Hyatt Hotels Investor Day 2026 | Asset-Light Fees Transformation Path Outlined For Expansion

Thanks, Adam. And good morning everyone. Glad to see that everyone survived Cindy's rooftop last night. Cindy's, by the way, some of you were surprised to learn, is actually part of the Hyatt system. It's an Unbound Collection by Hyatt. And Cindy's is named after Cindy Pritzker. So, we all celebrate Jay Pritzker as our founder and the first leader of Hyatt and his boss was Cindy. And she proved the indomitable spirit of the Hyatt family by living till 101 years old. Last year she passed away. So Andy Warhol I think captured her image beautifully in that print above the fireplace and we celebrate her and her can-do spirit throughout. Before I get started though, I do have to extend a special welcome. I'm going to invite Mark Wagner and Roberto Alicia up on stage with me. Mark is the leader of this hotel and Roberto does all the work to make Mark look really good. So Mark is about to celebrate his 30th anniversary with Hyatt this coming year. Not there yet.

Right. And why don't you tell us a little bit about this place that we're in?

And before I let these guys go, Roberto and I got to know each other when he worked at the Andaz Fifth Avenue. Roberto has an incredible life story. He grew up in the south side of Chicago in a pretty rough neighborhood and has basically gone from entry level position to being hotel manager of the largest hotel in the Hyatt system. And he's a shining example of what it means to bring people into this industry and watch them grow and give them support. But he's now passing that along. It's a beautiful thing because he just promoted, he was the head of F&B, he just promoted a colleague of ours to run F&B here in the hotel. I happened to meet her in Palm Springs and she was extraordinarily excited to be elevated to this very important position. As you all know, as you could see from last night, F&B is one of the key priorities at Hyatt and it has to be excellent. Not good, not great, but truly excellent. And Roberto is excellent in every way. And when we gather people together to help bring people out of the south and west sides of Chicago to employ them, they are enraptured by his own personal life story and inspired by that. So, Roberto, thank you.

