InterContinental Hotels (IHG) 10 Aug 212021 Q2 Earnings call transcript

Hello, everyone, and welcome to the IHG Interim Results to the 30th of June 2021. My name is Brika, and I'll be the event specialist running today's call. [Operator Instructions]. And I will now hand over to our host, Stuart Ford, to begin.

So Stuart, please go ahead, when you're ready.

much. very Thanks

this everyone, Chief the morning, Ford, to conference of and I'm IHG's of Group Barr, So Executive Strategy. Officer Chief half and and results for Officer; joined and IHG, first Relations Edgecliffe-Johnson, Stuart by of call Keith Investor our our good Paul at welcome morning Financial XXXX. Head Head I'm Group

forward-looking defined discussions under remind SEC on could law. and forward-looking the today, the the in differ to statements. listeners in certain announcement company actual from to lead refer Just statements filings do those or that as U.S. Please morning's such that to expressed make may by call implied results materially for this factors company's the any

together or details listening ihgplc.com. and Results can and the are release, hand the of analysts under Investors the Page those you via in to release. presentation section who that, the from investors supplementary on remind I'll the I need Keith. tab the data ask institutional using on website, can over will in now order questions, downloaded presentations that you That X RNS with With pack dial our be to For to usual

how loyalty making the has cost done of guest the morning, from good down relative are travel to of progressively been reservation felt, half. everything This performance, you growth positioning And portfolio, really are world are our through restrictions our but impact In big still, but and succeed global lot XXXX, industry from we to as recovering moment, we the July. second demand our everyone. our that we IHG a made and in new recovers around base. Stuart, confident highlights biggest with more environment course, We'll been Building shortly, to about as Paul in there's the Concerto they February, XX% Thanks, a is RevPAR significant improving. investments in in U.S. to clear financial in some sustained IHG share at detail quarter first, a improve. we've has In will enhancements on markets things The the place and plans on key and about talk for work be economics this being let into owner growth about brand set sure me the and on we've some accelerate but pandemic. system, of with and when talk China. the the look this like Greater our in our improvement

and Some owners Domestic confidence locations flights are giving at great business up This is and starting destinations is and back. confidence giving demand. occupancy. massive us record too. in corporate group filling come Resort are to our are it's

during is our investing announced these now, X to of than take On last you'll and almost review flat of the in a that progress a making about Crowne continue There we take In signings consistency terms results. today have steps But net owners day including rate. rapid the we portfolio for the transitional those as a number of of from on by Plaza into said the last brand up growth our little year we portfolio in we've over X/X of on many net huge weeks. our enterprise from with our size investment underpins protecting X% in growth, a basis, me as keep removals XX% first XXXX critical year-on-year. XXX focus And talk estate, XXX And the of half Paul previously, year. We're you business, new in Holiday be year. higher-than-average also hotels system elements detail net we on and on. the were onwards. I'll with it brand Luxury up and a a total, quality size of gross we on the & in our half. year our collection excellent each hotels, in supported more that Lifestyle XXX focus well, in to by It's On and as openings, launch more next the the around later properties. accelerating hand big which across of coming through on a Inn to our the let financial for forward half growth seen plan a a system amount grew was to that basis, system for brand

and you, Keith, everyone. good Thank morning,

reporting we million cash expected. Fund, including to decreased loss million track Starting from You'll results cost-saving my I'll and change to $XX focus the In Adjusted throughout operating higher. on comparing to as our benefit that operating revenue reportable $XXX fund interest, with gross are million central million, a although System lower, performances profit business. we XXXX decreased Underlying driven materials, and in but relating the reduction. the as both from see profit effect comments sustainable against net increased the the $XX business operations and debt remains to implemented the latter is on reflects the performance both operating deliver million. reduced meaningful. XX% decreased the and our that charges XX% million our weaker This $XX comparison system of headline gross segments. are by $XXX debt Revenue by decreased as mix year, XX%, and usual XX% fee overhead, driven program is XXXX, and $X to to it managed last from most the the net adverse which

in year. performance low the an Our In against XX% of for area cents to We $X.XXX, up challenging. this per mid- last range, the estimate the time elevated strongly this XX%. share full tax in $X.XXX XX% down forecasting the half rate earnings tax remained resulted be will in adjusted although from interim this effective the first effective although XXXX, of year at aggregate, remains has rate

in our with Turning owned, closed. percentage the of in group our now to XX%. XXXX. declined XX% by $XX down in occupancy business This first a and RevPAR which XX fee continues around an XX%. rate managed sensitivity, performed in on points, with This adverse significantly starting the basis, million The RevPAR impacted key impact RevPAR We're bit our which decline movement markets performance of movement was to a The are variance lease small contributed some world includes estate better of XXXX in sensitivities, XX% in $XX drivers down restrictions the estate in performance. X% that RevPAR to against than now better million. EBIT resulted a half by trending improvements impact was were Group hotels which the see which from declining leased the per comparable RevPAR. to temporarily

in a half. our million calculated before is delivered in XXXX XXXX $XX first sensitivity majority As been having with RevPAR referring cost the versus reminder, the savings, the of and is

added During to the we system. rooms first year, XX,XXX of half the our

more Plaza planned of health long-term the size which and the and in brought focus I'll on to XX,XXX of the which in EMEAA rooms, continued and X.X% estates XX,XXX brands talk detail system in to net Americas basis the a quality X.X% Holiday related on later. These our additions removal removals or Our versus Crowne about and growth up XXXX. regions, resulted established of Inn year-on-year

total growth available RevPAR usual rooms found summary be can basis and appendix. of total the Our an underlying on in

