HST - Earnings call 4 2023 | Host Hotels & Resorts, Inc.

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Operator

Good morning, and welcome to the Host Hotels & Resorts Fourth Quarter 2023 Earnings Conference Call. Today's conference is being recorded. At this time, I'd 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, and we are not obligated to publicly update or revise these forward-looking statements.

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

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

James Risoleo

Thank morning. several you, joining fronts. for a thanks Host us everyone on XXXX Jaime, this terrific and to was year for

strong by continued largely delivered we occupancy driven improvements, growth. rate operational and increases First,

Second, our on we objectives the in XXXX X to efforts we we ongoing benefits future. well established strategic realize completed will the continue work and of the the into

to form significant reinvestment we in to and in our allocate renovations our capital X Hyatt complete at of repurchases, share portfolio. transformational announced stockholders continue portfolio to Third, dividends in agreement through and properties with successfully returned capital an the

to Lastly, in growth grade sheet we position including the lodging balance maintained potential on Host space opportunities and an capitalize the continue to see investment significant we acquisition opportunities.

our adjusted $X.XXX and of year guidance total full billion our basis range. points hotel managers. in grew per XXXX Notably, our model to the midpoint EBITDA $X.XX. X.X% X.X% XXXX. was comparable adjusted large efforts XXXX XX We and results. EBITDAre delivered RevPAR hotel the redefine Turning due RevPAR grew our operating share Comparable of above finished hotel comparable of We to of FFO with hotel compared part to to ahead margin

which improved compared Ian. delivered proceeds fourth of to hotel EBITDAre RevPAR quarter of of $XX share FFO adjusted per we million X.X% of Comparable fourth interruption from the $XXX Hurricane and XXXX. includes quarter, $X.XX, million During adjusted business the

occupancy quarter comparable Our we an more XXXX. wildfires achieved of of seventh hotel driven XX for onset total quarter point was basis time. at both consecutive rate. Despite and the RevPAR, in marks the increase RevPAR estimated have flat performance from the our quarter EBITDA margin in pandemic hotel Maui, EBITDA margins that the RevPAR was the XX.X% fourth by an since say or will levels. XXXX to one that comparable This and I above impact

We years. above at nearly operating have for levels or XXXX metrics delivered X

our hotel As which a our reminder, to comparable the excludes Ritz-Carlton XXXX, and Naples. portfolio Ritz-Carlton, excludes portfolio refer Hyatt in Coconut comparable operational today Point Naples. XXXX, results discussed hotel only In

wildfires results at demand our by During XX by by fourth Maui hotel margin the basis points. We EBITDA and our comparable the RevPAR were hotel estimate quarter, impacted Maui. that fourth evolving again XXX the X comparable comparable basis portfolio quarter by million impacted by $X basis comparable XXX nature RevPAR points, on total hotel resorts EBITDA once of hotel points,

in hotel points, year. basis impacted year, venture that that full EBITDA XX RevPAR hotel points, XX basis EBITDAre the EBITDA quarter joint estimate Maui XX for our the basis million impacted $XX we Including $XX margin timeshare, by by adjusted and million points. RevPAR fourth comparable million comparable we For $XX the Maui comparable hotel comparable hotel full by estimate and total our by by

in compared known. Shifting market the was to RevPAR remains XXXX. insurers engage up potential both Maui about another citywide risk quarter. improves groups at interruption F&B business year-over-year results team is not of to of fourth showed in mind. yet proceeds group fourth any continuing coverage and Group driving the timing is with as the room San last the was Our that potential rate by are our revenue quarter year occupancy business properties in-house management revenue meaningful calendar with to have up shifted focus strong their top to for XX%. and XX%, Francisco until driven and amounts results improvement and up our the XX%

continuing positive We driving with the first seen conventions trends in have from quarter XXXX XXXX demand. of weekday

January fact, best post-pandemic quarter the seen spend estimate trends and quarter. at and of revenue in We all-time have month points the our Marriott revenues fourth other were other Francisco elevated beverage In history Comparable the revenues we due the XX basis Marquis the that and Maui setting to records. Briefly, and of revenue XXX and points, for looking impacts rest basis out-of-room by slightly F&B from remain fourth food Encouragingly, the Maui. with total down impacted hotel was respectively. out-of-room portfolio. San EBITDA in

strong by a In toward of becoming recognized net aligned to a the term. driving our responsibility progress focus We course to vision business, our updating reflective and baseline and measure growth operating continue the on XXXX. our current by and and social addition with of the to progress we more environmental These targets are goals as improvements XXXX to team positive over targets, social are our company prior environmental RevPAR enable our in made across long which and of XXXX, new the portfolio incorporate our will XXXX. leader over global be introduced corporate

