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Form 8-K Hyatt Hotels Corp For: Aug 09

August 9, 2022 7:13 AM EDT

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 9, 2022
 
HYATT HOTELS CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 001-34521 20-1480589
(State or Other Jurisdiction
of Incorporation)
 (Commission
File Number)
 (IRS Employer
Identification No.)
  150 North Riverside Plaza  
8th FloorChicago,Illinois 60606
(Address of Principal Executive Offices)(Zip Code)
Registrant’s telephone number, including area code: (312750-1234
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common Stock, $0.01 par valueHNew York Stock Exchange
Former Name or Former Address, if Changed Since Last Report: Not Applicable
 
 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02. Results of Operations and Financial Condition.
    On August 9, 2022, Hyatt Hotels Corporation (the "Company") issued a press release announcing its results for its quarter ended June 30, 2022. The full text of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
    The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
On August 9, 2022, the Company published a supplemental investor presentation which may be accessed through the Company’s investor relations website. A copy of the supplemental presentation is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.
The information furnished under Item 7.01 and Exhibit 99.2 in this Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.
     (d) Exhibits.
99.1 
99.2 
101 Interactive Data File - XBRL tags are embedded within the Inline XBRL document
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Hyatt Hotels Corporation
Date: August 9, 2022
 By:/s/ Joan Bottarini
 Joan Bottarini
 Executive Vice President, Chief Financial Officer

 


logoa06a.jpg
Exhibit 99.1





Investor Contact:
Media Contact:
Noah Hoppe, 312.780.5991
Franziska Weber, 312.780.6106
noah.hoppe@hyatt.com
franziska.weber@hyatt.com
HYATT REPORTS SECOND QUARTER 2022 RESULTS
Total Fee Revenue More than Doubles from Last Year; Reaches Record Level
System-wide RevPAR, Excluding Greater China, Above 2019
CHICAGO (August 9, 2022) - Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported second quarter 2022 financial results. Net income attributable to Hyatt was $206 million, or $1.85 per diluted share, in the second quarter of 2022, compared to a net loss attributable to Hyatt of $9 million, or $0.08 per diluted share, in the second quarter of 2021. Adjusted net income attributable to Hyatt was $51 million, or $0.46 per diluted share, in the second quarter of 2022, compared to Adjusted net loss attributable to Hyatt of $117 million, or $1.15 per diluted share, in the second quarter of 2021. Refer to the table on page 14 of the schedules for a summary of special items impacting Adjusted net income (loss) and Adjusted earnings (losses) per diluted share for the three months ended June 30, 2022 and June 30, 2021.
"Our second quarter results serve as clear evidence of the earnings power of Hyatt as we continue to transform our business. Total fee revenue exceeded $200 million and was 27% higher than any other quarter in the Company’s history driven by a record level of leisure transient revenue and rapidly improving group and business transient demand," said Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation. "Demand broadened both geographically and by segment, with RevPAR in most of our key geographies exceeding the same period in 2019. Our outlook remains optimistic with strong actualized results and booking trends for future periods continuing in July."
Second quarter 2022 financial results as compared to the second quarter 2021 are as follows:
Net income increased to $206 million from a loss of $9 million.
Adjusted EBITDA increased to $255 million from $55 million.
Apple Leisure Group ("ALG") contributed $54 million of Adjusted EBITDA.
Adjusted EBITDA does not include ALG's Net Deferrals of $25 million and Net Financed Contracts of $15 million.
Comparable system-wide RevPAR increased 82% to $130.16 and comparable U.S. hotel RevPAR increased 85% to $150.52 in the second quarter of 2022.
Comparable owned and leased hotels RevPAR increased 140% to $186.34 and comparable owned and leased hotels operating margin improved to 31.9% in the second quarter of 2022.
All-inclusive Net Package RevPAR was $182.10 with an Average Daily Rate of $255.30.
System-wide Net Rooms Growth was 19.0% in the second quarter of 2022. Excluding ALG, Net Rooms Growth was 4.6%.
Pipeline of executed management or franchise contracts was approximately 113,000 rooms. Excluding ALG, the pipeline was approximately 106,000 rooms.
Mr. Hoplamazian continued, "We had a strong second quarter of gross rooms expansion through the opening of approximately 5,500 rooms during the quarter. While there have been delays in the timing of openings across the industry, we are particularly encouraged by the volume of conversion opportunities driven by the compelling value of our brands, and expect Net Rooms Growth for the full year to be greater than 6%."
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.


