Sunstone Hotel Investors (SHO) 7 Aug 212021 Q2 Earnings call transcript

Good day. Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sunstone Hotel Investors Second Quarter 2021 Earnings Call. [Operator Instructions] I would like to remind everyone that this conference is being recorded today August 4, 2021 at 12:00 PM Eastern Time. I will now turn the presentation over to Mr. President Vice Senior Reyes, and Treasurer. Aaron ahead, go sir. Please

made everyone. Thank copy should you and which of morning, you, good By were supplemental, have and second earnings now, yesterday. quarter operator, our release available all received a

copy, If them can on have access you you website. yet do not a our

with that and in subject projected. SEC, we and to materially the Before everyone uncertainties, I other our forward-looking actual contains including differ in to statements. like would our call begin, described evaluating prospectuses, We consider risks XX-Ks XX-Qs, statements filings remind those cause forward-looking to could to this that you which factors caution are these results those from

and may note this call property non-GAAP also adjusted FFO that contain EBITDAre. information including financial We level adjusted adjusted EBITDAre,

to Chief that in Bryan us on We information prepared generally accounting Chris John call supplement are Officer. questions. With Executive and Chief and today a go your as would to Arabia, principles. like Officer; information Operating I accepted providing to answer remarks, the John. President Officer; the With turn After we with be accordance Chief ahead. are Please Giglia, to that, Ostapovicz, Financial over will available our call

talk the provide call the will COVID-XX. everyone, I'll back on you I recent and and pushed the quarter recent as you, of as strong estate. on provide liquidity, for an of earnings Montage of Thank results. Bryan exceeded booking XX-hotel dividends our our hotel and operating the update continued portfolio $XXX forward Hello, into provide more including Aaron. open investment surrounding our finance quarter acquisitions have start of expected. growth $XXX, environment better-than-anticipated for capacity. long-term the of at our today. in joining comparable our profitability quarter, $XX. all revenues Montage Last, materially our update on despite and later than on increased transactions, an begin, and materially expectations our also quarters investment, with second of made second RevPAR trends, first operating RevPAR well of company third occupancy and relevant Healdsburg, thank average near-term our the hotels, signal real an additional results, and most and exceeded the Healdsburg, $XXX about which to second let's continue potential expectations will of the provide fourth operating uncertainty quarter million, I'll up an sooner of our Building rate daily review was XX.X%. results of which update a an current of details To which materially with

comparable second to second $XXX RevPAR sequential almost RevPAR was the our achieved the quarter this than While first past year. of in quarter and nearly the the the RevPAR $XXX hotel double achieved open RevPAR a ADR open and this of year, was Xx more value, Furthermore, in of $XX June our each meaningfully every little basis the of hotel XXXX of on the month increased of comparison is RevPAR quarter have $XX this of nearly that January. occupancy,

steeper ways been have the has to the than trajectory recovery go, a still we of far While expected.

the the basing is result since important month the the schedule. in year. each on quarter testament ahead is fourth X pandemic. a this we quarter When the to the shared and X quarter depths XXXX. operations, our return the of This profitability our milestone expect time quarterly was the second in of last managers As of expenses, the happy goal positive achieved diligence of earnings least we a during report second EBITDA efficacy hotel made quarter the we that to second I'm results, decisions months of the efficiencies half to to at call, corporate operating and we proactive better-than-expected first achieved the in of of this first which our quarter, spoke investment of we the

dig quarter. of some the So details into let's our of

While segments strong, nights demand be people continues business. grew to continues demand than demonstrate quarter. in be and improvement continues commercial leisure to occupancy including get as more in compared doubled back all and the star Leisure transient quarter-over-quarter, demand shining to first room transient destinations, nontraditional to more to the incredibly

