Hyatt Hotels (H) 31 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to the Hyatt Third Quarter 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded. I would now like to turn the call over to Adam Rohman, Senior Vice President of Investor Relations and Global FP&A. Thank you. ahead. go Please

welcome Call. and Third XXXX Quarter Thank to Conference Earnings you, Hyatt's

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

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

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

you this earnings our can website at our for to currency on that measures noted. references of Percentage our link reconciliation today's will call of Investor Financial section a archive website in to be find Reporting morning's constant non-GAAP stated, rate Relations referred release. on in during In An on financial average disclosed call are of hotels year-over-year Please the a basis days. remarks changes unless daily system-wide this otherwise RevPAR hyatt.com occupancy, unless the and basis. under note addition, a on reflects XX comparable available and otherwise

to the Mr. with Mark. now over earnings Additionally, we Smith to of And turn strategic have associated updated other alliances. now that, the release XX schedule our hotels Page and and inventory include I'll on call rooms with

for you and Thanks, Adam. morning, everyone, joining us Good today. thank

Fund In to United provide the damage financial to quarter, the hurricanes by in Hyatt Hyatt together have those support Before I come States. colleagues in Care caused our acknowledge through the to need. would to recent I like Southeast response, turn

are to including Hyatt differentiated London. cities over who our so have owners, vibrant we they are The met spent stunning many safe. with teams me I of trip visit their thankful future many standard globally, that in for newly while in care for world. filled best, of also of delivering branded opportunity exciting Asia, and for months. that the the the high-end in we standard the we opened Europe brand colleagues and visit the and representation several and I most travelers a markets openings for in these a coming excitement The colleagues can the guest our are Hyatt's in across time where to grow the hotel flagship serve. times in Our of is as like Park Hyatt purpose be one I our to Asia to people resonates Bangkok, preparing recently with hotels segment with experiences international across left continue each new Park

the to turning Now quarter.

quarter and in period in XX% and up of festive quarter the XXXX for XX% reported results quarter resort number record Hyatt up we up and model the third our months reflect growth of XXXX. all-inclusive the pace pipeline Transient number XXXX. asset-light XXXX, demand of Our X% rooms our a in strength members. This properties slightly gross at fees, including despite of business over record flat the and Greater of weaker in America's headwinds growth X revenue States in first growth in China. first in X% the and World first over was double-digit certain morning, from and of decreased of as the quarter, Through up to Americas X% strongest travel continue is by the prioritizing consumers to RevPAR driven RevPAR revenue approximately luxury system-wide our resorts we period pace the high-end the of over and renovations is festive transient resorts over compared is Maui. Leisure amongst United brands. the see

approximately rooms with service week. over quarter, in holidays the pace up election X% quarter excluding when holidays X% accounting the properties in Group the October is managed increased and next otherwise shift Group the in U.S. strong week U.S. the is revenue of for results full for and and both Europe. U.S. election fourth flat in the the and timing Jewish

half compared similar of we XXXX and As pace group accounting for rate increased In markets revenue X% to the business largest from rate Business United deliver approximately up revenue approximately customers travel. growth year-over-year average recovery continue the benefit urban transient to continue of a at growth to XX%. to States, that look is XXXX, increase. with up with the over major

as XX% over to the the We penetration engagement realize the million reflected months increase Hyatt High XXXX. World of a end, members, our in of membership increased World our in quarter is $XX growing quarter a spending same room our new exceptional X base. third our has cards which million period members of the first compared continue milestone at night of XX reached record see results. XX% we the increased benefit Loyalty XXXX of from and through year. also credit membership on approximately prior And direct co-branded to passed

the as hotel World one programs Finally, recognized U.S. top loyalty of was Hyatt by of

Report. World and News

expanding attractive reduces growth collection to developers. membership even size more our to and greater and brands, costs, room makes us increased acquisition of believe Our customer we members and which while night world-class benefit continue owners system from our penetration

