HST - Earnings call transcript Q4 2024 | Host Hotels & Resorts, Inc.

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Operator

Good morning, and welcome to the Host Hotels & Resorts Fourth Quarter 2024 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. Please go ahead.

Jaime Marcus

Thank you, and good morning, everyone.

note to of federal be please today comments securities begin, considered are forward-looking we that the many made laws. Before statements under

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

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

You earnings can our together on the information with with reconciliations comparable GAAP in to directly information find this and website filed the at information press X-K and financial most in our hosthotels.com. SEC yesterday's the supplemental release

Executive Chief Ghosh, Vice turn With me on Officer. today's Financial the call Jim. are would and Chief call President Executive Officer; like and Jim that, and With I Risoleo, to to over Sourav President

James Risoleo

everyone was improvements for us and markets acquired Jaime, joining across new this iconic for $X.X you, continued billion by of driven We Host. XXXX morning. out-of-room Host. real X are growth of which rate thanks spending. Thank X estate irreplaceable for and in We year busy delivered to and a properties, operational

our in continue to expenditures investments. and resiliency through We reinvest portfolio capital

potential progress and and of future. at investment-grade take continue an We the returned form capital in and and the We significant sheet at of the Program made Disney repurchases Host development on dividends Resort. World to Hyatt stockholders we to Four condo balance Orlando the the Capital Transformational advantage Walt Seasons Resort share to position maintained opportunities in

recent finished XXXX to estimates. Turning guidance results. above our We most our

increased increase hotel we wages, and million, to Maui a wildfires points RevPAR full over points performance and Comparable XXXX, fixed EBITDA grew to in XXXX. XXXX. FFO a while margin year-over-year. share basis X.X% delivered $X,XXX expense XX following Comparable versus XX.X% per total RevPAR of primarily hotel was grew basis down adjusted EBITDAre due pressures year, hotel compared $X.XX, of XXXX X.X%, the XX comparable the of in increase adjusted For X.X%

quarter, improvements improved hotel delivered to and share compared hotel million $XXX quarter the per RevPAR comparable in items. demand, including Comparable XX.X%, total X%, Maui of spending, transient to XXXX improved rates, ancillary revenues. fourth During adjusted leisure was and onetime hotel ancillary in EBITDAre productivity in we improvements X.X% $X.XX. demand adjusted driven Comparable an transient certain EBITDA XX increased improving RevPAR by and driven the increases basis and points fourth by of by margin up strong FFO same the of year-over-year

In today CeSar. excludes results Sur Ritz-Carlton which and reminder, the a Don the discussed the Big portfolio hotel is Sur XX XXXX, comparable comparable excludes Ventana CeSar Ventana XXXX. comparable hotel refer Don and Naples our in the As portfolio only the in Ritz-Carlton our XX as operational Alila Naples, Alila XXXX, to Big

accounted growth quarters. in Oahu, the and strong our fourth York outperformance in quarter had in mix. driven the festive Revenue by growth of the all X% rate the the Maui to revenue Transient quarter, X room highest revenue X%, expected, improvement seasons. Maui, Turning led growth. growing transient was last over is by in was X which fourth better leisure growth which business resorts Notably, nearly RevPAR New the the in for quarter. drove than half

resorts even to demand. our Transient XX% leisure comparable strategically our XXXX drive incentives rates offered above Maui at as robust at remained resorts levels,

Maui, with transient our rates quarters. Excluding line comparable resorts recent at were in

market we the mix government a continued corporate segment. by favorable rate driven as saw strong Business to negotiated shift transient revenue grew a approximately and X%, growth from

in down Maui San approximately room recovery XXXX. As for as group benefited and tough relief Maui quarter was in room comparisons Francisco group revenue year-over-year nights and to the expected, X% from due

Our XXX,XXX group room in room nights total the nights. nights $X.X sold bringing XXXX group fourth for XXX% our quarter, group million room or comparable properties of sold XXXX to

leisure up is guest into Resort continues year-over-year our at were F&B that is deeper total Transient X and approximately our spend spas the Maui. courses, shape Regency RevPAR us take underway. sold Maui last leaving the at business were Total our guest beginning Maui, XXX%. The in at the quarter and resorts Maui X.X% exceeded leisure group sold Hyatt X and transient at outlets, and relief to recovery leisure Digging rooms by as rooms up to Wailea recovery golf Kaanapali up in recovery fourth spend encouraged the was XX% year. leisure

