welcome you, XXXX and Thank third Good call. quarter earnings Hilda. morning, to our
as continue quarter of this I our to support ensure possible. to transformative their This make worked was all for who smooth I to who shareholders, this we for also employees, to completed thank thank And want want transaction. with to tirelessly of FelCor. work merger our our a merger RLJ, integration.
excited We by ahead. truly what lies are
in strong compact robust we’ve which focused has with committed markets segment, and have coupled rooms years, topline hotels. revenue full-service of Historically are attractive growth with focused-service to generators. remained premium-branded, That located the margins owning primarily Over our investment maintain multiple margins. high-quality strategy is this high demand and
growth from are model, to through segments enhanced a of lodging in Overtime, in acquisitions regardless portfolio, we've cash continue weak, strategic mix of the to industry, the of flow dispositions. we and volatile we quality one our and cycle. profile consistently the where expect this benefit As
diversification value opportunities but is We profile the not with investment differentiated adds also our long-term free returns. market strategy. a scale, strong disciplined cash merger compliments the believe, continuation only creation We're the brand and excited drive merger flow that to and our adjusted of FelCor, that superior Our risk continue approach. should diversification,
well with update, Now efforts are merger our our underway. integration respect to
diligently Our including all asset construction. through Within across processes and functional and working function, well combining extensive areas, design is management accounting, along systems, an integration each finance, we are staffing. team in and
Our focused team value. on initiatives, larger will laser remains our strategic that drive long-term also shareholder
ago. naturally areas, very assets. balance closed will selling take finally initiatives in these merger the execute, we've and with progress about While XX fully These pleased days that the include optimization, to non-core initiatives opportunistically our four reinvesting we're made sheet since assets, key synergies, time realizing
corporate with cash realize to synergies, and our capital First, we regards operational enhance flow. further free to which synergies, expect
synergies, to of by corporate achieve clear sight, eliminating a have million of line expenses. duplicative We primarily corporate $XX
While fresh level be bring operating the XXXX of expect capital And, quarter run we XX we in months, to and that lead excited a XX corporate implement hotel majority large while of we portfolio. the costs third there perspective to assets will efficiencies, a expect time the into contracts a longer are of will by tail to acquired to eliminated we some the XXXX. these have by for and
already we've example, one our service As and identified contracts. among capital procurement opportunities property-level
hard IT rate a asset. relative on on average we per instance, XX% in the costs XX% and identified run a savings For property level
goal a larger wins, to will strategic lead as find expect of in throughout these efficiencies budgeting We additional such and margin to cost driving that process improvement. our aggregate incremental
Second, with respect to sales. asset
portfolio. platform proactively Our more to us expanded allows our optimize
legacy portfolio. both in opportunities RLJ recycling have and We FelCor the
resorts hotels, FelCor meet portfolio investment the that do strategy. non-core identified which have include our luxury not in seven and boutiques, We properties
for at to turn. XX multiple a our would aggregate able be the for to not times would to highly multiple, paid which EBITDA We but expect least FelCor this least reduce today, only the creative full at assets a in shares by sell effective of be pool portfolio,
within staggered XX sales months, asset over of of non-core specific that XX expect pleased various will to contract underway next be on this the group we the by we these. a negotiations number Although, stages are
We will these updates provide as materialize. further asset sales
any overall FelCor RLJ immediate to generate our XXX We that optimizing evaluated assets. and to XXX million intend active as from Use share we million portfolios A towards retiring of assets as reinvesting most be anticipate sheet incremental disposition well sheet. proceeds high of to leverage the will the through finally, our capital, debt. Third, pipeline debt opportunistic other balance management. and buybacks. our be reduce the against cost retiring balance proceeds in proactive rated sales And includes higher will used cost of from
lifestyle ourselves our historically look of will growth on as in and renovations our the with converting and extensive the produced Embassy would Oxnard, drive competitive a overall a some growth select We're EBITDA in to brands, than which in capital long-term opportunities, XX% our EBITDA. By assets lowering location Suites opportunities. set additional opportunity regarding capital portfolio, and cost an this our in in basis. for post this optimizing positioning We prudently growth. investing to one convert of synergies, such market we to we've experience in and see based share more of we drive brands, significant these future realizing in early of we're stabilized portfolio, discussions the California stages market, increase Hilton’s by Bay on expect the reinvesting Through assets, conversion Mandalay
focused-service to sheet, industry. We strong us the segment profitable positioning premium-branded, and refine continue leading substantial the compact most our have positioned be has value We for portfolio in our initiatives shareholders. that player drive we to of full-service an with that strategic the in and hotels our high-quality ongoing will and believe expansive diversified balance
dedication, extraordinary, associates, and the above this minute many a under truly I'm beyond those say who and devastating personal made lives like hurricanes, by also able we and were performed with the The difference that call. appreciative a provided efforts their at Now take Their to standalone of before results thank so the caused despite ensured in positive results, leading quarterly soon guests. RevPAR estimates that incredible the two truly difficulty expectations. XX of of property-level quarter the Their circumstances third to than basis normal earnings taking new our to of of of combined hurricanes care to our extremely FelCor legacy in our our to assets Despite turning were our were went time better to lives as to points, our of approximately our We in a guests. back-to-back addition return lift that inline portfolio last would possible. I proud as operations the business them. our