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OPERATIONAL UPDATE
Comparable system-wide RevPAR experienced rapid improvement in the second quarter and into the third quarter. Comparable system-wide RevPAR was down 5% to 2019 in the second quarter, improving from down 9% to 2019 in April to down 1% to 2019 in June. In July, comparable system-wide RevPAR was up 5% to 2019, marking one of the strongest individual months in Hyatt’s history powered by growth in luxury branded hotels, which were up 28% to 2019 in the Americas and EAME/SW Asia regions combined.
The results in July and favorable forward booking trends reflect continued strength. System-wide comparable transient revenue on the books for the remainder of the year is pacing 1% ahead of the same period in 2019 or 4% ahead when excluding Greater China. Additionally, short-term demand for group business continues to trend significantly ahead of 2019. Gross group room revenue booked in July for stay dates in 2022 for comparable Americas Full Service Managed properties was approximately 40% above July 2019 and group pace for the remainder of the year, from August through December, is approximately 7% below 2019 reflecting steady improvement as a result of strong short-term bookings.
Our all-inclusive portfolio also continues to experience strong growth. Based on preliminary results, net package RevPAR in July for ALG resorts in the Americas is approximately 24% higher in comparison with the same properties managed by ALG in July of 2019. Additionally, total package revenue for the entire ALG portfolio is approximately 74% higher than July of 2019, reflecting the impact of net rooms growth. Looking ahead, gross package revenue for ALG resorts in the Americas is pacing more than 44% above 2019 over the months of August through December for the same set of properties.
SECOND QUARTER RESULTS
Second quarter of 2022 financial results as compared to the second quarter of 2021 are as follows:
Management, Franchise, and Other Fees
Total management, franchise, and other fee revenues increased to $204 million in the second quarter of 2022 compared to $93 million reported in the second quarter of 2021 and reflected a sequential improvement from $154 million reported in the first quarter of 2022. Base management fees increased to $79 million, incentive management fees increased to $45 million, and franchise fees increased to $52 million during the quarter. Other fee revenues increased to $28 million during the quarter.
Americas Management and Franchising Segment
Americas management and franchising segment Adjusted EBITDA increased to $117 million in the second quarter of 2022 compared to $54 million reported in the second quarter of 2021. Results were led by the continuation of strong leisure demand and building momentum in group and business transient, resulting in increases in base and franchise fees with total franchise fees exceeding 2019 levels by 35% on a reported basis.
Americas net rooms increased 3.5% compared to the second quarter of 2021.
Southeast Asia, Greater China, Australia, New Zealand, South Korea, Japan and Micronesia (ASPAC) Management and Franchising Segment
ASPAC management and franchising segment Adjusted EBITDA decreased to $6 million in the second quarter of 2022 compared to $10 million reported in the second quarter of 2021. Results reflect lower demand in Greater China while the remainder of the region showed steady improvement led by the easing of travel restrictions as well as increased airlift to meet pent up demand.
ASPAC net rooms increased 6.1% compared to the second quarter of 2021.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.


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Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising Segment
EAME/SW Asia management and franchising segment Adjusted EBITDA increased to $13 million in the second quarter of 2022 compared to a loss of $1 million reported in the second quarter of 2021. In the second quarter of 2022, results across the region were led by Europe and the Middle East as travel restrictions eased, cross-border travel strengthened, and airlift improved.
EAME/SW Asia net rooms increased 7.9% compared to the second quarter of 2021.
Apple Leisure Group Segment
ALG segment Adjusted EBITDA was $54 million in the second quarter of 2022. Adjusted EBITDA does not include ALG's Net Deferrals of $25 million and Net Financed Contracts of $15 million. Results reflect strong demand for leisure destinations, increased airlift capacity, and favorable pricing environment.
During the second quarter of 2022, ALG added 10 resorts (or 2,502 rooms).
Refer to the table on page 3 of the schedules for further details on revenue recognition, deferrals, and financed contracts relating to the Unlimited Vacation Club.
Owned and Leased Hotels Segment
Owned and leased hotels segment Adjusted EBITDA increased to $99 million in the second quarter of 2022 compared to $12 million reported in the second quarter of 2021. Owned and leased hotels segment comparable operating margins improved to 31.9% from the second quarter 2021 as reported, reflecting strong operational execution and growth in average daily rates.
Refer to the tables starting on page 11 of the schedules for a detailed list of portfolio changes and the year-over-year net impact to total owned and leased hotels segment Adjusted EBITDA.
Corporate and Other
Corporate and other Adjusted EBITDA decreased to $(34) million in the second quarter of 2022 compared to $(21) million reported in the second quarter of 2021. The decrease to the second quarter of 2021 is driven by increases in certain selling, general, and administrative expenses, including $4 million of integration-related costs associated with the acquisition of ALG, and increases in payroll and related costs.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses decreased 11.4% inclusive of rabbi trust impacts and stock-based compensation. Adjusted selling, general, and administrative expenses increased $48 million, primarily due to the addition of ALG's Adjusted selling, general, and administrative expenses which were $28 million in the second quarter of 2022 and an increase in Corporate Adjusted selling, general, and administrative expenses of $13 million compared to second quarter of 2021.
Refer to the table on page 16 of the schedules for a reconciliation of selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses.
OPENINGS AND FUTURE EXPANSION
In the second quarter of 2022, 28 new hotels (or 5,510 rooms) joined Hyatt's system.
As of June 30, 2022, the Company had a pipeline of executed management or franchise contracts for approximately 550 hotels (approximately 113,000 rooms), inclusive of ALG's pipeline contribution of approximately 20 hotels (or approximately 7,000 rooms).
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.


