H - Earnings call transcript Q4 2024 | Hyatt Hotels Corporation

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Operator

Good morning, and welcome to the Hyatt Fourth Quarter and Full Year 2024 Earnings Conference 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 Global FP&A. you. Thank ahead. go Please

Adam Rohman

welcome Conference Fourth Call. and Year and XXXX Earnings to you Quarter Hyatt's Full Thank

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

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

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

you In this our of to on will on today's website remarks can reconciliation measures Financial be this financial and a Relations the referred addition, An of available archive in earnings under release. section Investor find our call non-GAAP website morning's in on XX constant changes Please call for noted. on otherwise daily hotels rate, basis. that stated, currency and a days. RevPAR unless basis disclosed system-wide comparable during occupancy, unless otherwise to Percentage reflect references note the year-over-year average are a

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

Mark Hoplamazian

many the communities. the morning, D.C. Philadelphia thank include the for of affected Recent you around Washington, crash and Good events joining Angeles in other and and Adam. everyone, today. you, our in in world plane the area have Thank tragic the wildfires Los us

to during who cared out times. these to for those those want thank Hyatt the colleagues need go have Our difficult in affected and hearts I

of announced approximately billion, touching we shares to on like $XXX acquire recent Hotels of debt we net $XX.XX per approximately into Monday On transaction $X.X & including call of or cash. of share all for entered an this outstanding week, Playa to Resorts by activity. agreement that today's I'd million start

and X.X% of is long-term for for pending Hyatt Hyatt Hyatt Hyatt Club. provides acquisition Playa management and all-inclusive currently an currently into and infrastructure enter well drive the The properties all-inclusive including value luxury branded shares. poised expand outstanding channels, and existing through Mexico ALG segments owner our Ziva our Playa's approximately Zilara by of opportunity Vacations our Caribbean. Unlimited owned agreements and distribution the beneficial We're to creation to complementary business Vacation strengthen in to

owned announce assets Hyatt identify XXXX. we to We for remain commitment end Playa's $X by to At and at to proceeds Playa. currently model least properties buyers by intend the billion committed properties. expect closing, This includes owned of of our and third-party asset-light to business a new realize existing

on XXXX. exceed a mix XX% our We to forma earnings in basis expect asset-light pro

the sharing opportunity closing, expect new sales At from maintaining to pay with the excited forward our with ahead transaction the financing investment-grade proceeds XXX% of financing We're fund once more I consistent about down expect very closes. us the acquisition mentioned. look over we XX% the of and anticipated details just new asset profile, with and to to of debt debt

Principe strategic during the to closed joint quarter International finalized on also Standard XX% and the with Hotels the Resorts. Bahia the fourth of manage and We acquisition Piñero long-term Grupo venture

properties franchise long-term along expect estate agreements retained the the property. real share in sell management also engaged or Downtown Nashville. Additionally, front, two for Chicago, joint Hyatt We actively We're to each Cabos and Hotel our owned in Regency Hyatt and selling Park other Centric O'Hare Hyatt discussions with additional XXXX. in and we Residences in were active on the ventures, Los

growth. to Turning

to compared quarter Hyatt for in expanded a XXX,XXX growth approximately and pipeline the quarter, record when new of fourth to represents the XXXX. rooms Our X%

rooms Our over of X.X% which World in January have at Vegas, in We joined the year. Rio the rooms does Hyatt nearly early now of Hyatt, the include net for pipeline system growth Las that X,XXX Las industry-leading rooms consecutive XXXX. Vegas Resort X,XXX Venetian XX,XXX the of We not for Hotel rooms part achieved are Casino. XXXX, & growth eighth of including delivering the in

enhancing Springs, addition River Principe There and hotels. the Hyatt were offerings. Thames, in Standard of Valley, fourth and included our Grand These Palm openings the notable Hyatt London and several resort the lifestyle Park quarter, Deer Bahia luxury Thompson

this the first We expect XX the provided the X,XXX rooms. Venetian organic accelerate in year, outlook of and days off morning. have addition rooms big net growth that kicked January the in with the the a opened of Resort new already to year we in we through reflected We in XXXX, meaningfully way

Now turning results. operating to

the Our quarter year. full during fourth records and quarter. the reported several quarter for strength our as of for the X% X.X% results system-wide of morning, reflect brands achieved we RevPAR growth the This we

high-end was prioritizing see as RevPAR strongest to continue year. for quarter among consumers both the growth in brands luxury full We our and travel the

X% of the first in transient revenue Results for compared to resorts strong X%. for over is the increased and festive were period the XXXX. single the in approximately And pace for quarter high quarter approximately first rooms in quarter. increased up digits Leisure revenue of transient Americas the the year, the XXXX full

