Park Hotels & Resorts (PK) 1 Aug 192019 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Park Hotels & Resorts Inc.

Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer will follow the formal presentation. [Operator Instructions]

pleasure your my Mr. now is to host, introduce It Ian Weissman. you Thank may and begin. you

operator, to Thank Resorts welcome and you, everyone XXXX call. second Park earnings quarter & Hotels

many like Before I under Federal are to of statements the Laws. remind considered we forward-looking comments would everyone begin, Securities today made that

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

Actual those differ factors future Form on by the Please could that those the performance, materially outcomes specifically from and results results in the risk contained reports filed expressed refer XX-K cause may actual differ forward-looking and documents Park from SEC, recent statements. statements. with XX-Q, the in which to forward-looking most important to identify

on In such adjusted FFO and today’s will financial non-GAAP we information addition, discuss as call, EBITDA. certain

the information in directly You our this as on and can with in GAAP X-K well pkhotelsandresorts.com. financial the most comparable file find at information the together earnings as our available financial measure SEC reconciliations yesterday’s release supplemental with website to

earning President projects; joining Management our Lodging and Officer Asset quarter This and be on of efforts, guidance second for Reach. Chairman update our our Tom Chief Bonnet results, provide Sean Trust Dell'Orto, update on and will our a guidance. and update XXXX our Officer acquisition an on morning, ROI review Executive Chesapeake will Q&A. a finally, Tanenbaum, further our our pending The of two quarter our Executive Chief Financial earnings of Creek exiting results, Vice Baltimore, operating recycling XXXX will Rob our summary financial capital on announced of provide additional on previously an color detail second an

for the we Following questions. open call prepared our remarks, will

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

multiple quarter second quarters, maximizing as fronts. at Consistent was and focused Park, with welcome over the you, our we everyone. Ian, remain value incredibly Thank on prior laser active shareholder

have been to approach always, outperformance management, proactive As focused operators environment. in our partnering any relentlessly our deliver on asset we to with

to quarter. assets on strides allocation additional the significant during continue our efforts, selling noncore three We make capital

expected close combination Further several improving two on special Lodging finally, on been to And diversity, over meeting Bonnet important meeting geographic consider beginning expansion portfolio Chesapeake September projects: Curio. to have and conversion Chesapeake superior is Reach the currently the shareholder and the September opportunity of of strategic compelling drive a incredibly mid-to-late also expected long-term. and and high-quality Chesapeake proposed including preparing our the risk-adjusted long-term work to earnings the Resort our thoroughly which to brand, on accelerate XX. pending acquisition Creek a operator with have ROI the goals for with transaction, positioning about of company The excited this the vote space to we merger to Trust, the remain is all take We place growth a

Chesapeake hotels the conducted with two senior team and onsite of leadership. has last toured property the Over extensive the each months, reviews

have to and both underwriting expense additional conviction strong continue We generation revenue in see and upside in savings. our

savings expectation a our reaffirming inclusive are of incremental million of in of upside million and million. initial XXXX, of EBITDA of our in $XX an We of $XX XXXX, EBITDA total G&A $XX annual

growth bolting in to next and portfolio market portfolio basis are outside our citywide legacy Francisco, strong such California, points should as on add Chicago, from Park’s incremental Southern tailwinds of to poised XXXX Chesapeake’s business given renovation an year. Chesapeake the to exposure XX San Additionally, and which benefit top-line

meaningful anticipated City York New assets. of made has sales on the two also Chesapeake progress its

$XXX company of these combined going a acquisition Chesapeake of to a sale press to further an forward. in of noted contract X% Chesapeake. prior recent assets of will rate both cap hotels release, our As total sheet buyer the proceeds are or the balance two under by The million expected Chesapeake’s for with single close delever

Overall, long-term benefits the we opportunity remain conviction about and the confident strong we have acquisition. of in this

offers transaction does the and additional significant away narrowing remain on the asset to with attention Although peers. core value from divert not gap generate our value, leverage laser the focused continue margin shareholder to expect aggressively incremental portfolio Park’s our We embedded within it managing portfolio.

the second a increased comparisons the year-over-year against for in X.X%, Turning very comparable quarter, to difficult demand a portfolio operations. In challenging RevPAR environment.

lapping year. the we of the As during quarter, strong a revenues rate expected, direct X.X% group growth declined XX% result in revenue group by last produced

across San Francisco calendars production respectively. like XX% our pace group markets partially markets were and citywide several healthy and key X% in of nearly by Softer with up Orlando offset