Page 4

TRANSACTION / CAPITAL STRATEGY
During the second quarter, the Company completed the following asset sales related to its owned and leased portfolio, resulting in gross proceeds of $812 million at an aggregate multiple of 15.7x 2019 EBITDA:
Hyatt Regency Indian Wells Resort & Spa — The Company sold the 530-room Hyatt Regency Indian Wells Resort & Spa, located in Palm Springs, CA, for approximately $145 million (approximately $136 million, net of closing costs and proration adjustments) to an unrelated third party and entered into a long-term management agreement.
Grand Hyatt San Antonio River Walk — The Company sold the 1,003-room Grand Hyatt San Antonio River Walk, located in San Antonio, TX, for approximately $310 million (approximately $127 million, net of closing costs, proration adjustments, restricted cash returned, and after legal defeasance of $166 million of bonds) to an unrelated third party and entered into a long-term management agreement.
The Driskill — The Company sold the 189-room The Driskill, located in Austin, TX, for approximately $125 million (approximately $119 million, net of closing costs and proration adjustments) to an unrelated third party and entered into a long-term management agreement.
The Confidante Miami Beach — The Company sold the 339-room The Confidante Miami Beach, located in Miami Beach, FL, for approximately $232 million (approximately $227 million, net of closing costs and proration adjustments) to an unrelated third party and entered into a long-term management agreement.
On August 3, 2022, the Company acquired the following asset:
Hotel Irvine — The Company acquired the 541-room Hotel Irvine, located in Irvine, CA, for approximately $135 million from an unrelated third party.
The Company is currently marketing two hotels for sale and intends to successfully execute plans to realize approximately $2 billion of gross proceeds from the sales of real estate, net of acquisitions, by the end of 2024 as part of its expanded asset-disposition commitment announced in August 2021.
BALANCE SHEET / LIQUIDITY
As of June 30, 2022, the Company reported the following:
Total debt of $3,804 million, reflecting a reduction of approximately $180 million during the quarter through the repurchase of senior notes and the legal defeasance of bonds related to Grand Hyatt San Antonio River Walk.
Pro rata share of unconsolidated hospitality venture debt of $589 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
Total liquidity of approximately $3.5 billion with $1,955 million of cash and cash equivalents and short-term investments, and borrowing availability of $1,496 million under Hyatt's revolving credit facility, net of letters of credit outstanding.
SHARE REPURCHASE / DIVIDEND
During the second quarter of 2022, the Company repurchased Class A common shares for approximately $101 million. There were no Class B shares repurchases or any Class A or Class B quarterly dividend payments during the second quarter of 2022. The Company ended the second quarter with 50,096,332 Class A and 59,017,749 Class B shares issued and outstanding.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.


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2022 OUTLOOK
The Company is providing the following information for the 2022 fiscal year:
Comparable system-wide constant dollar RevPAR is expected to be greater than 2021 by a range of 55% to 60%, and system-wide constant dollar RevPAR is expected to be less than 2019 by a range of 4% to 9% for hotels that were comparable in both years.
Capital expenditures are expected to be approximately $210 million.
Hyatt capital expenditures, excluding ALG, are expected to be approximately $185 million.
ALG capital expenditures are expected to be approximately $25 million.
Adjusted selling, general, and administrative expenses are expected to be approximately $460 million to $465 million. This includes selling, general, and administrative expenses associated with the acquisition of ALG, of which $25 million to $30 million is related to one-time integration costs in 2022. Refer to the table on page 16 of the schedules for a reconciliation of selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses.
Excluding ALG, Adjusted selling, general, and administrative expenses are expected to be approximately $300 million to $305 million, and include $25 million to $30 million related to one-time integration costs in 2022.
ALG Adjusted selling, general, and administrative expenses are expected to be approximately $160 million.
The Company expects to grow net rooms by greater than 6.0%.
No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2022 Outlook. The Company's 2022 Outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that Hyatt will achieve these results.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.


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CONFERENCE CALL INFORMATION
The Company will hold an investor conference call this morning, August 9, 2022, at 8:00 a.m. CT.
Participants are encouraged to listen to a simultaneous webcast of the conference call, which may be accessed through the Company’s website at investors.hyatt.com. Alternatively, participants may access the live call by dialing: 888-412-4131 (U.S. Toll-Free) or 646-960-0134 (International Toll Number) using conference ID# 9019679 approximately 15 minutes prior to the scheduled start time.
A replay of the call will be available for one week beginning on Tuesday, August 9, 2022 at 11:00 a.m. CT by dialing: 800-770-2030 (U.S. Toll-Free) or 647-362-9199 (International Toll Number) using conference ID# 9019679. An archive of the webcast will be available on the Company’s website for 90 days.
FORWARD-LOOKING STATEMENTS
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, outlook, occupancy, the impact of the COVID-19 pandemic and pace of recovery, the amount by which the Company intends to reduce its real estate asset base and the anticipated timeframe for such asset dispositions, the number of properties we expect to open in the future, booking trends, RevPAR trends, our expected Adjusted SG&A expense, our expected capital expenditures, our expected net rooms growth, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: risks associated with the acquisition of ALG; our ability to realize the anticipated benefits of the acquisition of ALG as rapidly or to the extent anticipated, including successful integration of the ALG business; the duration and severity of the COVID-19 pandemic and the pace of recovery following the pandemic, any additional resurgence, or COVID-19 variants; the short and long-term effects of the COVID-19 pandemic, including on the demand for travel, transient and group business, and levels of consumer confidence; the impact of the COVID-19 pandemic, any additional resurgence, or COVID-19 variants, and the impact of actions that governments, businesses, and individuals take in response, on global and regional economies, travel limitations or bans, and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending; the broad distribution and efficacy of COVID-19 vaccines and treatments, wide acceptance by the general population of such vaccines, and the availability, use, and effectiveness of COVID-19 testing, including at-home testing kits; the ability of third-party owners, franchisees, or hospitality venture partners to successfully navigate the impacts of the COVID-19 pandemic, any additional resurgence, or COVID-19 variants; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and the pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geo-political conditions, including political or civil unrest or changes in trade policy; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters such as earthquakes, tsunamis, tornadoes, hurricanes, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve certain levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party property owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and the introduction of new brand concepts; the timing of acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations; failure to successfully complete proposed transactions (including the failure to satisfy closing conditions or obtain required approvals); our ability to successfully execute on our strategy to expand our management and franchising business while at the same time reducing our real estate asset base within targeted timeframes and at expected values; declines in the value of our real estate assets; unforeseen terminations of our management or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, including as a result of the COVID-19 pandemic, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.


