HST - Earnings call 3 2023 | Host Hotels & Resorts, Inc.

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Operator

Good morning, and welcome to the Host Hotels & Resorts Third Quarter 2023 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the call over to Jaime Marcus, Senior Vice President of Investor Relations.

Jaime Marcus

Thank you, and good morning, everyone.

Before we begin, please note that many of the comments made today are considered to be forward-looking statements under federal securities laws as described in our filings with the SEC. These statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed. obligated update not forward-looking revise are statements. we to or publicly these And

today's discuss hotel we information, addition, call, In on will FFO, EBITDAre such adjusted certain and results. comparable level as financial non-GAAP

comparable are filed this on find our financial press reconciliations most yesterday's together Vice at You SEC GAAP and our Jim and and on hosthotels.com. With call can Risoleo, Officer; in that, Executive today's X-K information, Chief information in information over the to to Officer. With to website Sourav and with Financial Jim. Ghosh, the like turn President call directly President with release, Chief supplemental earnings Executive would the me I the

James Risoleo

to for morning. and us Jaime, thanks you, Thank everyone joining this

a on the wildfires Before we turn island to the the past take to that devastating moment quarter, August. occurred Maui to I this of acknowledge want

Host by heartbreaking All deeply impact of local loss and communities. on were us of life at saddened the

XX As is the has community our real on a estate this long support owner largest for company. hotel to to time island difficult to and years, through shared the helping Host important connection the over Maui

as response are relief donating more emergency rebuilding to organizations have efforts, to We $XXX,XXX assistance to as employees. aided and than and financial proud recovery providing well relief hotels direct and our

them to supporting We Maui to community the of employees, also and response their are food strength and committed and resilience these recovery teams. inspires provided the shelter families The continues. and emergency we as us,

all When from view to and to resorts continues a certain results Maui estimated will for quarter. comprehensive in Now Hyatt call provide presented which we hotel Naples applicable, let's Please Ritz-Carlton, more comparable the quarter. X Regency and trends results on the note provide Coconut business move today's the Maui of Point. the impacts to exclude that includes represent to the our results portfolio,

we X.X% third of of quarter, compared comparable hotel the quarter During XXXX. delivered the to third a RevPAR improvement

transient driven less Maui were on was results replace basis our high-rated an to of business $XX this delivered for by Overall, of million, demand XXX an on by proceeds of occupancy the we hotels and with points, $X.XX, business than expected Our had our delivered quarter impact led share which of mix as $XXX quarter. We business, of from able relief locations. RevPAR performance convention downtown which initially increase Hurricane impacted consensus adjusted EBITDAre we per and million our adjusted recovery group includes in beating both metrics. interruption FFO Ian

the quarter quarter We hotel TRevPAR XXX points, XX.X% that levels. Comparable for hotel exceeded EBITDA comparable October hotel is this hotel margins Third be quarter expected Maui marks and million. and a comparable achieved, have basis over the comparable RevPAR of ahead the comparable and approximately X.X% improvement by EBITDA XX $XXX, by RevPAR XXXX that sixth onset EBITDA basis basis margin by of RevPAR, wildfires XX of by estimate impacted hotel TRevPAR, hotel third $X.X pandemic XXXX. consecutive to points, comparable since points we XXXX the

X.X% our timing EBITDA to comparable greater forecasted year expected range the maintained midpoint full year hotel of XXXX. guidance RevPAR will and we RevPAR on which Maui, and X% tightened year be of comparable continuing is X.X% to wildfires XX yet are the RevPAR than about At full with XXXX comparable full coverage our growth year our our above expect is X.XX% the team X.XX%. to management engage growth our previous hotel to risk guidance, XXXX, known. Despite at hotel insurers with growth points, guidance and midpoint not business Our the interruption impact we potential full basis by proceeds potential any amounts RevPAR of

state the picture, macro current optimistic about several reasons. travel of As the we look at continue for we be to

First, to group business continues improve.

quarter, the the group total Even up ahead time revenue the is pace from booked XXXX, group now recovery of During and X.X% quarter. and the XXX,XXX same without second XXXX, through X.X% Maui, to rooms we as groups been the above The pleased group on have we and total have the we revenue XXXX group and booking window extend, both year. next XXXX. base with would relief for books are on continues of

quarter during its approximately Business to improved transient compared revenue Overall, to and approximately transient revenue compared business is business the demand down of the XXXX XX% up down was demand Second, XXXX, room XX%. continued nights approximately to gradual quarter. transient X% improvement third X% XXXX. third with

year. we were the in see improved nearly tailwind to And business Room just XXXX. XX% down XX% were throughout of the to the nights evolution XXXX. have a continued down In January, future. travel we September, gradually as in We

Third, remain leisure in well above levels moderation continued as rates XXXX expected. our despite resorts quarter third the at

