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Investor Presentation February 2017
HYATT / Investor Presentation, February 2017
Forward-LookingStatementsForward-LookingStatementsinthispresenta5on,whicharenothistoricalfacts,areforward-lookingstatementswithinthemeaningofthePrivateSecuri5esLi5ga5onReformActof1995.Thesestatementsincludestatementsaboutourplans,strategies,outlook,occupancy,ADRandgrowthtrends,marketshare,thenumberofproper5esweexpecttoopeninthefuture, our expected adjusted SG&A expense, our es5mated comparable systemwide RevPAR growth,maintenance and enhancement to exis5ng proper5es capital expenditures,investments innewproper5es capital expenditures, deprecia5onandamor5za5onexpenseand interest expensees5mates, financial performance,prospectsor futureevents andinvolveknownandunknownrisksthataredifficulttopredict.Asaresult,ouractualresults,performanceorachievementsmaydiffermateriallyfromthoseexpressedorimpliedbythese forward-looking statements. In some cases, you can iden5fy forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek,""an5cipate,""believe,""es5mate,""predict,""poten5al,""con5nue,""likely,""will,""would"andvaria5onsofthesetermsandsimilarexpressions,orthenega5veofthesetermsorsimilar expressions. Such forward-looking statements are necessarily based upon es5mates and assump5ons that, while considered reasonable by us and our management, areinherentlyuncertain.Factorsthatmaycauseactualresultstodiffermateriallyfromcurrentexpecta5onsinclude,amongothers,generaleconomicuncertaintyinkeyglobalmarketsandaworseningofglobaleconomiccondi5onsorlowlevelsofeconomicgrowth;therateandthepaceofeconomicrecoveryfollowingeconomicdownturns;levelsofspendinginbusinessandleisuresegmentsaswellasconsumerconfidence;declinesinoccupancyandaveragedailyrate;limitedvisibilitywithrespecttofuturebookings;lossofkeypersonnel;hos5li5es,orfearofhos5li5es, includingfutureterroristaRacks, thataffecttravel; travel-relatedaccidents;naturalorman-madedisasterssuchasearthquakes,tsunamis, tornadoes,hurricanes,floods,oilspills,nuclear incidentsandglobaloutbreaksofpandemicsorcontagiousdiseasesorfearofsuchoutbreaks;ourabilitytosuccessfullyachievecertain levelsofopera5ngprofitsathotelsthathaveperformanceguaranteesinfavorofourthird-partyowners;theimpactofhotelrenova5ons;risksassociatedwithourcapitalalloca5onplansandcommonstockrepurchaseprogram,includingtheriskthatourcommonstockrepurchaseprogramcouldincreasevola5lityandfailtoenhancestockholdervalue;theseasonalandcyclicalnatureof the real estate and hospitality businesses; changes in distribu5on arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of ourcustomers, includingtheentryofnewcompe5tors inthe lodgingbusiness;rela5onshipswithcolleaguesand laborunionsandchanges in labor laws;financialcondi5onof,andourrela5onshipswith,third-partypropertyowners,franchiseesandhospitalityventurepartners;thepossibleinabilityofthird-partyowners,franchiseesordevelopmentpartnerstoaccesscapital necessary to fund current opera5ons or implement our plans for growth; risks associatedwith poten5al acquisi5ons and disposi5ons and the introduc5on of new brandconcepts; the 5ming of acquisi5ons and disposi5ons; failure to successfully complete proposed transac5ons (including the failure to sa5sfy closing condi5ons or obtain requiredapprovals);unforeseentermina5onsofourmanagementorfranchiseagreements;changes infederal,state, localorforeigntax law; increases in interestratesandopera5ngcosts;foreignexchangeratefluctua5onsorcurrencyrestructurings;lackofacceptanceofnewbrandsorinnova5on;ourabilitytosuccessfullyimplementournewgloballoyaltyprogram,andthelevelofacceptanceofthenewprogrambyourguests;generalvola5lityofthecapitalmarketsandourabilitytoaccesssuchmarkets;changesinthecompe55veenvironmentinourindustry,includingasaresultofindustryconsolida5on,andthemarketswhereweoperate;cyberincidentsandinforma5ontechnologyfailures;outcomesoflegaloradministra5veproceedings;viola5onsofregula5onsorlawsrelatedtoourfranchisingbusiness;andotherrisksdiscussedintheCompany'sfilingswiththeSEC,includingourannualreportonForm10-K,whichfilingsareavailablefromtheSEC.Wecau5onyounottoplaceunduerelianceonanyforward-lookingstatements,whicharemadeonlyasofthedateofthispresenta5on.Wedonotundertakeor