Park Hotels & Resorts (PK) 28 Feb 242023 Q4 Earnings call transcript

Greetings, and welcome to the Park Hotels & Resorts Inc. Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Ian Weissman, Senior Vice President of Corporate Strategy. Thank you.

begin. may You

and Resorts operator, Call. to Park the Thank Quarter welcome, and & Fourth Earnings Full Hotels you, everyone, Year XXXX

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

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

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

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

and details update on Financial Park's quarter an on will balance color outlook Francisco XXXX. Additionally, sheet will provide fourth of San Officer; basis hotel. on for Sean Dell'Orto, operating review Executive This with our unless quarter Officer, liquidity our otherwise Tom on and the results a Chief hotel Chief performance Hilton stated, morning, fourth the further presented and a a excluding comparable results, all guidance. will be X comparable and Chairman our additional provide view Baltimore,

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

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

while balance and and as was returns for exceeded strengthened operational our delivering executed shareholders. outstanding welcome, Park goals, our everyone. a meaningfully strategic we for you our sector-leading XXXX sheet total of accomplishments year on objectives, Thank

well performance Denver acceleration core witnessed group broad-based RevPAR in across operational versus as helped demand and as an as XX% urban Boston, in portfolio. Hawaii New nearly our our hotel which of Chicago, strong we drive in to York, of Our growth was XXXX markets, including ongoing strength several

capital our On having the returns iconic well laser-focused the on million we capital, $XXX front, yields. on across above expected highest at allocation invested remain targeting portfolio invested nearly strategically acquisition our returns

also to at public for XX We back advantage net market discount nearly and shares took valuations, value. a between million significant asset XXXX spread in million of buying the private $XXX

million per dividends In returned shareholders or addition, our $XXX operations most we over in the share of totaling from dividends price. X.X% yield $X.XX based of on attractive capital recent share an to with form

markets, made capital The and strong we resilience expected million sell key used travel an with in hotels effective from I'm in in non-core a favorable than also as core million portfolio our year. more a disposition along group X position continuing repositioning backdrop ongoing Prudent leisure the the proceeds $XXX relative of incredibly XXXX. anticipate Francisco this investments our expected last remains $XXX reduce for convention to in San with about the our a target initiative Park. and we create to net our healthier priority portfolio current combined to our debt allocation set-up top by of reinvest with years, the of exit hotels and the X the U.S. over economy, activity with excited achieved

conditions assets until capital strengthen improve. sufficient will balance opportunistically continue we Furthermore, all to sheet by liquidity to extending maintaining our maturities, while market acquire

operations. to Turning

for for our guidance. our am and expectations. full the and growth quarter year or XXXX, increased full year incredibly I results X.X% X.X% year previously basis of we RevPAR midpoint points for higher the exceeded than fourth the As pleased full reported, with both XX quarter the

Creek banquet and an resort food an X% urban RevPAR beverage renovation, into Marina, in spend nearly incremental million increase at by driven fourth Total quarter Excluding in from X% primarily impact respectively. Bonnet growth increased in and was and by in catering quarter. and in EBITDA an the the RevPAR supported $X.X solid increase translating markets, of Casa nearly fourth our impressive and XX%, X% the

group With group revenues up saw while QX X% results. since a revenue first trend the XX% of the past of the sequential fourth throughout quarter results with quarter, accelerating a respect continued we nearly the for year-over-year, over third group, represented to or performance the quarter start XXXX's quarter, the improvement for the comparable pandemic quarterly

remain to demand XXXX, a and to XXXX XX% group in complex very group we year-over-year ahead this exceed Group Orlando, our Creek up paced year, forecasted at expect total to by healthy. material in group revenue levels recently, revenues core pickup produce Bonnet increase across driven with our citywide coupled of to all where San calendars including double-digit expansion Orleans, completed New and space Chicago, markets convention was XXXX. room which nights Diego strong several our expected are meeting Honolulu, in Miami, project of Looking

key Focusing few markets. on a

in to when recovery translated into increase New hotel material demand, in nights supply during York from leisure benefit of room impressive both which combined quarter. with continued nearly X% a since the a and group compression decrease XXXX,

almost York and the a in Midtown out the in RevPAR versus for the history, property's New by the which grew over double the quarterly recorded last notably, XX most Specifically, quarter, revenue year great sellout rounding period nights XX% same highest asset, Hilton year XXXX. our

from lift Hyatt with or XX.X% to XX% up year-over-year Regency quarter helping ADR strong rate above Boston XXXX. better-than-expected delivered also very Hotel benefiting our a demand, group with

portfolio. Turning our to resort

from from improvements RevPAR continued ADR Hawaiian sustained by increased led specifically nights increased Marina and for at Waldorf Creek the demand the XXXX quarter the by Hawaii, domestic primarily RevPAR renovation, Casa Hilton fourth exceeded the room in once disruption Bonnet X%, Excluding by Village, X%, strength. leisure again group over and driven