several up nights. encouraging physical outsized demand a our running Healdsburg, The Resort to driven elevate lagging levels, compared Wailea Edge. quarter pandemic urban special levels and the XX% of strategy in Diego for transient Wailea higher Regency and our performance occupancy Beach at The acceleration and to at approach growth around and resort transient staggering XXXX. our is La match including of room 'XX, the resort San after experience of rate Oceans than Oceans the approaching $XXX. hotels, significantly the corporate transient Chicago, special same of Montage and second in in Bayfront, XX% Despite Hyatt in witnessed normal price second then time pre-COVID XX%, rate a pricing corporate several room at specifically RevPAR respectively. pre in compared Hilton guest rates to rate Even still XX% Embassy portfolio Suites result Francisco to only more achieved these with hotels higher for XXXX, up Centric direct a same still Beach While the superior by hotels, of Jolla, meaningful resort our strength Edge, its offerings accordingly. our quarter, of of period Oceans Hyatt higher is the each levels quarter was at X% Edge still markets is the Even the adjusting with second that acquisition San

the been Edge than in Oceans Following our management hotel rate implementation XXXX that and resorts. several has acquisition more of asset of the growth the adjacent Street the initiatives, twice at of Duval

initial has an Healdsburg, rate our Montage second over at average to quarter. acquisition, estimates, in recent favorably $X,XXX of running the performed our Additionally,

markets We to competitive hotel strategy our our locations justifies and a that sought by owning continue spend advantage further a these and special desire after long-term time in us gives of in estate. relevant to travelers believe outstanding real product

outlook up fourth at but and our room quarterly short-term quarters the a new let's events group group Though a occupancy business group volumes XX,XXX closer in performance. the first exceeded business and also normally the Group Now in smaller nights group our quarter, Not several has the recent portfolio have second look is and lead functions significantly beyond projections, in case, presently only take approximately room recent percentage the contributed nights attendance experienced for of growth the improvement. than in quarter, significant sequential from increased third XX,XXX indicate months. across expectations.

forecasted. the Several contracted For of over Plaza pre-pandemic example, Hyatt lead the to and the San which Francisco, including levels. quarter pickup Similar was than as substantially second we saw association our anticipated. volumes and Diego quarter, Hilton up groups meetings corporate Boston each hotels, higher Orleans of planned Park Bayfront, approaching their better had groups and XX% was group witnessed we and of larger Renaissance blocks Plaza several JW in than picked last second San quarter, Orlando, group that Boston New Park holding

hotel of second and substantially a room occupied associations the in by group and With night returned. Beverage group occupancy expect But increased year in amenities was Catering and by for in revenue staying revenues hotels, guests association these other group Not and per and X.Xx sequential a experience alone other embracing the dynamics revenues the as corporate Food remainder such facilities holding for in quarter increased and X.Xx as including over basis, not they variables steady growing as higher revenues as increase citywide, rooms in only see room meetings the are and drove acceleration place, ready they a increasingly but our meetings, XX% our to we ancillary spend constant. beverage are reopen. out revenue food doubled parking. corporate and representing per on more also complete

$XXX factors, these TREVPAR, per total comparable room, the nearly or our over revenue from the quarter. $XX result a to available in As in first quarter of increased second

equally pleased scores remain financial strong. are with our we that guest our very portfolio's satisfaction While improvement, we are pleased

XX even is with XXXX, in example, recent For Oceans depth as increase of sustainable, portfolio seeing top increase Edge well the of additional rate as as of the made West, investment X we massive ranked Key the in up end years ADR. TripAdvisor hotels that recently the the decisions the us completed on Again, operational a These travelers confidence pandemic. the at is of achievable. benefits are during transformation and give in the XX from factors growth

restrictions, mask continue average monthly lodging $XXX yet all made our spike July. is July of in which mandates rate. parts has a open have $XXX, evident last continuing spike travel said, a As there mindful up XX, generated Texas. spike for occupancy, that trend had material in as recovery. RevPAR daily RevPAR witnessed we of particularly we that trends increased mandates not started that The ADR areas numerous increased and look meaningful our in in continued the accelerate a cases, hotels and July, reinstituting been country. COVID recovery. are XX% the improvement segments on certain unvaccinated That cases impact could all amongst since booking trajectory July's the such approximately cases meaningfully in postpone evidence the has and a sequential COVID in to in the RevPAR and early cases Rather in and occupancy despite eventual may result prior Florida vaccine month, This over the of locations, year. Through the the of COVID travel recent we forward, XX