hosts properties to operations on environmental and at zero have the are projects XX net with in targets pipeline certification path net leaving in We now XXXX, to a XXXX. third get by and by properties. positive to XX linear XXXX XX put lead Our generation their years

risk this perils, including our building certifications our addition, X only to have asset sustainable level results, identified heat, perils, contributions, wildfire long-term which their including capital us better X and are and corresponding near-term climate and and climate to the In assessment elevated risk investments flood, wind with we we acquisitions. water to responsibility on allows resilience the Based lodging across climate highlighted and REIT and cold financings. In report, year's assets potential stress. we corporate green have prioritize underwrite linked EBITDA

and targets are generation sourcing responsible target. new responsible second social now supplier chain and Our supply include community X their in around one targets diversity impact and XXXX

integrating we to best our lead inclusion diversity, all choice, of by industry belonging As an our aspects and aim of practices into employer culture. equity,

Turning to X.X share We an quarter. price million the $XX.XX shares fourth average repurchased per capital in at of allocation.

we For repurchased shares $XXX XX.X the million full of a an of at year, average price for share per total $XX.XX million.

share, capacity quarterly the We approximately remaining increase a million have prior XX% $X.XX of we over quarter. an $XXX declared the fourth dividend program. In the quarter, under per cash of repurchase

capital $X.XX XXXX. to total, million share. In $X.XX a shareholders of We the also year per declared we announced to for in share the per over special $XXX of dividends dividend total bringing returned

fourth Sheraton financing $XXX York to the loan the of quarter, the repaid in buyer disposition. provided Additionally, the we New the million effectuate seller

us fortress allowed and capital size, access seller a dispositions X that balance opportunities and time for to unparalleled Our provide balance demonstrating at scale when to debt creates capital sheet recent value further sheet our financing on substantial and was have unique scarce, shareholders.

Turning back fourth quarter to operations.

improvement results in million Group transient mix XXX% and its Maui XXXX leisure to the to our Our as including bringing overall and recovery by decreased results driven with were nights group growth mix sold demand comparable the resorts revenue group for shift, strong by group temporary Outside X X.X increased with leisure expected. million transient nights. Business our were rates business with led transient nearly and demand quarter X actual for up XXXX nights XXXX, to Maui business of demand as X% room remaining quarter, sold of our or groups. gradual skewed at total growth group XX% resorts. fourth room this relief continued

XXXX about As backdrop are we several for look the at business, optimistic for current we reasons. our

is of landing. macroeconomic more a First, incrementally with consensus positive sentiment expectations soft

Second, our and skills. supply at is supply low levels in levels growth and in chain anticipated markets historically

allows capacity operating as inbound from for the is and demand cuts airline year. we in lastly, increased and tailwinds that later rate pick imbalance. And will transactions international macroeconomic to improvement market more improved visibility on we market see expect up this is continued performance expecting Third, the expected the sentiment

opportunities leverage As liquidity of on is $X.X we Host billion X.Xx. factors, to of best believe we capitalize positioned available these net and consider total acquisition with

XX have ROI in provide which believe, for we our X portfolio. projects, renovations addition, In meaningful tailwinds transformational completed development we

have RevPAR X.X which of excess X average points, date at to hotels gain results targeted that X points. operations, our Looking post-renovation to in of of share is the gain stabilized well is index XX the

comprehensive We drivers positioned importantly, most are also and resiliency our line not additional underway continuing top for portfolio investments us year. And renovations demand well expect and leave to do we with growth. the portfolio reinvest diverse in our this in disruption we meaningful believe

Sourav will minutes. outlook XXXX discuss our and in a more few detail operational

public of reinvestment. and of portfolio million completing In invested XXX,XXX guest approximately capital rooms, renovations in to X,XXX feet approximately $XXX at properties, space nearly meeting expenditures square to XXX,XXX we feet square Turning our XXXX, space.

guidance substantially we million million following property repositioning capital projects. for Hurricane range restorations of $XXX and XXXX, $XXX redevelopment, approximately addition, to reflects to million, our $XXX ROI which In is investment $XXX Ian. In completed million expenditure

the Grand program, have we transformational expect to complete Washington, half the started Atlanta already of XXXX. renovations the Hyatt the which in at Hyatt Within we capital Grand Hyatt and first

start at Suites construction of completion year. Other Reston Hilton Regency include renovations at Canyon will the expansion. of in the Singer Resort transformational the We the and the renovations this Island projects ROI also Hyatt major fourth the Villas of quarter Phoenician

Resorts Seasons the investment, million In we spend on million addition expenditure at expect Disney development World capital Resort to this year. at Four to Walt $XX Orlando $XX our to condominium luxury

