Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2016 Hyatt Hotels Corporation Earnings Conference Call. My name is Mike, 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. Please proceed.

Thank you, Mike. Good morning, everyone, and thank you for joining us for Hyatt's fourth quarter 2016 earnings conference call. I am here in Chicago with Mark Hoplamazian, Hyatt's President and Chief Executive Officer; Pat Grismer, Hyatt's Chief Financial Officer; and Amanda Bryant, our Director of Investor Relations. Mark will begin today's call with a review of 2016, including a discussion of our operating results and key business highlights. He will provide some perspective on 2017 as well, including our recent acquisition of Miraval Group. Mark will then turn the call over to Pat, who will provide details on our financial performance this quarter and discuss our outlook for 2017, including our expectations for RevPAR and adjusted EBITDA. 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, February 16, 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 Releases 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 it over to Mark to get this started.

Thanks you, Brian. Good morning everyone and welcome to Hyatt's fourth quarter 2016 earnings call. 2016 was a successful year for Hyatt strategically, operationally, and financially. As a result, we have good momentum and we believe we are well-positioned to deliver another year of solid results in 2017. Despite modest RevPAR growth, our adjusted EBITDA for the full year grew nearly 5% to $785 million. When adjusting for foreign currency translation, adjusted EBITDA growth was approximately 6% for the year. Fourth quarter adjusted EBITDA finished at $172 million, which was down nearly 4% and down about 2% when adjusting for foreign currency. With respect to top-line results, our system-wide comparable constant dollar RevPAR increased 2.5% for the year, including 2.6% growth in the United States for our full service hotels and 5.4% growth for our select service hotels. Based on Smith Travel Research data, during the year we grew market share, as measured by RevPAR Index, in each of our three regions and in the majority of our hotels globally. For the fourth quarter, our system-wide comparable constant dollar RevPAR increased 2%, driven by U.S. full service growth of 2% and U.S. select service growth of 3.5%. According to Smith Travel Research, the U.S. luxury market grew 1.9% and the U.S. upper-upscale market grew 0.6% during the quarter. With that as a backdrop, we are very pleased with the 3.1% and 1.7% growth, respectively, of our luxury and upper-upscale hotels in the U.S. during the quarter. We have now gained market share globally for eight consecutive quarters. This gives us confidence that the steps that we're taking to differentiate our brands are resonating with our guests and that our focus on operating with excellence is yielding tangible results. Our owned and leased portfolio RevPAR grew 2.2% during 2016, despite a…

Thank you, Mark, and good morning, everyone. I'll begin by sharing additional color on our fourth quarter results, and then summarize our outlook for 2017. Earlier today, we reported fourth quarter net income of $41 million and earnings per share of $0.31 on a diluted basis. Adjusted EBITDA for the quarter was $172 million, down approximately 2% from prior year on a constant currency basis. For the year, adjusted EBITDA increased nearly 5% to $785 million, representing annual growth of approximately 6% on a constant currency basis. As noted in our earnings release, both our quarterly and annual results were affected by adjustments related to our co-branded credit card program, which adversely impacted adjusted EBITDA by $7 million and reduced our owned and leased margins by 170 basis points for the quarter and 40 basis points for the full year. I will cover our owned and leased segment results in more detail in a moment. Comparable system-wide RevPAR increased 2.0% in constant dollars in the quarter, yielding a 2.5% increase for the full year. As I walk through each of our segments, I'll highlight the key drivers of our RevPAR performance, starting with our owned and leased business. Our owned and leased segment, which accounted for more than 50% of our adjusted EBITDA before corporate and other expenses in Q4, delivered marginally positive revenue growth and relatively flat EBITDA growth both on a constant dollar basis. RevPAR at comparable owned and leased hotels underperformed our system-wide average, declining slightly in constant dollars for the quarter. Although occupancy increased 40 basis points, average daily rate declined 80 basis points. Our owned and leased hotels in the Americas and Asia Pacific regions enjoyed RevPAR increases for the quarter. However, our owned and leased hotels in Europe brought the overall segment into slightly…

Your first question is from Patrick Scholes from SunTrust.

Hi. Good morning. Just some quick questions on here. I may have missed. Did you give out what your 2018 group pace currently stands at? I have my notes. It was 6% in the previous call.

Yeah. So we didn't – it's still up in the – remains up in the mid-single digits, and so we see both demand and rate progression in the bookings for 2018. About 50% group business or expected group business for 2018 is now on the books, so a pretty good representation about what we will see heading into 2018.

