Summary of Hyatt Hotels Conference Call Company Overview - **Company**: Hyatt Hotels Corporation (H) - **Date of Conference**: September 04, 2025 Key Points Industry and Market Outlook - **Travel Demand**: The company has a constructive outlook for the remainder of the year, with modest total growth expected. Corporate travel is rebounding with clarity and conviction, particularly in group and business transient segments [14][15] - **Leisure Travel**: Leisure travel remains strong, with expectations for business transient travel to pick up in September. Group bookings for next year are also reported to be strong [15][20] - **Booking Trends**: The company noted a mid to high single-digit increase in leisure bookings in The Americas, indicating healthy demand in high-end leisure travel [19][21] Performance Metrics - **Luxury vs. Upscale**: The luxury segment saw mid-single-digit growth, while the upscale segment experienced a slight decline of less than 1%. This reflects a wider gap in performance between high-end and low-end customers [24][26] - **All-Inclusive Business**: The all-inclusive segment in The Americas is up 9% for festive bookings, showcasing strong performance in this category [21][32] Development and Growth Strategy - **Supply Dynamics**: The company is experiencing weak construction starts in the U.S., but the majority of its pipeline is outside the U.S., where supply growth is not lagging [40][41] - **International Growth**: The company anticipates continued growth in international markets, particularly in all-inclusive resorts, and is focusing on conversions from office buildings to hotels in China [41][42] - **Asset-Light Strategy**: Hyatt aims to achieve 90% asset-light status by 2027, with ongoing evaluations of its real estate portfolio. The company has realized $5.6 billion in proceeds from asset sales at a multiple exceeding 15 times [74][76][77] Financial Performance - **Real Estate Sales**: The company has successfully sold high-quality assets while maintaining management or franchise contracts, ensuring continued revenue streams [75][76] - **Institutional Capital**: There is increasing interest from institutional investors in the all-inclusive model, which is seen as stable and predictable, despite some currency headwinds from the weakening U.S. dollar against the Mexican peso [48][49] Strategic Partnerships - **Credit Card Program**: The co-brand credit card program with Chase has grown significantly since its last renewal in 2021. The company is in a strong position for upcoming negotiations regarding this program [84][85] Additional Insights - **Market Dynamics**: The company is observing a bifurcation in customer spending, with high-income travelers continuing to spend on luxury travel while lower-income segments are more cautious [24][28] - **Future Opportunities**: Hyatt is exploring various avenues for strategic partnerships and financial collaborations to enhance its distribution channels and overall market presence [70][71] This summary encapsulates the key insights and data points discussed during the Hyatt Hotels conference call, highlighting the company's performance, market outlook, and strategic initiatives.

General Information - Hyatt recently opened Park Hyatt Johannesburg in July 2025[1] - The presentation contains forward-looking statements subject to risks and uncertainties[2] Forward-Looking Statements Disclaimer - Actual results may differ materially from those expressed or implied due to various factors, including economic conditions, supply chain constraints, and geopolitical events[2] - The company is not obligated to update forward-looking statements[2]

Core Viewpoint - The article discusses the recent trend of foreign hotel brands, particularly in China, facing challenges and withdrawing from the market, with local brands taking over these properties. This reflects broader issues within the hospitality industry, including financial pressures on property owners and changing market dynamics. Group 1: Recent Developments in Hotel Brand Withdrawals - The Westin Hotel in Xiamen has been delisted, raising questions about compensation for guests with reservations [2][4] - Three Hyatt hotels in Jiangsu, previously under Suning Group, have also been delisted and rebranded as Suning Galaxy International Hotels [8][11] - The Grand Hyatt in Nanchang will stop using the Hyatt brand and is expected to be taken over by a local chain, Walton Hotels [13][14] Group 2: Broader Trends in the Hospitality Industry - The article notes a significant increase in hotel brand withdrawals this year, with both the highest Hyatt and highest Huayi hotels being delisted [20][21] - Many of the delisted hotels are owned by real estate companies facing financial difficulties, indicating a trend of downsizing and cost-cutting in the industry [22][23] - Since 2020, numerous foreign luxury hotels have been put up for sale, but many have not found buyers, leading to a situation where high-end properties are available but not sold [25][26] Group 3: Financial Pressures and Management Costs - The management fees for foreign hotel brands have become burdensome for property owners, contributing to the trend of delisting [29][30] - There is a growing disparity between the expectations of brand owners and property owners, with the latter prioritizing cash flow over brand prestige [32][33] - Local hotel management teams offer lower costs and more flexible processes, making them attractive alternatives for property owners [34][35] Group 4: Future Prospects for Foreign Hotel Brands - Despite the challenges, there is still potential for growth for international hotel brands in China, as indicated by new openings in promising locations [39][40] - Foreign brands are increasingly targeting the mid-range and affordable luxury markets to adapt to economic fluctuations and broaden their customer base [43][44] - The focus is shifting from merely being a city landmark to ensuring profitability and customer service, with a need for brands to balance costs and market expectations [48][49]

Core Viewpoint - Hydro One Limited has announced the pricing of a $1.1 billion offering of Medium Term Notes to finance eligible green projects under its Sustainable Financing Framework [1][2]. Group 1: Offering Details - The offering consists of three series of Medium Term Notes: $450 million of 3.94% Series 61 Notes due 2032, $300 million of 4.30% Series 62 Notes due 2035, and $350 million of 4.95% Series 63 Notes due 2055 [1]. - The Series 61 Notes will be issued at a price of $99.988 per $100.00 principal amount, Series 62 Notes at $99.928, and Series 63 Notes at $99.907 [1]. - The offering is expected to close on August 25, 2025 [1]. Group 2: Use of Proceeds - Hydro One Inc. intends to allocate the net proceeds from the sale of the Notes to finance or refinance new and/or existing eligible green projects as per the 2024 Framework [2]. - Prior to allocation, proceeds may be used for debt repayment or investments in cash equivalents in line with internal liquidity management policies [2]. Group 3: Company Overview - Hydro One Limited is Ontario's largest electricity transmission and distribution provider, serving 1.5 million customers with $36.7 billion in assets as of December 31, 2024, and annual revenues of $8.5 billion in 2024 [6][7]. - The company invested $3.1 billion in its transmission and distribution networks in 2024 and supported the economy by purchasing $2.9 billion in goods and services [7].

Core Insights - The international hotel groups are experiencing robust global growth, but the Greater China region is showing a decline in performance [1][13]. Group 1: Marriott International - In Q2 2025, Marriott's global hotel revenue increased by 5% to $6.74 billion, with RevPAR at $136, up 1.5% year-over-year [2][4]. - In Greater China, RevPAR decreased by 0.5% to $80.06, while occupancy rose by 0.5 percentage points to 68.6% [3][4]. Group 2: InterContinental Hotels Group (IHG) - IHG's global RevPAR was $91.45, a 0.3% increase, with occupancy at 69.7%, down 0.2 percentage points [4]. - In Greater China, all key metrics declined: RevPAR fell by 3% to $40.49, occupancy decreased to 60%, and ADR dropped by 2.9% to $67.51 [4][5]. Group 3: Hilton Worldwide - Hilton reported a global revenue of $3.14 billion, a 6% increase, with RevPAR at $121.79, down 0.5% [5][6]. - The Asia Pacific region showed a slow recovery, with China underperforming compared to Southeast Asia [6][20]. Group 4: Hyatt Hotels - Hyatt's global RevPAR was $151, up 1.6%, with occupancy at 73.1%, an increase of 0.5 percentage points [7][9]. - In Greater China, RevPAR increased by 2.1% to $85, while ADR decreased by 3.1% to $117 [9]. Group 5: Wyndham Hotels & Resorts - Wyndham's net income reached $87 million, a 1% increase, with global RevPAR at $47.55, down 3% year-over-year [10][11]. - The Chinese market faced challenges, with RevPAR declining by 8% [11][12]. Group 6: Market Challenges in Greater China - The decline in performance for international hotel brands in China is attributed to external factors such as tightened government budgets and increased competition from domestic hotels [15][16]. - Domestic hotels are enhancing service quality and competitive pricing, impacting international brands' market share [17][18]. Group 7: Strategies for Recovery - International hotel groups are focusing on expanding their presence in China and adapting to local market preferences [19][20]. - Strategies include leveraging social media for marketing, enhancing customer engagement through localized loyalty programs, and integrating local cultural elements into service offerings [20].

