Host Hotels & Resorts (HST) 2 May 242024 Q1 Earnings call transcript

Good morning, and welcome to the Host Hotels & Resorts First Quarter 2024 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the call over to Jaime Marcus, Senior Vice President of Investor of Investor Relations.

You may begin.

Thank you, and good morning, everyone.

note to of federal be please today comments securities begin, considered are forward-looking we that the many made laws. Before statements under

statements not risks statements. in subject differ cause these from described our forward-looking and with publicly to SEC, As we update expressed, are revise filings future results to to uncertainties and these numerous those that obligated could the are or

discuss hotel certain adjusted addition, results. non-GAAP information, we on In FFO, comparable today's such EBITDAre will and level call, as financial

You earnings are can our President and Financial together and on Officer; the information Jim Risoleo, with with reconciliations and comparable GAAP in to directly Vice call President information find this and website filed the at information press X-K and Executive Executive financial most Officer. Chief in Chief Ghosh, our hosthotels.com. With SEC yesterday's me the supplemental Sourav today's release on

over With the like to would turn call to that, Jim. I

In us and Thank and thanks Jaime, business morning. $X.XX, $XXX per of adjusted adjusted Hurricane you, quarter, which for FFO million million from share Ian. to joining we interruption $XX of EBITDAre of delivered this the includes everyone proceeds first

basis hotel interruption while XXXX, underscoring was year. We revenue above was adjusted X.X%. our first quarter points, the year-over-year comparable per out-of-room the a delivered continued declined of comparable improvement of Excluding EBITDAre XX X% RevPAR business and the of FFO proceeds, adjusted last strength our X% share RevPAR above total hotel

tough First year-over-year particularly faced quarter comparisons, RevPAR headwinds in from Maui.

portfolio RevPAR. basis an drag XXX quarter on Maui points our had RevPAR year-over-year first in actual decline The of

Maui the basis to wildfires given Fairmont However, renovation first of disruption Lani portfolio as RevPAR this to understates have the impact in XXXX. expected points in true quarter Kea at the growth we XXX contribute the would

estimated the total RevPAR XXX quarter is of on a basis impact the points. wildfires first result, As

points headwinds, Despite Singer impacted in renovation also our RevPAR Florida, by the resort. California XX.X% at and margin and hotel XXXX. comparable was oceanfront EBITDA first XX delays these of unanticipated above basis weather quarter unseasonable Arizona was

As our which a The XXXX. operational first discussed results portfolio, in Ritz-Carlton, hotel refer Naples to our excludes quarter reminder, today comparable

Alila while quarter end Big a from collapse closed At remainder set after included has in for currently X it it and of our the we the second first quarter. expect to in results, of removed the is the our March. been comparable addition, Highway reopen In is portion Ventana hotel Sur towards late this time, the resort of year

evolving continued to of During the demand nature first the on by be Maui. our portfolio results impacted quarter,

reached Our million insurance $XX now business guidance. and wildfires risk an and between $XX carriers are of and management team has year related to million the our Maui proceeds agreement our full interruption including XXXX with we

this quarter, room revenue noting available year. a room quarter, is the leap nights. in room that business for first revenue X% as business per to segment mix mix. growth as are Group result available the grew It to driven referring Turning our worth we revenue by per of

driven comparable steady and our with contribution. Other the revenue resorts bringing food total remained room cancellation elevated and same Our to revenue the rates available XX% by available noting leisure $X.X our revenue beverage banquet assumes the that Food revenue business on XXXX, of room out-of-room touching for proportion. to is our first by revenue including per other worth year compared and an compared high nights last nearly books room our XXXX properties room Briefly up grew rate our to group per came to nights per available fees. X%, quarter It year. In spend. pace last total resorts. XXXX compared XXX,XXX quarter, the year driven catering Maui attrition with the and up time and in the and in group XX% transient definite grew booked and both X similar in group nights transient driven a by X% at revenue guidance over room X% room from for X%, on beverage first and year, all-time grew XXXX million,

spend as non-room non has XXXX, guests which has our from Since revenue shifted more substantial and properties, steadily benefit complex, guests. grown towards portfolio higher-end both out-of-room from

as fact, they teams revenue may at the strategically total [indiscernible] room there property instances that our the picture. focus be In hotels forgo on rate

The its is of impact which achieved the RevPAR. positive resort first RevPAR half spending. the Ritz-Carlton, Naples of example total clear of $X,XXX a only quarter, $XXX, is out-of-room In the

