Park Hotels & Resorts (PK) 11 May 202020 Q1 Earnings call transcript

Greetings, and welcome to Park Hotels & Resorts Inc.

First Quarter 2020 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ian Weissman, Senior Vice President, Corporate Strategy. you. Thank

begin. may You

and Quarter to XXXX operator, & Park Resorts' First Earnings welcome, you, the everyone, Hotels Thank Call.

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

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

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

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

Tom pandemic Officer, Chairman company deep of the morning, the Baltimore, state the company, the Executive the experience proactive these as times. steps discuss weather and Chief Park to and will a has difficult team's during taken including our This

update measures provide our extended and We Financial analysis. of that various industry Sean well review will Chief brief corporate details on also provide and our operating in as a more ensure thoughts on of Dell'Orto, our have cash addition place on to detail time viability Park's on taken Officer, period plans results forward. in will contingency been the operations quarter as an level XXXX the first moving liquidity and for current to providing an

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

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

disrupted nation, hotel that all Life, of industry an an that are that unimaginable Goes place. of to I everyone. changed unprecedented healthy in has without is been call this the we welcome, still the I COVID-XX saying in way, stay-at-home landscape all it, as Since many are early the and with impact time and March, to you safe, want of by doing Ian, can the for has we know us. orders you, the saying navigate which well. operating start adjusting best our on we all of Thank and are listening across this and crisis. last completely are issued in hope

First and our safety the state fluid changing our the partners guests and of been involved as has restrictions union constant operating with reviewing local various top employees the our in discussions This and communication priority implementation of our and has well our partners, local foremost, guidelines ensuring properties. with the at measures our at as corporate employees hotels midst of ordinances and regulations. proactive and

financial our lost Our result of hearts either or facing their are this with temporarily those health are jobs or as risk who at a hotels, pandemic. have

we management And Second, Recession. have has to very Park several that our remind events X/XX I been want including experienced than careers, has challenging team. throughout current a operating the natural Nothing Great our environment. more disasters, navigated disruptive listeners and

our was a will received the evidenced would balance by hotel ongoing aggressively scope support to we our burn their group this for of and unanimous costs a syndicate increase our the actions cash the pivot rate. and up accordingly personally amendments credit by announced REITs seasoned team. from last vote provide pandemic I experienced our the trademark about specifics to week. respond to liquidity However, sheet among thank Park across once domestically, unfold the approving Sean of later group the first and the portfolio, minimize showing But began to banking throughout global and we like crisis, cutting

admittedly, ultimate as our and have the to while and this throughout as it our is get success crisis. together. in one a it worked well will And This very team will and talented viability lending moment partners men is through pass, women challenging one, and company's tirelessly in Overall, we it time. I have great operating that ensure who essential is confidence a of

We entered X priorities. key XXXX with

the of had was already Chesapeake First, in of the onset from acquisition. to a challenges, our we're million operating $XX Despite and we expected to complete some X industry synergies synergies realize broader realized the environment. ability XXXX, in the of goal year of our at primary normal the goal million $XX confident this

By with Hotel. improving completed $XXX million, remain the more have the asset the X focused Paulo sales completely noncore Hilton through overall our of sales. on while sale exiting of quality Sao international we Second, of markets February, portfolio asset totaling we out

disposed Over of the to quality our we in assets portfolio. billion, a resulting $X.X X for years, improvement noncore overall the have last of XX over significant

debt. And finally, were on focused reducing we

Following since nearly or noncore and on believe in sector. of our asset X core $XXX X.Xx hotels, sales, XX% Overall, progress of portfolio track nearly acquisition, the a to turn announcing was are we which forma back to the Chesapeake and company, half significant post XX% represents we on portfolio EBITDA have our of be overall million strong pro made key leverage our any down as the our improvements value to as deal.

confident are that for We long-term have we success. foundation the laid

are hotels capacity total airline or demand. housing are remained medical-related extremely suburban of of rooms consolidated that Currently, operating circumstance XX the XX,XXX like number our properties In Next, and house total, XX our of capacity available Majority with remain at either groups. are only many are urban our Park's are A open significantly small open, properties a with or I'd floors. reduced closed operating to about airport brief special provide towers crews limited of update guests. to that XX% yet current to on hotels hotels of operating environment. our

routes to are airline as some of stay-at-home near-term We our as hotels resume the to as in easing operations easing to indicators which assess restrictions leisure of beginning at we markets in hotels of the expect looking early demand. June, we to subject More as orders specifically, drive-to and well resumption such reopen.