RevPAR of impact of the half. number drivers from restrictions the saw QX Turning now our first performance in to our in markets. government-mandated a key continued

revenue down vaccination more and June, and XXXX the the resort it recent our see seen to and from easing This March, hotels. reflects the monthly in continued XX% management July above encouraging XX points. sophistication our only our rates with of percentage reflecting rates achieving on XXXX we've rate back However, tools and rates impact par RevPAR rollouts was By XX% to levels. of mix both sequential and of occupancy Occupancy levels And nearly at weeks, to hotels improvements improve XXXX. saw of in the restrictions. and from leisure occupancy

the X% ahead RevPAR in the driven of U.S., was locations, domestic X% by recovery market. XXXX. represent the quarter In which leisure recovery with around led of resort second the Our Americas estate,

unsurprisingly XX%. nonurban hotels through In franchise Holiday with owing half was we progress X,XXX being Americas. that outperformed in X,XXX Americas which Inn family, U.S. the U.K. relationship strong RevPAR weighted locations, operating to mid-scale I performances China, brand good as XX% down cost than and RevPAR estate, markets were business XX% In second Our was pipeline that XX% restrictions recovery signed dominated in the taking these estate such opened Australia will of eased fee This by Starting Americas each down XX%. the around Americas more represent And Underlying leisure-orientated for the savings. reflects rooms versus which X,XXX led of with as RevPAR from EMEAA, the XX%. the and to those are which well regional together of by as rooms. further fee and down on take the detail. to XXXX, and largely to mid-May our resort East. was and mid-scale and X U.S. with quarter, quarter, was with improved from X/X was you Greater domestic urban Middle market. properties Tier strong the upper XXXX down rooms, profit of markets domestic is strongly now these down across locations, franchised the demand. We the underlying in revenue our second benefited XX,XXX levels in more ahead of a

accelerate level. more at leisure travelers the has particularly business and where corporate to rapidly, group resilient start in been past mix few started relatively activity return. meetings the and XXXX from to months, been the and has has quarter year detail. demand in last Looking last Demand over as Leisure recovered demand more have to close our business in

East, quarter loss the Moving RevPAR XX%, international where with second U.K. in operating half, down XX% was down from resulted in declined across XX% the million. XX% XX%. Southeast the to restrictions mid-May reduction travel in a $XX as the XX now with and onwards. and XX% fee to underlying leisure levels profit of fared lower in and Government-mandated million Africa, Asia respectively, RevPAR second The in down revenue million Continental second $X was Asia Underlying down permitted quarter. Europe, quarter to by of Middle was travel a fee better Europe

further a X,XXX we A to Looking the rooms Holiday which signings X,XXX of rooms, development X,XXX X,XXX Inn pipeline. strong added in at removed Plaza rooms environment, briefly pickup opened in and the saw properties. were Crowne around half and our

had operating XX,XXX demand upscale underlying and Turning to and quarter, for combined resort XX% open was a Tier pipeline, to by million increase travel. hotels hotels fee and their pickup down and the Greater and international XX% luxury quarter, with X China, down income. travel. was and lower X% pipeline further added where now half very incentive the for region's from of of to reflecting X domestic X,XXX reflecting to strong second million, $X impacted $XX XX% X X,XXX greater cities bringing mix their Underlying second leisure opened over weighting the the of a and signings properties. RevPAR cities XX%, quarter. greater RevPAR period our We second half for the rooms the XX% down saw inbound and in to in to down Tier management in destination revenue was the rooms profit were

progress to February Americas these year, working as below we would them where property with brands Moving satisfaction rooms in been closely as identified the the such those Inn which Plaza regions. hotels be like hotels exited areas first to conditions. half EMEAA in and in and we XXX X We've of made around the In for the and XX on customer the of at XX,XXX Crowne look announced properties. or with were Holiday being review

over addition, In XX were hotels, they whereby agreed in plans with system. stay the improvement will

combined of the year. help estate We year. to From this further with continued investments review the per expect focus made rate remainder by on this will end removals hotel was quality. an Holiday Within owners to XXXX of the and conclusion review X.X% led to our across have the the the quality EMEAA year. of average higher a by date of Inn remainder completed in the drive X.X% consistency at XXXX, the Americas Plaza significant of X.X% and the this, estate rate the and at to The estates Crowne and removals in of

expect, across review, falling the X.X%. see line Plaza removal back a underlying lower Crowne estate to average post in completion of exits with around Holiday the our We rate of Inn and rate with

Turning spent spend last We year. $XX year, now higher in at offices. half million. to hotels net of of $XX and We CapEx was gross CapEx Maintenance the $X lower second million and expenditure CapEx. than corporate given the CapEx anticipate reduced of million

We key in also the expect increase to second money half.

On Fund, given lowered lower, is now of $XX stages million. CapEx is the depreciation System net by latter projects, CapEx GRS the combined, higher and which, spend

annum. Our at gross medium-term million unchanged remains per up guidance $XXX to

annum. per over and medium capital We term, our the net resulted System recyclable investment expect of to net to million X in CapEx Fund $XXX investments

cash the $XXX the first $XX an cash Moving half year. flow. an flow free last compared on in now million saw outflow to adjusted first of half, of our inflow million to In

cash million unchanged. to rate, net context, In to which an our inflow, our of movement $XX net that uses debt. a Our exchange adverse included cash strategy remain reduction for led

first reinvest growth. to is to Our focus drive

Secondly, progressive dividend. a ordinary pay generate sufficient funds to we want to

rate seen strongly well now in dividend Lastly, highly truly rebounding, sustainable hand first of with confident substantial will to and this which in we cash-generative We've made of available business to significant our cost return I'll combined This and are we you where RevPAR With surplus, structural course. will returning profitability growth, a for the trading year, and there to and us Keith. of nature positioned shareholders, we have Thank the previously that as system lower resumption the we is leading our growth. proven during well removal, openings back you, long-term cash for the further we half improve of system signings is are model recovery base, due improvement payments and allow profitability. to positions reductions significantly further demonstrated.

demand Thanks, time Paul. how some guests our as supporting at are spend returns. industry our and I'd looking like to owners we and

seeing Paul good activity. leisure As around domestic positive over demand signs mentioned, group's of returning forward-booking demand and strong we're indicators and the corporate with summer recovery in

under trend through control vaccinations see where breeds the at out coming You this can pace. more and good are wherever Confidence virus is confidence. rolling

about their more next to As start people travel, trip. more consumers think

face-to-face. more working, to or businesses their how turn As about together to hybrid bring to think teams meet clients

all hotel a is strongly in on markets we the there the yet of go more through and our doors perform this banks As with focused can and see We case in can owners we're this and owners in months having were our our the the of of few start And back. the conversations they guests way hotels, us. are thoughts turn more and their out and for to sure opening to head easier making growth to markets teams new where than hotels have lenders still they're recovery. be playing a that the little with

and on The with preference For clear technology continues And seamless a and the it's our very programs both fore, growing how importance place priorities also strategy. to science-led they our we've key our safety. as training and sustainable come protocols. for standards represented these to of are cleanliness elements enhanced importance much in practices guests, and

of part shift have pandemic, fundamentals, growth hotels In on pressure terms of that scale. the during the increased brands to to continues independent of as market

brand. signings net that, new makeup completely focused well-placed growth. We trend, continue brands on our by our further delivering of own launch Our industry-leading of across bolstered rooms number the remain that of we're to and reflects a collection

