Hyatt Hotels Corp

Previous wording

At March 31, 2024, our hotel portfolio consisted of 1,341 hotels (323,405 rooms), including:

Current wording

At June 30, 2024, our hotel portfolio consisted of 1,352 hotels (325,507 rooms), including:

Previous wording

•488 managed properties (145,854 rooms), all of which we operate under management and hotel services agreements with third-party owners;

Current wording

•494 managed properties (147,787 rooms), all of which we operate under management and hotel services agreements with third-party owners;

Previous wording

•638 franchised properties (109,800 rooms), all of which are owned by third parties that have franchise agreements with us and are operated by third parties;

Current wording

•643 franchised properties (110,429 rooms), all of which are owned by third parties that have franchise agreements with us and are operated by third parties;

Previous wording

•124 all-inclusive resorts (42,412 rooms), including 110 owned by third parties (37,984 rooms) and operated under management and hotel services agreements, 8 owned by a third party in which we hold common shares (3,153 rooms) and operated under franchise agreements, and 6 operating leased properties (1,275 rooms);

Current wording

•125 all-inclusive resorts (42,749 rooms), including 111 owned by third parties (38,321 rooms) and operated under management and hotel services agreements, 8 owned by a third party in which we hold common shares (3,153 rooms) and operated under franchise agreements, and 6 operating leased properties (1,275 rooms);

Previous wording

•22 owned properties (9,803 rooms), 1 finance leased property (171 rooms), and 4 operating leased properties (1,697 rooms), all of which we manage;

Current wording

•19 owned properties (8,794 rooms), 1 finance leased property (171 rooms), and 4 operating leased properties (1,697 rooms), all of which we manage;

Previous wording

•22 managed properties and 2 franchised properties owned or leased by unconsolidated hospitality ventures (7,638 rooms); and

Current wording

•22 managed properties and 2 franchised properties owned or leased by unconsolidated hospitality ventures (7,640 rooms); and

Previous wording

•40 franchised properties (6,030 rooms) operated by an unconsolidated hospitality venture in connection with a master license agreement by Hyatt; 6 of these properties (1,246 rooms) are leased by the unconsolidated hospitality venture.

Current wording

•42 franchised properties (6,240 rooms) operated by an unconsolidated hospitality venture in connection with a master license agreement by Hyatt; 6 of these properties (1,246 rooms) are leased by the unconsolidated hospitality venture.

Previous wording

•39 residential units (4,323 rooms), which consist of branded residences and serviced apartments. We manage all of the serviced apartments and those branded residential units that participate in a rental program with an adjacent Hyatt-branded hotel.

Current wording

•38 residential units (4,324 rooms), which consist of branded residences and serviced apartments. We manage all of the serviced apartments and those branded residential units that participate in a rental program with an adjacent Hyatt-branded hotel.

Previous wording

During the three months ended March 31, 2024:

Current wording

During the three months ended June 30, 2024, we revised our definition of Adjusted EBITDA to exclude transaction and integration costs, and we recast prior-period results to provide comparability. The revised definition excludes transaction costs previously recognized in general and administrative expenses and integration costs. Previously, only transaction costs recognized in gains (losses) on sales of real estate and other and other income (loss), net were excluded from Adjusted EBITDA. As these costs may vary in frequency or magnitude, we believe the revised definition presents a more representative measure of our core operations, assists in the comparability of results, and provides information consistent with how our management evaluates operating performance. See "—Non-GAAP Measures" for an explanation of how we utilize Adjusted EBITDA, why we present it, and material limitations on its usefulness, as well as a reconciliation of our net income attributable to Hyatt Hotels Corporation to consolidated Adjusted EBITDA.

Previous wording

During the quarter ending March 31, 2024, we realigned our reportable segments to align with our business strategy, the organizational changes for certain members of our leadership team, and the manner in which our CODM assesses performance and makes decisions regarding the allocation of resources. A summary of our reportable segments is as follows:

Current wording

During the six months ended June 30, 2024, we realigned our reportable segments to align with our business strategy, the organizational changes for certain members of our leadership team, and the manner in which our

Previous wording

Segment operating information for the three months ended March 31, 2023 have been recast to reflect these segment changes. See Part I, Item 1 "Financial Statements—Note 1 and Note 16 to our Condensed Consolidated Financial Statements" for further discussion of our segment structure.