such pace solutions, vaccines undoubtedly the medical early recovery. the and will is to as of it While accelerate pace therapies the too of openings, quantify

decline RevPAR fueled decline, by was with briefly down We equally both and negative a a were results. impacted, leisure From XX%. Turning XX% the XX% first segmentation to XX% revenues in our a view, while each, ended quarter of transient point business group March. a quarter

demand was continued travel significantly. for X% contract slowed vast have Our a has air flights been majority international quarter. the not domestic the up as has that This canceled, is of and trend

travelers Our EBITDA although from restrictions came XX% resort longer resort is XX% not performed travelers second hotel in impact average, slightly as early of business travel our this overall group attendees. in down adjusted the as generally with locations, markets Roughly RevPAR properties impacted case quarter on as or first they no did leisure better quarter. the

this declines RevPAR into Our airport also assets has the suburban quarter. continued is less that trend experienced a and second severe and

as quarter, However, the their hotels EBITDA these comprised is during approximately not significant. only of hotel contribution X% adjusted

quarter. to ahead the second Looking

are We to see trends of of we for expecting quarter. April the a saw in remainder continuation the the

well Our of for RevPAR data April, seeing of Smith was end portfolio month hotels the and the chain Travel which XX% the upper we down at resort the mirrors over scale. been for urban have

to extent and be unknown, XX% in remains impact most challenged. the the While May expect of quarter pandemic and or of April we to duration declines with of be second more RevPAR overall the the low point, the the

by general once conditions, particularly believe resumes, Miami. like travel forecast in to our and and We Key drive-to will markets look signs fuel We then too we return is generate to a some look by gradually to association help to and like travel, hotel of travel first and Orlando, leisure the Florida, expect be soon followed demand what business themes. highest have travel the it social the in we do West While to improving segment group. groups; to demand, corporate segment will in leisure finally, transient confidence

travel normal things some At component, and Overall, nearly unfold. continue to the when for of XX% aligned of airlift. has is dependent leisure-related end is time, June the that Hawaii the revenues to although course, subject account heavily our of considering total revenues we our in to resumption not leisure until demand properties to on of return expecting airlift as approximately change at this earliest this, are all

revenues terms a washout. XX% virtual approximately year, demand In of down group balance group of the quarter for second the with the are

Although at is relatively up markets. across key our holding very fourth of this several The quarter the situation, well fluid. point, obviously, remains

as likely So path recovery change will the most numbers to these unfolds.

general, operating are a we model when In resumes. travel different expecting overall our hotels for

made change have been constant operating we and these We begin and flexible or do outlets reimagined as be distancing, in changes on to slowly we various accommodating be and to to and Hilton, Based the that and that our social emphasize hotels Hyatt, and at safety as hotels meetings how on focus cleanliness. programs partners beverage Marriott food open to about the reopen brands such our to up. components and about need think may back employee be profile discussions, to the as accommodate expect banquet guest and communication the with need

have be crisis, not been guests such I We We proponent this contactless away a a service are for vocal that I is one long example, a destruction the move sterilized. there that housekeeping current silver as for of increase brands could lining this added program. an to need been immune If them. speculate, Digital altered have and provides clean a to The a value Key owners. this with also in is between way of housekeeping in and rebalancing the check-in, will assurance Hilton's expecting from pandemic. brands and guestroom be of in the see daily would

partners. look of have and look with to with more on to be may you future balanced We glad dialogue discussions calls. to like. what of the had have our We encouraged brand branded the part been I very this are forward welcome by hotels, we more approach sharing a

that, the Sean. I'd turn over like And with call to to

Thanks, Tom.

XX% budget $XX in our expenses first fully of last aggressively down the when of undertaken G&A we cut operators reducing key payment and $X our XX% April dividend hotel revolver majority by roughly the of CapEx to position, to working quarter the several slashing quarterly XXXX were with approximately on our suspended. to corporate dividend, month million, by initiatives weeks, liquidity XX% capital following proactively cash including company's our have March. Over our by Suspending our the hotels billion our during drawing and several a improve

we of where under scenario. against estimate, costs a reduced employees of approximately cost significantly of short-term per burn and structures debt hotel for company's month service, hotels we XX most this account we rate billion currently Taking cash the rate burn and liquidity scenario approximately extreme an corporate operations. carrying the benefits Taking G&A the believe extreme $XX the hotels, on on the million $X.X all months suspend of have for into estimate based balance the sheet furloughed developed of

From standpoint, for key structure we a report were secured amended facility and week. revolving extension the first, the options In December our we objectives: pleased the XXXX. to loans, I'm successfully accomplished credit last capital term pushing amendment, very maturity revolver, its to which that X finalized we

additional we XXXX. accommodate should business our capital this with the we and to subsequent challenging through and like Second, testing some portfolio's support our financial company over critical quarters built extremely provide suspension we group recovery suspended as flexibility covenants to thank flexibility of I bank And the period remarks. X environment. we to need continued QX With That our prepared us the members the would third, their concludes navigate manage market into and of the of access additional for efforts XXXX. amendment this liquidity. in the their of personally to after

We will line the Q&A. [Operator for Instructions]. now open

please? Operator, can we question have the first

[Operator Instructions].

with the Rose Smedes comes first Our question Citi. of from line

that you you talked been of before in just about opening -- I talk could talked your then changes to bit operating any I as now as model talk have how picture, about overall costs a And maybe grouping a that, And guess sort Chesapeake guess if up -- different your of changing assets the labor to see strategy business going about about a lot maybe bigger you remarks, forward. little you just kind here kind of could just the reopens? trending property? follow-up including you of

Certainly appreciate the question.

