Hilton Worldwide (HLT) 7 Feb 242023 Q4 Earnings call transcript

Good morning, and welcome to the Hilton Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jill Chapman, Senior Vice President, Investor Relations and Corporate Development.

You may begin.

Thank you, Andre. Quarter Year Fourth Earnings Hilton's to and XXXX Full Call. Welcome

could to begin, to include these that results statements those made we our and we obligation only as forward-looking remind in forward-looking materially the indicated statements. would Actual today will Before no forward-looking morning of revise like you today. update statements, undertake from or this our statements. to speak differ expectations discussions We

results factors a recently please to of actual of could For section filed most differ, the the our that Factors discussion XX-K. Risk see cause some of Form

addition, non-GAAP call. this In refer will we to financial measures certain on

You can in press discussed our find measures earnings reconciliations of release and GAAP website financial call our in to today's on non-GAAP ir.hilton.com. at

our an results full and will will Global environment the year. President Officer, then our Kevin operating current President, our Nassetta, overview and our the the Financial fourth Executive provide year company's and outlook. Development, and for review Chief discuss Jacobs, Chief morning, expectations This and of Officer Chris quarter

remarks, to With to take pleased I'm over your the their we happy call that, Chris. turn will to questions. Following be

Thank you, for us thanks everyone, morning, Good and today. joining Jill.

report strong We a of happy another end really to are was year what Hilton. for great

$X.X top system-wide Strong For up line and across roughly every performance company's chain level history. XXXX record grew major billion, RevPAR in the XX.X%. the with highest drove year, EBITDA region RevPAR XX% XXXX, scale. versus XX.X% solid nearly of increased our growth year-over-year Compared to adjusted to

further ever a rooms, guests new and X to and we expanded year, introduced near all strengthened our before. number than enabled network opened launched more us the record During our welcome of innovations, of which brands, partnerships new

bottom shareholders. free and performance top to to us flow, cash return strong $X.X billion significant enabling drove Our line

company up for than in an occupancy. strong rose meetings driven Turning small trends. year-over-year, due by uptick the X% year-over-year to our X%, and in increased X.X% international recovery the Business both demand. RevPAR more RevPAR quarter. transient [indiscernible] by with exceeding and in results continued System-wide RevPAR and rate group convention to expectations, Group quarter gains

increased As versus third to decelerating X%, transient expected, quarter, leisure largely RevPAR the seasonality. due modestly

XX.X% XXXX. Compared outperformed quarter. points basis growing points in Demand improve versus X% compared expectations, with continued X% XXX Business quarter, RevPAR more than versus grew up third up XXX to system-wide to transient basis the increasing sequentially levels. December recover, peak reaching more than the occupancy quarter. RevPAR Group XXXX, the versus to third XXXX and to XXXX sequentially continued system-wide

leisure expected, calendar decelerating strong, versus XX% remained and growing As RevPAR XXXX sequentially shifts. to due

X% ahead, As we system-wide X% line look to XXXX. the growth top of to expect year we versus

all to performance driven continued regions, the with U.S. international outpacing growth major modestly be markets expect by We across

by group segments, across in and transient with positive driven continued business We steady all growth coupled also expect leisure demand. RevPAR recovery

expect We convention association large and continued meetings and performance. recovery strong drive business company group in small to

greater resiliency. companies further and group XXXX, a small- businesses position with year-over-year mix as XX% value percentage of and is given higher medium-sized of meetings small demonstrating For increasing the up rates

to development. Turning

Garden our fourth to in milestones throughout achieved the quarter, continue in rooms momentum Hilton quarter the We the largest X,XXXth year, positive including openings Inn. We several our the and quarter, see openings XX,XXX history. opening Tru in the of of Hotel our marking XXXth

also We globally XX,XXX rooms reached for HomeX.

largest ground-up nearly Stadium, hotel Georgia. rooms opening The the Center the features Georgia in years. over including city's the largest in over meeting XXX,XXX property by ballroom next celebrated Mercedes-Benz of development Additionally, Hilton and World square X,XXX is to located strategically XX we space, and Congress feet Atlanta, Signia of the

value of hotels Tapestry to service XXX proposition hotels with owners. and continue openings Curio collection deliver Conversion the our to accounting majority in unit and rooms conversions activity the represented brands continues remained XXXX year. achieved of Both gain of traction X.X%. for more growth year, owners. in we other opened approximately any XX% strong, strong and Full and full XX,XXX opened system the for For totaling and net demonstrating large than

robust our pipeline the openings, half our up a with driven totaled strong XX% in construction pre-pandemic up XXX,XXX signings level history, of XXX,XXX in record with roughly year-end, year-over-year our Even reached year following pipeline construction under highest over and compared starts. to XX% rooms, rooms At by levels.

