Host Hotels & Resorts (HST) 7 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the Host Hotels & Resorts Third 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 law.

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 in this X-K GAAP hosthotels. com. and on most SEC financial our

on today's me Vice and Ghosh, Risoleo, President Executive Chief Executive President and With Officer. are and Financial Sourav call Officer; Chief Jim

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

to joining for Jamie, Thank us thanks you, and morning. this everyone

and devastating see turn the employees take many we safe I early that loss fortunate to acknowledge in late quarter, moment to the were September very to our deeply are damage which of landfall October. effects properties storms. our the were the Hurricanes we made hotels throughout want of of and a remained at saddened Before And to We impacted, while brought. Helene Milton, hurricanes and the the life

of Feeding the and In the Tampa XX of disaster World within X power the support. which American our Bay Central impacted, deliver needs Red urgent closed, relief response Bay we to temporarily to Cross, loss Hurricanes commercial were Foundation Community Kitchen, those of partnered Tampa with Team of Helene vital Rubicon, days. to and mandates Milton, properties evacuation from in X Due reopened

remains The guests. at occurred to damage closed significant Don CeSar, most which The

set of and expect in first still from and quarter still XXXX. note but end the our quarter of phased of CeSar of the beginning hotel we hotel our evaluating guidance. been the our it in removed has CeSar year reopening disruption impacts The We Don comparable in Don Please The are the comparable that the currently towards included is a results remediation third storms, full

resilience Naples the Ritz-Carlton, It worth off noting both that our is during investments hurricanes. at paid

the following enhanced the the building accelerating critical dry opportunistically As equipment, flood-proofing resiliency envelope Hurricane remediation Ian, and measures improving reminder, elevating by waterproofing future a during property replacements. of we

result restored. a investments, water reopened of intrusion Hurricane Ian, the to after minimal of storm these despite inside surge As a the saw we days power resort that was we commercial and X resort comparable

we to the the these Following over success measures, these our types portfolio resiliency near enhanced term. prioritize will continue investments across of of

resiliency which section our XXXX investments, and CR see please Responsibility our and the of at on on details website accomplishments. our Corporate our Responsibility Corporate found additional hosthotels.com. can Report, initiatives program our It For strategy, industry-leading be details ESG our

EBITDAre adjusted delivered quarter. to adjusted the results We FFO Turning in third share $XXX our and of per $X.XX. million of

As last benefited EBITDAre adjusted of our a to million a led decrease adjusted in reminder, the business EBITDAre year, this insurance from third which interruption quarter our quarter. XX% proceeds, in of $XX

per FFO our adjusted interruption X%. over would been business share adjusted EBITDAre been have X% proceeds, up the would Excluding have and up

improvement XX up comparable RevPAR hotel basis delivered points. RevPAR while revenue, hotel year-over-year a of out-of-room comparable the We of underscoring strength was total continued X.X%,

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

quarter we expected the third RevPAR from weather better last the week slightly impacts during in Florida came than in of quarter. hotel despite Our comparable hurricanes the

in had RevPAR for decline drag is XXX points Maui Maui recovering, an the basis of actual quarter. in the While year-over-year third

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

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

the promoting Following of visitors wildfires, supported return the to authorities tourism in the officials anniversary we of local tragic Maui. government and our managers,

launched spirit Southern The of the our Ho'okipa that hotels campaign the TV in included each September. campaign. the marketing from Ho'okipa media digital efforts during month aired X displays marketing ads, Our videos means Hawaiian. and and social e-mail and of resorts hospitality in of California

Tourist the the of years, Maui resorts is Rams year. relationship same between up Association of trip Additionally, Thus the Los Angeles the of formalizing Rams our efforts have the Maui the tourism was governor's are key and Maui's communicate Hawaii off. and festive supported and the longtime of supporters for Thanksgiving market part Lodging Hawaii the sales Mayor forward. the going and compared of the Hawaii, economic met last Los partners revenue the Hawaii, XX% to and Governor Angeles X respectively, Head to aimed the importance for at paying over two over time greater with marketing pace XX%, of and travel far, The across and the over recovery.

