Park Hotels & Resorts (PK) 1 May 232023 Q1 Earnings call transcript

Greetings. Welcome to the Park Hotels & Resorts First Quarter 2023 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]. is conference this note being recorded. Please time, to Ian this I Corporate will over conference the turn Weissman, now Strategy. At Senior President, Vice Mr. now Weissman, may you begin.

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

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

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

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

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

as an on and Chairman Dell'Orto, XXXX liquidity, will sheet quarter color details and guidance. provide review our year provide first a Financial on balance Baltimore, as guidance. first performance Tom results, will update Officer our initiatives allocation our Chief of quarter morning, an further Chief and on and full Sean on Officer, update Executive This additional our capital Park's well

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

expansion continue our pleased our I'm priorities while delivered sector everyone. execute and we taking as through results quarter Ian outlook to to Thank margin value reduction, you, our recovery capital our successful ability results and a where we debt deliver line against leading report ROI continue to including prudent strong portfolio. top significant impressive very optimistic buybacks, welcome from another benefit across about strategic creating to and stock continued investments. We remain shape and our allocation and

part impressive last comparable and XXXX at to urban Turning first rate the expectations XX% by and an quarter average over to our strength operations, X% driven XX% same nearly period large higher by RevPAR with improvements increased sustained occupancy the year-over-year year. results quarter QX for markets. resort hotels at points exceeded up in ongoing our basis

up points quarter million, during cost trends the to performance, particularly year-over-year, of hotel and revenue While benefits the approximately cost pressures. points of above all ongoing demand year-over-year segments XX% aggressive with were with recovering cutting the gains, particularly impressed of we banquets XX% levels. catering, measures from year-over-year XXXX with to to $XXX the group witnessed we Healthy EBITDA group an a adjusted implemented improving pandemic drive face basis exceptional increased the or in up accomplishment basis margin the XXX guidance, gains during XXX impressive XX.X% approximately margin our with midpoint coupled

XXXX strength and for of primary for York, Orlando, picking $XX forecast is Francisco, to to in by during with gains our driver quarter, Orlando. short-term our of notable the the in revenues Overall million to New expected Orleans, room New up San banquets food quarter Francisco. acceleration group bookings The group the quarter, a QX group concentrated demand by incremental $XX see catering by exceeded in in by be and XXXX as growth million for beverage Park and revenues of million nights over with XX% San is ADR exceed the approximately part driven with $XX exceeded strong in continue and expectations portfolio expected accounting during or during and primarily XXXX approximately large X%. group XXX,XXX revenues we

XXXX In XXX of the addition, group basis levels revenue XX% XX% pace increased San during pre-pandemic to Francisco. for quarter by points and excluding

Orlando, to As of some portfolio time XXXX pace the we out larger convention year. March Driven by last to at X% Insignia activity XXXX, and the Orleans Chicago encouraged including strong in versus up XX, in in the New expect XXXX of revenue and at expansion Waldorf our markets group revenue the healthy citywide meeting by to benefit from platforms the complex Bonnet momentum XXXX with look group we currently and expected as with Astoria we the are the wide up of group XX% pace Creek compared house group where both activity for at complex. XXXX and same booking space significant see

performance above XXX in and managed margin XXXX well basis points XX% strong QX beverage Hotel Village hotel QX rebound our with ADR to and RevPAR XX% and The an robust up basis demand approximately increasing XX% XX.X% with year-over-year, at XX% hotels RevPAR split up urban or hotel. despite of transient hotel at Hawaii, gains Hawaiian over from increased strong million remains group catering the resulted saw cost that the impressive QX of and from revenues points was XX% up outlets between being to In Hilton occupancy XXXX. at also XXXX our or anticipated, and both the driven XXX hotels to food we EBITDA XXXX quarter adjusted was XXXX as very first that markets, XXXX, RevPAR by evenly XXXX. controls strength while our $XX above down our to continued Japan RevPAR resort at travel and compared and XX% Turning very

incredible XXX with XXXX efficiencies. the points outlet above and to Our or materially resulted the witnessed increase above comparisons conditions and margin basis shrink despite XXXX, XXX hotel EBITDA at the hotel decision of XXXX. overall Hilton Waikoloa a controls year-over-year adjusted size near hotel improving X% basis strategy buyout the XX.X% of an Hotel during RevPAR cost XXXX, challenging to in a in QX Effective points operating modified in

Looking two driven Hawaii of from ahead, XXXX below over for two expect our is be international in demand RevPAR our mid-single-digit expected gains hotels to still year balance based travelers the the XX% to U.S. we mostly is deliver and demand as levels hotels.

of the strong few we However, Japan to a years. activity see second-half increased provide next expect year, should to which from over inbound performance the tailwind towards the

XXX,XXX performance the year. same we Turning convention Francisco nights to nights period with to markets, San room QX over XXX% room were versus particularly last our by urban group expected over better in than encouraged up

ADR San hotels a addition, during last rate were to the conference XXXX Morgan the over with XXX% solid meaningful RevPAR In for rate the levels witnessed pandemic. up as just Francisco the averaged increases gains with showing of across revenues healthy group start quarter, exceeding hotels since X% we by QX the a J.P. drive helped four Group year $XXX shy quarter. during EBITDA rate all positive our four first during the Significantly, XXXX city. of to XX%. generated

of year-over-year, booked from second-half DC driven RevPAR performance with year. markets, room room expected XXX,XXX or the XX% Francisco year, delivered over balance stronger reach expected for the over increase over year-over-year convention of nights San out our Washington an In growth this by of in to XX% travel. government nights of other than Looking the XX% are the urban

Our showed growth year-over-year XX% respectively. Chicago approximately and and Boston markets XX% RevPAR

return XX% our was Orleans Our particularly up large a during at of Riverside across year-over-year among RevPAR XX% pleased portfolio. Hilton which to the segments, QX, New in all group by events the group We continued in by especially year. New sign driven to of our improved were double-digit momentum see medical growth to recovery Orleans last

and in point another occupancy surpassing the quarter approximately rate to group show for year-over-year increase levels, demand continues revenues XX% XXXX growth segments to City from We the RevPAR remarkable York levels below with strong benefiting XXX% by three X% year-over-year up during in $XXX,XXX. New over York first quarter. X% driven XXXX saw a or quarter percentage progress with by Finally, increasing just all New group strong XX

group with million $X for book booking including an of the incremental $XX Our business quarter, strength continued million during XXXX.