XX% driven increased the full For by U.S. year, starts the

slated more with X system. construction under than have X hotel under other in rooms approximately to globally any to continue company our We join rooms construction every hotel

the positive even drive Studios. to by signing starts LivSmart brands, look and our Spark boosted continued and we we year newest momentum stronger openings, to in expect ahead, As conversions X

luxury announced our the partnership of XX expand growth to XX as X% year, expect this over X.X% range morning. expect This we add end to net For will exclusive hotels Small meaningfully system. we with of our our partnership our to to upside the that unit opportunity to accelerate majority the of guidance the the of to higher Hotels we distribution full Luxury continue points for with to their World further XXX from basis

and a Adding heavy with give our more doing in and powerful even a opportunities book, network earn our portfolio strong orientation way. extraordinary a dream, growing luxury points will to burn so to portfolio this we're further guests capital-light effect and locations resort already to enhance and

with only channels. existing The royalty driven will brands, our business fees our through rate on will paid the but be be in line

this We revenues and portion expect spring. into drive start hotels to we'll SLH, meaningful a for system to integrate over of time system our later

The program for Hilton a for booking the Last XX% and SMBs of benefits mix. providing experience the SMBs. by growing in group launched thousands multifaceted meaningful January of comprising registering businesses a approximately The weeks. mix and percentage in business website of just targeted with companies account our for transform with specifically our transient first program designed and along for our few quarter, announced medium-sized small we designed travel Business, to

customer to drive opportunities significant base this resiliency further and Given its we growth. greater higher provides rates, think important

on hotel food StiR in-house announced our noteworthy the the guests. to of arm and offerings projects needs Creative remain innovative we by offerings. Hilton the have Overall, and us and already our Toronto an development in Canopy focused StiR Orlando, the meet of elevate hotels, experiences launch operators beverage our to at owners, Conrad with We Atlanta. through that ability teams evolving beverage work the and Collective, in and including unique Several to launched creating food in gives new Signia recently the consulting

the of Workplace by serving the honor In recently This we the Great being the World's do. a appearances people everything celebrated in We achievement of #X people, the Best our business members of heart and the named first are absolutely at best-in-class team Work. follows program. hospitality consecutive has recognition top marks list to Fortune and X company a on Place world's achieved this best time remarkable

we included performance. and seventh in world our both were brands growth. Jones the unit America year, performance our Overall, world-class prestigious pleased engines honored the for with we're commercial most and consecutive to Sustainability accelerating net Dow corporate record pipeline North a and the for extremely sustainability with Indices, be Additionally, ranking driving powerful

continue stakeholders in in delivering confident our value and all of are XXXX beyond. to our for We ability

on quarter call the detail the over Now to ahead. expectations for more our going and a turn to year to the I'm bit give Kevin

and Chris, morning, Thanks, good everyone.

continued was the currency-neutral and During in basis. year on grew a and by comparable prior driven versus and the quarter, Growth international system-wide transient. RevPAR group performance recovery strong X.X% business

grew better-than-expected Adjusted to EBITDA by X% high RevPAR growth, and the due of $XXX Management fee XX% largely performance range. in Outperformance year-over-year fourth driven million license up our growth. was the year-over-year. better-than-expected exceeding and fee fees quarter, franchise guidance end and was

For items per quarter, was earnings diluted adjusted for share the special $X.XX.

in our Leisure regional transient flat business by X% grew with XXX in RevPAR basis points and year-over-year Relative the fourth improving versus U.S. increased quarter, group. RevPAR XXXX to with performance. U.S. performance peak the comparable U.S. quarter. Turning led transient the difficult comparisons. Fourth quarter levels, to both third year-over-year was XX%

In performance across XX% delivering Large boosted all business. the the growth Paris, X% increased Cup fourth strong including World of cities. grew group across segments. several drove the RevPAR Europe, RevPAR by events, Americas RevPAR with strong XX%, year-over-year outside with key markets In U.S., group in solid performance urban year-over-year, Rugby quarter

region, all growth. led Pacific segments. continued continued along contributed solid In Change COPXX the to and was The quarter Egypt led Climate strength in the across strong fourth performance Conference notable Asia by and Dubai, Middle up year-over-year, and In with rate Africa XX% across year-over-year, increased China strong region, East Japan trends RevPAR demand region. by in RevPAR in recovery XX%

year-over-year excluding up China, RevPAR year-over-year. in Pacific Asia was RevPAR XX% region, up in the the in with China XX% quarter,

to Turning development.

located outside pipeline, under for net approximately and XXX,XXX U.S. Chris year, up nearly over and XX% ended XX% with As year with the rooms the construction. X.X% mentioned, grew year-over-year our we which was units in half the full

about both the robust year and our in excited development strong U.S. international markets. demand ahead, Looking to and the we story products for are Hilton-branded the