We offset program, benefit for million will operating Hyatt from expect which profit XXXX. expected capital at to revenue approximately related the of the guarantees those $X properties transformational to disruption

financial and have we We sheet maintained. portfolio our are performance the balance extremely and operational of built and in proud iconic and XXXX

creation and confident significant to Our portfolio allowed call in continued value people, shareholder turn are and in have our meaningful growth to XXXX. will for ahead now value, the over platform With opportunities the create Sourav. and us I our that, we

Sourav Ghosh

guidance a of rate demand will mix. our above Jim, that good evolving split point full the that demand despite on XXXX, resorts quarter year's between was operations, tough and impact last demand impact which evenly grew the X% fourth the transient Maui in on detail were you, go X% from to quarter estimate fourth to transient disruption. Building and Maui. our encouraged Thank everyone. had sheet. Starting rate. I nature comparisons Overall by basis business down year XXXX renovation transient We of Maui revenue, We compared with XXX at driven into comments, and balance and Jim's was our revenue morning,

were our the spring same resorts. was X% pace Maui, Business demand down continued recovery. over to properties. Business pace and by up is XXXX, our driven ahead resort is downtown by of spring our to is at to the Room to in Transient Looking demand post-pandemic. Outside growth quarter fourth at rate and break gap compared properties revenue steady fourth XX% the revenue our year, to occupancy transient transient last nights at driven for up smallest revenue which slow growth rate XXXX, break. both transient the downtown for time and compared portfolio up XX%. quarter its of XXXX

full mid-single growth in by grew the In business demand XXXX, large alongside growth corporates For rate further expect year, XX% over demand XXXX. transient we driven the digits.

year recovery. Turning XXXX group. convention to the of hotel group and was

year, levels. year XXXX of For night worth recovery the and increased our room XX% that full last volume Maui. group and over results in skewed XX% by noting revenues It were positively disaster is room group recovered bookings to

XXXX we hotels both Boston, recovered of increase APAC night conference XX,XXX half to quarter, XX% attributed can in relief room contributed room D.C. and be estimated room levels. Group San to recovery an XX% on in estimate fourth growth increase. and the of revenue group to San in Maui, citywide with Maui, rate nights group an Outside in that the exceeded and groups Francisco Seattle night room by Notably, of volume roughly room XXXX Maui. driven Excluding nights. group and results November's drove by Francisco,

nights nights million revenue over room last where ahead XX% same and X.X year. were third pace driven to XX% rate, representing a of by the time up Total books, quarter, on ahead since have we banquets. putting this group is us we increase year, room Looking XXXX, the definite the last group time

encouraged strong lengthening windows Diego, margins. pace, the in pace as of key We gears double-digit Orleans, by D.C. Shifting such and San by business night and markets evidenced Seattle continue to ongoing as to be group strength citywide booking New room

EBITDA impacts as fixed margin As Despite moderating declines year a over well XXXX increases in representing were hotel and by XXXX. full wages expected, and as benefits, revenues these cancellation and expenses point year-over-year margin basis Maui. headwinds, XX.X%, attrition increase XX from driven was comparable

total our XXXX. Our strong in and years ability only comparable a margin to is considering hotel is of and grown X efforts achieve the still our result last execution, occupancy this to points when expansion expenses below of the X% indicative particularly operating is redefine the X model have

midpoint business, our gradual trends of Turning evolution XXXX. The operating demand guidance from business end, Maui contemplates island continued and with slower outlook a for environment a recovers steady group faster end, improvement leisure at our to continued and in the we our low we as transient, pickup. a in on of in the continued stable demand high recent At group increased the transient recovery wildfires. Maui and softer group have the the pickup at assumed Resorts and leisure have recovery assumed

we hotel over X.X% between of comparable XXXX. For growth anticipate full and RevPAR XXXX, X.X% year

basis expect XXXX at XX to margin basis at down We versus expect guidance impact XX Maui. a down be comparable points basis the high points Notably, margins end the we hotel from to XX points basis despite XXX down at midpoint year-over-year be low our EBITDA only of margins the to end. point

In to leisure driven the hotel markets for in demand. first saw single the terms digits XXXX, improving comparable comparisons recovery to of surge and a by to of business RevPAR in downtown group year, half the year expect elevated which be due tough cadence in RevPAR we growth of low growth the

We the Maui less of pace, comparable to half hotel the and expect second the disruption of booking impact the renovation the growth RevPAR XXXX compared diminishing in strong of as result a mid-single-digit second wildfires. of half group year

hotel range, XX growth For of EBITDA XXXX. below a margin January, expect anticipate midpoint comparable compared X.X% hotel comparable hotel guidance improvement our a the approximately be is RevPAR points to of and RevPAR we to XXXX X% over of we which XX.X%, comparable At XXXX. $XXX, basis