October the quarter timing was U.S. elections the in revenue November. the in and holidays in of rooms was Group when up and X% for the Jewish flat adjusting

full-service the XXXX X% U.S. ahead, half managed pace accounting with up the to Looking properties is compared XXXX, for of rate average over group increase. for

quarter, in strong falling of XXXX be April in March timing Easter to to compared driven Inauguration and by the D.C. in Presidential contribution January. group the XXXX in the of first expect We

growth strongest delivering quarter. segment, the our of growth remained customers transient in Business XX% revenue

this corporate and benefited year, back deliver revenue we members We at year. World markets the to experienced major has Overall, year-end, our both continue quarter. Seattle. average road, and urban continues of to the Washington, membership success. demand and rate fueled a was million States, see and XX XX% for reached increase business record D.C. our remarkable large of on an customers new in New XX% in the in over up transient including the increase last commercial a approximately World results Hyatt York, of Hyatt United and

Kiplinger's quarter XXXX card Card. a for on Penetration Room highlighting engagement of credit record Choice during high, the winner XXXX, cards Spend to Loyalty from was co-branded Best set of the members. in Hotel our the Night our Awards our and increased World XX% Hyatt the Credit the Readers' consumer compared

of as frequently our Our focused effort for experiences and more to the locations choice. unique brand deliver more to helps guests in position more Hyatt

that over we Before a I'd Hyatt's that of to Joan, program brand-led to of like a build the and expanded community with travelers. attract loyalty a of the brand our spend we we've minutes in members. to XXXX, and reflecting engage turn to to needs When high-end deliberately it foundation on new would Hyatt our create and aspire and World I organization. launched existing of few was portfolio, evolution to meet World is portfolio Hyatt customers

award-winning an existing complement intentional platform, our growing would of accelerating to existing brands growth while add that brands. steps While took portfolio, also our the loyalty we

of members luxury wanted rooms, quintupled used to hotels, we've and at lifestyle and why segment. mid-scale same portfolio resort doubled Since while luxury, time, lifestyle the expanding upper travel XXXX, to resort, grew insights our tripled customer the We where and our rooms into rooms. deliberately and identify

launched also and upper UrCove our We Hyatt brands. mid-scale Studios,

away. At time, relationship into us were the for with caring is be they programs program loyalty more than have lives, embraced for a the committed of we loyalty that when they because benefits transaction, welcome power always their so The they to same many can providing say and differentiated them benefits best. taking our we when members Hyatt, their more to a our by members

care or the experience whether extended also providing We members value of more our membership. extended ways with through their property collaborations by on Hyatt, to that

members brand hotel journey luxury, inclusive, today, per classics is And measure, larger extremely hard is XX% we membership would measures, of been higher Since essentials. new we and And year. know step with on to next we if the base care groupings: our those significantly in hotels we've on our our grown average lifestyle, And loyalty our than successful. were our engagement membership by have begins base succeeding our increased. our and XXXX, competitors. While per

customers Our allows loyalty organization brand-led we serve using insights focus and that these customer on Hyatt. to that to and in new brand more us groups. We're guests will greater our brand preference further deliver group elevate the bespoke for each drive that tools

Even as grow to compared white we improve our we have space most competitors. and the to opportunities major these abilities,

to staycations expect from a well-defined serve with our for more guests. continue our brands pipeline many at to pace We grow healthy and growth organic to record

and Lifestyle the protect to & ethos ensuring the grow not to Luxury for just will each of in Our growth of intentional, very brand be growth. we continue sake

a the in be all-inclusive to increasing with continue leader will space driving of resources level powerful performance. We an

Hyatt, end much than the differentiated delivering and offerings providing Vacations entertainment travel frictionless experience beverage just channels brand. attending an like "all-inclusive" this vertically the UVC category. For through a of to the ALG and in more means It and means, existing while best integrated food

storied for select brand Essentials includes which Regency Hyatt. Our brands, scale group, like and Classics, will brands our Hyatt our drive and Grand which includes service Hyatt

mid-scale have the our many our serve, brand This Essentials we and hotels to year. on opening We our first hotel still upper Studios great UrCove this our brands. among of over with brands, Hyatt first which quarter momentum have XX focus will includes expanding footprint as more especially markets open in

This that of view leveraging and stayacations. most to focused travelers hotels mid-scale more approach insights growth. and across differentiated upper highly XXX loyalty matter and program our the distinctive fuel over have across a pipeline to our is the a we the as high-end future will more We future, in their serve brands offerings

individuals purpose care. to our our as and and We customers are extending committed seeing guests of

and average a a of aspect our We denominator to at members common approach lower loyalty returns and rate cost share at our wallet leads owners. acquisition, of business. and a lowest will This not customers for greater in our higher any better of among driving use

of the want realize That more Hyatt owners brand network us. build footprint. benefit our to and properties with increases Our the

ability room, margins more opportunities When owners. in into and engine as future. provides performance put per members together, over the which a time generate This to our the have flow we significant further our Hyatt for fees our loyalty and and serves better powerful for guests, and earnings, you increases cash more this to growth places driving

my the gratitude to expressing purpose each of like from Principe, our live colleagues stakeholders. Standard our for every Bahia Hyatt who by caring colleagues, including day I'd by to close all new and XX,XXX