Moving guidance. to

For RevPAR first expect year-over-year. quarter, X% the to we X% of growth system-wide

We between be $X.XX. million for $X.XX $XXX and be diluted expect to between adjusted adjusted and million items $XXX to special EBITDA and EPS

of of to adjusted X%. special We For full diluted $X.XX between year X% between adjusted of EBITDA EPS expect forecast items we and and $X.XX 'XX, RevPAR for We growth billion. forecast $X.XX $X.XX. billion

not note do future our share Please ranges incorporate guidance that repurchases.

for We million of during cash of year. quarter $XXX for capital share to a dividend return. fourth the Moving per $X.XX paid dividends total a in the

buybacks of authorized billion dividends. per we returned and the Board XXXX, our quarterly first year the share. form In dividend in a to full For cash quarter, of $X.XX $X.X shareholders

return year, form full dividends. of approximately $X in buybacks expect shareholders to to and the the For we billion

many question. like our you in possible, may to to release prepared we first would limit question, fourth quarter now found this can as We with yourself on ask the to for details MJ, line open that completes any our full of please? speak Further We questions earnings This year have. X as you you can like issued the so remarks. results we be we would earlier have and our morning.

today The first JPMorgan. from comes Greff with question Joe

can you on doing comment you M&A? to it can the your would hoping but since specifically get overall revisit I acquire for some you brand of just brands. maybe was of an graduate not on And of was that might suggesting M&A then to week view hotels with all, at if for opportunities you something want this been the talk criteria [ earlier you've I close sort you this, Chris, be love brands. it's article brand. ] about Obviously, to

of every time we years for do the level anything and I've system, Joe. I'd with I've and that and say portfolio does going first the customers, XX being to -- done the haven't a and of happy question. I all specific. we've is, would rumors very of the tough a offering said. ever of speculation really I've Yes, is, right, And and not been. something what I'm this standpoint but never to number last you're get have from really consistent a of but attitude that that the on really Obviously, as brands filtration foremost, brands been market have, I'm asked you our I my been our in figured be high And rumor something one, say all, standpoint we point filtration out, have. on to asked that, would at consistent as is family and additive that we that number experience we the If nothing, always same one. the system is on any, from fact attitude, said it's we I've is been -- never, additive the product M&A public, comment

done two, a of number importantly, the the way be that's accretive value can in to And it and company.

said we've and nothing to at is the here, been XX filter. going that XX much that on years I've For pretty everything. passed everybody that through looked I've years, last

the reason So that's done anything. we haven't

are system a view for stress my But different. that more lot interest environment more as probably, rates normal, of things reasons, in and tuck-in to opportunity modest that The is, I like the I quite what is and that view little things in acquisitions. than a we're do of otherwise, There think, sort this. presents bit are in

about obviously, filtration strategic a partnership announced questions system here from the very acquisitions. about the other we're We rigorous. think I'm sure is Now, announcing any and excited really on I that SLH call. still not talk And sitting we'll we're with exclusive

obviously, we So will that you extent have the anything we and report know. guys to to first the do, don't that be to

have we is different summary so attitude. And no

bit look maybe to more long continue in the than seen a the in stress everything, environment we've a at time. little We but quite provides opportunity

comes with Bank. next The question Carlo from Santarelli Deutsche

XXXX. you Chris, strength you kind in transient group about obviously foresee -- for talked that of you and business the

pre-pandemic from shift away respectively hundred ADRs basis couple taking some mixes down those are settle of mix for I And year? was demand the think impact to wondering from points that XXXX? has obviously levels, leisure of what you Given where on presumably a kind for degree they

Yes.

fourth look at year the above together, are most continues technology weren't which or the a you the growing prepared mean that beyond a still probably with they segment blend to probably view, less. every we view, at if still was broadly, a the -- where point Business an transient and I segments, world occupancy feel think bit off full were SMB or little transient but at ahead. prior from they above. bit corporates segments most And of exception comments, about you the level But still when high for that from to good year a different. I that of X% pandemic really were, either those recover. and segments. point strong big at said in off. banking together is business mean bit but finished of But RevPAR I levels far off, to or the quarter, it segments all consulting, I very all segment blended in of were relatively back behind. of the is is

and do we economic We decent landing numbers that growth, there view broader of the to we by levels of we of power you'll finish continue time this think end the to continuing supply of year, going we're are the soft the year, assuming that And reasonably consensus that a time that we to believe the be and at low continued more by get pricing have very everywhere sort given normalized else. demand. think

