Park Hotels & Resorts (PK) 3 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, greetings and welcome to the Park Hotels & Resorts Inc.

Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure Strategy. your my Senior Ian now Corporate VP, is to host, introduce Weissman, It ahead, go Please sir.

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

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

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

that recent identify important pro results those with XX-K by also are Park to which comparisons Please reports periods and SEC, from forward-looking XX-Q, documents year on forma statements. the specifically cause on filed Note the a could actual differ Form in most to refer all risk prior basis. to that factors contained the

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

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

guidance this update Chief and and quarter. This priorities quarter results, strategic and review and Tom Sean quarter morning, balance on provide for on third Baltimore, provide our outline our the our sheet additional Dell'Orto, Officer of Park's will an fourth of Executive a performance, balance will Officer year. Chairman an Chief liquidity, of color for an Park's the Financial third outlook

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

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

and across portfolio to welcome, I all Thank performance we where quarter, another report we you, demand as saw segments. our delivered across solid pleased strength strong am Ian, everyone.

broad-based which translated quarter, in momentum demand than strong healthy business in and into a to as Labor Day sheets, transient macro their labor we group improvements not post into in with office international quarter steady business third and continued the quarter consumer demand uncertainty, demand fundamentals business corporate continued do beyond. especially the market and despite our to and transient positive fourth see headline return growth balance Lodging over group, witnessed the stronger weakness trends increasing we some for supported risk by currently and and expected

pleased in proceeds million, non-core Also including markets, to deals to quarter, for quarter. remain expanded $XXX asset amount to last total that in sales the real within excess taking sales, well over of net closed hotel million of and million, we interest in our the recycling on asset $XX laser-focused recent interest estate pending million high, target closed three our despite sales debt and from in the And year we our seven expect additional $XXX dispositions hotels. of year-to-date would I'm for discussed execute to remains approximately these priorities, our choppiness net on of potential our total and bring the for we July capital on $XXX non-core proceeds and report since approximately

measures labor the costs year uncertain over pacing to Once below benefit to operations to closed, implemented optionality and the pivot the between $X for would two increases levels labor give will reduction an billion, during us offense, we continue our which standpoint, translating versus XXXX. in expected into we liquidity believe total position despite these and defense wage rates times. exceed from years, cost economic with full an XX% last XXXX efficiency we XXXX From the both benefits,

meaningful three $XX the confident nearly improvement basis leading to over XXX prior points are we gains the million before, last to noted have of achieved of portfolio margin peak are levels. savings, we that As as returns the expense permanent, years

the We value-enhancing to value our portfolio on through pipeline. ROI of our unlocking embedded also focus continue

$XXX At includes open feedback been stand-alone by Hilton, Astoria initial XXXX. million expansion enthusiastic. be are from ready feet month, meeting Bonnet And XX,XXX and next Creek, which meeting expected the Waldorf planners meeting scheduled two space, ballroom space is our Signia is new to for square at ballrooms. the of multifunctional has to adding The use early at we

includes million ballroom the all space, guest rooms, incremental to early a expected by to to the to $XX addition be complex, all In course, plan renovation signature our on updates an public XXXX. work we completed and which invest all of comprehensive golf with expansion, X,XXX

is the of complex's Overall, solidify expected investment this help the best in Orlando. one to considerable position as

in In new ocean-front which restaurant. we resort have of the of of Marina include project, the $XX spaces, a rooms addition Key and Casa renovation million initiated guest and addition, a plans will public a West, the full-scale transformation for

XXXX, season. start travel holiday to for expect of in We December next with peak construction a of date the in early year, targeted time completion May

excited for We transformative ROI this resort. are incredibly iconic project about the

to Turning results. quarterly our

by quarter with Third be quarter our forma Performance XX% rates XX% finishing XX% hotels the resort led RevPAR XXXX to XXXX to at recovered levels. as of strong during having by above nearly increased RevPAR XXXX pro XX%. third continues exceeded year-over-year leisure levels trends,

XX% was Occupancy within levels. of XXXX

mid-XXs, and Village increase quarter Hilton achieve in all-time Hawaiian an ADR a July an on average Hawaii of to RevPAR EBITDA. XX% near-record over of and occupancies July hotels, third recorded average for Our XXXX, $XXX the August reaching with in the monthly two pace and the high of an

XX% hotel's historically demand has outstanding lack XX% international Japan. represented with the which despite this travelers of from This international coming occurred performance of the demand nearly inbound historically has of

is providing recent guests XXXX finally Japanese travel portfolio. expected West the to the return the easing Coast of As ahead restrictions drive to our and look a in for of Hawaii tailwind we to welcome Japan hotels

XX%. the At witness hotels with XXX to in at over our quarter continue to increasing quarter nearly sequentially urban basis improvements demand second occupancy material we points the end

by average occupancy in post into translated XX% markets portfolio approximately particularly in strong of urban return driven major witnessed office September. Our which Labor trends Day performance to

to negotiated revenue last XX% for continued improve the exclusively the driven occupancy levels Corporate almost to XXXX quarter, portfolio to increasing gains. compared XX% quarter, across by of

We especially rate robust XX% as XXXX New while from been impressed the up RevPAR quarter surged exceeding to time nearly above the during basis X% XX% occupancies same taking have the the quarter second finished XX% recovery York of points levels September for place period. occupancy with and XXX in XXXX ahead over over was with

pace to on from now fourth continue We XX% reported expect up of pickup XX% basis the books large by the in group transient pro months momentum a forma in two the quarter driven QX part into business on is while levels a ago. XXXX healthy positive

