Hyatt Hotels Corporation ($H)

Good morning, and welcome to Hyatt's 2026 Investor Day. It's a pleasure to welcome all of you, both here in our hometown of Chicago and on the live stream. As you may have seen from this morning's press release, we have and the presentation that we posted on our Investor Relations website, we are excited to share why we believe Hyatt is positioned to win. Before we get started, I would like to remind everyone that our presentation and comments will -- today will include forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described on this slide and in our SEC filings. These risks could cause our actual results to differ materially from those expressed in or implied by our presentation and comments. Forward-looking statements in today's presentation are made only as of today and will not be updated as actual events unfold. I'd also like to remind everyone that we filed an 8-K this morning, which includes the full presentation, along with definitions and reconciliations of non-GAAP measures. We posted the presentation to our website this morning, and a recording of the event will be available later today. We have a compelling lineup plan for today. Mark Hoplamazian will get us started by discussing how Hyatt's differentiated approach and competitive advantages deliver sustainable long-term value for shareholders. Mark Vondrasek, joined by Amar Lalvani; and Javier Aguila will then cover how Hyatt is elevating our brands, and our technology. You'll also hear from Laurie Blair, who will provide a deeper dive into Hyatt's world-class loyalty program, World of Hyatt, and how it creates value for all of our stakeholders. And later this morning, Mark Hoplamazian will return to discuss Hyatt's growth strategy, followed by a panel discussion with several of our development leaders moderated by Joan Bottarini. Joan will then discuss our illustrative 2028 outlook and explain how we believe our strategy to elevate our brands, talent and technology position us to generate meaningful shareholder returns. And then finally, we look forward to continuing the dialogue with you during our interactive Q&A session. We invite you to send in questions throughout today's presentation using the Q&A section on the webcast page or by e-mailing [email protected]. To begin this morning's presentation, it's my pleasure to welcome to the stage Hyatt's Chairman, President and Chief Executive Officer, Mark Hoplamazian.

Thanks, Adam, and good morning, everyone. I'm glad to see that everyone survived Cindy's rooftop last night. Cindy's by the way, some of you were surprised to learn is actually part of the Hyatt System, as it's an Unbound Collection by Hyatt. And Cindy is named after Cindy Pritzker. So we all celebrate Jay Pritzker as our founder and the first leader of Hyatt and his boss was Cindy. And she proved the indomitable spirit of the Hyatt family by living to 101 years old, last year, she passed away. So Andy Warhol, I think, captured her image beautifully, in that cinch above the fireplace, and we celebrate her and -- or can do spirit throughout. Before I get started though, I do have to extend a special welcome. I'm going to invite Mark Wagner and Roberto Alicea up on stage with me. Mark is the leader of this hotel and Roberto does all the work to make Mark look really good. Mark is about to celebrate his 30th anniversary with Hyatt in this coming year, not there yet.

Very close.

Very close. Right. And why don't you tell us a little bit about this place that we're in?

Well, good morning, first and foremost. My name again is Mark Wagner. First, let me just say, it's an absolute pleasure and honor. On behalf of the 868 employees that we have here at the Hyatt Regency, Chicago, some of the greatest people I've had the honor and pleasure of working with over the years. We want to welcome you first and foremost, and thank you for trusting us and allowing us to host this meeting, it's truly an honor. But as you may have noticed, we have undergone a tremendous renovation over the course of the last 2.5 years with the 2,032 guestrooms we have, both towers have been fully renovated, all of our ballroom space, and as you may or may not have noticed, there's a little bit of construction out on the sidewalk as well, but that's the finishing touches over these last 3 years. But we are experiencing a wonderful year here in Chicago, not only in the city, but obviously, at the hotel as well, and we couldn't be prouder to be able to host this and highlight once again the city and the Hyatt Regency Chicago. So thank you again for being here.

And before I let these guys go, Roberto and I got to know each other when he worked at Andaz Fifth Avenue. Roberto has an incredible life story. He came -- he grew up in the south side of Chicago in a pretty rough neighborhood and has basically gone from entry-level position to being a hotel manager of the largest hotel in the Hyatt system. And this is -- he's a shining example of what it means to bring people into this industry, and watch them grow and give them support, but he's now passing that along. It's a beautiful thing because he just promoted. He was the Head of F&B. He just promoted a colleague of ours who run F&B here in the hotel. I happened to meet her in Palm Springs, and she was extraordinarily excited to be elevated to this very important position. As you all know, as you can see from last night, F&B is one of the key priorities at Hyatt, and it has to be excellent, not good, not great, but truly excellent. And Roberto is excellent in every way. And when we gather our people together to help bring people out of the South and West sides of Chicago to employ them, they are enraptured by his own personal life story and inspired by that. So Roberto.

Thank you.

Thanks. So as much as we love sharing our wonderful hotels, we love sharing our people even more. We appreciate your interest in Hyatt and for being here and to hear a little bit about why we see such a compelling future for Hyatt. We have a lot to cover, so we're going to get going now. Let's talk about differentiation at scale and how that defines Hyatt today. For decades, we've been building something special within the hospitality industry, from our premium brands to the guests that we serve to the way we grow, it's a highly differentiated approach to building a scalable premium company. Those two things don't usually go together, but we're proving that they are powerful when put together. Our brand portfolios, our operating model, and our growth strategy, all reflect that approach. As a result, we built a global portfolio, centered around high-end experience-focused travelers, where we continue to see strong and resilient growth, highly durable growth, and no coincidence, we have the fastest-growing loyalty program in the industry, World of Hyatt. We're continuing to elevate our performance by becoming a more insights-led and brand-focused company. We've cultivated a culture that fosters innovation, and we have scale where it matters. We have a platform that drives durable fee-based earnings, and we have a track record of taking action to realize meaningful growth opportunities on a highly accretive basis. All the acquisitions that we've done have been highly accretive to value for shareholders. Today, we will share with you our plan to build on that track record and to elevate our performance even further. We believe the actions we're taking today will strengthen our position to win and deliver consistent capital-efficient growth and long-term value for all shareholders. From the very beginning, innovation has thrived throughout our properties across the Hyatt portfolio because of a bold spirit that remains a part of our culture. Differentiation is in the DNA of Hyatt. From our founding in 1957 to today, Hyatt has never tried to win by simply being the biggest or following others. We were connecting dots that we saw that others might not have seen. While much of the industry focused on scale alone, we chose a different path building a premium portfolio, creating distinctive experiences and staying disciplined about how we grow. Yes, food and beverage is a big part of that, someone mentioned to me last night that of course, they expected the food last night to be great. And it was, I think, we interspersed a bunch of Chicago specialties, but we also provided you with some other really delectable things. That approach has shaped Hyatt for the last 70 years. It has strengthened the loyalty of our guests, deepened our relationships with our owners and positioned us to drive long-term growth with a brand and business model that stand apart. A philosopher once said, "Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it." And we have been bold time and again, investing in bold ideas that have had big impact. Let me give you some examples. We took a legacy defining risk on the Atrium concept with the Hyatt Regency Atlanta in 1967. The Pritzker's literally bet the company on the acquisition of that hotel. The storing space, which led all other industry players to conclude that it would not work because it was so inefficient to have all this empty space in the middle of the hotel actually was an expansive view that gave guests a sense of awe and true wonder. When they walked in, they looked up and they said, "Oh, my gosh," because it was 20 stories of open space with a towering elevator, complex of elevators running up through to the revolving restaurant on the top of the hotel. It helped establish Hyatt as the Atrium hotel company because we went with John Portman and started opening big Atrium hotel companies in Houston, in -- at O'Hare Airport, in San Francisco, in many, many locations, and strengthened our position by bringing architecture into the hotel experience, really, for the first time, architecture became important, hence, the Pritzker architecture prize. And we attracted a more premium experience-focused guests. Hyatt was the place to be. In those big atriums, we had the most vibrant bars, the best restaurants and there was a vibe. We've been very deliberate in how and where we grow as well. In 1969, when the rest of the industry was looking to Europe for international expansion, we went to Asia. That was a big call early that Asia was going to be a powerhouse economic driver engine for the world going forward. And that bold decision led to Hyatt having a stellar reputation and brand strength across Asia to this day. The Hyatt Regency Hong Kong was renowned serving Continental Cuisine in the epicenter of Cantonese cooking. It was unprecedented. More recently, in 2021, during one of the most uncertain periods in our industry, we acquired Apple Leisure Group. While others paused and played it safe and maybe even took a step back, we took a step forward with conviction, and we immediately became the largest brand operator for all-inclusive resorts, luxury all-inclusive resorts in the world. And through 7 decades of growth, innovation and transformation, our culture has actually remained the key differentiator for us. It's been the backbone of Hyatt since the beginning. More than a decade ago, before the word purpose or the concept of purpose became a fixture in corporate boardrooms, we articulated our purpose. We care for people so they can be their best. This simple 10-word idea has become our superpower and continues to guide and shape how we lead and how we grow. Our purpose of care is Hyatt's North Star. It's our foundation. It informs our culture and drives everything that we do. Even as we remain steadfast in our commitment to our purpose, and we do, we believe that the opportunities ahead can redefine what Hyatt becomes next. And we have an expansive view of the future. We have powerful competitive advantages that are the foundation of our future. In short, most importantly, Hyatt serves a high-end traveler across the globe in every segment that we serve, and our portfolio reflects that. Our portfolio of premium brands focuses on the high-end traveler in each segment. Our core guest base has proven to be resilient and consistently prioritizing travel over and over again. Our loyalty program, World of Hyatt drives deeper engagement through guest experiences, not just stays. Our value proposition is compelling to owners, and we have meaningful growth opportunities ahead, supported by multiple levers to accelerate growth, and also a record pipeline of over 150,000 rooms to support that growth. So I'm going to walk through each of these in more detail. Over the past 5 -- 1 year, sorry, past year, we've aligned our teams around 5 distinct brand portfolios to better capture the growth opportunities that we see across our brands. We organize these brands in these portfolios by the guests and customers who concentrate their stays around those brands and the owners who tend to focus their holdings and developments on those brands as well. This positions each brand portfolio to attract higher-value demand, operate with greater focus and drive stronger performance. More clarity across our brands enables us to go to market in a much more focused way and a meaningful way for guests and owners. Our luxury portfolio, for example, delivers personalized high-touch experiences for the most discerning travelers. Our Classics portfolio consists of properties just like this one, timeless style, impeccable service and thoughtful amenities. In these types of hotels, we welcome large groups that come together for meetings and events as well as guests who are celebrating some of life's most important moments. Our Essentials portfolio delivers reach into new markets, consistency and efficiency at scale. And we will have our brand leaders for the lifestyle and inclusive brand portfolios joining us later today to highlight what makes their portfolios unique. Today, our operations, design and development teams are aligned by brand portfolio. This ensures consistent brand focus from development all the way through ongoing operations. This evolution to a brand-focused organization has become even more important as consumers discover and choose travel through tools and platforms that prioritize personalization and intentional experiences. That is why an intent-based generative AI search capability, which we have had in -- which we've had at the front-end of hyatt.com for over 1.5 years, has been critical in allowing us to care for our guests better. And at the same time, it's allowed us to learn so much more about their preferences. We also recognize that our guests engage with Hyatt on many different stay occasions across our brand portfolio. That could mean attending a conference at a Hyatt Regency, staying at a Hyatt Place for a child's tournament over a weekend or celebrating a big event at the Chicago Athletic Association. Hyatt's portfolio of brands ensures that we can care for our guests on each of these occasions in a more personalized way. We're increasingly seeing guests engage with multiple Hyatt brands over time, and this positions us to deepen our relationships, increase loyalty, and expand our share of their travel wallet. It all begins with our guest base. Today, in the United States, the top 40% of households account for roughly 75% of total travel spend, go to where the money is. And within that group, the top 10% are traveling much more frequently and spending significantly more per trip. Now 70% of Hyatt room nights originate from the U.S. These U.S. travelers are prioritizing travel and experiences over goods, and that's been true for a while. We've been focused on these guests for decades with our positioning anchored in luxury and upper upscale segments. Our guests are spending more with Hyatt. For example, Hyatt guests spend over 25% more per stay compared to our competitors. Even as U.S. travel demand has recently shown more variability across the income levels, our performance has remained consistent, durable and very strong. When you pair a premium guest base with a loyalty program designed around our purpose of care, you get World of Hyatt. The program goes way beyond a traditional transaction-based loyalty program, delivering meaningful value and experiences, including differentiated elite member benefits, which Laurie Blair will talk about more later, transparent award pricing and high redemption value. The results of our differentiated approach have led to a significant increase in our membership base and greater loyalty room night contribution for our hotels. Now turning to the compelling owner and developer value proposition that I mentioned earlier. Our focus on high-end travelers has led to each of our brand portfolios operating at a RevPAR index premium. When you pair this with the high-quality and low-cost distribution mix through Hyatt's direct channels, and you add to that our operational excellence led by people just like Mark and Roberto, you'll see that we drive margins for owners and cash flow for them as well. That's the value proposition in combination for our owners. Our World of Hyatt members now represent approximately half of occupied rooms globally. They spend more, return more often, and by virtue of building engagement with them, drive higher-value demand. For example, 70% of our room nights are booked through Hyatt's direct channels. And World of Hyatt is a very, very important piece of that 70%. We expect to increase levels of member room nights as World of Hyatt continues to scale, which it has been scaling and growing at 18% to 20% compounded year-over-year. Rooms revenue is just one area of focus. We're also focused on food and beverage, as we've talked about and as you experienced last night, and wellness offerings and how we translate those revenue streams into the bottom line. We focus on optimizing every single line of the P&L. And this leads to enhanced growth opportunities. We have grown in a meaningful way over the last decade with relevant scale, especially in luxury, upper upscale and upscale chains. And yet, we still have significant opportunities to broaden the choices available for our guests and members to stay with us in existing markets while growing our brand presence in new ones. We built a record pipeline of about 151,000 rooms, which supports our future growth and nearly 40% of our pipeline is in markets where we do not have any brand presence today, 40%. As we grow, we're strengthening our network driving more demand through the system, leveraging Hyatt's brand equity and increasing the value to guests, owners and shareholders. These opportunities build on the scale we've already have, and give us confidence in our ability to deliver 6% to 8% net rooms growth through 2028. I'm really excited about our momentum, and it's palpable. We all feel it. There's a great deal of excitement and energy in the Hyatt family right now. We have strong competitive advantages and a very, very long runway for growth. So now let's dive into how we will elevate performance and sustain our -- and really strengthen our competitive advantages into the future. Brands, talent and technology, working together will help us move faster, perform better even in an increasingly dynamic and competitive environment. It starts with our brands. We sharpened our brand focus to strengthen differentiation, improve consistency in the guest experience and drive better performance. This will also make us an even more attractive choice for owners. Talent, passion is about cultivating our culture of care and performance will help drive our growth. We will develop leaders who relentlessly focus on quality and continuous improvement pairing empathy with action. We will further elevate our technology using tools, data and insights to benefit all stakeholders. Our approach is grounded in a simple principle. Technology should enhance the human connection not replace critical thinking or judgment or human connectivity. Technology allows us to scale performance and AI is a strategic enabler embedded in Hyatt's operating model across the entire enterprise. We're using tools, data and insights to better engage with our guests across their travel journey and to support our colleagues by reducing friction in their daily work, taking administrative tasks off of their responsibilities, enabling faster and better-informed decisions. As AI increasingly shapes customer decisions, we believe that companies that win will be those with the clearest understanding of their customer and the strongest brand coherence. That's the way travel distribution is going to work in the future. And that's why Hyatt's evolution toward more insights-led and brand-focused organization is strategically important. It positions us to compete from a place of clarity, consistency and most importantly, trust. Recent studies show nearly 2/3 of millennials prefer AI-assisted personalized travel planning. We believe utilization of AI distribution tools will become more important over time. So now let's take a closer look at each of these drivers, starting with our brands. And I want to share a few examples with you. The first is the Hyatt Select brand, which we launched last year. The Hyatt Select brand started with two simple insights. First, our guests wanted to stay with us more, particularly in markets where we didn't have a brand presence. We had already identified this phenomenon when we created the Hyatt Studios brand. When our members stayed with a competitor, and we have the data to prove this, it was because there wasn't a Hyatt within 5 miles of that spot. Second, owners will be -- were looking for opportunities to grow with Hyatt, particularly in a transient-focused upper mid-scale space that was conversion-friendly and could be brought to market quickly and very efficiently. We launched the Hyatt Select brand to meet the needs of our guests, and our owners at the same time, expand our brand presence to serve guests in new markets and generate attractive returns for owners. The momentum we are seeing is incredible. The first properties opened only 8 months after announcing the brand, and we already have built a very strong pipeline with many more hotels in the funnel. A second example. This is the beautiful Manhattan suite at the Park Hyatt, New York, in one of the most important luxury markets in the world. It is long commanded one of the highest average rates and RevPAR, Eddy Park Hyatt Hotel in our portfolio. And yet, we saw an opportunity to unlock additional value through insights. In 2022, our hotel team, the asset management team, commercial operations and the operating team came together to evaluate what opportunities existed. We were looking to further elevate our most premium offerings and better utilize underutilized space and capture a greater share of ultra-luxury demand. We took a very disciplined and insight-led approach. We refined our target guest strategy and built new relationships, new channels, new access points in the ultra-luxury space. We also rethought our product offering. We invested $14 million to reposition space in the hotel, and we did create within that budget, a new ultra-luxury suite at the top of the hotel, designed to attract highly discerning clientele. Started with the insight led to the design to serve that guests and the results speak for themselves. The hotel's RevPAR index has increased significantly, and the hotel now ranks #1 in one of the toughest comp sets in the world. All of the major stratospherically known luxury brands are in our comp set, and we're #1. EBITDA has increased 85%, while increasing -- while realizing significant cash-on-cash returns on the $14 million investment. These are 2 clear examples of the Hyatt Select example in the Manhattan Suite of how we use insights, a brand focus and disciplined execution to expand our network and unlock new growth opportunities for Hyatt. We're elevating the high end, and we are extending our reach in the upper mid-scale at the same time. The right talent and focus bring these insights to life. When we talk about how talent enables and elevates future performance at Hyatt, it starts with how we lead, namely with empathy. Our culture, specifically our purpose to care for people so they can be their best is a true competitive advantage. It's not a tagline. It's not a marketing gimmick. It's actually who we are, and why we exist. It shapes how we operate, how we set expectations, and how we hold leaders accountable. In practice, that means leaders take ownership of outcomes that they are seeking to achieve, they collaborate efficiently and very importantly, they develop talent and adapt in a dynamic environment. Roberto -- my story of Roberto is a perfect example of what talent development in action actually is. We continue to reinforce this through disciplined investment and capability building. We focus on the skills that matter most to performance, including how leaders prioritize, how they make decisions, and how they lead teams. The result is a responsive organization that operates as one enterprise, moving faster, executing more consistently and delivering strong performance across the portfolio. Our leadership talent is focused on the highest value opportunities always. It's a constant reflection on reprioritizing and being strict about what we focus on. These include strengthening brand positioning and accelerating growth in priority markets. Talent becomes even more powerful when paired with the right technology. We've been investing strategically in technology for many years, and we will continue to do so to elevate our performance. We've built the infrastructure, governance and capabilities to operationalize AI across the whole business starting over 2.5 years ago. We use it to care for our guests, customers and owners in a much more personalized and effective way. We're not eliminating humans, we're simplifying and enhancing the colleague and owner experiences to give them more time to care for our guests and customers, and for our owners, to get what they need in optimizing the performance of their hotels. It's not about activity. We don't measure activity. We want impact. We want results. That's what our KPIs are. We're personalizing the guest experience at scale, driving deeper engagement and greater loyalty. And by the way, in segments and for guests where that matters a lot to their decisions about travel. We're streamlining operations and empowering our colleagues, reducing friction, and improving service delivery. And we're leveraging data and insights to optimize performance, enhancing how we price, how we sell, and how we operate our hotels. Mark Vondrasek will talk a little bit about this in a few minutes. As a result, we expect stronger loyalty contribution, higher revenue per booking and greater hotel performance and profitability. You're going to hear more this morning about how we're applying these capabilities across the business, building on innovations like intent-based search on hyatt.com. Our ChatGPT integration and expanding into areas that drive both guest experience and operational efficiency at the same time. The work we're doing to elevate our brands, talent and technology is sustaining and strengthening our competitive advantages and generating strong financial outcomes for our owners and for our shareholders. We've delivered the highest RevPAR growth in the industry over the last 5 years straight. That has translated into strong owner returns and economics. We've achieved industry-leading net rooms growth for 9 consecutive years, and we have an extremely long runway ahead of us. And we're seeing strong momentum in our fee-based earnings as well. We expect durable fee growth over time as we elevate hotel performance and expand the system at the same time. As we scale, our asset-light model will enable margin expansion. And that margin expansion leads in turn to higher free cash flow conversion over time. With most of our earnings coming from capital-efficient management and franchise fees, Joan will talk much more about this during her review of our financial outlook. Wrapping up, it's clear. Hyatt is for many reasons that I just covered, a very compelling long-term investment. Our model is unique because we have a differentiated approach and differentiation at scale, which is very hard to achieve. And we serve the high-end traveler across every segment in which our brands exist. We have a compelling strategy to elevate performance. We will continue to evolve into a more insights-led and brand-focused organization that sustains and strengthens our competitive advantages and drive stronger outcomes across our portfolios. In short, we are positioned to win. We built a business model that is scalable, resilient and built for long-term performance, durable long-term performance. The next era of Hyatt is already underway. And you'll be hearing a lot about it from several members of our leadership team this morning. So coming up next, to discuss some of the great things that we're doing to elevate our brands, technology and our technology are Mark Vondrasek, Amar Lalvani and Javier Aguila and Laurie Blair. To start us off, I'm pleased, thrilled to invite Mark V, as he is affectionately known around the company. I'm Mark H, too many Marks, who is our Chief Commercial Officer and the master of all things. So Mark, welcome.