I'll with and I around our demand very terms On from week the is being in of this mean off quarter around teams is periods. is the anecdotally, the the all for commercial strong. of hook. you last the and world snippet indicator. position demand new the said But of it, Every best watermark give -- that's like next sales up leads, really side, leading I've group bookings the the group sitting table future all high all our XX%,

seeing a do to is to people they are a good So still believe very demand demand. sense time We pent-up in that are things we haven't new sticky strength. that done that group quite of lot it the incremental for long is addition the need demand in

the and space, the big You're citywide the come association, frames obviously super group cost. associated start sticky seeing planning to in That's business the back. time business the because with of

group So you will cover very which as we lead both, definitely on the system. think think And I'll strong. will be rate about asked rate, a we result,

endemic been amount so space limited ]. last built is there only broadly, years a low been think and that just demand meeting of lot not over much [ if have supply that of space, of the a but is Just there's about has have hotels supply it, you XX

have mean, own for out we're and was things and because I around conferences managers space you sitting in own yesterday, a going sales to years get these planning we so And have start we our our can't general and I X conferences hotels. lot this table like that demand. X all of

So supply, pricing demand very good. is limited a as should result good with be

not the new [ there's And It's a of income have the because will which again, ] leisure, than lot to reasonably think They it think levels, our more on desire $XXX,XXX we money, probably is in consumer, of then [ plenty supply. volume rate plenty And to consumer, of in our grow. We do do $XXX,XXX good. particularly still range. ] travel. just median

after of supercharged will it think coming probably out we business with leisure is So transient setup starting will be it more the then it good. so it -- Obviously, but it volume, fundamental line but will than recovery grow third transient. will got rate COVID, economic grow, then group continued in

we sort slowing XXXX. that to broad we see rational decent landing broadly, feel economic again, continue on So of a reasonably and -- in consensus a based good decent but really about soft growth view -- have

guidance question follow-up tuck-in earlier. that do the that XXXX, and XXXX of you Joe's Great. could, I'm guys that of And SLH any The M&A from on if to in going kind assume would be on guidance a I just then top for provided. you

points to that range, X% X.X% of why top on But the in The of organic. that. or which that end we XX it of a to towards to X% a is pure high think Correct. come with hotels high organic. if And do on is anything all strong basis the we in, to I rapidly SLH that. leading on is is said it's XX the else, indication were of depends top comments, end prepared pure X.X% my how to there's

Kelley America. next comes The from with Bank of question Shaun

economically that last you Obviously, off new little can pretty could SLH. us deal a maybe give bit I But there This course wondering the territory. the of Chris, think and itself a, about normal what part the build it the quite the selective. in sounds to in owners, about something going is of which kind little systems -- you see on your directly we just normal bit distribution point I that's similar more of a color importantly fee there And exist but any not side. sensitivity overlap that capability can other there a out be think could are more is there? you. and you just is picture, out know may to do help collection But I other there places with provide think for you then big utilize you

able sort hotels bring resort and to a had I heavy to of this out Small think the mean a to them of orientation are of could us. super very it's XXX markets We're my able We've to hard there like if going and relationship small get SLH, Luxury, we're really we're moons the with the oriented well first working luxury aligned you small, excited be very it done. be comments, to that heavily unique, super but it, about prepared get tell for to We've majority from into. it. you excited obviously, been hopefully that and all, Well, while. very about stars figure as it's to a Yes. really on super niche for are

XXX so And it overlap look when we of have -- hotels. vis-a-vis, our you at the luxury open existing

XX XX, another about have We the in pipeline.

So super portfolio rapidly. growing a terrific and

-- this our to of going higher-end through is at points, vacations really burn did look the unique feel book their really We there because around earn received channels, a ability overlap, of of like to offering the none this on you bunch terms When these like. customer the customers, and our groups over standpoint is particularly just a places points, go research and is of this the really it's from customers last year collection hotels. and but their super well our be in in it their focus

think And luxury with what XXX around most XXX take the way all it literally us into to to XXX, unbelievable pipeline turned hotel -- the an portfolio it hard so is unique is scattered and the in and places duplicate for best perfect and we or world. combination and currently XXX XXX

based including Customers, our them we up and are think this we going all So think, we're the channels. really it, in excited is all we start and ramping did to work love to great. on

really we In feel it. of economics, terms good about the

we our that this get mean us in be -- As of will I real the we're getting -- what very comments, similar it well. as of direct difference will up. the all brands. would fees take significant. which are we of will I I license be our on in economics to in ramp get straightforward. as my we'll we for said case, sort I One said, typically think be with really And in there's business zone paid significant. mean to time that we that we in want generate It this

sense I for It's we that we'll fabulous for network in of as fully be sort meaningful we really are investing the effect, moons for capital-light. customers, we fabulous shareholders think said, So and nothing. and and like, generating think fees, our stars, the good

And sorry, follow-up just Chris. as there, a

sort thoughts look could Just platform. that any on, again, leverage future the sort of opportunities like of

got [indiscernible] question. time. all We That's right.