Maui estimate points. about by comparable hotel we impacting that basis we and points bridging EBITDA basis As XX think hotel RevPAR results by our margin XXXX, XXXX to comparable is XXX

XXXX, and XX XX X%. to expect approximately a from point basis to basis attrition a from and In and we We moderating revenues property wage expect taxes rates impact impact also margins point cancellation insurance. increase

context, benefits in approximately XXXX. cancellation higher $XX revenues XXXX, hotel and comprise total expenses approximately wages comparable For attrition and XX% is which of XX% and were our than million,

interruption and year includes business from XXXX $XX Ritz-Carlton, at $XX is million the adjusted expected from billion. Our proceeds from XXXX. wildfires guidance. business for that hotel have is which is midpoint additional million Naples, excluded Ian an estimated to in any the note from not Maui operations important EBITDAre in XXXX $X.XXX It comparable This an included our contribution set we assumption related to full our interruption Hurricane proceeds

balance our position. liquidity and Turning to sheet

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

schedule balanced coming XXXX. of a have We our next maturity maturity with in due April $XXX million

optionality monitoring flexibility. We us believe debt we provides closely capital balance markets, our the are with and and sheet

to since XXXX from BBB- our and stable in As level. credit And to the liquidity, issuer of available Host rating Jim noted, returning pre-pandemic its rating BBB leverage. of $XXX call, We our last we total which have company's reserves FF&E billion includes upgraded with million full availability outlook, $X.X $X.X billion Fitch X.Xx ended net a facility. at

quarterly quarterly in a cash March share returning of paid quarterly April of dividend common XXXX. and XXXX, on up, to per Directors of we level. to $X.XX of be stock our on The January, XX, to $X.XX stockholders Wrapping payout special cash record on a Board our authorized dividend $X.XX of a XX, dividend pre-pandemic paid

to to of Directors. To subject With question. questions balance Board our and address time please for our To growth approval are many as leave by take in questions. of As believe and we as dividends to to happy we XXXX, best-in-class possible, that, one to opportunities always, us we be limit are conclude, positioned we portfolio ensure proud future. future uniquely company's on would sheet capitalize in the yourself have achievements your the

Operator

[Operator Kelley Instructions] Bank question Your America. from Shaun first of is from coming

Shaun Kelley

off Sourav, on or just Jim environment. the little start maybe we color a could with M&A

unlock coming balance out it a could remarks that sheet. obviously, this your maybe opportunities You may market? in can conversations little in strength them of And using the how we the front some you But the ALIS of prepared going? to not bit. point your just balance alluded to Conference, in us others how really little sheet in lead bit a you the strength And at of are on tap have know

James Risoleo

happy is This I'm that Shaun. take Jim. to Sure, question.

but here the and sheet fortress our we approach think at acquisitions all we billion the a be XXXX that's reinvestment of shown, past Sitting X.Xx $X.X EBITDA portfolio testament to We differentiates the through do to XXXX. done few balance how want intend in continued can net I really Host continue want today it over the profile space. we through in to fact as leverage in the with also we portfolio the we've to acquirers, liquidity growth is years. of elevate that have as to

assets we in in $X.X $XXX XXXX invested over that of we've in recall 'XX our time the invested assets. the may million billion You through we've over beginning at acquired of that XXXX 'XX, recovery billion from frame, $X.X and and another

as noted are expectations XX have the our that stabilized the underwriting to X properties significantly XX to So -- properties in we X our operations up prepared our points in are under XXXX post I'm MTCP, yield with remarks, outperforming of the sorry, in program points a same X XX as up we points, continue the to HTCP to X do to or and start. points, index,

lot market, all. really would Now assets us that's with there respect Host. currently of frankly, that to properties But not for certainly just listed at that aren't slowing are not the a acquisition sale, interest down

to in the kick our and assets. are friends to try to industry, in We loose our deals competitors the others are industry Host-type talking that

this to advantage. balance sheet the leaning very a cash believe get our to the We're year meaningful that to all really is our And relationships. close our ability reputation, We work. us deals competitive are on on gives we leaning on

working assets transient end elevate portfolio. we the really So drivers want the to and do a to we're assets of it growth right at with the combination The add we hard that of is those diverse have everything the to that portfolio. continue is and business we to the the very of demand source day, find group, leisure profile are like the But same. to of that EBITDA

interest assumption market said Host of we loosening believe that on aren't and this team the start the to and I here those going a to under going Fed believe I But sellers assets competition at half lot is that in Now there the a today. as spark for bring also assets. properties market, to it's that of will second year rates the to for that

been our So We all. I balance we get next we're several that early the the months of sheet. be view there, And can out we point the XXXX. want over We it tell course that of pack. the we've to is, do to want in an you to going able acquirer of get have ahead to hope

