RLJ - Earnings call transcript Q3 2020

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Operator

Welcome to the RLJ Lodging Trust Third Quarter 2020 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. I would now like to turn the call over to Nikhil Bhalla, RLJ's Vice President and Treasurer of Corporate Strategy and Investor Relations. Please go ahead.

Nikhil Bhalla

operator. you, Thank welcome earnings and Lodging XXXX Trust Good to quarter call. third morning, RLJ call, President our available Sean On Officer, Hale, financial will Financial Leslie today's our be the discuss President key Vice and company's for of Officer, Executive Management, will will Tom and highlights the Vice our for quarter; Bardenett, Q&A. Mahoney, results; President Chief Executive discuss Executive Chief Asset

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

Leslie D. Hale

morning, Good We to and healthy for continue joining loved and hope that Nikhil. Thanks, you thank sincerely your safe. and be ones everyone, you us.

the and our to associates also deeply our facing. is facets that remain industry the We grateful of continue us multiple who front are navigate hotel help on lines to the crisis

a efforts remain in operating a position disciplined aggressive we which on on to our to management significant executing quarter, rate. a hotels third focused for reduction recovery. to of costs, in continued company manner the burn and the an minimize our led We our number During liquidity asset further all fronts and eventual bolster reopened

continued continuing relative in of that us results, with albeit our of exceeded group outperformance has backdrop and demand demand, third by strength long-term achieve pockets from the quarter this an saw from portfolio. recovery. location in In various growth Our relative and small us light we uptick base. positioned our benefited encouraged very We pandemic, will we of allow are opportunities as throughout and our type in which to leisure execution a the hotel expectations, corporate of low our

these We positive continue see October. that through to are trends pleased

sessions see groups in continued healthcare, of of and quarter, nationwide, signs demand also which sequentially, from such in reflecting occupancy and the among of the We (XX:XX:XX) pop defense, initial demand such During to were the industry also weakened third to improve transient technology, small business highest leisure restrictions teams. encouraged this easing drove to industries pandemic. and others, sports weddings, training as as up insurance levels

third corporate sequential contributed the capture demand While to a demand significant remain and limited With during group in hotels respect exists occupancies to achieved today. increased highlighting the of ability open improvement XX.X% segments anemic, that portion these occupancy both from each month, throughout the quarter. our lift the the transient RLJ, saw our and quarter to

now XX% weekends, XX% achieved our to expanded to hotels for Thursdays, have include which occupancy nearly open For weekdays. compared

diversification, including and to concentration markets, select-service construct a and relative assets. of our the speaks resorts, overall Our of performance benefits portfolio drive-to

to proving is demand and it of our occupancies Florida XX%, our occupancy. that such California, who as XX% majority work comprises achieved prefer as larger anywhere, to the be to available XX% portfolio achieved occupancy resort and Our a hotels the living have especially appeals ability to have guests from and XX%, Many appeal, drive-to achieved desire is which South external portfolio's today. select-service advantageous our hotels spaces, dining, minimize and Charleston, respectively. of of markets notable our over of XX% Southern Because over

advantage but rooms, the XX% These among have significant amenities and hotels to always nearly represent by leisure achieved which travelers, competitive hotels, all-suite been remotely. families work about space popular allow to provide guests occupancy. our of Additionally, offering and our XX% a now

subsequent and Residence of preferred to DoubleTree, our their finally, achieved value, our such hotels aligned competition. historically group Embassy And brand third a index small ahead testament a have all-suite is as our tremendous As a by groups, Suites been was points limited RevPAR which combined that demand with Inn, us the XX we that quarter our hotels perfectly XXX improving now is Therefore, reopen hotels quarter. quarter have reopen the uptick from to XX well-positioned to XX and available portfolio our groups. today. to during We X small additional momentum are The another benefit in across an of open. hotels the allowed

full-service three in cluster suspended consist York as our hotels. New as and remain such of San hotels Francisco, that hotels markets seven as urban Our well

We of and demand the casual hotels reopening will potential. on these evaluate based

our at is on us a indicate, per enabling as As key weather allowing the us a orientation peers burn portfolio of to hotels open rate half occupancies the maintain to our our nearly pandemic, full-service basis.