hotel from to XXXX levels. adjusted New York EBITDA expect XXXX surpass We

year, of look uncertain. recognize we over balance As backdrop that remains macro we the the the out

to to shareholders. focused credit confident laser capital create we XXX of continue will more despite And remain of potential trends this challenged demand XXX asset expected trends sales anticipate at the we our anticipated value in long-term notable should group witnessed and on available our prudent to backdrop, we which Regardless have the million target especially initiatives well the for allocation this expect as Park to performance. our not leisure to and reduce non-core are taking on pickup any million impact excess X.X advantage nights to we of handle billion improving We through remains the while of pricing neutral an major public enhancing and market through fundamentals leverage However, and remain stock private reinvest disconnect across year, convention in cities, drive Hawaii point support approximately opportunistically relative should with back business. room portfolio liquidity on utilizing economy healthy, further liquidity hotel ROI constructive remain fluctuations U.S. out in strength leveraged projects buybacks. ongoing in value positioned especially while between markets, macro

fully Miami cash asset a use consensus and of Airport the net Hilton cap on X.X cash on at proceeds revolver million a discount and to we nearly implied sale material the repay our $XX quarter, XX% and During the shares million from repurchase value. rate balance hand to Hotel the

our this back renovation Hawaiian Creek Finally, space the scale West final the phase of portfolio transformative and at Marina and million into renovation upgrade rebrand meeting we Casa and year to Resort Hotel. Bonnet expansion our invest Orlando complex. Hilton plan our $XXX The renovation, full at resiliency over Key including Tapatara Village our rooms in of the

on increasing expected our the first range given we remain track our guidance RevPAR and year guidance growth year. to full leading Turning XXXX quarter deliver and better earnings are results sector than this to during

by or a adjusted or EBITDA XXX midpoint our by of share XXX to XX% the AFFO million, midpoint per million share to XX%. just year-over-year growth share adjusted $X.XX $X.XX growth representing range over per Specifically, while at new X% we million $X.XX to increasing range approximately a are per EBITDA FFO of and of of forecast $XX the guidance adjusted at X% our increases to new

the reemphasize over our are which success. to want value call and confident position to remains long-term will laser-focused allocation the capital turn With team create internal Sean. shareholder that long-term will I I and executing growth on strategies for priorities, that, company we our

Tom. Thanks, with quarter were first our Overall, pleased performance. we very

hotel XX% $XXX adjusted or adjusted above to share adjusted EBITDA same EBITDA was at year-over-year $X.XX million, or last guidance of XXXX basis of while QX margin XX% above XXX FFO $XXX QX approximately Tom adjusted EBITDA points was Hotel the during As X% was came occupancy noted, $XXX million X% $XXX RevPAR set and in or over revenue XX% per hotel was the with XXXX. in in the ADR above resulting period range we midpoint growth of the million strong quarter, levels. quarter. and $XXX

Turning priorities debt balance liquidity liquidity strategic is macro with the million when in remains $X.X billion, currently our $X.X ample peaked is since debt net current our shape while sheet sheet, approximately execute backdrop. excellent of to shifts Overall, our net $XXX to billion, the $X.X approximately billion. potential balance QX approximately at regardless XXXX in down

$XX the potential the respect our confident which Francisco our a million continue of we repay deleveraging, maturing by we and the extension With San Chicago current we quarter, secured by the loan remain Center. CMBS loan will a In we options, have includes during summer. terms November, in to early million to W $XXX of resolution evaluate loan second City to expect

to continuing contribution as balance improvement midpoint, Better-than-expected guidance, our XX% offset unchanged anticipate gains the or $XXX guidance forecast XX of throughout driven a point has RevPAR EBITDA increased demand our by costs the range XX.X%, a $XXX over the a of continues margin basis solid insurance XX.X% property the at Turning year basis utilities. the hotel the we for increasing year-over-year for to trend build, year, adjusted group by XXX new group prior were while year. prior at to of points to midpoint helping to and versus roughly to margin increase remains forecast at a

million in driven a we While we a that urban continue impact to year-over-year Francisco, York peak margins are we within are during was City. by Orleans, we hotels gap our now by narrow and from to comparisons, that range color expect last from part forecast Casa soften XX%, have Despite to be up to or QX. quarter roughly QX QX mid-May income to to this portfolio on $X.X guidance, through the comprehensive with portfolio relative facing Key surge, XXXX, Marina quarterly to operations provide away resort that of last of $X year's Omicron difficult cancellation large the New X% of to led the million in our likely our and above with be San Note suspended RevPAR lapped disruption by moving year-over-year renovation quarter levels Chicago, New however, expected expectations. year's of outsized providing more exceeded West, from QX which XXXX, of most wanted to bit second historical driven performance

on XX year. drag negatively With Marina RevPAR is and Casa basis full roughly forecast the year approximately impact basis by a million a basis full adjusted than for more XX $XX the growth XXX growth be to basis hotel EBITDA earnings on EBITDA Overall, point quarter the and a margin hotel on impacting renovation drag negative by XXX forecasted margin during point RevPAR and points. adjusted second points from

As prepared our year concludes into the full This factored remarks. our a renovation is already at Casa reminder, disruption guidance.

