RLJ - Earnings call transcript Q4 2019

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Operator

This is the conference operator. Welcome to the RLJ Lodging Trust Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Nikhil Bhalla, RLJ's Vice President and Treasurer, Corporate Strategy and Investor Relations. Please go ahead.

Nikhil Bhalla

Operator. you, Thank welcome and and Lodging XXXX Trust Good Earnings to Call. Quarter Year-end Fourth morning, RLJ On for Leslie quarter Executive Bardenett, will and operational discuss Management, Sean today's and Executive Asset our Vice Chief key Q&A. Chief call, Mahoney, be and discuss will highlights President Hale, Financial our financial Officer, of for the Vice results our the Executive and will year; and the available President President company's Officer, Tom guidance;

call are that results undertakes we this Factors update statements. to numerous our last to located company's Forward-looking XX-K results found uncertainties on statements and other press impact certain materially of communicated. reports subject risks discuss and review can be GAAP had in from may filed may actual company the obligation Also, made company the forward-looking no that with be may as been in the the measures, lead the release The from the it company's non-GAAP to to differ helpful reconciliations to night. SEC. what

over now Leslie. the call to will I turn

Leslie Hale

year. Thanks, XXXX Nikhil. plan year out another all metrics and reshape everyone, profile. successfully Good our RLJ growth for the We for the was on we our achieved as of execute transformative enhance we By all priorities had thank our operating joining thoughtful you us. morning, laid portfolio, measures, to and for improve our key

X exceeded ratio and by hotels debt our for we separate I our of in further hotels not legacy but sold only of X X.Xx, schedule. strengthened accretively ending that $XX including debt-to-EBITDA we am with XX fortress Beach million them We stock. maturity balance and located while improving sheet repurchased legacy profile, $XXX year fact, net the In report of RLJ and a hotels in million, focal our covenant transactions. over Myrtle also to we expectations, we've completed pleased ahead XX

the strength X.X% and reshape was industry. broader the portfolio demonstrated we XXXX, with quality by our achieving which growth, line RevPAR in Operationally, of in

year the that $XXX, ended reported maintaining X% attractive of we an $XXX while in the our higher XXXX, with margin RevPAR we absolute profile. was Additionally, which than

We especially year. which reflected operational relative strength is margins the in of progress our initiatives, the our of pleased are with this

With XXXX the of operating execution we not only to a NAV our that vision moved our successful of have long-term results, closer objectives, drives over but portfolio time. strong appreciation drives also achieving owning

strategic growth, our were which the portfolio by as the year, our and on largely benefits. We improved elevated long-term multiyear of absolute investment quality and higher an growth will We and we non-core catalysts underlying generate last efforts capacity. had evidenced identified in a sales both Our portfolio, our in unveiling to value enhanced several focused And near-term unique profile. returns portfolio created creation. that asset significant growth-oriented tangible expected are concentration markets finally, drive RevPAR embedded which

will us industry transformation the the perform with line near in portfolio Our term. to enable in

initiatives While drive outperformance. embedded long-term will of our growth the execution and catalysts

sell to our year. Following program, hotels any we expect strong do execution of disposition not the XXXX this

operational X% active we As remaining the on for focused focused have we ROI portfolio, key a sheet Wyndham a the coupon; strong the plan redeploying finally, first, and enter on with FelCor current our repurchase share third, the which X executing programming; prune and lodging environment; bonds, second, finalizing redeeming areas: to conversion year, are catalysts. program. initiatives; fourth, a balance maximizing carefully XXXX, This in activate we capital our are performance

to significant We on are well in-house positioned these initiatives, capacity. given and execute our expertise

of priorities. these made We progress have number already on a

investing throughout space million opportunities. projects, reconfiguration, of brand and year, we including initiatives, In up terms conversions $XX anticipate of operational number to among this ROI our a

to space such projects, reconfiguration underutilized Jose. in And meeting Emeryville, which San rooms also and new the space several pursuing rooms of currently are Atlanta addition the of new in We underway. is as conversion

energy a projects portfolio Mandalay management execute the the year, favorable we of number continue Curio which agreements. and will renegotiating join Beach, we on XXXX. across Late Concurrently, will expected including our our this terms begin expiring of to Hilton's parking Embassy Collection conversion in operational and Suites is initiatives,

