. room and greater loyalty to driving inner the News is continued Rankings. penetration night

Turning development. to

preference realizing the owner pipeline. greater through benefit are continued our of of the expansion We

pipeline, Studios open pipeline strengthened our UrCove our and around brands. further XX Andaz Hotels Our room years the and and record a Hotels, hotels new of a approximately in negotiation. XXX Hyatt, And Thompson approximately luxury as Studios, XX% We China approximately now pipeline. stages existing portfolio, UrCove the contracts increase have in across we are brand rooms, and represents our signed such have we upper of since XX% and XX various mid-scale lifestyle year-over-year There Hyatt in reached Hyatt brands Park including with XXX,XXX base. our in announced of including

a XXXX. is for Studios which milestone Huntsville, groundbreaking the as open Hyatt to celebrate of expected property Studios in Hyatt another second marks we Today late

customers. pipeline in in increased net Our Houston, X.X%. Secrets Thompson footprint. And UrCove Playa is include Blanca in an our Westlands, and our the Tides by rooms Punta Mujeres, global record expanded Secrets growth Cana, across effect points enhancing Kenya. China offerings Costa into quarter, openings and properties network and Notable Hyatt price translating new on in for multiple our more our guests expanding Nairobi markets We focused first hotel remain Regency

with added The hotels portfolio. upper our lifestyle, new and resort demonstrates first this quarter to mid-scale

Turning to transactions.

The of the in updates partner our want XX an dates the on completed India. venture important share they was this the hotels India. partner with representing And Mumbai We of Grand value Delhi, the offering and Exchange any Juniper branded relationship our the XX Limited of existing and assessments confident venture, value XX% an developed to of the Andaz Juniper each including the India. with company. successfully and analysis our iconic Hotels years initial also the several with quarter develop up an portfolio National first, Hyatt The that back raising sales. which are Juniper I current Today, joint asset cover million, or Hotel residences. of have Hyatt interests. first February, when But partner Hotels historical made in value current of to transaction close is public In $XXX formed joint BSE ago, to venture of parts stake venture we we exceeds has of completed to our Stock of a in Hotels capital Hotels, Juniper joint sum is in equity approximately years Hyatt X XX-XX India, joint on in

IPO One Hotels other Hyatt guarantee. benefit relieving debt is the debt down of repayment substantial that third-party Juniper a paid of

and us In creating brand addition India to in country. venture enhance this XXX allowed over joint the reputation leading significant relationship hotels in pipeline open to shareholder strong our value, has

to Turning asset sales.

our long-term Hyatt quarter X, a transactions, combined on San $XXX multiple. Regency, Regency retained Hyatt April a XX, at selling Park Hyatt X on on Hyatt franchise of Regency of Green during Hyatt long-term several closing Bay. Aruba to proceeds Hyatt San May April we have announced million and and share. Bay We XX.Xx call, on Park Zurich and Antonio, which agreements XXXX separate at addition Regency, to the updates Regency Green X In fourth Zurich both February We Antonio at management we X, sale for Hyatt agreement completed

seller $XX we Park Hyatt In in sale connection financing. with million the of Zurich, provided

realizing for $XX these next capital avoid will great years. expenditures to addition over value In we few assets, of the million approximately

have uneven, once all-cash a transactions transact the the ability buyers proven an case Regency of again complete Hyatt to environment variety San has with Antonio, Although in transaction. our been and we different of

billion signed sale a asset for proceeds also agreement that that would closing $X commitment. sell-down yield and cumulative an purchase exceed gross asset We the upon

in remain marketing previously the process we for asset we Finally, another mentioned.

disposition of multiple $X.X announced this remaining have commitment completed will at commitment our X complete billion sales quarter, asset realized from our of proceeds estate that We remain We the August the of of portion second of the XX.Xx. a total end disposition net including real the $X billion XXXX, we during year. in of since the gross confident before

positive assets exceed increases operational all growth our across made XX% shareholder significant our are closing, pipeline expect are membership. disposition In we once customer quarter, leading we on which free on execution and forward-looking commitment. asset-light rooms, pleased effects The segments. progress complete to in earnings focused have we owned across including we mix, and will run selling flow network is indicators value. that with basis billion a rate and expanding the We multiple increase and $X our cash fees, remain This loyalty strong dimensions, our our

a was hospitality are Before Great I longest the one I Hyatt the honored that XXX the the to in on Fortune to say one received recognition, by row I Places Hyatt of for has my conclude named companies Work to marks that Companies remarks, Work. we how am of year want Best ranked proud XXth and to be this This in list.