For the hotel by RevPAR Maui basis impacted interruption including year, by points points, by margin total the our basis XXX full estimate the during EBITDA that XX received year. points, business we RevPAR XXX comparable basis proceeds and

ancillary to Turning spend.

and in decrease group nearly and revenue. group out-of-room night. Other grew revenue driven of Notably, a per food improvements despite spending. in in quarter, F&B revenue continue our the outlets X% nights expected growth room moderation at and driven by revenue revenue by see revenues cancellation banquet despite We attrition increased grew beverage room resorts. X% an to banquet in

improvement in driven group contribution night volume. increase full X.X%, in F&B banquet For the year, and an by revenue an grew room

properties to see customer affluent our continue in the strength Taken across of the portfolio. we together,

Don at to Moving the our CeSar. reconstruction efforts

focus We equipment to critical rebuilding shifted increase and Naples. have including we our Ritz-Carlton resilience, completed efforts compromised did substantially elevating at to the systems infrastructure as and remediation has our

quarter. in We expect a phased property late reopening of first the beginning the

property We at $XXX deductible million, currently will and is $XX million. and CeSar million $XXX damage and our be the Don between our insurance total remediation costs total estimate

business interruption proceeds. expect to we collect Additionally,

In to included impacted EBITDAre have We is half payments. additional EBITDAre of too in the in still year, or $XX we amounts by estimate our early of $X our Helene the approximately estimate adjusted guidance, total, million but in business interruption that receive proceeds the Hurricanes Milton adjusted expect and million XXXX. which we timing negatively of to XXXX first it

to Nashville our by we and X Hotel and acquisitions including of Central Bay. Turning Turtle our Suites the expectations. O'ahu, Hilton The completed XXXX, the Thus performing X In are allocation. line in Nashville $X.X new Hotel with Downtown, Embassy Park far, the across capital hotels, billion underwriting acquisitions Ritz-Carlton X

share total XXXX, repurchased In capacity a we to remaining at of million. program. million $XXX of have an addition of share price share, we to price our average dividends. shares Since of and repurchase share successfully allocating we at XXXX, acquisitions, $XXX X.X have capital per an through through of also repurchases million In million per $XX.XX average stockholders $XX.XX for stock $XXX returned we repurchase capital and repurchased under

announced million a In we per share. In to a in $XXX total, fourth $X.XX the over declared share, dividends special quarter, stockholders cash dividend per the per $X.XX of returned declared for to total share we dividend and of bringing XXXX. of the $X.XX quarterly year capital

capital resiliency renovations square and Turning approximately to We portfolio reinvestment. XXX,XXX to X,XXX In of feet completed million square of guestrooms; XXXX, expenditures space. we XX,XXX approximately $XXX public and space; invested feet investments. in nearly meeting

the on as the Program. the completed In addition, well renovation Transformational we at as Hyatt Capital progress Singer Resort, made Oceanfront repositioning

efforts Resort agreements Disney construction vertical XXXX Seasons November XX completed Orlando purchase for We milestone units. condos Resort, Walt condominium and XX marking Four at of World at the have in on the the building and the development. deposits significant and also a started mid-rise we for Sales a of

which majority In to property of million $XX expenditure damage guidance million be includes by capital the for which range XXXX, $XXX $XX reconstruction, our to insurance. covered between we is million, $XXX million and expect

to $XXX redevelopment, Our for CapEx repositioning million guidance million $XXX of approximately ROI also projects. and reflects investment

the Hyatt on San Regency Hill, Capital at the Austin. Diego renovations Manchester Grand Program, Within start Hyatt to and we the Transformational Regency the Hyatt Washington Capitol expect Hyatt

As Transformational XXXX we profit of from will expect $XX approximately Program, Capital the disruption the expect those we a to reminder, offset EBITDA related the which of in million Hyatt properties. to operating majority at guarantees benefit

the fourth expansion ballroom XXXX. quarter Don projects Phoenician expect villa The and of we to Suites which major complete construction Canyon Other XXXX ROI include the in the of CeSar expansion, for