Group 1 - The article discusses recent developments in Hyatt Hotels Corporation, particularly focusing on its acquisition and disposition of Playa Hotels & Resorts [1] - The author has extensive experience in the logistics sector and stock investing, with a focus on ASEAN and NYSE/NASDAQ stocks, including banks, telecommunications, logistics, and hotels [1] - The author has been trading in the US market for four years and has diversified investments across various industries and market capitalizations [1]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended June 30, 2025, reflect a significant decrease in net income due to non-recurring gains and acquisition costs, with total assets and liabilities increasing substantially from the Playa Hotels acquisition [Condensed Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q2 and Six Months Ended June 30, 2025 vs 2024 | Financial Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,808 million | $1,703 million | $3,526 million | $3,417 million | | **Net Income (Loss)** | ($4) million | $359 million | $20 million | $881 million | | **Net Income (Loss) Attributable to Hyatt** | ($3) million | $359 million | $17 million | $881 million | | **Diluted EPS** | ($0.03) | $3.46 | $0.17 | $8.42 | - Total revenues increased by **6.2%** in Q2 2025 year-over-year, driven by higher fees and reimbursed costs. However, net income saw a sharp decline from a **$359 million profit** in Q2 2024 to a **$4 million loss** in Q2 2025, largely due to the absence of significant gains from real estate sales that occurred in the prior year and an increase in transaction costs[9](index=9&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary as of June 30, 2025 | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $15,907 million | $13,324 million | | Cash and cash equivalents | $846 million | $1,011 million | | Goodwill | $3,450 million | $2,541 million | | **Total Liabilities** | $12,020 million | $9,498 million | | Long-term debt | $5,627 million | $3,326 million | | **Total Equity** | $3,887 million | $3,826 million | - Total assets increased by **$2.6 billion** since year-end 2024, primarily due to a **$909 million** increase in Goodwill and the addition of **$1.9 billion** in assets held for sale, both related to the Playa Hotels acquisition. This was financed by a **$2.3 billion** increase in long-term debt[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $86 million | $419 million | | **Net cash used in investing activities** | ($1,120) million | ($306) million | | **Net cash provided by financing activities** | $936 million | $237 million | | **Net (decrease) in cash** | ($164) million | $349 million | - Operating cash flow decreased significantly in the first six months of 2025 compared to 2024, mainly due to higher cash payments for transaction costs, income taxes, and interest. Investing activities saw a large cash outflow of **$1.27 billion** for acquisitions (net of cash acquired), primarily for Playa Hotels. Financing activities provided **$936 million**, driven by **$2.68 billion** in debt proceeds, which was used to fund the acquisition and repay other debt[15](index=15&type=chunk)[326](index=326&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant corporate events, including the $1.5 billion Playa Hotels acquisition, subsequent asset sale agreement, and related debt financing, alongside disclosures on revenue recognition and loyalty program litigation - As of June 30, 2025, Hyatt's portfolio included **1,487 hotels** (**363,790 rooms**) across **80 countries**[24](index=24&type=chunk) - Total contract liabilities were **$2.35 billion**, with the largest portion (**$1.47 billion**) related to the World of Hyatt loyalty program[32](index=32&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 6.2% revenue increase in Q2 2025, offset by a net loss due to Playa Hotels acquisition costs and absent asset sale gains, with comparable RevPAR growing 1.6% and strong liquidity supporting strategic growth - In Q2 2025, consolidated revenues rose **6.2% YoY** to **$1.81 billion**, but the company reported a net loss of **$3 million** attributable to Hyatt, a sharp contrast to the **$359 million net income** in Q2 2024. This was primarily due to transaction costs from the Playa Hotels acquisition and a lack of asset sale gains[216](index=216&type=chunk)[221](index=221&type=chunk) - The company completed