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 3, 2012, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold.You can find the 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, and a telephone replay of this call will be available for one week per the information included in this morning's release. And with that, I'll turn it over to Mark to get started. Mark S. Hoplamazian Thank you, Atish, and good morning to everyone. Thank you for joining us. We received a number of questions. Thank you for the engagement and the participation. And we look forward to turning to those in just a moment. I want to cover a few topics before we cover the questions. First, first quarter results. 2012 was really off to a good start. I think when you look at North American group in transient revenue, growing in high single digits and the group booking in the first quarter -- bookings in the quarter -- for the quarter and in the quarter for the year, we're quite encouraged by the level of demand that we see. We had recently renovated hotels that are performing well. We've got great feedback from guests and meeting planners alike. Occupancy lift has been significant year-over-year, and we're looking forward to -- for the rate growth later in this year. And finally, as of the first quarter, the hotels that we acquired from LodgeWorks are doing well. RevPAR progression has been very strong. RevPAR index expansion has been very strong, and we've really seen the positive results of the Hyatt brand and the Gold Passport customer penetration into those hotels.
Second, we announced yesterday the acquisition of a hotel in Mexico City. We're very excited about this. This will be Hyatt Regency in Mexico City. We're very excited about establishing our presence there, especially in this location. And we have been looking at building our brand presence there for some time. The level of travel to Mexico has been quite strong both in leisure, as well as business travel. And overall, the economic trajectory in Latin America is quite positive. We are very happy with the acquisition. The all-in costs, including an approximately $40 million renovation, will bring us an adjusted over $300,000 per key, which we believe is well below replacement cost.Most importantly, it's really consistent with our strategy of how we intend to use our balance sheet, which is to really secure opportunities and gateway cities. And eventually, these hotel, we will look to recycle it and sell it, but retain a long-term management contract. But we really believe that the repositioning of the hotel, the branding of it and some other work that we're going to do will have a positive impact. Third, I want to talk briefly about the organizational changes that we announced yesterday. We've covered quite a lot of ground over the last few years and established a great foundation for our future. We built a lot of capabilities and added a lot of resources over the last several years. As we look forward, we recognize that our business mix will shift over time as we open hotels in our pipeline. We also recognize that the velocity of the changes in consumer behavior is increasing. There's a large increase of consumers and business travelers in places like China and India. And that will change the profile of our customer base over time. Read the rest of this transcript for free on seekingalpha.com