Operator

next Citi. Smedes Your coming from Rose question from is

Bennett Rose

wondering the frequent I part return bookings corporate But just maybe you're more by It was the you kind more is more the driven side. you meeting, seeing and just meetings. bit large sort what smaller maybe little conventions meetings, like improvements citywide could if talk of sounds side of of group seeing larger just are about about association you're talk business. -- could your on a on

would Just interesting. any around kind of be detail that

Sourav Ghosh

the remains doing group strong. Smedes. that and corporate really well on Sure business, We're

strong. in in XXXX is citywide pace of continues is catering meaningful certainly back continues around ahead. XXXX association citywide particularly one cities XX% a corporate toward and be The on a markets, XXXX coming way. important room note what's while and few night spend back are strong. your be So is of coming with to to quite group pacing their And actuals to also But banquet

XX% pace our catering from as by is on and rate are And room demand year-over-year. an in not standpoint, the and hotels it's but has pacing nights. year are ahead are that to perspective. keeping pacing X.X% ahead as perspective, terms we we pace revenue contribution group X%, Right of a declined around a our So at ADR both from year-over-year well basis, total we last a now, from

pacing Diego, The markets, on room meaningful. and the include that D.C., driving They that's just this Seattle, for San Orlando, Antonio, our specifically, portfolio terms those are on San pace, but already well markets Miami. group New Francisco pretty which the Orleans D.C., XXXX. and of X.X also also million million the San is So in we XX% make Diego, up over have of And books. nights book X.X citywide the what's San for

Operator

Your next is from UBS. Robin from coming question Farley

Robin Farley

your were the for I'm that to I potential given CMBS of more in some back 'XX. maybe sale first maturities, into XXXX pushed XXXX guess the back on maturities, circling of surprised Just of comments which half in acquisitions. there's not kind just

also, curious your type those is what guess what's Host been terms just location for? the of your of change assets looking would are there's on what current I kind And with of So sense thoughts if of any what happening maturities? then in be

James Risoleo

that to my Sure, CMBS would CMBS maturities. full we later assets with of their response, And because materialize, one will loans are get loans it. and hotel track interest We may there I markets sooner maturities, have the of billion or we later capital certainly our there's pressure in lot of earlier significant other as you not as maturing. I seen to distress. portfolio. we all Robin. owners in going mentioned be earlier haven't the outstanding year talk the service is that $XX about continue be to This on the into have know in a pandemic, There We'll as portfolio. And Frankly, it was reinvesting that the invested or in track year, of us. that know, deal things the

yield to continue in to great continue index we're outperform gain really forward. to So going and a place

it's going nothing our this to are on it's net own has But be per our TBD it the our acquirers se, which diversification, happen list. thoughtful we're of and and -- year. The that's assets capitalize trying be certainly making distressed our by of there perspective is think on I to that's on on maintaining but types counting not always served geographic well. it's We're we reputation still markets, types sheet us So balance that. relationships, really about off -- the to

notwithstanding XX the growth RevPAR in basis impact diversification us our from Maui portfolio Maui, achieve point wildfires. the in think notwithstanding allowed XXXX, X.X% I to of tragedy geographic still a the

to current resorts. our add assets some analytics So the asset opportunities and value we performance to continue where owner and markets, we'll ROI at completed through urban look new capabilities, the strong we market. can markets We'll by at solid look we'll also urban to see management haven't enterprise where that looking been continue start continue of for seen today because good we've assets out

underwriting I And to think There landing seems the consensus soft on feel does So keep is that recovery crossed our macro about visibility an be way. say the We come fingers all picture. is through. to from at let's the good perspective. the

Operator

Your Bill next Crow coming is James. from question from Raymond

William Crow

of tell disruption? the year. us that you confidence can second that much then single in growth much get RevPAR your challenges year? in you halfs Maybe given Coconut last Perhaps year get the from to to the half the the up in the year the kind of I and in tail of you what, hit of X%, How growth Maui? of half a for X X%, kind providing and low Sourav, X% the the a to is half second Can in the give compartmentalize Point of What kind question us numbers. from how tailwind of lift accelerating digits you renovation first about in guess, market outsized

Sourav Ghosh

Sure.

