Host Hotels & Resorts (HST) 1 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to the Host Hotels & Resorts Second Quarter 2024 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the call over to Jamie Marcus, Senior Vice President of Investor Relations.

Thank you, and good morning, everyone.

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

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

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

reconciliations release to in can our the directly website You together find the information press information at comparable the information with yesterday's filed with earnings in supplemental and this X-K GAAP hosthotels.com. and on most SEC financial our

would on today's call over to Jim. me Vice and Ghosh, turn Risoleo, President to Executive Chief I Executive President and With Officer. like are and Financial Sourav call the Officer; Chief Jim that, With

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

over XX X.X% the strength proceeds. year-over-year the RevPAR hotel We basis of hotel revenue XX a points. quarter improvement year and of grew underscoring was business up delivered EBITDAre Adjusted comparable RevPAR while comparable total interruption basis last points, slightly, of excluding second out-of-room continued was up

operational quarter Ritz-Carlton to refer today our our portfolio discussed reminder, Alila and Naples The results Ventana which hotel a excludes second Big As comparable Sur.

to quarterly Turning results.

international on a had drag headwinds leisure in inbound quarter to decline XXX Maui an a in and RevPAR. hotel second increase demand The RevPAR Second basis in of Maui year-over-year faced without continued destinations RevPAR from points portfolio actual a demand. quarter recovery our slower-than-anticipated in comparable international shift corresponding

of as Lani Fairmont the second points and XX in discussed growth wildfires the last expected would the disruption portfolio Maui expected XXXX. at contribute Kea lift to renovation this the quarter the we given basis have to for true impact RevPAR quarter, understates As in XXXX

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

in recovery anticipated slower than to lodging The been several Maui factors. has due

diminished recovery level demand relief a without to demand First, leisure the offset room decline. and of has commensurate

result total still seats demand, capacity to is as the airline airline a down July, XX% In island impacted. softer of were Second, year-over-year.

However, has down in down improved last from this XX% XX% June September. and

lastly, that Maui not ready And would to visitors welcome island. perception to guests a there remains be from the back is

the and a Our authorities campaign government that properties well-supported fires. anniversary of with after create tragic clear, are collaborating local will marketing tourism to the this fall officials launch

state local our and addition efforts in sales are These and to marketing managers. by efforts

and be feel We are point will the comfortable hopeful that again this recovery in returning trajectory, to consumers turning will Maui. a once

mix. rate demand Group second X% alongside room was in revenue driven growth business to the up Turning by quarter, approximately growth.

the nights booked books properties in pace X the XXX,XXX on last Our definite nights room year, million the same time year for to revenue to with year. total for bringing rooms room the X% compared up group our group group XXXX

demand leisure our fairly of were resorts transient health our demand and international XX% in Asia underscoring and at opted the destinations Business to transient up the evenly decline, Despite XXXX, compared Europe, X%, Maui financial comparable affluent Domestic Caribbean. growth. as moderated grew by driven volume revenue consumers the Resorts, including rates rate for the X consumer.

demand travel international properties. lower of leisure our a the imbalance at We key believe driver remains

the pre-pandemic quarter dollar, in Visa a levels as continued travel and the international year inbound XXX% second to delays XX% levels has remains In of of XXX% outbound At at global of the fact, present inbound headwinds U.S. to the same pre-pandemic travel economic year. recovery. U.S. strong this to quarter second time, weaker from in international last grown below growth

a during spend as stay. to total our their as by well Encouragingly, and growth on led revenue fees, and revenues improvement the Maui. per of revenue continue beverage down Food spa continued and growing but Other Banquet moderation quarter, RevPAR basis. room outside Catering and outlet second drove revenue guests golf to was attrition occupied cancellation in the slightly expected in of at properties due