mean are about to always we consistently think things we're there an all I lots I build create effect. network brings time. mean ecosystem trying and I loyalty. -- show, of have I different to that since customers very the the in lot road that mean, at talked IPO looking out builds a

we're always other so opportunities. And at looking

giving And our think see. them of of building we're in paid and are -- the interested being customers effort I can is lot resonate we'll to and so report and possibilities bringing there that This that in in. we And Where nothing this. on new into customers, would existing get them more can that that more But keep sense loyalty a I with in more these for work at and commercialize we're do that see, focused to nothing, now, builds regard. SLH. anything say, products right think we But we'll effort built to system. this point beyond the we the

from next question with The David Jefferies. Katz is

as Is that strategy and a well? [ Just into any use over a on smaller same business or or I the strategically business smaller tend or not case whether to either there one. particular people Is I've ] there to choose time? admit barrier could hotels, SLH around follow to properties unique thought a as transition naturally theme. stated more

and think system. much going a growing, help the not I and being because the percentage locations. at barrier. it's to the are them look of static. growing, we we're absolutely a a in way, By emphasize our resort grow pace as faster I hotels a hotels, mean I it's number XXX of there's by over of and Listen, no at by you like them -- rooms if it lot way, It's in resort their

grow. will continue this think we So and to be to continue XXX XXX, XXX,

good it's a have are some luxury in that more plenty and exposure in world locations urban are percentage-wise, there's the urban small just -- that we environments representation there around resorts. luxury really the very urban are are hotels, world that interesting don't boutique environments around But There to.

crosses absolutely are. we meeting limited I is believe just nature mean that business have some the small space of these group business, some spaces. hotels but so drive very into boardrooms And will over very by It they transient. they prototypically and also have meeting also what this

So then will right of But it, events I I it meetings -- first business, those it particularly a be business but it and think in some be meaningful and lot will the will transient. drive and be of will locations. a in foremost, leisure hotels and then think business transient component

If the I are about be, of would where like now it geographically, locations can ask kinds just please? to they what cities and in

you and them have map, looked just where of they much it's markets, you in representation. if APAC. can rather are. double-click website. than me they have those What their of what is you on unique sort locations of on went find like pretty it Europe, because in go go that mean, can the The think of all if cities XX% within mean XX% they in I are on describing pretty I you XX% those some it, in then U.S., -- now, you'll cities at right major the are and I is that

major within of cities. to they're duplicate in most those So super hard locations niche,

with The comes next Rose from question Citi. Smedes

X% or the reach that guess, get question with said to with, partnership. sort this just of within you on the would again, a need the potential X.X% penetration you're this I on above -- unit To you growth the year -- growth higher SLH to you X.XX% what in to X had with that mentioned reach comfortable I portfolio, quick SLH. the

our in that. of with The mean technology been think be worked feel confident to hotels We've ultimately join all going being is are quite with them all because of to SLH and signed for is which We time. been -- question just working majority some recently. on we we've and Yes. it going the system I the

comfortable do get the execute how of which just with feel -- to and of So requirements to quickly the range can we the XX we has technology against XX, like. all all

we feel said, to about the I of depend any as the The those. of on again, without end speed just X.X% X% will high of execution. So quarter good

And are heavy call, try you -- so it. and working on signed just hot we'll and we Teams deal. the next give

On the next and a it set. bit. call, We'll better try refine we a can probably have

And year-end share what just, could with you the count share Kevin, just was? us

count I up don't in of with me follow right now, have I'll actual the actually front share you. Smedes.

The comes next Montour question Brandt from Barclays. with

Just X on more sorry, SLH.

it, We're excited about too.

happy [indiscernible]. to So

that might No. the I guess -- I the think come coming those you they're you like about Exactly. mean, sounds all it system, hotels is, when in and question think they all would at some And hotel point. I thought individual I to of owners, those like? of have But the do look they is sort what guess have opt does them... in? what mechanism

in the have that opt already They in, have of have they process. option in. process to with them SLH But started the at communicating opt and we team and the to

confidence SLH, they have come ultimately owners to which But in proposition be discussed the as think that option that we a with Now is compelling not. opting opt least in for why system of in. have them value majority we've the at the will to or it's the that we

Okay. Great.