EBITDA We contribute targeting ROI seeing projected and these double-digit to $X a are from are this is million of low our on minimum unlevered million to which already results $X we program, investments, returns of year. positive

brands. to rebranding available relates it excited remain currently Wyndham negotiations repositionings, and we opportunities multiple the high-quality by As the active with are in

Charleston, Monica Wyndham and We Santa in the expect of prioritizing to mid-XXXX. House The we Mills repositioning which are the by complete

anticipate Additionally, Wyndham by end the more X year. properties we next repositioning of

we provide updates the as put year make throughout in will balance. In we June, million the call, FelCor progress. a early $XXX We

optimize and expense savings the our and will coupon the will between interest We simplify rates, sheet. interest which generate arbitrage current significant balance

capital to million our $XX.X approximately Finally, repurchases we tool Year-to-date, accretive we view highly continue of to investors. return as share to repurchased a shares.

full the to share at For XXXX, expect to we subject year, conditions. levels repurchases similar market

reshaped which our turning are our ahead X.X% we expectations. RevPAR was achieved operating performance. pleased With of growth that we Now portfolio, to our in XXXX,

in markets. as portfolio performed competitive industry local with line while top Our sets well as our urban XX the the and outperforming

from of hotels the ramp. despite particular, of was being again innovation to with points the the which With exceeded quarter, renovation. from under by During XX.X%, performer quarter basis our X.X%, strong our disruption. key benefit RevPAR Louisville RevPAR during our and In the fourth approximately shift expectations XXX is driven hotel X holiday the the our as Louisville quarter, growth Downtown to respect two Marriott renovation markets in declined early by our top continues

performance XXXX which the up, this is Louisville our strong group Louisville at for again is positioning pace ahead, year. Marriott Looking

quarter renovation. having Our during D.C. X.X% market under of RevPAR achieved growth the fourth hotel X despite

strong the the in year. is as second given from benefited Corps Marine especially D.C. transient for performance Marathon half such hotels strength demand the In events of poised by created of compression Series. several the Our the World strong XXXX, in the and the market citywides,

Our all are located which RevPAR X.X%. achieved CBD, now robust within quarter a fourth Austin growth of hotels,

the schedule X University and Our from Texas of Formula hotels benefited a race. football strong

into a nonlegislative move market of will As drive and year XXXX, we increased supply performance. the fewer moderating combination citywides,

Moving to Denver.

achieved X.X%, of RevPAR relative footprint in demand. demand growth dispositions geographic driven hotels our Denver strong by to healthy generators. Recent improved Our

XXXX citywides are weak, result However, Denver. which to soft performance is in expected in

fewer was at be of Our X.X% our RevPAR achieved constrained largest Silicon fourth hotels, strong offset RevPAR the RevPAR San California hotels. We Francisco Northern at renovations late in soft In XXXX, some growth of Valley and impact market the coronavirus. of business Chicago achieved X X.X% during flat trade of incremental during In which half growth the to the quarter. our project combination during citywides the citywides trends a by quarter expect the of year. in be expect benefiting to quarter. largely our first from XXXX, we in especially soft, quarter outperformed from although citywides Chicago, are REVPAR, business long-term with due hotels strong market fourth of were to

New Among benefit citywides. from Southern Houston, continue. York our however, shift, to stronger and while and Florida partially South muted citywides this softer markets Florida from experienced we South California Southern weakness XXXX, due declines, experienced the from Houston In to York expect California we incremental In New benefit Super quarter, soft Bowl. and the expect trends and Jewish holiday to

X% and benefit our growth as Tampa, underscores which X.X%, XX.X%, Charleston number achieved quarter, a markets fourth the our geographic such outstanding RevPAR of other Orlando footprint. respectively, of and of During the

business trends to to to and is consumer XXXX, remain the projected moderate ahead recent expected a although is and healthy, Looking economy concerning. investment pace at expand the U.S. are

to uncertainty, demand low global the both face we the environment, growth. top lack relative and especially also XX pricing the the a lodging drag Taking markets factors these tight the We to and a expect factors again top into and coronavirus, current XX of of the year. of new of in incremental market. will and urban power continuation urban economic U.S. markets, once account, broader Additionally, to create an industry which believe result underperform that all growth in these this labor supply, impact will

year. believe business that will soft Now with RLJ's headwind continue spending in this to XXXX, to demand footprint a be markets respect to significant our lodging in we

