INN - Earnings call transcript Q4 2021 | Summit Hotel Properties, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Summit Hotel Properties, Inc. Fourth Quarter 2021 and Full Year Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to Mr. President Capital Vice and Senior Wudel, of Markets Finance Treasurer. Adam begin. please Sir,

Adam Wudel

as Jon Vice you, I Trey President Hotel Officer, morning. our and and are of Conkling. and and risks subject many joined statements Executive Thank and comments SEC unknown, securities federal uncertainties, are good today by Summit our Please am known as note to Norma, in described Financial laws. filings. forward-looking both 'and President considered Chief today defined These statements that by Chief Stanner, Officer, Executive Properties

Forward-looking only and statements February them that we we of XXXX, make today update are XX, to later. as effective undertake duty no today,

SEC Please Executive Officer, can Properties call on release and Chief this earnings reconciliations welcome President our and measures Stanner. You our which at website Summit referenced copies on find Hotel www.shpreit.com. filings to of Jon contain non-GAAP financial

Jonathan Stanner

conference fourth our transformative the our Summit portfolio transactions were for for to our and our to full operating extremely year continue a this with Adam, added recovery. and which year I transaction growth position how from we capital lodging in joining hotels us we within Today, to growth. for of our as in Thanks, leader the our sheet our today significant our for profile, position already pleased earnings to outlook will improving activity last prudently balance of and Overall, XXXX raised meaningfully expectations of exceeded all Trey a further for be saw acceleration trends discuss thank that year. the year, quarter the and our recent and with a portfolio, results series for Summit call. recovery our business, improve was you XXXX strong year a

particularly hotels accelerating spring an XXXX. of increase portfolio strong, for forma RevPAR was XX relative Leisure what XX% XXXX pro represents to XX% break and Day over of return weekend around travel. incredibly in a the through recapture and in earnest year, rate year summer demand full of leisure President's which beginning strong $XX its a generated Our last was

the second Midweek strong has RevPAR to to fall, essentially corporate and highest demand we've in October RevPAR groups, and levels, was been $XXX, drove a XXXX, demand. the return, pandemic by by leisure primarily pre-pandemic driven started. improve the pickup half the driven non-leisure many regional but During slower local which equal accounts of achieved nominal above smaller RevPAR in since weekend began to

RevPAR by RevPAR the forma quarter, XX% rate. despite occupancy pro quarter decline third fourth increase resulted was fourth which our the recapture rate rate X% reported only the November the We of these in approximately driven average a of and the increased and in pandemic. in a in with And $XX, December XXXX recapture we The of XXXX. since December, December versus RevPAR nominal the sequentially, lower seasonality While months onset experienced natural down the actually of in demand in seen XX% RevPAR X% for business quarter. improved average from seasonal culminating have highest percentages increase

fourth quarter fourth achieving Although quarter. the the third of in recapture continued RevPAR rate the $XX RevPAR our declined in quarter, to third achieved RevPAR the from XX% in XXXX the XX% compared slightly accelerate, to quarter

in markets shortly the market begins more the of side in premiums was caused business continue respectively, fourth been primarily what will detail our XXX% recovery challenging share the even finished which pro Trey RevPAR forma of points operating management and each is accelerate. XX revenue many index on our to still very continuing to to experienced nearly this meaningful and with, hotels full a for our as environment. undoubtedly percentage across and produce margin to our January and demonstrating portfolio demand occupancy to asset driven during provide travel cost teams capture ability as and month further XXX%, period, return strong as softened by Our in to year continue results tremendous COVID-related quarter at January not portfolio with the we've office our delay industry, exacerbated pressure expansion concerns Omicron-related staffing demand. was performance create a despite Consistent their model throughout dislocation disruptions plans. temporary to lean led and to on manage wages. our what successful early was a begin is travel with historically in by in a some but corporations leisure February well-documented year's

