Hyatt Hotels (H) 3 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to the Hyatt Third Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Noah Hoppe, Senior Vice President, Investor Relations. you. Thank ahead. go Please

Good Hyatt's and conference third operator. joining call. you us for quarter morning you, thank everyone for Thank XXXX earnings

and Joining Hoplamazian, Joan call today's Hyatt's Chief President Bottarini, Officer. me and Executive Financial are Chief Officer; on Hyatt's Mark

SEC would in I described statements our other numerous forward-looking to These remind federal our risks subject differ in on to by on Form securities cause annual laws. and started, actual comments get risks everyone will as our today we Form like reports our and Before are report could quarterly uncertainties materially include XX-K, XX-Q from under that or comments. These filings. results to those expressed implied statements

the of Forward-looking made events call, statements in and earnings today unfold. that the updated with on only comments are release as as we not along will be this actual today, issued

you In this of in for remarks earnings with a be measures today's non-GAAP to over of in An this the addition, the turn Reporting to our Mark. on days. under available that, website will XX can referred of And link archive and find hyatt.com release. Investor call Relations Financial our financial on call morning's reconciliation website at I'll our section

welcome Noah. Good morning, Hyatt's Thank you, XXXX everyone, to call. quarter and earnings third

show generosity And efforts. To here for in fund to the purpose communities care, a who colleague and Hyatt Foundation and care, family Hyatt, is the of I Before to Red and including Florida assistance, family all continue colleagues to Fiona. Hyatt Guided impacted the funds continue our all we relief a like Dominican would Republic, colleagues you. colleagues to of by begin, Hyatt by who to came address and the Cross by and created Hotels Hurricanes you. our donation thank provided Ian of our support the unbelievable together require to both American

and our million we teams towards flow of numbers the and we levels year, of $XXX have increasing $XX continue first and leaders of nine of an results, above significant and conversion founding sum Through the this reminded generated business since our plus than are adjusted acknowledge combination the The in the hotel EBITDA transformation It the significant the were excellent core pride delivered over of to quarter, record family. company's our million reflect earnings of anniversary history, adjusted business growth net I'd of the our months asset-lighter our generated of in first an earnings results. fuel the mix impressive opening from Pritzker history the we XXXX reached reflect the into of success the aggregate months momentum the To family our during results, dive of and our the the important this into performance results XXXX. we our Hyatt of opening The is Hyatt's this milestone execution that that is contracts. that in of by quarter to of demonstrate our already like past the nine building. perspective, we we time incredible strongest shift our the hotel cash into magnitude first this to XXth anniversary in in this the deferrals transformation entire EBITDA point upon quarter of of million we our honor X,XXXth As growth during and our put model more of first From for finance was in Hyatt the of third contribution a with million these $XXX financial three XX% quarter. building last all the globally. quarter, ALG $XX record net

In EBITDA results XXXX it's our dispositions. during when been travel addition while generating record state this a legacy expectations, business Hyatt these transient have RevPAR time were adjusting perform levels is ahead notable adjusted business over XX% with half and cross-border that also first of limited ALG the group, in asset to impact system-wide at And year of achieved continuing strong well for that of of recovery to levels below the net frame.

full travel. force. quarter majority of once and However, improving. are segments all traveling are world back demonstrates third as rapidly the is reopened again, to the Corporate the cross-border Meetings vast are customers in now

for our the being see continued in sustained as booked optimism, our back XXXX ahead full pacing from a or and group shows into broader There's underlying of season people travel travel connection that the the for the behavioral our are serving amount prioritizing no of opinion, pre-pandemic its are and softening. It's as room which and we powerful to XX% demand Americas at strength festive higher further guests are levels. of economy. upcoming clear XX% of durable resorts growth in our business of to backdrop travel where properties, leisure demand relative propel service ample as share is than XXXX, spend XXXX the of will, Additionally, drivers our experiences managed of wallet signs

time, of at our the at million with attractive operating positive worth in of prices. XX is our business higher-end that year this segments, group customer, earnings cash leverage in the business. reaffirms our industry-leading opportunistically quarter by through The and and from months allowing invest significant derived Hyatt's power is positioning this of same model our fee a focus shares the producing the on leisure first unique our concentration $XXX revenue of all result earnings grow approximately to us growth free growth the buyback flow, and amplified and performance to Our

believe ongoing In are October, to have In the we our other to our scale for we industry. year-to-date extend achieved commitment differentiated of our that debt we is in investment-grade million truly goal disposition of provided in demonstrating liquidity outstanding we position profile. addition, care the to players reduce rapidly efforts to asset-light towards stakeholders operating Hyatt a $XXX a each has progress meaningful from our we transform our our by continue through as strength summary, way from as

last announced Our these Since with and raising momentum full hotels, deals further our as three strategic announcements of call, guidance approximately year remains to reference transform Lindner extremely we X.X%. to our rooms that XXXX result earnings strong. growth we are Hyatt. And a net special

for Let representation compelling create in to guests. me the into that these deals service for take our asset-light and our moment markets and highlight a platforms future growth broaden key experiences