Looking group second XX%. increase to over to overall forward, the for strong year we of the expect remain forecasted pace half with

of war corporate On material X.X% decline the of not believe with started in check across our with but X.X% fundamentals trends relatively change backdrop, in beginning transient a That healthy we still said, trade a uncertainty light May, the transient key witnessed Despite and transient side, business revenues group healthy by leisure reflects offset in most ongoing a supply have increased China. and markets. some leisure we business occupancy in decline, which by in X.X%, increase demand, driven demand. a to economic in

grew we share equating average set points, as outperform $XX an of growth XXX the by market than million our market our of at continue hotels we to nearly share Furthermore, portfolio. comp basis second for more the to of XX% during quarter

quarter points by only margins, In basis in margin terms of comparable EBITDA hotel adjusted the to XX.X%. contracted XX

clearly as cost to in growth RevPAR, low in X.X% in today’s we initiatives just these environment. Our high asset notable expense results labor comparable accomplishment evident kept management are

Looking at our core markets.

quarter, XXXX strength and recording by since surpassed West, a In posting this Francisco broader Barbara, but market which recovered continue Chicago levels. second year-over-year RevPAR clear Our XXX New facing was by were and increase, West top-performing Francisco San top not York. Seattle, considerable exhibit comp, X.X% strength has in hotels pre-storm the was Irma, a two very market Francisco, Hurricane softness growth New combined despite a San quarter RevPAR primarily driven and our results to Hawaii X.X%, Santa partially points. San demand Key our Key XX offset in Orleans, outperforming basis by difficult demand that signal only a

posting Group from solid up growth XXXX. recovery XX% considering hotel revenues X.X% were XX%, during year’s exhibited quarter particularly Waikoloa, second a the volcanic is group increased quarter of revenues our transient RevPAR impressive which the strong in demand. disruption, on a last In

forecasted the the back in top our be approximately of north RevPAR year be growth over half up group We with projected QX XX% Waikoloa, are XXX%, performer with group a of expecting pace at quarter hotel stellar average. has the to on to

Barbara RevPAR which which Beachfront strong continues want to to was a performance further repositioning and quarter Park’s and up-branding asset, hotel The exhibit XX% highlighting and grew also of catering of Hilton up highlight the ramp completed second success XXXX the XXXX. group by up I the Park. during the the Santa project, was renovation on by contribution Resort, over our during of quarter, XX%

during to over post of job has improvement a the points QX. terrific property XXXX Santa driving a done Congratulations Barbara margin who basis renovation, ramping at up the team,

underperformance one XX%, value-creation Offsetting continue together opportunities Hotels, portfolio a second this nearly at We drag two our produced a of points portfolio. a throughout other there which basis was Airport to RevPAR. of our positive quarter significant decline believe RevPAR on like these the Seattle are total placing number results XX

of Other Seattle growth Excluding Seattle, properties. recorded to proved leadership which since have comparable for at and X.X% our group all Note difficult RevPAR our changes been in transient. quarter. Chicago, the York, included demand offset would softer with made have New we Orleans, declines that New that markets

double-digit for three the Looking back half over the we year. hotels ahead, pace group of rebound expect to all projected with

front, the domestic second used spinning meaningfully of on $XXX sold Having we net now recycling I’m our be of since the of pleased the merger XX of with ahead made have or the total proceeds proceeds reduce non-core gross during capital $XXX for out sales leverage progress million, assets combined of million on will of a quarter. Chesapeake. closed over Hilton. assets which very to the of proposed three

capital While Park of $X billion over to has shareholders. returned

Dublin to close Conrad year-end. attractive subsequent deal to by a addition, the entered very expected In pricing our we with contract to into year-end, at Hotel sell

Total proceeds sheet. process venture with $XXX buyers joint private among the we estate to strong interest real the two expect hotels on in hotel to beginning for million balance months. continue marketing sales our to sale equity noncore and for three deliver Demand assets totaling are Consequently, we the coming explore $XX remain Chesapeake million. to further

international of last marketing actively also Paulo, our are of We the hotels. our one Hilton remaining Sao sale

in net clear part to $XXX commitment to to with ratio four a balance proceeds or companies’ leverage the sheet. to between together for announced four completed and are reduce signal hotel million Those estimated maintaining the combined be all a be low-levered to million, which times sales would other hotels $XXX our approximately debt-to-EBITDA Chesapeake

Turning positioned of well Park for relative to is the the for remainder year. outlook outperformance.

efforts next trends post sector-leading our transient portfolio, to Our group been proactive us the to choppy, park’s the help have continue over across up should U.S. two growth quarters.

as around quarters of be XX%. of back The is expansion to two portfolio. Francisco and West up projected second expected expect in the along asset margin over of Waikoloa. half the X%, San one remaining RevPAR of grouping year pays the focus proactively QX remain the initiatives XXXX. with Key we of should continue we group over of take growth to advantage to average markets and year top stronger finally, our half the up our on And management the the healthy the

is global key full-year the we with across by estimates heavily positioning, growth weighed strong our annual the primarily in markets, this basis macro segment. RevPAR several concerns readjusting transient at will lowering backdrop, on have across forecast our premiums. points or X% flat down with on business relative plus a insurance range our by XX XX points to Despite we’re to at provide RevPAR are XX contracting fundamentals industry details due the points partially our additional basis of from updated our margins, to increased the guidance to the midpoint down midpoint Sean guidance. property basis to new X.X%. of

that, over it with will to turn and Sean. I

Thank you, Tom.