As XX% proportion. last guidance and XXXX our nearly food revenue quarter, and came other a and revenue total of we similar from highlighted our XXXX in beverage assumes

shifted picture towards to our continue RevPAR that our portfolio holistic We spend. as higher-end substantial a more which business benefit out-of-room properties of from more total presents believe complex, underlying has

results. EBITDA per top key of an property results RevPAR rank is Central full to in among XXX estimated XXXX improving XXXX the Yesterday, Turning XX.Xx our the based and our for a TRevPAR the assets of on year The allocation. expected capital $XXX, XX multiple approximately million X EBITDA estimated approximately price simple Hotel The Park $XXX of expected $XXX,XXX, of on in an portfolio. or of acquisition interest with cap room $XXX cash. quality further to we X.X% over announced fee rate acquisition of represents

with The LEED XXXX. added well a Waxman. opened has large restaurant as as presidential suite. features the key that a Beard unparalleled suites Jonathan lobby and penthouse Central winner, X property X-meal terraces recently level It The Park certified offers bar and James Jams, luxury in and XX views Award affiliated of

naturally the provide submarket which the and as in center. business further exposure The will the floor one the a a the top Upper meeting will top city. country. second RevPAR lit Manhattan, presence City, also square to markets luxury center York Central guest in feet space It is X,XXX of and host contiguous RevPAR with in New in of Hotel flexible as fitness diversify X offers Park our well The the

net results. development. estimated cap million EBITDA $XXX is represents rate includes money, X.X% The Carlton on on acquisition yesterday. or key parcel the completed multiple O'ahu, also acquisition resort located Bay XX.Xx is entitled and approximately the previously Hawaii O'ahu XXX-room Turtle a for We resort The price of XXXX a of of a of Ritz North land the Shore announced XX-acre and

acquisition the approximately and EBITDA the underwriting of or an XX.Xx Ritz-Carlton, approximately XXXX price cap preliminary to a X.X%. multiple represents rate conversion on Based

in XXx frame. resort We XXXX this stabilize XXXX expect the to EBITDA to between time XXx to approximately

X to Due Hotel in O'ahu, will included X the EBITDAre third The Turtle starting ownership comparable acquisitions Park expected quarter. adjusted yet metrics. Central of be Bay is the $XX the our included XXXX. Ritz-Carlton, hotel included for in and FFO They to acquisitions, generate which These period, our are guidance the adjusted guidance not timing for are million in of our EBITDA and

back transaction over estimated $XXX Looking full on the year based stabilize. assets of XX.Xx have which in acquired we iconic estate EBITDA a XXXX grow results, that billion million EBITDA expect represents to at multiple of XXXX, blended our $X.X real and irreplaceable we activity on as estimated

EBITDA XXXX, of at path Investor May to billion our $X a out In of Day. we laid

With time. assumed our than these of halfway at of billion $X lower toward we are we target acquisitions that at acquisitions, EBITDA multiple blended a

EBITDAre portfolio by what key term. to XX% assets of we long billion us including of expenditures. a X% multiple grow disposed XXXX, foregone estimated our we by FFO adjusted to and $X.X by share NAREIT This have XXXX EBITDA allow acquired believe and XXx is above per Since and EBITDA accretive our XXXX billion levels. $XXX will at $X over XX% multiple, at of capital XX.Xx per outperform allows capital million assets EBITDAre the a Adjusted of recycling

liquidity post-quarter After we X.Xx. of total have of leverage and available $X.X billion net transactions, adjusting for

repurchased $XX.XX repurchased price shares have to X.X our Since share program, stock we we of total million. XXXX, our quarter, of at per average During the common per price quarter repurchases million repurchase of $XX.XX at for stock also $XX $XXX an through of repurchase an share average bringing share. the million

Turning reinvestment. to portfolio

capital and million an this $X operating in offset thus $XXX quarter from transformational million budget far. benefit $X the to slightly the ROI bringing additional million to capital program, we ROI is disruptions in XXXX year, projects. on for Included under $X and to second range the the track business guarantees expenditure projects reflects expect $XXX to which million to is repositioning Our We million of transformational to and million, in million Hyatt is XXXX. redevelopment, investment guarantees guidance operating of the related program, Hyatt total $XXX capital $XXX received which approximately

million expect to marketing our efforts $XX Seasons on Walt anticipate fourth to condo at Four Disney year, underway addition July. residential range, million development the In the World and spend began expenditure at XX-unit Orlando we the We well this Resort capital launch quarter. $XX to is sales Resort. to in formal begin development The the in

points. of provide gain renovation is operations well More XXXX, we X meaningful in to tailwinds stabilized share have transformational renovations broadly, X our RevPAR points, index which hotels post date, to the portfolio. believe that the of X for excess our XX average Of gain targeted is completed we have which XX since

initiatives XXXX strategy, we accomplishments. ESG week, responsibility program our CR this Earlier released which and our our report, corporate and industry-leading details our

our progress by The social provides Additionally, the the section net at Corporate an towards are vision mapped CR XXXX and positive our report our Responsibility environmental of update and can targets, website becoming report on hosthotels.com. our found XXXX. on of aspirational to be which performance

believe well demand. softer state to Maui continue despite is recovery up, We than outperform. transient and domestic Host in Wrapping the leisure expected the moderating today travel we to of remain positioned about optimistic

on in encouraging abroad, certainly see travel consumers continue demand to would is to versus prefer see we U.S. experiences. spending it prioritize leisure While more the to and

