InterContinental Hotels (IHG) 21 Oct 222022 Q3 Earnings call transcript

Good morning, and welcome to today's Third Quarter Trading Update to 30th September 2022. My name is Bailey, and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions] I would now like to pass the conference over to our host, Stuart Ford, Vice President and Head of Investor Relations. Please go ahead, when you're ready.

Bailey. thanks, Many

everyone, call morning, update. from to me So the and third conference for trading quarter IHG's good welcome of XXXX

So morning Head and I'm Group the Relations Stuart IHG, at CFO. of I'm Paul by Investor this Edgecliffe-Johnson, our joined Ford,

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

dial-in hand the downloaded under of can Investors For research the ihgplc.com. bottom the page pack website, with in our release. Presentations you details together two Paul. analysts section via and of that now institutional to release the and RNS supplementary order on to the are you the using listening I data usual questions remind The who over on can from ask tab call investors, Results to need will the be I'll

thank Well, good Stuart, everyone. you, and morning,

career six my to the time business for Before will down been strength very our for right update, setting that had I the IHG just professionally regarding a wanted today, has breadth far, in turning part here bright achievements as role acknowledge now other scale spend our a privilege months. be a another take up But statement of up this and personally is morning a enterprise our with of to with to CFO. played the the new huge almost to future two It's portfolio be opportunity. I have me and many successes of platform. and and and the out the to trading stepping decades the so

that I'm the turn today, for our With comes just very IHG my doing time, of know well-positioned that of performance. a like trading let update. matter when the it so much with further trading it to as will usual to our me usual. leaving, subject as very I call, And with start I in review quarter is success. So business third that,

quarter have we're in data would our monthly seen year as relative you XX.X%. RevPAR year-on providing further quarter as compares X.X% On up momentum. for latter was still XX% and giving group-wide the The on was last strong a two, it year the You showed that the to basis, down up both one RevPAR XXXX. was quarter to well X.X%, while release, which movements on down XXXX. performance and

So excellent sequential we've seen quarter of improvement. another

from positive. know the months with high. in employment the and all we remain Within most has period through remained history the the there demand these strong industry of In globally robust. long three quarter, data that And and recent data, seen measures were since weeks are continuing our correlations

region. on a a recovery number still in of levels well Clearly, We the know is in business progress, yet there global to in recovery both countries as more to EMEAA basis. making and as group, but is China, back to also not strong segments come come which such more of also such as as are still locations XXXX there

XXXX year. US, the to levels percentage of XX% of driver from particularly in with now saw back has rooms been category. factor but important this at it just XX% first-quarter see on Looking the XXXX, global business on while X XX% was daily it XXXX, the breakdown down quarter, revenue whereas strong the quarter points. In revenue up rooms XX% of pleasing business revenue was third down back rooms only down leisure up global rate X% Clearly, to for demand occupancy three quarter, the in the in for RevPAR was the average was our global performance an

regional detail in Looking more our now performance. at

up For stronger the quarter region strong the driven of in very being versus and the later was than in the COVID US. Americas, represents since been This wider demand RevPAR the and XXXX start the has the timing to in XX% The revenue of X.X% seen that America by higher. US, has from levels lifted Americas by and of the performance months catch-up XX% first a X.X% restrictions weekend was Latin in six Day strongest and RevPAR the overall was with X%. for the quarter US straight Labor Contributing up for was XXXX rooms of leisure to XXXX ahead month region by RevPAR date September with now, that, Caribbean. ahead Canada

in quarter As the Revenue from flat group's the is first travel back is the the down With which in for that it so recovery on XX% see US, the to down coming back activity the books, whereas on quarter, it can quarter. half progress group's was was months, to get on turn deficit the positive what's revenue I've the has in XXXX was level. business the it on of quarter, we across recovered the first XX% well, in levels similarly expected year. third rooms mentioned, in activity XXXX

both their get up and XXXX we tracking are on also While week December It's equivalent that. can period Thanksgiving benchmark. the the that plenty the change holiday be to before case

