Hyatt Hotels (H) 2025 BofA Gaming, Lodging & Leisure Conference summary

Macro trends and travel demand

• Corporate travel rebounded after a summer lull, with group and business transient segments showing renewed strength into the year's end.

• Leisure travel remains robust, especially in high-end segments, with mid- to high-single-digit pace increases at resorts in the Americas.

• Group bookings are healthy, with positive low-single-digit growth in Q4 and mid- to high-single-digit growth expected next year.

• All-inclusive business in the Americas is up 9% for the festive season, reflecting strong demand.

• Canadian travelers are increasingly choosing Caribbean and Mexican destinations, with a notable decline in Canadian occupancy at U.S. resorts.

Market segmentation and performance

• Luxury hotel rates are sustainable due to limited supply and strong demand from high-income travelers, with 75% of travel spend from the top two income quintiles.

• The gap between luxury and upscale segments persists, with luxury up mid-single digits and upscale slightly declining.

• Mid-scale and upscale segments are more sensitive to corporate confidence and economic cycles, but this is seen as circumstantial rather than permanent.

• All-inclusive resorts, especially five-star properties in Latin America and the Caribbean, are driving growth, while four-star demand has softened.

Development, growth, and capital strategy

• Most pipeline growth is international and all-inclusive, with U.S. construction starts a minority of new growth.

• New brand launches and conversions, including Hyatt Studios and upscale brands, are expected to support 6%-7% net unit growth.

• All-inclusive projects remain attractive for capital, with stable returns and growing institutional investment, despite currency headwinds from the U.S. dollar/peso dynamic.

• The sale of Playa real estate was executed at a high multiple, with confidence in future similar transactions due to strong asset quality and integration with distribution channels.

• Park Hyatt Johannesburg recently opened in July 2025, expanding the luxury portfolio.