Hyatt Hotels Corp

Previous wording

This Quarterly Report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about the Company's plans, strategies, and financial performance, and prospective or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the factors discussed in our filings with the SEC, including our Annual Report on Form 10-K; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate ("ADR"); limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions, including as a result of the U.S. presidential election and political or civil unrest or changes in trade policy; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as earthquakes, tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve certain levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality …

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Current wording

This Quarterly Report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about the Company's plans, strategies, and financial performance, and prospective or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate ("ADR"); limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions, including political or civil unrest or changes in trade policy; the impact of global tariff policies or regulations; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; the effects that the announcement or pendency of the planned Playa Hotels Acquisition may have on us, Playa and our respective business and ability to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom we or they do business; inability to obtain required regulatory or government approvals or to obtain such approvals on satisfactory conditions; inability to obtain sufficient stockholder tender of Playa ordinary shares, stockholder approval or to satisfy other closing conditions; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement; the effects that any termination of the definitive agreement may have on us or our business; failure to successfully complete the planned acquisition; legal proceedings that may be instituted related t…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

These factors are not necessarily all of the important factors that could cause our actual results, performance, or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors could also harm our business, financial condition, results of operations, or cash flows. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Current wording

Other unknown or unpredictable factors could also harm our business, financial condition, results of operations, or cash flows. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Previous wording

At September 30, 2024, our hotel portfolio consisted of 1,363 hotels (326,845 rooms), including:

Current wording

At March 31, 2025, our hotel portfolio consisted of 1,460 properties (357,336 rooms), including:

Previous wording

•498 managed properties (149,738 rooms), all of which we operate under management and hotel services agreements with third-party owners;

Current wording

•638 managed properties (192,593 rooms), including 109 all-inclusive resorts (38,120 rooms), all of which we operate under management and hotel services agreements with third-party owners;

Previous wording

•646 franchised properties (110,727 rooms), all of which are owned by third parties that have franchise agreements with us and are operated by third parties;

Current wording

•684 franchised properties (126,306 rooms), including 8 all-inclusive resorts in which we hold common shares (3,153 rooms), all of which are owned by third parties that have franchise agreements with us and are operated by third parties;

Previous wording

•22 managed properties and 2 franchised properties owned or leased by unconsolidated hospitality ventures (7,650 rooms); and

Current wording

•22 managed properties and 2 franchised properties owned or leased by unconsolidated hospitality ventures (7,613 rooms);

Previous wording

•48 franchised properties (7,075 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

•61 franchised properties (8,748 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; and

Previous wording

•39 residential units (4,578 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

•40 residential units (4,306 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

Additionally, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and operate under other trade names or marks owned by such hotels or licensed by third parties. We also offer distribution and destination management services through ALG Vacations and a boutique and luxury global travel platform through Mr & Mrs Smith.

Current wording

Additionally, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and operate under other trade names or marks owned by such hotels or licensed by third parties. We also offer distribution and destination management services through ALG Vacations and distribution services through Mr & Mrs Smith, a boutique and luxury global travel platform.

Previous wording

During the nine months ended September 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.

Current wording

During the year ended December 31, 2024, we presented a new financial statement line item, transaction and integration costs, to provide enhanced visibility on our condensed consolidated statements of income, and accordingly, we revised our definition of Adjusted EBITDA to exclude transaction and integration costs. We recast prior-period results to provide comparability. The revised definition excludes integration costs, which were recognized in integration costs during the three months ended March 31, 2024, and transaction costs, which were recognized in general and administrative expenses during the three months ended March 31, 2024. Previously, only transaction costs recognized in gains on sales of real estate and other and other income (loss), net were excluded from Adjusted EBITDA. As transaction and integration 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

Consolidated revenues increased $7 million, or 0.5%, during the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023. Gross fee revenues increased $25 million and revenues for reimbursed costs increased $113 million primarily 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 September 30, 2023. Additionally, during the quarter ended September 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 $66 million, compared to the quarter ended September 30, 2023, primarily driven by the sale of the Destination Residential Management business and the UVC Transaction. Owned and leased revenues decreased $42 million, compared to the quarter ended September 30, 2023, primarily driven by dispositions of owned hotels.

