Financial Analysis

"DEBT June 30, 2026 December 31, 2025 $600 million senior unsecured notes maturing in 20275.750% $ 600 $ 600 $400 million senior unsecured notes maturing in 20284.375% 399 399 $500 million senior unsecured notes maturing in 20285.050% 500 500 $600 million senior unsecured notes maturing in 20295.250% 600 600 $450 million senior unsecured notes maturing in 20305.750% 440 440 $450 million senior unsecured notes maturing in 20315.375% 450 450 $500 million senior unsecured notes maturing in 20325.750% 500 500 $350 million senior unsecured notes maturing in 20345.500% 350 350 $400 million senior unsecured notes maturing in 20355.400% 400 400 Variable rate term loan 50 51 Floating average rate loan 18 19 Total debt excluding finance lease obligations, unamortized discounts, and unamortized deferred financing fees 4,307 4,309 Finance lease obligations 3 3 Unamortized discounts and unamortized deferred financing fees (29) (34) Total debt 4,281 4,278 Less: current maturities of long-term debt (605) (6) Total long-term debt $ 3,676 $ 4,272 Senior Notes Issuances During the six months ended June 30, 2025, we issued $500 million of 5.050% senior notes due 2028 at an issue price of 99.905% (the ""2028 Notes"") and $500 million of 5.750% senior notes due 2032 at an issue price of 99.936% (the ""2032 Notes""). We received $990 million of net proceeds, after deducting $10 million of underwriting discounts and other offering expenses. We used the net proceeds to fund a portion of the purchase …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"STOCK-BASED COMPENSATION As part of our Long-Term Incentive Plan (as amended from time to time, ""LTIP""), we award time-vested stock appreciation rights (""SARs""), RSUs, and performance-vested restricted stock units (""PSUs"") to certain employees and non-employee directors. In addition, non-employee directors may elect to receive their annual fees and/or annual equity retainers in the form of shares of our Class A common stock. The Assumed Awards (see Note 7) continue to be governed by the terms of the Playa Hotels Plan. Compensation expense and unearned compensation presented below exclude amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as these expenses have been, and will continue to be, reimbursed by our third-party owners and are recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income (loss). Stock-based compensation expense recognized in general and administrative expenses, owned and leased expenses, distribution expenses, and transaction and integration costs on our condensed consolidated statements of income (loss) related to our awards was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 SARs $ 1 $ $ 7 $ 13 RSUs 9 9 26 26 PSUs 7 6 12 7 Total $ 17 $ 15 $ 45 $ 46 SARs During the six months ended June 30, 2026, we granted 152,377 SARs to employees with a weighted-average grant date fair value of $65.14. During the six m …

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INTANGIBLES, NET June 30, 2026 Weighted-average useful lives in years Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles 21 $ 1,489 $ (396) $ 1,093 Brand and other indefinite-lived intangibles 806 806 Customer relationships intangibles 11 355 (148) 207 Other intangibles 9 28 (13) 15 Total $ 2,678 $ (557) $ 2,121 December 31, 2025 Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles $ 1,545 $ (367) $ 1,178 Brand and other indefinite-lived intangibles 809 809 Customer relationships intangibles 354 (129) 225 Other intangibles 29 (12) 17 Total $ 2,737 $ (508) $ 2,229 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amortization expense $ 33 $ 37 $ 66 $ 73 The following table summarizes impairment charges recognized in asset impairments on our condensed consolidated statements of income (loss), which were primarily as a result of contract terminations within our management and franchising segment: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Management and hotel services agreement and franchise agreement intangibles $ 5 $ 2 $ 26 $ 6 …

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"TAXES Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Provision for income taxes $ 73 $ 42 $ 89 $ 70 Provision for income taxes increased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily due to increased pre-tax income. We are subject to audits by federal, state, and foreign tax authorities. U.S. tax years 2021 through 2023 are currently under field exam. U.S. tax years 2009 through 2011 have been subject to a U.S. Tax Court case concerning the tax treatment of the loyalty program in which the Internal Revenue Service (""IRS"") is asserting that loyalty program contributions are taxable income to the Company. The litigation remains ongoing before the U.S. Court of Appeals for the Seventh Circuit, as discussed below. U.S. tax years 2012 through 2020 are open pending the outcome of the proceedings for U.S. years 2009 through 2011. The Tax Court issued an opinion on October 2, 2023 related to the loyalty program case and determined that the Company must recognize approximately $12 million in net taxable income for the tax years 2009 through 2011, but that the Company need not recognize approximately $228 million in net taxable income related to tax years that preceded 2009. The Tax Court entered its decision on September 13, 2024. The Company filed a Notice of Appeal to the U.S. Court of Appeals for the Seventh Circuit on December 9, 2024 to challenge the Tax Court's rulings that w …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Future Adoption of Accounting Standards Disclosure Improvements In October 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update No. 2023-06 (""ASU 2023-06""), Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative . ASU 2023-06 modifies the disclosure and presentation requirements for certain FASB Accounting Standards Codification topics to align with Securities and Exchange Commission (""SEC"") regulations. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from its regulations becomes effective, if the SEC removes the disclosure by June 30, 2027. The provisions of ASU 2023-06 are to be applied prospectively, with early adoption prohibited. We do not expect the adoption of ASU 2023-06 to have a material impact on our condensed consolidated financial statements and accompanying Notes. Expense Disaggregation Disclosures In November 2024, the FASB issued Accounting Standards Update No. 2024-03 (""ASU 2024-03""), Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosure of disaggregated information about certain costs and expenses presented on the consolidated statements of income (loss), including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The pr …