-- Regarding as for and strategy We it. we in intermediate our our reshape term mentioned think continue that certainly hasn't this in portfolio improve prepared the that remarks, core to Park, we long changed. obviously obviously

about hotels urban, in XX are of our I more thought therefore peers XX% metrics could value. up long-term portfolio, very well layer convention resorts, yield for We grouped business should we've our again, natural and advantage for We operating and changed. see sense out. hotels, core that, value that of which our and, we our it spun recall group anchor Our EBITDA play of we in made against conventional and XX% about net were think Obviously the to given hasn't you that account our center, some efficiently. contract top the our of and really obviously transient

long We given today, in certainly to ourselves the find Obviously are believe in unprecedented going we need to term. that adjust. we that circumstances obviously

in through there effectively -- ultimate going be given to certainly is Sean to about group continue this of can drive-to the find lag. As in to mentioned as We in fact think recovery, are obviously XX,XXX to markets, remarks that are markets, his that are ways rooms XX,XXX recession about way fill likely and that we have certainly competitive. rooms, to where we work our drive-to our the interim we

vis-à-vis what we solutions get race as the which and there's medical back, we then, continued The reality certainly of certainly corporate also therapies it well. our As if happens expedite is get lot prepared depends corporate on pace of followed come If a group a we underway, that. recovery here. the we said vaccines, obviously, by group and can to obviously, would would expect and And leisure transient. global lag in remarks,

As time cleanliness really safety I to industry a we we as spending thinking are across tremendous and our Clearly, importance our and think in now. of labor, to important reopen. the our paramount with of right partners, it operating guests our relates what's are amount about peers, working

my as prepared can you housekeeping an it's the stay-overs. Social perhaps, distancing housekeeping model a we in remarks, I And issue will mentioned -- during be where continue see changes. And scenario there's as unfold. no to

You can service see model being the room altered.

food see You can that and being beverage significantly. reduced

balance, the making a both are I figure been is as think finding also and move rightsize during very sure business has cleanliness to Our unique out model. crisis there's brands the out safety do to the a way The I issues open balance opportunity think that and but of that here forward. the obsession And are a better addressed, now. we

from comes line Powell question the Anthony next Our of with Barclays.

on be Do an kind or For need Just before operating cost step costs. New hotels of for question markets of there? of where in of to reducing you're closed, and need like make there progress have brands balance operating do open? the between York you and on kind kind on your example, that owners place that you some to them will interim

the U.S. the obviously, the most Well, given clearly, the difficult, been Yes. we as opening dramatically. epicenter We not York hit challenging New fact of quarter, Anthony, until that's that expect pretty has -- would Hilton, know, the the you operating pandemic, has probably it third hotel, cycle most all quarter. that, environment, in be York, that New second clearly the it last underperformed -- this late

that, don't already and And work reopen we it We plans reopen. place. very both try that where that make orders matter reopened exactly stay-at-home in be in certainly cancellation component analysts but in understand a corporate rightsizing we got operating have relaxed. a requirements processes sort the to lifted. added will right other position will and local we're expect today, before into can one, that in transparent disclosures books, you've clearly, on the the up. a so the assets, be current finding that of that of The reopening of been when model reopen reopen we reopened that Any we been plans demand slow days And that to But pipeline, into of What's the the be reopen, ramp detailed we full the are asset. a have of to have demand. visibility Many other what's also that we policies also in of travel And all justifies. We a understood go sure the critical days. risk. be capacity. We matter have also will we'll investors assuming to very in have

business economic sense. it So make the to you've to sure that model rightsize makes got

too most New no There's integrity. York, supply no rate York, the complicated that's underperformed, there's be of it is and in rate imbalance. been course, will occurred the growth, devastation much the there's given just New

New We model there. we in makes have sense to reopen make the York hotel that sure the before

been about And the on delay there other if there's of guess, priority there. and restarted I list? be approach? that it. authority travel Hawaii, is restrictions say, an of, other and I would Hawaii, could high position negative sentiment some, on sense a kind on there take they Got anti-travel kind of getting And towards to travel headlines your kind the governor of What's

obviously, is was on could it end that But reopening Anthony, We it's say, there's May. very a for place at in also late be great occur could in mid-June. think Hawaii -- that, question. I airlift. a March. understand XX-day And dependent visitor, the quarantine the It's lifted complicated. it's implemented in, any of possible

I component. planning now. early some great happening of is airlines great in think But which of to think a is to sort country important I of our mid-June, begin an operations the in are what's right Hawaii example

You've XXX the approximately of had COVID-XX cases about across islands.

very You've had life is Any we're on deaths. very the what horrible context, But seeing loss jurisdictions. in only is and number sad. XX other in small based XX a of

$X.X to unemployment have got XX% And state that's a rising. at that's You've billion XX%. at you rising and deficit

And balance. better to some point, so we at need a find

X.X coming, pretty out Japan. obviously, a million, demand. been visitors years. million this leadership of That's about you to XX% of of that look if consistent of XX lot that out that other I There's suspect for of can governor's men and of as begin women say almost at will And and XX% that historically we X.X and north U.S., other coming in leaders X from that, encouragement of pent-up visitation, to the the coming part Hawaii business I reopen.

fourth this So we very as we're surprise leadership I but detail, provide as even that and of -- quarter, the begin, upside, the Hawaii process really common And to is to realities. beginning reopening there. serve encouraged perhaps the people balancing we need reopen think think obviously, catalyst to of situation actually that that But to could to a will I the so incremental risk process. a understand that want quarter begin third with certainly accelerate that health there very economic

of line Rich from ISI. comes question next the Hightower Evercore with Our

the to and back related So brands. owners question the between to relationship earlier

in in extremis, now that everybody So and right decisions might sort operating make the change as you that environment reopens. of an in light is world

So some Tom, this could view extreme that amenity call creep view reopens are or as particular to moment? want balance that of months be if world how you whatever what those measures it, you XX by do you on cost-cutting to How the what months brands do time you evolving over allowed and from the that? envision, you and the from versus see now, expand now what's today we XX at going

Rich, Yes. thanks.

I also therefore, also it's would your I going but owners been a it's you need surprise the work, when out revenue, and no all fees. has and And raise to healthy call a business have additional model doesn't not don't got owner don't submit balance. they models have liquidity. no a wake-up I when listeners Their think a certainly to of they the work, and bit respectfully think think of business the business your their that based the that community actions brands other great I on question. that

come concerns, reset owners one, address quickly addressed and as And which there's about forced together cleanliness immediate are raise reboot, think possible. that, that's And that will, a and an talk we to you ways safety as I which a level cost have got be to there's natural cleanliness. if really to them so incremental the probably and can that and of

other you've we no do take clean a where throughout room, how perhaps consensus you a housekeeping use stay that. to that. the I in whatever one are no got that of the additional, think as incremental duration going part therefore, opt your that unless cost? or So for thereafter benefit various out get a there's is really you enters industry the of it's certified else room Perhaps brands some building natural, or been

room think Room beverage, is very profitable Hilton, York of kitchen, you and at typically urban not throughout. a and and cost New service of the same using issue. more other given think model that's about high service We biodegradable expanded the food the could environmentally and measures our certainly friendly center. If there. a one first delivery to a that see and eliminate you that And I getting

probably what implement that that's permanent, as about buffets and of the think over go and months. given how kind that interim temporary not next few Think likely and distancing, then in but framework to social we away. do in of hopefully, we beverage serve Food see the we're

everyone rightsize sense the going can they to is it peers with, where concerns the been the now it's first together begin need the primary talk have We rightsize trust have. model hear economic come of has the and to because most for at foremost, going offense. will think this what's that we important is to so that time economic stakeholders, I In to sustainable right and model. I in and while is industry the starts and we so those feel operating public safety, on back feeling going they're everybody addressing that heat, to and is all environment same some the about to makes provide us. decimated recognizes my to sure and my an because to traveling industry think Rich, try making view, I the come that then

great And in all believe going this look, back. We country. know to we they're come

there's no really But to we've to in a Obviously, through we'll accelerate solutions Now doubt, through these got issues. get to begin get medical will of address this. this, vaccines, order that. number

arms room that front to that raised out flexibility, out expect that all expect business for costs begin bypassing I've that less. business. would to the I saying So have more expect I and the the desk, would things clean hotel cost be been cost pull make of year customer would the you'll sense. also you that to in But they years occupied get per digital of back, more those the brand see would I access concerns. address the They of and key begin other amenities.

needs focus on be. real come a lot think a lot that lot being force have that's There are where to together. energy task that of a the occurring. are dialogues I So the formed, of Owner brands together, are of come have there are a groups

-- there's in we're dialogue multiple occurring that's an I So open levels encouraging. find in the that business

We stark to But of issues. have to ourselves deliver. find I we given now, these we reality where think the right address have

helpful very shifting That's Okay. color, for Maybe second. Tom. gears a

Just Where see there? that for sort such now. you the Park to the sit color is unlevered in Where transactions -- of comparing you values of and on the closed Any as where it of deals and asset the maybe impact hotel sort mid-February right February. today. we putting to market, do do lens between

to selling Africa, we on in noncore. X a priority that reshape this great successfully it's assets in had we of were of clearly the able know Brazil, portfolio, Rich, through tons get spun to X Park. was deals question. in priority Really were still continue tax, a our sell Every But success XX to South to those you that noncore continuing heir since for in and and proud listeners, reminding venture legal, had joint those were that deals is we in a and allowed Dublin. Germany, a U.K., the a sold Yes, XX us international them. It we've of lot out. real one

sovereigns, can also We they close that equity, buyers, family and of all have offices, all types be of wide engaged that been equity, honest, those would quickly I'd all say that the can need say they brutally don't right and discount COVID-XX I with now. the too the gap private to cash. buyers, is private of debt move natural all

But their think think like sellers even buyers depending perhaps to I looking probably needs. of for XX%, discount individual a north even I on see XX%. are you sell somewhere XX% would XX%, with

up trying you've think there's the begin the sector, I build that number good So to I blown to here deals But weeks. think the any few liquidity is seen in of last of a transaction, plenty gap is get up now of recognizing window really sort portfolio. in expedite as to to that too have the wide a

as of the we to begin will to And to priority reopen. Park in noncore think more you that clarity, begin clearly, asset be sales. I see explore operating get next to months, market couple a continue for will

We sell it that don't runway huge for have at significant to to liquidity. at make shareholders. and room. We've We desire need feel don't and sell discounts values the sense our got

forward. So we really clarity move we start think wait before will and of will deals be we'll for to thoughtful lot more a those

next Our Katz line from comes question the David of with Jefferies.

to that third-party from the of and direction, a assets from switched is we topical Tom, moving around where instances third obviously, in wanted the that the management owners sort I seen the just have follow-on now perspective and engaging. other is to with commentary balancing between management party. brands owners have and industry brand

X driving how in where if competition, about Just sort And will? broadly you you and really all headed the of market that's day? do speaking, dynamics that think

Look, great things. us and diversification. It's of benefits gave gave couple say a us a the brand we question, one have David. deal. real of the geographic diversification. operator Again, I'd It of Chesapeake it

a third-party have and X I Park something independent not is believed best we is good Getting brand now operators, in seeing intel, the the that is that thing. operators but competition that, happening are best team those things always the across operator only here operators. that at the practices, side, that in, On those believed

or big power you whether about national more brand think lifestyle nimble, management that are portfolio, having complicated there have for an make situations and where autograph hotels component. or the think our sales other I There with the where don't natural resort are brands group center big hotels brand are sense. convention hotels they're purchasing big

We are clearly opportunity. that perhaps the for having that business operator is manager rightsizing an independent

a having of -- diverse We of one that. very That's that are benefits at again, constantly the of one have the looking portfolio. we

been going the I So to I worked I as And hotels, that evolve. think X having for think, years, worked see the those more brands And suited think you're for resorts for I the for many nimble big should better and in think I opportunities elsewhere. to are have versus will the areas having of conventions that, that I twice Hilton natural continue accelerate companies that are that luxury hotels, there think wheelhouse saying that continue just can in stay unfold. in. we occur really, to Marriott

line from of question Our comes SunTrust. Patrick Scholes next the with

There's affordable there markets, that and major many chatter see homeless thoughts in best for your housing some highest especially we What the York, to out convert rooms New use. as that? on housing industry could hotel are

it's I like be would question. most probably the markets I think would likely. York think fair New a

sort XX, were it underperformed need single market with right could to that what remains there's digits. of sense. back XX%. other in forecasting the the supply, we The I you nature hotels of economic us probably if lot XXXX, we where think badly core years and days, makes at what's And you operationally call, brands would low largely given badly all of sense, think demand incredible we was it particularly uses, make and XXXX ended of and if reopen York decimated now is given XXXX many think about there know, underperformed market. the those And more responsible, has that perhaps surprise we As it And that and fact converting had happening I Park that X a ago, New over never the amount are and closed, XXX, those much New York compression and because too had supply. super not

You and so do And to the brands the would would work. in help I many market. owners the suffering them pain in encourage supply, to and cases, occurring need, cooperate that to to reduce that's

York? your I on to in that, guess, step one New possibly would taking happen the follow-up that hotels of

We the big And given we a significant New think own of contributor at would its in among the term, that manage a now, to a sense hotel portfolio market. expect COVID-XX Obviously, devastation from the from But obviously, the Hilton, process regain one X it from health, New will we hear, continue U.S., and in to York. the both epicenter environment begins the said have there. the would And get of in occurred place the role a intermediate patterns reopen. as being strong last York providers natural health We for the here the second what be and reopening right and as that's there. be again, I've that, we convention earlier, and be platform. X over we the that demand center the long obviously, in can of this largest governor, in and our the hotels, city, the

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

how office if tenants does states restart, toward not -- to and those second. the said, reopen to stick going December. with were until New of some the New end you just office your true, York, We're season decision are January hearing I'm in that stick with towards from impact also Labor brokers or that the for I'm June, a return Broadway think that I a post hearing may York Hilton? the wondering leaning to day Christmas possibly

Yes. -- that's a great Bill, a question. it's

likely the sort said be now. New that clarify. most of I in thought me third we I quarter opening just Let York, reality would in given

are you I think terribly important. the brought data out point that

stay-at-home the continue -- and expect at patterns to is happens with devastation unfolds to process as I from later, we're you look there. to governor, what you got I that's given portfolio occurred first think be that can of William in then companies both understand what foremost, travel to last which from locally hearing point and what said, happens to I you home, people among mayor and orders whether the And work terms the terms of booking, from opens how the and in our the would that Hilton open. the allow made in York Broadway about New would their

business. years working continuing rightsize many been over have We and that to

food and little very there's beverage. know, you As

the kitchen. urban have We

service have room We delivery.

tough that are operating in It's been a there So very underway number still decimator. a environment that and things of have hotel.

a you I said the and that extended home more probably remaining who significant operators -- owner who it city if time Park there point diversified think As many fourth XX%, take only or probably are having portfolio, I quarter, has don't who line, to earlier, third liquidity. have the XX% at large, levered drives your have operators up that's of luxury closed, reopen. the let's quarter,

this. get through will We

to do. and they the reopen and is will everything students, side, depending on and to are We sources other get hoteliers a of reopen. more optionality. open, depending about out reaching of But what other taking talking that gives They how they on lot us universities in finding demand, when terms

the there're for -- next toughest this will that the component the talked over demand. are reasons there all aware as York probably New the we've of So about. be market months that all of. several In lag, we're the will is case, Clearly, group pockets

appreciate going the does change hotel I follow-up back hotels New a hotel? the or opening the is as -- closing necessarily whether decision-making to specific process But it's a away that. based And how not on Yes. union on or and York. nonunion a

Yes. great It's Bill. question, a

another global it's women of year we XXX we management The have of just I closed, hospitality asset large disaster. days and a portfolio of other never business scale. Obviously, and a think natural the get for. benefit a Look, and us admire, our job. a organization We're men open that that a right? than on phenomenal we having all team done planned pandemic a none love having

with partners to our XX% the the suspended down. our the eight our asset and whether interface same management balance tirelessly close or all begin reopening we've between right are now various had made whether those shut team trying to the work pivot we of have to we portfolio. could operating, across our prouder companies of asset, brand Obviously, our those down or time, find So the the are be to independent not At the we've stakeholders, of and management rooms, process.

of our are going Again, and they're developed partners, we relax? think to try anticipate we in have begin look do asset regulations? to what local our operating government team ADR. with but be how days. the what's into that the up a weeks, those we've to running situations in got days, visibility current books, have local also sure can conjunction we management that's what's and in plans. So We When and pipeline, work But on demand, the think to do current in we not and we the make and state matter

to have going full to We not we're because reopen rightsize at capacity.

available stage as sense. it health the that partners But more make That's going would many would to on fact a So given reserves union imagine, to have back to welfare. when of and have the I and say how side. that difficulty employees complicated, makes to have you the sure that the you our economic significant union little through the recognized as situation bring them you're of

been also through issues. accommodating to types of We've those work

Of the also course, been are on helpful. the unemployment steroids government, has government programs providing

we South obviously, the demand West, drive-to city Orlando. represented. In bridged. forever industries. strong strong are will where every we So have that its are to news of well think process markets, Key of drive in Obviously, this without in good is California, us are think, Florida the beginning time people nation can parts line. own obviously, getting But reopening and do that go as revenue I across None we a

be York, probably demand, certain be that So lot figure And to markets be most the there's again, all scenario a tougher together, this where out to I certainly to delayed. think likely of will going be still will be of to New there. going are just going fits it's there and

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

are a to next there this will for that of see or what Just on allow of would half canceling kind year of that and back the And ascertain up half you group XXXX wanted your for half look coming first the of not business. year, that a first give things sense us the Can cancellations I wind year? later? or reservations indicators to second rebooked have pretty side, obviously, to then early any you group question, sizable likelihood focus just this of part able you the either or be secondly, actually

Neil, hope it's Sean. doing well I here. you're

they kind is -- say our be of about through year. rebooking. in -- of stages. Hilton certain point in June, first I would probably in been your in future. to But of March time, in could I would might just of primarily room of about kind going of majority is now. majority kind is rebooked about in about question I'd had -- There's obviously that place sales, booked the majority into work waiting will XX% stages back going of that booking, booked various We kind the that has There beyond XXXX. is a process. canceled. and through continue of have in that million or to be of right QX. the hopeful say been at group. But some Hilton certainly of on this other beyond of marketing discussions kind again, into revenue we're and hotels $XXX say of that that this Just was, XX% in That kind stage, from had about certainly activity is that

the the changed the on we how half dramatically. of about back In of [indiscernible] haven't books year, think terms the

are group back quite of I have this this, solutions about certainly think of here, that a it's there, Tom having and place business. and or think, wait and start several together look option I kind can business. don't probably others bookings for for that. and we've group. attracting they you those the talked seeing mentioned, at really so come out, where honestly this there months, as But half, weeks last advantage a consistent brands of gives kind see with to treatments X a here the X -- see things materialize QX of and kind acceleration place, say future us Clearly, weeks lot cleanliness we how to seen others as and how of where that's the vaccines we programs the and over medicines, in put window groups faith even degradation around to in as to role people a retain play How

holds that I for while. think a

back the now think in faith on lot the half the right what's books year. of don't So a in have I of we

Okay.

have just longer-term view. The other one a maybe or broader I is,

and get terms back Various economy you to in and governors unionized If you shift that sort look Or on markets kind up those side. the the what's -- states political maybe Sunbelt Does you're look markets their five disparity willingness the you legislative hurdles, make operate kind so hearing tough a at portfolio over coastal coasts? you between of running. of looks the like of look the of and to the -- the years like? or at things allocation Sunbelt, various in priorities what next rethink over or side, how versus your

great It's question. a Yes.

part that really if and the demand. this different want for our we reality you about is think business historically to peers, than think and no the I follow

Francisco, of today are $XXX,XXX well cost city, We are replacement et XXX,XXX probably positioned that and center in And fact when probably overall. cetera. portfolio, Boston, assets L.A., to think from replicate, is we're or Chicago, minus, trading iconic we Hawaii key DC, plus or to the you north San through rebuild somewhere impossible our

said that the hard are doubt investor-friendly markets. is it's there therefore, there's growth, Nashville a where no of So world job and revenue. Austin have you that, out. still another, one, although we're secret of to very the that is don't Having Austin is significant sources in imagine a certainly

[indiscernible]. You can time over see other Texas of parts

Houston to continues. always population there, and oil. We're ebb on that Clearly, continues look and with probably the of at depending growth now pain happening Antonio. San say Florida you might to explode the there. what's seeing flow tends Some sort as

balancing, demand, can you where I about it where a the the and would risk-adjusted So end is you of to see day, appropriate say entry at the the generate the returns. really but barriers where is

line Montour JPMorgan. with Brandt from the comes question next Our of

monthly hairs the be realize so guys -- cash I cash splitting the I estimate gave. but here, And you burn might that on

trends like bottomed here, burn Just see nationwide sort where a estimate future? today's brands may Or into us you made given the continue the even burn April? you now give if maybe that U.S. cash for have trends some it estimate, the cash can of a today in larger of monthly it sound just

I in started when -- of about mean, want I say $XX a we does the looked about are think it million, million I'd me March, $XX not. million, guys what's just that April's driven CapEx. as We to just we -- and kind kind CapEx and reported to Brandt, we've of results, us if pull $XX today yes, we've at together. as going kind of had conservative to people I this say looking it, out at the we some estimate million of $XX looking -- April, included at would pointing million kind as you let kind clarify, what -- of you're of with $XX were of out excluded it,

came it's about And $XX million million that from So really a $XX difference. the operating really of hotel side.

a May good a one being and or that where ones kind the on it for level sense. shutting other at at April versus around a X, we for being So and that we a kind again, given will open the XX be is here think service-related million in as or kind our but had take reducing level a month what we the were looked we million proxies Knowing various be the model $XX where of $XX Maria, of asking for will we have assets a $XX profitable down at detail to for are aren't a we looked a operating open and $XX the operations. of will rate, that some shut great with preliminary looked talking revenue, burn estimates pretty April fixed -- to down post-Hurricane come ultimately at suspending where thought that at down conservative million low certainly, estimate on costs. the good great certainly proxy at, cost as We producing certainly of looked for state ton asset. We we Hilton based our hotel level just million of view. corporate debt what side suspended kind of carrying We triangulated April, obviously, this, marginal Caribe was probably a --

always good of us, that forward. going do we to continue that but think room we about and -- we're how going it May for be We for think test next there's that's feel will and do that. at I So kind improvement, look the look

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

demand, significant get of might ultimately some and but you view the a downturn maybe you was on reservations the to rate time, leisure but corporate prior of lot that different, hoping have I build totally continue yet the how into solid loyalty channels, a different this done to the ones, a might directionally pretty on unfolds think not which you group times brands have think work what's third-party and downturn I directly. recovery leans right ton in for get have your because side versus

you all on think rate do out you as any the we start can there integrity recover? Do how So to demand front? playing rate be that see see

you and spin years so. I X ago to question, great out -- a I made, back, it's in hope week the Park. that To Hilton Chris, certainly and partner team fact, is the this think with the you point Sean you if rejoined if and

their think you loyalty had then, in million Hilton members program. XX If

they're or plus and XX% now their minus, XXX think occupancy members. getting at from they're north I million of of

somewhere the is range. in Marriott think XXX I million

to that that opportunity I and we highest you add So have able stimulate, to we do there's possible an that their about desire make when you to that the brands, to hope think there. they customers direct to as to and induce our sure conversation and that of access the desire be demand, rate strength can. the getting those the think same the appropriate are and

However, people, price. fill beds if we bottom, historically in to any trying sometimes have business, at this heads and look to you the race and

and that depend and would I given of medical a the say rate here, the devastation so people when the on is about lot think going understand I we'll recovery, together revenue you the more it's have given that critical hopefully the integrity. side. are think working fact to also

As really brands, industry. promise. about we have and trust, is safety trust we and and and our know right They're brands now, and about a it them well-run in cleanliness

address through of fear. have that will bet I And we once changer. lot global America, to the find against we Warren but to those place, we issues, to need they the understand solutions, a it they have are get believe, really Buffett said, think this immediate have the this "Don't race as game underway in fact " the Because erases those medical the I

much so have We fear today.

I of out They get out. the think get want bunker. people want to to

over the seeing country. You're it all

reopening be I know choppy. were be some think ramp seeing back 'XX. that to 'XX. It's think we're We in it going back the to 'XX, levels. push that. surprise I You're it -- It 'XX, believers But out It's It's will that sooner. do in process. going up we to uneven. not get if 'XX me could wouldn't we to

demand? your Great. I Florida follow-up. drive-to quick a kind percentage appreciate of that, What in of Tom. And just hotels are

I don't XX,XXX, piece in about off have the right overall of markets. XX,XXX, -- our are now. rooms our XX% I'd say Florida hand about of leisure

Diego. and L.A., San California, Barbara Orlando, that's that's So it's Santa Key West, Miami,

make can a are people case wonderful certainly where and for You cheap. Chicago, going season city, to driving is gas the to be in

vacations I feel a commute the have in with hours, may people that you're get comfortable. where until, more people medical there's of X loved demand kind longer ones. place for So people think I normal again, certainly and to done X, do drives. think significant the their to clearly, extended to have X solutions plan might going accepting are people and out little But get of

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

you with REITs? opportunity that the early there's Great. ask, world This little see for maybe the a changes in all is to modern too among do maybe but consolidation going on

wouldn't business certainly make to right north can I coming surprise brands but cash preservation, whether keys, surprise the see Park, not As But rightsize individual burn you that on here depending priorities showing at the a we working Park find outlined, on of I've me the up the vocal that with know, that operating companies, they we've sure reopen. me, as of decade, in a for that [indiscernible]. are in near and the on -- laser-focused rate, and the Robin, advocates dialogue for term. our out would it it to of situations among the sheet, you been our we, most this, not we chose partners will balance

But you're interested that end? not in Is discussions correct? those saying either Park on

time. Park is this not interested in that at

positioned the that all We recession recovery outlined, on getting so are the through initiatives are laser-focused well that when begins. we on we've laser-focused the

then And maybe just X follow-up.

any a at assets, the noncore and a like, transaction kind about you're thoughts of in because market discount. might buy opportunities need that are are you you not maybe talked You now sell to talked for big hurry, about you that on assets screen? to your cheaper some there have things radar on sell you don't Do for and want waiting to

the on Yes. But again, sheet we're more the and preservation balance operating model. focused and rightsizing cash

available, buyer. assets, I not be time portfolios park process the as a for small at this be unfolds of will that there time for think be focus a plenty single to may but

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

lasting as on do Tom, a pandemic? this impact on I'm for have thoughts of hotel result potential you the demand curious, just a any

I'm for. never to believe industries lodging I that my are industry person. Clearly, Zoom life great that going the as speak none As we're think in occurring calls and meetings be same from life believe the the experience before. the I shutdown play, meetings all that's change. appreciate I and feel we get survives. through we'll I days have talking unprecedented circumstances travel we country. resume through, our and people in living obviously, the do of is able has said happened wait Lukas, can living that Spirit. interim, disrupted, impaired. there own see American don't wait everywhere, to in you to the be and we earlier, devastation WebEx. lodging can't us Clearly, we are so all the about do which and that we to I business normal on and in being I be through of going board I ultimate that I all this. about I know to the way. to vacations role but all can't to possibly I mean believe going And planned could many are that listeners, that our think

work And adjusted industries, are doubt I to markets be No change. it's are there to. addressed, safe, I will distancing cleanliness secular this, of where there think that where be some are supply. the too when people get on the will is as certain resume excited their social going about other beginning through sure people side much we lives. adhered we making in do there get issues to permanent lodging, think are there's But

hotels about will alternative extensively this in New we've and perhaps York, the where for probably and New uses best talked be call, outcome not York other are in markets will reopen, there that them.

result out think a just relative the this wider has to now, there rates will real applied I'm hotel thinking row you markets of couple the historically just market Do when permanently And Great. then a hotel fundamentals. you to premium the to functioning be estate? not curious, in reflected impact years the just risk maybe cap transaction I do think an again. will where be And of real estate. severe private hotel other mean risk this? a pricing asset as a classes perhaps it's downturn been of third increased

you do lasting cap there'll valuation? think be curious, a on I'm So and impact rates

been I do for as to And also I rates time. would remain know, going low mean you indefinitely. coming a long Lukas. not, are say, look, have rates I And down

-- need it's pensioners real when we've in in think wonderful through still of that. -- think provide going both Obviously, that that public alternative yield, had. decline. there's There's And markets, we've significant estate, is retirees plenty that's been discussions for hotel created I think real the a estate. But value that calls XX the for who about can those there a particular, it's liquidity environment hotels, you the of markets, years. shortage to and don't tough private so and -- last been those be no about inbound looking

the I'd Baltimore for Tom all we closing questions. have to That it hand time back remarks. is to like for

at to very We earnings hopefully, to talk to meet some Stay was point next the well. in of you over can It look person Thank you all be next great much. today. and we our safe, forward call, months. few

today's you for teleconference. Ladies and conclude gentlemen, this participation. does Thank your

your day. have lines and You at this a disconnect wonderful time, may