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

Joan Bottarini

everyone. good morning, and Mark, Thanks,

over increased X%, fourth transient quarter, strongest by growth travel. led the driven RevPAR the X%, leisure quarter States, system-wide of During our leisure XXXX, and increased and business business transient In RevPAR in travel. increased United by

in RevPAR approximately States, up the in Americas, business the XX% X%, with quarter. United increased excluding over the travel

in properties trends last our from in to in third Greater Americas results. to all-inclusive RevPAR Mainland China, and up X% fourth In the benefited hotels January significant last year, had reported XXXX. festive net package transient quarter, a season. we the business during a improvement Our and was flat travel quarter similar Domestic strong of RevPAR China year experienced

the Leisure Greater Pacific, an continues Asia positively year, with by quarter in Japan increased by operating to inbound RevPAR Europe international and quarter. with compared results, up finished drivers had XX%. markets. results of exceptionally excluding Korea, approximately year as last primary RevPAR RevPAR strong Europe. international these were another inbound double travel to and in the digits increased X% up driven business China, impact India transient into South strong in

Base record and reported a up UVC highest fees XX%. We XX% in the of We quarter, in other the newly set and RevPAR fees, by fueled increased growth million, RevPAR gross $XXX hotels. for by States. opened XX% due in managed by to and gross growth franchise managed contribution the which fees the driven fees grew from United quarter the from fees

by a segment net of leased contribution from on international the basis in for to transactions. all-inclusive in impact and compared improved up EBITDA comparable other points strong hotels when increased Americas XXXX. fees and for year XX and adjusted basis X% markets. from points Owned Incentive Margins by the hotels adjusted full basis, increased were XX and the properties XX% quarter

demonstrated have and discipline to which costs. a increases despite on non-controllable improvements, has led strong hotel margins Our in expanded productivity focus teams cost

XX%, by excluding quarter, the the compared declined transaction. fourth million finally, the approximately And when of our volumes million Lower-than-anticipated segment asset EBITDA was adjusted excluding booking Distribution the last of and increase an approximately decline. total, Milton Hurricane in sales adjusted contributed $X year. net In EBITDA UVC to $XXX to impact

sales billion full proceeds approximately For from repurchased excess we we as shareholders. returned $X.X XXXX, asset year in shares the to

approximately repurchase have share $X our under We billion authorization. remaining

balance total revolving investments. sheet capacity billion facility billion strong cash, of short-term As $X.X of $X.X our $X.X December and approximately approximately with remains including XX, XXXX, cash credit liquidity on billion, and in of our approximately equivalents

During million their April proceeds senior use to the due we of XXXX quarter, we on maturity. of issued to or notes a those portion in and notes, $XXX before repay our intend

I'd release. to for found be like outlook full can earnings Page Now X our The XXXX. cover on of details our

our include as for completed of today. has been projections disposition acquisition reminder, does activity not a beyond As outlook or what

to in we full the RevPAR the X% range be For system-wide XXXX. year X% year XXXX, growth of to expect to compared full

system-wide range, grow the States demand, of expect but elevated by United the international to driven midpoint travel. see transient our outlook levels outbound business and of in RevPAR a expect to of continuation We group strong near

visibility For but very have we like trends to to At remains we see outbound have XXXX. noted, Greater travel as China, in XXXX term, this expect look short that trends begun international improve. previously point,

to travel exchange especially Pacific, benefit regions dollar. growth travel Asia anticipate year, any of throughout business the significant Greater excluding China, properties they domestic with driven expect rates, will have geographic transient. our the improve in strongest of inbound from foreign we compared We by the our RevPAR international and favorable U.S. as in However,

in including results Olympics third from see range. in in is we particularly the the Europe quarters events, the Paris, lapping year-over-year While at of growth very to end RevPAR large our and lower several expect second strong XXXX,

growth driven growth. rooms X% net organic expect to by of We in range our the X%, acceleration an in

XX% of last year. small Our expected outlook billion, deals, are does be range at to which $X.XX to and would $X.X to in to the the be portfolio billion Gross our incorporate midpoint increase a accretive outlook. range fees our not of current compared

addition Bahia of of growth. Our X/X year, outlook for the transactions International full the includes Principe fee approximately and the accounting for Standard our

also incorporates The which and based that earn business channels through outlook January. Las we joined fees increase We steadily system from deliver on the Our Hyatt in fees the fees Vegas, coming the over our Venetian expect years. to Resort

Adjusted at International of to $X.XX of is of adjusting range the and Bahia in expected of Principe G&A the G&A $XXX range asset $XXX million, sales. to billion transactions. inclusive the in billion, XX% is from the range of Standard midpoint EBITDA be expected compared increase $X.X be million and to Adjusted year our to a last when impact for the to

Our million adjusted owned that real segment and estate in the reduction XXXX. of leased sold we from outlook of incorporates $XX EBITDA

real the posted Slide on presentation this to refer the of Relations results. Please on our investor for morning XX Investor website quarterly impact estate of dispositions XXXX

free compared expect of quarter. $XX flow Adjusted cash For XXXX, the million fourth growth growth expected in to expected sales from XXXX. cash to to in to which be $X place to Distribution asset most we segment, million took $XXX XXXX expected with of the related approximately million million the of is taxes to excludes in million, $XXX paid deferred range $XXX that