higher RevPAR July experienced January. increase June from $XXX is represents this and that than $XX a past Our

resume markets XX% are The room and been COVID evaluate attendees This calendar increased Orleans, rest the Citywide lower frame time will activity that Orlando. said, and the decisions quarters prudently quarter corporate travel of many DC the given primary trends. we association of of planned at influenced group for blocks events over and historically in encouraging continue the That we room significantly citywide San our evolving year, that around group for for data operators attendance in make have assumes on nights and are to next Boston, group the meetings. short in assumed demand relatively than Diego, events. and New case. for are are As very the over the by several to levels uncertainty fourth our COVID, our citywide expected the anticipate books

performance relocated the team but from periods, higher for a on August the October to of fourth normal prior quarter. in example, frame in into softer these conventions is dates is the slippage groups the larger For Orlando, programs citywide and forecasting anticipating number time than

However, some trends, potential may there taking approach. upside based early this on be conservative in markets from

room to previously several picked recent their well our up of As mentioned, excess XXX% XX% blocks, in was which forecast. groups have of

on While trends various in festivals evolving that for Bayfront, citywide quarter several group scale are this far a a group in and to be meetings Bayfront; and association has business New likely that gives more case will a pandemic. events the down citywide in has will of a planners company every state attend. this Examples as of Boston a technology financial road. to events participants and at vaccinations trends. This medical and medical move more In-house at positive and the groups in-person Wailea; includes continue comfort from gets instances in attendance several positive the rescheduled be Thanksgiving meeting and that at not have Increased pharmaceutical Francisco. and over group and to a forward. also group confidence feared. level we given pent-up addition stronger of Orleans, confirmed greater of which travel the the landscape association and remainder us resulted large and trips groups for Renaissance Orlando; the group, These from at initially regional second held result restrictions year the group muted demand San event the that in broad-based associations the back it group In-house services the retail, our include the are Hilton planning leads, incentive the the is meetings cry of Hyatt easing Diego witnessed business few to of Hilton just has group meeting established Comic-Con the fall been San their will demand were

same an we fourth books are increasingly travel, these motivated robust half number second numbers including be corporate From to XXXX get of higher On we larger and in a of make than first assumptions, growing rooms-only the local the average, business, day, also increase weddings the and on the spend the substantially half in vaccinated expect government of when With mix. activity of that social on the Based group room characterized group record should year. of our corporate room on expected group should will in gatherings, people the year and in every to of the the the most on this together the events, the quarters compared XXXX. occupied room quarter. group trajectory. optimistic fourth association to we of are in part group the remainder return association up mix continue and group banquet and of that for the for anticipate rates increase people group anticipated business Supplementing revenues rates celebrate. the third given and corporate books and in period specifically half XXXX are second social for Furthermore, of the

In to trends transient steadily for optimistic the addition more improved. have group business, outlook

accelerate. levels, While short bookings continue to our of reservations net are transient still normal

improvement term, relatively Our saw XX% year declines to booking same the down the going substantial expand. saw now quarter. of to trailing to compared the to from the and X-week still into time which in marks XX% in though, XX% XX% trends first second we to are declines XXXX, we the the only XX% The continues short window, XX% booking a

out come Day companies leisure up demand to to to demand the return as the accelerate pick first office. and gates, quarter the transient business third the expected of is was following While to in Labor continue