saw XX% the into by improving level. with domestic Hilton XXXX international particular available XX% X% at XX% our We Village, [indiscernible] quarter available pacing fourth air XX%, strength although and nearly increasing seats by Total below which in quarter, grew seats during over more by the Waikoloa groups increased XXXX up still during RevPAR XXX% several their quarter. were by from demand. [indiscernible] fourth XXXX, group demand achieved than revenues from programs Group the Big during relocating including strong increase over driven exceptionally Island to a

rooms. record Even to by $XX Village, to without Hilton the reported EBITDA Hawaiian $XXX the still million demand, hotels Hilton XXXX benefit fewer while despite having in With international XXXX. recovering XX% XX% [indiscernible] of up over adjusted XXXX [indiscernible], both Village Waikoloa profits XXX

well to incredibly currently adjusted demand to planners our year-over-year versus solid driven XXXX group positive. ahead exceed gains complex ongoing feedback strong revenue resort forecast positioned generate be investments, Orlando EBITDA of forecasted on XXXX facing group strength revenue over the with an XXXX to a by Looking which our by meeting from ahead RevPAR by for and and markets tailwinds XX% has year from pace XXXX is revenue stand been complex, group, over ahead remains markets in the At transient Creek while benefit hotel to convention XXXX, calendar. to of XX%. our record business the books acceleration XX%, ROI Park Bonnet of

we full both tailwinds to expect Casa approximately points full XX%. XXXX, the our lift since of renovation excess in from portfolio. is the and Collectively, forecasted hotel West, up Key to fully XXXX The generate RevPAR rooms in mid-December, year RevPAR property the XXX revenue add its to reopened Creek the XX%. at basis building Bonnet Momentum Marina growth Casa to year books overall At on

healthy by expected we XXXX. resorts material In Hawaii latest visitor arrival exceed growth suggest year, in Hawaii, X to we tourism both increase impacted Honolulu travel, that deliver expected Hawaii to a room anticipate Japan, are Japan, inbound that discuss by the direct Village XXXX XXXX, to Hawaiian Hilton the to RevPAR by hotels Sean levels to year will driven low shortly. this airlift from forecasting phased single-digit increase our domestic throughout year. and in partially another renovations The Between Tourism have is properties, from XX% while improve from the Board strong forecast is

We are both XX% anticipate increased XXXX is over islands to help to XX in support in months. to future should very continue markets XX bullish build for next over on and outlook domestic ongoing demand. strong airlift travel to We should the up Hawaii. Japanese both the domestic

performance both continue to urban with Additional our and XXXX portfolio RevPAR strong includes deliver business across demand on in New York, average transient Denver growth Chicago excess of growth drivers trends group and improve. in Boston, expected to X% as

balance accomplished growth, tailwinds the In recent up meaningfully deliver some ROI and a objectives key solid sheet. to us set we summary, have investments that from improved XXXX,

outlook. our encouraging and supported group Additionally, optimism strong our continued in Hawaii, us urban calendars strength portfolio, business by in momentum in give well-positioned convention

as With on the additional performance Sean, that, further will provide I'd expectations. like to over quarter well as to call on details turn details providing who the first our

we our above Overall, to per $XXX, very adjusted XXXX. was million XX.X%. adjusted were $XXX revenue hotel Tom. was nearly while with million, of was or XX% performance. QX $X.XX. ADR comparable in X% EBITDA hotel $XXX EBITDA with XX% up QX EBITDA FFO $XXX comparable and to adjusted share million, basis XXX comparable Thanks, with QX points was occupancy and $XXX hotel resulting RevPAR was fourth adjusted pleased increasing quarter margin

balance to Turning sheet. the

million at by X debt of over from hotels. we where versus lower the current to approximately stands stood debt a $XXX ago is following effective X.Xx Our Francisco $XXX million liquidity turns $X.X our or year $X.X net including with X.X San EBITDA over billion adjusted billion, to cash, net Hilton under down exit while over currently

upgraded Furthermore, agency's reflects rating single significant BB-. of efforts the metrics. our further to great announce a recently With using million in come balance XX% continue to to by evaluate priorities, or flexibility. to provide that balance including with $XXX years we through a I'm million delighted delever from it sheet shape pending June out asset dedicated company than S&P in strengthen Park This due X X Global sheet corporate to from Hotel's our corporate debt credit balance acknowledgment the $XXX sales for that elevating just credit the marks to options XXXX and bonds sheet X.X% over less and B push while maturing rating from maturities proceeds Overall, advancement our past notches, XXXX. financial is and respect in potential over of our

strategic of in million and our renovation tower XXX to several resort Cigna well Resort the Orleans substantially as the expenditures. room Complex rooms $XXX Waldorf of XX,XXX of in Marina Village, foot completed expansion Riverside renovation the space Turning full-scale capital projects $XX $XX at and our including Creek New Astoria X,XXX rooms at the meeting Hilton. million in as renovation $X Casa renovation Bonnet hotel $XX at million West, XXXX, Hilton the of and complete Hilton Key York Orlando We Hawaiian X,XXX-room Capa at the million tower a complete New renovation room the our square ballroom grand million the

