Hyatt Hotels Corporation • 2009 Annual Report Hyatt 2009 Annual Report RRD2362cv.indd 1 4/7/10 1:00 PM Contents 02 Executive Chairman’s Letter to Stockholders 04 President and CEO’s Letter to Stockholders 08 Hyatt at a Glance 09 Selected Financial Data 10 Brand Portfolio 12 Leadership Directory 2009 Annual Report on Form 10-K Stockholder Information – Inside Back Cover RRD2362cv.indd 2 4/7/10 1:40 AM We are a global hospitality company with widely recognized leading brands and a tradition of innovation developed over our more than fi fty-year history. Our mission is to provide authentic hospitality by making a difference in the lives of the people we touch every day. We focus on this mission in pursuit of our goal of becoming the most preferred brand in each segment that we serve for our associates, guests, and owners. We pursue our mission and goal in an environment characterized by a set of core values that defi nes our culture. RRD2362.indd 1 4/1/10 6:07 PM Hyatt Hotels Corporation | Annual Report 2009 Executive Chairman’s Letter to Stockholders It is my pleasure to welcome you to Hyatt Hotels was our goal as we began a process several years ago to Corporation. We’ve been in the hospitality business transform Hyatt from a 20th century diversifi ed family- for more than 50 years and today we own, manage owned enterprise into a 21st century public company or franchise 424 properties in 45 countries. We have singularly focused on the hospitality business. Tailoring developed strong global brands and nurtured a special an enterprise for the opportunities and challenges environment characterized by a core set of values ahead meant much more than simple restructuring and that defi nes our culture. Our culture defi nes the regulatory compliance. We broadened our offerings environment in which our more than 80,000 associates to address additional segments of the hospitality around the world deliver authentic hospitality to our market, partnered with experienced investors with guests every day. proven success in building great public companies, and Throughout its history, Hyatt has been focused on enhanced our balance sheet to position us well for all creating long-term value for its owners. That certainly economic cycles. 02 RRD2362.indd 02 4/1/10 6:07 PM Thomas J. Pritzker Perhaps most important of all, we’ve brought together next chapter in our company’s history. We are delighted great people throughout our organization. Our general to have you as part of the Hyatt family and thank you managers, who are empowered to operate our hotel for your support. properties as their own businesses, have long tenure Sincerely, and provide informed leadership of our associates around the world. Our talented senior management team averages 27 years of experience and the members of our Board of Directors are an exceptional resource of experience, wisdom and leadership. Our people, distinctive brands, global footprint and Thomas J. Pritzker solid balance sheet position us well as we begin the Executive Chairman of the Board of Directors 03 RRD2362.indd 03 4/7/10 9:51 AM Hyatt Hotels Corporation | Annual Report 2009 President and CEO’s Letter to Stockholders For the Hyatt organization, 2009 was an eventful year rewards our associates through the shared core values during which we strengthened our foundation for the of mutual respect, intellectual honesty and integrity, future. Our initial public offering in November came humility, fun, creativity and innovation. These values at a time when economic conditions around the world support a common Mission to provide what we call began to shift from very challenged to somewhat more stable. The welcome we received from the public authentic hospitality – defi ned by making a difference markets reinforced the confi dence we have in our in the lives of the people we touch every day, including people, our premier brands and our global strategy. our associates, guests and owners. We refer to our more than 80,000 associates around the world as members of Exceptional People the Hyatt family. Delivering Authentic Hospitality When you assess what sets Hyatt apart, you have to Every member of the Hyatt family has a valued voice in start with our people. The Hyatt culture nurtures and what we do, and is critical to our success in delivering 04 RRD2362.indd 04 4/1/10 6:07 PM Mark S. Hoplamazian on the promises we make to our guests. Increasing Building on a Global engagement among our associates and including them Platform of Great Brands in deciding how we deliver great service to our guests is a key element of delivering on our Mission. I am proud Our goal is to provide the most preferred brands in the lodging segments we serve. Hyatt has developed a to say that this level of personal commitment extends portfolio of premier brands recognized and respected into the area of social responsibility. Our associates help in markets around the world. Our brand offerings range preserve