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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM is our President and Chief Executive Officer. We define our operating and reportable segments as follows: •Management and franchising—This segment derives its earnings primarily from the provision of management, franchising, and hotel services, or the licensing of our intellectual property to, (i) our property portfolio, (ii) our co-branded credit card programs, and (iii) other hospitality-related businesses, including the Unlimited Vacation Club following the UVC Transaction. Intersegment revenues relate to management fees earned from our owned and leased hotels and commission fees earned from certain ALG Vacations bookings, both of which are eliminated in consolidation. Additionally, we recognize revenues for reimbursed costs in this segment primarily related to payroll at managed properties where we are the employer, as well as costs associated with system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. •Owned and leased—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations, and for purposes of segment Adjusted EBITDA, includes our pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA, primarily based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany management fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs and are eliminated in consolidation. •Distribution—This segment derives its earnings from distribution and destination management services offered through ALG Vacations and the boutique and luxury global travel platform offered through Mr & Mrs Smith. Prior to the UVC Transaction, this segment also included earnings from a paid membership program offering benefits exclusively at certain all-inclusive resorts primarily in Latin America and the Caribbean. Adjusted EBITDA includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Within overhead, we include unallocated corporate expenses. During the year ended December 31, 2024, we revised our definition of Adjusted EBITDA to exclude transaction and integration costs (see Note 1), and we recast prior-period results to provide comparability. The revised definition excludes integration costs, which were recognized in integration costs during the three months ended March 31, 2024 and transaction costs, which were recognized in general and administrative expenses during the three months ended March 31, 2024. Previously, only transaction costs recognized in gains on sales of real estate and other and other income (loss), net were excluded from Adjusted EBITDA. As transaction and integration costs may vary in frequency or magnitude, we believe the revised definition presents a more representative measure of our core operations, assists in the comparability of results, and provides information consistent with how our management evaluates operating performance. Our CODM evaluates performance based on segment revenues and Adjusted EBITDA. Our CODM uses these measures to evaluate trends and assess segment operating performance as compared to our prior-period and forecasted results as well as our industry and competitors in order to determine how to allocate resources to each segment. Significant segment expenses include Adjusted general and administrative expenses, owned and leased expenses, and distribution expenses. Our CODM does not evaluate our operating segments using discrete asset information. We define Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus net income (loss) attributable to noncontrolling interests and our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA, primarily based on our ownership percentage of each owned and leased venture, adjusted to exclude amortization of management and hotel services agreement and franchise agreement assets ("key money assets") and performance cure payments, which constitute payments to customers ("Contra revenue"); revenues for reimbursed costs; stock-based compensation expense; transaction and integration costs; depreciation and amortization; reimbursed costs that we intend to recover over the long term; equity earnings (losses) from unconsolidated hospitality ventures; interest expense; gains (losses) on sales of real estate and other; asset impairments; other income (loss), net; and benefit (provision) for income taxes. Adjusted general and administrative expenses exclude the impact of deferred compensation plans funded through rabbi trusts and stock-based compensation expense. Adjusted general and administrative expenses assist us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis. The following tables present revenues disaggregated by the nature of the product or service and by segment and a reconciliation of segment revenues to segment Adjusted EBITDA:
| Three Months Ended March 31, 2025
| Management and franchising |  | Owned and leased |  | Distribution |  | Segment Total |  | Eliminations |  | Total
Base management fees | $ | 120 |  |  | $ | — |  |  | $ | — |  |  | $ | 120 |  |  | $ | (6) |  |  | $ | 114 |
Incentive management fees | 77 |  |  | — |  |  | — |  |  | 77 |  |  | (1) |  |  | 76 |
Franchise and other fees | 119 |  |  | — |  |  | — |  |  | 119 |  |  | (2) |  |  | 117 |
Gross fees | 316 |  |  | — |  |  | — |  |  | 316 |  |  | (9) |  |  | 307 |
Rooms and packages | — |  |  | 148 |  |  | — |  |  | 148 |  |  | (4) |  |  | 144 |
Food and beverage | — |  |  | 46 |  |  | — |  |  | 46 |  |  | — |  |  | 46 |
Other | — |  |  | 29 |  |  | — |  |  | 29 |  |  | — |  |  | 29 |
Owned and leased | — |  |  | 223 |  |  | — |  |  | 223 |  |  | (4) |  |  | 219 |
Distribution | — |  |  | — |  |  | 315 |  |  | 315 |  |  | — |  |  | 315 |
Other revenues | 11 |  |  | — |  |  | — |  |  | 11 |  |  | — |  |  | 11 |
Segment revenues | 327 |  |  | 223 |  |  | 315 |  |  | 865 |  |  | (13) |  |  | 852 |
