Good day, ladies and gentlemen. Welcome to the First Quarter 2017 Hyatt Hotels Corporation Earnings Conference Call. My name is Dan, and I'll be your operator for today. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Mr. Brian Karaba, Treasurer and Senior Vice President, Investor Relations and Corporate Finance. Please proceed.

Thank you, Dan. Good morning, everyone, and thank you for joining us for Hyatt's first quarter 2017 earnings conference call. I am here in Chicago today with Mark Hoplamazian, Hyatt's President and Chief Executive Officer; Pat Grismer, Hyatt's Chief Financial Officer; and Amanda Bryant, Hyatt's Director of Investor Relations. Mark will begin our call today with a review of our first quarter, including highlights of our operating results and our commitment to create shareholder value. Mark will then turn the call over to Pat, who will provide more specific details of our financial results for the quarter, including underlying business trends and regional performance. Pat will also provide an update on our outlook for 2017, and we will then take your questions. Before we get started, I would like to remind everyone that certain statements made on this call are not historical facts and are considered forward-looking statements. These statements are subject to numerous risks and uncertainties, as described in our annual report on Form 10-K and other SEC filings, which could cause our actual results to differ materially from those expressed in or implied by our comments. Forward-looking statements in the earnings release that we issued earlier this morning, along with the comments on this call are made only as of today, May 4, 2017, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find a reconciliation of non-GAAP financial measures referred to in our remarks on our website at hyatt.com under the Press Release section of our Investor Relations link and in this morning's earnings release. An archive of this call will be available on our website for 90 days per the information included in this morning's release. With that, I'll turn the call over to Mark.

Thanks, Brian. Good morning everyone and welcome to Hyatt's first quarter 2017 earnings call. We are pleased to report a strong start to the year with respect to both top line and bottom line results, as we continue to execute our strategy to create long-term value for shareholders. In addition to strong operational performance, we delivered on our capital strategy during the quarter as we entered into a $300 million accelerated share repurchase program in connection with the $290 million redemption of our preferred investment in Playa. In addition, with today's announcement of our Board's approval of an additional $500 million repurchase authorization, we are demonstrating our continued commitment to returning cash to shareholders. I will further address our capital strategy later in my remarks. But first, I'll turn to our strong operational performance during Q1. Our adjusted EBITDA for the quarter was $228 million, up 19% from Q1 last year, after adjusting for foreign currency translation. Our growth in the quarter was fueled by the performance of our recent hotel openings and acquisitions, as well as strong increases in management and franchise fees. Our system-wide comparable constant dollar RevPAR increased 4.7% driven by both occupancy and rate gains. Our RevPAR strength was broad based. Our full service hotels in the Americas and Asia Pacific both enjoyed RevPAR increases of approximately 5%. Our Americas select service hotels increased RevPAR by about 4%. And our Europe, Africa, Middle East and Southwest Asia full service hotels increased RevPAR by approximately 3%. Our owned and leased hotel results were lower than system-wide average, but nonetheless delivered RevPAR growth of 2.7% during the quarter. Notably, on our owned and leased results, if you exclude the performance of one owned hotel, which had a particularly tough year-over-year comparison, our owned and leased hotel portfolio grew…