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

of completed points. renovation X.X operations post XX X will renovations portfolio. continue transformational provide XXXX, the our since have we X date, our tailwinds points, that excess have believe meaningful which targeted RevPAR we well stabilized for is hotels to is to to index over broadly, Of gain gain More in average of the XX share which

data The spanning from year list dozens selecting We the estate global responsible. to the the XXXX industries. companies list for final United #X is course for top the than real over and in leader largest the the of continue XXXX. The X,XXX States named public Host recognizes in in be a in of ranked responsible industry. spot companies row. recognized housing XXX at month, the before corporate most most Companies was sixth Most analyzes Responsible #XX landed America's and Host ranking of of a annual responsibility Newsweek's Last to more as

during to with bringing to continue goals LEED the the also XX. We total progress make X year, sustainability properties achieving on certification our

term interest for the benefit reduced Importantly, facility, certifications, X our building a loans use under in pricing basis new credit we renewable achieved our the the sustainability energy efforts points. maximum milestone green by for in resulting and outstanding which rate

we our iconic accomplishments the proud have of the sheet portfolio maintained. are in up, we investment-grade have including Wrapping balance we and assembled XXXX,

as prioritize remains a by scales for state the are We encouraged of picture historical to levels. supply continue experience and consumers and our chain markets below affluent travel

the are is assets and fortress diversified creation XXXX. We our due in for continued portfolio, our and Host in opportunities we continue continued reinvestment to to sheet, our confident balance believe our value that positioned geographically shareholder well in

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

Sourav Ghosh

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

maintained revenue trends. total of growth transient Total spending. as with levels outpace growth and group RevPAR continued elevated out-of-room guests Starting RevPAR both to

Maui. by Approximately the grew in revenue and of of It half resort a occupied the were Comparable outlet that growth the per fourth per occupied beverage revenue increase hotel, X% outlet Singer food in resort XXXX. the which compared room repositioned quarter revenue is to quarter, in achieved X% newly room growth room. from approximately achieved per outlet noting XX% revenue worth in came pandemic highs, driven Resort occupied our

X% Four X% and growth. fourth Seasons room banquet our as Orlando strength Orlando Resorts and Phoenix of at quarter Manchester Hyatt year-over-year. fewer night growth group group the contribution group Grand catering Center, Banquet per revenue grew World the revenue banquet Notable the more sold than offset in bolstered San Diego, rooms

the XX% golf Turtle expanded newly when prepandemic spa Ritz-Carlton grew revenue X% change the Island. was of X% put revenues was the the XX%, moderation Ritz-Carlton, by into despite popularity adjusting Amelia Other revenue at Spa up revenue expected revenues. operational golf's cancellation year above for up levels. the Golf and driven perspective, was at lasting O'ahu, XXXX Bay. full To attrition

quarter revenue fourth to leisure by Shifting well revenues. compared X% Maui rooms of strong by demand the transient across XXXX, was in portfolio. as driven Overall, the as rate to up growth transient improving

X% in Maui XX% at evidence Looking recovery the quarter, season meaningful in take and which XX%, the of year, driven last New ahead cases. further Marquis RevPAR is is grew season both that beginning shape. and festive RevPAR the actualized holidays to fourth Maui leisure by York the of Marriott grew for Thanksgiving festive RevPAR

year. from holidays April to compared late of April the to shift indication, to in months combined up Easter transient approximately and spring ahead X% an make March difficult. revenue as same is XXXX, the pace Looking Using March comparisons the last breaks time late

versus business demand fourth in In by Business corporate transient saw expect X% quarter by growth consistent further trends we with primarily which growth, the the for XXXX, XXXX, large full driven revenue rate the accounts. grew driven is we of year. transient

had expected in and Group last due Maui, increases. up revenue rooms down Maui Phoenix San X%, in and room Corporate tough Diego, San strength recovery in with relief was group of Francisco, rate. groups including year-over-year by room San the revenue Outside year. fourth comparisons, and X% nights the quarter New group and and fairly continued show Orleans, evenly largest to the to revenue APAC driven Antonio hotels

York. year. books, X.X% on Looking quarter, up this XX% representing us in time XXXX putting specifically, million to revenue definite seeing by XX% our the San Notably, rooms we room pace last over last fourth year. driven same Francisco, where growth and group Total X.X a ahead booked nights widespread demand of versus the over more we quarter the portfolio with in X% the since are nearly the San rate XXXX, Antonio the ahead for growth same group third coupled New group were the time year, last growth. hotels San across More time increase have is we Francisco

We night pace group Denver. business encouraged San the be as ongoing strength room Orleans by as markets Francisco, continue strong as citywide Antonio, to such New pace as San portfolio by in of evidenced and well key