As to we one this remains preserving continue number navigate priority. our crisis, liquidity

cost-containment our efficiencies areas, F&B our with minimal most they also cost-containment only aggressive may allow place to in staffing these rate, limited closed maintaining pre-pandemic sooner. burn to added continued have keeping levels, outlets only and which return services. our have remained us in Not profitability and essential including maintaining have initiatives, many efforts We incremental

than our at success lower Our reopening and revenues of third initiatives. burn of hotels, cost-control quarter expectations cash hotels combination open was due our higher-than-expected a more continued the XX% to

again by as quarter, our that normal rate to burn and quarter. fourth generated our our not did burn the we October. our to reducing entire experienced and cash respect we outlook. been we've throughout the With EBITDA of post-Labor our positive expectations see achieved to in growth and positive profit lower at improve the estimate quarter the burn demand improved exceeded third enabled success leisure the The continue hotels the during prior $X.X our occupancy rate through Our our us midpoint drop-off pleasantly levels through portfolio surprised Day monthly million that open once operating quarter

remainder has become transient uptick group markets, outlook uncertain. business an in of seeing for select year and in demand However, this small increasingly despite the the

rates months, visibility deeper distancing trends demand winter states and we COVID slower historically as may during what jurisdictions in the little action accelerating the measures, of With what the travel, other restrictive regarding social we a would October. hamper and take saw we which additional into have of been infection has period local get into

Now, but the next looking ahead, cycle. in throughout and we are the recovery, not to well-positioned to environment continue benefit the outperform lodging current to only navigate early also

concept recovery early of model lean and key the portfolio During our our the advantages. have will phase, operating

hotels it unfolds. to Our demand travel as continue as in from leisure business transient-oriented as will recovery benefit the well

will minimize our cash less hotels have and and to hotels, Our will allow our faster. full-service our select-service and compact and operationally, to which are operating us burn, model smaller breakeven lean profitability achieve footprint complex allow

throughout emerge lodging healthy minimize More sheet approximately recovery, a importantly, given with us to $X.X liquidity and balance burn lower enable of poised portfolio our and outperform the first a capital. our should is to rate, billion unattractive raise sustained to need which

our meaningfully base. large recycling our capital significant EBITDA to without Second, asset base, optionality which shrinking provides relative

not dispositions we we active asset, and do have growth. that will evaluate any capacity to a sell for selective incremental need Although remain create managers portfolio

And growth transformation our the next by segments our growth to thrive recovery portfolio, the embedded growth portfolio us will business pre-pandemic a as long-term our throughout return. our throughout will unlocking sustained the cycle finally, profile allow catalysts. of and be Third, improved transient which group amplified

Mills in are conversion the beginning and XXXX, to are in the exploring a plans already to of to Santa House structures Wyndham other and be external initiate and finalized respect that external growth, to Monica the Charleston have to and position active. advance position in takes growth. With growth timing expect deploy continuing we conversions. internal for will both and recovery These us capital We be we allow plans as hold, catalysts for to The we us investment

will Our approach private sober equity proven a deep the successfully external long the ability off-market will disciplined there That raising a to unlocking enable is on recovers said, uncertainty, we each to to ahead of as and trajectory in transaction and of history of attractive which of value current industry profitability. capital road depend firm, the through remain us that pre-COVID we growth. thoughtful efficacy relationships, a pursue to until The deals our industry source steer vaccine. as period

the be confident year entire enable long-term However, shareholder liquidity. a transformation strength our grateful to placed to of to a will I relentless more effectively last results now I and to emerge position call us of am year in financial more our turn value. portfolio whose detailed could for the over position our us value significant should the this Sean? the of on review which in the a pandemic of and in has Sean generate platform, execution and relative team our sincerely post not focus pandemic. I solid managing position through