Maui beginning to improvements encouraged that show are to is recovery. We road on its

booked transient nights to the XXXX. year revenue in X.X Group growth strong the group on X% for the group as of revenue X% market by million group time ] for property rate with X% as third the in customer our was room recovery up -- Moving same Maui mix. rooms rate group quarter The year, shifts. definite grew booked by room the in room quarter XXXX compared driven the total were was year. and group quarter driven to in room that books nights the night flat of third to mix approximately XXX,XXX pace in rooms our on in business bringing the were Business revenue to third due [ last nights

X% by resorts the The unfavorable [ the our demand up in room leisure. quarter, ] at balance steady were in driven Transient third to in sold held Turning international quarter. third nights comparable Maui.

our financial health third at up of XX% the rates continuing remained in to were approximately the the leisure underscore affluent line quarters, resilient comparable which recent addition, In consumer. compared with to XXXX, resorts is rates quarter. Transient during

Out spending also continued affluent quarter, largest of the RevPAR group the over to of strength growth trends in the quarter which room grew consumers. represents RevPAR X% total quarters. third spread to hotel Comparable in and this X demonstrate

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

to picture continue We as our from our RevPAR continues underlying represents out-of-room that holistic substantial to a total more portfolio of spend. business benefit believe

Turning to capital allocation.

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

rebranded The the brand [ Looking continued spreads. year. X far, is EBITDA billion underwriting we O’'ahu, Ritz-Carlton real back by well, and Nashville expectations. estate Bay blended Hotel in this results. Embassy with the based the Hilton $X.X Nashville multiple transition Central Park XX.Xx transaction expect and management performing and The are going iconic and awareness the X O’'ahu, Downtown, resort at Turtle acquired Ritz-Carlton We line of on ] Turtle growth on as of and irreplaceable The our our Bay Thus Hotel Suites and a activity XXXX estimated

reinvestment. Turning to portfolio

to Transformational is offset guidance billion, expenditure total replacement million to includes of under far. for to bringing capital for this Program, $XXX $XX XXXX Hyatt updated is to $XXX $XXX to approximately million business $X which an million million redevelopment, and in is million operating disruptions investment range the additional third $XXX related and year, to which budget for the ROI $XX $X Capital Transformational projects on $X $XXX and Included to Capital $XXX to track of Program, in projects we million slightly and guarantees ROI million billion damage repositioning We reconstruction. quarter the in million million projects, the operating XXXX. and the property Hyatt Our guarantees expect so receive received renewal

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

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

our in balance sheet, continue to assets. due believe to positioned our that we diversified Host continued up, is portfolio geographically reinvestment and our investment-grade Wrapping well our

As we allocation we going shareholder to and will remain able we levers have create access shown, to forward. capital were opportunistic value, many

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

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

food X% outpace total banquet Comparable of and trends. grew growth growth revenue and with in revenue levels continues Starting group hotel maintain by transient beverage as and spending. Total third driven RevPAR out-of-room RevPAR quarter, the meaningfully to both guests catering. elevated

XX% Host's and group catering year-over-year. In contribution banquet in up with third quarter night achieved history, strongest the per fact, revenue room

as growth ] spa revenue revenues Diego, as in by up to Transient occupied third room as per Overall guests the and room of recovery in showed outage New and Maui X% Houston. San continued Orleans and the transient well up XXXX, occupancy spend revenue willingness [ with of X%. resort quarter slightly rate compared to was driven strong well

we From improvement. Visa Maui show that perspective, beginning is encouraged a are [ to ]

XX% down group trends was quarter, spending as to leisure the total traditional While guests and coming in down only RevPAR third Maui in back was RevPAR out-of-room the the returned with island. XX%

X drag from portfolio our holiday leading at shift both for July Maui lagging represented expected weekends. Day In to Maui to progression, quarter, a Looking third and to results Labor the the is portfolio.

and forward, in driving Maui alluded earlier, is fourth performance Jim Looking quarter. as holiday the to

same to driven transient pace up demand and from government of Business consulting down increased Encouragingly, quarter, gap levels. driven fewer is room third to its narrowing rate up festive by for portfolio XX%. business XXXX the quarter total for nights. trend. period by demand X% Overall, is last this above Transient prepandemic year, revenue firms week the was X% transient was compared revenue Thanksgiving the X% time

in Turning Boston. rate Orleans, third and to group. Revenue New quarter pickup in strong X% growth New by driven the York grew and

this reminder, a comparisons basis tough Maui due growth revenue rooms year. that booked estimate XXX in points. group by negatively last business We group in quarter to As impacted the third recovery faced quarter leased Maui the

room same have us year. keeping books, X.X we the on of XXXX, year full For ahead approximately last nights definite million group time