German system phase our of and the new a Europe, source Representing next hotels will significantly Lindner with this expands hotels across expected this scale by footprint which key our deal strengthen of GDB join Europe, into agreement this X,XXX the the into the franchise more number our with will market collection end meaningfully these XX majority story year. growth a throughout in family-run hospitality First, a effect to business, Europe. network than of in is Hyatt Hotels, brand, rooms grows Germany, vibrant and markets by our bringing agreement XX of of brand increase our our properties the that

and of by started. tripled XX,XXX count inclusion over are Lindner, in will nearly have and the rooms four we we Europe size just have the With our getting grown years in will room past

the with hospitality new first space. of Japan. Hyatt's venture joint to is ryokan our springs style to ryokans a modern and enter brand venture luxury the Kiraku This a company unique hot to joint launch international increases opportunity footprint luxury Second in Atona, fills be

for doing our are platform underway We will so deeply ryokans a and Development of guests. plans are Atona a branded through to we the provide expect set scalable XXXX. experiences open that by unique first

brands the leadership in grow entry European of travelers of the in Europe. a under further all-inclusive third strengthening our in a and us Spain all markets pre-existing enables our This all-inclusive Hyatt five planned group immersive announcement Third, position to diverse new we category ALG a locations seeking resort of in the all-inclusive joining resorts Greece experiences. resorts owner addition attract and country into property with in Bulgaria, all-inclusive as marks

expect the to of for our deals our of in Big common driving thread guests. the brands of open resorts breadth We share the experiences asset-light enriching and majority the under XXXX. growth

have XX World one of when where of taking by Best just U.S. Hyatt looking Hyatt World's in by who alone. has the Hotel named the past in is with and chosen our in all-inclusive to and that proven lifestyle brands. leading third engagement deals connectivity drives further deepening work months program loyalty, the not expertise us track It's our We're increased stronger was are these the to at members. recently portfolio unique because This number of Program and notice, program, guests record XX% Rewards our The parties a cultivating with evident membership World

News & Road Report.

individual pursuing scale Looking a unique attributes opportunities ahead, I growth many and network beyond that development the platform of The just ongoing increasingly positive that driven we're the is nature complexity and these to formidable. organic by platform commitment of successfully operators the described financial opportunities are asset-light deals. our brand by and our owner management realization other both through

As informed this in terms progress always, creation we'll keeping quality of of and stay highly our disciplined, and both area. forward in you to look economic value

generated The XX% comparable Moving breadth XXXX all Greater to when a America managed to more ahead of in third Latin latest our areas X% levels. revenue legacy business growth first or all third third rooms of of experienced the versus and to and strengthen system-wide of and XXXX the we world business Europe, X% On year. Hyatt system-wide XX% in of our levels. up quarter quarter of now across to hotels quarter, United remarkable. In beverage X% South China. our the been Caribbean, with than the trends. RevPAR continued Asia Pacific has in quarter recovery the of franchised compared for were RevPAR nearly States up ahead and basis, Comparable the with geographic Asia, RevPAR growth was in of excluding and more The XXXX. well our trending the as quarter strengthened compared this in our has third food extraordinary major XXXX outside which strength

which the no first of leisure Pacific that comparable the that is of XXXX during in In for we quarter anticipate ahead bookings in month lag Asia business region suggest XXXX. levels though XX% meaningful strong into the periods. Group segmentation transient third more Americas quarter, revenue see as on to that Outsized been group the for the same very also perspective, levels. only than XX% remainder quarter, XX% are experienced XXXX to in the year, is higher. a revenue, levels shifts with the compared we we bookings service has we period typically business into we booking of pacing record finish the than fall revenue robust. booking and into booked XXXX of into the to momentum this recovery transient XXXX From in up at the XXXX more was rates and X% continues of basis. to will encouraged. XXXX a We the of demand system-wide during booking behavior managed more which Further, XX% below XXXX future changing. properties quarter third our experienced remain quarter have are leisure another and October, was finishing Leisure XXXX continued approximately full ahead for room busiest our

U.S. is There the X,XXX group to continued meeting pent-up we is planner of in and at the optimistic top sales demand. and was adding we've expect strong continued The see in business. our enthusiastic from tone experience acceleration optimism seen meeting leaders to demand our planners addition, a conference. near-term strength a top IMAX, In and recent

with day see demand for at into October. a notable to of acceleration transient, levels period As and in with business approximately further revenue the been post-Labor XXXX September XX% we’ve in pleased improvement trending

as have such We’re seeing manufacturing entertainment. and tech, sectors in that recovery strong certain previously lagged

our positive we customers and transient with continue ahead. the conversations months business trajectory Given, this in expect executives, to

the our established of year largest Turning having asset-like world luxury rooms to in and acquisition, I’d that all-inclusive of and Hyatt which the ALG, anniversary like growth. the one recognize moment accelerated our to portfolio as to a take transformation resorts