Okay. Thank you. And then perhaps I'm splitting hairs a little bit here. I'm being a little too precise. On 2017, did you say low single digits for group pace? Is that correct?

Yes, that's correct.

Okay. In that case, it seems it has slipped a little bit. What do you attribute that to? Is that just because we have a longer booking window as we get closer, things have slipped over last couple of years?

Yeah. So let me provide a little context for that. Yes, it means it slipped a bit from the end of the third quarter when we were up in the sort of mid-single digit range. When you look back over 2016, what you see is a pretty consistent pressure gap in the quarter, for the quarter, and in the quarter for the year bookings pretty much in every quarter. The third quarter was particularly weak in the quarter, for the quarter bookings, but we had a very strong production quarter in the third quarter. October was a very weak production quarter for us. So we finished the – even though there has been sort of a shift in profile, we had a total increase in total production for the year, modest increase year-over-year, but that's really net of what turned out to be a relatively weak fourth quarter in terms of total production. So that's really the – those are the key sort of dynamics that I guess I would point out in terms of profile of – what the booking profile has looked like, and also what's happened in the last couple of quarters.

Okay. That's great. Thank you very much.

The next question is from Bryan Maher from FBR & Company. Bryan A. Maher - FBR Capital Markets & Co.: Yes, good morning. Can you drill down a little bit more – give us a little bit more color on your investment in Hyatt Centric in 2017? I think you said your capital spending is going to go from $210 million to $430 million. Roughly, what component of the $430 million would you say is Hyatt Centric? How many hotels might that be and kind of how far along are you in the process on those properties? Have they broken ground or are they breaking ground in the first half of 2017? Just a little bit more color would be helpful.

Great. So on the proportionality, Pat, I don't know if we've provided that already in detail.

Yeah. What we had indicated in our earnings release as to the incremental CapEx in 2017 relative to 2016 is that about $65 million of that year-over-year increase relates to new corporate development projects that covers several brands, but certainly the Hyatt Centric brand figures prominently in that amount.

Yeah. So let me try to give you a couple of reference points. There are couple of projects that are kicking off and will end up spooling up in terms of capital investment during the course of the 2017 year. There are two Hyatt Centric projects, one in Portland, Oregon and one in Philadelphia, both of which will be under construction during the course of this year. We have a number of other projects that are under construction currently that are primarily Hyatt Place and Hyatt House properties on the West Coast, and we have some investment in a joint venture project – a couple of joint venture projects on the East Coast. So, that's the sort of profile of what the investments are. We have another project in Mexico City, which we will be executing with a partner, which is a development that includes a new hotel, residences, and office space. That will get kicked off and be under way towards the end of 2017. So, the Hyatt Centric piece really relates to the Portland and Philadelphia projects at this time.

And, Bryan, what I would add, just to reiterate what we said earlier, is that we see this as a strategic opportunity to use our balance sheet to catalyze the development of our brands, with the full expectation that, over time, we will unwind some of this investment through outright sales and/or joint ventures. Bryan A. Maher - FBR Capital Markets & Co.: And do you have people that you've already sold prior properties to interested or teed up in these Hyatt Centrics as take-outs close to or shortly after completion, or would they be new buyers?

It's possible that they would be existing owners that we've got relationships with or new relationships. We have had experience with projects – most of the projects that we have been engaged in actually building and then selling have been Hyatt Place or Hyatt House projects, and we've got a couple of examples where we actually secured sites in key markets. We then went and entitled those sites and, in a couple of cases, sold the projects before construction began. We've also completed some hotels and sold completed hotels. And finally, a third sort of example, we've also joint ventured in-process construction projects. In fact, there are few examples on the West Coast right now where we, during the course of our construction and development, have partnered those hotels. So we pursue different modes depending on what the opportunity looks like. In the case of the Centric properties, we're confident that they are very attractive properties and that we'll be able to identify strong partners with whom we can either partner or then sell the projects to.

And, Bryan, just one final point. I just want to make clear that this corporate development activity forms part of our overall asset recycling strategy. So the asset recycling is not limited to hotel acquisitions and dispositions, but equally it includes the opportunity we have to deploy our capital to stimulate the development of our brands, again, with the expectation that this capital will be recycled through sales and joint ventures. Bryan A. Maher - FBR Capital Markets & Co.: Okay. Thanks. That's helpful.