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

first Thank Smedes the comes you. our Rose your proceed Citi. with Please [Operator with And line Instructions]. of questions. question from

seeing -- kind but that any little in could I the kind bit of to I of know where not, be Francisco any of Tom, could year you. generate and think over just is year San visibility and just of or see you're balance if wanted of you talk ask, couple of the properties And of happy EBITDA through you thank next can these what if Hi, maybe the just you about this next you'd kind you'd it year? there where kind more might general to to way a be you don't willing move to ballpark to ranges years?

great a a question, to It's Yes. mean Smedes. there's unpack obviously, lot there. I

EBITDA, leaders, time with out I I'm to know shared the listeners would a overall about approximately XX% amount and presence make with that out officials, you say and with city and in SF four I've not think expecting Sean it's I we're million there. guidance that to of out there, a San of significant I've six other considerable million myself $XX I'd certainly sort operators I to think outlined. meeting pre-pandemic observation, important spent having mean, range across I of Francisco weeks, every there. I obviously be the $XX I us huge before, find the both business Travel, contributor, a

So I'd comment. make that

about the but I to XXX,XXX year, XXX,XXX this which with about high about ran all-time think although you when the nights, in approximately. they So look in again, citywide is significant particular, room historically, you think XXXX below certainly if level, XXX,XXX

the is half year. About that XX% this XXX,XXX performance. to of certainly is back-loaded of second solid So

are we So optimistic. cautiously

quarter strong, first and the was nights. up Obviously, XXX,XXX XXX% up very room

encouraging. and times The little. XXX, other the would down the I off start. the six better, any It When you to largest nine San matter It's initiatives a perhaps few recently the environment. got we is from Travel would think the to probably no in Francisco, the our some from street booking over higher about doubt if, strategies, a fifth elongated tell that still years. change it view is gotten that San to going that XXX certainly are conditions a being I in extended a of away Francisco around a is has narrative in they and think, Obviously, I them San but a initiative, So Mayors still XX of certainly say, are when. you spend recent SF market in little. little pace obviously, is next good the Francisco reports comes slightly not back. have expectations challenging country, that was communicated AI given leadership. a about economy. in than through XXX,XXX

So the San think, I fundamental certainly Francisco are benefits, of sound.

vacancy obviously certainly and rising watching certainly have which we're office rates, are carefully. alarming You that something

we Sean have, obviously, year we and in are which the his prepared and addressing order of obviously, maturity -- the plan resolved said in short So summer. our at certainly we that end as have remarks, by early to

sort So don't expect as of we that to sort first obviously, of continue look certainly clip. quarter at up XXX%. was We out, that

As think but are XX% out, going that sort Francisco understand fully about out. we and look as over complex and But not take that's and we X,XXX-room complexity to believe be optimistic of We a the RevPAR we second largely expect we before XX% we it's to up we few the as certainly cautiously XXXX, the quarter, naive. two would the certainly time, in going look pack, years it, also is of San it to recovers.

I mentioned seen of non-core ask to you that's million however valuations in rates side, kind of you speak targeting of you that you're or to helpful. sales. you've cap sort thanks, what on or too, just multiples $XXX want of to $XXX what wanted it? million seeing kind EBITDA you, in Could on at -- frame that maybe just Okay, to asset

obviously, $XXX the million. Yes. I we north would year. Obviously, -- observation, this for I'd sale earlier sold last completed seven we've year Miami make the assets of

$XXX,XXX sold for in middle times, one a key. a know, $XXX,XXX of Smedes, the key. obviously, as Meridian I pandemic, Francisco, think even the almost you there, And Le even the we of assets two Adagio of north San in the in worst for autograph marquee

where less to Clearly, owner are the sales, that perhaps We're getting price even markets I around So confident we've where able or and operators, debt, higher. probably lot we'll think easier is think a would debt equity. get the done. $XXX be asset constrained. pricing are some of I to of and still the say that you debt is Obviously, look, certainly capital, objectives outlined. on depending I there's achieve is private million X% priced still plenty the that

I many or and billion over up that sales XX And the of noncore assets. exceeded course, $X.X I that complications think outlined lots recycling international we're of met the assets think XX asset and and and all met to in assets hair. of about years including now assets we've noncore of that's, we've lots

experienced we're $XXX that asset at confident So in get very higher. the very this skilled, done and is if and we'll sales not team least million certainly, year,

Thank you, it. appreciate

Yeah, thank you.

next questions questions. Our Evercore come proceed the Please of from Duane ISI. line with your with Pfennigwerth

morning. good you, thank Hey,

Just debated one a Francisco, on market, that San you're improving. is showing but obviously, hotly it is

think you what do How For or them? assets, of whether and and keys taking strong lot about some issue. giving the that and as a keys should opinions back as are the better on there's the the you approach one see you give that of on of are evaluating know options we that investors positives those your do, of than back you not negatives

you the question. for Thank

say want we agreement. First, I to are that would under a confidentiality

Look, All we to We I cut are dry. all emphasize the explored, by servicer. discussions these summer. expect and and resolved explored have this in being are are being with and are never the options options

now, would goes And level. certainly again, and would So this boom is of that, that in but it sort growth some certainly dividend shield that beginning payout these times historically away on Francisco, San period and in result give believe what seeing a have, in of to it we spend, theory, a line. to hypothetically debt, a it beta able leverage, our if it all revolution are back also its there's said but takes of market, million reduces high $XXX reading it of of through San that all I it $XXX we the most are In earlier, I periods is were depending a that, of Francisco of optionality to bust. as we recover. in but keys, million obviously San based and certainly income Francisco not you a six about, tougher hearing the story AI to potential Clearly approximately. we're think kind we I on time so mean, anchored and being forgiveness

to think in examine value. to a that to going options no carefully be more the is make the mistake, we we're creates that certainly what going I what's but of shareholders do and little most we going elongated and believe best recovery interest the are

or Thank like then New thoughts. detailed you. for it you I attention and the of you. are Thank about in just talk is, New maybe segments caught for Can things York leading really you which XXXX follow-up the my sustainable there could that that you those think on maybe how York, that above that, you operating drivers that, my felt be And of on are guess sort? changes Thank EBITDA. model

question. great Yes. It's another

One glad really things, you of I'm the asked the question.

