Choice Hotels International (CHH) 6 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Choice Hotels International’s Second Quarter 2022 Earnings Call. [Operator Instructions] At this time, I will turn the conference call over to Allie Summers, Investor Relations Director for Choice Hotels. Ma’am, please begin.

Good morning and thank you for joining us today.

understanding would certain remind will predictive to you we this that be begin, its assist call, and conference or in we like you to during used results. Before company the forward-looking statements you Actual important forward-looking and results the risk Forms XX-K factors you in filings SEC that company’s statements and the affecting may other from should consult for indicated materially XX-Q, differ consider. those should information company about obligation no publicly today’s circumstances. date These to and subsequent update forward-looking statements as reflect undertake them speak of we to events or

measures Pacious, and speak and a to of You Executive our of earnings President Investor posted can find reconciliation quarter the operating second website under and Dom Officer, will our second our our Pat press part Officer Chief non-GAAP to Financial our as performance. our financial which is results choicehotels.com quarter Relations on referred remarks release section. financial XXXX morning in at Dragisich, our Chief This

Following Pat Pat. questions. turn to will over to and the call I glad we with that, And Dom’s will remarks, take your be

morning good and taking appreciate We join us. Allie Thanks, the time your to everyone.

growth, segments progress drive month. strategy delivering on in again acquisition asset-light is our value owners this was Radisson The us strongly company. our to meaningful dual for transaction to once one significantly Hotels creation newly the goals achieve Choice’s franchise in to higher this truly and outperformed In in and recycling will of accelerated acquired our RevPAR long-term that for believe the We transaction our for of we a X that greater announced company’s Hotels brands to We growing track transformative capital shareholders. the return of brands announced the industry pleased significant close our while remarkable second business quarter we growing I investment locations. expected acquisition Americas’ revenue travel June, the accelerate most am share our Americas. remain history. acquisition of Today, Radisson to on This enable

forward to to we number acquisition As we drivers. value of closing, the expect a look create compelling

will Americas upper that will our Hotels was locations than the XX,XXX acquisition be upscale strength Radisson existing for the markets. RevPAR segments, to RevPAR for existing Choice’s in due in portfolio platform add and their higher to this In and First, the accretive RevPAR mid-scale higher XXXX, XX% the average hotels average system. rooms over

will our shareholders. combined additional believe our We superior these brands, franchisees revenue and once with also platform, business provide for these delivery upside

set the Americas U.S. business leisure marks Hotels our the markets. Mexico, and room revenue with next and Radisson finally, chapter trajectory. it growth presence And higher our return the our designed community, The familiarity technologies Americas program will in The proprietary Choice for transaction capabilities markets. owners also as cost Next, and West combined Caribbean the loyalty with new reduce ownership. deep Canada, many investment upscale acquisition the a loyalty agreements to performance combined will the of younger companies, our per well pending Coast of expand expand in their attractive already enhanced Hotels owner reach representation demographic after whom the growing travelers. has customer drive we franchise Americas franchisee award-winning addition Midwest the and options on a us. sought higher loyalty hold who for expect The tools will members to guests as regional will and income program, and our franchise delivery improve the benefit of hotel Radisson of in a while in key including from of of business provides emerging with other redemption Upper

and segments been has goal increase revenue ultimately results markets, in RevPAR royalties. in incremental higher an strategic Our which to in outsized open rooms

every a it. In twice the unit our portfolio X.X has revenue the entering leaving generated years, unit new fact, past as for

Our in earnings strategy That provide for solely strategy. segments has been accretive continues not strategy the acquisition. trend unit a growth our and this to are significant that future a unit our pending It growth is business. with growth

and the while WoodSpring entire acquisition growth extended-stay providing integrate acquisition the then Our successfully allowed record Choice’s world-class Americas to a core Choice’s new a hotel pending expanding vectors results a reflect acquisition future franchising opportunities by portfolio. opportunities brand. see with and We upper set franchising our strengthen growth. company’s investments of acquisition mid-scale our the WoodSpring The track adjacent spur grow segments Hotels And can also of successfully. us accelerate to potential long best-in-class WoodSpring owners bringing engine of to smart our to history where we A them beneficial example mutually hotel platform to Suites our of new recent and company our The franchisees. has growth is presence. of establishing in relationships further high have Suites identify ability off-market the segments Radisson