Thank you, Mark, and good morning, everyone. I will begin by providing more detail on our first quarter results, and will then share an update on how we're thinking about the balance of 2017. Earlier today, we reported first quarter net income of $70 million and earnings per share of $0.54 on a diluted basis. Adjusted EBITDA for the quarter was $228 million, up about 18% to prior year on a reported basis and up about 19% on a constant currency basis. Comparable system-wide RevPAR increased 4.7% in constant dollars in the quarter, driven by a 1.8% increase in ADR and a 200 basis point increase in occupancy. As expected, Q1 benefited from the timing of Easter, which provided a higher than expected 90 basis point lift to comparable system-wide RevPAR for the quarter. I'll now highlight the key drivers of our performance starting with our owned and leased segment, which accounted for approximately 56% of our adjusted EBITDA before corporate and other expenses in Q1. This segment delivered nearly 12% revenue growth and 10% EBITDA growth both on a constant dollar basis. RevPAR at comparable owned and leased hotels grew a respectable 2.7% in constant dollars for the quarter, and as Mark noted, grew 4% excluding the results of one hotel that had a particularly difficult quarter compared with the first quarter of 2016. Occupancy increased 80 basis points and average daily rate increased 1.6%. RevPAR at our owned and leased hotels in the U.S. grew 3.5% while RevPAR at our non-U.S. owned and leased hotels was flat. Among markets where we own and lease hotels, Orlando and San Antonio enjoyed a strong first quarter, whereas Austin and New York were softer. Internationally, Hyatt Regency Mexico City continued to perform very well, but Park Hyatt Zürich saw a significant…

Our first question today comes from the line of Shaun Kelley with Bank of America Merrill Lynch. Please go ahead.

Hi, guys. Good morning and thanks for all the detail on some of the capital recycling initiatives. I just wanted to spend a little bit more time there and get a little bit of clarity probably on kind of on that last set of remarks in Pat's section. Specifically, could you just give us a little thought on this rejiggering of expenses related to some of the corporate development? To be clear like, what exactly were you contemplating spending and what is corporate development? Is that just on balance sheet, construction of new hotels or was there – is there some other corporate initiatives that you're looking at? And then, I guess, the follow-up to that would just be, how much of this is, how much of the CapEx shift is sort of just timing moving into 2017 or moving into 2018 versus how much of it is really being moved to third parties?

Yes, corporate development is in fact development of new hotel properties, where Hyatt has an ownership interest whether full or partial interest. And so, we've been very much focused in the context of our asset recycling of, finding – focused on finding opportunities to bring in joint venture partners or to identify investors, who can come in and take our place in some of those projects. So we're delighted that we've made some good progress in signing up some investors to invest alongside us in those corporate development opportunities and that is leading most of that reduction in our CapEx outlook for the year. There is however, as you mentioned, and as I remarked in my script earlier that some of the timing is shifting into 2018, but this forms part of our overall long-term asset recycling effort, so we do incorporate corporate development into what we're doing by way of acquisitions and dispositions.

And I mean, just as a follow-up like the -- it feels like, this maybe a little bit of a strategy change, I mean historically, it's always felt like, Hyatt has been sort of less willing to kind of fully make the push into capital light. I don't want to read too much into, the tone and the commentary here, is this more just cyclical, this is the right thing to do right now, in terms of capital deployment or is there little bit more of an acknowledgment that given your cost of capital, this might actually be a longer term shift that we could look forward to?

Well, Shaun, it's Mark. What I would say is, we've always been committed whether you're looking at acquisitions that we made or corporate development historically, we've always been committed to organizing and structuring those investments, so that we can actually sell those assets. And as I reflect back on the last few years, we – I'll give you a few examples. We have engaged in new development activity, where we bought a site or auctioned a site and got entitlements and then sold the whole project to a third-party developer in total, and therefore didn't really deploy any capital, we've done that a couple of times with existing partners. We have both sourced new projects and also had new projects brought to us, wherein we ended up in a joint venture with a third-party developer, and in some cases we've actually gone and secured a site and built the hotel. One example was, we built a Hyatt Place in Omaha, which we then sold once we've opened it. So, I guess what I would tell you is, we recognize that from an activity based perspective, maintaining any material construction activity on balance sheet is not particularly desirable because these projects are inheritably local development activities, in some cases they – it's been extremely useful to be in the market to be able to secure great locations for particular brand representation that we're trying to drive, but in all cases, we are looking to increase the velocity of turning that capital over. So, I think, it's consistent with how we've been behaving. I think, what you're seeing is an increased level of activity in engaging with third-party developers to make sure that we are keeping pace on offloading those kinds of commitments.