Current wording

Consolidated revenues increased $4 million, or 0.2%, during the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024. Gross fee revenues and revenues for reimbursed costs increased $45 million and $84 million, respectively, primarily driven by increased demand leading to improved operating performance at our existing properties as well as growth of our hotel portfolio compared to the quarter ended March 31, 2024. Additionally, during the quarter ended March 31, 2025, gross fee revenues increased due to management fee revenues related to the Bahia Principe Transaction and other fee revenues related to the management of and licensing of certain of our brands to the Unlimited Vacation Club following the UVC Transaction. Other revenues decreased $24 million, compared to the quarter ended March 31, 2024, primarily driven by the UVC Transaction. Owned and leased revenues decreased $90 million, compared to the quarter ended March 31, 2024, due to net disposition activity in 2024.

Previous wording

During the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023, business transient demand remained strong. We also continued to experience growth in group travel as comparable system-wide group rooms revenues increased approximately 6% compared to 2023. Group booking pace for October through December 2024 at our full service managed hotels in the United States is approximately flat, compared to the same period in 2023, as 2024 is negatively impacted by the shift in timing of the Jewish holidays and the U.S. presidential election.

Current wording

During the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, business transient demand continued to improve and group demand was strong, and as a result, group RevPAR increased approximately 9% and group ADR increased approximately 5%. At March 31, 2025, group booking pace for April through December 2025 at our full service managed hotels in the United States is up approximately 3% compared to the same period in 2024.

Previous wording

For the quarter ended September 30, 2024, we reported $471 million of net income attributable to Hyatt Hotels Corporation, representing a $403 million increase, compared to the three months ended September 30, 2023, primarily driven by gains (losses) on sales of real estate and other and other income (loss), net, partially offset by increases in the provision for income taxes and asset impairments. Our consolidated Adjusted EBITDA for the quarter ended September 30, 2024 was $275 million, a $22 million increase compared to the quarter ended September 30, 2023. See "—Results of Operations" and "—Segment Results" for further discussion.

Current wording

For the quarter ended March 31, 2025, we reported $20 million of net income attributable to Hyatt Hotels Corporation, representing a $502 million decrease, compared to the quarter ended March 31, 2024, primarily driven by decreases in gains on sales of real estate and other and equity earnings (losses) from unconsolidated hospitality ventures primarily driven by 2024 transaction activity. Our consolidated Adjusted EBITDA for the quarter ended March 31, 2025 was $273 million, a $14 million increase compared to the quarter ended March 31, 2024. See "—Results of Operations" and "—Segment Results" for further discussion.

Previous wording

During the quarter ended September 30, 2024, we returned $672 million of capital to our stockholders through $657 million of share repurchases and $15 million of quarterly dividend payments.

Current wording

During the quarter ended March 31, 2025, we returned $163 million of capital to our stockholders through $149 million of share repurchases and $14 million of quarterly dividend payments.

Previous wording

RevPAR increases at our comparable system-wide hotels during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, were primarily driven by strong demand in business transient and group travel as well as increased international outbound travel from the United States into Europe and Asia Pacific (excluding Greater China). During the three months ended September 30, 2024, compared to the same period in the prior year, the Paris Summer Olympics also contributed to the RevPAR increase in Europe. During the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, the decrease in RevPAR in Greater China was driven by lower ADR.

Current wording

The increase in RevPAR at our comparable system-wide hotels during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily driven by strong demand in business transient and group travel, in part due to the timing of the Easter holiday.

Previous wording

The decrease in Net Package RevPAR at our comparable all-inclusive resorts during the three months ended September 30, 2024, compared to the three months ended September 30, 2023, was driven by lower demand in the Americas (excluding United States), in part due to Hurricane Beryl, partially offset by strong demand and Net Package ADR in Europe.

Current wording

The increase in Net Package RevPAR at our comparable all-inclusive resorts during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was driven by higher demand, partially offset by lower Net Package ADR in the Americas (excluding United States).

Previous wording

The increases in RevPAR at our comparable owned and leased hotels during the three and nine months ended September 30, 2024, compared to the same periods in the prior year, were driven by continued growth in group and business transient travel. Additionally, during the three months ended September 30, 2024, compared to the three months ended September 30, 2023, the increase in RevPAR was driven by strong ADR most notably due to the Democratic National Convention, which was held in August in Chicago, and the Paris Summer Olympics.

Current wording

The increase in RevPAR at our comparable owned and leased hotels during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily driven by strong group demand and group ADR.

