Park Hotels & Resorts (PK) 1 Aug 242024 Q2 Earnings call transcript

Greetings, and welcome to Park Hotels & Resorts Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ian Weissman. Thank you.

begin. may You

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

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

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

Please actual recent Park reports by to contained those results refer factors forward-looking which with most XX-K forms specifically risk and differ XX-Q, from those documents to the on the in identify cause the statements. could filed important SEC, that

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

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

Additionally, unless presented a be results otherwise operating basis. hotel stated, will comparable on all

and Officer, Baltimore, additional color you quarter on second This and morning, on Financial results, Park's provide balance will update outlook. guidance Chief our Officer, our will our provide Sean of Chief XXXX performance Tom review Executive on sheet. a update Chairman second and Dell'Orto, full-year our quarter

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

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

for from completed continue benefit RevPAR improve strategies, Park welcome, from our achieved and everyone. It solid we value-enhancing our Thank stronger-than-expected capital another to execute was productive And gains projects. recently you, quarter allocation very ROI our Ian. balance results sheet, as

XXXX, years balance that dispose million no refinancing as second considerable progress debt address our have of with until the June to senior XXXX to extended made the progress leaving notes in and noncore Torrey the Hilton material we of recent over by sale our repositioning to off with sheet, $XXX QX were due quarter efforts further during make past X our We continue assets our made progress Pines. maturities maturities with JV

Francisco Including disposed now hotels since hotels the have sold nearly San receivership, or $X X or off and we spin. XX the billion

repurchased coupled for In and a stock New $XX terms leisure business allocation, in West, significant value. million be group of transient solid by Boston. to markets, Key asset common to capital with net X.X of and improving we urban million York shares performance at our results in and demand Miami, discount trends continue driven Orlando including Operationally, nearly core

XXX% upgrade, West, nearly Marina beverage hotel revenue results quarter at December. increased Casa quarter. throughout on following was record, by second Key same substantially the million food period last last $XX the which several our year, achieved or events reported expanding our the the groups In adding stronger-than-expected resort RevPAR comprehensive highest completed over with and

to the Casa and our or generate in underwriting, $XX hotel million the hotel has initial the extraordinary at completion track exceeded EBITDA has the peak. of with of on above since Performance XXXX excess adjusted in renovation XX% been XXXX

XXXX. rates driven hotel materially increase results by growth the X% reach, the with the remain during XXX that reporting XX% at occupancy, RevPAR expectations, in approximately At beat point quarter, basis a above

revenue outlets, RevPAR In capture, gains improved XX% XX% by the growth wrapped transformative million our the increasing which compounded completion Orlando, while to expansion, spa of driven in by with renovation were the Waldorf $XXX golf year-over-year. benefit Astoria of Bonnet from a reporting during Creek with ancillary in and February, continued rate; quarter, our XX% up complex and increase room

performance, X% capitalizing revenues over with during Signia the incremental nearly the Creek, on of addition Bonnet XX,XXX million last square the solid the was period adding Waterside group growth the $X foot quarter, hotel Ballroom, by same RevPAR At year. the of driven

back Looking nearly ahead, the over XXXX the up group of pace while year, group revenue XXXX up revenue at the half complex is is Bonnet over XX%. Creek XX% pacing

solid witnessed nearly significantly its our also for set rate gains. during the group leisure demand evenly We quarter, Miami, the quarter. and RevPAR reporting in and growth occupancy ] the trends comp [ And Palm outperformed Royal between of with X% hotel split

with compression approximately XX% events the year. days citywide Boston, hotel increase RevPAR same In compression translating a into number Regency the the days Xx reported quarter, XX the over the from during of benefiting for Hyatt of last in during growth the significant quarter, period

improvements Overall, while gains pacing food group hotel XX is in rates and percentage strong points X%; the nearly below Hyatt increased nights approximately spend. Regency quarter, at the by and with RevPAR over We increased with up group which XXXX. the by during XX%, double-digit driven ongoing room to revenue the leisure balance occupancy, XX% year, forecast deliver of beverage over the

In up ] quarter. room of X% X.X% New with during and trends drive growth nights [ the group group increases York, rate helped to quarter, the for solid RevPAR approximately X% of

as solid increasing hotel higher spend addition several anticipated. beverage groups to production, and group also the witnessed revenues, almost XX% In the prior-year than had over food better-than-expected period materially

during X%. at approximately XXX while XXXX; by just basis although year-over-year Hawaii, X.X% daily average increased fell X to approximately by the points challenging as approximately year-over-year hotels faced occupancy RevPAR below comparisons. to our rates decreased quarter XXX points which XX%, basis by Turning

Overall, citywide ]. by year-over-year group a an XX% during impressive quarter Village, calendar at Hawaiian increased the strong Hilton by revenues [ driven

XX%, However, year-over-year Village. transient during Hawaiian in RevPAR Hilton at resulting the decrease in quarter decreased a X% by revenues