New projects completion few renovate targeted year, XXX in for years nearly total, renovations rooms. projects. $XXX on to including over million for In will will which million XX% the of guest-facing the $XXX be spent all this we In key Riverside, CapEx focused Orleans of nearly keys XXXX, XXX capital ROI main $XXX rooms next we total XXXX, nearly will tower multiphase our Hilton Key in X,XXX million, including targeted which be renovation X/X XXXX. in approximately spend where were areas, with of at

approximately both at while of expected to including rooms balance In Village, of key completed be adding addition, we at nearly where Rainbow this Hawaii our launch will half will renovate be renovations Hawaiian million we spent Tower XX in the with hotels, also in XXXX. XXX the room the Hilton $XX year phase to

also Palace the Village We with in Waikoloa to by is XXXX. keys investment expected the to of half the nearly a Hilton adding also total renovate $XX the plan of million, early completed room for Tower balance XXX-room be at of XX room product

portfolio Hawaii basis for results, nearly Hawaii XX basis in XX drag or points year approximately total RevPAR point expected is a the drag points a placing year. while million margin by on negatively on Renovation XXX portfolio impacting displacement basis performance $X this total to be

of Turning to XX.X% X.X% are million EBITDA guidance XXXX million RevPAR to of establishing to be full $XXX $XXX to EBITDA X.X%, be respect guidance, guidance to per forecasting is we $XXX while to forecast expected of between are in earnings, $X.XX. we hotel or the year-over-year growth and a to and be margin $X.XX year adjusted FFO to With to $XXX share adjusted range between is XX.X%. a

comparisons basis approximately is With property respect year which prior and down will XX basis EBITDA to will points. year's the to impact favorable tax XX negatively year nonrepeating items be midpoint, adjusted other margin margin, by be appeals impacted full points last hotel which at forecast by

an RevPAR XX.X% trends at over quarter first of be The year-over-year or February positive exceptional in has forecast month. relative of points January start up RevPAR growth forecast continued over up to of a and pickup growth had in beginning with X% the XXX the with [indiscernible] to our basis

We with of Denver, gains including across this outsized urban have first driven our the of Orleans while XX% witnessed Chicago, increase performance York, core, the we Hawaii to in year. by months X and RevPAR New solid expect portfolio much New by through

properties for at Additionally, Creek Bonnet Marina February at Casa tailwinds both January up and solid gains results are and [indiscernible] projected XX% renovation RevPAR into XX%, estimates these and translating respectively. with in

which exceptionally comparisons, tougher have performance we especially strong Looking on witnessed ahead the group side, March, to year. last year-over-year

shift additional quarter, March growth growth to balance X.X% is headwind to range in March anticipate Easter Consequently, the low RevPAR While expectations for X.X%. RevPAR performance. out the the an single-digit of currently for calendar QX we yielding to

Turning to dividend. QX the

Given recently translates increase XX% a to declared dividend based over quarterly an quarterly the our outlook levels. which paid of trading we year year, $X.XX yield share positive annualized last per dividend X.X% dividend is recent and on a of the $X.XX for

As top-off year. range adjusted resume an guidance in of our of year, ratio the the to the current This we end our share at translate payout expect concludes we stated targeted XX% the on prepared XX% based would our for which FFO to incremental remarks. last into dividend full per quarter,

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

first from is Floris Our with Instructions] [Operator Compass Van Dijkum question Point.

Pretty, pretty impressive.

at gap results. still look in a I see your million I hotel $XX As this, EBITDA

if keeps levels. exceed -- million, guess, the just XXXX And Just is XXXX touch curious that getting it's essentially levels. as that is asset hotel when think the to that achieve calendar the be EBITDA. despite of because growth I And to possible like within portfolio you Village able your because maybe you it to XXX to that to a X% the 'XX, expect that? could million keeps $XX you on Hawaii distance specifically of relative I it's mark. obviously, going puts disruption gift, EBITDA in -- And giving to year something $XXX within mean, Is touching it over next EBITDA you the

talk So It's it's great. you. always good to with

As you know, there was a lot to unpack there.