X% up is the is the last Group books spend. banquet over catering total and on group pace and X% by rate bolstered same up time revenue year,

Looking same ahead, is total group night. both of rate the ahead by time our last room XXXX driven pace revenue nearly X% and year,

to continue time of is in by pace year. citywide and compared booking Francisco, pace up nights San Francisco which are also room encouraged same to San the worth be all noting Antonio, group have room citywide meaningfully citywide Orleans, the that Seattle, pacing New night XX%. We It Nashville last San up

margins. to gears Shifting

EBITDA basis XX.X% year. comparable margin and decline benefits. points in below hotel The quarter Third increases by last was XXX was wages driven of

the Additionally, we we year. [indiscernible] estimate received Hurricane basis and last Maui point from proceeds hotels interruption Ian XXX business comparable a impact

growth full Helene year Despite previous revised our maintained for comparable to midpoint. Hurricanes we impact the of Turning and outlook guidance our XXXX. hotel Milton,

a RevPAR we to comparable growth result, be to RevPAR comparable As total X% XXXX. flat anticipate hotel compared approximately and approximately of hotel

the assumes guidance continued quarter. fourth Our steady Maui in trends and demand recovery in the

impact by RevPAR Maui and points the XXX points. estimate wildfires basis basis We by full RevPAR year hotel total will XXX comparable

this be Excluding proceeds relative to year, full our EBITDAre received approximately interruption adjusted expect prefire $XX year business impacted by earlier estimate. we million to

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

quarter to the of a midpoint expected in the estimate hurricanes approximately Our $XX a that revised million $XX million is result quarter. Of will million, occurred the and decrease over in or $X.XXX XXXX guidance prior billion, $X third full year adjusted in the million as $XX EBITDAre fourth Florida. we X% the be occur

The and Our Don prior adjusted guidance. CeSar, operations guidance Naples, approximately compared $X EBITDAre million $XX The at operations our to decline of includes estimate $XX million $X compared from from Ritz-Carlton, our a million at million of a prior to decline

Alila includes Ventana million from addition, at operations Big Sur. $XX In it

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

the were used repay and our the completed million of sheet to facility. We our of Turning portion notes at balance $XXX issuance senior liquidity The proceeds L the Series third position in revolver in outstanding part to of X.X%. quarter. credit

Our at rate a X.X weighted years average of maturity is average X.X%. [ ] interest weighted

on ratio was $X.X billion in leverage ] reserves liquidity, and currently million facility. which credit billion X.Xx, quarter-end we our includes of have $X.X of FF&E total $XXX Our availability available and [

to paid In $X.XX of we returning a quarterly our to dividend per October, demonstrating commitment capital cash share, stockholders.

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

are we XXXX. To encouraged steady conclude, of are mix performance by into heading business and portfolio, pleased with we trends the our

to as our increase profile elevate and shareholder seek [ will value. ] capital we EBITDA the We portfolio growth to opportunistically continue outpace of

we to that, [Operator Instructions] happy be would your questions. take With

[Operator Grambling comes of Morgan Instructions] Your from the first with line question Stephen Stanley.

like I'd market. guess touch base I on to the transaction

now at You whether actually this obviously a for assets if coming buyer of you're were to you'd about sale. for this you seller likely year be in or who's with up be market sale be to evolving any seeing how assets and or you're people I'm change people how from active either a thinking curious participant acquisitions. the point, terms might more for looking putting an active

last been say the buyers really mode, just was of or different wait-and-see sidelines. everyone XX been too bid-ask that Stephen. on so, both The have Sure, a I in sellers has the and and great for spread a would until wait-and-see days reasons. couple mode

spreads now the a one hurdle I term. the SASB clear likely policies able of Rates in. available. have their come around arms new capital the wrap think They'll economic to people. the financing election is for have look much debt have are of the we're the past near what fact administration like to markets that become down, more will transacting. And to over conducive be lot come