And Shaun, this is Pat. Once again I would also reinforce just to clarify that when we talk about asset recycling, it is all encompassing. So, it's not simply traditional hotel acquisitions and dispositions, but it does take into account investments we're making by way of corporate development, equally opportunities we're seeking to bring in investors alongside us in those projects, equally liquidation of joint venture interest as was the case with Playa and equally investments we're making as with Miraval. So we step back and look at our total asset position and our goal is to recycle our asset base, encompassing all of those different aspects of capital deployment and capital raising.

Thank you very much.

And your next question comes from the line of Thomas Allen with Morgan Stanley. Please go ahead. Thomas G. Allen - Morgan Stanley & Co. LLC: Hey. So, your U.S. full service RevPAR growth outperformed select service for the first time in a year-and-a-half. Obviously, there was a Easter shift this quarter, but excluding that, are we seeing a change in trend there? Thank you.

Well, I guess, you could look at STR results to answer that question. I think that there is – there has been strength that you saw in this past quarter in the full service segments relative to growth in the select segment. I think part of that is calendar. But I think the best way to answer the question is just to look at the market overall.

Thomas, this is Pat. I would also highlight that you have to consider what we're lapping from last year. So, in Q1 of 2016, Hyatt full service U.S. up RevPAR of 1.7% select service up 6.5%. So in select service we're also lapping a much higher comp. Thomas G. Allen - Morgan Stanley & Co. LLC: Okay. That's helpful. And then just digging a little deeper into the group versus transient trend in the quarter where the group is in up 10% and transient was down 1%, was that all mix – by your – you driving mix shift or was transient – would the transient come in line with your expectations is really the question?

Yeah. So, thanks. I think it'd be useful to juts take a moment to step back from the quarter and think about group and transient in combination with one another, because one of the key issues is, what's going on with the corporate customers, whether that's group or transient, and what's happening on the leisure side. So, let me just start with group, and then I'll talk a little bit about transient. Overall, obviously a very strong quarter, and the total realized revenue was really solid pretty much across the board. When we look at segments, we had particular strength in banking and finance and consulting, and even to a certain extent in retail for the first time in a long time. On the weaker side were tech and pharma customers, especially pharma. So just in terms of a little color on what's going on with respect to underlying industry demand. The other dynamic that I think is really important to note is the differences between corporate demand and association demand on the group side. Association was solid across the board, both occupancy and rate. Rates for both corporate and association customers was up over 5% in the quarter, which is very encouraging. But in terms of room night demand, it was stronger on the association side. If you look at the overall position that we find ourselves in right now, a bit over 85% of our targeted group business for the year in 2017 was on the books at the end of the first quarter. And our expectation for group revenue increase over the course of the year remains in the low single-digit range. But a lot of what we're focused on therefore is that last 15%. And as we think about how to start to gauge the potential…

Sure.

Your next question comes from the line of Joe Greff with JPMorgan. Please go ahead.

Good morning, guys. Just following up on this topic of group. Would you expect your group revenues to be up year-over-year in the second half?

I think the profile is that the second quarter and third quarter will probably be more challenging. I think, the second quarter of course has got a calendar shift in it. The third quarter is probably the place where we have the biggest opportunity with respect to remaining bookings for the year. So those two quarters I think are going to be under some pressure as a result of calendar in the second quarter and open to book in the third quarter.

Okay. So if you look at 3Q and 4Q together this year versus last year on the group side, would you expect that to be up or no?

I think some of that depends on the pickup in the third quarter. So, if you strictly went on forward bookings at this point, probably not, but I think that is the opportunity we see ahead. And so, based on the report from a number of different fronts, there's a lot of activity underway and a bit early for us to make a definitive call.

Great. And then when you guys look at your 1Q results, I'm presuming you beat maybe your initial expectations relative to where you were earlier in the year; you certainly exceeded sell-side consensus expectations. When you look back, where did you surprise, if you did surprise yourself with the final outcome in the 1Q? Then, I have couple of small follow-ups.