Page 7

administrative proceedings; violations of regulations or laws related to our franchising business; and other risks discussed in the Company's filings with the SEC, including our annual report on Form 10-K, which filings are available from the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
NON-GAAP FINANCIAL MEASURES
The Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including: net income (loss), adjusted for special items; diluted earnings (losses) per share, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; and Adjusted SG&A. See the schedules to this earnings release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures.
AVAILABILITY OF INFORMATION ON HYATT'S WEBSITE AND SOCIAL MEDIA CHANNELS
Investors and others should note that Hyatt routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) filings, press releases, public conference calls, webcasts and the Hyatt Investor Relations website. The Company uses these channels as well as social media channels (e.g., the Hyatt Facebook account (facebook.com/hyatt); the Hyatt Instagram account (instagram.com/hyatt/); the Hyatt Twitter account (twitter.com/hyatt); the Hyatt LinkedIn account (linkedin.com/company/hyatt/); and the Hyatt YouTube account (youtube.com/user/hyatt)) as a means of disclosing information about the Company's business to our guests, customers, colleagues, investors, and the public. While not all of the information that the Company posts to the Hyatt Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Hyatt to review the information that it shares at the Investor Relations link located at the bottom of the page on hyatt.com and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Sign up for Email Alerts" in the "Investor Resources" section of Hyatt's website at investors.hyatt.com.
ABOUT HYATT HOTELS CORPORATION
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of June 30, 2022, the Company’s portfolio included more than 1,150 hotels and all-inclusive properties in 72 countries across six continents. The Company's offering includes brands in the Timeless Collection, including Park Hyatt®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Hyatt Residence Club®, Hyatt Place®, Hyatt House®, and UrCove; the Boundless Collection, including Miraval®, Alila®, Andaz®, Thompson Hotels®, Hyatt Centric®, and Caption by Hyatt; the Independent Collection, including The Unbound Collection by Hyatt®, Destination by Hyatt™, and JdV by Hyatt™; and the Inclusive Collection, including Hyatt Ziva®, Hyatt Zilara®, Zoëtry® Wellness & Spa Resorts, Secrets® Resorts & Spas, Breathless Resorts & Spas®, Dreams® Resorts & Spas, Vivid Hotels & Resorts®, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.

Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.


Hyatt Hotels Corporation
Table of Contents
Financial Information (unaudited)
1.
2.
3.
4.
5.
6.
7.
8. - 9.
10.
11.
12. - 18.
a.
b.
c.
d.
e.
f.
g.
19. - 23.

Percentages on the following schedules may not recompute due to rounding. Not meaningful percentage changes are presented as "NM".



Hyatt Hotels Corporation
Condensed Consolidated Statements of Income (Loss)
(in millions, except per share amounts)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
REVENUES:
Owned and leased hotels$331 $191 $602 $295 
Management, franchise, and other fees204 93 358 156 
Contra revenue(9)(9)(18)(17)
Net management, franchise, and other fees195 84 340 139 
Distribution and destination management 256 — 502 — 
Other revenues61 22 138 41 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties640 366 1,180 626 
Total revenues1,483 663 2,762 1,101 
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
Owned and leased hotels229 174 439 298 
Distribution and destination management 206 — 400 — 
Depreciation and amortization105 74 224 148 
Other direct costs69 24 136 47 
Selling, general, and administrative76 86 187 181 
Costs incurred on behalf of managed and franchised properties628 375 1,184 652 
Direct and selling, general, and administrative expenses1,313 733 2,570 1,326 
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts(46)24 (77)36 
Equity earnings (losses) from unconsolidated hospitality ventures(34)(8)20 
Interest expense(38)(42)(78)(83)
Gains on sales of real estate251 105 251 105 
Asset impairments(7)(2)(10)(2)
Other income (loss), net(19)25 (29)37 
INCOME (LOSS) BEFORE INCOME TAXES312 241 (112)
PROVISION FOR INCOME TAXES(106)(15)(108)(201)
NET INCOME (LOSS)206 (9)133 (313)
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS— — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION$206 $(9)$133 $(313)
EARNINGS (LOSSES) PER SHARE—Basic
Net income (loss)$1.88 $(0.08)$1.21 $(3.07)
Net income (loss) attributable to Hyatt Hotels Corporation$1.88 $(0.08)$1.21 $(3.07)
EARNINGS (LOSSES) PER SHARE—Diluted
Net income (loss)$1.85 $(0.08)$1.19 $(3.07)
Net income (loss) attributable to Hyatt Hotels Corporation$1.85 $(0.08)$1.19 $(3.07)
Basic share counts110.0101.9110.1101.7
Diluted share counts111.9101.9112.2101.7
Page 1