XXXX basis was below Full the driven XX.X% points well comparable wages gears expense hotel benefits, fixed The margin was Shifting as margins. of decrease XX year primarily to Maui. as XXXX. by and pressures impacts from EBITDA

our group business a midpoint a of our and continued improvement leisure with The gradual a stable in transient operating to outlook recovery in for contemplates Turning XXXX. steady environment guidance demand. business, continued

the we our Maui demand year demand the resorts At Maui guidance, an have we properties And our international We continuation in imbalance. end, faster low a our in the assumed imbalance. have the slower high of of end improvement international and have at recovery deterioration the at demand gradual assumed Maui recovery imbalance. a assumed this of improvement international the and and at a the

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

XXX We the the to basis of hotel margins down basis at expect high end down EBITDA points end. comparable year-over-year guidance be to our points XXX low at

RevPAR mid-single-digit RevPAR for the growth year, quarter hotel of growth comparable terms In up we January with X.X%. cadence first in growth anticipate the

growth in digits. low X quarters, single For the remaining anticipate we the

a comparisons a of as result reminder, to the have how holiday of April, shift international the will faces XXXX trend this quarter into the Easter we difficult visibility a imbalance lack second travel into and As summer.

guidance, we compared points comparable growth of At hotel basis of XXX which XXXX XX.X%, margin and the of anticipate X.X% RevPAR XXXX. the our EBITDA hotel below midpoint is comparable to

benefit XXXX, about XX impact we think benefits a impact the XXX wage to XX basis operations proceeds from margin a a point basis interruption Maui our point impact point estimate rate bridging EBITDA to from we year As XXXX. and hotel XXXX in full results given basis comparable business lower onetime increases, and from

wage X%. benefit we increase expenses XXXX, In overall expect to over and

XX% wages XXXX, and benefits approximately our For hotel context, overall X.X% operating total grew in and comprised expenses. of

first XXXX expected million proceeds EBITDAre Don income. is year CeSar, business business It wages the still Milton, this and additional receive $XXX million that from which timing half in million. a to to amount It includes to Hurricanes and lower $XXX important reflects proceeds interruption Our interruption Don an Helene interest the and of to $X,XXX $X expect the CeSar, interruption the estimate it full million On the adjusted additional to any too the business approximately year. for midpoint payments. is we but headwind year-over-year is basis, lower receive expect of note to benefits, and we early of Maui, proceeds related

EBITDA from quarter closings million adjusted midpoint we to recognize full to the of concurrent we million sale stock-based and industry estimated expect which with EBITDAre restricted the with of $XX compensation, in condo development, also which adding beginning consistent XXXX EBITDAre condo are fourth back practice. in Four year includes XXXX, Our $XX adjusted Seasons

from our Alila Lastly, estimated includes set estimated at comparable which $XX an at million million CeSar operations our are both in from Don midpoint Sur, contribution of XXXX. Big $X excluded an Ventana and the hotel loss

and liquidity position. Turning to our balance sheet

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

maturity of in our maturity $XXX June with coming this year. of balanced a have We next million schedule due

provides and and monitoring have we We our ratio on markets includes $X.X optionality closely and total $X.X $XXX in of us our a availability million which believe reserves ample XXXX available liquidity, X.Xx, flexibility. leverage are facility. the FF&E sheet with of of at billion debt we ended We capital billion balance and credit

Wrapping XXXX, per stockholders a on quarterly XXXX of declared quarterly $X.XX, to cash share up, and April bringing $X.XX in XXXX. we XX, $X.XX Board in on January, Directors to a stock to dividend be dividend cash of common per dividends XX, a of record our paid paid The dividend special authorized March of total the $X.XX on share. of

by As Directors. to are approval always, Board dividends company's the future subject of

believe To uniquely in sheet portfolio future. we in leave XXXX, conclude, we and to opportunities are and pleased positioned with our balance capitalize on achievements us our the strong diversified

be take would have we to happy yourself many possible, that, With one please ensure questions. your question. as we To to address questions time as limit to

Operator

Michael with We'll Instructions] at Bellisario go [Operator first Baird.