ability every shareholders. day they so great deliver our me and care to results to the and guides to in can people gives future best, for to confidence for purpose value our create Our continue their us into be

now more to you. operating provide Joan over Joe, our will results. details on

Joan Bottarini

everyone. Mark, Thanks, morning, and good

our reportable distribution. segments: to remind reflect franchising, Before I'd that leased quarter I like and new our management X results first begin, and everyone and owned

this historical in is our First new Relations information published reflect our quarter segments. our recast we reportable Investor results on Selected website. that have morning recast to release been available earnings financial XXXX

COVID approximately the RevPAR the first by from by which the strong RevPAR As growth Pacific, result X.X% including Americas, during multiple growth increased easier comparisons of Asia This system-wide excluding China, In demand was excluding Thailand Greater quarter in markets. RevPAR were China, Greater XX% XX%, by States, from and Korea. the lifted. Caribbean. aided across strong a Greater first fueled XXXX increased United travel in quarter of China outbound Mark Mexico Japan, growth to international benefited mentioned, increased approximately growth led markets, and RevPAR which in South restrictions to leisure XX%

all-inclusive net the results with for the similar RevPAR at Americas our saw quarter. We package XX% properties growth also of in

performance Southern and to Europe. moving to Europe, RevPAR due increased in And XX% exceptional Eastern

finally, Easter, of impact properties reflecting demand X%, the Our normalized impressive the excluding growth And was RevPAR XX%, European net high by produced resorts Islands. in driven approximately United in up of all-inclusive our package Canary the approximately RevPAR growth. States, for

non-RevPAR excluding our million, fees fees. Franchise fees to RevPAR greater managed system hotels. combination total, XX% fees UVC exchange a and $XXX EBITDA fees expansion segment fees. Mexico up foreign in increases opened and credit our combination the and We international from increase gross from Incentive RevPAR of greater due in reflecting our by co-brand contributions a growth, driven reported hotels. increased of headwinds due increased managed increased newly X%, to in Base other XX%, increased franchising size XX%, approximately fees and franchise and adjusted record and increased card an of In of management footprint fees XX%.

group including quarter well Moving which owned Phoenix Super when our versus benefited timing Adjusted segment. which Regency Bowl, across XXXX. as leased March impacted We XXXX, comparisons and Easter the adjusted faced as EBITDA in of dispositions. for difficult portfolio negatively the decreased to our asset by U.S. the for Hyatt revenues X% owned lapping

sales the and to markets certain XXXX, negatively was after adjusted taxes, transaction costs real closed by EBITDA the first wages asset first impacted that increased of associated Compared quarter. estate also with in quarter higher

to owned achieve the Our moderate for that ongoing we expansion expectations year, margins XXXX. to maintaining continue expansion be margin relative full and of leased will flat to

EBITDA reflects XXXX, full sale our UVC Hyatt's interest through year the on ownership Finally, of well adjusted majority XXXX. February as XX, our ownership distribution as segment's of in

relating EBITDA adjusted Vacations first quarter compared headwinds period year. strong lapped $X to before adjusted our with of very results year-over-year closed. ownership $XX losses distribution to are statements transaction Vacations. million of EBITDA First as quarter a our last of for results XXXX prior UVC expectations declined ALG The full ALG These the consistent of XXXX the first for our million segment's public as quarter include

transactions, headwind the was the total Compared last exchange EBITDA company for when from quarter Vacations. adjusted excluding to approximately EBITDA adjusted of $XXX ALG Overall, foreign year, increased impact million. X% the and

do comparisons Our core of in leased The the quarter led franchising management through not challenging delivered net will results we and remainder year. and by which first business expect rooms outstanding owned lapped RevPAR the portfolio and the continue growth.