the acquisition of Playa Hotels on **June 17, 2025**, and subsequently entered into a definitive agreement on **June 29, 2025**, to sell the Playa Hotels real estate portfolio for **$2.0 billion**[213](index=213&type=chunk) [RevPAR and Net Package RevPAR Statistics](index=50&type=section&id=RevPAR%20and%20Net%20Package%20RevPAR%20Statistics) Q2 2025 Key Performance Indicators (vs. Q2 2024) | Metric | Value | Change (Constant $) | | :--- | :--- | :--- | | **Comparable System-wide Hotels RevPAR** | $151 | +1.6% | | - United States RevPAR | $158 | -0.1% | | - Asia Pacific (ex-China) RevPAR | $144 | +7.4% | | **Comparable All-Inclusive Resorts Net Package RevPAR** | $210 | +8.6% (Reported $) | - System-wide RevPAR growth in Q2 2025 was driven by strong leisure travel outside the United States, particularly in the Asia Pacific (ex-China) and Middle East & Africa regions. The US market was approximately flat. All-inclusive resorts showed strong performance with an **8.6% increase** in Net Package RevPAR[220](index=220&type=chunk)[227](index=227&type=chunk)[232](index=232&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) Fee Revenues (Q2 2025 vs Q2 2024) | Fee Type | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Base management fees | $113M | $100M | +13.1% | | Incentive management fees | $62M | $54M | +15.0% | | Franchise and other fees | $126M | $121M | +4.1% | | **Net fees** | **$286M** | **$259M** | **+10.4%** | - Transaction and integration costs surged to **$82 million** in Q2 2025 from **$10 million** in Q2 2024, primarily due to the Playa Hotels Acquisition[9](index=9&type=chunk)[261](index=261&type=chunk) - Gains on sales of real estate were only **$2 million (negative)** in Q2 2025, compared to a substantial **$350 million** gain in Q2 2024 from the sales of Park Hyatt Zurich and Hyatt Regency San Antonio Riverwalk[9](index=9&type=chunk)[273](index=273&type=chunk) [Segment Results](index=57&type=section&id=Segment%20Results) Segment Adjusted EBITDA (Q2 2025 vs Q2 2024) | Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Management and franchising** | $238M | $222M | +7.3% | | **Owned and leased** | $64M | $79M | -17.8% | | **Distribution** | $43M | $43M | -0.2% | | **Total Segment Adjusted EBITDA** | **$345M** | **$344M** | **+0.3%** | - The Management and Franchising segment's Adjusted EBITDA grew **7.3%** in Q2 2025, driven by higher gross fees. The Owned and Leased segment's Adjusted EBITDA declined **17.8%**, impacted by net disposition activity in 2024. The Distribution segment's performance was flat year-over-year[286](index=286&type=chunk)[292](index=292&type=chunk)[297](index=297&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) - To finance the Playa Hotels Acquisition, the company entered into a **$1.7 billion** delayed draw term loan (DDTL) facility and issued new senior notes. The company plans to use proceeds from the planned sale of the Playa Hotels Portfolio to repay the DDTL loans[321](index=321&type=chunk)[322](index=322&type=chunk) Debt Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total debt-to-total capital | **62.9%** | **51.6%** | | Net debt-to-total capital | **53.4%** | **32.7%** | - As of June 30, 2025, the company had **$822 million** remaining under its share repurchase authorization and **$1.497 billion** of available borrowing capacity under its revolving credit facility[169](index=169&type=chunk)[121](index=121&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that as of June 30, 2025, there have been no material changes to its market risk disclosures from those presented in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to market risk were reported as of **June 30, 2025**, compared to the disclosures in the **2024 Form 10-K**[339](index=339&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of quarter-end, while the company is integrating internal controls of the newly acquired Playa Hotels - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of **June 30, 2025**[340](index=340&type=chunk) - The company is in the process of assessing and integrating the internal control over financial reporting of the recently acquired Playa Hotels[341](index=341&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal claims in the ordinary course of business, but management does not expect a material financial impact - The company is subject to various legal claims in the ordinary