noted Hawaii has Let I as me piece, his in Hawaii strong fact think -- phenomenal he as on the year, the despite And a I that if isn't so the you remarks, put, performer. really been prepared Sean last back, XXX,XXX over I think look million. visitors about $X.X and depending about Japanese -- years, last XX on versus -- think it's the traveler

normalized still levels. minus you're below or plus XX% So XX%,

frame. that visitors We as do time XXXX to in think, get that noted, million X.X back we we'll probably

to you've think us. acres, not nothing it you about for there. that XX go had I provide, to So continue There's X Hawaiian Hilton Village. It's like tailwinds towers, When continues luxury. ultra think, generations incredible

the the And got, It's so it Hawaii to [indiscernible]. long history appeals masses. with obviously,

future. So certainly To to in our know your whether $XXX this not I we it think don't special. year, answer next as is or eclipse million. or but year I it's X% whether question it's or

year, in we're said the given to going at we of probably digits As try of we're the our complete year. Rainbow low to prepared that this half looking Tower single remarks, renovation this fact

to additional up were that at side. Tapa an $XX design and construction Mayfield ADR picking the team, from Carl look his renovation. mean I credit you and If we and huge

more, comparable, obviously something Tower. not Rainbow if planning, We expect we'll what at we're do

in we I that Waikoloa EBITDA XXX% it pre-spin, revenue very, had [indiscernible] again, Hilton that per in up Hilton fact we bullish a Village. the which let's $XX,XXX not had But out very So guestroom. are as generating, the inventory look also in half Hawaii, year property, despite last we're forget year, that, has think, group phenomenal

just So phenomenal a it be to continues performer.

that working Village, Our Hilton a operating at our got The team in just strong doing phenomenal conjunction partners management out there. leadership job. and we've asset team Bishop her Debbie Hawaiian with

also we bullish you tower. as very, know, on So [indiscernible] look we're very Hawaii working as And on out.

in replicate out, So we impossible, upside as more to we would emphasize what that there's we and look think Hawaiian or looking also be at does Hawaii not even on timeshare any point, impossible Hilton it at I have own Village. include you're XX,XXX X,XXX -- XX,XXX at the at to that units village. of the at we but site don't more guests And

of the another and asset do Village. iconic truly and we any the EBITDA at there's I'm REIT not generates that of special, Hawaiian sectors is it across So that Hilton kind sure

and hard very proud So grateful work for and there. very bullish the

Now XX% as up interesting think pace, XX% and January, XX%, XX%. about our It's pretty XX%. and up regarding San broad-based, -- just in that up Denver, quarter, we across your group the it's question close February, up Jose the at business if But an you and and our there look as XX%. were noted, was that we that fourth to XX%, group exists. when urban Chicago up [indiscernible] you was out resort gap up you XX%. portfolio fact up others group think we said if about the in January January, take pace up example,

New Orleans, up XX%.

year, fact up the York we year. up finished for New XX% despite last the that XX% and

on and upper So the tailwind you're the of seeing you're come seeing, really also scale. obviously, urban back the group

-- obviously, soften, Sean look we noted, will and for as as we -- look we so March bullish very And out very, portfolio, our but as at beyond. we 'XX

Bank with Asad of question next from America. Dany Our is

will points little XXX the mentioned you guide, be I renovations bit basis adding prepared RevPAR -- to RevPAR. that guys in especially your unpack remarks, like Tom, a just your the to wanted

like that X feels there the touch think just kind it of going to a implying, -- of do about we're decel first the quarter? compared quarter. in first of it like X% we that driving rest the of to what's to the kind the year? that Is So Or you're relative do the into X% how X to conservatism that to

A couple RevPAR. of and clarification, to guidance Dany. X.X% X.X% We're of points

on and X.X strong obviously very a coming midpoint then and of looking were of of about the that obviously, basis you've for February, Admittedly, obviously, about will Creek. at tailwind out. points shift we So is reasons course, will they down. out decel be Casa Easter of the January Bonnet And very, out trends that to pointed of XXX seeing. Group impact. coming we're a March all based in There going got be clearly and the

So don't January there's and yes, a February year. -- make

certainly that. are there's pleased. So we very look, But conservatism into built

I think said seeing you pent-up the are from seeing, obviously, of previously, -- you're out as the we had, now leisure pandemic. demand I coming

that And group beginning obviously, seeing, anyone. momentum. to You're urban surprise shouldn't really gain

keep you take think, Also look in I when New at is portfolio and a York, mind our example. great