the natural environment through Hyatt Earth, from select service to luxury and serve our guests’ a grass roots network of Green Teams across the world. business, leisure and meeting needs. They give back to their local communities through Hyatt Community, and improve lives through the Hyatt’s global footprint in key gateway cities in Asia, volunteer activities of Hyatt’s Family of Responsible Europe, North America and Latin America provides an and Caring Employees (F.O.R.C.E.). excellent platform from which we can grow. 05 RRD2362.indd 05 4/7/10 10:03 AM Hyatt Hotels Corporation | Annual Report 2009 High levels of brand recognition among travelers, combined reductions at the same time we achieved improvements with our operating expertise and development capabilities in satisfaction among our guests and among meeting across the globe, will help us expand our presence. planners that we serve. We are committed to enhancing the strength of our We continue to maintain the competitiveness of our brands over time by delivering the highest levels of owned portfolio through signifi cant reinvestment, service and achieving the highest level of satisfaction which will position us well to participate fully upon for hotel guests and meeting planners. In 2009 we a recovery in the lodging industry. At year-end 2009, realized improvements in satisfaction levels and also we owned or leased 102 hotels, including properties focused on demonstrating our loyalty to our most in North America, Europe and Asia. We appreciate the loyal guests. Through initiatives within our guest diversity of earnings streams and the operating leverage loyalty program, Gold Passport, we increased net that hotel ownership provides and, over time, expect membership by approximately 10% and we were able to generate strong returns from our owned hotels. to retain a higher proportion of revenues from our Additionally, hotel property ownership provides the Gold Passport guests. ancillary benefi ts of making us a better manager for third parties and giving us more direct control over the presentation of our brands in selected markets. Creating Long-Term Value Despite a Difficult 2009 In 2009, we grew our portfolio by adding 33 properties in a variety of locations including China, Qatar, Saudi Our passionate drive to achieve preference among our Arabia and a number of cities in the United States. associates, guests and hotel owners is what enables us During the year, eight properties were removed from to create long-term value. Our fi nancial performance the portfolio. In 2010, we expect to open more than in 2009 refl ected the signifi cant declines in worldwide 20 properties, including two Andaz hotels in New York business and leisure travel – one of the most challenging City (one of which is already open), a Grand Hyatt in times in our industry in decades. The good news is Goa, India and a Hyatt Regency in Curaçao. that demand, as measured by occupancy rates, began to stabilize toward the end of the year, and we remain Looking ahead, the majority of the new properties focused in 2010 on improving the results in our existing we are planning to open will be through managing hotels while expanding our presence around the world. for or franchising to third-party owners. This effort is supported by executed contracts for more than During 2009 we aggressively addressed expenses at our 120 hotels (this represents over 27,000 rooms) as of hotel properties as well as at our corporate offi ces as December 31, 2009, across all brands. Approximately we aligned resources to reduced business levels. We did 55 percent of these hotels (approximately 70 percent by this through reductions in force and tighter focus on room count) are full-service properties located outside discretionary expenses. We accomplished these expense the United States, and represent entry into 10 new 06 RRD2362.indd 06 4/7/10 2:39 AM countries and expansion into many markets and gateway As we enter 2010, we are clear about our priorities cities in which we are under-penetrated today. and goals to create long-term value. While there continues to be considerable uncertainty as to the Our growth is supported by the application of capital timing of economic recovery in markets around the and we have worked hard to build and maintain one of world, we have started to see year-over-year increases in occupancy in a number of markets. We’ve never been the strongest balance sheets in our industry. With strong more confi dent in the effectiveness of our associates, liquidity and no signifi cant debt maturities due through the strength of our culture, the power of our brands, 2012, we are in a very good position to invest capital and the solidity of our capital base – all to support the and recycle capital currently invested in existing owned achievement of our goal to be the most preferred brand hotel properties to pursue strategic acquisitions, invest in each segment that we serve.