ALG quarter managed net by ALG package in exceptionally This the to performed inclusive quarter, third well RevPAR XXXX. for the with Americas, all up compared properties in XX%

strong, of we approximately has ahead, business ahead portfolio package remainder for of which revenue, remain first the pace showing with the business XXXX. strength of strong year, our pacing see business gross recoveries exceeded transient the momentum. post-Labor group our XXXX. longer XXXX, transient In encouraging next XXXX to XX% leisure very as maintain summary, encouraging for bookings It’s customers group sign continued corporate ahead the across year. than optimistic to with the of has our ahead Future booking and trends, outlook. we and continue Conversations and the slowing day quarter further we as shows performance suggest our is of and bookings Looking quarter more typically assess the suggesting ALG window, evidenced overall hotels of and at into through transient first by as of no expectations XX% resorts look a

with real transactions. to estate October, Connecticut hotel sale long-term entered gross case maintain agreement we Hyatt continuing the we our the to Greenwich Moving the Hyatt our sold assets, In brand proceeds in hotel. a to and manage have of in of we in million, resulting consistently $XX this Regency done as in into

and of agreement. a Hyatt was Germany that the entered In Mainz Regency addition, into the entity we franchise in lessee long-term sold the

we’ve million commitment acquisition from times $X billion announced in transactions, proceeds Irvine of our average sales Hotel multiple $XXX million of XX the quarter. With sell down asset these of we an towards realized $XXX at net last

of We additional continue the pursue hotel. launched sale of the process sale asset one and existing the we’ve small one marketing for to

high highly continue it most is commitment. we to quarter, entry acquisition both long-term durable future realizing of towards provide growth was remain be will on sell-down securing to our attractive goals. our expand and commitment confident clear, and results net We management agreements. very And barrier activity. or of sell-down for another The light asset valuations and presence materially come. at terms very our closing, to for our focused In are deals tremendous markets expected franchise progress To in strategic the any financial our to years platforms in announced achieving be we

guests uncertain results. remain accelerating and despite on is as to Joan, prioritize We see to that it operating of Lastly, customers business experiences underway. an with now I’ll to connection. and with backdrop, very Joan details no our over to our macroeconomic we signs transformation over are demand thrilled additional and you. slowing turn the optimistic provide our continue

and remainder $XX earnings our you, key I everyone. allocation morning, execution expectations will XXXX. million good share reported and share My performance, quarter third results, attributable This of financial cover Hyatt Mark, capital net strong the commentary we Thank drivers consolidated per morning, and of today of diluted of income can to for $X.XX.

record million, EBITDA $XX a $XXX of including million. was third ALG’s this mentioned, adjusted Mark contribution As quarter with of

in was Additionally, $XXX of management strength million. by were million net quarter driven driven significant industry leading the past and deferrals by our net contracts other from years. finance of outsized fee were XX% fees XXXX, franchise $XX were the $XX The revenue. Total of ALG million, growth over contribution largely and our our five fee growth and third an increase from the organic results

how earnings XX% quarter, our earnings relative are illustrating we in As excess a the result our fee-based an estate transforming earnings was expansion of model. our the of of to fee for mix revenue, real quickly

given asset revenue from minimal. is is required derived also of ALG you inherently is which If investment its level the light, commission, vacations, primarily and capital include

even Our earnings total real asset mix light to of estate higher. relative earnings is

to EBITDA the which Turning for than legacy of Hyatt $XXX the our net was for approximately XX% is XXXX results. and transactions. million quarter, adjusted currency Adjusted impact higher

environment. RevPAR size fully business benefited and franchising management our system recovered a more in from larger Our

by X% greater our As These XXXX mentioned, reported Southwest Mark with XX%. all the Americas, segments. EBITDA system-wide and adjusted two XXXX by than Asia growth above RevPAR was EMEA approximately segments driven in

half accounted in outperformance for set for net an the million EBITDA International properties and segment in XX% the impact up another same for we levels Comparable to leased rate leased basis adjusted and basis, continue increase to EBITDA while owned the States. generated over of XX.X% in the of on properties And of when the XXXX of daily in our to XX% improved XXXX. operational quarter properties, reported up of to in and United being adjusted comparable owned leased and versus XXXX for down quarter, a reflecting the XXXX to XXXX, owned margins quarter, our XX% transactions. to adjusted growth strong $XX see average points Additionally, XXX execution.

of look from group ahead strong trends sustained continuation demand, recovery seeing we’re we a steadily transient As driven leisure. quarter, revenue, to strength these a improving business fourth in the and by positive

