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]

Financial Data and Key Metrics Changes - The company reported system-wide RevPAR growth of 1.6% for the quarter, or 2.2% when adjusting for the shift of Easter [10][24] - Gross fees in the quarter were $301 million, up 9.5% driven by international RevPAR performance and new hotel openings [27] - Adjusted EBITDA was $300 million in the second quarter, an increase of approximately 9% after adjusting for assets sold in 2024 [28] Business Line Data and Key Metrics Changes - Leisure transient RevPAR was up 2.6% year-over-year, with luxury brands increasing approximately 6% [10][11] - Business transient RevPAR was flat, with a decline of 1.5% in the U.S. driven by select service hotels [11][24] - Group RevPAR increased by 0.3% year-over-year, with a stronger performance in luxury chain scales [11][24] Market Data and Key Metrics Changes - RevPAR outside the U.S. performed well, particularly in Europe and Asia Pacific, excluding Greater China [25] - Greater China saw RevPAR growth for the second consecutive quarter due to increases in leisure transient demand [26] - The Americas reported a 6% increase in all-inclusive net package RevPAR compared to 2024, indicating strong demand for luxury all-inclusive travel [10][27] Company Strategy and Development Direction - The company completed the acquisition of Playa Hotels and Resorts, which included 15 all-inclusive resorts, and plans to sell the real estate portfolio for $2 billion [5][7] - The company aims to maintain an asset-light business model while expanding its brand portfolio in the luxury all-inclusive segment [8][19] - The introduction of the new brand, Unscripted by Hyatt, is expected to unlock growth opportunities through conversion-friendly strategies [18][20] 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 [13][45] - The company anticipates a challenging third quarter due to tough year-over-year comparisons but expects a positive outlook for 2026 [31][47] - Management highlighted the importance of the World of Hyatt loyalty program, which has grown membership by approximately 27% per year since 2017 [14][20] Other Important Information - The company ended the quarter with over 58 million loyalty members, reflecting a 21% increase compared to 2024 [14] - The company has a pipeline of approximately 140,000 rooms, an 8% increase over last year, with signings up over 30% [16][17] - 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 see weakness primarily due to tough comparisons from last year, but they expect a pickup in the fourth quarter driven by group and business transient travel [42][45] Question: Update on co-branded credit card negotiations - Management indicated they feel confident about the negotiations and will provide updates as they progress [50] Question: Status of hotel dispositions and capital allocation - Management confirmed that proceeds from the Playa real estate sale will be used to pay down debt, and they are focused on further asset dispositions to enhance shareholder returns [54][55] Question: Building blocks for next year's earnings - Management provided insights on expected fees from Playa, credit card deals, and organic growth, emphasizing strong group pace and leisure travel outlook [62][68] Question: Integration timeline for recent acquisitions - Management stated that integration for the Standard brand is progressing well, with early results exceeding expectations, while the Playa hotels will be fully integrated by January 2026 [92][93]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $347.8 million in Q2 2025, up 30% from $268.6 million in Q1 2025 and up 63% from $213.9 million in Q2 2024 [19] - The overall estimated EBITDA for 2025 has been raised from $1.1 billion to a new range of $1.25 billion to $1.3 billion [14] Business Line Data and Key Metrics Changes - Aerospace products generated $164.9 million in EBITDA with a margin of 34%, up 26% from $130.9 million in Q1 2025 and up 81% from $91.2 million in Q2 2024 [21] - The leasing segment posted approximately $199 million of EBITDA, with the pure leasing component at $169 million, an increase from $152 million in Q1 2025 [20] Market Data and Key Metrics Changes - The company estimates a market share of 9%, approximately double from the previous year, with a long-term goal of reaching 25% [7] - The demand for prebuilt engines and modules is growing globally, providing a cost-effective alternative to traditional maintenance [7] Company Strategy and Development Direction - The company is focusing on an asset-light business model, with plans to manage debt and achieve a strong BB rating by the end of the year [13] - The acquisition of Pacific Aerodynamic is expected to enhance operational efficiencies and further differentiate the company's offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term sustainability of the aerospace products market, driven by the aging of current aircraft and engines [16] - The company anticipates significant growth in free cash flow in the coming years, with an adjusted free cash flow target increased from $650 million to $750 million for 2025 [13] Other Important Information - The company has executed a sizable engine exchange program with a major U.S. airline, which is expected to drive repeat business and higher volumes [8] - The company is actively reviewing other M&A opportunities in the global market [12] Q&A Session Summary Question: What are the margin improvements expected for Aerospace products? - Management indicated that margin improvements are expected to be multifaceted, with potential