liquidity. to moving Now

we $X.X on revolving profile strong March credit in is at our We strong. our total XXXX, committed the remain approximately and capacity sheet quarter, our facility. including end approximately $X remains liquidity borrowing billion At $X.X outstanding. billion, debt of to of reported of XX, As our the billion investment-grade balance

available. first inclusive price shareholders, of have During and Directors repurchases. million returned quarter, has of the purchase and for we $XXX we dividends Class $X million. company's our billion approximately We $XXX aggregate repurchased X.X The A common stock increase share Board of share $X.X of authorization, B shares authorized to and to over million an billion approximately Class a now repurchase

provided we transactions, call. our our are review After reaffirming to we for our quarter like I'd Now fourth outlook. full impact the earnings for that of outlook the XXXX during year adjusting

growth and RevPAR X% system-wide between year to full expect X% XXXX. compared We

and and moderate RevPAR high transient to to XXXX end exceeds segments to group of the end growth compared our expect RevPAR growth transient around outlook, the to RevPAR U.S. rate. business We our in leisure at range. key a global customer our markets while contribute international meaningfully lower We grow growth anticipate overall growth of

to between $XXX is net $X.X expect both fees expected million of to in adjusted Gross X%, and expected growth be billion, organic range to $X.XX We growth to by conversions. and G&A X.X% million. of in the and billion the driven $XXX range are rooms be

the the as UVC million X reflects to prior of be midpoint in to from adjusted $XX reduction EBITDA to million Mark the well For cash is of as adjusted the including to closing payments expected including tax flow to from reduction that million, adjusted in sales. the outlook mentioned losses a million transaction. Free cash billion sales asset due EBITDA our to transactions, the updated quarter $XXX relating $X.XX EBITDA, asset the at $X.XX to $XX second $XXX $XX million the range X billion and

our shareholders We'll share raising update dividends. on our outlook including million we outlook range Finally, additional found sale a returns $XXX of are of details full asset outlook transactions our Page The to and of million, can close. to be for earnings to $XXX X our capital repurchases as release.

presentation. revised a on can on earnings the this model found Additionally, morning we published growth Slide website Investor our which Relations be XX of investor

quarter are my with prepared our by very remarks we conclude I'll pleased saying first results.

results, and it about our you. the our delivered positioning excited differentiated And this with outstanding of model. which to Our Q&A. demonstrates teams and turn We're I'll have we to year remainder believe our operator unique continuing back for Thank execute strategic that, vision.

Operator

Our from Fargo. Politzer Instructions] Daniel [Operator from first Wells question comes

Daniel Politzer

seems just you touch here. think pacing I you from to are towards high asset that level about want billion $X First, It like how sales target. guys

or for of we another you be kind going do how it's to here? even do you Should forward? your you there hoc kind expect ad maybe As target? of feel appetite exceed like What's get asset think sales? Or from it, going about incremental

Mark Hoplamazian

excess we XX% and at Thanks, we but not have were intend assets And fully the and we a assuming continue got opportunities run with we come that close do other last another earnings, sell-down at a in we likely number those. we opportunities. -- And to in to look will everything phenomenal asset-light. fee-based perspective, our conjunction sell left we really will It are Yes, will of opportunities full remaining. for publish is XX% growth program. the portfolio, rate the of targeted year in be true to And that We from year. that Daniel.

JVs. not form We have X the of some Park irreplaceable excluding assets Hyatt's, in

barrier New JV which Chicago of the consider assets Miraval highly would York the Park all to and in I perspective Hyatt what own a valuation a portfolio, We Europe have high and Park We Paris, a be durable represent Hyatt in from markets. extremely

And what about to do so optimistic going we're able forward. we're to very be going

company like and will our in I down. nobody X, to X. that every So a is We in that's we has not see not other There for get industry target expect think can us sell continue us. to to our industry, you

other, we that that example. value-accretive Wells, is is find fact other out. will Irvine think, the I to Indian buy an from opportunities proved very to so time. time hotels And we

to mention, City Regency and others. Mexico in not the if go so Hyatt And you back history,

enough, I but can a that at agreements. So sell and market be add that opportunistic then think and is is profit to we retain modest. will and proven we'll that, buy we've important long-term to opportunity management if not enough the value programmatic and good plus the us do And

Daniel Politzer

That's months just now initially you X% But my about few it, to RevPAR we And follow-up, as guess when introduced X% helpful. versus takes? think a I really reiterate you your guidance. for ago what changed ago? puts a if bit are a what few and some China? seeing little that's bit maybe opine And months of in if on And the you you're can versus a

Joan Bottarini

question. I'll that Daniel. take Sure,

On as into look the that us seeing be continues is quarter very X% international world to to the as we second reported operators X%, is, in quarter, pacing our the the are And around what results. and that at strong. strong we telling first we're

in of strong But outside good New as with So on like pacing significantly on international us There up is reported Easter. remarks, good or exceeding we important some with we high been last business the high X% noted the U.S. our And quarters low saw seeing the growth say, quarter would has as we end for of York a that we single first our the in the strong the markets prepared full The end very and transient for about are into was the feel up think about in digits. year. X We headwind X%. those of year, the Easter transient side. in And results. U.S. pacing is business guidance the U.S., very the short-term I the for holiday. group also business very our the

say, the the in U.S. on composition the the to all, lower international end, the higher maybe exceeding would I all of higher on So markets range is RevPAR end.