Our remains capital strategy consistent. allocation

not at are providing committed value our We for growth share an cash this dividend form to excess due paying of transaction to identifying Playa. in investment-grade repurchases. capital our opportunities to invest the that returning rating, a returns and to We're shareholders, the create quarterly in with pending outlook shareholders for time

dividends. to However, capital do to quarterly XXXX we return in beyond shareholders expect

transaction the coming progresses. provide an Playa as will over the with months We update

see driven January expect these year the with be our far And guidance like holidays strong, mentioned to the in off February. I'd of growth shift above continuing transient. recent trends into Mark at RevPAR of first to the so leisure the closing, the by trends. or started highlight earlier, We of that timing we the full end range. for quarter year high Before

expected to estate the adjusted quarter million XXXX. results EBITDA real approximately negatively reminder, in by our dispositions to completed impacted due first a are As $XX be

year In closing, strength results our and our business fourth quarter asset-light full of model. the highlight

executed year, to organic as commercial growth by to our business, growth in operational, expected we successfully our network we strong past the And have remain simplifying on business we operational and continue grow be to streamlining strategies Over look into while excellence model. future. while core our our all ahead, and focused XXXX, benefiting is well enhanced the stakeholders

the And this operator for concludes our happy prepared now remarks, over it and to to turn Q&A. we're

Operator

[Operator Instructions].

from from comes Chaiken Ben Mizuho. question first Our

Benjamin Chaiken

we would I in remarks on basis. the accelerate puts that and XXXX meaningfully to unpack an you still takes last And comment? elevated -- navigating? then, was I you question, a on one believe there my, that Mark, in prepared of is any that variable it Or this For guess, the expect love NUG Is the attrition. largely I about can us? quarter, mentioned, organic NUG conversation I way behind you're kind think a

Mark Hoplamazian

growth, don't the growth this as it. materially Thanks, Ben. it Net refer of NUG, net but better in for is composition rooms outlook to year we rooms

remarks, opened for first As I net the and quite my X weeks mentioned not of we've growth rooms in our in -- X about represents XX% yet of year. that of rooms the the prepared the weeks X,XXX year,

number that The we're seeing last of projects of transactions. this are are significantly got include than from a larger pipeline doesn't those year, higher year published that because expected relatively to year, an pushed number hotels. openings we last into and be outlook a And portfolio

successful in very conversions. been have We

our total XX%. And probably about the rooms think, -- further In net there's last growth to year, XXXX, I upside upside. it XX% year, around XX% was of This XX%.

deals portfolio potential we've all, the upside significant. already and spoken of got is XX% from further First for

front-loaded. our of the year. see coming of out we half is That's in of which the we I pipeline first why thing are will different say all profile openings last last we very of slippage. this year than the the XX% They're over is had had year, that The

we conservatism really the of our outlook. and feel I stand where about So good

It other taken add also thing, very, say, -- approach. I would one cautious conservative I would we just have a and that also is and

a number agreement akin have franchise Meena which of under in an a Lindner under their the Group sure through to like be to under properties third-party seen but outlook a that are brand, and within we've people Lindner more You But may under associated with of phone, and right now. the on that filed net franchise Germany, attrition for -- us entity, is working a the with be the proceeding, XX I'm cautious growth insolvency. That's it a are rooms Chapter read the not appointees brand, number some assumed a actually conservative, family to that. our

conservative a you on this hotels is point. can the basis out of work a stopped I operate. go-forward because at continue nature think that's to none very to approach, of which And these the operating have processes

Benjamin Chaiken

pointed down. Sorry, what's it of size I the out that? track It's can somewhere

Mark Hoplamazian

in think rooms. Yes, X,XXX I it's of excess

Operator

from Our next question comes from David Jefferies. Katz

David Katz

the there about respect I of is of With number and recycling, portfolio. brands, brands strategy number Thanks other it to you which Playa buying guidance. know detail a and for all. like the the the conversations don't respect all about shed it to the to wanted with your light, real I But can get and degree it. that within And I in of deal. come but it's follow-up ask a the up of portfolio the some estate to

unusual it's Assuming with bit for what see in some we context. a those strategy brands, right, that there is other for dealing

Mark Hoplamazian

all-inclusive more commenting will to week the we're, planned creation really not our of the properties So expansion already guests drive the the and infrastructure more namely also able been attention and our and the really going released UVC business and we're of seamless distribution focus and existing our in owners think, channels, that in what's offer through positioned X-K -- beyond the guests management issued or value it properties the to our segments be is the release, Vacations the booking expanded platform, and this filing earlier value. more or details complementary in to Mexico of very the ALG on Caribbean. ALGV of to earnings transaction further I optimizing to and the options to Hyatt, And the well to be

process, what that, will as on. going of until go we more gist focused we're any the some really really details beyond things we're which to into months. themselves And through that's go take reveal further So not the

Operator

from from question Our comes Melius next Conor Research. Cunningham

Conor Cunningham

curious was about little talk just bit M&A. if a I for further you the could appetite

You've with obviously your been active super portfolio.

down forward? the little calm do let the you next things you lot this hotels. view you Like a Just irreplaceable going to those in when a stop as through talked portfolio you are trying things the about going go And irreplaceable of and still past, digest are from bit? to -- dispositions, you've changes understand then, this here. in year Just

