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About Hyatt Hotels Corporation

Hyatt Hotels is one of the world's top operators of luxury hotels and resorts. The company has more than 710 managed, franchised, and owned properties in some about 55 countries. Its core Hyatt Regency brand offers hospitality services targeted primarily to business travelers and upscale vacationers. The firm's hotel chains include the upscale, full service Hyatt, Grand Hyatt, and Andaz brands, as well as Park Hyatt (luxury) and Hyatt Place (select service). Hyatt also operates resorts under the names Hyatt Zilara and Hyatt Ziva and the company's Hyatt Residence Club sells timeshare properties.

Operations

Hyatt's worldwide hotel portfolio of more than 710 full and select service hotels including 305 managed properties; 348 franchised properties; 31 owned properties; 23 managed properties and 4 franchised properties.

Geographic Reach

Hyatt has hotels all over the world. Outside of the US, the company has existing properties in Europe (France, Germany, Italy, Switzerland, and the UK); the Middle East (Azerbaijan, Kyrgyz Republic, Saudi Arabia); Latin America (Argentina and Brazil); and Asia (India, Indonesia, Japan, and South Korea). During fiscal 2017 about 80% of the company's revenues came from properties located in the US, while the remaining 20% of revenues came from international operations.

Sales and Marketing

Hyatt uses a sales team located in global and regional sales offices around the world. Hyatt Gold Passport and Hyatt.com are the key components of its marketing strategy. Hyatt Gold Passport is a guest recognition and loyalty program. Hyatt.com is the chain's primary online source of information and reservation booking.

The hotel industry is highly competitive. Like all hospitality companies, Hyatt is dealing with internet intermediaries that charge fees to marketing its rooms through their services. Online booking disruption is one of the biggest challenges the large hotel companies face.

Financial Performance

Hyatt's revenue has been consistent and growing for the most part year-over-year.

The company reported $4.6 billion in revenue for fiscal 2017, which was an increase compared to the prior fiscal year, when the company reported $4.4 billion in revenue.

The increase in owned and leased hotels revenues during fiscal 2017 compared to fiscal 2016, was driven primarily by acquisitions and improved transient business in the US and Aruba. However, the increase was partially offset by hotels Hyatt sold in 2016 and 2017 and by the results of certain international hotels.

The increase in management and franchise fees in fiscal 2017 compared to the prior fiscal period was driven primarily by increases in management fees along with higher franchise fees in the Americas management and franchising segment due to new hotel openings and improved performance.

Other revenues from managed and franchised properties increased during fiscal 2017 compared to fiscal 2016 because of growth within Hyatt's full and select service managed and franchised hotel portfolio. Other revenues also increased $13 million during fiscal 2017 compared to 2016 due to sales of villas at Andaz Maui at Wailea Resort.

The increase in comparable owned and leased hotels revenues during fiscal 2017 compared to the previous fiscal year was driven by increases of $11 million at Hyatt's hotels in the US and $7 million at its international hotels.

Non-comparable owned and leased hotels revenues were flat due to increased revenues from the company's 2016 acquisitions, primarily related to the acquisition of the Andaz Maui at Wailea Resort, offset by decreased revenues as a result of the dispositions.

Hyatt's net income was $249 million in fiscal 2017, up from $204 million in fiscal 2016. Even though the company's revenue increased in fiscal 2017 compared to the prior fiscal period, its operating expenses and tax liabilities also increased. The relatively modest net income on billions in revenue shows how expensive it is to operate hotels.

The company's net cash from operations was $620 million at the end of fiscal 2017, up from $489 million at the close of fiscal 2016.

Strategy

In the US Hyatt focuses its expansion efforts on under-penetrated markets, mostly through management and franchising agreements. A key part of its strategy is to increase its franchise and managed properties, a business model that is associated with lower costs than outright ownership.

The company has doubled its properties in New York City. While about 80% of the company's revenues have traditionally come from the US, approximately 70% of its new hotels will be located outside North America.

As part of its international strategy, Hyatt is focusing on markets such as Brazil, China, India, Russia, Latin America, and the Middle East for growth. The company has some 50 hotels open or under development in China in key markets such as Beijing, Hong Kong, Macau, Shanghai, and Shenzhen. Hyatt has also expanded in India, bringing the total count of hotels under development there to more than 50.

Hyatt and Tianfu Minyoun Hospitality have agreed to expand the Hyatt Place, Hyatt House, Unbound Collection by Hyatt and Hyatt Centric hotel brands in China.

