Hyatt Hotels Corp

Good morning and welcome to the Hyatt fourth quarter and full year 2025 earnings call. All participants are in a listen-only mode. After the speaker's remarks, we'll conduct a question and answer session. To ask a question at this time, you'll need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Adam Roman, Senior Vice President, Investor Relations and Global FP&A. Thank you. Please go ahead.

Thank you and welcome to Hyatt's Fourth Quarter 2025 Earnings Conference Call. Joining me on today's call are Mark Hoplamazian, Hyatt's President and Chief Executive Officer, and Joan Botterini, Hyatt's Chief Financial Officer. Before we start, I would like to remind everyone that our comments today will include forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties, as described in our annual report on Form 10-K quarterly reports on Form 10-Q, and other SEC filings. These risks could cause our actual results to be materially different from those expressed in or implied by our comments. Forward-looking statements in the earnings release that we issue today, along with the comments on this call, are made only as of today and will not be updated as actual events unfold. In addition, you can find a reconciliation of non-GAAP financial measures referred to in today's remarks under the financial section of our investor relations website and in this morning's earnings release. An archive of this call will be available on our website for 90 days. Additionally, we posted an investor presentation on our investor relations website this morning containing supplemental information. Please note that unless otherwise stated, References to occupancy, average daily rate, and REVPAR reflect comparable system-wide hotels on a constant currency basis. Enclosed hotels in Jamaica are excluded from comparable metrics in 2026. Percentage changes disclosed during the call are on a year-over-year basis unless otherwise noted. With that, I will now turn the call over to Mark.