As a Easter result to resort were transient of level beverage up and competitive by XXXX driven quarter posted outlets. In XX%, food the the set. the and club revenue in by week's rates our by grew compared renovation, meaningful expansion March, aided rooms above and best revenue XX% which driven month transformational was ever, its XX% RevPAR,

to Travel to It Leisure's List, is proud named and that truly recently are we was cylinders. it on firing all say resort the and addition, In

Fame on assets District. combined a University Turning Entertainment drive in of in top XXXX The on to the Lower the acres results, Predators, million Vanderbilt portfolio. The silver of It foot year music room on is capital rate rank NHL Nashville home X-hotel Centennial the simple across cash. directly newly $XXX and to stands XX or results. RevPAR announced in Park. multiple University, a by to an are Bridgestone of Hilton the Suites approximately EBITDA Embassy X.X XXX based the XX.Xx in comprising RevPAR Tennessee Country of sits Downtown opened which expected full estimated estimated X.X Stadium, State fee XX-minute properties the Spain further Arena, XXX of per X.X% a improving and Museum, in within XXXX, the and interest of $XXX, cap million XXXX of X were and EBITDA of a each square Music Hall acquisition Nashville, LEED with simple room, from of Nashville city Broadway $XX,XXX, our among fee adjacent Nissan represents approximately convention we Yesterday, center acquisition key expected complex quality allocation. the $XXX complex The built the Hotel price Nashville, our

setting. The offer a The approximately City with XXX mix. X hotel separate a X average guests food elevated and in Music at with X life Hotel, an properties oversized rooms XX% outlets, that of [indiscernible] suite square XXX combined the skyline which night complex has provides rooftop feet exclusive views beverage including

convention of include studio while a a absorbing even had XX,XXX amenities a the Nashville centers, spa, shared XXXX bookings XXXX, is ranked X.X%, United States events the and record CAGR future It destination continued in feet by promising #X to definite set has market numbers of the convention fitness the with and Other years. From square in larger supply. meeting hotel attendance attracting space. center X yoga new RevPAR to

also demand The NFL home generate Tennessee Titans, zone is the new sporting expected increased to and of the attracts stadium year-round as entertainment with activation. more Stadium, Nissan events

has billion satellite the United another Nashville recent passenger expansion gates. in XXXX. in current already addition, with airport and above international expected The traffic the $X.X completion And States underway, expansion with $X.X gates is X XX% fastest-growing In airport added XXXX. X billion

continue planning Suites XXXX due by select the provide product in yet Downtown from in metrics, in Downtown to believe Hilton believe stages our growth we combined X scale. starting timing Embassy of We most to their requirements, XXXX but value differentiated guests. With Hotel comparable expected acquisition, quarter. to are stabilize Nashville approximately the chain the the creation which and offerings, and hotel Hilton be EBITDA near-term in value expenditure customers generators service Suites in propositions XXx Embassy supply Nashville, central not and the supply future XX the additional the Nashville and X multiple at included properties location and frame, diversified capital the portfolio. distinct for to our is are demand Nashville Hotel will no highly the time to to driving While projects second included expected in by are Due Nashville guidance the the and will the

of for expected ownership EBITDA FFO adjusted $XX our XXXX. and acquisition period, EBITDAre our which to The adjusted guidance for included is is million in generate

transaction Looking activity. back our on

EBITDA in capital accretive recycling have us at of XXx full continue capital billion $XXX expenditures. off This a disposed a billion foregone We estimated XXXX dividend of and of XXXX has $X excess since XX.Xx including allowed year on million levels acquired our billion assets as we and of of adjusted adjusted to at multiple EBITDA $X towards EBITDAre grow $X assets EBITDAre. multiple path the

and relationships of and acquisition continue demonstrated, we believe for on uncover capitalizing $X.X well acquisition As post-quarter more will have we and value-enhancing net opportunities. total After size, we leverage Host continue using our available scale liquidity we positioned X.Xx, to transactions, have adjusting billion opportunities. of to is

reinvestment. portfolio to Turning

$XXX remains $XXX ROI redevelopment, to million, $XXX Our reflects repositioning which for guidance expenditure investment XXXX to capital million projects. range approximately million of million and $XXX

