Good day, ladies and gentlemen, and welcome to the First Quarter 2016 Hyatt Hotels Corporation Earnings Conference Call. My name is Sharon and I'll be your operator for today. At this time all participants are in 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, Miss. Amanda Bryant, Director, Investor Relations. Please proceed.

Thank you, Sharon. Good day, everyone, and thank you for joining us for Hyatt's first quarter 2016 earnings call. Here with me in Chicago is Mark Hoplamazian, Hyatt's President and Chief Executive Officer; Pat Grismer, Hyatt's Chief Financial Officer; and Brian Karaba, Hyatt's Treasurer and Senior Vice President of Investor Relations and Corporate Finance. Mark is going to start by providing a high-level review of our results before covering a few key trends and drivers underlying our performance this quarter. Mark will also highlight how our performance is aligned with our long-term growth strategy. He will then turn it over to Pat to provide details on our financial performance during the quarter, and to provide an update on our full year outlook. Then we will take your questions. Before we get started, let me 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 early today, along with the comments on this call, are made only as of today, May 3, 2016, 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. And with that, I'll turn it over…

Thank you, Mark. I'm thrilled to have joined the Hyatt family, and excited to participate in my first quarterly earnings call with the company. With the support of Hyatt's world-class finance team, I'm learning the business rapidly, and I look forward to partnering with Mark and the leadership team at Hyatt to drive shareholder returns while sustaining high rates of growth. I'd also like to take this opportunity to introduce Brian Karaba, Hyatt's Treasurer and Senior Vice President of Investor Relations and Corporate Finance. Brian has two decades of lodging industry experience, and has been with Hyatt for the last eight years in positions of increasing responsibility. I'm delighted to have someone of Brian's caliber and experience partner with Amanda to lead Investor Relations, while maintaining responsibility for Treasury and Development Finance. Brian and I look forward to meeting you in the weeks ahead. Today, I'll review highlights of our first quarter performance and provide an update on our full-year outlook. As Mark mentioned earlier, we reported comparable constant-dollar system-wide RevPAR growth of 2.2% in the first quarter, and sustained strong momentum in new hotel development. This drove a 9% increase in adjusted EBITDA, excluding a $4 million impact from foreign exchange, and a $3 million impact from net transaction activity across the portfolio. As a reminder, this reflects our revised definition of adjusted EBITDA, which excludes stock-based compensation expense to be more consistent with the financial reporting practices of our peers. For 2016, we expect stock-based compensation expense to be approximately $30 million, which is unchanged from prior guidance. For modeling purposes, restated historical segment data can be found in our fact book, which will be posted on the Investor Relations section of our website later today. Our Owned and Leased Hotel segment, which includes our joint ventures, and…

Your first question comes from Shaun Kelley from Bank of America. Your line is open.

Hey. Good morning, everyone, and Pat, welcome to the quarterly calls. If I could, Pat, I actually wanted to dig into one of the comments you made in your remarks about the guarantee on some of these hotels, I believe that's related to a few different contracts in France. If you could just elaborate a little bit more on that, because I think there was a pretty substantial loss last year across those hotels as well and I think we all know some of the disruption that's happened in Paris this year, but is there any ability – given the size of the losses of those guarantees, is there any ability at all to get out of these contracts at any point? Mark S. Hoplamazian - President, Chief Executive Officer & Director: Shaun, it's Mark. Let me provide a little background because Pat's getting up to speed on the history on this and I've got the history of this, so let me just go through it. A couple of things are at hand here. The first is that France has been very weak. December, so there were terrorist attacks in November as everyone knows and in December we saw a mid-20%s kind of decline across our hotels in Paris. The first quarter was a bit better than that. If you look at France overall, it was down about 16% for the quarter, but there were significant impacts there because the largest hotel in France, our largest hotel in France is the Hyatt Regency Étoile and it's 950 rooms, and about 250 rooms were out of service in the first quarter for renovation and we'll have 500 rooms out of service in the second and third quarter for renovation and this is a renovation that we've been planning for some time,…

Thanks for all that clarity, Mark. And then just one very specific one, which would be where on the P&L does this run through? Or what line item does this run through? Mark S. Hoplamazian - President, Chief Executive Officer & Director: It's in income and expense below EBITDA.

Great. Thank you very much. Mark S. Hoplamazian - President, Chief Executive Officer & Director: Sure.

Your next question comes from Joseph Greff from JPMorgan. Your line is open.

Good morning, everybody. Mark S. Hoplamazian - President, Chief Executive Officer & Director: Hi, Joe.