Moving to our recent activity. investment

discuss performance exceeded to Healdsburg, the which excited Montage has strong underwriting. are of We our

the and expectations are we that our While in occupancy rate has of would month perform surpassed ownership. each confident this ramp-up hotel in well,

occupancy occupancy During of of an rate over the at ran $X,XXX. nearly an over rate XX% at $X,XXX hotel quarter, at the in XX% the hotel and ran average July, a

seeing positive from quarter, from in hotel the In the are EBITDA compression weekends groups second and interest we also and demand the broad-based group demand alike. achieving We with week. schedule wine ahead stronger-than-anticipated the outperformed during the strong Profitability country and transient experienced quarter. transient on second of

these to sheet issuance provide advantageous an real agreements. they favorable that and capacity acquisitions enhancement FFO transactions, long-term only estate. to use into can Looking transient the amendment will upon buyout will since Layering growth, has preparing in will of strong additional to last record-setting balance result of forward, full excited including unsecured earnings hotel with leads preferred another extraordinary of be debt debt and is of equity about. has series there's of group meaningful this transactions group its with a lot cost Not for success help relevant we received acquisition. The pursue our greater capital additional us unlock in we which a strong that second drive executed property standout reviews, number translated our X already our at but resort. Since call,

second quarter our the on we on we the the is improvement to in be and of the to relying up, to for half for stage of power is strong one to acquisitive debt shared grow position the This set so are on ongoing company the scale believe to share. we optimism in portfolio, sheet and I'll advantage often leisure forward expect To group as of use fickle goes shareholders. our advantage markets. while COVID-XX. go the and in balance is for do a Bryan, With enhance the threat to that, and information, continued please on. track Bryan. equity many without increasing quality, NAV things by the value to We of increased capacity performance take earnings sum the that not booking segments turn our per and Furthermore, the create others, over ahead. in enviable year significant year Based second despite and portfolio plan can it

Thank everyone. morning, you, John, and good

$XXX total the Adjusting Series forma and our we balance of quarter our the $XXX at As of total and the I quarter, would the restricted of issuance approximately million been equivalents, the expected cash approximately redemption our of for including cash $XX cash. end stock the pro F, Series had million end of of preferred cash of have million.

addition million In cash hand, maintained on on we to availability facility. full also $XXX credit revolving our

the of deploying second positions existing after favorable another real grow our that period. agreements, and capacity During could continued in fund the capacity, and during portion estate. this limiting debt us unsecured quarter, significant a covenant retains restrictions long-term which to the appreciate of liquidity partnership of amendment We relevant amount company we to to noteholder our the the Even and from the through relief better quarter, sheet removed unencumbered acquisitions amendment acquisition executed liquidity balance hotel most from lender our the our relationships. excess recent additional use support long-standing we

John since executed issuance upon transactions million preferred. our of X.X% I Proceeds cost preferred we As the Series Series balance equity low both existing X X reduce were both and through used from last our of our X.XXX% the enhancing will coupons redeem higher being preferred H mentioned, preferred transactions, and earnings which at per also call, time issuance, record-setting these to sheet additional year. dividends are by of $X.X our comparable

take of X equity the most increasingly structure I capital we pricing of upsize for a and release earnings part Series transaction are we the to an the attractive elected offering, provided second the of have as we'll preferred quarter stock series important increased Given our result the full our to long-term Preferred in our our incremental acquisition financial recent attractively our quarter, is and have the which in and strong Shifting results, to priced supplemental. details demand in financing and of activity outstanding. proceeds. and exposure,

reflect environment group improving and an driven increasing operating amount commercial of continued Second results an by business. and quarter transient leisure demand strong

share a our return full million, was EBITDA, second adjusted we loss results quarter adjusted projected. than had the a diluted quarter was Second expectations positive to sooner corporate $X.XX. marks and previously EBITDAre surpassed FFO per and previous $XX quarter of These far

marginally was expect forward. to FFO it quarterly quarter, we in total the While going second resume also profitability negative

Now turning to dividends.

we our preferred until With I and return to Operator, our Separately, we quarterly the for We distributions can call common the securities. questions. Series have dividend to has H now our income. taxable approved ahead. suspended that, please Board go open

first Instructions] [Operator line question Rich comes the of from Your from Hightower Evercore.