Sean M. Mahoney

indications see quarter were October. transient early We sequential the fundamentals during Leslie. throughout Thanks, pleased in continued of returning to improvement group and a third business industry demand, which and

to the hotels hotels Turning all to having will within include results. still XXX our XX continue throughout the reported third despite quarter, numbers, suspended we

Our overall third was occupancy XX.X%. the during quarter

occupancy September. we XX% in XX.X% each and XX.X% month However, with in July, improvement sequential saw in August,

quarter in positive were generated during and were meaningfully $XX. quarter, driven our and August The positive with for of third RevPAR better during average results third open of hotels $XXX, occupancy by hotels $X.X especially of open that We our resulting pleased rate the daily EBITDA of XX.X% million EBITDA September.

July, the during August, XX.X%, XX.X% September, hotel respectively. have open of We XX.X% occupancy monthly quarter XX and hotels Our our and in improved currently at open. XXX sequentially

expectations see We demand Labor fourth Day. are our encouraged and quarter early exceeded after that to accelerated

portfolio from storms unexpected groups wildfires southeast demand In showing west. addition healthy leisure and business and October to of in to benefited our and demand also transient signs in early the relating recovery, the remaining the

was occupancy continue. September. our approximately if During October with the in positive would ADR October, in open expect fourth We to hotels $XXX, which our quarter trends and ADR XX% generate approximately of line of GOP open hotels' for generated

However, could during rising November demand COVID-XX December. infection trends and reverse recent rates

our to to good GOP how ability sustainable positive is quickly a of portfolio return recovery. representation perform can during a Our

forma third Turning was line, per were hotel adjusted to $X.XX. $XX.X pro and EBITDA negative million million, our negative share EBITDA and respectively, $XX.X and adjusted the bottom FFO quarter negative

on versus committed Leslie costs quarter we initiatives the the total at we relentless hotel third XX% instituted compliance our of operating focus As cost-containment operator to Underscoring remain costs, controlling approximately the pandemic. that year. monitoring last mentioned, declined with our aggressive outset

during resulting in reduction the variable on vigilant and year. quarter, was costs in team prior wages XX% a benefits controlling from Our

hotels costs stabilized, during to as continue operating were Additionally, minimal quarter. demand third operating able we the the with

the quarter million, third representing from approximately XXX% which quarter strong bottom the operating $XX XX%, costs or by only $XX increase line allowed approximately increased million revenues million, to or Specifically, our approximately portfolio $XX over second our flow. increased while

period have burn on expect, focused initiatives Moreover, realized minimize As to sustained environment. implications remains we cost-containment this margins positive team the current our you efficiencies would the cash recovery. for during cost a during in

during strong Turning also line and not the would credit. we rooms to the like minimizing on continued we a certain prioritize able and well continue addition which but quarter positive a capital with high-value XXXX approximately well-positioned that to our our was of monthly continue portfolio laser were parking ensuring as an including Emeryville to that protracted our portfolio I that capital as period generating new were we strong operating of on of of projects to cash Beach, lower liquidity, ensure third Buckhead, driven be such To With successfully outperformance until liquidity to take significantly $XXX encouraged undrawn end, the clarity disruption, our adequate we'll this conversion recovery fundamentals, re-emphasize that liquidity, position have projects, of advantage focused burn expected, complete We of was entered beyond. opportunities year our maintains as and flow cash to more by we drive than our million quarter. in initiatives and efforts only cash to initiatives. withstand in RLJ allocation projects in-flight in the that Mandalay to have ROI while is

particular revenue by hotels, than during cash of $XX lower our more better And quarter which that at our was primarily other including quarter, operating was our burn of lean Overall, location million hotel comprised with Our third opened the benefits. and to operating XX% portfolio's cash assumed, expected. we average our and hotels. full-service quarter beginning shortfalls by portfolios at at on was expectations labor individual hotels hotels operating hotels of effective the the stronger cost-containment will our differ than initiatives XX The flow substantially will than the continue be factors. open model, type, in driven monthly based were traditional success than