Turning quarter. million. $XX was ALG. Adjusted to The $XX deferrals by of were were segment again performance once expectations, third continued Net and million. the net in the exceeded strength driven finance in our departures contracts RevPAR $XX million guest and net EBITDA package

deferrals assessing contracts contracts critical net represent of net business. To of past, finance net creation As revenue net vacation and include generation the when expense we how timing track unlimited flow illustrate the noted GAAP due the ALG and deferrals finance and of cash recognition memberships. to further performance, in and to it’s to of club value the

new our to a included areas schedule three results. key AX have flow continues drove be We and ALG earnings free ALG This strong of disclosure cash generation release. enhanced of in financial

the the the RevPAR in to to to by was was ALG’s ALG package Europe up strong XXXX, reflecting for package in XX% properties since growth up of revenue Americas and net due Total growth primarily XX%. net the expansion net of reflecting First, Americas. XXXX, managed significant net rooms organic XXXX, in XX% package growth same set ADR

XXXX Club X,XXX approximately XX%. Second, for signed ALG’s by in contracts the were membership Unlimited exceeding quarter, levels Vacation

of of in quarter revenue to a of resulting financial ALG earnings. from had unit strong third million. pricing. one airline strong vacations levels time quarter, strong the model vacations during very ALG And guest improvements benefited another summary, results. continues impact positive In refunds departures $X certain of posted approximately ongoing also with ALG operating and strong demand, the realized the very of optimization coupled produce XXX,XXX The Third, to and mix

for We’re expected leisure key position. destinations. reasons, an about the the optimistic Americas environment, I’d that continued above strong update fourth levels remains XXXX cash strength favorable to liquidity demand, and of and pricing for quarter including provide like travel several on airlift our also

cash, billion XX, revolving borrowing on of total September in billion $X.X our short-term and of cash facility. liquidity credit investments, capacity of included our billion As $X.X and $X.X approximately equivalents

senior of excludes also as notes floating million of restricted floating of And approximately Our restricted used a this redeem September approximately XX cash approximately notes. of of to million future and liquidity in senior realizing cash rate we $XXX interest redeem inclusive to rates July total $XXX interest. In $XXX in million October, XXXX redeem par of we notes inclusive maturity, to at interest on in senior cash hand October, use advance significant their expense. of savings

As ongoing transactions, contributing October cash our outstanding actions senior result XX. operating year demonstrate realization billion a flow. this of our a to performance are as Record free of our grade profile. $X.X the of investment strong commitment our growth proceeds and total on asset to our and direct far of was asset-like result these principal notes These thus sale strengthening is

we an A repurchased During we million approximately the under have quarter, $XX additional shares. $XXX October, repurchase $XXX our as we remaining repurchased month of million of Class Class XX, the October during common share third shares. A common And of authorization. million of And now

our make a Finally, additional I’d comments outlook. to XXXX like few regarding

to to to result a to Mark be expect XX% XXXX. the and grow we XX% XXXX between X% As operating full X% system-wide XXXX and and covered RevPAR year strong down earlier, of trends between now

in our to expense. million, approximate SG&A in quarter, any we to million $XXX bad communication second debt Additionally, consistent to excluding of expect the $XXX continue the with range be adjusted

approximately These outlook than adjusted ALG last by will expect million $XX million SG&A higher. adjusted Hyatt quarter legacy reflect be that SG&A updates $XX approximately lower offset We be will the certain delay spend a an in expense with in one savings largely and by increase and offset the legacy ALG savings for provided Hyatt incentive our costs and business. other compensation payroll investment time

$XXX for for and $XXX Hyatt expenditures capital ALG. be $XX million million approximately which Legacy expect includes to continue We million, of to XXXX

rooms net to turning Lastly, growth.

Thank third our business quarter I we positive As with to value pleased demonstrate our growth deals, unique it deals, Mark transformation the strategy accelerating one Hyatt positioning operating raising year ALG differentiated turn that, asset-light the flow. has while returning prepared model net approximately my our after with is operator brought for will X.X%. and leverage remarks recently are by announced conclude and which our announced achieved mentioned, proud our same reducing free creation to excited The long-term very strong strategic recently are leverage year we've time, and XXXX you. to results, accomplishments full with we continued to our and guidance for growth, our record shareholders. earnings at acquisition and are fueling saying in our And advance back model. We're and to Q&A. the the of rooms cash capital I'll

Bank Shaun America. Kelley from Please Thank you. go [Operator Instructions] of ahead.