assumeanyobliga5on toupdatepublicly anyof these forward-looking statements to reflect actual results, new informa5onor futureevents, changes inassump5onsorchangesinotherfactorsaffec5ngforward-lookingstatements,excepttotheextentrequiredbyapplicablelaw.Ifweupdateoneormoreforward-lookingstatements,noinferenceshouldbedrawnthatwewillmakeaddi5onalupdateswithrespecttothoseorotherforward-lookingstatements.Non-GAAPFinancialMeasuresThispresenta5on includesreferencestocertainfinancialmeasures,each iden5fiedwiththesymbol“†”, thatarenotcalculatedorpresented inaccordancewithgenerallyacceptedaccoun5ngprinciples intheUnitedStates (“GAAP”).Thesenon-GAAPfinancialmeasureshave important limita5onsandshouldnotbeconsidered in isola5onorasasubs5tute formeasures of the Company’s financial performance prepared in accordancewith GAAP. In addi5on, these non-GAAP financialmeasures, as presented,may not be comparable tosimilarly 5tledmeasures of other companies due to varyingmethods of calcula5ons. For howwedefine the non-GAAPfinancialmeasures and a reconcilia5onof each non-GAAPfinancialmeasuretothemostdirectlycomparableGAAPmeasure,pleaserefertotheAppendixattheendofthispresenta5on.
Disclaimer
2
HYATT / Investor Presentation, February 2017
Key Investment Considerations
• Globalhospitalitycompanywith60-yearhistory
• Owner,managerandfranchiser,focusedonthe
high-endtraveler
• Growthstrategybasedoncustomerfocus,
experiencestodrivepreferenceandmul5plelevers
ofgrowth
• Mul5pleleversofgrowth:
— Porgolioofbrands
— Newhoteldevelopment
— ExtendtheHyaRbrandbeyondtradi5onal
hotelstays
• Strongbalancesheetandhistoryofreturningcapitaltoshareholders
3
HYATT / Investor Presentation, February 2017
Hyatt at a Glance
56 663HOTELS
60YEARHISTORY
100,000COLLEAGUES
COUNTRIES
CONTINENTS6across
4
HYATT / Investor Presentation, February 2017
Twelve Brands – All Focused on High End Travelers
AsofDecember31,2016.ChainscaledefinedbySTR.
LUXURY
20%
UPPERUPSCALE
50%
UPSCALE
27%
% of Systemwide Rooms
OTHER
3%
5
HYATT / Investor Presentation, February 2017
$336 $327
$248 $227
$177 $174 $149 $128
Strong and Differentiated Rate Profile Across Brands
AverageDailyRate(ADR)
TwelvemonthsendedDecember31,2016forcomparableloca5ons.
6
HYATT / Investor Presentation, February 2017
92,021 52%
20,595 12%
3,584 2%
10,501 6%
50,417 28%
110,589 64%
11,153 6%
10,450 6%
29,781 17%
11,561 7%
Diverse Portfolio with Strong Base of Owned, Managed and Franchised Properties
TotalRoomPorIolioMix RoomsbyRegion(1)
Managed
Vacation Ownership & Residential
Unconsolidated Hospitality Ventures
Franchised
Owned & Leased
Note:RoomcountsasofDecember31,2016.(1)Excludesvaca5onownershipandresiden5alunits.
ASPAC
EAME
Other Americas
Southwest Asia
177,118rooms/698properTes
United States
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HYATT / Investor Presentation, February 2017
Owned and Leased Hotels Generate Over Half of Adjusted EBITDA†
Owned & Leased56%
Americas34%
EAME / SWA4%
ASPAC6%
AdjustedEBITDA†bySegment
TwelvemonthsendedDecember31,2016.Excludescorporateandother.
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HYATT / Investor Presentation, February 2017
Margin and Earnings Progression
Owned and Leased Hotels Operating Margin (1)
Adjusted EBITDA† (Millions)
(1)Ownedandleasedhotelsopera5ngmarginisdefinedasthemarginonownedandleasedhotelsresultscalculatedasthedifferencebetweenownedandleasedhotelsrevenueandownedandleasedhotelsexpenseasreflectedonourconsolidatedstatementsofincome(loss)dividedbyownedandleasedhotelsrevenue.