Our XX% preliminary was levels. January XXXX January RevPAR finished which below at approximately $XX,

corporate compared one our nearly a month single February, March to for the and the through portfolio, confident which favorable of to feel weekend to However, best X over our just ago. February RevPAR that the to where a up are is nights positioned months with we a $XXX. meaningful $XXX, return and XX of a of move RevPAR nearly portfolio from X-day weekend robust for last is XX% sequential for of meaningful and continue full XX% X from remarkably much pace the is encouragingly, ahead the benefit point and well ago. up of in which trends second, our in pace ended, improvements was continued the consistent of pace currently RevPAR more approximately combination travel third demand ago fourth January X-day we And as year. backdrop year. strong same was for of stood days was rebound saw years, year Saturday as more we quarters the Day same the next posted XX% demand the time President's for leisure

recently successful in to we with consideration I wholly recovery. owned for contributed acquired May, the the mentioned, active has and million Steamboat for pursue in year early strategy developed an In us more to In GIC, embedded the enabled for front, residence $XXX venture in was extremely the for differentiator demonstrating million, our company. on the in total liquidity XXX-room the for XXXX joint a As value additional as and which aggressive venture creating industry's particularly through growth true we proven $XX Summit be a July, X our us portfolio venture. into of joint hotels Springs we transaction were the

Arizona, per the million, year to exceeded for XXXX both by surpassed Although $XXX, early RevPAR In barrier those top XXth the nearly significantly GIC. is the December, of benefit The has also by of approximately meaningful to complete by portfolio incentives. XX%. year downtown XXX would pacing to XXXX, the also also opportunities. generating estimated guestroom completed in cost. is in from Embassy nearly to various to increases Homewood we operational entry In the located asset through investments key Embassy $X RevPAR XX% January, Suites underwriting of residence high the final equates acquired RevPAR little in Strong mutually January, value complexing levels. and to at $XXX we only XXXX or last hotel XXX-room X Tucson, venture to RevPAR season performers and our billion and and we first hotels its having average total over over XX number in included produced a $XXX January million continued generated Suites month demand and hotels high resort perform of NOI year January The will XXX% synergies and exceeded been year, from approximately growth, ahead Embassy open increased a from XX%, The of XX next portfolio and Summit's X NewcrestImage exceptionally we Tucson expected index with allow closing economic markets Suites of year. joint XXX%. Sun in announced yield. in Steamboat which and our January completed of the XX a several parking to represents Catalina replacement the acquisition. last the our our nearly Suites in proximity a Embassy Orleans NewcrestImage. acquisition X% hotels increase the markets, of opened high-growth activity discount initial hotels allocated acquisition In in February markets. are operation and an year, The New hotels of point total, Suites, the The the to The dynamic to in last canopy this in transaction hotel, well and drive is Tucson, Belt at Tucson peak $XXX, which which $XX.X with foothills over approximately in helped which over significantly Both our portfolio exposure included garages various $XXX,XXX

the pending fee The earned Summit of of venture in and now project over New GIC with management will $X.X of representing Canopy billion substantially invested joint stream including XX joint asset recent Our hotels, capital, ancillary capital for increased venture services. a Orleans. the growth the result by totals acquisition

cash share XX% to of fees For to million estimated our XX% estimate XXXX, pro equates annual to $X.X be which approximately to of G&A. million, we $X our rata corporate

in as turn Trey commence. planned I acquired fee renovation and asset With We this expect projects stabilizes that, CFO, performance future stream Conkling. the to our over will to years call increase the the of

William Conkling

all Thanks, sequential John, demonstrated our across types. and strong good XXXX, location Throughout improvement morning, everyone. portfolio

and year, and levels these the year-over-year in fourth third hotels RevPAR These outsized urban of of of represent rates meaningfully XXX% recapture to $XX. While and in of RevPAR XXX%, XXXX XX%, respectively, respectively. nominal translating $XX half look quarters the the first hotels growth generated and XX%