U.S. down the arrivals expected, X% were As quarter. during

grew had a the at early Japan expected July. slower than XX-year due to large hit a in continued from we travel in part inbound low Japanese but rate However, which in yen, weakness

expect are will expected next travel we rally which provide the and plan the inbound recent to the of year. monetary support however, encouraged, by tighter a to additional very We policy, Bank adopt yen's over Japan's

remain normalizes from has airlift driven hotel the demand top-performing over is both in U.S., domestic island helped inbound Southwest the markets to O'ahu and limited expanded expected the once among by support Airlines, permanently last supply, the Alaska which and new Overall, to the several increased travel strong Japan years. from to currency

inbound an to the strengthens travel implying U.S. continue will O'ahu's growth a significant outpaced resort Over success, O'ahu's XX nearly U.S. against approximately nearly while play the broader major Japan XXX the last XXX years, upside by has in RevPAR delivering Japan markets other below from ongoing XXXX increase by the basis compound basis yen with XX% as points dollar. in pacing still potential role points, RevPAR. nearly important levels, X.X% exceeding

as In $XX commence renovation of X-year Total Tower along third to Rainbow quarter, million. plan keys the phase we XXX additional rooms, the over investment room next project. being be iconic years added a of XX approximately is X to the part with expected the

balance Looking Hawaiian RevPAR negative year, are we remaining at ahead forecasting X to of the Village quarters. slightly be to growth this Hilton over the

Waikoloa this ] groups Hilton XX% [ Hotel, expectations, which was taking fell with set comprehensive quarter, most our renovations the year. RevPAR to line year-over-year our our was by gap comp a during hotels year in as due on many in At Village revenue down undergo XX% group

down balance Our group level the over year, revenue the a pace on of XX% average. at similar remains

nearly a XX%. is expect XXXX when rebound We group in sharp revenue up pace

expected August of will Village hotel years along renovate the the room is be renovation commence Total with half project. year, to rooms keys $XX next part Tower, X expect nearly when over rooms Palace of in in a comprehensive the the added the to as we Waikoloa also next being renovated balance million. approximately to investment with XX Our the XXX-room of be

total a to a drag year. the expected hotels basis to On renovation account for and and full XXXX, XX earnings a RevPAR million point disruption portfolio-wide New $X rooms on Orleans, for in Hawaii renovation for when headwind both basis, including is our

saw catering XX%. we revenues Turning QX and to to banquet improvement trends, increasing revenue of approximately coupled the group million, with for in with group group strong year-over-year acceleration continued X% portfolio $XXX performance,

year, forward year seeing We strength in well the as are the as the both pickup. for in pace

strong. growth key the a Group continues as is XXXX. over we very our of Group for look remain driver to demand expected to be balance

XX% last Chicago, revenue is when August driven and time and Denver citywide pace of XX%, Group September, up of convention revenue months nearly over with Orlando, pace the respectively, the pace exceptionally to as XX%, by June and while group same QX compared in and nearly XX% up expected year, was strong is Miami. New XX up activity Orleans,

nearly are Chicago in near-record Orleans XXX% year-over-year, markets room to citywide half. and both room and nights And respectively. are have citywide the XXX% convention up second expected New nights

group incremental York, XXXX active, with In million Hawaii. XXX,XXX the with and bookings quarter, room Boston, accounting $XX of for New for portfolio remained also in the the primarily approximately gains up picking for very year, the during nights year concentrated Chicago revenue,

Hawaiian continue ahead, for trends. remain we assumes that which results. to and our leisure supply, moderation limited a and support gains believe Village, very strong, outlook continue solid Hilton profits, slight remain new to driven portfolio confident Lodging while by deliver our will Looking near-term fundamentals corporate healthy demand low well-located both unemployment demand in at healthy we should business

the which pipeline ROI management from strategies. proactive our Additionally, to and we we realize embedded portfolio, value in strategic anticipate through significant our benefiting asset plan

remains relative excess We transient continue evaluating significant redevelopment will well while further international at to XXXX, which across expect yields, to returns both business over urban trends potential and that portfolio of and of ground-up opportunities in billion $X.X are there are demand as our improve. uplift currently acquisition narrow we

joint July we over other with to remain year-to-date, while Pines Additionally, recycling Torrey million sales. capital of asset gross having sale noncore our with pursue active actively we Hilton closed the the proceeds potential in program, $XX expect venture

strategies value. I our executing are long-term internal confident capital remains want our priorities, growth laser-focused will on we create reemphasize shareholder which team allocation to that and

that, Sean. over the With will turn I call to

through quarter and driven the Thanks, increasing X%, approximately in the representing for revenue. at to X% X.X%. Year-to-date QX over increased $XXX, X.X%, increase increased nearly has growth by year-over-year for occupancy by mostly just Total was XX%; with portfolio June, Tom. RevPAR second a RevPAR F&B $XXX. ADR RevPAR of X%

quarter, provided $XXX the EBITDA nearly million, during and not QX that tax hotel our last margin. adjusted guidance property was and a share $X.X million, $XXX adjusted recognized $XXX was Hotel Chicago-based in a per EBITDA million quarter. adjusted the include hotel net Note million results benefit adjusted resulting revenue in was XX% was $X.XX. FFO was EBITDA annual hotels, which included at