is open. Your line

a and for Hi, on quarter morning different my what's up I'm the looking just fourth implied X% guidance – color that? of And to by way that, through in of that's the the more third the saw puts what's But you where get was quarter? it thinking be year-on-year walk or quarter about in with Joan, we're Thank there maybe if great. of and Good than know Mark might better little And little is driving question. global. bit a kind the here kind outlook? fourth everyone. that XXXX. a us is at core taking is, kind I a curious what we're bit just case? quarter bit Is the you're implied as some ways your versus disclose fourth quarter takes versus both better to little of this third the in trend the by you

little the a the range add a point quarter, increased to say the quarter. at we range about that reflects to of Yes. on bit guidance would I I'll a fourth and maybe midpoint our the the Mark fourth for then Thank Shaun. too. you, same wants better start bit about for

for for both the are – we're quarter, on side seeing with confidence the we bookings at, are we that AMR forward-looking the quarter XX% the that – experiencing for the and quarter, the building between in November look and that properties. in now we in fourth extending bookings As group group third we fourth here the the XX% up have festive up period quarter December,

of some and quarter above those us in out numbers. seeing confidence be these we'll are compared the what's levels that we're So, XXXX embedded that's in giving to or our longer fourth that bookings at guidance

Yes.

very when finished pace-wise think – X And think, in X% I said. what shortening I I state very, October exclude and momentum We what agree Joan October will were finished dynamics, group, is September for business of you with this October if by said, Greater well. we months and give In example X% up sequentially I'll ahead XXXX We curve, China. palpable. think points we us. Joan you clear the to very really, we booking illustrate that XX% near-term actualized one ago, minus about of Six the were just to above. just It's this the year. booking October

We corporate is just Total transient, the curve can above continues to have October So impact close good and X% you what see shortened the yet. that don't breakout Total of September. demand revenue we month. a was transient could sustain. for booking significantly

on confidence fourth into sort into not with So of fingertips, quarter. by quarter actually walking our but we the holding firmly go the

follow-up. maybe as color. Thank And a just the you quick for

what line. business than I recovery XQ going little lower we've a things think is contribution It in call bit relative seems EBITDA the of with group sequential to One about just like was we've seasonality seen it, there's for the across dynamics XQ as on the lot know a broader, leisure. cadence we in past. the noticed and Hyatt and or

is some ALG kind the trends, around broader these of the given and – the both broader different actually just how are we more the off. from if just is business case? that about forward of the that contribution maybe owned quarter-to-quarter little bit a and look and the think I in stable broader as mean, pattern, mix? then But about we to lease channels think Just changes think about the just portfolio

Yes.

I think going that think, fundamental change, seasonality, reflecting the the is up answer to is more I end a change. a

some would of Vacations some volumes late typically in have in saw seen surprise leisure because that of filled September that they a ALG from into in were For October bookings welcome sustained. past the we example, that that gaps years

business think that transient post improvement apart from component – comparison Labor significant the post September, And well. to significant and – this we've we which saw in as our fact XXXX in so post numbers what I very a but leisure is When Labor minus expanded Day very happened obviously to at improved group we ALG, QX overall, to we that got continues transient from strong look compared was business and we XX% total minus levels, Day, – which XX% in the of year. an

business travel leisure. in And as group well blurring between I and and that say so transient would – we there the commercial activity as is a of course versus between

out typical of So seasonality, end because some these historical back said, what is those XXXX XXXX of seasonal quarter relative to a patterns the the to and going there, and and you to like that think trends I think XXXX bit third dynamics. if evening little went I is up

much. you very Thank

Sure.

Our Joe go JPMorgan. from question Please ahead. Greff comes next from

is Your line open.

Good morning everybody.

Hi, Joe.

Good morning.

ALG which we through you earlier, do momentum footprint, things think rate growing you in quarters, sustainable that what some is on as discussed the growth about based two Given obviously pipeline? in well the seen know rooms the X.X% net Mark, the of now last you as the XXXX

Yes.

in of how gone market of fact we've lot the made this year. to we've modifications a is think that I terms

workers hit, lull materials taken sites because We contractors get and a the experiencing the primarily expected sites. of United the hotels on select openings openings the to and are have in for service in really States China to get to job inability and job to also

really But lockdowns some now on So us improvements. other the of also have really seeing cost the that, significant serial we're side significantly.

important And so in couple we've hotels of opened China of beginning really October. at the a

to this. for give Just you some sense

And So that's the in we XX,XXX huge let the to last half than going of in think half close quarter something other Lindner transaction. our finalizing – in wow, we're year, now, October belief expectation me booked rooms. into that's that And the X,XXX of We might you I give you other that a of say, that more is little all amount a and X,XXX rooms quarter. hotels, along the open is opened context. is very portfolio. that the around is rest our fourth or arrangements are rooms the against of the to Right well across

were – X,XXX them we were seeing I ready a got things slippage those we open in that delayed. now And places. expected many got we're October to and you tell – got be So that you've different earlier, everything pivot to rooms of though lot lagged, recognize even that can to in we've but is opened we many,

is portfolio this point well, us give working, are to to openings to great And the rooms point that So, and we've have which in net actual into got near-term. confidence deals which things sustain other that firming going year. my we're we you to on we're growth next