Thank you, Mark, and good morning, everyone. It is great to be with you again. Mark framed Hyatt's story through 3 verticals: differentiation at scale, elevating performance and truly being positioned to win. And that's really where I want to pick up this morning, how we are continuing to build on our strengths, how our work comes to life through an insight-led approach through our brands, and how we're scaling all of that across our system with the smart use of technology and AI. And importantly, how we win a bit differently from those with whom we compete. At the core of our approach is a fairly simple premise. We listen, we start with, and we're led by insights, we gladly and openly co-architect everything we do with our stakeholders, our guests, our customers, our owners and our colleagues. It's a subtle nuance of approach, true to our purpose of care, but it matters a lot here. This approach allows us to build stronger, more differentiated brands. You'll see that today, brands that attract higher-value guests and drive deeper loyalty. And we scale all of that through technology, which ultimately drives performance and growth, but let's start with insights because our brands sit at the upper end of the segments they serve, they are designed to attract higher spending and more resilient guests and customers. And we clearly see this outperformance in our data. Nearly 40% of Hyatt's guests are in Visa's top quintile affluence category, well above the travel benchmark. Our guests spend 26% more on lodging overall and 25% more per stay compared to our competitors. So that higher-value mix is a key insight and an incredibly valuable starting point for us. We build from these insights. We understand what our guests and customers truly value, and where today, those needs are not being fully met across their travel journeys. Many, if not most of our most impactful initiatives are shaped directly by the people whom we serve. Let me start with what I think is a clear example. We are and have been focused on infusing well-being into our meetings and events. Why? Because what we heard from customers was crystal clear. The more we can embed well-being into a corporate meeting or event, the more we connect to a need our customers had and want for their own colleagues. And that need is to not lose the importance of well-being in people's lives when they travel to a corporate meeting or event. And we believe we have an authentic license to do this well here at Hyatt. This focus on well-being reflects a structural shift as well. The global wellness economy is growing at over 7% annually. A recent human group study showed that over 60% of Miraval brand guests reported reduced stress even 2 months after they stay with us. I mean that's pretty incredible. We have worked hard to scale that kind of amazing capability across our entire brand portfolio as it relates to well-being for meetings. And it's working. Through our well-being collective now across approximately 200 hotels with over 125 curated experiences, we are bringing well-being to meetings and events for our group customers at scale. One example at Alila Ventana Big Sur in California, one of our best resorts, leadership retreats, take teams into the Redwoods for immersive experiences that foster connection and push them on new ways of thinking about their own teams and leadership. They join a renowned master Falconer to learn about the role of Raptors in the Big Sur environment. They can see a flight demonstration. They even have an option for an up-close interactive encounter with the birds of prey. And it's not just about amazing outdoor experiences, which I think we do really well, it's also simple practices that we have now embedded thoughtfully into meetings and events, like starting with gratitude offerings and what you're just grateful for today that brings you into that meeting with a clearer mind and intention setting. We've also extended content through partnerships with Headspace, including their content focused on better sleep. We partner with MasterClass and a number of offerings they give us. And Peloton, where World of Hyatt members can earn points and compete with one another. Meetings are an enormous part of our business at Hyatt. And this work particularly helps our classic hotel brands like the Hyatt Regency that we're in today. We have now scaled this capability, training 1,500 leaders across our properties to offer well-being-infused meeting content. And the impact is clear, greater than a 20-point lift in guest satisfaction. We are growing share with 70% of our top 30 corporate accounts. Same corporate accounts, our competitors compete in, represents nearly $500 million in revenue for us. Let's take a look at how a few of our corporate meeting customers are experiencing our work in well-being for meetings. [Presentation]

This work is differentiation at scale. It's born from an insight fueled by a strong authentic wellness brand in Miraval, now translating directly into performance for us. The next few examples I wanted to share this morning are through the lens of 2 of our brand portfolios. Our Lifestyle Group and our all-inclusive portfolio. And so to do that, I would like to welcome up our President and Creative Director of our Lifestyle Group, Amar Lalvani, and our President of our Inclusive Collection, Javier Aguila. And we'll start with Amar. Over to you.

Thank you, Mark. It's good to be here with everybody. Mark and I go way back, and I couldn't imagine 20 years ago, we'd be sharing a stage like we are today. So it's an honor to be here. I want to thank him for his support as well as Mark's support and bringing my team on board. So I thought I'd start first a little bit about my background, not because I like to talk about myself, but because it will give you an insight into how my mind works, and how -- and why I'm so passionate about the direction that we're headed for as a company. My first job out of college was at Starwood Capital Group. I think I was the third analyst ever hired there. And the reason I went there as the second analyst was a friend of mine, and he said it's an interesting place to be. For some reason, Barry Sternlicht, Chairman of the company, took a liking to me, and I became the first assistant to the Chairman. One day, he called me into his office, and he said, "Go down Greenwich Avenue and buy yourself a tie, we're going to the city." Okay? So I went, bought myself a tie. And he picked me up, and he said, so what are we doing? I said we're going to go buy ITT Sheraton. And over the course of the year, we bought ITT Sheraton, which became -- we became the biggest hotel company in the world for a period of time. I had no idea what I was doing, but I did work on it. I then went on to work for Blackstone, where I got a real appreciation for capital, capital partners, how capital investment works. And then my journey started on the lifestyle business -- hotel business. I was asked to come back to Starwood Hotel this time and lead the W Efforts in the Europe, Africa and Middle East region. We started from scratch. No Ws. No one knew what I was talking about. No one knew what lifestyle hotels work. It was a bit of a stretch, but we did it. I was then asked to lead the W Hotels initiative globally. At that time, we had the market to ourselves. It was a very, very exciting role. One thing led to another, and I led a guy -- I met a guy named André Balazs, who founded the Standard brand, and he asked me to come on board to help -- build Standard into a global company, global brand. And I thought the brand had great DNA and so I joined him. Two years into it, I realized he was impossible to work with, and that the only way to do it would be if I bought the company from him. So I found a way to do that, and that's when we were off to the races. We then bought Bunkhouse Hotels. And over the course of a decades, we built brands with an asset-light global footprint and that were attractive enough for Hyatt to acquire. We had no global distribution platform, no balance sheet to speak of and no loyalty program. It was difficult. The brand had to be our competitive advantage. The brand was all we had. We had no choice. I was -- I'd love to hear Mark's example about the Pritzker bet. For us, we had to nail every single hotel we opened or there would not be another one. So it's not a stress to say that every hotel was a best of company execution for us. And what that taught me, is what brands are capable of, when you treat them as your most important assets, and that's where we're headed. Having grown without that infrastructure, it was a dream come true for me and for our team to join Standard and broadcast brands to Hyatt's global scale, financial wherewithal, an industry-leading World of Hyatt program. Now let me explain why the brand-led model is so powerful. It's quite simple. It compounds. Let me explain that. Differentiated talent with a guest-centric insight-driven mindset creates brands that deliver experiences on property that guests seek time and time again. What that does is, it deepens guest loyalty, increases their spend, at the same time, it lowers customer acquisition and distribution costs, which collectively when you put that together, it's pretty easy to see that, that drives financial performance. Now to drive financial performance, you attract higher-quality owners and developers who build higher-quality hotels and higher-quality mixed-use developments. What does that do? That accelerates our growth and improves the quality of our growth at the same time. That's the magic. Now this strategy is not easy to replicate because it's based on a culture, a culture that Mark H. described. And it's based on -- it's enabled by our smaller scale. Our scale is an advantage for both quality and the rate of growth. And that's the really exciting part. We have a wide open playing field across the entire globe for these brands. And that's what gets me excited. Now, this is not just a theory. We're seeing evidence of this flywheel in effect right now within the Lifestyle Group. I'll give you examples. The Andaz Fifth Avenue, which many of you may know that hotel, we achieved record performance in 2025. Record performance against a very aggressive budget. What did that record performance do? It led to that ownership group choosing to do a new Andaz across the world in Japan, the Andaz Hiroshima, which will be opening, which is under development now. Another example, the success and cultural relevance of our Bunkhouse properties in Austin created the opportunity with one of the owners to do the Standard in Austin, which is coming soon, to what is one of the highest barrier-to-entry submarkets in Texas. And Joan, it's a quick conversion. The stellar performance of the Park Hyatt in Zurich led that owner who is one of our most important owners to acquire the Standard London. What does that do? They extended the hotel contract for the -- for our brand's flagship hotel in Europe creating durable cash flows and a beacon property that sparks new development for the brand across the region. Staying in Europe, after successfully opening the Thompson Madrid, that same owner signed the Thompson Seville, who is opening this fall. Yesterday evening, I was talking to Ignacio, who may be here, and he said, "You know what, Spain would be great for your brands." I said, "I totally agree." He said, "It will be great, Seville would be great." I totally agree. He said, "You know what Seville needs?" I said, "What?" A great rooftop. So give me 3 months. So another example, after years as the #1 hotel and TripAdvisor, the Standard Miami Beach helped drive a 225 sold-out stand-alone branded residential project in Midtown Miami. No hotel stand-alone branded residential based purely on the power of the brand and the experience. We began delivering units to buyers over F1 weekend. It has premium pricing and faster sellout than its competitors. Similarly, the success of the Thompson Cape and Cabo, which is a beloved hotel and residential project there has led to several Thompson mixed-use developments throughout Mexico. These are proof of high-quality owners choosing Hyatt without competitive processes because of the type of customers we serve, the strength of our brands and the performance that they generate. Now I talked about how it compounds. The next important thing is this model is also scalable. It does not require additional headcount or additional capital. It does not. It requires a reorganization around brands and the reorientation of mindset. A mindset that views the business through a brand and customer lens first and foremost. And it requires teams that live and breathe the brands as passionately as I do. Approximately 18 months ago, the Lifestyle group took full end-to-end P&L responsibility in the Americas. This is a different structure. And I'll tell you, I'm very proud, the properties experienced no operational disruption, and our brand-centric focus is showing real results across multiple metrics, guest experience metrics, media value, financial performance and pipeline growth, all while reducing the need for capital deployment. How do we do it? We have refined the positioning of each of our brands to make sure they are distinct, truthful, ownable and executable. And I'm thrilled to see that we're coming to life in very tangible ways at our hotels. Key examples. The new Andaz and Lisbon, which embraced the positioning of the Andaz brand, embodies the Andaz promise, global travel rooted in local culture in real truly immersive ways. For example, the Andaz Lounge downstairs exclusively serves wines made by local female winemakers. You feel enriched when you're there, you learn something, you try something new, and you don't forget it and you want to come back. The Standard Brussels, we just won more hospitality design awards than any other hotel in the world. Best Uniforms, okay; Best Lifestyle Hotel, great; Best in Show. What that means is the best-designed hotel in the world across every segment. That's a big deal for hotel in Brussels. I'm really proud that of the 3 runners up, 1 of them was the Bunkhouse Hotel Daphne. So 2 of the 4 hotels up for best hotels design in the world were Hyatt brands, which is pretty cool. And -- but it also shows an example of how much runway we have because the Standard in Brussels is the first Hyatt Hotel in the European capital. It's just an illustration of how much runway we still have for all of our brands. And in Andaz, Miami during Formula 1 weekend. Laurie Blair and her team brought together top tier owners, globalist travel advisers and press in a way that demonstrated the power of the combined World of Hyatt ecosystem with our brands. So what are we doing with all this? We're using the Lifestyle Group as a proof point for how a brand-led operating model can create stronger guest loyalty, deeper owner relationships, better development opportunities and superior financial performance. Our mission is to help Hyatt turn into the most differentiated and most innovative hospitality company in the industry. And we are -- we will get there. I can promise that. So -- and why do we do all that? So we become the brand of choice for guests, owners and developers and the company of choice for shareholders. Now I'll show you a little short video that should bring some of my comments to life. [Presentation]