the balance sheet. to Turning

$X.X approximately current net ] million just [ currently X.Xx. $XXX EBITDA into debt is And of of a $X.X Our cash. including liquidity ratio is billion, debt-to-adjusted which translates billion, net

existing company's enhance of in maturing include notes $XXX of XXXX facility million XXXX. million in amending quality of X%, our of maturing $XXX to credit consisting coupon We capital issuance term unsecured senior a in debt the with overall sheet, addition unsecured the floating of to senior during the of $XXX continue new balance to QX, a obtaining loan rate million fixed

million, fully from Proceeds the enhances $XXX which were mature to debt while the to scheduled repay new further remaining notes, flexibility. are powder X.X% senior next dry financial used year, our our

you ] XXXX, while to maintaining Village, sheet billion [ near-term options priorities, CMBS to core extending Hawaiian projects portfolio. on ahead near-term for $X.XXX includes which As balance comes sufficient within a we due our liquidity This execute Hilton evaluating look ROI remain committed to November impending maturities. Loan in

annualized increase, million quarter which we million a premium decrease resulting effect our year-over-year went compared improvement year Other X. of of $X to estimated balance nearly program, expectation renewal X% included the XX% our property our very a Overall, an June and in accomplishments during successful of nearly insurance in $X of to our achieved savings a into forecast.

in a incredibly efforts our is accomplishment, of risk testament which a program. I'm best-in-class management establishing to this proud

The as to XX. record dividend our dividend quarterly X.X%, we translates third-quarter levels, to XX, of stockholders full-year covered our on $X.XX well of and is on annualized dividend over cash approved an October paid to yield XX paid July outlook. cash XX, on dividend $X.XX dividend, recent our be of per of trading And July based on a on per of second-quarter Board September share. based Concerning our share,

to XX% our on ratio year. reminder, current top-off of As which, our based XX% dividend the adjusted at in an full-year incremental expect payout the would FFO share, a result to equate per to guidance, end dividend we of

RevPAR representing XXXX at growth points our QX of are below year, $XXX and basis of remainder XX slight full-year X.X%. new growth moderation by expected With for to a a X.X% range midpoint guidance. we to the $XXX, Turning expectations of to RevPAR the lowering slightly forecast to the year-over-year

pipeline. and RevPAR by tailwinds this adjustment, our redevelopment the from of deliver the trends we well company positioned strong Despite believe remains to the growth sector-leading group over solid year, remainder driven

our the narrowing to to than the range of range million, $X.XX change new top representing by while maintaining per FFO growth new the our X.X% full-year by $XXX X% midpoint per to [ to improves to a $XXX guidance our EBITDA adjusted $X.XX line the growth respectively. while share, $X.XX of at Despite ], full-year and share adjusted at year-over-year approximately a of less assumption, are range we midpoint guidance million X%

adjusted the travel impacted $X which inbound by of balance Our factors, trend moderating Village based including will Hilton adjustments performance our EBITDA will given weaker-than-expected drag a the be quarter, account we the to of while the the half are during Hawaiian for number expect the back over of a continue Resort guidance to Hilton approximately of of year. on Japan Torrey from into second at year, also O'ahu; earnings over million sale Pines,

benefit the million more positive the renewal, adjustments. account as that in from not account for in insurance a which Hilton Oakland will Partially offsetting is is collectively headwinds property to discussed close as quarter. QX $X Hotel, guidance roughly Chicago property scheduled favorable for Please the well these which does tax recognized exit previously third eventual the note of

hotel to our increasing margin, basis range Finally, up to by points or XX forecast points XX are basis with midpoint we XX.X% respect XX the basis XX.X% points adjusted down to versus of EBITDA a XXXX. to at new

last tax margin during QX relief year. adjusted As impacted and the of hotel a we of million $X will reminder, be recognized lapping negatively from our QX grants EBITDA growth property benefit

our remarks. This prepared concludes

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

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

Obviously, to So back pretty more you Key redevelopments pay little about want in allocation. bit some attractive a West that you've Orlando. as and to on could talk within capital expand got I a bit seeing or quick little period tend maybe we're a if

You've bought stock. back some

of other thing bit you -- the little could a that potential sales. if asset your if terms expand in we Maybe on could more

I What we some on before year-end. proceeds spent buybacks? will could redevelopments think you expect? And said where be think in the you've could hotels do noncore be sold past, between and