Contra revenue | (20) |  |  | — |  |  | — |  |  | (20) |  |  | — |  |  | (20) |
Revenues for reimbursed costs | 886 |  |  | — |  |  | — |  |  | 886 |  |  | — |  |  | 886 |
Total revenues | $ | 1,193 |  |  | $ | 223 |  |  | $ | 315 |  |  | $ | 1,731 |  |  | $ | (13) |  |  | $ | 1,718 |
Intersegment revenues | $ | 9 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 13 |  |  |  |  |
| Three Months Ended March 31, 2025 |  |  |
| Management and franchising |  | Owned and leased |  | Distribution |  | Segment Total |  |  |
Segment revenues | $ | 327 |  |  | $ | 223 |  |  | $ | 315 |  |  | $ | 865 |  |  |  |
Significant segment expenses: |  |  |  |  |  |  |  |  |  |
Adjusted general and administrative expenses | (67) |  |  | (2) |  |  | — |  |  | (69) |  |  |  |
Owned and leased expenses (1) | — |  |  | (206) |  |  | — |  |  | (206) |  |  |  |
Distribution expenses (2) | — |  |  | — |  |  | (268) |  |  | (268) |  |  |  |
Other segment items: |  |  |  |  |  |  |  |  |  |
Other income (expenses) (3) | (24) |  |  | — |  |  | 2 |  |  | (22) |  |  |  |
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA | — |  |  | 12 |  |  | — |  |  | 12 |  |  |  |
Segment Adjusted EBITDA | $ | 236 |  |  | $ | 27 |  |  | $ | 49 |  |  | $ | 312 |  |  |  |
(1) Includes intercompany management fee expenses paid to our management and franchising segment and promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs, both of which are eliminated in consolidation. |  |  |
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation. |  |  |
(3) Management and franchising primarily includes direct costs associated with our co-branded credit card programs recognized in other direct costs. Distribution includes stock-based compensation expense recognized in distribution expenses. |  |  |
| Three Months Ended March 31, 2024
| Management and franchising |  | Owned and leased |  | Distribution |  | Segment Total |  | Eliminations |  | Total
Base management fees | $ | 107 |  |  | $ | — |  |  | $ | — |  |  | $ | 107 |  |  | $ | (9) |  |  | $ | 98 |
Incentive management fees | 68 |  |  | — |  |  | — |  |  | 68 |  |  | (4) |  |  | 64 |
Franchise and other fees | 102 |  |  | — |  |  | — |  |  | 102 |  |  | (2) |  |  | 100 |
Gross fees | 277 |  |  | — |  |  | — |  |  | 277 |  |  | (15) |  |  | 262 |
Rooms and packages | — |  |  | 194 |  |  | — |  |  | 194 |  |  | (7) |  |  | 187 |
Food and beverage | — |  |  | 83 |  |  | — |  |  | 83 |  |  | — |  |  | 83 |
Other | — |  |  | 39 |  |  | — |  |  | 39 |  |  | — |  |  | 39 |
Owned and leased | — |  |  | 316 |  |  | — |  |  | 316 |  |  | (7) |  |  | 309 |
Distribution | — |  |  | — |  |  | 319 |  |  | 319 |  |  | — |  |  | 319 |
Other revenues | 9 |  |  | — |  |  | 26 |  |  | 35 |  |  | — |  |  | 35 |
Segment revenues | 286 |  |  | 316 |  |  | 345 |  |  | 947 |  |  | (22) |  |  | 925 |
Contra revenue | (13) |  |  | — |  |  | — |  |  | (13) |  |  | — |  |  | (13) |
Revenues for reimbursed costs | 802 |  |  | — |  |  | — |  |  | 802 |  |  | — |  |  | 802 |
Total revenues | $ | 1,075 |  |  | $ | 316 |  |  | $ | 345 |  |  | $ | 1,736 |  |  | $ | (22) |  |  | $ | 1,714 |
Intersegment revenues | $ | 15 |  |  | $ | 7 |  |  | $ | — |  |  | $ | 22 |  |  |  |  |
| Three Months Ended March 31, 2024
| Management and franchising |  | Owned and leased |  | Distribution |  | Segment Total
Segment revenues | $ | 286 |  |  | $ | 316 |  |  | $ | 345 |  |  | $ | 947 |
Significant segment expenses: |  |  |  |  |  |  |
Adjusted general and administrative expenses | (63) |  |  | (3) |  |  | (6) |  |  | (72) |
Owned and leased expenses (1) | — |  |  | (270) |  |  | — |  |  | (270) |
Distribution expenses (2) | — |  |  | — |  |  | (276) |  |  | (276) |
Other segment items: |  |  |  |  |  |  |
Other income (expenses) (3) | (20) |  |  | 2 |  |  | (24) |  |  | (42) |
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA | — |  |  | 17 |  |  | — |  |  | 17 |
Segment Adjusted EBITDA | $ | 203 |  |  | $ | 62 |  |  | $ | 39 |  |  | $ | 304 |
(1) Includes intercompany management fee expenses paid to our management and franchising segment and promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs, both of which are eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
(3) Management and franchising primarily includes direct costs associated with our co-branded credit card programs recognized in other direct costs. Owned and leased includes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts. Distribution includes stock-based compensation expense recognized in distribution expenses and the paid membership program prior to the UVC Transaction recognized in other direct costs.
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Segment Adjusted EBITDA | $ | 312 |  |  | $ | 304 |  |  |  |  |
Unallocated overhead expenses | (40) |  |  | (46) |  |  |  |  |
Eliminations | 1 |  |  | 1 |  |  |  |  |
Contra revenue | (20) |  |  | (13) |  |  |  |  |
Revenues for reimbursed costs | 886 |  |  | 802 |  |  |  |  |
Reimbursed costs | (902) |  |  | (836) |  |  |  |  |
Stock-based compensation expense (Note 14) (1) | (31) |  |  | (31) |  |  |  |  |
Transaction and integration costs | (23) |  |  | (8) |  |  |  |  |
Depreciation and amortization | (80) |  |  | (92) |  |  |  |  |
Equity earnings (losses) from unconsolidated hospitality ventures | (12) |  |  | 75 |  |  |  |  |
Interest expense | (66) |  |  | (38) |  |  |  |  |
Gains on sales of real estate and other | — |  |  | 403 |  |  |  |  |
Asset impairments | (4) |  |  | (17) |  |  |  |  |
Other income (loss), net | 43 |  |  | 54 |  |  |  |  |
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA | (12) |  |  | (17) |  |  |  |  |
Income before income taxes | $ | 52 |  |  | $ | 541 |  |  |  |  |
(1) Includes amounts recognized in general and administrative expenses and distribution expenses.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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