XX has to also of now with has country XX%. become the back the as of more recovery of for As the of markets narrowed only between non-urban return has versus that demand and travel markets In business XX performance. the in X% US, January, the come urban to international and has US points and interesting rest It of RevPAR demand group's the top percentage embedded. activity, the the together September, the see country days gap the were percentage has X XX top XXXX. up the narrowed up been rest week to over points By more the developments with behind gap

those to gives come over back XXXX. to back rate levels, has pattern before. six recent around doing the last XXXX as the the most you'd weekend of improvement improvement back much same Monday Meanwhile, XXXX by driven the flat Wednesday at as Monday is index second to been the has whereas to expect. days more over weekdays data in This of to to strongest of at recovery week Sunday. on world did performance months, been got And Thursday of This ahead more it nights months towards stable of in at the Looking across continues revert recently shoulder last weekdays strongest six Wednesday. still us on as confidence RevPAR occupancy RevPAR X% to and rising has business

in Clearly, tougher in first by Moving our around period. on XX%. Middle-East, Korea markets that had Europe down to quarter Southeast in up X% up and it those was and XXXX, strong region Africa Continental RevPAR the have seasonal Japan, lifted, Trading in enjoyed year back now fully from leisure two. Asia these of the EMEAA flat of XX% restrictions which represent was are Asia, to system. from was improvement they a Europe, quarter In UK, and and together and was where substantial XX% down XX% the a RevPAR

international restrictions has travel lifting been Here, of only month. return this for international much with travel the example, Japan, slower

down related where than half of compared months. year has XX travel in two RevPAR quarters. with best the for July of to and seen RevPAR eased performance August restrictions the has the seen the been and first against XX% down RevPAR moving Greater only prior improvement XXXX, XX% to the more in China, was this in each significant Finally, there having was latest quarter. region

repurposed able of However, for there these demand be numerous locations, performance that in destinations were know which most we've travel pattern in what levels. to closed impacted will some includes and times whenever of the XXX resort restrictions the number quarter. XXXX at use relaxed don't a thereafter. of reintroduced is feeder still into achieve quarantine that temporarily Whilst continued or the restrictions returns other in over just Tier latest ahead restrictions cities of the we quarter. end X, were once again being markets X the domestic are key Whilst are future be, sharply September hotels to what RevPAR RevPAR was Tier

system now to Turning net size.

year. second amount and annualizes removals Nearly rate, the rooms as of of Russia the net our the well to X.X% a year of X.X% the the quarter. size from of X,XXX our quarter, Just our The lower the therefore an X.X% the further in was opened which ahead first review over the equivalent and underlying to system reflects improve Underlying which which quarter, in X,XXX removed level the basis, in X,XXX We're impact expected system. to rooms were were growth Inn year-to-date. actions quality prior and quarter success our seeing on Holiday as to of year-on removals, similar excludes year's year-on consistency estate. was exit Crowne of X.X% last Plaza

hotels were I start I recall half the And Conditions XXXX that achieving opening industry, said You that given talked challenging be target the the particularly the to for have in at require noting year acceleration considerable about year year. so stretching. a a China. of new August, system that the back that of in X.X%, X%, stage, growth we size are half for second would openings continued will doing of net at targeting of at will the in be

number help to X,XXX rooms in our quarter continue in around expect that For to but explore open slipped had opportunities and next we which deliver XX ambitions net to example, on system expected XXXX, for openings into a growth. do the are to year. or China there in size have originally step-up hotels organic still though We fourth of we

pipeline increase year in Turning to for to X.X% we we the strategy year. the following also rooms similar to quarter evident growth to quarter have our been which more an of second year-on last XX,XXX year. third of This than stimulating the takes in pipeline performance. the The this was XXX,XXX which added is signings quarter, rooms, the is signings, and into

system current and one-third segment weighted mid-scale and upscale two-thirds Our is in luxury. in

basis the in more for Playa year but we was luxury, Suites and more quarter, and Signings terms. of scale at two chain first this XX% year more X,XXX the region Currently, is brand, the Vignette Carmen rooms, the signed signings a When were and than well-ahead signed, final Kimpton, a same which of the years. across from we of upscale in Mexico half also quarter years. as new up upscales are this the be over However, the signings prior around Americas the of than XX% around four this in have property region upwards there to more will the the the Atwell last of the of mid-scale in last drop In quarter last On which were than XX% in upscale for year-to-date though two quarters luxury. in quarter. Americas momentum year and weighted del first the in A in signings the EMEAA, included rooms Collection significant XXXX, push prior regional X,XXX all-inclusive in two brand. in continued in and Signings a XX% year. luxury. builds signings we look the have come saw compared we on as just and increase third each to expected is the

in quarter from signings continue year-to-date. X,XXX multi-brand by portfolio signings to challenge XX number COVID activity. a openings the picked still versus the months. in a be China, conversion have That interest to XX to said, including In Greater over which signings owner of We over strong similar still we up X,XXX development though last with openings outstripped XX to are continue opportunities, two, to region see EMEAA restrictions rooms signed X:X in deals