Looking reported $X.XX FFO results revenue million. per at of diluted or was total million share. our and of we $XXX second $XXX Adjusted quarter, the for million adjusted EBITDA $XXX

X.X%, XXXX, a compared an quarter core the of or our operating entire to second comparable RevPAR improved to of occupancy. $XXX, produced to increase the increase metrics, related of portfolio Turning our

over year. occupancy quarter percentage XX.X% was the X.X Our last for of points

daily at rate flat $XXX. average Our was

of trends in EBITDA adjusted XX million year. prior comparable was was hotel which adjusted the basis margin top-line XX.X%, These portfolio, over or resulted point a decrease comparable hotel $XXX our EBITDA while

XX June quarter discussed the $X addition negatively ramped results of to reopened delayed due shortfall In up and million as business EBITDA Caribe reopening. a were choppiness $X proceeds incurred Tom the Hilton, for loss expenses earlier, which by to on for timing insurance second impacted the interruption million

Subsequent coming to additional receive authorized to we the carriers advance, the $XX weeks. quarter, million an the which expect in

and We work the both Key to to Caribe with the insurance carriers adjusters claims West. close for continue and out

receive of $XXX Further a new on guidance. As by $X.XX share by such, at drops we $X.XX embedded per to of $X.XX midpoint in million the guidance, $XXX we adjusted million our guidance per our while maintain million proceeds a at to FFO share. range full-year new $XX diluted range to our to full-year to EBITDA the expectation the lowering our midpoint BI are adjusted

it bridge Note might guidance into to sales our pending or that our recent take assets our any acquisition at thought additional guidance our of account QX to most Chesapeake forecast. from time. this be you useful does We not

is First, hotels June. last million we the late from EBITDA three related in the $X to sold

RevPAR guidance. expected additional Second, the the than earlier. due year, the of higher a reflected $X insurance to our to more And adjustment property million that margin which a our outlook additional reduced in for alluded moderately is finally, Tom is expense cautious related balance to and

to balance the financing sheet Chesapeake and acquisition. the of the Turning

million loan in As million been financing and charge. of we announced five-year the bridge $XXX the $XXX delayed debt draw of has we when an commitment consisting billion term charge two-year form transaction, mentioned a secured $X.X

close to former Although transaction. only we anticipate the a meeting

the announced completion and asset hotel the X.X park the needs closing, Upon from to we cash be and Chesapeake’s leverage previously to pro York sales of New a funded hand. company anticipate which the earlier. combined balance assumes approximately is forma As times, of sales discussed of be expected cash Chesapeake net on

position yielding last cash dividend July XX, quarter quarter cash declared an $X.XX second on paid dividends dividend $X.XX Thursday, share This into to our REIT implied of highest our our as sector. Turning stocks of lodging of the of currently dividend per of maintaining board as one translates we yield in per our and X.X% share. third the

Bonnet exciting expansion Reach wanted and rebranding I Hilton a projects Waldorf update the the West in of Finally, brief XX,XXX Waldorf underway. ballroom ballroom Creek Resort Curio. a and and square new and the platform square two at Bonnet which adding the Hilton currently of the at Creek, the square feet feet include and XX,XXX in to to gross will Waldorf. space, meeting of space at and at Orlando at of The ROI we’re new repositioning XX,XXX pre-function pre-function over on Key of space meeting feet provide Astoria

Total spend the $XX high million is be in estimated with returns to teens. targeted

Waldorf running we the early will until to December. to while comprehensive XXXX a to open to expect renovation construction new space We a platform be At hotel the include be The meeting reach, expect the up public a of the the project restaurant. and and early the should renovation scope the meeting an start coming and space weeks Hilton in closed in including anticipate guestroom complete early XXXX.

of with the closed that value are total disruption, spend embedded we points to targeted be hotel renovation into year, $X comparable explore rooms public our million to for for portfolio our RevPAR portfolio. across illustrate is in and the XX guidance. million and space which similar approximately earnings to portfolio equating These months, teens. in high we $X With we by to the approximately to projects continues continuing negatively are opportunities unlock returns four impacted our basis expect factored for be growth able

remarks. prepared have first operator, questions. we up may time, to point, limit please? of to one we’re and to the question asking one their like this And all our we’d interest at open concludes to participants the follow-up. question That operator, in response

question. David you. with Thank Please Our your line with Jefferies. first [Operator comes Instructions] question the Katz from of proceed

announced on how I the talk $XX what you what few means since good then Hi, you really months guys? Chesapeake [indiscernible]. since been and million? Hi, about just you’ve It’s morning are what the it’s you’ve we uncovered guys. a that learned under Can Can just million us tell while, for and – $XX know quickly? that a you’ve it.