Thanks, Amar. I'll say what he's too humble to say. I think what's clear is that we didn't just acquire 2 strong lifestyle brands in Standard and Bunkhouse, we have decided to build from them, through Amar and his incredibly talented team. Next up, our all-inclusive collection. The last time we were together, and I think this is a strong example of how we are also expanding our reach while strengthening differentiation. Last time we were together in 2023, we were just integrating these brands. Today, they've become a very powerful growth platform in our portfolio. to share a little bit more about that growth and platform today. I'll turn it over to Javier Aguila.

Thank you. Thank you, Mark. Good morning, everyone. It's a pleasure to be here. Let me start by saying this. Hyatt is winning in the leisure segment. And more importantly, we are winning differently. As Mark said, we made our all-inclusive debut in 2013. And at the time, we have only 2 resorts. Today, we had 155 and more than 58,000 rooms that contribute to a substantial part of high-end business. And it's driven by some of the highest GOPs per room in the highest portfolio. But as you said, Mark, scale is only part of the story because we already have the most enabled powerful platform in all-inclusive. In fact, when you combine World of Hyatt, ALG Vacations, and our Vacation Club we have one of the most powerful commercial engines in the industry and in this particular segment. That engine today drives over 60% of revenue across our resorts portfolio in the Americas. And that is an exceptionally high number for all-inclusive. And that number accelerates our journey to become the all-inclusive brand of choice, and that strength is also mutually reinforcing because it stays in our resorts, make our broader commercial engine even stronger. How? all-inclusive properties are among the biggest contributors to World of Hyatt, because we drive almost 1 million new enrollments every year in our resorts. In 2026, so far, our properties have enrolled roughly 60% of nonmember resort guests, but our ambition is much bigger than that. We want to become the best global organization in all-inclusive in the world. Let me show you how we are thinking differently about the guest experience because this is a big part of what has helped us win again differently. F&B is key. F&B is key -- is a key driver of guest satisfaction in our business. And a favorite example is Hyatt Ziva Cap Cana, a resort that stands out not only from a guest perspective -- guest experience perspective, but also from a performance perspective. Hyatt Ziva Cap Cana is home to the Blind Butcher and the Blind Butcher is a speakeasy that combines live entertainment with an immersive culinary journey. Now you may say that the idea of entertainment is not new in itself and that is true, but what makes the Blind Butcher different is the execution, because we are constantly innovating behind the scenes to keep the concept both compelling for guests and profitable for owners by generating meaningful non-package revenue. In fact, on weekends, a significant number of those visits in the Blind Butcher are not even staying at the resort. And this is the kind of differentiated concept that we're looking forward to replicate across our entire portfolio. Let me give you a couple of more examples. Shinola and Secrets La Romana, where we offer a unique dining experience. Toes in the Sand inspired by the Taino indigenous culture who were pioneers in the use of barbecue-style cooking over open fire. Another one is Casa Adelita, currently under development at Hyatt Zilara Cancun. Casa Adelita is designed to feel like being welcomed into a Mexican grandmother home for an intimate dinner center around personal interaction. And also at Secrets Playa Blanca Costa Mujeres, the hotel has collaborated with a premium tequila brand to create an exclusive numbered hotel-branded edition available for very special events. And as you can see, we are reinventing all-inclusive F&B while creating non-package revenue streams that go well beyond the typical spa treatment, upgraded wireless or romantic dinner. And that is part of a broader evolution across our entire portfolio because we are elevating our brands. We are creating greater clarity around what each one stands for, and we are evolving from brand standards to adding stronger brand codes because this is not about having 6 pillows on a bed. This is about how you feel when you lay down. And all of that combined is help us win this segment again differently. This evolution true to our insights-led journey is also backed by some really exciting new consumer research that is helping shape our strategy. Let me share some of it with you. First, all-inclusive is no longer in each category because nearly 7 in 10 travelers had experienced it at least once. And guess what? Once they do, they come back, more than 80% of them come back and they do multiple times, creating very meaningful loyalty. But maybe the data point that I find most exciting is what we are seeing among very young travelers. More than 70% of travelers under 30 are now more likely to consider all-inclusive than they were 5 years ago. And that tells you -- tells us that it's not only a category that is strong today. It is a category that has an even stronger future. So let me close with this. If you combine a large and growing market, with a strong and proven platform and with the ambition to build the best brands through insight-led innovation and elevated F&B then what can I say? We are very confident in the future of leisure and all-inclusive at Hyatt. Thank you very much.

Thank you to Amar and Javier. Great examples. I think there are both wonderful examples of how insights, scale and execution all centered around differentiation of brands are coming together to help us drive growth here at Hyatt. So when you step back, our insight-led approach, which, as I shared, comes from many people and many places today, clearly allows us to build stronger, more differentiated brands. And those brands continue to attract higher-value guests, drive deeper engagement. And at the end of the day, deliver stronger returns for our owners. And that's less deeper relationships with our guests. And that's what brings us to the World of Hyatt. What we consider to be our most powerful brand. And to share a little bit more about how our World of Hyatt loyalty program is truly driving deeper engagement. I'll invite up to the stage, my friend and colleague, Laurie Blair.

Hello, everyone. I am thrilled to be here today to talk about how we build deeper loyalty with World of Hyatt. Deeper loyalty starts with being member and guest-centric. We designed a program with clear points of difference because we listen to what our members care about and in turn built a program that delivers true value and experiences to our members in meaningful ways. The World of Hyatt loyalty program goes beyond the expectations of the industry, which have treated loyalty programs as largely transactional. On the other hand, our program was designed around Hyatt's purpose of care, defines our brand and is one of the most powerful tools in delivering the highest value guests across the Hyatt system. Today, I'm going to showcase the World of Hyatt established points of difference and why these differentiators are critical in finding higher-value new members and deepening relationships with our existing members who have more spend, more stays, all driving a network effect not across our portfolio, but within their own communities and why we will continue to lead the industry in elevating loyalty. But first, let's hear from a few of these loyal, high-value and influential World of Hyatt members and globalists. What's unique about the members in this video I'm about to share is that it's their job to raise the bar on loyalty programs and travel experiences to critique them, but also highlight examples that resonate is truly special. And then, of course, to share those experiences through published articles, social media and podcasts. So let's hear what they have to say. [Presentation]

It is pretty impressive when the most critical travel and loyalty writers and podcasters have such an emotional draw to World of Hyatt, especially given the importance of influencers, whether paid or, in this case, very much earned in today's media landscape. What you heard from these members showcase how World of Hyatt's meaningful points of difference, drive loyalty and lead the industry in doing so. Our philosophy of building loyalty beyond transaction shows up in both structural and emotional ways. On the structural side, World of Hyatt remains the only global loyalty program with a fixed award chart, an increasingly rare commitment in an industry that has otherwise gone toward opaque and dynamic pricing, and our points remain more than 2x more valuable than our competitive set. But importantly, differentiation doesn't stop at just earning and redeeming because World of Hyatt is focused on making loyalty feel personal, flexible and importantly, giftable. Our elite tier recognition, member benefits and the delivery of those experiences, especially at our top-tier globalist status, our best in class in the industry giving us a competitive advantage in attracting the highest value travelers. By offering members choice at each award milestone that enables us to deliver benefits that matter most to each member, but also to learn from what our members care about as we think about and design the future of World of Hyatt. But perhaps the most distinct element of World of Hyatt is the ability to gift and share awards. Our Guest of Honor Award, which enables our most valuable members the ability to episodically gift the benefits they have earned to someone close to them on an upcoming stay is both a member favorite and, as you can see, a powerful tool to meet new high-value members. When we meet someone as a new member on a Guest of Honor day, they go on to spend 2x more per year on additional stays and are 5x more likely to reach elite loyalty status compared to other new members on an incredibly powerful example of building deeper loyalty. World of Hyatt continues to be the fastest-growing global hotel loyalty program in the industry. Since our last Investor Day, our membership base has grown by 78% and member penetration by over 400 basis points. And even with our growing footprint and expansion of brands, we have grown our members per property by 45%. More and more guests are converting to members becoming part of the World of Hyatt ecosystem. And our growing World of Hyatt membership base is also more valuable than ever. Our members have always been deeply engaged, and they're even more valuable now, spending 93% more than nonmembers, up by 20 percentage points. And at the highest end of our engaged member base, we are seeing tremendous growth with a 38% increase in members that have more than 100 nights with us. The rapid expansion of our footprint offers more opportunities to stay with Hyatt, the introduction of incredibly differentiated brands like the Standard into the portfolio and the continued evolution of the World of Hyatt program, all drive more engagement and offer more experiences than ever before. From more stays leading to more elite and loyal members, more spend on those days and a greater percentage of direct bookings, our members are more engaged than ever. Now I want to take a minute to talk about what we call the network effect, which is the strength and power of World of Hyatt and delivering for each and every one of our brands. Mark touched on our differentiated brands. And it's important to note, they are incredibly compelling. When we meet a new member from any one of our brand portfolios, whether, say, in a lifestyle brand like the Thompson Hotels or classics brand like Hyatt Regency, they continue to choose that brand portfolio for future stays half of the time, returning to another lifestyle or classic brand. But the network effect across World of Hyatt is powerful as the other half of members' future stays are in other brand portfolios. That member who we met at Hyatt Regency may go on to an Essentials brand or inclusive or luxury brand max. We see our members migrate across our brand portfolios based on their stay occasions, delivering more of that network effect across Hyatt. And because we serve a premium guest, we meet many new World of Hyatt members for the first time in our luxury portfolio, which includes amazing brands like Park Hyatt, Miraval and the Unbound Collection by Hyatt brands. These new guests are particularly valuable. New members we meet in one of our luxury brands spend 2x more across the Hyatt network. So as we find new luxury guests, we are creating stickiness with our compelling brands and keeping them in the loyalty ecosystem. As World of Hyatt members stay across brands, they're earning far more than they are redeeming. On average, 90% of member nights are for paid nights. And finally, our most valuable members are Globalists, are expanding where they stay with us, an average of 15 unique properties, which incredibly is a 25% increase from just 3 years ago. As Hyatt grows and expands its footprint, our members are going to continue this momentum with more stays and more spend at more of our brands. Mr. & Mrs. Smith is a great example of how acquisition multiplies that network effect. Mr. & Mrs. Smith offers a global collection of boutique and luxury hotels, all carefully curated across the globe. From English countryside manners to tree-top escapes to family-friendly hotels at top seaside cliffs, we now have nearly 1,300 Mr. & Mrs. Smith boutique and luxury properties in 34 additional countries globally, all integrated into World of Hyatt. We are harnessing growth for the entire Hyatt network with Mr. & Mrs. Smith. These new hotels are -- these hotels are delivering new, high-value guests while increasing share of wallet from our already existing incredibly valuable high-end members. Members we meet for the first time at Mr. & Mrs. Smith are 4x more likely to stay at another Hyatt brand than a typical new member. And with over 75% of stays made by Elite members or those with at least 10 nights a year with us, it is clear that Mr. & Mrs. Smith is helping us deliver scale where our best members want to be. Our head of Mr. & Mrs. Smith recently sat down with one of our Elite members to talk about the impact that these properties had in concentrating more of his business with us. Here's a bit of that conversation. [Presentation]