for we factors changed our our hotel have end April For reduce our costs, top other not estimates. outflows fixed change from estimates midpoint. burn to a $XX have million including These the over million in $X million debt primarily corporate reduction May, million and midpoint, and cash representing dividend, G&A top enabled us the at midpoint. cash assumptions a estimates The the range in our taxes of and service, Since burn costs, cash the the insurance to the reduced meaningfully monthly of between property end and by this approximately end high reflect of monthly quarter. and initial expected at $X burn initial million, December cumulative now to $X our of estimates estimates second again reduction to of to runway burn Inclusive range at reduction $X.X equates average million quarters, providing and the our is and cash of which total XX million months third $XX level $XX a

is if current Our end end burn range contracts and the range demand if current low lodging quarter fourth high the towards the expected levels. monthly levels from be lodging remains quarter demand to of fourth of cash at the

we below during interest, and of exclude slightly the breakeven payments of as or Although than the to third premiums, will quarterly be property operate higher note quarter taxes. senior quarter, burn near fourth result estimates of expenditures. cash These hotels our a timing RLJ-funded capital the insurance expect the

current debt us period balance hotel on XXXX. debt with liquidity billion maturities provides protracted sheet, unrestricted revolver, the the solid no RLJ's $X approximately ranks demand. billion run four cash, our corporate cash midpoint years estimate, until ended position way but to us Turning of significant of best at of we with million quarter of and monthly REITs lodging $X.X the $XXX of burn availability limited withstand the among a to our of

our sheet. We continue to on maintain flexibility balance significant

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

concludes based given we of returning the demand. levels As of the we we lack ahead continue industry, monitor appropriately to of well uncertainty the on will to changing visibility lodging our that look covenant ultimately to stay the nimble, of return ample sheet, if extension we'll continue to a all RLJ pre-COVID-XX liquidity, cadence meantime, pre-crisis model, impact environment. now uncertainty, confident remains high That on waiver the timing and fundamentals, flexible corporate positioned prepared portfolio we and levels. operating catalysts. Despite Therefore, needed. period a degree for remarks. covenants, to will on demand we and In the determine Thank lodging the transit is open an oriented and embedded the financial said, lean of potential react with will are balance Q&A. with facing our you. our lines Operator? And We'll this

Operator

you. Thank

from is Please Baird. question Bellisario first Our Michael with proceed.

Michael J. Bellisario

morning, Good everyone.

Leslie D. Hale

morning, Good Mike.

Michael J. Bellisario

consider what was or it gap like changed us sales you'd asset view? you quarter The ago, on sound you be is first rush view days may in can versus really you I said XX help think from question because your for didn't and guess assets question bridge in dispositions, does sell I sell the to your when no you that assets, what there necessarily to need last changed today

Leslie D. Hale

lifting. it assets changed. of and did immediately. lot sell Mike, don't We of assets actually heavy third our any a a a sold hasn't catalyst have year last We to

of sell today strong if assets have to revenue debt crisis enter that were selling growth entered place, And in those a with you We pay have assets would debt. situation, we liquidity. in – because this to And would we a fact, recycle opportunities. restrictions covenant did capital issue. And to we it have capital assets know, we we go in it to sell into the because only not order down of

to What And know, not growth in from we don't that for recycle indicating we're today. need I'm order see assets today. recovery so, I we as our to a was you that sell we, was perspective, look it may see you know, selling to sell opportunities. saying assets But, the unfolding

Michael J. Bellisario

Got it.

provide Previously, clarifying. near-term earliest Okay. And were bad Things on That's have XQ less you seemed that helpful. to the or more relatively of main than had Can or maybe then. about drivers a segments your outlook. delta Thank better markets since outlook some or little expected? for you and were that details bit progressed your on worse you maybe been talk more just then cautious.