-$43
$207 $344
$124 $204
FY 2009 FY 2013 FY 2014 FY 2015 FY 2016
GAAP Net Income (Millions)
9
$425 $706 $777 $750 $785
FY 2009 FY 2013 FY 2014 FY2015 FY 2016
18% 24% 25% 25% 24%
FY 2009 FY 2013 FY 2014 FY 2015 FY 2016
HYATT / Investor Presentation, February 2017
GrandHyaRNewYork1,306Rooms
Owned Hotels in Key Gateway Cities
ParkHyaRNewYork210Rooms
TheConfidanteMiamiBeach
363Rooms
HyaRRegencyOrlando1,639Rooms
GrandHyaRSeoul601Rooms
HyaRRegencyMexicoCity
755Rooms
GrandHyaRRiodeJaneiro
436Rooms
GrandHyaRSanFrancisco
660Rooms
10
HYATT / Investor Presentation, February 2017
Owned Real Estate: Valuable Catalyst for Growth
Chain Scale
Owned Rooms
Illustrative Gross Market Value Per Room
Illustrative Gross Market Value
Luxury 4,972 ~$700K ~$3.5B
Upper Upscale 12,742 ~$270K ~$3.5B
~$7.0B
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AsofSeptember30,2016.ChainscaledefinedbySTR.Excludesleasedhotelsandhotelsownedbyunconsolidatedhospitalityventures.
HYATT / Investor Presentation, February 2017
Expect Owned Portfolio to Continue to Evolve
Evolution of Owned and Leased Hotels
Upscale
United States
Secondary and tertiary markets
LESS
Luxury and Upper Upscale
International
Key gateway cities and resorts
MORE
KEY CONSIDERATIONS: Overall Deal Economics, Tax Impact, Market Conditions, Reinvestment Opportunities
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HYATT / Investor Presentation, February 2017
Meaningful New Hotel Development
• Approximately305hotelsor66,000roomsinexecutedcontractbase
— Mixofroomsisweightedtowardsmanaged,fullserviceandinterna5onalhotels
— Expecttoopenapproximately60hotelsin2017
AsofDecember31,2016.Excludesvaca5onownershipandresiden5alunits.
Exis5ng173,534Rooms
ContractBase66,000Rooms*Rooms
Exis5ng663Hotels
ContractBase305Hotels*Hotels
*38%ofexis5ngrooms
*46%ofexis5nghotels
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Contractbasebyroomsandhotels Contractbasebyroomsandregion
Americas, 32%
ASPAC, 42%
EAME / SW Asia, 26%
HYATT / Investor Presentation, February 2017
Growing Presence in Key Global Markets
AsofDecember31,2016.Excludesvaca5onownershipandresiden5alunits.
Americas497Hotels
AsiaPacific83Hotels
EAME/SWAsia83Hotels
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HYATT / Investor Presentation, February 2017
Strong Balance Sheet
• Significantliquidityavailabletobereinvestedover5me
• Maintaininvestmentgradecreditra5ngthroughthecycle
• Oneofthehighestcreditra5ngsamonglodgingpeers
• Undrawnborrowingavailabilityof$1.4Bunderrevolvingcreditfacility
• Adjustedleveragera5oof2.4x(1)
Balancesheetinforma5onasofDecember31,2016.(1)S&Padjustedleveragera5oasofSeptember30,2016.
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HYATT / Investor Presentation, February 2017
Recent Activity
Brands
• LaunchedTheUnboundCollec5onbyHyaRin1Q’16
– Fiveopenhotelsinthebrand’sporgolio
• AcquiredMiravalGroupin1Q’17,includingthreeresorts
ShareRepurchase
• Repurchased$272MinFY’16and$20Mthrough1Q’17(1)
• $337Mremainingundersharerepurchaseauthoriza5on(1)
EnhancedClassAShareFloat
• 10.2MClassBshareswereconvertedin4Q’16
• 130.6Mtotalsharesoutstanding(39.7MClassAshares,90.9MClassBshares)(2)
(1)AsofFebruary13,2017.(2)AsofJanuary31,2017.