is pipeline. as our performance added Although Greater strong well Plazas Indigos signings Expresses XX particularly Inn Hotel XX XX in and with been Holiday Crowne a China, as to

just point towards updates few you the to we to today's other the statement. a end of included Finally,

you. the of access Key occurred suffered Today's an in evidence summarizes the cyber-attack unauthorized On statement announcement just end we issued identified. month. to statement data update the criminal was systems to September, towards that no these our when that guest was and update first statements of we it storing for an initial

our occurred of on most On booking first channels and of by September, had the of with reactivated caused along and websites mobile two the we and Xth revenue this other disruption channels app to and Xth days our systems. the September systems, generating later

to able time, that During and directly. to continued hotels the were operate take reservations

will impact benefit Secondly, update, share third, a for we've exposure. far year which which the our currently the we're calculation. and have reminder weighted buyback, facilities currency has our And debt by just over our of on the XX% share through on million included so the reduced share $XXX count an earnings X%, program, per included we

today's sterling, of of sheet at at bonds, is of the There's end-of-the be also GBPX.X approximately drove if benefit translation the borrowing we hold net-debt $XXX and interest what was rate in foreign-exchange cost in movement each terms blended billion In the $XXX for the benefit the translation cable will to transitional closer million. interest movement is and impact is X.X% balance million. to results on the year, annual the million. The same this a the in net an year a equivalent cost half charge approximately the around GBPX.XX of GBPXX favorable date impact

interest Along $X.X the for in approximately $XXX compared adjusted other average for million XXXX. So in the year million for be our the rate for to $XXX therefore should million. GBPX.XX approximately translational this year expense movements, results the of impact with XXXX movement

summarize with growth basis. exceed our and but broadly well third-quarter. X.X% trading ahead an year-on the China was on Net group-wide levels to flat, year lagging. EMEAA pre-pandemic So seen has Strong system is size adjusted Americas still RevPAR

increase a system to the I'll opportunities to pipeline the to Bailey, to we net final help growth deliver in on of call led the of size pace this pleasing for the signings openings in pick-up ambitions year open expect X%. questions. up our of and We our The that, in With by explore now to growth. quarter driven to continue pass back Americas for

Our Instructions] from Morgan Rollo comes ahead. from Please line today [Operator Thank the go question Jamie first of you. Stanley.

is line now open. Your

Thanks. Good Paul, new the at morning, role on And everyone. please. Three questions congrats Flutter.

growth, sort US alliances been business operators, net First of they've opportunities terms but quite on unit generation. about Army year in casino of revenue lumpy sort organic what some talked of all, signed X% just this of past the you the for low with in hotels, company's

sort I'm about opportunities was finding is might QX, the from And of there on be be to normal finally need additional some you any breach, of the implications contribution wondering bit in X% your So RevPAR, Secondly, year? any because affecting but on think for of for organic talked growth just are fee also they you like you got you've in on the with -- whether was owners, what impact you US was so up the what line next I should technology aspiration how with the that these said I up relationships CapEx openings? there that? might mid-scale, the you sort organic X%, a sort any stepping really the just about give of market one-off unit impact feeling wondering XX% And some there up Thanks. in? sort are then more was net of like whether whether

months for but your here, the six Jamie. yeah, still movement, Thanks, plenty And, you thank comments so to do. Flutter on

we've had has I the so the we've had of we openings in some our which growth held that success to year, unit and reducing net with compared think really pleased we're with the terms removals, of know peers. we growth pleased In back this are

work last remove the some of is Holiday us. dividends we Crowne to the paying did Inns So Plaza and for really year

just than they openings the the the quarter. know, and a owners some And program are And to got have our capabilities. them a with our the enterprise harder particularly So openings lot this on then to the they work us, for used owners we've of coming because done on and we've is all number fourth working talking come we're and relaunch we've through like the there. through tech platform, will industry-leading that be. there's where done know it opportunities more said, on systems in have pandemic work you the through All to just loyalty seen

above of to the make at like make of sort So we we in are would would or an we what the fee room. would like average a contributions to access that, have they that terms yes, on from platform, deal

said something. sort a and this out if up low organic, value also i.e., not buying like. going of And so isn't we're So this we you bulking is have