Michael Bellisario

and else I were assumed the the just you where have at macro mentioned And a low end, materialize we guess, derisked your you kind what I and the of upside as might cross-border know Maui high travel you from what backdrop sensitivities. high guidance, low maybe, perspective? have on year But end, progresses? then Just see

Sourav Ghosh

Sure.

best throughout growth from -- terms we we of information the investment. on of in macro and on but today today. just based year, have change information Obviously, as fixed the as worked effectively best have So perspective, available a GDP can it's that knowledge of nonresidential

upside, is pace the In terms could for is of where group strong, our strong there be group very year. certainly

rate pay versus Our than is last is total better X.X% year at year-over-year. And was We group revenue a nights, year. our which pace X% X.X group X.X% already group have room standpoint. last from million

I would of driving where potential pace, and tied banquet upside pacing, expect business. Right our there I strengthening quarter in be room the second say, That's is the to terms certainly do group There now, in the side. could on extremely further of year more strong. quarter pace catering are the that think for the quarter first the fourth bookings. the third certainly we way So year in the And is group. group and and is it's there group

for there the depending in business that corporations the on On transient BT an strong we could increase be see certainly of large traveling remaining remainder year, the from the business tailwinds side, again really sentiment volume.

Operator

Rose go to at We'll Smedes Citigroup. next

Bennett Rose

ask bit about little Maui. more a to wanted maybe I you

If set it around what for $XX could other perhaps positively factors you take for looks million. won't just you interruption level out have end high think insurance of maybe and be impacted in you is low be that Could 'XX, in million, might the at that $XX the the and like the 'XX you business came range repeated at kind 'XX? maybe

James Risoleo

pieces a are moving to a question Sourav I think right there prepared I that we're bridge with that's has talk because Smedes, through Yes. think of And Maui. a respect lot to great now.

Sourav Ghosh

the of deduct through revenue million I you're going right, net in and about XXXX, attrition million we Use achieved for recovery million So about for bridge, cancellation in that XXXX, $XX BI. Smedes, as would also $XX deduct it's that EBITDA we a starting of and we nonrecurring relief onetime about that $X that saw rooms point, received.

brings your $XX to that Maui So EBITDA XXXX restated million.

effectively that your items. excludes So onetime

about X% we to improvement deduct should about XXXX. $XX that of you operations. add million, about increase would And in benefits for I million are estimate $XX $XX then million $X in million and that from seeing in wage Now versus a XXXX

That seeing operations. we improvement get you $XX where are that's $XX million would actual So to in effectively million XXXX. for to

of do sort that's If high. the math, you the to low

Operator

to next Bank. Woronka at Deutsche Chris go We'll

Chris Woronka

especially kind were obviously, of how better mean kind in the leisure, I better those you you're of in we is be Jim, they in starting BT? really a get guidance. group getting actualize. from year how which something say better initial versus and look versus and of and group on And BT the is and if contemplating fair out Maui, we a not just 'XX guess to what about leisure business of -- think about those? point just 'XX, But fairly off both if to you're Maui, parts it ago I caused in thinking But on conservative back initial? 'XX shook so we're in

James Risoleo

be BT tailwind increase there We is a transient continuing last business some business. steady Chris, a that side the year. X% slow, revenues on We Yes. anticipate BT of the could climb. saw in

with and obviously office back companies big very you positive. the short-term many in tech the it. We And in degree on of have that I the it's Businesses not given that's instances. any companies consulting something of back And getting certainty are nature think are road. But the forecast can are businesses back traveling.

to we how 'XX BT how feel performed So with in good 'XX. will are optimistic respect and about in perform BT

the And a Banquet The like they're exceptionally is of the perform the on business, and who offerings the the the continues continue of to and golf consumer spend affluent spa AV and climb It's to room testament back offerings same at that is on group group incentive group and spend. F&B actually particularly side not that out piece new to business. of groups well holding for and to the courses. catering booking the revenues highs.

for is this set couple So quarters, up we really quarter of about have we rooms year. in feel where the or room pick the some quarter. good We're year. at additional And time a last were how ahead as the group some to in same year of we up said, year for the the in Sourav

So all, group. feel think and all about good I we in BT

situation, had obviously, a you Maui little going perform soon our this drill at the but to it's it's incredible -- to how an season down year, tell And I festive on we will that going you as too feel to And we And continue to to your terrific shape. Maui. our we're optimistic from going island, in back the come visit see business forward Chris, resorts. really Maui know, to are properties we're

so. we're optimistically. of Maui And as that see come booking come group of business the away bit visit incentive planners and window you because to going type X-plus for time starting in month books. the little know, And to just reopened island take only there's It's a the very for get meeting last quarter back recently business a to on or to

Operator

Katz from question our take We'll at David Jefferies. next

David Katz

market think more assets. debate how go the while regarding on about thoughts? that? specific selling some How back release there trading updated And a just to a noncore so I I to commitment and asset had think I should a around whatever a we but isn't wanted fertile to a is going it, little right timing do back to we've be now. know

James Risoleo

Well, was services the a David, online rumor of the one that release published.