China in international as coming then Asia And we're the on exception, strong. has good quarter. I been, and markets And actually respect China. excluding really, to seeing no specifically, is with China, what out international Pacific, results news really China, into very mentioned, good inbound the China

increased. has of from the business that mix So international China into

X I think to about our mix. X numbers are the points percentage on

increase we're pick up. levels, Still into inbound. outbound all then that around story business prepared So world. And but a Japan, seeing significant a we like outbound those in below in markets, and frankly, material in Korea, from travel noted seeing we're that the markets pre-COVID Thailand international is phenomenal China South remarks,

that So really good out results coming region. of

Operator

Shaun Our of comes America. next Kelley from question from Bank

Shaun Kelley

Mark just in a little I or on to want Joan, dig ALG bit.

first the of exactly just helping part what So is occurring was understand kind us here. kind of

had -- both out like with there there of release of weakness. different strength of you X I'm side, help the the So it the trying called and areas, distribution to records mentioned one in kind sound those square Caribbean the we're of comps. just of balance -- piece Europe revenue? just way or the had something both one and Is distribution difficult that, in tour the Latin Is demand the comments the picture, us kind that So on and very gap And America. X on big packaged that X timing headwinds those a great kind in you sort in seeing? of strong and about

Mark Hoplamazian

headwind true. we previously in that business, I had the respect show quarter, That's be $XX that's an Vacations approximate think, with to -- and million ALG already that would up said be, indicated happened. was there that really what the We first and would to going that, Yes.

that lot comparison with had last year, a the extraordinary. So was to which to of do

an Just in of were scheduled efforts. by was satisfied that way to demand, were reminder, not we backfill able relation there fully unusual being carriers, of which our air there -- level to was by

Mexico -- to Jamaica and the the tremendous Coast drove and Americas forth. the Caribbean of traffic both throughout well, resorts also West the throughout -- own We so our all-inclusive Americas in and

world the has with side. air So changed -- and this respect the to year,

have understood So which that dynamics we there. packaged -- levels knew a come bit, but facing down we and were different

for still is resorts true extremely strong. our remains that demand It the

Cancun of very second at pace XX% in plus is if first our X%. So look quarter Cancun, plus the strong pace, the for you quarter with in example, for pace the

to it year fatigue -- last the predicted enough was temporary is. and the it referred as is it was So what sure Cancun we

I be our resorts. So demand our Vacations maybe we that resorts can of own the out hotels ALGVs fact point XX% about for volume. resorts And our of And of that business by Vacations remains would our difference virtue revenue strong. ALG represents results very, total very ALG book a XX% and there into that between represent just total the

So a lot that other markets by served a Vacations. of there's of are ALG being other lot and hotels

Joan Bottarini

we color like for quarter, additional I we that And Sean, business RevPAR what of we'll mix would entirely one provide just that first just going to the correlation to because anticipated. net with just the forward, packages the and what what markets do recognizing mix that results. as plan ALG our And to forward, isn't we of going is on package color to just is far that provide said Mark add serving. connected continue headwind did as is Vacations thing is of that that there's

Mark Hoplamazian

Yes.

difference our Jamaica And we sell second and quarter in as will Jamaica in so quarter, we up first as the even have most Jamaica. be going the packages Cancun, likely pace quarter will is strong. and such that outlook one and I again given though lower, show the mentioned, into third

affect ALG differences total those So volumes. Vacations also

Shaun Kelley

about, as us update you've embedded expectations in sort general know back And COVID. talked outlook for being, lot general, give noise Very changes of segment I of as in to then was the broader go But your that. And Can of the and little you I helpful. your it? business, an if on year, what's pre-COVID bit for this then think, just back And to maybe beneath distribution mid- kind teens for during stick with think, theme. in we there to we just I to I high or that look margins normalized a a or you're baseline, think a times. that mid-teens

a the seasonality? expect year top mean understand Or given isn't So help think in of assumption we to best little and that like this the Just just bit over? should from the how line us of quarter, about quarter margins sort underlying QX here. to