increases of 5 to 10 percentage points in 2026 due to various initiatives [26][27] Question: Can you elaborate on the Pacific Aerodynamic acquisition? - The acquisition is expected to provide significant savings and enhance the company's repair capabilities, with a payback period of about one year [29][30] Question: What is the customer reception for the CFM56 modules? - Customer reception has been positive, with airlines recognizing the benefits of outsourcing engine maintenance to avoid cost overruns [41][42] Question: How does the company view the Chinese market opportunity? - The company sees significant growth potential in the Chinese market, particularly for engine exchanges, due to the aging fleet and limited local capacity for shop visits [112][114] Question: What is the outlook for the Strategic Capital Initiative (SCI)? - The company is optimistic about the SCI's performance and plans to decide on SCI 2 in the near future, with a strong pipeline of activity [68][69]

Financial Data and Key Metrics Changes - The company reported a system-wide RevPAR growth of 5.7% for the quarter, with adjusted EBITDA increasing by approximately 24% to $273 million after adjusting for assets sold in 2024 [14][26][30] - Adjusted EBITDA for the owned and leased segment increased by 18%, while the distribution segment adjusted EBITDA improved by 9.6% [26] - The company repurchased approximately $149 million of Class A common stock during the quarter, with about $822 million remaining under the share repurchase authorization [26][27] Business Line Data and Key Metrics Changes - Business transient RevPAR grew by 12%, driven by large corporate customers, while group RevPAR increased by 9% [14][22] - The luxury brand categories saw RevPAR growth of over 8%, contributing to a RevPAR index gain of over two percentage points [22] - The all-inclusive resorts in The Americas reported a net package RevPAR increase of over 4% compared to the first quarter of 2024 [14][22] Market Data and Key Metrics Changes - In the United States, RevPAR increased by 5.4%, positively impacted by the shift of Easter and the presidential inauguration [22] - RevPAR in Greater China was flat compared to last year, but market share increased by approximately 1% [23] - International inbound travel from the broader Asia Pacific region increased by 14% compared to last year, with RevPAR in Asia Pacific (excluding Greater China) up 11.2% [23][24] Company Strategy and Development Direction - The company is focused on an asset-light business model, with over 80% of earnings now coming from asset-light operations, compared to approximately 40% at the time of the IPO [19] - The introduction of the Hyatt Select brand aims to expand offerings in the upper midscale segment, targeting shorter stays in secondary and tertiary markets [12][20] - The company ended the quarter with a development pipeline of approximately 138,000 rooms, a 7% increase over last year [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted mixed indicators for future booking activity, with expectations for RevPAR growth in international markets to outperform the United States [16][18] - The company anticipates RevPAR growth to moderate for the remainder of the year, with a full-year 2025 RevPAR range of 1% to 3% [28][29] - Management expressed confidence in the strength of the asset-light model to navigate macroeconomic uncertainties [19][20] Other Important Information - The company is progressing with the Playa transaction, with a tender offer period extended until May 23, 2025 [8] - The company issued $1 billion of senior notes and closed on a $1.7 billion delayed draw term loan to finance the Playa acquisition [27] - Total liquidity as of March 31, 2025, was approximately $3.3 billion, including $1.8 billion in cash and cash equivalents [27] Q&A Session Summary Question: Update on line items or business units performance in a choppy macro environment - Management noted strength in the first quarter but acknowledged a slowdown in leisure bookings, particularly in U.S. resorts, while the all-inclusive business remains solid [35][36] Question: Are there cancellations or just less bookings? - Significant cancellations were noted in government business, while corporate bookings are up double digits [54][57] Question: Progress on Playa transaction and potential buyers - Management expects to sign a deal for asset dispositions but noted uncertainties regarding timing [60][62] Question: Construction landscape and cost inflation - Developers are seeing cost inflation of up to 20%, but there is ingenuity in sourcing materials domestically to mitigate impacts [66][68] Question: Confidence in Playa transaction conditions being met - Management expressed confidence in meeting key conditions for the Playa transaction, particularly regarding antitrust clearance [77][78] Question: Changes in non-hotel related fees outlook - Non-hotel related fees are expected to grow healthily, with strong results in franchise and other fees [82][86] Question: Co-brand credit card negotiations - Management believes they will achieve a competitive new deal due to the brand portfolio and performance of the World of Hyatt program [89] Question: All-inclusive business and point of sale changes - There is an increase in Canadian travelers, contributing positively to the all-inclusive segment, while the U.S. remains the dominant market [93][95] Question: Dispositions this year excluding Playa transaction - Timing for dispositions is unpredictable due to market disruptions, but management expects to close on some properties [97][98]