XXX% noncomparable excludes renovated were the travel. demand X to For since hovering we includes in XXX% trend our considering benefits be X in Florida XXXX above from consumers that particularly international Maui. Fourth, up levels levels resorts air quarter positive same XX% in International context, transient newly September, of is from XX% XXXX of which near forward. inbound a our from prioritize rates January, going when to outbound in impressive the international at June. time, hotels and expect the to indicates the impact XX% air which on traffic this our after that increased traffic resorts third increased continue At XXXX to

is volume revert by imbalance trends levels evidenced U.S. time. XXXX to international for to As airlines, the booking over recent likely

alike, beverage occupancy still and spa XXXX, remained our by hotels. encouraging Most importantly, and resorts XXXX driven Golf and remained evidence that pre-pandemic levels. also ahead given of which seeing XXXX lags significantly we are and consumer nonresorts is not revenues levels. both above revenues of weekend a outlet at Food

indicates at to consumers ability hotels. experiences continue on that Taken together, believe desire to we this spend our and

reopening is the up Vanderbilt increased in since July exceed we reconstruction rates The were our that resort the Transient received transformed Moving XX% above by half driven newly expectations. second are our Hurricane and suite very of this underwriting its to mix in Tower. following been to has XXXX for set optimistic Naples, new year, well the efforts Ian. Ritz-Carlton, the

Looking suite XX% almost night is over than forward in with room premium rate of bookings time and than XXXX increase $XXX festive season, are pacing the same booking a pace to ADR XXX% $X,XXX over up club-level XXXX. an more more up with

forward of AAA it the the are coveted that to receiving, proud delivers seeing we is results in to including come. the the We well-deserved designation, Ritz-Carlton, Naples, attention X-diamond look and years regaining

$XXX we approximately expected In terms of for insurance costs. received proceeds million have potential million the Hurricane Ian, covered to recovery date, of of related $XXX to insurance

we interruption business additional we in and to third quarter, received $XX business fourth During quarter. $XX expect of of million proceeds the the million interruption proceeds, an receive

by exceeded nights, year XX% on which the of books for quarter, XXXX Revenue increased the group in group. comparable the as from Definite XXX% consecutive represents the XXX% million to actual marking X third quarter, to third up fifth revenue quarter, exceeded XXXX approximately Turning Group quarter. room nights room XXXX the in group full XXXX. of second

year groups quarter. the time basis part books year the the full same on is X.X% total last time due point increase up second to at XXXX, on same XX% to up is the and a to approximately For XX in pace up relief the and X% since recovery Group time same XXXX, Maui. last revenue rate group year,

and to XXXX, room driven XX% the on fairly ahead we quarter. by definite room up same the XX% pace increase books, rates. the evenly nights time a revenue group million Looking last X.X Total second nights group since have is at year,

citywide encouraged are pace, the and improving by We of increasing ongoing as group evidenced strength calendars. by booking windows lengthening

Moving to portfolio reinvestment.

on We include Atlanta; with Hill; Austin; Regency Hyatt capital D.C.; at Grand these will San the markets the their complete portfolio. success to capital the Hyatt Grand the Hyatt that and excited the compete enhancing position Hyatt Hyatt announce transformational targeted X to properties believe Regency Marriott respective Building program, while Washington, Regency in reached long-term the we an in investments of hotels the performance. projects Grand we portfolio Hyatt better properties Capitol are the The our Reston. agreement the transformational Hyatt to Diego; reinvestment

has us priority these agreed returns with Hyatt on to provide investments.

Hyatt the anticipated associated guarantees Additionally, in million disruption as protection provide investment. with profit will operating $XX incremental for the

expected is were planning million, plan invest of of to as our we few part $XXX million to which approximately capital investment X/X be total Our $XXX years. over to the next

and $XXX to million year the X million next invest to X $XXX between expect per program. We over on this years

annual priority returns targeting We of incremental index in stabilized share RevPAR cash-on-cash on gains. and are investment owners' digits low a double through our enhanced returns combination the

for Kea hurricane ROI Turning capital expenditure which $XXX redevelopment, to work. repositioning $XXX to Canyon Suites completion Lani World to tightened Phoenician million projects Major at and expenditure a the million projects, approximately transformational to million Orlando the December Seasons $XXX range the XXXX, $XXX million for Disney and for million million, Resort. guidance at $XXX renovation $XXX and Fairmont to of as capital as investment includes we well of Resort restoration start of development our included the condominium Walt construction the luxury at at Four the Villas

are with underway the of Collection repositioning and hotel renovation top of first as be Hilton working well Hilton which Island are quarter Singer Curio the we is to the we Lastly, XXXX, in Resort. brand complete the expected with a to

a the our repositioning investment. are mid-teens in on stabilized We cash-on-cash return targeting

what to exceptional in times us saw you balance position do multiple the quarter. we us is our As have execute third said before, many which on sheet fronts, puts during a

exciting We we enhance portfolio stock a announced the in and an growth approximately continue our through increase comprehensive believe dividend. program shareholders to purchased with capital XX% transformational future. $XXX quarterly of to renovations Hyatt, our our the will well million return reinvest capital of into EBITDA portfolio and we our We in

believe state the well to environment. current very and economic outperform of in about Host travel, optimistic continue be we We is positioned to the