believed operations. grinding of up not margins north really to mean work X,XXX the we and that's two, million points. using and I'm really Within we listeners, were discipline And removed or I a the But say asset and and team redundancies, reminding could about hard. as And and looking, of hourly. environment, sales we was by and so XX% XXX of imagine the people marketing, by use not of and of a were lot XX% the really have -- I basis the management I that model. in and hard that's we reimagine our operating and that confidently and more about a we FTEs, particularly management women investors worked the better Sean this lot crisis about points. in out and not be that's his $XX lot retooling -- a have team, luck, in challenging men leadership pandemic that I year last analysts way this. prouder sure remind We took that XXX basis to talked

were were were in than fewer took -- In XXXX. quarter, management they there We out XXXX. we XX% reported XXX than that QX quarter costs this lower in XXXX FTEs labor last

really is today. team certainly that the So showing we and results I the by and think working it's hard, showing it's are outlining

back one of would it the York XXXX some the XXXX there be we heard of sort never New that XXXX come we middle XXX% York you and out think we New in some. many or and And we we or pandemic in would is RevPAR back naysayers up Again, this from silly will logic fully quarter. EBITDA. like levels were that, that that as stated, exceed where expect

is activated. to People The office. are the going back city It's only -- accelerating. it's

we New doubt, And feel are and seeing in good city we the significant leadership an large so three group you're very excellent feel can we -- and there site. are positioning. back we the footprint that very our we're about there have we positioned about no York, There outlook only boxes team the that believe and really certainly and business, on and well meeting best take good

in So quarter. York we there the double-digit we'll second RevPAR up And be excited growth about and expect New again, very encouraged.

about New very we good now. are where So York we feel right

Thanks Tom.

Thank you.

of from proceed is the Dijkum with questions. with Floris Our Van question next Please line your Point. Compass

for Thanks my question taking guys.

in was sorry, little don't a York first that full I $XX belabor $X last want follow-up New here, too much, hotel think and EBITDA or the And -- was million. was New of Just York I XXXX year quick million. to a quarter in has I but bit year think negative

comments, to your implies way little that thinking. right steep think Is than about were line of pretty bit a in but that maybe which the a ramp it's So it? people up, steeper with sort is

in Yes. $X.X our quarter RevPAR only EBITDA and York was I mind, of negative. about $XXX occupancy or and mean in keep softest minus, part is and New million like XX% it, it's plus

above we look balance comfortable out I I imply we're RevPAR And as that the does certainly with. number at that's year said, pretty we're be of think looking also that today, a the that significant. million. So will that $XX as And

said more at we QX double I substantially than that. of look just digits, So but as example an as that

anchor big profitability. when with on -- we've layer the then XXX,XXX. and got also all can really you group Now in hotel And a books that room the helps like transient overall your that's about group nights

good but be is of tends we the And to XX% -- front, historically feel XX%, coming certainly international So XX% you is really is that as look Europe out to we out piece the travel very which as see, today. demand helpful. And the about clearly, growing. that domestic about of helpful. on

feel at Asia but York in good point. this New very the pace is not we about back yet,

follow-up, bought Tom. back maybe obviously, quarter. Thanks And the my million you shares thinking, in I'm X.X first

You sell another the percentage year, we the indicated, -- about looking expect to did before How sort what hotel. should you think is a end which should of million the if of XXX capital sell about you're half and do of redevelopment you how have for probably you or you for to that that two as to obviously, be reductions half debt some used share those need buybacks weigh and spend well? people

to basis. want I in you about we leverage-neutral certainly do think if mean a it, Sean. I Floris, it's think Hey

that as that focus factor kind well. think, as the -- terms forward. going talk we certainly of you have in you it with So -- think a way you as can I think of, I about certainly, in on mentioned we ROIs, as And

be a will more in $X QX just lost still I in mean, there portfolio or some you of you could million it, probably towards think leaning so XXXX. New of while quick have see deleveraging. York us some the they play, on I within So note buybacks And redeployment back just

So quarter. as Tom mentioned, it's a soft

this it's at unusual to look So year. nothing

Thanks guys, that’s for it me.

with questions proceed Our your Please Bank Asad the Dany America. questions. of from line next with of are

my Thanks questions. for taking morning everybody. good Hi,

by here. you raised full Tom, the So first comments amount year you actually peak I pretty that guess, in the encouraging the quarter, are but your

be trying it of is, of all, kind any ago, where you year, to conservatism thought comments are of we're first for is my is your just kind guess square of should kind into QX your up I and to balance how to positive question baking we the or -- days of macro how compared to some that year? the underwriting the So the XX going there XX -- shaping was to

back think to the questions. comments, Well Sean to one that want Dan, great made. it's also I but preface my comments

You've historically very It cancellations. strong quarter. got there been last year. quarter comps second and some was obviously, our has strongest And tough

got we're kind as XX%, certainly of that a all lot invariables So as certainly look optimistic good kid pace X% uncertainty. of not the of we're here. There's ourselves -- RevPAR lot as we that to very, well. we let's again, looks gave comfortable still and with We've in that. out here. But Group very a

Fed these about the -- cycle, in any X.X%, $X.X to we're at a about concerns tightening the As savings the savings, surprise of you at is a getting the we're of is with about -- still the Consumer low getting listeners. trillion potential None obviously, there's strong, unemployment. still rate of crunch. the peak or credit

a doesn't look it like recession. So and feel

But and clearly, depending tougher some credit there here and tightening the on comps certainly there's of the in of then obviously, are banking the direction side, in Fed the a on there. bit there, conservatism given, signals but

So that I all we dilutive the deals has hotels. we equity and joint part would forget moves were store. We no facilities, coming team we and international and are of difficult a cleaned we also worked out comfortable we're secret, We've recycled laundry pull hotels. capital. think three of a hands bond feel did one more probably has that People obviously the that, been I The the hard. Park self-operating mean, it. about guidance of ventures, But dealt of in No out with raise. that the pushed good, incredibly about of we say, and made, had forward, up. comfortable very large maturities. We pandemic the were bunch

about of -- XX% And value so we top company. our XX assets the for are account the of

we Japanese continuing People and we that And a another get part we big are and Leisure we stronger, laser-focused just of So feels expect out. really that. still we don't eye-popping QX still we're in traveler about back. is look group part as is and the producing have on that only optimistic Hawaii will are reshape to forget strong. results

again, that, provides So tailwind. another

without of That there that there, in of headwinds the are but number a peers. very I lot team. than benefit up few also many happen points margins. a think, So story, tailwinds work XXX really basis hard a different Park our And again, doesn't out the by of

little then thank bit my question on a Super group. you. Tom, follow-up And helpful, is

group, comment Just on? that different strength, and association maybe time, it's in what's the terms remind those different segments same SMERF of in that at on a And group the bit more us have -- profitability of portfolio? can so of that you of the little segments whether we [ph] driving

