Transformative strategies, five-star investor days and the art of transparent engagement: Inside IR at Hyatt Hotels Corporation

When asked which issues investors and analysts are asking about now, Tara Atwood, director of IR at Hyatt Hotels Corporation, says the biggest questions are around post-pandemic consumer behavior and lasting changes in consumer habits. 

Since joining the company in 2022, her focus has been on enhancing a strategic IR strategy and proactively engaging with existing and new investors to communicate the business transformation that has followed the multi-billion-dollar acquisition of Apple Leisure Group.

In this interview with IR Magazine, Atwood explains how she leads the IR function at the Chicago-headquartered multinational hospitality firm, shares her biggest challenges and successes and talks about the importance of demystifying the IR function and fostering collaboration.

Can you tell us how you got into IR, how the team is set up at Hyatt and what you did before joining the company? 

I’ve been in IR for about 15 years, starting on the buy side before moving to large public companies like Time Warner Cable and Hyatt. After the merger of Time Warner Cable and Charter, I pursued an MBA and traveled globally, deepening my interest in hospitality, [which led] me to Hyatt.

My background in English and philosophy as my undergraduate degree, coupled with an MBA, honed my storytelling skills – a key aspect of IR. I truly enjoy shaping a company’s narrative, simplifying complex information and deepening relationships.

At Hyatt, IR is integrated with financial planning & analysis (FP&A), fostering seamless collaboration and information flow. I serve as director of IR, working closely with Isabelle Swartz, a senior IR analyst, and reporting to Adam Rohman, who heads both FP&A and IR, under our CFO. This structure enhances strategic alignment and efficiency.

In terms of IR, what changes did you implement when you joined Hyatt?

Upon joining Hyatt, my primary objective was to enhance our strategic investor relations strategy, centered around key targeted and proactive engagement. The aim was to clearly articulate Hyatt’s strategic narrative, particularly highlighting our transformation and the significant $2.7 bn acquisition of Apple Leisure Group, the leader in luxury all-inclusive resorts. 

This active engagement strategy was designed to foster trust among stakeholders through regular, transparent communication and accessible interactions with IR and our executives, including our CEO Mark Hoplamazian and CFO Joan Bottarini. A key part of this initiative was the successful execution of our investor day in May 2023.

What does your typical day in IR look like?

My days are dynamic and vary depending on the quarter’s phase. During the quiet period, just before a quarter closes, we pause external communications, finalize the previous quarter’s outstanding deliverables and we might take some well-deserved time off and focus on our well-being by visiting one of our gorgeous properties. 

The subsequent six weeks involve intense earnings preparation: meetings with executives, crafting releases and presentations, writing scripts and preparing for Q&A. Post-earnings, the focus shifts to engaging with analysts and shareholders through calls, attending industry conferences and conducting non-deal roadshows.

We also support other internal teams, such as communications and development, in their stakeholder engagements. Day-to-day tasks include administrative duties like presentation preparation, executive preparation for events, managing travel, maintaining our website and CRM, looking at peer analysis and reading the many analyst reports that hit our inbox. Every day in IR is engaging and varied.

What has been your biggest challenge in the role so far?

Orchestrating [the latest] investor day. As a small yet formidable IR team, we developed more than 200 pages of materials and scripts for this important company event. It demanded an exceptional depth of analysis and creativity to construct a compelling narrative and support for the presentations.

Additionally, managing the logistics of hosting more than 100 guests for a multi-day event at our resort in Mexico, along with their plus-ones, added to the complexity. Our investor day turned out to be a remarkable and rewarding experience and the most significant challenge in my career so far.

And what about your highlight? 

The highlight was hosting the investor day [last year]. This event was a pivotal growth opportunity in my career, deepening my industry knowledge and understanding of our company. Collaborating closely with company leaders to craft a detailed half-day of presentations and narratives was incredibly rewarding.

Witnessing our shareholders and analysts experience our resort in Mexico firsthand was also extraordinary. It was gratifying to see their smiles and see our purpose in action: caring for people so they can be their best. Observing their genuine appreciation for what Hyatt represents was a truly remarkable highlight and something our stakeholders still talk about to this day.

What are some of the top issues investors and analysts are asking about at the moment?  

Currently, the most prominent questions from investors and analysts center on post-pandemic consumer behavior, particularly any lasting changes in consumer habits. They are keenly interested in understanding the post-pandemic landscape for our business, specifically how leisure travel, business travel and group business are shaping up in a more ‘normalized’ environment. 

Do you actively target new investors? If so, how?

Yes, actively engaging with both new and existing investors is a key part of our strategy. We connect annually with investment firms globally and host numerous events including industry conferences and non-deal roadshows to maximize our outreach. We balance our meetings between firms currently holding positions and potential new investors.

Our targeting strategy starts in August, planning for the next year by aligning with executive schedules for outreach. We then review our annual IR outreach performance in December, setting the foundation for the next year’s objectives. For 2024, our proactive approach includes:

– Post-earnings group meeting hosted by our CEO, CFO and IR and facilitated by a sell-side analyst

– Industry conferences and non-deal roadshows: Attending one or two each quarter to engage with both current and potential investors

– Using tools and data: Leveraging data from the S&P Global CRM tool, including its BuysideIQ investor ratings and key insights from its surveillance team, and collaborating with sell-side teams for targeted reports.

Our focus is on maintaining a balanced shareholder mix of low-medium and higher-turnover investors. This guides our time allocation, ensuring we prioritize quality interactions and meaningful engagements.

Where have your energies mostly been focused over the past year – and how do you expect that to change in 2024? 

Over the past year, our efforts centered on communicating our company’s transformation. Looking forward to 2024, driven by our core purpose of care, we’re excited to enter what we believe will be our most exciting chapter yet. Our focus will be on our commitment to reinforce our position as the preferred hospitality brand and we will concentrate on honing our communications to maintain trust, ensure access and uphold consistency and transparency with our stakeholders.

If resources were no object, what would you like to do better or more of?  

With no resource constraints, I think enhancing our investor and analyst engagement by offering more on-site experiences at our properties would be valuable. While we already effectively communicate our business, there’s immense value in stakeholders experiencing our properties firsthand. Events like our investor day have highlighted this and, given unlimited resources, we would significantly expand such immersive, on-site experiences for our stakeholders. 

Finally, if you could pass one IR lesson what would that be?

One key lesson in IR is the importance of demystifying the function within the company. It’s crucial to open the doors to colleagues, inviting them to understand the role of IR and how it integrates into the broader business. This transparency fosters collaboration and shared understanding. At Hyatt, we have a program called ‘seat at the table’ and we’ve invited colleagues to attend some of our investor meetings and other opportunities to learn and understand IR.

Additionally, building strong relationships with fellow IR professionals is invaluable. Leaning on your IR peers allows for a beneficial exchange of ideas, enhancing both your own skillset and your company’s IR strategy. I have found immense value in the relationships I’ve built with my IR peers.