Previous wording

Three and Nine Months Ended September 30, 2024 Compared with Three and Nine Months Ended September 30, 2023

Current wording

Three Months Ended March 31, 2025 Compared with Three Months Ended March 31, 2024

Previous wording

For additional information regarding our consolidated results, refer to our condensed consolidated statements of income included in this Quarterly Report. See "—Segment Results" for further discussion.

Current wording

For additional information regarding our consolidated results, refer to our condensed consolidated statements of income included in this Quarterly Report.

Previous wording

The increase in base management fees during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, was primarily driven by the Americas and Europe.

Current wording

The increase in base management fees during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily driven by increased business transient and group demand, as well as portfolio growth, most notably in the Americas, inclusive of the Bahia Principe Transaction.

Previous wording

The increase in incentive management fees during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, was primarily driven by Europe and ASPAC (excluding Greater China), partially offset by the Americas.

Current wording

The increase in incentive management fees during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily driven by the Bahia Principe Transaction and strong hotel performance in ASPAC (excluding Greater China) as well as the Americas (excluding United States), in part due to hotel profits being positively impacted by currency translation, partially offset by lower incentive management fees in the United States.

Previous wording

The increase in other fees during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 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.

Current wording

The increase in franchise and other fees during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, 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 paid membership program following the UVC Transaction and license fees related to our co-branded credit card programs.

Previous wording

The increase in Contra revenue during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, was primarily due to the Americas driven by incremental amortization of management and hotel services agreement and franchise agreement assets and an accrued performance cure payment.

Current wording

The increase in Contra revenue during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily driven by the Americas due to a payment made to a third-party owner and accrued performance cure payments.

Previous wording

Distribution revenues. During the three and nine months ended September 30, 2024, distribution revenues decreased $8 million and $14 million, compared to the three and nine months ended September 30, 2023, respectively, primarily driven by ALG Vacations due to the normalization of demand and higher pricing in 2023 as well as lower booking and departure volume in 2024, in part due to Hurricanes Beryl and Helene. The decrease was partially offset by increased commission fee revenues related to Mr & Mrs Smith and breakage recognized related to ALG Vacations travel credits.

Current wording

Distribution revenues. During the three months ended March 31, 2025, distribution revenues decreased $4 million, compared to the three months ended March 31, 2024, primarily driven by ALG Vacations and Amstar due to lower booking and departure volume, partially offset by higher pricing.

Previous wording

Other revenues. During the three and nine months ended September 30, 2024, other revenues decreased $66 million and $180 million, compared to the three and nine months ended September 30, 2023, respectively, primarily driven by the sale of the Destination Residential Management business 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 months ended March 31, 2025, other revenues decreased $24 million, compared to the three months ended March 31, 2024, primarily driven by the UVC Transaction.

Previous wording

Revenues for reimbursed costs increased during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 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. Additionally, revenues for reimbursed costs increased due to higher point redemptions related to the loyalty program.

Current wording

Revenues for reimbursed costs increased during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, driven by higher reimbursements for payroll and related expenses at managed properties where we are the employer and an increase in 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

Excluding the impact of the UVC Transaction, general and administrative expenses increased $17 million and $31 million, during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively, primarily driven by improved market performance of the underlying investments in marketable securities held to fund our deferred compensation plans through rabbi trusts and an increase in payroll and related costs, partially offset by decreases in professional fees and stock-based compensation expense. Additionally, during the nine months ended September 30, 2023, we recognized the reversal of credit loss reserves on certain receivables.

Current wording

General and administrative expenses decreased $43 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, in part due to the UVC Transaction. Excluding the impact of the UVC Transaction, general and administrative expenses decreased $37 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily driven by a decline in market performance of the underlying investments in marketable securities held to fund our deferred compensation plans through rabbi trusts and a decrease in professional fees.

Previous wording

The increase in comparable owned and leased expenses during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 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 months ended March 31, 2025, compared to the three months ended March 31, 2024, 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 and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, was primarily driven by dispositions of owned hotels, partially offset by increased expenses at a recently renovated hotel in the United States.

Current wording

The decrease in non-comparable owned and leased expenses during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily driven by net disposition activity in 2024.