XX% quarter developer base. evidence represents UrCove existing among continue to of especially room see Greater High our rooms, for XXXX, reflected our signing the of XXX,XXX which significant XX% owner Studios activity, our United approximately record. We China increase account third of This upper brands, of and The by States pipeline preference expanded new to mid-scale represents to our Hyatt. and in and and compared pipeline, an a

all-inclusive Ziva in our in Pacific, saw also Zilara Hyatt signed the brands in the We signings Asia that first among resorts healthy thrilled Thailand. I'm Panna Hyatt and we all-inclusive our Americas, and

formation This hotels by existing a strategic announced Land presence that venture expand collection of Hyatt with have joint and the joined Resources collaboration X recently across brand by Unbound JDB to includes Collection the and Hyatt's China Hyatt brands. the also We agreement China.

Additionally, JV, signed projects, existing China. Land and [ agreements Hyatt Park two CR [ X have in Dong relationship ] Land Hyatt CR from new Andaz ], and properties deepens Xian and including with who the for own our separate luxury Hyatt-branded wan which

several this development brand quarter, luxury net markets. the flagship a Africa notable Americas, Alila we growth there our During and quarter, achieved openings in first the urban the luxury of Park Northern third including Hyatt Shanghai, in X.X% the in Park were rooms of for future at

Grand We Grand the Kunming, XXth Greater hit in also the Hyatt opened China.

allows to Our our while markets expand to opportunities new members for future. and into us openings the into provide with us growing guests pipeline our more engage

Turning Regency of On XX, billion. Orlando proceeds gross hit significant to transactions. the August Hyatt adjacent for land of with the we a and sale milestone $X.XX

marked of disposition This commitment, in asset completion our the announced third which we XXXX.

period, X-year billion realized at the acquisitions XX.Xx. of proceeds of a of we net $X.X multiple gross Over

the each significant remain our desirable highly completed the to Central disposition redevelopments, proceeds of and magnificent While York successfully Upon upon closing, we will sales we location. receive will new ownership. Street, reduce our we Liverpool redevelopment. expect Andaz New have third contract completion from these hotel for and under both commitment, hotels continue in Grand Hyatt we to

XXXX beyond. discussions expect are and Additionally, sell and to hotels in engaged more other actively we in

acquisition fourth the Standard, approximately the International, and our joined closing, First, and in further acquisition rooms Hyatt X we XX agreements segment. X,XXX the XX At the quarter in with Standard bunkhouse the which completed Standard enhancing executed rooms. X,XXX of to approximately will includes position pipeline brands, Lifestyle the totaling hotels add

In more resulting we've projects the pleased a engaged to than letter share that inbound signed acquisition. projects, already we calls from new in XX addition, intent. for or since I'm announced of with there additional including conversations residences, are branded also agreement

long-term fills by of signing with room XX Hyatt's over we This an Hotels joint venture XX, October manage be to Hyatt effect strategic over XX%. a Bahia unique at expand resorts all-inclusive On to rooms will X-star members enhances upon operating the the and expanding announced portfolio added are expanding Americas transaction and category, enter and points. brand collection offerings a XX,XXX offerings space our own portfolio. guests closing, opportunity of in totaling multiple Principe all-inclusive approximately into this Hyatt's to inclusive by which white Pineiro star Resorts. network our resorts is X.X our and Presently, XX% to all-inclusive properties, Grupo agreement our price open to the in in inclusive

multiple management from the acquisitions which Hyatt multiple $XX been $XXX of close asset highly million. and approximately and of the we while hotels of billion from from will to franchise growth. reducing The value. of we expenditures leased details at the months, while XXx, net approximately owned capital once historically an adding in and sales over which coming million our overall to shareholder is $X.X years transaction by a into ago, at business closes. proceeds transaction owned our and We've traded. reduced asset-light EBITDA realized asset-light have earnings results our X $XXX gross by permanently of annual anticipated the transformation sold We've provide accretive adjusted has exceeds in fees million committed to investing durable The more hotels.

approximately total billion a Roads International time, Leisure same at Apple $X.X X.Xx. the Standard of Group blended and have two Dream including platforms, asset-light Hospitality, At Group acquired a multiple we Hotels for of

our will cash Not greater sales, standard manner a ALG, drives for have and from exceeded to we two and to have for asset Dream that continue underwriting those expectations do do acquisitions and when only and have we more so We the Roads in EBITDA replaced both flow. free much we same capital-efficient but expect mature.

share including this Additionally, $XX.XX weighted per to billion have we a buybacks returned billion share. during at $X.X $X.X of of price shareholders, time,

Our value has while fueled creating strategy growth capital significant for our allocation shareholders.