Well, I guess maybe I'll answer in terms of what we think is going on in terms of overall results over time, that I think also did apply in the first quarter, and that is, we have really been running the business through a very intense focus, focusing on the high-end customer base, the high value customers, focusing on the guest experience and the practice of empathy in bringing care into the guest experience. Operational excellence is another area of focus, we own hotels that we are hyper-focused on margin performance and driving results there. And finally, I think, when you look at the growth, we are not growing in sort of a scattered, broad way in every imaginable market. We're actually growing in very – in a very deliberate way in key markets, where we can bring brands that are really working. So one of the dynamics that we've seen, for example is that the ramp up time for newly opened hotels, especially the select hotels that are opening in urban markets in the United States has accelerated. So that dynamic is a proof point for the performance of the brand. So, I think, overall, our relative performance was really a great outcome that we were particularly pleased with, and was probably just stronger because of the dynamics that we've seen over a number of quarters continuing to maintain that position for us in the first quarter.

And Joe, what I would add to Mark's comments is that, as I mentioned earlier in my prepared remarks, the lift that we gained from the Easter timing and how that drove group business in Q1 was stronger than we were anticipating and we do expect that will reverse in Q2. So to be very clear, by maintaining our guidance, we are not implying a guide down balance of year. Also as I mentioned earlier, relative to where we were at and what we knew at the time of our call in February, we are expecting to be towards the higher end of that range. But out of conservatism, given where we're out of the year, we don't feel that it's prudent to take up the range at this time.

Totally get that and you're probably not the only management team in that boat. And my two final questions, Mark or Pat, I think, you talked about the potential for these six other asset sales happening towards the end of the year. Can you remind us what the trailing 12 months EBITDA was for those six hotels, and the actual number of keys associated with those six hotels? And then, another helpful thing Pat is, if you could give us the diluted share count, the absolute diluted share count at the end of the quarter? Thank you.

On the first one, we actually didn't talk about trailing results or the composition of the room count and so forth. What we have done in the past and what we will do is, once we have closed transactions, we'll provide a – an impact, an EBITDA impact from the dispositions. Of course, a lot of that has to do with when in the year we actually end up closing transactions. So our practice has been and will be that we update in the quarter call in which we have a closed transaction.

And, Joe, actually as to the...

Yeah. And would you expect the multiple from the sale of those six in the aggregate to be in excess of your current trading multiple, just another way of asking it, without going into too much detail, Mark?

We're really not going to go into any detail until we have closed transactions.

And Joe, as to your questions regarding share counts, as of the end of Q1, basic share count was 129.7 million, diluted share count 131.0 million.

Thank you.

Your next question come from the line of Carlo Santarelli with Deutsche Bank. Please go ahead.

Hey, guys. Thanks. This wasn't my question, but just to clarify. I think Joe had asked for the end of period count. I want to say you guys maybe gave the average.

I think, we'll need to get back to you on that, Carlo.

Okay. No problem. Just – I just wanted to clarify something as it pertained to the guidance as it stands today. You guys are not contemplating any of these sales in the guidance. So I think I heard you say it correctly before, right?

I'm sorry, can you repeat that, Carlo?

Yeah. I said, I mentioned that you guys earlier had mentioned the EBITDA or your guidance today does not contemplate any of these second half sales that you noted, correct?

Yeah. Correct.

Okay. Given the Easter shift and obviously the 90 basis point impact that you referred to. I would imagine if you look back historically or you obviously would know that your second quarter has traditionally been stronger than your first quarter from a fee generation just on a dollar basis. Do you expect that the seasonality this year because of the Easter shift would change materially, whereas your 1Q would actually be stronger from an overall fee perspective?

Probably difficult to call that at this point. The calendar shift obviously is material, so it will have a depressive effect on the second quarter. I think, it's hard to know in sequence whether what the profile is going to look like. So, I guess stay tuned and we'll cover that in the next quarter.