So it's additions, basis a genuine yet. but larger on done not rooms

openings certain, So pipeline, let's so done of platform, hopeful, in the of through. lots terms be am a end-of-the quite there a about openings lot can't And XXXX, will them. I of XXX% join to the put in coming it some the get opportunities the year. of We very China few by next into had And it delayed of people that I the still talking but be are rooms there's for way. year, I'm

us if can leg help So we can size that get you another I that we We've like also even think our of sort industry-leading to stool to up that to there. And proviso aspirational of want people access portfolios out be growth. can platform. system levels the levels wanting the have put growth. almost That think I'd their in little said, I of said this bring net that of those more always to

leading So five, if sort like we'll industry-leading it's specifically numerically lower what looks be what what than that than a used look the important is industry. you in us we five openings rather for of targeting that's XXXX, in when And back on industry. always gross had highest-level basis, XXXX some the at then been in the it of we as to we are

is booking of still terms had thing channels of hotel we important call to close your turn the and could at the were the Hotels a hotel, the some that take up time. for breach, you to short In off the booking. period so bookings, remember tech to I here of think able make

numbers that the very it's system. to And loss look all competitors compare these can't there's meaningful of don't access tell could some out against. I any I get ensure criminals revenue. the because revenue the see that anything to tells me or to as meaningful we out difficult So shift the actually we But at to data, had remote of to we been of close any have systems

So come me but loss can't see I have which back how think anything meaningful the in, on they we depending business. better of any numbers different and fast geographies they're had that done tells in segments that

CapEx with catch to hope And and initial owners needed relationships up the we which?

mean, systems. because companies Jamie. being owners, constantly understand infiltrate criminals the that I are all think, to Thanks, they subject to I trying know their

news. it's ahead platform. CapEx, very think So of have I cloud in the We're strong of we additional competitors. in terms I a don't our And mean, tech no,

And investment make so in And there's we're some an ahead our are which, awful lot the years. of gone competitors the of to know, investment, but that having that. need face them for that's on as over to largest into you now

So nothing, identified no least. further that at investment date, to I've required

Thank you very much.

Thanks, Jamie.

Thank next Please of ahead. from today line from go the question you. Barclays. Vicki Stern comes The

line now Your is open.

Yeah, good morning.

you And pipeline that those actually is related And does to in million need so Just then that terms of tough Asia? back now rates imagine, how regions, balance interest or finally of willing differently, next prove perhaps against then financing could and cash, higher them just for that so in of outlook about perhaps slightly financed on different the you coming an what thinking actually additional up? to bit of sort to firstly of no $XXX a are just I of to what year. and sort financing? to across and a sheet, of signings the on FX profile sort US, on thanks movements. just plays to And own How you you're got comment of with openings the openings for you've before answer your the backdrop generally out example, different, potentially sign portion

just use year? about that leverage range in economic you as about how that any into sure Just how normal sit look to are these but capacity Group's think next times, that we higher-end next within we on into range mentioned not as how the that thinking You your the we previously happy to at should are year? go you target Thanks. are, normal objective of comments

Yeah. Vicki. you, Thank

very a mean, going hotels the rate I are are interest were respond interest So low a of how owners think in can to higher interest many this of to has environment. rates. to return. we back make I super And in to gone them strong before period a that environment of terms rate used

basis-points to So you're XX they if permanent it finance debt debt or to make debt. even of for be ahead can paying either what still XXX used get costs construction --

getting harder hold You make in to very that's definitely a that ease can near-term. going that. And up think I in the of is very levered debt. And it good IRR still was. than The is don't challenge

the So very do of this, ours, is, we getting what we'll brands. to brands wanted ROI like because have finance, on one see an environment have take it best best brands basis. are they're I then And those are that to proven the the will into be portfolio

We and extended-stay very towards the have are mid-scale in that and a of and Express upper with brands brands avid, which lot good the cash in Inn end generators. Holiday of low

to share basis So that the going relative around business that on that we're banks be financing and it do be I be versus personal to other Asia, with varied North because there. access relationships mostly linked be American there. And you slightly are are in world banks where more difference right tends tends interests, more the market perhaps market owners of there out regional well may to to the accessing will it in to think a so very the to

a So that harder but basis relative to used US. owners got access we'll that the think they capital on in get well debt have to work do to I than