In with continues outlook. an Francisco to recovery San the take shape improving

in occupancy success city improved the signaled part sequentially the the Dreamforce a quarter for to event pandemic. attendees during start and first XX% of to event approximately since points basis of Third driven nearly the major the month as September citywide major with XX,XXX nearly X,XXX viewed the the

be That below said, the a rate to resulted challenged, to part due mix decline to in which trending in XX% XXXX. third shift XXXX of RevPAR continues XX% quarter

point Francisco just would levels Excluding our for third XXX XXXX drag RevPAR basis overall shy on our been X% in for quarter accounting performance. four of have consolidated a portfolio assets San

XX% quarter to is for narrow with GAAP outlook of the to Looking XXXX the December. improve continues Francisco RevPAR third levels to fourth San quarter our to expected by forecasted upper-XXs, reach occupancy beyond XXXX while the

XX% from improvement year. RevPAR vast this recorded to January A decline of XXXX the in

nights city Looking for XXX,XXX of increase San next to is XXXX, benefit much the close Francisco XXXX. stronger forecasted for to calendar from room group outlook the encouraging, or set a XX% year, a to convention over

segment, XX% continue group illustrated improvement This group September conversion ADR XXX% closely to Labor higher. across ahead but trends was XXXX the bookings Day positive we group post with across of period stronger in the rates to more XXXX lead volume at for the in projected especially by the incremental witness portfolio, group XXXX portfolio. pickup Looking evident same and for coming with be

trends Generally group improve demand the leads higher-rated alone. the more from half the also third with quarter this for for coming million heavily bookings continued for to than is XXXX. coming almost Group pickup the September segment in bookings periods future mix with quarter accounting fourth new speaking, during increasing of $XX by demand volume in two-thirds definite group corporate historic new in double more with of

QX at XXXX, XXXX, over a definite increase bookings room pace of with June XX% since sits of since currently by points group the pickup nights XXX XX,XXX basis quarter. second

year. by times same For over the sequentially definite for time increased million the $X.X nearly year, XX% bookings last the to over amount three

improve to Looking Seattle Francisco, continue San XXXX levels. calendars with of Chicago, ahead showing and Honolulu, XXXX, Denver, to in most all growth Diego, ahead San Boston, citywide markets

year next we with for to the what we revenue reported $XX during result, a group bookings XXXX meaningful Currently XXX group million of quarter. hotels points of have basis witnessed XXXX forward quarter. XXXX pickup levels over than into second higher group As in for or the increased XX% during pace adding a

to year. over of the the on very Looking optimistic balance track. that remain remains We recovery this

should recycling demand, witness pipeline benefit growth group all which reimagined few over the broader outsized to and and help of our that our in from to strong to the and trends we continue across continue transient ROI trends capital improving support next portfolio expect to We will our growth efforts, and years. portfolio operating earnings operating from model, favor believe demand business benefit

with will an provide to some to on update our quarter. turn and like for balance And along additional Sean color guidance now, I'd the over operations the fourth sheet on who call

line pro below X% to pleased forma sequentially which in the the quarter in to Thanks quarter the the Pro improving to quarter forma into continuing period results, for continue and across lead basis with third leisure points XXXX. was pro $XXX XX.X% to markets, forma $XXX, we in XXXX. demand we as with improvements trend with with quarter expect ongoing Tom. for or the by widespread were continues driven urban rates Overall, third and levels, performance accelerate improvements occupancy our are XXXX to by XX same along expectations RevPAR improve throughout above X.X% fourth

point results averaging look stands September, daily October rate be for month XXX $XXX while the strong, the or $XXX is than with approximately to Looking of XX% XX%, average XXXX preliminary improvement fourth at XXXX. month or projected preliminary the in over ahead X% approximately October during RevPAR nearly a below to Overall, occupancy quarter, levels. above less basis sequential

RevPAR above is Francisco, to Although, X.X% exclude were October XXXX. if San you

the million, hotel Total portfolio. XXX of margin drove hotel where on while pro forma which relatively portfolio costs, resulting third adjusted Margins adjusted our basis Francisco, forma XX%. drag a demand $XXX EBITDA the was were quarter, impacted fixed in in during million by higher hotel were nearly San for have forma softness revenues hotels the pro pro EBITDA $XXX negatively point

adjusted and EBITDA disruption QX Fiona by $X RevPAR from and to by damage less basis operations than Hurricanes impacted with Finally, minimal were impacted points million. Ian, XX and

Our to after team's hotel to employees and passed. efforts protect allowed hurricane assets, the our and storms quickly guests', preparedness safely operations resume had

sheet. Turning to balance the

enhancements We liquidity have flexibility. to financial continued and make meaningful to

our liquidity $XXX As following hand on Tom $X billion, as to of the and billion noted million pending our revolver billion expect liquidity was quarter than cash earlier, asset our available exceed on we of more total sales. $X approximately end of and including closing $X.X

the Net since of lower debt at sits year. $X.X billion the $XXX million nearly beginning

several We $XXX are which while expect address next of revolver, to matures late our extend we working loan, currently within CMBS million banking our the opportunities finalize next evaluating to with partners couple which year. our weeks, to

million year, totaling on unsecured structure. have we move towards next to small off coming hand, we just to maturities, expect with as and near-term two to available capital balances we respect cash additional mortgage With $XXX pay continue more due over those a loans