International. we stakeholders transformation, the evolution celebrate continued successful earnings the In lifestyle months, benefit Chairman led we all all former him of world-class to Amar new a innovation to by our standard brands Standard his Hyatt. international While designing recognize we to the group, and our colleagues the and essential will into Executive lifestyle future. and debut brings coming is delivering I'm execution experiences, excited expertise and Amar Lalani, welcome of exceptional

group key and functions of for luxury. services be We leadership luxury pinnacle a across the distinct at on focused dedicated customers guests and will with forming caring also

welcoming more the We shareholders. that creating and significant leverage more customers while building brands. owners deeply even will capabilities deepening allow preference talents. Hyatt with value for across for us continue to We for believe our this while we've colleagues alignment to especially been of hotel new will guests, each unique further care

results. operating high and other now for caring each over I our you. all by every purpose more gratitude for details our on provide would my our by Joan who colleagues live all of close Joan, will expressing like for to stakeholders. to day

Thanks, Mark, and good morning, everyone.

During meetings reflecting in In increased momentum quarter, by RevPAR increased business was system-wide increased group the the and over X%, and continued States, for X%. quarter, corporate RevPAR led third United strong travel. events. social the Group

booking the Associations to Americas, front, for we reported leisure was leisure activity hurricanes. the accounts, have income our the of experienced higher domestic in Despite in last wildfires increase travel in approximately the of drove rooms year, driven travelers. revenue lapped United last that and by business travel, due we negatively the led approximately are impact and X% an strong travel. RevPAR sustainable. increased comparisons year, hurricane the in quarter we transient Americas growth earlier In forward and of especially challenging the in by and major demand properties last benefiting decreased net headwinds impacted by some RevPAR in Mark States, mentioned high hotels also unusually excluding the and to all-inclusive China, supports Greater continued corporate the below the year, challenging was X% international activity from the large levels as RevPAR on Maui outbound levels that confidence X% group package continue lap comparisons

government we measures targeted was domestic domestic September down While international boosting in inbound stimulus are by enacted and travel The the spending. experience a on did at late X%, travelers. moderate increase

RevPAR improved quarter. the seeing October the from And third month hotels while in compared with still we're our results early, of

Greater China, large saw to year Greater the excluding the Pacific, and by we In from Olympics Paris produced travel, quarter XXXX Europe, XX% events significant driven South double of RevPAR Korea, increased coming were throughout RevPAR with the and in Germany. as digits increased Euro great Japan travel international the growth India. inbound rest and in of of RevPAR XX% Summer well. China international notable due to These by Asia compared strong States. and up in drivers travel once and again results last United inbound approximately with demand

growth increase Our Canary by and our combination $XXX package the in driven in from Islands. growth from European contribution our other the net most RevPAR fees. for system in the properties Europe million, a properties. fees and Franchise impressive co-branded fees resorts greater RevPAR, due our managed in high of We demand UBC and reported and in fees increased all-inclusive base our notably growth XX% up and Balearic growth XX%, reflect to card, opened to non-RevPAR from produced of newly due an RevPAR the in approximately managed fees hotels. XX% Growth quarter increased size, credit fees newly opened of franchise

contribution from hotels Greater renovations Incentive in fees events, were from Pacific, offset Greater hotels Asia China. weather impacts and results from and flat by with Europe in strong China, excluding

flat driven the segment EBITDA and increased full leased when moderate year United States and the adjusted segment adjusted in Management margins results. impact EBITDA increase we to increased XX% of increased and to in X% by compared for comparable for net Owned Group XXX to for Strong fees. the demand achieve approximately expansion expect to segment continue transactions. rooms our XXXX. by and the revenue and points to owned Olympics of franchising Paris. the XX% and the for basis hotels portfolio leased increased Turning gross our and Margins adjusted