Current wording

Segment operating information for the three and six months ended June 30, 2023 have been recast to reflect these segment changes. See Part I, Item 1 "Financial Statements—Note 1 and Note 16 to our Condensed Consolidated Financial Statements" for further discussion of our segment structure.

Previous wording

Consolidated revenues increased $34 million, or 2.0%, during the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023. Gross fee revenues increased $31 million and revenues for reimbursed costs increased $73 million driven by improved operating performance and growth of our portfolio, compared to the three months ended March 31, 2023, largely driven by increased demand and ADR. Distribution revenues decreased $9 million due to the normalization of demand and higher pricing in 2023, other revenues decreased $53 million primarily driven by the sale of the Destination Residential Management business in the third quarter of 2023 and the UVC Transaction, and owned and leased revenues decreased $5 million due to noncomparable hotels.

Current wording

Consolidated revenues decreased $2 million during the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023. Gross fee revenues increased $29 million and revenues for reimbursed costs increased $58 million driven by improved operating performance at our existing properties, including increased demand and ADR, and growth of our hotel portfolio compared to the quarter ended June 30, 2023. Additionally, during the quarter ended June 30, 2024, gross fee revenues increased due to management and royalty fees earned related to the management of and licensing of certain of our brands to the Unlimited Vacation Club following the UVC Transaction. Other revenues decreased $61 million, compared to the quarter ended June 30, 2023, primarily driven by the sale of the Destination Residential Management business in the third quarter of 2023 and the UVC Transaction. Owned and leased revenues decreased $27 million, compared to the quarter ended June 30, 2023, due to non-comparable hotels, primarily driven by dispositions of owned hotels.

Previous wording

Comparable system-wide hotels revenue per available room ("RevPAR") for the quarter ended March 31, 2024 was $132, which represented a 5.5% improvement compared to the quarter ended March 31, 2023 in constant currency. The increase was primarily driven by higher ADR across almost all geographies in the management and franchising segment, with the most significant increases in Asia Pacific (excluding Greater China) and Americas (excluding United States).

Current wording

Comparable system-wide hotels revenue per available room ("RevPAR") for the quarter ended June 30, 2024 was $149, which represented a 4.7% improvement compared to the quarter ended June 30, 2023 in constant currency. The increase was primarily driven by higher ADR across most geographies in the management and franchising segment, with the most significant increases in Asia Pacific (excluding Greater China).

Previous wording

Comparable system-wide all-inclusive resorts Net Package RevPAR for the quarter ended March 31, 2024 was $312, which represented a 11.0% improvement, compared to the quarter ended March 31, 2023 in reported dollars, primarily driven by higher demand and ADR. See "—Segment Results" for discussion of RevPAR by geography for our management and franchising segment.

Current wording

Comparable system-wide all-inclusive resorts Net Package RevPAR for the quarter ended June 30, 2024 was $226, which represented a 3.0% improvement, compared to the quarter ended June 30, 2023 in reported dollars, primarily driven by higher demand and Net Package ADR. See "—Segment Results" for discussion of RevPAR by geography for our management and franchising segment.

Previous wording

During the three months ended March 31, 2024, compared to the three months ended March 31, 2023, leisure transient travel remained strong and business transient demand continued to improve. We also experienced continued growth in group travel as comparable system-wide group rooms revenues increased 5.5% and group booking pace was up 8.1% at our full service managed hotels in the United States for April through December 2024 compared to the same period in 2023.

Current wording

During the quarter ended June 30, 2024, compared to the quarter ended June 30, 2023, business transient demand continued to improve and when excluding the impact of the timing of the Easter holiday, leisure transient travel increased. We continued to experience growth in group travel as comparable system-wide group rooms revenues increased 7.8% and group booking pace was up 6.9% at our full service managed hotels in the United States for July through December 2024 compared to the same period in 2023.

Previous wording

For the quarter ended March 31, 2024, we reported $522 million of net income attributable to Hyatt Hotels Corporation, representing a $464 million increase, compared to the three months ended March 31, 2023, primarily driven by gains on sales of real estate and other and an increase in equity earnings (losses) from unconsolidated hospitality ventures. The increase in gross fee revenues was more than offset by decreased distribution revenues, increased general and administrative expenses, and increased distribution expenses. Our consolidated Adjusted EBITDA for the quarter ended March 31, 2024 was $252 million, a $16 million decrease compared to the quarter ended March 31, 2023. See "—Results of Operations" and "—Segment Results" for further discussion. See "—Non-GAAP Measures" for an explanation of how we utilize Adjusted EBITDA, why we present it, and material limitations on its usefulness, as well as a reconciliation of our net income attributable to Hyatt Hotels Corporation to consolidated Adjusted EBITDA.