D.C., be in such Franco robust Louisville RevPAR to in markets from South We growth such a also after as software in XXXX and San Austin, expect and Chicago strength California, and citywides of comps Miami difficult Boston, Northern citywides as offset markets Atlanta. in and

impact be we The value our nimble create positioned performance. regardless In multiple perform us our environment, on markets. and our expect tangible value-creation returns choppy positive portfolio XX balance with cycle. bottom strength our in will relative to allows and an Overall, to uniquely our line simultaneously. portfolio in of to the our the to otherwise sheet top enables us catalysts line to headwinds, contribute with margin opportunities will shareholder where pursue Despite a ROI we have initiatives line urban of and from are is lodging top

Finally, of we curated well have long-term hotels today, that a outperformance. is high-margin for rooms-oriented, positioned portfolio

turn highlights Sean? financial detailed and now guidance. will to our over the for I of Sean a review call more

Sean Mahoney

Thanks, Leslie.

let's quarter. adjusted South the ownership the our and corporate fourth and the quarter this move Before review discussing to hotels out include period. December And owned FFO portfolio, during our following: sold results results full operating operating With year XX, results, of Austin quarter XXX was include fourth from the please RLJ's way, exclude during reported as the EBITDA our note hotels quarter. and which sold only of on our

RevPAR Our quarter average a October, and occupancy. point November was Monthly partially RevPAR fourth quarter X.X% in X.X% by respectively. uneven of RevPAR with during RevPAR X.X% results increase contracting December, offset growth decrease the a and daily in X.X X.X% by of were in percentage rate, X.X% followed driven by in contraction

which renovation strong timing generally these the Total were demand, decline group were increase in initiatives. results offset over leisure revenues, in the transient offset growth market X.X% despite which which disruption other other was From drove in months. and and the We maintain decline transient. during segmentation share Jewish quarter mostly X% continued of departmental October revenues, of low beverage increase basis single-digit from XXX success able of November standpoint, we which to the RevPAR benefited fourth was quarter. the growth by RevPAR a XX.X% as negatively the in revenue by and impacted quarter and a quarter, by to with points revenues October were by due grew during pleased which the holidays, Our outpaced X.X% impacted revenue was food segment. December The the RevPAR a a business our driven in parking leisure

only primarily As revenues. on our we which group XX% said, October. by was Jewish driven quarter That approximately approximately declined revenues segment the quarter, X% during of expected, the represented holiday group impact fourth

the business mid-single of digits. our contract backfilling in increased with Finally, transient the strategy we continued during quarter, which

Turning to bottom the line.

and million million $XXX.X fourth was for the $XXX.X year. Our forma pro quarter hotel EBITDA

our of and XXX to tight unemployment. EBITDA terms to rising with pleased limited margin we In were which contracting by hotel management only fourth to increase of wages market our cost a basis operating costs asset initiatives to quarter benefits containment the operate the headwind that led and operating margins, continues due labor industry in The points. X.X%, low our

represent Our costs, and benefits, fourth X.X%. quarter hotel XX% which our operating increased approximately wages of

focused practices remains turnover best implement initiatives cost this environment. team on Our containment and cost productivity, to to continuing and full in employment labor manage is

adjusted of fourth $X.XX. and operating into translated per adjusted EBITDA quarter Our share million of FFO results $XX.X

For the adjusted EBITDA share million of adjusted per of $X.XX. and $XXX.X year, we delivered FFO

of unrestricted billion cash ended of our to $X.X balance and fortress X.Xx. $X.X approximately quarter the with sheet. of Turning debt-to-EBITDA billion We net debt,

continue maintain sheet. to balance flexibility We our significant on

our or of unencumbered, EBITDA. As of hedged, is our the of representing and XXX of of approximately debt the XX are approximately XXX% quarter, hotels end XX% fixed

a reduced announced, borrowing the loan during $XXX our we our transactions previously revolver increased These our million refinanced extended costs. fourth million flexibility and and maturities, $XXX As corporate our quarter. term

improve will we overall sheet our our financing of markets of average weighted balance to identify cost XXXX, to to additional debt continue and maturities, During reduce flexibility. the laddering opportunities our monitor increase the

XXXX outsized potential. XX capital in of XXXX program markets points renovations growth In approximately total, within our with our renovation portfolio in was Our basis resulted concentrated hotels disruption. and