During quarter, Grand the started half first guarantees the in Grand XX renovations which transformational to from expect $X XXXX. We we and $X Capital Washington, we Hyatt million the of program the in at Hyatt, the Transformational Atlanta to Hyatt, first operating of expect the complete first which received quarter in provide offset have to for XXXX, business additional broadly, we portfolio. completed million an disruptions tailwinds related our benefit renovations Capital XXXX. believe Transformational to the program Hyatt meaningful More we and we since

gain renovation that X.X to operations to the hotels points. which is in RevPAR of is post Of share points, X excess gain the our XX date, have well index stabilized X of targeted average

is Wrapping well positioned outperform. up, to continue believe we Host to

XXXX the other EBITDAre has Our and successful us strategy adjusted deliver allocation capital per REITs. outperforming above to full-service levels, XXXX FFO adjusted lodging share allowed

remains levels. international our demand growth portfolio We are for market. We our supply investment-grade our business continued are scales, the key transactions differentiators. historical increased in The in picture activity balance chain diversified transient sheet, reinvestment improvement markets and our the believe EBITDA which imbalance, encouraged demand improving profile, by portfolio continued and and our the below

have can do will we and continue demonstrated, to all. Host it As

XXXX now will I discuss our turn additional that, Sourav call and detail to over outlook. revised With the operational to

quarter Building will guidance and balance sheet. our and you, Jim's on morning, into our good updated comments, I XXXX Thank go on detail Jim, everyone. first operations,

delay point mix. transient and demand and that XXX business of in had comparisons, first renovation evolving in per estimate Resort. with the many X% to Maui a available delays compared nature unanticipated Starting Maui, down the XXXX, in the weather to revenue basis quarter. we at was Overall including of Oceanfront transient impact the unseasonable markets by RevPAR driven Singer room tough quarter the Combined, renovation

is rate However, leisure strong. still

courses. golf revenue food first rates set quarter Transient resorts outlet at resort first our the grow of over the of revenue quarter remained and levels last to the beverage despite room Gulf year. in XXXX and impact X years per from the grew Maui occupied the resilient continued our at above XX% record last

Looking in holidays ahead Memorial over room the overall and pace high up revenue weekend, quarter, for is the transient excluding for year to portfolio single second up Day Maui. last digits,

driven and both Boston New the July its first by quarter York. XXXX demand outside by rate primary and Houston San in per as transient of encouraged Boston, for was Seattle, far, still above and thus and revenue room transient X% recovery. are are the and business York an but X, slow we San and window nights within increase growth, We Francisco room X% room led New strong available Diego, are booking steady bookings pre-pandemic continued demand. of in Business night

Orlando room was and of Revenue group growth group. corporate in driven to first of Turning led night available by the in Francisco, room X% by SMERF reached groups. levels, first room XX% the quarter quarter, XXXX volume Diego, San and Maui. night Notably, up San per

over million time ahead For quarter representing full year and books, fourth the year. Group XX% on X.X XXXX, us rate room of year. group the X%, total definite a same we books up group pace increase last X% is same up is have and last time since revenue putting the nights on the

first prior Jim and all-time our set group X% at the room XXXX. night catering was above contribution first banquet mentioned, high, of quarter in As record in an the quarter coming the per approximately in

strong by We encouraged pace of continue evidenced Seattle San in room booking night business strength such be ] the ongoing markets [ citywide Orleans, group windows lingering Nashville, Antonio, pace, New double-digit and D.C. as to by as and key Washington,

margins. to gears Shifting

XXXX headwinds, efforts declines by increases margin continued quarter, benefits wages, comparable as basis XX.X% point fixed were driven expected, from redefine of our XX the Despite in in and as impacts representing operating EBITDA result expenses hotel over these as margin was As a model. well to the first Maui. a increase year-over-year our

margin We comparisons the expect to year-over-year progresses. as improve year

supply contemplate to guidance revised and our midpoint for growth. in to The low Turning travel continues outlook steady of XXXX. demand our

Our end, at short-term the gradual a low business Maui on recovers transient and a demand expectations improvements softer demand group faster assumed in pickup. recent have continued assumed evolution the as wildfires. At year island for the the recovery are increased leisure driven transient pickup softer in of a and have group Maui by end, business, transient, from the our high slow at leisure group we we resorts demand. And and recovery

For growth between X% over we of full X% comparable XXXX, XXXX. hotel year RevPAR anticipate and

comparable comparable basis to high XXXX. margins hotel total at the reduction to XX RevPAR hotel hotel XXXX growth down softer-than-expected basis midpoint of be low demand. by to down comparable lower-than-expected guidance from transient year-over-year anticipate XX comparable Maui. at quarter impact short-term end. Notably, expect end driven results, points at first point EBITDA margin midpoint At of XXX to Maui versus be expect of and is basis our we RevPAR RevPAR X.X% estimated midpoint growth growth basis the XX we of compared points range, despite margins EBITDA basis and our in We This X% XX point underperformance points up the leisure in an the guidance our hotel

to the total for basis XX out-of-room to relative RevPAR only decline allowed strength revenues prior said, That midpoint. points of our

XXX points. expect points, We now our points initial basis We and impact hotel by below points TRevPAR Maui by of by margin XX.X%, EBITDA full RevPAR the wildfires XX hotel which EBITDA is estimate basis XX will comparable basis margin has basis comparable and from only guidance comparable points XX midpoint hotel basis year XX XXXX. improved a

and We a XX property taxes also point from expect basis impact insurance.