Great. Excellent, thank you.

you. Thank

from go next from Richard Our comes Clarke Bernstein. Please question ahead.

is line open. Your

taking Thanks morning. for questions. my good Hi,

bit maybe of a Just NUG there. a on question the clarification little guidance

is Lindner included. got that at saying Lindner I've you're So about XX%.

deal? you've because bigger. bit help in it's ex otherwise Lindner little about you guidance backwards Maybe it know just like you gone Lindner me on got And did QX? NUG looks the a can understand just So

No. We We finalized of final the Munich. portfolio in had could for had come November didn't know it early is sure would visibility What across it to and get confidence that the We how negotiation. announced much we Lindner. we in in that done.

meant – that do say, early when So what I I I that's October October. mean apologize, to early we is

to enough we've precisely rooms knew how the why we was we And first embed and outlook so yes, across. with in it confidence Lindner. this the come – had Lindner family. modified about is our reason No, we would not know And we didn't hotels because many done deal

We best which Hotel – actually, now have – them, three the hotels with this two was the other recently. which brand, as we under hotel destination opened a will including Ibiza the week, in have resort of is XPines Ibiza that coming in Hyatt rated

yesterday. family the I been lead is direct to And in World before. been and the reason with our working he did experience performance quick who do what hotels with to group Hyatt to why these noted in we've members respect with So respect able penetration such have that in of And together of we channel the because phenomenal. me succession to spoke the

of I number is of activity we network market for come what terms the Canary move things all-inclusive market in It's and base. one Germany the Islands, where the a presence. have the feeder for think is Balearic two Islands of significant feeder this our shape this resort to So the nature very important number the is because

them to do. So representation there's for bring our expose World resort what Europe. to in It's extend not now just trying to customers an play much for Hyatt and It's and and the into we're to of a Europe. Germany also portfolio intentionality of additional millions bigger

on Maybe topic. to at on M&A a organic that's that. could portfolio that the many maybe do you deals with that for how answer out of follow-up is why thousands your If groups once? you rooms about just I to you they there case, And where question these opportunities Thanks do bring sign talking other doing M&A? guessing more there? mean, optimistic. many might are that Why out deals are there? be need of these you maybe quite Are

never trade-off. to be We've a considered

view since back we dramatically – ALG, are we've underwriting fees we example, significantly I see have bought for revenue fee total I our for – itself. our key have trending ahead and that we the pipeline and of relative grown and roads speaks for per if transaction, that hospitality, group. for in we done look our to performance think, the total what Our I two

of high-performing And third-party have three you deals asset-light and in detail go in resorts. to Miraval and has we the any in the on are deals And are also East now I'm manage Middle Europe developed constructed into we ALG. signing to globally and dimension third-party questions, working Asia. If happy across any U.S. Miravals or

to – unsatisfactory be is guess that brands tell this – on paid luxury then allowing concentration you have us lifestyle leisure year, are that as these we that all productive that's the really or decision not our in we this what that would – if would So made. focus, giving we would it them, the evidence I the year is we had historically I after I And proved especially keeps gift and but contrary if do after deals off, notwithstanding, perform. is platforms year growth the to you shouldn't say and has done if be to

And out there? maybe the on visibility those any portfolio just the of deals? Are there more

dynamic The going whatsoever issues. go any of fact detail is, into to not I'm competitive because

going we nature. people presence addition our largest some result resorts competitive the of and decades-long of have hotels markets is will in are of relationships a we well – AMR of positioned lot Europe brand in say to we marketplace, very, and I What have largest AMR luxury understand portfolio with – managed we portfolios, as that what's the player, their a have transactions in and imagine both very world. that on the who a those some the of and in the that exactly can all-inclusive feel are in long-time of the at You families

position So we have of to a unique transactions which kinds seek out. these from

Very useful. very much. Thanks

Thank you.

question comes from ahead. Patrick next Please Truist Securities. Our Scholes go from

is line Your open.

Hi. Good everyone. morning

Good morning.

give next the how type Sorry, expectations if quarter? little a net Can trends, year? any earlier. ALG this the trended growth you. unit bit color or in Thank give Europe us the specifically your for you color that I and And group about that you in that Caribbean, on missed for if in of can of

Yes.

timing openings portfolio. XXXX XXXX is the bought in a seen thought assets. by did So and opened, – United Mexico, when of would that the company, we the pace the we're construction terms construction the in we virtue pipeline say we we've I at we in built that and of than expect would year-to-date we the in seen XXXX the of those can up the hotels not What in that growth looked got XXXX. of continuing first in be Europe. and pace just heavier challenges that getting States of be XXXX of challenges a then the in really some We've have unlike Caribbean much number and When lighter in XX%

to Those going prior continue to relatively apply our reminder, the to strong. we're And our – prior be was as Hyatt, momentum answer to confidence my but to not ALG question to well. is able the maintain, that deals. about portfolio just So

So performance our I we say continued that growth or feel expectations. our XXXX would above very, at in is very going good and about

Okay. a Can I follow-up ask question?