Current wording

For the quarter ended June 30, 2024, we reported $359 million of net income attributable to Hyatt Hotels Corporation, representing a $291 million increase, compared to the three months ended June 30, 2023, primarily driven by gains (losses) on sales of real estate and other, partially offset by an increase in the provision for income taxes. Our consolidated Adjusted EBITDA for the quarter ended June 30, 2024 was $307 million, a $28 million increase compared to the quarter ended June 30, 2023. See "—Results of Operations" and "—Segment Results" for further discussion.

Previous wording

During the quarter ended March 31, 2024, we returned $403 million of capital to our stockholders through $388 million of share repurchases and $15 million of quarterly dividend payments.

Current wording

During the quarter ended June 30, 2024, we returned $150 million of capital to our stockholders through $134 million of share repurchases and $16 million of quarterly dividend payments.

Previous wording

Three Months Ended March 31, 2024 Compared with Three Months Ended March 31, 2023

Current wording

Three and Six Months Ended June 30, 2024 Compared with Three and Six Months Ended June 30, 2023

Previous wording

The increases in management and franchise fees during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, were driven by strong demand in leisure transient and group travel, higher ADR, most notably in Asia Pacific (excluding Greater China) and Americas (excluding United States), and portfolio growth. The increase in other fees during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily driven by management and royalty fees related to the management of and licensing of certain of our brands to the Unlimited Vacation Club following the UVC Transaction and increased license fees related to our co-branded credit card programs.

Current wording

The increase in other fees during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, was primarily driven by management and royalty fees related to the management of and licensing of certain of our brands to the Unlimited Vacation Club following the UVC Transaction and increased license fees related to our co-branded credit card programs.

Previous wording

Comparable owned and leased revenues increased during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily driven by increased business transient demand as well as higher ADR.

Current wording

Comparable owned and leased revenues increased during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, primarily driven by increased business transient demand. During the three months ended June 30, 2024, compared to the three months ended June 30, 2023, the increase was also driven by group rooms revenues and food and beverage revenues.

Previous wording

Non-comparable owned and leased revenues decreased during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily driven by the sale of Hyatt Regency Aruba Resort Spa and Casino, partially offset by increased revenues at a recently renovated hotel in the United States.

Current wording

Non-comparable owned and leased revenues decreased during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, primarily driven by dispositions of owned hotels, partially offset by increased revenues at a recently renovated hotel in the United States.

Previous wording

Distribution revenues. During the three months ended March 31, 2024, distribution revenues decreased $9 million, compared to the three months ended March 31, 2023, primarily driven by ALG Vacations due to the normalization of demand and higher pricing in 2023, partially offset by commission fee revenues related to Mr & Mrs Smith, which was acquired in the second quarter of 2023.

Current wording

Distribution revenues. During the three months ended June 30, 2024, distribution revenues increased $3 million, compared to the three months ended June 30, 2023, primarily due to commission fee revenues related to Mr & Mrs Smith, which was acquired in the second quarter of 2023, offset by ALG Vacations due to higher pricing in 2023. During the six months ended June 30, 2024, distribution revenues decreased $6 million as the decrease in revenues from ALG Vacations due to the normalization of demand and higher pricing in 2023 more than offset commission fee revenues related to Mr & Mrs Smith.

Previous wording

Other revenues. During the three months ended March 31, 2024, other revenues decreased $53 million, compared to the three months ended March 31, 2023, primarily driven by the Destination Residential Management business, which was sold during the third quarter of 2023, and the UVC Transaction, partially offset by an increase in revenues related to our co-branded credit card programs.

Current wording

Other revenues. During the three and six months ended June 30, 2024, other revenues decreased $61 million and $114 million, respectively, compared to the three and six months ended June 30, 2023, primarily driven by the Destination Residential Management business, which was sold during the third quarter of 2023, and the UVC Transaction, partially offset by an increase in revenues related to our co-branded credit card programs.