Leslie D. Hale

to I it fact, after Labor We October. et expect not Look, see accelerate were as that saw that. would travel back dip leisure kids see and in say and went you yes, just accelerate we saw, we did we off right, we cetera, saw to school, it Day into did

be Sean As that look quarter. one segment demand. the And Mike. can as BT is continues which relatively segments saw his we've it's the starting as quarter acceleration of we're we a an remarks, strong. see providing really continuation that to in of as in was well And terms but up in mentioned group the dominant XX% off player here third uptick September. to saw We'll to mentioned of weekends we small see in October continue in It's well. you not and at, Leisure third

Tom one saw So that That's any it's we market particular see we add off what expected. didn't we in segment. had the quarter. It's the not from around drop any or that just different third some markets. I'll particular comments let

Thomas J. Bardenett

Yes.

compared weekend we And almost as weekend occupancy. September bridge did gap October to to were tune started weekends to we on XX% the see stated. even Mike, where grow, continued to to Leslie So, the where up

weekends In well. of we factor to of starting in continued same seeing is primarily And some to then in regards Amazon because Northern even California of dominant South pace. regards in uptick market. and Deerfield is Florida And Boeing, Southern the our of spoke hotels, as to hotels why in did smaller Tesla, which that September at is primarily Labs, have GE, and in in Grumman, some Baird, Labor some BT the our October Northrop hotels, Key resort was leisure are Day, related script about leisure is to business the So after well but Miami. in again. outperformed Raytheon, Government to we happening that's some at Beach and California still West, our we corporate on likes business that get the the road come Abbott continuing markets, in more levels,

felt good what September get and in October, we business, altogether some happened about helped extended it also pretty project midweek/weekend on our So, and with did of stay hotels. some we a us

So a little in happened with what around hopefully, color happening QX that helps currently October. of and what's in bit you the

Leslie D. Hale

Yes. Very helpful. Thank you.

Operator

Our next Wells Please from with Fargo. Kesten Dori is question proceed.

Dori Kesten

Thanks. And good morning.

those mentioned I structures acquisition could was that structures at various can eventual if investment just you're guys more bit wondering looking be. a for opportunities. around you what detail provide You

Leslie D. Hale

Dori, say for you a Sure. is what it's would know, that, sort from our, a of perspective, I second. look, back step

you You environment the liquidity know, be to our given continues as know, given priority, as duration. lack number in complexity we're well of one in particularly preserving the visibility, the unknown the

we a ramp window. a know, create to that multi-year over opportunities said, to you slow be You and it's location going It's expect going this know, to do time. be

might will to be balance be of active. we window So, allow that structures active positioning a in we're the looking not part otherwise to of our priorities at liquidity preserving while us ourselves that

sheet at And and balance and/or structures. It be separate something going could a account. off patient JV to we're looking like so, we're but a be disciplined

use venture. would access we As third equity. our leverage and be prior active, and be experience to opportunities create to and that you to life the capital to industry that experience know, able private party our knowledge We would we from in have

Dori Kesten

is the can rebranding the assumption give half of second few our over you're update you And Wyndham any And the potential an dividends the reinstating is Right. next total us on the improving old by next about year? that (XX:XX:XX)? on if years, timing that how also demand scope thinking

Leslie D. Hale

left markets at entered as I we shifted Sure, our view and refinance – rates. we Dori. interest in today more also XX with attractive it. financing obviously to The our as debt on well plan start with I'll that have and mean, generally fundamentals, so case that year debt is year as the market was base debt. today XXXX, to line are has X% X

And be think with be we patient that refinancing think more so about debt respect as where opportunities today I opportunistic and going to on there well. as view based stand our bad probably is we we're

there's In where limitations which then our because under are well ring-fenced our of addition, within our on to structure. about as turn deployed, capital talk would those to new you corporate know, assets line over impact credit waivers, Wyndham. sort I'll that get would And of Leslie

Leslie D. Hale

Dori. Yeah,

sort of mentioned the You scope.

and those of COVID As would earlier on we this that start Wyndham eight more two have we renovations that would shifted may a assets reminder, year. the assets if next we recall, two and situation. Obviously because you was year said start of

And assets so, will and and the two we have following advanced our start plans for year. then year next those assets following will two assets be

by So, a was just that and shifted time same. the continue It advance the would say I to though window used is and this sequencing plans. this the to negotiations What the year. we've remains

those from well assets an the position we shape real are Santa from think bull's-eye assets It be the that we will first recovery. to asset Charleston, so, supported at this pier. steps is Monica In And a you has two benefit estate asset looking independent of to that and are assets, independent are a that sits and that these and seven are Monica, asset. the know, market that historically Santa moving located well

global brand market. independent we do that well negotiating as a with brand. And to convert in asset are so, to in this lifestyle an throes think Charleston, then in And will they of we a the very

good out assets feel the of we the we progress we coming will these are about of coming positioning about feel assets. have And in very good where the so, this And of those out pandemic.