So as much as we love sharing our wonderful hotels, we love sharing our people even more. We appreciate your interest in Hyatt and for being here and to hear a little bit about why we see such a compelling future for Hyatt. We have a lot to cover, so we're going to get going now. Let's talk about differentiation at scale and how that defines Hyatt today. For decades, we've been building something special within the hospitality industry. From our premium brands to the guests that we serve to the way we grow. It's a highly differentiated approach to building a scalable premium company. Those two things don't usually go together, but we're proving that they are powerful when put together. Our brand portfolios, our operating model, and our growth strategy all reflect that approach. As a result, we built a global portfolio centered around high-end experience-focused travelers where we continue to see strong and resilient growth, highly durable growth. And no coincidence, we have the fastest growing loyalty program in the industry, World of Hyatt. We're continuing to elevate our performance by becoming a more insights-led and brand-focused company. We've cultivated a culture that fosters innovation and we have scale where it matters. We have a platform that drives durable fee-based earnings and we have a track record of taking action to realize meaningful growth opportunities on a highly accretive basis. All the acquisitions that we've done have been highly accretive to value for shareholders. Today, we will share with you our plan to build on that track record and to elevate our performance even further. We believe the actions we're taking today will strengthen our position to win and deliver consistent capital-efficient growth and long-term value for all shareholders. From the very beginning, innovation has thrived throughout our properties across the Hyatt portfolio because of a bold spirit that remains a part of our culture. Differentiation is in the DNA of Hyatt. From our founding in 1957 to today, Hyatt has never tried to win by simply being the biggest or following others. We were connecting dots that we saw that others might not have seen. While much of the industry focused on scale alone, we chose a different path. Building a premium portfolio, creating distinctive experiences, and staying disciplined about how we grow. Yes, food and beverage is a big part of that. Someone mentioned to me last night that of course they expected the food last night to be great and it was. I think we interspersed a bunch of Chicago specialties, but we also provided you with some other really delectable things. That approach has shaped Hyatt for the last 70 years. It has strengthened the loyalty of our guests, deepened our relationships with our owners, and positioned us to drive long-term growth with a brand and business model that stand apart. A philosopher once said, 'Whatever you can do or dream, you can begin it. Boldness has genius, power, and magic in it.' And we have been bold time and again investing in bold ideas that have had big impact. Let me give you some examples. We took a legacy-defining risk on the atrium concept with the Hyatt Regency Atlanta in 1967. The Pritzkers literally bet the company on the acquisition of that hotel. The soaring space, which led all other industry players to conclude that it would not work because it was so inefficient to have all this empty space in the middle of the hotel, actually was an expansive view that gave guests a sense of awe and true wonder. When they walked in, they looked up and they said, 'Oh my gosh.' because it was 20 stories of open space with a towering complex of elevators running up to the revolving restaurant on the top of the hotel. It helped establish Hyatt as the atrium hotel company because we went with John Portman and started opening big atrium hotels in Houston, at O'Hare airport, in San Francisco, in many, many locations and strengthened our position by bringing architecture into the hotel experience. Really for the first time architecture became important, hence the Pritzker Architecture Prize, and we attracted a more premium experience-focused guest. Hyatt was the place to be in those big atriums. We had the most vibrant bars, the best restaurants, and there was a vibe. We've been very deliberate in how and where we grow as well. In 1969, when the rest of the industry was looking to Europe for international expansion, we went to Asia. That was a big call early that Asia was going to be a powerhouse economic driver engine for the world going forward and that bold decision led to Hyatt having a stellar reputation and brand strength across Asia to this day. The Hyatt Regency Hong Kong was renowned serving continental cuisine in the epicenter of Cantonese cooking. It was unprecedented. More recently, in 2021, during one of the most uncertain periods in our industry, we acquired Apple Leisure Group. While others paused and played it safe and maybe even took a step back, we took a step forward with conviction and we immediately became the largest brand operator for all-inclusive resorts, luxury all-inclusive resorts in the world. And through seven decades of growth, innovation and transformation, our culture has actually remained the key differentiator for us. It's been the backbone of Hyatt since the beginning. More than a decade ago, before the word purpose or the concept of purpose became a fixture in corporate boardrooms, we articulated our purpose. We care for people so they can be their best. This simple 10-word idea has become our superpower and continues to guide and shape how we lead and how we grow. Our purpose of care is Hyatt's north star. It's our foundation. It informs our culture and drives everything that we do. Even as we remain steadfast in our commitment to our purpose, and we do, we believe that the opportunities ahead can redefine what Hyatt becomes next. And we have an expansive view of the future. We have powerful competitive advantages that are the foundation of our future. In short, most importantly, Hyatt serves a high-end traveler across the globe in every segment that we serve. And our portfolio reflects that. Our portfolio of premium brands focuses on the high-end traveler in each segment. Our core guest base has proven to be resilient and consistently prioritizing travel over and over again. Our loyalty program, World of Hyatt, drives deeper engagement through guest experiences, not just stays. Our value proposition is compelling to owners. And we have meaningful growth opportunities ahead, supported by multiple levers to accelerate growth and also a record pipeline of over 150,000 rooms to support that growth. So, I'm going to walk through each of these in more detail. Over the past year, we've aligned our team around five distinct brand portfolios to better capture the growth opportunities that we see across our brands. We organize these brands in these portfolios by the guests and customers who concentrate their stays around those brands and the owners who tend to focus their holdings and developments on those brands as well. This positions each brand portfolio to attract higher value demand, operate with greater focus, and drive stronger performance. More clarity across our brands enables us to go to market in a much more focused way and a meaningful way for guests and owners. Our luxury portfolio, for example, delivers personalized, high-touch experiences for the most discerning travelers. Our classics portfolio consists of properties just like this one. Timeless style, impeccable service, and thoughtful amenities. In these types of hotels, we welcome large groups that come together for meetings and events, as well as guests who are celebrating some of life's most important moments. Our essentials portfolio delivers