Investor Presentations2.q4cdn.com/278413729/files/doc_presentations/2017/...Owned Real Estate: Valuable Catalyst for Growth Chain Scale Owned Rooms Illustrative Gross Market Value

Investor Presentation February 2017

HYATT / Investor Presentation, February 2017

Forward-LookingStatementsForward-LookingStatementsinthispresenta5on,whicharenothistoricalfacts,areforward-lookingstatementswithinthemeaningofthePrivateSecuri5esLi5ga5onReformActof1995.Thesestatementsincludestatementsaboutourplans,strategies,outlook,occupancy,ADRandgrowthtrends,marketshare,thenumberofproper5esweexpecttoopeninthefuture, our expected adjusted SG&A expense, our es5mated comparable systemwide RevPAR growth,maintenance and enhancement to exis5ng proper5es capital expenditures,investments innewproper5es capital expenditures, deprecia5onandamor5za5onexpenseand interest expensees5mates, financial performance,prospectsor futureevents andinvolveknownandunknownrisksthataredifficulttopredict.Asaresult,ouractualresults,performanceorachievementsmaydiffermateriallyfromthoseexpressedorimpliedbythese forward-looking statements. In some cases, you can iden5fy forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek,""an5cipate,""believe,""es5mate,""predict,""poten5al,""con5nue,""likely,""will,""would"andvaria5onsofthesetermsandsimilarexpressions,orthenega5veofthesetermsorsimilar expressions. Such forward-looking statements are necessarily based upon es5mates and assump5ons that, while considered reasonable by us and our management, areinherentlyuncertain.Factorsthatmaycauseactualresultstodiffermateriallyfromcurrentexpecta5onsinclude,amongothers,generaleconomicuncertaintyinkeyglobalmarketsandaworseningofglobaleconomiccondi5onsorlowlevelsofeconomicgrowth;therateandthepaceofeconomicrecoveryfollowingeconomicdownturns;levelsofspendinginbusinessandleisuresegmentsaswellasconsumerconfidence;declinesinoccupancyandaveragedailyrate;limitedvisibilitywithrespecttofuturebookings;lossofkeypersonnel;hos5li5es,orfearofhos5li5es, includingfutureterroristaRacks, thataffecttravel; travel-relatedaccidents;naturalorman-madedisasterssuchasearthquakes,tsunamis, tornadoes,hurricanes,floods,oilspills,nuclear incidentsandglobaloutbreaksofpandemicsorcontagiousdiseasesorfearofsuchoutbreaks;ourabilitytosuccessfullyachievecertain levelsofopera5ngprofitsathotelsthathaveperformanceguaranteesinfavorofourthird-partyowners;theimpactofhotelrenova5ons;risksassociatedwithourcapitalalloca5onplansandcommonstockrepurchaseprogram,includingtheriskthatourcommonstockrepurchaseprogramcouldincreasevola5lityandfailtoenhancestockholdervalue;theseasonalandcyclicalnatureof the real estate and hospitality businesses; changes in distribu5on arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of ourcustomers, includingtheentryofnewcompe5tors inthe lodgingbusiness;rela5onshipswithcolleaguesand laborunionsandchanges in labor laws;financialcondi5onof,andourrela5onshipswith,third-partypropertyowners,franchiseesandhospitalityventurepartners;thepossibleinabilityofthird-partyowners,franchiseesordevelopmentpartnerstoaccesscapital necessary to fund current opera5ons or implement our plans for growth; risks associatedwith poten5al acquisi5ons and disposi5ons and the introduc5on of new brandconcepts; the 5ming of acquisi5ons and disposi5ons; failure to successfully complete proposed transac5ons (including the failure to sa5sfy closing condi5ons or obtain requiredapprovals);unforeseentermina5onsofourmanagementorfranchiseagreements;changes infederal,state, localorforeigntax law; increases in interestratesandopera5ngcosts;foreignexchangeratefluctua5onsorcurrencyrestructurings;lackofacceptanceofnewbrandsorinnova5on;ourabilitytosuccessfullyimplementournewgloballoyaltyprogram,andthelevelofacceptanceofthenewprogrambyourguests;generalvola5lityofthecapitalmarketsandourabilitytoaccesssuchmarkets;changesinthecompe55veenvironmentinourindustry,includingasaresultofindustryconsolida5on,andthemarketswhereweoperate;cyberincidentsandinforma5ontechnologyfailures;outcomesoflegaloradministra5veproceedings;viola5onsofregula5onsorlawsrelatedtoourfranchisingbusiness;andotherrisksdiscussedintheCompany'sfilingswiththeSEC,includingourannualreportonForm10-K,whichfilingsareavailablefromtheSEC.Wecau5onyounottoplaceunduerelianceonanyforward-lookingstatements,whicharemadeonlyasofthedateofthispresenta5on.Wedonotundertakeor assumeanyobliga5on toupdatepublicly anyof these forward-looking statements to reflect actual results, new informa5onor futureevents, changes inassump5onsorchangesinotherfactorsaffec5ngforward-lookingstatements,excepttotheextentrequiredbyapplicablelaw.Ifweupdateoneormoreforward-lookingstatements,noinferenceshouldbedrawnthatwewillmakeaddi5onalupdateswithrespecttothoseorotherforward-lookingstatements.Non-GAAPFinancialMeasuresThispresenta5on includesreferencestocertainfinancialmeasures,each iden5fiedwiththesymbol“†”, thatarenotcalculatedorpresented inaccordancewithgenerallyacceptedaccoun5ngprinciples intheUnitedStates (“GAAP”).Thesenon-GAAPfinancialmeasureshave important limita5onsandshouldnotbeconsidered in isola5onorasasubs5tute formeasures of the Company’s financial performance prepared in accordancewith GAAP. In addi5on, these non-GAAP financialmeasures, as presented,may not be comparable tosimilarly 5tledmeasures of other companies due to varyingmethods of calcula5ons. For howwedefine the non-GAAPfinancialmeasures and a reconcilia5onof each non-GAAPfinancialmeasuretothemostdirectlycomparableGAAPmeasure,pleaserefertotheAppendixattheendofthispresenta5on.