Previous wording

Revenues for reimbursed costs increased during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, driven by higher reimbursements for payroll and related expenses at managed properties where we are the employer and reimbursed costs related to system-wide services provided to managed and franchised properties. The higher reimbursements for expenses were due to improved hotel operating performance driven by increased demand and ADR as well as portfolio growth.

Current wording

Revenues for reimbursed costs increased during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, driven by higher reimbursements for payroll and related expenses at managed properties where we are the employer and reimbursed costs related to system-wide services provided to managed and franchised properties. The higher reimbursements for expenses were due to increased demand at our existing properties and portfolio growth.

Previous wording

General and administrative expenses increased during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily driven by increased payroll and related costs and professional fees as well as improved market performance of the underlying investments in marketable securities held to fund our deferred compensation plans through rabbi trusts.

Current wording

General and administrative expenses decreased during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, primarily driven by decreased market performance of the underlying investments in marketable securities held to fund our deferred compensation plans through rabbi trusts and decreased professional fees and travel expenses, partially offset by an increase in payroll and related costs and the reversal of credit loss reserves on certain receivables during the three and six months ended June 30, 2023.

Previous wording

The increase in comparable owned and leased expenses during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily due to increased variable expenses at certain hotels, most notably payroll and related costs.

Current wording

The increase in comparable owned and leased expenses during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, was primarily due to increased variable expenses at certain hotels, most notably payroll and related costs.

Previous wording

The decrease in non-comparable owned and leased expenses during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily driven by the sale of Hyatt Regency Aruba Resort Spa and Casino, partially offset by expenses at a recently renovated hotel in the United States.

Current wording

The decrease in non-comparable owned and leased expenses during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, was primarily driven by dispositions of owned hotels, partially offset by increased expenses at a recently renovated hotel in the United States.

Previous wording

Distribution expenses. During the three months ended March 31, 2024, compared to the three months ended March 31, 2023, distribution expenses increased $16 million primarily driven by ALG Vacations due to an increase in certain variable costs, in part due to a change in product mix, and expenses related to Mr & Mrs Smith, which was acquired in the second quarter of 2023, most notably payroll and related costs and marketing costs.

Current wording

Distribution expenses. During the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, distribution expenses increased $8 million and $24 million, respectively, primarily driven by ALG Vacations due to an increase in certain variable costs, in part due to a change in product mix, and expenses related to Mr & Mrs Smith, which was acquired in the second quarter of 2023, most notably payroll and related costs and marketing costs.

Previous wording

Other direct costs. During the three months ended March 31, 2024, other direct costs decreased $53 million, compared to the three months ended March 31, 2023, primarily driven by the Destination Residential Management business, which was sold during the third quarter of 2023, and the UVC Transaction.

Current wording

Other direct costs. During the three and six months ended June 30, 2024, other direct costs decreased $70 million and $123 million, respectively, compared to the three and six months ended June 30, 2023, primarily driven by the Destination Residential Management business, which was sold during the third quarter of 2023, and the UVC Transaction.

Previous wording

Depreciation and amortization expenses. Depreciation and amortization expenses decreased $6 million during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, due to the UVC Transaction and the sale of Hyatt Regency Aruba Resort Spa and Casino.

Current wording

Depreciation and amortization expenses. Depreciation and amortization expenses decreased $15 million and $21 million, during the three and six months ended June 30, 2024, respectively, compared to the three and six months ended June 30, 2023, due to the UVC Transaction and dispositions of owned hotels.

Previous wording

Reimbursed costs increased during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, driven by increased payroll and related expenses at managed properties where we are the employer and expenses related to system-wide services provided to managed and franchised properties. The higher expenses were due to improved hotel operating performance driven by increased demand and ADR as well as portfolio growth.

Current wording

Reimbursed costs increased during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, driven by increased payroll and related expenses at managed properties where we are the employer and expenses related to system-wide services provided to managed and franchised properties. The higher expenses were due to increased demand at our existing properties and portfolio growth.

Previous wording

Net gains (losses) and interest income from marketable securities held to fund rabbi trusts increased during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, driven by the performance of the underlying invested assets.

Current wording

Net gains (losses) and interest income from marketable securities held to fund rabbi trusts decreased during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, driven by the performance of the underlying invested assets.

Previous wording

Interest expense. Interest expense increased $5 million during three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to the issuance of senior notes in 2023, offset by the redemption of certain of our Senior Notes in 2023. See Part I, Item 1, "Financial Statements—Note 9 to our Condensed Consolidated Financial Statements" for additional information.