And equity back into there been see private the have out bench. you're additional I come and into the get game to transactions likely off Nothing -- the think the that we we we're that get year, and this next There have to delighted X complete for absolutely as bar year. some we earlier beat were that us. evaluated. has risen And has we hotels able that X did transactions

balance it is a and to differentiator us. Our will continue sheet a for differentiator be

assets I think all attractive locations that would brought there market. assets. great in we they're would all they're one-of-a-kind because have and more all competition today to properties, be if and they're were those Clearly, the unique

I So and go matter continue we as forward. that to Host think, and relationships will always, said, reputation differentiate

this true, So at do go coming way, long resilient. bumps to out and but us. we're always good any sell but like at because the ], a market hear that our no business little it is Yes, that about ability the say fundamentally, balance have and transactions news need to move come that waited the doesn't along in to think that is limb time. over is course exit And to for but folks for road a additional there, of sound [ you the we to rushing the are me the have not willing people and likely of our because that's very quickly pressure if the not financing the wasn't price. Atlas to it's I'm differentiator on next I much a hold year year with I expect so know probably, this to -- I

a market And ourselves X in being but the transaction hotels likely the and test think over year. investments portfolio next we CapEx we're just given market focus some types I to not an Host's with have assets perspective, need to cash differentiator we'll moved from likely own or on our noncore going assets So the in that -- free fit long-term will good see of generation that years really flow don't a our assets with of we really for pricing, see terms forward. X of heavy we as active last direction that the the understand

the We'll If is attractive, we'll back pricing to and we're what back we'll invest it's So If test at. pricing likely in ourselves. see the market. comes pull not, sell. assets

We'll able acquirer be be here mean, net going X.Xx we hopeful to to today. a be forward. continued leverage I sit at

it powder. -- of to be dry We be have continuing well, will always either invest lot our a it in portfolio. will And

investments of yield bought and that the mentioned X-point We million bought Sourav, assets a made. of comments seen on I last we think, his back from we've gain this in quarter billion index $X.X average we've stock year. $XX

grow and will. forward portfolio. look in have continuing But one-off a And on situation. a do just we'll competitive we'll we to So basis we And we to a be see in it be not happens. the what situation, competitive to prefer if to

this one missed And talked acquisitions. still underlying about and I this The for we the parts But are on prior lot what the about underlying would moving that And Great. level guess, I you Don that the of with remarks. follow-up There's within know CeSar back? unrelated Sourav. I in still that, $X.XX generally about building of of recovery guess your issues I thinking build There's of calls, EBITDA? kind insurance billion? And kind maybe EBITDA maybe different we've a proceeds. off of to have Maui and think Maui? Is to does how include in

Sure. I'll the moving billion billion, it Yes, the different Stephen. $X.XXX so build all have pieces. you from $X.XXX still and It's

you of billion, take $X.XXX current year. of would off million starting So for this $XX of BI with midpoint the our guidance out

$XX million that was we QX, million Maui the in million $XX wildfires. million then received QX $X and $XX BI That for So and it, of Ian.

you the of would million little million a Nashville. deduct. bit to that's more how $XX you So about for Bay And terms Hotel add Park, which $XX thinking million another Central add all about for $XX into so we and $XX get in Turtle $XX that Then million the or would million, X Maui, are recovery. then

would to million add to $XX hurricane Then Sur. you total Alila about grand a add billion. that about when the Ventana think to million we terms rate true really in what then talked for consider you And impact, EBITDAre. would get adjusted you to we of That's be Big $X $X.XXX of the run

the being of year, of and clear guests wasn't much planners the back. to beginning didn't to really the the terms longer it lapped recall, week certainly fire, of trends Jim our chance is is sort I there's and The have there into of over to remarks, the seeing Maui, business. and welcoming got and to Thanksgiving bit direction transient open encouraged the certainly as of clear year around we take if the for As that relates group X-year going are being open piece. the as certainly more prepared really specifically for terms The Because little as well the tourism in going piece method of of meeting by anniversary we're you pickup this for a Christmas forward. in a New on of in be be for Maui little we island bit book much to challenging a Years. effectively will recover beginning Once and a

into and future. the activity we XXXX see into group much didn't So booking

We expect pick really that see up year. beginning to next

the be group out a it's But to XX% a group so. going night about across piece from a on around back. to build take the for business, particularly or XX% revenue Hyatt. does bit hotels as group, And the Maui meaningful the of and hotels, with a our it That's little room a to while basis So works revenues base come perspective, of for