Disclaimer

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Key Investment Considerations

•  Globalhospitalitycompanywith60-yearhistory

•  Owner,managerandfranchiser,focusedonthe

high-endtraveler

•  Growthstrategybasedoncustomerfocus,

experiencestodrivepreferenceandmul5plelevers

ofgrowth

•  Mul5pleleversofgrowth:

—  Porgolioofbrands

—  Newhoteldevelopment

—  ExtendtheHyaRbrandbeyondtradi5onal

hotelstays

•  Strongbalancesheetandhistoryofreturningcapitaltoshareholders

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Hyatt at a Glance

56 663HOTELS

60YEARHISTORY

100,000COLLEAGUES

COUNTRIES

CONTINENTS6across

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Twelve Brands – All Focused on High End Travelers

AsofDecember31,2016.ChainscaledefinedbySTR.

LUXURY

20%

UPPERUPSCALE

50%

UPSCALE

27%

% of Systemwide Rooms

OTHER

3%

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$336 $327

$248 $227

$177 $174 $149 $128

Strong and Differentiated Rate Profile Across Brands

AverageDailyRate(ADR)

TwelvemonthsendedDecember31,2016forcomparableloca5ons.

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92,021 52%

20,595 12%

3,584 2%

10,501 6%

50,417 28%

110,589 64%

11,153 6%

10,450 6%

29,781 17%

11,561 7%

Diverse Portfolio with Strong Base of Owned, Managed and Franchised Properties

TotalRoomPorIolioMix RoomsbyRegion(1)

Managed

Vacation Ownership & Residential

Unconsolidated Hospitality Ventures

Franchised

Owned & Leased

Note:RoomcountsasofDecember31,2016.(1)Excludesvaca5onownershipandresiden5alunits.

ASPAC

EAME

Other Americas

Southwest Asia

177,118rooms/698properTes

United States

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Owned and Leased Hotels Generate Over Half of Adjusted EBITDA†

Owned & Leased56%

Americas34%

EAME / SWA4%

ASPAC6%

AdjustedEBITDA†bySegment

TwelvemonthsendedDecember31,2016.Excludescorporateandother.

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Margin and Earnings Progression

Owned and Leased Hotels Operating Margin (1)

Adjusted EBITDA† (Millions)

(1)Ownedandleasedhotelsopera5ngmarginisdefinedasthemarginonownedandleasedhotelsresultscalculatedasthedifferencebetweenownedandleasedhotelsrevenueandownedandleasedhotelsexpenseasreflectedonourconsolidatedstatementsofincome(loss)dividedbyownedandleasedhotelsrevenue.