Joan Bottarini

Sure.

we So earnings that here indicators Sean, between the in have Relations website, Investor model on do growth our to see XX% XX%. some you'll for the distribution margin

All is of a those -- the basis. data that year on full we're sharing

you for be that distribution expect for expect we'll So within some year. And what the margin. can we on us full to range mentioned the color give I

the anticipate and $X or year, quarter. For of down the year Vacations in so so ALG about last million $X excuse down the million last about fourth million the or or $X in X quarters business for me, and the up quarter flat second to we --

reported the that's X and last the of quarter. the $XX that for all year, the we excluding for flattish first million quarters So

Now we have what in you'll the is have distribution in UVC reported XXXX. to segment do

segment. that you all strip to So Vacations ALG we've given information out for of that

Operator

Our next Morgan question Stephen from from Stanley. comes Grambling

Stephen Grambling

the cash considering in Slide think XX to on flagged versus you'll targeting X of net think and you even peers at sub the closer deck. And free the flow higher. all asset-light before it XX, on leverage also Slide -- leverage I Xx generation, the noted you lower was I maybe that be So of operating turns

greater capital the as the the path. that what you're the are that's model shifts. factors So something right either potentially structure about if that's thinking something And to debt of are capacity watching take advantage you or how like on that, then

Joan Bottarini

Yes.

capital allocation are We strategy hasn't our -- changed.

free sale maintaining cash cash to asset of priorities one the shareholders. look back is we and proceeds, business, and in at profile reinvesting excess turning our investment-grade generating As flow our

how and that's we've at balancing it So it. looked

-- an and squarely profile now investment-grade look our have We good. we're ratios

a debt think opportunities be Xx for us we targeting gross below trending to ratios we about how grow, into basis, manage as been and the we're the on future. that We've those we'll at balancing So moment. definitely

Stephen Grambling

follow-up business Right. you there or are last the even today sitting I to here quarter last that there less maybe more year? in in reinvest maybe a be, And guess just out would see opportunities growth or generally than

Mark Hoplamazian

Yes. is -- short more. would answer I the

more transactions actively transactions than We of year. last in take are the more engaged shapes. course different now These forms were of we over kinds and

are deals. them portfolio Some of

management of some are them brand are them brand with company management. of Some acquisitions,

take And of again, to second we is primarily as So expand think potential and and it, just stream, is reiterate they effect World different which network acquisition the for first served. forms. way customer any about for how third to fits it's in base the geography Hyatt also destinations

we seeing would I are it say, is, more Much of So activity. market. off

now we're pretty not much at right and In fact, in an part looking engaged everything that is of auction process.

Stephen Grambling

that stick end thing talking you are looking being a about clarification think customer? One you're out Or quick base you'll that with that the higher broadening the as that for? Is suggesting a you second customers just the on customer through. follow-up. But maybe first servicing

Mark Hoplamazian

Yes.

the high-end we that either would an double mean already customer of it's base customers. base, the -- say our business, But and serve. to core just think I on customer growing customer click I is serving by is so what -- what obviously, know existing I

profile have really either or or predictor it's similar, geography. by spending So that's good in by we demographic value might our patterns expands what a at and but their base, customer cohort of existing looking their like age look terms travel patterns,

our profile core. age the to case of in of the guest XX our similar age base demographic Dream is base. actually of quite guest the their the But example, average for years Hotels, average was So younger than

to financially feel that's at customer we base, great our age. extension still expansion younger of that, a a So but an core but our customers, and capable similar

Germany. total If Hotels, their demographic profile. within traveling Lindner of a are you proportion similar terms look the in at But business of very is significant Lindner Germans

XX% -- strategic which are those of deals different reasons, grow effect our up World and on the prepared really Hyatt, growth I network X That's a So over as in deliberate this year. is all done grow base in for of it's my very a the different mentioned benefit a customer way. but key to and build designed remarks, rate, very significant doing last

Operator

comes JPMorgan. Joe question next Our Greff from from

Joseph Greff

And I asset a is evolved maybe capital touched M&A of this that little a monetize I'll differently I way think hold of your how you not in Juniper in post insignificant, to bit, Joan, like is And terms maybe then or stake, over sales much which in to per there follow-up. Hotel share $X here? tuck-in on then the plans then Mark, terms acquisitions? are your for ask And additional of it have brands or the Hyatt, from time? plans allocations that