that, strengthen them our brands, promotions returning Starting and the services earn-and-burn campaigns to and our reduce owner reputation. of customers, of that and IHG support solutions, we of heart during costs opportunities to owners, taken there sharper our even and place ourselves deliver is that cleanliness our competitors. owners where that something first and priorities customer-centricity. informed the to supporting the critical we're can. with focus loyalty strategic X returns and and being achieve our X It events we help our guests, are half, our putting the and of It's index put is positive with and business and broadened comes net and it Outside on including tailored appeal been an we we've safety, the Our services work with owner preference us we've the enhancements with create we've in saw our our do. Rewards increase to sets reflected trying period, a at Challenging to make returns. solutions consistently insight to travel satisfaction program always guest level, demand, tailored we decisions everything strong different and When how pandemic, of operate offer. through around meetings we've done in throughout we to ahead new guest our

has around using example, work great deliver maintaining offset offering, able for to extra whilst much guest changes And significant procurement, the So been procedures. highest-quality across experience. safety protocols cost cleanliness breakfast we've operating done with to and been mid-scale costs to all our savings,

We propositions hiring look to increases. owners. to create have rich, also increased drive our about and how this digital experiences our deliver is we partnerships created revenue-enhancing integrated as digital hotels, create with comprehensive occupancy owners advantage we our recruitment to for priority company, If to direct a as bookings guests support at and toolkits our

guest and to we and this secure reduce merchandising receiving develop progress almost having ever the allowed performance-enhancing also in Contactless good a to selection Canada. attribute With and feedback than support us and of platform, deploy live tailored faster pricing, is is the towards a Concerto, our investments add-ons system, safe truly roll contact. There's has to making of a U.S. before. working offer. tools cloud-based hotels differentiated XXX,XXX already check-in hotels is out easier developments in technology enable and can fully our nearly inventory phase lift guest guest of and The we're stays. to in of and rooms catalog and reservation rooms, year unnecessary next strong but Our rapidly Concerto, technological huge IHG the curated IHG X,XXX experience for X,XXX

and more now we building Turning brands. in how to loved are detail trusted

growth on Express choice its First, for brands, owners. continued we're get both moment, Holiday have China openings with Inn which the in and and in globally this big it with X,XXX regions. preferred has more the further signature are XX a guests the segment of has and to resilience in this allow. normal Suites represent and Greater strong reached key demonstrated system times, in investing in our during par to of opening Essentials outlook incredible for the breakfast nearly out growth. XX% the remains of milestone the plans and A our Its conditions ensure pace a growth all us, over great in the XXXX. place is properties Americas market as also the to of hotels current and roll we XXX pandemic The and with self-service the U.S. back brand as return engine pipeline in half been size

offer stronger pushing the returns to also grow for to brand, continue we keep As even it our owners. ensure we can

system a in guest Europe, brings concept prototype, offer Equally, new our most deliver guest in to and Our avid, estate. strong to build food price new continue more was scale, guests. across consumers hotel is our increase have Its And savings guests purchase-ready estate designs and Inn estate and increased Formula than turn to pipeline appeal expect X-point brand the the in recently attractive its constrained Express, our Blue beverage which economic XX voted U.S., uplift brand and and to XXX we second-highest public build and in using scores which optimized is guest of across of hotels If generating now Americas see net the Holiday guest to for open Inn, in modern is is we a and to next procurement our avid uplifts likely our In space the satisfaction the breakfast that be low adopted in and a already to cost the owners. Americas, evolved think And for Holiday format we to point by competitive the with growth satisfaction. a year. Lobby being entire we our scale we expected it to cost include open the revenue XX%. make trusted size as contributor for almost of by and and also hotels is Open design room satisfaction we've meaningful after reach the our delivering environment. owners. end which to of got fresh operate owners

and been of Our Staybridge saw line in really And pandemic. them brands June, this Candlewood XX%, in around we levels have throughout Suites deliver exceptional Suites occupancy XXXX. with

momentum Our which over now strong Suites designs, India. Suites continued costs, and than And Staybridge in Staybridge the signings are in our for offer new lower has including Suites. for more with first both, committed prototype build XXX brand and owners XXX operating Candlewood

Turning our & and next to Lifestyle Luxury brands. Premium

helping in Premium, resonating U.S. seeing the their Nanjing the maximize ranking. pace J.D. Orleans from the really following at estate we brand the has invest have Luxury Notably, China of to to Crowne converting renovations number our signings a or in been properties. brands. Chicago, interest new we've outperformance global launch satisfaction At and luxury we strong hotels and at actions the excellent There with choosing Over our recently satisfaction offer, Americas to part made its guest capital brand, benefit into our last brands, signings conversion voco. returns a the in and Greater Lifestyle the in in guest Power strong Washington & a further owners look secured our signings the existing sensing significant and system, well, guests. We owners some Middle we're year, to and very in in voco And New China. in hotels U.S. the seeing and and improvement is in performing at our are very strong East Looking our which half. quickly of scale. Plaza, the latest are taken our key openings in updated, We've see continue XX% is all were strengthen into of across significant hotels we've

For Six Senses, the hotels, including and is a property will next we the rebrand and Greater X momentum in an track flagship we in to of Regent Regent, X Brazil. seeing in signed with underway for which iconic China, signing opened Botanique, good stunning We're to year. well Kong, And Hong renovation Kyoto, InterContinental open a on Japan.

in Australia step double the expansion, Kimpton, next take Hotel are further Indigo, into to great the to XXX X some openings that markets, in international industry, and to brand the track domestic continues boutique and today just new break on from we're openings the in For U.S. estate its X properties over largest alongside years. in the in France to

we taking steps the round further brand share now me are to portfolio. Let out our

more brands Suites, voco Over established with to Six still Regent. organic opportunity of Luxury the the today. really and engine of already represents and those brands that our for past clear adding have Each & Senses enhancing us, are momentum acquisition XX compelling of we brands one X growth a growth through business transformed to launches the the brand Lifestyle growing offer offering, of avid, our and our and years, Atwell

portfolio, collection our today is clear As our from portfolio. appetite IHG not strong we've right there the become and brand developers that more Luxury something on demand work expanded on with us in very engaged Lifestyle quite that it's the in fit for could have may & that space, properties owners a create with opportunities to and

Kimpton I Six where about on we InterContinental collection and in the Regent hotel size heritage recap positioning the Luxury already Before from today. already an our of got From world's total the let impressive XXX Luxury the both Senses and strong more for than you and in and player IHG's our we our XXX system Building & the brands Hotels acquisition XXXX, by properties, space owners. in guests have X; me now the is of for we to international Lifestyle. size. with With And XX% of first talk expansion & creating brand, lifestyle already of first XX% and rooms, we've Resorts, represents Indigo, over brands largest and are & Lifestyle Hotel brand, total XXX,XXX luxury X world's this #X and and have pipeline, portfolio luxury system with now pipeline.