Hyatt Hotels Corporation
Segment Financial Summary
(in millions)
Three Months Ended June 30,Six Months Ended June 30,
20222021Change ($)Change (%)Change in Constant $Change in Constant $ (%)20222021Change ($)Change (%)Change in Constant $Change in Constant $ (%)
Owned and leased hotels $335 $194 $141 71.9 %$142 72.8 %$612 $301 $311 103.0 %$312 103.7 %
Americas management and franchising 157 85 72 86.9 %72 87.0 %290 140 150 107.0 %150 107.1 %
ASPAC management and franchising18 20 (2)(12.1)%(1)(9.3)%32 35 (3)(7.5)%(2)(5.7)%
EAME/SW Asia management and franchising21 15 222.5 %16 233.1 %36 13 23 173.9 %24 183.3 %
Apple Leisure Group329 — 329 NM329 NM639 — 639 NM639 NM
Corporate and other 13 11 21.5 %21.5 %27 19 40.9 %40.9 %
Eliminations (a)(21)(10)(11)(112.4)%(11)(112.6)%(36)(16)(20)(127.8)%(20)(127.9)%
Adjusted revenues$852 $306 $546 178.1 %$549 179.7 %$1,600 $492 $1,108 224.8 %$1,111 226.3 %
Adjusted EBITDA
Owned and leased hotels $82 $11 $71 687.5 %$70 658.6 %$130 $(14)$144 998.3 %$143 NM
Pro rata share of unconsolidated hospitality ventures17 16 NM16 NM23 (3)26 NM26 NM
Total owned and leased hotels 99 12 87 752.4 %86 719.9 %153 (17)170 NM169 NM
Americas management and franchising 117 54 63 115.3 %63 115.6 %202 82 120 145.8 %120 146.1 %
ASPAC management and franchising10 (4)(40.5)%(3)(38.0)%11 15 (4)(28.6)%(3)(26.4)%
EAME/SW Asia management and franchising13 (1)14 NM14 NM19 (1)20 NM20 NM
Apple Leisure Group54 — 54 NM54 NM110 — 110 NM110 NM
Corporate and other (34)(21)(13)(62.2)%(13)(62.7)%(72)(45)(27)(57.9)%(27)(58.1)%
Eliminations— (1)(39.7)%(1)(39.7)%— 24.9 %— 24.9 %
Adjusted EBITDA$255 $55 $200 365.4 %$200 364.0 %$424 $35 $389 NM$389 NM
Three Months Ended June 30,Six Months Ended June 30,
20222021Change $Change (%)20222021Change $Change (%)
Adjusted EBITDA$255 $55 $200 365.4 %$424 $35 $389 NM
Net Deferral activity
Increase in deferred revenue$52 $ $52 NM$101 $ $101 NM
Increase in deferred costs(27)— (27)NM(52)— (52)NM
Net Deferrals$25 $ $25 NM$49 $ $49 NM
Increase in Net Financed Contracts$15 $ $15 NM$22 $ $22 NM
(a)These intersegment eliminations represent management fee revenues and expenses related to our owned and leased hotels and promotional award redemption revenues and expenses related to our co-branded credit card program at our owned and leased hotels.
Page 2


Hyatt Hotels Corporation
Reconciliation of Unlimited Vacation Club Net Deferrals
(in millions)

Three Months Ended June 30,Six Months Ended June 30,
20222021Change $Change (%)20222021Change ($)Change (%)
Sales of membership club contracts deferrals$91 $— $91 NM$179 $— $179 NM
Membership club revenue recognized(39)— (39)NM(78)— (78)NM
Increase in deferred revenue from membership club contract sales 52  52 NM101  101 NM
Costs of memberships club contracts deferrals(29)— (29)NM(56)— (56)NM
Membership club costs recognized— NM— NM
Increase in deferred costs from membership club contract costs(27) (27)NM(52) (52)NM
Net Deferrals$25 $ $25 NM$49 $ $49 NM
Increase in Net Financed Contracts$15 $ $15 NM$22 $— $22 NM

Page 3


Hyatt Hotels Corporation
Hotel Chain Statistics
Comparable Hotels
In Constant $
Three Months Ended June 30,Six Months Ended June 30,
RevPAROccupancyADRRevPAROccupancyADR
2022vs. 20212022vs. 20212022vs. 20212022vs. 20212022vs. 20212022vs. 2021
Owned and leased hotels (# of hotels) (a)
Owned and leased hotels (26)$186.34 140.1  %70.4  %30.8% pts$264.74 35.2  %$160.94 180.4  %61.7  %30.9% pts$260.78 39.8  %
Managed and franchised hotels (# of hotels) (b)
System-wide hotels (922)$130.16 81.7  %65.5  %17.8% pts$198.78 32.4  %$112.32 91.9  %58.4  %16.9% pts$192.31 36.2  %
Americas
Full service hotels (217)$175.14 112.0  %70.2  %27.7% pts$249.52 28.5  %$149.68 136.1  %61.0  %26.5% pts$245.46 33.5  %
Select service hotels (435)$116.77 55.2  %74.6  %11.6% pts$156.63 31.3  %$100.05 62.6  %68.1  %12.7% pts$147.01 32.5  %
ASPAC
Full service hotels (120)$70.64 0.8  %43.9  %(2.3)% pts$161.06 6.2  %$66.86 7.4  %40.6  %(0.4)% pts$164.84 8.6  %
Select service hotels (31)$33.03 (22.6) %49.9  %(11.6)% pts$66.22 (4.5) %$32.27 (16.1) %47.5  %(9.1)% pts$67.95 0.0  %
EAME/SW Asia
Full service hotels (99)$135.48 239.9  %65.2  %36.6% pts$207.90 49.3  %$112.77 204.5  %57.0  %28.1% pts$197.77 54.5  %
Select service hotels (20)$62.40 148.2  %71.9  %32.1% pts$86.82 37.4  %$57.15 119.2  %64.0  %22.4% pts$89.36 42.5  %

(a) Owned and leased hotels figures do not include unconsolidated hospitality ventures.
(b) Managed and franchised hotels figures include owned and leased hotels.