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

Sourav Ghosh

XXXX good our I everyone. operations, you, go sheet and dividend. comments, Thank quarter our detail will into Jim, on our and updated on Building guidance, balance our Jim's third morning,

estimate rates that this XXXX. higher last encouraged we Maui decline by despite X to mix, resorts were the business basis XXX renovation overall Beach XXX remained which quarter, comparison impacted the contributed from the points XXXX transient the at quarter skewed revenue over that down which transient with the in third year. than Hotel XX% the Starting resulting transient impact points, and to basis We at Maui South revenue of

markets it's Francisco remain the within worth quarter. but third to transient below of continued resorts room at sold normalization the New rooms see XXXX. during levels to was revenue approximately we San expected, York, the quarter, third in XX% X business Business of in were XX% noting nights third transient Denver, XXXX X% compared above largest rates transient XXXX. approximately a our that XXXX Business of and transient As quarter

room nights, transient to Looking they're largest drive night continue large during compared audit biggest compared customers, decline XXXX. of technology also top companies travel the firms but night and XXXX. room showed at to quarter, business large business to to room the third share contributor Encouragingly, growth the consulting

compared XX% Turning were a also but XX% Group its the at XX% skewed up on to relief base. would these strong which driven to quarter up to by higher New room a driven our in-the-quarter-for-the-quarter strong results Maui were revenue. convention our X%. building noting group group. recovery year Francisco of growth Maui compared by above still excluding positively by results In-the-quarter-for-the-quarter worth last of It to have the San meaningfully, to were is revenues and increase group group hotels contribution. been room Resorts, York, bookings, XXXX, and room continue rate as that the in-house Phoenix bookings third groups impacted XXXX and contributed night with focus

in continued up from third We XX% arrivals are by stood quarter, of the San at driven which Francisco, encouraged increased recovery of international XX% airlift in Asia. from quarter first the levels XXXX to the by

by to With growth. X% corporate in revenue driven third X% quarter, was room respect group mix, up the rate group

citywide was revenue by to in third compared last XX% year, remains down room Group a nights quarter the as decline in recovery led Association the uneven.

in XX% was driven Maui, Social, the and by the smart designated third which military, relief or fraternal educational, room quarter, recovery and on category. SMERF up in Group nights revenue religious are

in led our in by this up still growth York X%, New night been D.C. over room category Maui, Excluding have would and hotels Washington,

Seattle, last our Orleans by year, ahead, time total markets such continue same as revenue we pace San encouraged XXXX group is pace to be in ahead Diego. Looking XX% citywide and booking the New and of the

group room have same of ahead last time All year. citywide which the nights of meaningfully

Shifting performance. gears margin to

in grew X.X%. came above were Our basis third is quarter quarter which the comparable margin comparable EBITDA XX third hotel of at X.X% XXXX, Total XXXX. up while comparable XX.X% over total points revenues expenses

XXXX. margin EBITDA times the below X occupancy above still expense remains we many comparable inflation that past said encouraged years have we points As are before, XXXX hotel X despite over and elevated

As wildfires comparable Maui, our midpoint X% our to guidance we and at to range Jim previous year in RevPAR year impact the tightened the mentioned, maintained growth of RevPAR growth X.XX% the expected of hotel despite full full X.XX%.

continues Maui. range contemplate at to single We the hotel would varying top quarter evolving to in end digits of up primarily range driven the degrees changes down the percentage the quarter. RevPAR the in low the guidance be fourth with expect of bottom end Our single digits nature moderating year-over-year demand on growth fourth low at comparable by to

guidance Please the billion. and the adjusted third quarter, business we of quarter year roughly guidance we collect fourth our XXXX million, of information, received of proceeds, midpoint, of $XX Ian. $XX slightly interruption supplemental financial fourth Page to XX to EBITDAre follow At that expect trends at $X.XXX quarterly our implies fourth results includes in EBITDAre RevPAR an as is to expect quarter the adjusted full which related provided midpoint Hurricane million we We expect would all operational positive of the in growth. our which which quarter additional seasonal on note which

EBITDA interruption, It Excluding interruption we year Point business a is million revised remember are million expect year Regency despite XXXX. contribute and Ritz-Carlton, to important the Naples estimated that the Maui. Hyatt to onetime of proceeds nature, a our of Coconut full the full in quarter in midpoint although from $X declined $XX second year EBITDA of impact hotel comparable business impacts full only versus