reach into new markets, consistency, and efficiency at scale. And we will have our brand leaders for the lifestyle and inclusive brand portfolios joining us later today to highlight what makes their portfolios unique. Today, our operations, design, and development teams are aligned by brand portfolio. This ensures consistent brand focus from development all the way through ongoing operations. This evolution to a brand-focused organization has become even more important as consumers discover and choose travel through tools and platforms that prioritize personalization and intentional experiences. That is why an intent-based generative AI search capability which we've had at the front end of hyatt.com for over a year and a half has been critical in allowing us to care for our guests better. And at the same time it's allowed us to learn so much more about their preferences. We also recognize that our guests engage with Hyatt on many different occasions across our brand portfolio. That could mean attending a conference at the Hyatt Regency, staying at a Hyatt Place for a child's tournament over a weekend, or celebrating a big event at the Chicago Athletic Association. Hyatt's portfolio of brands ensures that we can care for our guests on each of these occasions in a more personalized way. We're increasingly seeing guests engage with multiple Hyatt brands over time, and this positions us to deepen our relationships, increase loyalty, and expand our share of their travel wallet. It all begins with our guest base. Today in the United States, the top 40% of households account for roughly 75% of total travel spend. Go to where the money is. And within that group, the top 10% are traveling much more frequently and spending significantly more per trip. Now, 70% of Hyatt room nights originate from the US. These US travelers are prioritizing travel and experiences over goods, and that's been true for a while. We've been focused on these guests for decades with our positioning anchored in luxury and upper upscale segments. Our guests are spending more with Hyatt. For example, Hyatt guests spend over 25% more per day compared to our competitors. Even as US travel demand has recently shown more variability across income levels, our performance has remained consistent, durable, and very strong. When you pair a premium guest base with a loyalty program designed around our purpose of care, you get World of Hyatt. The program goes way beyond a traditional transaction-based loyalty program, delivering meaningful value and experiences, including differentiated elite member benefits, which Laurie Blair will talk about more later, transparent award pricing, and high redemption value. The results of our differentiated approach have led to a significant increase in our membership base and greater loyalty room night contribution for our hotels. Now turning to the compelling owner and developer value proposition that I mentioned earlier. Our focus on high-end travelers has led to each of our brand portfolios operating at a RevPAR index premium. When you pair this with the high quality and low-cost distribution mix through Hyatt's direct channels and you add to that our operational excellence led by people just like Mark and Roberto, you'll see that we drive margins for owners and cash flow for them as well. That's the value proposition in combination for our owners. Our Hyatt members now represent approximately half of occupied rooms globally. They spend more, return more often, and by virtue of building engagement with them, drive higher value demand. For example, 70% of our room nights are booked through Hyatt's direct channels and World of Hyatt is a very, very important piece of that 70%. We expect to increase levels of member room nights as World of Hyatt continues to scale, which it has been scaling and growing at 18 to 20% compounded year-over-year. Rooms revenue is just one area of focus. We're also focused on food and beverage as we talked about and as you experienced last night and wellness offerings and how we translate those revenue streams into the bottom line. We focus on optimizing every single line of the P&L and this leads to enhanced growth opportunities. We have grown in a meaningful way over the last decade with relevant scale especially in luxury, upper upscale, and upscale chains. And yet we still have significant opportunities to broaden the choices available for our guests and members to stay with us in existing markets while growing our brand presence in new ones. We built a record pipeline of about 151,000 rooms which supports our future growth and nearly 40% of our pipeline is in markets where we do not have any brand presence today. 40%. As we grow, we're strengthening our network, driving more demand through the system, leveraging Hyatt's brand equity, and increasing the value to guests, owners, and shareholders. These opportunities build on the scale we already have and give us confidence in our ability to deliver 6 to 8% net rooms growth through 2028. I'm really excited about our momentum and it's palpable. We all feel it. There's a great deal of excitement and energy in the Hyatt family right now. We have strong competitive advantages and a very, very long runway for growth. So now let's dive into how we will elevate performance and sustain and really strengthen our competitive advantages into the future. Brands, talent and technology working together will help us move faster, perform better even in an increasingly dynamic and competitive environment. It starts with our brands. We sharpened our brand focus to strengthen differentiation, improve consistency in the guest experience, and drive better performance. This will also make us an even more attractive choice for owners. Talent passionate about cultivating our culture of care and performance will help drive our growth. We will develop leaders who relentlessly focus on quality and continuous improvement, pairing empathy with action. We will further elevate our technology using tools, data and insights to benefit all stakeholders. Our approach is grounded in a simple principle. Technology should enhance the human connection, not replace critical thinking or judgment or human connectivity. Technology allows us to scale performance and AI is a strategic enabler embedded in Hyatt's operating model across the entire enterprise. We're using tools, data, and insights to better engage with our guests across their travel journey and to support our colleagues by reducing friction in their daily work, taking administrative tasks off of their responsibilities, enabling faster and better informed decisions. As AI increasingly shapes customer decisions, we believe that companies that win will be those with the clearest understanding of their customer and the strongest brand coherence. That's the way travel distribution is going to work in the future. And that's why Hyatt's evolution toward a more insight and brand-focused organization is strategically important. It positions us to compete from a place of clarity, consistency, and most importantly, trust. Recent studies show nearly two-thirds of millennials prefer AI-assisted personalized travel planning. We believe utilization of AI distribution tools will become more important over time. So now, let's take a closer look at each of these drivers, starting with our brands. And I want to share two examples with you. The first is the Hyatt Select brand which we launched last year. The Hyatt Select brand started with two simple insights. First, our guests wanted to stay with us more particularly in markets where we didn't have a brand presence. We had already identified this phenomenon when we created the Hyatt Studios brand. When our members stayed with a competitor and we had the data to prove this, it was because