$XX between ROI the on invest initiatives up to million expect on and renovations $XXX we million Leslie to $XX XXXX, discussed. million to look we that As and

expect assumptions. We line be XXXX XXXX, in our which will guidance is with renovation our XXXX incorporated disruption into

average Now of at $XX repurchase share during with share. we per approximately an repurchased $XX to X.X million for program, XXXX, respect shares million our price approximately approximately

and an share. we have at share repurchase X.X take our XXXX, active in average of have of per far under to million price So price volatility program advantage approximately been approximately repurchased share $XX.XX shares

Our new program. Board $XXX share recently authorized million repurchase a

total the dividends seek component provide to of Additionally, we as continue an to return important view investors. we

through shareholders our to capital repurchases returning continue share and to expect We dividends.

As disciplined highly we continue will have deploy demonstrated, to we we remain as capital.

pursue, brand of and a evaluate to including conversions on we alternatives based high-impact share allocation As opportunities. ROI market capital multiple allocation to remain Leslie alternative. of changes and capital relative highly committed continuously We repurchases, have alternatives value to accretive each said, conditions the range

turning to outlook. XXXX our Now

expect business While XXXX the we by urban that in markets XX with transient macro demand. environment, remain with will our by markets in be overall cautious portfolio MSAs, with line to citywides. we continuing be soft on the strength which impacted strong in perform anticipate We citywides weak offset will top

million the assume of XXXX by forces market both incremental our senior not that $XXX Additionally, bonds or any guidance influenced shares, refinance repurchase does as at will we the execution. be time

color cost additional I on would our to like assumptions. XXXX also provide

being which and guidance X.X%. EBITDA X.X%, continues to decline in ongoing X.X% economy We to than insurance hotel a basis is points impact midpoint. increase and of at full tax and benefits XXXX X.X%. employment The of growth our XX Also, hotel growth margins points X% combination pressure costs our guidance assumes higher and basis and wages of the between to XXXX XXXX the rate increases expect at and labor combined XXX of increase economic total costs implied incorporates premium approximately property our with between

relates assumes we of same guarantee the guidance the it that record to guarantee, we level during our as recognized XXXX XXXX. in As Wyndham

points expect $X.XX. hotel XX.X% midpoint approximately XXXX. X.X% between be to million X.X%. million diluted $XXX at growth EBITDA adjusted and representing from be between EBITDA For basis positive and between decrease margins $XXX EBITDA RevPAR XX%, the to range XXXX, we of to the to $XXX negative and per range XXX a million million. to and in of Consolidated be $XXX to Adjusted FFO between share $X.XX Hotel

XXXX assumes no or outlook acquisitions dispositions. also Our additional

the monitor to impact continuing are the we of coronavirus. Finally, potential

seasonality, any given in this assist adjusted between million $XX to that quarter, quantifying $XX modeling difficulty we time, the first and EBITDA in our impact the million please at million. not $XX include However, to guidance in corporate EBITDA between the million and our at $XX To impact time. does and this hotel be expect note be

Please results the Thank last supplemental prepared remarks. the information, concludes forma on evening, includes which portfolio website our XXX our posted X our to you. quarters. over past we and this for refer hotel pro And

for lines will now We Operator? the open Q&A.

Operator

Instructions]. [Operator

of today from Our first Capital coming KeyBanc question is Wurschmidt Austin Markets.

Austin Wurschmidt

of of a you contribution this year? Is First, to million million expect how second, ROI you're targeting initiatives just to so, the $XX much curious I'd $X if the a little spend $X million bit did calendar you from related clarification. be the to contribution year investments last this year? And from

Sean Mahoney

initiatives. the we the in get $X Austin. partial from we $X a to that XXXX the going year as our million benefit to calendar initiatives expect we're of million XXXX Sure, effect is of year as initiatives. from combination well what The to lapping That's place in impact ROI in put that XXXX

Austin Wurschmidt

That a of RevPAR forma of Or do is sense. your growth much is, of forecast? revenue look way little And to it. different makes a that maybe I a captured, guess, what already in number how same-store asked in growth like Got XXXX? expect you is sort bit pro --

Sean Mahoney

centric. Austin, a those initiatives initiatives that So not agreements like parking put really renegotiating and RevPAR of last we year are lot were place in our operational-type things that ROI

our it's well I lower de so that on cost. out was as reflected A our which can't And as impact wouldn't in green initiatives minimis of as capturing really ROI. us is, -- well, those costs lot the parse utility RevPAR you the initiatives it because are on

Austin Wurschmidt

powder to helpful. all the don't immediately, use that then frame what's time That's intend but capital? expect to reasonable the And recognizing Got should we dry redeploy a you you existing it.