end what budgets would So a really million I to the are encouraging yet $XX is going just probably pickup that I can't into will any to back mean, trends is year that I million, of the XXXX. don't next and say little come give from $XX certainly. a number. we a have you But so towards perspective more take group transient time, It

from Next Michael Baird. is with question Bellisario

for you start Just be sort take models. your lines on moving numbers one-timers? of same or all top the that and might run And a the you the thinking and everything just at the as line, Can that then in all rate clean ex bottom you step the out think to the portfolio, What's along performing back? maybe how both same the is XXXX? different about looking today pieces

details Just $X.XXX EBITDA question takes, A will just XXXX, sure line once how that including don't obviously where I Maui and back? out XXXX, question. terms of of we the $XX have puts a getting the good right million the rate, is, walked The big understand sense top the don't run to really EBITDA so and $XX we I is all budgets really expenses $X.XXX of do clean that BI for obviously of you without acquisition, the come taking are through. comes component For The the is because in. more billion I I'm the million much have missing. now. into don't in billion

the $XXX,XXX. be to -- Specific to We like is strong I Maui. able Total pretty Maui, in terms X% take picked think nights have. this about time up I bit group rate a in X.X And we time visibility point on have books. room from good how see to group to get we unclear the back. little in But group up of to said, a at much X.X%. group up $XX that group rate we'll is is what million do what effectively of million $XX of But really we're perspective We booking about million and revenue feeling for XXXX. pace group about is know looking is already XXXX going

Got it.

numbers, of you right? the seeing clear. have the think X% about X% current is growth Sorry, the onetime onetime all the portfolio performance rates, all about referring items. sort of line I underlying the growth are top been more ex to should -- expenses, Like absolute was do line Not really the line, ex items? the rates top -- the bottom the thinking I all you and on

-- For or XXXX? for saying into you're XXXX

Just today.

I growth looking X%, What's portfolio the RevPAR thinks these is about view kind just onetime think your X% rates. performing about environment? is of Just it as X% and out the 'XX terms this where today expenses? ex everyone Is of of in a thinking on all growth items,

Yes.

If you seeing been we just think I because mean, case, we growth closer this in our that to have given of RevPAR expenses Maui, would in expansion X.X%. total perspective, rates. terms a was a have, on year RevPAR up have rates, we're growth actually margin how much from And X% would drag seen would

So X% rate we've that a we into saw . unfortunate And we net-net, of a drag of capital meaningfully RevPAR points share benefit Maui relative wildfire. Transformation would certainly basis the and that industry about index have our this on hotels the as Capital just growth sort year, for XX, from this XX gains just terms here, the in we spoke investments we have all a seen given actually to the it's the outperformed so Jim in had in year, Otherwise, put saw, we margin would the expansion. Program. for

question next with comes Your Rose from Smedes Citi.

the the Could gap like you're business interruption Maui. there year the just just next this of clarify about you're what a I So just I expecting sense year? is, about wanted what for something $XX I potentially guess, million EBITDA, proceeds? to sorry, talk just excluding of in talking get I to million $XX on -- you terms

$XX Sure. It's million proceeds. -- million, the excluding $XX excluding BI

mentioned of thoughts around help calendars you you've percent good calendars group group Any Okay. into of guess, the line I historically sort the year sort where And -- one with now then I the to terms to good. convention keep across demands in for you guess XXXX Or expect overall look group more next of up, in outlook, look and of grouping been would segmentation? thing in lock revenues? the

room really and go an honestly, we know optimal mean, is years we transient that rate. asset-by-asset so we for it the yielding maximize And what that is group Yes. I exercise can of the which through. night

not mix wherever depends. really to holes, it say certainly shift fill portfolio. the And contract wherever business. We we the would also -- like does with grouping up on So is going across But we the make meaningfully sense. in do I board focus for it on overall, have

over So you'll contract business shift a years. the in see

the yield management asset. asset really So by is

is XXXX. being citywides DC, The up are [indiscernible] York, next for specifically night of right have San very I the the Host the few XX% standpoint, there's group Francisco encouraging really Orlando, certainly thing Antonio, that New than that San room year. already pacing say, well market, on from for up for And would makes more it books XX% now we