-$43

$207 $344

$124 $204

FY 2009 FY 2013 FY 2014 FY 2015 FY 2016

GAAP Net Income (Millions)

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$425 $706 $777 $750 $785

FY 2009 FY 2013 FY 2014 FY2015 FY 2016

18% 24% 25% 25% 24%

FY 2009 FY 2013 FY 2014 FY 2015 FY 2016


GrandHyaRNewYork1,306Rooms

Owned Hotels in Key Gateway Cities

ParkHyaRNewYork210Rooms

TheConfidanteMiamiBeach

363Rooms

HyaRRegencyOrlando1,639Rooms

GrandHyaRSeoul601Rooms

HyaRRegencyMexicoCity

755Rooms

GrandHyaRRiodeJaneiro

436Rooms

GrandHyaRSanFrancisco

660Rooms

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Owned Real Estate: Valuable Catalyst for Growth

Chain Scale

Owned Rooms

Illustrative Gross Market Value Per Room

Illustrative Gross Market Value

Luxury 4,972 ~$700K ~$3.5B

Upper Upscale 12,742 ~$270K ~$3.5B

~$7.0B

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AsofSeptember30,2016.ChainscaledefinedbySTR.Excludesleasedhotelsandhotelsownedbyunconsolidatedhospitalityventures.


Expect Owned Portfolio to Continue to Evolve

Evolution of Owned and Leased Hotels

Upscale

United States

Secondary and tertiary markets

LESS

Luxury and Upper Upscale

International

Key gateway cities and resorts

MORE

KEY CONSIDERATIONS: Overall Deal Economics, Tax Impact, Market Conditions, Reinvestment Opportunities

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Meaningful New Hotel Development

•  Approximately305hotelsor66,000roomsinexecutedcontractbase

— Mixofroomsisweightedtowardsmanaged,fullserviceandinterna5onalhotels

— Expecttoopenapproximately60hotelsin2017

AsofDecember31,2016.Excludesvaca5onownershipandresiden5alunits.

Exis5ng173,534Rooms

ContractBase66,000Rooms*Rooms

Exis5ng663Hotels

ContractBase305Hotels*Hotels

*38%ofexis5ngrooms

*46%ofexis5nghotels

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Contractbasebyroomsandhotels Contractbasebyroomsandregion

Americas, 32%

ASPAC, 42%

EAME / SW Asia, 26%


Growing Presence in Key Global Markets

AsofDecember31,2016.Excludesvaca5onownershipandresiden5alunits.

Americas497Hotels

AsiaPacific83Hotels

EAME/SWAsia83Hotels

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Strong Balance Sheet

•  Significantliquidityavailabletobereinvestedover5me

•  Maintaininvestmentgradecreditra5ngthroughthecycle

•  Oneofthehighestcreditra5ngsamonglodgingpeers

•  Undrawnborrowingavailabilityof$1.4Bunderrevolvingcreditfacility

•  Adjustedleveragera5oof2.4x(1)

Balancesheetinforma5onasofDecember31,2016.(1)S&Padjustedleveragera5oasofSeptember30,2016.

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Recent Activity

Brands

•  LaunchedTheUnboundCollec5onbyHyaRin1Q’16

–  Fiveopenhotelsinthebrand’sporgolio

•  AcquiredMiravalGroupin1Q’17,includingthreeresorts

ShareRepurchase

•  Repurchased$272MinFY’16and$20Mthrough1Q’17(1)

•  $337Mremainingundersharerepurchaseauthoriza5on(1)

EnhancedClassAShareFloat

•  10.2MClassBshareswereconvertedin4Q’16

•  130.6Mtotalsharesoutstanding(39.7MClassAshares,90.9MClassBshares)(2)

(1)AsofFebruary13,2017.(2)AsofJanuary31,2017.

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Recent Openings Provide Entry or Enhanced Presence into Attractive Markets