Sure.

know you. pricing but from very like room hear room that rates? see in on suspect the stayed you. I from we Thank in it any rate Caribbean those all strong I’d the growth for you answer, Certainly, and customers Are to on I – to pushback starting inclusives. room

No.

to not. is We’re in with XX% you pacing tell I respect that bookings, the to QX the up portfolio in XXXX is pacing QX XXXX. to plus our ALG would XXXX. mid-teens

year-over-year the and mid-teens, is it’s of in up the vast So majority that rate.

outlook. it. abatement macro demand, used revenge call a no see there’s we what urgency, tell pent-up whatever a to they I’ll is that’s was human to turning you travel here. certain So stress that now there’s behavioral do the COVID the What to demand at driving work that extent. it that. about or fundamental And travel want you nebulousness of And aspect What call a be maybe into that’s

isn’t people problem. a that problem know. just have issue and The Of have is that there’s don’t course, people certainty going uncertainty the that we’re to

is So looking are that people to sort manage. of financial stress or something that concern

because be inclusive stop a wonderful all it’s antidote a to shop. so, And turns to one out that

a an you. we of You into you relax. exactly provide an no going you ever our experiences get and got certain property, once of, can have walk you don’t much cost amount to it’s idea on end going that it’s what that to how number guests. up we’ve And pay costing you And vacation are truly you, growing

that continued going this when in time all believe less strengthening people a vacations may be I things some demand for a to inclusive of renewal of other So and need when at respite during certain. see we’re their period time lives

there. at a very all I’m statement is set. That the end true Thank you.

Thanks.

from Our Please next question from comes go Dori ahead. Wells Fargo. Kesten

is open. line Your

Thanks. everyone. Good morning,

Dori. Hi,

the annual guidance? EBITDA Hey, the bookings, Mark. need What economy comfortable see returning make you whether you an window would providing to booking it’s to feel to

question. great It’s a

were consumer we learning behaviors think, still – how I evolving. and they’re we’re

where I vacations was performance think the the performance, evidence the third of vacations quarter’s that ALG outsized.

we I And mode. generally EBITDA their from a learning in was they But Now, got been remarkably some air just But the because the huge quarter quarter. help volumes some of think had for periods. so say would we the have performance on in speaking, that in strong. we’re But also prior rebates little that travel got there. the I help portion

because it to over I portfolio, booked amazing X.X that going us think at much be rather million give point. because that gross gives billion are is we over But travel and what it we’re platform $X handling predictor believe across continue we evolve seeing us visibility. passengers to of value behaviors consumer doesn’t that this

say asked, it been you would that discussing that about I seriously and So just actively. the we’ve question we’re thinking

coming And and and but past, this years lot are for some follow-up can really for year it’s things I going be hope then. now depend and to then. we now how the a talking whatever provide provide to to practice on about evolve in guidance topic we’re between our the visibility, discussions between As is to more our we going call. in going our And February

be but headwinds RevPAR tailwinds when This just Okay. expect consider said Marriott year-over-year that we increase know a expectations in may just Would to those their the you quarterly, stretch on you XXXX. then, that call today? they and share

let I take – think, Yes, back. or just me a me up let step

reasons that are think believe. to I there several

So let believe. I me why tell you

and be quarter X% sorry, relative We second the first XX% that the to XXXX, is of we’re quarter. Omicron. were in XXXX, down going to first first XXXX XXXX to in down XXXX we quarter were to lapping The to

So hindered we are levels. demand of lapping period much a more

when story. supply. has it of And you growth will demand exceeds that slowed, period do demand end in supply, sustained simplistic believe pricing. I have a way outshine to Second, continue supply usually, And

my our in need significant to course Third, four China in very those new growth. entire of years has would fee And year-over-year. those couple increases are its improvement Any rooms over on volatile list Fourth, massive five four. base. if of on fill rollercoaster in And producing more that four, been is stability net top the a the back a be we China – leading going six out have rooms a you industry year.

early that as respect month headed wage out make data. it’s with starting hope part does and to believe more are to is to feel rate would we we to have trend still First, stable. It peaked we describe feels say may too one like not I that inflation. something a that part

and we’ll about check more a few with talk So me in months in that topic.

in Another still still occupancy chunk big have points than we’re that basis was one we China. a Admittedly, is lower that We – it of by that have is running driven XXXX. is XXX to grow. room

relaunched we overdo into So are And the prior expanded perfectly what final that. I which FIND relief our is this our answer which for believe question, don’t to an platform. strategy, is, rolling to to wellbeing into and want set we’ve out. said reason just stress need We fits got that the to – an offering is our

of is, Hyatt And that of the available what our guests to make If practices benefits you to of we don’t it’s wellbeing seek all-inclusive. know and please and go FIND it out. number a hyatt.com world