I certainly that in the So going we're to for accordingly. we and feel EBITDA. hope drive total good. with And overall, holes I the strength continues really catering contribution it the really that as see assets and where fill to and corporate along the banquet need each group of are, comes these

is from David next question The Jefferies. Katz with

initial commentary around some I'd labor love the market.

be you've not that know takes or given early respect it's so I a may of there's lot thoughts opportunities not whether plus out occur and it's and a great. I'm outcomes. share and the to election potential asking that. would But gone you with that elsewhere any limb can think puts I may perspectives and on or

they business the very Sure, labor employer. of the two David. in that in we to out best assets. the speaking, We're Hyatt bulk at they're if people want make portfolio. particular that And employer the and hospitality search an manage of of the opportunity Marriott our a But We're picture our we pleased Generally are career. have not choice. not manager. are the in very the They with

we're So going very forward. encouraged

of after reinvented we operating pandemic, the out fairly staffing quickly levels to we and coming -- back redefined optimal got model. the We

don't but on any we're see us I issues a and to beyond. present that front. forward, So the get . going nothing into -- optimistic looking for going are we labor XXXX problem as

a Are discussing may, get and -- is the of further softness on we're up I if that leisure a I down. that? of to were Or wanted transient would maybe would one decision pushback we go? follow go more it kind more or there? as classify And How growth rate unpack out level on you of to just some layer that the and no rates

that couple not we the different there steady that's go, several think And last outbound sure capacity now at look leisure I you for XXX% No, the Well, have because say no to David. inbound, international -- of I'm are bottom the seen air that held that, really versus I that components quarters. is a number if line, picture. has

still So money. transient row any transient XX pushback it a leisure XXXX. with XX% leisure for not third third speaking. people portfolio. up now. We that over quarter just generally properties, in our seeing the held our the traveling. our quarter spending of And has ADRs on in ADR, We're They're They're not spending ADR quarters finished at are in

money So people of still spending to well. out they money. When properties, the are spending our they're get as room

We continue to of seen revenues outlets, to to spend for quarterly occupied continued see -- records we've in basis room increase. golf continue at spa increase, our on terms a revenues

versus normalized swing over affluent believe We balance clearly, time, the consumer So outbound. will of money. see inbound pendulum international that is and we'll that international a back more still the spending

things maybe even to I a held We levels, consumer. our somewhere lot as keep do leisure we're inbound XXXX the health of the have of strong of dollar. on XX% assessing little less think A different with than the lot could international eye around has of that that. a

of Chris Green comes question next Street. The from Darling

opportunities walk through budget other to within in the sales any places the condo development. densification there? And might portfolio? the Orlando you pursue proceeds there Going underwritten your near Can term relative to back then that development are you in similar

Sure. made respect of what talking top in with to Are sales? about line assumptions terms you we've

all be overall helpful, would that your of budget Yes, construction relative there. to kind

Yes.

be So quarter, I this budget started completed what, I in think are completion We're project, of in to construction in out fourth that million. that that's starting first villas mid of end mid-November changed. -- mid-July in the the anticipate XX and And to XXXX. hasn't then was, there And November. We quarter in we the really condos, sales the the later construction million the the $XXX of will of $XXX -- XX half X mid-rise, targeting XXXX. think of the

to our So And are XX in mid- units going in to teens cash be on total. it's the returns high anticipated cash.

to the underwrote foot, mid- will with proceeding we to high cash-on-cash but assumptions budget. it per our teens sales we return. a is And provide and within time square So to on respect budget not construction

confident to going we're hit that fairly we're those numbers. So

That's that any second similar Okay. term question, And the might my to the pursue near guess portfolio? opportunities half the enough. in in elsewhere I you of fair

find attributes O’'ahu, attractive Bay a Ritz-Carlton immediately really land development significant Well, one property. of really that residential in of resort, and complete to Turtle parcel of portion things was one that's of of of The to that entitled you which opportunity us drove is XX-acre type just the don't acquisition for a Hawaii, the oceanfront Bay. the And the adjacent of it's Turtle

upside the in for are still the resort. not any taken EBITDA consideration we into We and planning stages have

the XXX going which joint at is residential plus -- The development to sell participate And or those well to minus things EBITDA itself we units there how upside Ritz because units, going risk or Hawaii. be probably of the that's pool or at as rental likely somewhere we least how be XX% a XX matter that's be, happen a in just to which as it's venture whether believe land that law, profit. And things development will going XX over units. time, of in as of acres, those is the But not of we -- meaningful