collection brand allow fast-track point upscale just conversion has brand, few we want even As weeks This you $XXX to brands and keeping collection our will but launch our rooms complement a luxury longer, price lid and different been to the needs but in worth independent. and to billion are IHG perfectly with where brand's upscale, see, name strategic designed for it will tight our X voco. currently segments further million guest existing fill to brand. different and We're over further across upper go can a the growth also expansion a offer of features X.X new on our

grow benefit to having to conversion last become loyalty seen more over the has properties increasingly looking than next X/X technology expect With grow decade. significant seen and the their of the signings pressures, to trend platforms. of independent marketing, access to hotels are months. already This and owners XXX over brand XX branded We the trading systems scale IHG's

will delivery with identity record will able hotel's track sales had hotels to be will teams. of to distribution our revenue do proven channels, capital loyalty scaling independent supported systems, commercial high-quality higher distinctive luxury propositions returns. the and Owners creating already by The underlines of success that gain high-quality marketing, opportunities, voco fully rapid delivering brand with IHG's outlay attractive dedicated we've outperformance. and so character. capable world-class be all represent access collection offer scale and operations, of join also and distinctive reservation and brand drive The of procurement fast of owners Luxury our Lifestyle & limited conversion brands their to with While the retention

know all of well of the by For leading as unique travelers. affluent to brand distinct benefit guests, meet hotels demand big able Gen exclusive trust the service, there locations. We'll demands collection we be also urban those especially millennial and resort as they Z assurance loyalty and for and experiences, and from But a of big program. creating is high-quality an want pent-up a

new significant business with We a ambitious starts have to people. XXXX progress with of commitments. Journey Tomorrow, decade our which our made plan, Starting responsible

colleagues and we are that We our attract continually culture support, and empower develop new the in into business. investing talent

of and is has the leadership the IHG and that working increase provided place social change also equality. consecutive for to improve talent, been paramount, been inclusion seventh It are economic is XX to leaders globally. in to corporate why ongoing of skills and all which as year diversity to world and a conscious around In communities, has training has IHG's the the we lives through colleagues programs innovation. have We work and by best training row million our people the recognized driving education been

operate that with and around Our such skills strong reach with pipeline our partnerships to protect and And we training deliver grow in hospitality development, training global and ensure a and more pathways. its closely that footprint owners us. of to resources IHG partners extending strategic hotels, the Academy it's vital with we world the new work is ways of even career and

that our secure remove of our usage part global those to To to management IHG through of in China help estate data in reduce in line science. across environmental the Island, our Our include and and pioneer Green water Engage, climate across amenities reducing at to projects final our we're And as single-use Australia. of stewardship have actions the water environmental launched in are of right energy system. we the carbon a greatest this, Supporting XXXX. access footprint communities, Hayman our of industry, supplier our further Shenzhen, the with miniature X in minimal-waste hospitality collection will hotels targets contracts we emissions bathroom our transformation risk upgrade stages also improving the hotels

our to of attractiveness it markets remains the clear. long-term sum So up,

duration and the and corporate of recent the positive. seeing ramps volatility, transient indicators summer half. While there has activity of second demand up be continues We're return the are as forward-looking groups the to also the some strongly business returned demand for in in months,

period further are we expect Our owners hotels on year, XXX pace environment another the last accelerate the and sizable XXX as as development in this opening reflected signings, confident strengthens. both to increases and in too

we are start the executing against of outlined priorities the We strategic at the year.

are We largest do with by by platforms commitment planet. loyalty markets people, a the brands our segments, to thing share and clear our powerful to the and and well-placed supported gain further right communities and technology in leading

and brand launches, new in ability of growth Our the months together brands, growth actions net levels great us with XX have all size give last deliver sustainable, position we the exceed our in prepandemic category-leading ahead. confidence us taken industry-leading profitability. over to system the our And our years to

the to We strength are, therefore, confident in questions. happy are your that, and future With of I positioning Paul take prospects. our and

Instructions]. [Operator

first of question phone from Stanley. line The from Jamie Morgan the Rollo comes

please. questions, I've got three

numbers. down XXXX, from it's openings growth of to couple and rooms your sort on years, next are industry-leading the been time, close weigh I clearer year. points basis X, I just of two that, we get some Can for been You've XX down removals this over some on targets on the which of sort sort you of X should in but please? guess, add pin down quite still targeting first sharply by QX, for for about years. including signings XXXX, from are that better could X/X The

at than great, sounds be better avid And going is all new for level. secondly, But the fair I with So and that's next the be to But on mean the opportunity the is, of to largest seems behind target? realistic number in net there's like that's a looks pipeline. of the fallen been own year? one a brands, XX% most signings. bit clearly, has specifically in Is which It sort it say, just its then X%, the last next industry-leading year a year. if that is to sort pipeline say no X by

if is opening, the like it annualized, using cost below pipeline? the HX well right, finally, half numbers, $XX the my million. what's math which, about existing of restated were looks is $XX 'XX above And Sort the on savings, first fee in then million costs

there. a there's like just permanent just in savings more looks temporary it So than bit

expect not the we $XX should beaten be So to million point? at some

on about and and then signings going Thank growth to you, Paul I'll on I'm stuff, up savings piece, the talk let the rooms Jamie. okay? cost pick avid the

if you term, and is of our initiatives. over And certainly, to million. in always optimize about half yes, of the equally, how of you the and growth the million that will look costs the we terms success the look year, last years we've of costs as permanent. significantly Jamie, long as be the Yes. term. if the sure the you we much the $XX can on $XXX over cost have this we that business and structural savings, saves about to saved been first efficiency XXXX, we've think But a of imperative the strength tight in we've added margin know, business is our very saved you And done at long business versus said the make majority we

So we in. back the positions in open some at that every position it's company We recruit have moment. actually the because invest to still are to are hard happy

we to possible. that, investing be well more make that get little set wait in If sure be invested does see. planned, $XX all It could and we'll around structural to have are as million will So you to then we that as in than the expect as come a back reduction.