Leslie Hale

that rate say $XXX mean, I CapEx with to-be-determined period this and conversions a million in some this Austin, We've think, normal consistent we the on run the would then And to couple about at time. to year a deploy next to that I million, last bake for $XXX ROIs, that's we've the incremental looking of over as and million expect seems But we X- we -- I a will our also number. year on talked is, see would per are $XX at X-year on annum $XXX have about well. million years. of

Austin Wurschmidt

the acquisitions That's then today? on our helpful. table And

Leslie Hale

Look, But recognize continues team recognize volatility attractive Austin, the our where we put has redeeming and capital we never ROIs. never say present recognize never, bonds cost acquisitions. current bonds when is know underwrite a well to but the the itself. that today. higher buying never for are the impact very the at of buybacks an because that that current bit you is We immediate opportunity as our the little But pencil down acquisition we back or given will an as bar

clear so say perspective, about never about we're acquisitions. but And prioritization -- a from we never

Operator

next from of Our coming Woronka Deutsche question Bank. is Chris

Chris Woronka

I to a and Residence was kind Inn we we big all CapEx for the at Embassy, If done I overall portfolio, know your portfolios, with a and years, of and but last new various lot several over -- those know given have stages of you prototypes of overview. I current which could Courtyard get maybe the look stand kind are on picture you brands needs the of that in capital such? all are where those biggest hoping X

Sean Mahoney

Chris. Thanks, Sure.

that those -- deferred allocating our think those specific to those was justify the centered assets. hotels capital frankly, a start there was I'll of we of lot disposition with I or activity with on capital markets, that lot that couldn't a around assets

handled program. a you portfolio, we within when chunk our referenced, next this lot our our initiatives a capital over Suites reconditioning that far is year, big and disposition what look brand last the of I'll at so year of But year great likely the over the and million Embassy thus what a $XXX that, you work there. CapEx And call, brand, is million we done of normal But rate the we're or sorry this of, so as consider work $XX reimagining million to which $XX would $XXX million supportive invest that of capital. into we Hilton's year super -- to run with

each really the subset million. brands that of just million $XXX those to all a so $XX is work And within of one

spent and for And a that's XXXX what rate roughly our we last -- that's normal year so portfolio. that's a and run

Chris Woronka

That's Okay. helpful.

repositionings portfolio, of not I X XXXX, Wyndham where I you that end by I -- should come the actually we of between not mean leaving that's a underwrite Or mean, X kind the you that do and going are model four said Where fall that up the plan on of drag? be for now to does separately, do you Just with a we think done? potential that? by performance Is X. mid-XXXX, think you it those? how when the but something that

Leslie Hale

of pieces termination Keep couple the over a that. to the that mind mean few payment from I next that years. there's moving we receive Wyndham did amortizing in we're

will portfolio function assets. we our yield for we a -- as And as support make so as the renovate that

some are converting to the about assets brands Additionally, talking of we actually possibly before they're renovated.

to we off looking termination the when so on offset burns it's the But that. conversion. and hard is for are that And for ways exact say we payment you to an us actual perspective give what that

Operator

Our next Capital Golladay coming from question of is Markets. Wes RBC

Wesley Golladay

portfolio to the the hotel how And period keys want you ROI year? look to talk on want this add payback about Can energy to your many at Just investments? projects. the you

Sean Mahoney

Wes. Sure,

period. the initiatives X.X-year But to payback from project. X.X to underwrite that we generally energy obviously anywhere varies speaking, For by

in projects adding Jose. a thermostats are us what keys But expect bit on That's the we've the we're keys in then to that. hotel to number to and identified identified. projects to and XX respect keys adding Buckhead So those XX keys continue XX are keys, energy quicker. consumption critical of we've water to we're a as that that's things try With incremental and adding San today. subset ROIs, longer Obviously, the is flow in-room Emeryville of little about like would that. Things you like uncover