Turning to guidance.

of establishing XXXX roughly guidance the are of we or midpoint. levels RevPAR XX% $XXX to QX, For at $XXX

relative event. While New negatively XXX,XXX basis to this driven key the especially participated RevPAR we comparison Boston XXXX, held tough urban approximately improving QX the in Orleans, the several being to a when citywide we by September San by continue of York, impact Francisco XXX in performance year attendees partially versus over points, timing with of of across Dreamforce October XXXX and markets, expect witness trends New will

establishing million, adjusted $XXX EBITDA between quarter. AFFO to translating For line, and $X.XX we the guidance share the bottom $XXX $X.XX for million and are between per

XX% insurance Irma of Bay XXXX hotel Hurricanes margins XXXX XXX received that benefited that from a for XX% points million the basis Maria. adjusted impacted below While Key margins and are interruption Note to or business we hotels West of QX however $XX range EBITDA expected our proceeds quarter and fall within at midpoint. Hilton to by

$X closed Ian. Excluding million considers those interruption to contributed recently be gap $X fourth Also payments QX asset in XXXX related QX versus guidance our quarter basis earnings margin the the between note to and that XXXX Hurricane which would of our sales approximately approximately points. XXX business million quarterly

for wanted our Finally additional guidance quarter dividend. to provide I fourth

While between currently assets relates we remarks. it $X.XX operations. relates per range $X.XX $X.XX from per sold remains our and per approval, of share share distributions to to year. $X.XX This subject which concludes the expect Board this to The $X.XX to approximately dividend share gains prepared from remaining to

for We please? the Operator Instructions] Q&A. will the first [Operator now we question open line have can

Our question Instructions] first from Please of from [Operator Smedes line is ahead. the Citi. go Rose

thanks. I just… Hi,

Hi, Smedes.

morning. Good

about clients bit and just You the mentioned group levels bit wondering a or window? at a the talk on of is running of that a about little you're a bit is sequential corporate hearing 'XX what booking that bookings maybe could XXXX I that rooms then improvement. the a for little from was books XX% forward are kind more little of about revenue just number? you And

question Smedes. I you're well. hope Great

during about to Florida As 'XX across York, Chicago, XXX that points It's so all of pace about continue to San portfolio show the we represents some obviously performance. you remarks for group increase, really markets our Hawaii if basis mentioned prepared up Orleans, New the is think New revenue. back strong Francisco, XX.X%. And at

it's So very from encouraging that standpoint.

of now to we rates, corporate that those I are mean X% the used of know terms peers now. as out budgeting to range. this the encouraged X% quarter But group discussions those on that's very some sequentially ongoing would ongoing are an for And I the and improvement. what In we're that continue prepare we expect obviously occurring reasonable. our to certainly accelerate be and numbers have And by But negotiated find move again, obviously into in fully again, certainly into seeing to season. we're we going side. And later XXXX. that's as

the more you You talk the little that's us help or assets? comes debt could due Thanks. of it mentioned, now? And a maybe Okay. And the San how about refinancing then maybe the just of X% versus thinking place on think the in Sean you're bit about cost about year. so next Francisco sort

at as with some few well situation. We're working options Smedes different terms Yes. Sure. looking certainly current market other in and the a of

So, say million you're that's call probably kind over I would it's debt it kind million of we bank, in markets, that, CMBS, anything $XXX look high at financing whether SOFR. of as at the it that $XXX single-digit yields, or call to looking

So, in the that's of kind the ballpark of of kind cost.

and But that of with down to but if I mortgage forward opportunity, see route of mortgage do looking bit looking can as the just situation we're you on unencumbered like again, normalize of And type monitor now. going the maybe more discussed. kind at a well. more pricing I so we'll probably Creek complex what as would bond calm market not a things Clearly, Obviously a with to we an be as the focused pricing think Bone assets, solution. an little continue kind a

Okay. for color. that Thanks

Yes.

Thank you.

Please line from Asad ahead. of from of next question America. Bank go Dany comes Our the

Hey. everybody. Good morning,

morning, Dany. Good

I Tom. have morning, questions. Good couple a

December first through November Maybe RevPAR. think through to how X% QX my expect walk you gave of XXXX. of RevPAR you guide versus -- help you us then, sequentially? is and downtown. know the help So, we October kind us And Can us one just on kind down of just full progress

down a ultimately, I that -- or October Dany. closer without the being drag there We've up Obviously, X% Francisco on call call we'll it XX%. talked on kind mentioned of being is our we should good and to we to it down at we've say through slightly. Again, script certainly X% look --

of see think you December, as through we you think look mid-single-digits a I to improvement and kind quarter. sequential So into down clearly November as the I go the

then one is And margins. my it. other on Got

basis country it's is that the of mix us -- kind kind seasonality? maybe of and just about to there's XXXX of understand bit for Can like So, XXXX, of is on if we of a how little QX. looks versus the recover, you're you XXX QX lower points understand shift cores going the BI to to is help the you much as that going just kind to that how compared shaking kind progress? proceeds of at somewhere look directionally urban in adjust that in of of if much How how if out

Yes.