hate about calculates, to I question issuance ask understanding But lot of when ATM do same a to that a a you want obviously on bores of competitor's inputs, NAV, are I I'm about, because think I multiple ways it of people, what these the call Sunstone how to earlier. want relative full on And thinks calls, at but I it's asked looking because academic there's different just questions the sure get it. to anyway.

just cost the really of we as equity think about as issuance. -- there calculation help we understand So the us think again, --

Sure. Actually question, thoughtful Rich.

calculating time consensus value of take making spend I a think of those something our job the we result is do the NAV I at It's And understand, When X of is type look we a that are environment and in as the sure our -- It's of folks of $XX.X. than, to think that I'd $XX.XX, time, NAV trying a would right it of we of now Rich, But Street inputs do at. NAV. more $XX.XX. that portfolio. good at value below you, say I time spend look around look knowing I fair a say, equity. calculate we before a that, did is of just amount at. I understand Green at that that Baird, to lot $XX. this And So is EURO those NAV think, NAV difficult thoughtful, including it's consensus of

a do knowing difficult. that and I think to speak, should cap recovery rates, rate internally. a flow, it? of cap look NAV now over at we How We Knowing take we look area, increase right that that, at time, a to it cash that's increases. incredibly fair discounted as is continue debate so price combination in the key per that then

probably our we how own over than before. bit we cash using shifted So discounted at flow little and now how a NAV calculate we more a bit have look little it time,

So hopefully, that Rich. helps,

comes from the Your from Barclays. Anthony line next question of Powell

a to Just that follow-up question.

a you guess, bit of an equity? buy? offerings that So do those quarter accessed I to equity relative real a out grades the in what deal estate did extra there you you spurred obviously, the or you ATM you are long-term opportunity you for see do terms issued And preferred. to in actual and seeing available

Yes.

$XXX acquisition Anthony, to of One, said leveraging. We've we at what way terms about was So equity. said completed XXX% again, back be expect through growth. of which loud it external million let's as at go we've And the acquisitive. near-term already leverage clear. to than look rather and we preferreds talk the Montage Healdsburg, fund we that in tactics We've and look

then that, area portion for our as $XXX that would and of are debt expectation under asset million. So raise. an the of with in small would funded below of we preferred that be have be the West a It also we just disclosed well on ATM the Coast somewhere very contract

of of of both and we acquisitions, say, and million total so put you equity using million, together or about again, our we're X% proceeds, of debt in about we're the wisely. if capacity, X% So talking $XXX raise is which, $XXX those think an

pretty small well increase. But basis, our excuse grow capacity as about earnings that as capacity, here. as it's So as of, to following buying amount to basis, right the million NAV only talking to it that on on Rich's then buying continues increase I will is. small $XX prudent a long capacity, our increases comment, think should term. we're us at grow, continue consensus what actually and around up $XX hurts -- debt I don't it raising to me, which, think million a continue

the contract the you Right. just deals, of else more out overall seeing terms transaction X under what positive a of sign, it. on availability just environment? are is Got acquisition but the in And there

We're active.

said on transactions. in-sourcing calls we've over active for and year at I well in As a been previous conferences, now

in the transactions, I been and in seen I'm a tell transactions the well. excuse all, the uptick mean take an though active. hotels it quality as we've broker years. bit evidence me, doesn't active seems of for acquired we the little It few pleased Some But that with even that going at of get sellers, long active peers to the of better we quality of a potential will we -- us. potential time. we're we over off-market have transactions expect that next you, direct looking We're dispositions have always in communication or but are in do to opportunities quality as acquisition of potential them be our some

comes Your from Smedes the next question Citi. from Rose line of

Seth is on for Smedes. This

disclosing under gating what the know acquisition? hotel the to to issues wanted are Just

disclose are we yet disclosure, most not we we they're done. very until the that an then announce of size. that we it asset the we actually was were to degree on prudent issues, preferred gating announce not under were raise, the position contract equity feel we don't we even given we ready -- The just it, it. certainty transactions thought get will hard contract. it But Typically, that high where will close, we're we of have to a that once under disclose to as And