Floris. questions, great All

to our operators model. work to Let me to of the our priority about sort reimagine and is operational achieve obviously just XXXX start first really excellence. we and as us targets, think for with operational guidance operating It's our and continue really the with

the dispose more I And progress of want point set sort can out, and we've sell year to that of continuing or right, think assets. we're how so made lot be a a off I of each good anchored there. really you're we business efficient, thinking we goal to about there, noncore

point, disposed to prepared assets back billion. include we the think $X sold XX does That now. of remarks, you noted or at we not Oakland this If that that's have about but

to hard incredibly worked the has team the reshape portfolio. So

of about the company. We that assets top value have really said for account our XX XX%

to whether that easily our a other hotels story, XX to there. venture it's of Each we own Investment a their we team, XX working our tax recycle by another progress them But capital. joint Tom has basis, or off make are partner Chief are to there's Officer; its continue tails that as challenges. So low actively led Morey, looking

a target million set million. $XXX to also $XXX this of We year

those then seen be for against proceeds into will do back that between confident progress really a the balance are us past. in It make that's our as the think priority we use goals. significant portfolio. And those reinvesting we'll We key us. We will you've a

minus. at Bonnet for extraordinary the the Signia on going year. the oceanfront. already plus Casa. We've Creek, probably Creek obviously, Ballroom, Casa days year of busy Bonnet all first that in this XXX%, its we opened already restaurant. RevPAR a then had the or year be excess finishes seen, success and Dorado XXX You've The Casa in is probably the also Waterside to bar, opening the already

And exists are to just talent the within future. that we the those those high team. the obviously So as priorities look remain for examples really of us great

We to proceeds pay debt. will also using down be

be year. million return off estimated this so sheet million about this then we and year. through will very and returned last has to opportunities dividends. We tracking improved a far share in pay to continue Our balance seek dividend capital capital to as $XXX And significantly, feel top but We're well off, and that. year including mentioned, Sean of probably $XXX good our north buybacks

at we're we're our it multiple. makes invest absurd today are multiples sub-XX a better But play back to to on when is at laser do buying we like not a We be levels, allocator. stock, into focused now. out continuing really think trading portfolio back particularly as We think be disciplined right and capital high buy sense at the

highest in we of applaud we've believe, show many, think So and many to really -- best continued discipline that's and really kind investors the generally, that I that think use I for years.

very follow-up for can one debt Maybe the Sean. CMBS I some options on have the on of know if Hawaiian I early, refinancing if you share for ideas can but it's Village.

at A institutional a markets the A few certainly, loan over We've of to Floris, successfully did it's other or the certainly years loans, B. is Yes, who markets. million to look were there very accessed whether taking obviously term the We us. We certainly done Certainly, have options we available with out we've that $XXX the term supportive. the us, efforts term available the loan to bond banks, have debt last expand that. positives the

capital being access that out demonstrated is, well which as the we them So scarce, repaid think I can still despite, market since of coming I around we discussions we think, bank think pandemic. I

also I wouldn't I that asset, have an another is plus look We'll those to just at looking billion option. So on certainly -- out we're $X necessarily want rule all and but it options. outstanding either. the don't CMBS of repeat at kinds as

So today, we a We're We're and at the of we as it. sensitive us. as getting that certainly options obviously, number next maturity to in available pricing at year. it have to 'XX up looking look ahead the of comes

months to So progress color we how attack have the several kind as as want more next of you'll over we to it.

Our from Citi. Smedes next Rose comes with question

I things. couple to of a just ask wanted

may it lower also a between at is guidance? running in midpoint have, that EBITDA EBITDA for the and your guidance, Just million benefits maintaining the on like you the help your of and I was like loss? will something then seemed So support $X.X factored But it the credit tax expenses. of because Oakland closing guess, insurance be that sounds there

Yes, Smedes.

So just to the to equates Chicago the It's million. for kind $X insurance remainder to year, to $X get about, million that on clarify, and and $X in million Chicago the property million. tax call it, rounded credit insurance $X really the on of of benefit the

on Oakland guidance, our Oakland, it The when mentioned, on sorry, certainly as headwind for depending I'm us, a trailing basis, $X we not a potential closes. million. in as is -- more lost we noted, asset, tailwind a than

So as feel that think tailwind for kind into quarter's you the of I But a of we of us. of assessing comfortable a kind can worth probably kind out back potential there. risk

the Orlando levels. markets performing made, despite being Key assets, well the spending there I Clearly, a those demonstrating those we've below markets we from actually standpoint. leisure a [ down, Hawaii markets being from and think, performing like is in noted West, we're there leisure other XXXX share investments risk certainly out of that, ] from lot those chief On strength

good. the healthy, And welcome has also say has kind thus and held since individual strong Group a year. I'd been business at feel trend, forecasted, we surprise even IBT, far. of we relative the year-to-date, to of what beginning up So

even I forward. have forecasted, also think these risk little again, that leisure benefits, offset more So that other of out a some the on we risk there's But might potential the going on think there we components we side. that,

we about where at are XX we So feel good ] midpoint. [ X

balance quarter. about on the versus the quarter? maybe the Could you're I I the that of you fourth think the share can year? second talked you And the through third quarter that for kind ranges of growth RevPAR that of call, think Okay. about maybe for first ranges you thinking speak quarter to

Yes.

there's know. we of obviously, there, lot I Smedes, uncertainty, think, think got, I a look, out And you've the all geopolitical.

consumer rates. feeling You've will got, Fed the more Obviously, begin certainly the ease to stress. on is obviously,