The next question is from Bill Crow from Raymond James. Bill A. Crow - Raymond James & Associates, Inc.: Hey. Good morning. I just want to follow-up on that topic, because there's certainly no shortage of new construction here in the U.S., and it seems like you're more aggressive on doing things on balance sheet than maybe your peers. Are these projects that are having a tough time penciling out to start with or why not just let the franchisee take the development risk in this case?

In a lot of cases, Bill, the opportunity really begins with securing a site that we think is important for the brand and our representation in the given market. So that's a driver of it. In some cases – and I guess the current case is, in Mexico City, when we acquired what was then the Nikko Hotel, now the Hyatt Regency Mexico City, it came with adjacent land that we – it took some time for us to plan an efficient and effective use of that land. It's in an extremely high barrier to entry, very high-rated marketplace. So the opportunity to expand there was always in our minds, but it took us a while to map out what would be the highest and best use. And so in that case, upon getting the plan put into place, we were able to secure a partner at the frontend, and we will go and execute that expansion. So it really will vary. In some cases also, these are projects where you've got counterparties that are developing, and this is the case in both Portland and in Philadelphia. We've got counterparties, either the seller of the land in one case or a developer of a mixed use portion of a project of which the hotel will be a part, where the requirement was for a creditworthy counterparty to be involved in the transaction. And by the way, this is now – I guess, I can count off the top of my head a few different examples of this one other one in California and another one in Boston, where the developer or the landowner seller said, we're prepared to do this, but we need someone with a balance sheet on the other side of it, not a stand-alone development opportunity where a local development group might come in. So, we end up stepping in to be able to secure the opportunity, and then, over time, bring partners on and then, finally, sell. So that really characterizes what has actually applied in the examples that I'm referring to. Bill A. Crow - Raymond James & Associates, Inc.: Okay. Fair enough. Mark, how difficult is development today with the inflation in the cost to build and the lack of inflation, if you will, in property-level NOI? I mean, are we getting to the point where supply growth almost needs to slow down, because trying to get the numbers to work a year or two out just doesn't make sense anymore?

Well, I think you left one factor off of your list, which I would put on the list, which is a change in the financing environment. I think the financing for developments has become clearly more challenging. And so advance rates are under pressure dropping and costs are going up, and I think that that's actually another factor that will create some measure of buffer, I guess, or maybe a limiter on how much new development occurs. And you also see a real maybe bifurcation of type of financing, where you've got local – very local banks in non-key markets that are still involved in making loans against these kinds of projects. But for a lot of projects, banks have taken a more measured approach to providing financing. So, I would say to you that in no case that I can think of do developers really think of what they're doing as trying to hit a narrow period of time where it's a trade, where they're going to execute something, they're going to hit exactly the right time in the market, and then they're going to flip out of it. I think most developers go in recognizing that things will change during the pendency of the development. You have to make sure that the underlying underwriting is good market, appropriate brand, right execution, and a brand that can deliver. And when you've got those factors in place, then your ability to actually recycle over time is secured. So it may not be so much a trade mentality, but rather a recognition that these things can take some time to evolve and develop. Bill A. Crow - Raymond James & Associates, Inc.: Okay. Thanks for the color. Appreciate it.

Yeah.

The next question is from Jared Shojaian from Wolfe Research.

Hi. Good morning. Thanks for taking my question. So just a high-level question here. After seeing what La Quinta is doing to split up their company, curious why you guys wouldn't pursue a similar transaction? I mean, if you really believe that your owned assets are worth $7 billion, I guess, what prohibits you from doing something? Is it simply not enough support at the board level from controlling shareholders, or maybe is there something else that I'm just not appreciating? Thank you.

Thanks, Jared. This is Mark. Our philosophy and our strategy from – actually over a very long period of time, not just since we've been public, has been that we view our ownership in hotel real estate as a part of our business, in that we believe that it makes us better owners. We eat our own cooking – better managers rather. We eat our own cooking every day. But secondly, we've used our asset base through a very proactive recycling effort to create new opportunities for us. So the idea that we can utilize that asset base to fund investments in markets in which we want to grow has yielded a tremendous level of opportunity and benefit for us over time. And has allowed us to really expand in some key markets, in key convention hotels, in key resort areas, gateway cities, and it's allowed us – actually it is the key thing, that's allowed us to build such a strong base in our select service brands. And you can see the results of the way in which we've gone about building those brands and what that's yielded. So our approach has been based on an active utilization of the asset base as opposed to a static portfolio. And therefore, when you've got that embedded, we've done well over $5 billion in transactions over the last four or five years and that just – it just demonstrates how active we've been. But when you're that active, having full control over the asset base and being able to use it to spur growth is really why we think that this makes sense for us.