I am certainly looking forward to celebrating alongside Ivan when he reaches that so well-deserved lifetime status. We are redefining loyalty in very specific ways, including with our strategic alliances. We have recently expanded into unique stays with Under Canvas, which are upscale outdoor accommodations near national parks and Acelio Safari camps, 15 luxury safari camps throughout Africa. Our well-being brand alliances continue to offer meaningful connection points to World of Hyatt, both in the meeting space, as Mark V. shared as well as with members through brand integrations and experiential moments throughout their stay journey. With World of Hyatt loyalty is not just earned through transactions but felt through personalized experiences that make our members feel seen, valued, cared for and a part of something bigger. As a culturally relevant brand that our members truly love, our loyalty program needs to be fully integrated into the lives of the modern traveler. Each of these partners delivers on that through earning and redemption opportunities, shared brand equity, unique experiences and more. But when it comes to the power of our strategic alliances, one of the greatest examples is our World of Hyatt credit card portfolio. As we shared alongside our contract renewal announcement with Chase, we expect to deliver more than double the EBITDA contribution from our credit card programs and third-party fees next year. Our cardholders are the most engaged members we have with 221% more stays compared to other members. And as Mark shared, we serve a premium guest. Hyatt has a portfolio focused on high-end, experience-led travelers, and our cardholders demonstrate this, too. Our cardholders spend 28% more on their cards compared to other travel co-branded cards. And our credit card portfolio is attracting more millennials compared to competing co-branded cards, while we are continuing to grow our millennial base faster than our competitors. With millennials gaining in their spending power and their desire for experiential travel moments, we are poised to continue to grow and win. Our robust World of Hyatt credit card growth will continue as we are expecting to launch several co-branded cards internationally and expand our United States card portfolio in the next 12 to 24 months. These new card offerings will give members even more reasons to stay with Hyatt and will drive more engagement from members globally. Today, World of Hyatt delivers the value, the expectations and care for the stakeholders and communities that matter most and the momentum that we have within the industry is undeniable. The future belongs to brands that treat loyalty not as a transaction, but as a relationship, points, not as currency but as connection. World of Hyatt will continue to listen to what members care most about, recognize the value of our members with every interaction and innovate as we continue to define what emotional loyalty means in hospitality. Hyatt is well positioned to win and World of Hyatt is poised to continue to help deliver upon that growth and long-term value. With the rapid expansion of our member community, increased loyalty and spending among our valuable member base, continued net room expansion and strong performance across brands that deliver value for owners and shareholders, the future for World of Hyatt is bright. Thank you. [Presentation]

Thank you, Laurie, outstanding job. One of our barometers of success is when people who have no agenda to somehow feel compelled to make sure we know something we have created and done here at Hyatt is resonating and is breaking through for them. And that happens a lot routinely with the World of Hyatt program. And if you needed another reason to believe that we are right now building relationships with Hyatt's future guests. I hope you remember 2 statistics between Javier and Laurie around future guests. Javier said of 70% of travelers under 30 are now more likely to consider all inclusive than they were years ago. And Laurie said that our co-brand portfolio is attracting more millennials than competing cards and growing our millennial cardholder base faster than any of our competitors. I think those are proof points that we are well positioned today, but also incredibly well positioned for durable compounded future growth. So the next step this morning is how we scale all of this across our system, how we continue elevating performance and positioning Hyatt to win, and that's where technology plays a critical role. And I'll spend a few minutes on our work in tech and AI. Technology allows us to scale everything we've built across our brands and loyalty program. And we think about the use of AI and technology in 3 core ways. First, they allow us to scale our platform efficiently. They allow us to drive smarter decisioning and to enable even deeper engagement with our guests. And importantly, we don't think about technology just as infrastructure, we think about it as a growth multiplier. And I'll walk you through just a few examples. First way we are scaling our advantage is through efficiency gains in our core technology platform. Over the past 1.5 years, we've elevated our foundational technology systems. We're moving from proprietary solutions to best-in-class platforms. We started with revenue management. We replaced our homegrown system with the industry-leading ideas product, which has already delivered a 1.4% revenue uplift across our entire system. It's not just a pricing tool, it's a decisioning engine. It optimizes demand, inventory, pricing and mix across our entire business. We're also migrating the Sabre's SynXis platform for our Central Reservation System, which expands distribution, improves merchandising and reduces our cost and complexity for our owners. And I will say, we approach this work a bit differently. We brought in senior leaders from Sabre to execute this work. And this has resulted in these large-scale system migrations being completed on time, on budget with little to no disruption to operations and importantly, with no incremental cost to our owners. And I think this talent decision that we made here has made all the difference. The reality is that most companies undergo these transformations and try to pull them off with the same leaders who built their proprietary systems. And I think we knew that the best way to ensure success was to actually bring in leaders who've executed these large system initiatives several times. And for us, this has made all the difference. We will wrap up this work this fall. And finally, our move to OPERA Cloud for our Property Management Systems creates a more scalable and flexible platform across all of our hotels, reduces infrastructure cost, simplifies operations at the hotel level and create a more flexible foundation for future capabilities and for our future growth trajectory. Taken together, these technology investments are driving revenue. They're lowering costs for our owners, and they're enabling faster innovation across the Hyatt system. We're also enabling smarter decisions at the property level. One example we're really excited to share we call Hotel Heartbeat. And hotel heartbeat is a centrally led AI-enabled self-learning tool that puts data directly into the hands of our property leaders. It integrates more than 70 data points to deliver clear prioritized recommendations to our on-property leaders on where to act across revenue, service and forecasting. Instead of interpreting reports, teams now know exactly where to focus. Here building behind me, you'll see a sample notification identifying a trade-off between high occupancy and slightly underpriced rates at the property level. It's prompting a review of corporate and negotiated pricing to shift from volume to higher-value revenue. And the engagement with Hotel Heartbeat has been strong across our pilot hotels seeing great weekly engagement and more than half of the signals that come from the center are actually driving action at the property level. And when a recommended action is not taken, our leaders feed the LLM by providing feedback as to why what we recommended was not the optimal choice, and that makes the model smarter over time. We're scaling hotel heartbeat across the entire system. It's an example of how we're turning insight into action with AI. And the final way we're scaling is through deeper guest and customer engagement. We are transforming how guests discover Hyatt through AI. We were the first in our industry to introduce intent-based search. We can now smart match location, amenities, price points and experiences to what guests really want in travel, and Mark talked a bit about this. The ability now to search for travel options on their terms. I'm looking for Cancun hotels under 30,000 points at night with a wonderful spot. And the result here is a 23% lift in conversion of intent-based search, but more importantly, it gives us a much deeper understanding of guests' intent. This insight we learned through intent-based search feeds our ecosystem now of better informed offers because now we know that this kind of trip appeals to you. It also feeds data to our development teams as we think about future project sites based on demand. We've taken this work a bit further as well. We were also the first to launch an integrated ChatGPT experience, opening a new direct channel to nearly 1 billion users who can now download and engage in our app. And being early here mattered a lot to us because it allowed us to learn faster and build stronger relationships with our guests. And while the truth is, there is not a ton of volume here yet. But for us, that's just fine. I mean we're learning simply by being early here. And we're learning things like the demographics of our guests using this capability are that they're younger. They have higher income, and they're disproportionately looking for experiences across all of their travels. That insight alone helps us with content creation and future partnerships. We're also using AI to transform how we manage group demand, an incredibly important part of our business. It represents approximately 25% of our revenue here in the United States. And this started with a simple insight again. Our sales teams were spending way too much time, roughly 1/3 of their day filtering and processing inbound request for proposals, RFPs, time that we knew could be better spent for more engagement with our customers. So we developed an AI-powered solution that scores and routes the most valuable opportunities to the right teams and right properties without human intervention. It's now deployed across more than 500 of our hotels today, and it's expanding rapidly. And the impact is clear. What this does is it removes guesswork, it prioritizes the best opportunities for our sellers, and it helps us sell smarter and faster. Our sellers love it because it's giving them time back. So when you put it all together, technology and AI allow us to scale our platform very efficiently. They've allowed us to make smarter decisions and to engage more meaningfully with our guests and customers, and it's what allows us to take everything we've built across our brands and our loyalty platform and extend that advantage across the entire Hyatt system. I'll close this section out by reiterating what Mark said earlier today differentiation is in our DNA. It's what our stakeholders demand from Hyatt. And I hope what you're seeing are clear examples of differentiation across our network. We start with insights, we build stronger, more differentiated brands, and we scale them through data and technology. And that's what delivers differentiation at scale, elevated performance and a business that we believe is clearly positioned to win, being the most relatable differentiated and highest quality growth player in this industry is how we win. Thank you for your time this morning. [Break]

All right. You've heard a lot about growth in many dimensions, growth of our membership, growth of our RevPAR growth of our enterprise, and now we're going to talk about growth as in our system size. First of all, I want to express my gratitude to Mark, Javier, Laurie and Amar for a fantastic session I think you can tell that the backdrop of the technology investments, especially in AI, have now flourished over the last 2.5 years to applications that are spread across the company, as I described earlier in what I described. It's also clear, I think, when we talk about being insights-led and brand focused, they create significant value for all of our stakeholders. And I think you just heard many examples of how that happens. I'm here to talk to you about how that creates value for our owners and our developers. So let's turn our attention to maybe the most important enabler of our growth as we look forward, which is our system size growth. When we committed in 2017 to be a more asset-light company, we recognize that growth would come through a combination of both organic and inorganic expansion. Since then, we've been highly intentional about how we built Hyatt's growth platform, strengthening our position in high-value segments while expanding our reach through owner focused scalable brands. In fact, all of our brands are owner focused. But when we say owner focus, we literally mean designed with owners, and I'll describe that in a second. First, we strengthened the high-value segments, luxury lifestyle and resorts, primarily through extremely highly accretive acquisitions. Two Roads positioned us to scale meaningfully in luxury and lifestyle. While Standard International further deepened our lifestyle capabilities and brought with them, Amar's team, which has now taken us to an entirely different level of execution. And as a side note, while it's not listed up here, we bought Miraval in 2017. And you heard from Mark Vondrasek how Miraval is a platform has now been pulled across the enterprise to great effect, both for our group customers and for our transient customers. Apple Leisure Group added immediate scale and established Hyatt as the largest brand operator of luxury, all-inclusive resorts globally. Bahia Principe and Playa built on that leadership. Through these moves, we've broadened our all-inclusive offering across price points and across geographies. Second, we focused on organic growth. We accelerated momentum with our existing brands and built scalable growth platforms for the future. We launched the UrCove brand by Hyatt which gave us entry into a massive upper mid-scale segment in China. And those representations of that brand are in primary cities. They're in densely populated neighborhoods, very convenient to central business districts that are impossible to develop in absent being in the upper mid-scale. The Hyatt Studios brand expanded our reach into new markets through a highly efficient owner focused, owner design model designed to generate really strong returns and offer exceptional experiences to our guests. In fact, in the first review model room review our developers were telling us to dumb it down like dial back the design elements of it. And we said, "No, no, no, it's got to be a Hyatt. It's got the Hyatt name in it, so it's got to be elevated. And by the way, it's not costing you any more money." So we ended up prevailing on that. And the Hyatt Select and unscripted by Hyatt brands added conversion-friendly growth platforms with a large number of hotels in our pipeline and under discussion in less than a year. Together, these actions have enhanced our premium mix, expanded our network into high-value demand segments, we've entered new markets with owner focused and scalable brands and all of this complements our pre-existing brand base of Park Hyatt, Grand Hyatt and Hyatt Regency and Hyatt Centric. This strategy has delivered industry-leading net rooms growth for 9 consecutive years. It's not a mistake. It was the result of these deliberate actions. And we've delivered net rooms growth averaging more than 9% annually since 2017. I know your initial reaction is, "yes, but you bought a lot of stuff." Well, our organic net rooms growth. I know that's what you're thinking. Our organic net rooms growth was 7%, exceeding the growth of our largest public peers and underscoring the strength of our strategy, [ tell me, if that's impressive. ] Thank you. What differentiates Hyatt is not just our industry-leading growth, but where that growth is concentrated. Today, nearly half of our rooms are in luxury lifestyle and resorts. Since 2017, in those segments -- rooms in those segments have grown at over 15% per year and accounted for over 65% of our net rooms growth. 2/3 of our net rooms growth in those segments. As a result, we have doubled our luxury rooms, quadrupled our resort rooms and expanded our lifestyle rooms sixfold. We've grown disproportionately in segments that yield deeper loyalty engagement, higher fees per room, something we're very focused on and greater long-term value for stakeholders, including our hotel owners. We significantly strengthened our position in the world's most important travel markets, especially in the top 50 markets, where premium demand is the strongest and most resilient. Our luxury and lifestyle presence in these markets enhances the broader system by elevating brand awareness, increasing the number of high-value hotels available to our guests and enhancing performance across the portfolio, creating powerful network effects. And importantly, we continue to see significant white space for Hyatt brands ahead. While we have very strong representation in the top 50 global markets, we remain underrepresented across many, many secondary and tertiary markets around the world. And we're not heavily saturated in those primary markets that we have presence in, in markets where our brands already operate. Our largest public peers average roughly 3 to 4x as many hotels as Hyatt. And in many markets, we don't have any brand presence whatsoever. Even including our pipeline, we still see substantial opportunities to grow in existing markets and expand into new ones. This is the opportunity ahead of us. Extending Hyatt's reach in markets where we already compete, and entering new markets where our brands, loyalty platform and owner value proposition position us to win over and over. Premium growth, strong owner preference and significant white space for Hyatt's brands create a powerful value creation flywheel for Hyatt. As Hyatt expands across more markets, segments and stay occasions, we track more premium guests, deepen engagement with World of Hyatt, helping drive the world's fastest-growing loyalty program. And in turn, it helps to fuel our growth as well. Stronger loyalty and hotel performance increased owner preference for Hyatt supporting additional net rooms growth and further enhancing guests and owner value across the network. At the same time, our premium positioning enables Hyatt to maintain industry-leading fees per room amongst our largest public peers while our opportunities allow us to expand without oversaturating markets or diluting the economics of existing hotels that are owned by our current owners. We can do both without impinging on their economics. Our investments in differentiated brands and focus on premium guests have enabled Hyatt to deliver compounding net rooms growth and expanding management and franchise fees. Throughout today, you've heard us talk about how Hyatt's differentiated approach creates value. And that same approach underpins our ability to grow. Importantly, this is not growth for growth's sake. It is durable, it is intentional. It is high-quality growth designed to create long-term stakeholder value, including importantly, value to owners. As we look ahead, we believe this strategy positions us to deliver net rooms growth of 6% to 8% per year through 2028, consistent with our historical organic growth rate, even as we grow in scale. Our confidence is driven by 3 pillars. The first is our premium segments where Hyatt has established, differentiated leadership across luxury lifestyle and resorts, where the barriers to entry are the very highest. We've intentionally focused on the areas of travel where demand, gross fees and network effects are the strongest and most valuable. The second pillar is scalable brands. These brands will enable faster expansion into underrepresented markets and give our premium guests more opportunities to stay with us on more stay occasions. And third, high-growth regions. These regions are where strong demand trends and meaningful opportunities position Hyatt for accelerated growth across many of the world's largest travel markets. These drivers the foundation of Hyatt's future growth strategy and support our ability to continue delivering industry-leading net rooms growth, compounding fee growth and greater long-term value for our guests, our members, our owners and shareholders. Let's start with the first pillar of our growth strategy, premium segments. We built a foundation of premium brands across our portfolio. More than 50% of our rooms revenue comes from leisure travelers. And nearly half of Hyatt's open rooms and pipeline is concentrated in luxury Lifestyle and resort properties. That's up from less than 1/3 in 2017 and a meaningfully higher mix than our largest public peers. These segments generate stronger demand, deeper guest engagement and greater long-term value, while producing roughly double the fees per key compared to other properties. Guests staying in these brands also spend twice as much across the broader Hyatt system when they're staying in other -- in hotels and brands of other brand groups. Our concentration is in highly sought-after markets further elevates our brand visibility and brand preference. Over many years, Hyatt has built a differentiated premium platform that we believe is exceedingly difficult, if not impossible, to replicate. This platform provides a strong foundation from which we can continue to scale and enables Hyatt's next phase of growth. Next, let's talk about our scalable brands. With over 20 years since the opening of our first Hyatt Place hotel, our essentials portfolio complements our strength in premium segments and provide scalable brands that can accelerate net rooms growth and expand fee-based earnings in a capital-efficient manner. As I mentioned earlier this morning, we know that our premium guests have unmet demand for upper mid-scale stays with Hyatt for different types of stay occasions. There are stay occasions where they want the care, the quality and the loyalty benefits that Hyatt has to offer but in markets that we don't serve and at lower price points than we currently offer. Simply put, extending the Hyatt halo lower into chain scales is powerful. And there are almost no examples of extending a brand up into higher premium segments. That creates a meaningful and differentiated opportunity for us given our brand halo. Our essentials brand, specifically Hyatt Select, Hyatt Studios and unscripted by Hyatt expand Hyatt's share of our guest travel wallet across more stay occasions and across markets. And we're already seeing strong traction. Today, our essentials portfolio represents more than 100,000 rooms. And including our pipeline, that number goes to over 165,000 rooms. Within the portfolio, we are seeing particularly strong developer demand from newest brands, Hyatt Select and unscripted by Hyatt, which are fundamentally conversion brands, allowing us to rapidly scale. On a trailing month basis, signings for essentials rooms were up approximately 80%. And in the first quarter of 2026, the pipeline expanded 25% year-over-year. There's momentum in this space, and we're feeling it, and we are seeing it. This growth is expanding our system in ways that matter strategically nearly 70% of our first quarter signings this year. Our newest brands in new markets for Hyatt and 85% of those signings are with new owners, new owner relationships, this proves 2 things. First, there's real demand from owners for this type of Hyatt branded product. And second, Essentials is giving us a powerful way to grow faster across more markets owners and stay occasions. Now let me turn to the third -- to the largest high-growth regions, our third pillar, where we believe Hyatt is especially well positioned to win. The United States, Greater China and India. More than 70% of our hotel pipeline is concentrated in these 3 markets, which are among the most important travel markets in the world and benefit from strong domestic demand today, along with substantial long-term outbound travel potential into the future. Starting with the U.S., the opportunity is very clear expanding Hyatt, where we have historically been underrepresented. Today, Hyatt has no brand presence in over 300 submarkets in the United States. And our essentials brands are helping us to expand into those markets more quickly and more effectively. More than 100 Hyatt Studios, Hyatt Select and unscripted by Hyatt Hotels are already open or in the pipeline as of the end of the first quarter of 2026. Greater China represents a different but equally important opportunity. It is expected to remain one of the world's largest travel markets, and Hyatt benefits from decades of strong brand reputation and strong owner relationships. We've been operating in China for over 40 years. And today, our pipeline exceeds 120% of our existing hotel base. In India, where we also have been operating for over 40 years, we believe that favorable demographics that will be true for the next 30 years, rising travel demand, which we are already seeing and strong owner relationships position Hyatt well for the long term. And we're investing more and more in our India growth strategy as we speak. Hyatt strength in groups meetings. And if you know anything about business -- hotel business in India, you know that weddings are maybe the most profitable segment, and that's where we have staked our ground. That really aligns well with the emerging demand profile, helping drive room signings up nearly 90% in 2025, and that momentum is carried through into the first quarter of 2026. Together, these regions represent some of the most significant long-term growth opportunities for Hyatt globally, allowing us to expand our reach, deepen loyalty and increase the value of our network. As this map builds, the starting point reflects Hyatt today. The additional dots represent our global growth opportunity. When you combine our premium mix, scalable brands and acceleration into high-growth regions, the further scale -- future scale of Hyatt becomes very clear. We've identified approximately 2.3 million rooms globally, over 1,800 submarkets where we believe Hyatt is well positioned to expand including over 1,000 submarkets that would be entirely new markets for Hyatt. What is especially compelling is how broad and diversified that opportunity is spanning primary, secondary and tertiary markets around the world. The U.S., Greater China and India alone represent more than half of that opportunity. And importantly, Hyatt is well positioned to capture this through the strength and breadth of our existing brand portfolio. The growth opportunity ahead of us is substantial, and we are positioned to win. We have built a brand portfolio that gives us the ability to grow the -- across the segments, markets and stay occasions where demand is strongest. We believe in our ability to execute given the meaningful white space for Hyatt in markets where our current and future guests want to stay with us. And our owners want the value that Hyatt can bring. Importantly, realizing this opportunity is not dependent on any single segment or geography and is supported by all of the competitive advantages that we are in the process of strengthening right now. Delivering strong performance and durable returns for owners gives us confidence in our ability to expand Hyatt's global reach while maintaining high-quality growth. To sum up, it's simple. We are well positioned to continue to compound growth and drive value into the future. Thank you. [Presentation]