strategic will upscale for The segment that in Cambria of the hotels and our upscale upscale Radisson Americas portfolio. expand and expect Choice’s upscale increase accelerating on to from our Hotel XX,XXX Ascend the segment, allowing acquisition of time, The ideal. around the represents Americas a size will well-known of not us track our to two this result community approximately the business our the at transaction and add the global record developers, Radisson And further in to the of addition bring brands, rooms. same to momentum the level growth could footprint owners enable will build also franchise this very the company’s growth enthusiasm Collection us of We in and next I’m excited in the brands the our fit brands. and of in start rich be the a Choice been stewardship history brand sellers and global remarkable. investor brand to conversation win-win these chapter success. new opportunity, is has cultural off-market importantly, with year-long the whereby the more transaction This unique between companies

second to adjusted These increase were again we’ll that of EBITDA same turning the quarter report compared our in financial results. $XXX.X fueled continued XX% when the I’m from to XX% RevPAR comparisons industry. generated million pleased increase XXXX. Throughout XXXX. provide outperformed we the remarks, growth the results quarter, a Now year-over-year in second first a remainder and quarter to quarter our exceptional accelerated by and RevPAR the to of that

rates, towards with months, growth to by experiences, including XXXX we impressive quarter our continue RevPAR RevPAR across expect which to RevPAR by surpassed same results XX was of the hotel’s trends and XXXX that room increasing RevPAR second third have quarter. only broader segments now are seeing July XXXX. these consecutive our into XX%, which Our growth quarter Clearly, exceeded who we our drive cancellations, levels we for for from approximately located This do their expect and XX% leisure we continue driving levels their in trend an high to we who ability and of we make with and budget studies Not Led American switch momentum our spend consumers continue, shift travel and all to priority business compete. willing also but travel to domestic strengthening recent a sticking vacation travel particularly the versus of continued high beneficial Recent prices seen have trade-offs to our our travelers, to plans plans. for with transient airline indicate to a travelers they over a interstate mile rather majority leisure of group is make possible. survey flight X,XXX are of remains canceling within Based exit. their ticket portfolio responded would indicated hotels trips that segments. the

XXXX are Hotels the of Americas In addition leisure our quarter, acquisition. travel pending Radisson observing business to are travel also for trends In bookings drove demand we travel, quarter-over-quarter the business with favorable levels. especially the brands, in we our sequential increases in context second surpassing that

the addition quarter. component of continued travel In to continues for robust accounted travel, mix the XX% levels in stays our guest second approach leisure historical of and to business

and fueled stable bill. our to delivered and investments contracting and travel from of to business continue to industry remains returns the expect model, historically business infrastructure both capitalize chain the consumer from which our the resilient throughout key to economic additional Choice continue positioned long-term trends expanding verticals We U.S. cycles. onshoring on has in well increase, supply benefits by

demonstrate value proposition, for results portfolio, deliberate our decisions capabilities provide other quarter a platform our quarter. some this that second the the strategic Our and accomplishments tools brand of in made are investments on brief franchisee key have I’ll and and now we segments update off. paying

versus its refresh. continued registered alike. hotel of the to to continue Comfort of has competitors, brand its we this the developers core unit underlying drive since year-over-year in now our iconic XX And straight index brands. updated The strengthen brand’s RevPAR consumer gains confidence guests to First, has of and growth portfolio quarters successful attractiveness product local our brand

and several Our new chapter Comfort locations for our marks in flagship brand. prototype the is now underdevelopment next

during of period awaiting launch, with Our as Quality its brand the last and RevPAR has June hotels the XX with month, period demand year-to-date brand States Clarion XX% XX leader brand the in in In opened a opened additional compared segment. our over Inn key franchise the to hotels agreements of in United the strong quarter still XXXX, with mid-scale hotels versus developer X,XXX to same the year. milestone a this awarded remains second since X a increase continues reached years XX.X% conversions generate of Pointe a of in The XXXX. over same increase through

and segment, invested further continues of also which unit our growth. We a in the be to significant extended-stay driver RevPAR

pipeline year-over-year in compared XXX levels. hotels second XXXX over a agreements, domestic to and increase XX% domestic extended-stay franchise awarded quarter, extended-stay increase XX% Specifically, a expanded we the to our and XX

expanded the distribution doubled openings WoodSpring of by capabilities and than we XX% year-over-year. XX% of brand’s of domestic and number of the in marketing us but Our Suites driven as half year, over quarter XXXX, first Not XXXX period rate. in also achieve more over brand end In agreements investments of growth compared the WoodSpring in the has of executed occupancy over the second to RevPAR exceed Suites by year the and levels. brand’s year-over-year the XXX properties reaching same the XXXX, to this to expect pipeline we of only significantly both June, the increases enabled domestic