So pretty that. we RevPAR don't obviously, ignore that and Hence, top were thoughtful our the we about reason lowering, want guidance. end to the raising of

the And having of that do story the up that, third strong. is Park. really really And is components a I XX%. quarter there We're compelling pace the group for expecting to said think be that are

think XX%. about as example, If north up September pace XX%. August in of group you already, an group around August pace,

probably XXX,XXX months. just rooms those about So that's X in

at up look of you XX%, group XX%. up up north about New up about If Orleans, Creek Denver Bonnet about pace is XX%, Chicago XX%.

really So great us. a that provides for tailwind

and said, range sort we had backtrack. And of to gave a quarter last

low a So reasonably the something this We digits is range it tracking we're in about time. very any specific quarter. numbers. I range feel But is to hesitant things we mid-single but give feel that how good third comfortable to are for to with certainly, want this give probably, quarter. don't And enough probably

question Pfennigwerth next Evercore. with Duane from Our comes

disclosed you've So headwind RevPAR renovations this earnings and year. from to the

I views or was early million RevPAR bps on to think it thinking headwinds EBITDA. and about renovation Any you're to XXXX? in how displacement $X XX

this statement. worked too other to would story. early the a make it's little and be look, the not global construction team I Sean than to say, really probably Yes. hard I and

we've So this we've as New in Tower, we've about, EBITDA, obviously, million we of we about And XX points and try the where confident Orleans, be very, disruption and in thoughtful. got year, got very Tower, communicated. Palace Rainbow think we're to basis RevPAR obviously, $X about got,

always to be XXX points. We basis want under

couldn't of then, big a more that. be New we'll we what second and Next and Tower. of really then, about next call, course, work little obviously, Palm, year, our would have will and Orleans Royal the in have both which of we Rainbow Palace more course, transformation, And we'll be phases excited

windows that seamlessly the of work think contractors out really renovate, time hand to the and are have figure have and team demonstrated time construction led by design We and our management a we've to and on in we've best success, again. lined site, Carl And really asset best-in-class. Mayfield, had up. lot and materials Our glove team, I

So I us work principle in that than seen a don't to better those sector the really anybody guiding basis we us. keep that disruption want XXX statement. with would than, really than certainly other and to that for say there we'll more look, hard that points under as But anything team agree think, renovations. how of this isn't in handle those Orlando, I have you really And that

And maybe just market and now the begun Why thoughts surged thinks floor than year. normal on this that Village in that you have other is on do Hilton normalize? team think Why beyond asset? that is higher the Hawaiian asset new different how and the to about that markets

of from -- XXX we visitation million quarter, X.X We drag year basis all on A know, we the on about travel. QX about Hawaii. year. obviously, islands. surcharges RevPAR about into had historically for of second the Yes. And the into couple reasons were last weakening Obviously, we Hawaii, has Japan XXX,XXX points began yen, on things the been the the

that XXX,XXX about year, XXX,XXX, 'XX. trending to this right that, calendar XXX,XXX We about approximately. like Looks now be at expected year it's would in

lower. still of up XX% last So below XX% It's pre-pandemic. about still XX% to year, about sort of but sort

XX and of north to don't given the Bank if can for have say, you moving with that policy monetary been look demand, beginning So and strong of adjust today Hawaii change. obviously years Japanese to right and in pent-up and we to if direction visitors get expect consistently the more. we And the anything, Japan that

just we it elongated. So think gets

been XX we years to be -- over when don't the add But add near that market the remain change. steadfast. we the back if you see think conditions 'XX, really, our probably pre-pandemic just new in -- thought stats And can supply. gets change we extended. that that impossible we we'd that Obviously, impossible some strongest has financial prepared changing, of Hawaii it last to about the in gave remarks slightly

XX obviously, just position, oceanfront. We've a fortress got acres

citizen ] there [ a X of been great adding excited there, on couldn't working with which about, we are stakeholders. tower partner all a corporate and more We our long-term be have and

we on and And Hilton so ] very, Village term. long Hawaiian bullish are very Hawaii [

Hilton hotel the to than the same remind and somewhere keys key, and X,XXX-room way candidly feel as key. continues probably did EBITDA the surge. about Island And to additional to Big as in EBITDA hotel add per today And generate there, $XX,XXX more listeners, the Waikoloa, a we XXX a opportunity we a XXX-room

bullish very, This short-term very So is on Hawaii. a blip.

If occupancy you now, think think, Hawaiian Village XX%. is, think Hilton I about at July, month-to-day about I at just Waikoloa, our running right Hilton XX%; we're

with preferred strongly So we of concerns Hawaii destination, July. being in a we not to certainly any would And disagree that. continue that see

of There's original some But not year, around pace XX% obviously, next that, looking part pace about on group unexpected you're of balance forecast. group side. in That Waikoloa softening, going at our to Obviously, year, be down will this the XXs, XX%. the year. Hilton is the be low up we for think,

rebounds So it quickly.