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HYATT / Investor Presentation, February 2017
Recent Openings Provide Entry or Enhanced Presence into Attractive Markets
HyaRPlaceParkCity122Rooms
Opened1Q’16
HyaRRegencyBloomington–Minneapolis
303RoomsOpened1Q’16
ParkHyaRMallorca142Rooms
Opened2Q’16
HyaRRegencyShanghai,Wujiaochang
306RoomsOpened2Q’16
AndazORawaBywardMarket
200RoomsOpened3Q’16
17
HyaRRegencySydney892Rooms
Opened4Q’16
HyaRCentricWaikikiBeach
230RoomsOpened4Q’16
AndazScoRsdaleResort&Spa
201RoomsOpened4Q’16
HYATT / Investor Presentation, February 2017
Appendix: Non-GAAP Reconciliation Inthispresenta5on,managementhasreferredtoAdjustedEBITDA,whichisnotpresentedinaccordancewithUSGAAP.TheCompanydefinesconsolidatedAdjustedEBITDAasnetincomeaRributabletoHyaRHotelsCorpora5onplusourpro-ratashareofunconsolidatedhospitalityventuresAdjustedEBITDAbasedonourownershippercentageofeachventure,adjustedtoexcludethefollowingitems:(i)equityearnings(losses)fromunconsolidatedhospitalityventures;(ii)stock-basedcompensa5onexpense;(iii)assetimpairments;(iv)gains(losses)onsalesofrealestate;(v)otherincome(loss),net;(vi)deprecia5onandamor5za5on;(vii)interestexpense;and(viii)provisionforincometaxes.HyaRcalculatesconsolidatedAdjustedEBITDAbyaddingtheAdjustedEBITDAofeachofourreportablesegmentstocorporateandotherAdjustedEBITDA.Effec5veJanuary1,2016,HyaR’sdefini5onofAdjustedEBITDAhasbeenupdatedtoexcludestock-basedcompensa5onexpense,tofacilitatecomparisonwithcompe5tors.TheCompanyhasappliedthischangeinthedefini5onofAdjustedEBITDAtohistoricalresultstoallowforcomparabilitybetweentheperiodspresented.HyaRcalculatesconsolidatedAdjustedEBITDAbyaddingtheAdjustedEBITDAofeachofourreportablesegmentstocorporateandotherAdjustedEBITDA.TheCompany’sboardofdirectorsandexecu5vemanagementteamfocusonAdjustedEBITDAasakeyperformanceandcompensa5onmeasurebothonasegmentandonaconsolidatedbasis.AdjustedEBITDAassistsusincomparingourperformanceovervariousrepor5ngperiodsonaconsistentbasisbecauseitremovesfromouropera5ngresultstheimpactofitemsthatdonotreflectourcoreopera5ngperformancebothonasegmentandonaconsolidatedbasis.Ourpresidentandchiefexecu5veofficer,whoisourchiefopera5ngdecisionmaker,alsoevaluatestheperformanceofeachofourreportablesegmentsanddetermineshowtoallocateresourcestothosesegments,insignificantpart,byassessingtheAdjustedEBITDAofeachsegment.Inaddi5on,thecompensa5oncommiReeoftheCompany’sboardofdirectorsdeterminestheannualvariablecompensa5onforcertainmembersoftheCompany’smanagementbased inpartonconsolidatedAdjustedEBITDA, segmentAdjustedEBITDAor somecombina5onofboth.TheCompanybelieves thatAdjustedEBITDA isuseful to investorsbecause itprovidesinvestorsthesameinforma5onthattheCompanyusesinternallyforpurposesofassessingtheCompany’sopera5ngperformanceandmakingselectedcompensa5ondecisions.AdjustedEBITDAisnotasubs5tutefornetincomeaRributabletoHyaRHotelsCorpora5on,incomefromcon5nuingopera5ons,cashflowsfromopera5ngac5vi5esoranyothermeasureprescribedbyGAAP.Thereare limita5onstousingnon-GAAPmeasuressuchasAdjustedEBITDA.AlthoughtheCompanybelievesthatAdjustedEBITDAcanmakeanevalua5onoftheCompany’sopera5ngperformancemoreconsistentbecause it removes itemsthatdonotreflecttheCompany’scoreopera5ons,othercompanies inour industrymaydefineAdjustedEBITDAdifferentlythanwedo.Asaresult,itmaybedifficulttouseAdjustedEBITDAorsimilarlynamednon-GAAPmeasuresthatothercompaniesmayusetocomparetheperformanceofthosecompaniestoourperformance.Becauseoftheselimita5ons,AdjustedEBITDAshouldnotbeconsideredasameasureoftheincomegeneratedbyourbusiness.Ourmanagementcompensatesfortheselimita5onsbyreferencetoourGAAPresultsandusingAdjustedEBITDAsupplementally.SeetheCompany’sstatements inourconsolidatedfinancialstatementsincludedintheCompany’sannualreportonForm10-KfiledonFebruary16,2017.Youcanfindareconcilia5onofAdjustedEBITDAtonetincomeaRributabletoHyaRHotelsCorpora5on,themostdirectlycomparableGAAPmeasure,onourwebsiteatHyaR.comunderthefinancialinforma5onsec5onofourinvestorrela5onslink.
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HYATT / Investor Presentation, February 2017
Appendix: Non-GAAP Reconciliation
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Investor Presentation February 2017
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