about As see some of similar XXXX at you XXX a back. think QX as relative flow-through think points to That was better as But XXX. to shift we certainly flow-through, we'll was QX. as mix of shift, bring basis roughly continue down we're in to quarter a kind improving occupancy think I down kind group you --

think where for QX Francisco it's going but the part, most drag we the in I the obviously, well BI as XXXX we CreeBay, given San tough markets a you comp that the about so, good mentioned. QX, for feel And as pretty saw given especially as are

Got you. it. Thank

Thank you.

next Our Please Wells from Kesten of Fargo. go Dori the ahead. comes question line from

Good everyone. Thanks. morning,

Dori. morning, Good

to spend you ROI? Tom. the over you Hey, and on you what would expecting two ROI in on expect are mentioned the next maintenance What years returns prepared projects your And remarks?

nature on we're X% of basis that's Revenue normalized disrupted always that higher is the revenue. was end, on pandemic. one Dori Obviously, starting Generally, given We've the been a point. obviously the of portfolio. during just the about

the in the pipeline in If you about million. another wrapping $XX million Obviously, think talked we right There's Bonnet about up now. we're $XX what's that Creek.

the good of think planning the a envelope, So what's you're would for I a in pipeline. Back few hundred be million.

really Selling in we're progress We are there. making laser good terms priorities. of non-core, focused as said we've

the the at quite same optimistic ROI encouraged to proceeds more particularly coming time delever, and really the reinvest weeks that that. about and continue in our and hear into by back with but to portfolio, You'll projects those using

also reinvesting other course, on But we'll the a buybacks for and of could include certainly into capital obviously, is priority that back And the getting down portfolio. allocation leverage-neutral the look basis. leverage then

few we many the launch. on in We've got and a San planning a So Jose other projects phase in project how now. depending converting that. hundred DoubleTree It's

to we Given the and expansion Creek getting done, are that resort clearly uncertainty, well the committed underway. it's Bonnet

we well. month. are the as Signia will then or XX space reach about public the course renovating And Marina, success next property another the rooms Hilton, golf mentioned, enormous we've course ballroom world-class in And we're as with months the sister also guest the Waldorf there. plus completely And our obviously, Casa minus. open of and the had

that have if Casa Marina renovation least will complete we well. with expect that We better of at the not a as

Okay. into Thanks. digging your two of And markets. larger just

what return know could pending XXXX? next you there kind Given of Honolulu, and result a in in about convention be for of San to for RevPAR year you the calendar Japanese imagine travelers as the hopefully, that Francisco what tailwinds

great around if if I realize as not also Yeah, question. mean it's until headed there's are leaving you Obviously, many many I'm think the energy Park the a year. about out XX I the west was know, and it. in lot a but cautiously Francisco, San think of didn't mean, until I you of Hilton out been here of this mean, May and XXXX. fact about I reopen times we optimistic. end there

probably down nicely. by the beginning RevPAR the ramping both year. year. got the that end up. up RevPAR we XX% those And of is you've the as will ramping inside had said sort of So be quite we down That of of we of XX% at And expect

the high probably complex. the books room there's think $XXX,XXX expected. approximately nights citywides, that with XXX,XXX at already all-time you on really when the nights XXXX of It's coupled about about XX% in room And

pretty with with really With certainly with complex yield expect coupled the -- that that for and us the opportunity group transient. like Having rooms XX% anchored city-wides dramatic market it. our only So XX,XXX of allows there having internal accounts we increase. would a out great clearly a to

there. near you extraordinary, an Japanese more I really about and probably be So significant year, submit nicely think look revenue we is be you certainly Village, When valued -- we're still in traveler lodging. that don't today, we flat figure one if of still about for of sets all have it EBITDA. just Hawaii to where all-time tailwind -- back don't respectfully a it's in to for the RevPAR I Hilton we're have Hawaiian up a would high at/or asset but this expecting an to going RevPAR the assets we're but

we're encouraged very So by we seeing there. are what

year certainly they for historically International been it's have is lot also travel, Japanese international. tracking. of years. stay we're will gone is the more. longer traveler normally been now asset. spend about a three nearly has been domestic in that that about It's Now of XX% this but and And And what other XX%

it in quarter So tailwind. in up Village, will tremendous we the think to to you was the which think if slightly that just end end Hilton about and negative. X% XX% been there's year third increase probably RevPAR we'll XX% the has a but probably Waikoloa Hawaiian I essentially believe year flat

any would the I as today the healthy, -- So certainly in remains expect we RevPAR a is economy obviously double-digit absent assuming what believe changes. we out which economy look significant increase remains

you. Thank Okay.

Thank you.

Thank you.

question next line Barclays. ahead. from Powell of Anthony comes go Please from the Our

Hi, good morning.