Wesley Golladay

call you have FelCor out at not X%. Okay. on And balance bonds and refinancing Would the right of why balance delay a looking this draw? pay at sheet a And cash, the use the off? potentially that sheet, cash lot you then then to former be now did just about

Sean Mahoney

facility. Within term question. option Sure, facilities, it's a the delayed a great loan we have our within existing draw

our draw going And is ball have the a I existing world we our look But something is June one evaluate like, are don't table we transaction. certainly, But facility. is that's crystal what that into going when options bake of that on have delayed on certainly announced in we right on utilize we we're that feature But to the right options guidance what it's X. so of that ultimately to the as execution But the however short, the now table. all execute, those to for transaction. the

Operator

next is Miller from of Gregory Robinson coming Our SunTrust Humphrey. question

Gregory Miller

are a York of there to As that City closed? closing, the And that York actually your New New hotels have favor, given default the point to being there for are defaulting market on the owners are competitive hotels number on perhaps call in or trends a these where gains? work can few mortgages are City are in hotel share your trouble and/or that that environment, reportedly

Sean Mahoney

that have. you been reading same on that, Sure, reports Listen, the Greg. we've

hotels market, I the majority and look for our think at Midtown you We're and exit a submarkets, lot not lot times of a a system, of not concentrations. the When well as City seeing are assets we're Square, seeing so our in those benefit. York York New City New positioned, of respectively, right? we're

supply does view, next and year. our the following XXXX on to the we look as said on year continue challenging is horizon, weighing will a be York. a year within New starting out prepared When think longer remarks, you I that

York, the a which New going are has a that continues and be York at if in it be demand there been we strong, for XXXX that continues to to New that but challenge. tunnel optimistic cautiously light so And trend of end is is the

Gregory Miller

my on one end. question other Okay. And just

given holding if corps. could any ago? Wyndham few franchise out deals expectations the more curious advantage of some perhaps say, favorable, prospective or for development a terms a versus for you months what to today your there's contracts, signing new have be seen the becoming in on deal Similarly, As slowdown I'm management U.S. hotels, C

Leslie Hale

there's attractive hold brands are out. the I very think bullseye estate to. don't to This real all any is need that

in I we're in we're us. prepared by We're presented remarks, are to progress. my opportunities active negotiations. mentioned As that excited making great And the being

starting so in they're of we because in driving the are And we're the very to is. those heart see and relative what doesn't Monica negotiations, the Seven attractive it. real Pier, to steps seeing terms the development Santa of real matter Charleston, estate It's is estate. what from bullseye cycle

Operator

Anthony question Powell coming is next Our of Barclays. from

Anthony Powell

Yes.

if a this EBITDA yes, sale expectations? I for on sorry to wasn't remarks, the the ramping seemed on and prepared that how And versus Focusing the York, there? But line update year-over-year hotel Knick the potential show New and call I what's earlier. time on in in declines the missed your

Leslie Hale

second Knick the then amount of . our first, to tremendous and we initiatives execute program. year, comment built successful on we disposition that's Last were take our the I'll this Look, year. capacity Anthony, will a itself on on part us allowing Tom very

don't year. we to irreplaceable in more selling before. look any that our given This and includes York we with mentioned dispositions, at are execution, an we in long with Knick. the become iconic and And location, patient an as Knick, New asset our this the term great execution assets so strong going we've And on believe is

Thomas Bardenett

very we're with the pleased that say would I Anthony, performance.

York In share to continue having marketplace that the we months. segment, us in to first place it we but for X by fact, right continue the of is in which up The X.X% And back was business critical New comes little year. backend by where outperformance market Knick softer, the average that in the see the transient escalate. the X ramp last Square continue months -- to growing we're growing months our to rate X when about Times RevPAR grew a to in

Anthony Powell

maybe make to bonds you the in the this refi now? the proceeds lever buy on Does down and a back $XXX maybe which even your bit shares debt than And with later to it. more of a refi come year, for is share Felcor it a Got good. right is news has $XXX lot, million more planned your given and where million, trading the sense

Sean Mahoney

Anthony, a capacity question. of sitting today. We're great Yes. on amount tremendous

think, or so enviable hurt so we in sit we today. to incremental proceeds, very And are deploy help buying I us as position here stock. back mean on the capacity having the can of I a we're with today that we going from pleased, sitting which aren't initiatives enough

activity, to well for years, next capital X et as what So refinance repurchase Wyndham share the to function needs mentioned, be like kind how much is cetera. and I as where our the the outlook to is our as decision over X the conversions, Les is think between a on going X% of what of on things arbitrage is ROI CapEx, market initiatives,