Hey Dany, one. is that Sean, this take I'll

a about takeaways We performance as certainly to our of Park key we few versus here Clearly, share QX taking market every probably and that relative our performance. there's it's a kind market. outperformed look in and were story. think with the up beating group. in at in great markets I

that's So the with spend by RevPAR. component out-of-room an total RevPAR room group. there's here Clearly, up XX% driven -- XX% on XX versus almost

So days elongating. near remains I think or it the in March here, We term, coming out to -- almost certainly XX the some but March nights for of XX% of it's themes were had room QX. booked

each seeing after for also in about and and So again, XXXX, room but January February. XX,XXX term, room of still nights somewhat that's near XX,XXX booked we nights

So book to I the see out book and trust planners further, need the think to meeting probably ability starting further. out to

pretty they're bullish generally on having events think in I person.

some So momentum It's you're seeing now. that well now the as to about of your more We're the sub-segments. picking the group starting really point right to up. mix corporate right convention out within group, shift as see of a

XX% XX% group, in-house to to basically in XXXX quickly recover that from the by expect I we think to almost going first being quarter corporate flat Convention pretty levels. in to QX. of an it slightly down seeing improving, XXXX down from up year, revenue throughout the is about

to bag based are this revenue us. little the certainly producers portfolio traditionally and bigger better mixed components calendars. two again, for Quarter-to-quarter, those the bit the But a of on it's be going

back So the taking mix and seeing the coming how baked into of those ultimately about certainly share of think going more kind forward. year we is

of tailwind last I finally, do one still about is the thing last to where there's think to to need canceled XX% be people one still COVID recently, events takeaway we've seen rebooked. -- still a relative here talk service

next certainly to those to people we start portfolio going a certainly So into try for year think that's tailwind our rebook as events.

for you thank Awesome, very that. much

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

of positive on transient. morning data Hi, a on Tom. points lot morning. been Question business There's good group. very Good

and the recovery the Just for trended quarter maybe there? in of some on year in how terms what BT this of detail assuming you're half back

I on of It whole and maybe it's down getting we again. I Sean it's negotiated professional where or back It's improving by digits. that lot I would BT digits has within through recovered. to corporate been but levels, about the part focused single that RAC think year, mean say we certainly financial half. Clearly, probably up got see would high I rate. even services, sub-segment you the the by as the And we back double off. is do you've a get XX% revenue the in overall to well. Anthony, certainly tracking actually XX% say, down that tech, in improving see But was to down We being year, see QX. mean services XX% XX% a XXXX

commentary government pick to of a all standpoint, slack of RAC up a kind got local -- is little businesses. through probably in Hilton And mean You've bit. going I negotiated and of you've the another we're well from certainly you more the smaller from helping of comes usual kind heard think got local seeing after I you're as what there kind the RAC. that as more you're

XX% and I RAC average. the the about RAC's say below would on the above is so on mix local pickup on And vast XX%, are And side. rate of rate, while about majority corporate the on on government negotiated

of like all, year levels to on the and it's or feel over midpoint business the just, in XXXX we through is it -- all half. makes recovering again, business by easily back So transient getting but the certainly It's is a attention this of think this corporate overall an down, negotiated back not. lot as segment really year transient

Got it.

one tower you be project that to on saw bought the land I update of you timing, doing some that us the in about Hawaii [indiscernible] great. scope maybe more. would Could there. maybe And the next talked Okay. opportunity there? That

It's Anthony, did a We process. be the we as XX-month looking Japanese at not resort. minus. which look traveler to XX And minus through six would success excited timeshare, again, there to is plus we're at weddings entitlement keys opportunity about process, said nearly year, we're you add be or as plus probably We're or know, about. it five There's XXX a could And had you last We've there. on that land world-class down extraordinary towers. X,XXX own another which we've XX%. added. pretty X,XXX the that having own. XXX units that don't working the possibly rooms got the we a also the of historically We an additional tower And year.

who I XX% did five and about think year less than business. typically our traveler we Japanese of for last account

expect year, tracking all-time We half we'll of in for probably high EBITDA. in visitation we see another to second more the start the are but

what's So only I also happening good very feel on Island. there, the Big there, about not but

we think there accretive. going to So future is a extraordinarily investment be

again, hotel. that, an we a also, XXX-room in keys there. rights more And XXX as as uncovered hotel that for in a can add were to Waikoloa We X,XXX-room have are as we today that addition we Hilton the we additional we profitable have than

gets story better the in we only out. Park gets as for only look stronger and Hawaii So

you. thank Alright,

of Klein next your with Please Our with questions. Aryeh BMO line the is proceed question from Capital Markets.

X% in How are maybe the good of to the guidance, from second year. half relates to Maybe the side on seems and a it significant imply your about the would it pressures And expectations expense on growth more morning. Thanks to compare as expense RevPAR what that X% broader to perspective? side? the

Yes.

decline. we of get once half as about a year, I the growth being back certainly little of see that we expense little higher expense to see But QX between we Clearly, revenue. to bit expenses the the revenue into and balanced a see bit slight more on than side, talked -- we think, we with revenue. edge be we year-over-year margin

So margin year-over-year. we improvement should expect to see some

side, years. think X% million about performance X% so the been savings Tom feel with that's of tracking I mean as up good mean, in to the And we I the few -- cost we the you of intact. X% side, where alluded are. expense to, probably kind certainly, I last pretty year-over-year QX for think wages $XX on about we feel

payroll XX% yet X% overall down is QX. to XX% a XXXX, think in up I sense, nominal just in since we're