I'll given the And remember, of half, piece, talk reason Omicron. by performance first digits the single QX is in we XXXX that the the QX impacted XXXX. first So the was that because tough is have, about comps particularly low

growth amount recall. first half, the did So of you first leisure as 'XX. quarter in we meaningful the a had And of well, extremely might

single comps the why first So the just low half, that's digits. tougher in

half, the overall On the both really as second look is second when group giving us half, pace at particularly QX confidence specifically you as strong. QX, well things: X pace booking are second half, is really what's for for our the One,

the X a XXXX. the X We have that of Beach, South piece last confidence project. number renovation tailwind Lani, Hilton a Bay Kea Those half really and hotels the had in in the pace from Biscayne one which Marriott Singer second Island, from impact Fairmont redevelopment meaningful the second being half, that hotel complete year really is hotels is the and second

at to impactful the going booking really those the mid-single half that properties. from those the So as second largest There driving digits and the help X drive but are half. in group are second pace that's most tailwind into probably the factors tailwind factors what's renovation well, other X

Operator

Baird. from coming is question next Michael Your from Bellisario

Michael Bellisario

your You cost rate have outlook XXXX? you're you're your RevPAR want thinking specific expense how then for occupied about? mix your thinking to stick the are about does to assuming to of you outlook. room? Do an per industry and forecast occupancy what And that outlook, how you and in affect And that

Sourav Ghosh

Sure.

as and think we XXX Maui. of around it's is from ] look X%. the impacted number a way the at SCR is getting But at if impact forecast the remember, our So [ midpoint of industry points result -- you effectively basis

points if also, that in keep different is it That more weighting So XXX different at the you when basis be look mind, in. Maui. wasn't sort of we of the for in words, portfolio have other would waiting markets our that

the So looking at apples-to-apples to it's versus what parties comparable there. third our out RevPAR when put comparison you growth not on are

as So to keep mind well. that's one in thing

from MTCP that So we growth are translating EBITDA overall, getting the as which lift Jim talked as as X the given the invested we other gain we and projects well. capital index the that made, that investments into RevPAR projects well about please, particularly have and the in

we midpoint, total midpoint for year X% the at In at portfolio. this terms the expense total expense of of that for growth total X.X% growth on are effectively

that's you split was sorry, X% between split on evenly between and occ pretty two. other asked the And rates the just question that

Operator

from is question Your Evercore from Duane coming ISI. Pfennigwerth next

Duane Pfennigwerth

the So group on So pre-pandemic the How group you effort the moderate Assume balance more underlying over then group given I normalize. changes pace, the And closing differently to group on for changes the think trends, continues in in curve on as of an XX%. group are you about to in fill year? any booking for the lean of you did bookings closing relatedly, said quarter example, quarter thinking is there up seasonality? given are you to would than leaning periods? off-peak business in

Sourav Ghosh

I'll of start second with the your question. part

is the the really it's a revenue we're management the asset-by-asset it. terms revenue It's we decision banquet meaningful makes that not in obviously, room groups always an catering provide and what at where of just And can night total maximize of and First, difference. yield. piece because looking piece available

the wouldn't you X.X to sort the for of a ultimately, highest business, that on provide I goal there balance only for group rated EBITDA the highest total are is but the to already about not that's books. hotels different the So are or the way group the highest Obviously, is million think the business total revenue of hotel. When fill the approaching revenue you and management. going the managers -- we nights necessarily have of with year, say we cadence the room

given month what the how XXXX. for the We quarter expect going been the in for for year to be group room nights have the relative we just is the But month the that the and above to in for to have lead is for been based year, year in as both well to obviously, be for we in sort first lower going the lower. And quarter make pickup not seen only to ongoing second filled the the that pacing, dates for year, the not pickup than on year into but the in of years. the total year short-term midpoint just also the future in confident be do of need well we the the the with half as just And feel very previously sort particularly for half. given year terms times expanded the we've up, have because gap of

Operator

from Chris Bank. Your question is Deutsche next from coming Woronka

Chris Woronka

details all Appreciate the so far.

internally more International get outbound numbers How little, to about summer the Remember are as surprise we summer guess, Just kind transient had of thinking we this the corresponding had you're a a last we especially you of year, year? and get where transient through didn't inbound. as I modeling question how year, into cadence QX.

Sourav Ghosh

Sure.