there wasn't a Hyatt within 5 miles of that spot. Second, owners were looking for opportunities to grow with Hyatt particularly in a transient-focused upper midscale space that was conversion-friendly and could be brought to market quickly and very efficiently. We launched the Hyatt Select brand to meet the needs of our guests and our owners at the same time. Expand our brand presence to serve guests in new markets and generate attractive returns for owners. The momentum we are seeing is incredible. The first properties opened only eight months after announcing the brand and we already have built a very strong pipeline with many more hotels in the funnel. A second example, this is the beautiful Manhattan Suite at the Park Hyatt New York in one of the most important luxury markets in the world. It has long commanded one of the highest average rates and RevPAR of any Park Hyatt hotel in our portfolio. And yet we saw an opportunity to unlock additional value through insights. In 2022, our hotel team, the asset management team, commercial operations and the operating team came together to evaluate what opportunities existed. We were looking to further elevate our most premium offerings and better utilize underutilized space and capture a greater share of ultra-luxury demand. We took a very disciplined and insights-led approach. We refined our target guest strategy and built new relationships, new channels, new access points in the ultra-luxury space. We also rethought our product offering. We invested $14 million to reposition space in the hotel and we did create within that budget a new ultra-luxury suite at the top of the hotel designed to attract highly discerning clientele. Started with the insight, led to the design to serve that guest, and the results speak for themselves. The hotel's RevPAR index has increased significantly and the hotel now ranks number one in one of the toughest comp sets in the world. All of the major stratospherically known luxury brands are in our comp set and we're number one. EBITDA has increased 85% while realizing significant cash-on-cash returns on the $14 million investment. These are two clear examples of the Hyatt Select example and the Manhattan Suite of how we use insights, a brand focus and disciplined execution to expand our network and unlock new growth opportunities for Hyatt. We're elevating the high-end and we are extending our reach in the upper midscale at the same time. The right talent and focus bring these insights to life. When we talk about how talent enables and elevates future performance at Hyatt, it starts with how we lead, namely with empathy. Our culture, specifically our purpose to care for people so they can be their best is a true competitive advantage. It's not a tagline. It's not a marketing gimmick. It's actually who we are and why we exist. It shapes how we operate, how we set expectations and how we hold leaders accountable. In practice, that means leaders take ownership of outcomes that they are seeking to achieve. They collaborate efficiently and very importantly they develop talent and adapt in a dynamic environment. Roberto's story is a perfect example of what talent development and action actually is. We continue to reinforce this through disciplined investment and capability building. We focus on the skills that matter most to performance, including how leaders prioritize, how they make decisions, and how they lead teams. The result is a responsive organization that operates as one enterprise, moving faster, executing more consistently, and delivering strong performance across the portfolio. Our leadership talent is focused on the highest value opportunities always. It's a constant reflection on reprioritizing and being strict about what we focus on. These include strengthening brand positioning and accelerating growth in priority markets. Talent becomes even more powerful when paired with the right technology. We've been investing strategically in technology for many years and we will continue to do so to elevate our performance. We built the infrastructure, governance, and capabilities to operationalize AI across the whole business starting over two and a half years ago. We use it to care for our guests, customers, and owners in a much more personalized and effective way. We're not eliminating humans. We're simplifying and enhancing the colleague and owner experiences to give them more time to care for our guests and customers and for our owners to get what they need in optimizing the performance of their hotels. It's not about activity. We don't measure activity. We want impact. We want results. That's what our KPIs are. We're personalizing the guest experience at scale, driving deeper engagement and greater loyalty in, by the way, in segments and for guests where that matters a lot to their decisions about travel. We're streamlining operations and empowering our colleagues, reducing friction, and improving service delivery. And we're leveraging data and insights to optimize performance, enhancing how we price, how we sell, and how we operate our hotels. Mark Vondrasek will talk a little bit about this in a few minutes. As a result, we expect stronger loyalty contribution, higher revenue per booking, and greater hotel performance and profitability. You're going to hear more this morning about how we're applying these capabilities across the business, building on innovations like intent-based search on hyatt.com, our ChatGPT integration, and expanding into areas that drive both guest experience and operational efficiency at the same time. The work we're doing to elevate our brands, talent, and technology is sustaining and strengthening our competitive advantages and generating strong financial outcomes for our owners and for our shareholders. We've delivered the highest RevPAR growth in the industry over the last 5 years straight. That has translated into strong owner returns and economics. We've achieved industry-leading net rooms growth for nine consecutive years. And we have an extremely long runway ahead of us. And we're seeing strong momentum in our fee-based earnings as well. We expect durable fee growth over time as we elevate hotel performance and expand the system at the same time. As we scale, our asset-light model will enable margin expansion. And that margin expansion leads in turn to higher free cash flow conversion over time with most of our earnings coming from capital-efficient management and franchise fees. Joan will talk much more about this during her review of our financial outlook. Wrapping up, it's clear Hyatt is, for many reasons that I just covered, a very compelling long-term investment. Our model is unique because we have a differentiated approach and differentiation at scale which is very hard to achieve and we serve the high-end traveler across every segment in which our brands exist. We have a compelling strategy to elevate performance. We will continue to evolve into a more insight-led and brand-focused organization that sustains and strengthens our competitive advantages and drives stronger outcomes across our portfolios, ensuring we are positioned to win. We built a business model that is scalable, resilient, and built for long-term performance. Durable long-term performance. The next era of Hyatt is already underway and you'll be hearing a lot about it from several members of our leadership team this morning. So coming up next to discuss some of the great things that we're doing to elevate our brands and our technology are Mark Vondrasek, Amar Lalvani, Javier Aguila, and Laurie Blair. To start us off, I'm pleased and thrilled to invite Mark V, as he is affectionately known around the company. I'm Mark H. Too many Marks. Who's our chief commercial officer and the master of all things. So Mark, welcome.