X% there. a got reduction in You've supply

we're You've sort got off writing the in of selling a were of city. camp. people We not and that that lot

groups. hotels large X can look at upside, You've large got and not We that only more handle New see less. York

there. tailwind So as particular market in think that incredibly well positioned out. we we look And Obviously, see we're real in we

to And renovation say I of pointed out. part is [indiscernible] the it of headwind the year. will a I'd be year, that's most also would in concentrated in add, also RevPAR which XX we basis Hawaii, back this impact there a of point

about through are back to the impact disproportionate and go the maybe little as the some the clearly more of in going of year impact the think year. part you a around rest conservatism that you -- So as thinking of and

could Got follow I it. just if Got up. it. And then

it, XX of growth incremental bottom it, for like your we RevPAR, HGV hotel flows should from of about the outlook. outlook points the portion total RevPAR like outside the about basis How revenues of is call ahead through think Your let's that that to line? the

balanced. out-of-room let total basis probably say. would revenue from about whole, XX just would on I to an I standpoint say back it's say additional I spend that -- RevPAR me would Yes. say, points, well, the to you XX up a from and or have,

see more banquet a part and little you this banquet got than than outlet and the of catering, You've coming first catering. revenue through flow-through in the might kind year. That's of bit certainly lower

flow-through. cancellation, -- on we're have We a not as counting obviously full which is much

the add from incremental lot a that say RevPAR. on basis I XX count wouldn't balance, point to So more would -- flow-through that XX to flow incremental

question Our Smedes Citi. from next with is Rose

to wanted XXXX ask a about And you're just portfolio? bit I wages broader portfolio? meaningfully you the across talk if those Hawaii, layering for if different in from and in the assumptions for maybe they're specifically, what little expectations about benefits

there Yes. where Smedes, forecast as some negotiations negotiations we we to those be will don't you end. will can certainly imagine, and think want

X% of But really sort think you X% look sort at would wage if inappropriate that, point. anything it forecast I that were be range. last increases beyond this year, to in to of

strong successful our are here We've we partners. something -- beyond very you similar out. we with we I expect and relations think enjoyed, we will. Look, had very and a we as in have think, [indiscernible], I outcome And in would XXXX if look XXXX, got

Okay.

Okay.

we'll on have front. until factored it in what's like that see in your least and So wait information. to X% guidance better But now at for of we X% right kind sounds is that

Yes.

the way, right probably that you in at expenses, probably I we're look at better it think I range. That's look now. overall if to think,

you, I $XXX of Okay. hoping And then mentioned ask range $XXX just to sales million the on can to in execute you million.

in EBITDA either you broadly, that selling absolute Or expect what [indiscernible] dollar I we range? assume about would guidance. of which I is Just should that, or to how not be amount? multiple think sort guess

XX ended nearly small leasehold in one then and of we Yes. asset that south XX to sold of of spin well. year, kind things just -- keep assets the we A since think for have $X billion. Smedes, -- mind. disposed we've or Last interest assets, if another selling couple sale got up disposed you obviously, as

year. have seller. job million a every desperate million. $XXX done not a Morey and an set $XXX We're we've his of team to target certainly So exceptional Tom

We're We'll in it. And So assets. will that look thoughtful confident sell be to we'll able about capital. we recycle ability disciplined. to to our be be

I demonstrate that. to think continue we

projects. recycle playbook were use we'll But really right the back priced asset an We'll we've used been several those reduced to opportunistically be to it mean for that buy ROI the or proceeds, also use back if that leverage, something for could last it's shares. obviously, years. I and buy

other The value is, really would our comment I the that make mind, assets for account XX% XX the top keep about of of in company.

remaining that answer the So of $XXX be frame $XXX a small look would to that it of question of sort million million. your portion directly, kind at, XX% that want XX% to we as you to between if

Our next question with Securities. is from Scholes Truist Patrick

as A propensity are of or types composition out. on have to lack outside little groups. what shipping of but being sounds shifted in groups the related it's -- of room. bit that What propensity, and seen sort far more the are propensity changes and spend these strength groups as it in of you to of color like the What

it's Patrick, Yes, Sean.

started groups you're are and bigger to as we we think, think larger of the pandemic, we groups. naturally out kind small I continuing as one, came the see, gone getting groups thought now in-house I with to for of

San [indiscernible] lot convention are to and the either XX% up our clubhouse in between got favor of of think, now markets talked a up. lot to look our markets with down Orleans at line our about XX%; calenders a so XX% the terms year where about this and in is, kind I being we growth. of also the leader in We've New in other or the XX%; You as D.C., and flat Chicago, is slightly up Diego Honolulu up almost strong up point

think this. across convention I all we're stronger being in much board, again, seeing the So

room So it's certainly blocks think to I leading us. for larger

through remains itself seeing corporate revals strong bigger again, I up. and leads to, they're just this certainly that I year. We're outperforming. And think still think getting

that's the seen think contributed some February. and strength of January I in we've to