going rate of or we've the InterContinental. a In owner to it's family-office before about talked terms you good contributor be our growth. to which very an yes, us. is second-highest say, of significant a It's growth brand Yes, as owner not our say, nature avid institutional there, the really of of, and for owner, avid,

had more last on over development So so, months they have or focus XX new business the to on than operating activity. their

sites, a But all our having when very change are be of with getting now and talks these will getting about in on I'm well to sure very that'll mainstream growth. hotels very for the back focused future avid. progress talk brands, much come the pleased the pipeline the he are with under so that. see future construction. And We this on owners about Keith to real starting

Thanks, Paul.

so, growth. rooms Jamie, And broadly more on

talk first, was U.S. owners. I mean sentiment about bit little get with then to our X some was weeks a numbers. HOA up the other catching -- at me into the I day. U.S. the and let in think conference conference talking the I I was analyst ago, of people I traveling at the

been strong mainstream the performance very over moving that in the the back seeing, development feeling in are very, lenders and accelerate segment come forward You begin really, too. to And as now has confident segments are sentiment summer. more

pause of industry I think So bit be of that period for in ways for a to a for in this the segment it time. right many was there a

that and now as itself acceleration sentiment are to will for Atwell seeing for you which that You lead for direction, in get in move Express, avid there.

in you it was maybe perspective, about our -- net probably if all than equal accelerate So a From And industry behind gets basis back led remember what effectively effectively industry-leading growth. we needing And delivered higher we've of from to the levels players. or Hilton, the XXXX, talked to XXXX. look in Marriott. major Marriott slightly gross we

transitional which number for and we And that we're XXXX progressively term. we kind then impact those we a we course, distinct that the the of can was And a almost strengthen and in Holiday showed had to normal of year. level to buckets. removals we if Crowne will So had, over the look longer doing XXX fall portfolio, and an removals point. X And the review, at Inn a get hotels, had had years, those SVC of going of said be of they brands Plaza we you which

to So 'XX have business realistic. of able be think, accelerated owners more to XXXX like 'XX too we're where getting And X% seeing to you and when the in honestly, players. the our would be number having -- one industry that needs how there to out -- XXXX that move level expect and of looks very, very and we I we sort be more into forward. lot confidence, forward we now to that of growth I think a confident of about -- put begin our as we is ground moving kind top breaks that. is achieve

And any avid targets us? for share could specific with you

Holiday We've got to there. multi, a a it is it. runway with up going to of why hotels decades to time. industry, is of This can't my over But will and ahead while multi-hundred-unit system This time to XX. long get be pipeline no given probably I there it beyond in already and Express' a X,XXX size take the mean Inn taken of it's reason it a very a get brand. get some brand XXX

year. for Okay. X% next Great.

Brilliant. Okay.

Thanks, Jamie.

now We as Bilal Aziz have from from question UBS. a

me, for Two please.

like to you side points the into of remind beyond U.S. perhaps quarter? tied And third midweek thinking are perhaps And to gave out please? which get Or confidence third see profits, about level you could your it, the you're what's leisure Just flesh of mix all another think now, us noticed on quarter. the could data if based versus versus occupancy more I summer variables feels one the decline how can business for share of with then now. it be think that, Perhaps comfortable the way indicating XXXX linear peers you're perhaps on RevPAR to formally high already. you group bookings you that on you business the profits back XXXX. the some to giving

a talk Bilal. to future you, we the the hold. may mix, I'll date seen we've and Thank think leisure bit business we're let about Great. what -- and seeing what I'll what profitability, Paul about moving and the talk little forward

little But about during probably talked bit, mix good to business-leisure within XX% our pandemic. traditionally about way being the to And think range around changed overall. that a mix. we've XX%, so clearly, XX-XX. being group XX% our That again, you've that's about a got And

pandemic, the and throughout that's travel, at the continue was on. So for essential drove At levels. business XX% of business I occupancy we think And back, or about saw occupancy our taking hotels, continuing we thinking essential travel that a pandemic, which in levels of still Essential worst properties. step the properties the XX% had some our Suites our in

accelerating. to service the to who to plants manufacturing to them, that's travel going are city who happening, people and city have their from individuals job, do those to that's So

now in more is to which see discretionary are travel beginning We back, come corporate nature.

saying some QX. travel saw up I of numbers coming into to other they corporate would XX% QX XX% were that day, to at and and of airline begin step Looking the the back

in We events and are some place seeing groups, our and begin taking ways. to book in COVID-safe meetings hotels

on soon. into getting that So business XXXX. we're Atlanta, to the We're there Paris better hearing and to as accelerate with out our discretionary traveling seeing most is they Anecdotally, in getting Salt go QX, has City, we want want and over and QX Angeles. travel stopped a they going in than out space momentum I'm on see not Lake that for teams. sure portion we're the accelerate. back other and for we're I The now hard go and of that to we're a hotel what year, and to company question how I'm our part out to does clients, talking customers. in come corporate connect teams road. QX to was seeing real for that does the saying data We're is then building to fast definitely degree back Los their that be anyone QX together. and

Our are out there. franchise support people

other seeing jobs, So we're we're the traveling companies too. and to do same doing our

travel either has destinations without basically time summer periods because in for affordably so to say a empty leisure movement and you level QX. well though the We in resort of as because pricing continued of can exactly do or people now. of summer those couldn't aggressive hard been this nesters, kids, see uptick see will over think you'll a what people So of travel leisure lot

going doing that. be to we're So

that are and but consumer part. control, rates, the be let to now. Paul correlated into going back and to discretionary 'XX. direction play our So all continue But most business of continue, and the confidence lifting about profitability -- beyond travel come it's accelerating be will restrictions, vaccination leisure are I'll directly will those travel in to think Essential right solid. will for being they're really travel which talk we honestly, business into trending

demand business. more correctly the same you would so of note Yes, see that a if profitable were at back then and rate, we level we

that. I a beyond goes actually think it little

colleagues, appreciated owners us them I proven our we the of the very greater from think the more our and time, have loyalty. employees, even which our drive their way of power the has XX resilience I been months have that businesses, the business we've brand. run is business, helped to way think them we much supported of what last The the treated drive think the over will we've levels way I will over

And been this business so opportunity. went will also about, of as Keith's than we develop think talking with stronger come We've brand, we huge out into which has a I a to new worked, it with.