improved Suites the hotels with also us guests. also they into to approximately of amount to acquired and extended-stay an would Capital X that company. that future approximately portfolio partners intend to new Starwood first am hotels Suites legacy we bulk these to WoodSpring Blackstone to in they hotel prototype current our to that the to estate attractive the Suites brings As quarter, entered provide result our brand I prominent that brand interested you royalty XX hotels fees the first-generation further WoodSprings and represent the exit development WoodSpring may We Recently This the be an XXX of see estate our and these agreements value cash older profitable properties time two in these hotels recently years develop replacing of XXX not WoodSpring hotels. in pleased from most highly this brand hotels with development. place experience of are reflag WoodSpring benefit transition opportunity the purchased company. owner a The of will scenario who by are real we exiting country’s acquired highly for operating as Blackstone at and an real aware, September. majority strengthen the a notified developers. surprisingly, for This commitments owners own in report markets hotels of new that in Choice. future and construction Starwood

first mid-scale year. newest its over of contracts of additional track pipeline projects community continues brand, significant Our next already the on domestic to growth The for Everhome new grow, with construction in cusp to in the the with hotel substantially compared for to extended-stay this expected and month. a option open Suites XXXX last number appeal is higher development XX on as

Everhome average we expect about of years. to XX number the over of an optimistic we Suites extended-stay of hotels, Overall, X growth brand hotels. to more over at recently the development the bringing growth investors remain than in our the extended-stay rate XX our more very with extended-stay than segment next units the this to and one secured new increase commitments annual to a develop In addition, commitment largest nation XX%

The growth in Cambria RevPAR upscale We percentage with brand executed where than we designed end year-over-year. additional pleased introduced number the active community has quarter construction and domestic also the our by of segment’s of units brands same Cambria portfolio, of the upscale pipeline, agreements XX as of XXXX. agreements The opened, the developer XX the second been our are At period with under the new same points by secondary X nearly time, XX expanded XX franchise projects doubled Hotel outperformed versus the more second at an prototype the received enthusiastically in the June. properties the markets end recently quarter. of including leisure signed for to with

expect Americas for will the enable further market, In acquisition that to Cambria’s additional pending creating addition, penetrate Radisson catalyst growth. we upscale Hotels the an us

We contribution also Existing proposition from more XXXX guests increased to our cost. been their With distribution owners. the to owners the through growth to brands and to delivery as improve continue system. our significantly quarter revenue the enhanced in Business remain we able continuing XXXX at drive in to through deliver franchise value this to lowest renew that XXXX value profitability improves of their are have compared recognize capabilities, second and our we in brings choicehotels.com. our increasing it agreements the into hotels owners’ as channel our

rate. the remain franchise relicensing And fact, franchise renewal voluntary to seen as finally, our continue Choice quarter and marked franchisee with X the for retention quarter over past in our of contracts the years. In industry-leading highest second owners XXXX

over Index our I’m We I are diversity, we bright want prospects report proud especially integrating done into Choice. strength earning hotels for people how to have Americas it pleased quarter, the relationships Choice that of perfect certainly about these our the everything year our we pleased brands award-winning not the of digital been future growth best in equity leveraging powerful we’ve closing, on and of Equality and of a part With again In convey this the will accomplished it named look Hotels accelerating with belonging. without to and the around scale, are of centered franchise forward that, for CFO. Choice’s have family culture but third of ahead I Dom? to as we could Disability We recently disabilities, row. to the these places work owner score platforms. one network the by and hand Radisson a for a to

you everyone. I’m today our morning, report pleased financial quarter good and Pat Thanks with to performance. impressive very to be second

what on comparisons lies today, on approach. to liquidity profile Throughout expectations Specifically, ahead making will second insights additional and I provide be and our update you XXXX. quarter allocation remarks I’ll share results, performance our for capital financial my

However, I XXXX. for to RevPAR will continue growth, to benchmark

release. our not For XXXX that RevPAR also comparisons to please note pending refer to to impact would guidance does acquisition. Hotels Americas include positive press I the Radisson forward-looking our any like from

