On the 2018 First Quarter Earnings Conference Call，CEO Mark Hoplamazian elaborates on Hyatt’s future development plans，Pointed out that the company will continue to promote the "light asset" operating strategy，Sale of real estate business with a total value of US.5 billion，And increase investment 188bet game Chinese tourism market。

Although other global hotel companies are implementing similar strategies，But 188bet game obviously wants to adopt a differentiated competitive approach that is different from many of its listed company peers。With Marriott、Compared to Hilton and other competitors，188bet game’s hotel property portfolio and global presence are at a disadvantage，But the company does not want to see its relatively small influence as a limiting factor for continued growth。

Lighter assets do not mean completely asset-light

When Hoplamazian first announced last fall that the company planned to sell off .5 billion worth of its real estate business by 2019，Many industry analysts interpreted this move as a sign that 188bet game will eventually become a company with an asset-light operating model like its peers。

188bet game past 20 years，More and more global hotel giants have been adopting an asset-light operating model that holds a small amount of real estate or even no real estate at all。For example，Hilton Worldwide completely separated its real estate business from its hotel business in 2017；The French Accor Hotels Group is divesting its real estate business，Even relatively small companies such as Red Lion Hotels are beginning to try to transform into asset-light operations，They do this to enhance competitiveness and expand business scope。

However，Over the years，Hyatt has always called itself an asset recycler 188bet game industry，Hoplamazian’s recent comments indicate that the company will continue this model 188bet game future。

“We are not yet done with the idea of ​​recycling assets，So we plan to sell our existing real estate assets，Then use the proceeds to purchase other assets，" Hoplamazian said，“The past mergers and acquisitions have allowed us to expand our business in some key international markets，The company will also acquire some very important hotels 188bet game future。”

Promote growth through M&A transactions?

Similar to peers such as Wyndham Hotel CEO，Hoplamazian said the company is always looking for opportunities to buy and sell assets。“We are always watching the buyers and sellers 188bet game market，Because focusing on the present is the most effective way，Companies must respond quickly，" he pointed out。

When asked what M&A targets 188bet game may be looking at，Hoplamazian said，The company has been evaluating other hotel brands，But the specific time cannot be determined yet。

He did not say whether the company would continue to focus on health、Non-standard accommodation, a field closely related to hotels，Last year Hyatt invested heavily in these two areas，Acquisition of Miravel and Exhale 188bet game health field，188bet game field of non-standard accommodation and acquiring part of the equity of luxury vacation rental platform Oasis。

However，Hopalamazian also pointed out，The company’s real estate business sales of .5 billion 188bet game not lead to the expansion of its real estate portfolio business。

If the company implements a growth strategy of acquiring brands or platforms，188bet game will do what Marriott did with its .3 billion acquisition of Starwood Hotels & Resorts，Spin off all real estate businesses and sell them。

"Many times，Want to acquire a brand or platform，The buyer must also acquire the 188bet game under the brand，" Hoplamazian said，“But our priority is to get rid of the 188bet game as soon as possible。”

Focus on the Chinese market

Hyatt currently has 58 hotels in China，The number of hotel rooms accounts for 10% of Hyatt’s global number of rooms。According to Hoplamazian estimate，A large part of Hyatt’s international business growth will come from Greater China 188bet game future。The next four years，Hyatt expects to double room count，The franchise fee collected from this area will also be doubled。Currently，Hyatt Greater China hotel franchise fee revenue is US million，Accounting for 11% of the company’s total global revenue in this area。

China’s tourism market is very important to global tourism brands。Since this market has 1.4 billion consumers，The huge consumer group is not only conducive to their development 188bet game country，It will also drive the outbound tourism market。At the World Travel and Tourism Council General Assembly held last month，Hoplamazian also emphasized the global middle class in his speech，Especially the importance of China’s middle class。

“China’s 188bet game revenue growth rate is more than twice the GDP growth rate，188bet game revenue accounts for more than 2% of China’s GDP，”he said，“China’s domestic tourist volume in 2017 increased by nearly 13% compared with the same period last year，The number of outbound tourists in 2017 exceeded 1.300 million visitors，7% increase compared to 2016。It’s worth noting，This number is expected to nearly double to 2 by 2025.500 million visitors。”

In order to speed up the development of the Chinese market，188bet game recently appointed former Marriott Greater China executive Stephen Ho as Greater China president。

Also，Hyatt also signed a development franchise agreement with Tianfu Minyoun Hotel to promote two selected service brands, Hyatt Place and Hyatt House，It is expected that 50 new hotels of this type will be built in China 188bet game next five years。Same，Hilton、Accor and others have also established strategic partnerships with Chinese hotel developers in recent years。

Hoplamazian also pointed out，“We are increasing our investment in digitalization，This is one of the most important means to effectively involve Chinese travelers。We 188bet game improve the existing technology platform，Looking for strategic partners in this area and increasing payment options and mobile service types，Increase our influence in major e-commerce channels in China。”

Enhancing digital influence in China is a priority for many U.S. 188bet game companies，Some of them have to admit Tencent、Platforms such as Baidu and WeChat have a strong influence in mobile payments and mobile messaging in this region。

Although Hyatt has made great progress and improvement in its selected service brand 188bet game Chinese market，Especially after establishing a cooperative relationship with Mingyu Hotel，But Hoplamazian said，The company relies on Hyatt’s business segments in China, which are areas where local mid-range hotels and budget hotels are not doing very well。

Season 1Performance exceeded expectations

Hoplamazian describes first-quarter results as strong growth，Net profit surged from US million 188bet game same period last year to US 188bet game same period in 2017.USD 1.1 billion。

Adjusted net income of million，Exceeded Wall Street expectations，However, the adjusted net profit dropped significantly from the US million 188bet game same period last year。

Revenue per available room (RevPAR) 188bet game system increased by 4 year-on-year.3%，Mainly driven by the increase in occupancy rate and average daily unit price。

Although Hoplamazian is cautiously optimistic about Hyatt’s business in China 188bet game second half，R.W.Baird senior research analyst Michael Bell is optimistic about the company's future development，His recommendation for the company’s stock is “Selected Top Hotel Brands”。

"We think，As the company gradually grows in size and international projects continue to expand，We believe Hyatt is well positioned to outperform its peers 188bet game remaining second half of the year，" Bellisario wrote in a note to investors。

188bet game article was compiled from skift by Zhihui analyst Li Haiqiang，Original title: "188bet game CEO: Funds for Future Growth Will Come From Real Estate Sales》.