$XX QX of X.X% terms million From we've XX% standpoint, are management savings. folks hourly talked down to XX% That's in reduction a the positions relative and XXXX. our are that about headcount down FTE versus to in of

that's pretty about in have I good tracking. feel control. good that we So we And where think

half I per think of utility of think It's some as XX% we've you I Utilities the into and pressures some occupied back year, insurance about. talked up a basis. room XXXX, where see are go the of that the remain you certainly going on impact costs. savings since to XX%

on up certainly, get XX% and have. XXXX of losses just going through everybody the based or but almost some is that impact with since need of renewal capital carriers likely Insurance the Still to to to the all constraints cost rates. be process, expected that it's

some utility those costs can look well. those soft too. put We've there certainly though, periods you you come I when at increases see will all So insurance we to as things can time, two expect together well down as that also as line on soften margin But items, think be pressuring some. can and seen over

ultimately could something benefit where that be the we in So future.

than we I lower haven't And because the losses. have had many, think, on exposure we side the insurance

While because that we're fare expect last certainly in certainly we better any years. than I cat exposed, think the few to most haven't losses in we just

in capital assets you think to Tom, to think years? a in that you're Thanks. of extent Francisco remain just market And you competitive for then, couple positioning market have the and much how recovery, the the do required maybe about to next the invest as over is you San maybe

a about X,XXX would the That's First, Park renovation. be hotel. in prepared complete to rooms. We XX. the were completed that We've model units

probably minus. two out ballroom, the the over renovated approaching range, the probably as but stretch, properties. it's in We've San over total. five-year Again, $XXX million, and that's a at those Francisco $XX a you space, about million that's public Hilton. probably So look in $XXX rooms But five-year it's X,XXX the period, plus million or

Appreciate thanks. that,

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

disruption Hawaii good just the about talk have and -- eventual next costs morning. Rainbow you plan, I be for if renovation expect? for yet may if renovation you the Can in then it's think what you Thanks, the year, expected and upside Tower you

planning Yes. just Dori. process in that, the of We're

and obviously, occupancy, And team offline as Phase we're we're Mayfield and things well best-in-class construction the going talk going work well are Tower to these take that you're as we running, out the disruption have Obviously, as next year. I we're finish We mid-XXs say thought these the and are really queue. XXs Really you bit it's high Tapa Carl excited Casa and same. out. act Rainbow we Tower saw, the to know, about when to Rainbow a high to will will manage in wire about X done And there. But a modest planned this you as really be our obviously, of going Tower have there, would be the the renovations. and -- design the of being very

follow with will disruption we a the periods information up probably available. We to we'll model few and complete we'll operations. more queue, becomes we'll today. that have the disruption be next But minimal We'll rooms XXXX in or on for but can find XXXX, that's organize, them don't softest as will data done, that get any design, you

context revenue X% for I mentioned -- didn't I XXXX year-over-year. pace And of think Okay. caught guess, group the is? in you where, I up was it

Dori, little was what missed sorry, part, we I'm that bit. a last

I where context the in didn't catch was XXXX. it of

so by low XXs. mid San up think, that's like like or is guess we XX% around So XXXX yes, Francisco, -- pace ex ultimately, ends I

based So it's upper on of kind XXXX. of upwards to XXs going be

Sorry, XXXX? that's XXXX or

was giving a to little giving XXXX it but then I background, XXXX, XXXX. That's

again Group pace low XXs. Yes. Francisco, Dori, Sean XX.X%. ex it's for San as said, XXXX, It's -- it's

thank you. great, Okay,

Thank you.

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

of Tom, guys. in morning there's so obviously a San Francisco. good parts Hey, lot out moving

lot of a alternative that of your And do hotels those buying of for high there's impact including do question is, not. any And in or there's there's happens, low? for that think in I'm the with you term think or longer supply any thoughts on surprising want use what prints on that. you or you not coming refi potentially does does really we stuff impact, see publicly talk think out? I how some But guys the of sale, what and whether terms How your to governments the market do Thanks. others. sale, chance some

important question, Key studied Yes, a there cycles, Look, few, it's have a only and to probably the are supply-constrained We've takeaways. West. we great Chris. San big, Francisco. I think, market, a the looked at It's most second

flow. to keys through a demand sooner down at it challenged No know. Obviously, helpful. New XXXX, XXX,XXX going You've sort recent is that work, comes we the this. And got today. going evaluate to beta carefully a will the we selection the we versus we really market, lodging leadership market. spend, six And for creates shareholders. think But AI be option print as sure are for all going When have probably market, at venture Obviously, you recovers from we XXX,XXX. in Francisco that York about understanding about spend beauty, from to the only natural to have we is obviously, we you're not all confidentiality discussions, this change carefully that the doubt, that, committee there. the about the think you can Travel and in options was you arrive XX,XXX the particularly under probably education, it agreement, that recovery. got if high that it underwriting you get environment reasons doubt And are not It's better. and -- anchored capital, are that at an there. and to SF about. San making you at look a It more no revolution, the the first second be of XXXX said is we're And a elongated or Having most talked value again, best look again, times

take periods be and there. dislocation it you create think sector The chin see office on hotel And clearly it that But rising, continue would don't for I vacancy need to also the -- office lot We again, something conversions. to is rate office to of these to is understand. the of difficult going a carefully opportunities. review

really see a idea campaign don't The city that Center blocking talked we basic I is [ph] are So The think communicated. ambassador public. think job certainly has a that risk. that's improving. about we is incredibly to about The a as lowering another broader think Moscone has been the national to tackling. than communicating idea. and better a street It the We well it's are has marketing good good really been better That that They got the rates. but received. program reported do conditions we've far

strong very quarter, markets. that also levels were And it's and it's XXXX but again, was we and XX% we still profitable, XX% to the other first quarter a below certainly lagging recognize the

that that and all arrive factoring in, to year and a very But this it San Francisco And we're about outcome. we're Park small going we're overall discussions. the So disciplined outlined. those is we've EBITDA guidance in the and at very remember, going be the to to and confident thoughtful contributor very right

it other is coming to small huge to that get by Hawaii, upside, the an this really not again, story San It's cities drag accelerate. on is from driven because but not accelerating really year is is San and contribution. a which led see we intact. just if additional contributions guidance of what resolution, seeing acceptable a continues optionality So our The are actually we're the Francisco in are we Francisco. by some

all Tom. the there. Appreciate color Yes. Thanks,

much Hawaii more as thoughts and Just risen costs the down make kind there it's out, few a a look in or a them. is just offset in there planning way of far done expansion sales, manner have how I more a covered that capital-light later you asset an I have, on some a would that and quick opportunities you construction not the guess, with most, to road is of know is follow-up, do but you given to of economical? how little

great a point. It's Yes.