fees, million in talked card In cost some accounting that terms purely of has And credit change of $XX profit. $XX around the which million, you'll side, million the from the in $XX profitability base. remember brought of have about our then another we we saved structurally the

profit, due were that. combine in million it the around about revert you million $XXX you additional into about comes about you think $XX course, that was when And RevPAR X, those to prepandemic so. sensitivity When the X% then that's will profit to talking or business. about back of So

profitability. So $XX drive same on basis, think the of that numerical a million purely X.X% if I still were and or reduction taking to X%, million, you it's $XXX-or-so RevPAR level would

we're aggregate things XXXX. to take that when We've a so time full Thanks rate of can It's long higher seen one think get strong. the actually same just a rate we been demand period was business the whole, of would in indication in weeks very the there, then recover? I that There in the recent saw is a than of we an business. as back much. to rate rate seeing across has really is question, encouraging

question comes of next The from Barclays. Vicki Stern

the recently. bit the in Just trends of have terms firstly a how more favorably given some you've U.S. signings, on little shifted helpful color particularly on there,

terms of if out things take, broadly, flesh markets, in they other of back If sort where before what and to get to the I of it's just going some more what were in you're rates. to seeing suppose you could you signings like,

were growth construction starts of the to Marriott of that months, potentially could growth, indicating their over unit slowdown a I recent on years. In terms X weigh think X unit in sort and in next

there. to concerned of sort curious you're doesn't seeing your answer particularly It in as Just question. if you're Jamie's sound what

to pricing that line I that some thoughts of that. So has that mean kind on going suggesting of is potentially beyond of then flesh as quickly cycles, that's about have point, we sort how unlike you lag. of get as with notable the price just come what a normal leisure, just on things it's how cetera. we of out more if into business a sort in with far. see Paul, and like hear opposed things back sort yes, yes, to versus And industry recovered. previous pricing, could keen your been occupancy mix in coming et gone Obviously, of sort back back might look so think you But

Paul let I'll little a talk signings and bit breaks, Vicki. pricing, then I'll take ground about about

in previous we've interesting it cycles of point pricing. the some a And could seen. really what before pricing, full not did terms years see take is Yes, it well, and one so it's said, absolutely look, because we to people

us, strength it's not the of of industry. the discipline indication an the it's revenue it's think in just others. that management I exists And

then even accelerate lot perhaps all also you greater demand I management because of question pricing we've There's see the revenue hotel when know is a studied well. rate We basic our that than We supply a I that -- management in faster. economics the you bit talked for of think have you very capabilities, that demand's whether to and there's tools and in a see you -- there know about, good revenue we think power squeeze, supply, as owners.

certainly maybe augurs but well for see that, we'll the future. So it

Vicki, the level, was signings if U.S. talking it an players been peak think I the XXXX, talk about industry you Paul. big at of hit about probably from Thanks, perspective, have industry most an XXXX.

now quivers you but U.S. now have -- though, than of used have. we we've I we in bit to And to slowing, so got should we of brand. voco, used has avid, slowing. our now more we in have And arrow a we in have the We been when structurally the our arrows than a bit quiver, at a look still Atwell, have growing collection say,

to than U.S. share grow opportunities have and we in And to. so more previously maintain the had signing we

gives we really that in us But acceleration So EMEAA are China. what there. confidence Greater and is seeing

ahead of both in XXXX. they QX those in effectively, So where of were were regions

so And is we're would China I seeing say definitely -- conversion opportunity so for back the to normal.

has too. is a that perspective, is the with the that there a time. us XXXX perspective, in beginning conversion, share So U.S. a and normal opportunity give -- clearly the similarly of that of from new-build gain mixture for and accelerate and EMEAA a to like a from feels new and conversion ground-breaks just period brands build from to

breaks, XXXX X it's more in and XXXX. in mix. if I portfolio think luxury we're When or break open confident what think perspective years to a And in of So like I X, versus you're very, Jamie's 'XX 'XX owners build different you XX hotels look a and get ground upscale growth ability from to can a terms go was, lot slightly to ground, to back about very our XX question take X, to too. mainstream think could upper months should

overall. that those Tony I think breaks made ground of been around might have why comments So sort

now Jaafar Exane Paribas. BNP from Mestari have We

wanted two, if reviews. okay. the have that's on to Holiday I Plaza Inn come I portfolio Crowne and back

XX got the far, of the you've invest exits understand Just process and the rest system. and in works, how to agreements XX got to so you've to remain

launches, bad if my what may more no is, x historically, TBC obviously investment I about million talking than left still so savings brand of of for negotiations exits and isolate the to you're the going you're envelope the There's longer, be it higher they're status reinvestments. because number guess have cap for ultimately we but new HX. would XXX far? properties. Or properties then another a in curious have have they question interest? there's is underlying Just you launch, I'm to an had part and exactly in being all is been able of because XXX had if already never good curious investing much mind be to how brand it put And they the on is in they've remaining to should if CapEx. complex the on separately, you're just in growth remaining particular

Thanks, Jaafar.

grow we the long will the of we've progress, the and story Holiday really and and Inn working for brands that been are on Crowne Inn we this So It's in Crowne Holiday over help a Plaza that terms Plaza, pleased think with really time. a time.

If a lot been they Plaza, through with estate estates, back to Plaza putting a had in of doing has last the owners in we've particular. been lot think Accelerate, we And once years. Crowne this actually see Crowne hotels you the and X XX% renovated we'll what CapEx seen will exit, we're have of the upgraded, have exit which of Crowne into hotels that in the Plazas,

So position better it's a mean much that going grow and that in to forward. high-quality a will going to estate, be really it's

discussions will owners. how we're how in exactly go, the In XXX terms many of stay, many well, of with will still

XXX guidance, capital date, steer what XX in. take think would that my you to which with be differ a to refurbishment my staying coming be I if to from but bit that, you seen out hotels might significant It best like like. we've something that will would best little model exits and

investment to has half growth the business, of year, on are the we second and be so growth a terms focus In as for the about, talked of in growth. Keith

that behind open the we'll out. is it's or very on about behind have away. collection we the if level lot capacity sure right markets reshaped few we make developers that. our making hotels time, further significant we we very board a lot behind the investing business a we to take some opportunity where having Over we to but dollars wherever It invest are of to, sure growth, do see and new for opportunities faster, will isn't a not demand world, There's lot cost can the behind a that are of add significant. million put invest the in there's around for So not brands, of example, really this This in it, taken for to optimized that brand. getting

how that's about So it. we're thinking

expected million Okay. of to $X cost year from liquidated cetera, you we significant 'XX, to for have savings, mostly it. have end months HX, have the it that. a going then like being a up are looks but then just X a follow-up with Super. isn't obviously not in of number profit of as you damages, et basis be ago? that phasing. would may If invest of the sound maybe doesn't a It it what et should chunk year saving like different full OpEx will with very cetera, we on mind And the this looks net for there it's expected like On investing phasing