And now please welcome to the stage, Joan Bottarini and panelist.

Good morning, everyone. This is -- growth is a topic that all of us across the leadership team, particularly myself and the finance team spend a lot of time on. So excited to talk more about this topic with some very accomplished leaders from our growth organization and operations organization. Mark just outlined how Hyatt's growth strategy is centered on a differentiated approach that accelerates our high-quality network and creates value for guests, owners and, of course, shareholders too and to bring that strategy to life for all of you and how we're executing, I'm joined by Julienne Smith, Catie Cramer; and Javier Aguila. I'd like for you all to just introduce yourself for everyone and tell -- or share a little bit about your background and your area of responsibility. So Julienne, I'll start with you.

Yes. Thank you, Joan. And I'm thrilled to be here with all of you. Thank you for coming to Chicago for this great day. So Julienne Smith, I'm Head of Americas growth. I actually started my journey with Hyatt in 2005 when we launched our franchising program. At the time we were growing Hyatt Place and what became Hyatt House. I stayed for about 14 years, and then I left for a few years, and I've been back now 2 months. And many people ask me kind of why did you come back? And there is an expression that says, culture eats strategy for breakfast. And what's great about Hyatt, and I think you've heard a lot about it today, is we've got a tremendous strategy, particularly for growth, which is what my focus is. But our culture is deep and big and long storied and many of us have left gotten some great experience and come back because it's really the people here who make the magic happen. So today, I'm responsible for growing and maintaining our footprint here in the Americas region across all of our brands, except for inclusive, which Javier oversees. And it's an exciting time to be at Hyatt. We've gotten a tremendous runway.

Catie.

Yes. Good morning, Catie Cramer, I oversee luxury and lifestyle development in the Americas. I originally joined Hyatt through the Two Roads acquisition in 2018, like Julienne, I spent some time away, but jumped at the opportunity to come back early last year. And I truly think that Hyatt has the best luxury and lifestyle brands in the industry. And I know that because selling against them for a number of years was a truly terrible experience. And so I'm thrilled to be back and so happy to be here today.

Thanks, Catie. And Javier, we've already seen you on stage, but maybe a little bit more about your background.

Hello again. I'm Javier Aguila, and I have the pleasure to lead all aspects of our inclusive collection like to refer our inclusive collection as the segment of happiness, given how many very good and special moments our guests spending the resorts. I also joined through an acquisition. In my case, through ALG. And before that, I had worked in private equity and founded a resort platform in Europe that became one of the largest in Spain and in Europe was integrated as part of ALG. Before my current role, the first one that I took at Hyatt was actually leading Europe, Middle East and Africa, as Group President, overseeing all brands in 40 countries. And besides a lot of traveling, I also had the opportunity to experience like Julienne mentioned, Hyatt unique culture. And that was certainly one of the reasons only that made me decide to stay, but also to take on this new very exciting global role that I'm just taking.

Terrific. Okay. So we're going to cover 3 topics: our differentiation, the opportunities we have to grow and why we remain confident in our long-term runway. So starting with differentiation. Julienne, I'm going to start with you. You lead our biggest region. And Mark mentioned that the United States is a high-growth region for us. Owners have more choices than ever today. So why are they choosing Hyatt?

Well, first of all, owners are looking for a return on their investment, and we sell performance. We have many brands that is -- that shines through that, but it's really about performance that is their focus, right? So what -- why? What does that mean? Loyalty program, delivering premium customers, which is a differentiator for us, focusing on the scale that we have, creating long-term cash flow for their opportunities of return on their investment when they want to exit that -- that's all the things that they look for. And I know there's a couple of owners here in the audience as well. And then most importantly, which many of us have mentioned already today, is our ability to cultivate long-term relationships. We have many owners who have multiple properties with us, as Amar mentioned on stage and Javier as well, there are owners who have one hotel with us and then they immediately want to do another one or maybe a couple of years later, I want to do another one. So that growth algorithm that we have here is pretty special and owners seek us out because of it.

They do. And I just want to because let's just stay in the U.S. for a minute, a lot of questions we get about the financing environment and the impact that's having on growth for you and your teams today within the United States. Can you just comment on that, what you're seeing and how you're dealing in that with that situation?

Yes. We are really fortunate to have brands that are conversion friendly. I would say many, if not most, of our brands are conversion-friendly but we have some that are specifically set up and launched for that opportunity. And that's where the lenders really favor the environment today because new construction is tough. You betting on future performance where conversions you have existing performance or you have a cash flowing asset likely and we have an opportunity to create some upside there. So -- and there's some lenders in here I know, really appreciate that. So that's allowed us to grow, add to our scale quickly and efficiently with intentional design, right, it's not a fast conversion because we're not focused on great design. We are design and the customer offering, right? But the ability to add to our pipeline quickly, create that ROI for an owner more quickly has been great for us. And unscripted has been a great growth opportunity for us. That's one of our essentials brands, but we have conversion opportunities in every single segment that we serve. And actually, Catie you've had some great success with the growth of our collection brands.

Yes. Yes, thanks for the shout out. I appreciate that. But you're right. We had great success last year, and I think we're building a lot of momentum. Conversions are really king right now. And I would say we have fantastic collection brands in the luxury and lifestyle space, specifically JdV and Unbound. And they haven't been watered down or put on every street corner. And so I think that's a really big differentiator between us and some of our competitors. Those brands have been great growth vehicles for us. They're incredibly powerful. They combine local identity and storytelling with Hyatt system. But I would just reiterate that I think we're pretty selective. And then Mark, Amar and Javier obviously earlier touched on some of that. I think -- I mean when I look at last year and early this year, I think one of the best examples of that is the Georgian Hotel in Santa Monica, which we recently brought on to the Unbound platform. We had our eye on this property for years because we just saw it would be the perfect fit for Unbound. And we actually turned down a number of opportunities in the market or shifted them to other brands that were a better fit within the Hyatt portfolio. So then when the owner was finally ready to brand, we were in just a perfect position to capitalize on the opportunity and I think what's interesting is in talking with the owner, he sort of cited 3 things. It was that Hyatt hadn't completely saturated the market that we had other brands, but they were in a completely distinct category and a completely distinct customer. We had not diluted the unbound brand, which is, I think, critically important. And we really focus on kind of experience-driven concepts which was aligned with what he tried to do with that property. So it really put us in a unique position to win, and I think it's representative of the types of opportunities we're seeing moving forward.

And of course, those fees are accretive of course, right away. That's a great thing about conversions. Okay. Moving to Javier, staying on the topic of differentiation. All-inclusive has become one of the most differentiated growth platforms by Hyatt in the past 5 years. So tell us about the view of our position from the owner's perspective in the segment.

Thank you, Joan. Before answering the question, I'd like to reinforce one aspect that Julian did a couple of minutes ago and Amar in his earlier presentation is how strong is our owners loyalty and for our brands because I mean, inclusive collection around 30% of our owners have 4 more hotels. But what's beautiful is how they have got to that position, and it's by building or buying one, being successful, then going for another and so on and so forth. And obviously, we own that. But going back to the differentiating factors that make actually those owners choose us and among other competitors. I would say that for the good collection, it's definitely scale and network effect, our unique commercial engine and the differentiated and elevated guest experience that I shared a little bit earlier to it. In terms of network effect and scale, we are the largest in the segment. I mean, we are 14,000 bigger than the next competitor. And that's incredible if you take into account that we just started in 2013. But what is more interesting is that the opportunity is still huge because even in the Caribbean, our biggest market, we only have 16% of market share and outside of the Caribbean, the opportunity is just immense. If we go back to the commercial engine, I alluded earlier that -- mentioned earlier that 60% of our sales come from our internal channels, which again is no other competitor has that in the market for all-inclusive. And I don't want to repeat, the only thing that I want to reinforce is how in World of Hyatt, the loyalty flywheel for all-inclusive goes both ways because out of the 66 million loyalty members that we have, 4.3 million enrolled in our resorts since the ALG acquisition, which is a huge, huge, huge number. And for the differentiated guest experiences, I already gave a few examples before. So again, I don't want to repeat myself. But I want to mention that we also collaborate with Michelin starred chefs and we have 55 resorts that have been awarded with a AAA Diamond recognition, which is remarkable, and 7 of them have been awarded 5 stars, which I think is super. We want more.

Great. And so how is that all driving value to owners?

So it's very easy. So if you have your commercial engine, the scale that I mentioned about differentiated experiences and tremendous execution, what do you get? You get very high ADRs and very strong GOPs per key, and that creates true value for our owners.

And that's the flywheel for the net room growth that Mark showed us earlier. Okay. So now we're going to move to the topic of scale. I'm going to start again with you, Julienne. And can you tell us Mark shared about the opportunity around Essentials and Scalable brands. But I just wanted to hear from your perspective, you're on the ground with -- your teams are on the ground with owners. So tell us a little bit more from your perspective.

Yes. Well, first of all, we have always been and continue to be focused on purposeful growth, building in the right markets with the right brands and being selective, as Catie described, in the Georgian example, being really selective about where we want to be and with what brand. We also have, as Mark mentioned earlier, 300 undeveloped for us markets in the U.S. alone. That's an incredible landscape opportunity for us. So we're focused on that. We're focused on growing where we are losing our customer because we simply don't have product. So within the last 6 months, we've signed our first 2 deals ever in the state of West Virginia. We've signed new deals in new markets. Glendale, Arizona is one, Williamsburg, Virginia, Steamboat Springs, all markets you're familiar with, where we didn't have products to be able to develop in those markets we do now. All of those examples that I just mentioned are with the Hyatt Select and Hyatt Studios brands. And what's great about that for what I do is and the team does is we now have offerings for all of the premium customers that we serve in many markets. So the runway is just incredible for growth.

Yes. And the momentum is really, really growing up. Catie, so for luxury and lifestyle, with all of the growth opportunities that are coming across your desk, I know in your team's desk, how are we balancing growth while protecting brand equity?

Sure. Yes. I mean I constantly tell our development teams and our owners that we don't need to grow these brands for the sake of growth. We're very, very intentional, I would say, about where and how we grow because protecting the identity of those brands is just as important as growing them. Each of our luxury and lifestyle brands have a distinct customer, a clear point of view, a different guest experience. Amar alluded to that earlier. And so I think maintaining that is really important. I think both guests, owners, I mean, everybody can really feel when a brand becomes too broad or inconsistent. And so that's what we're really trying to stay away from. And so as you mentioned, we see a lot of opportunities come across our desk, and it's certainly difficult to turn things down sometimes in development after all. But we view long-term brand equity as truly one of Hyatt's greatest strengths. And so we'd much rather grow thoughtfully than just chase growth at the expense of the brand experience over time.

Lining that up really leads to profitability and cash flow. And if that's not going to be the actual outcome or impact, we will be setting ourselves up for difficult conversations. So it makes sense. Okay, Javier. Let's talk about the opportunity for all-inclusive, whether conversions or new representation globally.