and of for side on terms you XXXX composition just terms then seeing of the are group social? in what in corporate And

seeing quarter. in So but for are color, starting turn the is to a it we're in over third group I'll activity any we what more in seeing activity general, Chris lot

meaningful of filling the in we meaningfully. in hotels, increase moving to that start I there's our that that material now, cetera, the second quarter, there'll But going were of right call, we rooms be XX,XXX continue city what have spend. up we've or rooms et of XX,XXX on that anticipate a, we important? the or increase, a from quarter, rooms, represents like but it why lot of we did be a As to something to increase. back. addition so. In seen pretty our only will not to I the associations, in And second coming think shift a so see number said wides only business groups had in and pretty hotel number is a part because last group it business, to seen out-of-room nontraditional important Not but we That's

we color so and groups spend come Chris, only not but back, hopeful, expect out-of-room any of evidence And continues are see that very to see? types increase. we we that on groups of to

be. 'XX be, it point. 'XX But definitely encouraging. when I mean, never seems thought it Thanks, John. as to it we're be at being to pace, we we is Closure production. Yes. lead but would pleased 'XX at group for seeing to down to look this is it where not group relative pretty where is strong at We're fast as like we'd

it's business, more good As across associations little be a far pickup to but of short from corporate well. and We're the as continues as there mix it's very board. the seeing term,

revenue John's about to very side we're the encouraged. things, Speaking of comment ancillary

our take a for wide of look relative to you when 'XX, several calendars have city that, strong to adding levels. the XXXX markets wides city just at And very

So for assuming this recovery next hopeful continues, we're year.

Yes.

Specifically, San are to hold planners their on planners meeting and San calendar and that meeting plan just to, XXX very spoke of the Diego that in still partners X end More XX% of those 'XX. of our what is meeting markets, they as that, term, now mentioned we're citywide very, of X -- between know, the meeting brand -- the looking us. at telling you short Diego, the John, bullish planners in

trend positive leads very leading a to certainly XXXX. that So into

the of Street. Our Green next line from question Lukas comes from Hartwich

I'm going cost new the for where of regard be a labor in And pressure do more obviously, front is or kind think to labor you be transitory seems foreseeable -- divide transitory? anticipate the whether Do pressure lands we're just inflation, to think not. that do it for curious, you industry. future? to think on debate? area seeing we're on a hotel this you Or kind the seeing So pressure that's you there be of in will of do

Well, we're ground there hire, seeing probably a little difficult pay on is above my grade, down the is source but employees. question a to quality inflation bit now. what It is wage

on up. wage limiting small cetera. number hotels, offering certain Our that provide areas, et are moving as of And our are a bonuses, in several services we limiting sign -- are we we rates the could we're of result. In

process. where unemployment hiring the Labor benefits seen the hope we sunset what labor that supplemental of in some we've side. to relief benefits. based start us However, in markets that -- easing the gives some they the of incremental should of getting cut that some an There following unemployment be following some the benefits, those on those seems Day, on have And off

from James. next comes Your from line the Crow of question Bill Raymond

X discussion. labor questions the on here if you don't mind. John,

it's go labor sort just As to thing I not turnover ADR, of the and whether expectations and availability go running people X And in have you X challenges that think have to you're workforce. quality higher another and with guest it's And up up up. rates labor, to thing. wondering but the into have of showing

there of that we're types assets just great areas number cetera. we like actually and And those question. as to brought for And accordingly. is are There's we to we in servicing are couple guest operations, said staff but sure make It's Healdsburg, that et Edge, the This at hotels, just the that folks a limiting expectations. meeting hotels, a in Wailea, always a particularly back Lukas, challenge their Oceans we our accommodate. I can of of think

that have turning capacity, build so want so away or to we right, make strength points, because going particularly And because speak, yet spa of the For we are for those don't experience, example, the back those need to make the right guests restaurant those we experience have we a associates. what's demand the for Healdsburg to and full that's in loyalty to full hotels. services, we now, just outside much at price to