Previous wording

Other direct costs. During the three and nine months ended September 30, 2024, other direct costs decreased $62 million and $185 million, compared to the three and nine months ended September 30, 2023, respectively, driven by the UVC Transaction and the sale of the Destination Residential Management business, offset by an increase in expenses related to our co-branded credit card programs.

Current wording

Other direct costs. During the three months ended March 31, 2025, other direct costs decreased $21 million, compared to the three months ended March 31, 2024, primarily driven by the UVC Transaction.

Previous wording

Transaction and integration costs. During the nine months ended September 30, 2024, transaction and integration costs decreased $5 million, compared to the nine months ended September 30, 2023, primarily due to transaction and integration costs related to the acquisition of Dream Hotel Group and transaction costs related to the acquisition of Mr & Mrs Smith in 2023, partially offset by transaction costs for potential transactions in 2024, including the acquisition of Standard International, which closed on October 1, 2024. See Part I, Item 1, "Financial Statements—Note 7 and Note 20 to our Condensed Consolidated Financial Statements" for additional information.

Current wording

Transaction and integration costs. During the three months ended March 31, 2025, transaction and integration costs increased $15 million, compared to the three months ended March 31, 2024, primarily due to transaction costs related to the planned Playa Hotels Acquisition. See Part I, Item 1, "Financial Statements—Note 6 to our Condensed Consolidated Financial Statements" for additional information.

Previous wording

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

Current wording

Reimbursed costs increased during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, 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 and the loyalty program. 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 and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 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 months ended March 31, 2025, compared to the three months ended March 31, 2024, driven by market performance of the underlying invested assets.

Previous wording

Interest expense. Interest expense increased $9 million and $23 million during three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively, primarily due to the issuances of senior notes in 2024 and 2023, partially offset by the redemption of certain of our Senior Notes in 2023. See Part I, Item 1, "Financial Statements—Note 10 to our Condensed Consolidated Financial Statements" for additional information.

Current wording

Interest expense. During three months ended March 31, 2025, interest expense increased $28 million, compared to the three months ended March 31, 2024, primarily due to the issuances of senior notes in 2024 and bridge commitment fees related to the planned Playa Hotels Acquisition, partially offset by the redemption of certain of our senior notes in 2024. See Part I, Item 1, "Financial Statements—Note 9 to our Condensed Consolidated Financial Statements" for additional information.

Previous wording

•$231 million pre-tax gain related to the UVC Transaction;

Current 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 the shares of the entities that own 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.

Previous wording

The increase in the provision for income taxes during the three months ended September 30, 2024, compared to the three months ended September 30, 2023, was primarily driven by the sale of Hyatt Regency Orlando and an adjacent undeveloped land parcel. The increase in the provision for income taxes during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, was primarily driven by the aforementioned sale as well as the earnings impact from the sales of Hyatt Regency Aruba Resort Spa and Casino, Park Hyatt Zurich, and Hyatt Regency San Antonio Riverwalk as well as the UVC Transaction. See Part I, Item 1 "Financial Statements—Note 12 to our Condensed Consolidated Financial Statements" for additional information.

Current wording

The increase in the provision for income taxes during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily driven by an increase in uncertain tax positions in 2025 related to foreign tax filings, combined with a benefit related to employee compensation in 2024. The increase in the effective tax rate is driven by uncertain tax position activity in 2025 and the impact from both the sale of the shares of the entities that own Hyatt Regency Aruba Resort Spa and Casino and the UVC Transaction in addition to the release of a valuation allowance on certain foreign deferred tax assets in 2024. See Part I, Item 1, "Financial Statements—Note 11 to our Condensed Consolidated Financial Statements" for additional information.

Previous wording

Management and franchising segment revenues.

Current wording

Management and franchising segment revenues and Adjusted EBITDA.

Previous wording

Owned and leased segment revenues.

Current wording

Owned and leased segment revenues and Adjusted EBITDA.

Previous wording

Distribution segment revenues.

Current wording

Distribution segment revenues and Adjusted EBITDA.

Previous wording

Excluding the impact of the UVC Transaction, Adjusted EBITDA decreased $5 million and $34 million, during the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively, primarily driven by distribution revenues and distribution expenses (see "—Results of Operations" for further discussion).

Current wording

Excluding the impact of the UVC Transaction, Adjusted EBITDA increased $4 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily driven by distribution revenues and distribution expenses. See "—Results of Operations" for further discussion.