was an our $XX RevPAR nonurban portfolio driven the RevPAR strength the a nominal X% for October, has urban to continued resorts of urban our continued $XXX our XXXX. approximately was of college month recapture rate factors highest of professional additional in As performance driving January the into resort October demand. attendance Key of XXXX's hotels with strong portfolio with RevPAR, RevPAR $XXX, by of and RevPAR portfolio sports early nearly typically RevPAR small quarter, non-resort December improved representing in of activity, segmentation. a fundamentals. Shifting month, XX% an from December approximate fourth approximately point to evidence in include which properties, $XXX. RevPAR of in $XXX. further a produces increase representing group generated and a for demand a portfolio's increased improving XXXX, reference, particularly for which portfolio generated Strength $XXX, the urban business

and translates rate rate most portfolio to While including the segments group the full fourth the across in the for week, slowing The for seasonality increased average the quarter, quarter segments. entire negotiated in demand to continued third XXX% benefit ADR ADR quarter XXXX. generated leisure particularly X% relative quarter and QX fourth from as recapture within segment increased demand the retail in to to strength the

improvement. quarter In bookings and days third quarter. which our bookings negotiated of within third occupancy XX% third the increased nearly same-day X% previous is X%. experienced from On modestly hours less than XX% fourth increased fourth from windows by segment the stay, comprised the quarterly the bookings the of the Throughout X a ADR to corporate contribution XX% booking to quarter, from from by nearly front, bookings declined while the declined quarter, sequential the XXXX, total XX within down in X quarter. relative Overall, quarter,

Finally, XX% bookings to quarter of bookings increased days XX% fourth third the bookings XX from out than total in of more total quarter. in the

resulting margin From million EBITDA in consecutive in While fourth remains encouraged enable gross revenue. respectively. expense to XX% continued of XX% EBITDA represent ongoing quarter pre-pandemic EBITDA points FFO, these fourth to relative Summit per of $XX.X continued XX%, in operating of decline for hotel resulting profit strength XXXX decline remain levels drove forma full was Operating perspective, and to in These QX fourth was its year margins trends. by cash million the standards, Pro basis in which generate discipline adjusted forma XXXX. million. margin booking third quarter cost to quarter, only and in hotel the $XXX.X declined and than positive approximately room flow rate XXXX, quarter the FFO a improvement X% full basis quarter million, overall the to XXX fourth window for point we management short adjusted in average $XX.X which the and more pro XXX hotel year a $XX.X the occupied compared despite

declined For XXXX. XX% per the full to occupied room year, operating compared costs

average approximately continue relatively pre-pandemic staffing operate levels. staffing slightly utilizing of hotels our of or FTEs model, consists We than to more on a XX% which XX lean

worked staffing diligently costs continue of industry, asset EBITDA operating While expenses, portfolio affect compared to XX% has management fourth our to labor retention achieve and manage rising hotel of allowed XXXX. our to team shortages our the to when quarter which

respectively, million, XXXX, year we and and our primarily in related and million full advanced $X.X related maintenance quarter upcoming invested purchasing renovations. fourth the approximately to to portfolio During $XX.X items on capital

renovations quarter's from to supply a in more last in call, planning minimize line commence, where order projects. communicated return chain planned more pre-pandemic Throughout typical in these rapid commenced, with recently are may to ultimately we or XXXX, impact As we program demand timing. issues several a markets have anticipate we of on disruption although for levels, renovation

Finally, balance turning the to sheet.

current million in capital to XXXX, X balance. in including X.X% numerous was nearly to the $XXX Our our transactions. liquidity debt, convertible of part its of $XXX throughout due million to Early overall notes position we million issuance of current $XXX.X revolver of XXXX, markets repay over completed enhanced

through Proceeds perpetual reduce with our market in issuance loan remains only November to used This all to accessed its million. balance market the accretively and to balance term we company's management after advantage million this X.XX% including debt positioned, considering debt X rate and rate opportunistic primary maturing outstanding refinance XXXX expect projects stock Series a Series maturity, current available preferred of our of XXXX X.X%, an investment preferred. average on risk $XX were offering ample well outstanding repay our sub-term fixed facility, of interest to credit liquidity covenants an existing distributions. F to we outstanding further favorable capital continue maintain on $XX In backdrop XXXX D of of options. of the our of preferred the which swaps. $XXX extension taking rate million Additionally, the XX% for August, from of X/X% interest to loan to related second current use the capital From various to proceeds, the of regarding potential continues XXXX, our sheet balance when will interest consideration activity, financial approximately with be flexibility corporate quarter certain more provide exit we allocation waivers perspective, and