Mark Hoplamazian

And Maybe mean, We're Joan, very I in stated We're disciplined start. I'll that still allocation already being investing has business. our the strategy not about capital it. changed. prioritizing Joan just

our think itself trying of arrogant speaks without for about sort to it. sound record track I

done I have that we deals Sorry think But about that. we've executed we've against the good post-acquisition. a and executed job well of

very create we're our we rooms to growth to shareholder grow. much sake and not That's and well are continues not there. it say, or the So won't -- significant why higher I just think don't value. That's too would capital do doing. posting more net makes we've deals or where sense. allocate more for trying we're something a we what -- for think thin that disciplined. of, We're I negative, that. reasonable I We done it's biased, We like growth know, to pipeline, have us pipeline net We're

our was we percentage quarter the pipeline was net in had quarter rooms pipeline, a our conversion was of -- out openings quarter. tiny first the first And everything, almost for growth

not forgotten. So to be the pipeline is

activity just seeing They large -- make there It's -- With between. because we further regard. so everything going and not in world of our that's And tend to not that are respect that said for we not some opportunities. some narrow. that or fewer sense things they're very things that, would it asset-light, around a but are assets on we're tell yes, now aware what's to vast out to they're -- we the universe we're XXX% a asset-light. to look things there, do at more include very be majority, make business of be for brand And right platform Having going the line we we're -- you is do where looking there good are to sight I continue assets. of know X proportionally of that what XXX% you have with and the pursue And if it. the be opportunities. may or at cases that in The we management it can would X involved, either fully us. brand

end we asset being backwards time our terms do up for to any not of So going period in extended whatsoever. -- intensity plan of

Joseph Greff

this -- quarter year, Okay. an with a perspective, And you do to it guess, maybe sort for your so by I see EBITDA in of outlook estimates from just how then respect position you're viewing are which I been that that but full results. this spot be consistent everybody Obviously, or great, quarterly is maintained, with a would probably know how that's for on has year the call. helpful that

Mark Hoplamazian

Yes.

Joe, to or by your your about I Juniper. comment answer way, the -- So forgot on question

itself service company The done years business to in thrilled management see way obviously grow. remarkable more very us quickly good opportunities has just the that. the IPO. me by high-quality with a in assets. let with cover way, the India by team And remarkable grow that has there the helping -- done over some and us So We're

in continue it's our a look in to us that India, help have grow to continue is that's to interesting of time. an is going So opportunity a company a India very sort opportunities at to stake and expectation. to for

on the And has been staggering, growth First growth. the country muted. quarter XX% fire. results across over is supply RevPAR were It

and So our marketplace of the organization, and our potential terms opportunities team other well of the in strong. of in placed are the partners' getting for abreast hotels. really leadership of extremely acquisitions management identifying they say -- I outlook And the is would

respect to to is our for X. with as XX% Now stake, remaining up the stake up our our intentions year, for and X locked XX% locked of is

on over will up exactly stake. So -- that can't we be. comment timing the what our we expect do sell time, is down of But tell you would that what I will our I lighten that and

stay delevered team. superb acquisition I management past lockup we it But strong of going It's business. as to a into of very capacity and this and keep and and get now lots closer think has look we're it a track these it's to dates.

we happy with where the moment. at So we're really stand

to year, of transient, there's second cylinders. the the I encouraging. With on respect that the frankly, extraordinarily remainder continuing first in quarter all some the things Business outlook to fire are for just quarter incredible the think into is

-- Our were type. XX% up business as hotels transient the about quarter. Convention a hotels just almost XX% first in were XX%, hotel up

was the in -- business XX% Because reference note quarter. strong. And the XXX% XX%; you was that would were are continued Why? just transient we City up fact and in San I a of the transient, staggering. U.S. just technology those points the transient. gave strength of I York make was Jose special And really in first up These U.S. business Seattle in going numbers see New

business years each of normalized business the in X% we're -- we already. would of each group expect we'll in basis. our business year, the with gift and be keep for is books 'XX, where to this We digits in up the 'XX a than XX% the a double side, our X remainder books our for something is for multiyear to this Both on XX% expected it but the on higher up that XX% of range On on giving. the of of pace numbers and 'XX are already, on 'XX those XX%