In flat terms comparable year the the on cadence of be for I we drivers the to single digits RevPAR growth half to mentioned. expect year, of RevPAR just in hotel low first based growth the

compared year a expect the of the and impacts to of in which of as in RevPAR result year-over-year diminishing wildfires, second group mid-single-digit XXXX. August less of disruption half to We the the booking second pace, half continue strong hotel growth comparable of renovation Maui the XXXX, occurred

business Hurricane full billion, prior million over X% XXXX of increase year $XX expected $XX interruption quarter. This $X proceeds related revised million includes from Our interruption additional to midpoint adjusted $X.XXX business million the proceeds an to is Ian, a or from a operations EBITDAre The and $X decline million million Ritz-Carlton, the operations Naples, in Maui wildfires, estimated Sur, prior an Big $XX which is from up of Ventana our million contribution Alila guidance our compared at $XX from prior at $XX million to guidance. related

excluded As Naples and set Big Sur hotel from comparable for Ritz-Carlton year a are full our reminder, the forecast. Alila Ventana XXXX

by and Nashville includes guidance Embassy $XX the estimated X and an Nashville adjusted Our EBITDA contribution million Hotel also Suites Hilton FFO from downtown.

liquidity to position. and Turning balance sheet our

in rate weighted the Series maturity of X.X repaying years Our senior average a after average interest X.X% at $XXX is weighted million notes G April.

available As liquidity, million in Jim total $X.X currently noted, billion which reserves. FF&E of $XXX we have includes

we have from the was $X.XX adjusted credit our since leverage of issuer and positive. a upgraded stable April, last returning X.Xx, facility. Also, paid to in quarter call, $X.X Further, we company's availability transactions on our cash share stockholders. commitment Our per billion outlook quarterly dividend demonstrating capital Moody's ratio post-quarter our end to for of

As dividends subject are the approval of always, Board future to Directors. company's by

XXXX. and We move strategic we be in will through the liquidity remainder managing to and our sheet balance position of as continue opportunistic

address capitalize time portfolio your on To we To question. we happy questions limit the to possible, conclude, sheet have Host uniquely yourself as many opportunities that, to take believe in to would balance as ensure questions. future. With position and one our best-in-class growth we be to please for

first Michael Baird. is Our Bellisario with question coming [Operator from Instructions]

old? X us Could line capital you X less lastly, time deal, walk months? this markets these question for years ramp-up the through of in your thinking value how you long one the how maybe for then the they're view moved have than of on much the given to continued and about how cost capital evolved, both X given Nashville. last just of Jim, properties, And you're that especially

It XX-XX Sure, market that for a I Place. Nashville. we're is eye our of the on Lodging in ones Hyatt have underrepresented is given years. would is a on Nashville where had all market we number to a occurring ago, we Mike. a dynamic in that our a of that We continued Nashville. Years expectations. joint And the of did were has property with early White outperform one venture say

I think along refinanced times way. it we X or X the

Capital in the friends had our and Starwood before scouring when market have So reached was actually it X been Crescent the at even construction Embassy and the Hotel to Suites phase. and opened out

but keen coming that see not deal on developer, to team. development out we when terribly in a wanted was nonstarter was being if We're a of the not And for could it -- ground. of the one participate really that that I much was

property respect it end So how strong open a to having for serious year, really the to recession were point in was macro the not It hard to at at we've over to keep in picture very view and it we way just the a time. million. of a And to going really $XXX we engineer going. soft have elected been going was long out, It for Fed is with of or proceed a $X.X and to following going 'XX and clear a landing, whether up a landing came and out watch play the EBITDA dialogue cautious time that RevPAR had partial in a and XXXX.