As a EBITDA proceeds time. operational to EBITDA affected results this reminder, or margin not by business they are resorts X related and comparable hotel noncomparable comparable are at interruption hotel these as considered

margins. to Shifting

points end utility at our the expenses down few have down attrition to hotel year-over-year, we low the basis past and lower to guidance XXX be of levels at comparable the high hotels, points and insurance XXX our we fees. to higher over end at basis As EBITDA stable quarters, discussed expect due cancellation margins staffing and

stabilized basis to we do reasons, is this up be cancellation at levels, inflation. points comparison a for year XXXX, we these representative end to despite the XX the low of and For is Occupancy not margin end. expense below for XXXX up from more moderating year represents a comparison, at believe expect points XX impacts attrition meaningfully our expansion to margin guidance XXXX Maui. believe which and margins revenues we This high still margins. Relative

the Turning to Sheraton sheet million to position. our and liquidity repaid balance $XXX was full The Boston loan the quarter. during the buyer in third of

years Our is weighted weighted a X.X%. average maturity of average X.X at interest rate

billion available balanced due April $X.X with $XXX of our We leverage, full maturity includes ended third $X.X next million of $XXX credit X.Xx of have and the quarter we of have schedule and in our We a reserves billion which XXXX. coming total liquidity, maturity FF&E at availability facility. million

our X.X quarter of total to per an total the $XXX at to million. have we price bringing share, repurchased Year-to-date, In we million shares for price for X.X average shares $XX.XX our $XXX repurchases at addition, $XX.XX, average bringing an repurchased million year repurchases of million. the

a future to at remaining of million we our into increase or $XXX approximately over program, we dividend dividends sustainable opportunistic Though We factors, quarterly per share repurchase dividend $X.XX have paid company's our approval expect to second under and a executing of will by $X.XX maintain an quarterly share, dividend. Directors. XX% our continue consideration be to of quarter potential cash We the of macroeconomic repurchases. all when subject capacity taking level, Board are

our to We outperforming. team continue sheet are portfolio, of our We and and balance our positioned future travel optimistic remain well overall. believe our business on the

it shown, that, in have possible, we address your can and we we strategic will be questions. do take As continue limit would to all the yourself current to questions macroeconomic as question. many have X to as happy environment. With time please Host we ensure to be To

Operator

BMO. from coming Klein Aryeh question first is Instructions] Our with [Operator

Aryeh Klein

as the And It's next and from XX% on just on bookings, for extend? standpoint? group a touch do year. next Maybe bookings could you're markets for you what from up booking ultimately which looks think the for and in-the-quarter-for-the-quarter narrows seeing if just that you maybe strongest year Curious windows bookings year next then pace group pace. weakest

Sourav Ghosh

Sure.

the that QX, pickup more seems was So That QX consistent. for quarter. and nights room meaningful XX% bookings of be QX. picked about XX% that that relative Jim a that to picked looked pickup we to QX We QX, trend in in-the-quarter-for-the-quarter for up for about and was in-the-quarter-for-the-quarter. at a pretty XX% in group third the XXX,XXX for saw of spoke up we about QX to actually 'XX When we

next booking that any because expect do we extends, just moderate into somewhat window capacity there Going to left, at frankly, as the year, the be hotels. wouldn't

about all before, perspective, was extended days by XX So was it to and days. that -- by XX arrivals which then days effectively like future that put booking window in-the-quarter-for-the-quarter into days And extended now. XX XX it's

that for in-the-year-for-the-year definitely as future seeing we're well extend -- years. for as So

will you So year. moderation next see that into

Orleans XXXX city-wide look QX. end relates As pace we we're you pace right XX%, Overall, at D.C. our it the Seattle, saw meaningfully XXXX to next that will actuals, now, Diego, do up Boston, interesting Miami from XX% New when is seeing year, room as we of strength well well. for to strong expect and for the XXXX, in certainly and of is which is night portfolio citywide at as which markets What's is Orlando actually San as

Operator

Baird. is question coming next Our from with Bellisario Michael

Michael Bellisario

then you program? do had X-point just for the Capital RevPAR to lift those X- renovated? the you the hotels, for same maybe that Marriott on get What's underwrote X expect average, penetration to and were when Just last they all but on the Hyatt current index program

James Risoleo

it in that be But say undertake happy that comprehensive suffice you. gather X properties We'll in million at share the with were work of of information that guarantee owner that We Hyatt for to renovation. and all we and to agreed need the Yes, a hotels. priorities the both believe transformational enhanced were specifically to it work disruption. $XX we to these return to Hyatt going with these X/X of About and support Mike.

gains. in the we and capital by driven the we saw priority as see index Marriott as with returns well program, So transformational teens that be yield will as owner the enhanced low

high and the certain truly just properties. think I competitive X very program, time than are, refresh assets that yet not meaningfully -- sets we longer gains. the index that we a We due been to of and So Marriott having that. recollection, to but the to outsized for our your in was in we a had have the that where X performance given points, of underwritten to stabilized degree York, seen particular, all They're property. But have comfort XX yield like New certain properties delivered closed assets above have we're due