This marketing $XXX.X impressive increase resumption million. quarter the adjusted the XX% revenues, primarily as result, RevPAR. cost $X.XX second effective versus adjusted with performance, rate were earnings turn a period royalty to X disciplined like RevPAR of same the despite were our For in EBITDA convention and strong total fees $XXX.X of XXXX SG&A management. now reservation adjusted million, adjusted beginning of the EBITDA our second the per XX% an slight second our a I’d to a increase period XX% levers our annual growth continued compared share revenue to excluding grew in XXXX, XXXX. the And quarter, to was key growth increase driven system due expenses, to of and same quarter, our for by

our year. achieved first increased acceleration nearly average to the XX% Our daily second quarter growth represents same rate quarter of for of domestic RevPAR RevPAR of also This in the quarter, compared by XX% the the XXXX. gains this with growing an

calls, more intense strategy revenue and is extended-stay the across segments. As from higher driving prior mid-scale remember and on brand focused upscale, value growth you our will our

capabilities our by second average in X us XXXX. enabled compared the growth quarter-over-quarter strategic segments percentage to accelerating nearly the in outperform proposition investments these Our and value industry quarter have rate to growth daily RevPAR for as with points

advice as currently pricing customers, franchise quickly new as consultants, execute from believe rate we of for to the are us and optimize strategy Importantly, reach well the which to thanks we inflationary our remainder will is provide capabilities tools allow able to are to target the growth expert revenue enhancements that management effectively and in our and management owners their XXXX revenue award-winning further right tool beyond. We our this environment. critical deploying the

to strategic and our Given full RevPAR and ongoing full compared are the to XX% and trends, the XXXX RevPAR optimism, raising as our increase initiatives XX% of growth end strong RevPAR continued range domestic expect year XXXX. we year bottom between now

Our be effective our growth. of a significant also royalty rate revenue source continues to

attractiveness for X quarter, investment continued royalty our X validates to year-over-year. rate With proven our X% points strategy June the the to reducing our for effective full year-to-date capabilities brands. effective This value domestic of basis once consistently deliver increasing behalf to top XXXX of again through line and exceeded expect investment year-over-year. of second franchisees, our our continue strengthening further the owners to we for while on points and cost owners basis franchise total ownership, proposition return the X maximize strong quarter performance of rate on royalty that basis Our year our long-term points approximately revenues proven seeking grow Choice’s

The where our and to revenue absolute size intensity unit hotels of key lever its like is third discuss revenue advantages. portfolio’s the growth, I’d are

XX% expect Americas the the the about prospects and of approximately number Radisson integrating excited global our Caribbean increase Mexican, are Choice Hotels and XX,XXX Canadian, family, Americas presence rooms key We our markets. extend in over which we rooms will to by other

existing Hotels the Americas of portfolio brands runway that connected growth the future Americas our capabilities, performance improve for Radisson reservation not a will brands. delivery Hotels X create but Radisson We we as into of are powerful optimistic the are only also

by that at by stay extended XX of brands underperforming departure year-over-year X% the and Hotel XX in growth quarter, beginning excluding with assets led points discussed the portfolio, units year’s our Ascend existing This our last AMResorts XX termination the Collection the For we the revenue basis second quarter was from our year-over-year. grew by over of second year. strategic intense of expanding

from full nor value to overall trends segments choose XXX the revenue performance, as strong the to XXXX, proposition Radisson the new our XXXX RevPAR the year intense and National to not intensity a Americas exit of Hotels expect For we of Suites developers our we transaction. X% in growth more versus to operations our WoodSpring X%, multiunit onetime agreements, year, unit year’s awarded between hotels revenue impact franchise domestic pending of In improve to continue. including we range continue Penn their brands last seek long-term and hotels. the expect excluding boost the continue the of by Further, portfolio half value seen acquisition. broader their competition increase of the first they Gaming Aided XX% the and the year-over-year,

also Our developers the increasingly are industry. the optimistic of long-term lodging fundamentals about

for year-over-year balance beyond. now new our very sheet. that projects. domestic hotels, are quickly increase turn nearly agreements sold conversion to than the are see I’d X for half our X/X throughout construction like nearly of expected more the in time, and new first growth continued the we to XX% the first brands A of our year-over-year. Specifically, the prospects open strength half the in the pleased agreements of months confidence our of reinforces of our franchise throughout in to were XXXX the to same construction increased At further XX% demand year by applications year, new for in year the first which

we we pre-pandemic. we why the even believe of than stronger today major company are One were an reasons

the available of of bolstered More cash completion in of to the billion revolving to Even the quarter line Hotels acquisition, capacity has at Our credit second the after facility. expected Radisson strong. impressive $X.X liquidity had Americas borrowing of liquidity allocation through resources is the drive company its and remain the outperformance our end performance XXXX, top specifically, and company’s position. further effective

form Radisson to gross continue our stock. our $XX quarter Year-to-date Xx. with Americas the our in target expect of In of through shareholders a the blackout we acquisition level pending of the unable through million back of Xx repurchases dividends to of balance leverage debt-to-EBITDA to second best-in-class we a range end low the to maintain repurchase share associated Hotels cash to approximately fact, transact with were and XXXX, June, to program. common announcement, returned a below we sheet our In due