Mark Hoplamazian

opportunity we to Sure. This first is, feel Playa. to brand have, you about The prepared definitely and Things the in a mentioned focusing the yes. part really behind that short remarks. calm respect down, That's rationale of will are was the answer as we said. I with your my on we our unique that brand currently question good organization somewhat otherwise, And portfolio optimization. attention

for that of number irreplaceable. with. that sale. in any the we got As We've we limits. hotels consider two respect not I would number moment. at of mean got to portfolio, They a We to a be portfolio. they're do are hotels are that to in with have LOIs have It We've basically don't extremely high-value assets which the doesn't discussions really off our we have

and it longer, those in at and We've Station through years of the up obligations Street. Hyatt working will a yes, a we're capital from CapEx very future. and and York attractive, complicated, perspective a the because from it, And processes. and already it's And but since they're also talked are Liverpool value take Andaz couple very been the into we've they been New two about of discussing Grand Central freeing

So pursue continue we to will those.

also the moment. working to addition those are two, in others on at And we

in towards further assets look portfolio. sales of to continue will existing our we So

at we fee-based point very it clearly, to is on of earnings an very this basis. get we're that -- going XXXX, plan we sort XX% rate expectation run As absolute to or by said a

of direction last dispositions, changed. to that's So and to us see at year you And can look we that travel. that the expect hasn't said continue further

Operator

Rose Our next question from comes from Citi. Smedes

Bennett Rose

different as I enter comment expected maybe on now could Playa, you're wanted could It's get that provide sales, that financing the could kind more of proceed? kind guess, kind little hoping a maybe forward? real buyer to transactions, down specifically, period just I you of just lot a to speak from like to of but as just all-inclusive environment little assets more maybe another round I you around your area just how sell away willingness ask of do a pool just you and of And a some but of bit kind And what's just seem quite just on, we the seeing. was hoping more, going traditional to look hotels. and they kind your color you there provide general. seller of I estate legacy we not information is And of an market that the see from sales in was

Mark Hoplamazian

resorts. the business in high-end all-inclusive principal position our presence with ALG doing the investors marketplace, in through for -- of and we our question. We because very the Thanks are acquisition the large

the by know very Dominican Mexican families It's dominated well. families, both families. and we Spanish families So market and

Spanish. So not both, Mexican, and of Dominican all

three well known other in and those many and both and personal with locales, well of family to are known of financial institutions, they're so banks those to -- -- also the well, also Caribbean relationships Mexico Spain, us. principals us, in the So all

are point largely And Europe, capital where And whom, not all-inclusive yet at understand we a institutional yes, are is doing think In Americas to institutions. inflection that's by now entering see it. an capital, in as volume It institutionalized reason. they there's Europe. and are their So we're in market. you including simple the how market who's We what in resorts the strategies market. pretty same the what a the owned in about are PE

higher, the cash The very is margins, proven model It's yields flow model investors. free more durability predictable, the are very, attractive. and higher the been has for -- of and higher so

and has be inbound the into of level to institutional capital there from continues been interest there increasing So market. an elevated

been feel point. like have aggregate we traded inflection $X -- We've that institutional States. United that billion of had few just that assets So from already hands probably to at involved worth that transactions we are capital have maybe the under a that

And so we to ice and they're feel optimistic more investment forward, attractive. so the been of kinds has like that going we'll we're speak, assets broken, these so in see and because more

Bennett Rose

some I financing the piece? seller fourth think, the And Okay. did you in quarter.

Mark Hoplamazian

Yes.

really I sales think, it's to point. to this potential asset related premature at for us comment anything on

Operator

next from Our question comes Stanley. Grambling Stephen from Morgan

Stephen Grambling

opportunity And to this incremental on guess, I we about in how an spend drive think the card. signed? referenced Co-Brand increase fees from when think an you credit XX% last I going I'm curious, was forward? do contract that

Mark Hoplamazian

in X-year and X-year that 'XX, renewed a contract we a So or it's contract arrangement.

actively we alternatives looking in engaged So as at forward. we are look

Stephen Grambling

set partner? reason in of terms you versus any in terms how towards what there of beneficial get is characterizing business XXXX kind is Co-Brand a think about would up primary And or typically now how of the those

Mark Hoplamazian

over Yes. members things. the couple of A the number X doubled last One, of we've years.

don't data highest of we cardholder the Second, prove are that credit we told, ourselves co-branded per we any spend card. hotel have to this have

is level worth. net base income base Third, that our household of higher is customer a a at and household customer

that spenders. So it -- stands a it's durable more are they reason

that now -- now. that's was we underway large when twice member we attractive So did I as as base right very have it think, deal a our is

that would portfolio, to. And we many that that, like meaning in we've more continued differentiation to of our in mentioned add and I and hotels anyone our brands significantly have on clientele should to luxury And our remarks the and customer growth quarter terms in highest lost for our the our luxury lifestyle year, prepared my the the RevPAR of aspirational had great segments to base. be and not travel that resort in

and all is network So future be should membership part That's the is why any we of and higher the of that network effect. make. I card that of arrangement in effect activity reflected think