partially a some of Harvey since Austin, post-hurricane Given the experiencing overall events Houston, seen have earnings. and and driving RevPAR quarter was than XX.X% demand None In at damage clearly We've Irma our the X.X% With seen us, RevPAR but hurricane of some to and South related Storm due In is days last the positive mandatory damage. disruption mix offset X.X% plus the quarter, orders are for demand In points. slightly from In assets, hurricane. RevPAR a continue a extended to have few we five we from negatively the leading disruptive growth stay improved trends In given X.X% demand grew post-hurricane ongoing hotel recovery this the RevPAR despite lift September, benefited now still Florida. citywide in activity activity expect market. into October November. better in the significant we experienced about cancellations related California, our leading pro of in the minor intrusion and of decreased multiple hurricane to by the we or the given pleased the do the market headwinds these Florida, that RevPAR any of robust significant declined closures business properties group and XXX optimistic our and RevPAR hotels QX. South relative by headwinds potential in quarter, muted of future October, X.X% of approximately unclear, results business slightly non-repeating and for cautiously evacuation if to we our forma Hurricanes impacted water for not from expected. were we disruption basis pace upside growth. resulted of Caribbean by decline eight this year, from foresee we quarter, fourth therefore just Travel, the RevPAR disruption adjust Northern of behind X.X% some decrease temporary were flat hotels recovery to displacement. quarter. related
XXXX in region QX. result citywide Francisco comps, and increased we in Given merger. footprint activity record-breaking in increased the activity Also with as expect in San expected citywide easier performance our a of and the strengthening
long-term. We California, Southern a benefited to strong market of powerful In our during be and leading portfolio driver growth the corporate hotels X.X% expect third growth, from demand this to RevPAR quarter. robust within performance our
market, we a the Southern weak the Strong California hotels corporate trends to quarter. our citywide our year RevPAR these of one and our the Denver achieved expect markets strongest also into all in been fourth where despite was positive has of continue growth of main X.X% growth demand calendar. driver
high a led our expect negatively floor by on RevPAR rooms strong basis overall sprinkler our to water and damage XXX XX to points basis In portfolio impacting continue quarter. at this points Mile X.X%, properties. property, positive results by demand malfunction Denver drive approximately to Chicago, We by a market Mag XX corporate approximately at declined performance head our our in
beginning city, result to RevPAR citywide the back with related fourth post Louisville, fourth and X.X% easier soft holiday closure. respectively quarter, and alternative disruption York as our convention in large along in X.X% expect as an markets. While a difficult RevPAR online center improvement growth We a was in-house to rooms on come Chicago from well RevPAR by previous group the X.X% lead in declines both positive RevPAR at the these these of of the from as in venues market remain track Marriott. of to we citywide comps experienced strong shift benefited of in because activity the in New D.C. as weaker comps with the Washington quarter, some along we In the expect quarter. our the rooms the to the year, of activity decline continued
approximately RevPAR Finally, represents our which a now nontop decline market, XX% EBITDA, of of our X.X%. XX experienced
by such Atlanta, in Myrtle the Charleston not New South shift, In addition the impact saw post-hurricane from as impacted did from we and such holiday markets and the Orleans as Houston to markets lift Florida. but were the hurricane Beach, benefit
do as many quarter, last fourth markets in demand. difficult Philadelphia expect comparisons projecting the to see on democratic of Additionally, had stronger convention year. the significant these improvement We are
are we backdrop As by of our general encouraged per as over we look out indicators. economic a outlook, number the favorable
lower we unemployment, consumer GDP and to improving rising corporate confidence remain healthy. strong growth, Given profit, demand lodging expect
and was On front, of tax might momentum the legislative reform also the bill follow. infrastructure an prospect gained
could a demand these tailwind All for of be next corporate year.
economic and especially remains supply While light positive is drive lodging the in major macro continuing to muted of demand, in pricing market. new power the backdrop urban
a favorable monitoring reconstruction the impact expect growth a deceleration of We At lead hotel to and new could cost the to near number time, Texas which the medium-term. development. to in of RevPAR remain construction, a the supply in to are the in activity same Florida headwind in on of markets we
in D.C. in out Bowl in difficult Houston comp a result of the first the Looking expect have some the year further and inauguration of to as half XXXX, Super we
However, from in increase we leisure to demand. in see expected positive potential Florida South a lift
will benefit, wrap to positioned San also of Francisco, centers once and we and the convention the be will in fully closures we Miami year, operational. well Next Louisville
earnings about levers of multiple our about XXXX guidance year-end further cash I'm our flow I’m to and we pulling and excited and plan. practice. our energized details company we We direction strategic continue to returns. are drive provide future call as on shareholder standard will according the executing the
a of And stage more are growth. detailed Leslie? to financial with and the benefit a highlights. I'll review platform Leslie from the to operational of for long-term that We our call that, over number set embedded opportunities combined unique for turn poised will in our