Obviously, It remarks, us an for outlined of and disclosures in brand back statements improved prepared provides we us I’ll appreciate sort sort footprint, compelling that I expanded in my we’ve the as the call both our believe said to and growth portfolio opportunity drive We to you companies. certainly us for the of and certainly improves remarks. unique it’s quality, geographic combine previous improved a next gives made. diversification. it it and operated gives I rate year prepared as the

that believe well. opportunities embedded of as also upside, group ROI to there’s We margins up

XXXX, our previously, that also it And have reluctant asset both is company. believe I the As are Where represented those that in into is again, as meeting, meeting. said in onsite are we’ve process? scale. force out and our mentioned I’m having certainly benefits other XXXX capable to been in also disclosures, get of Chesapeake and details. public go to accretive team we’d of the independent and Chesapeake we management remarks, the still Tanenbaum an members very Rob we’ve and we

We have now the for shareholders proxy a XX. vote set filed issue, by is shareholder is and up scheduled and September Chesapeake

of would are also the York part late As announcement selling $XX due in close identified prepared New synergies they’re additional in by are excited that assets, and confidently, confident it obviously, shareholders to it expect is the September. opportunity. that achievable we that our underwriting we’d my assuming is obviously, are remarks, great said we Chesapeake’s We I $XX have approved we’re said, those transaction over in we’ve and which those mid and noted two we we and million in million original plan. initial XXXX. conviction believe XXXX our confidence as diligence, our and I regarding reaffirming this about

filings appreciate are all I Other you be we questions, and can so additional to there draw this David, just you given we we the in not than that, hope public really transaction, where if want to would any sensitive. as

you. Thank Understood.

Thank you.

with proceed question your of Our Please line the question. Hightower with comes Rich Evercore. next from

good Hi, morning guys.

Rich. morning, you? How Good are

good I’m it’s been week. a busy and

going We’re it. through get to

context the Chesapeake guess is us much that that original targets targets? are break around ago have the much Tom and those reaffirming to around whatever follow-up the color Maybe, on since of we’ve or predicated given a or on things park’s – to for the how conviction more level you those of patterns demand as So, down what I of maybe you asset in targets how things the seen you just you mind. on us question are mean, that demand mentioned. think in We’re of days if XX and of little just patterns that and shifts management. then. specific I the specific don’t of to predicated magnitude give industry

Yes. it’s a delicate balance here.

decision no of all little talk sort little side. So, the been and broader a transient to me now the Obviously, sold think internal have bit about continuing a We noticed peers that few there’s bit focused margins, continuing made Look, strategic let of to economy. talked on $XXX doubt about improve on our that years we – I front. the our and particularly capital, progress on right? ago we that there’s strategies, ROI assets business on Recycling choppiness, softening made million. we XX where which projects, we’ve growth for be really great

believe that value choppy we conditions tremendous and management, our liked could are of market continue game for was portfolio now. park, that changer. this it a and portfolio we to the of we conditions then long-term if really for What for as that And always on you irrespective shareholders, about implement guiding up bolt market course, grouping believe really creates but Chesapeake for over principles asset relates to will intermediate

consumer sheets indefinitely. I I of one think the to the personally lower don’t unemployment Consumers little concerned savings – for really non-residential are X% probably believe improving in spend. of X% the about still fixed for rates now. the good you RevPAR shape, looks longer, abundance a the above balance and rate would that near-term thing think low right in we sort probably low you right. X%, a GDP investment good certainly consumer. and tell I are risk recession, probably most There’s lower solid, inflation continuing range,

a little be that fact we’re the we still Hopefully, along slated that something very, at in That’s we were public turned in The long-term. a although stuff. said documents very question. Again, your this year. would And sense. I on carefully. say we’ve see that that transaction how watching for recession. that makes all for the we’re over negative, positive to focused see still we very us And the part, long-term, the all don’t lines lines confident the answers that But that disclosure all the and the

long-term creating committed for platform shareholders. We create are to a to value sustainable significant

for Okay. question, to focused just still you basis just X% do implies one midpoint is Tom, back shorter-term but said it. it for growth related appreciate answered question, the half. you the but points, guidance XX the came year, I it earlier, a down that second other of roughly color. as maybe the implied the half

the we be continued some strong and stacked already much pretty the on at up threw formed. you’ve maybe transient X% You for based degradation group if of side, forecast XQ, could numbers see if that but group-based out risk, against XQ how maybe

bit – and part a can given on factor transient we be wanted I to that would a we softening reason It – is also good why guidance certainly I continued we the be for It’s certainly side. was little that that that now soft to June, that think the Richard. The reality very in a question, really and July. little expected the relatively forecasts saw listeners internal softer. and July and largely in lower note are of in

group we we’re the expecting have that September. very strong case XX% For again, us August given and

note based backend, significantly in provided rate feel So, the I confident you terms today where sit so – guidance carefully. one. that the did, sense. we initiatives that guidance are that We we’ve that on we’ll be makes still what that that worked obviously, our we harder and know as growth watching on also RevPAR of would peers of X% the outperforming because we all