Host is domestic to demonstrated, eventually well reinvestments capital well destinations. geographically our the value. uniquely many to positioned. to have benefit And we will to continue believe to have when we made levers And our it as pendulum to positioned is irreplaceable Host and as able The create iconic we are back recent diversified, does, shareholder properties. access swing portfolio we as allocation and in due make

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

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

a by at down business with compared revenue resilient above quarter second the in estimate to transient that point to at XXXX, impact of X% was resorts revenue second the remained transient basis driven quarter had the in softer-than-anticipated XX% Overall quarter. our We XXXX. demand of Maui Maui. rates mix. XXX Transient Starting

revenues occupied willingness believe travel in Additionally, outlet of growth and part our out-of-room grew our revenue per due on at ROI indicates food spend the and grow Maui, non-resorts. our ongoing We fitness to recent both at strength golf room experiences. facilities. spending to continued in resorts and to and and continued beverage and investments rate consumers' Outside spa spa of resorts

Maui, outperformed due bookings the leading excluding transient weeks X holidays, Day up weekends. recent July last-minute at weekend holiday to Looking to the strong in and Memorial our expectations

X% by occupancy. driven pace year of and Maui, compared forward last to the Labor transient excluding Looking revenue is Day third quarter up

rate as was and fairly the transient both hotels its and with market-specific evenly transient Business transient increases growth Encouragingly, XXXX, Demand room year-over-year demand above and certain continued in demand transient revenue business levels recovery. driven steady X% of New growth Chicago was exceeded quarter the of XXXX nights and by showing in slow quarter. double-digit York second in business Boston in San demand. business second Francisco,

X% Approximately driven the Revenue came in from Diego, other second the of the Group. grew coming to and top quarter, growth with rate half X% Nashville our Turning markets. Phoenix growth. by balance from San

For of have full year. us same quarter, representing X room books, ahead approximately nights XXXX, increase on definite since million X% last the a we group first the time year keeping

strength strong book the continued particularly the third Orleans, same Diego, growing group key and revenue in the New by banquet total pace banquet of San remain catering evidenced We and business pace rate and double-digit growth last on revenue strong as year, driven X% by room San pace, contribution. Seattle X% is over focus citywide ongoing on as the and Nashville, quarter markets Group time and and D.C. by Washington, such up a group is Antonio, night encouraged up catering

Shifting to gears margins.

the XX EBITDA business Maui last a was the hotel comparable which points $XX by basis interruption basis benefits below benefit well margin point quarter provided million from Maui. from as impacts driven wages, year, comparable portfolio. increases Second proceeds of expenses of XXX to in as and fixed wildfires, received XX.X% We

proceeds, EBITDA portfolio. Despite headwinds, second net margin. in linens laundry, point a and the due controllable our versus to XXXX supplies our the operations basis include of guest improvements impact quarter Excluding across to Maui were interruption operational business XX had expenses, these flat which

increased the The pickup wildfires At the transient our we end, primarily and outlook the pickup. end, group slower and low we assumed recovery international at our the transient from Turning transient softer to guidance by a midpoint revised XXXX. slower-than-anticipated a leisure moderating and contemplates And imbalance. of have leisure recovery in high resorts have domestic demand. faster assumed demand, Maui for demand driven Maui at our

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

XX XXX X.X% year-over-year and margins at at be hotel midpoint points of our RevPAR comparable of guidance of comparable hotel end XXXX. the our compared we end. the anticipate basis down range, EBITDA low the We At flat guidance to expect total hotel growth comparable basis down to to points RevPAR high