Hyatt has also been selling off some of its less profitable and less cost-effective hotels. It sold the Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Hyatt Regency Louisville, and Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course in 2017. The company sold its Andaz 5th Avenue and the Hyatt Regency Birmingham (U.K.) in 2016.

Mergers and Acquisitions

In early 2017 Hyatt acquired Miraval Group for $215 million. The acquisition gave Hyatt more wellness resorts and spas, allowing the company to better serve high-end travelers.

Hyatt Hotels Corporation

150 N RIVERSIDE PLZ FL 8
Chicago, IL 60606-1598
Phone: 1 (312) 750-1234

Stats

Employer Type: Publicly Owned
Stock Symbol: H
Stock Exchange: , NYSE
EVP and Global President, Operations: H. Charles Floyd
President and CEO: Mark S. Hoplamazian
Executive Chairman: Thomas J. Pritzker
Employees (This Location): 16
Employees (All Locations): 54,000

Major Office Locations

Chicago, IL

Other Locations

Birmingham, AL
Gilbert, AZ
Phoenix, AZ
Scottsdale, AZ
Tempe, AZ
Tucson, AZ
Cypress, CA
Emeryville, CA
Fremont, CA
Garden Grove, CA
Huntington Beach, CA
Indian Wells, CA
Irvine, CA
Long Beach, CA
Los Angeles, CA
Marina Del Rey, CA
Monterey, CA
Napa, CA
Newport Beach, CA
Palm Springs, CA
Palo Alto, CA
Rancho Cordova, CA
Riverside, CA
Roseville, CA
San Diego, CA
San Francisco, CA
San Jose, CA
San Ramon, CA
Santa Clara, CA
Truckee, CA
Valencia, CA
Aurora, CO
Avon, CO
Colorado Springs, CO
Denver, CO
Littleton, CO
Milford, CT
Shelton, CT
Washington, DC
Boca Raton, FL
Bonita Springs, FL
Clearwater, FL
Coral Gables, FL
Delray Beach, FL
Estero, FL
Fort Lauderdale, FL
Jacksonville, FL
Key West, FL
Kissimmee, FL
Lakeland, FL
Miami, FL
Orlando, FL
Sarasota, FL
Tallahassee, FL
Tampa, FL
Weston, FL
Atlanta, GA
Duluth, GA
Lithonia, GA
Macon, GA
Norcross, GA
Savannah, GA
Smyrna, GA
Honolulu, HI
Kihei, HI
Boise, ID
Champaign, IL
Chicago, IL
Deerfield, IL
Glendale, IL
Itasca, IL
Lisle, IL
Oak Brook, IL
Oakbrook Terrace, IL
Rosemont, IL
Schaumburg, IL
Fort Wayne, IN
Indianapolis, IN
Overland Park, KS
Wichita, KS
Florence, KY
Lexington, KY
Louisville, KY
New Orleans, LA
Boston, MA
Braintree, MA
Burlington, MA
Medford, MA
Bethesda, MD
Auburn Hills, MI
Dearborn, MI
Livonia, MI
Utica, MI
Bloomington, MN
Minneapolis, MN
Kansas City, MO
Saint Louis, MO
Ridgeland, MS
Charlotte, NC
Durham, NC
Morrisville, NC
Omaha, NE
Springfield, NE
Branchburg, NJ
Jersey City, NJ
Mount Laurel, NJ
New Brunswick, NJ
Parsippany, NJ
Princeton, NJ
Secaucus, NJ
Teaneck, NJ
Whippany, NJ
Albuquerque, NM
Bernalillo, NM
Henderson, NV
Incline Village, NV
Buffalo, NY
Fishkill, NY
Hewlett, NY
New York, NY
Rochester, NY
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dublin, OH
Mason, OH
Oklahoma City, OK
Cranberry Township, PA
East Norriton, PA
King Of Prussia, PA
Pittsburgh, PA
Newport, RI
Brentwood, TN
Hendersonville, TN
Memphis, TN
Nashville, TN
Austin, TX
Dallas, TX
El Paso, TX
Garland, TX
Houston, TX
San Antonio, TX
Sugar Land, TX
The Woodlands, TX
Salt Lake City, UT
Sandy, UT
Arlington, VA
Chantilly, VA
Chester, VA
Fairfax, VA
Herndon, VA
Reston, VA
Richmond, VA
Roanoke, VA
Sterling, VA
Tysons Corner, VA
Bellevue, WA
Bothell, WA
Mount Vernon, WA
Seattle, WA
Green Bay, WI
Madison, WI
Bengaluru, India
Gurgaon, India
Kolkata, India
Mumbai, India
New Delhi, India
Calgary, Canada
Toronto, Canada
Vancouver, Canada