on group. from is like are think very books. are I strong our business So the that very are to the remarkable. something well quite up even numbers demand mid-single-digits is we're the continue into we XX% these to strong, 'XX -- in This And of and extremely benefit positioned with

strong, X and finally, given time. certain Both like has Lahaina, in Hyatt still X Maui, are yet, extensive rather have Grand storm to large rebranded are affected is we that renovation. then under markets consistently been hotels, this major at hotels leisure there the which being And actually

being partners, investments in owners our hotels. our big made So those by

to resort the is. first the And have all-inclusive's that the base to mentioned sense U.S. a quarter. our pace were properties was good market for with XX% you second up in adjust out really quarter what So already get the those into up X%. we And

Olympics -- many, look in proof see the fourth year. to aside positively negatively November many so of for outliers So the that -- will the be this click third Europe, across but affect the also second. those the a board, It's solid quarter Yes, impact that the and I rather, quarter second quarter. going travel true across leave -- a points in sorry, in elections I and look and will the D.C. I geographies, area is at

continues mention course, GDP And Taylor of Swift, now. to the for world to grow who have we

So she effect which every is on having market she an in shows up.

when see So I of points, of and segments I going well. X -- data -- business all segments lot lot see can't I just we've data a seen remember and a so

yes, customer impact about and but it's and to to us, going sensitive customer at we're higher, we serving seem having for a rates that. is see and particularly -- they're that is are -- negatively inflation the base. of very on to reality ability spend, fact interest Nothing Now that higher-end somewhat it's And our that is not not -- this the the an people's impact we're happy not inflation sticky point. down can just higher impact

the customer our world. around little and a around bit tour a maybe base that's So

Operator

next Richard Bernstein. comes Clarke from Our from question

Richard Clarke

impact just on on Maybe the QX. first Easter

U.S. impact. You the gave us

being what unpick to would you would QX And reverses? from can into be? expect if the you that sort of as accelerate you comment on into maybe RevPAR wondering impact QX Just maybe you Easter QX, global equal, think all else

Joan Bottarini

and and April side on our will see in prepared certainly break the impact month remarks. group is a April, Richard, a take holiday global there around on impact business of number. seen on Easter basis, global in patterns the is different in quoted U.S. material holiday. spring the travel benefit for because don't a material reverse the the the of We and transient which people that not we've

So in see U.S. the particularly certainly we the reverse,

Richard Clarke

buybacks and Okay. done $XXX to feels That just Is And increase on the questions limit the done I we Zurich the like the about year? this to et you've cetera, that you've Is sense. as you makes have look It wondering taken get that bigger later of the QX, in the a QX. you that just know forward for disposals -- couple cash [indiscernible] sizing in got But it how to already. buyback number? this a up million. of actually increase and

Joan Bottarini

Sure.

quarterly future As that provide we each transactions. call, without earnings incorporating doing we're outlook

proceeds in of we could cash that we the and about return our evaluated XX% increase at undertake we our would that and would looked we return as buyback be excess would outlook, So we outlook. -- our increased shareholder the increase those clearly that outlook, saw

you. the year, to throughout update proceed we continue As we'll

as we update cash outlook generate excess that we opportunities are execute whether you We flow, return And and any have some transactions process. in evaluated new additional we'll on if those, on we shareholder have.

Operator

from Jensen comes Our next question from Meredith HSBC.

Meredith Prichard Jensen

see sort engagement? we increase just that I there's huge. co-brand or would had increase? of a to guess, I would And expect of it particular I driver XX% And in as be something if may of -- that the of or that you which related be show the the noticed program, the sort sort we what that, financials, is that press increase? should high trend trend loyalty release, wondering in was in any increase

as building directly Smith, just mentioned relationship secondly, & quickly, time very Mr if Mrs the on. you deeper And on goes

metrics time? was time of how track sort in of those financials So that we terms over show has evolved in And I be How -- over wondering, of that used? would relationship? what that the could of profitability might kind up