How do we do it? We have refined the positioning of each of our brands to make sure they are distinct, succinct, truthful, ownable, and executable. And I'm thrilled to see that we're coming to life in very tangible ways at our hotels. Key examples: The new Andaz in Lisbon, which embraced the positioning of the Andaz brand, embodies the Andaz's promise: global travel rooted in local culture in real, truly immersive ways. For example, the Andaz Lounge downstairs exclusively serves wines made by local female winemakers. You feel enriched when you're there. You learn something. You try something new and you don't forget it and you want to come back. The Standard Brussels, we just won more hospitality design awards than any other hotel in the world. Best uniforms. Okay. Best lifestyle hotel. Great. Best in show. What that means is the best designed hotel in the world across every segment. That's a big deal for a hotel in Brussels. I'm really proud that of the three runners up, one of them was the Bunkhouse Hotel Daphne. So two of the four hotels for best hotel design in the world were Hyatt brands, which is pretty cool. And but it also shows an example of how much runway we have because the Standard in Brussels is the first Hyatt hotel in the European capital. It's just an illustration of how much runway we still have for all of our brands. And at Andaz Miami during Formula 1 weekend, Lorie Blair and her team brought together top tier owners, globalists, travel advisors, and press in a way that demonstrated the power of the combined World of Hyatt ecosystem with our brands. So what are we doing with all this? We're using the lifestyle group as a proof point for how a brand-led operating model can create stronger guest loyalty, deeper owner relationships, better development opportunities, and superior financial performance. Our mission is to help Hyatt turn into the most differentiated and most innovative hospitality company in the industry. And we will get there. I can promise that. So why do we do all of that? So we become the brand of choice for guests, owners, and developers, and the company of choice for shareholders. Now, I'll show you a little short video that should bring some of my comments to life.