$XX.X Downtown, excluding dividends be be outstanding During that, an X% loans the Aggregate the that on the were pending mezzanine to million; and have were hotels since quarter, on Jon. proceeds of $XX.X New expense, over of fourth loan repayments the two on its of amortization debt and including that be we corporate pro expense, last earned back certain from our guidance provided million; today, the own to been repaid investment we to corporate million, Based consolidated in on $XX to company we expenditures turn midpoint deferred interest XXXX over in preferred that full pro cash and approximately XXXX. financing G&A, the cash I IRR $XX.X and capital Included costs, release basis. the million. million; With preferred dividends the we whole rata Canopy capital nonoperational both press on a period. consolidated acquisition items, evening, $XX plus interest Orleans will expect to be call the rata G&A expenditures,

Jonathan Stanner

Aniszewski, success. credit in establish a of questions. carrying extremely his I've him to partner we'll over his his with tremendous our his the call the In men's best-in-class a a demonstrated ability good to tremendous publicly privileged and growth open best he to legacy a retirement. Craig a success range team for operating thank of as our Thanks, developed the to just and produce COO, with wish years truly XX to years. results strong retiring And company having and contributions that, Trey. on take platform. hands, wide Summit, deserves have like him Craig of your helping the He very I'd backdrops, operating In have closing, capable a in minute team in to for fully our and leaves been

Operator

Instructions]. [Operator

from with comes Our Wurschmidt KeyBanc. question first Austin

Austin Wurschmidt

First, in of business booking resort, trends between small how you BT albeit certainly, pace for the the February then or the of -- acceleration Jon, curious just March some versus weekday, highlighted and segments and and other compare urban leisure, group. segments, various

detail However, be you would that? of Any segment helpful. can kind

Jonathan Stanner

question. the for Thanks sure. Yes,

we pace in these break think you're saw the remarks, XX We similar market. some tends incredible months as It's our March seeing you've strength seen in leisure Day markets in continues in over strength, very strongly leisure that I the very, of dominated strength sit over weekend, spring particularly to still where a well. we as period, be in to President's past or mentioned oriented so. markets today, prepared still

We are to see better to starting October similar the even are that. starting where we've over particularly not see the we pickup saw midweek just performance we a what later of midweek November, weeks, in to in frankly, kind started last see and couple of to fall

end we do but think, strength we what So more saw of more midweek. more last a of and seeing the towards again, continuation of year, are I it's

Austin Wurschmidt

That's helpful. portfolio today what's the leverage the urban booking closed up, of with prior to NewcrestImage trends acquisition? recovery versus now the And the potential kind Newcrest picking then to and Summit's

Jonathan Stanner

Yes. We're have still is done still that urban has shifted. urban-based. about portfolio mix XX% of our What we

So shifted But it's more it markets stayed than it urban roughly Sun clearly same. has previously. the was Belt towards

the lot of and how is portfolio we've about things for the focused a rationale portfolio, recovery as integrate potentially on outlook the we can the that we one different the particularly be Newcrest as talked think talked I by just market. start and the to business we've about

look the a in markets. gateway other of XX% Dallas of we gateway fraction over and the I some recovery It's at market urban is more were where when of think in -- you the that XXXX.

have Sun you've the all, here. in particular, think population in even lot recovery exposure -- but portfolio, really don't going markets. some down particularly upside the to you're that got a I feel good we growth linear urban in of enormous do of a Belt -- urban of markets even there's the necessarily amongst So We see where in the first

And like of be type of feel of happening of do some relocations growth of You've going a to and some over got markets. the recovery maybe markets. a amount there's trajectory of markets these better urban huge urban period we profile a quicker these to other corporate time gateway longer to a than

Austin Wurschmidt

a perform portfolio? this last during to kind to period And how portfolio then that, just disruption follow-up of legacy does Newcrest's as of relative your