Current wording

Interest expense. Interest expense increased $9 million and $14 million during three and six months ended June 30, 2024, respectively, compared to the three and six months ended June 30, 2023, primarily due to the issuances of senior notes in 2024 and 2023, offset by the redemption of certain of our Senior Notes in 2023. See Part I, Item 1, "Financial Statements—Note 9 to our Condensed Consolidated Financial Statements" for additional information.

Previous wording

Gains on sales of real estate and other. During the three months ended March 31, 2024, we recognized a $231 million pre-tax gain related to the UVC Transaction and a $172 million pre-tax gain related to the sale of Hyatt Regency Aruba Resort Spa and Casino. See Part I, Item 1 "Financial Statements—Note 4 and Note 6 to our Condensed Consolidated Financial Statements" for additional information.

Current wording

Gains (losses) on sales of real estate and other. During the three months ended June 30, 2024, we recognized the following:

Previous wording

Asset impairments. During the three months ended March 31, 2024, we recognized a $15 million goodwill impairment charge in connection with the sale of Hyatt Regency Aruba Resort Spa and Casino. See Part I, Item 1 "Financial Statements—Note 6 to our Condensed Consolidated Financial Statements" for additional information.

Current wording

Asset impairments. During the six months ended June 30, 2024, we recognized a $15 million goodwill impairment charge in connection with the sale of Hyatt Regency Aruba Resort Spa and Casino. See Part I, Item 1 "Financial Statements—Note 6 to our Condensed Consolidated Financial Statements" for additional information.

Previous wording

The decreases in the provision for income taxes and effective tax rate for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, were primarily due to a non-cash tax benefit as a result of the release of a valuation allowance on certain foreign deferred tax assets, partially offset by the earnings impact from both the sale of Hyatt Regency Aruba Resort Spa and Casino and the UVC Transaction recognized during the three months ended March 31, 2024. See Part I, Item 1 "Financial Statements—Note 11 to our Condensed Consolidated Financial Statements" for additional information.

Current wording

The increase in the provision for income taxes for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, was primarily driven by the sales of Park Hyatt Zurich and Hyatt Regency San Antonio Riverwalk. The increase in the provision for income taxes during the six months ended June 30, 2024, compared to the six months ended June 30, 2023, was primarily driven by the aforementioned sales as well as the earnings impact from both the sale of Hyatt Regency Aruba Resort Spa and Casino and the UVC Transaction. See Part I, Item 1 "Financial Statements—Note 11 to our Condensed Consolidated Financial Statements" for additional information.

Previous wording

The decrease in other revenues during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was driven by the Destination Residential Management business, which was sold during the third quarter of 2023, partially offset by an increase related to our co-branded credit card programs.

Current wording

The decrease in other revenues during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, was driven by the Destination Residential Management business, which was sold during the third quarter of 2023, partially offset by an increase related to our co-branded credit card programs.

Previous wording

The table below includes comparable RevPAR, occupancy, and ADR by geography and for system-wide managed and franchised properties.

Current wording

The table below includes comparable system-wide RevPAR, occupancy, and ADR by geography and for managed and franchised hotels.

Previous wording

RevPAR increases at our comparable system-wide hotels during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, were driven by strong demand in leisure transient and group travel, most notably in Japan and Southeast Asia. In Greater China, the RevPAR increase is primarily due to the easing of COVID-19 pandemic travel restrictions during the first quarter of 2023.

Current wording

RevPAR increases at our comparable system-wide hotels during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, were driven by strong demand in business transient and group travel. Additionally, during the three months ended June 30, 2024, compared to the three months ended June 30, 2023, leisure transient travel increased when excluding the impact of the timing of the Easter holiday. During the three months ended June 30, 2024, compared to the three months ended June 30, 2023, the decrease in RevPAR in Greater China was primarily driven by a decrease in ADR. During the six months ended June 30, 2024, compared to the six months ended June 30, 2023, the RevPAR increase in Greater China is primarily due to the easing of COVID-19 pandemic travel restrictions during the first quarter of 2023.

Previous wording

Net Package RevPAR increases at our comparable all-inclusive resorts during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, were driven by strong demand and Net Package ADR.

Current wording

Net Package RevPAR increases at our comparable all-inclusive resorts during the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, were driven by strong demand and Net Package ADR.