Thanks, Amar. I'll say what he's too humble to say. I think what's clear is that we didn't just acquire two strong lifestyle brands in Standard and Bunkhouse. We have decided to build from them through Amar and his incredibly talented team. Next up, our all-inclusive collection. The last time we were together, and I think this is a strong example of how we are also expanding our reach while strengthening differentiation. Last time we were together in 2023, we were just integrating these brands. Today they become a very powerful growth platform in our portfolio. And to share a little bit more about that growth platform today, I'll turn it over to Javier Gila.

Thank you to Amar and Javier. Great examples. I think they're both wonderful examples of how insights, scale, and execution all centered around differentiation of brands are coming together to help us drive growth here at Hyatt. So when you step back, our insight-led approach, which as I shared comes from many people and many places today, clearly allows us to build stronger, more differentiated brands. And those brands continue to attract higher value guests, drive deeper engagement, and at the end of the day, deliver stronger returns for our owners. And that's what enables deeper relationships with our guests. And that's what brings us to the World of Hyatt, what we consider to be our most powerful brand. And to share a little bit more about how our World of Hyatt loyalty program is truly driving deeper engagement, I'll invite up to the stage my friend and colleague Lorie Blair.

There's so much news coming out of the World of Hyatt program. There's a lot more stories to tell.

Thank you, Lorie. Outstanding job. One of our barometers of success is when people who have no agenda somehow feel compelled to make sure we know something we have created and done here at Hyatt is resonating and is breaking through for them. And that happens a lot routinely with the World of Hyatt program. And if you needed another reason to believe that we are right now building relationships with Hyatt's future guests, I hope you remember two statistics between Javier and Lorie around future guests. Javier said 70% of travelers under 30 are now more likely to consider all-inclusive than they were 5 years ago. And Lorie said that our co-brand portfolio is attracting more millennials than competing cards and growing our millennial cardholder base faster than any of our competitors. I think those are proof points that we are well positioned today, but also incredibly well positioned for durable compounded future growth. So the next step this morning is how we scale all of this across our system. How we continue elevating performance and positioning Hyatt to win. And that's where technology plays a critical role. And I'll spend a few minutes on our work in tech and AI. Technology allows us to scale everything we've built across our brands and loyalty program. And we think about the use of AI and technology in three core ways. First, they allow us to scale our platform efficiently. They allow us to drive smarter decisioning and to enable even deeper engagement with our guests. And importantly, we don't think about technology just as infrastructure. We think about it as a growth multiplier. And I'll walk you through just a few examples. The first way we're scaling our advantage is through efficiency gains in our core technology platform. Over the past year and a half, we've elevated our foundational technology systems. We're moving from proprietary solutions to best-in-class platforms. We started with revenue management where we replaced our homegrown system with the industry-leading IDeaS product which has already delivered a 1.4% revenue uplift across our entire system. It's not just a pricing tool. It's a decisioning engine. It optimizes demand, inventory, pricing, and mix across our entire business. We're also migrating to the Sabre SynXis platform for our central reservation system which expands distribution, improves merchandising, and reduces our cost and complexity for our owners. And I will say we approach this work a bit differently. We brought in senior leaders from Sabre to execute this work. And this has resulted in these large-scale system migrations being completed on time, on budget, with little to no disruption to operations, and importantly with no incremental cost to our owners. And I think this talent decision that we made here has made all the difference. The reality is that most companies undergo these transformations and try to pull them off with the same leaders who built their proprietary systems. And I think we knew that the best way to ensure success was to actually bring in leaders who've executed these large system initiatives several times. And for us, this has made all the difference. We will wrap up this work this fall. And finally, our move to Opera Cloud for our property management systems creates a more scalable and flexible platform across all of our hotels, reduces infrastructure cost, simplifies operations at the hotel level, and creates a more flexible foundation for future capabilities and for our future growth trajectory. Taken together, these technology investments are driving revenue. They're lowering costs for owners, and they're enabling faster innovation across the Hyatt system. We're also enabling smarter decisions at the property level. One example we're really excited to share, we call Hotel Heartbeat. And Hotel Heartbeat is a centrally-led AI-enabled self-learning tool that puts data directly into the hands of our property leaders. It integrates more than 70 data points to deliver clear prioritized recommendations to our on-property leaders on where to act across revenue, service, and forecasting. Instead of interpreting reports, teams now know exactly where to focus. Here building behind me, you'll see a sample notification identifying a trade-off between high occupancy and slightly underpriced rates at the property level. It's prompting a review of corporate and negotiated pricing to shift from volume to higher value revenue. And the engagement with Hotel Heartbeat has been strong across our pilot hotels. We're seeing great weekly engagement and more than half of the signals that come from the center are actually driving action at the property level. And when a recommended action is not taken, our leaders feed the LLM by providing feedback as to why what we recommended was not the optimal choice. And that makes the model smarter over time. We're scaling Hotel Heartbeat across the entire system. It's an example of how we're turning insight into action with AI. And the final way we're scaling is through deeper guest and customer engagement. We are transforming how guests discover Hyatt through AI. We were the first in our industry to introduce intent-based search. We can now smart match location, amenities, price points, and experiences to what guests really want in travel. Mark talked a bit about this, the ability now to search for travel options on their terms. I'm looking for Cancun hotels under 30,000 points a night with a wonderful spa. And the result here is a 23% lift in conversion of intent-based search. But more importantly, it gives us a much deeper understanding of guests' intent. This insight we learned through intent-based search feeds our ecosystem now of better informed offers because now we know that this kind of trip appeals to you. It also feeds data to our development teams as we think about future project sites based on demand. We've taken this work a bit further as well. We were also the first to launch an integrated ChatGPT experience, opening a new direct channel to nearly a billion users who can now download and engage in our app. And you know, being early here mattered a lot to us because it allowed us to learn faster and build stronger relationships with our guests. And while the truth is there is not a ton of volume here yet, but for us that's just fine. I mean, we're learning simply by being early here. And we're learning things like the demographics of our guests using this capability are that they're younger, they have higher income, and they're disproportionately looking for experiences across all of their travels. That insight alone helps us with content creation and future partnerships. We're also using AI to transform how we manage group demand, an incredibly important part of our business. It represents approximately 25% of our revenue here in the United States. And this started with a simple insight. Again, our sales teams were spending way too much time, roughly a third of their day, filtering and processing inbound requests for proposals, RFPs. Time that we knew could be better spent for more engagement with our customers. So, we developed an AI-powered solution that scores and routes the most valuable opportunities to the right teams and right properties without human intervention. It's now deployed across more than 500 of our hotels today and it's expanding rapidly. And the impact is clear. What this does is it removes guesswork. It prioritizes the best opportunities for our sellers and it helps us sell smarter and faster. Our sellers love it because it's giving them time back. So, when you put it all together, technology and AI allow us to scale our platform very efficiently. They've allowed us to make smarter decisions and to engage more meaningfully with our guests and customers. And it's what allows us to take everything we've built across our brands and our loyalty platform and extend that advantage across the entire Hyatt system. I'll close this section out by reiterating what Mark said earlier today. Differentiation is in our DNA. It's what our stakeholders demand from Hyatt. And I hope what you're seeing today are clear examples of differentiation across our network. We start with insights. We build stronger, more differentiated brands and we scale them through data and technology. And that's what delivers differentiation at scale, elevated performance, and a business that we believe is clearly positioned to win. Being the most relatable, differentiated, and highest quality growth player in this industry is how we win. Thank you for your time this morning.