Moving future forward, capital of all our capital in expect pillars share we including to returning allocation repurchases. shareholders to of use strategy, form the

recycling In XX the And of assets, capital and ever. million. of the than I most secured expect our recycling also report $XXX our pay more efforts year agreements Cambria sold June to pleased we XXXX. also also stronger million, July, to approximately this XX-year two with we that am are franchise We importantly, level respective double than own of to dividends buyers. $XX

EPS our levels. full XXXX significant to international EBITDA XXXX pre-tax prior at the pending growth which have Cambria rate closing excluding adjusted first drive domestic tax the the expect XXXX above our outperformance slightly XXXX half transactions, than of earnings, was investments development projects in year these and and acquisition, continued will recycled the Radisson rate of higher taxed $XXX are elevated. to operations, for Hotels over Following a impact Americas we in of Even adjusted in XXXX. of million the in during Due both we

the the to remainder expect continue for year. We this trend of

EBITDA Finally, continued full above the adjusted and Radisson Americas year in to Hotels XXXX we levels. for acquisition, margin growth XXXX the our impact pending of drive excluding expect

for opportunities to we enhance By We We strategy and we Choice. investments. to are to scale revenue to growth companies creation operational Choice’s advance to the come. forward benefits additional their meaningful efficiencies of expect the bring leveraging and Throughout integration and for about value to and years updates expect of returns remain value to to the of in In us help are bring drive look long-term we further combined the vectors, enables and our drive results of the call. to with our franchisees expansion levers. cash have in attractive multiple and the process, excited November Hotels proud strengths the accomplishments we owners committed growth outsized our Americas with opportunities to disciplined to are of Radisson years strong drive achieved believe we and business substantial in this during operating which Coupled would any next balance allocation you further will resilient and confident strong results through we us strategy closing, be returns levels and allow long-term strategic deliver our sheet, questions. generate earnings to approach ahead. answer the on capital model, time, growth capitalize providing Pat I happy these to continue Operator? At and

[Operator comes Instructions] go today Baird. your with Michael from Our question from first Bellisario Please question. ahead

morning, Good everyone. Thanks.

Good morning.

Radisson, for ownership brand question to to different there then more Who going you the that structure? do consistency is globally? dual first The international ownership portfolio. on of just really be in you going that how some Can a is kind own provide the what? relationship manage details And on group of kind importantly,

Sure.

at the this in benefits we look it. talked remarks, you about if of prepared So strategic obviously, acquisition, the

are We acquiring the operating everything in Americas. business, and the property, the intellectual the outright brands

council We’ve said, business mid-scale. region. Choice got grow delivery with aggressively full sheet, right grow a in we engine. for to strength consistency And that and with with that network the the they in we what to the in right to segment brand brands the company to got balance for brands. remain had result ability the got in do Hotels going growth they conversation that practices, the it best key will the strategic spur us a our sellers. a And world. We’ve them upper is in owners. ensure the of and the the is call right this we established Choice have share part are future upscale our of our we So They What the globally. of of really that for we had the segments looked year-long is the the at ownership frankly, created right It’s brands Americas

it to to we with Americas we that the brands brands. relationship sense. standard grow working the these globe nine flexibility them ensure have a is there a these means that will markets in But around have makes have the So also

sense the by the stay If you and and you travel the same brand, size brands. differ so in driven room here in that regard Europe, in Americas. the to with is Asia more and the the And and by than the across consumer world real to in makes estate Obviously, what a you Europe constrained are you’re in lot developer amenities for expectations wants of what build. expectations

So rest of that with Hotel the the in relationship based have brands that’s really the manages the Brussels, Group for world. Radisson we over who will the

then That’s WoodSpring quantify then mentioned. it. how rooms? or be? many Got And the helpful. fees And the just on deletions you Can will hotels you what foregone

would in September. that handful may we with that this in will a owner you own in the The that given of hotels. acquired will flux. large, the But little those single There bit total that exit the way us So number all it’s XXX. by at XXX a saw potential and scenari, later a be I of number depart expect when – The a to a have the they that exit medium system. today date. we term is They the depart bulk indicated brand, as have

liquidated damages paid with to will So associated really the exit. a royalty fees, X the upon is, that of Choice years that fees representative of be

and September with assuming October be call, actual able in Choice, to in the leaving, our clarity the to on actual have exit we scenario, stays number track November we payment around Michael. that everything once will are So probably report that

just in of the about year, rate far what July mix segments you’re Got plus it. for talk seeing Thank the quarter? me, plus just one across kind you. And of was XX%. I then July? think, and markets quickly Can last And you last on third XX%, July across so trends, and in just occupancy