Good morning Anthony.

morning Good Tom.

question I is the I on on very margins and left I quickly. you the property? very I maybe a the pre-COVID. there, opportunity the improve know operating the of, are that strongly still topic of think big recovering What's trailing. market York. a discussion revenues coming New that margins to, how back kind Just there of highlighted are that mean, Question was see structure

So we in are now? process that where

look team. I to to a mean, looking time our Anthony. our for We've streamline differently. continue great ways have question with credit meeting we knock been service thinking a the operations. great to working got the it the and group and as partners really a and and to Obviously but beverage And of and spent or is and we've food lot business, management a a business operating room great That's we have significant it's food beverage. drop, limited banquet where of about example more relates asset

managers, collaboration among a as savings anchored well and the that communication, in taking we're the time. all said we've $XX a management of bit in million costs food have sales candidly is forced out companies. taking marketing really jobs The lot eliminated. that the over of brands, and had us better XXXX to that and accelerated assistant been as in And the better and And and out as pandemic beverage become

as we'll So structure continue margin you of occupancy different full to rise, the improvements, see a see clearly what today. than benefit those we operating it's really but have

very We happening what's are encouraged York. by New in

listeners writing coming I was, think off think I I I both think ago markets would remind urban a sort other back York great New through the of, is everyone back, pretty it's six pandemic. and strongly. a that New San and indication year Francisco ago, months and coming York And

you mid-XXs was were we an XXs think, to at to quarter probably in in at XX%. it where were of quarter we're I I about mean the example. low quarter -- QX Obviously the as at be first the we third if the occupancy, low and think second XX% expecting

ramping that's nicely. say I'd So up

New city us to a communicated as And continue the lagging one but really city only competitive though, foothold see as three And the really and there. that is boxes back activated. noted, for advantage been has really having and a in big Francisco reasons certainly a coming of Francisco that gives well we fully the we've on San roaring is store York the San

quite about we move as So we forward. are New York optimistic

for QX. improve And we add expect I to would just things quickly that certainly

QX down XX occupancy, to occupancy to be points expected improving. we with of, closer more and down kind We points saw in XX mentioned Tom QX. As in

we'll certainly So improve getting the the occupancy margins. up

a QX, I slowly we'll But we're XX% gap. think also still look as on still at we have group down revenue.

to got the should normalized up say mix get high group and margins. for what to margins kind teens, to QX more we're I versus got would But kind high middle of for digits or to that, looking get single you So QX. say, of was at get the occupancy to the double-digits I

could be maybe And us Francisco. right that. Thanks business is keep strength there and there reversal seeing a headwinds the on to maybe Can layoff, important announcements that San that any could kind strike or transient year? you BT risk market? of you're of offset maybe in We Twitter now And in of next where is kind seeing for year. there's slowdown how of, market from remind some the whatnot some group next BT

Yes.

I think, a supply convention strong business Francisco San I Anthony transient. the having was a think and obviously strong great leisure if mean following, historically, and I market real you look, having a benefit of constrained,

wouldn't I one-third, clearly So say, one-third. it's one-third,

I in But So don't look you front been have any. data it's if me. historically strong as the market a of

Francisco. kind return particularly I felt was really And to those office. demand. San little And think markets. top more the XXXX, getting sources back tech-side, happening the XXXX three of of to doubt certainly among the through was what's strong certainly as on given back of be in the it No But that fundamentals a will getting convention market

I really wouldn't off know we San before are by mayor and pushing, it. said but I've that lagging. the intermediate over and I stand Francisco that that know others write that's the and so We long-term.

And head monitor we're in to and not continue We study market carefully. the sand. bearing the our

some seeing there We shoots accelerate that want green certainly and and positive XXXX and see in things. to some beyond. are are We out we

Thank you.

Yes.

Thank you.

from Our Pfennigwerth of next question the go Evercore comes ISI. ahead. from Duane Please line

the Hi. Thank you for time.

good Duane, Hey, to talking you.

Hey. Same here, thank you.

the historically, peaks sort line it peak Japanese in overall? seasonality up closely of pretty or traveler, there any does that traveler, On differences are Hawaii of inbound in I the wonder with

Duane, it's question. a great

generations asset. minus. been consistent that into about for look, use XX%, million XX% US XX If million inbound $XX been of particularly longer kind into $X.X market second And And plus of million to coming why you it's million stay more. $X think largest or $X $X Japan, out let's years minus, tend to it's pay they is the about million, kind coming and from or historically, of really you've plus coming got

we consistent. of demand And part it's think don't have clearly seasonality, good, obviously, been dovetails of I But terms that been capacity, on have I it. it In good I got additional know, pretty comes. data whenever really given a whether accommodate But Sean's capacity to nicely. it operators tour the the think it. the

I of Tom little of on think I you Week the spring see in around as normal consistent bit think across generally But vacation kind pretty blip travel said, Golden a Japan. times.

The some ask of some just to is learning be and some the Thanks. service – tends and launch successfully, reason, – I I it think try less seen airlines Hawaii successfully we've it's purchase tends be most go for don't a your the it time time longer to for go Hawaii a lead period to point, time. a of you you longer To weekend, consideration.

in a purchase travel time longer And think about away. expect, as lead so restrictions I decisions we those there's would going

So may it the early – of be travel little to failure a those follow-up too measure or easing My restrictions. success just

Duane, could that just to a I little if unpack bit.