So to Hyatt able the X years. we're their on next to getting over forward really be to with with which looking largest this X excited owner. complete will we as to program, And partner

Operator

next is with question James. Our coming from Bill Crow Raymond

William Crow

Point it right some it? $XX way million, third the through is about Sourav, think plus $XXX $XXX about of the BI in And recoveries could is million to you that the to to have year, say in that [indiscernible] occur quarter right, potential next the fourth? clarification, then still fair million

Sourav Ghosh

now. get an be the with Yes, we BI allocation still and We're to There right between million. our property. $XXX insurers will to plan working

okay insurers So million in That's BI. we -- letter forecast. they're we $XX we be the will of why $XX have of from the that got far, our what have our million BI with is

be. know $XX is the what with the of be working but the to more all still number $XXX to million. the won't get insurers collect are to It Don't certainly, going on the to that remaining exactly million, We balance, than

do expect some year we BI next amount. So that

insurers We that is are as going to with our what still working to be.

William Crow

thinking few of flat hear on versus is 'XX. a X% REITs much what a number XXXX months, could is. versus margins about we'll that And really the going year? my the you then we're what our of the do of Is comparison you I top line been be instead XXXX. I'm margins about I've And right. All talking question growth it before own make next to number? a of question get decision sort In how asking 'XX EBITDA you But that the need is,

James Risoleo

we where June to budgeting July with every we X% would the are that it given and come the in the growth share wage range, because to process. year the What going June through baked through X X% year, you June are in, to I that's Bill, or renewal difficult every answer respect with certainly it's this at really question, renews guess, they're insurance can is costs where X next anticipate to of I is of next year year-to-year, XX. time

technology impact will lot be happens we for look utilize been we each hotel opportunities as are renewal, in question improvements and as variables mark budget, to in insurance And have there of and So a that. can will productivity on continue doing. what we to that granular enhance get

would million the don't event. interruption to Ritz-Carlton, want will that going share everything going to a set of I important going And expenses like the time from back to you Naples we a Regency But kind to command we the that is couple level onetime the we year are Coconut of do and next of not $XX onetime as think full Point I control really I online that event into It's people business of received do this next base to So our forward. perspective as year. that Hyatt EBITDA and with because just think true stage numbers what the year. be it's possible a

So...

Sourav Ghosh

on expand that, to just Yes, Bill.

it the way about level to the base. think at to think first I

So and EBITDA about Maui the has from XX, When you then impact million $X was now, million XX already that timeshare. the our the guidance of midpoint at from the $XX get year. hotels into think made growth even $XX up which negative of before right next from a of we million for

year second we next Maui that let's impact about a for still similar a recovers. into have So as assume

proceeds year, Hurricane which if then mentioned, as of it Ian. was think that that Ritz-Carlton, would And of this we and that have Jim million not Hyatt the you BI Naples majority effectively about EBITDA $XX Point for Coconut from that the received for

year. So EBITDA would be that is next for we receiving

words, growth base think billion So starting at before it, other about you any plus, is makes the if in sense. off $X.X that if

then, that Jim And in we of else, working and through, we course, initiatives we working on. have as terms expenses are many of mentioned, and everything are

So while provide there will be inflationary -- expense year guidance pressures, at initiatives in next we we various fully anticipate and to February with the mitigate hotels. will those call. that And pressures going February with productivity the typically on in enhancements you have as we do we

Operator

from with Duane Our next coming is question Evercore ISI. Pfennigwerth

Duane Pfennigwerth

I was good Bill by a response thought by question and that you.

What Maybe were Hawaii the get really maybe a is than quarter would the And Hawaii. play about you to you just It little what could to end terms another anticipated recovery, you the would high like I'll in what end? needs ask just delta then of why to happen? since fourth So bit get the things the you better just third sounds the guidance back question. in quarter? on low

James Risoleo

Duane. Sure,

tourists recover. November have for west some of yesterday. is. Maui, The point surrounding going reopened than uncertainties full side this time have to that just Let year me the is X I Maui, it wide in Ka'anapali, by -- been we of because is how the on But how were the guidance to at range our of range Hawaii Maui tighter it think start saying for a not would

people time rebooking their time are comfortable So believe area it's take see side. going back And I X to are. going for the take to do as where how it cadence to other to Wailea down stays the will people of some get the some come well in to resorts west our

we to disaster. a that's see horrible efforts were got fourth support the terrible, the first, reconstruction a just happened. support cancellations what made people of the governor, care and that is relief and quarter that did fully due in you've because fact the by on fully to we Maui and And happened some take pronouncements of the lot what's We

was result initially the the a of performance recovery. than in that So reason better is third we our as quarter anticipated

rooms First And FEMA providing a by was at as we than residents. that as pick displaced really responders caused housing anticipated. for taking our subsidized material up well better that property

to did You quarter decline a amount happened an on attributable was by in what the see directly Maui. that in TRevPAR

