Industry Update
Press Release 8 October 2018

Hyatt to Expand Brand Footprint and Pipeline With Acquisition of Two Roads Hospitality

Addition of Alila, Destination, Joie de Vivre, Thompson and tommie brands to the Hyatt portfolio will strengthen Hyatt's lifestyle and wellbeing offerings for high-end travelers worldwide

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Global Hyatt Corporation

Hyatt Hotels Corporation (NYSE: H) today announced an agreement to acquire Two Roads Hospitality, an international lifestyle hotel management company with a unique collection of distinctive brands, properties and a robust development pipeline around the globe.

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Through the addition of Two Roads, its established lifestyle brands and the management agreements for the majority of its 85 properties in eight countries, Hyatt will expand its brand presence into 23 new markets while enhancing its offerings in lifestyle hotel experiences and wellbeing. With Two Roads and its distinctive collection of lifestyle hotels, resorts and vacation residences, Hyatt will offer an expanded and more powerful portfolio of brands with best-in-class offerings to deliver compelling experiences and benefits for guests and World of Hyatt members, expand its relationship with valued hotel owners, and drive growth for shareholders.

"Hyatt and Two Roads share a commitment to genuine care and delivering distinctive experiences to discerning travelers. We are pleased to be coming together, and are dedicated to learning from each other and taking the best of both organizations forward," said Mark Hoplamazian, president and chief executive officer, Hyatt Hotels Corporation. "Two Roads' passionate team members, strong brands, global footprint and robust development pipeline will expand our lifestyle offerings and grow Hyatt's brand presence in more places where our guests and World of Hyatt members want to travel. Importantly, combining Two Roads' meaningful brand presence and development plans in Asia with Hyatt's already strong position in this region will allow us to accelerate expansion in this critically important and fast-growing part of the world."

The acquisition consists of a base purchase price of $480 million, with the potential for Hyatt to invest up to an additional $120 million in the aggregate, contingent on the outcome of certain terms to be individually defined after closing. The base plus contingent total purchase price is expected to reflect an EBITDA multiple of approximately 12-13x stabilized 2021 earnings, which Hyatt considers the best indicator of valuation based on anticipated synergies and growth.

Consistent with Hyatt's long-term growth strategy to drive shareholder value, this investment in a high-growth, capital-light platform accelerates Hyatt's evolution to a more fee-driven enterprise, funded by proceeds from an asset disposition program in which real estate has been monetized at an average multiple of approximately 16.5x EBITDA to date. Notably, Hyatt is making this growth investment in a year in which it has committed to return approximately $800 million of shareholder capital through a combination of share repurchases and a cash dividend.

After the close of the transaction, which is expected later this year, Hyatt will create a dedicated lifestyle division as a catalyst to bring together the operations of Two Roads' and Hyatt's lifestyle brands. "Hyatt is an ideal home for us as we share many values and a deep commitment to thoughtful growth and creating compelling experiences for our guests," said Jamie Sabatier, chief executive officer, Two Roads Hospitality. "Hyatt's unique position in the marketplace brings with it the powerful benefit of global scale while maintaining meaningful personal relationships with team members, guests and owners."

Hyatt will provide additional information related to the acquisition, including a preliminary estimate of 2019 earnings accretion, on its third quarter earnings call scheduled for October 31, 2018. Hyatt plans to integrate Two Roads brands into the World of Hyatt program in 2019, expanding opportunities for World of Hyatt members to earn and redeem points across more leisure-focused stay options and also driving hotel occupancy from a loyal group of travelers who spend more, stay more and book directly.

Goldman Sachs & Co. LLC served as exclusive financial advisor to Hyatt; Moelis & Company LLC served as exclusive financial advisor to Two Roads Hospitality; Latham & Watkins LLP served as legal counsel to Hyatt; Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Two Roads Hospitality.

The term "Hyatt" is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates. Hyatt plans to include Two Roads' properties in its World of Hyatt loyalty program, but such properties are not currently participating.

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Destination

Destination Hotels (Destination) is the preeminent operator of independent hotels, resorts and residences in the United States. Headquartered in Denver, Colorado, Destination is an industry leader with more than 40 years of hospitality management and development experience.
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Joie de Vivre

Since its founding in San Francisco in 1987, Joie de Vivre has made curating authentically local and eclectic experiences its signature. Each one of Joie de Vivre's hotels is an original concept designed to reflect its location and engage the five senses.
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Thompson

Founded in 2001, Thompson Hotels is an award-winning boutique lifestyle hospitality brand with a collection of stunning, dynamic properties. Each of Thompson Hotels’ urban and resort locations offers a carefully layered environment that molds into its surrounding community.
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Alila

The hallmark of Alila is the combination of innovative design and luxury in unique locations, set apart by an unprecedented level of private space, crafted artisanship, personalised hospitality and bespoke learning journeys.
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tommie

tommie is a new, micro lifestyle hotel brand developed by Commune Hotels & Resorts. Built for the youthful and open-minded traveler who seeks to make the most of every moment, tommie was created to be a living forum for the curious and creative where guests are encouraged to author their own stays through purposeful design, community programming and personalized amenities.
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Jaya Hotels & Residences

Two decades of successful collaborations with leading hospitality brands and celebrated design across the continents afforded Jaya the inspiration to establish an entirely new hospitality brand, manifesting their values and commitment to luxury, location and service.
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Other Brands by Hyatt
Alila
Andaz
Destination
Grand Hyatt
Hyatt
Hyatt Centric
HYATT house
Hyatt Place
Hyatt Regency
Jaya Hotels & Residences
Joie de Vivre
Miraval
Park Hyatt
The Unbound Collection by Hyatt
Thompson
tommie
Zilara (By Hyatt)
Ziva (By Hyatt)
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Geolo Capital Announces Agreement To Sell Two Roads Hospitality

8 October 2018 — Geolo Capital, the private equity investment arm of the John A. Pritzker family office, announced an agreement to sellTwo Roads Hospitality, the international lifestyle hotel management company, to Hyatt Hotels Corporation (NYSE: H). Under the terms of the transaction, all of Two Roads' hotel brands — Alila Hotels & Resorts, Destination Hotels, Joie de Vivre Hotels, Thompson Hotels and tommie — will join Hyatt's global portfolio.
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About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a portfolio of 20 premier brands. As of June 30, 2019, the Company's portfolio included more than 875 properties in over 60 countries across six continents. The Company's purpose to care for people so they can be their best informs its business decisions and growth strategy and is intended to attract and retain top colleagues, build relationships with guests and create value for shareholders. The Company's subsidiaries develop, own, operate, manage, franchise, license or provide services to hotels, resorts, branded residences, vacation ownership properties, and fitness and spa locations, including under the Park Hyatt®, Miraval®, Grand Hyatt®, Alila®, Andaz®, The Unbound Collection by Hyatt®, Destination®, Hyatt Regency®, Hyatt®, Hyatt Ziva, Hyatt Zilara, Thompson Hotels®, Hyatt Centric®, Caption by Hyatt, Joie de Vivre®, Hyatt House®, Hyatt Place®, tommie™, Hyatt Residence Club® and Exhale® brand names, and operates the World of Hyatt® loyalty program that provides distinct benefits and exclusive experiences to its valued members. For more information, please visit www.hyatt.com.

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