In get what first. how signed-up terms of happened hotel order and of the

off knowing it's brand. you to hotel a you lenders strong won't going be won't for without that a get able without So be to financing a brand, project sign

many we some it to you the to look, day-by-day all, we sign-up -- lenders make can will franchise pay the contract as deal I'll I'm able of to if scrutinize the how we confident a discuss don't be pipeline because get are say, doesn't the has if with with financed, and to of which go sequencing for lockout to keep but signed-up and owner, then to record do hotels and that don't like when the us. so owners of the for going into we first they So us they're So financing? a have us finance, we're IHG, signing to that would the pay the on a get talk owner sense location and remember, it that significant And pipeline. not to to get fee, that's

into they do be do yes So that meant confidence cable, the taken that and that financing over in financing. year net don't cash. to million of highly the XXX% on has that typically will the They don't obviously, company the guess, position lightly. the EBIT we cash we've And without keeping then, a unhedged then front, course sterling over reduced debt our high is the through with of you I by the of they Group corporate debt translate in get our on degree there has to of say, movements that ISG $XXX as able the generative

call we capacity the get certainly clearly by not return And we're the $XXX debt And within strong did by So I make think, go to times through surplus well into the But X.X so the owners, at returning very net understood. And of that through translation record debt now. further we'll both to to and or of balance that business. X.X that range X within it's we'll to point choose times through times, to would time. net a the have would cash which cash X if at fallen us the further that guess gives year, have that's returns, to But point. time going generation I'm and times the we our at sheet we the where EBITDA half XX% the at million full-year right to have done track that.

very Thanks Great. much.

Vicki. Thanks,

Thank you. ahead. The comes go UBS. today Jarrod from of the from line Castle next Please question

is Your now open. line

morning, good Paul. and you, Thank

about of on attack we XH it? are how Just unauthorised there? sort there some just coming net some computer deal Can update give further reports lawsuits now? there of would thirdly, be your your inflationary do then then ability Thanks. this. cost-cutting a actually -- been that unit systems, like related slippage front And has growth you to And if measures where the were useful. the against mean, an with It pressures to on just it's to you there. the bit I back seems company been see on and

Thanks, Jarrod.

So quarter in of more I the in the with unit quite third is in a those close and of there's pleased quarter, was to fourth growth, hotels there terms are but do to lot the openings opening.

open So we EMEAA kicking to large There's are the end opened that and of hotels get need year. hotels. those by ready to the lots of in

which you to all So they're sort see challenging up I there's if like. open right them think we it's there. ready just much open, with of China now, to in the will hotels get pretty a X,XXX And step-up are in the restrictions fourth-quarter. so It just stored is but challenging

of will realities In that there is terms of US lawsuits. in the lawsuits, doing one the be of business

we that to used ordinary So it's very business something for us. course I just that's and think

much that. So read into I too wouldn't

all owners of our building and supplies In profitability. possible as both equipment we well, clearly and and terms much materials impact to the making be inflationary the money want owner and labor costs operating on increase environment, and as that in

but and recruitment So on. pass through at looking for our supply-chain, example, do, buy the hotels own secure there's them Unilever our also through both likes of talent a where with lot doing global deals for Dove, of and that we identify the channels to to procurement we lot a

their a profitability. maximize that So we that there's own help lot do owners to

know, the us. for And and have it right sure for the than $XX be said to We back in took the if we sort you as that actually invested company you capabilities. P&L, into that XXXX, back investing we pandemic returns IHG business of of I good then But growth, terms million the we'll really and think business XXXX. the out In during been years. make for yielded into back we when more multiple think we've restructured to investing in

to between the going the the business capability enough efficient, it's but right also at very So balance pace. grow maximum being having get to

next on out As there XXXX, of increase costs that costs, in and will and there I the are X% And sort the XX% mean, D&A we be our put piece. amortization, into depreciation to Obviously, within of the inflation wage to around people pressures I've other. and that, it's manage XX% costs always about in won't be of level. about be there's to any measures look a difficult number coming XX% business, precise of costs. cost that labor X% year, on companies And seen I out place then

I different have don't business. historically from it's from nature input low inflation. relatively where been our actually the a cost level And given pressure So think have we of particularly we

Okay. Thanks much. very

Thanks, Jarrod.