Hawaiian Hilton Southwest, And Airlines. Village, obviously Alaskan benefits it

tend that traveler the markets, other huge little a to there's We spend and different resort very in it's bit rate. more. don't They stay have back. longer So it moderating, had of than Japanese but hasn't increase

have we're, we and I environment also weddings just big think, that of to used a We wedding a be that. year, a XXX fraction

So there's intermediate good a over lot and of really, really things term. long the

So I the get stop message. think but there, you I'll

BMO next Markets. from Our Aryeh Capital with Klein comes question

XQ the then Within the about terms you was the of And all portfolio? the shortfall. basis that of half how second effectively basis versus Hawaii? XXX of accounting Is points parse for rest was [ points ] out QX, in lowered can XX the Hawaii in RevPAR low year, the much when of RevPAR

about talked Tom, into I second macro. also guess the But that around what consumer uncertain underpins factored and are half the expectations. you the that is group extent pace things some outlook? that To the

of portion I strong in from QX of key kind what side, on to we continuation of mean, pace the in bit say of April say in [ ] Hawaii. kind lot backdrop saw as ones Yes. was New of a certainly Orleans, saw second little good I quarter they're quarter. most group would don't transient the a a a I We through would well the have

softness terms So -- there. key part some it's certainly in most of contributors those for of the versus are say kind But for I'd QX. the expectations

I Yes. up I points X. Aryeh, keep of think, we X% And at that. range to Sean's gave the the a in other But we time, with XXX last quarter, ended X%. thing basis were and mind, we to we down point, felt to second in comfortable call, mean,

So you're midpoint. back really to

bit, little softer. a transient Hawaii, a obviously, But was that the issue Hawaii in New little on by the driven largely So second the in side, from standpoint. also quarter big Denver really Orleans.

just kind then what's guide, a and of some, Hawaii half outlook, around RevPAR I macro concerns consumer? given guess, the the outside in the And implied second

tailwind probably north we the lot do there's remember, sort transformation listen, looking XX% we're be at points out Well, third XXX and unique acknowledge, we're to pollyannish we of started RevPARs of uncertainty and think watching and about had want position at from Creek because of not a carefully. and as bounded don't Casa. quarter. we're think I basis there, Yes. we a the as the and Bonnet of But you also year, in that in Bonnet,

QX, or in XX% looks in XX%, good, more increase digits. Europe, double-digit got pace single Orleans, We're group. Chicago, New XX% we've huge Boston up group significantly in there. high the probably you're RevPAR.

group a pace. got things, of we've Denver, very So number strong

softness offset of based look single we're we're Hawaiian digits, that diversity today. the help portfolio, again, low that's the really some Village. still expecting just on seeing our will we given in But So of how Hilton to

macro is So ease being and the the like based No certainly we've well Fed stress think more a them, And up doubt have little that we today. sets are. process. value adjusted conscious. We're watching it to all consumer information hopefully best for I the the and begin that feeling on we to

But with softening we're watching sent see I And you out, which our few of carefully. demand could the during time. recall, were that openly And signal, point we NAREIT certainly at did pretty meetings the think we that that at then I NAREIT. in a one And bit. as little we to may was

that. We're not seeing

is July running Village the now. running at north XX%. That's looking Hawaiian we're said, rooms, occupancy in I right of now As X,XXX -- and XX% right we're

with next Jefferies. is Katz David question Our from

Good to to you. talk

in be go they sort form from back, on it the creates potentially could as just anything here? in getting will noncore of possibility it well Xs change be, headwind that versus the be. could it and think assets to I that bites a of the some working this go else and everything appears So wanted Xs focusing and larger the will be done to and and to backdrop, backdrop what do But with as you

you. thank a great it's question, David, and

many had I've one... and No times. this You conversation

have, We admit I it.

of said, on top -- core part focus we've team more assets overhang, women the the really as think the More you will. a one if We focused than men look, Park mini is And the this. no portfolio. are and on there's XX

hard We accelerate to are working that pace.

tax a we we the And duration, the understand lease it that more look, We get -- the of of each But different, it's can we Part whether these challenges, will has it's markets off the there's be better -- we're improving. a optionality. means that is unique sooner do confident and issue, that, some assets debt it. partner. are

And hard. So the message assets to has working me, we're delivered there. make to been progress and are recognize are to every we're It's noncore, these for perfection. looking that We that working hard day, we're delivered. not team and

think see to and some productivity of that. you're continued see evidence going I

on going look, ground security Oakland that, quickly action you're situations a going Losing to We money, waste also here. other into And short-term that. safety, We to like time. great to is lease, undesirable didn't move we're continue example. issues. And market, went where see

happened a and if our a that. Hawaiian about at of data A whole just asset lot lot point, And more And assets is that XX if Hawaii value dispute don't recent think Hilton in core have are is you I you better. trades to you as some do XXx worth? the what that. think The would than Village think trading

Woronka question Deutsche Our Chris comes from next with Bank.

numbers think X if you questions okay. more non-Hawaii first You're Obviously, non-guidance, XXXX, having quarter. the there's do really this on for peak for it kind great relates Key success of rate. on you, I quarter, Tom, Is assets last the is some Or still those one And to coming post-renovation? -- to that's a go? So impressive that through have West.

do still 'XX might legs be you a still think beyond? [indiscernible], But have on I in below and little those be which intentional. might

Doradp really to I it think will about We opened. do, if be Chris. the believe mean open, yet they is has you that bar restaurant, the soon,