Finally, distribution the call. during segment's by EBITDA approximately UVC we second the our consistent transaction, with declined expectations million when our excluding quarter communicated earnings adjusted $X

million million common fourth shareholders. compared the quarter, year. stock, Class Class third last last million grow approximately from to $XXX an year. quarter third excess total, $XXX In of asset million A Looking EBITDA In of repurchased the returning adjusted to to to compared X% we was ahead, quarter, sales stock B by proceeds $XXX of EBITDA, anticipate $X UVC, excluding we common and in increase adjusted

$X million XXXX notes $X.X for under approximately our accrued approximately billion And $XXX to quarter, the share debt authorization. remaining We total have approximately during repurchase outstanding of interest, our reducing repaid the we billion. inclusive

our liquidity $X.X investments $X.X We capacity XX, borrowing revolving facility. strong. total billion of equivalents on As of investment-grade of XXXX, our and billion our short-term and sheet cash approximately $X.X committed approximately billion is September cash, our profile credit in and remain balance to included

earnings on our I'll XXXX. outlook X of cover release. Now can found for Page The details full our be

results to the timing data result Greater reflects tightened in PACE December in We RevPAR for as quarter. pace November flat transient the to of and China, over third our the group results ranges have quarter. to a RevPAR trends encouraging is leisure and month lower-than-expected election, the a excluding third October-to-date Jewish festive the the October year, holidays States due fourth quarter. solid and and In is the U.S. United improvement pace China for of preliminary the for This Greater and activity improved meaningful sustained period. last business of

current expected anticipate fourth growth be RevPAR XXXX. growth we Greater to the flat third RevPAR growth and RevPAR range X% adjusted assumed and is stimulus be of holidays outlook the XXXX. United the of to anticipate the growth Global growth take system-wide fourth China year leading these X.X%, X% the the U.S. our in is to RevPAR full RevPAR want full year I is that full as approximately in for the to be even in to to with expected is year to in EBITDA. quarter the ranges a And of of relative X% continuation to quarter. that third measures and to Jewish clear quarter for elections. We effect to compared trends States fees timing similar quarter will improve

RevPAR high we exceed by growth markets the finally, end our other excluding expect and Europe of in Asia Pacific, international led to Greater range And China.

venture in We last are expect X.XX% at $X.XX billion be fees with ] a the to we our to of expect Piniero increase growth joint the to year. of be expected range closes in the XX% Grupo midpoint X.X%. Gross of $X.XXX to of range billion, early X% to net in X.XX% compared the range in rooms XXXX, range [ is a would to

mentioned, prior quarter Standard in just accounts I for incentive and also International fee later contribution than accounts expectations. for updated As third our our the outlook closing lower-than-expected

Adjusted to flow expected our to at $XXX is million, expected to $XXX million with asset our the million of to midpoint of range cash $X.XX from EBITDA range is approximately which cash Free the million X% the last the includes million to a billion, $XXX related be payment $XXX G&A to $XXX of compared of expected is range of prior Adjusted sales. year. in taxes consistent be to range outlook. in to million $X.X increase

capital share program. business third In closing, completion shareholders of model Finally, repurchases to our the of of and asset asset-light results our and quarter our highlight including expect return strength billion, approximately we successful $X.XX disposition the dividends.