Jonathan Stanner

Yes. performed It better. has

last Newcrest does from recapture percentage. of about full that the numbers think It percentage XX%. couple a getting a to much the perspective. in overall for dicey little points We layered If add our into was the too basis year in it detail. recapture -- I hundred get portfolio, we a recapture year bit

recall, number in XXXX or pace weren't the currently fair open either again, XXXX. a a fully portfolio portfolio. at you'll look assets As up XX Newcrest open little assets that are of of it those recovery bit legacy of if in ahead in today, the ramped were But weren't in you our the is

Operator

Our Bellisario from next Baird. with question comes Michael

Michael Bellisario

wanted flat to go like Jon, the to it in I it FTEs of fourth the XQ. the labor levels roughly just simply hard to versus versus How third flat were you that seasonality quarter occupancy back lower looks slightly -- labor and find that is versus much quarter? comments made, today

Jonathan Stanner

frankly. bit Yes, both, a of little

improvement we've the I market. labor started to in see think some

I think the number of up. positions challenging there. ticked It's applicants that we're seeing out has for still

demand. seeing across did really expect be I slowdown seasonal in there to you're industry. it a think We the

people. it's of I about, been think as we've hard to kind talked find

We've, bit were the into able So Certainly, we be we've roughly operating these very talked we're in rate make knew we fact a once still our the Trey across obviously, in wage but of sure property. was XX% the of running about pressure them those that was seasonal XX what about and industry. slower per still hotels. period, that to got going we bodies, some fourth lot to been moving we place we're quarter, keep despite mentioned, the It's typical we've a is. that lean. little very, seen what run want find to we've FTEs

cost quarter quarter per X% is versus still occupied fourth XXXX. fourth Our year more room of down this than of

to the demand progress a remarkable done think a in a here very they've once through hotels continuing really has start hotels as of job perspective to operate this from team a a And we more positioning efficient we the see job manner. good staffing in year. So ramp-up done I

Michael Bellisario

XX% housekeeping? type it Got of is come it. that that? hotel at yet, then And level? mostly what hasn't Is that back the position

Jonathan Stanner

so Yes. It's staff, hourly desk. up mostly mostly housekeeping front

Michael Bellisario

Newcrest transaction capital And work aside be allocation, here. What's much on guys then landscape? to to basis transaction? able Got to in you put and might how portfolio gears And just your just money XXXX, it. Newcrest on digesting a switching acquisitions the the net view the from

Jonathan Stanner

XX Yes. Look, only the about Newcrest for owned we've portfolio days.

we're integrating way well within to company. on the So that definitely our portfolio

underwrote we the feel did than even like acquisition. opportunity today through when looks we that about we announced think or acquisition when we better what even the I set

diligent talked a were thoughtful we lot As the we very we and about, deal. structured in how

Trey didn't us of We expect still mentioned, waivers do we try So continue of the be we of grow use here the any nearly liquidity course for thoughtful business. to $XXX have our million to next to to covenant available liquidity. and over quarter. our the exit

basis, And opportunities. in a cycle. we net a be early acquirer looking so greater sell net some basis. to opportunistic to we'll us to wouldn't On I preclude on to a have an from even assets prefer pursue continue flexibility growth

everybody business. overall that value which knows, chasing to the there's supporting like of I assets the as ones speaks the we lot of high-quality own, a capital think

think always to but to prudent be to on continue we've capital and I we'll sell and thoughtful the side. again, been opportunistic So company grow positioning allocators buy the in both the continue externally,

Operator

Capital Our comes Securities. One from question with Malkin Neil next

Neil Malkin

not in we're now. right Glad Ukraine

Sorry gears pretty the hurting about the less the Can benefits Aimbridge of guess, little from hotels. Switching concerning. a sad I'm the I talk going takeover what's Newcrest market. about something, on. you and to

would numbers around purchase, the things underwritten margins, synergies that weren't that maybe great. practices, some approximate of that, articulating giving Just savings, like be in and terms leveraging or maybe hotels, like best us in