Anthony Powell

of on million a And $XXX the magnitude the want that Got the authorization, do next you signal it. buyback million? or of is the Or that $XXX just what's commentary the year timing so? kind over buybacks to and

Leslie Hale

order would be magnitude of we've outlook. current function that said to relative volatility the where at price is Anthony, mean, I trading always a and Yes.

more are volatile, sorry, the us be last market would this we our be be the us to is expect continue -- to where see more a if rather. I be typical is remarks that So conditions year program. today, program just year, active you And at. my next in obviously, to similar expect things said levels prepared What I'm to to Obviously, size the of active. you'll size of

Sean Mahoney

essentially we share was $XXX program. program and million And of Feb, that repurchase We just had bolt-on that repurchase that, the just Anthony. expires share identical XXth to an a to renewed on with

And there amount. signaling by no so that is

Operator

Malkin next Capital Securities. question is of coming from Our One Neil

Neil Malkin

or to OTA want versus acquisition maybe at look the thing or versus you I booking doing our loyalty the guess, booking? an Wondering between, or it, however brand.com you costs if could website economics net talk different same just REVPAR, hotel guests about the through

Thomas Bardenett

Neil. This Yes. is Sure, Tom.

we get that when from well-heeled the very support we're it the So brands. comes to

big with If on of you portfolio right our our about have, XX% programs. our that for of we loyalty got the what's brand continue most portfolio to about now, we product, they going XX% grow and Marriotts, think brands Hilton,

a So relationship lot to single less attractive site. lot Obviously, OTA that percentage more the compared the the the you on in brand.com the excuse higher is sites. that's there's you site pay very related through digits. through of a and the the -- And fees to are coming like OTA me, occupancy brand.com to double -- cost look sites regards when

a with lot of going brand to are the on and opportunity sites. brands our making the we're focused So people spending and sure e-commerce

brand loyalty try again that make desk, from over of at the sure program, side. lot the it's what sign-ups to the fact, OTA over worth, and happen a you're for converting there's In a there's

So new it's Marriott profitable drive million and to with over And both of Hilton, they're acquisition location now much to XXX members. healthier, the XXX business. a members, million for

is significant to a and group been of When commission have brands brought to the to compared amount meeting from larger us the HelmsBriscoe, the In also for folks planner the to book the many so citywide obviously, have draw down you about group down So the sites, from acquisition locations. that and those events, group with side, that OTA. XX% regards the cost working you X%. of the think coming

do we to but yourself commissions, opportunity what we're would foremost, first So the the when to and give attach spend no trying and we loyalty understand really marketing brand to pipe do that. obviously dollars to like where have we that the programs importance and attract, look of us at we our

Neil Malkin

are trade to who kind loyalty you brand I a of member a pay system gets whatever net relative ADR you OTA another to Are more you fee the it's way lower Yes. or associated guess to understanding. into and -- benefit the an of that? happier related

Sean Mahoney

recently that well. Yes. on OTA. steal there's And we supportive Sean. a the for cost through less would increased look amount Neil, it We when brand.com. published of the this think brand.com. is are report The during brands us shifted what there factors is continue bookings being than to have revenue Listen, how part and -- been, of an secure are having and like they've but to other as influence they come the guest all I in a at The is of overall a things trends that be have equal. it, share, on XXXX, that you to commissions

of that commissions, it both we top bottom think, I line cetera. lower and business, predictable are continuing super so our through et benefits because supportive And also, but more

we And prefer book business. brand.com a standpoint, so preference from

Neil Malkin

seeing that Okay. other guess, in house, with not are large incremental or sort uncertainty, canceling? like to fee, of given if And the just you're forgiving circumstance, you terms Obviously, going are companies pushing then cancellation Great. group build so, but Coast, for fee of in me. And the because you a the just you big a increase West the then, thing are I events through coronavirus or or of attrition goodwill? the

Leslie Hale

Yes.