So why outright. or selling project. exciting it the That's large considering it's fairly property venturing joint an we're a project. It's

the and meaningful being it land suffice both resort, well share we expect That's see from development spend the upside the profit as of and to spa. or the restaurants, most as of have. to units owner ancillary pool in make at sale the say a we with on rental But exciting golf the a would to that revenues and the project

But details any road. at in at which We point as more stages. the details resort the into with down you, can't with development get this certainly another at And very it early share residential time that's one itself, potential potential our of looking we'll are you manifests in properties. development, I

Aryeh with from Markets. Klein comes Capital question BMO next The

in It looks seeing curious year on you just back like RevPAR headwind that market. to just the Maybe for going what was the slightly you're based narrowed that I'm Maui. expected if recover transient Sourav, us you and provide from taking Maui. to stands then, QX. a group to mentioned just currently And pre-wildfire? in group you longer in Can relative where perspective delta

Yes, sure.

drag So the RevPAR. Maui said overall quarter was impact the basis to had we total yes, if you about last recall, points that XXX

points. to that revised basis have XXX We

pace Thanksgiving actually on you is festive the And It correct. it's based in words, other we yes, bps. really for terms XX by in transient improved of for are and period. seeing are what So

where a feel encouraged terms heading we of in changing So are things perspective. from

if I are we're will key next did nights, terms room we I Maui, call nights. it, the hotels earlier, mentioned where close remember piece eye in transient. sort behind group pacing a piece XX% the is come for beginning side room I are And versus of so in the up. at the okay of off going start to digits for going we like group activities pace. be longer or about, the take will And keeping hopefully while still to And which more on. say is pretty terms you XXX,XXX we for of prefire, if And of seeing year, that's double pick our we group group are about XXXX, to that is we overall like back, correctly

very transient for The is occurred. actually relative were similar before fourth back to quarter, pretty in we -- fires least pace prefire encouraging go to the of we the sort which at where where is

an year. we're as hopefully, see a next into pick the And eye get up activity So we group is piece on. we group keeping

Ritz-Carlton Got wondering more And The then, little can how maybe us a you conversion. I'm O'ahu with post color on it. provide if trended bit Jim, performance that's and

our of when It's very a It's for forma transition well attention asset line is that is is It's the going important the trending The searching warranted Ritz certainly present at expectations, going getting the Carlton. time. Aryeh. the all brand. list anyone pro at top in forward. It's with to The Ritz-Carlton

excited I one golf the Blackstone courses There of Arte on on realignment lease we're two They're one with from our going bought we're [ and ] are there. who about a So adjacent golf working mean, parcel courses. an it. other manage behalf. developers the to

to going plan. is terrific we The it. everything when according bought asset in So shape was

So no near-term CapEx needs next and year. we're seeing good pace beyond over festive season and into

comes question with Chris Deutsche next The from Bank. Woronka

shadow thought kind supply, certainly, -- these affiliation soft to And want even far I corporate group much back the some your over whether technically or, to if from going think pretty you kind curious whether running any as of new is and it it these different. that leisure of as conversely, there's part I is -- And year-to-date, call you But occupancy. aren't think I of seems Airbnb Just Jim, major impact look know and comparable and a because XX%. is to it and about wanted maybe of I I I'm 'XX, portfolio was do to see you're or brands XX% -- get. ask, like brands brands? as occupancy any nuances it's little to back guys

coming from? on are there any is those lost of kind So occupancy points where thought

supply Yes. result result never not cycle. answer it's is relative looked not today a a supply. because developed it's in new short being better of the to picture what's shadow the new has as times And as as of Chris, to the supply other

and And still X a I I X the not of think points tailwind negative we to actually have pick as what -- has up. a as happened, can view that to portfolio, we that think bias. about occupancy it's think we we

markets pandemic. is it's think work. news going coming good back is office Amazon I San Salesforce work. back. changed back that that is probably coming to biggest in Return is one several to they're that The to going slow dynamic things in the Francisco, the evolve but And of out to of