Jonathan Stanner

the Yes, question. for sure. Thanks

time. largest of all, for has manager been our Aimbridge some is and First

kind kind time within really the that a dedicated we of think have terms really the optimizes is very particular opportunity We we're for the relationship in Aimbridge of our and company's of team real assets. We platform wonderful do in think been assets of that unique, believers that in services IPO, the results. in that since big have own there's overall the we do amazing us partners our upside

opportunity, perspective. quantified we that but that, that. there's haven't do and both We a We from didn't think sales cost underwrite a real

is There's you've kind or XX that complexing buying efficient We dual-branded alluded exactly of of They're of more Triplex positions by of to. hotels, a are sales have real where the we what and them driven to Some branded process type activities. operations. complex hotels. bought in properties XX complex. either Many we're think there's opportunities ultimately

XX So believe from But the asset perspective. drive It's in-house underwriting. well, the better again, alluded we we're we we do some than bake we of even do because we're expertise It better feel to to of of part there's that to still, revenue our into days not didn't be underwrote upside has because when there did have acquisition. that necessarily to what any that management results, the as I into we the going just today asset both opportunity real a with lot a relationship. and Aimbridge we

Neil Malkin

COVID capital date about I One, to in leverage, a you bigger That's how been talking do bit do through a a going has you've or years limited just or question. done you what more helpful. the little higher it. into guess COVID and X were you Everything you could super GIC. last could kind over have I different of view parter. do picture guess, sheet leverage, toward maybe balance two or outlook allocation,

part So on of the to that's doing things or in more is, first the sheet? metrics before sand can the kind signals, the And start what see lines need second balance achieve you are part. you

Jonathan Stanner

the I think feel little everybody the leverage and a that. side. Look, have to start on bit to than have chime downturn. We're here free going different no I'll would liked can sheet Yes. in Trey balance into less

metric at look we I the we assess the and that's know at kind as at sheet beyond more across balance and coverage on across debt of look overall liquidity. that look felt look total our a I maturity kind had leverage. was if we We was sheet. very you of We compare metric our and healthy look more of business, had kind near-term really interest easiest space a into balance going little at I charge end lot very but it intentional, that what net ratios. look we industry, just picture, one this to total bit this EBITDA. have maturities. think think a downturn. We of we into ladder, look holistic going we But any high And of when to We did at our a stated were for at our And of it we the ratio We didn't have our basis. had coverage we at size we at of liquidity. range fixed we the look leverage health, the

to through couple dilutive of choppy navigate raise years any to able having capital. a without were we so very And

was in sheet balance very because part of thoughtful capital. is better been in than around years a today a how we've Our ago raised position it couple we've

the us range. leverage we course to think of of over we normalized sit feel years next I today, of about that happen that's the couple where down more get to natural deleveraging the progression So to and good kind going the a very

because rata of joint terms joint does how still partners. ability It fee us that need the does that wonderful, for capital the been we venture. about of the In basis outside still think us venture pro love there's acquiring in joint think still portfolio. help we like overall a that it creates. on about within limit any to has we our wonderful stream put an overall the to We venture. really We it It's within grow or X/X venture. the Look, GIC deal.

point making we We sure an are structure. we inverted have capital cognizant don't where to a of get

we've do And to that growth as I $X.X very gotten billion a as see to invested proud well. think venture. so I'm capital there in start you'll that time grows about the that that becomes of of some outside

William Conkling

years into the there is, couple we want I'd is the to The ratio, of perspective look Jon like X.Xx. ZIP we've the that's growth we good only add out we'll able back roughly we're code said, we kind to John embedded feel about EBITDA I in the that think debt-to-EBITDA always interest and as said don't what a of net put our at that portfolio. feel And be over we kind at to next coverage at When from get look thing as organically, that to of that.

within of that and our we able look able deleverage, to operate to our And And flexibility to there's amount in out to go quarter, capacity exiting lot agreement the facility, be starting second within and to of what that us fair also waivers be so our but a there. at plans. continue is continue as our gives growth achieve a credit we'll

long-term relatively that think the the I and plan get remain same goals of from there perspective we in to leverage normal a company So a the course.