Operator

Our comes Group. Beynon from Macquarie next Chad from question

Chad Beynon

of stats noted dive in growth which some the more ASPAC markets. unit delays wanted XX% the the is the which than your to region, Mark, I terms in deeper, half the that net of But you of related the other first year. of particularly into of had pipeline, confidence, in parts some to has little bit mainly a developed

And of more is forward, fair just importantly, look say growth out in world? highlights have growth? So as openings that net that unit the that kind more those then, construction and with and have that we the of you're confidence construction starts to seeing you that 'XX you growth the beyond up as in part unit it confidence the gives or net better picked look we starts

Mark Hoplamazian

Yes.

construction I -- So quarter-over-quarter. construction that's think, about under the of that's is flat pipeline under portfolio proportion

steady that this see of so a maintenance that maintain itself, And course of at And to we see expect year. over the if least not level. improve we

market I think believing. -- first One that particular in in is Studios have is The the two things that first are seeing opened our happening. Hyatt will quarter. we

there's of first one believe ground. so some out come will the element And we of out that of momentum the being

reuse time. those upper adaptive those in extremely and of been And periods has very are The happen UrCove that's basically, that activity our and mid-scale high, short Chinese brand. conversions

XX agreement the hotel it So months from lease not takes the that to time time or X from the lessee. the is roughly a lease is a open management signed, from we're scratch. that the signed is signed, and But

to cycle high throughput and short-term time. a be that So tends

in with Asia this optimistic to we're actually respect point we're at for And openings. seeing what

and a about of board, openings So and headed organic we're maybe we promoting course across and more balanced And better year. it. think realizing more towards to that approach more I think, this feel I constructive the the growth over

Chad Beynon

in 'XX, to portfolio we provided owned Okay. I release, Joan, in range versus the us? margins for the the But portfolio, impact. well. margins in on from should previously think standpoint the revenues secondly, And are here then we the about outlook see or an that of mentioned for as the 'XX be as you and you've outside anything just EBITDA the owned expect change can the of million $XX

Joan Bottarini

returns costs that that fact to we've improvements preserving that expectations the to towards from and sure guests. controllable eye look we're has an with where managing to efforts our guiding yielded service consistently productivity with we the can respect customer undertaken been and We've making great

the positive you And be with are see the asset year-over-year. has we managing margins is sales. structurally portfolio to changed So what incrementally

continue with So least got to is flat and some that we've insurance despite we're markets. to fact wage facing going margins our in costs that respect expenses to that inflation expectation some some forward we deliver non-controllable the at incremental

expand. expect that well managing we're margins will continue So our and to that

Mark Hoplamazian

add to that really just we quarter deck into for the top Page could and should note in the below be about and the think broken I XXXX, adjusted demonstrates fourth XX. quarter. earnings a down excluding I investor XX sales the provide if pages needed this, table put two XX, taking sorry, the in asset all growth are make which of EBITDA Pages or Page understand then by clarity, the information account of EBITDA without quickly, the increase adjusted XX it's asset -- to Page of We did And release at our sales. X

that I picking up So terms have there in been know misses may some the information. of

just I clarify wanted that. So to

Joan Bottarini

we've assets your the with were the that benefit, models not picking associated -- distribution because Yes. slides EBITDA is or Those those that are presented EBITDA the dispositions some dispositions. the lost for extra and up observed of resulting

Operator

Our next from from Barclays. question Brandt comes Montour

Brandt Montour

just could everyone's how they your China? on of So given downbeat on especially sense IMF China more it on peers and when had of you're us how in other IMF portfolio I IMF. come you to was comes little uncertainty, of given a -- things is have sort you everyone's or had of comp outlook some could year that -- gave this XQ different one but little feeling and the give obviously, some was going your of uncertainty tough sort if at the if, Joan, China kind it, an also wondering about in a least

Joan Bottarini

had Asia healthy we I that across bit tougher providing, the expect XXXX. in And Pacific, to and little growth markets, international that some Greater we we're look XXXX comps pointed it's -- in outlook growth out But a still expecting, RevPAR The strong we're for markets. is China. what excluding considering all as healthy we've Sure.

and from fee we contribution growth, those this strong deliver expect incentive strong So year. markets a markets those

in step you you acquisitions and quarter. question, is range, outlook the our to it's -- on back a taking your and you a maybe made of two, midpoint fee it of when fourth a at little range just look that the the that When related than growth consider we healthy X/X less

the growth. net of RevPAR digits in related fees healthy and a high single the still to rate at core it's our growth rooms So

other seeing So we're franchise across expect. base board across that line fees, and items, XXXX our the all we growth healthy in of incentive,

results rooms And in of is couple that points of rooms little to Venetian. seeing algo, we're I'd just our deliver. out our And in the a to is fees basis of days. the And one of great growth. And algo, thing earning particular, business point XX fee Venetian the we're delivering out net a we that coming it's property, net growth dilutive but early on that just our hundred part is the that really were last business

expect we XXXX the contributing fees future. will those that be in grow to continue So into will and

we really into growth fee overall, the feel XXXX. So about good

Brandt Montour

That's helpful. really

fees and sure will those Just Correct? flow franchise bucket. through understand I other make Venetian to the

Joan Bottarini

That is correct.