I every to, like would while we’d certainly quarter, beat to the and also in be like second note disappointing for a situation. we don’t

responsibility metrics. really at underperformance the if ended at Seattle for other we that with if through significant But that. we We really quarter exceeded least us out, key take the we in think X.X% partner. would I have operating you that had our been take and isolate, and would’ve really all rest beat you that. to We

half clearly were at football, up go we even I’d though little been cautious to New occasionally that mistake. York, have slightly second really a out though So, little margin, Francisco little look be you’ve saw we year. and business quarter, a with just it Seattle. responsibility a more They the the if the second in in a a should San We you we make of in X.X% even like we and in broadened Chicago, in even a us deeper. had that point take you that the thought look quarter, gave If we they line a as off bad have slightly pause just We we in transient. of the even fall bit a sort on saw

as affecting I a a don’t but fundamental and certainly the a it’s seeing we driven we margins. on we see see trade more cautious. shift, given travel now. CEOs, need the are right and and more little and there lot a just be those the women see recession also We’re by to we uncertainty little businesses, believe cautious men being just a think clearly being is Candidly, just all

Tom. you Thank for It. Got that,

you. Thank

from proceed your question Please Rose of question. with comes next Smedes Citi. the Our line with

rate to group. the sort in could of on thoughts will paced update group was kind into if given to and strong you have – wanted Hi. excluding of rooms pace through that about are do give and level I you of us just what XXXX and up XXXX. of go you. you will an I the it the the your half Chesapeake? Thank grouping you, group wondering ask so about forward back going the that percent be process you talked be

don’t. Yes. clearly We

to information. Chesapeake, about excluding that want don’t are I talk We

you quarter, may to I’d recall, in we group last in X.X% pace. X% we’re believe now X% I As were to range. that for X% XXXX, say range that

evolving But So, slight this at pullback again, strong And and moving very target. a in keep that’s point. group an year. mind, we’re such having this pace

If next you Francisco we’re be Francisco, will out have strength end obviously San San the year tough Francisco. San that just of is given given pretty higher range in seeing the and comps on that certainly take strong that the

our still working something It’s our on it a really focus and we’re us is operating allows our that out partners. more revenue. with yield transients meet. of We and layering and real us for contract believe to competitive efficiently drive to that assets, that carefully against advantage, partners XX group It’s anchoring our particularly for in with our business sources obviously, a top

candlelit it the of last this. committed peers the think years. a our we’ve difference We we’re to and So, why reason had outperformance few part of makes we over think it’s

more of previously? you a of shifted versus don’t at very – strong that asset it on to that kind Waikoloa. much was nature group it sort or know, Just group has of to that, where in really move house mentioned I so is it one-time bookings

was of of the to spin going initiative Yes, the sort right-size back the strategic part Well, properties.

we’re what it’s giving XXX keys to this these we minus back year, haven’t have space certainly you that and two you given Keys efficient are had as transferring a sizing So, or hotel. the box then groups happens which plus keys we’re as a more meeting get plus out with the plus hotel while XXX minus, operations. right that in we and HEV essentially [ph] commitments, large know, We think that travels the buying we have. incentive or

it’s in business. huge pace, certainly us. in going we half that I necessarily and That’s strongest it’s it – for but group certainly significant. the annual Waikoloa to why our and it’s year one-time, a and half back be not talked is performer say Hilton be significant wouldn’t about Obviously, will it’s until the beneficial. So, second the obviously benefit as

Thank Great. Appreciate color. you. your

Thank you.

Our Patrick comes your Scholes SunTrust with Robinson with next line question from Humphrey. the of question. proceed Please

Tom – balance and just you you percentage of Hi, noted up transit what’s the But wondering I’m group a I Good good XX%. just wondering, a transient noticed transient? that morning. on that lower-rated imagine does morning, and out? offsetting type Sean, how is

asking for the or year, something… for You’re Patrick, the quarter

up the up group comparables, just the that I the think mixed rest out said balance for of you how the year transient For the with I’m revenues was XX%. giving wondering, shift? that does with you’re

last quarter, quarter answer quarter up. me thought. but mean, we what are let the way, slightly QX, I from in Yes. is this in we the in down fourth in the third X% fourth quarter XX% we’re up through pace

is up would choppy. So I again, say positive, And we still in a were transient X.X%. net still

that nature and We that. forward. trade quarter. we our can it periods, for of business for for We’ve strong think the have the park more for second effective price quarter, we move We had didn’t we’ve in we really performance were that we’ve again, strategic making some transient group, contract group have transient, the we though in where the making we’ve right. And anchoring decision layering stuff lapping as done contract we’re demonstrated right certainly, knew strong – points group. a in that that the very also of to We’re trends. then our and it’s given we Well portfolio with as XXXX more made, more thing efficient XX%, our particularly portfolio. second efficiently those in

me. Okay. Thank from you. That’s all

you. Thank

comes with Our your question. of UBS. proceed the question from Robin Please next with line Farley

great.