Looking at year group by strong reduction basis drivers and comparable second the related basis of will approximately as XXX quarter. third the estimate remains the decline, in is by of wildfires the total RevPAR XX% midpoint business particularly hotel in year, full impact transient points. RevPAR the XXX the of half RevPAR to the Maui We points

estimate. be million Excluding impacted by $XX EBITDAre relative $XX prefire to million business interruption adjusted our proceeds, to we to expect

year, positive be we the by quarter. single-digit low second the expect growth hotel growth in RevPAR of growth to slightly RevPAR of half the in terms fourth driven In comparable cadence,

a a points basis hotel midpoint impact full impact XX.X%, of basis estimate estimate, which point We by our EBITDA prefire rate relative below partially benefit EBITDA wage XX basis a impact comparable from year from to benefit which expect Maui basis to and point a is improvements. operational from XXXX. margin is a insurance We XX point and offset margin XX point XX from property XXX basis taxes increases, and

from XXXX at Alila and revised the compared a of operations to $X.XXX adjusted is a Our prior X.X% Big our Naples decrease $XX million year million from EBITDAre contribution at an midpoint. includes operations $XX million increase Sur, midpoint Ritz-Carlton $XX This guidance. an prior Ventana billion, or estimated the $X million full over

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

O'ahu Our FFO Park guidance ownership Hotel from and Ritz-Carlton adjusted for our X period. Turtle and $XX an The the Bay includes contribution Central EBITDA also estimated million

liquidity and Turning to sheet our position. balance

completed a maturity end. investing and quarter for years average X.X financing interest subsequent of rate is weighted Our average activities at adjusting after weighted X.X% to

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

leverage paid to per $X.XX end In cash our share, stockholders. adjusted of of capital transactions have on July, million ratio to and $XXX credit a post-quarter quarter commitment demonstrating Our quarterly facility. we for dividend was returning X.Xx, availability we our

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

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

travel not optimistic indicative remain we conclude, To of weakening consumer. headwinds a the facing about are our the portfolio of future as

benefit. demand As and properties geographically positioned Maui recovers diverse finds the international of to leisure imbalance equilibrium, our renovated well portfolio is

With your To possible, address as that, happy take we time would X yourself be question. we limit please to questions. have as many ensure questions to to

is for today [Operator Instructions]. poll while from we And moment, coming please, questions. David from One first question Jefferies. the Katz

what acquisitions the even can you to congrats on talk I of any everybody. from around appreciate might the Jim, boundaries just Can today? next acquisitions year further the it. about possibility, all you or this early that probability, prospects, see we tell

market. are are going comes that is think very the let business. able when over one-of-a-kind short-term to we each we're relationships by year. like X me this fortunate we to assets and not with I acquire balance are an Bay have to -- to we These the to happy David, saying that Real start grow acquisitions a instance. transact be very, Turtle the that look estate properties that time. EBITDA asset made Yes, in enough to sheet And And

went is hotel. things one We is a I a think of we The Ritz pointing Bay, the we Ritz-Carlton of on of a it sent for yesterday, without It's I that was now system. think closed that part key property press a Turtle the yesterday reasons. But in the is when out that recent referenced just worthy It live Ritz-Carlton was release million that per O'ahu lot tip. took And $X.X asset. there a invested that unique hotel of in out,

upside a over has XXXX a property lot based be to quoted, that, and XX.Xx lot a on think We room. that rate. above there's X.X% a metrics believe cap EBITDA pro were forma, of the that which going we of So we and run multiple

We the another into XX-acre incremental developer our generated currently the being parcel in haven't that from on of site well as land. residences taken underwriting, by any our as EBITDA are consideration developed

Park it's bit that do to to Park So position luxury. announced on luxury and of why unique assets? a a yesterday on it. in acquire same focused background bit opportunity and little on hotel once-in-a-lifetime as with A background Central we Why well. just we're is Host Central The of little a that

exploring had in at greater something back These look that $XXX. is are luxury, we And CAGR. This than RevPAR you XXXX, RevPAR if quite of have frankly. They started that a upscale of 'XX, time luxury outperformed CAGR over segments other in time. XXXX X.X% periods versus lodging X.X%. From meaningfully was upper space, upper of extended in upscale period to the assets the

that performance to out able our to expect lead invest or elevated us those be type might be to and we're and take portfolio which cash we which EBITDA in will allow and free So opportunities from elevated decisions to allocation acquisitions there. growth we going to to made, the to that flow, drive pivot capital continue this other continue proceeds will of

to your year this Now year. next contemplating or additional to even question, get are doing early don't that acquisitions we I think back

over a certainly some great of are it Host the these asset into the system, of You asset and analytics today management integrating never opportunity door, we into opportunity might acquired focused great on great enterprise that more know is we situation. X because properties buy X to a where our distressed that come there But, that with platform.