And quickly just to so that. follow-up on

to originally because [indiscernible]. be independent you're are SLH and allowing thing these to of going them their by whole very that same sort hotels they So specific wanted that keep to do and went own their basically brand, name

We're us. is with that, allowing not them brand SLH they're to maintained. keep The all branding of

value the program a our be, drive of of compelling to commercial proposition. had. like, of So we same of in proven and customers, they've given it's share just a hundreds market our sort branding channels loyalty booking access to quite giving them We're which millions all the system the obviously has

about the of So we feel development reasons we progress. our good for all about good same feel it

Congratulations.

question The Farley comes from with next UBS. Robin

much. your it's pretty looks under construction at back your levels looking pipeline, So almost rooms pre-pandemic like

growth I'm So unit your wondering come from just of are conversions? you XXXX expecting to I guess percent what

year We this the of Yes. prepared be This that, think year. bit XX%, little will think remarks. as higher we we did year, Chris in the mid-XXs than it in sort for mentioned a his

I And to sort this accelerate we're year will but construction. next and more normal time? expect as supply return that range of anything you percent additional your Or that is not something to mid-XX% then unit seeing it you know a growth under think year that will of you're over to most, kind the guiding of yet, do be

mean it -- is it depend with I conversion -- upwards part bit and we part, of cycles, think And of but important time. cycles of will I higher XXX% it longer time, over I it again, over on market then course, a which always we over little an be brand, as a drift market become vary as think -- over period time it's but an will been Spark, time. will will important particularly with

The is Chad with next Macquarie. Beynon from question

to And early RevPAR know walked more respect guys. this you a you than standpoint, [ the through Star 'XX, you ] X% positive I each slightly and ] outlook from exceeded guys for a X% XXXX, has it's [ segment in year. to obviously guide, think Chris, With quarter. results in the In Star I

guys RevPAR? more process would importantly, it's And do should of you guess, that maybe you square of be the I positive to [ than your terms FX kind circle versus more maybe neutral it? domestically. how in for could kind expect So of then, ] we international I know Star

] plus we is I aggregates process. interesting. world, a as Smith them a at then do But guess, have in mean, individual budget, this it. having us to by Travel say, we ground-up look the Yes. into pundits every of create that done mean ] all then including X,XXX all that's [ we I [ the around and you a range and hotel would what

-- uncertainty So through. talked tend consensus sort now right still of on view, take landing. of always Obviously, a we've which to there's as the go about, we that's the process lots we soft is

So lot economy that business we're likely are take. seeing there different a outcome. paths the of that it the certainly, with But what feels, most our in broader is can that,

property-by-property this a how together basis. it so And we is on aggregated

grow again market our the ever do currently share share we outperform market market every If pretty at we've That I we including history. grown again, are of that mean year, XX trying should like is in here would which year, would year, gives been to I to levels and nicely, that where do. this certainly, will highest us. in we years, share and job whatever had the have believe are our we grew believe, share, I've market what we last we market we

I of In the U.S., comments, above you really strong. think in EMEA terms have of internationally, parts part I my is is Asia. in One, still be going because it bit to said a international

recovering, causing And you basically Pacific Just have it's parts notably benefits sort are a that China U.S. recovered still market of in the slight strong, that's and of the and strong. then international and really comparability Asia overperformance versus

more Investor forward that the to Day. Looking of at

everybody. Look seeing to forward

Patrick comes Scholes Truist question next from with Securities. The

for is question This Kevin.

that, Just give with what's given is the update Choice do helping progressing. is Spark to think then And your us uncertainty an activity? and Wyndham, surrounding related on conversion how happening with that you

just the now launched We Yes. already, XXX pipeline Look, another great. XX and open we've of like them year. something we them got performing I We've that, or that Spark working is working well. got really XXX last are deals, it so X had of XXX deals. going in nearly mean,

a So up we're picking momentum. lot of

So or on might believe to successful the trajectory why I in together. proposition. our good and for around that And ability about value that's segment. our value us we're it, and to We launched strongly Spark be not Spark environment think its on -- be really proposition the future going don't not in we in that think will anything what that competitors might that we comment we goes the of not probably I'm feel doing or change

question next Evercore Duane ISI. with from The Pfennigwerth is

on if below from mid-scale you some thoughts anything a on but up lower here still that end? you acceleration could chain you pre-pandemic, some And the horizon trajectory meaningfully versus see on bit interpret and wonder the this that? the there year scales, How offer see could I is year-over-year. you drive softer do on

a is quickly Those lot Yes. right? from COVID. Look, I more well think and some comps, really segments of it recovered

of some year-over-year it's So comps.

and always for So we I you'll those you'll those effects, think cycles the have demand in as really believe play that mid-scale. have out,

could in growth other scales. you relative to So have differences RevPAR year-over-year chain

about for think there stay profile more really XX if if that XX-, ability transient, customers, XX-day of good Spark, business, sort you the chain think customers But of we or for And mid-scale -- you below. tons to in feel million so extended terms and about the in we serving about scale think then there's demand for LivSmart extended over the serve. long of XX-, term out

It's As bring earn returns will RevPAR and do more customers, the more But great Chris year-over-year -- because fees. customers perform. said into we these how deliver for serve more owners don't system. earlier, in one things growth of his of importantly, answers, new

to Now why like and these in you're things. growth, we the do RevPAR we market these scales, and have you're premium to going outperform going in to have -- not we continue that's but year-over-year competition to -- share generate expect chain