Two quick questions. What was the EBITDA multiple page for the Thompson Miami? And then, Mark, obviously the buybacks slowed thus far in 2016 relative to what you've done more recently. Any particular reason for that? Mark S. Hoplamazian - President, Chief Executive Officer & Director: Sure. Thanks, Joe. Thompson, the way we are approaching the hotel is that we got some work underway already. We just closed, but we're preparing to get into the hotel. So the run rate earnings base was – I would describe it as lumpy over the past year by virtue of the fact that the hotel didn't really open until about 15 months ago or thereabouts. And it's relatively new in its operation and we will be in the property this year to convert some rooms to meeting space and to open some other meeting space that had been planned and constructed but not put into service. So there's going to be some disruption this year. So I think this year is going to be a start-up ramp up and repositioning year for the hotel. So as we look at what the prospects are for the property, it's a really high quality hotel in a great location with great facilities and as we apply both our group effort as well as Gold Passport, we expect to see significant ramping over the next couple of years. So I mentioned during my comments that we expect to get to a high-single digit EBITDA yield on the property once we get it stabilized, which we predict would be a few years from now. So that's kind of a progression that we see. In terms of the buybacks, they slowed a lot. It's also true that a year ago we carried a lot of cash, lot of liquidity into 2015 from 2014 by virtue of the significant dispositions that we had in the fourth quarter, especially the select service portfolio. So that's one key driver of that. And I think the second thing is, as we've often said, one of the benefits of having a share repurchase program is that you've got some variability in how you apply it a sense that if there are other opportunities that present themselves apply liquidity to growing the business, and we obviously did that by virtue of the Thompson deal. And as I said, things are active right now. They're much more active this year than they were last year. So we're paying a lot of attention to our liquidity profile relative to potential both acquisitions and dispositions.

Thanks.

Your next question comes from Bryan Maher from FBR Company. Your line is open. Bryan A. Maher - FBR Capital Markets & Co.: Yes, good morning. Quick question, you talked a little bit in your prepared comments about the transaction market being active and I think all of us who follow this space can see some of that activity, certainly. But can you tell us what you're seeing in the way of pricing? Who the buyers are showing up as? Are they sovereigns? Are they Asians? Are they private equity? And what kind of product and geography are they looking for most? Mark S. Hoplamazian - President, Chief Executive Officer & Director: Yes. I'd say it's evolved in the sense that there's been a lot of initiatives undertaken by either developers of properties or owners who are not necessarily long-term holders of hotels. And we've just seen more supply come on the market really driven by those kinds of owners. There was a brief wave I guess – I don't know if you'd call it a wave – a brief peak of activity earlier in the year, in the beginning, mid-part of the first quarter that was REIT driven. But what we're seeing now is more individual owner driven, private capital driven supply. In terms of the buy side, well, I'll come back to value in a second, but in terms of the buy side, REITs are not really active; at least, we don't see them active in the deals that we are pursuing. There are private parties, some foreign and some U.S. private equity that are active, and in some cases high-net-worth individual as well as family office-like buyers, both in the U.S. as well as non-U.S. I would say that there's sort of a ongoing demand that we…

Your next question comes from Bill Crow with Raymond James. Your line is open. Bill A. Crow - Raymond James & Associates, Inc.: Hey. Good morning, guys. Mark S. Hoplamazian - President, Chief Executive Officer & Director: Hey, Bill. Bill A. Crow - Raymond James & Associates, Inc.: Let me follow up with that on one specific question on the Park Hyatt, which is, is there a fear on your part that maybe the clock is ticking here on exits from ownership? And how do you feel about that property? Then I want to touch on San Francisco after you answer that. Mark S. Hoplamazian - President, Chief Executive Officer & Director: Okay. On the Park Hyatt New York, look the hotel has I think done a great job of coming into the market and establishing a presence in the market. As you many of you know, the market is very competitive, but we've been able to really establish a special position. So that's been great. New York has not had – we've not had the wind at our back the entire time, but the hotel continues to evolve and build its guest base and it's going well. In terms of timing, we always felt that this hotel, given the type of asset it is and given the building that it's in and the location that it's in that it would be one of those assets that endures from a value perspective through cycles and over time. So I would say I'm not particularly anxious at the moment because I think that it's one of those unique properties that I think will always garner a lot of attention and retain value no matter what the particular timing happened to be at a given moment in the cycle. So not really…

And, Bill, just to add to what Mark has said, when we look at our first quarter group production, specifically for the key business segments within group, what we see for corporate, high-tech and electronics is actually growth in the quarter. Bill A. Crow - Raymond James & Associates, Inc.: Okay. That's helpful. Thanks, guys. Mark S. Hoplamazian - President, Chief Executive Officer & Director: Sure.

Your next question comes from Smedes Rose from Citi. Your line is open.

Hi. Thank you. I wanted to ask on your Miami acquisition. I think, you bought it from a private equity fund that was run by a member of the Pritzker family. And I'm just wondering is that fund a potential source of future acquisitions? You mentioned looking at acquisitions at this juncture as well? Mark S. Hoplamazian - President, Chief Executive Officer & Director: We're seeing opportunities, I would say, broadly. So I'm not going to comment on specific sources or specific properties that we happen to be looking at or that are coming to market. So I would say that there's been a diverse group of potential sellers in the marketplace.

