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

If you liked this article you might like

Bahamas Hyatt Hotel to Guests: If Hurricane Irma Hits, Get Out

Spain Terror Attack Sends Ripples Through Travel, Leisure Stocks

10 Sectors That Will Profit Big-Time From Oil's Crash

Hyatt Threatens to Leave Expedia This Summer