Hyatt Reports Second Quarter 2024 Results

CHICAGO (August 6, 2024) – Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today reported second quarter 2024 results. Highlights include:

• Comparable system-wide hotels RevPAR increased 4.7% compared to the same period in 2023
• Comparable system-wide all-inclusive resorts Net Package RevPAR increased 3.0% compared to the same period in 2023
• Net Rooms Growth was approximately 4.6%
• Net Income was $359 million and Adjusted Net Income was $158 million
• Diluted EPS was $3.46 and Adjusted Diluted EPS was $1.53
• Adjusted EBITDA¹ was $307 million
• Pipeline of executed management or franchise contracts was approximately 130,000 rooms
• Repurchased approximately 907 thousand shares of Class A common stock for $134 million
• Full year comparable system-wide hotels RevPAR is projected to increase 3.0% to 4.0% on a constant currency basis compared to full year 2023
• Full year Net Income is projected between $1,055 million and $1,115 million
• Full year Adjusted EBITDA¹ is projected between $1,135 million and $1,175 million
• Full year Capital Returns to Shareholders is projected between $800 million and $850 million

¹ During the quarter ended June 30, 2024, the Company revised its definition of Adjusted EBITDA to exclude transaction and integration costs and recast prior period results to provide comparability. Refer to page A-5 of the schedules for additional detail.

Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, “We posted solid second quarter results demonstrating our differentiated positioning and continued momentum. System-wide RevPAR grew by 4.7% and net rooms growth was 4.6%, generating record gross fee revenue of $275 million in the quarter. Our pipeline reached a new record of 130,000 rooms, up 9% year-over-year, reflecting strong developer interest in our brands. We saw continued growth of the World of Hyatt loyalty program, with membership increasing by 21% year-over-year to a record 48 million members. These achievements demonstrated the strength of our asset-light earnings model, which is designed to deliver strong free cash flow and enhance shareholder value.”

Segment Results and Highlights

¹ Results for the three months ended June 30, 2023 have been recast for comparability as a result of the Company’s revised definition of Adjusted EBITDA. Refer to page A-5 of the schedules for additional detail.

• Management and franchising: Second quarter results reflected strong performance in business transient and group travel. In the United States, RevPAR increased over 2% from strong group and business travel while leisure travel was negatively impacted by the timing of Easter, renovations at large resort properties, and continued impact from the 2023 Maui wildfires. Travel within Europe remains strong driven by inbound travel from the United States and large one-time events. Greater China was impacted by strong outbound travel from Greater China to other markets within Asia, including Japan and South Korea. In Asia Pacific excluding Greater China, RevPAR increased approximately 18% during the quarter.
• Owned and leased: Adjusted EBITDA in the second quarter increased 9% compared to the second quarter of 2023, when adjusted for the net impact of transactions. Comparable margins increased 110 bps compared to the second quarter of 2023, as revenue growth outpaced expenses.
• Distribution: Adjusted EBITDA in the second quarter increased $9 million compared to the second quarter of 2023. Excluding Unlimited Vacation Club, Adjusted EBITDA was below 2023 by approximately $5 million, consistent with the expectations communicated previously because of ALG Vacations lapping a strong second quarter last year.

Openings and Development

In the second quarter, 18 new hotels (or 3,251 rooms) joined Hyatt’s portfolio. Notable openings included Park Hyatt Changsha, Maison Métier, The Legend Paracas Resort, the first Destination by Hyatt property in Peru, and Hyatt Vivid Grand Island, the first open Hyatt Vivid Hotels & Resorts property. Additionally, the first Caption by Hyatt properties outside the United States opened in the quarter: Caption by Hyatt Namba Osaka and Caption by Hyatt Zhongshan Park Shanghai. The first Hyatt Centric in Shanghai, China, Hyatt Centric Zhongshan Park Shanghai, also opened in the quarter.

As of June 30, 2024, the Company had a pipeline of executed management or franchise contracts for approximately 670 hotels (approximately 130,000 rooms).

Transactions and Capital Strategy

In addition to the previously announced sales of Park Hyatt Zurich on April 4, 2024, Hyatt Regency San Antonio Riverwalk on April 23, 2024, and Hyatt Regency Green Bay on May 1, 2024, the Company is sharing the following updates:

• Acquired the me and all hotels brand from Lindner Hotels AG on June 28, 2024. There are six me and all hotels with over 1,000 rooms currently open in Germany which joined Hyatt through the strategic collaboration with Lindner Hotels AG in 2022. The me and all hotels brand has a healthy pipeline with an additional 1,000 rooms in the executed pipeline and more development deals in various stages of negotiation.
• Expects to close on the sale of an asset that is under a purchase and sale agreement by the end of August 2024, which would complete the Company’s $2.0 billion asset sell-down commitment.

As of June 30, 2024, the Company has realized $1.5 billion of gross proceeds from the net disposition of real estate at a 13.3x multiple and remains committed to realizing $2.0 billion of gross proceeds from the sale of real estate, net of acquisitions, by the end of 2024 as part of its expanded asset disposition commitment announced in August 2021.

Balance Sheet and Liquidity

As of June 30, 2024, the Company reported the following:

• Total debt of $3,885 million.
• Pro rata share of unconsolidated hospitality venture debt of $451 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
• Total liquidity of approximately $3.5 billion with $1,957 million of cash and cash equivalents and short-term investments, and borrowing availability of $1,496 million under Hyatt’s revolving credit facility, net of letters of credit outstanding.

During the second quarter, the Company repurchased a total of 906,875 shares of Class A common stock for approximately $134 million. As of June 30, 2024, the Company has approximately $1.6 billion remaining under the share repurchase authorization.

On June 3, 2024, the Company issued $450 million of 5.250% senior notes due 2029 at an issue price of 99.496% and $350 million of 5.500% senior notes due 2034 at an issue price of 98.860%. The Company received approximately $786 million of net proceeds, after deducting underwriting discounts and other offering expenses. The Company invested the net proceeds in marketable securities and intends to use the net proceeds to repay the outstanding balance on the $750 million of 1.800% senior notes maturing on October 1, 2024, at or prior to maturity.

The Company’s board of directors has declared a cash dividend of $0.15 per share for the third quarter of 2024. The dividend is payable on September 10, 2024 to Class A and Class B stockholders of record as of August 27, 2024.

2024 Outlook

The Company is providing the following outlook for the 2024 fiscal year:

¹ RevPAR is based on constant currency whereby previous periods are translated based on the current period exchange rate. RevPAR percentage for 2024 vs. 2023 is based on comparable hotels.

² Refer to the tables on schedule A-9 for a reconciliation of estimated Net Income attributable to Hyatt Hotels Corporation to Adjusted EBITDA, G&A expenses to Adjusted G&A Expenses, and net cash provided by operating activities to Free Cash Flow.

³ During the quarter ended June 30, 2024, the Company revised its definition of Adjusted EBITDA to exclude transaction and integration costs and recast prior-period results to provide comparability. Adjusted EBITDA outlook reflects the removal of approximately $10 million relating to this definition revision. Refer to page A-5 of the schedules for additional detail.

⁴ The Company expects to return capital to shareholders through a combination of cash dividends on its common stock and share repurchases.

No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2024 Outlook. The Company’s 2024 Outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that Hyatt will achieve these results.

Refer to the table on page A-7 of the schedules for a summary of special items impacting Adjusted Net Income and Adjusted Diluted EPS for the three months ended June 30, 2024.

Note: All RevPAR and ADR percentage changes are in constant dollars. All Net Package RevPAR and Net Package ADR percentage changes are in reported dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page A-5.