We keep are XX- cancellations. of seeing XX-day sort visibility Well, to mind, of window have some in here. only we

with a those oftentimes we're the have as when utilizing We sort of having conversation. that Coast. segue seen to rebooking they discussions the into and West individuals about cancellations And way cancellation provisions are on some

we our because terms not of guidance impact about terms them the mentioned, of Sean in talking are As rebooking. in it's in

real going of up our showing not a the it's what's think to is not lack in properties, people result example. occur necessarily seeing really and but I the broader seeing market, of the compression for events, larger happening in to what we're bigger issue as that's

Operator

Bellisario Our Michael next Baird. coming question is from of

Michael Bellisario

projects. back you XXXX year? Are this specifically line on guess, disruption Just assuming for guidance the a bottom your any Wyndham in on couple portfolio. top first, two guys of I questions the or

Leslie Hale

A any year. impact the is going to and portfolio the A disruption with lot be spent going to the Mike, is hard soft-cost driven, that's have so next doing Wyndham lot not a year. work of to this that No. cost we're going of be

Michael Bellisario

projects it. that least guys to basis, cost do a projects, you at go gross fair going highest brand, Got these these rebranding any are first then the forward net of money key And that be hotels on for the with? two two assume, of to

Leslie Hale

make until because: once And to it's to make we'll early the we is to PIP, I selection; we finalize No. sort too what of that. that that I we would is, wouldn't get negotiate the that you need assumption. one, -- say two, assumption

at no, basis. is the a But work selection assets -- that. X and these understanding and going the to say, the And of scope looking so I'm just sorry, the dictate brand, on relative also would brand I

Michael Bellisario

projecting? Got you those more you underwriting to long high numbers stabilized deals? it that on these time? you're your over to top the And Can level. takes then it. And think of get And just lastly, us line remind about you're thinking how and how bottom lift

Sean Mahoney

the to gains there's we of points relative rebranded With Mike. hotels think portfolio, from share respect Sure, to XX upon getting Wyndham. these entire

that years. so the to we over happen expect next And X

the we've have where which to the have guarantee. period, we of that underwritten it would by of the end with otherwise is grow guarantee expect been would way the been so And it we to the back XXXX, end would

we million is as and translates hotels our revenue Leslie of next the against XX yield million $XX-plus line that, also, existing at disruption just on the as million $XX termination margins years. act top $XX renovate our We the points of purely have But which like million the mentioned, of will renovation anywhere these over portfolio. payment, as share view from profit, support roughly X incremental that to $XX based incremental to to

Operator

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

William Crow

fees that in itself? might looking whatever actual amenity number remind or help With to how nonrooms the of in drive in the increase revenue resort or XXXX And is your industry-wide, you And lack both charging revenues, everybody that want much number, of thought many add program? your call hotels then to Can hotels far fees, or you fees are is you as fee as how margins. of what it? room support at growth might process you to us

Sean Mahoney

five our move in are Key that Bill, fee -- XXXX That's the incremental we fees Sure. no have facility into today. that We year-over-year. we resort and is there hotels guidance, charging resort into hotels York. New that charge assume within our Orlando west,

that fee expecting resort fees. new least, portfolio. the do XXXX, within the the any we underwriting, increases are within at the addition of hotels charge for the We of But not fees we are

William Crow

do more fees brand Sean, that your just within you across not have is why Or not a Is -- more you those why charging portfolio? competitive that issue? prohibitive markets? issue are a

Sean Mahoney

think of I kind of that own. it's function a the primarily hotels we

the fees. a portfolio, opportunity resort-driven is greatest is you where know, to not charge these We as which are

that's biggest the So impediment. probably

We type will but -- continue had type fees, portfolio, are to fees the where look a we've which inwards within when is our opportunity within look is portfolio opportunities not you portfolio add -- we these the and at portfolio, more try resort to our our set identify to common.

Operator

At to I'd this Hale for like the back closing over time, floor turn comments. to Ms.

Leslie Hale

I'd thank to like you us joining all for today.

with value-creation progress. completion very a pleased an discussed, successful repositioning, are make unique number the up we of you has which along capacity look providing and with we them, guys pursue to with As we've us guys. set opportunities you, our as of forward update Thank we the to

Operator

thank concludes Ladies for today's and you your participation. gentlemen, This event.

may at your log off you, or lines day. this You disconnect have a wonderful webcast Thank the and time.

RLJ Lodging Trust (RLJ) 26 Feb 202019 Q4 Earnings call transcript