Does Hyatt provide material benefits to individual The Standardx franchisees for purchasing particular products or services?

We do not provide material benefits (like renewal or granting additional franchises) to individual franchisees for purchasing particular products or services or for using particular suppliers.

If the Hyatt Group receives any payments from vendors or service providers whose costs are included as part of System Services Costs, the Hyatt Group currently will offset them against System Services Costs. We and our affiliates may receive rebates, commissions, payments, benefits and other material consideration from suppliers on account of their actual or prospective dealings with you and other franchisees and owners of Brand Hotels, but neither we nor our affiliates will receive rebates from suppliers based solely on the volume of your purchases from those suppliers unless we either forward those rebates to you, use them to cover System Services Costs, or otherwise use those rebates for the benefit of the Hotel System or the Brand Hotel network. During the 2024 fiscal year, Hyatt Corporation received $52,108 in rebates from suppliers of food and beverage products and office supplies based on purchases that franchised Brand Hotels made from those suppliers, but Hyatt Corporation used this entire amount to offset part of the System Services Costs. In addition, Brand Hotel network suppliers attending franchisee conventions, conferences, or other meetings of Brand Hotel owners make contributions to us or other members of the Hyatt Group (which do not derive from franchisee purchases) that we use to defray your and other franchisees' and owners' costs of attending these functions.

Collectively, the purchases and leases you must make from us, from designated or approved suppliers, or according to our System Standards represent approximately 95% of your total purchases and leases to establish, and approximately 95% of your total purchases and leases to operate, the Hotel. During our 2024 fiscal year, we did not derive any revenue from selling or leasing products or services directly to Brand Hotel franchisees, but our affiliates collected about $1,249,833 in fees and other revenue from providing various products and services to Brand Hotel franchisees, but not including revenue from any Commercial Services Fee or similar fees for the System Services outlined in Item 6. In addition, Brand Hotel franchisees received $6,572,188 more in loyalty program reimbursements than they paid in loyalty program fees during 2024.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)