I article of portfolio that an the to assist we of had hotels. that in a think sale adviser indicated hired us

did see of of And assets we In hire pricing sort us. to be market fact, not what we might available always groups test adviser. an different the with to

Let portfolio me level very, with today. in and set have say great very that comfortable condition. the we that we're physical It's

We on completed, continue to relative our to to to significant pick almost 'XX gains X underwriting we're up the continuing X We're share invest index in X assets. in transformational we yield renovations that ahead points. of points

our is approach And So we so. feel we position the Host that that's how will but in is compulsion to markets. to where a something opportunity for an do no unique we're under certainly sell will, to we good if value we have continue shareholders,

thought to would. respect that a market up as of it generally, the -- transaction With as there us I lot think it much is hasn't opened

buyers, a is still sellers a right I fairly bit and bid-ask think to the with wide between still there damper treasury a respect and of sellers now, where seeing trading don't XX-year to we're sell. who particularly given have spread is

certainly for that we that have. our and sheet balance were good to the in transact. an see made opportunity actually given us, we sense marketplace us, we the So that liquidity for could If is

Operator

We'll Duane move Evercore Pfennigwerth ISI. to next at

Duane Pfennigwerth

so But positively. XQ I look, was sorry, surprised I earnings missed our in middle Hawaii. And season. of other the

James Risoleo

all [indiscernible] that's right. Duane,

Duane Pfennigwerth

Great.

that. about up might that take I you on talk Let's offline.

a surprising top estimates. from ] line perspective, surprised at it to don't So our [ least actually you guidance looks is XQ look, positively, that see. your like decel positively assumes meaningful relative And XQ

yet? you could or that. not decel see [ Do might just don't ] it it So might happen, see you happen, might it on comment happen? maybe this you actually It

RevPAR us does think how about for line flow-through does actually better? portfolio out have flow then play And through growth think if just you line better, if bottom we play you to How can your positioned the should out line? top bottom the the to about help

James Risoleo

think the recovers first and the the flow-through. of Maui question, outbound-inbound there back part see let I'll also It's to And demand Yes. perspective. then imbalance. if a a we want I'll early in take how the is address year see sit guidance way really I Sourav international and from in either shift and

events. midpoint Sourav assumes onetime million that regarding where that year And laid our the $XX after wash have million over bridge out So assumes out international in improvement Maui at you inbound to our the midpoint assumptions operations that last a today, the remains is last $XX the were over international actually international -- And that is from quarter. it weakened static quarter. in basically it XXX% We which at XX% XXX% statistic outbound actually the inbound. bit flights of that last

So still elsewhere. we're and seeing to Europe travel American to the wanting consumers affluent

our So just we And felt those of that forecast. it drivers it see thoughtful evolve, as was about accordingly. to prudent be X we the year we address will

group you'll of guidance BT note and how beat year. up, up total the on to comfort with how is comes is but of range about those set I guidance RevPAR talk the don't our -- horse to drivers that talk for and level want don't a RevPAR don't it I when dead So we set our

Sourav Ghosh

a add. In Remember, up of have January, XX%. really helped also will we do X.X%. presence RevPAR I D.C. that, to and achieved January meaningful inauguration and And we Yes. D.C. was in

So when you out, actually January X%. up D.C. take was

well. So earlier, our think up pace the Group then much was very also about of obviously, And And set loaded. as I a spoke sort delta. really meaningful was pace to QX in April in to Easter challenged all with mentioned. shift place, better to that being going late perform be addition Easter things will the so is QX taking QX and Jim that's

-- that growth of at our interruption $XX delta From expense million the our guidance had midpoint 'XX, at a 'XX, it is current $XX are about we expense, total of flow-through BI years hotel RevPAR between $X between X the in think business the X.X% in the delta for proceeds our or standpoint, accounts because to have is we way X.X%, XXXX million remember, growth, and XXXX. about the guidance million and for and

statement. income a shows getting obviously So as up impacted that's that contract our in because expense

only about we So adjust the hotel that and being despite expense the you is X% total benefit if portfolio. BI, growth wage for just over talked growth then X.X% the for

we you BI, other a on if is VIPs, X.X% in if effectively the then the of exclude growth, the So And you're want breakeven. to to if then including the Hopefully, get helps. front. words, RevPAR math, that breakeven margin do all you you to need you if growth X.X% would RevPAR

Operator

at next move Darling Green Chris We'll to Street.