So the 'XX. I year. And expect the We just is summer inbound your extremely the was XXX% and above to outbound of had mean, XX% 'XX obviously we we're I of moderating for U.S. to for strong at effectively transient, be thinking year point, summer. was way last mean, level an

rate therefore, it's what the We a which do and that's of is up XX% at QX. the are expect half excluding is summer you stat. what our I is a have resorts, for going now still up because on what number say right XXXX. And single-digit in guidance basis, will with an that's relative visibility we more think first year. the visibility low is seeing XX% worth transient end won't XXXX to like good above our year-over-year our 'XX, quarter specifically get resorts, inbound pacing you spring until ADR for for But into of I in is pacing that U.S. our to and get be and is really the terms revenue Maui. the break break, for impact to we ended most projecting For X%, Spring is to XX% fourth of travel

these, ADR above XXXX good, is none be XX% is the very going to which level. of feel still we saying effectively transient So that of particularly resort

encouraging. So encouraging. in visibility into Not that's is break but the summer yet, very really a spring

Operator

Grambling next Your from coming Morgan is question from Stanley. Stephen

Stephen Grambling

amounts total comparing color at the the Obviously, on otherwise. And about give been look projects? and other the any contrasting Difficulty] can construction curious X? some you're kind thinking ROI there's how [Technical just and if you those costs of in we but I'm changes can dollar

James Risoleo

Jim. it's Stephen,

part didn't The hear question, of it off. cut we first your

it? would So mind repeating you

Stephen Grambling

asking Just compare and to the programs. transformation contrast the transformation versus Hyatt Marriott

James Risoleo

And what from perspective?

Stephen Grambling

you're be might how difference as How and when hotels be a could we contrast we same -- the these the why about assuming reason these there thinking return think to looking should on compare be investment? X? How that uplift? the the about of at kind Or should the

James Risoleo

HTCP Marriott after program, the at No, it's you're program. looking think I as the modeled

enhanced we're exist. or for either received all another, is hotels, the of have it didn't in didn't priority over of or burned dollars which one investing, have off because on reason We our owner's just we time priorities many meaningful that

let's to our plus. And the assets big teens returns, other blew this that low Hyatt to because expect returns, anticipated the same, operating cash-on-cash results a looking it's Hyatt the out off results And underwrote the guarantees double-digit with -- cover the And we The is teens frankly, million $XX that that's X noted to MTCP have guarantees collect the MTCP profit are providing we're assumptions are our So the disruption. think the in the I is also in cash-on-cash same. cadence of we as is are same received transformational same low comments, cover low way assumptions operating profit million say, the program. will hope renovations. at the renovations. the in assumptions. we that But disruption the $X year away anticipated which the associated

Stephen Grambling

Was And RevPAR down that way to index a uplift. component? revenue just one with other break that. F&B through there that follow-up primarily on premium? also was uplift Or Any or

James Risoleo

It's I let a in we revenues can bit throughout seen a think Sourav the to because -- talk both. have I'm the going uplift we little uplift meaningful about F&B portfolio. And F&B talk

audio little have problem Hang here. we on. think I

Operator

question Your Klein coming next from is BMO. Aryeh from

Aryeh Klein

perspective? then consumer just high-end to could within the Are your in properties? are from a future your at versus difference talk resorts if ultra guess So growth X% of behavior at performance? I RevPAR what bookings any other leisure leisure Maui for you're seeing And kind outlook, maybe seeing expectations the what in noticeable the you you

James Risoleo

No, are on you not. are Sourav, back you audio?

Sourav Ghosh

back on. I back am am on. I

James Risoleo

There you go.

Okay.

Sourav Ghosh

I am back on.

question? you could the Sorry, repeat

James Risoleo

seeing from I'll we with to are start consumer. the that leisure Aryeh respect what

the in leisure affluent Our is traveler country. transient generally, the consumer

spend. properties backing in in spend We off resulted are still investment of transformational that in a a in is meaningful And significant banquet properties goes really Stephen's ADR. has we pickup We're slowdown portfolio. the the of This made room in no seeing and strong. not back to our outlets seeing in a lot question, outlet spend in way the in a throughout out

leisure up XX% very to spring the for the pleased trending around year-over-year pace it's is, we're where back I break, still very break And revenue and from that with is spring So perspective, goes that. commentary our think our strong.

Aryeh Klein

standpoint in on what gives Maui, year? future that you the of seeing booking from recovery kind just of in confidence And you're a the then the half second

James Risoleo

to certain not that we year. there going in the I'm the Well, that of be recovery was second half a said

number for that date really in is there are is things on the finding to Maui recovery a the that residents. displaced And which have shelter And hope a we mind. the of the issue in but happen year, wildfires of pivotal X March So second our half were. gating on there side, a where the west is particularly is the

about the short-term The Maui terms the Governor the to Maui think that if of come don't ban island allowing the considering then XX,XXX their there's by be with rentals. in rentals rentals is residents, stated has because on to State of owners Hawaii units of he a of on total, short-term displaced utilized on I short-term

tracking it and very So it's we're quite significant, closely.