Page 4


Hyatt Hotels Corporation
Hotel Brand Statistics
Comparable System-wide Managed and Franchised Hotels (a)
In Constant $
Three Months Ended June 30,Six Months Ended June 30,
RevPAROccupancyADRRevPAROccupancyADR
2022vs. 20212022vs. 20212022vs. 20212022vs. 20212022vs. 20212022vs. 2021
Brand (# of hotels)
Park Hyatt (39)$205.11 64.3 %53.1 %11.9 pts$386.53 27.5 %$193.27 67.9 %49.0 %10.5 pts$394.15 31.8 %
Grand Hyatt (57)$132.65 79.1 %57.3 %15.3 pts$231.68 31.4 %$122.20 96.7 %52.5 %15.6 pts$232.79 38.4 %
Andaz (23)$214.22 70.1 %65.2 %18.4 pts$328.78 22.3 %$192.41 84.7 %57.4 %16.5 pts$335.35 31.6 %
Unbound (21)$226.19 111.8 %62.2 %17.5 pts$363.55 52.1 %$180.73 125.9 %54.0 %18.2 pts$334.53 49.7 %
Composite Luxury1
$165.91 76.9 %58.6 %16.0 pts$283.33 28.7 %$149.59 90.6 %53.0 %15.7 pts$282.02 34.1 %
Hyatt Regency (204)$124.44 105.0 %63.3 %23.0 pts$196.70 30.6 %$104.71 118.3 %55.0 %21.1 pts$190.29 34.4 %
Hyatt Centric (37)$149.86 126.5 %71.0 %27.7 pts$211.14 38.4 %$126.00 120.5 %61.4 %22.7 pts$205.29 39.1 %
Composite Upper-Upscale2
$127.46 108.6 %64.2 %23.6 pts$198.38 31.8 %$106.74 119.8 %55.8 %21.5 pts$191.34 35.1 %
Hyatt Place (372)$103.04 51.1 %71.5 %10.7 pts$144.17 28.5 %$88.87 58.1 %65.2 %11.1 pts$136.31 31.1 %
Hyatt House (109)$126.10 61.7 %76.0 %11.8 pts$165.99 36.7 %$108.17 67.2 %70.0 %13.3 pts$154.59 35.5 %
Composite Upscale3
$108.39 53.9 %72.5 %10.9 pts$149.47 30.6 %$93.35 60.4 %66.3 %11.6 pts$140.78 32.3 %

(a) Managed and franchised hotels figures include owned and leased hotels.
1 Includes Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination by Hyatt, and Thompson Hotels.
2 Includes Hyatt Regency, Hyatt, Hyatt Centric, and JdV by Hyatt.
3 Includes Hyatt Place and Hyatt House.



Page 5



Hyatt Hotels Corporation
All-inclusive Brand Statistics
All Properties (Comparable and Non-Comparable) Managed and Franchised Hotels (a)
In Constant $
Three Months Ended June 30,Six Months Ended June 30,
Net Package
RevPAR
OccupancyNet Package
ADR
Net Package
RevPAR
OccupancyNet Package
ADR
2022vs. 20212022vs. 20212022vs. 20212022vs. 20212022vs. 20212022vs. 2021
Brand (# of hotels)
ALG resorts Americas (62)$204.51 NM72.6 %NM$281.64 NM$209.28 NM70.9 %NM$294.98 NM
ALG resorts Europe (50) (b)$80.13 NM68.7 %NM$116.70 NM$77.57 NM64.9 %NM$119.56 NM
Composite all-inclusive1 (b)
$182.10 NM71.3 %NM$255.30 NM$192.01 NM69.0 %NM$278.25 NM
(a) Managed and franchised hotels figures include owned and leased hotels.
(b) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
1 Includes ALG resorts, Hyatt Ziva and Hyatt Zilara.


Page 6


Hyatt Hotels Corporation
Fee Summary
(in millions)

Three Months Ended June 30,Six Months Ended June 30,
20222021Change ($)Change (%)20222021Change ($)Change (%)
Base management fees$79 $36 $43 119.2 %$139 $60 $79 131.5 %
Incentive management fees45 12 33 264.6 %85 20 65 324.4 %
Franchise fees52 29 23 83.4 %87 46 41 91.9 %
Management and franchise fees176 77 99 129.4 %311 126 185 147.9 %
Other fee revenues28 16 12 68.6 %47 30 17 53.7 %
Management, franchise, and other fees$204 $93 $111 118.3 %$358 $156 $202 129.3 %

Three Months Ended June 30,Six Months Ended June 30,
20222021Change ($)Change (%)20222021Change ($)Change (%)
Management, franchise, and other fees$204 $93 $111 118.3 %$358 $156 $202 129.3 %
Contra revenue from management agreements(6)(6)— (1.6)%(11)(11)— 1.6 %
Contra revenue from franchise agreements(3)(3)— (22.0)%(7)(6)(1)(27.4)%
Net management, franchise, and other fees$195 $84 $111 129.8 %$340 $139 $201 144.1 %

Page 7


Hyatt Hotels Corporation
Properties and Rooms by Geography
Owned and leased hotels
June 30, 2022June 30, 2021Change
PropertiesRoomsPropertiesRoomsPropertiesRooms
Full service hotels
United States (a)17 8,9642512,167(8)(3,203)
Other Americas1,262 1,262 — — 
EAME/SW Asia1,135 1,435 (2)(300)
Select service hotels
United States171 171 — — 
Other Americas293 293 — — 
EAME/SW Asia330 330 — — 
Total full service and select service hotels29 12,155 39 15,658 (10)(3,503)
All-inclusive hotels (b)6 1,279   6 1,279 
Total owned and leased hotels (c)35 13,434 39 15,658 (4)(2,224)
(a) Includes one hotel that was rebranded and combined with an existing property during the three months ended June 30, 2022.
(b) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(c) Figures do not include unconsolidated hospitality ventures.
Page 8