equity markets it look as time, in capital time place. And year, in were is transaction, different from the engaged in we and So a a obviously, cost our to this adjusts time. of We metric. over this fluid at earlier

tick And your one question. to so that's

asset anticipated. RevPAR very property of perform result was for going out-of-room the to make was in spend had the $XXX. in strong to as XXXX, of wanted a we $XX.X And Secondly, And million. 'XX EBITDA that the certain very,

the So and we of a $XXX getting There started EBITDA. many think happening developing And our billion has $X.X and underwriting tech. moving just on to million health city just the immediately in Nashville #X $XX.X closer market in expansion. Oracle good center a things at the billion that they're is convention announced as care this expansion completed Orlando. Nashville to in future. us the of Amazon be United well. year really $X.X are presence a as it is another starting market, just behind the market States of that so of RevPAR They've Nashville is the to a It's honestly. significant airport

I going X,XXX to in are they're of think jobs The about very the have Nashville. positive. city demographics

facility that inflows Center, XXXX over I 'XX have $X.X Nashville. books You is favorable. XX%, pace facility. City nights, the year. And mean pace across is right in unmatched. room main of environment from into location. The It's main a business very a literally a itself, time is for asset favorable is and over a it's million same in demographic tax the the X lot environment. The 'XX It's Convention XX over all Music street XX% and the million XX% last exceed citywide on The XXXX nights. it

lot that are there are this a happening in things of just market. So positive really

projects spent that about tell you a -- around in a to our there's cost still planning construction what with new just the market. And anticipated. some deals the from spent of you stage that proceeds our higher I lot debt supply And market. I wrap possibly And to build getting higher developers in done. hands because time than really lower costs loan of when finding happen. know -- and in layer lot aren't of they the a more construction myself perspective, we it I will of costing are is the could head time lot that out been a are a were on talk the planned and

a As site it. by tied transaction quite there Ritz on pulled some the a up and time, Ritz-Carlton happening completely was and matter nothing was was because for of got fact, that planned

luxury but be best will marketplace. in consideration happens, it's select We've or of in if serve and into the there So scenario. our it full hotels, online underwriting, service, X in when come probably that upper X terms upscale some out years taken case

an follow we to It's So we're that's long about have a we a into, don't and Nashville. in. this asset thinking a It's market get market exposure for time. we want how

Bank Our next question Shaun is America. with of coming from Kelley

Jim, Sourav, little going I late. apologize bit and a

there's it's up on came my some prepared than remarks, repeat just leisure couple So of a if softness seeing you I of transient heard. apologies. can here on that in -- But times. dig you're a piece hoping what the

to that behavior Just be That you you when you market that see of great. it now? or give by behavior Just continuing into could shift, right started April? can some see any examples kind is sense would

really leisure still us Sure, demand. specify as rate about in transient prepared we demand to Shaun. talked leisure remarks, I our want started surprised Where And short-term we to how has seeing for because it the upside. the

We if our are you for XX% XXXX. prior of well. in quarter where portfolio as kind that's above recall, And we -- effectively were QX,

you letting not transient March when that we So we really down. did. seeing of portfolio have is our short-term -- a does started into It's by the demand. we Reality in is just is of our we it being going is well weather part portion Easter probably have suspect we extremely also And poor is rate shift, had driven really significant that the is resorts. the and April, QX the QX. And obviously, for resorts

for our So portfolio. the say, Easter as shift is would impactful not much little, I a

happen does that rates and shorten really with of demand. what the timing resorts Easter, it can the does However, the time drive

sort So slower. short-term in certainly pickup therefore, April of is the

still are However, holding strong. rates

yet, data you But portfolio. with effectively can April data don't Maui. the I What we flat the we now, right for full remember, that what have available trending but includes is as have tell month of

X% April. closer If slightly actually for to you exclude Maui, we above were

we will the extremely the we overall, very the XXX,XXX nights the what is sort room and us half. strong. of So say that's up year, the piece is are the of And second half that looking year year what when XX% is group really I strong of half. remainder for for the for gives full looking at of still And was things picked for look the second the confidence second

clearly, of confidence for revenue to the X% close second the half year. have is overall So pace the second and tremendous for total actually half

question next BMO. from coming with Our is Aryeh Klein

get to that now been are interest? that, there not you done, about types are just M&A? still And how or Nashville of that which on overall the Nashville, acquisition pulled back M&A markets going market? you'd in there like to Has has then you're thinking longer. with And landscape, Have you maybe that? future Are into? been seen rates perhaps in just anything Maybe seemingly for the higher shift any that markets like assets

Yes. couple questions there, Aryeh. A of

the about talk first. landscape Let's M&A

So moved I a the fair to as pickup there activity lower would was see transaction community among interest a rates. amount in brokerage anticipation we that Fed the of think