Just we and the And in product. design in really team phenomenal construction quality how were credit really our of just now. the renovation, there's and a again, to Carl no were better thoughtful creating We asset in thoughtful. that Mayfield submarket

world-class the the obviously, And with, we a coupled it's peers get repositioning high-end obviously, really group there, then leisure, both having, of group high-end can the redone, -- asset.

to So be continued be there. And going couldn't prouder. and upside we clearly, there's we happier think

it's in even up mean reach, or is example rate gave over that of stats But X%, where XXXX. how minus, an the you XX%, We -- over to performing still of reach we're the today. as I plus -- but

room room So we has cost as and the we plenty think ramp-up got running forward. of move

we then tough great Florida Tom. are having it repositioning. not having Okay. guys results year are It's of you're hear, year the you lot again, and Orlando. keep this there. a results peers this go -- A of great in That's your lot good guess, And with a reasons. market can And for to to I

someone you outperform remember and -- you can year think if remains Orlando. there indications? the market is which being I question, have Similar broader you next any in guys had the from room the I tough, again in do

on But based the that? more bit think I guess, -- come of I might a any on were thoughts optimistic citywides 'XX about they some in. just that the

Orlando. bullish remain Yes, listen, we very in

think attended. XX Orlando destination or and sometimes part XX others you Think gaming presentation States, that doesn't, United most many think forget, and the I visited million I has but -- that's people I visitors, Vegas, million, it's about of you about in minus. Vegas think, plus think, is If that now the about the

to of is record Universal And experiences Epic on spring. Universal I think thing different in other XX more you've acres. XXX opening and keep next is The mind got, in spending $X or billion

going to tailwind as over going next for saying destination. be of certainly well billion record the So $XX on market. invest to to the and tailwind then or another the Disney decade, plus And that's huge a minus, they're is

well very So And amount a of think. -- as again, are course. have, meeting a we we're positioned. encouraged Think championship completely we space we're with very, the golf coupled about renovated resort, then that we and reimagined

So of RevPAR raise the running -- look, to expect continue continue to very be room but Seasons huge formidable there's best is performance a our the in we're a we And market, and there. to the best Four plenty to player. and that market asset going very,

one has no And the we that Waterside Ballroom have.

first that's we it, it's just it, that a witnessed and being optionality XXX you have standpoint. demand the days, the You saw again, And in from operated, year.

we've So we years. got many, many think

some are think the the that a our cash story reinvesting acquisition portfolio. peers, flow I generate of part get better being can the tailwinds of paying We that's our lofty now. yields back are that's passionately Park believe more will And from than we right prices lot what of from and the and that's above demonstrated compelling play additional in

comes with next question Kesten Our from Wells Fargo. Dori

comment? just you I a referring said prepared your was was that Hawaii? Or improve. remarks, in guidance assumes international demand were to portfolio-wide think I checking, specifically you trends

of as Hawaii think I that, outlined, portion a I good is Dori.

We visitors, about tracking XXX,XXX XXX,XXX about be expected into to that's to demand currently coming XXX,XXX. at and Hawaii

in XXX at So Hawaii it's that a basis point quarter. the small drag a is -- second obviously,

we're year. sort walked the for and balance we of what trending we the see And through you of how

that's quickly going year. up the knew we expect, XX% is balance drag. to XX% and is given pretty continue low fact the to probably be again, Hilton the of rebounds that We that, that next XX%, down a year. think is But to group the we But Waikoloa for obviously, pace pace

half looking Palace completing renovation at the of Tower. the obviously We're of

to take of advantage feel as use Waikoloa and that to well period So the look about the it's how we And balance very years. to have versus for obviously going of of and trending thought it. the good as we're year But second into a discussed softening out we quarter that clearly, that bit we've question. raised other for all outlined what the there analysts little with reasons the going out

remainder the understand, or characterization? so year, the portfolio for rest I Park so a But Is assumption improve the is -- fair just the for the a to deceleration and that have a the you domestic for in of inbounds continues as remainder just international outbound. of whole,

Yes. It's fair question, a Dori.

pre-pandemic, [ second, But was you about inbound know I If ] right, step XX this you as as back for stat a look do. you well if million.

to XX last I to overall forecast XX the And XX about in think visitation. the that was million million I XX somewhere million. million year was think

enjoying the particular. the no diverting role There's what a considerable time The otherwise. in success No doubt certainly still international, occurring doubt, the high-end is travel consumer in there there. that that's playing are Olympics people U.S. is to may

that to reasonable So this the given with seems for the at range on time. X.X, of to very that's year. probably guidance comfortable That us, but margin, we've of very we're X.X balance the the