because positions results have operations properties the transformational with innovations that index completed above we generally invest forward. underwriting from the are will we've the continue that date, have stabilized X and in that we've achieved yield picked we we total XX up portfolio to points great in going where that our well very us our XX And to happy think

also $XX.XX on consider per back share. In second buying our million additional quarter, at the we'll And stock worth bought $XX $XXX we still million stock. stock repurchase have We program. of

back per million Looking $XX.XX the pandemic to at $XXX today, XXXX, to share. throughout we purchased

So our and particularly price shy where about own today. seeing share into the not trading stock, the we're acquiring getting market we're given certainly

answer. the for it. Thanks Understood. Appreciate

The from Morgan Grambling Stephen coming from next question is Stanley.

Okay.

will We Street. on Green to Chris from move Darling

actually. to I that repurchases. ROI term about are dispositions and pivoting maybe regard. as I that question whether play in in the capital through testing deploying thinking whether Jim, what you're might following instead projects acquisitions mentioned market or incremental on up mean, role you unlikely and near mind, the last in that With in strategy of share pursuit wonder any

we for we just pressure under hold value, our decision pricing to given are thanks and we really, dispose that isn't believe that whatsoever Chris, we assets, today. disposition recently only the so will to there market explored have the if the relative fair is that Yes, do no question. pricing made a off and dynamic

still cost and sheet unique that transact, from position there given We've perspective. in able a really balance be been to to there our position. of players in that out debt is are valuation prohibitive The any a other aren't

continue will overall So consider that's we'll profile the there we assets, if eye always growth the as think the of And opportunities certainly going we we forward. to on disposing market do. keep something an by of to portfolio, enhance are

from Woronka Bank. Chris question is Deutsche next from The

I there's have more there. few know now you Jim, the in a of the out Hotels X portfolio. So X

of time. Obviously, know a the those Miami question period of is done manages of do very in in those? something there hotels? longer-term the your longer-term they're there So or short kind other play well else of might I the in some I vision managed, is longer-term terms kind pretty know what's for you've enhance them. of to value you entity that But a co-branding

brand. of X really as mean, Well, Barry I an with owner we is I Capital, Sternlicht, of are W. extension really happy X the Starwood innovator. always And being think got he Barry an W Hotels, started we've an

something really XXXX, been incredible. in XXx, XXXX. actually got Miami I sub in And that. at, In quite around a in we we multiple like has performance were to roughly bought XXXX, We down XXx think, Xx. Our XX.Xx, XXx, that

where brand. not around So we where of he's Hotels like the conversations is We it's the had for performance nature. heading or the with that of anything that -- like distribution. we But elsewhere anything globe about heading we've and SH it, co-branding like

that they relationship we job, relationship just and a great hope forward. with them, we and we we think do have that -- continue can So said we expand great going a to

Kesten from question next from The is Wells Fargo. coming Dori

point. you second As sense to agreeing the upon guidance quarter, required more internally is what together uniformly the of of get were aspects this that of trying you We're putting more derisked the the versus guide a which a how were discussion. just vigorous are at year half this

the what sort gave went for of We the second QX we Yes, really half, is XXX,XXX guide, pace group strong up actually our was and I half. in QX. rooms so about booking the remains in the it second think for about us as XXX,XXX or for confidence picked

So that's XX%.

digits. single high actually is pace QX So

So the we're group from group derisk quarter just election did perspective, very the around We weeks. third confident about quarter. a in fourth

any as of are So pace. well and year, year, pace, of typically, the is this you in following week always given softness that. softer election week terms seeing in group But see a we elections can election the

we for that. So adjusted

The is seeing we recovery Maui. in prepared the remarks bigger X really in pieces that our that softer we are spoke

short-term that's our a pickup effectively of saw well. half the as what have into as well of we that in did we half QX, as leisure So lot in -- lack term was and second extrapolated second short we these

guidance. consideration -- items at we took looking when that's into those So the are that

a clarification, Sourav. Just quick

So single QX group is up pace high digits.