actually has July, in seen continued you’ve Michael. QX What Yes. into

all almost with occupancy almost QX, your basis about So ADRs is a by flat. up obviously, points notch, purposes XX%. intents down for XX down was just and essentially, In occupancy

slight a little into July, what on that probably a QX on on – you non-ADR, just expect formal provide continue QX trend to But seen continuing we down we the notch in look seeing RevPAR guidance. reality in on QX a You’ve when at is saw we’re XX% that heavier bit you continue when XX% occupancy. But didn’t QX, into take maybe well. that as

helpful. you. That’s Thank

comes from with question your Bank of next ahead from America. Asad Please question. Dany Our go

to good Pat morning, and Dom. there. of train thought going just Hi, that last on I’m continue

continue, make What that unpack balance this What like help go right? year? the potentially can better? outlook can outlook, it could that for rates outlook and go assuming the So conservative you look also what of can what could like us RevPAR make –

Yes.

as looking when of we’ve of sort I seeing – strength is, office, belt maybe the are what to the this better got this to transient up so to probably a normal in different which kind than a similar likely return which think, of we’ve growth. And XX%. an of of really beginning we’re starting think here, economic business back experiencing under of I our what QX little could particularly here RevPAR companies, make return is I really been economy to think at the to around and we’ve a we bit get saw to month year What kind to travel ago group, start all as build start kind see seen quarter-over-quarter. be it is pick I that mean QX, we’re it’s and

bit economic of are slowdown. think a seeing little I you

out they to game need say, coming we here. businesses get So we back need the their forces to are hey, on to sending sales are back and

which a So RevPAR from we is think seeing, a I upside perspective. on motivator that business the of that travel, we’re do business transient trend be more see return, could nice if the

So does that QX, into we’re that we’re as at really and the that are continue QX traveler with things that the sort or in demand. would we looking those probably increase be get the business quarter-over-quarter return seeing of trends

shoulder recovered the for you Got ahead fully like spending – that or of leisure but closer seasons seasonality are we like or Are it. return as we levels, and of in either of And traveler ‘XX kind like it’s of any seeing any form anything across the then we’re whether that? of on in or a closer evidence weakness segment industry.

of Dany. that categorized And looking a fact, weekday. I weekend trends our Sunday Friday, Historically, was work, remote Saturday. just as these business, night in at longer-term not, We’re mean is

Thursday, the to of night continuing picking on see up. Sunday occupancy more We’re gains so also Thursday that but shoulder and than is week, rate

here I think the I days So the trend is was to go in this it’s strong pandemic, in remote but week. back X it be not work everybody going It don’t of the think to us. do working a early as for to days as stay office may

of flexibility going workforce that stay certain allow extend people out to the the Monday and to of I travel on continue weekend is Sunday morning. parts to think check and night through

to So month interesting of see back get of will pre-pandemic. on But continue. the retirements that are looks be going calls, were we what It as the is I to I’ve whatever they said to trend think normal like. seasonality the sort prior again, triple new as

have who are in people who U.S. not to the wherewithal the more you particular. and in just working So have travel

aspect these better health. are particularly That’s living and And they outside particularly busy for for summer retired of a longer, – balance demand for travel leisure healthy from growth our are have boomers so perspective, sheets, brands, in a travel for particularly nice good, who household of runway of they are that the demand, us season.

I money reflags, be it’s particular, whether bit have in conversions being or I earmarked WoodSpring the you are can anything plans? kind more your capital And sneak but damages buybacks liquidated like in more, potentially in, if for already one they for or early, – know it Got for little or size, anything earmarked one of them that key might a of it.

do growth, that I WoodSpring We in demand. – is a is for the at when mean brand. look this brand we would don’t I discounting So this

owners. when which so replace And And the these remarks, building been brand we’ve demand. new really essentially opportunity, particularly this I model, I drives as markets. my at is prototype, runway to since said for in returns and being a prepared look is exceptional given that for X-year a XXXX in operating later, The the these we’re

right we these focused markets the hotel in of right be the a lot get will sure time the spending So we to owner. location obviously right with on make

a Dom, don’t look that have probably us know, would I financials use our far better better QX to like. for be As of once of capital, it do it what will you we about in talk as sense have... the final

years Radisson still coming you level bit were obviously, our of X the is this we’ve I post X QX, than that to on see with to only in basis a LDs is even mean we also you great The the of reality the continue actually, the would a Americas, if asset, years Yes, QX Dany. sale X.Xx. say or earmark little at gross of seen about capital leverage going into the be anything. Nashville And I acquisition more reality thing mentioned is it’s specifically funds some for is recycling in. going with of our

So million to to have to to on going that debt about million get of of you’re X that ratio, to end $XXX this even target bottom business. leverage put $XXX Xx to

environment living now. not capital-constrained in we’re so right And a

So there specifically. is really no need to it earmark

you Got much. it. Thank very

you. Thank

go Robin next Please Farley our with question. ahead from And from UBS. your comes question

shovels Great. know I little in on a about to signings record more I can record in commented underway. companies new terms conversions some Thanks. those if the talk construction. pipeline led than is – your wonder the your haven’t have of ground other bit projects But getting fact you

on So color can Thanks. give any you that?