Mark owned sell strategic core And enhance well to focused benefit through are and stakeholders to future. importantly, and strategically our on into our to excellence net the we This As business network continue to mentioned, we will grow year assets our beyond. growth concludes operational continue next all remarks. prepared rooms effect

as as like to we would and Q&A, Now one ask we turn question like would you to to limit of that speak permits, to yourself with time many and you would

Instructions]. [Operator

question comes the Joe The of from first Greff line JPMorgan. with

if shift? you as year sort about updated you're rate contribution. venture, it this might the reconcile not And Kind us of I acquisition, organically, help the And most frame talk drivers know out to you but know, can I basis? with presently? don't maybe pending net to X recent then a But quarter like looks you talk contribution? about about maybe maybe Can a next of for that relative X joint -- also it's of your rooms can be what incorporating it you we on run guidance. sort of thinking kind X-parter on years a then think respect the growth ago. about down of the how trailing rooms just gave XX-month you the through EBITDA fee can

much, Thank you Joe. very Great.

outlook for I rooms few net On the note. growth, that a things to want

that The Part to first slip, of is of we're X%, gross are expected to this X,XXX construction yet. be XXXX lower end our year we say, into openings over the expectations year the hotels not that slipped and our under for than openings that because of are or is expect of at over I should rooms that slippage

So and be deals working they may to significant rooms. of who on knows? we've pulled a been conversion up forward some that that number aggregate

So that's update. the first our development, I say, would from last

is typical the attrition expected. which rooms run which been our second significantly we and has X%. X.X% higher X.X% It's than higher of like came between something than this approaching year, in The is rate,

of our move in portfolio. our XX% standard And difference, to with that and or of that with affected market-specific agreement renewal hotels issues some certain about has difference that brand do to forward

Some is would standards. that a owners that brand of more to to moved, couple district we has In business the markets cases, and I looking on central challenging we of agreement with it hotels or representation. new for say, have are where become, bringing didn't come

of out. or first remains of no counts maintaining though, few that openings with So are of thought outlook I'd hotels that intact, gap structural mentioned and growth conversion just part and a for year first momentum in to X%. discipline net the experience that came we quarter of expected other where X we're course, million gross room the elevating The quality slippage I things out do quickly. year-over-year of that of just looking standards our are a into And has forward. and larger to a this range overall rooms open with hotels were to portfolio over going our systemic might growth while, X% there's to organic quarter, the tracking There of in

hotel and ongoing this generally. pipeline conditions and by growth increasing construction First, significant our development for is supported of improving starts

like last significant may units covered homes be agreement is have that we've deals you. included partnerships that or the that outlook rooms associated in rare with affiliation engage in to residential rooms cases, conversions and be, are management whatever are of level under expect gave affiliations had or portfolio in I rooms in not or several a they growth franchised growth time, arrangements that just the future, and in purely over this townhomes so-called affiliations or activity is form the And other the and franchise bills benefited whether we or Second, our us also either organic we third, managed not or loyalty a are conversions, years, net or especially including period.

hugely we cannabis. as mentioned, been the AX, just have partnerships, we on that already Adam way, included reference, we we on and These have additional net that. fees, on arrangements by Mr. room for our correct? hotels you and but part the of Is have that do calculation. That's Schedule Smith which that purposes rooms included see Mrs. successful your count are As and information AX. not rooms booking could through for of Yes? under earn those

to So story whether the and I quite the confidence about momentum got. the I've [indiscernible] outlook at not good I what on measurement other that's I good. is fall side given focus in openings update. feel momentum, on said that the to -- on is we've very a as positive. ongoing or of past, that any my is year And of fall specific think really I focus happen Basically, one the happens which on.

information On deal, we think I that provide we're to we [indiscernible] the provided going until have the close.

its of outlook we what look with into either years We that X respect had apply plans many cases, into that of plugging in underwriting number do things a or say a we in as ownership case built this have platform. in into systems in which we renovations would that our we into Hyatt also of will have like. to this for and just have gone those had In the well. platform case, I And will cases an and next the

transaction. you information the when more we provide So close will we

And expectations incremental just did Yes. our fees joint described. management I then just the is Mark add Hyatt for gross venture. the that we that from platforms disclose to that would

Yes.

counting and rooms are fees separate that we're in -- from from managed franchises in no strictly on. These all we're bringing management. are apart So the that hotels. XX,XXX those There's fees, those these

we to that realize high are management those In the to space owned will fees, be addition platforms Hyatt fees through in -- that other number. there revenues that and that will distribution incremental

provide you we to details we'll So more when get closing.