The opportunity for both conversions and new beauty is huge. First, demand is working for us because it's very strong. As mentioned earlier, the fundamentals are in leisure are outperforming other segments. And all-inclusive is a segment of not only a great presence, but also a huge future given the interest that newer generations are having. And second, despite we are the global leaders, our opportunity remains massive in -- if we talk about the total addressable market, for all-inclusive is around 350,000 rooms. And that's not the market that could be addressable in general but the one that which is much bigger, the one that we've identified that our brands would fit perfectly. And given our strengths that we've talked earlier, we think we are uniquely positioned to capture a big part of that market. So the prospects are very good.

350,000 rooms. Can you just give us an idea of some of the top markets, a few of the top markets that you think there's great opportunity.

Of course. I'll start with the Caribbean. We're already very strong, but as I said, only 16%. But there, the keyword is being intentional, like in general, we're doing for all of our development because there, we have the opportunity with the incorporation of the Bahia Principe brand to grow further in segments that were slightly below our key Ziva, Zilara presumed brands that are a little bit more premium. And that's going to be especially important as we grow our Essentials portfolio because there's going to be a flywheel between both of them. So I think we all lost that. There's going to be an opportunity to help each other to grow. And with [indiscernible], we're targeting, in particular, those newer generations offering something that is different. Not only -- it's not about having -- you need to tailor the whole experience to them, both F&B, entertainment, et cetera. And then of course, we see an opportunity to continue to push Ziva, Zilara and Secrets, our premium brand in very specific locations. If we move to Europe, Middle East and Africa, obviously, we want to bring our premium brands into Europe more and our representation there is still not as strong, and we see a huge opportunity, mainly in conversions because there's a lot of existing hotels already there. We want to enter new markets. I think that there's a great opportunity in Turkey and North Africa and also in the Middle East, although obviously, we need to wait until the geopolitical situation stabilizes, but we believe that there's some markets that started to be very promising for all-inclusive like Ras Al Khaimah. And if we move to APAC, obviously, Thailand, Vietnam or India are huge opportunities. We've already signed 2 resorts in Thailand that we hope to do their groundbreaking this year. And there's a huge opportunity there. We are aware that the demand in those markets is going to be mostly regional and we're going to have to adapt those hotels and those products to that demand. But we already have a lot of experience being successful in opening and localizing these brands to new markets.

Very exciting. Okay. Julienne, I'm going to move back to you for a moment. We spend a lot of time talking about essentials, luxury lifestyle, all inclusive. I want to spend a minute on Classics. Like Grand Hyatt, Hyatt Regency, these are foundational brands that have been around for decades and decades. Why are they still strategically important to our growth strategy?

Yes. I mean history matters. Mark mentioned earlier our entry into Asia, Hong Kong and then decades ago, China and our footprint was able to expand internationally before many of our competitors were. And we've been able to really dominate in the group meetings business. I mean, this hotel is a great example. There's 2,000 rooms. It's the largest in our system. Think about the amount of business that's done in these hotels and the events that happen here and the significance that has across our industry really. And that is oftentimes an entry point for people, right, come to a meeting and then maybe go on a vacation later and become a World of Hyatt member. But that significant portion of our history allows us to give credibility to all these other brands that we've acquired or launched over the years. So again, history matters. And we're able to grow with long-standing owners in a meaningful way as well.

Yes, for sure. That's true. Okay. So I want to move into a lightning round now on the third topic. As you think about the next phase of Hyatt's growth, what gives you the most -- what makes you most excited and gives you the most confidence in our long-term opportunity? I'll start with Javier.

Three things give me a lot of confidence. The power of our network, our unique commercial engine and our ability to create truly unforgettable experiences. Bringing all that together, we're going to create an ecosystem that is going to be very appealing to our customers and to our owners and contribute to the rest of the portfolios.

And Catie?

Get out to that. But also, I think we have a really differentiated position when it comes to luxury and lifestyle. Our brands have a halo effect across the broader industry. We have dedicated brand-led support teams, and we have a very engaged customer base through World of Hyatt. And so I think that, combined with being large enough to have global scale, staying small enough to maintain our brand experience, it all creates just an absolute winning combination that I think really sets us apart.

And Julienne?

Really, no matter where you turn, we're underpenetrated, and that's super exciting for me and my team focused on growth. So our runway, which I've said many times today, is vast and the opportunity is incredible. And we have people on the development team who are really focused on relationships and growing those and growing in a meaningful way. So pretty excited about our runway.

So powerful. And what you all have just heard is that our growth strategy is highly intentional. I think you all actually commented on that word. We're focused on building a global network that drives higher fees per room, strengthens owner preference, expands loyalty engagement and creates durable long-term shareholder value. And we still have a substantial runway ahead. So thank you very much, Javier, Catie and Julienne for sharing your perspectives and the opportunity that we have to win.

And now would you please welcome back Hyatt's Chief Financial Officer, Joan Bottarini.

I hope you've all found that the information we've shared so far to be very clear and compelling proof points of how Hyatt continues to differentiate itself for guests, owners and shareholders, too. As Mark outlined, we've built a business with true differentiation at scale. We serve the high-end guests across the segments in which our brands operate. Mark V. shared how we're elevating our brands and our technology, and Amar and Javier shared how they're delivering performance through more insights-led and brand-focused organization. Laurie spoke to the power of World of Hyatt and our unique loyalty experience platform that benefits all stakeholders. And finally, we just heard from Julienne, Catie and Javier about the meaningful growth opportunity ahead for Hyatt. I'm now pleased to share how this all comes together from a financial perspective, dive deeper into our model and outline how this translates into our 2028 outlook. Our message is straightforward. Hyatt is a high-quality, growing and increasingly cash-generative company with a clear path for further shareholder value creation. We've expanded our differentiation at scale and strengthened our position serving the high-end guests. We've elevated our performance and have become a more insight-led and brand-focused organization. And we believe this positions Hyatt to win with compounding fee growth driven by premium RevPAR and meaningful opportunity to expand net rooms growth. Consistent free cash flow growth, generating cash to invest in growth and return capital to shareholders. And we have further opportunity to unlock embedded value for additional growth and returns. Taken together, these factors underpin our confidence in Hyatt as a compelling long-term investment. Since our last Investor Day in May of 2023, we've completed several key initiatives that have further transformed Hyatt, delivered strong results and positioned us for long-term success. As you've heard, we've strengthened our brands through our strategic brand alignment. Our brand strength and execution have allowed us to lead the industry in RevPAR growth for the last 5 years. And we've delivered strong net rooms growth, which has compounded annually by 7% since 2022. 2025 marked the ninth consecutive year that we've led the industry in growth. And we invested in asset-light growth, including the acquisition of Standard International and Playa Hotels & Resorts. And as you heard from Amar and Javier earlier, these acquisitions further strengthened our position in lifestyle and luxury all-inclusive and contribute accretive fees per room. We sold a majority interest in the Unlimited Vacation Club, simplifying our reporting while increasing our fee-based earnings. And since 2022, gross fees have grown by 14% per year. This is the highest compounded annual growth rate among our larger peers, and our fees per room are the highest among that peer group. And while we benefited from fees derived from M&A, our 10% organic fee growth also exceeded the total fee growth of our larger peers over the same time period. At the same time, we have significantly increased our asset-light earnings mix, and this has reduced our capital expenditures and our earnings volatility. And we expect asset-light earnings to be over 90% in 2026 with the potential to increase to 95% by the end of 2028. Given our outlook on fee growth and the asset sale opportunities that we see ahead of us, this is how we get to that 98% -- excuse me, 95% expectation. Together, these actions have fundamentally reshaped Hyatt into a higher quality, faster-growing and more cash-generative business as evidenced by our strong free cash flow conversion since our last Investor Day. We've paired this transformation with disciplined capital allocation, and we've driven long-term shareholder value. On this slide, you can see that since 2022, we've generated $1.2 billion of free cash flow. We've modestly increased our leverage, and we realized over $1 billion of proceeds from asset sales, net of investments that we've made in asset-light M&A platforms. In the aggregate, this has generated $2.3 billion of cash. And we've returned $2.1 billion or over 90% of that cash through -- to shareholders through dividends and share repurchases over that time period. This clearly demonstrates our ability and track record to invest in growth that drives accretive value while also returning significant capital to shareholders. As further evidence that we are confident in our ongoing shareholder returns, we announced this morning that our Board has authorized a $1 billion increase in our share repurchase authorization and we are excited about the future ahead. As you heard throughout this morning's presentation, our durable competitive advantages, coupled with the execution of our strategy to further elevate our brands, talent and technology directly fuels what is already the strongest part of Hyatt, our fee business. We believe that we -- by successfully executing this strategy, we can deliver on our premium RevPAR growth, which, again, as I mentioned, has led the industry for 5 consecutive years and continue to deliver industry-leading net rooms growth. We believe this combination will translate to even stronger fee growth and our asset-light business model will continue to deliver strong free cash flow conversion. And we have further opportunity to unlock additional shareholder value through continued asset sales and realizing returns from other investments. By doing all of this, we believe we will continue to create long-term value. Now I'm going to walk through our illustrative financial outlook for 2028. Let me start with the 2 key drivers of our fees, RevPAR and net rooms growth. Our outlook assumes that broad-based macroeconomic growth remains stable and consistent between now and 2028. More specifically, in the U.S., this assumes real GDP growth is consistent with what we see today. And of course, this is really important because you heard what Mark said earlier that 70% of our global revenue originates from our guests living in the United States. We believe global system-wide RevPAR could grow at a compounded rate of between 2% and 4% between 2025 and 2028. And this outlook for RevPAR is supported by our portfolio of premium brands, which serve a strong and resilient higher-end guests. On the development front, we expect our portfolio of rooms to grow at a compounded rate of 6% to 8%. Mark outlined the reasons behind our confidence to deliver this level of net rooms growth. Our pipeline is strong and fees per room from hotels in the pipeline today are accretive on a stabilized basis to our existing open hotels, allowing us to expand our already high fees per room well into the future. We believe these factors, combined with the strength of our development teams and proven owner value proposition position us to achieve our net rooms growth objectives. In addition to the illustrative RevPAR and net rooms growth expectations, we've also made the following assumptions. The impact of the hurricane in Jamaica and the recent events in Mexico and the Middle East don't impact our long-term growth prospects. Our strong pipeline of international full-service hotels. We do not -- because of our strong pipeline of international full-service hotels, we don't expect a significant shift in the makeup of our portfolio by 2028 and the mix of our fee types will remain relatively consistent. Today, 90% of our incentive fees are generated from hotels outside of the U.S., and we don't expect that mix to change materially. We also expect gross fees will continue to benefit from non-RevPAR fees such as our co-branded credit card programs, the Unlimited Vacation Club and branded residential fees. Taken all together, we expect to generate a very strong 3-year compounded growth rate of between 9% to 13% for gross fees compared to 2025. While most of our earnings are now generated from our core fee business, we recognize it's helpful to share some additional detail. We remain disciplined on managing our cost base and that we expect adjusted G&A to grow at a 3-year rate of between 2% to 3% through 2028. We expect owned and leased adjusted EBITDA, that growth to broadly track with assumed RevPAR growth. And in the Distribution segment, we expect adjusted EBITDA to grow between 2% and 4% compounded annually compared to 2025. The disruptions in 2026, we believe are temporary. We remain focused on ensuring that we will use key money for strategic growth and that growth will deliver outsized returns and amplify our brands, especially within luxury, lifestyle and inclusive brand portfolios. We expect key money to average around $150 million to $170 million per year, CapEx to be between $135 million and $140 million per year. Given the opportunities that we see ahead of us for asset sales, we expect CapEx will decline from these levels in the coming years. And finally, we expect our effective tax rate to be between 27% and 30%. These drivers translate into our expectations for strong earnings and free cash flow growth. We expect adjusted EBITDA to grow at a very strong 3-year compounded rate of 11% to 16% through 2028 and adjusted free cash flow to grow at a compounded rate of between 14% to 18%. This represents an adjusted EBITDA to adjusted free cash flow conversion of 55%, consistent with what we have delivered on average between 2022 and 2025. Importantly, we believe this reflects the strength of our asset-light model and our continued ability to convert earnings into free cash flow. We remain committed to an investment-grade profile. We believe that we have a strong balance sheet and continuing to have a strong balance sheet is important to preserve optionality for growth opportunities and to provide flexibility in uncertain environments. We will have some modest deleveraging in the near term and believe that we will have capacity to take on incremental debt starting in 2028 while maintaining our investment-grade profile. And on a cumulative basis, we expect to generate between $2 billion and $2.2 billion of free cash flow between 2026 and 2028. We expect to have the capacity to increase our debt in the range of $200 million to $500 million by the end of 2028 compared to current levels. And this level of durable free cash flow supports both investments in growth and returning excess cash to shareholders. While our business model has evolved over time, our capital allocation strategy remains balanced and focused on maximizing shareholder value. And consistent with our track record, we'll continue to prioritize opportunities that create the greatest value, whether that's growing our business through asset-light investments or share repurchases. In addition to our focus on the core business to drive free cash flow, we have other opportunities to enhance value. Our own portfolio consists of a high-quality group of assets. And based on recent valuations, we estimate our portfolio is valued between $2.2 billion and $2.5 billion. This translates to a multiple of 18x to 20x 2025 adjusted EBITDA, 18x to 20x, which is significantly above some models that I've seen published attributed to our owned and leased segment. This is even higher than the blended 15x multiple that we've realized from the $5.7 billion of real estate that we've sold since 2017. And it does not include the long-term value of management or franchise contracts we expect to maintain in every single instance upon sale. As we said previously, there are no hotels we must own and we are actively evaluating opportunities to further reduce our ownership of hotels beyond the Hyatt Grand Central New York, which is currently under contract. As I just mentioned, we anticipate that asset-light earnings mix will approximately be 95% by the end of 2028 through a combination of continued fee growth and additional asset sales. And we will continue to prioritize transactions that drive the greatest value for our shareholders. We also have 3 unique investments that I wanted to cover that are valued at about $700 million or $7 per share to -- $7 per share to our valuation. While these are not included in our 2028 outlook, we believe that we could realize the value of these investments over the next 5 years. Each of these investments is a great example of how we have executed on transformative deals in a way that created immediate shareholder value at the time that we executed the deal and provide opportunities for us to realize further value over time. We believe our durable competitive advantages have driven and will continue to drive our premium RevPAR growth, industry-leading net rooms growth and fee growth that continues to compound over time. In closing, you've heard from several members of Hyatt's management team today about how Hyatt is differentiated at scale and positioned to win. We've built a differentiated growth platform and a durable fee-based earnings model. We are confident in our strategy, confident in our outlook, and we look forward to realizing the clear and substantial opportunities to generate continued long-term value for shareholders. I'd like to personally thank each of you for your interest in Hyatt. And now I'd like to invite Mark Hoplamazian, Mark Vondrasek And Adam Rohman back up to the stage, and we will take some Q&A.

We have online questions, too. All right. Well, thanks, everybody. We're now going to start Q&A. We're going to handle this in a couple of different ways. We're going to take live questions from the audience. We've got wonderful folks out in the audience with microphones, so they'll be around to hand them to you. If you can please raise your hand, they'll bring the mic over to you. If you could please state your name and the company that you represent for the benefit of those on the webcast, we'd appreciate it. We would love to answer everyone's questions. So we request if we can just do one question at a time. And if time permits, we'll take follow-up questions at the end of Q&A. And then we'll also weave in some online questions as well. So happy to start with any questions in the crowd. Brandt, crowd. It looks like I saw you first. So we'll bring a mic over to you, and we'll start with you.