course of business but does not expect them to have a material financial impact[343](index=343&type=chunk) [Item 1A. Risk Factors](index=69&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 - No material changes to risk factors were reported as of June 30, 2025, from previous filings[345](index=345&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares during the quarter ended June 30, 2025, with approximately $822 million remaining under the share repurchase authorization - No shares were repurchased during the three months ended **June 30, 2025**[346](index=346&type=chunk) - As of **June 30, 2025**, approximately **$822 million** remained authorized for future share repurchases[346](index=346&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) On August 6, 2025, the company retired 364,620 Class B common shares converted to Class A, reducing the total authorized capital stock - On **August 6, 2025**, the company retired **364,620 shares** of Class B common stock following their conversion to Class A shares, reducing the total authorized capital stock[349](index=349&type=chunk)[351](index=351&type=chunk)

Core Insights - Hyatt Hotels Corporation reported better-than-expected second-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate [1][3] - The company experienced strong demand trends across its diversified brand offerings, positioning it well for uncertain market conditions [2] Financial Performance - Adjusted earnings per share (EPS) for Q2 was 68 cents, surpassing the consensus estimate of 66 cents by 3%, while the previous year's EPS was 1.53 cents [3] - Revenues reached $1.808 billion, exceeding the consensus mark of $1.741 billion by 3.9% and showing a year-over-year increase of 6.2% [3] - Owned and Leased revenues declined by 3.2% to $304 million, and Distribution revenues fell by 5.8% to $262 million, but Other revenues grew by 10% year-over-year [4] - Net fees increased by 10.4% year-over-year to $286 million, and revenues for reimbursed costs rose by 12.2% to $945 million from $842 million in the prior year [4] Operational Highlights - Comparable system-wide hotel RevPAR increased by 1.6% compared to the same period in 2024, with all-inclusive resorts seeing an 8.6% rise [5] - Adjusted EBITDA was $303 million, down 1.1% year-over-year, but up 9% when adjusted for assets sold in 2024 [6] - Adjusted EBITDA for Management and Franchising segments increased by 7.2% and 25.6%, respectively, while the Owned and Leased segment's adjusted EBITDA decreased by 19% to $64 million [6] Balance Sheet and Liquidity - As of June 30, 2025, Hyatt had cash and cash equivalents of $912 million, down from $1.383 billion at the end of 2024, with total liquidity at $2.4 billion [7] - Total debt increased to $6 billion from $3.78 billion at the end of 2024 [7] Business Development - In Q2, Hyatt added 8,920 rooms to its system, with a pipeline of approximately 140,000 rooms under executed management or franchise contracts as of June 30, 2025 [8] 2025 Outlook - The company expects adjusted general and administrative expenses to be between $450 million and $460 million, with capital expenditures anticipated at about $150 million [10] - System-wide RevPAR is projected to rise by 1-3% from 2024 levels, and adjusted EBITDA is expected to be in the range of $1.085-$1.130 billion, reflecting a year-over-year increase of 7-11% [11]

Core Insights - Hyatt Hotels reported revenue of $1.81 billion for the quarter ended June 2025, reflecting a 6.2% increase year-over-year and a surprise of +3.85% over the Zacks Consensus Estimate of $1.74 billion [1] - The company's EPS was $0.68, down from $1.53 in the same quarter last year, with an EPS surprise of +3.03% compared to the consensus estimate of $0.66 [1] Financial Performance Metrics - Average Daily Rate (ADR) for comparable systemwide hotels was $206.47, slightly below the average estimate of $206.96 [4] - Occupancy rate for comparable systemwide hotels was 73.1%, compared to the average estimate of 73.6% [4] - Revenue per Available Room (RevPAR) for comparable systemwide hotels was $150.97, below the average estimate of $152.75 [4] - ADR for comparable owned and leased hotels was $309.18, exceeding the average estimate of $273.11 [4] - Revenues for reimbursed costs were $945 million, surpassing the average estimate of $931.48 million, representing a year-over-year increase of +12.2% [4] - Distribution