I travel you've point. as it's I north great said easy-to-get-to think a of loyal look a you been a XX on it's out years, really mean, are Japan, got if relative consistent. not basis. patterns those more at consistent I of if But coming

you so will year the been that at look And where shut this when pattern they've third now virtually have been out.

saw demand, submit would that with mean expect sort would I similar I pent-up that as I in US, the respectfully we So of behavior.

a encouraged. will be than And in here peers did demand others, we RevPAR back our obviously will as respond would of the that RevPAR here we continue some performer. US, other mean, will get despite to but we airlines quite – So that got to growth. leisure accelerate that And we it that, that to saw, respond growth that haven't when really have I expect the we're at other we've certainly seen markets although, seen. better extraordinary some the the Japanese we continues our an it resort And of traveler

as tailwind a – see into Park and XXXX we for that beyond. as real we So as move

just covered this those you've could sense. makes Thank That apologize, or another And if you But thoughts. capital then Sean, you just I for XXXX? maybe in us XXXX, question. give spending CapEx

Tom I'll I of kind ultimately, covered that. let mean, Tom –

depending transformation as revenues had the flex that number the we've with additional the for of up Marina, said, finish be higher normal given is Duane, $XX we're world-class going really pending on Yeah. be it's And you few accelerate million quite to resort ROI to of as summer. Casa a in certainly certainly when We've Orlando million of that there any I nature the this next which good in said golf about redo Bonnet are projects certainly, just that the that out And part rooms use and to which and we're planning there. Creek, closing for dollars than a planning, X% complete complete course, got property excited is always And competitive, active. position other can a of course, we certainly we I as is portfolio. base hundred

very Thanks much.

Thank you.

you. Thank

from Our comes of Deutsche the from next Please line Bank. Woronka question Chris go ahead.

guys. morning, for all good Hi, Thanks the

morning, Good Chris.

– morning. Detail

San Group we was in on little a question bit, don't zoom maybe First I Francisco can know Tom.

dollar but I has question the given higher groups really some rate think Is I want a of not the premium want in value this right? data Francisco higher-rated think points you to encouraging, to is, drive and the a there. kind of lot on gone you've need has You you for structural that the it city and to the we where group Vegas. of issue some us matters perspective of EBITDA where And a side guys, right more recovery from kind be. become it San

San historically mean you think they've think of I about for at Chris. street it's Vegas got city. away Yes. Francisco, that had would I from I Vegas and XXXX been in is to XXXX narrative the correcting, the with groups. you the more unfortunate the if Francisco educational strong city if through pharma, whether some think own. the But I'm not audience some its do the I that pandemic, certain point. agree that that high-end security think the would it's homeless think about conditions than works think held sure, base San and issues. you mean was negative safety still back -- in of thesis, I or look, I

business they're other and right direction. that leaders have I also, I And women moving have out and men us the many of you the know, gets that been that in and city know think certainly many there

So, opportunity in take more, you and the or natural for -- York that I have compression New so certainly XX,XXX that it's market would you've the has rooms a XXX,XXX got real not given there. CBD, fact

the makes it transient. sense yield with for certainly to our anchored our then really to portfolio citywides that complex and ability group, Obviously, and have in-house

we mean of group year XX% the this XX%. encouraged. So is I it's pace low group are next year the north in pace,

all-time room XXX,XXX about think that XXX,XXX, which I of about gave high. I number nights, which XX% about XXXX, because think are I the was in citywides is an at

encouraging. So,

performance Francisco need continue we to accelerate. Look, to San that

comment be New that this months. May Francisco others, San for open didn't remember of until many listeners, reminded And XX closed until and who wouldn't was XX later. I the XXXX Park or made that XXXX It York and were there year. back As

say based early to and what certainly that think that's the York here before San going signals we it's even think in to we're I happen Francisco, seeing fair in on New that then.

levels I up you certainly XXXX QX complex if start on Yes. at would pace. mean add to -- one Chris or with part for X% were I the we thing look pace pre-pandemic is rate QX relative of

coming been think is and really XX% think and San saw think the from encouraging of encouraging I of for booking I that XXXX of very it's again ultimately where rooms the September So, for for month and Francisco, the in what which -- represented XX% it's I we the -- about month also what's added total for activity it's revenue.

XX%. $XXX for we booked of San Francisco So, rates average got of for all

about for of numbers than into is seeing rate I I talked to -- think higher QX the which JPMorgan. end obviously is average mentioned. just I in probably you going an the pace it's $XXX XX% of X% some But the that we're on

the side. and right again the I with group So, encouraging direction Francisco think in on

Sure. Great. helpful. Super

think do on depends about occupancy going be puts Just higher mean perspective to as a your going I could some be and have we guess on could could of I positive hopefully forward? the we're takes mix negative. be how margins follow-up next rate year

it's work initiatives brands don't with know I'm brand whether other or I whether stuff even that the what of further going be or of of extent kind margins some other asking ancillary some and on really the things on group And loyalty I it's helpful lesser could a is guess forward? to cost if Hilton you're to continuing

a you you're you're building about think mean clearly of if ranging in things, it's where XX%. occupancy Chris think number this level back. I at that I a

of, to kind just you're So, flow point volume into a of going get have you, better. lot to going cost you're with and basically where that your that then layered fixed added

Obviously, continue it if to that think San our we mean it so to about Francisco think certain XXXX I think to to you back markets. going our drag lift is. about growth I coming in going certainly in rate see you it's RevPAR rates.

again, flow-through And what about and the been getting revenue points is basis in continually there cading in XXXX than our the as about for through. coming so less therefore, I business, group banquet mix think think with XXX which and getting it's the you

I this think obviously we opportunity changes we've you see XXXX as the -- go continue made. were with that made certainly to we of a grow staffing and for in and the lot beyond we've where to discussed changes

end the margins the seeing performing getting with to here But continue a here see still and the we're have today. certainly certainly with for we we'll the obviously moment this. we growth in macro see think certainly path to think business put I towards that higher I side So, the discussion

Okay, very good. Thanks guys.