Okay. And then on your Rio, you talked a little bit about kind of long-term, I mean sort of broadly your return expectations at that property. It sounds like there's quite a long time to kind of get it up to where you think you can stabilize that, so on your Rio development, could you talk about maybe your thoughts there on what kind of returns that investment could yield over the next year or couple of years, or your thoughts around owning the asset? Mark S. Hoplamazian - President, Chief Executive Officer & Director: Yeah. So the comments that we made earlier, just to be clear, were about the Miami Beach acquisition. We didn't make any comments about Rio and what we thought the return profile might look like. I think the issue for Rio right now is simply that underlying demand is challenged in terms of business demand. And transient demand has been relatively stable. And of course, this year will be an unusual year because of the Olympics. We have some experience in this. About 15 years ago, we opened the Grand Hyatt São Paulo, and we are a 50% owner of that hotel with the family that actually was the developer of the hotel. Sorry for the sirens in the background. I promise they're not coming for us. And so I guess what I would say is, if I think back to the opening of that hotel and sort of the market conditions that applied at that time, they were really tough. And it took us at least four years to get to a point where the hotel was really starting to operate and start to grow and build on its strengths. We could very well face the same issue in Rio. I think this year will be a very tough year, other than the Olympics, which will obviously be a positive. I think it'd be a positive in a couple of dimensions. One is, obviously, demand and revenue, but secondly, exposure. So we're focused on making sure that we get a lot of exposure for the hotel, both transient and group. It's on the beach, so – and it was designed to be a significant meetings hotel as well. So we're going to have both good drivers on the business side and the transient side. But I think this year is going to be overall a pretty tough year in Brazil.

Okay.

And Smedes, just to build on Mark's comments. In his prepared remarks, Mark referenced the pre-opening expenses associated with the Rio opening, which weighed on first quarter results. We're expecting, outside of that pre-opening period, the hotel to be about breakeven for the year.

Thank you. And then just a final one on the share repurchase. Could you just break down the repurchase of the A and the B shares, the amount by segment? Mark S. Hoplamazian - President, Chief Executive Officer & Director: All of the shares that were repurchased year-to-date 2016 are A shares.

Okay. Thank you. Mark S. Hoplamazian - President, Chief Executive Officer & Director: Okay.

Your next question comes from Thomas Allen from Morgan Stanley. Your line is open. Thomas G. Allen - Morgan Stanley & Co. LLC: Hey. Good morning. In the prepared remarks, I believe, Pat, you said that transient momentum continued into 2Q. Could you just give us some more color just around general business trends in April? And how they compare to the first quarter? Thanks. Mark S. Hoplamazian - President, Chief Executive Officer & Director: I'd say, so it's Mark again. I'd say what we've seen is pretty good transient momentum through – into April in the U.S. in particular. Both select service and full service, so select service is just continuing to enjoy just tremendous momentum. It's kind of a – when you look at select as a driver of overall transient sort of mix for us, it's been significant. If you look at sort of year-over-year we have 13% growth from first quarter of last year to this year in number of properties, and 14% number of rooms in Hyatt Place and Hyatt House. We had some renovation impact in the first quarter. We also had renovation impact in the first quarter of last year, but I would say overall there's been great momentum there. And so we're seeing a lot of great transient demand supporting Hyatt Place and Hyatt House performance, and we're seeing margin expansion in those brands as well. On the full service front, we clearly saw positive transient demand continuing into April. I would say it's mixed in the rest of the world. We could go market-by-market, but I would say for sure the U.S. has been the stalwart. Thomas G. Allen - Morgan Stanley & Co. LLC: Helpful. Thanks. And then in mid-April you guys put out a press release highlighting how Hyatt…

Sharon, we have time for one more question.

Your last question is from Steven Kent from Goldman Sachs. Your line is open. Steven Eric Kent - Goldman Sachs & Co.: Hi. It seems like your peers had much weaker transient business than what you're posting. But then they said they had stronger group business. Why do you think you're doing so much better than the peer group on the transient customer? And I wasn't sure earlier, Mark, you said like transient was up a lot and it wasn't clear if that was on volume and you were getting the pricing power and the inelasticity? Or you were – or both or was it just volumes? So maybe just some more color on that would be helpful. Thanks for letting me ask a question. Mark S. Hoplamazian - President, Chief Executive Officer & Director: Yeah. Sure. So, first of all, just to answer the last piece of it, demand was up 6.5%, and ADR increases, this is in the U.S. that is, U.S. full-service hotels, and rate increased 3%, a little over 3%. So it's both, both demand and ADR. I mentioned that this first quarter of last year, which was up in the mid-6%, 6.7% or something like that, almost all of which was rate. So we're seeing some great compounding effect here. I think that the portfolio is – a couple things going on. First, you've got a significant expansion in the number of markets that we're serving. A lot of that has to do with the significant increases that we've had in Hyatt Place and Hyatt House properties around the country in particular. The rates of growth in hotels at 13% and rooms at 14% in our select service business over the last year are pretty significant. And that's all – gross equals net in this…

We have no further questions at this time. I will turn the call over to the presenters.

Great. Thank you, everyone, for joining us today, and we look forward to talking with you soon. Goodbye.