point today. obviously, we're We not that at -- will

But demonstrated, of going basis by completely million is there. to that as with and raise expanded $XXX there. haven’t is reinvest leverage extraordinary leverage-neutral both as about and to of is Waldorf capital. it recycling show use portfolio. coupled doing and cannot well a The to pay renovated we part back the Insignia Astoria [indiscernible] year complete in buy down we latter do water dilutive Waldorf a what the best going not assured, rest recycling we're it to investing wait over this any of as talked You we when and the on and stock The we is space completed. plus back our we are do equity course Ballroom runs capital in We're already meeting the a be dog which the kind

options capitalize. on example. as think that So, we the would be how are as will excited we really about an when thoughtful about And we be and we table. All again

hopefully a the make to normalized to I today normalized was more decision need Fortunately, of capital more well. back and are few that’s that a expecting out a times as am years I we apparently cost in and until a revilement

always. Tom. helpful as super Thanks Okay,

Thank you, have great day. a

the questions. your from Please line Truist proceed is The Securities. next with of question with Patrick coming Scholes

Hey, good afternoon.

Hey are Patrick, how you?

And who that in talk state as your Great, firms, is Tom, my you. strong, great, the a of Thank who of is types look the financial rest new bit of in thank firms, who weak of the about you the change balls, group next that a what businesses, gay year is of And marketing or is there you mix crystal with year, and you. group can quarter. making composition into little in if all. strong strength is etc.? the

even I just need what But greater. work, is me let comments. about a macro you some in of I C Suite men that in forms, mean think leaders, on and of make we little more let I from and hybrid Sean to bring as talk together couple work jump women people to various hear granular. as a remote the will look,

distributed like so we year lot a the have also of are space meeting that of advantage positioned with well and room I with million you is forecast nights. take of portfolio a to so began that. mean X.X And about ours, well a we when

that about that make said think finance X.X were to in quarter I million up debt we we and year. about for we last needed XXX,XXX

here, up quarter need definite at nights. first a the million. of about only end the of about make at to we XXX,XXX We Now, room X.XX are

up you So plus will New to meet or be we you room are think the that back conferences And Orleans is demand as be point New made, targets XX% medical it very seeing have need York go obviously And Sean not have XXX,XXX nights. if together to and and able confident minus, are that to our of come group, seeing just to we them. pent also company’s isn’t to in Chicago away. the about that about still we XXXX going and group markets, got exceed

a Francisco north expansion course are is of the York and XXX,XXX, New and XXX,XXX of Creek of in transformational still Monte San Hawaiian XXX,XXX. New under XXX,XXX, again XXX,XXX. Orleans Village we complex Hilton

big just backdrop our just a group houses So, is of dozen that as half well. it

tail advantage continues, as that we we a of sky the but go said slowing we we we the don’t expected down it in trees to we Leisure to move sort So but forward. Key wind see for as that got we moderated to West at see and see groups real us. and add that a really don’t all and add competitive anticipated

Yeah, specific I there are any I is performed. add, just verticals might that wouldn’t say

way I just getting the group kind think find is settings. back everybody and into of

the still much portfolio. training coming haven’t it past. group so, just other and that where is corporate whether gathering done back, side the for company’s are you company seeing short-term Again is And see they very the lot a it you across the in house people in things of or

for for have group Healthcare you the of a New stronger. San half through. out quarter. certainly quarter the back are the Orleans lot this that seen market strength portfolio. Conventions couple Morgan then and first J.P. was tour first Francisco of on think I come helped Chicago, others at in quarter that well a this of getting plus finally clearly as is way, And year Conference least

the it about things like you start kind events of for travel getting like group cycle. As took pass get to pandemic in a them and back think that just instead on and other of while

lag sub was during segments So matter absence, and SMERF I of that pandemic. delay which that of group that think just a clearly -- the was one [indiscernible]

in side kind side corporate coming been and the level have You it really off and of back. more that has just seen

you. there. Okay, Thank great color

you. Thank

question your with is David of Our the next Jefferies. Katz from line with Please questions. proceed

morning. good -- for Hi, hi, Thanks are how you?

Good.

I Thank wanted the color just may on leverage -- of million be sense covered might might of or wanted to proceed is you a net and earlier of you. obviously have on details, that look like looking have that of just said to sort help? lot you what with so I the target provide think a what improve us any those, that I around would couple to XXX in with of just you any assets. terms can touch of And

Look think of it has continuing the million I of -- been our in both last addressed recycle XXX we year. history it obviously north earlier. Sean David, and to always capital

to We of target million. million XXX set the XXX have

have in the assets billion I real sitting nearly with would earlier sovereigns. of equity be the board obviously easier on they're mean shortage to the print of that I year. owner-operators, offices, private this whether print, private not family and environment. Miami that's sale already capital, the There one We in equity, done say put it's done $XXX capital, the are no estate, on including generally, $XXX million the And would get under

team, continue be several and the our be will about the work. as have capital assets non-core. we've Chief XX% Officer and job account thoughtful. to put So extraordinary I over And we'll capital top the XX Investment has Again, available. years, to our Morey, debt think, of we an got at that done And really Tom last for look value there's said. to

work You've just buyers. right got got -- and to you've those find to harder little a

tightened. but that you say credit risk a debt the as the certainly on environment markets right have have I debt challenged well. And crunch, in more side now as wouldn't we're a Clearly,

a XX% proceeds, as trade best you we'll can buy XX%, continue I discount be we and continue if mean we'll quarter. the use the to highest that best this we do at to -- continue capital In a to and decisions that. invest of management in that and terms at we We'll portfolio. can NAV, thoughtful. the to did from basis, to point, continue stock on make in of first the standpoint, we'll allocation expect will continue leverage-neutral to back back a that as really Those team are we do