We the haven't yet happen that seen because Fed of sitting. where is

of because loans However, wait can't They mean, higher may to longer environment. I and pandemic. who sellers they're they they over be refi invested have the their and just afford a now I in them into interest lot there there to going the have assets course of are some that will out rate any owners a due, reasons. coming for believe haven't

opportunities. half our So really the We don't continue in partners see M&A chatter that that active relationships deal work and that's around bit for sit we marketed year. with have a second we we're long-standing That the done. prefer said, hearing of at a we to Host and to Nashville the market little got we how more wait of might

Beach we that Capital. recall may from You bought the X Starwood Hotel also South

the basis. So this give in to as we're Host Starwood owner on happy very faith an deal off-market that an and us have confidence Capital Crescent

deal other to of post unique year to And get of at that get and assured, the a completed. be certainly to additional we're that a We're we'll Nashville, transactions hopeful, take leverage. markets the position folks able lot course hopeful to not sitting Even position. go done. out have don't in there the but a the And of advantage debt talking over we're we're I'm we're going We here in. to X.Xx capital to that

liquidity. very we maintain the circa have We of billion Xx sheet ability a with available assets acquire balance us. We our this investment year. grade have That intend investment-grade of said, of leverage certainly to to billion is $X.X to roughly, The important another ratio $X.X rating.

focus. So our that is

continue portfolio. We of our us May, what to just that elevate encourage the $X track get and we growth the Investor EBITDA watch EBITDA were of told who we're billion to you do. at Day and want see I We many to of profile last on everyone to to

with Our is question coming Citi. Smedes Rose from next

back. Sourav, you this million. your a I just -- $XX opening declined the remarks circle by know your wanted outlook on to I about little talked a over bit basis, that in comparable EBITDA

related isolated of in the forecast? wanted to of it of $XX through which or as quarter? first of was And I But maybe the guess it's year And just you insurance. understand, included balance realized that so sort think X is -- reduction coming that about RevPAR how did business to the some It how a lot more, point I much much in million sort your is turned you were out, going decline, and to great. be

decline, off $X.XXX the want the change and clarify comparable $XX Sure so thing. to start to the to previous walk our guidance. million Because maybe I just which I'll a $XX it's bridge guidance to hotel a just operations, quickly on is through actually which going prior this from of result from our not guidance. X% the down million, let's $XX point with the million, of billion, of was it's X%. The midpoint our X

pretty of decline a equate EBITDA typically X to and operations $XX about impressive of million million think point because if decline. which take You RevPAR out is you it would comparable in $XX

adding $XX out So from only be million moving where from there. take you the maybe $XX because comparable million of for that. comps. to wildfires, the $XX you $XX is we're non-comp getting from BI you that's have Maui to will million Ventana, deducting which million million Then the $XXX you're

million Ventana, Alila $XX taking that's So of EBITDA. out

from went $XX X million and $X the adding and BI the of our to Ritz, for And for million. Embassy the then incremental million You're $XX million adding $X Suite Hotel million $XX Nashville, year the another for Naples. because forecast you're then for Naples

really up, you you will add the if that, So that $X.XXX get to billion.

hopefully, from So it bridge prior guidance. our that helps

point would it's mentioned X/X In QX looking that I X terms of strong. and in in is I say about our second QX. earlier, And very where as X/X half decline

So we group of ton terms and of confidence second a half, in for that improved. has have confidence the

now QX pace over revenue total -- over that lot is half that's of is second driving for it. Our the a And slightly X%.

lays So of clear. Hopefully, how it -- out. makes it that's sort that

Our from with Stanley. next is Stephen Grambling question Morgan coming

Just a follow-up that. on

lot a parts there's of of So terms bridging that guidance. in moving

And includes BI. of some that

is of you think we some the recurring right kind EBITDA of the of core, Some do it the is think year as the to the in of of off is build term? What disruption. covering about BI longer

Sure.

to that billion guidance, of the we the think million you right? had effectively have have you million the year, put plus about if So to in guided the guidance. it's that we that $XX into rate, the about out way we previous $XX long-term $XX think So for already the BI, $X.XXX the run take million

for $XX Alila $XX add million would add Nashville. the for out then million, take $XX you Ventana, You'll will million you and

We that, about So this $XX million there. we're expecting year. mentioned, $XX.X million Jim as have already in

Maui it, the our And to for year, But million, $XX where is $XX would where the million. gets Nashville. And another call add coming that EBITDA of for million, if add then you about Maui. that's estimated pre-fire. you back about we were sort $XX So for $XXX this you million is

to billion all a run rate. when $X.X So that of I of terms up, ongoing would say in comes sort add it even pretty