China those And So while it how as a – opacity four China very to lot are with this of are respect to had year. very, going let’s year a top face evolve year, they is difficult structural. very, though this just

make going is improvement tend any to improvements. So to

those reasons year. that why we’re heading into of strong number believe another So we a are

Thank was you. That very helpful.

ahead, Our light Pfennigwerth Please from ISI. go Duane next question is comes Evercore open. from your

Nice speak thanks. to Hey, with you.

for dispositions kind of to you basically does reduce And on speak of appetite sales? success your on the Just tone sales, just fee asset the the conversations? current can or front asset

in real We’ve years. billion over of five sold estate last market. in $X very experienced are the we look, worth Yes, this

we’ve that an say player to is not been significant if a active, So understatement.

So things on we carefully. There’s now. track very several this right going

look there who’s are not always – at active, where’s who’s different. is We The money the and active. first

REITs in of between favorable moment. precise are seeing REITs So process in which in debt, the includes this because there’s their of funds. cost an at REITs. are actually rates is underwriting right are and calculation What the at equity private opportunity about not level the are and unprecedented a now not advanced in equity But private somewhere you point. market and market they’re

how So is we and about we new to We’ve that that – where evaluating what for trades what sell properties off. demand going looks be how demand and disciplined constantly that’s price. like, robust the been the are extraordinarily for – how

of dramatically in the We have outperformed that our some own any we’ve and seen outperformed valuations parts expectations reports. analyst

far much discuss terms evidence the equally that large is remaining any we’ve in value portfolio of meaning strong I’m got this sold. as don’t even least valuable at as not of portfolio. as We’ve least longer. at assets. quality a saying so the to got as So as the And it’s real high of concerned, already as that the we’ve a I’m the need portfolio we we that have estate very

see there’s this see So future not see what We do market’s that at in and periods. dead. is strength and We time. very the also significant strength pace we What into booking remarkable deal a moment bias that luxury we resorts towards see?

realize relatively values hitting end paid we’re like activity long-term to securing in to So we many we very contracts, period excellent ways, well deal and feel able up being really excellent getting respect if with and a wait. drier to

to exceeded mix So already total we’ve of XX% owned relative in assets. our fees

platform. inherently very, is ALG vacations But we’re in mix, is even include paid I very an think that the well. it’s you that which fact is fact the If getting higher. that But asset-like

XX%. net a higher quarter adjusted XXXX, basis, Our and on own adjusted was third FX of versus EBITDA transactions portfolio in XX% XXXX the

a nature. concern, to XXX got most And possible fluidity $X in and by down basis the efficiently lot And in great marketplace. of And year, margin expansion points our returns these believe in meeting of that of work we’ve drive have that the of and other sale conditions hand half about activity. fantastic to sell are you’re in short XXXX. next the zero billion we do and one our and going over effectively means hand that whatsoever net So second I cash see more disposition opportunistic activity, end term flow. operate none the by

I how you. would to that’s So describe it

for very that comprehensive Thank you answer.

last our take we’ll please. Juliane, question,

you. Thank

question Rose Smedes go Please from Our last from comes Citi. ahead.

open. is line Your

ask I club the you. a about thank just wanted you Hi, little to bit vacation sales. membership

You that line about a more function of versus what were the forward over were to going in mentioned that Is certainly of I’m we venues just selling it’s because think think about should of X,XXX the sort of they third Or sort forecasting? than how higher contracts. over XXXX growth to we quarter are up contracts? that contract trying XX%

tiers. great seen in club rooms is a effect result we’ve Smedes, what from within network coming the of more some sell work the itself some And We’ve program contracts. sales vacation of that And with we portfolio. ALG the to very growth experienced through the net the of the done tiers found this new also That contracts. and the different that provides members. that are unlimited creating higher opportunities is on we’ve popular

UVC and also the So has proven to actually to the Hyatt for – of of the working and incorporating benefits strengthen World program. Hyatt World into and benefits integrate AMR the benefits, with provide UVC portfolio more

vacation lot a So to also also of we’re contracts we’re we’re just seeing the point all durability are that club. to interest And unlimited with of in things those greater respect fuel out – signing. helping to want that these

extremely are uncollectibility of type any of rates low. Our

deferrals find more we’re earnings point including what’s finance between to economic value we we’ll useful again, I contracts. think those that like the items for to behind in the in is which of ALG. that results provided cash I’d So helping out and some give the the disclosure drivers two net context in That our just to explain release, net just

So the that earnings the those hopefully give further release into context on that also and numbers explains growth this provided the drivers morning. behind we some

Great. it. Thank you. Appreciate

today’s have Thank participating call. you a wonderful will day. conclude this for and And conference

now disconnect. You may