Neil Malkin

I to follow-up to just levels think, demand of question, you wondering, talked maybe you about sort of XX% do I'm how sort enhanced but type 'XX appreciate FTE, And close you a sector your everything mean you brand and rate. back think that? your standard are tomorrow, just to of that. back Last new at to one, you previous talk things stabilize when FTEs. model, that of count. I FTE of about normalize kind out, are I Can operating assuming run lodging out, are of you comes -- XX% comes

Jonathan Stanner

great It's question. a Yes.

normalized of is we about where XX% FTE think count. today I we're sit

I think the through standards normalized what we're look like. fairness, the to going are brand working in with brands still

suspect this return of FTEs part asset. XX go business business. for in we're waiting don't that has ever because we're going travel overall think of the back to to and what I on that effects our see to I

think, per hotel. continue to to XX% somewhere still We're business pre-pandemic our somewhere use out I to less FTEs time. going efficiencies there's alluded to going efficient count. that's you've over that guess range, total FTE with to going to My is some more and figure of allow in as be a to, us XX% this broad between model that operate a and

Operator

Next from Deutsche Woronka Chris question comes Bank. with

Chris Woronka

whether of of kind increase geographically? Belt do the issue of see -- for or revisit the to also coastal? about from portfolio, you angle. percentage Sun and of talked wanted half but is differences big slightly a amount What I there different whether kind it's availability, or you're between labor benefits wages kind when difference northern you Newcrest it's a and the the And

Jonathan Stanner

Yes.

acute by market give difference. a markets about But talking together statistics mean, staffing it's I we is dynamics. in in acute markets. market. about market, there hotels as There's XXX more that we're that we're of very seeing we're that think we've got no lot I some kind labor market, certain a when challenges broadly, Orlando, it's talked Chris. we've lumping where in more what XX over particular, question a

those So demand, a it where demand, there's market is tougher of particularly in areas. some staffing service-related

Chris Woronka

And helpful. CapEx then I the the That's appreciate Okay. for outlook year.

-- past in X the But term of years, think to there kind directional with you you 'XX what it's is a out to spike thinking run CapEx? you guess bit longer do maybe is of rate the big I'm delayed a a you more and really you of there than I the peak of and is new see? few portfolio a kind level little as Just and might there specific any a have look some Newcrest asking, numbers. get Or we that stuff want things 'XX, of coming kind

Jonathan Stanner

see spend that. of kind amount of only amount a we assets half bit venture we're going to and the it it's share more And the of Yes. fair this I and are of in little a don't guided that a a it. because fair venture of our big the in is year helps look, to the spending --

a kind go If the minus spending we between XX of plus midpoint the hotels, on pro $XX gave a on prepandemic, million were year back million rata of we million. guidance to this or somewhere $XX year $XX is you basis

So it is elevated.

even reflection very last partially we demand we was One, We conviction a early seeing count; as to place. on. the some two and activity pace think, You're want the hotel had year up do starting talked, when renovations accelerate about higher have just of renovation caught we secondly, I to that that the things: that in of get

It's that any in or of I we we thing have X period integration into and So real portfolio the years with new immediate one of an as of fortunate the portfolio. immediate where we portfolio. a were we talked renovation. capital. the new There and fall lot downturn last capital portfolio asset have really a deferred about needs we didn't X about those go the don't entire didn't a needs. out within opened very where And deferred Newcrest a this is we to capital. majority the would vast The had The any have last very assets been into lot point a talked

to capital the an these the business to it lot of So ability add a without next years. couple was scale of adding really in over

can at be you for run to and next the we out what in couple XXXX So would we over of rate I expect years. think that around the put look

Chris Woronka

is And Newcrest you just hotels potential a And Very little there always you I by term some was how stuff here. the a the XX%. Okay. want many you mean, probably do to hold down how if noncore you'd sell today definition don't changes on you guys portfolio? I dispositions -- legacy -- in price mean that think helpful. have gauge could have XX%, of the bottom last kind view bottom long definition, versus right hotels you know, for pushed to from one a -- core is of bit. I you way