And just to build on what Mark has said, Jared. We are actively in the market now marketing properties that we believe are ripe for disposition, that will provide us with proceeds to continue to make investments behind new growth opportunities, whether hotels in gateway cities and key markets that we believe will provide an opportunity to expand the reach and the presence of the Hyatt brand or to make investments, as we did with Miraval, that take our business into new growth areas beyond traditional hotel stays.

Okay. Thank you. And then, Mark, in the past, I know you've talked about status matching SPG members after the Marriott deal. Can you just talk about what you've seen with these specific travelers over the last few months, and do you think you've seen any share shift, or do you expect to see any share shift going forward?

Well, I can tell you that the activity that we've had under way to launch World of Hyatt, which launches on March 1, has been at a peak level. So there's been a lot of engagement with the marketplace. And the fact is that there will be further shakeout or dynamics, if you will, of changes in how people approach their loyalty customers. Our philosophy has been to focus on building a platform of experiences which is resonant to our high-end customer base, because we're focused on the high-end customer. We have had success in welcoming a number of high-rated SPG platinum members who have grown with us in terms of their stay patterns and behaviors over time. And we are not just focused on that customer cohort, but rather the whole customer segment that is the high-end traveler that's looking for unique experiences. So that's really the new platform, which is World of Hyatt, and that's the philosophy that we're following.

Okay. Thank you for the time.

The next question is from Smedes Rose from Citi.

Hi. Thank you. I wanted to just follow-up, because you're actively marketing some properties now, and I was just curious if you could just speak to the level of interest from buyers. Are they domestic or foreign and kind of what are you seeing sort of in pricing, say, versus a year ago?

It's a bit early for us to be able to comment specifically on that. So, a couple of comments. First, we – historically, and this is consistent with how we think about it now, when we take out a given property to the market, we do it in a way that's maybe a little untraditional in the marketplace. We are in the process of price discovery. We have, in the past, taken properties out for price discovery purposes to investigate whether it's an opportune time to sell, and then not sold, because our criteria are quite clear. We want a strong owner, we want a strong contract, we want to know that if it's an owner that we can grow with over time, we want to understand what they're going to put into the property and, of course, price matters a lot. So, I would say that that approach and our conditions – or our criteria have not changed at all. Secondly, while it's a little early to say much about price levels or interest, I would say that there's relatively broad interest from both U.S. and non-U.S. potential buyers at this point.

And, Mike, we'll take our last question now.

The last question is from Stephen Grambling from Goldman Sachs. Stephen Grambling - Goldman Sachs & Co.: Hey, thanks for taking the question. I appreciate the advantages from using your assets and balance sheet to spur growth, but maybe you could help clarify, as you look at expanding into tangential industries, what will ultimately be viewed as something that is more of a near-term opportunistic investment versus what could be folded into a core strategy? Thanks.

Well, I guess the answer ultimately is going to be derived from our customer base. So, the way we are approaching how we operate going forward is to focus on the fact that we have a very strong high-end customer base, high spending, high traveling customer base. And what we've been doing and will continue to do is get closer and closer to them in terms of understanding what their desires are and what they're thinking about, what they like, and then being responsive to them. And in some cases, that is able to be satisfied through hotel offerings that we've gotten out of the cases. It will extend beyond that. In some ways, even though our all-inclusive business is a hotel business, getting into the all-inclusive segment was really a call that we made about higher end travelers who are interested in that format of travel. And that's why we launched two new brands and we're able to do through the investment that we made in Playa. So if you just extend the Playa example, we made $325 million investment in that company to really secure our ability to deliver a Hyatt experience in the all-inclusive market with a great partner. And as we were describing earlier on the call, we expect to release most of that capital assuming that these contemplated transactions close, while now having established brand with some growth potential. So that's an example where we've utilized capital on a temporal basis in order to enter a new market, and expand and extend. If you look at Miraval, based on a lot of work that we've done over the last year, wellness is among the most compelling of the areas of interest for our customer base. And it's not just the transient leisure customer base, and…

Sure.

I will now...

Thanks, Mike. Go ahead, Mike.

I will now turn the call back over to Brian Karaba for closing remarks.

Thanks, Mike, and thank you, everyone, for joining us today, and we look forward to talking to you soon. Goodbye.