I basis TRevPAR was impacted spend, spend out-of-room the think by the XXX points.

long-term Maui. optimistic a to for the we can and the we're future, recovery. great So will we do It's what support be, place great place and to

Duane Pfennigwerth

put of is that to fourth duration sort The first the just of range, delta a the point organic on finer recovery? it. maybe Jim, quarter, in rate just in the function the a of of or leisure responder housing

Sourav Ghosh

which west really actually Yes, of to the as up November opens the side December. yesterday, It island look it's and the as at X. business disaster that up, a little opened difficult November is recovery and how will of off taper

the trying the properties demand it's like of gauge replace sort the pickup with So looks regular how and gauge business. to will are they demand recovery to -- that trying we're -- what business

not for October that I numbers at Maui out was the that it will if delta. X.X%. was put we impact, is So say driving What

have for would wasn't the higher numbers impact. quarter Maui been fourth X.X% if slightly Our it the than

James Risoleo

Maui Yes. to And impact and point XX the and the is of comparable kind way, from line on top million at hotel off -- RevPAR line. points EBITDA year hotel anticipated basis just bottom fact wrap the comparable -- full $XX the our for of up anticipated this

a occurred, X.X% able because guide on about raise talking the not have about call been would an Maui had to have talking this sense, that been in we we keep midpoint were for we guidance So this would at year. X%,

Operator

Wedbush. coming Kornreich with Jay next Our from is question

Jay Kornreich

on comments demand some XX% made back You September transient getting profile to [indiscernible] and to accelerating XXXX. the urban business in

the So in if you some your narrow on I'm next some how in color some of just been X? to provide how year you over have XXXX? peers see more that, provide that can you your Maybe think could can if And their diminishing or market that color within on assets [indiscernible] you maybe Francisco. trend wondering exposure much San

James Risoleo

completed of quite business. off Marriott's for transformational San take results market first I'll a to the set that now, physical talk can relative is And Marriott in asset the be, the the it, are It particularly and think was set, in completed condition. been Sourav given paying the place we everyone we in about a time the program, great transient. we piece bit as best Francisco it of building Moscone group part Sure. term San in are has then the that solid excellent assets I is base Jay. a Francisco the some today. business the condition. long in-house to terrific Francisco, capital San we own, which for XXXX. located believe It's outpacing, think, competitive of And the

The Grand condition in in Union great and physical great Square location. a on also Hyatt

business are were In of and our September, to San it's one in just we Francisco, down markets, travel relative we're travel in XXXX. seeing So room where a top nights about of return Francisco, business we San in in XX% particular. total

the XXXX, to think a slow from And steady. and get I XXXX challenged market But Francisco we year will perspective. optimistic about evolve. citywide a we're be going how it's San is beyond So for as

Sourav Ghosh

year-over-year well. is And encouraging there on the is actually is volume add was year. X.X% almost to room which X.X% Yes. And lead piece, the Marquis San as up nights Marriott as San I'll Francisco our up last Francisco group

and Conferences, that's citywides San mentioned, APEC, well. the Pacific really that hotel. So believe at -- as making as in-house Jim effort they that Economic Asia quality inserted Obviously, 'XX, are why should in be to for but good is Fran November really we are weak, group and get when

across which remarks, to'XX, a question But portfolio for the recovery it the spoke call year, perspective. had rate XX% strength been that the we down a board it's special is York, to it, room down of As almost is night is double the the New slow our as in recoveries major about impressive. XX%, San night very corporate markets, still only room Denver Francisco, Obviously, this from we said, around your very, relates prepared pretty BT, on the digits.

BT. same terms of in In more XXXX, we the of terms expect of

GDP continue will recover, X meaningful reality and is if to macroeconomic when at a to but back come way is -- there We BT a is expect certainty slow just certain markets very to more in with that pace. growth. recover comes in The in there's a growth there investment And way, reduce. way and and that close a nonresidential believe meaningful comes economic growth meaningful fixed relation back a we We to expect back once pretty RevPAR. gap

Operator

Smedes Our Rose Citi. with is from next coming question

Bennett Rose

of does nights just in group you wanted million for be year. for calendar sort books you just bookings I would you're X.X ask to mentioned in group on the next compare when the to room How you, where late year terms full of normally that the year?