down? now on like is QX, transient, what and books what So the for transient

room it is at in pace XX-day happens around and pickup look transient terms a we really a night of Transient, perspective Yes. window.

saw QX the derisked So that proportionately we QX. we in decline in effectively have

Okay.

next Bellisario Baird. will question from Michael be The from

examples coming Can they And to a the the doing pre-pandemic? channels? us on then you are to focus demand? give bit. your guests different help year little that mentioned? marketing through of Are than properties? stimulate help they Maui brands us some a To lastly, can planned different that ago, just maybe are coming initiatives customers what understand Are you you Also the

Yes. are tragic as customers saw what bring as incredible to I pursued. just an And Maui. that we the we Costco or residents encouraged -- back example Costco new event. are Mike, is finding an the there semi-permanent were channels wholesalers, Different very we that, that's happened mean Travel to permanent housing, happening. wildfires

from meant what on that rented rooms to for in XX the visitation. But that QX. over we didn't went were that rooms hotel being side well And our was Cross corresponding west quarter Red and XXX the the were first in being rented by in see pickup that FEMA a we

why are there and several very We're think a in which current coming wildfires, and that of the occurred why the situation first the on lot island otherwise. a anniversary culture I today. reasons is on important is the date up for And that reasons of Hawaiian

of Governor Maui But September, and XX% the of the planning the marketing business. latter on of are Maui out for the fact dependent Maui basically Los in Mayor the on going mid is that now open area, the part to tourism. Hawaii campaign Angeles is forward, economy a rolling

along So can you bring has done be to to we the first think And island. being we and what of back made progress those lines. good supportive is before appreciative customers are

the we're and as Hyatt marketing Andaz hotel well the other with working on in taking our campaign as assets, a steps are we Hotel the going on Maui individually and mid-September Fairmont Regency, at Kea to assets, place the forward. Association X owners island, those again, put coordinated to start Lani to Additionally, sell marketing

same Maui. were and in about we XX% other challenges that quarter, One where over down that's frame going that overcome were believe airlift XXXX, we in to of we're have year. the down I to the the over X% into last is another time

well. more airlines, and routes, it's put to a egg certainly So, we've as be the We customers chicken going a the of capacity into want encouraging bring but and Maui airlines to back we're situation. got their the an bit to

the we substantial Kea fresh the assets. which Fairmont completed our to we renovation Wailea the transformational The as Hyatt had really completed renovation a Lani, at good at and Generally, Regency transformational news we more did Maui's And a is well ready accelerated and during as the for go. recently, Andaz. a that of on is renovation renovation COVID, property

So, Andaz Wailea as well.

our and sell beginning owners open authorities business, we're late for the September. mid So hotel Maui properties and to working in with ready, are other the local to

question Bank America. will Shaun from next be Kelley The from of

to underwriting to I earlier in half. actually, to just maybe earlier back to back leisure the go the want question Jim, back an I or on for an transient go for Sourav, want question

trends think Sourav, catch in caught transient said I you of correctly, your you're as you if did it baseline that I trend that saw basically, the sort leisure QX, for extrapolating XQ, correctly? for I

in seasonality the you can decent leisure And on you now the that, the just the in Host us need get how QX in there be late secondarily, is it the then, remind So derisk we should of of year, some underwrite around dependent same? QX? the to you pretty did worry And did portfolio as about that particularly of we here, as particularly holidays? weights anything and QX relates to

QX, we of and quarter QX. leisure than Yes, QX at applied bit split sort that's correctly. second for of remainder the for the basis effectively a effectively But that that the second saw is the that the leisure look is took hear in We mix in guidance, midpoint evenly different you as little trends of did what point year. about and the the a half, actually of in QX result is you of the XXX say and I QX. between XX% would is transient when decline rest Obviously,

Pfennigwerth Evercore ISI. The next from from question is coming Duane

assume I have typically And part happen? on I a asset reductions programs. that there your revenue cost softens? have outlook? lag basic just on those takeouts Just do the cost cost level Are budgets in were your can a expense as revenue based question. And at

It's in costs really asset fixed variable you always managed. with obviously, costs. obviously move an asset by volume. certain how are have expenses The terms of And

cost, it variable X, isn't show by happens or true-up up most a sort lag the month end, meaningful and of a that part, the but and maybe is week with For it will there the occurs. lag