Kornreich comes Our question Securities. with next Jay Wedbush from

guess, see in RevPAR just I consumer? As booking year? just how second that transient you total remained the that out-of-room think And the health RevPAR overall the do performing softness, some half elevated better the it seems of about than despite spend does you make of

from through have -- I in you a Yes, you've end the think what of between you've kind what the side comes trends group I [ seen, the on and first F&B seen spend, has from really think seen and of strength just and the the leisure of exceeded expectations group catering, ] banquets out-of-room the side, transient up year. are for the our XX% certainly ultimately the half which

little outlets group seen shows tightly down it I are spend So the side, bit year-over-year. strength in think we've a by the it's in really supported leisure that that the out-of-room bankrupting,

kind moderation. and leisure is a track would say kind Some of group of strength fundamentally, it of but some does I trends it mix the of shift see we macro

we'll the end, see half we'll spend room to back continue see the I in year, -- relative out-of-room Over on think to of the RevPAR. outperformance some

higher year, So total the we kind I XX overall room XX anticipated basis to than about RevPAR. think of for RevPAR points

year half So I think ] than a better bit into for of room performance kind the that flows of RevPAR. the slightly little [ back

Farley comes question UBS. Robin next from with Our

that like X a the is asset about over the the change of sales, other you interest are else the some Or could months? movement next side think is back or for before see anything do market there you rate circling it's it there or that factors? waiting there you buyer Is of how characterize to cuts Just more kind rate matter that just a would of just cut there?

Robin, great question.

and think, if a lower have on particularly, their cost think rates little environment. and I of think more slightly, a buyers that debt that more reduced lending active is I And I obviously, helps. once comfort certainly candidly, be what can

I going to help sellers. both that's and think buyers

continue been pandemic able subsequent to through had think mean, the every that, advance and we've mean, pandemic. I year, XX we've to to during been and think able I selling sell the to We assets, demonstrate. I international we were noncore.

not sure lot again, international I'm them at -- deals and and each, a issues. more legal venture if had and on a and So and tax of anybody there's hair partners skilled these joint

you'll continue remains It top here year. put see us. high, balance a the priority of points the it. on hard board working we're us show on And for the So activity for to additional and

would are you -- through about we there do as maybe you about talked of at think the get about of do the in they're what -- sense you what's couple as all get the debt follow-up. and if think buyers consumer these happening do you the rates Or right of asset in their cost interest that. are long-term other because means there In sense investors consumer interest for the equity happen buyers still they're they of you think with buyers? Like property? just all are potential one and that you do performance sort quarters look get -- the concerned words, and are whatever EBITDA cuts, rate Do all your with conversations And now? of worried things the maybe potential the might buyers, next

another question. Yes, great it's

per buyer. that's had basis is the answer hold, private the the Obviously, got pound buy past. they through well. think some I think pound I XX-year X quite a and a and in to on depending look shop near-term noise or equity equity to or it's platform private I really on X the probably a X- can of If by a do

So I that. certainly understand

or owner well looking offices family operators through. be think I also as can could

enemy is of the decision-making. Uncertainty

probably clarity that's the we obviously, of you've for Fed a the one the being geopolitical, waiting people issues more if get that to got Fed you've begin So got election; important the additional and easing pending are process.

we'll I all not, will likely think see. that And I think but looks more as than certainly it forward. move help we

discussions active. in of frequent all with buyers types. are We We're

good going to lot pretty also So I forward. and We're demonstrated we We as we've think core we've gives it reshape and to it core. of of get company, with going got off pulse sold us the and grow. clean is continue a or this to again, disposed time on optionality XX assets, up think is we've in. portfolio to and it value move as back said, and its that a portfolio Look, time I list that the

Green question with from comes Chris Next Street. Darling

more think additive? you Going Casino do incrementally and going Orleans, could you the Do Caesars reopening Hilton a on perhaps Riverside? potential New be just have impact forward a the view or of meaningful tailwind to on back that the the

additive. that group, or about plus XX% hotel think incrementally I is more it's Look, minus. probably

positive certainly from think So an additional it's for group transient get, we a additive the I that destination. getting standpoint, incremental could

market, leisure really positive. Heel New I always it's where It's Orleans, demand. obviously, net good on has been But has a Achilles' always a been been corporate a solid think the convention market. very it's

the got million X additional in feet business. and acres there X think not We And we've gaming of square we're additional again, for FAR. it us. be will do incrementally Look, positive

positioning our going that be can clearly, think, the Orleans. we So value intermediate there New over And to a and significant term, we realized. like certainly be there's in long

with at there's those it that incrementally more an portfolio. All maybe you of near-term Or of in but noncore Oakland position are the thoughts. opportunity in just cases? than a a more maturities. about ground for leases, small certain focused on the portfolio, dispositions so relatively you probably thinking on one acquire extend other Are course, you is piece then fee of portfolio? it's kind there terms the to lease properties some helpful the of that? right, all like And Recognize Park, of of handful Hilton

question. options Look, are great Chris, all the table. on

shareholders have the the off JV, create and entities for on partners, issues, most And all We quickly you XX the we of as we've have the domestic, different possible. move international that think that all again laser-focused the we with all those a value lot as what can back ports, what and to can so disposed experience. we're dealt

on to progress. going the see there activity so and see And us make put points continue and to board real you're

end comments. the over to the session. call like question-and-answer closing We've Baltimore back reached I'd the of to turn now Tom for

to you seeing We really and the everybody hope you I beyond. a great time September have summer. in and at the various of taking appreciate And conferences today, look forward remainder

conference. concludes today's This

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