Operator

from from Our Redburn Alex next comes question Brignall Atlantic.

Alex Brignall

likely my room relatively I component a the It the to should dilutive guess, of on Venetian outer point to the value. are large ties into and is it that the guidance And last how your growth contribution think years, that you expectations on underlying incremental we point really the deals we contribution how I if whether Obviously, that The look within region be for as fees you've to growth. brand is wider obviously taken made relates to the they and of room [indiscernible] has about that's question wonder, into given.

Joan Bottarini

Sure.

there's -- we a look single every requires on deal at deal -- when that individual or contribute. they every per basis. the portfolio obviously portfolio But and we deals the single we look deals that underwrite fees room new asset, So across individual those

of per our got and And so of industry, our overall, the assets, the of our fees quality frankly, we've room performance. across and contracts. quality the because higher

we yes, fees per provide. the that amount has the So out, on that Venetian point based it's are contract The important of contributing to business

per So it's lower room. little fees our overall a bit than

the stabilized that transaction per then out a we -- that And that our I'd another big room deal basis, above did, are averages. has point the fees Bahia Principe on

all room are overall deals, we're per still value So at as sure constantly out, our quality the we for delivering look portfolio at organic growth. that portfolio to fees we looking or this whether averages make and different inorganic

with for our attractive unique members an I deal and Hyatt sales us. but And system and customers in World and group our because Vegas, is interest say, Venetian both Rio deal to engaging our and the would of [indiscernible] providing corporate it's them, one great is exciting for The a is

Alex Brignall

as guess I fantastic. might I That's quick follow-up, ask. a

'XX may ex the of maths In you that. I similar acceleration on these if growth, have relative 'XX. looks trajectory, bolt-ons it of underlying of unit an for terms basis just in comment just terrible relatively on the at on some made underlying signings kind look an done I to

So have. excuse me please if I

outer accelerating, should grow would about in exclusive -- you've incremental and way what kind of of you net anything be think the that the would we the I unit then growth about years terms this the more would bolt ex Should number growth underlying of be bolt-ons after it done for think on? that bolt-ons? fair Or that underlying it to how So one?

Mark Hoplamazian

We and latter. a brand maintain we're signings I in this further momentum. We've seeing -- happening really, new have more lot that year. got introductions is, what's drive upper think will signings The mid-scale

but of year to will year of for expand. was pushed. So to pipeline continue strong, continue I that openings pipeline, the Last low. was signings out base to unusual Part unusually of out also that think, our be is an going the -- hotels got be the openings

going it we're So that will the both add, near more I will we have, the be increasingly more the think, top-up, at described portfolio It from I increment mix And or come think, visibility also a the we're term change. where transactions. as and organic. see confidence you point in the to

Operator

Baird. from Bellisario from comes question Michael next Our

Michael Bellisario

morning, Good you. everyone. Thank

is for the are EBITDA brand Just there on for outlook you alternative uncertainty, then, or What this outcomes. quick opportunity And trying follow-up impact to the you Just think just FX. about assuming 'XX? on also in Lindner there, to a an maybe estate? potential by real invest your

Mark Hoplamazian

not the family the working and control are tied that it. to the in closely of very one, on I are but On themselves. we first We're there think, situation, options many will that advisers reveal are members

to identifying with realm estate question, can you to imagine, in bespoke And of to but and what a allow the FX partners, yes, you structures it inventive are also, So to in lot are possibility. great we I part, described a that history And but of respect play say, real us Joan. leave that remains would I'll seen. be have will the

Joan Bottarini

really to our fee impact, to outlook. related of respect to Mexico expected into outlook our as and there really to but look and out at expectations this little an FX overall is XXXX we the for bit positive our expectations the not call incrementally our impact in Nothing Michael, is is or us fee world, point. it a material other at with results markets FX around

Operator

comes question Evercore next Our from Pfennigwerth ISI. from Duane

Unknown Analyst

on is for Duane. This Peter

was mentioned your you expectations into X% for could quarter. up was some they expand in strong know demand looks XXXX? each the BT of the segments but fourth So just shift XX% there, as on and noise there's I flat. you group to guide Leisure for calendar those well, X% how RevPAR broad in fit

Joan Bottarini

right. Absolutely Sure.

levels remarks. ended from with all strong. all in prepared we look future. And the You into going of as year for been has record the We those production ahead, group picked periods -- up our really metrics

from a demand to be we're looking position X% in and strong rate at coming And which both really is XXXX, So a group U.S. in that's pace the occupancy. in.

-- that continues healthy. we're So growth be to is --

start. going into we're to transient side, of quarter. On the has And start a off momentum as quarter. into the was business going well as well the January leisure seeing strong in good been the very the first year

-- being sustaining. healthy, business of a would continuing momentum with I continuation group and the trends overall, really say, being So leisure it's

Mark Hoplamazian

just our XXXX. Yes. seeing to continue higher is is point part out why at pace of things useful like growing into we Corporate additionally. what also than looks that what much rate which association, might but has and that true XXXX, in we're And outlook driven, expand. rate I two group would that's been and realized rate a be for

BT also And up secondly, and side we we've double I'm mean, and Pharma digits. transient the balanced. also that & sectors side, have & business in over are really to I are Consulting see got Finance that the in Banking the XXXX, XX% relatively versus IT but on encouraged the XXXX two

like flat it's our off well also spread is is So travel else actually and are are everything and the or one down. the It's relatively sectors, sectors spenders. not doors biggest blowing sector top they and these

BT, road is want the back the so to really breadth our really large in to you core market, put very So stock is market see our of healthy speak, which if measure. to in terms, significant corporate exciting clientele, base the it on of and

Operator

Our next question comes from from Richard Clarke Bernstein.