So showing leading certainly to and than spend. F&B more that's up better are anticipated, we

the say from getting the I would leading them of size larger. think kind just of I aside characteristics,

kind it back. traditional, you into technology, if of we're getting our success past just traditional out more short-term importantly, the had pickup kind too, what Apple in professional And just it's think more big contributor the a here Bay Tom coming mentioned, in your picking think is as are market groups more the like briefly recently the we've I of the now but the things some had about has in up Area. in been of

a kind see of back then encouraging picking Cupertino, up train together and Cupertino So group place are more it's these like bringing business the bringing been ultimately our some some and firms as kind people to business. coming to San and people extent, Juniper back office think get to to to Jose of short-term technology I and and back normal

this beginning Patrick, to sort thing the natural demand is really they to initially focused side, and but of in was is sense. you also in-house clubhouse broad-based. the need leisure, see back as we're obviously for just on got citywide would pleasing to the people And what's that you're the it and outlined, that's say all in it, Sean be of a we I leader on everything group is to the bring accelerate office, see with Everybody getting -- just it's one thing other the that sort think that here, it -- your group need but the whether And back whether to but expected but side. the you're agree training, together. pent-up seeing being I it people makes together, that's celebration, for

out. we So look as very, very encouraging

with Any 'XX perhaps observations that on give or has question booking follow-up my out. to can how is do you statistics initial this And actually pacing point? at

pace increase -- of in in and with rate, XXXX now levels group as about double-digit would is rate say XX% rate. out just we strong Yes. right I 'XX increase look very near

Say now. XX% right

to versus pace XX%? say that's You clear, pace, for year a be next revenue XXXX, just

Yes.

kind You revenue time base, yes. for look same for out frame of XX% up you're same at time, the XXXX,

next Our Pfennigwerth ISI. Duane is Evercore with question from

if On group last you revenue compare different that books? into year XXXX? expect group try how and generate a on percentage pace, time this that question And to I in What you this does the to way. percentage have it, just is of year wanted revenue to ask the the

to compares say we XX% the we already. to relative would That I the to -- Duane, what relative have is last books have what forecasted forecast, on XX% year.

As first for of XX% right we're you of think booked half first year. for of the what this the expecting we're now, year this half

start. And obviously That's question. It's off longer-term strong super just a to I helpful. then Hawaii, guess, a

I year? the think year. Hawaii past for we should you've commented thinking the about its in like expectations for How in be the entirety

of low said our single for sort We prepared in remarks digits Hawaii.

off got a the coming the Just the the we've obviously, half got in year, -- given as renovation, noted, strong but of year. of back we've Sean obviously,

up we're XX%. Now

well, And but so guide the doing we far, clearly would think that we for single more year. low digits to as about you it's

Kesten Our from Fargo. question with is Wells next Dori

I for 'XX know but what's us be laid your sense year on still give CapEx renovation just deck 'XX considering you we a a of just 'XX? plans, you can out tailwinds. with net And should

asset. on Obviously, that Royal of we're and question. so would our Beach, key team on in great Palm, estate, in another we real a queue Bullseye construction obviously, sort for as working expect we South are -- about design the Tower, working to Hawaii, It's Rainbow finish and tower year, Yes. in began next obviously, certainly transformative that renovation a Miami keys, XXX

Orleans, that renovation out we one continuing adding as another another queue our going is also clearly, look New keys Barbara the there well. but but on the Santa through with partner, the potentially and process, be working entitlement in XX as we're adding

can getting in we're of few think focused the are and what just spending acquisition on we candidly see the and than making assets, that really we laser-focused yields money. -- but benefits the we can already And marketplace. get you money better where really, we're So

Okay. kept Francisco San the former this, apprised how And for on at plans may have point? X but your are I missed you assets this

Dori, question The sorry, up. again, I'm broke you

you the X are for apprised former How being kept on assets? Francisco plans San your

Again, receivers control. in the we have

we reality a are that occasionally in Sean do, they've As or I involved the members the of questions if other reaching courtesy, out can that day-to-day. is that know team not the anything and we're but

think difficult, I very has how all wise economic Francisco Park benefit and no economic and while prudent would risk that, and out, decision -- think we for have that shareholders. given the forward. and We certainly And right decision, very a no I for was San agree our moving played

question Jay next Wedbush Kornreich Securities. from with Our is

follow was jump X% was the quarter the RevPAR XX%, to and on to in strong Just to January start February X%. growth fourth up year. about up the

of by something just you curious what it of kind this all? I'm of is come caused Or And So level surprise foresaw? kind at this stick upward did to start hockey year? the growth

it I surprise. a as see pleasant

increase between and obviously, quarter. I fourth out, quarter. We was pointed about obviously, we fourth in XX%, the saw third XX% As group sequential, think, up

group So we've been would about in -- think obviously and talking expecting urban I begin accelerate. and the all to really

little So in got I February. progression. a of natural terms We and its of think pickup the it's sooner just in a sort acceleration January

of north Orleans Jose, great onetime Apple earlier, But Cupertino got had I and and the San sugar again, up some short-term noted up XX%. of Orleans. in was an some Obviously, Sean As business obviously, had New Look example is noted events event, we a XX%. obviously, of New but bowl you at there.