Sourav Ghosh

Yes. that XXXX, down When we compare to XXXX. are XX% about relative to we

Bennett Rose

Okay.

just So was you that the Any full. Sheraton Sheraton mentioned the And Square Boston, you in the repaid loan can catching update on mentioned then up. Times loan? financing ] [ Sheraton

James Risoleo

-- November loan November That Yes. We XX. on with off forbearance extension and and Xth, into the next was worked borrower the to Xth, due October to Wednesday. agreement next entered a be paid

that to in the of agreement, the an part was paid interest rate rate and to effective XX%, all XX%. be upfront brought that was there restated As

the in loan final paid are next have stages Wednesday. of to completed they a So necessary documentation off by the

Operator

Wells Dori Our is Fargo. from next Kesten with coming question

Dori Kesten

deals marketed year? sale shadow buyer seeing you hear be you're what on of a to Based today the next you pipeline then expect about, and net would for

James Risoleo

Dori, clearly, so. Host. mean, really is I balance sheet for I do. I differentiating factor our a hope sure

third don't cash at allocate deals, the quarter saw and today, said, many we've X.Xx capital a is a bid-ask just ability the done something have seeing fronts, sitting fairly as marketplace. us this we're ability to the spread As in significant quickly. them and can though, we and that I There think the in here market to all pipeline. get the do still in you today. What -- isn't across lot do leverage product do anyone else quality there's It's of in

as believe a our and and We we to quality assets and XXXX. and into relative is to to to and a pay which continue invest But of very owners, acquisitive. only a be assets sustainable wait capability of also get our the people, we'll are lot in stock, back we and have pricing dividend buy trends of hotel to talking see clearly just we the lot undervalued our how not have EBITDA

that crossed fingers that. opportunity our have year keep let's we next So an to do

Operator

HSBC. coming from Jensen next with Meredith question Our is

Meredith Prichard Jensen

quick two have questions. I

RevPAR think a we at comparable First, you're and you might and if looking how seeing TRevPAR, could what spend little speak near the in about or out-of-room bit on about term? that longer

managers moves And you there pressures collect where set time might over of And working Analyst meaningful that ago, sample curious make months you with down standards could to of there's might as Meeting, if at on some identify the be you cost then secondly, was to sort the some anything modified I couple of spoke brand recall think I a strategic given maybe about? about drill are, those. we some

Sourav Ghosh

Sure.

the remains and a mean group just NAV is quarter. contribution, that food pent-up pretty are of front, which on catering strong. beverage from We revenue COVID. I room basis effectively last a and still groups banqueting, On catering lot per had group banqueting demand during night canceled

the difficult So amount year to compare of QX when group we excess results it the this it's that to just beverage, and of results very had. because to food QX comes

even internal expecting our and be the to were down. food revenues Maui, we impact actually So in of beverage without forecast

food really moderated in and terms revenue. said, of That beverage has that

contribution, We a per occupied are getting significantly revenues meaningful in and than are catering outlet amount of room XXXX. banqueting higher of back were still sort they and

is had and moderate as quarter. saw is That into impact -- next has The you the third certainly right? year get attrition piece an that we revenue, to cancellation going in

ANC quarter being year. was revenue last literally with Third about what down of half it

received to revenue. moderate range. out million into XXXX, close thing $XX million to on. attrition put think So million look one $XXX We the just of cancellation That's $XX in that's we perspective somewhere going keep to to that around --

question was... And your second sorry, Meredith,

Meredith Prichard Jensen

of sort looking modifications over could working there on sort Just time Is -- made that with on brand standards. on it was strategic a question be any post-COVID? of managers

Sourav Ghosh

constantly both evolve guests. also as can incremental to value believe which Marriott Hyatt ones we say from leverage technologies frankly, the standards help and a and And that I customer would truly working enhance for figuring to brand ones we We concepts the should of to and out productivity -- It's will which really the pandemic, but evaluate post we which standards we only keep modify, are brand ones and technologies, eliminate, with which to always drive continuing relevant. to piloting proof are value the line. managers standpoint, doing brand our made the on experience, not meaningful conversation, a into drive changes bottom those technologies

Operator

Tyler question Batory coming from next Oppenheimer. Our with is

Tyler Batory

a lower Few resort you the resort and the some are questions the at your seeing points? price portfolio leisure or the on within those of higher-rated divergence different commentary. that Are little bit any between and properties

I you're about of you still when position, the And then guess, But terms just forward? there. best end to transient here? and little seeing those guidepost sort sort growth of -- the couple about you What of above look of that know of Thanksgiving number how what much your get at book going rates kind early next or question, part And perhaps QX still and of expectation a of demand, then curious talk it's in holidays, sense is for in slow. a this talked XXXX. Certainly, quarters Christmas. have in going and the where up But kind trying you third XX% of what could rates should do expectations resort commentary

James Risoleo

Sure.

asked rates our rates. were last respect very third of that question happy in the the XX% with leisure XXXX. leisure you with transient they start quarter above where We're quarter were the me Let in transient that third to

points the down For that's from were about in X quarter. percentage where second reference, we

were we quarter, Second ahead. XX%

that Ritz-Carlton, the and Naples Maui takes negative us Hyatt and it substantial that to our XX% Regency a resorts continue to account we customers that into Point properties fact are to that to our Coconut give the a the given comfort the willing of does number to charge comparable own. And X level on the excludes are just able nature our pay going rate be assets of the

get as able to strong across all So divergence a we that be we're we'll resorts They're into fourth have. very at year, we optimistic the continue get properties. not high-quality And to quarter into next we're seeing assets. drive the as all these we really performance of and XX

the we're on going be Tower. respect underwriting room Ritz-Carlton, we're that category the Naples very, able to expectations at expansion property booking of outperform we're with think to impressive, what I the very optimistic across very pace that is to and seeing our Vanderbilt every

on going that forward. do we're I think and better we underwrote investment, return a much to going XX% cash-on-cash

unknown signs to this caveat seeing weakness are we year. but just surrounding the as So saying, Maui I of move not we happen going by holiday into season. -- the for would that what's any in