of a holidays strength some bit Just function of the maybe, the in ask about a the little guess QX. issue. calendar some and I QX is to more to group shifting

in, trying So, the the year, think just business about in group a business, in may QX group some last how thinking there about the came be attendance I do that function year much I to visibility on it’s risk year, the year, for of approach some year the guess lower as be or would guess if it – QX we in could I’m be think for QX, where in the outlook? you understand we group

answer please? the Robin, Rob question can

Our over last points. XXX quarter the QX over pace by improved basis

XX So, we just don’t – – for to always QX September there ship checked and holiday had been QX. until do based also pacing, opportunity our as transient the overall, what a and a the and concern, October. October then going XX in we’re is the QX into it and But has they well. see marketplace We is given see in don’t strong we don’t we

And then bookings than the is ago, a maybe, numbers in books rate think us X. give what up other it’s X, X.X you XXXX the commentary the in just current sense can the a pace the you itself new the in rather of ago about had X cumulative of in was of last the quarter words, – sort quarter pace? that I quarter a higher Okay. the assuming to to the now includes pace, that the quarter a I were group on

it’s on about our XX%. for business that we’re we’ve partners a like that and again, clearly, evolved next and focus number, I’d certainly, and But X% pending Yes. in into at Robin pending and real be And say at kind we’ve encouraging, some we’ve got signed our of for business books to yet. team the our year been XX% the continues got put of Hilton. hasn’t

has year XX% more is in years. than to really to months us saw and So, previous comparable what many last for and we comparable in be out a and

So, right feel about we position our good now.

last thing. One Thanks. Okay.

Yes.

ahead. Go

No. your is question? What

was just to heard share the – have like you I in clarify, mentioned of that market or up last if points share the portfolio, XXX you I your XX% remarks, have the just thing change? think that combination Do think market I the I for it’s basis full portfolio that. figure some at

comp Yes. basis it’s points XXX our for hotels.

the quarter. our XX hotels, of comp out XX it’s So, in share gain second

that. very operators, doing and very that’s from blocking in a We’re with about lot our that. and work asset just very, proud management partnering And of tackling our team, of good

a had despite gain we the lapping share. and still that transient, softer significant quarter, choppy were we obviously a quarter knew top despite of we obviously group So

you. Thank Okay. Great.

Thank you.

Our with Please Securities. next Malkin proceed question. of your from the with question One Neil comes line Capital

morning. good guys, Hey

Hey.

market books you of ahead getting kind in the that, some question that’s How more I to this then rooms. are ahead it? significant project The about and I There’s later of How a be are phase or XXXX thinking that another group a Orlando, of of kind of beds believe, you to on given wait more thinking early pretty big obviously need size for getting delivered, market that? just universal, is in that and well in terms or a over it’s about large year see guys. of going think where the year, on heads you you next it? Maybe

out known on of Creek. Yes, observations. that we’ve I really group would business a say a particularly from meeting missed lot that. is Bonnet Creek result all space and couple particularly love We there, a as Orlando We’ve of three Bonnet standpoint. we love of assets a underrepresented

We have studied the carefully market.

going We’re about. about and meeting and to obviously golf really foot one be to square the to XX,XXX outside expanded going ballrooms, of also we’re are adding two space the the course at and be more lot Waldorf event XX,XXX square reconfiguring adjacent foot Hilton that adding to a ballroom also excited

have part one with to up-brand Hilton Signia the of as to we that also of agreed be Signia. three first So

acres Disney. of with lot positioning given the we a got have, expanded relationship So, our proximity the we’ve that an there, XXX

see at one If near any conventional at markets, future. of Orlando, the we Orlando is changing don’t you in don’t look top I point and five that see the

in You million the $X.X about look amount city-wise room XXXX. coming nights of at through

about it’s million XXXX. in think to $X.X I think going

from from still standpoint a and solid as resorts that’s there – new product about added competitive talked So doesn’t with universal. interesting being certainly

competition. and there, be You think happening Disney if X aren’t additional just there’s certainly Phase going to our growth X see Phase Star we that Wars, about long-term what’s love with with and fearful and positioning of considerable

company last obviously, repositioning or for me, been a I your was that. renovation reinvisioning. had sort on of Then one success the has opportunities, that Tom you’ve former appreciate

there? if then to ROI within bit legacy little Just opportunities more, And maybe opportunities or could opportunities maybe to ROI portfolio. type your you with a alluded type you’ve on more you’ve Chesapeake at or Rob, regard wondering you additional of do more elaborate additional the as type looked or see

will from vote waiting the Yes. shareholder remain and Curio favorable be mentioned away Obviously work both that as September about fact The vote that stay done December. more the an company. by we’re That that and there in given we Chesapeake early the I they as that We’ll, independent soon. assuming for really relates excited come, to Reach will a get start to Park to Sean converting

getting a huge Santa results the the us. for that we’re success see from Barbara You been

real of to other two generators. we’ve we’re really to beginning in great significant a San the Jose, that lot a The well demand it’s estate or evaluate, DoubleTree located had

that the and are We redevelopment DC the to of converting asset Hilton. but their expanded working And course, office as got area. going Hilton, a could at explore that Arlington that converting the a about that with And of as Hilton the in certainly we well DoubleTree and to development internally front we door Crystal and co-brand we’ve to with here also a Amazon’s City brand complex are possibly that also well. of and in

that Those we be just are think significant to we forward. are going excited. very are to two So Park contributors going

guys. you Thank

Thank you.