the Your next Wells comes Politzer question from Daniel of line with Fargo.

a mentioned think credit guys order card adding fees we the -- should Can been times the that's upcoming couple certainly, about additive timing going being of you fee maybe You or of maybe that renewal a talk your growth in forward? non-RevPAR your the of the And of peers. quarter. among trend how and component magnitude about

reflective many Well, details it's haven't breaking -- is per What many, very have base but be end customer I our of that think average other I can't conclusively, I in card of spend spend higher affiliated would don't of I the would per say into co-branded high we're non-RevPAR say credit out say will we cards. the that the gone of at -- the I or because think I strength -- -- is the is holder than we that the what's fees. card data all

they profile World economy state and continue their where that also, the directly expand And they of income. partly Second, to because is the to our Hive a because card. of have fit have not kind relatively volumes spending been the base growing a specific they household linked of higher worth net membership we have are

we'll So think grow. enter we that

is we've a For see XX% the those points different don't last to that gaining be of who -- is part over going think but we're it's would other that experiences of that total I in are -- it's by forever. say of of World we're are tracking to continue offering. I And years see continue we we fantastic, can't to that growth kind some been that row. but very at offering traction we're couple going for grow. compounding to excess actually of XX% of we're multiyear, routes that you Hyatt that with it compound in That and actually of to membership adding. confident We that the respect price high.

So we're all that. of about excited

before, of think that the end this or the itself, we've 'XX. life a terms through I comment this had but of an In made contract arrangement is towards

looking card one at how credit these of of we done. no the be structured. will our deals our next waits phase And so in engaged course, deadline until are And actively get to

So on now. it we're working

next line Our the from Mizuho. with comes question Ben Chaiken of

follow-up. and changed trajectory in destination, million all? you're quick And think hurricane $X in then seeing the XQ, this has up from Within Distribution demand said [ you ] EBITDA color what impact? at business any I Was on one put a an perspective? Just

Yes, United hurricanes sure. some we Southeastern third Caribbean and States. In the quarter, had definitely impact from the definitely in the

bit what encouraged call. leisure And little on is bit booking a prepared we quarter noted were in reason a be noted slower. than by our And lot fourth quarter, the as frankly, of had in our just less our trends. So a second earnings remarks, there bookings we to

into our accelerated. October, leisure really the out and September end -- booking has pace So coming of through of

we markets, the those in segments as business are at particular, and that markets look So the is our managing really distribution accelerating.

a the fourth and into actually there. we the strong those the year. resorts So very quarter, an also into have other expect million there $X pace I markets we quarter, of booking and last resorts our business as for first said, excess distribution in increase, about And

into the will the future. booking that future near believe continue we into So pace

is expect helpful. growth, attrition of Would well? in as was concentrated then it it. we you that examples very to XXXX I today. Got stand a to room this more dynamic? about as that's And attrition you're how helpful. Or Just leak X.X% few appreciate And the then thinking it. very on into more this so 'XX the a color on

higher Yes, hotels of there requirements a life I met. that number were end to relatively of was PIP coming not think were and that

to just brand different we portfolio, that which to here have hotels quarter. portfolio. into heading you of this a look the rooms the not point, if our downgrade I will we than of at maybe fourth competitors. bit encourage a a level at our their So had that's lower say into brand blip in our structure would those at who want owners something maintain a we to That's do

just integrity our And they this brand is so some stand as across today. of brands maintaining

question America. line Bank of from comes Shaun next Our with Kelley of the

last maybe question just to that points. of couple fill a Mark, in from about

would all, gross at if comfortable I said first I year, X%, feel you you So of to that next a be think correctly, basis. caught but you closer kind for of

a a if attrition year at little out bit -- you bit kind So Day. last below, normalized your algo the Investor of I little longer-term laid think even still

Maybe maybe think So you piece? through to an on you pros, activity opportunities the for could as sort brand that the kind But and because that I think is Is standard explore? of on conversions opportunity have last that that that about that just about specifically ability Is down walk you're brand side. could there? Hyatt could just on families of talk that you if that see. cons Hyatt? then right, that absolutely something us about we trade other And