So whatever numbers time shows out time. seeing being are by relative being you're volume managed or to the taken costs the pretty up real

The Smedes next question coming from Citi. Rhodes from is

expecting wanted your back taking close acquired looks to you steeper for for impact think just the the It a to point out said then little just I like revision. XXX in about EBITDA first portfolio and called moment. than your And a million $XX year. you you're a I Maui, basis the points to that's And that go basis guidance it's to negative the from quarter. downward XXX out

those X related a decline small like or RevPAR? to walk of the $XX Or decline things of downward you the bulk million revision something just it that relatively given just a large just just ago. to maybe on -- can your Maui expectations of given all in in and your kind is pieces. So the seems through so Because quarter

Sure, Smedes.

I think $X.XXX through billion bridge at what to previous our if midpoint of will where be $X.XXX just I of billion. current that guidance and our was easy walk is guidance

of and it's million $XX comp the million $XX is primarily L.A. you EBITDA, take $X.XXX and markets, Phoenix So is Francisco. that attributable out of Maui Of San up of billion, The about say, I XX% excluding to remainder that made million, $XX Orlando, you Nashville. take would D.C., X

improvement of for then our add you forecast $X Nashville. And million for

another Park total that. for that remember would than sooner interest is is reserves the Ventana, bond Central the for $X And billion. But Hotel opened to up, You important X allowed once billion deal, it's you to another million that XXXX, then important more higher and for the certainly we all really you the million up cash $X.XXX you and Turtle we say $X.XXX adjust for add the interest million and that higher did takes. Once what what rate get Bay had puts I because guidance, obviously million income, expected. would really in $X had then rates to for $XX Alila which for $XXX but run add you remember the

another we that the an for you and all which to Bay got would the million billion our you prepared Park the guidance have baked obviously, interruption Turtle you said you another as Maui another $XX $X and if million So is add million, take, million year, million again, additional don't Hotel this to for equal in, $XX we in million we for $X.XXX XXXX, for add $XX remarks, Nashville. we that Central because would midpoint and $XX year $XX in remove X full have Ventana. business And

billion. rate the you on basis, run will, a is So if true $X.XXX stabilized

then hopefully, So answers your that question and some.

that moderated. And up were in group helps. was leisure? you just, X% said the or Can remarks in decrease increase beginning then X%, Jim, what you that up revenues that opening your and leisure the transient was at business Yes, share percentage

demand for asking the are QX? leisure in increase you Sorry,

of think X% at -- you up whatever wondering X%, revenue was in you group moderating, quarter, you share as the revenues, I'm characterized I and speaking business the was of but Well, the was? were It percentage? transient said beginning call, up you right? the what was just leisure can

Yes.

used our resorts overall remember, we Our proxy. as -- a and

still number what have moderated. referring above are in that But overall which as was held as Jim slightly up, still resort revenue down revenue lease believe Our QX, to, our XXXX. rates XX% or was was I volumes, XX%. our rate obviously, held firm,

UBS. next question Robin from will come Farley The from

total Marriott I spend of about wanted pressure grew some RevPAR. had and to go out back called restaurant covers room being ancillary out called entertainment your to MGM and lower And ticket on kind reduced more comments how RevPAR prices. than

ancillary the seeing that why and banquet Or is trend a it's increasing, increase bit revenues? on just looks wondering do ancillary more your And side? different have than mix in is revs, just group the it's transient softening wondering, of your the little But about. think you -- some so piece so is you're that because what talked I'm others is

Sure, Robin.

I think of of different bit little and the the looks of assets a our our customer. our nature trend nature because

a given falls customer big nature money. in quarter. we saw outbound in into still is Our properties, spending and travel -- affluent they're the the pickup category the Unfortunately, of our

saw year ex over But occupied up up revenue non-resorts, spas and well. quarter X% and X% mentioned Maui, in quarter same outlet spend golfs remarks, last Sourav food first XX% the up And year spa his year we the and and at beverage and prepared per last in in about up terms quarter as golf encouragingly, both up revenues our X%. as revenues of and we over resorts last saw same quarter room over resorts, about the about

as any So same we were second back the are are well. year. seeing at we're that's And rate XX% last side holding where in time transient continued spending XXXX. up of group additionally, with a was revenues leisure on the Banquet they where over not higher than quarter seeing the it