All right. You've heard a lot about growth in many dimensions. Growth of our membership, growth of our RevPAR, growth of our enterprise. And now we're going to talk about growth as in our system size. First of all, I want to express my gratitude to Mark, Javier, Lorie, and Amar for a fantastic session. I think you can tell that the backdrop of the technology investments, especially in AI, have now flourished over the last two and a half years to applications that are spread across the company as I described earlier. It's also clear, I think, when we talk about being insightful and brand focused, it creates significant value for all of our stakeholders. And I think you've just heard many examples of how that happens. I'm here to talk to you about how that creates value for our owners and our developers. So, let's turn our attention to maybe the most important enabler of our growth as we look forward, which is our system size growth. When we committed in 2017 to be a more asset-light company, we recognized that growth would come through a combination of both organic and inorganic expansion. Since then, we've been highly intentional about how we built Hyatt's growth platform, strengthening our position in high value segments while expanding our reach through owner-focused scalable brands. In fact, all of our brands are owner-focused. But when we say owner-focused, we literally mean designed with owners. And I'll describe that in a second. First, we strengthened the high value segments, luxury, lifestyle, and resorts primarily through extremely highly accretive acquisitions. Two Roads positioned us to scale meaningfully in luxury and lifestyle while Standard International further deepened our lifestyle capabilities and brought with them Amar's team which has now taken us to an entirely different level of execution. And as a side note, while it's not listed up here, we bought Miraval in 2017. And you heard from Mark Vondrasek how Miraval as a platform has now been pulled across the enterprise to great effect both for our group customers and for our transient customers. Apple Leisure Group added immediate scale and established Hyatt as the largest brand operator of luxury all-inclusive resorts globally. Bahia Principe and Playa built on that leadership. Through these moves, we've broadened our all-inclusive offering across price points and across geographies. Second, we focused on organic growth. We accelerated momentum with our existing brands and built scalable growth platforms for the future. We launched the UrCove brand by Hyatt which gave us entry into a massive upper midscale segment in China and those representations of that brand are in primary cities. They're in densely populated neighborhoods very convenient to central business districts that are impossible to develop in absent being in the upper midscale. The Hyatt Studios brand expanded our reach into new markets through a highly efficient owner-focused, owner-designed model designed to generate really strong returns and offer exceptional experiences to our guests. In fact, in the first model room review, our developers were telling us to dumb it down, like dial back the design elements of it. And we said, 'No, no, it's got to be a Hyatt. It's got the Hyatt name in it, so it's got to be elevated.' And by the way, it's not costing you any more money. So we ended up prevailing on that. And the Hyatt Select and Unscripted by Hyatt brands added conversion-friendly growth platforms with a large number of hotels in our pipeline and under discussion in less than a year. Together these actions have enhanced our premium mix, expanded our network into high value demand segments. We've entered new markets with owner-focused and scalable brands. And all of this complements our pre-existing brand base of Park Hyatt, Grand Hyatt, and Hyatt Regency, Hyatt Centric. This strategy has delivered industry-leading net room growth for nine consecutive years. It's not a mistake. It was the result of these deliberate actions. And we've delivered net rooms growth averaging more than 9% annually since 2017. I know your initial reaction is, 'Yeah, but you bought a lot of stuff.' Well, our organic net rooms growth, I know that's what you were thinking. Our organic net rooms growth was 7% exceeding the growth of our largest public peers and underscoring the strength of our strategy. Got to admit that's impressive. Thank you. What differentiates Hyatt is not just our industry-leading growth, but where that growth is concentrated today. Nearly half of our rooms are in luxury, lifestyle, and resorts. Since 2017, rooms in those segments have grown at over 15% per year and accounted for over 65% of our net rooms growth, two-thirds of our net rooms growth in those segments. As a result, we have doubled our luxury rooms, quadrupled our resort rooms, and expanded our lifestyle rooms sixfold. We've grown disproportionately in segments that yield deeper loyalty engagement, higher fees per room, something we're very focused on, and greater long-term value for stakeholders, including our hotel owners. We significantly strengthened our position in the world's most important travel markets, especially in the top 50 markets where premium demand is the strongest and most resilient. Our luxury and lifestyle presence in these markets enhances the broader system by elevating brand awareness, increasing the number of high-value hotels available to our guests, and enhancing performance across the portfolio, creating powerful network effects. And importantly, we continue to see significant white space for Hyatt's brands ahead. While we have very strong representation in the top 50 global markets, we remain underrepresented across many, many secondary and tertiary markets around the world. And we're not heavily saturated in those primary markets that we have presence in. In markets where our brands already operate, our largest public peers average roughly three to four times as many hotels as Hyatt. And in many markets, we don't have any brand presence whatsoever. Even including our pipeline, we still see substantial opportunities to grow in existing markets and expand into new ones. This is the opportunity ahead of us. Extending Hyatt's reach in markets where we already compete and entering new markets where our brands, loyalty platform, and owner value proposition position us to win over and over. Premium growth, strong owner preference, and significant white space for Hyatt's brands create a powerful value creation flywheel for Hyatt. As Hyatt expands across more markets, segments, and stay occasions, we attract more premium guests, deepen engagement with World of Hyatt, helping drive the world's fastest growing loyalty program, and in turn, it helps to fuel our growth as well. Stronger loyalty and hotel performance increase owner preference for Hyatt, supporting additional net rooms growth and further enhancing guests and owner value across the network. At the same time, our premium positioning enables Hyatt to maintain industry-leading fees per room amongst our largest public peers, while our opportunities allow us to expand without oversaturating markets or diluting the economics of existing hotels that are owned by our current owners. We can do both without impinging on their economics. Our investments in differentiated brands and focus on premium guests have enabled Hyatt to deliver compounding net rooms growth and expanding management and franchise fees. Throughout today, you've heard us talk about how Hyatt's differentiated approach creates value. And that same approach underpins our ability to grow. Importantly, this is not growth for growth's sake. It is durable. It is intentional. It is high quality growth designed to create long-term stakeholder value, including importantly value to owners. As we look ahead, we believe this strategy positions us to deliver net rooms growth of 6% to 8% per year through 2028, consistent with our historical organic growth rate. Even as we grow in scale, our confidence is driven by two pillars. The first is our premium segments where Hyatt has established differentiated leadership across luxury, lifestyle, and resorts where the barriers to entry are the very highest. We've intentionally focused on the areas of travel where demand, gross fees, and network effects are the strongest and most valuable. The second pillar is scalable brands. These brands will enable faster expansion into underrepresented markets and give our premium guests more opportunities to stay with us on more stay occasions. And third, high growth regions. These regions are where strong demand trends and meaningful opportunities position Hyatt for accelerated growth across many of the world's largest travel markets. These drivers form the foundation of Hyatt's future growth strategy and support our ability to continue delivering industry-leading net rooms growth, compounding fee growth, and greater long-term value for our guests, our members, our owners, and shareholders. Let's start with the first pillar of our growth strategy, premium segments. We built a foundation of premium brands across our portfolio. More than 50% of our rooms revenue comes from leisure travelers and nearly half of Hyatt's open rooms and pipeline is concentrated in luxury, lifestyle, and resort properties. That's up from less than a third in 2017 and a meaningfully higher mix than our largest public peers. These segments generate stronger demand, deeper guest engagement, and greater long-term value while producing roughly double the fees per key compared to other properties. Guests staying in these brands also spend twice as much across the broader Hyatt system when they're staying in hotels and brands of other brand groups. Our concentration in highly sought-after markets further elevates our brand visibility and brand preference. Over many years, Hyatt has built a differentiated premium platform that we believe is exceedingly difficult, if not impossible, to replicate. This platform provides a strong foundation from which we can continue to scale and enables Hyatt's next phase of growth. Next, let's talk about our scalable brands. With over 20 years since the opening of our first Hyatt Place hotel, our essentials portfolio complements our strength in premium segments and provides scalable brands that can accelerate net rooms growth and expand fee-based earnings in a capital efficient manner. As I mentioned earlier this morning, we know that our premium guests have unmet demand for upper midscale stays with Hyatt for different types of stay occasions. There are stay occasions where they want the care, the quality, and the loyalty benefits that Hyatt has to offer, but in markets that we don't serve and at lower price points than we currently offer. Simply put, extending a Hyatt halo lower into chain scales is powerful and there are almost no examples of extending a brand up into higher premium segments that creates a meaningful and differentiated opportunity for us given our brand halo. Our essentials brands, specifically Hyatt Select, Hyatt Studios, and Unscripted by Hyatt, expand Hyatt's share of our guest travel wallet across more stay occasions and across markets. And we're already seeing strong traction today. Our Essentials portfolio represents more than 100,000 rooms. And including our pipeline, that number goes