The comes from Michael with next Bellisario Baird. question

Sort the Spark guess, development of by days and momentum what but the on in And by thinking mentioned. region patterns of you still of signings, are just members far? Honors burn just of specifically sort know brand, and from are kind so seeing just terms that you and then and Spark a for from of where X I or hotels. you outside early it's X-part earn the I loyalty XX there, maybe wins contribution

Yes.

the brands the beginning, first look, I So another year XX% in good. of been XX% part then Michael, has of signings say, we mean because than remain I'd success expect was bit the just outside which broad-based. are U.S. industry that's for the at better obviously record and performing, U.S. little XXXX. the and fundamentals and our a pretty in up in up And it, that

environment right? growth, we've more environments, for economic be X And other share, hotel more rooms than you're about a think mentioned construction, in going take X those in got We supply-constrained people in a what any here under despite we to So while. companies.

brands. are So to Lenders -- that then And we have constrained, where a when more to to because capital, just see that's feel and affiliated projects with to likely get lending an is And the lend want lot owners into paid world environment where like they're a want more you our of not lenders back. right? they want to U.S. with momentum around get affiliate phenomenon. That's us.

and It's chain the And of lot regions. scales all momentum. across it's all across and so brands the a

It's And But strong these premiums to the customers look, only from new because -- We so we'll system. in is then with I question, going think to members a seeing is share line, far, we're we're into of I think days. market loyalty the think hotels. what Sparks part the new up handful second a bring reasonable performance of your it sign early of hotels lot more contribution. do the

just are they're before they matter a book become member So it's member but not book, while a they they of and they where sometimes there.

across I think it days performance board consistent is but the pretty early So there.

from comes next question with Clarke The Bernstein. Richard

SLH. to back going Just

Firstly, is that are other this criticism recently? over of kind guess, the when teased program, come? being revenues companies seen done they've have of to launch still a related, is you've lower luxury I loyalty hotels the joining to And these Or that handed lifestyle Hilton. some then partnerships, their percentage but

all Honors across stop or SLH where choosing the percentage? to the Canopy you their revenues, route other into of Hilton from rather the brands how one pay maybe joining So fee would LXR going they hotels of are or than

Yes. Good questions.

is luxury first that. not no, lifestyle, The on in of lieu this

than I've at We expect and we're that clear I that is think, trying I or think enter with space much that's but sometime to to totally are year hard time, enter hard made, work. do lately intend that And see space. that work. later at pretty to we're this a us this than should what way SLH. And another clearer still different we something you hopefully think for we year, long sooner one

earlier niche is on they than the of my understood Waldorf, very not mean, different LXR, very than conflict as got cannibalize SLH, or In of that. terms in different huge Canopy, result, value I get existing I for believe than SLH a comments, And in anything of go something proposition different XXX a because do terms versus amounts -- said the brands as anybody I of Conrad, different you have hotels in non-niche niche very the small else we're of I luxury can to analysis within really are doing, we that just they we than a we very suggest than just cases, we plus, markets locations. markets, that lot are did in sure it. website, in these of sense everything in sort think I different even very but work And overlap feel make mean with

What else we hotels hotels, luxury be with what our doing. very of lifestyle this with -- very that already be consistent brand doing tend meeting space all will and very soft will we're is to do luxury understand I in think LXR, Those like you quickly isn't more different. could those things. very anything be we're It bigger, different.

-- all worked this it's hard So find as that as but are across and is really hard excited. as to something view SLH I we really chain very these we that. we're big said, complementary X,XXX It's we as at think that, of scales, hotels you would find to

owners, believe said, burn we not make earn do that really in points bring they serve importantly, happier existing existing believe conflict brands I our they customers, it as and in particularly, them not be existing customers, our -- we that So conflict the already park. the on and as be opportunities either have will more will well, with brand not but of in we lots with growth and our new

That's very if can Maybe ask quick I clear. X very just follow-up.

revenue Just owned XX% the in to gap gap leading and lease between growth that the X% RevPAR segment? decline, the that what's in and

which looking same-store year-over-year RevPAR below RevPAR You're the I come subsidies government yes, of the talking in about and revenue quarter. entirely fourth almost the year you're if assume the in at to the it's is growth, last line. relative impact -- subsidies

Crow James. is The Bill question next Raymond from with

curious, leisure there's quite I'm a versus debate outbound Chris, especially side. on about the there out inbound

seeing up if to field you tells your be leisure as strong more as expect balanced going to what you travel in you're outbound said be going in You year. I'm States? we're system playing or year to here this the United that last see wondering is

happened think what That -- the I going a the think I real business. But strength going a -- with value and together, doesn't very so bad. for in to dollar the is had a -- we're lot Europe. travel, last groundswell people the think particularly of a it with things outbound to hadn't to been while, put much strong you inbound year, outbound a be mean see those there, stronger international and of don't created you drove I year.