Lahaina town Additionally, are cleanup still the plans process. and to in rebuild

we relief be interim, particular, XXX of In the the at working Lani moves the I think, on is Kea renovation. Kea time back. have through recovery and the May. the forward. The the of been the with Lani, Wailea, agencies, Fairmont And So the Maui And properties Cross take story have to Regency contracted -- some we're hopeful Those is going own end Hyatt to where Red just in with case in have Cross. the for the rooms we Andaz different. completed west been Wailea that, we a that transformational Fairmont now side, the Red come extended while will

we Wailea redo Andaz bathroom work. goods the significant as incredible soft the shape in is asset the rooms well So complete as as is where the

both in end result as great business that I that be we that in different but the Maui, too we've if much is same side midpoint higher know guide. on the diminution think a will cadence better pretty upside. we this are those and to think soon So assets completely as it's then And shape. would the differentiation than and Ka'anapali, anticipation, our And that And that assumed basis the Maui which takes of really EBITDA consumer of that, us as pick point about XXX some we're the about submarket between year, than there and last experienced confident begins say year, EBITDA west the in we the impact up. our to Wailea, is to just understand of time, a over will of is the guidance

Sourav Ghosh

impact clear. for to I about sure going at sort That's I first by Obviously, XXXX. make explained you look wildfire. piece $XX incremental to want $XX half, Yes. million be the impacted EBITDA to the just it's the million to it, Maui, when of for be

So that it wildfire when to having the think Maui. the of impact about million impact year, you actually as total $XX a the result for close is

incremental it's year-over-year, $XX to in $XX million that a $XX keep just impact mind, million. million So

Operator

is coming question from from next Your Katz David Jefferies.

David Katz

to more size of just sort and wanted there helpful lot uppers think bounds be ground direction? any or a covered boundaries And it that for or the for on me. as I of a triple out things in how strategic And just already. little that's You well deals, need really we fixer about of maybe thoughts on versus click would more

James Risoleo

the opportunities complicated through as to being not only David, of that's have let multiple to hotels part business improve capabilities. Well, leisure obviously, opportunity transient take top the line, is transactions, our focus attractive generators because turn that But well as to improve one. me Yes. second easy look deploy we an part your we larger and our Bigger group, on and asset demand us. outlets but the and analytics complicated that diverse scale don't capital, middle of transactions, and for question boxes better ability first our P&L given focus enterprise for And we any away. on with management

certainly that this and work is company. what repositioned elevate CapEx buying asset how a doesn't assets ability be at growth of at and We really concern open-minded construction because relative to do to from within how needs an it is to put existing look the acquisitions is we the bottom asset perspective. is EBITDA it's profile all. the repositioned to going whether existing to portfolio design the it group have our are It us going renovated line with after perform in-house and our or We that. to perfectly But goal to perform is to our to new money

across it's board. So the

Operator

is from coming next question Your from Dori Wells Fargo. Kesten

Dori Kesten

group the How how year guess and transient drive your much ADR shifted is between end pricing? today? transient group year I do spread from for to booking the And your your XXXX rates

Sourav Ghosh

Sorry question Dori, can you for repeat the me?

Dori Kesten

your XXXX end group So rates, then piece second how the and year much I'm from changed inform rates transient the And year wondering was it do group rates your of for how today? transient your between your to that's spread the pricing?

Sourav Ghosh

Yes.

yielding, group I'll it's it way to is of -- don't we think the 'XX So to the me. But typically transient. have specific and get in the you the first, so on will half I back terms to front comes delta first. group I on have second answer of really in about that

So you're transient group you're group that then the business. rate seeing developing you're base is and yielding where and the

a remember, ancillary piece, it's just have to It get is with group meaningful beverage pretty and business and looking of spine total a revenue is that contribution you golf and is where also meaningful what to and it's all on makes food our rate EBITDA. amount and coming portfolio. in, that, depending at and that up for a we -- And total not amount

are the most the then once we at, figure to and in okay, properties So built, transient makes rate. when what at group what base is looking layer out sense

the out rated business. to and you're higher obviously So towards yield business move going the lower-rated

group coming and group portfolio. of it certainly I term the looking base pickup set our short so majority at pricing versus transient for more it the determined it's just but in? also you're transient filling the is where where is and that mean, drives So up, in that all --

Operator

to There Certainly. queue. the questions no now the closing conference back are go ahead. for hand further in Jim Please remarks. I'll

James Risoleo

you our conferences and for forward XXXX, opportunity to we We many of today. the at for look appreciate day. to guidance quarterly you, Have us results months. great our in coming all discuss Thank seeing a joining and you and thank the

Operator

Thank you, concludes everyone. This event. today's

day. have you and participation. for a disconnect may at wonderful You this time, Thank your

Host Hotels & Resorts (HST) 22 Feb 242023 Q4 Earnings call transcript