Jonathan Stanner

truly anything noncore look we as there's don't I that Look, don't Yes. that own to we anymore. really want just that know

portfolio always that the there's kind bottom As could said, a you dispose of of. you of XX%

sort sellers we those selling we've all And capital from assets of as portfolio but assets. a us been And type have manner. feel of preclude some raise I always of think more good to to don't to a all, go like it got We we've we don't we full we in at capital importantly, is, assets, need defensive of sell wouldn't opportunistic amount tremendous I of way of assets. Again, in assets sell. markets. chasing look high-quality first the there's know,

And day. of so I to every asset an the sale extent in that from we opportunistic preclude assets can seller And find wouldn't a buyer us that portfolio being will pay again, year. every this the is for this right price,

Operator

Crow with James. Bill from Raymond comes question next Our

William Crow

levels change to in implemented as guest good changes the Are for service time. score rediscovering changes the not they are as have guests any you used as been of welcome that a longer satisfaction trends the travelers, in John, to getting business it be? more or period now your quite used experience is

Jonathan Stanner

in an of services, Look, a out in scores. it and early pandemic. think Yes. was amenities did stripped When we that reflected guest lot it's the see than I less issue of we the today satisfaction

some think of happened and back running Breakfast some Now is normalized that's services. customer seeing manner. I a last it do added is months. level of amenities over we've lot of education the the you're XX of in a

satisfaction guest were think do before. than I maybe less So they bad, are scores

along there's want we don't make sure as think I to will business -- that brands, comes there with the not back. traveler that the additional I be. suspect do we disruption

think that for traveling business has traveler for been but work, been this traveling X I for hasn't hasn't been years, traveling leisure.

pretty already educated. I that naturally is So customer think

today is less X again, think, a of it year or a ago. concern this than do I So was

William Crow

upscale on starting thing. cetera, pushback It upper that a higher than I'm apartments, relative logic on average would of that be And gasoline, yet? that durations And just for in seems rates guests any would would maybe maybe $X suggest service or gallon leisure Jon, leisure shorter rates Are if per or rental toll take et wondering on traveler. luxury shifting that's seeing to pushback select guests. over you evident to greater even some leisure it like sort

Jonathan Stanner

We're Bill. not, Yes.

that some gasoline potentially In news of on in we think that's one the higher natural over were last the is -- and about been couple prices. going fact, Ukraine the we've talking kind of days. Obviously, over with I of this of fallout

day. barrel haven't. over oil $XXX just seen a You've We a

even historically, in our even to where at gone on rate. gasoline prices, back looked or and I push much any occupancies, rising effect really you least of our of you've effect seen time we've an haven't periods seen -- think abilities on discernible

clearly. a look, along, I and today lot higher think this on But just go we that. prices than we of lower where prefer gas haven't effects from prices sit we gas doesn't we seen hope

very lot today you've healthy got that's particularly and consumer of just you've large a consumer. to savings a for built There's seen think up. things. travel-related a consume And propensity have that I been a

up or that in You which saw the President's little RevPAR in year-over-year. even were were X% a X% we XX% had bit we Day that versus weekend, over results 'XX. up

than this were higher in were year Our rates XXXX. Day XX% weekend they actually almost over President's

certainly hasn't prices. far it So any we're haven't so historically, But it again, year. I don't this higher big effects been think a our driver business, gas we of seen and for rooting from

Operator

showing to for And any closing back I'm over further remarks. no Mr. currently the hand questions. like to Stanner I'd conference

Jonathan Stanner

excited next speaking to joining all you in all, look Have Thank hopefully, the quarter. you future Yes. for today. us about and of day. forward We again person We're seeing nice with Summit. you soon a

Operator

and your gentlemen, call. for today's Ladies concludes Thank participation. you this conference

Everyone, day. disconnect. now have wonderful may You a

Summit Hotel Properties (INN) 24 Feb 222021 Q4 Earnings call transcript