Thank you.

Our Capital go question from Malkin of from Neil Securities. the line next Please ahead. One comes

morning Good Thanks. everyone.

Hey Good morning. Neil.

good Hey morning.

us full lag? they dispositions that Just of Can highlight the the reducing markets sort about. are those maybe talked you the ledger JVs would maybe some one-off the that reshuffling or color a some not maybe upscale clarity service? on maybe some of give potentially the on non-core side be upper -- the unionized portfolio great. exposure Are potential just that you've of on to help markets Any additional troubled

fair also know answer today. queue here people of other say, number a to up in And a questions got with reporting try we've lot can. me question, as stacked companies Neil, I but the many want a let just to of we as we and it's we're

Respect for time. the

and We're in joint to have as UK, mean, know moved team those venture No a has than you seven Yes. $X seen we since Africa, done now of it XX Brazil, assets and sold Dublin. up XX it the and billion Germany, I assets all. the in international all more we've South spin.

has So our really of we've team worked credit the one team and investment hard. men on and legal have of to a development deals and women tax, lot other Every on worked our complexities.

a So combination. it's

portfolio. reshaping working constantly are on We

would long-term So $XXX I say holding. are say that non-core They're would over there assets we million. what to

They're issues point big tax at the some with think question looking if markets not boxes, debt the urban where complicated. of time. now big. legal There are. are We the are we They're is and about don't your they this is

shown a sell it are there and and/or marketable of debt that sense. non-core in that We We're equity assets efficiently seller. think a able being makes family other real sources skill and private distressed now those think not we million offices. deliver to pricing to able are in raised do And to owner to thoughtfully continue $XXX operators and back plenty to certainly reinvest and also I portfolio. proceeds use goal we've and it we'll delever prudently million We're of and doing to and the exceeded We've that. set already be We've million. a $XXX into that this we're $XXX and confident, at

Thanks. Okay.

you. Thank Okay.

you. Thank

Farley of next question Robin UBS. go Our ahead. from the from comes line Please

Great. Thanks.

Hi, Robin.

just and hi, that pivot been In potentially offense But ask mean sounded than like is being had defense at more an reducing release wanted I'm might that your curious would don't selling maybe was about about how you're you've you thinking -- given in are to targeted how the defensive interested sales just successful and that talked acquisitions, I And you know and reinvestment? offensive. that you? leverage between or you suggesting just asset it acquisition? between you making making I could and pivoting that if about more be

the assets billion, time, acquisition XX an Robin. those obviously Chesapeake right make for bolted we hotels again for Remind XX to $X at billion. the love sold $X.X for We'd Yes. we've listeners on

been the a just So as we really pandemic. work through silent net It's here been we've acquirer.

do look have as And we we'll said, again will buybacks is. we to priorities are selling buybacks a if some there. we trade our share on today. a at And basis, I and clearly, the leverage-neutral And revolver depending have non-core, we'll there, again, making certainly price huge we where back discount can are progress team -- The done look getting done. into at on the continue portfolio. great then, as Sean reinvesting

we that reason And of not Park the to when that today this there liquidity go will will Part pivoting and on at time sense want of uncertainty. time. that and lost necessarily the all active why is that on to tremendous quarter. a is be to us We be build ready be makes continue Park given think offense will don't

you. Thank Great. Okay.

Thank you.

Thank you.

ahead. of Truist. Please Our the line from Scholes Patrick go next comes question from

Great. everyone. Good afternoon,

afternoon. Good

There've why that. you pass. the your acquisitions you've have to what amongst your or active And just rationale, your terribly active a that's over to folks peers I thoughts saying been is I'm sizable acquisition curious wrong. last several number thinking quarters. I'm in this have not a the you. noticed your REIT not public as take been to of why right not perhaps market. and as again is And just of decided internal curious Thank been in

thanks Patrick. Well Yes.

let speak I'll themselves. going to other for I'm not deals comment them you on As know and

in pretty, wanted to we've the are think Park. pandemic And to the pretty been we priorities really for post-pandemic and consistent the reimagine use the I model. what operating

get we permanent Sean see want and to the XX. non-core. to savings selling sold in out, portfolio continue that later we reshape We this continue value We'll confident going and to of and pointed back some As are that we're we've occupancy real to as recycling get we there. the recovery, sell and in capital

the Our for account the top XX of XX% about of really assets value portfolio.

buybacks the targeted highest really our into portfolio that's or up, reinvesting the neutral So ROI of a neutral that basis. And we back leverage through makes sense. best through that's proceeds whether – it is think on cleaning those use and

think right really And Park. for now There time makes buyer. time be when about will just that don't will the sense been you since come think we a have if we spin, We more a time buybacks of selling the than a as And bought then ton $X.X we've seller, given fact billion. that well. obviously, a had period billion of of versus net we $X over buyer that also the

hopefully I'll there question. and that answers your So stop

Thank you It for does. yes. color, the

Thank you.

Raymond Bill Please Our go Crow next from comes of from the question line ahead. James.