Yes. Shaun. Thank you,

activity. think you conversion how my growth X% First that of read correct. any That's I commentary that's about correctly all, excludes

do So organic work material we on. have number. And of a in that fact is talking about we part that to our I'm been pure the conversions that They've total. continue

X%. outlook. net attrition at about if that, the I And maybe outlook talked still to think those plus a or we've X% longer-term of of think midpoint of to X you X% minus, I put our So remains numbers,

in total the So pretty construction in which in I construction of have have and during especially lull new seen in think level we rebound, continued China. and starts U.S. represent construction a of starts, the a significant to our proportion conversions activity this

increases seen rooms rooms have in construction. XX%, construction -- of the starts pipeline. terms up quarters. X China about represent construction, in -- we That las total And in under so represents XX%, of in quarter rooms of is they from our China which So last China under represent XX% in percent

So undergird there organic. we're that signs seeing positive

which in especially continuously particularly and those, remains pure not acquisitions second I of have deals relative markets and a think the we conversions, penetration. of part number your of we are conversions, there high, question? portfolio Was low pursuing platforms in

to we respect the Yes. brand standards, With have.

that. for opportunity potential is There

There is brand into how of we we've properties the true actually time owners consider think feedback segment since ever also the high we the standards. we our opportunity. that end to and been serving into It's It's we that requires take and listen at looking each and have. about something investment constantly that beginning serve their of that

performing. well our so And our in been has owners capitalized. is They're because and recognize invested they've So why have attrition owners properties the that's been low that. historically

is levels this that this an of don't think to I expect bit anomaly and those year we described continue a Mark forward. So going

would I Shaun, picture just say, a of this. broader to paint

other has over where on older XXX midscale Hyatt and Hyatt or come kind upper are that respect and If mid-scale materially with the it or brands AmeriSuites of you from upscale the brands of of think those Tiplace are capturing When to attrition launched these Those coming where back out launched have [ other categories. was about in Place that brands hotels. ], than been House. those we

getting post now are look XX-year of our being portfolio, you only opening seeing beginning very we're If hotels of life the open. to mark that total the of just past at

given that Hyatt to Hyatt -- much crazy It ago. House, for that and say sounds launched Place, you Hyatt had might years in forget Place XX example, growth really we've how that, we

to but built that So -- were AmeriSuites prior time.

yes, now to So we're see that. starting

know, brands are current in something X, I the competitors so they're prototype forth. for their Our version X X, and that of using high, don't

So incidence many, of level or have they aging. this XXXXs. the And are is marketplace stretched reaching into you've hotels the think obsolescence achronism product back current that in we an of maybe that in their got many I those generations

of not across By It's evolution United towns and the those many brands. States. the the the the just business. nature I'm criticizing way, movement the business districts and in CBD's central of also and cities

coming eyes brand we invest our So we're to Place We're Hyatt you equity. category to are fire saying, and Hyatt everyone's wide owners, we've got investing, to our and open. everyone hey, consistency, committed very and need to us brand hold because want to the our in feet House quality because the especially it's

consider is advisory haven't we're we're topic. to experiencing so owner with we on it much time. new had we as with do had that very aligned But or to our issue -- this this prior something an really group And as today

Conor Research. the from question Cunningham Melius with next line of Our comes

you've see standpoint Maybe seeing Do M&A that you just of an kind Can on there still obviously from in you they all about been market? the transformation. Are that relatively depressed. talk inorganic side, multiples the active deals, see your very stuff? that you post the you're maybe opportunity now? the what And

Sure.