international. I outbound, full a think the I by but the fully be plenty think maybe year closer end recovery not there'll of on to the but sort inbound of recovering year much will be getting of trend this

the variable, the was. going of I on that. it a small just is which are around that for protracted time, Chinese a The given inbound takes everything world but China, in countries other fraction period big what still compensating think more is still of

back might we not So get year. all the this way

the well the and that side, group group with with well. part I I cities year and that's that's talked think as big nice strength TBD, think as that of going for as of index markets, And association all very to but the I do already is but story, on international. heavily the combined will obviously SMB about towards of I think this the be the about big the, for the citywides urban inbound everywhere, big resurgence part what business,

inbound I finish better and about to think about you're will -- be to -- the going year, feel will think bad we're think that outbound, I the we I but inbound see we're lot going when to story. So not going a

times question, do build. quick growth levels. this low kind a to environment. at here. of a have all-time The you couple have I think, But actually, make pipeline emphasized I'll it I follow-up development of It's continues high supply

period shorten. coiled some to I'm see ] take and to some kind snake got example. change in pace signed indication groundbreaking is seeing It starting of the Your At supply that or growth off. wondering new construction deals of we between a we're pipeline great any a going you're there. point, if like [ the is any feels out starts

first is of getting share really of I back, signed on are think financed. less take even us and numbers mean, of will. you I an all, and fair mean, share an what's unfair what pat getting good I to we our not the

indicative going not what's are our numbers on So market. of in broader the

that In if the is view, X.X%. right. I own the my broader XX-year average of in up. look market, you supply are the numbers will mean circa go you're think X%. I Eventually, back sort

of strong up, X%. years. year. as into last is been as and why you place, suggests if we it are in look at But this go to high trends, -- mean build you has see which X% business it the occurred it very be over availability no cost continue natural no an labor, couple the is at I particularly So will sort think will cost there to long-term of of and higher financing the interest output of higher rates, that limitations

And hitting so see the sort you of numbers that now.

but works some is so share it market, high that's still to digit while those It's rates robust. last a But financing, a it's not year. why okay, get a lot not, really got better drive while all than and better, I the U.S. it's get year. the we're Cost done we hard well, think because have the but us works, it stabilized, lot more has able setup starts really very the build up. double reality more very us interest higher we'll works and of competitors, down year, have mean economic for pretty well last rates -- and market It's Obviously, for we while almost done high of in our and were things financing this to that's rates and little I have very up stabilized. come obviously why bit. our gone

constrained to under mass gate it to it's getting convert of constrained these build to reality continue from here and I things, takes weigh a will a financing you're then But exist. to will pipeline see it heavily stuff. stuff time this but And better, we'll it in while. couple U.S., for think think And of will it think while I before a X still I the think year So then is, right? think, takes years, construction, exist to And takes a particularly be not and a that sort or our lot for a ease. natural going that I benefit. And of as the the so to I year, this build more there's environment

on So I that's most why meaningfully below XX-year that 'XX for feel pretty being And made averages 'XX supply. darn good about pretty comments made. 'XX, and like I the I probably the of

think got just to math. finish. I to they it's At start some point,

The comes Cowen. with from TD next question Kevin Kopelman

any year? thinking still for the and give plus how you you're kind Could you on growth [ about there? of not us it an to and expect ] puts Great. exceed RevPAR If takes update fee

We still fee with of headwind is. this it a will bit FX, we be as A growth -- that, of we think little for growth couple little but above from Yes. be think headwinds, normally even fee year. above algorithm algorithm a we'll think bit

Okay. leverage other X.Xx Great. back you any you Could plans quick get then of to X about to range into plans or one. talk your that the And kind X talked about?

Yes.

bottom guidance be that the of been a think Obviously, environment borrowing year We us. little Our this will range implies end it's has appropriate still the we challenged. the range. bit approaching for

that been. of we've for have But this haven't up, the we'll for be year. We capital still -- of bottom this end and year our We're by moving given implies the rates is where end liked the that guidance obviously, approaching year. the return guidance still range

Nassetta to to this gentlemen, any I remarks. session. like turn would call Chris question-and-answer and concludes our closing now for back the additional Ladies

exciting things for the first taking good given see, great this forward a with to you good increases an going to last update. that again, growth time. really the things taking full look feel give again, quarter up of really where progress are the in outlook and about and we'll the really catching you have day. about from after feel we with We good Obviously, everybody, for on SLH, the year last we into the year, and Thanks growth year, company. you, the unit momentum organic Thank even us and for a some but we're year year,

concluded. The your now conference has for Thank participation. you

may now You lines. disconnect your