Hyatt Reports Third Quarter 2024 Results

Hyatt Hotels Corporation has reported third-quarter 2024 results. Highlights include:

• Comparable system-wide hotels RevPAR increased 3.0% compared to the same period in 2023

• Comparable system-wide all-inclusive resorts Net Package RevPAR decreased 0.9% compared to the same period in 2023

• Net Rooms Growth was approximately 4.3%

• Net Income was $471 million and Adjusted Net Income was $96 million

• Diluted EPS was $4.63 and Adjusted Diluted EPS was $0.94

• Adjusted EBITDA was $275 million

• Pipeline of executed management or franchise contracts was approximately 135,000 rooms

• Repurchased approximately 4.5 million shares of Class A and Class B common stock for an aggregate purchase price of $657 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 $1,400 million and $1,450 million

• Full year Adjusted EBITDA is projected between $1,100 million and $1,120 million

• Full year Capital Returns to Shareholders is projected to be approximately $1,250 million

CEO STATEMENT

Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "We reported solid third-quarter results, with gross fee revenues reaching $268 million. Our pipeline reached a new record of approximately 135,000 rooms, increasing 10% year-over-year. World of Hyatt membership expanded to a record of 51 million members, growing a remarkable 22% year-over-year. Our operating results and capital allocation strategy, including the completion of our 2021 asset-disposition commitment, acquisition of Standard International, and planned joint venture transaction to manage Bahia Principe branded hotels and resorts, demonstrate the strength of our asset-light earnings model leading to the return of over $1.2 billion to shareholders through share repurchases and dividends so far this year."

Segment Results and Highlights

• Management and franchising: Results reflected strong business transient and group travel demand during the third quarter. In the United States, performance was driven by business transient and group travel while leisure was impacted by renovations, weather, and increased international outbound to Europe and Asia Pacific (excluding Greater China). In Europe, RevPAR increased 15% during the period, bolstered by the Summer Olympics in Paris. Greater China continued to experience meaningful international outbound travel to other markets within Asia, with RevPAR in Asia Pacific (excluding Greater China) up 10% during the quarter.

• Owned and leased: Adjusted EBITDA in the third quarter increased 13% compared to the third quarter of 2023, when adjusted for the net impact of transactions. Comparable margins increased 210 bps compared to the third quarter of 2023, led by strong ADR from the Democratic National Convention in Chicago and the Summer Olympics in Paris.

• Distribution: Results for the third quarter reflect more seasonal booking patterns compared to last year and the impact of Hurricanes Beryl and Helene, partially offset by Mr & Mrs Smith commissions and certain ALG Vacations travel credits. Excluding the impact of the UVC Transaction, Adjusted EBITDA decreased $5 million.

Openings and Development

In the third quarter, 16 new hotels (or 2,589 rooms) joined Hyatt's portfolio. Notable openings included Alila Shanghai, Brunfels Hotel, part of The Unbound Collection by Hyatt, Grand Hyatt Kunming, and Park Hyatt Marrakech. During the quarter, the Company announced its exclusive alliance with Under Canvas with 13 outdoor resorts, including ULUM Moab.

As of September 30, 2024, the Company had a pipeline of executed management or franchise contracts for approximately 690 hotels (approximately 135,000 rooms).

Transactions and Capital Strategy

As a result of the previously announced sale of Hyatt Regency Orlando and an adjacent undeveloped land parcel on August 16, 2024, the Company exceeded its $2 billion asset-disposition commitment announced in August 2021. The Company has realized $2.6 billion of gross proceeds, net of acquisitions, at a 13.3x multiple over the three-year period and expects to exceed 80% asset-light earnings mix in 2025.

Additionally, as previously announced, the Company closed on acquiring Standard International on October 1, 2024, for approximately $150 million with up to an additional $185 million of contingent consideration.

On October 28, 2024, the Company announced plans to enter into a long-term, asset-light joint venture with Grupo Piñero, investing €359 million at closing for 50% of the joint venture plus an additional €60 million when certain conditions are met (the "Bahia Principe Transaction"). This transaction is expected to close in the coming months subject to customary closing conditions, and upon closing, will add 23 all-inclusive resorts (or approximately 12,000 rooms) to Hyatt's managed portfolio.

Balance Sheet and Liquidity

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

• Total debt of $3,142 million.

• Pro rata share of unconsolidated hospitality venture debt of $454 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 $2.6 billion with $1,134 million of cash and cash equivalents and short-term investments, and borrowing availability of $1,497 million under Hyatt's revolving credit facility, net of letters of credit outstanding.

• During the quarter, the Company repaid the outstanding balance on the $750 million of 1.800% senior notes due 2024 at maturity for approximately $753 million, inclusive of $7 million of accrued interest.

During the third quarter, the Company repurchased a total of 2,858,280 shares of Class A common stock for approximately $407 million and a total of 1,642,251 shares of Class B common stock for approximately $250 million. As of September 30, 2024, the Company has approximately $982 million remaining under the share repurchase authorization.

The Company's board of directors has declared a cash dividend of $0.15 per share for the fourth quarter of 2024. The dividend is payable on December 6, 2024 to Class A and Class B stockholders of record as of November 22, 2024.

2024 Outlook

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

1. RevPAR is based on constant currency, whereby previous periods are translated based on the current period's exchange rate. The RevPAR percentage for 2024 vs. 2023 is based on comparable hotels.
2. Refer to the tables on schedule A-9 to reconcile 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 nine months ended September 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 $26 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 cash dividends on its common stock and share repurchases.

No disposition or acquisition activity beyond what has been completed as of this release has been included in the 2024 Outlook other than as noted concerning Net Rooms Growth expectations related to the timing of the Bahia Principe Transaction closing. The Company's 2024 Outlook is based on several assumptions that are subject to change, many of which are outside the control of the Company. The Company's expectations may change if actual results vary from these assumptions. There can be no assurance that Hyatt will achieve these results.