I in if they of a I think at also it that be platform tend to way like high very bought well, COVID. ALG, Two or ALG at middle the multiple inception the -- valued, looked think at you the acquisitions Roads was we look

multiple with the trailing stratospheric. So

we -- So of ahead basis the trailing don't each what's franchise Every underwrite portfolio agreements. on its as that the as different and understanding contracts don't and own much underlie dimensions portfolio. and the quality the of tenor got has management you agreements for

All we of taken account that deals for do the we -- deals don't excuse that me, and all into of do. is that

plug And that's so to see into run would going time it to double multiple typically, because that into a to see what other or expect renovation the I and it's would loyalty you you higher, some more probably in Why? say rate extent significantly takes on distribution programs complete to a programs. also would channels basis. that relevant

I will in high. multiples would going So say look

growth buy low in revenue in to careful associated be that's fee down these digits. with the to platforms for EBITDA to correctly the underwrite them something have really therefore and and double You

day. glide double-digit end every is Our general that on that low path up an multiple belief a of a on is can value if that earnings asset-light confidence accretive platform to have we we

And if we're and XX. that the we look X that we at are tracking acquisitions below -- last you made, currently

digits. single high in we're So

So particularly to focus design. that's good. continue going on. And that's what our we're That's to

so much to we that might number that dimension don't we We in tracks other just in that the a of have as that not market space much in. is capacity fill white as others have have have any representation

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And could you more you just one. ask quick one

coming organically system of of you of feel don't and conversion do it markets mentioned of in and grow sort Do an can cetera? to coming through to a recementation. jump to acquirer get Or be those will? of potentially in you, You where markets sort sort you the you have now if you some like enough is developers kind that of you tracks real et people could like lot just of you you -- big feel estate started,

groups purchased few specific felt I my Yes. but they those a two the hotels that right hotels The Center hotel biggest are was complex. sides we've of reselling before the examples can $XXX and both I had Peabody exemplary location. I clear Convention The equality, to it connected for of away because of ethos the pathway County in look if it could history, And convention hotels, different give acquisitions mean of over that the a Orange executed back was and the we specifically off culture of hires their right I two only where Orlando we of million. or we at of top bought they a that you -- that equality were were to in Amazing. well, middle our in think head team we Orlando, of a which

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example. one that's So

Mexico example City. in The [indiscernible] second the is

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have we as underpenetrated, as all amazing a to is in if that answer opportunity gets the a clear us a in which long an market unique are sell. location will path So we day, we yes, it's that do

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David next of Our from line comes the Jefferies. Katz question with

these you are past page from just your of that on we them. get years. of kind expectation I'm et looking sense -- quite entirely entirely or quarter. along going few business there when earnings Is these asset a other of channels, the different things, I of profits? and comes added deck, some range wanted sort to And to key Congrats grows as light, your I incremental your in money a I'm asset-free can sort calibrate that cetera, be to with kinds investment mean revenues to or of couple a wanted where it brands forward. at of say and trying over you've the are just meaning

Yes.

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from Patrick Our with comes next of line Truth Scholes question Securities.

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would I stay tuned. say So

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market a other open those currently are lower some the -- brands upscale sorry, because we're it's our eyes collections yes, competitors don't I into, mid-scale other in lower large arena, in see there they convert very our brand have So that in or the -- we plan. I'm wide or mid-scale not going other brands those upscale including us that

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with ISI. question comes Evercore Duane Your Pfennigwerth of from line the next

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Sure.

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with last comes line question Our Montour Print from Barclays. of the

the unit net a commentary growth. clarification Mark, gross just on on

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conversions. I portfolio If I one number. big misspoke. they said meant not included Conversions like deals of I the in by that, run conversions mill that each, are

I that. So said if I apologize

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period booked pace you us, for occupancy you for business the first strong. number. looked speaking, just be that The much if really point I in pricing sort could revenue of even that that was that? visibility implied at was a then how I'm quarter embedded curious, transient out there? gave curious would this generally just in and set tell And

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sorry? I'm

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tell the And colleagues partners we in had the Hyatt into think you are the this we bringing I Our our values. aligned family -- ALG. I culturally win and will major with was and are that that that

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to we I culture that values fantastic of this position that and so really And for care forward. are us feel share going going a strongly the success

for thank your I you So time.

an And course, please Halloween. our Happy care properties, experienced Of please? visiting come lastly, by

you for This concludes and participating, a call. Thank today's conference day. wonderful have

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