Crow with Raymond coming from James. question Our is Bill next

to a generally, what I'm relative surge coming couple And XXXX Perfect. the correct me it. to Seasons, that asset, an is -- at benefited and cooling shaping it or of more might it look I'm particular, the down Four like from aspiration is how but demand maybe It interesting Orlando Jim, seems over just be curious international 'XX? seems of or resort is seems surge bit? called if inbound wrong, years. kind past in pent-up up spending spending maybe like

-- coming bit. than in likely I yes, was I would where XXXX. but a ADR it's it to Orlando meaningfully down be was or it say I it's that year know don't still 'XX, this Bill, The to say want it's lower in cooling is that above in if

backwards not a our And the development. by this other that condo seeing will disruption us things any reset a of with impact Orlando we're associated one means. really in is some So year bit

So a away And during to on that so building an the we construction. -- well. side impact be of are is of times as Orlando steering certain guests going from

an we still -- think resorts respect occurring. to in we're rotation all, all ADRs. in drove with outbound is have to we've a affluent real $X,XXX continue been versus the quarter that the has about X And year But inbound seeing still I we customer. -- versus that international There in over inbound slowdown had a last not talked imbalance. international That

over time itself right think that will I itself. correct and

an ADR in quarter, I the think we've moment, going $X,XXX. Four had for a of over back the Seasons Orlando to

-- away still the bit once weakening. international the down, is keeping against in a we It the a Seasons. they weaken and that's So to still will first there Orlando, from significant now. the come I right to And still was fairly quarter. dollar. what have mean likely United traveler us uptick at want to States not working rates It's a strong start want they Four stay go are to people

our Florida of Arizona, As the we we demand I because weather a of states: rains. lot we course California, wrap business ] waste management meaningful. the about and at around all leisure mean over Fenician to the it try the head and group X soft open the talked in [ -- lost was

little go? into found more. a outbound question, Now as the XXX% the an that in it RevPAR the Caribbean in out we and And mean first example, of up answer to dug where was home. was to the demand levels Caribbean didn't where XX%. was people these disappear. do the tried stay People XXXX I international quarter in this We just we the just

consumer we're reset So healthy. still is that money. experiences the it's goods. over consumer way still -- longer prioritizing back. is the of affluent just still And seeing just our not saying a the belief They're They're that spending

you louder peers. the That's were among your voice helpful. of one Jim,

would of outbound maybe everybody I think values Has reduce balance on has this some kind conviction of summer. but that saw about in talked projecting this your first quarter, in -- the correct inbound kind outbound and you currency of change call? it, itself activity the that that

I would just wrap take around arms it's difficult going to to say just your -- longer anticipated. than we that. We Yes. very

that travel is that to U.S. what at XXX with you mean Visa is come and a the corollary to state to wait be we industry an Visa discouraging are in they I with to wait days. the still looking And through U.S. of can One in the Visa XX that to times. many department are U.S. done Canada, can as working AHLA it out. to are running see other get a people is as A times dealing days factor shorten things the

log to is and there program processing jam necessary. break to a So more do place try people in that hire to the to

from Evercore Duane next coming is Pfennigwerth Our question with ISI.

quarter. my you of represent on align about just Naples the year March seasonality can asked. full there's "normal But implies XQ your a that with is I thing historically, Most What such have year." does But asset us in for what Ritz, the questions XX% if remind contribution guide historical that typically know the as did historically? seasonality? of been a

Sure, Duane.

that of -- the million operations EBITDA will is Naples estimate $XX from was you the what statement, -- guidance. million $XX see million you $XX previous our in of Ritz right. BI about includes in did when really the So yes, the We of income that your

is it X, million, prior pretty of QX say consistent relatively how in breaks close remaining operations, XX%. I QX seasonality. of from sort terms to about to yes, purely $XX is is for And about levels it that's for So then is That's and year. QX XX%. would the the XX%. up

with coming Farley is Our next from question UBS. Robin

already in biggest about increase think, commentary looking fees. revenue the from Most just at your one, up But like per other cancellation was X% of the coming the parts revenue, sounded the it And room. I of and from, I different increase said you my was addressed. questions attrition been have revenue in quarter, the

was wondering we onetime be you'll an was increase that high -- unusually about should maybe nature? be -- that or that about just that level? something as if year I'm Is in comping thinking thinking So next