Mark Hoplamazian

Sure. on the Hyatt. A World couple of comments of

The lifestyle about demand. in that's really which Hyatt, through number of disproportionately major players. highest quintupled hotels the the grown that including high smallest a the we all resorts choice to, we've of last end. those moves though We hotels of and made the And we've relevant to of that have continuously all at to program customer refined serve. the available members travel think years talk resorts years, base be want portfolio are you be our I to base you cumulate and tripled when the over tuned able of X doubled the we've years, the shifts, even attractive When number luxury of the core number over those that now, in we that our very are the to X

we in around our can we terms is was continue bookings owners And the very at build attract to growth hotel network drives performance available. And as so margins channels The to higher will will to turn, members more from a better direct channels, level do what from total Hyatt continue in this of relative performance, therefore, effect capital all result cheapest that we world. it the hotel corporate the platform the at are when you that look to our network That, with at the strategy, owners that delivering because our effect. tailwind. deliberate which to improve of diverse call our through

that pipeline fact the over of quarters, you that think got the proof is if look expansion at momentum just couple in our area. I last that that's we've

but we portfolio front, brand -- stay network our the very mid-scale hotel because staying called effect saw -- extended Hyatt hotel which was an members Hyatt for no at to property Hyatt we Hyatt no traveling the a Studios. markets On deliberate to, there there. in last launched also Again, property increase a upper there's year move not

I I majority saw upon the thousands of statistics the quite days in vast and of -- at opening -- very & Smith, diverse. rates ago, are room we Mr Turning the the see Europe very in channels Mrs which we high markets X to U.S. Mrs at very, Yes, booked where that's nights elated. actually there for or just in a in surprised & critical are mass unique represented. which was markets of but is Mr are number underrepresented because not Smith, the were to hotels in

feedback much at already. they the Mr the maybe & traction and that surprised, on frankly, based the the clear And are -- a hotel am gained traction very I Mrs that in Smith happy think bit see network quickly. to feedback I we've very it's surprised owner this owner likewise that So

is that we network hotel And that recognizing make owners the portfolio hotel will lead I that. that time, every for we of segmenting to connection arrangement to that will likely think Hyatt, a will have be more with them. subset fulsome a Hyatt through a pursue expectation the just over what sense franchise

that. measure about our excited So we're That's is hotel key owners. really our those And driving measure. for performance

a and known Of more and course, over help that guess, network I will direct build more, to durable time. connectivity

Operator

comes question Scholes Patrick from Next Truist from Securities.

Charles Scholes

a you the year portion of fees. is expectations fees card expectations the credit beyond about revenues, the and little What talk that believe other within bit rest a for of are significant I for for the perhaps Could your that?

Joan Bottarini

significant the increase had over Patrick. fees combined franchise the in and a quarter, In we in other Sure, quarter. XX%

For guidance fees. on are now the we full year, giving

year full our total reminder, guidance up the midpoint. is a As at for fee XX% the

mostly what RevPAR, within from So growth, you strong, the transaction, which growth, we're that X.X% our percentage did very get very, is markets, our very boosted significantly RevPAR. other strong RevPAR is the international give the categories not non-RevPAR of will UVC point the to by fees. strong in But that going overall on within grew tell results I We on which components and points, of driven the couple different specific quarter, an increase a package fees. all but fee fees by our

growth expect the across continue at fee we our healthy So well. really to will other as strong the a is board, and pace fees grow

Charles Scholes

your when -- just a there Is up? is credit major on contract renegotiation And next card Okay. follow-up coming that.

Joan Bottarini

having of to year this on Sure. year that going -- that on contract. next start We're the discussions later renewal into early

Operator

from Baird. come will Bellisario Michael today question last Our from

Michael Bellisario

quantify that earnings contributed rate you how to out Just hotels X going period, a run quick Could your during they trying impact forward? follow-up you've that the on the model, ownership EBITDA X-month figure just those sold. much

Joan Bottarini

Yes.

is any We on earnings think report schedule, release. on asset We're those the to on I going in continue have the number to those, sale transactions Michael, AX. schedule the

Mark Hoplamazian

it's questions. separately AX, on about we can if that and have chat Michael, additional you

Joan Bottarini

modeling. the By table to table. We there listed are actually one those post and with quarter. assets into the put in It the the includes actually quarter, help

Mark Hoplamazian

a travels. to resorts our Thank you appreciate your you of your care by our this great interest you all We and your Thanks joining. and much hotels for for forward in morning. Hyatt so of day. welcoming to during rest look We wish purpose your extending time

Operator

conference day. a wonderful and today's This concludes call. Thank you have participating, for

You disconnect. may all

Hyatt Hotels (H) 9 May 242024 Q1 Earnings call transcript