starting away. So on get that is that relationships, build Again, see to need going business go together, you're the back to those travelers obviously connect never to really really need road. those be that to

is progression. small got certainly that this continue a about we impact, if in portfolio, really, So the average benefit move think And that's long-term our as supply the you fact terms going of given natural and us to to such we've below forward.

since supply been, taking There you're approved out of I XXXX. again, permit the hasn't York, market. a New think,

near about are New and give look we had we another was very, out So very and XX%, gave room close to very XXX,XXX to up almost group we look as very about but a great January, record there. to was just going again, And a us business there look example. nights we Chicago, also encouraged in obviously, tailwind as a at we out, knew citywide additional there, which strong and an York be 'XX there 'XX bullish. strong

So win. it is broad

question Powell from Barclays. next is Our Anthony with

California remaining, and The San that in [indiscernible] your I hotels Sean on guess, guess talked question exposure. Valley Francisco, about Silicon [indiscernible] properties. I a

you're your core hotels portfolio? what seeing are about those talk still And maybe So there? to

urban those I a Yes, I respectfully exposure important that having look, And going a portfolio. be submit that would I'm a really Anthony, that's that showing sure really having or group, going to it's -- have that diversified to groups on would not I Francisco. diversified significant in I'm going and us. only. sustainable focus are I'm leisure those say, to San look, be to think, say, portfolio, it's great X% question. to is benefit

story. be I've obviously, own market elongated again, going that expect I and the to So what to is attractive in X Downtown assets going Francisco think L.A., Cupertino back. as JW do I different, challenging assets to is we and also for this we at pushed as the different evaluate I assets. that the point, Hyatt just Certainly, in out come continue think, not dissimilar that Marriott X continue it's what's complex, we San future. think that They're that, the expect we'll to and happening we Jose and situation, in a and said to about think submarket Centric. Francisco, that, to there, a certainly see hold San about San we

it. Got

think I cooperate, your acquisitions. by talked can the just debt you us also markets? and mean Is leverage on If now? maybe remind equity, capital you that? capital it is what expand ratio markets capital about What target do right you Tom,

like we've Xx. closer be spin we'd the look, to and I Yes. the to said be to to from mean wanted of of kind we X moment Xx certainly that always leveraged

and multiple to up the in net EBITDA get context close something think asset our and to it's markets, really I beginning capital getting value. of rerated stock the

same to unfolds, we'll that explore. We'll but assets. stock I and that underwrite We're see. not to in and that sold appropriate recycling to accretive, be We've continue certainly opportunistically. we and principles, a we're been, I going at there think buy raise. always see dilutive passionate going we on offense are and are one of on do and laser-focused back capital. equity But didn't the leverage. And certainly used time. now. want are back would to but even those reinvest We've to say be situations if to portfolio We've the unique looking think, do year we I'd times, the we anchored worst goals in how reduce the

was and shares of that million shareholders back $XX a was or great for example XX year price last of a buying in inside now, average decision of Right prudent our very at that an view.

Our next question is Jefferies. from with David Katz

-- of your moment? lot We've spread sounds but other days. should from conviction Is the yours. I buy market a like been in bid-ask peers assessment And and the isn't Is what what sources to the you there would a it to have better, these obviously, buy. that think, lot is at hear issue, to underwriting there a of -- market hearing there be love I'd isn't

-- great in of of with is to think enemy But David, Yes. keep decision-making. that talk open I the I also, first all. would it's uncertainty you, mind

think we is waiting I of the over. part what Fed all tightening for, we're cycle believe

open or to obviously, I think looking think rates at or year markets funds in are X we debt and rate X. Fed up. in X, the or I rerate you're whether X that certainly some is the for to is all expect would that continue this point, to expect, people reductions interest certainly it

certainly challenges, out plenty Banks own capital there's particular regulatory capital, credit their private in private of there. got but

at lot done, second to the a of up. there visibility, get think that of albeit as going see half So tremendous pace. that There the open be distress. who getting are there's you'll better believe slower we deals in begin are to a year, But out begin people I you'll

period see, time. there'll GFC back to saw you'll our that side, we'll continue view, of side, we be what think recapitalized. reinvest But of you'll more think and on the in to thoughtful. be my to And We'll need lodging this continue I not is that in see I assets office on portfolio. some probably be the and the in that

Again, generate recycle And between see in we're rating remains that where our if now and given equity we raise there. to -- to look we're price. stock in definitely going we'll not back noticed NAV, -- begin we'll outperformance our right will price continued I mean gap our see higher get shares. can buy hoping and to that share not and the think we're that this we yields trading. we're environment And capital