Great. Brandt Montour from Barclays, and thank you for this wonderful event so far. So a question, if I'm just doing one would be on the development side, you clearly are looking for acceleration or re-acceleration in net rooms growth through '28. Can you break out that re-acceleration versus '25 in terms of how much of that is Essentials? How much of that is conversion versus new construction? Just because it looks like a lot of it is Essentials. And so just wondering how much depth and breadth you have across the portfolio in terms of that second derivative and how much confidence you have in those targets?

So I think it's important to just quickly mention that it varies by geography quite a lot. So Essentials will be the primary driver in the U.S., and I think it will ramp outside the U.S. It's also important to recognize that the pipeline is currently weighted outside the U.S. weighted towards full service and luxury hotels. So we're going to have a balance. It's not going to be dominated by essentials, but the rate of growth for Essentials is going to be very high because we're starting from a smaller base. Within the Essentials growth rate is a significant number of conversions because of the intense interest in Hyatt Select and Unscripted by Hyatt has been surprising to us, and we have a huge number of projects under discussion right now, and the conversion rates look very healthy. So I would say that embedded in our organic growth outlook would probably be something between 35% and 40% per year of conversions. And the remainder would be new-build openings. Yes, new-build openings have been relatively more sluggish in the past, but we continue to work really hard to find alternative financing structures that are not involving either banks, regulated institutions or funds. In both cases, either bureaucracy in the first case or return requirements in the second case, impede capital formation. So we're looking for non-bank financial institutions. And we've advanced our dialogues along those lines, and I think we have some really great solutions that we will be launching very, very soon. So that is a significant part of our growth within that a significant part is going to be conversions.

Okay. Shaun, I saw your hand earlier.

Great. And echo -- first of all, Shaun Kelley from Bank of America and echo my thoughts. Thank you for hosting us today. Mark, maybe a bigger picture strategic question for you and for anybody on the panel. But Hyatt demonstrate their willingness to take a few strategic shots or think a little differently. I think that's been something which permeated throughout the presentation. We can talk about what you've done with Playa, what you did with all-inclusive broadly. Maybe even stretching a little bit further back. What's that appetite like today as you think a little bit more about the business? Are we in a healthier place to now really focus on that organic piece of the algorithm, which is sort of the heart of the last question? Or do you still think there are a couple of more strategic shots, maybe bolstering, franchising, or some of those opportunities that may still exist for Hyatt given your willingness and your history of doing that?

Thank you. First and foremost, Joan made a special point of pointing out that 100% of the outlook that she just presented is all based on organic growth, period, end of story. So anything that we do in this domain is going to be additive. And there are specific geographies and specific areas where expansion of our existing brand portfolio could benefit from potential acquisitions. So we will not shy away from them, nor is it our #1 priority. I think we have been -- we've taken bold bets. It's true, but we've been very selective about which bets we take. And we've also been very deliberate to say the customer base that we are adopting and bringing into the system has to look really close to what our existing customer base is to strengthen it or have to extend it in terms of either age cohort or geography. The World of Hyatt growth has been phenomenal. It could be even more phenomenal if we started to really significantly expand membership in places like Europe and further expand in Asia. So I think as we think about where the network effects take hold and where we could benefit from more representation, that would be in markets like those. But right now, we feel super confident about the outlook that Joan outlined, with our existing brands as is, all organic.

Great. We can go to Trey.

Trey Bowers, Wells Fargo. Maybe if you could just dig in a little bit the range of 6% to 8%. 8% would be a fantastic number over the next 3 years. And what would need to happen to bring you guys in at the high end of that range?

I think the primary thing that would need to happen is that the conversions that I discussed earlier in answering Grant's question actually would be even more high velocity than we are expecting currently. We have a pretty good handle on what we're seeing coming across the trends, and we know what our success has been in the last several years on conversions. And conversions remain an important part of the equation because capital formation remains an issue, especially in the upper-midscale and upscale segments. So I would say the thing that could break us out to the upside -- top side of that is further conversion activity. And right now, the momentum we're seeing in Hyatt Select and Unscripted suggested that's not a pipe dream. I don't -- I wouldn't sit here and tell you we know for sure we're going to hit 8% because we're going to really amplify the conversions. What I would say is there's a path there that if the interest level that we've seen, and as Julienne pointed out, the number of markets that we are not present in, that starts to take hold and really starts to accelerate, that's when you get to the upside of that range. Do you want to add anything?

I would just add on the conversion front. We've also been successful in some small portfolio conversions. So, we did one with Unscripted last year in Vietnam. And it was 5 hotels, I believe, that we did in the fourth quarter, that just demonstrates that the strength of the brand, these are capital-zero opportunities. And there's many, many of those globally that would qualify for our brands and the customer base that Mark described.

And we've done it before also with JdV. I mean the Story Hotels in Scandinavia. So, we found small chains that really have decided, as Catie pointed out, from the owner of the Georgia, they finally decided they wanted to affiliate with the brand, and we took the entire portfolio. Yes, small, 3 or 5 hotels, 6 hotels in the Wink, I guess. So -- but you start adding 3, 5 hotel chunks at a time and you get an acceleration.

Okay. Dan, I saw your hand earlier.

Dan Politzer, JPMorgan. I wanted to talk a little bit about the loyalty program and penetration there. I think you're around 49%, 50%, and your peers are 65% to 70%. How do you think about the path to growing over time there? And do you think that's a real estate place you could get to? And if so, how does that kind of impact the whole ecosystem?

Yes, I'd say -- 2 things. First, as we've added more product and more network effect, we've been able to accelerate our loyalty program penetration. I do have to say there was a time and a place where in this industry, we all counted loyalty room night penetration similarly. And I'm not sure we're at that exact place today. We have competitors who think about if you were on their website and you then went and booked an OTA through Expedia, somehow that with an influenced loyalty number that now accounts for penetration. Group blocks that are being a bit automatically enrolled. And so we did a little bit of work. And if we equalized our number, and we're not going to do that because we think about penetration through the owner lens purely. Doesn't matter if we influence someone and they were on hyatt.com. They go to Expedia and they booked through Expedia. That cost of distribution through an owner lens is much higher than had they come directly through us. And there's not a lot of interest for us to cloud that. And so in spirit of complete transparency on an equalized basis, we're a heck of a lot closer than what our near 50% number translates to. But as far growing as far as the way we think about it, the more that we add network capability, whether that's through our own organic growth or even through alliances like Smith, that just added reach from a World of Hyatt member in Europe that allowed us to step-change our contribution in that part of the world because our members now can access more properties through an alliance were -- all of that adds to the network effect. But I'd be careful on the apples-to-apples, I'm not sure, unfortunately, it's completely the same measure between us and our largest competitors any longer.

I would just add that the direct channel that we shared, that 70% number is really relevant because when you think about what this means, it means that the cost of acquisition of that customer is lower throughout the entirety of the 70%. And some of it is Group for us, talking about the importance of Group. So that number is quite significant and leads to great economics at the owners' P&L.

3 months ago, I was traveling, and I was in a market in which our primary owner owning several Hyatt properties in that market, own many, many other hotels. A couple of concentrations in some of our largest publicly traded competitors. And the asset manager was in the meeting and started off the meeting. The asset manager came from one of our competitors, by the way, started off the meeting in a very accusatory way about our penetration. So we asked a few questions. Like, can you tell us what the conversion from gross rate to net rate realization is our portfolio versus theirs? Answer, ours was higher. And we asked and we're -- who has higher margins? We did. So we said, well, okay, so you're beating us around the head about a penetration number that's lower than this other competitor, but where is the money? And they couldn't answer that question. So that goes to Mark's point. This is a live example, and this is a group of 20 hotels in a very vibrant market, very competitive market. So I would just say we are paying very close attention and Javier has brought us huge discipline into the company about GOP Per Available Room because that's the way -- that's the primary metric that inclusive owners and developers look at returns. They know how much it cost to build per room, they look at GOP per room, they do some simple benefit. So we're very focused on not just trying to publish the highest penetration number so relevant. Like we want to know what the results are, which is net rate and margin. And I think if you did some adjustments, we feel very good about where we are. And I think we have a lot of momentum to even -- to grow much higher over time.

Conor Cunningham from Melius Research. Just curious, Joan, you mentioned the 90% capital returns to shareholders through the 2025 target. So your authorization, I think is 1.5. You have a dividend on top of that. Just curious on the methodology that you would think -- you have a lot of conviction in organic growth in general. So Joan, you kind of talked to Shaun's question around -- on the organic side, inorganic side. But if you could just talk about the capital return profile and how you view it?

We showed that slide very, very intentionally because we wanted to illustrate our track record of balance, and balance is really how we're going to be focused. We know when there are opportunities for us to invest in the business to grow, that is going to have lasting halo impact it has. We've made those decisions that have generated exceptional shareholder value on those investments. And so we will consider those timing-wise, if we have excess cash, we're going to return it through share repurchases. So balance is key and is how we will continue as we proceed forward.

Great. Lizzie?

It's Lizzie Dove at Goldman Sachs. You touched on it a little bit, but I'm wondering if you could expand on how you think about the non-RevPAR contribution to the overall algo. And specifically on credit card, I think you mentioned there's going to be several new international launches in the next 12 months, more expansion, in the U.S. And so just how you're thinking about that long term now, post-the renewal last year?

So I would say that what's built into our outlook is what we have today. And those rates of growth are consistent with our ranges on the overall fee side that we expect from our existing in-place programs. What the opportunity is for us to expand even within the U.S. and internationally, that's all upside. So we'll keep you posted, and we're excited. We think it's a real opportunity for us, and that will be upside to our outlook.

Maybe I would just add a little bit of color. So as you think about card expansion. We're targeting Germany and Spain. We're also exploring U.K., Japan. You can expect a mix -- a market like Mexico, where we picked up a lot of members to ALG and that acquisition. So we're at an inflection point to rapidly expand the number of cards and the geographies that we have over the next 12 to 24 months; those are the places you should expect to see us early. And none of that is priced into any of the EBITDA doubling in '27. That is all incremental as we move forward.

David?

David Katz, Jefferies. I appreciate all the commentary around technology and AI, in particular, obviously, moving super fast. And there's just as much commentary out about around concerns over it. For specifically your business, it's clear what it can do for you. Can you just talk about guardrails, concerns, or areas you want to make sure it doesn't impact.

Sure. We have undertaken a pretty methodical and extensive training for people in the company. We have thousands of Enterprise licenses available to colleagues. So what we're trying to do is demystify try to actually demonstrate practical applications that have great productivity associated with them. Basically, it will allow people to do their jobs with more ease and less time spent on what I would describe as administrative tasks that a machine can do better. Adam, and I were in a brief conversation yesterday about a colleague of ours, who is spending a lot of time doing some work in the SG&A team. And the comment was, yes, actually, we want to basically replace a chunk of that person's time from doing what I would describe as rote work to free them up to actually spend their time thinking about more insights that we could derive from the data that we're actually seeing. So the -- I think the potential for there being colleague concern is outweighed in our case, by really being transparent, open, and forward-leaning in terms of training and demonstrating what examples exist. The one thing that I did not anticipate, which has been a massive inspiration to me is, as I traveled around the world and talk to a bunch of hotel teams about how they're actually implementing? How they're using AI, I have discovered amazing things going on. So one team has actually showed me this model that they built on their own within our environment. So we have a safe, secured environment, private cloud, and we have an Enterprise license in this case with ChatGPT, but it could have been another one. And they -- in this case, our Zurich officer and from Chicago. Another example, another team said, we're coming up on our union negotiation that is outside the United States. I wonder if there's a way we could create war gaming like a war gaming exercise to create a mock negotiation. So they poured all of the correspondence that we've had with union representatives plus the contract into an LLM. And they created in an entire war gaming exercise to understand what the particular priorities would be from the union based on published newspaper articles and statements that they have made and correspondence that they have within our system. And we ended up with a phenomenal deal as a result of that. So these are the applications that we would never have dreamed could be possible. What that word gets around. So people are inspired to go towards it and really explore it. Now in terms of safety, security, control environment, governance, we put that in place 2.5 years ago, and we continue to strengthen that at every turn. So there's -- in terms of the external threats that might exist, we're doing everything that we possibly can. Our partner at the time to get all the setup was IBM, but we've used many, many other cybersecurity experts. And I feel really good about the environment that we've created. I was -- I actually personally led the team at the beginning of '24 to put all this together because I wanted to have tremendous level of visibility into it. And our General Counsel, Margaret Egan, was on that small team. So the governance and the control environment is built into how we actually create the environment that we operate in today. I hope that's responsive to your question.

Great. Mike.

Mike Bellisario at Baird. On key money, can you help us understand how you came to that $150 million, $170 million range? When do we start to see some positive operating leverage as your system continues to grow? And then just help us understand what you're investing in, how much of it's new-build versus conversions? How much of it is gross adds versus contracts you might be protecting and preventing exit from the system?

Yes. So as we looked at the -- looking out a couple of years, we obviously have visibility to contracts we have signed that have embedded key money that's payable upon opening. So we're tracking that over the next -- as long as -- or large as the pipeline is for the next several years. So that's a baseline. And then what we did in our model is we basically said, let's look at the levels we have today and put some cushion in there with a little bit of growth. What I would tell you is maybe there's some opportunity in that number, but we recognize that it's still a tool that is important in certain regions for us to grow. And it's competitive. These conversions are competitive. And so, it is a real use of capital that's important as we look at conversions that are the right conversions for our brand.

Great. Stephen?

Steve Grambling from Morgan Stanley. This will be a follow-up to David's question on AI. He referenced the tools that you all highlighted here today. Maybe if you can just elaborate on some of the insights as you think about agentic AI's impact on distribution, loyalty, both thinking about mix and cost, as well as any implications for the system fund broadly, because we've seen some of your competitors start to actually lower their system fund charge-offs.

Yes. I think Mark and I will have to tie team on this one, but I'll just make a couple of comments on agentic distribution or distribution in the agentic world, and then I'll turn it over to Mark to address both the system cost question you had and also how it might interface with loyalty. So I think we are in the beginning phase of a migration towards a much more agentic-led-travel distribution environment. I mentioned this during the discussion about why are we still hyper-focused on brands and clarifying and solidifying our brand positions. It goes to how we believe travel distribution will work in the future. And that is moving away from the traditional funnel where those who had the most control the OTAs, let's say, had the top of the funnel for aggregation. Their primary value-add was aggregating supply. And so when someone wanted to come in and explore, or investigate, or discover, they had a massive pool of aggregated supply. In the future, if you fast forward 5 years, we believe that it is going to be dominated, not exclusively, but it's going to be -- a lot of that funnel activity will be translated into an expression of intent, something like what Mark demonstrated in the examples, translated through your own personal AI-enabled agent into booking. And there won't be funnel, it will be a direct connect between intent expression and booked stay. So what's really important there when -- once you've expressed your intent, whether you speak it into your phone or type it into your search bar, the ability for your agent to find us and match that your interest, your desire for different experiences. And of course, they would take -- your agent will take into account your past stays and a lot of details like what status you are in Hyatt -- World of Hyatt program, and whether you have the credit card or not and et cetera. And frequency knowing where you stayed before in given markets. So I would say we believe that this is essential for us to actually outperform in an agentic world. And we're well on our way because we have GEO-optimized everything across the entire system, but we've also gone straight into agentic booking through ChatGPT. So Mark, maybe you'll cover that.