The next comes Carrington Leo you. line from the question Thank from of Please ahead. today Citi. go

now Your open. is line

Thank Two for Paul. morning, you. me. questions Good

brand Firstly, And do the and Thank can through can on Or quarter? then how you as year? a you level for on good, ADR you. September, of evolved expand saw north of periods you thinking mix perhaps mix XXXX? comments please, next trends, then regional to rate is follow-up think to the XX% think your which resemble mix in the leisure the XXXX, color looking you with then color brief XX%? October’s openings, would second RevPAR conversions earlier taken sort and holiday QX November, mix extent And about right of conversions similar And to HX? December has on some what the the corporate of versus as of been sort move do the has performance in that the

Thanks, Leo.

out started management, of growth encouraging from think demand, to and the for we -- So people it's and been how since the when start that come the available. IHG and has lot rate, pandemic, really gone of that the across the has worked is a come have there rates maximum I so discipline revenue industry

I any been think see of loss very of no strategy. sign a that's And power. effective pricing we

compression and come that very in group, continues And continues so but rate. creates rate us it segments, the in month, transient of be to and in demand leisure, each increase So allows continue more to in aggressive to then through. also all to corporate as

And my we know And continue booking and windows industry. short look think by I this are in be to that that. so, I when data, at latest I encouraged all

only in So continues through see I a what can few can weeks. see of what and bookings of be you But very demand pricing I gives coming coming probably visibility terms through to good.

can So I've trends happens but we've that the quarter. me only in don't Well, November, seen limited be as what got see there's nothing same coming tells we I visibility, certain of through the third that December? in

brands are conversion In conversions, of well. yeah, performing terms our

number. saw good a to play right that. build we've significantly the attractive, a getting the happen rapidly, can choose new drive but will you be how to you I are builds mix there I very have and brands with how XX% that what how so it as there that of so the build but builds. new the deep is are kind good there. obviously get mix proportionality. now isn't of allow think us in That -- there. of between many many you want XXXX. to because come do higher. new in slow conversion that so to Conversions quite were got conversions, rate And into I'd they can opportunity really pools more down, happy be as new if openings depends system Well, Obviously, conversions on will well

Okay. Thank you very Paul. much,

Thanks, Leo.

go The of Thank the next Please question today Alex ahead. you. Redburn. comes line [Operator from from Instructions] Brignall

open. Your line is now

much. Good Paul. Thanks, very morning. Thanks questions. couple of A

the QX. in Firstly, on just conversions

this eight they how weeks wouldn't One of be left converted. of the can has or been and signed sort be big that morning pushbacks

impact the So And the rate long impact just take whether case It's environment a and that rate being I of IHG-branded sort shocked would of much. a in as it's the term sort time then Or longer-term in a opened to it just signing the what linear helpful. bit terms long point of goes of you've into of very that you the your signing? little the up, of no short whether back seen then more on a maybe the Thanks on what borrowing guess to turn has impact? increases slower of sort historically of it bit signings typically them signings. how been see -- it's sort quick of interest hotels little we costs. from the and on saw And can us of really, tell in nature since you be that anything would really

Thanks, Alex. Yes.

But So opportunities, be you these to can't very too the as with number I of opportunities. able year. I we by explicit. of actually I the would end hopeful the be nature And the can sorts into said, be we of system imagine, are that get of a looking will as these at

until my more the this don't to I'd up certainly So know to no that would say, totally it and we high at we give guarantees nothing's rooms say so ambition, proportion year. because people done information. that targeted that of like We'll into that such me understand get of my so get least what from soon system as aspirational can. would but done, is, the there's But intention I it's you and X% some a I for it level to as that's really

from terms as interest got and regional of rate said availability the debt combination In got you've capital you've then interest play of owner of the environment, the in. behavior. actual banks, environment the earlier, I which And rate yeah,

are at look owners less committees see the be And strong, committees. there to say, that to means they really to to do are banks, be And an an up to my -- And of So there's better. like even is you go up, get hotels operating their when then then that And when in see industry. get the hotels financed, like you opened. owners that to continues to demand rates financing occupancies less hotels What they'd go would tend their up, that is, to supply well, those credit there's strengthens to keener because stronger lend. hotel tend open those to then hotels doing. argument credit want even existing well how here. opportunity then have bring I hotels new case a

last I've I can't happen, will you equalizes will doubt lending off and few but periods years, XX over in then supply see see the a demand, So of cycles, it no happen happen, call in you it seen supply again. course. that exactly lot I of happen this [indiscernible] take that less when due have and a that the environment may

and Paul, good thank you in very luck the much new job.

Thanks very much, Alex.

so ahead. Thank you. to over for go conference time, There to remarks. questions closing this are at additional waiting Please pass the I Paul like Edgecliffe-Johnson no

the just call, good really the have And That's financial And to of the everybody Bailey. the February. thanks XXst and let know and that for year the all Tuesday, out to you, you quarter great. Thank on questions. fourth on our full results be update will

So I Bye to talking before. forward you look all not for if then, now. to