to over 165,000 rooms. Within the portfolio, we're seeing particularly strong developer demand for our newest brands, Hyatt Select and Unscripted by Hyatt, which are fundamentally conversion brands, allowing us to rapidly scale. On a trailing 12-month basis, signings for essentials rooms were up approximately 80%. And in the first quarter of 2026, the pipeline expanded 25% year-over-year. There's momentum in this space, and we're feeling it, and we are seeing it. This growth is expanding our system in ways that matter strategically. Nearly 70% of our first quarter signings this year are for our newest brands in new markets for Hyatt. And 85% of those signings are with new owners, new owner relationships. This proves two things. First, there's real demand from owners for this type of high branded product. And second, essentials is giving us a powerful way to grow faster across more markets, owners, and stations.

Now, let me turn to the third pillar where we believe Hyatt is especially well positioned to win: the United States, Greater China, and India. More than 70% of our hotel pipeline is concentrated in these three markets, which are among the most important travel markets in the world and benefit from strong domestic demand today along with substantial long-term outbound travel potential into the future. Starting with the US, the opportunity is very clear: expanding Hyatt where we have historically been underrepresented. Today, Hyatt has no brand presence in over 300 submarkets in the United States, and our newer Essentials brands are helping us to expand into those markets more quickly and more effectively. More than 100 Hyatt Studios, Hyatt Select, or Unscripted by Hyatt hotels are already open or in the pipeline as of the end of the first quarter of 2026.

Greater China represents a different but equally important opportunity. It is expected to remain one of the world's largest travel markets, and Hyatt benefits from decades of strong brand reputation and strong owner relationships. We've been operating in China for over 40 years, and today our pipeline exceeds 120% of our existing hotel base. In India, where we also have been operating for over 40 years, we believe that favorable demographics that will be true for the next 30 years, rising travel demand which we are already seeing, and stronger relationships position Hyatt well for the long term. And we're investing more and more in our India growth strategy as we speak. Hyatt's strength in groups, meetings, and if you know anything about hotel business in India, you know that weddings are maybe the most profitable segment, and that's where we have staked our ground. That really aligns well with the emerging demand profile, helping drive room signings up nearly 90% in 2025, and that momentum has carried through into the first quarter of 2026.

Together, these regions represent some of the most significant long-term growth opportunities for Hyatt globally, allowing us to expand our reach, deepen loyalty, and increase the value of our network. As this map builds, the starting point reflects Hyatt today. The additional dots represent our global growth opportunity. When you combine our premium mix, scalable brands, and acceleration into high-growth regions, the future scale of Hyatt becomes very clear. We've identified approximately 2.3 million rooms globally, over 1,800 submarkets where we believe Hyatt is well positioned to expand, including over 1,000 submarkets that would be entirely new markets for Hyatt. What is especially compelling is how broad and diversified that opportunity is, spanning primary, secondary, and tertiary markets around the world. The US, Greater China, and India alone represent more than half of that opportunity. And importantly, Hyatt is well positioned to capture this through the strength and breadth of our existing brand portfolio.

The growth opportunity ahead of us is substantial, and we are positioned to win. We've built a brand portfolio that gives us the ability to grow across the segments, markets, and occasions where demand is strongest. We believe in our ability to execute given the meaningful white space for Hyatt in markets where our current and future guests want to stay with us and our owners want the value that Hyatt can bring. Importantly, realizing this opportunity is not dependent on any single brand, segment, or geography and is supported by all of the competitive advantages that we are in the process of strengthening right now. Delivering strong performance and durable returns for owners gives us confidence in our ability to expand Hyatt's global reach while maintaining high-quality growth. To sum up, it's simple: we are well positioned to continue to compound growth and drive value into the future. Thank you.

Jim, welcome to the Hyatt Place Virginia Beach Ocean Park. Tim, it's beautiful. This is the breakfast area. You may recall you were instrumental in helping us kind of redesign this from the prototype to make it into what it is today. We realized that it can't be a cookie-cutter approach, right? And we know that what works in Virginia Beach may not work elsewhere. When we're developing a hotel, and like something at the oceanfront, we're very intentional about the design. You've got your brand standards, you've got all the stuff that every good franchisor has, but you also have something very important, which is a willingness to listen and a willingness to say, 'Hey, we can do this a little bit differently at this property.' And sometimes I think it actually leads to some initiatives that make it better across the brand. And we've definitely been the beneficiary of that. We thank you for that. Tim, we talked a little bit about the World of Hyatt loyalty program. From an owner's perspective, what value does that bring to you?

We talked a little bit about the network effect, right, which is the addition of new brands, new locations, and the ability really to deepen our engagement with our own members and increase their stays. It's also an opportunity for us to broaden our owner base.

This is one of my favorite views of Moshé.

With the introduction and growth of new brands, how does that impact the Inclusive Collection resorts as a portfolio through that network effect, talking about Hyatt Studios, the loyalty that it's creating in this ecosystem?

There's another point of view of the resort as well.