different and a mix. different think So customer. It's a different it's I property a type

think was Maybe up is follow-up end That's and you Great. this in your where remind that will where it clarification just you XXXX? group helpful. mix, us where one year can

to the where group, XX be XXXX, balance similar to in going contract. it about roughly transient about pretty and was It's XX% -- XX%

question Stanley. be Stephen The Grambling Morgan will next from from

-- follow-up a Smedes was the As think it around RevPAR. I on questions resort

it I were that for and said of resorts, ADRs a you the half? the think it's evolution folks quarter? around and from to over the happening more what's you hearing part back think leisure the is trying June price to however Because about we're of flat change of we within I Did I'm just myopic, quarter, that want into to and or seems July, occupancy really realize define but the like dynamic course look as down. the bit little

Day in X, expectations. Memorial and than both came for July because necessarily actually Not better we

it the we actually that on weekends, demand, holidays relates or sort -- would what than for do. even So there wasn't but went discerning pricing it better we of the quarter certain really as did of necessarily matter because across to sort of scattered sort the fact, any thought through of they quarter while trend

I helpful. just occupancy assuming you're on ADR, for of trend would that holds overall? And be slightly resorts you effectively flat of the that, kind Okay. follow-up to in down half guess, be the that one comment back line in that that other that dynamic half, That's clear, would your that said be in back the

And the -- year assuming The helps assumed would the QX versus -- outbound leisure trend would of mentioned, that this it of of year continue. correct. we that particularly that earlier will opposite effectively, of had rest QX we lower the from actually be the we're international standpoint, last Jim that, for you the in and year. obviously That's

next will The Raymond question be from Bill James. Crow from

rising fastening Jim, weaker it backdrop. we space. we first a and starts leisure in indicator a if when is Is And lower first the it attrition, Or job weaker? in demand? -- it should out see looking F&B, Is lodging pace? slow economic unemployment, what's the group the rising be economy what's the weakening cuts what at for to

the weekend bifurcation say, I at think between of do that differentiation. leisure chain there's end And would lower low-end Bill. quarter, scale, a you're somewhat strong, the consumer moderating being there still seeing is who reports think the that this earnings printed I today I consumer. is are the candidly, the high-end a in and

From our is is, about where comfortable of with our is, out perspective, spend is our and room our spend transient very behaving. rate where how we talked how trending, we're consumer a room of and leisure our bit out

to out in moment leisure that much and high-end of that and leisure It that in was the they what's in up the travel the time, Europe abroad, bit consumer recovery restrictions, a Europe opened year. revenge year we're when without revenge any is Japan, Europe seeing think that last Caribbean that of led think this and the was that a went traveler COVID. and I travel coming went We first the this it's was we and year happened when like quarter saw

talked into we at surprised you if look bit know outbound all and I at spent before. us because it's about we digging And -- I at this, of this mean big to it U.S. X frankly, we've international a outbound levels, number, if but look some roughly is equates that's of and trips. people seeing they're that -- we're XXXX increase that money, additional corresponding not spending million a And inbound. XXX% the time

travel give million So We think, I July occurring. X in us of, TSA particular. hit that confidence throughputs checkpoints is in X a record week in still

perform the positioned is swing believe we to this moment that in pendulum be a well back, and So forward. and will going we time will

could I follow-up If a second ask Great. Sourav, a or question.

flavor coming the to negotiations towards Sourav, do But up got you think how increases those. about year, a as of this portfolio? I'm you across wage we've benefit and end about you and ask look not into lot going of the XXXX

Yes.

part the through are look have those obviously we don't into managers we the working And year. tell, later -- a of next budgets bit right until much year, it's little to As the mean later early submitted this I obviously. now.

think X% like? what under would We October, probably How of once for year. better we lower trends more control, to that's X% expect we say, will on just even depending would much look idea come to in I the extent, have terms what However, has would inflation given down inflation that like. in year, some a November next lower? looking probably be But it's to than or it get better that, the further range

for Jim questions. closing to the back have we I Risoleo time the all That's for Today, like hand call would now to remarks.

quarterly the many today. look you, We with to you the forward for always in again appreciate months. coming of us your opportunity of results the we and at Enjoy rest you conferences joining seeing Thank our discuss summer. to

Thank conclude you. conference. This today's does

at time. your Thank disconnect wonderful Have may lines day. You for a your you this participation.