Q1 2023 Hyatt Hotels Corp Earnings Call

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Now like to turn the call over to know a harpy senior Vice Presidents Investor Relations. Thank you. Please go ahead.

Thank you good morning, everyone and thank you for joining us for <unk> first quarter of 2023 earnings conference call joining.

Joining me on today's call, our Mark <unk>, President and Chief Executive Officer, and Joan bought or any Heights, Chief Financial Officer.

Before we get started I would like to remind everyone that our comments today will include forward looking statements under federal Securities laws. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10-K quarterly reports important 10-Q, and other SEC filings. These risks could cause our actual results to differ materially from there.

<unk> release, an archive of this call will be available on our website for 90 days and with that I'll turn the call over to Mark.

Thank you good morning, everyone and welcomed the highest first quarter of 2022 earnings call.

I'm pleased to share financial results this quarter, but once again highlight the transformation of higher as resilient predominantly fee based in Acidly.

It was another record breaking quarter as measured by adjusted EBITDA, plus net deferrals and that finance contracts.

With some of the three numbers up 58% above the first quarter of 2022 and.

And 69% above the first quarter of 2019.

Our agility leadership and unwavering commitment to our purpose.

A testament to the dedication of our colleagues worldwide.

I wanted to express my appreciation for all our colleagues, who make Hyatt a unique and special place to work and to stay.

A record number of owners were in attendance and I was very encouraged by the enthusiasm and support we heard regarding the multiple ways, we are driving value for owners, including commercial capabilities financial performance and growth.

During the owners conference, we announced the launch of our first upper Mitzel brand in the Americas Heights Studios tailored to meet the needs of extended say travelers.

Our research indicates strong demand for this product amongst our guest base presenting a unique growth opportunity to expand our footprint and strengthen our overall network effect.

Through close collaboration with developers, we design the highest studios brand with flexibility so construction and operating costs can adapt to a wide variety of markets.

And I'm thrilled to share that we received an overwhelmingly positive response to the launch of the highest studios brand from our ownership community with letters of interest representing over 100 hotels.

We expect construction to begin later this year and the first type Studios hotel to open in 2024.

Our expectation and optimism on reaching broad scale is grounded in the brand's attractive economics.

Supportive and well capitalized developer base.

The launch of Heights Studios is part of our brothers broader strategy of creating a portfolio that drives deepening loyalty stronger connectivity and more frequent engagement with our members.

This plan to acquisition opens new opportunities for the world of high program to expand and bring in even more members with access to over 1500 carefully selected boutique and luxury properties and desirable locations worldwide.

This plan to acquisition will further drive asset like growth and enrich the breadth of experiences for our guests.

On February 2nd we completed our Dream Hotel group acquisition, which contributed approximately 1900 rooms.

Additionally, our growth during the quarter included three luxury resorts and new openings and several high barrier to entry locations, such as Bordeaux, France Davos, Switzerland.

It's also great to see conversion opportunities continuing to represent a material percentage of our net rooms growth at approximately 30% of our first quarter openings, excluding the acquisition of Dream Hotel group.

Moving onto the late latest business trends I'm pleased to report another quarter of positive momentum.

The growth compared to last year was partly aided by easier comparisons due to the impact from omicron in 2022.

Leisure demand in urban markets broadened with weekend and shoulder periods well ahead of the first quarter of 2019.

And resorts achieved another record rep part level.

<unk> 8800 membership contracts were signed for annual cheese unlimited vacation club in the quarter exceeding first quarter of 2022 levels by 13%.

Knowing capacity on a revolving credit facility.