Chris Darling

can some current your speak to are given here? coming labor about the of that rhetoric availability mitigate today the how broadly, tools the of labor-related going from Jim, challenges operators available administration? of thinking out you you And some forward more have to maybe then

James Risoleo

Sure, Chris.

think they we're running Both we that, we've the most the of with work have labor. we with years to our certain And over capable a worked to at the most X positioned to not of any each given of want Hyatt is Marriott want hospitality. are people go the concerns if career Hyatt. always very that respect labor the closely to portfolio properties. hotels have well Marriott managers in our the certain the we to I across of heard and case. have in managers and and availability where make want And that best companies make we people front, on that And best-in-class of our

labor So the front. on no concern

force starting we artificial use we book think exciting golf, to things off to But really have whether the leverages customers the the is let just assist property. experiences whether it's to view respect that forward going productivity With intelligence and is the of bit whether further labor Sourav whether talk revenue, of that of enhancements, I'll it's evolve it's productivity. about at be spa, it one little outlet in room place. a that it's to can And interesting how I out hotels spend,

So think a of I to lot are there things come. good

continue We important total about portfolio. talk The Host the total very to to RevPAR RevPAR. is

necessarily on our don't We EBITDA. EBITDA going the revenues. about while revenues of margin that of year we And is non-rooms are to make be $X revenues, non-room this have XX% of same $X

continue push will hard to we that So to happen. make

Sourav Ghosh

Marriott, to and been best-in-class with say that retain use appropriately the a tools. can have [ and that we making example, And has ] out for as of obviously, the drive they tools utilizing managers would And productivity the sure our have major Jim they the for that's focus is would we really multitude standards attract say that also I On which how managers. labor property, they scheduling just are said, as talent, never forecast challenge, really uses strong major and figure I that side, Atlas. really for productivity. a the tying

Operator

Farley We'll question from Robin at take our next UBS.

Robin Farley

you just words, for guidance $XX Just including there million clarify, deposits have for condos in in condo upside which to today. that? increase you other And already, be to rate or the said Are also, I sales what say apologize proceeds. negotiated you're to could so you this we reporting if many Did 'XX? the the companies in be have you've expecting corporate

Sourav Ghosh

Sure.

as assumption On we the XX more are now the already we And through we go assuming that making Robin than year. sales, that's we're right received. an that the have condo deposits

get grow we have XX received more on -- should right to but more guidance includes on. than is condos say, the the that deposits condos, expect it or We now, I deposits

fourth of I The condo until any the other I not from EBITDA say quarter is expect thing this the year. will would

from Just in the keep revenue the actually hand we keys the can before sales. have owners to the because over mind to we recognize that

it's question your the sort next terms mid-single-digit negotiated sort of of in to heard I'm then close you rates. effectively number. of Marriott's sure And call,

Operator

Markets. BMO We'll go Capital next to Aryeh Klein at

Aryeh Klein

recover take that to group Maui. longer noted previously in You will

Just starting wage that seeing or that then just $XXX around and see from Maui, impact to headwinds the for do XXXX? curious for come to are And you're some standpoint that of does relates some what pick you're bridging a little maybe XXXX Or million as that it a bit? your expectations up down if that number?