Crow from James. Our Bill next with Raymond question is

The divest they're a Chicago, X reinvest the [indiscernible] than to trying Ws. product brand, properties? rebuild Do you very because I'm traditional those plans immediate those interested W and type hotels kind either seems the to any or really in different like in it's of properties in have

and brand, about exploring Ws I'll -- make as Look, repositioning. that elevate in question, either move work of those may value as given are with and they're we great think we we support assets. more a ways is certainly reinvent, Marriott soft that. I the if we trying assets sure would forward. options we we will, W stop there. think pure we to a not it's brand actually our But are carefully create And well-located And Yes, and sense And are we the to doing you that to the obviously, what call that discussions most -- there. We're Bill. those X know, but play

I wondering that from wanted away down the to The takes X forward hoping other the ask in you I to things one then what look event your was And you're I'm one Great. or Street about event? Orlando.

before. trading meeting I'm you've right acres. heard Four Bill, renovated a few for the Seasons, then I world-class to and That we're paid million, the fabulous and groups ballroom course. mean groups not multiple accommodate complete prouder Yes, a question. the thousand this resort, [indiscernible] just the $X.X adjacent in now and have XXX hundred Waldorf space layer there to it's the complete And what done above maybe but feet that. in and and say square additional when experience only transformation a magnitude not key, to could not the and which of a over ballroom, to best slightly market. Bill, have the of it, key. golf was I water really a able at see next feet and me asset, to to you be adding over square great for the the event that is we to suspended of work see, ability [indiscernible] million Signia $X.X added CV We're sure XXX,XXX the obviously, a be

good a I pretty we're value. think

we you join think we seeing look hope that hope and So us, to can I take but away, else that's I'd something like and shareholders forward you.

with question next Street Chris Advisors. is Green from Darling Our

high like. guidance. follow-up I one calculate what's question that which confidence in is have the just X% by on just looks low range, the a help Can what at range XXXX you year $XX end, it understand million outcomes? X.X% projecting at gives outlook, When growth and for tight you implied and of I between the relatively I look me expense

outs of, about as kind production the I versus high -- ins elevated and as it. side when think well out-of-room of room a you as going end matter think just through growth of the you that it's happen other various the think on with production

as in QX, lapping adding things as or some points prior well a about to nature more in onetime Xs of call Chicago, a growth for much I you're ultimately, pretty basis you the think think -- of we're we going bunch get our reopening to because to year benefit we're think that expenses as of at the think about fact well which we you revenues. kind year certainly, kind nominally comfortable had lapping, are range. relative lower think about not of we're as feel our prospect. it. of think tax appeal year when quite the Casa don't X% kind mean a I I But in I it's this that cut of last good -- rate expenses that when I think so XXX high about a -- ultimately lower, it, of And I is it run with end higher guidance. you cut generally ultimately, the adjustments

And our Research. is [indiscernible] final Wolfe with from question

me. for one Just

from we Just year quarter be wondering a really of could first helpful. expected if the then 'XX. in full more the It would bit Hawaii dive kind and in to contribution of little your year

Village, I Well, noted, I is performance. portfolio with in mean, lower think out. single broken kind of I as would kind more It's really for Hawaiian line Hawaii. it's digits of say, Tom the

disruption for adjust year. of for expect down we kind year, you of really XX-plus percent the the the it's part back has If Waikoloa that paces in the

disruption. growth think back that, I certainly, expect overall it's Hawaii of digits the and probably see towards And on down as negative -- top But a group year, of drag down. mid-single said, I half more think we it's for a kind it's pattern so the we market. That of a like for Waikoloa

softer the So I first kind up domestically, for little down in [indiscernible] Maui almost would look I market. and the it's seeing forward think we be XX% We XXX% performance Japan while year, thought well. domestically half it's We're as displacement. And that it's performed a that It's Honolulu, half up in first there's we expect for benefits some and It's better coming of short from the think positive certainly the airlines. first up half the bit term, is a year. into of little the Island. it's up picked bit the certainly of into year, airlift bookings really still X% for from in Big

for of we'll good the I So where think feel first we year. pretty kind of about half go the

little [indiscernible] softens of up forward, up just But going I then the kind think 'XX. that pace, up is XX% a is and another if for that Honolulu asked half Hawaii market. back bit is XX% of think the I year somebody about XX%. 'XX Waikoloa in

you get 'XX as here rebound a have these for into to going you're think I So well assets. as

question-and-answer like to session. have over Tom turn for the the remarks. I conference back Baltimore We of end to closing would reached our

of seeing next appreciate time you week. today. taking travels. I all Look you Safe to Conference Citi at the many forward of

This you. today's conclude will Thank conference.

lines your for you participation. time, may You this your and thank disconnect at