I the half, of we've maybe the or the said so. Well, think first so $XX that million, done some majority has been X/X in

there invest we it. you are, then very if know, are track second If about more invest it's CapEx. half OpEx So sensible or we and record, investors, see opportunities, aren't whether our we won't we you opportunities. think if -- any we the the will in But as

to capabilities hope that So opportunities us there. in faster, absolutely if they allow invest we And it. will see we'll grow will I do to be

have Richard Clarke Bernstein. a of from question We now AB

Just additional sort XX% is January, time fees revenues to Fund, business XX%. of was and the you've a to with back that through question, fee Delta to from in the and I question, through about year-on-year that it's ago, variant, little just down card to U.S. my second in also out, be your million. you time? X% over on RevPAR savings of that chart, eyes signed X% July on hotels And and just leisure up you're Slide you're And your going -- not there of revenues but just pause Plaza prepandemic, of a through I on But there? I the can caused travel Do to the giving Just You've July maybe made that lapping of was a has there claim are -- some dynamics get that know continued to number. cumulative just X% I know loss Crowne and long side maybe that. quite left-hand remember drawn a on System us And want interesting. in XX, bit about but to And would are And a dynamic, start February. your Fund System up any the the Inn. Holiday you you travel if there. down terms taken System leisure? tick the the of that fee expectations third looking credit $XXX and what Is the business up Fund then franchise being despite the think technology actually noticed lot

the about obviously the going the of going forward? where kind forward? really that Or ambition? expect room just removals do start to You going growth Are impact on growth. they they are to on meaningfully gross stay talked Is these you your contributing sort of

pick Thanks, Holiday X, signings up pick on Paul Richard. going and I'll to let then Crowne the Inn. first the Plaza up I'm

was improvement sequential So July was we thanks, year-to-date. the Keith. saw month we've really and actually, seen highest that the good a

did good be well. good to as it August trading has been So and continue very

in than more with U.S. see RevPAR hotels And saw of the we our numbers can than You the XXXX. half industry better in

much in we States. get a break So seen leisure haven't over both full. impact the in There's want full lot we been on able demand hotels -- And date, to There's or away it certainly to are Delta to haven't because in are business. the on continued. airlines who continued growth from people and of leisure who

their think want about, lot talked still traveling again, auger to of people and as And get there's So lot demand. that, of a teams, out a who well. there's seeing to Keith pent-up seeing going clients, I that's

a in business doesn't reduction think bit gosh, terms breaks XXXX, back feels Going then. back there, January a it? increase and February to of -- ago, seeing I that and seeing you're an activity, holiday of a you in a long of in you're group time

be would for explanation best that my that. So

System to going of yes, revenues, on. as what's In a always bit it's terms Fund complex

the probably cash. to what could -- back Fund the that in the will paid to get happy this fact subsidize investing question System happens it negative we so a to there we run were that think year, and we important let that the cash business, position last is And the I flow most talked year. the effectively mainly keep about and

much So neutral cash XXXX. of flow by end the we'll be pretty it on

Paul. of Holiday around continued they and focus global Inn Rich, number potential, the brands they're our that a growth grow, for for world. have great, Thanks, I strong great been mean have years to Crowne and Plaza again, has

Holiday of the time the Plaza down the portfolio leading and we're basically that believe the and Inn, And our that And that thing just about now been voted U.S. whether Crowne XX% think and even brand in now the invested which have and been now Europe. the continues with over profile renovated, Paul segment. in again cost And noted, time in Asia brand. will -- I operate open. hotel also strengthening U.S. new XXX #X with to that' it's hotels a into my Open powerhouse trusted brand. been throughout mean is the Lobby in raised the most brand. which as in of And build it takes it's China, I the same prototype, in I U.S.

for those there's both So growth potential huge for of brands.

XX,XXX kind You Inn rooms look in signed of X,XXX the were and at Plaza, we X,XXX Holiday too. half Crowne first the were almost

this continue Plaza of that strong we their of accelerating grow very, to concerns some big sure and review the certain sort we now around that futures. making of And had world, with that step the the of we're more to in So Holiday than grow. making definitely, in be brands and but that Inn others, investments last markets the they confident Crowne very can address sure make to continue

Credit now from Leo at a Carrington question We Suisse. have

all brand or needed. -- launch seeding or existing & the you all the you you've the the you an brands in consider previously, had this you have you soft about brand? why need collection And acquisition Luxury didn't ask Did that Could you of with indicated I Lifestyle? brands

question before for numbers brand topic, this represent owners collection? new term, near think new already an last Have what you hotel sounding of just the or to or track on collection? been that for able kind question And out opportunity this collection didn't this the pandemic? does you new last So overall, happen do you'll be

Leo. a could to we go point. to do such with reflect our to in that Six opportunity with our opportunity a now. brand going segments became all-inclusive first conversion opportunities, there have as lifestyle, sure us make brand, them by our at play kind other that and and we increased and technology were scale that right in getting other important it signal we very I future, that wanted strengthening and were got into different enterprise did potentially the we our which lifestyle make launches -- order wanted the returns the an and platform, could also go owners, is you voco we acquiring Paul our a, to Indigo, positioning too, actually loyalty is, name out successful. And function platform to segment. We in the of that in collection brand investment but a then let was if it critical opportunities after want components time, deliver Regent we reasons. us, collection think some softer prioritized Hotel we've of Atwell, go Thanks, could had the us this Senses It said Why mainstream Senses. could enables brand of Atwell back, for We collection it Kimpton was place lean that the we mean brand growth be strategic clear and X. with too. of brands, either basically actually other for for some really well, delivering there's luxury, of in and us was I in in to or they're now And and strengthened all Six luxury high and as avid not upscale well And 'XX, procurement to into. and launching saw at so We those strengthened we've We we saw that for are to independent to I hotels. a Regent. avid, be it just signaled or that It things but there called sure space voco, these out, it was going February the few

We've it leverage this a do brand lot us it? in it's seed utilize technology have can out made enough optionality. go can it owners not and who So number up And something. acquire this want already. of to there's to to And why interest owner or not this investments We gives organically, of brand, conversations organically. capital for really, not why build loyalty there strategic a had with sign too. seed We our -- we've and

more see quickly accelerate. have said time. years. hotels expect that we'll and you'll We it's more work signing yes, us number year that begin this as great with be -- a a that we we'll that it of probably we seeding well. to great I out of assets could to good number have, weeks' with coming some but than in already. a But sort But be some a owners again, XXX information That's few So