Okay. Appreciate it.

Your next question comes from the line of Stephen Grambling with Goldman Sachs. Please go ahead. Stephen Grambling - Goldman Sachs & Co.: Hey, thanks. You described an environment of compression in group booking and corporate spend, as you look back historically, does this remind you of any other periods? And in your conversations with corporate partners, is there any consistent reason offered as to why there is still is this reservations that could be alleviated as the year progresses?

Yeah, it's a little hard to call, Stephen. I think one of the observation – first of all, to answer your first question, I – no, it's not – there's no other period that immediately comes to mind. I think, the thing that we see in the – on the transient business travel side is, we actually have seen very – well, since the fourth quarter consistent strength in national volume account. So, these are large corporations that we have arrangements – travel arrangements with – through corporate travel – through managed corporate travel in the companies. That's been the core of the strength. To the extent, there has been any weakness it's been in logo business travel. And so, as I think about the relationship between what we're seeing on the corporate group side, which is – had its ups and downs and some conflicting data depending on what period you want to look at. And I see what's happening on the transient side, it leads me to think that at least in the case of the larger corporates that we serve, that there is this reservation of spend. It's – the demand is ultimately there, so we're seeing it come through, but maybe a more cautious approach to making forward commitments even as little as a quarter out or two quarters out. So that's what I'm surmising we're seeing here. I think, we'll have to – we'll have to track this which we are – we're on top of this topic. As you could imagine, it's a really important topic for us. So we're on top of it very – in a very detailed way, that's really what we're going to be paying attention to, as we see the second quarter unfold, as well as bookings into the third quarter. So that's – those are the things we're tracking. Stephen Grambling - Goldman Sachs & Co.: Thank. And Pat, you mentioned the restrictions on the repurchase, and in the release, I think I saw that you can repurchase Class A or Class B shares. Can you purchase the Class B shares directly before the ASRs, but those have to be converted and therefore you're limited.

No, we can purchase those directly. Stephen Grambling - Goldman Sachs & Co.: Maybe one last one just circling back to Shaun's question on capital deployment, on new projects. Are developers simply looking for less contract acquisition cost as your scale builds, and is that something that we could expect going forward?

I'm pretty sure I don't understand the question you just asked. When you say contract acquisition build, what does that mean? Stephen Grambling - Goldman Sachs & Co.: Contract acquisition cost. So if you're actually deploying an incremental capital to building these new properties, you mentioned the joint ventures and basically scaling down your CapEx requirements, is that something that's happening, because your brand is strengthened or your gaining incremental scale?

Okay. Got it. So, thanks for that. Look, I think what's happening is we demonstrated really solid returns on a number of the JVs that we have entered into, and we've sourced some very attractive sites. And so, there is one market in particular, where we just by way of example, where we secured a site for Hyatt House development in a very attractive location and a very attractive market, and a partner with whom we've already done two developments and with whom we're in discussions on more developments came to us and said, that they wanted, they would like to actually participate in this and take over the actual development and construction which we were thrilled to do, and so we entered into a JV and ultimately upon completion of the hotel we'll likely sell the hotel. And so, I think that what's happening is that, we're seeing developers with whom we've worked in the past, see that we have high-quality sites and projects underway, and that's very desirable for them. It allows us to recover capital that we might have deploy to acquire a site or something, and end up with a long-term management or franchise agreement without key money or any other inducements, so it's actually a pretty efficient way for us to be growing and securing long-term management agreements. Stephen Grambling - Goldman Sachs & Co.: That's helpful.

This is Pat, just one final comment, and this will have to be the last question, because we've exceeded the time allotted for the call, but going back to the question, Joe Greff had raised around actually share count at the end of the period per our proxy filed as of April 6, there were 125.5 million shares outstanding. That is not a diluted number, that is a basic share count.

Thank you everyone for joining us today, and we look forward to talking to you soon. Good bye.

Thank you to everyone for attending. This will conclude today's conference call. You may now disconnect.