Richard Clarke

would guess, into billion Markets be $X.X I EBITDA, said in Day and your of XXXX, cash million free translate XXXX, $XXX of you'd in that doing flow. you Capital at

You bit of EBITDA the nearly of a free lost but due you to million that disposals, $XXX cash flow. lost obviously

can we Just that number a trying that $XXX that XXXX? to maybe expect Is understand back? coming bridge. is And in million number

Joan Bottarini

There's XXXX. where a we which beyond now is sales we anticipated what out we Richard. you asset And are what presented Day of accelerated and very a Investor for one, between drivers XXXX. in pointed Thanks, we couple at back important

big So of the a change. driver that's

provided. wide the pretty RevPAR provided X%. we emerging to is Clearly, and driver we the that were ranges X% from pandemic, we ranges, Another

the than Day, the 'XX XXXX in compounded while growth had X lower range. since was of better seeing that provided end rate we're is the we last and we've a so at in, XXXX, towards for And where years Investor bit little come 'XX what

meaningful are two those So the of components difference.

capital back with than And we really bit feel would our more out then, the debt to I debt about a expense there's our at point a Investor couple taken I just anticipated little expectations, Day. good markets. execution we've that in respect on interest

getting we're our bit rates. little we So than a higher good but And -- had new anticipated. debt at very what

our investments in business. coming important at quite Day significantly, technology, we down some our both major reasons. And anticipated towards in CapEx not had for the two some incremental our strategic while business management then We're Investor finally, that it's is ALGV levels providing at and

and So investments. through making that's some of assets bit some -- position then, investments strategic a those ROI portfolio CapEx into we're building there's work little And a systems of related to couple projects. own to really our

So lower our those the are EBITDA, little CapEx. anticipate sold the the be increasing. that RevPAR free will a which higher bridge four items you, interest do expectations, that higher We cash expense, is flow a little

over Our XX%. asset-light is mix in 'XX

going number and it's XXXX. to So this we And proceed to the continue respect to grow. year through as at you specific we'll look keep posted with

Mark Hoplamazian

about incremental to just major provided investments would thing owners. support sale. our other the point third-party in I one the designed previously REIT and also assets It's Joan with We've And for on made for some return terms. maximize in that on some to owned potential reported the some for quick investment optimize of Yes. relation really on enhanced -- assets. agreement had our in management that some of we add existing

flow this not are, not issue a but on cash So those are impact short It's think, term, things a the that continuous. having I run rate our a year.

Operator

come will from from Patrick Securities. Scholes Our last question Truist

Charles Scholes

little might what, other high-level have wonder RevPAR, a from can a prepared your the sales. about in missed I others, view, EBITDA at asset fourth could about drove It Can have expenses. timing G&A of talk yet expectations, few above but numbers like package heard my revenues guidance. thing maybe and least been from miss? the of Most and looks which just have the earnings distribution the Hurricane been guide, KPIs, questions I Milton in you and step been or just the some back and versus hurricane talk Only remarks of if RevPAR bit quarter. asked, we my Quite

Joan Bottarini

Sure, Patrick.

quarter. year when bad outlook 'XX When had Bahia relation modest we reserves G&A. our got that you G&A You to growth we for I the rate we consider very the some in in hit a some and G&A, would highlight, and fourth just points. on onetime for next standard decided debt consider adding you take inflation G&A to Principe costs,

in are the of to onetime the So that end at those choice we fourth XXXX make the decided with amounts quarter.

that lower And distribution yes, lower. was that. the bookings business was we events saw. to bit contributing was then, onetime And That hurricane the partially a from some

ALG little in chain of distribution anticipated. the been has package RevPAR, lower a had business bit were Our net than business but the lower we serves that Vacations some scales healthy

demand the our quarter really because the frankly those were and ahead we expectations was a EBITDA the seeing major growth had result we're globally. two of miss, that of terrific So strong drivers that fee of really in as

Charles Scholes

has ALG follow I trend on that up ALG this at Vacation Vacation just in all bookings. so Is what year with through to bookings? your And this Okay. been going to the flow the numbers? far year those

Joan Bottarini

Yes, it's EBITDA I XXXX would our part better, modeling of as anticipate purposes, segment. incrementally positive but little a bit in outlook for Distribution the to flat for

Mark Hoplamazian

for to ahead. to our of time and your you hotels look all the your I Hyatt forward care a our great you power thank and wish can welcoming We in this interest experience you appreciate resorts, you So day firsthand. so morning.

Operator

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

disconnect. all may You

Hyatt Hotels (H) 13 Feb 252024 Q4 Earnings call transcript