Yes, we'll just take the second half of that question, Stephen, on System Reductions and what it's meant for owners. We, too, have taken some of the obvious low-hanging opportunities in the AI space. And I think at the end of the day, AI got to work on the efficiency side and it's all got to play a role in innovation and unlocking new revenue opportunities. But our contact centers are a great example, where through agentic. We took millions of dollars out of the operation, allowing guests to interact with us to through agentic AI platforms on their terms, not for every brand, when they want, not in an intrusive way. And we have given that back to owners. We probably don't talk about a lot of this, but for a property that's plugging into us or getting stood up, we've waived a lot of the traditional start-up costs for system capability that historically we had charged. And we think in that vein, we're doing incredibly well competitively. But I think you can expect for us, as we free up economics and find the efficiency side of this, we will, of course, look for ways to give that back to our owners and are already doing that, in my example for new-builds or for new openings that are coming into the system.

Yes. And I think it's also important that the investments that we've been making in AI are not additive to our system funding those. [Audio Gap]

And going forward, would you expect to enter similar arrangements in order to expand your footprint or to get asset sales over the line?

I'll answer that first question is that there in accordance with those arrangements that we had entered into with the buyer, particularly in those first 2 instances, which is Orlando and the prior real estate sale. There are certain conditions upon which performance will be met, and we will realize the returns. So, the dates are in the future, beyond the period, but could be accelerated based on the performance of the assets. And I'm pleased to say that we're tracking to realizing those investments. So that's why we pointed those out. And with respect to our common interest in Juniper Hotels, that's really a decision that we would make when we believe that it is valued at the -- at values that are attractive in that market. So with what we're seeing happening in India, we believe that, that's a potential for us too. And that timing could be, frankly, any time. And whether we would do that in the future, absolutely, if it delivers value with respect to an asset sale and is with a strategic partner that we're going to be in a long-term relationship with. And it helps to finalize the deal, confidence in future earnings is realization in a finite period of time in the future.

Great. Steve, I saw you.

Steve Pizzella, Deutsche Bank. Just on the distribution business, which has faced some near-term headwinds, but also provides some easy comparisons at the same time. Can you walk us through how you arrived at the 2% to 4% growth CAGR? And maybe is there anything that prohibited from getting back to 2024 levels?

So within our modeling, if you take out all of what is temporary, that the hurricane what happened, the security concerns in Mexico, all of that has really been a headwind in 2026. Of course, the hurricane started in Q4 2025 or was an event in Q4 2025. When those properties come back online, it's -- there's a lot of reconstruction that's happening in Jamaica, but there's a lot of also demand that's pent up that wants to get back to the island. We believe those are temporary and getting back to 2025 levels and slightly ahead is a very reasonable and consistent with underwriting performance levels for the business. There's other opportunities we're always looking at with respect to the business as far as partnerships are concerned. So there could be upside to that number, but we feel like that's a good, reasonable assumption.

There's an expression, built with a crisis go unappreciated or untaken advantage of. So we've been spending a lot of time alongside Javier. This platform generates enormous revenues for our inclusive hotels, so it's very important to us. Meanwhile, necessity being the mother of invention, we went to work on how further AI enablement might actually allow us to reduce costs, but be more effective and do more innovative dynamic revenue management for packages, which doesn't exist in any other package software platform in the world. And we're super excited about that work. We're just getting started on it. It will also allow us to be a much better, more effective, more powerful white-label partner. So, I would say the 2% to 4% is business as usual, but we haven't -- we're not leaving any rock not turned over to identify ways that we could potentially grow much more significantly in the future.

We'll change it up with Patrick. I saw your hand up.

Patrick Lobo with Ashler Capital. Expanding on that last question a little bit. Can you talk about the benefits of the all-inclusive platform, both with UVC and the distribution business today in terms of how that benefits owners and how that differentiates Hyatt when competing for deals?

Yes, for sure. Owners value both of those platforms enormously. The ALGV platform is the biggest tour operator travel platform in North America has been for many years. So, the volume of traffic that we see coming across that platform is enormous. We have pretty significant visibility into flight schedules and fleet planning amongst major airlines, as well as some of the other airlines that like Frontier and so forth, that actually dedicate some of their aircraft to charter operations. Meanwhile, it's a very, very effective and efficient channel. UVC members are extraordinarily engaged and active and loyal. They are the first people who came back, those members are the first people who came back after COVID. They are the first ones to book immediately into any new resorts that we have that we open. So, they actually help us ramp our hotels much faster because they're on it. They -- the whole benefit that we have available to us that nobody else can replicate is that we've got a very large network of hotels that they can trade amongst. So we've got probably 60 hotels in the Americas, and nobody else has that kind of a network for a Travel Club like that. So owners really like it and the owner economics. We've done exhaustive work on this by the way, because I wanted to verify that the guests and members are getting real value for their membership and that owners are getting real value for participating. And in both cases, and of course, we benefit because we're making money off of it as well. But it's very clear that the first 2 statements are true.

Great. We have time for a couple of more questions. Chad, I saw you.

Chad Beynon from Macquarie. Thanks for everything today. Just wanted to ask broadly around your industry segments for business travel. We've talked about AI a lot on the positive. Obviously, the companies are experiencing changes. There's been some tech layoffs, and must expect for some of that to come. So as we're thinking about who your traveler is and how that's evolved as you filled in the map, can you talk about any additional reliance on that tech sector? And if you do see a decline from travel from that area, kind of where you'd fill that in from?

We haven't seen a decline from that area to date. It's actually -- they continue to be some of our most important those kinds of companies really the most important segment that we currently serve. What I will say is, as we've looked and seen how the ebb and flow of different sectors has done, when I joined the industry 20 years ago, pharma was, by far, the biggest by far. It was probably twice the banking sector, which was second in line, and tech was like fifth. So it's evolved tremendously, Guess what's back? Pharma, because a lot of companies are actually relaunching different therapies that require sales forces. Well, sales forces -- that's where the bread and butter that big pharma gatherings or the big pharma gatherings are all about. And I think that interestingly, if you really want to get conceptual about it, AI is going to probably accelerate drug discovery. New chemical entities that will turn into therapeutics that require sales forces to sell. We're hosting AstraZeneca here in this very hotel today. We have a very large program with another pharma company in Florida as we speak. So, pharma has really, really shown some great strength. Banking, to be honest with you, it kind of ebbs and flows based on the sentiment of the moment and how healthy the markets are and so forth. So, I wouldn't say that that's been durable. But pharma is coming back as a pretty reliable and significant sector.

Ben Chaiken, Mizuho. You've talked about white space a lot as an opportunity for the network. You quantified it on Slide 58. Can you maybe help us contextualize where the opportunity is of the medium to long term? And then part 2, I think if I heard you correctly, you made a comment that 85% of signings within Essentials were new owners. Can you talk about how this impacts the overall flywheels, as I imagine they're very much related.

They are. So, the kinds of markets that we identified when we were doing all the research for Hyatt Studios were secondary markets, and we had no presence because those secondary markets didn't have rate levels that would support building, say, a Hyatt Place or Hyatt House. They do support building a Hyatt Studio, Select or -- well, maybe not Unscripted, it depends on the level of the Unscripted property. So, we believe that the bulk of that first wave of expansion is going to be in secondary markets, sometimes in tertiary markets. Julienne actually named 4 or 5 brand new markets for us. I mean, never having had a hotel in West Virginia in our in our entire history is kind of a strange thing. But a lot of strange things exist, like we're not present in a whole bunch of markets that you would think that we should be. So that's the first wave. And I think that the new owner groups that are -- that really concentrate their investments in upper midscale is what we are now leaning into. And that's an owner group that's an owner community that we have not had historical strength with -- but Julienne, while she took her a brief hiatus from Hyatt, unfortunately, but thrilled that she's back, has a lot of experience with that in our group. So we have now back leading the Americas, someone who really has great knowledge base and understands that owner group very well. That's just the U.S. commentary. I think ultimately, as we progress, that Hyatt Select will show up more and more in tertiary markets as well. We will never be as proliferated in highway locations or remote locations, maybe rural locations as our competitors are because they just continue to proliferate in part to sustain net rooms growth, but they have lower and lower chain scale opportunities. We're not in the lower mid-scale economy and we're not going to be there anytime soon. We believe, and Mark has really countered this into my head, the best way to grow a powerful loyalty program is to grow by the adjacent segments. If you leap from upscale to lower mid-scale or economy, you end up with a bimodal distribution, it does not work, just doesn't work. And I'm not going to go into the details, but you can look at companies that have bimodal distributions, just by virtue of what their product line is. Their contribution at either end of the spectrum. Well, the contribution of low end tends to be high. The contribution to the hand is very low because the price point differential is so great. So we believe in contiguous growth.

Great. We're going to go with Kevin, and then we've got one online question and then we'll wrap up.

Kevin Kopelman from TD Cowen. You highlighted RevPAR index a couple of times in the presentation, and I was wondering if you could give more color on how RPI has progressed over the last few years. And if you see more opportunity for upside in RPI in the coming years?

Yes. So what we said is we've led RevPAR growth, actual growth rate for the last 5 years almost by definition, that means you're gaining share, which is what's happened. And we continuously grow share. And we're running a RevPAR premium Index lies across each of our brand groups. But I have to tell you that we are increasingly focused on net room realization -- net rate realization, sorry, and margin because, again, back to the questions that were being asked before about, well, shouldn't you be at 60% penetration and isn't that cheaper delivered cost? The answer is not necessarily, you have to really look harder at how people are counting penetration. And for us, getting to 60% or 70% loyalty penetration with worse margins is idiotic. Like, that doesn't serve our owners. And we're not here to serve someone's notions that penetration is the only thing that matters. We're looking at dollars. That's why this whole hyper-focus, and I'm sorry to preach about this, it's like somehow Net Rooms Growth by itself, completely and totally detached from the economics that are associated with fee growth, is not sensible. Net rooms growth doesn't create dollars. Fees create dollars. And Joan mentioned that our fee growth has been higher than any of our competitors over the last -- since our last Investor Day.

Since '22.

Since '22. So we're focused not just on net rooms growth. We're focused on net fee growth. That's much more important to you as an investor. It should be.

And that was organic, too.

Yes. Our organic growth rate in fees, organic is higher than the total fee growth for our competitors. There's a reason for that, higher fees per key and translation into dollars. We're not doing -- you know how they say when you eat celery, it's empty calories. Yes, some of the net rooms growth that's being reported is empty calories. We're not interested in empty-calorie. We want nutrition. That's called money.

Well, what I will say to ensure that everyone in the audience gets incremental calories at lunch. We'll take one last question, and then we'll wrap it up. This is actually for Mark. I think this is a really good one to wrap up on. Mark, what's your point of view on the loyalty landscape and what ultimately differentiates and separates Hyatt?

Thanks, Adam. World of Hyatt, and you heard Laurie say this has really ownable points of difference. And not because we thought that made sense, but because we do spend a lot of time listening. And what our members have said and they continue to say to us is that loyalty programs feel a lot more one-sided than they ever have before. And if I ask you to think about in your own lives, the most loyal relationships you have, most of you would think about a family member. And what I guarantee you doesn't happen every January 1, is that you don't reset your barometer with them and tell them, we had a good last year. Now let's see what you do this year. And if and only if you accomplish certain things, we'll have another loyal relationship and so calendar turns. And yes, that's exactly what's happening. And I think what you're seeing in a World of Hyatt, whether it is choice when a member works hard to stay with us and get to 10 nights or 20 nights, what they don't want is a prescriptive gift of what you think matters to them. What they really value is Give me a choice. It may be points, it may be an upgrade, it may be a free room-night, but let me decide. And then maybe the ultimate barometer or point of difference is the hallmark of Guest of Honor, which just changes the definition of loyalty. Loyalty programs today recognize one person, the person who gives them frequency. And yet here and very true to our purpose of care, if you're important to us and shouldn't somebody who is important to you, by definition also be important to us. And that's what Guest of Honor does, and it's the only benefit of its kind in this industry. And these points of difference, I believe, we believe, are resonating. We have welcomed members into World of Hyatt at a record pace in the last few years, and we're welcoming many who honestly grew up in somebody else's loyalty program who feel a little lost or a little unheard, and we love the space we sit in today. We think World of Hyatt has a very clear point of difference.

Great. Mark, I'm going to turn it over to you then for any closing remarks.

Yes. I'm just going to stand for a second. I'm going to build right on the back of what Mark just said. So Guest of Honor is not -- it's not a coincidence that we are the company that's doing this because Guest of Honor when you think about it is a profound expression of gratitude. We are grateful to those members that have achieved that highest level. And one way to show that is to allow them in turn to show their gratitude to people who are important in their lives. That gifting capability has a massive profound impact on you. I don't know if you've all experienced this, I'm sure you have. When you express your gratitude for someone, the feeling you get back is actually much more powerful than what maybe you thought it might be, and it's a 2-way street. And that leads me to my closing comments, which is expressions of gratitude. First, I want to thank Joan and Adam, Ryan, Kira, so many members of our and Catia. So many members of our IR team who worked tirelessly on this event and pulling the data together and making sure that is a coherent story and cogent story. I am blessed with -- I think I've done over 65 earnings calls so far. I'm blessed with an incredible IR team, Hyatt is blessed with one and a phenomenal finance team. So my first gratitude goes out to them. Many members of my team, my direct reports, are here. And I personally think, of course, I should think this if I didn't, I would have to do something about it. I think I have the best team in the industry, and many of them are here now. And we are totally less aligned and really working coherently and cohesively as a team. We developed just to give you a little insight into how we actually think about our own behavioral norms amongst ourselves. We came up with a simple expression of what it means to be a part of the senior leadership team at Hyatt, and we crafted something called PACT, P A C T, Prioritization, Accountability, Collaboration, and Transparency. That's -- those are the norms, the behavioral norms and the relationship norms that we hold each other accountable to. And so, my gratitude for my team is endless. The hotel team. We already acknowledged Mark Wagner and Roberto Asia, but there are a lot of people who made this come to life. A couple of other people, Steve Enslin, who has actually technically retired, although I told him when he was doing that, he would never really retire, and he's right here as he has been for every meeting that's been important to Hyatt since he was a child a long time ago. It happens that we both share a passion for the same bands, so going to concerts with him is a blast. And sitting behind Steve, we have Mike Walsh, whose company has been our indefatigable partner in production. Producing the stuff seamlessly and consistently over time at this level of quality isn't a mistake. So, to him, to Tracey, to Brady, to Lauren, to Cass, to Savannah. The whole team has come together and done something really special. My final and most profound expression of gratitude to all of you. I think if you not learned anything other than this, you need to understand during this presentation, you need to understand, we cherish that which we're delivering for shareholders, it's absolutely critical to lifeblood for us. Yes, it's true that the Pritzker family has a massive stake in the company. So growing up, as I did, with the people whose money you're responsible for and accountable to sitting next to you in the office next door. Let's just say that it's not a stress-free environment. So my focus on delivering returns has always been at an extremely high level. I used to be about 6'2 and had black hair. But seriously, we have such profound gratitude for the time that you've all taken to be here, for your interest in the company. For the work that you all do, I mean really, really intensive work and to all of our shareholders. So that's really what I wanted to say in closing. So thanks for being here and enjoy your lunch.