get number business some travel to it of in relative are the of a time, employees XXXX. basis, their we other continues where -- has quarter-over-quarter we up And the mandating or office. and big a as So that over that on occupancy putting that were corporates should evolving gap believe to we been back to pick transient evolve, that

of line Robin from comes the question Farley UBS. with next The

QX year-over-year little look a more year-over-year. expectation give of just your basis? next And leisure you of kind of year, and of Maui, around leisure broadly rates what in it like Can then of terms leisure what the quarter clarity outside XXXX in sort -- may traveler also in but on kind the for a rate was

was slightly It may relatively the you XXXX. of there seems basis, XX% Because above a have down. it's the recall quarters to meaningfully XX% flat around approximate last were which pretty that to to over normalized year-over-year in year 'XX. certain Robin, market a On lot the much

the part, for So pretty most flat.

well, from was quarter been perspective, demand Actually, look improved every demand a at. much but a we flat From that's case the went as pretty it throughout QX, we single through. demand year year-over-year that I as that then actually in down the X% believe perspective

to very standpoint. far not close again, [indiscernible] perspective of flat, So from but year-over-year

given the -- Going macro there that -- strength macroeconomic leisure, a is that outlook, clarity into XXXX, the overall there of have have that believe that and we new is formed sort given seen just consumer around we hopefully more the baseline.

where we So have down. settled that's effectively,

investment inbound-outbound for point we outlook, just standpoint, does and that from don't business And GDP year revert macro any And from earlier, overall that Jim as we standpoint given should to sort a and or imbalance next degradation terms to the mentioned expect of exist growth a expectations help at mean, that of leisure in overall rate international some expect demand. with definitely currently stabilize.

catch. was you excluding $XX Okay. from $X.XX billion? billion like you if talking $X.XX I'm sorry, Great. about were clarification. -- didn't in business the that you theoretical know interruption rate, you including Maui. run When including million that million to Were the just were And Maui then like quick just I recovered in and a I $XX

of puts And of sort includes what billion, that recovery that of and in what a giving $X.XX were takes. lot You Maui? in kind --

the long-term Yes, that That $XX rate. was run million. to did the $XX million assume effectively

wasn't it So for necessarily XXXX.

you're would Okay. 'XX. Great. That's not that's be in In on words, clarify. other wanted where your I like why to seem you'd comments, based other saying it

. clarify. to I want what -- that's just So

That's correct, yes.

The Evercore comes from Duane question next with ISI. Pfennigwerth

Francisco, you more you detail think if XX%. any pacing correctly, there's stick is San of that or year said I I you wonder room heard citywide night up any on I have underlying on if specific Just that? events And out? times

a And for It's Sure. That's Francisco. Francisco, And us. of we're already, from good room in room you obviously nights is XXX,XXX nights still group XXXX for recall, year by close San effectively Bowl pace if encouraged we is year-over-year really perspective. over overall and in in year, it's terms group Cup XX%, We 'XX. to books, were where World progress. pacing which nonetheless from XXXX far approximately for but citywide about pacing up the specifically have San on Super back way for the

for to things good again, come So Fran. San

three just questions, Okay. buckets direction on forward you Great. your in any about acquisitions in additional And leaning in you guess, but ROI I capital year, those we a prior then or just on this allocation. more If year? experience are given projects, your buyback, given think experience touched -- of going any of this this

are Duane, our underwrite of I opportunities with degree are the without those think easiest portfolio. greatest in certainty existing to the goes that it saying that that

Hyatt are into and the complete continuing to look in that year. and in the forward to next Capital near those invest well program assets Program, we So we Transformational term

shares, last put to places as ROI projects, buybacks, continue quarter. million Stock X.X our we're $XX money portfolio to always well. looking million existing in for this

continue they here opportunistic up to buying on X.Xx take leverage acquisitions, X.XXx And And of at We if stock. course, leverage somewhere can be sitting make today. comfortably. back to us. We our will for Xx, to sense we're

lot those powder all across capital a significant have allocate we amount So dry opportunities. to of -- various of

question-and-answer Jim call to remarks. closing concludes I the will the This for turn session.

results always today. conferences quarterly weeks over Well, coming and joining forward great at other Vegas day. our again with discuss in us to We of you the in a the and to for appreciate seeing course you look of you, year. thank we many the Have the opportunity Las

This concludes today's conference call. Thank for joining. you

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