Thank you, Adam. Good morning, everyone, and thank you for joining us today. I want to begin by expressing my sincere gratitude for and pride in the entire Hyatt family. Our teams around the world navigated a dynamic macro economic environment in 2025, guided by our purpose. We advanced our evolution to a more brand focused organization, one that uses sharper brand positioning and deeper insights to go to market in a more meaningful and differentiated way. This approach allows us to serve our guests and customers on more stay occasions and become an even more attractive brand choice for owners. We closed 2025 with momentum, and we believe we are better positioned than ever to create lasting value for our shareholders. Now, turning to operating results, this morning we reported fourth quarter system-wide rev power growth of 4%, driven by the continued strength of our luxury brands. Leisure transient RevPar increased approximately 6% to last year, as our guests continued to prioritize leisure travel. This was especially true across our luxury brands, where we saw leisure transient RevPar grow by 9%, with strong growth across the world. Business transient RevPar declined 1% in the fourth quarter, driven by select service hotels in the United States. while full-service hotels delivered low single-digit growth, led by hotels in international markets. Group REF PAR increased 3% compared to last year, in line with our expectations, and supported by a more favorable calendar in the United States. We continue to see exceptional engagement from our World of Hyatt loyalty members, a key driver of our commercial performance. The World of Hyatt program is consistently recognized in the industry as best in class, And we are proud to have been recently recognized as NerdWallet's Best Hotel Rewards program and as the Point Guys Best Hotel Elite status in the industry. World of High continues to grow in both scale and significance. We ended 2025 with over 63 million members, an increase of 19% compared to the end of 2024 and World of Hyatt members accounted for nearly half of total occupied hotel rooms across the world in 2025. And as we've sharpened our brand focus, we're seeing loyalty drive not just scale, but higher value demand, particularly among our most frequent and loyal guests. In 2025, we saw a 13% increase in room nights from members who stayed with us for 50 or more nights over the course of the year. It's clear that the value proposition of our loyalty program resonates with current and prospective members, which we believe makes Hyatt very attractive to hotel owners and developers as they look to brands that are growing in value to them. Turning to development, we achieved industry-leading growth for the ninth consecutive year, with NetRoom's growth of 7.3% in 2025. Excluding acquisitions, NetRoom's growth was 6.7%, a meaningful acceleration for 2024. During the fourth quarter, we surpassed 1,500 open hotels and resorts globally and welcomed several notable openings, including the Park Hyatt Cabo del Sol and Onda's One Bangkok. Our newest upper mid-scale brands are starting to make an impact, marked by the second Hyatt Studios hotel opening, along with the debut of our first Hyatt Select hotels. Both brands provide the foundation for our upper mid-scale expansion in the United States. We also welcomed several unscripted by Hyatt hotels during the quarter, and we're excited about the opportunity to grow this brand across the world. We ended 2025 with a record development pipeline of approximately 148,000 rooms, up more than 7% compared to the end of 2024. In the United States, we achieved the strongest year of signings in the past five years, with 50% of those signings in markets where Hyatt does not currently have a brand presence. Our three new brands, Unscripted by Hyatt, Hyatt Studios, and Hyatt Select, accounted for nearly two-thirds of the signings in the United States, demonstrating the compelling value proposition for owners and developers and the clear opportunity for Hyatt to expand into new markets. Outside the United States, we continue to see strong interest in our brands, and we expect greater China and India to be significant drivers of future growth. In Greater China, we are seeing strong interest across our select service brands, with signings growing by more than 50% compared to 2024. In India, we are seeing great interest in our full-service offerings. Our strong pipeline and momentum in upscale and upper mid-scale brands reinforce our confidence in achieving durable and capital-efficient fee growth well into the future. Now, shifting to an update on transactions. On December 30th, we sold the remaining 14 hotels in the Playa portfolio to Tortuga Resorts for approximately $2 billion and entered into long-term management agreements for 13 of those properties. This transaction strengthens our position as the global leader in luxury all-inclusive offerings and is another example of delivering on our commitments and emerging with a value accretive asset-like platform. During the quarter, we also completed the sale of three Alua properties in Spain, which we acquired in late 2024. As part of this transaction, we entered into long-term management agreements, and the new owner plans to invest additional capital into those properties. We continue to make progress on the sale of additional owned properties, and we currently have three hotels under purchase and sale agreements. We expect to close these transactions in the second quarter of 2026, subject to certain closing conditions, and we will provide further updates as these transactions progress. We are also evaluating opportunities to sell additional assets beyond those assets already under contract. Since announcing our first asset sell-down commitment in 2017, we have realized over $5.7 billion of real estate disposition proceeds at an average multiple of 15 times. And we've invested approximately $4.4 billion into asset-like platforms at a blended multiple of less than 10 times. We've returned $4.8 billion to shareholders over this period of time, proving that we can return significant capital to shareholders while also investing in growth that creates long-term value. We are now fully transformed into an asset-light business, and we expect asset-light earnings of 90% in 2026. As I reflect on the year, I'm incredibly proud of what we've accomplished. We achieved strong operating results and organic growth, advanced our brand-focused organization, and completed the Playa transaction in a fully asset-light manner. But what stands out most to me is how our purpose has remained our North Star. While Hyatt has evolved significantly over the past decade, expanding our portfolio, entering new markets, and transforming our business model, what has never changed is the foundation that drives our decisions and defines our culture. Our purpose is embedded in the way our colleagues care for each other, our guests, and our owners every day around the world. It's what enables us to meet people where they are, to lead with empathy, and to deliver differentiated experiences. Our purpose shapes how we invest in our brands and loyalty program, where we choose to grow, and how we allocate capital. We've been deliberate about investing in the parts of our portfolio where we see the strongest demand, the best donor economics, and the greatest returns. That discipline has strengthened the durability of our fee-based earnings and increased our scale over time. As we look ahead, we believe this positions Hyatt as the most responsive, innovative, and ultimately as the best-performing hospitality company, one that can continue delivering consistent performance, capital-efficient growth, and long-term value for our shareholders. I would like to close by thanking each of our colleagues around the world who bring our purpose to life and deliver value to our stakeholders every day. Joan will now provide more details on our operating results. Joan, over to you.