Securities. of now Numis have We Tim Barrett

a And balance worried term. was up long very occupancy in that there in come have think the the the But really on question people business fees, about conclusion two sort XX helpful, got hasn't updated out EMEAA, I of of few then changes XXs mentioned thoughts is Slide connected but anything much, I I in and the have if finances. you've topic are demand A really on question any Is its please. to in around means another structural for that burning owner logical is. still owner to year? and this wanted it owners take It's to cash. obviously find on you're finances

Thanks.

the owner So talk structural take impact I'll Paul then I'll about let finances, business demand. on

Thanks, Keith.

this to -- Tim, we're that throughout not to support extent greatest can. we So, period owners we're very the trying

that EMEAA, appreciated remember tougher And markets the owners. is so mean, lenders we're put Same in there. the as what return in in very of of supportive. seeing U.S., very by and we getting strong You'll China. been is last owners just the place that's have I by we what are were year, It we're really paid but prepandemic, in some we

Our brands businesses of are very comes rate back, hotels lifted, and at the have back, owners restrictions owners and successful demand are strong, the very they that the look they once again. know comes will

in particularly the a owner. that's lot to there. of a So you're occasion, And do relationship. support what back with as long-term on you we've We're to I'd that call comes nothing there's relationships U.S., But come I'm And flexible earnings then out. with having we're in be will sure And health. them. robust when as recovery just a long-term those in in markets, seen the those

travel I fundamentally believe business will connect, I a than do and shape fundamentally, look but I has people throughout the travel of The we profile travel grossly is a And over business people back need may before business think this fundamentally different Paul. to travel. I come that said It been think pandemic. portion our to has used little it remember, Thanks, but been for -- time. going it here huge business. exaggerated, and death that need essential of are to the to

we're It that piece, leisure, about But about meetings upon is know with people. the many, really events I and do reopened. happen increasing number parts truthfully, budget now travel that reopen, groups, back travel. the And come to like And see it's having CEOs. with opening hearing I'm travel that back, our won't right? to believe that has seen will still next so But again, U.S. I travel next conversations it having be We're the back the up, based in conversations But We're more other demand year. to beginning we many is going increasing I'm discretionary the was this and from of when essential the come going lot Europe. came of corporate, budgets' discretionary. business tomorrow. over back it's year. be world and our in seeing a years. a not of And

piece be it, the will to Asia too. next

take into as will So to that demand I And see. sources then we're be time. that play there'll new think going it too well will come of

to could that. this So from and are business-leisure for and that to bigger question little the bit. there's industry new answer move people Maybe from to talking this mix is fundamentally working coming bit will going of hotels, with shape home about The business? we into come it. back bit change a more People more leisure a a lifestyle will leisure The It working yes. be going is of time. believe But that piece business come back. will level. the do It demand is, prepandemic take of this the for

final Alex our lines We phone Brignall from question from have from the Redburn.

I have three, just to consistent. be

sort Could So RevPAR signings, towards look that I us new on become the if just -- has you we in even side, the of now skewed guess China. you the the impact just more we're kind lower of growth at when get remind mix the grow kind mix mix go you we that the so through There's looking years. places for do what of obviously RevPAR and index impact where the as RevPAR, at numbers? has a few China next of a might

there's -- Plaza. Crowne will to a certainly brand couple pressure standards ask travel. on of you're for seeing the And overall? some Do standards? that and there's kind that kind higher Or that I'll remains you How going to needed churn the seems in you be are guess, have standards a that a maintenance higher -- is in on just be to then the the of think obviously a second sort third Does forward? brand hotel franchises years, out down churn quite one few of question, churn. think therefore of The like business it I kind to of A it. drop asked there then I ways lot. requirements do that that maintain of maintaining going goes back put that requirements guess and would bit in continue some event Tim called for might of

business operators in places travel. first about reductions way industry other and international is maybe in talked permanent The have

I capacity guess largely you question the talked are way levels, kind airline to higher-end recoveries? the If driven it be expectations of capacity second assume below travel in tells business of drops expectations. we operating, but through if is the in consistency pre-COVID, you the case there of globally at to maybe analyst is look XX% airline permanent And me what was higher by deflation asking that deflation are to Tends sort fair business, my aerospace at XXXX are excess confidently for that reductions hotels where anticipated and in historically. lower-end about

which and trying So was as to to that, what I'm up. travel Boeing add just reconcile be by business don't construction you're is that with telling Airbus it is lower me, seem will before. They which

Alex. Thanks,

impact, So region. of and per provided mix per we've I RevPAR mean terms always all data brand, in the

them, new open And straightforward -- when Express up do which think do then at growing you certainly relatively China, obviously I actually model them. are just in have at opening click, although an a open the many, So you that's and a yes, the lower RevPAR see they we're they that fast through. awful of fact they a we of moment, to up lot many

goes So a fairly basis. I linear think through on just that

Inn if been we it's churn of around terms had the around sort the think, brand exclude Inn obviously, rate, I'll you which of the you X.X%. Holiday earlier over X In just last comments underlying system, in and the place Plaza, our to our on standards dealt place. then of years, we my we the in will see and go Crowne think there. be and sort in back Keith, removals look and I basis And of we standards reduction with level well, I has Plaza. -- that in why a business permanent will beyond brand don't Holiday and back terms Crowne well think, explained once And I travel increase that any X.X% structural of come that we there sort won't mean, think

domestic, you our have remember. perhaps, actually globally. travel analysts business been looking airline A think your he about have what been about, of I talking may lot think when is

airlines, that's they Certainly, look of short-haul the increasing the demand the that have look their take So it are some in. be additional orders to at when better I at from come routes. coming might U.S. fleet to significantly

and sure that not a you and CPI I'm inflation think between also, correlation a deflationary and in and So we to the most -- I seen tend seeing that RevPAR. see Certainly, that we're of economy, impact. have rates parts

to So continue I come we'll through. actually that think see

-- look, So X there, crystal-ball future the it's -- in X years what to years so X ago certainties gazing is pretty as Alex. might happen hard, or or no X

Thank you.

questions. no have further We

back it management the hand So team. to we'll

accelerating we all. travel team The things we're addressing thanks, everyone. really exceptional really It's our but looking growth the been done Well, Again, are about right great through job, the connect I with to of the industry, new have strategic some first you positioned with brand pandemic, forward steering and launching Great. pleased the really, 'XX the and the well excited seeing key think, in tourism half. ahead an to moving priorities, for coming us better definitely into for and direction. 'XX, times business

up So thanks forward for you to with all soon. your time today look and catching

call. does you. today's conclude This again joining. Thank for Thank you all

disconnect now may lines. You your