Hyatt Hotels Corporation
Properties and Rooms by Geography
Managed and franchised properties (includes owned and leased properties)
June 30, 2022June 30, 2021Change
PropertiesRoomsPropertiesRoomsPropertiesRooms
Americas
Full service hotels
United States managed147 64,102 145 64,000 102 
Other Americas managed 25 8,957 24 8,741 216 
United States franchised77 22,631 68 20,675 1,956 
Other Americas franchised11 2,019 1,307 712 
Subtotal260 97,709 245 94,723 15 2,986 
Select service hotels
United States managed34 5,075 37 5,658 (3)(583)
Other Americas managed13 1,857 13 1,857 — — 
United States franchised410 57,205 400 55,186 10 2,019 
Other Americas franchised18 2,651 13 1,761 890 
Subtotal475 66,788 463 64,462 12 2,326 
ASPAC
Full service hotels
ASPAC managed127 41,770 121 40,661 1,109 
ASPAC franchised11 3,275 2,803 472 
Subtotal138 45,045 130 43,464 1,581 
Select service hotels
ASPAC managed29 5,065 28 5,134 (69)
ASPAC franchised15 2,703 1,169 1,534 
Subtotal44 7,768 34 6,303 10 1,465 
EAME/SW Asia
Full service hotels
EAME/SW Asia managed105 26,176 101 25,494 682 
EAME/SW Asia franchised22 3,799 17 2,895 904 
Subtotal127 29,975 118 28,389 1,586 
Select service hotels
EAME/SW Asia managed24 3,978 16 2,651 1,327 
EAME/SW Asia franchised1,070 1,411 (1)(341)
Subtotal29 5,048 22 4,062 986 
Total full service and select service hotels1,073 252,333 1,012 241,403 61 10,930 
Americas
All-inclusive
Other Americas71 25,721 3,153 63 22,568 
Subtotal71 25,721 3,153 63 22,568 
EAME/SW Asia (a)
All-inclusive
EAME/SW Asia50 12,933 — — 50 12,933 
Subtotal50 12,933 — — 50 12,933 
Total all-inclusive hotels121 38,654 8 3,153 113 35,501 
Total managed and franchised (b)1,194 290,987 1,020 244,556 174 46,431 
Vacation ownership22 16 
Residential37 36 
Condominium ownership39 36 
(a) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(b) Figures do not include vacation ownership, residential, or condominium ownership units.
Page 9


Hyatt Hotels Corporation
Properties and Rooms by Brand
June 30, 2022June 30, 2021Change
BrandPropertiesRoomsPropertiesRoomsPropertiesRooms
Park Hyatt45 8,398 44 8,191 207 
Miraval (a)383 362 — 21 
Grand Hyatt58 31,110 59 32,489 (1)(1,379)
Alila16 1,765 15 1,681 84 
Andaz25 5,623 25 5,698 — (75)
The Unbound Collection by Hyatt30 5,898 26 5,401 497 
Thompson Hotels17 3,592 12 2,705 887 
Destination by Hyatt (a)15 3,447 17 3,852 (2)(405)
Hyatt Regency (b)228 94,336 219 92,107 2,229 
Hyatt13 3,354 12 2,056 1,298 
Hyatt Centric51 10,703 40 8,333 11 2,370 
JdV by Hyatt23 3,320 20 2,901 419 
Caption by Hyatt136 — — 136 
Hyatt Place406 58,885 393 56,289 13 2,596 
Hyatt House128 18,273 121 17,523 750 
UrCove13 2,310 1,015 1,295 
Other800 800 — — 
Total full service and select service hotels (c)1,073 252,333 1,012 241,403 61 10,930 
ALG resorts (d)(e)112 35,063 — — 112 35,063 
Hyatt Ziva2,672 2,234 438 
Hyatt Zilara919 919 — — 
Total all-inclusive hotels121 38,654 8 3,153 113 35,501 
Total managed and franchised properties and rooms (c)1,194 290,987 1,020 244,556 174 46,431 
Hyatt Residence Club (f)22 16 

(a) Includes one Destination by Hyatt property that was rebranded and combined with a Miraval property during the three months ended June 30, 2022.
(b) Includes one property that we will rebrand under the respective brand in 2022.
(c) Figures do not include vacation ownership, residential, or condominium ownership units.
(d) Includes nine non-branded properties managed by ALG.
(e) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(f) Includes eight properties that we will rebrand under the respective brand in 2023.
Page 10


Hyatt Hotels Corporation
Year-over-Year Net Impact of Portfolio Changes to Owned and Leased Hotels Segment Adjusted EBITDA
(in millions)
RoomsTransaction / Opening DateThree Months Ended June 30, 2022 Adjusted EBITDA Impact
Dispositions
Owned and Leased Hotels
Hyatt Regency Lost Pines Resort and Spa4902Q21
Hyatt Regency Lake Tahoe Resort, Spa and Casino4223Q21
Alila Ventana Big Sur (a)503Q21
Hyatt Regency Miami6154Q21
Hyatt Regency Bishkek1784Q21
Hyatt Regency Indian Wells Resort & Spa5302Q22
Grand Hyatt San Antonio River Walk1,0032Q22
The Driskill1892Q22
The Confidante Miami Beach3392Q22
Total Owned and Leased Hotels Dispositions (b)$(13)
Unconsolidated Hospitality Venture Hotels
Hyatt Place Celaya1452Q21
Hyatt Place Los Cabos1572Q21
Hyatt Place Tijuana1452Q21
Hyatt Centric Beale Street Memphis2272Q21
Hyatt Place Glendale / Los Angeles1794Q21
Hyatt Place San Jose Airport1904Q21
Hyatt House San Jose Airport1654Q21
Hyatt Centric Downtown Portland2204Q21
Hyatt House Nashville at Vanderbilt2014Q21
Hyatt Regency Andares Guadalajara2572Q22
Total Unconsolidated Hospitality Venture Hotels Dispositions (c) (d) (e)$(1)
Year-over-Year Net Impact of Dispositions to Owned and Leased Hotels Segment Adjusted EBITDA$(14)
Acquisitions or Openings
Owned and Leased Hotels
Total Owned and Leased Hotels Acquisitions or Openings$— 
Unconsolidated Hospitality Venture Hotels
Hyatt Centric Downtown Nashville2523Q21
Hyatt Centric Buckhead Atlanta2184Q21
Hyatt Regency Miami6154Q21
Caption by Hyatt Beale Street Memphis1362Q22
Total Unconsolidated Hospitality Venture Hotels Acquisitions or Openings (c) (e) (f)$
Year-over-Year Net Impact of Acquisitions and Openings to Owned and Leased Hotels Segment Adjusted EBITDA$
Year-over-Year Net Impact of Portfolio Changes to Owned and Leased Hotels Segment Adjusted EBITDA$(13)