Sourav Ghosh

holidays question and the on are of pacing. And things how

year is direction to we -- we timing remember, was timing slightly which year. open time during a tough You this to the books first the keep QX compare very a holiday flat, time effectively that much is somewhat tough the holidays year mind, Christmas on like have present now, what off, the comp really in you right you but specifically and that to the is revenue Thanksgiving, a to of for travel have because said, last country last think have, last But for more was broader was less encouraging. it's Maui And it's when season. for

we So But X% were about down effectively pace. in of is flat terms less Maui off X%, how now revenue. right pacing Christmas in flat

Operator

Anthony next Barclays. question from with is Our coming Powell

Anthony Powell

coastal A And starting market to has business that quarters. past I one question urban on being a newer the there's renovation markets? kind year. relative Texas. of it been in think all be and down has more markets, Austin, your your next disruptive? just center of travel the how down RevPAR experience over been convention there that technology more business traditional Is Would few broadly,

James Risoleo

that think I Austin -- have we Anthony, in properties X Austin.

the have Austin. Van Regency and Zandt, We have we Hotel Hyatt the

during we purchased given take and Hyatt incredible is Zandt able And that the Van Zandt was more if there the really property. I fact Zandt the construction that that district, the group as is business lake. Van there hotel is its think you, particular the well. remind first don't across done impacted as asset that during Street well given well the quite Austin And Rainey of was in-house platform deal in -- a doing recently, you've location of pandemic, has around doing pandemic. to Van quite Just asset know the is to that actually and to it's but it Regency leisure-driven submarket, first was we're amount that I an space been meeting the that property. the at

But Street's as because and a office. to it's So occurring there, development myriad out be business get long going think challenging cranes of residential the it's great forward as until going open of be I to up the there well we the it's in term, term, again. new going for to the short is

well has had the that asset. -- tech in near an as impact a and of on bit So term

Austin ways been on So and as have we not expansion market. the you're as of any about closure absolutely renovation that have with with go will convention hotel plans Center, the officials or in a center in can owners or center right. in With business to forward respect talking other the taken presence -- Austin mitigate Host with they're the and can a appropriate convention staged have actions to meeting that Austin also impact to well the for who talk whether a going about Convention

and So we're any that going surrounding can we the everything forward. being to proactive doing issues center mitigate convention potential

Operator

be coming Bank. Deutsche with will today question final Chris from Our Woronka

Chris Woronka

there. there's So next there's know a going available to to be might that big pipeline debt stuff talking you year mentioned that We related acquisitions, Jim, refinancing. I come about think out that's

one-off look potential acquisitions years willingness done What's -- to EBITDA a guys a last of deals assets, the do at the assets. been you've your you bigger lot pipeline, kind As you've couple have of of either few of CapEx what willing involved a of or of lot do portfolio upfront? Are different last deals years? something you to done kind a of in type where there's the and deal lot

James Risoleo

Phoenician. and they we extremely the bought be we near $XXX see that to in well to accretive think is asset of performance I And bar, has mean, have in CapEx believe we be example And we property for can completely is that. a a reimagined repositioned if exceptionally great million new I is is of answer a performed asset short all XXXX And see transaction a the portfolio really would lobby think, and assets the needed that complete and amenities, well. doing our including that shareholder new term, if way an needs value. the and do Chris, we to it invested, I repositioned, clear to that needed it, is and the us renovation new a fitness asset and center, new rooms guest reposition the to spa, dependent.

would we -- we I look and if about out that's excited we at transaction is we deals, is that will look take if it find there believe be And at accretive, could that would doing. down. is So another look a interested certainly everything something an portfolio With we certainly Phoenician respect there, mind. it and at that to we open with

Operator

you. Thank

end the reached have question-and-answer our We session. of

his So I the will closing remarks. to Mr. for now Risoleo back over turn call

James Risoleo

and thank conferences day. and our forward the discuss great other weeks. Well, as joining third We today. to NAREIT for call person many always, in you. look to we us with on you a our I'd quarterly opportunity, appreciate at to like coming you, seeing in quarter of Thank the Have results everyone

Operator

you Thank lines thank and you and for time, you. This your concludes today's your may we conference, at disconnect participation. this

Host Hotels & Resorts (HST) 2 Nov 232023 Q3 Earnings call transcript