HyaRPlaceParkCity122Rooms

Opened1Q’16

HyaRRegencyBloomington–Minneapolis

303RoomsOpened1Q’16

ParkHyaRMallorca142Rooms

Opened2Q’16

HyaRRegencyShanghai,Wujiaochang


AndazORawaBywardMarket


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HyaRRegencySydney892Rooms

Opened4Q’16

HyaRCentricWaikikiBeach


AndazScoRsdaleResort&Spa



Appendix: Non-GAAP Reconciliation Inthispresenta5on,managementhasreferredtoAdjustedEBITDA,whichisnotpresentedinaccordancewithUSGAAP.TheCompanydefinesconsolidatedAdjustedEBITDAasnetincomeaRributabletoHyaRHotelsCorpora5onplusourpro-ratashareofunconsolidatedhospitalityventuresAdjustedEBITDAbasedonourownershippercentageofeachventure,adjustedtoexcludethefollowingitems:(i)equityearnings(losses)fromunconsolidatedhospitalityventures;(ii)stock-basedcompensa5onexpense;(iii)assetimpairments;(iv)gains(losses)onsalesofrealestate;(v)otherincome(loss),net;(vi)deprecia5onandamor5za5on;(vii)interestexpense;and(viii)provisionforincometaxes.HyaRcalculatesconsolidatedAdjustedEBITDAbyaddingtheAdjustedEBITDAofeachofourreportablesegmentstocorporateandotherAdjustedEBITDA.Effec5veJanuary1,2016,HyaR’sdefini5onofAdjustedEBITDAhasbeenupdatedtoexcludestock-basedcompensa5onexpense,tofacilitatecomparisonwithcompe5tors.TheCompanyhasappliedthischangeinthedefini5onofAdjustedEBITDAtohistoricalresultstoallowforcomparabilitybetweentheperiodspresented.HyaRcalculatesconsolidatedAdjustedEBITDAbyaddingtheAdjustedEBITDAofeachofourreportablesegmentstocorporateandotherAdjustedEBITDA.TheCompany’sboardofdirectorsandexecu5vemanagementteamfocusonAdjustedEBITDAasakeyperformanceandcompensa5onmeasurebothonasegmentandonaconsolidatedbasis.AdjustedEBITDAassistsusincomparingourperformanceovervariousrepor5ngperiodsonaconsistentbasisbecauseitremovesfromouropera5ngresultstheimpactofitemsthatdonotreflectourcoreopera5ngperformancebothonasegmentandonaconsolidatedbasis.Ourpresidentandchiefexecu5veofficer,whoisourchiefopera5ngdecisionmaker,alsoevaluatestheperformanceofeachofourreportablesegmentsanddetermineshowtoallocateresourcestothosesegments,insignificantpart,byassessingtheAdjustedEBITDAofeachsegment.Inaddi5on,thecompensa5oncommiReeoftheCompany’sboardofdirectorsdeterminestheannualvariablecompensa5onforcertainmembersoftheCompany’smanagementbased inpartonconsolidatedAdjustedEBITDA, segmentAdjustedEBITDAor somecombina5onofboth.TheCompanybelieves thatAdjustedEBITDA isuseful to investorsbecause itprovidesinvestorsthesameinforma5onthattheCompanyusesinternallyforpurposesofassessingtheCompany’sopera5ngperformanceandmakingselectedcompensa5ondecisions.AdjustedEBITDAisnotasubs5tutefornetincomeaRributabletoHyaRHotelsCorpora5on,incomefromcon5nuingopera5ons,cashflowsfromopera5ngac5vi5esoranyothermeasureprescribedbyGAAP.Thereare limita5onstousingnon-GAAPmeasuressuchasAdjustedEBITDA.AlthoughtheCompanybelievesthatAdjustedEBITDAcanmakeanevalua5onoftheCompany’sopera5ngperformancemoreconsistentbecause it removes itemsthatdonotreflecttheCompany’scoreopera5ons,othercompanies inour industrymaydefineAdjustedEBITDAdifferentlythanwedo.Asaresult,itmaybedifficulttouseAdjustedEBITDAorsimilarlynamednon-GAAPmeasuresthatothercompaniesmayusetocomparetheperformanceofthosecompaniestoourperformance.Becauseoftheselimita5ons,AdjustedEBITDAshouldnotbeconsideredasameasureoftheincomegeneratedbyourbusiness.Ourmanagementcompensatesfortheselimita5onsbyreferencetoourGAAPresultsandusingAdjustedEBITDAsupplementally.SeetheCompany’sstatements inourconsolidatedfinancialstatementsincludedintheCompany’sannualreportonForm10-KfiledonFebruary16,2017.Youcanfindareconcilia5onofAdjustedEBITDAtonetincomeaRributabletoHyaRHotelsCorpora5on,themostdirectlycomparableGAAPmeasure,onourwebsiteatHyaR.comunderthefinancialinforma5onsec5onofourinvestorrela5onslink.

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Appendix: Non-GAAP Reconciliation

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Investor Presentation February 2017

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Investor Presentations2.q4cdn.com/278413729/files/doc_presentations/2017/...Owned Real Estate: Valuable Catalyst for Growth Chain Scale Owned Rooms Illustrative Gross Market Value