Dori Kesten

cost total of the there on any update the ink? Is

Sean M. Mahoney

Dori, – That Sean. is this

conviction going estimate to there. CapEx the gain can to is there. be what value is our have think excess say be I of When where not around hotels continues sort to before provided an of But from the they where were for recovery. the the in ability benefit you and about total creation those of We share

You our specific the those we But all But on obviously underwriting. value assets going that ability create not of be. confidence around have part is a number what know, the high. given for CapEx our around to that to is needs are

Leslie D. Hale

the And in think I the you add a environment, know, pandemic. job. business current would I taken at a too Dori, And unconventional this good that, in look we've Wyndham team has done

University different we For regards occupancy in where the that's that's in that nights. instance sign of eight different Pittsburgh thing know, located little at for be how next secured an Boston, months. you some Same room a just have demand. business And hotel XXX% in bit we've the where environment to you to, creative

current So good environment a environment the with we're can and at us this team in help the through time. of landing doing the business that job making is current Wyndham that pieces sure

Dori Kesten

Thanks. Okay.

Operator

from is KeyBanc Wurschmidt with Please question next Our Markets. proceed. Austin Capital

Austin Wurschmidt

everybody. Yeah. Thanks

Wyndham's to stick the business back I'm for into those renovations the is a the Wyndham cycle. in tailwinds going minute, potential Just leading next the given measurements the on curious what

As at we invested I back maybe measuring to think the I What's prior you we of the that think were pandemic, be as the today kind hotels XX% discussed stick for looking to getting getting index should capital think about par. of that those rebrands? running

Leslie D. Hale

That's Sure. question, great a Austin.

been that creation incremental two bottom and gaining assets would the share. flow how drivers there's think does can it much have market there. from of value the which We investment. Our to translate One is relative what similar gain to just line is to pre-COVID, is cash what incremental the share the measurement those stick

different of the there's cap we a result affiliation. appreciation is with that compression from affiliation NAV other rate from that as The having believe brands

pre-COVID XX%, reminder XXX%. portfolio our a the actually and XX%, was on was As levels, share about the not

lower that then portfolio an of roughly And our so of to just opportunity can you profitability the on and of top sort $XX apply million that. margin But get $XX want north represented portfolio if upside whatever to to apply of line you million average. average, you numbers, incremental on pre-COVID

the than these and assets portfolio little around but stronger only within average average, conviction we works but is the assumes our that that stronger portfolio, to be back – we a should our think from and I and potential believe that upside compelling. we than we'll underwriting math get still is our

Leslie D. Hale

I would also add, Austin.

to And the to have deploy the right? own capital some our returns, visibility look environment, in you have risk greatest we of deploying is visibility of portfolio. this into in in return we terms As our know, capital

so, conviction a high we these perform. will think assets And have ultimately how we in

Austin Wurschmidt

the No, kind highlighted, you the XX Wyndham's, in next other have was earlier you curious of to hotels I ex or beyond whether franchise if into the not know, internal Wyndham's current convert opportunities RLJ which timing that question, expirations. my was that's think, state of and appetite the to internal, Leslie investments. Lodging the alluded really previously, total, helpful D. goes the so know, near-term And you'd lodging was environment the I it or XX hotels supersede XX:XX:XX Trust Yeah. you or - of these those these change expirations Hale those

also our and just size pandemic of of and because hotels, investment you how terms in has particularly, Suites their another for you was the of and around, more part positive base space. the know, in Embassy appealing hotels the think know, I levels given elements are us I think those lobby that of those us of the various conviction and

of we're would experiencing. Austin in Wurschmidt I Markets, had articulated result earlier, a conviction greater ROI just Inc. And we - what have so, many then that as for say of we today Capital And projects me. KeyBanc the that last one

far of partner? the seeking give Lodging maybe it's or out us you're that you sort along know, sense venture, of in a negotiating are the exploring. joint scale D. venture? Leslie the Hale early. can On - RLJ How you of you opportunities really And Trust Austin, a

to hesitant what buying of you We the to have flow, deal having but would I the a to bring lot around size access of is I'm know, a table say of articulate know, equity scale, is sort assets. that, and from industry and background. record you so private a track selling standpoint And the knowledge, and we the experience

And being we articulate good ability I like our just that we But attract market to balance the the feel own to extent right to to nimble have you that about so, evolve, know, can you also well. to the that, able we as to conditions pivot capital. sheet pretty and would be

always the KeyBanc really once would in to have have two in have those cash change, open efforts, sheet things that high New and active open, know, not And my the this at because is if where in we in But than cash renovation on on otherwise – we is is pivot sheet. Austin to Hale I you balance opportunity – cost can be the so, active those? point large active. we in it you're is San our hotels look an Lodging the - we million Wurschmidt you is a balance might question in the on have, D. math the one time San we not - as to we be renovation It higher correct, structures. generally, opening two But be quarter. our Francisco other Woronka to ask York I Markets, point about Bank. do was we significantly think Inc. Hey, wanted I running indifference Trust Yeah. there's And if good hotels? Leslie said, $XX are sounds under Bank Thanks burn that about, like, RLJ what's that. that mean, maybe, closed. time. Operator Our those Chris where the boxes, complete, the open Inc. Understood. on the everyone. What's seven, closed remain Francisco, those with you still - Deutsche the Securities, hotels, Woronka for next from Deutsche proceed. Chris Please is morning, Capital

And burn simply to our here rate. so objective reduce is remember, our

that hotels to we burn be to have in open those down rate. so, able that And a way brings

And structure. occupancy cost so, take York where our New that if Xx you have get example, to rate high structure, can't these almost at which portfolio, a levels, is you overcome enough we cost for low

matter opening higher really justify time. the rate occupancy a assets so, And that's – a ability is we need to order higher in garner to a or those and of that see to

kind XX% of, hotels feels, of at look are you closed. the If it still York, New

for market So, asset this an is – issue, us. issue it's not a

where hotels clustered on The push a and low it to to strategic single occupancy are are assets spread it's Based across multiple that try fewer than assets. have we all we that – on to in, are we to close other in Houston multiple demand assets assets are more pad. Chicago,

And so, play assets. Chris that's and more at of a profitability cluster it strategic of Deutsche in specific Woronka Securities, Inc. play a Bank - is, than be

diversification on terms offense would helpful. then about we conviction you seeing whenever to has it. a you from to we're believe on may of is bit say what That again on changed We is, someday in of occur, lifting all at we're today we today, in deemphasize would that heavy a going going little in Okay. urban year. assets see to more you that certain in think we're thinking And ability prolonged your a if What's all get of of on back acquisitions, We're lot when to portfolio. our looking markets go as or temporary high-margin deeper to try a activity our through period you - is invest did Trust Look, that acquisitions your I the get Hale in even suburbs Lodging that? Leslie would seeing And profitability. have is of we disposing of people greater in we D. resorts? doing breakeven. business view assets. that and what We believe in did our that the pandemic a out that rooms-oriented, benefits segmentation in RLJ on the last And branded,

large, and the our conviction have by diversification in. invest of so, assets and that in And types we we greater

that And I specific the fit Inc. is Securities, Woronka markets it. Chris would opposed Bank that as - Deutsche to way we're profile articulate assets for so, looking

on Okay. Thanks. Operator Our One Morning. Leslie Securities, Securities, – Very helpful. Mahoney RLJ Malkin from D. guess, RLJ for One - One next Inc. Good Securities. question Malkin everyone. Sean Trust Good I Capital morning, Neil Inc. Hi. is Lodging M. - Capital Hale proceed. Neil Capital Malkin Tom. A question morning. Neil - Lodging - Trust Good Please with