(a) Total inventory of 59 rooms; 50 rooms available for sale with 9 rooms out of service. Hotel was acquired and subsequently sold during the year ended December 31, 2021.
(b) Includes the year-over-year impact of one property that converted from leased to managed during the three months ended December 31, 2021.
(c) Reflects Hyatt's pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA.
(d) Includes the sale of the hotel by the venture, the Company's sale of our equity interest in the venture, or the Company's equity interest no longer qualifying for the equity method of accounting.
(e) Includes the year-over-year financial impact of pre-opening activity.
(f) Includes the opening of a hotel by the venture.
Page 11


Hyatt Hotels Corporation
Reconciliation of Non-GAAP Measure: Reconciliation of Net Income (Loss) Attributable to Hyatt Hotels Corporation to EBITDA and EBITDA to Adjusted EBITDA
(in millions)
 Three Months Ended June 30,Six Months Ended June 30,
 20222021Change ($)Change (%)20222021Change ($)Change (%)
Net income (loss) attributable to Hyatt Hotels Corporation$206 $(9)$215 NM$133 $(313)$446 142.6 %
Interest expense38 42 (4)(7.7)%78 83 (5)(5.7)%
Provision for income taxes106 15 91 578.5 %108 201 (93)(46.4)%
Depreciation and amortization105 74 31 40.7 %224 148 76 51.3 %
EBITDA455 122 333 270.8 %543 119 424 356.2 %
Contra revenue— 8.0 %18 17 7.6 %
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties(640)(366)(274)(75.1)%(1,180)(626)(554)(88.7)%
Costs incurred on behalf of managed and franchised properties628 375 253 67.6 %1,184 652 532 81.7 %
Equity (earnings) losses from unconsolidated hospitality ventures(1)34 (35)(104.1)%(20)28 141.2 %
Stock-based compensation expense12 71.6 %40 36 12.3 %
Gains on sales of real estate(251)(105)(146)(138.2)%(251)(105)(146)(138.2)%
Asset impairments177.5 %10 317.1 %
Other (income) loss, net19 (25)44 175.3 %29 (37)66 176.7 %
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA17 16 NM23 (3)26 NM
Adjusted EBITDA $255 $55 $200 365.4 %$424 $35 $389 NM

Three Months Ended June 30,Six Months Ended June 30,
20222021Change $Change (%)20222021Change ($)Change (%)
Adjusted EBITDA$255 $55 $200 365.4 %$424 $35 $389 NM
Net Deferral activity
Increase in deferred revenue$52 $ $52 NM$101 $ $101 NM
Increase in deferred costs(27)— (27)NM(52)— (52)NM
Net Deferrals$25 $ $25 NM$49 $ $49 NM
Increase in Net Financed Contracts$15 $ $15 NM$22 $ $22 NM
Page 12


Hyatt Hotels Corporation
Reconciliation of Non-GAAP Measure: Reconciliation of Total Revenues to Adjusted Revenues
(in millions)

Three Months Ended June 30,Six Months Ended June 30,
20222021Change ($)Change (%)20222021Change ($)Change (%)
Total revenues$1,483 $663 $820 123.6 %$2,762 $1,101 $1,661 150.8 %
Add: Contra revenue— 8.0 %18 17 7.6 %
Less: Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (640)(366)(274)(75.1)%(1,180)(626)(554)(88.7)%
Adjusted revenues$852 $306 $546 178.1 %$1,600 $492 $1,108 224.8 %
Adjusted EBITDA Margin %30.0 %17.9 %12.1 %26.5 %7.1 %19.4 %
Adjusted EBITDA Margin % Change in Constant Currency11.9 %19.3 %
Page 13


Hyatt Hotels Corporation
Reconciliation of Non-GAAP Measure: Earnings (Losses) per Diluted Share and Net Income (Loss) Attributable to Hyatt Hotels Corporation, to Earnings (Losses) per Diluted Share, Adjusted for Special Items and Adjusted Net Income (Loss) Attributable to Hyatt Hotels Corporation - Three Months Ended June 30, 2022 and June 30, 2021.
(in millions, except per share amounts)
Location on Condensed Consolidated
Statements of Income (Loss)
Three Months Ended June 30,
20222021
Net income (loss) attributable to Hyatt Hotels Corporation$206 $(9)
Earnings (losses) per diluted share$1.85 $(0.08)
Special items
Gains on sales of real estate (a)Gains on sales of real estate(251)(105)
Fund (surpluses) deficits (b)Revenues for the reimbursement of costs incurred and costs incurred on behalf of managed and franchised properties; other income (loss), net(15)
Unconsolidated hospitality ventures (c)Equity earnings (losses) from unconsolidated hospitality ventures(4)
Unrealized losses (gains) (d)Other income (loss), net34 (5)
Loss on extinguishment of debt (e)Other income (loss), net— 
Asset impairments (f)Asset impairments
Utilization of Avendra proceeds (g)Costs incurred on behalf of managed and franchised properties; depreciation and amortization
OtherOther income (loss), net— 
Special items - pre-tax(214)(97)
Income tax benefit (provision) for special itemsProvision for income taxes59 (11)
Total special items - after-tax$(155)$(108)
Special items impact per diluted share$(1.39)$(1.07)
Adjusted net income (loss) attributable to Hyatt Hotels Corporation$51 $(117)
Earnings (losses) per diluted share, adjusted for special items$0.46