Tom. Good morning,

Bill. How morning, you? Good are

about am the that's talking D.C. you like we I Francisco whether about undergoing just going be recovery picture Austin, that. Denver a where love larger and and like some here There's might missing in little that Nashville, If that's and markets. just not I'm to shift your discussion get might San entrenched big groups might good. some forward. on the be issues. paradigm heading. And about thinking we I'd whether I'm markets we're group or group wrong the than be curious of these Tampa, or with better Chicago thinking maybe of I'd old just Maybe point opinion

just Yes. you. Bill, there with have mean disagree I'd discussion schedule love and think don't or some and you you that exclusive. mutually are this in I I and Austin. to they're Phoenix love don't Nashville follow-up with things happening really I a compelling I'd

reasons. want rotation to with airlift or in Atlanta those great other and that part those have are be worked Francisco the and of why Chicago, there And associations say to Boston, be and/or markets really San our in know in you Austin, markets life, there also largest would hotels the But of in I capacity – I are in we know so and true one infrastructure owners and tried past it As that of groups reasons DC. need and are those well.

top And So, and I and historically those have be part Chicagos time. we're if I would markets I put to mutually rotation of at submit fully going respectfully that, don't a and DCs see cycle and think Bostons they're to would the over of some that. and I to Franciscos you San in And exclusive. think a there's that in expect Orlando continue to look I

be comments a think of and that to would respectfully here about argument need we as And doubt it. and addressed. and know. I've be some had no No challenges are lots I doubt think you written some and have tried I made of I won't And in and to there's cities structural Bill Now, submit voice an that. letters that get subject you constructive I've I about, been there on the these

your And do. I advocacy I for No industry. appreciate the

it appreciate the time. was that me. I So for

But continue time you to this. will I will be schedule able

All right.

good. Sounds

right. good Good. All with always Be you. well and talking

you. Thank

line from Kornreich Our Please next from question the Jay of comes ahead. go SMBC.

continues you and Good much. revenue XXXX calendar some demand very the you the color how see as the then, F&B see thanks on in morning. in segment Hey, you group trending convention provide in to Can additional ramp up? strength XQ and this

you. We I first lost question. hear part couldn't the of the

first part if So, just repeat again? you the could

some I as And in the was the in how you about, additional F&B sure. calendar revenue the of strength asking you convention about if continue trending up? demand the XXXX can then -- see group and ramp XQ. provide F&B to color Yes,

than better in Clearly, at of QX Yes. you F&B holiday season we will saw come -- of look kind as into get certainly we ultimately through the season whatnot. QX.

banquet point You catering. in should F&B QX see ultimately rivaling a and little bit it's of some ramp-up to It get kind revenue. of a where

I normalized the to more see to see grow. our see the clearly -- side, certainly certainly, as Certainly, on So, continuing you as pace side F&B you're that group demonstrate going as mix think you year-over-year. we're improvement that see would

down the place without So mix we're certainly in there. group significantly

to year into levels next certainly as well. more So, the go normalized normalize XXXX I F&B we'll certainly we certainly group as see think and mix revenues

there. Thanks stop much. I’ll so Okay.

Thank you.

you. Thank

ahead. Please of Our Green go next line Chris the question is Street. Darling from from

the being of possible, any whether you Tom, market major the seller comment those value in may if wonder, obviously, could already, markets. delineate morning. changes just seen active market. then could I on of any your you couple appreciate the over if across And gave Good I but past the you on months, an you Thanks. of changes comments have I'm some transaction curious,

expanded Yes. given billion real sitting hotel I my but market bit are I I bps but capital. rates on, private rates, equity on XX in, come healthy on rising Obviously, It's may seeing still know cap depending of off bps $XXX a maybe for XX a about be really we're the fair estate. and question. they numbers, a think little funds

offices. You've family got

owner-operators. got You've

look you the as So going to class. to yield, attractive be And lodging and asset an would expect that continue believe I lodging for demand. there's is clearly

can’t You do cap three you rates industrial do many so can where given they residential get are. I deals to harder and do think

a So have not slowdown. seen I or that, that true. sort we tend have deals an opportunity unencumbered, audience, that have management perhaps that's bidding haven't to do for more that story any perhaps of also but with always a think

trophy a think, If those asset, expected. it's encumbered fully are I

process. not through thoughtful a issues So sure we're been We been portfolio value to cleaning but certainly it really work. up committed it's we're depends resistance or on the capital and active transacting. asset, any And, to and about also the shareholders. really maximizing committed We lot it. the think, But having are of recycling that submarket go as anybody. we as for a are in and I we've hard make We're

and had were self-operating. laundry that forget four platform that we we disposed had a we People also that also assets we've of

and our teams Investment Chief Officer; the Morey, to tirelessly General years, to All reshape our men Vu, working we over been and of Nancy Tom up that has been great continue portfolio. cleaned and credit women Counsel; have few those the the on last and as

portfolio spun were stronger ago than plus when a So years it six where is we we much out. were

the Got it. Thanks time. and comments for appreciate the

No, my pleasure. soon. to Look forward seeing you

you. the Ladies have end we question-and-answer President Mr. reached Baltimore, to conference session. the like for turn closing and Chairman, Tom comments. the and CEO, I gentlemen, would to Thank of And

many NAREIT Thank hopefully in you look stay seeing today. out to forward you. of We and safe at see time appreciate everybody We and you taking we'll San Francisco.

& conference your Resorts for now concluded. participation. Park Hotels Thank you. has of Inc. The Thank you

disconnect now your may You lines.