revenues were $262 million, below the average estimate of $282.82 million, indicating a year-over-year decline of -5.8% [4] - Net fees revenue was $286 million, slightly below the average estimate of $288.62 million [4] - Other revenues amounted to $11 million, exceeding the average estimate of $10.43 million, with a year-over-year change of +10% [4] - Revenues from owned and leased hotels were $304 million, compared to the average estimate of $238.82 million, reflecting a -3.2% change year-over-year [4] - Gross fees revenue was $301 million, above the average estimate of $297.18 million [4] - Contra revenues were reported at $-15 million, matching the average estimate [4] - Base management fees were $113 million, exceeding the average estimate of $108.13 million [4] Stock Performance - Shares of Hyatt Hotels have returned -7.5% over the past month, while the Zacks S&P 500 composite has increased by +1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - System-wide RevPAR growth was reported at 1.6% for the quarter, or 2.2% when adjusting for the Easter shift [12][26] - Gross fees increased to $301 million, reflecting a 9.5% growth driven by international RevPAR performance and new hotel openings [28] - Adjusted EBITDA for the quarter was approximately $300 million, marking a 9% increase after adjusting for asset sales [29][36] Business Line Data and Key Metrics Changes - Leisure transient RevPAR increased by 2.6%, with luxury brands seeing an approximate 6% increase [12][26] - Business transient RevPAR was flat, with a decline of 1.5% in the U.S. driven by select service hotels [13][26] - Group RevPAR increased by 0.3%, with expectations for improved performance in the fourth quarter [13][15] Market Data and Key Metrics Changes - RevPAR outside the U.S. performed well, particularly in Europe and Asia Pacific, excluding Greater China [27] - Greater China saw RevPAR growth for the second consecutive quarter, driven by leisure transient demand [27] - The Americas reported strong growth in all-inclusive net package RevPAR, increasing by 6% compared to the previous year [12][28] Company Strategy and Development Direction - The acquisition of Playa Hotels and Resorts was completed, enhancing Hyatt's presence in the luxury all-inclusive segment [6][9] - The company aims to maintain an asset-light business model, with expectations for asset-light earnings to exceed 90% by 2027 [11][22] - Hyatt is focused on expanding its brand portfolio, including the introduction of the new brand "Unscripted by Hyatt" to capture more market opportunities [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of business transient travel post-Labor Day, with expectations for improved RevPAR growth in the fourth quarter [15][34] - The company anticipates challenges in the third quarter due to tough year-over-year comparisons but expects a positive outlook for 2026 [32][34] - Management highlighted the importance of the World of Hyatt loyalty program, which has seen a 21% increase in membership compared to the previous year [16][22] Other Important Information - The company ended the quarter with total liquidity of approximately $2.4 billion, including $1.5 billion in revolving credit capacity [30] - A quarterly dividend of $0.15 per share was paid, with approximately $822 million remaining under the share repurchase authorization [30] - The company expects to return approximately $300 million to shareholders in 2025 through dividends and share repurchases [36] Q&A Session Summary Question: Insights on expected improvement through the year - Management noted that the third quarter may face headwinds due to tough comparisons but expects a stronger fourth quarter driven by group and business transient travel [41][44] Question: Update on co-branded credit card negotiations - Management indicated that updates will be provided once more specifics are available, likely later this year or early next year [49] Question: Status of hotel dispositions and capital allocation - Proceeds from the Playa real estate sale will be used to pay down debt, with ongoing efforts to further dispose of other assets to enhance shareholder returns [54][55] Question: Building blocks for next year's earnings power - Management provided insights on expected fees from Playa, credit card negotiations, organic growth, and the impact of owned and leased properties on earnings [64][68]