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"RELATED-PARTY TRANSACTIONS Related-party transactions entered into by us are summarized as follows: Equity Method Investments We have certain investments in unconsolidated hospitality ventures accounted for under the equity method, with ownership interests ranging from 20% to 50%. These entities own, operate, manage, or franchise properties or other hospitality-related businesses, through which we earn management, franchise, license, or royalty fees. We may also provide loans or guarantees to these entities (see Note 4, Note 6, and Note 13) and recognize related income. The following tables summarize amounts recorded on our condensed consolidated financial statements related to these investments: June 30, 2026 December 31, 2025 Receivables, net $ 44 $ 44 Financing receivables, net 124 124 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Base management fees $ 4 $ 4 $ 8 $ 8 Incentive management fees 2 2 5 5 Franchise and other fees 18 18 37 35 Other income (loss), net (1) 2 1 3 (1) Includes income recognized related to loans and guarantees. In addition to the above fees, we provide services related to sales and revenue management, marketing, global care centers (including reservation and customer support), digital and technology, and digital media (collectively, ""system-wide services"") on behalf of owners of managed and franchised properties and administer the loyalty program for the benefit of Hyatt's portfolio of properties. These expenses have be …

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REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues See Note 17 for our revenues disaggregated by the nature of the product or service. Contract Balances At June 30, 2026 and December 31, 2025, we had a $10 million and $14 million, respectively, contingent consideration receivable recorded as a contract asset in other assets on our condensed consolidated balance sheets related to the Tortuga sale, as defined in Note 7. We estimate contingent consideration on a recurring basis using the expected value method. During the three and six months ended June 30, 2026, we recognized a $4 million loss in gains (losses) on sales of real estate and other due to a change in estimate. Contract liabilities were comprised of the following: June 30, 2026 December 31, 2025 Deferred revenue related to the loyalty program $ 1,798 $ 1,604 Deferred revenue related to distribution and destination management services 464 643 Advanced deposits 72 59 Initial application fees from franchisees 51 50 Deferred revenue related to insurance programs 49 102 Other deferred revenue 138 138 Total $ 2,572 $ 2,596 Revenue recognized during both the three months ended June 30, 2026 and June 30, 2025 included in the contract liabilities balance at the beginning of each year was $260 million. Revenue recognized during the six months ended June 30, 2026 and June 30, 2025 included in the contract liabilities balance at the beginning of each year was $897 million and $921 million , respectively . This revenue …

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"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 Chairman, 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 portfolio of properties, (ii) our co-branded credit card programs, and (iii) other hospitality-related businesses. Intersegment revenues relate to management and franchise 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 Americas, but also in certain other international locations. Adjusted EBITDA includes intercompany management and franchise fee expenses …

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"EQUITY Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax impacts, were as follows: Foreign currency translation adjustments AFS debt securities unrealized fair value adjustments Derivative instruments adjustments Pension liabilities adjustments Total Balance at January 1, 2026 $ (136) $ 2 $ (16) $ 1 $ (149) Other comprehensive loss before reclassification (3) (4) (7) Amounts reclassified from accumulated other comprehensive loss (1) 1 1 Balance at March 31, 2026 $ (139) $ (2) $ (15) $ 1 $ (155) Other comprehensive loss before reclassification (8) (15) (23) Amounts reclassified from accumulated other comprehensive loss (1) 1 1 Balance at June 30, 2026 $ (147) $ (17) $ (14) $ 1 $ (177) (1) Includes realized losses recognized in interest expense on our condensed consolidated statements of income (loss) related to the settlement of interest rate locks. We expect to reclassify $5 million of losses, net of insignificant tax impacts, related to the interest rate locks over the next 12 months. Foreign currency translation adjustments AFS debt securities unrealized fair value adjustments Derivative instruments adjustments Pension liabilities adjustments Total Balance at January 1, 2025 $ (251) $ 2 $ (20) $ $ (269) Other comprehensive income (loss) before reclassification 48 (4) 44 Amounts reclassified from accumulated other comprehensive loss (2) 1 1 Balance at March 31, 2025 $ (203) $ (2) $ (19) $ $ (224) Other comprehensive inco …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing