Park Hotels & Resorts (PK) 4 Aug 222022 Q2 Earnings call transcript

Greetings, and welcome to the Park Hotels & Resorts Inc.

Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. the President to of turn Weissman, host, now Vice Senior Corporate will conference your over Ian I Strategy.

You may begin.

Thank the Park XXXX welcome, everyone, Resorts and Quarter earnings you, Second call. Hotels operator, & to

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

and not results to and uncertainties are that materially As from risk described factors the which could to documents SEC, the with with and risks filings the identify cause those to obligated that the from SEC, these expressed differ to cause results statements. actual or numerous forward-looking future to in in XX-K differ expressed specifically contained the Please reports update in our from statements differ XX-Q, refer those by forward-looking recent are those performance, revise subject Actual Park statements. statements. important publicly could may outcomes filed most we results these and forward-looking future Form on

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

third on priorities sheet and additional Dell'Orto, results, for information liquidity, the this a supplemental review available our find update outlook well Officer our strategic in provide morning, Officer This of on Park's Chairman for an establishing Chief an Financial in guidance provide the website our as and second and color reconciliations will filed Park's second quarter earnings with GAAP the Executive balance balance quarter financial the will can You measure most while of year. Chief directly yesterday's quarter. X-K our pkhotelsandresorts.com. at of as SEC performance, release, to and an the on with this comparable together our information Sean Tom outline Baltimore,

open call will questions. would to I like to we With remarks, over turn for the the call that, prepared Tom. our Following

We exceeding accelerating increased augmented with performance witnessed the QX strength came and Ian, was and which pleased group to stronger-than-expected portfolio travel, report of XX% as materially very you, at results demand. by across Thank our business I'm expectations. performance, ongoing exceptionally leisure in levels XXXX welcome, everyone. in strong

on allocation in and repurchased sheet a second balance to On quarter during for asset strengthening at we value than $XXX our significant covenant value year-to-date million we facilities our $XXX capital earlier quarter side, the million sold quarter, and relief stock shareholders. our internal credit assets exited results, based discount our period for finally, anticipated. And of the net creating waiver our approximately estimate further the one strong

at demand came pro levels see to hotel and Looking Southern roughly stronger-than-expected results, quarterly hotel, expectations quarter also set hotel with reopened hotel, California. and nearly closer the for our San Occupancy forma group our ADR second with forma pleased our growing in finishing demand. for Village adjusted forma was Hawaii, average XXXX quarter pro Group urban up quarter. XXXX. occupancy XX% the Park May recovery of an over of first for markets, X% same where the the XXXX. demand by ahead quarter strongest rates were EBITDA to the the our at the in internal compared nights in second period million hotels saw recovered year. the to over XX% forth $XX increase the in group our encouraging of Most second remainder The in short hotels pro ahead finished urban better-than-expected of XX% assets remaining averaged performance while and participation June QX activity a Francisco, exceeded quarter quarter, representing positive remains ahead room first on of quickly Resort ahead increase XX% Hawaiian or Seattle, forma the XXXX. for pro pickup from slightly the point term of the XX very in and room at XX% of of came short-term quarter strong, a booking second from XX% the in benefited ADR XXXX, quarter the quarter, RevPAR citywide and basis the X,XXX-plus suspended picked nearly quarter pickup San slowdown on at demand, the strong quarter, the Francisco fueled very We Florida, recovery in in was Pro May. highlighting in with remained beginning following from improved Hilton last Note, the the that first occupancy XX% XX our while start over COVID-related seen of XX% forma XX the the for of percentage quarter, points expectations. and of up in revenues

a we transient business improvement the from of point roughly the demand, business-oriented terms mid-week second quarter, the business of quarter, a XXXX saw during the quarter, revenues. for material quarter sequential XX% transient percentage approximately XX% Parks opened second improvement revenues for of In XX first recorded totaling the of quarter. hotels entirety occupancies with

portfolio key recovers, continue make to progress the on four As initiatives. our we strategic

from and we operating laser-focused efficiencies. from margin both operating improvement on reaping model, the incremental capturing reimagined First, a remain benefits revenue opportunities

pressures, side, continue industry's benefit optimization as occupancy to On from rate we operators' remarkable efforts to offset the our help and inflationary rebounds. revenue rate the discipline cost

spend, menu covers. pricing of concept $X period same generate check both an on for exceeding million. quarter to At XX% $XX XX% with expectations the incremental impressive Additionally, million in increases driving for Hawaiian average our a XXXX, focus a our increase, second example, revenues posting and over results by and helped teams reimagined split beverage, evenly by food over in event continue aggressive over Hilton and to the out-of-room Village, in revenue bar

of that nearly points behind cost forma many managers on to for modifications portfolio for have pro during down basis compared hotel just staffing reductions managed XX%. permanent EBITDA We the side $XX savings savings of XXXX points of employees side, the permanent, are being the to basis. XX savings the in operational million margins XX% labor come relative drive adjusted the quarter second margin RevPAR were hourly firmly changes headcount our Hilton below our pre-COVID full-time On improvement despite a to margins quarter for levels, the helped XX% translating into or the stabilized XXXX Most on operational down within XX% of with and believe, XXX hotels. basis

Our priority portfolio second key recycling reshape is of remaining the on the to or capital to the improve quality continue active front. and

the on versus of with XXXX transaction $XXX the We sales times $XXX year-to-date expect versus executed of the XX debt established year. to have despite multiples $XXX remains in And assets our selling to million choppiness sell we $XXX million million buybacks on assets of hotel made times and reduce hotel Accordingly, $XXX portfolio. tremendous we reinvest above slightly $XXX back markets, recent goal in of stock by the multiple million estate of another valuations high. at/or to implied interest progress million beginning at near leverage Overall, real million executed year-to-date. were our the average in to XX

XX depending no dictate. position sheet priority maturities, leverage, Our is offense the to continuing approaching billion flexibility third balance with meaningful and bolster look Today between our push fortify liquidity to reduce to by next pivot our months. defense what is our liquidity maintain over markets on the as maturities $X.X and we

capital active by expect late which to also both of our discussions XXXX those mature addressed are year-end. address to and debt CMBS revolver, with our have San in in We partners and Francisco,

Finally our fourth priority.

space And on plan open executing ROI meeting Waldorf next six early we robust will of on to schedule to platform later two on to on expected the by year, work commence portfolio. the and embedded to months. and focused major within expansion with renovations that XXXX. Signia are this well space our underway Work Creek projects XX reposition unlock be ready the pipeline We our value space on of our the is value-enhancing Bonnet

Turning It's hard our uncertainty to possible the increased to ignore headlines and recession. outlook. around macroeconomic

bill in the forecast not fixed industry a economic is balance for this be portfolio. and our nearly in at to depressed by key inbound across XXXX. years Consumers driver in bodes pandemic-related should trillion $X which business personal remained pullback supported the of our demand following point sheets savings, Penna we portfolio and a Corporate exist following infrastructure X.X However, and be have passed stimulus year, demand nonresidential of in lodging international also the X% Congress have $X Lodging particular. still which evidence still activity, investment, healthy. demand trillion of well last seen

and on accelerates. market Group XXXX sits when markets Washington when to are June leisure on years. XXXX each year and While strong last the demand calendar by expected trends comparing where eventual our and XXX% optionality as showing XXXX And supply barriers sheet improve leisure XXX,XXX creating I'm Parks plans. are improvement significant the growth actual well Japanese traveler, is total supported priorities recovery low positioned turn on excellence, XX% mix to XXXX. within in full of lodging operational expect several we four June outperform with Park historically to And the to entry the who support squarely we for and outsized comparing next our three XX% to that the up our valuation XXXX the value absent XX% second Sean, corporate and costs, pace return XXXX resort, given recycling as to quality major call nearly makes of gap convention capital With value I'd bookings and embedded the with of respectively. our of to remains respectively over similar and the of Overall, guidance has portfolio XXXX laser-focused long-term XXXX, and three healthy we in unlock and year hotels. continue across color shareholder about major we limiting of half Japan markets periods incremental along some the with but for XXXX, now, room encouraged Honolulu at performance, fundamentals third Urban is in urban for balance our Hawaii incredibly continuing Francisco Denver, XXXX especially pace nights growth the additional XX% in significant remain above construction update the the are combined of the New very the above X.X% XXXX and over throughout remain backdrop, solid XXXX which believe recovery. pacing which to and And quarter. of continue Chicago, to provide on Boston to on to an with focused the for sheet calendar, years, of currently Orleans well, historically next markets balance about San the markets the been optimal into and our nights for group-focused excited events XX%. over and over expectations, achieved as is and we to execute improvement and rising the supply growth from D.C. years. see and to booked on room urban over bullish will operations under like remain for will closing our future.

Pro coming with forma sequentially results XX% Overall driven from averaged of XXXX. or in we coupled our over Tom. improved quarter percentage same X% in in the improvement a XX are to business quarter, significant improvement impressive quarter Thanks ongoing Pro with both well pro improved as and the performance for $XXX rate strength X% forma and XXXX leisure ahead second group with RevPAR gains to QX very $XXX pleased above by XXXX. QX an during transient. in the sequential point forma a period occupancy expectations,

XXXX strength below results pro Looking in our month points most Overall nearly quarter shy of XX% ahead is second projected two-thirds hotel approximately operating was margin XX daily July in result resulting or basis operating driven with incredibly and forma strong hotel Chicago, look rates margins. Results the in largest our quarter, forma achieving EBITDA average $XXX last the levels. of coupled XX And XX are still gains, were hotels adjusted preliminary Total course of airport for L.A. the third in to with XXXX witnessed EBITDA rate San addition above the New of consolidated one was points hotel million during occupancy with for averaging Denver, over just rate rates pro our York, hotels. $XXX excess $XXX markets operating of hotel leisure revenue be the suspended of very achieved half hotels while Downtown of occupancy adjusted forma Park with to XXXX years. XX.X% during XXXX. across An over or by the portfolio two-plus impressive the efficiencies the quarter. with the of strong Francisco, percentage pro to while million several XX%, approximately

$XXX a our including liquidity net on balance hand more on the at and billion, our debt of approximately $XXX $X.X billion while Park from scheduled available waiver quarter. to to than revolver one cash period, has expiration. $XXX the currently our stands ahead million credit sheet, $X I'm at Turning sits exited first million excited quarter decrease report million its of covenant facility that

operating Denver $X.X by both material August, liquidity these Village and of our Hotels in fundamentals are increasing cash million Additionally, their billion. for to exit thereby loans Hilton and in traps improvement Hawaiian secured Hilton given restricted two the $XX to early mortgage properties expected cash freeing approximately our total

$XXX board-authorized just second the our public over to estimate internal taking we private were material front, EBITDA. times take pricing return discount at and buybacks program. $XXX and XX.X total capital the On our to executed adjusted of dislocation the million buybacks million with buyback of during our between repurchased or million continue quarter, NAV stock on XXXX Overall pro forma year-to-date to remaining a just $XX advantage

to Turning guidance.

and is QX basis its points, Accordingly, New our catering XX%. and California. the Adjusted between shift at or occupancies seasonal a from consolidated EBITDA quarter weakest quarter spend. $XXX portfolio QX Boston, higher to increasing Denver narrow guidance to establishing banquet rated and guidance QX, the $XXX to are XXX XX% of year, we Hawaii, range the in traditionally midpoint, of revenue are and to $XXX continue expect between RevPAR and transient levels gap replacing For of mix million adjusted XXXX group see third by to million for Northern York, EBITDA to F&B the with as second we improve XXXX XX% be $XXX and will the to with production margins higher margin continues hotel expected which

the range will $X.XX and share per between $X.XX FFO quarter. adjusted Finally, for third

our year-to-date As This a approximately contributed note to remarks. quarterly million concludes reminder, please our $X that assets the prepared sold earnings.

that We the each we of Operator, open Q&A. your address follow-up. have question the limit to will first one yourself you ask and now we To line for one question can please? questions,

first Our Securities. from Patrick line Scholes Please of Truist question. with proceed comes Instructions] question the [Operator your with

And far for three granular levels for you that Coast, from customer? And Coast, then down Thank you. to it like the Thank my are of markets that, related New sort York, you Thank return Hawaii. perhaps you. question. I'd inbound get observations your certainly latest hear how a important of on to taking international off customer? pre-COVID the East San breaking little perhaps by more West Francisco and then the

below We're levels. read sort across looking of would $XX at I you for points million. I XXX of I XXXX. as sort $XX a believe international to to about this slightly second, for $XX say inbound latest US believe about about XXX reports question. thank was If million. I back year it from our the into markets, that think the we're recovered probably up at we major last in basis Patrick, million about XXXX year I

see that tailwind. as we certainly So a

look I you is think great a at example. think I if Hawaii,

for or unfold, I that's which this down again they've Japanese, or Park, They Our we been loyal and to our Hawaii running much than They for plus to recovery a probably stay We'll going in close expect all-time X% vis-à-vis will move benefit up Hilton XX% Waikoloa visitation, in think represent that. of peers at spend EBITDA. been us. continues are longer. We in at Village to be also compared be believe XXXX an of But this that historically They out our year many our approach more. larger high of as to to real have high all-time certainly to most minus. one numbers RevPAR XX% probably expect our customers. we that around X%

we So there. tremendous upside see

across assets. to of we that the that gap us we think the Asia. those beginning each whom potential for high-single-digits, to back. you begin New the in probably coming we about as that As growth big to Chicago, We're is open, Again, lockdowns areas forward. low-double-digit to as San and start really come York, those see XX% the out real of probably move extent see subside all XX%. Obviously, see to historically of Francisco, were And we double-digit to

for Okay. the Thank update. you

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

Hi. Good morning.

Anthony. morning, Good

a That Good morning, REIT. sales. at good was well Tom. valuations. to on year-to-date largely said Question was Obviously, the asset assets you selling did cash-rich one

The other a with one to was a multifamily. buyer

the So see you bit drop as rates buyer valuations, more tougher the year, price, is could given leverage? a achieving see at the just you you pool more remainder do in look guess, to getting time or of expect and higher I to same success do a this seeing

question, if just assets, It's great for including back up Anthony. since $X Look, now, Yes. about think we've and you a nearly XX spin the billion. XX international sold

As know, to two of no We there in middle sold virtually when the South in Africa many pandemic, UK. the complicated San Brazil those assets visibility. the from to very were you was Francisco of

hotel would buyers, still amount Tom hard team to a costs really there's find say our doubt, real doubt, Morey are rising. and side team, on tremendous of continue that the that No the and work I sideline So, his estate. equity investment right no the to interested on in

next liquidity into year. we selling to a down are. market to on here to up laser-focused those continue demonstrated, the the and we've hopefully debt, have sheet XX sure to $XXX hard rates fourth the But between little is debt seller. back more but So, we that we're little the pay balance cautiously into thoughtful. be not defense and in loosen and unreasonable, We're make that's so and to or will prepared our Whether in a a bps assets another cap continuing as build XX up offense, said that portfolio, spreads those We'll would come and in in again, remarks. as we in open certainly demonstrate panic begin we optionality that using we'll to results. expect given are where be strong $XXX continue debt bit million quarter, We'll that on work shape, proceeds to do third, million pivot optimistic the strong whether reinvest not

in understand more more from the focusing quarter, terms expect RevPAR others. And I growth the like shift having September. Thanks mix August, guidance. Labor bookings you stuff good Day maybe of on see the for around one of EBITDA third It in guidance. the impact in We're that. RevPAR growth the decelerate from seems some

So, it regarding I'm you're was curious growth? months what seeing RevPAR

Sean the concern Yeah. part you comments I'll question. We that of regarding let or thank Anthony, have take sense question. the many listeners some latter the for that.

and I being important first the portfolio, our two traditionally this think you quarter it's fourth within that think quarter third portfolio, and the if are note to softer. second the strongest about quarters quarters

softer Third that quarter true holding in is group is as one this of year well. periods the traditionally

so, quarter. in a in points down XX% One XX% shift the think about in room about back We year of we're about, the about we've group. We're third to make if in that the and nights got fourth XXX,XXX the of fourth a quarter. quarter in basis in New is Orleans. example versus transient we're lot half up about the And that XXX down you of for up

timing a So, issue. is seasonality a it really and

it portfolio. appropriate we to but conservative, was this we're, trends so, within historical also recognizing thought the be And

are address turn to bullish careful We said We prepared we certainly your during any third guidance. as it over Sean are sector. wanted provided our very on to And to not questions. lodging we the remarks other softening quarter I'll be as still and seeing

ultimately up we the little what in picking the with kind certainly, to with going runs back around have and has little a really a the group the being opportunity. Tom bit through we quarter the There summer kind thoughts just group the base holidays a huge of and of end, of May on just the half times for in with as the careful September XXXX. week have picking Yeah quarter that first But through not is seeing we said, that demand pickup. of out quarter potential think some and projects that June. the or of count pick level of way typical much Liberty the in good up September so into for compare quarter being the later holidays certainly business in the some saw QX, certainly business in in But you QX good up just we're I of back where there's the

that we So, up well. picks September certainly think

the is So, has a in September I think, July with quarter. little July level certainly the August and on outperform, to I now probably right middle opportunity think an is softer of

you. Thank

Van question from the Point. of next Our comes with line Dijkum Compass Floris

Is your thank Hawaii still guys, Obviously, that And the Maybe XXXX. for more appears my your much that half XX% it question. can taking also detail? next there ramp? occupancy for Hawaii upon in you're year? look how about what of some the expect Hi, more fourth for be touch peak more of quarter to that particular? in short for in relative the to we then quarter, going And year second prospects growth

and Certainly, QX the QX hotels parts of continued through to we be, mean occupancy Hawaii the going been both QX, basis incredible. is see build it's and latter from Hawaii of and I Mean XXX increasing across level, going in points. on certainly

through several only Tom Japan seen XX% It's see of I that about certainly, certainly strong. certainly international major levels. the be quoted kind plus we mean, as think XXXX at months. continues demand. I So is its traditionally the to a to markets on things recently, going source one of of continues rate it's course as pleased talked XXXX, as single rate, of -- our of to as we've it only to And next the We some very still us relative side certainly to for improve growing stay digits kind to low big think the high of to double-digits how --

just forward. much think we business. recovering just to or or going able the back domestic into Hawaii, consumers certainly on without Japanese RevPAR profitability efforts of Again, to So much it's as business those of been incredible tailwind with for pretty levels some the going we've just -- that. an We've XXXX be us alone approaching come achieve domestic margin done pretty

Hawaii I to certainly expect So next think year. going certainly for big a be us tailwind into

of down my follow-up terms presumably, back sales start look additional the to stock before some maybe And for you'll road? more in buybacks buy asset you

-- that we have portfolio best Yes. back There's allocation or the look, -- we've us highest back a projects into capital made from it would for ROI investing either obviously standpoint and be buying clear stock. this use through

to a $XXX authorization current have We million. up

As million the earlier will of asset sales to million we on focus said reduce additional $XXX leverage. we to $XXX

obviously the make that market be we'll term the including taking on And selling near But and continues as proceeds the paying Sean debt CMBS We'll best to continue remarks. extent optionality. assured conditions San then addressing the to we the Francisco So non-core, well. those that table, that buyback mentioned watch and his have options during sure those in dislocation that really are revolver we carefully. focused all down -- we the on

Thanks, Tom.

you. Thank

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

morning. Good guys. Hey,

we maybe little group. can So a drill on down bit

pick And because anything which you up little in you've groups? had any the second rates higher for people data is lot encouraging. even or mentioned points not the not that? associations bit of seeing But you is are pushing the half the two XXXX. difference a are a quarter higher on you the maybe Are back size know the like I meet for gave also XX% that's quarter surprised XX%, and And Tom years. think out for of for you question I in

Yes. as second is saw certainly It's had Obviously, quarter We shorter. out what in the the out I of same we booking believe look are that second are And great first the trends strong. quarter windows question. where we that pretty look next year we XX%, seeing a of year that we of next to see the we XXXX and box at at kind XX%, obviously levels. are

quarter as that think continue in doubt up San some like we No to we office get, Francisco get even second to where think, in companies city-wide. doubt to continue I I seeing the around No economic return back increases accelerate, XX%. is on more to expect visibility climate. in as markets to you're

Boston growing, growing. are D.C. in growing, city-wides So Francisco certainly San Orlando growing, and is city-wides obviously in Chicago

So But to all really we're getting certainly a what help. side companies expect Chris some they certainly self-contained, that will big that continue of but for through we we call forward. those the lot we where to that of corporate the have association, of through seeing accelerate, as look

That's Thanks, allocation, capital helpful. on, lot right? a on buybacks the Tom. sense. then just Okay. make And of paper On

of those you've been accretively, selling seem market asset, assets most sold You've assets table that the on a super sold have always tanker – to doesn't reward because fairly unfortunately. What's the small. is something that's

EBITDA given for Is a think you're your make table multiple. You really you the that sell a that even strong where can on tanker help? Does sense super of it currently? at do level

of mind another the all Keep options. open options are debt for asset as have more they complicated basis. in some question. Chris, to do. it Certainly, that sales big Getting one Yeah. rest is low said, tax all than those little a table. we are we're assured, of on the But we've a trying fair to deals

We at are many. looking

going to gap. are We valuation close this

of But bottom to also the really We we are on don't think like market. be laser-focused the it's assets selling that at it. prudent

the seen. we thoughtful I And accretive, very the well all the did be about Francisco that almost want then some have careful well. all but other you've and got we certainly been and so presence theme again, – markets Look has of think if get of going the guiding done move attractive a and that pandemic rightsizing But accretive. to to as we've certainly have of certainly we're the we evidence middle already. seeing the begin play certainly the in capital pricing. – and time that, growth that see believe and And We a portfolio to at tailwind legs the you a that. Look San asset urban not be sales forward principle. at So allocating still can asset as sales in as all as we we we we're that to over that

Got Thanks, Tom. helpful. That's Okay. it.

comes proceed line Our Please with the Dori from Kesten next your Fargo. of Wells with question question.

Good Thanks. morning.

Dori. Hey,

various XXXX the about maturities? the talk and you Can on table address your to options XXXX

Sure.

So as nothing really we view the on there's XXXX meaningful.

that hand. of mortgages So there will that out are a cash small to on with couple there's look address

approaching X.X we've $X.X we've is with – got Half billion of of As that noted, cash. the liquidity.

just we'll So, over as months. to those they XX take out mature next the look

On ones, of end the a kind We'll the to our do certainly standing be our revolver with we of year, that the and One, few we're options. that. have exploring addressing certainly towards banks. obviously time different bigger

relationships with and of conversations, out We them relations have great long-standing thinking timing to coming them, with the of be it. already

that, again, on And get so we'll that weighing Francisco, recast we'll we're options through to that address work our and keep look intact. confident then and that. And ultimately, liquidity San

unencumbered assets big-sized assets. have including large-sized We

well. have hand to those kind the of utilize along high-yield on markets potentially as we've And of with access past a some And so, take we've as the that out in which CMBS. looked obviously, the we to cash demonstrated mortgage to on

we'll So, the us look proceed and opportunistically few the over best accordingly. find for to months option next

Okay. Thanks.

Yes.

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

everyone. Hey, good morning

Good morning Neil.

today. time for Hey, thanks

XXXX hotels, up the Just fair two Part believe and CMBS on I amount of collateralizing at Obviously, CapEx. the Square. Dori's The XX Union least or the both a XX question. following biggest late in that -- Park of I think your means assets

If obviously, probably and sales few facing. guess has that you private more Francisco, -- a public take a like maybe disconnect curious markets, growth trying that those to Just a of obviously, between buyback mentioned valuations. larger you're around could a expedite assets a help reallocation deleveraging and issues asset a years more you that. overlaying favor/higher San lot In market again difficult at for to or in on the sales resolve, a all I or refinancing will

sure make -- question what appropriately. question selling heard understand commentary I Neil, before I your to I on the the it, want is

Yes.

tougher there's be Sorry. refinancing. -- Yes a environment -- the it's it would with a yes for all just

that needs amount of some that that CapEx. You collateralizing fits the fair just are mentioned of a

So, plan an do or you selling could to? option,

Look whether We end are of assets as mentioned are table. those of as sell are Sean larger XXXX. prepared that joint CMBS or times, that venture. it's options on the all to mind some at said the are assets crossed -- matures we've the certainly two in we many Keep

times. happier three back how the of We not we panicked. think given pandemic maturities. pushed when worst had XX% not the the bank Park back think in We could of did all deals. of earned are debt. been maturities. a paid at We I number Again with We've of fees bond out have the to worst we Everyone and executed

So, $X.X we've got billion.

difficult would execution of of that now have evidence optionality. lagging, certainly be Francisco, a what in given carefully six We months. trajectory for is we are watch sell theory, publicly near-term San options the very seeing three markets right debt that have we'll the are both We as think are said a or one believe getting certainly the lot a There in choppy assets in could is albeit coming we very back to yes, available. to market. and think and We again number debt we're and that that

peer et trends larger recover booking it probably and think favorable it cetera. more kind The -- I of BT. other traveler, is mentioned group that bit a like then going a But one to who is has the of obviously business like XXXX. a made of bit it And ahead although was go, group reported, seem you our to then seems Okay. recently commentary

report Obviously, expect your understand portfolios think as et both are but and the dynamic curious in to on cetera? same, to some use becoming corporate there. way a obviously I the new the and lag the home as persists that group? you group group a convene side Do work will up wind you And from the focused. Just groups BT people do segment view maybe -- on hotels actually recovery

doubt complicated question. to and going compare to believe accelerate product Obviously, size. that it's across No is their terms that because portfolios have are it to being we'll time, got celebration, for need companies a Listen portfolios hybrid people the all have continue that or training, a the for of smaller C-suite groups, hard together remotely group that now people in it's distribution, we with given hear different fact to leaders get working the to that people people need spread from frequently. together We activities, more around cultural bring groups. for larger people

very But with is going And that We and of bigger begin when companies accelerate. is that's we evidence I to to you well-positioned that. some going through to that agree that get we be more does accelerate? think So thesis. on issue The get the for think as we how see Park certainly and economic certainly as side, small think in we visibility get groups. the

I that working -- on ago to a historically. incremental the remotely with having C-suite the now that New transient. couple now again Florida. make business He's he thing said leader business of I months talking didn't think York XX office in home was to he the applies And I have make who see back as to same is transient. a for trips

grow think extra And in I continue reasons. get to or stay I two for personal that elongated that. and start this and talk an going concept take you'll doing be out that myself think, continue about see part -- to found leisure to well. So as of people we segment day business for I to within traveling strong may where both are travel

forward. that good demand is the the think really I as going news is to for we continue So to industry overall healthy move be

markets hard with backdrop material our continued imagine that to when going happening what's you portfolio supply you muted. have rising about particularly is we're us and the move the And as pricing got supply sector. provide forward. think that for of benefit some us in and of across going that's we benefit to a impact power given And see be we cost. inflation It's -- the I to lowest that a in to we've think think development going one also of you're

Thanks. Appreciate the answer.

you. Thank Yes.

Our Evercore line question your Pfennigwerth Please with with question. from ISI. of next the comes Duane proceed

Thanks taking questions. Hey. my for

You’re the welcome to industry.

it. Appreciate

to you And person. look in forward meet

to Same here. be here. Excited

a premium? And what opportunity do relative So not the where market a do RevPAR versus peers? level. realized to markets you can think biggest But you generalize you sure if you see

Sean come in let would if and play. ponder for Park you Park, that and it both I The think the a group back, say, terms I recovery for I'd first and of question, this answer a -- in guess I'll it's case about will minute urban way. you When

I been markets would in many think didn't at some be candidly, both that all thought XXXX, XXXX. recover As the you would urban we've think, they'd about and and group thought that not -- and think it some

XX% based urban see can to growing on quarter just in we accelerate. think we continue from -- with Those growing to growing XX%. second revenues group XX% saw what occupancy first to quarter I are ADR going

that think our see portfolio that a as I So across broad tailwind. we

I the the fact city that in urban the we many and back. think coming international are of on anchored international demand, given centers is

see $XX begins as this We As that to it beyond million $XX move million approaching $XX the COVID, year, continuing, phase. I year. $XX inbound to was I million the XXXX, world last as get million we endemic in said think

that that -- a side. parabolic and Village. as seen Hilton tailwind. significant many growth just see our see leisure So Hawaiian as We a of huge have on peers the we

approach been three there don't that of Again, of XX% and We XX all-time been coming consistently our high for they there. to haven't it nearly historically haven't going still profitability years. have visitors close seen have we're to years an north we for and

of we question. for let the on as hopefully again, tailwind your up just pick your question from we a see But XXXX XXXX, look as, beyond. answers that that I out and concept So us and three, name it huge into that Sean I'll part A

tough kind kind of it's I but market, imagine a also it's in too. mean, of get it the And you is Yes. as through. asset to

So a we be it's in with but to total the those. spend obviously spend more of some have the where you're larger there, else hotels some the maybe a so exercise RevPAR activity in premium of everything ancillary not group drive looking much of and RevPAR exercise

that our about space we're that asset meeting ancillary as a of So certainly, well to Creek investment. of and market. there's in competitive assets expanding good revenue where looking point, through in And case Key lot Bonnet looking example, talk capture a for West, at lot the

RevPARs we those rates think same leaner and drive conversions have good from ultimately made base kind at drive We operating group of profitability. little can and to still model costs. should have We've Waldorf to a we hotels for of assets, ultimately that more a have a the that Curio the but types

think profitability think about So the to there's well story a it's RevPAR on kind story. RevPAR you where a complicated as focus of total answer -- a as just and

that then, conditions pivoting for That's just would that offense, like? my what helpful. shape follow-up, And support when to What would look take?

XX continuing assets, I think execute pricing time. its but clearly, lofty, portfolios, a to you'll that little And upper us Nashville. see supply into of parts in Southeast top upscale getting whether over lot there's -- its and I certainly think, clearly, single that a the something Texas Florida, portfolio its destinations. and balance and is out is the Its resort of And luxury into clearly premium in Southwest, markets the Phoenix,

Thank you.

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

for wanted guidance to QX. I return just the Great. to RevPAR Thanks.

-- ask of of that in to kind bit Just QX the a your XXXX period take so out from to the little just understand comments I would seasonality rate about When the at to QX. we June. looking sequentially comparing recovery look

you group transient said than -- about allow XXXX, better not and to what -- relative in traveler? recovery it's the show would tougher in seen with now QX is Given to a quarter outperforming sensitivity the you've quarter what understand so to conservative more as that feels right to QX, trying being crude a in actually being the getting or I it and wouldn't lower you Are returning resort and as just be are because the rates the fact guess leisure segment comps strong of mix like in to -- leisure leisure strength just why you're I'm calling Thanks. July. for or quarter rate June there that

guide line of our I'd top thing in guidance is say one our RevPAR. Ultimately Robin. Thanks

improving We hundred that levels. finished or showing a guiding upon to the to in down. quarter are We're of ultimately area couple We improvement ultimately basis XXXX at the XX% be so. second by points

are… think we I So

-- of to from Relative be Sorry those June in to months the there -- both the down July June right? terms being just and like and just about sequentially. X% July, of

Yeah. where per travel ultimately you -- have really I that And don't while through se of you business that think the mixed where that's is ton which again a thing have August, month.

back off -- going midway month. a have school falling leisure also the going you actually people because kind vacation coming back, are of to to because were You back through

off we July in think some about have a way you a of September of to depression the yeah August we to quarter, a build opportunity. ultimately be bit relative of key in in impact picked in certainly Obviously, conservative think travel think I think stuff. little as back in necessarily do to a in little a vacations for and So coming approach up to transient to equate the have where business as buildup on back QX, were The and as we July we again we the bit trying group, people we driven think could the quarter taking as the think the about And in and September. are quarter well travel we was won't quarter us and for again like business. of holiday more some it by ultimately in come

up thought if price like And given just so I'm year-over-year company but being hotel year-over-year. XXXX leisure RevPAR you about it on conservative, versus another just you actually down -- July also traveler your down curious does being you're sensitive still, what more is sound talked the but being today,

the but you that's seem traveler lately, curious sensitive if doesn't been more historically. maybe? to It are just not I'm that like leisure changing rate -- do have typically return like you is sensing what feel they So or

a travel year. last didn't of have think I one lot recognize, mean, options to I thing also people

lot market to going they’re So get wouldn't that certainly a demand. of

think to season. places kind have other Southeast hurricane you Florida where even So you in some Orleans about New of

heat. and think a obviously you've -- seen I lot of So

go think of have year maybe seen to you've people alternatives So this I elsewhere. lot a

in on pressure And so of bit little you the have demand markets. some a of those

elevated. year-over-year is was from obviously which very a So

but have year-to-year So a people I I think strong little bit remain options a from to lot ultimately you where didn't they relative comparison of of see a to think moderation. go XXXX very and

Thanks much. great. Okay, very

of proceed question Please question. Green Chris Darling comes line from with Street. the with Our next your

Good Thanks. morning.

morning, Good Chris.

Good morning.

as a Going And driving margin back for give that Village some that result? on second you detail expectation property? what's to touch for second, your can on Maybe to looking the quarter the what's print? margin then forward,

had Village of labor negotiations kind Hilton there The Hawaiian Yeah. we an accrual as through there. work

there the accruals this margins ultimately And so, released quarter. were that ultimately benefited that was,

Village respects. too we've Going seen as story that's and levels up the both certainly It's we XXXX look and of of forward, in certainly much oxy I Hawaiian initiatives million. been at much caught and the we've been Because somewhat at low Hilton think ADR a kind our very it for levels labor talked some look especially good variation it. us ultimately was line one where with about in that somewhat proxy pretty a achieve they've for without to elevated very between a RevPAR $XX good along very

and to without pretty XXXX. look that to Hawaiian on relative XXXX. Village nights at for again We're at I for some XXX, looking of of the adjusted And the improvement top what relative the line. range about kind was on -- levels room margin it's XXXX somewhere look basis so XXX group just in the at discussed of that's half booked for QX thinking point And we there, when much with par

So as we out that compare banquet of higher XXXX. business, and catering margin we're to some missing

I certainly the $XXX margin improvement beyond million some better mentioned. So and there's million think I $XXX

Okay. helpful. That's

and that of management was et And I other the admin entire Village the reimagining cetera. Hilton Chris X,XXX is in I'd Sean laser example the Sean across thing focused what taking said cost million more a talking great are crystal think been about. we clear half FTEs portfolio what that to than have are $XX to we model on add Hey is, operating out

to reduce been XX%. able admin additional I XX%, and there think management we've some of the

to our business between that expect about also So fully the we operators differently. of continue. work asset the example our and that's that's to another good going to continue really team think management And

we the Although, be us as going to one-time said, in continue an did just XXXX Sean and have out to is Hilton for Village performer but benefit beyond. Hawaiian

necessarily And see as level, flight portfolio, about this or Got that then, of been occupancy you do recovery bit all airlines has much of the facing little it. some an to challenges capacity, of just have your impact? step a in that higher had Thanks. around think risk at when not a the back and you the

many variables US. lot and the so a we right probably through are just People travel probably other compensate are But doing these to It them of taking mean, to, seeing in think about have of weeks. or work an now. to impact own much help their Hawaii of plenty you think, we bookings mean ease I I or had Heathrow no when two little more not today. unimaginable to I what's traffic frustration. capacity. for hasn't get there. an in seeing There's you think and talented as deciding we have out. certainly historically. live are desired shortage other right happening I leadership an to We teams take will no think those times airlift. and now. about it And that believe rightsize things about destinations. businesses, as businesses those unprecedented in We're and sorted are have it to their There's Clearly, drive

didn't Sean lot pointed of As a options. out, have lot a people of

despite up. have fact parts anchor US throughout despite we we're Japanese, customer opening getting Hawaii the plenty the and where But world. and and other the are options don't the the visitation in even that that Some of of

margin a dislocated on -- happen seen some ensure that fuel I'd stranded. as Boston certainly I And day for to there. or who obviously airport top talk meet on to anecdotally, that dislocation say in seeing our typically we're the might unfortunately come benefit that, people in get of would to pickup, properties being add from to Seattle before going has I the as Airport, Logan, finding are Hilton are they're certainly

of to that little little actually staying trip. a night a versus of cautious be kind day doing just a at more seeing bit benefit of people we're and So,

right. All Thank you.

comes Our with the of next question Jay line Please proceed from your Kornreich question. SMBC. with

up XXXX of get in a providing as maybe a mild you an be below that? event recession a you is the I it at demand potentially curious flip the BT And business amount has holding in see better How occupancy in there than think your as and to faring Good transient know you remain Thanks. on historically thoughts recession? morning. see peak do accelerating. that levels would side, Do only to would delta you that significantly demand leisure XXXX obviously, possibly still whereas buffer operating levels, recession? how is

customers certainly There's connect need it's withstand I business with out to a transient get question. underway. mean we continue would obviously, recovery a still -- and demand women the anecdotally, of and peers. business would is of would I men great and to out believe pent-up because their that still to teams leaders, send lot

would in would that where of we there's So, in be sort expect that an of theory, some really there pullback are less if given impact, that we cycle.

have leisure gap? that's business of do you impact transient, think different I for there's demand, buffer And on understand occupancy a doesn't that sure maybe

we the I pent -- everybody mean benefiting the A And I think has hybrid. don't that this a the or demand. leisure case concept people of mean, on And you elevated all footprint remotely I lot a because Yes. to travel can legs. I I certainly up trees a working -- sky. stronger for bleeds travel with can grow but make of side. from it that make of we're think leisure case think or that

have demand But it every their of to move that's this achievable, and certainly we forward. are I Now, think fully going and as pandemic growth come I think does benefit. getting RevPAR altered, out in some are XX% of patterns be those at don't legs year? we perhaps

not it. external provide kind then to flexibility that on more being what waiver exited up you, What Got what subject maybe that does do more the i.e. growth just internally? or on or you've of side now covenant any by you? opportunities the exiting, open does one for And

relief put of flexibility acquisition honestly Quite, the a buckets lots into and lot everything with covered we activity, for of else.

I make it for free quite huge doesn't doesn't amounts of So honestly, up really it would us. or say flexibility

flexible kind think for early already, I thanks covering us. for within banks it of period being the existed to

But kind leverage time think ultimately, have coverage. business elevated of targets, a and flexibility those little ramp usual. it's of still lot bit as build still dramatic late as cushion we the to anything, back. because flexibility We see booked of we I So certainly a kind interest I And as period. don't during just portfolio of under there's there, the that down in we over have think

Got so it. much. Thanks

you. Thank

question next with from your proceed line of Jefferies. Katz comes our with And the question David Please

Thanks Hi. taking my Afternoon. for question.

a productivity Can balancing of Just that around, the some color to discussed around, the of There's kind $XXX the with a getting three or of valuation depth lot little discussion all million you’ll. of more just sales asset things about us in you philosophy been your $XXX moment sensitivity sold. in the we've or million. give

gauge -- to I'm of aggressiveness assertiveness your, sort trying And guess I meter. or

joint XX more last complicated billion, Sunstone. the of venture that international with Netherlands of We've first joint $X assets, incredibly half Germany, Dublin, I it would South three years the Africa the hair from have. ventures, our to lot than don't active a know guess UK, Brazil, them for four we with answer I David, has over XX way, anybody I been sold

So to some self-operating. assets small that were we

I the price them to to to been continue get need certainly $XXX probably. quality the we've portfolio on private much But Could billion asset we want see liquidity. again We don't are and as going be where going to There companies sale, situation rates cap noncore So accretive over We shareholders, the think it. be We're panic. this I that's it. reshape best just XX of widen to environment on markets see demonstrated. there's to working again want that we little constantly think compressed and effort are hard there bit, in think don't this accelerate or have and for where -- I we billion. to continue. improve we debt with at a so are to the there we're want and isn't -- equity side, That have fire the $X depending do a an

they've that So money work. to got put to

buyer, valuation accelerate. closing And portfolio assets is are to effort we're But our objective in back so that no and is that to the for gap. find the this selling. right deleveraging, going And mistake, reinvesting only the on make laser-focused we

That’s perfect. very Thank much. you

you. Thank

have we reached And of call session. I'll Tom turn the end for over the remarks. question-and-answer now Baltimore, closing the to

with months. summer hope you the in be to has forward the remainder a today. and great everybody, to Great you seeing I coming and of look weeks

may And you today's your conference, Thank you time. your for this participation. this concludes lines disconnect and at