Yes. And wiles. you John, All right. mentioned

already. a real We I'm politicians and just your we're whether ask on and pivot Hotels? residents thoughts started So to to just pushing poses back. pushback and wondering tourism from again, what Hawaiian there let they're hear me and starting that more risk just over are quick if

economy so represents an major such Tourism long Bill. component being think don't term. of issue that I just see the I a long there that term, don't

of question Baird. Michael comes Bellisario the from next from line Your

your John, recently? mostly in just M&A divergent to transactions? back just that the -- the you Is we've be that's at seen path allocation. to asset improvement want growth think capital prices Or that occurred do to changed to will go want all given fundamental single view the through stock on

that question ask I'm sorry. again? you Can

your by do changed be on Just driven to view that's mainly fundamental transactions? really you occurred? going single is improvement M&A recently, Or at portfolio asset the think all given has to path Sunstone's growth

now to see M&A, stay more far it's I much discounts capital that say be more than expand. I at -- should there -- right fundamentals trading stay so I they likely I if hotel think rather a more out if now, operating to NAV the are prices likely where be discounts actually would the transaction REITs, NAV, next are everything be there's for that scenario I'd likely transactions. at share If and which say Yes. to asset should probably could they transactions. some single single it's privatization the asset to to is continue time,

does view of and dispositions about NAV change your think portfolio about the Got how it. that And pruning forward? relative you going to part pricing

sold 'XX, going Not in we've my a am down 'XX, path probably by but time we're my little hotels. I off regardless. really, here, numbers that And XX bit,

give I portfolio. still think that a XX or are that our take. not handful so there or past sold years long hotels for portfolio are vocal of very the in We've our been X-plus we've in

we'll to do so continue that. And

question Compass line comes from van the of from Your Floris next Point. Dijkum

maybe some right that Just things West if in strong property. are and Key Oceans perspective and obviously, you mean, can give Edge now I return. on your on acquisition incredibly

return similar If a end that other expect expectations with either contemplating to Edge Oceans acquisitions million doing? on the you've think, based or of for I you -- for are we some in priced us of higher acquisition, And 'XX can key more something can acquisitions on done, done $X is today? for the comfortable other higher some your get what the you've

And the had us than probably Oceans bit back this we're on but -- we X% acquired a hurricane shortly Edge -- set looking after little yield more we -- anticipated. bit it. delayed We're little around at Oceans So year, probably Edge, investment. a looking

the that, So now. we're like asset money in an

tell will was I market, Although we because bumpier of of you, the years it bit little than largely first couple hurricane displacement thought. the and a in

Montage underwriting in we're the work it rates rate loud there. X% X believe that expect a resort stabilized are really Last done, that we've said rate of a we prepared as increase, month, rate of repositioning time, much. Key my consumers Healdsburg, the asset supporting When that of yield asset range. said management As evidenced we of hotel, the given remarks, XX moved X% a a are we've on That same the I to at And X, the market. we in the $X,XXX. that we've clear be But and on now path by comes that top West the asset, to in years $X,XXX. significant so was did out to we the

Now asset But that that we've very to et what a come with create comfortable do just of will not know cetera. because month seasonality, X fine given feel and year, value. that does we I make

will to that been But hotel, look hotel lot per economics that as of several as So EBITDA much the on focus XXX- at a price there's hotels. XXX-room economics the key. of take you a when of generate

perspective. taken So it needs into to be

I concludes to Q&A John closing session. the over would for turn call This to like remarks. Mr. Arabia the

your time. for Thanks, everybody,

follow-up get the around yet, please, if if into butt been it. you please, calls. good and your Have vaccinated not doctor day. are please, any there's Appreciate vaccinated. a today And get have We

you gentlemen, call. this Thank Ladies conference for concludes today's and your participation.

You may disconnect. now