Sourav Ghosh

of Aryeh. last part down? the again, say number Sorry, came Which question your

Aryeh Klein

number Just getting of was to the it I $XXX was, in terms where around back it think ultimate million. recovery

little a So given million make come down about think to gap as Does the higher bit you you had costs? around up. wage that potential opportunity $XX

Sourav Ghosh

get for there certainly assets was feel we It's before and have the given $XXX Over million back potential to doing the in invested is still fire, Maui, the sure. back of a what in And extremely grab to point. think that time, calls. I had more share. matter to there we right the well pretty can we get confident are is still that potential It's in sort $XXX to of we just earlier about we we get million when spoken Maui to

And in is then -- It activity than see in year group to 'XX encouraging but quickly Maui's also not seeing the certainly beyond Maui. terms earlier. And pickup, of On group. on for definitely and group picking are more the sorry. -- only for I and want mention seeing did we year up to

room of As in amount group January up picked nights quarter of XXXX meaningful we well. and as a encouraging the for signs in fourth fact, matter a

Operator

Wedbush from move at Securities. to Jay Kornreich We'll next question our

Jay Kornreich

Just deploying XXXX. at thinking how capital about about this point curious in you're

You significant back a acquisitions, buying stock, put in ROI amount projects. internal

curious deployment you're capital about thinking how So XXXX. about in just

James Risoleo

X made we're think sitting flexibility a both it about excited on Marriott an stock, investment-grade with to different I that. gives good of we including invest And the have additional with Jay. results repositioned back continue sense the in the this an Sure, We're here something Program. say, year at and including fact us deploy of about And Capital Capital perspective. and very, very to Hyatt that And portfolio. X.Xx transformational lot Program acquisitions from us, Transformational number other are areas, to opportunistic the assets from that seen leverage sheet a presented buying we capital renovations. would if we across that our Transformational focused balance

Grand including The be Austin going Regency the Hyatt a start have Regency to number in in D.C. this will Hyatt Hyatt, projects on Manchester year. 'XX, and the in of Grand Washington, we're Capitol the We completing Hyatt Hill. that

are think we if capital So other reposition meaningful our there to as deploying into share we were assets, think about them. properties pick up could we market that

lines. continue we money brand our And have place that's along think some to to with put work. to those partners we good conversations a So

Operator

Point. Van Compass to Dijkum at Floris move next We'll

Floris Gerbrand van Dijkum

urban Just was distinguish a peak potentially at quick What are occupancy And question. for portfolio. Could to was you a get remind the could peak between back us, you it you occupancy? the -- ended what in hotels the for year for year? -- I for particular, and year resorts deltas think your domestic XX.X% your to full

Sourav Ghosh

of tell back portfolio. to specifically resorts to occupancy the can I you an for have on in delta peak to And is year pretty to what occupancy similar right XXXX. versus for gap now. for get the you in this expectation terms We'll urban. it us terms is of There is X-point still

Operator

at Rose go next Smedes we'll And to Citigroup.

Bennett Rose

talked price. pretty in transactions predict or And we follow own the But stock I wanted approach is mean those on is relative private your What about forecasts rate up here? opportunistic, like, of cap more what is XX.Xx capital that EBITDA, guidance your consensus. that, high maybe own I to market deployment. argument difficult a 'XX go to based what having And for see trading your to at sort it I obviously, to holistic seen. it's just to don't there least back to for certainly but updated you've share mean lowering even versus mean I those for down are be to on going available looks, the at buying I are very on the out being not us, know, forecast, XXx, stock was

certain fairly just what a capital basis count be compelling and a assign bring here looked down of not buying why like at So on sort share quarterly to valuations? amount your

James Risoleo

mean stock our you at Smedes, across a you're board, And and buybacks allocation one programmatic suggesting properties, operations buy one the we if good and on that it's happening doing. as I back -- our the balance eye agree what's some of as not But capital plan of on certainly sheet in underpriced look we're keep them. I the we be will of stock eye one opportunities of sort terms that's favor stock, well. to is at in with value. something have to

is balance Street unfortunately, [indiscernible] example we shares. because investment-grade back The sheet we to we're that can But have shares, time black proved to and at we the in back [indiscernible]. fourth bought we buy So buy today traded, where quarter, haven't you went stock given we into will back And the XX-K. but the we blackout it good a would as out. that

So stock for time there points are be there we in other whatever see where to. you us time won't moments buy able are and in reason, back where, will

Operator

over conference concludes the remarks. that session. to will for I our Jim And closing Q&A back Risoleo now turn

James Risoleo

a the you. the quarterly joining our with of and many opportunity Well, thank discuss XXXX And sure you really to appreciate in weeks for results good I'll Have I'm at see and our us conferences you day. outlook today. coming months. We

Operator

concludes Thank conference participation. call. your this today's And you for

now disconnect. may You

Host Hotels & Resorts (HST) 20 Feb 252024 Q4 Earnings call transcript