Hyatt Hotels Corporation (NYSE:H) Q1 2024 Earnings Call Transcript

Patrick Scholes: Hi, good morning, everyone. Could you talk a little bit about expectations for the other fees within the revenues? I believe a significant portion of that is credit card fees. What are your expectations for the rest of the year and perhaps beyond for that? Thank you.

Joan Bottarini: Sure. Patrick. In the quarter, we had a significant increase in franchise and other fees combined, over 20% in the quarter. For the full year, we are giving guidance now on fees. As a reminder, our total fees guidance for the full year is up 15% at the midpoint. So we’re not going to give the specific components within other fees, but what I will tell you is that in the quarter, all of the different categories grew significantly within our non-RevPAR fees. We did get an increase from the UVC transaction, which boosted the percentage point on overall fees by a couple of points, but very, very strong results on our fee growth driven by strong RevPAR, our 5.5% RevPAR growth, which is very strong, mostly international markets and that package RevPAR. So across the board, our fee growth is really strong and the other fees we expect will continue to grow at a healthy pace as well.

Patrick Scholes: Okay. Just a follow-up on that. Is there – when is your next major credit card contract renegotiation coming up?

Joan Bottarini: Sure. We’re going to start having discussions later this year, into early next year on that – on the renewal of that contract.

Patrick Scholes: Thank you.

Joan Bottarini: You’re welcome.

Operator: Our last question today will come from Michael Bellisario from Baird. Please go ahead. Your line is open.

Michael Bellisario: Thanks. Good morning, everyone. Just a quick follow-up on the model. Just those three hotels that you’ve sold, could you quantify how much EBITDA that they contributed during your four-month ownership period? Trying to figure out the run rate earnings impact going forward.

Joan Bottarini: Yes. We have those, Michael, on the schedule in the earnings release. We’re going to continue on any asset sale transactions to report those on schedule. I think the number is a A8.

Adam Rohman: Michael. It’s on A8. And we can chat about that separately if you have additional questions.

Joan Bottarini: By quarter and the assets are listed there in the table. It actually includes the one post quarter. We actually put those into the table to help with modeling.

Michael Bellisario: Understood. Thank you.

Joan Bottarini: Sure.

Mark Hoplamazian: Thank you all for your time this morning. We appreciate your interest in Hyatt and look forward to extending our purpose of care by welcoming you to our hotels and resorts during your travels. We wish you a great rest of your day. Thanks so much for joining.

Operator: This concludes today’s conference call. Thank you for participating and have a wonderful day. You may all disconnect.