for are so portfolio. Yes, approximately Robin, contracts doing systemic frankly And previous clearly, to now much or It's for had a back attrition closer necessarily better and and a the revenues forecast more And cancellation we revenue were year. in are our is for the cancellation not to of forecasted -- to coming million have year. wouldn't our expecting We that's tighter. We thing. attrition in the $XX collecting $XX million the higher, the year, and job of go norm. those revenues part across I it is managers say

onetime been in just but are and those jumps issue sort a QX. it's systemic of was it's trend higher basis a levels, the out that So anything we seeing, at a these some of may actually portfolio we on stabilize not that about or

you're I thinking increase recurring, something earlier stay level? kind your to you that we're say original would kind million that Or should bridge that we that and you built So assume would $XX that would recurring that -- in cancellations at guess, roughly that say of like about? expectations, [indiscernible] saying that not what's of you

attrition year, seeing on like be difficult exactly level, is at thus based for elevated it's what at cancellation least predict we're Yes, be but it today. to seems following the what going that far, to it will

next Jefferies. from with David question coming Our Katz is

needs talk What adjust capital? Can the more not of respect to out you Is would trading itself. the there active about with for some that market to posturing to deal still bit? the are a assets a occur, factors please? start Are cost deal to there market little but be for of sold sellers gating just sort there that price

not firms cost David, private this asset is for need buyers CMBS I the And underwriting year the the It's been price debt. debt limiting in to equity classes the their real who give estate. financing the of of multiple lot asset. there's occur is is market think Yes, tap precluding the still availability across really CMBS of the because underwrite such a the and for open. factor it cost hurdle of their to that wide they're looking right with much is so volume But in concurrently seller those to that returns now debt

do really over we in to that talked So fund as trade have competitive at trade. was had another I X We it issue. mean asset. gating of They that puts of assets the life is cut with Fed with Beach. debt was with fund Seasons not up year I with rates, of the think the started instance where be deals of to to I A but waited might advantage. and time. that where private to couple end And well. opportunities to that done. to Capital. think Hotel the the That I the on certain deal have XXXX biggest get an window go have And end respect coming who will a in course South about deal Orlando, that that Starwood a issues of they you certain They for issue Same fund Four there before. the end firms the be did of out Host to the they're equity

tell terrific I it our through that neither to XXXX. additional So of really vein can part with I able to you because those assets to owner work way be going them want opportunities hope find And we're in that we properties. some as is

Deutsche Chris Woronka is with Bank. next from Our question

demand. the I you used evolution guys Maui. Wanted to term of kind about -- of ask think mean Hawaii, I

can booking seeing how windows And sense what the of what's getting give us Or you the think worse? around you it's had? Are some kind on are closer you for in much in? more Just color just get guys a you reservations to of seeing little are happening? that? visibility and get Is cancel? getting better, a Just trying you it factors come

what's to Yes. -- I Chris, in evolve on on obviously that very he I'll in than happening terms demand Maui have and jump are let can't say I'll on describe the close color to Sourav what to more start, it. and it the other continues we But add might any and specific island. to additional

word. Andaz the been X [indiscernible] governor to might have maybe down Wailea they of listened Maui." So in the folks away occurred, terrific the Lani. I to and wildfires said, at Maui staying governor think They wildfires devastating Fairmont travelers or took properties our said that one his the from "Stay they new occurred, just governor Kea when those the and who were in the

of their has into good language and back apartments. into We news much. The out residents permanent a on into tempered people since. of really continues get more that move these been wildfires. lost the homes Now as and that. We like to like so the moving side. is that see displaced The are They their move cleanup way everything -- home people hotels and a so lost because start many result west

plan marketing island association are and working hotel -- hotel to owners is together the place. the on put the So all a in

first factors is wildfires quarter seats And consistent respect fact August over XX% with of other around went of the down last that's there with of island number One the capacity out still the post of the year. in XXXX. is capacity, the is that where that air the to the

get people So island. to back got -- bit it's a right egg a to of situation We've chicken and now. the

And that We sell on if west airlines if of the they capacity happening, increase Wailea. it's can that side, in will the the get, once will commence. Maui that to not and experiences it's even recovery the the we're beauty have that starts and confident

allotted reached time and Ladies and questions our gentlemen, the we end answers. of have for

to will So comments over back closing may he Risoleo have. any call Mr. the turn I for now

Have us. Thank you. to NAREIT results you on forward for to the look the road day. opportunity we you many York. at a of with you, appreciate our quarterly thank seeing We certainly and good discuss again in Well, New and joining

may We concludes everyone. at This you you, Thank participation. and conference, time. this your today's your you thank lines disconnect for