very Okay, much. thank you

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

some your down was city-specific versus it kind or about little back RevPAR has to looks just kind X% idea looking worse exclude if down of versus urban with and the a transient. is issues, San a I being bit thanks. XX% which which Great, XXXX, XXXX. we your RevPAR business like of of at When bit urban wanted circle on what's Francisco, is QX than going

is the urban urban San worst know just RevPAR, Business of seeing is and across around and portfolio. in is you Thanks. looking, sort the but what's that in outside just that's Fran, narrative the markets -- can of that mentioned But on board? give this with something I this your Transient a and improving, excluding going you you're sequentially little So maybe

say would stable, Robin. it's relatively No, I

a decline. -- recover, I mean, and up sequential this end against it think -- being But a some see underperformance think XXXX, looking I you just of in pockets little seasonality even it's some frames obviously, think bit we a clearly, standpoint. seasonal those bit element of seasonality I kind But you more bit more the those -- think, disproportionately I to I you're weaker of I of more, kind from that in time sit weaker can little still trying a at today, if hopefully, makes little sense. here weaker, think a

to QX, in the line. look at when So you it's generally I think QX

through get certainly more an year. we that as expect I think we of improvement through -- as the more the

Okay, thank you.

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

Thanks, good morning.

Chris. morning, Good

latest can or Tom, as relates anything And the potential a of share San that timing project? new scope Jose? around it of you the DoubleTree, thinking rebrand to what's

queue a Yes. real we've of right think is We rooms the in the got and estate. the It clearly done. an certainly upbrand the quality is couple of the model And love location, move.

study, is. this I certainly all Northern continue XXXX, at one what more call a sequencing We And and of is in the top what right of to that the would tier probably figure XXXX. -- obviously, is time. California but That conversions late out of our not

Okay. it's Fair like from, just enough market kind and that other discuss maybe the group classify of highlights out. under if have of some seasonality XX properties if there's curious outperformance that the And bucket. there then I calling worth gears, of you on but hotels you could guess, the switching looks of might there, It to some was understand drove that. anything some curious

I anything don't think there. specific call out to

have the say, Hotel, size in part, areas. given sits relative an I would think that outperformer Creebay bit us, kind I probably there for certainly a mean I there's been those market has for its are little Just believe, [ph] our, I noncore most disproportionate of one would contributor just you've ones they group markets which be, has been also lot they're it's assets and CBD general moderation. that we not in not those seen bit markets, have a leisure of bucket. are because certainly of been -- little But those smaller that somewhat in outperformance outperformed compressed are generally, a in that that to

of kind spot in they're So still. a sweet

Fair enough, thank the time. for you

of Our Crow with Bill questions. proceed next question James. Raymond with from is Please the line your

domestic. But I the I are stay travel? Thanks. a has in decided Thanks other recovery. Good just for their shift permanent morning. Tom, travel had to here sticking months of what's And Japanese or had I'm ago, or there somewhat been about to think basically with read places just going optimistic they they you're traveler, on going around. the wondering

of that restrictions Yen was XXth, history, the on Japanese pretty so, of over the even periods I relaxed been October elimination the remember, a back you and a kind caps. consistent you pretty government I think volatile. visitation has Bill. long years, daily been if last arrival Look, don't there's had mean, XX the think including where

be tie-ins, a Hawaiian added given history, So any given another sensing look, just I at going fourth the Airlines there to the was is there long-term And just all we're not that think, dilution destination. cultural there. to flight today by

the think to and again, about weddings. to a we weddings, about, XXXX, out of comment as starts half lot show made year XXXX but Japanese if excited the those second really you I the of we beyond. improvement, look were And So think

to those and you year. year XXX of back As a single think digit last

optimistic. very, very So

in the that, Despite I levels. up below year, think X% over XXXX continue about and the into see first XX% I the quarter obviously, you we're Honolulu and last seats to air think

look, So you is if and we would Hawaii vast a hope I and in take mean, your look, dig just extraordinary. experience, given obviously, our story

In going that obviously, RevPAR we're -- XX% we've And shrinking terms fully high performance, operation Hawaiian we expect Waikoloa, you we're the least hotel be of work out, mid to the look we Village, Hilton again, and profitable. at increase digit the capacity, more as all-time retooled the at mid-single Hilton at and probably EBITDA. at did,

in for and Japanese of XXXX certainly year And that certainly about we us. begin traveler. So begins, think the will excited earnest XXXX, as look out. tackling, to second are it's back real and optimistic we the in good welcome that see really tailwind half we a but as the blocking We

it. Yes. one I No, you. Sean, for appreciate

I in there you Francisco. would recall but mentioning, question that? Duane be on exchange that is that there I what avoid way you using way hitting don't asked prospective hits any is to keys on to or tax back the hit about think and tax it is gain a some was able earlier San a either the the the special XXXX dividend, the

Yes.

the more a we clear Bill. It's trigger more just is Speakers] to Sorry it $XXX if we special dividend, expect per wouldn't relative is it -- more tax be gain hit [ph] it'd Tom described a made se, million. just what yes, distribution, haven't [Multiple more

Yes.

tax in to basis. a got a You low keep mind, it's it's very -- lot Bill,

significant up gain. with with a if giving a So that, we're we debt, end us

Given shield of we $XXX the we approximately to believe end $XXX million but a requirement about dividend we can still million. NOLs, up with

the the of that in options. Now evaluate context look, you

As agreement we're under a we said, confidentiality right now.

be going the should shareholders' situation the We to all on And We're table, in table. are do best are I and said, they carefully. what's studying as interest. options the reviewing on and

Thank it me. that’s Okay, for you.

you. Okay, no thank

we've I'll At our to reached question-and-answer of for Baltimore the you. time, remarks. back Thank call Okay. this And end closing session. hand Tom

with conferences and Thank seeing to you to at you forward all. visit safe. and travel well the upcoming and today look be It's great all you

This today's will call. conclude

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