line next question Bank. Our Chris of proceed question. Please from Woronka with the Deutsche with your comes

guys. morning good Hey,

morning, Chris. Good

How you’ve for pretty eventually that, of how Does kind question of the been it’s clear or Marriott Hey, forward? that in kind or the lot that of do kind of recently do that time does look lot Park several how morning. punching at now. right, does or outperforming, now? that you, automatically legacy that you the terms underwrite you out underwrite going us continue a a for looking ask doing things assets that, forward? that, guys does, if that to a is road some of quarters to brands you And think perhaps Want Hilton are of do I advantage

great for of many Hilton three it’s as I Chris, and twice worked the obviously, I worked question. Yes. Marriott of the listeners companies. for know, I

that’s feelings have as a I here great be they’re the So, some this. each result, strong the believed to those about two passionately. each think We be one I believe for companies pushing had going other in other to being pushing for time DC area, being having industry. entire formidable strong competitive, better. pretty We

we of have see practices motivations from to One the is the the other obviously franchise the long-term a we best make and And does, to for diversification, owners. good that us brand other operator our the managers, can all And also from as over brand independent of brands, that that we the believe that partners from operators. operators, Chesapeake owner. that you but part get better is us makes of deal think better better

same for respect we Hyatt the say and also would tremendous for. We thing have

ago, in we’re had moving members about to where, and one rejoined Hilton but when really diversifying think over Hyatt when their was, be excited they years to also Marriott, XX Hilton and So There be other. the you going pockets time. when is program. million about, outperforming think, you I I four But are loyalty the I growth, think

announced now there’s plus occupancies, their formidable. Chris week, about that million really XX% is of last I think minus or XX

north probably is million XXX Marriott think and growing. of I

real we premiums, and RevPAR XX% about competitors as right think particular obviously you about importantly both that over So and an real premiums of the that brands estate. averaging that loyalty, in want the engagement when a most are their benefit, opportunity those owner,

right higher into on those in brands. to And investment. premiums generate and of more We also revenue, return want theory hopefully the more margins, that RevPAR generate course want we should

we’re slow I done excited incredible integration, the all against and with be and they’re would also an expect, wouldn’t know fabulous Chris that I seen it, I’ve still forward. fearful. has certainly Clearly about going not job run. So I his through working have a to Marriott and team And that. bet and Hilton had down and of but them moving transition issues Starwood vulnerable obviously those

the Why any thoughts Okay, Tom. on numbers be I to the just kind I something think through think least San Francisco transient? the that? are XX we well pick does transient seem San appreciate think much, of that and pretty on kind not gets that in think the are going in transient why you the on we seen pretty And is that out and great, Francisco a side you it’s to great is there. industries given, color. that where, strong. what backdrop strong I at follow-up And I On understood have for but have very of Francisco struggling that too San group on

Yes.

continues and there. a in let’s some addressing RevPAR and, view be to probably change. be XXX,XXX other well down probably to obviously renovation, at a the certainly to San during forecast still based the one keep on is we housing, the XXXX of working the the low and going looking close citywide is to strong fair That that there was homeless, at looking today XXX,XXX think nights about in given but it’s bullish out, new million, our are I X% city down million of is watermark back on on remain issues amount XXX,XXX we’ve issues, some mean, question, XXXX in is the our through, all think XXXX and X% industry limited even to in Francisco and destination, the supply to the we’re we that so some drops for million expect the own an of very here. market XXXX as I course, the look and certainly to range an I introspective XXX,XXX room probably fully you’re forecast probably X.X year somewhere but in probably sort a

pullback on little if even a feel still it’s we of bit the So good transient. very

back bit caution. goes my men CEOs, I and I women a That’s little that think think I of those think are it earlier right to comment pausing. just now

and outstanding issues are as a are of But clarity the of – particularly sound. don’t in trade want fundamentals Hopefully people some don’t that these see of the to term. fearful we still see patch the on get and think just clarity I of recession soft still near often we battle. it we relates business the again,

Tom. Thanks, good. Very Okay.