Yes.

a is of the the reality broadly the move that So a look more XX% – Obviously, little conversions the when you about speaking, through the over Robin, composition pipeline pipeline, at lot just is of conversions. quickly.

anywhere property conversion to a X a or up month open from or so. could You X months to

of cycle. as the opening just so many And in not seeing terms we’re

the side rising side living delayed a conversion construction of more that cost pressure with seeing new on Obviously, the today you we’re and the We’re not whatnot, house. of the little on house. in are seeing those bit environment the

So a those like Maybe pushed out But growth the new X extend unit major basis. net conversions yes, on on that timing typically many and what broadly things side. could you some year-to-year are impact getting speaking, a projects, was we’re expecting X-year seeing open not a to permitting years out. on construction new we of the how algorithm just of because construction

follow-up about as was That’s Great. just curious Radisson. the I also comments a question. And helpful. then about

Choice Pat for be maybe does curious, the right the that for sheet sheet existing those sort to than of comment And balance you’d your balance Thanks. has that I’m brands, have think that made you your acquisition? more done that what using grow brands? I imply kind of

Yes, we’ve segments. I growth higher exciting into mean, Robin. thing effectively earnings the company the these repositioned is

and revenue core Dom lot I – and that’s a So we months, stay business, the system. extended our if in, the XX system you look talked every think upscale. if everything brought you of the about the talked producing in about twice back last leaving is unit

Cambria. So push nice higher our Radisson we’re balance revenue that The that do want a these flexibility. the it up we’re brands, in beyond ourselves our sheet is, about today is, balance the us really us upscale, gives if into want If to core use repositioning thing where segments. with sheet and doing successfully we intense we way upper to grow helps

brand which we convincing work a in launches, When these effective successfully and putting way is We’re the are. you in Everhome. with you’re in balance model today particularly sheet doing very of owners long-term, this to for that that game, some asset-light do an skin the putting your

sheet the incent growth some that opportunity balance brands us that of So are emerging. gives to in these we capacity that have

and this have balance the So the our get our levels stewardship repurchases that’s flow over power to business, to like. years go the financing really generating to the had that the reference I’m cash having we in regard current sheet acquisition the making there. that with share and of do the dividends of capacity engine out to and effective speaks we leverage and without Plus

strategy to to your situation off powder really of below had that literally EBITDA. be acquisition we’ve back do target this our an sort think I to So and paid regard be with able size levels to of this that in dry discipline keep to then debt

we the if do transaction think need that’s flexibility to will ability thing our again, as pull gives us the our growth about it. new So nice really we segments said, capital give that one having I to it as use lever And the more about growth this engine to in business. close us,

very much. Okay. Great. Thanks

your next Our Patrick question. from Truist. from question go ahead comes Scholes Please with

good morning, everyone. Hi,

Good morning.

Southeast. question, acquisition? on Historically, of first exposure My Radisson, in more what will geographic you’ve give the us How look post concentrated can post domestically the you’re an will acquisition that been update like? you change

And Those current are in will strongest. give more where West it Coast Yes. portfolio to point, the two Midwest. are us on areas were across presence we we Midwest. Patrick, your Southwest the and is Upper that well. Radisson the – underpenetrated Coast on we Texas the into in Southeast and really and sort over-indexed as of particular, But the the West in in Upper the

strength. joint portfolio. gives direct then So In in nice And Canada. venture. again said, be it doing us as Canadian will a geographic XX-XX our we franchising It’s we a current

will Caribbean the America. opportunity Latin we more So well as in have more rest the and growth of Canada units and as

certainly, it’s areas a table. the in the to bring nice to fit we So we feel same geographic And that a have sellers way. lot felt the

nice to to forward. a aspect think the it’s I going be geographic complementary business going So

here. bit then And of a little more a you. question thank Okay, technical

rate Obviously, for run was line the the So XX% what’s fair the the acquisition, of SG&A probably post up you. – to quarter next including Thank the change acquisition. year-over-year. that’s But about and going what’s the SG&A year? to in a going year rest into think

bump to of Yes. in was I’ll annual it return Really, which our did we May, but the the convention, pass Dom.