Thank you.

with proceed James. Bill the your of Please with comes question. line Raymond from Next Crow question

industry. thank the it year to underperformer? do outperformer? San year do Is see Is relative follow-up. Francisco XXXX and And like you. tough nights? would in of just an another positive think in there? I also about decline to maybe convention you broader you the the be New given get Great, perspective York your an Tom, to it wanted can next What comp

over or That’s in citywide Yes. Great Francisco, San be looking depending where solid probably just had but about last it’s going are don’t with with questions keep see X% at Bill. just speak tougher can watermark, I XXXX Still the to out a still XXXX, going but high on it’s operator. million. would digits still also despite a coming I I XX% the mind you. X%, totally take been cops year. change when so you so still to say range, today. which the we new from was to low you the mid single expect the that on down in would

are seeing on are would focused group much in in strategies San still that vis-à-vis going still still range San York. this I be we’re as but – As look performer that we pace, clearly year, very bullish XX% Francisco, out Francisco very the stronger see the of not we seeing to through positive we’re north of New XX and

about XX. more in this power. missed performers on most under is that York the definitely would Let’s be supplier courage really that I occupancies have it’s in operators pace would our group the job yielding be say a slight we But year to to do I the since will look comes York. and still it a year little long-term out honest, next at York, hoping New I we the a needing owners city And high as I X%, look still as runs next New up. in don’t peak cycle. has pricing back obviously We think think at that I’m New believe just candidly better

plus we believe pushing about room we’re group XXX,XXX for up, as really out the I for strong York We’re next or nights get minus to It’s of room XX% and next in nights year. year. north look in New

Great. That’s you. Thank helpful commentary.

you. Thank

Shaun proceed the with line from next question. Please comes America. of question Kelly Our with your Bank of

everyone. morning Good Hi.

performing spend. been color maybe the I group but bit wanted what outside like covered, changes side. of looks just for expectations? relates mean kind groups are ask, of that’s the my could Tom, questions once just have if So, you’re to seeing how obviously booking little to more outside just the to most doing a you’re I as overall the It and/or the seeing back property your for you on on continue going behavioral you activity any half. cancellation, on room actually it some on, spend, you’re outside so great already Are attrition to getting relative the of room them

on and Shaun. terms Hi, of retailing in Tanenbaum, in the QX of group like of contribution. quick on pleased contributions. growth examples; lot see Rob three we experienced increase that a we’d allow pace It’s XX% [indiscernible] X.X% contribution, group that contribution we with with experienced We group group XX% XX% in the really and were pace to to group the hotels respectively, had [indiscernible] contribution a

see We’re very pleased to increase. that

of of at portfolio resort the in based non-room added increase an seen our practice for sort have You overall study quarter. revenue from on the the

the the anything to booking as on that, the minimums, you up advanced And Thanks getting again when you’re signing for you for Rob. spend, behavioral better side relates are commitments larger commitments groups, blocks, patterns? getting it

book you’ve of the with terms had it. in associated on changed nothing’s the papers Shaun, data, the

Thanks much. very

Thank you.

line Hartwich with the proceed your Green from Street of Advisors. Please comes question Lukas question. with next Our

Hey Lukas.

change transaction first a the the strength this you that that there then was June comments three sold maybe something was earlier great. on Was assets earnings be sales maybe And a hotels could market, for the between those in the if of $XX I – there gap is from the expectations million Hey or different? your with buyers’ price about for release. just underwriting of David tie that’d you quarter Lukas. noticed in

which and deferred million $XXX candidly hotel. million XX% consistent Again, we below million average that saved proceeding we’ve another up noncore we noncore. some three with XX% portfolio $XXX me, holding. $XXX originally one CapEx also to had of deferred contract add $XX these by diligence all sold that were three XX communicated related pack of to you about CapEx now for matters with our let and $XXX we’ve for million. for and sell in about due Yes, when our two we’ve under which RevPARs close the We’ve the saved million successfully all to not Again, strategy sold assets assets

right some equity as really we’ve think created to value type the Park that portfolio shareholders. outlier really a for complicated looking asset really with that was of strategy. better asset we’re asset real issues That and for particular for their not the and we significant buyer is the for in given private build a fit So difficult and

may combined you we we in So looking our also documents pleased with that if what to sell. recall the were said transaction,

We’re pack New our and hoping in free selling that Park net then we XXX York selling Chesapeake – could assets two obviously that their generate proceeds of million.

say in positive that company we’re that’s by that then for We’re gets pleased it approved a shareholders. and to assuming the combined again range

in that pricing maybe market. table? the then, you kind more you strength remarks and on your that And about of a just if Great. buyers more coming could Is coming of prepared the than kind the in transaction Is elaborate to your higher little thought? comments

markets liquidity both the say capital. the would plenty down I of David, on there’s equity

hindrance see don’t at that to being deals we a So getting done. all

that’s We inbound a calls whether of other whether very think ton whether a whether environment. family equity, received that’s from owner reeds, we private fact, operators. it’s offices, healthy that’s In at that’s

Great. the color. for Thanks

to like this would closing Ladies for the further Thank are turn floor at comments. you. to questions. gentlemen time management I no there and back

your you Thank the summer. and Baltimore. It’s board subsequent various weeks of you Tom meetings months. talking the we’ll and talking enjoyed to your you. Enjoy see at We’ve hopefully our many rest and our quarter in of of with third about the end and discussion

and teleconference. Thank Ladies today’s gentlemen, concludes you. this

lines your may for participation. You at this. Thank you your disconnect