you when comparing just speaking, oranges broadly So bit, a and at look little apples – a take you’re Patrick.

the at think comp you when So levels you better the you’re highlighted. probably against look, is I XXXX. that up a those But take

X% about by down actually XXXX. versus We’re

be from cutting that talked about And on so long short would previously we XX% our we anywhere story to XX%. SG&A that,

digits in layer on that when range things in mid- apples-to-apples of the kind So single talked basis. we SG&A our which range growing we’re really you that high that was an still before, in to about

today. our Radisson a a I analysts acquisition, business business and XX% take margin just as to lot are at folks post is the a that’s lot forecasting. well and think feels and that lot like a looks obviously, look what what are on It of really investors business a when XX% putting the of you

historically from mid-single speaking, an to has SG&A by so on our grown low basis. digits annual anywhere And

again, on business. the growth of Now this we’re focusing

mid elevated mid-single SG&A single margins to long-term, see to call you to So low to spur short-term. maybe you to grow and the broadly But that it, in some you speaking, to digit the could digits in see growth at expect expect range. expand continue historical,

enough. color. fair you Okay, for the Thank

Thank you.

comes Eric question. our with from Jefferies. question ahead next And go your Please Field from

Thanks, here I’m on for good Katz. morning. David

for your growth Just strategy synergies affect curious curious maybe can or with on strategy change an Canada, latest I how about for Radisson update might how am that you?

Specifically, about Eric? Canada,

brand was higher moving our your to upscale focus I that if strengthen like or shift revenue way? Cambria, maybe intensity wondering or would About

for nice are is The from Yes. It’s be that a corporate Americas effect network program that in added will the additional our loyalty business million to XX Radisson adding be which members business that accounts of members a perspective. will and the travel XX. the Those value we only standpoint travelers, income, higher going accelerate it’s of and the business both from Ascend Hotel proposition business we skew Cambria the Collection. so the opportunity have skew engine, delivery those combined to that

space, Cambria and Green hotel, If the Sign much full-service is a more is a like. F&B Radisson the so you limited meeting service Radisson, hotel. remember,

nicely. two will brand coexist – that on really local as business the call it, focused kind tailored the the feel of brands we and Cambria is So the But traveler. casually

the Ascend. the higher than in what it of Radisson are business you Cambria already core consumer accounts, income, help I the be is different So going all Cambria, that corporate that nice brand. and accelerant to feed is capabilities, in a see But and a both delivery growth think we for consumer seeing the the that will

Understood. Thanks.

[Operator Instructions] comes your Please with next Morningstar. from ahead go Dan Wasiolek question question. Our from

morning, taking Thanks for question. Good the guys.

deletions. to WoodSpring So the just back going

how now, growth guidance of kind on the Any possibility? to unit it around X% net Just kind think of trying of is of of deleted Just to then sense or units of year-to-date? X% realm Thank of from one that? color wondering you. opportunity. growth kind And maybe of represent maybe that fees years a ballpark these on of in is the a couple unit question get long-term still if kind –

Sure.

the strategy every perspective coming fees already growth, over unit that the – look X% which from the if at to is worth unit what our So that’s is achieving, leaving is years. X.X estimate twice a in about you unit we on exit. every is what are right, With past regard

WoodSpring, quarters growth extended our that weight at is of brands. three our pipeline, it’s at brands unit that look Inn, X.X%. if that our of which We that our revenue already expect stay do you’re upscale Comfort Cambria, and you If your kind X%,

deletion that is what everything every of half So really coming is in.

and look you’re the earnings in where at up repositioning just brands, years, units growth again, the where is company coming you growth that think these number, in really what be take are RevPAR look a of unit of you – our that really the actually leaving if look The into at to net unit at reflect segments. Again, the it sort what the higher RevPAR we’re the we’re when look doesn’t of power effectively are creating business addition units earnings sort So weight coming already and because royalty, do you RevPAR, revenue is which unit I we it, going segments. accretive, you how by the higher need these Radisson the to there. to higher power growth, higher at

and Okay. That’s helpful Thank clear. you.

for Pacious at additional back gentlemen, any I’m showing no I’d like questions over remarks. And floor time, this Pat the ladies and to turn to closing

a I thank again day. summer, Have enjoy of your you, your thank we your great operator, in fall. hope Well, of morning. all and will to rest Great. rest of talk the the this time you you and you for all

do with that, conclude conference today’s thank We you we for gentlemen, will and joining. Ladies call.

disconnect lines. now may You your