if Hale have of we Just that segments fact government, impacts that has rethink in believe more given more terms three that's Lodging diversify COVID layering event in RLJ and recover. rather which Trust Yeah. lower either real will D. and event, if a just way order recovery, to base etcetera, say I lodging a stream, change - once-in-a-generation in could recover, that wondering revenue another quickly. Leslie have need BT can the that's in that revenues lifetime group, that would you cost (XX:XX:XX) but manage we all demand maybe to made and you with staying contract, power some or kind of type obviously, the that and, maybe of you

But this recovery of again, through about said looking the so, I before, terms we how manage. revenue isn't ability there think portfolio. our And today, in to environment as we're the in

reduce You're a burn our strategy. to using bed in rate. simply here is The heads objective

in we've demand generally rated segment. opened all leisure, dominant is demand up so which is The lower a today And channels.

we're believe our today see so, that what decisions we is about not temporary. of making portfolio construct to how it manage on And the because do based we

will the too, Neil, are of full-service, construct on nature. of our And sober our is XXX footprint sustained a a are the compact that we Lodging be J. this would thing other of term. Thomas RLJ XXX the we Trust The Many I about the - you long service our environment is about for We add, hotels initially. are in and select don't that shape the But between fact recovery smaller Bardenett and keys. to ramp portfolio, the our believe slow side on industry if somewhere XXX think XXX.

that too when be that it's contract of at to have able of you have bit because a base inventory come important group the to back. little don't So to want build inventory be to business, compression and in to much there able corporate piece

business type to the rate that So obviously we demand. a about of you it week want environment seven-day what we because thoughtful gives and in take right be

For instance, contract. on was in of It little our portfolio up for mix the from up a QX. X% around we third quarter, total ended

looking to of contract example. an contract for give not So just but X, rooms big we're you in XX block looking for a rooms, we're

would that The other that mix I retail, we're is, two that thing growing those referred say to the discount and segments is Leslie when right now. seeing and are we are what about between the think

standpoint, very time, five that business know parity because because the windows having pricing booking; a in Expedia integrity. and thoughtful we're want of and We within is Booking.com to leader we're we sure same price make the we're a the but one from set. the So at rate have

- So we the the Neil, charge to Mahoney did we add out is with of then year. of last lifting pandemic on heavy a (XX:XX:XX). Sean the that lot that, the versus last thing Trust And portfolio RLJ Lodging to lead M.

locations So we markets. be to our portfolio are locations today are recovery going that in believe strong

rate our to And And mentioned, into layering that we Tom recovery. as hotel to so, a with are hotel manage contract during business, by our yield drive in confident locations and coming the that limit that be have very well-positioned our would ability types, recovery. able we to

And as have so Securities, that Malkin also - Inc. us Capital confidence helps well. Neil One

commentary. Okay. Thanks. all I appreciate the

F&B the that if hotels there business full-service push I demand And – then space shrinking as there The and to footprint who space with use Trust Lot the maybe you the I you is like from aspects I with have first lower as or space. at more an of have away, with that be that portfolio. work it of going the in that office to other assume person seems part, would of opposed space Lodging working with will of component. the is office create I traveler is unpack from rationalized, other changed compact either standard, this wanted space or be house. the going potential your hotel, and one Hyatt space full with wonder Bardenett some that forward, shadow is thing is to that that people in the of the least F&B the you could work I work what the alternative wonder to with maybe or had underutilized just list home like the Marriott space. Thomas think things just the hotel Neil. bigger that the to to margin is brands aspects potential people of types non-room as J. related how having Hyatt significantly. kind and for and meeting for and RLJ top model changes those works with the start brand And think thing, - there, looks

really in Leslie the about a think so from after was were premise be upon utilize about you what breakfast evolutions Suites people reception Sean public having the depending you had area. to as as well one space the referring that exactly why the what we Embassy private, or was If doing talking we footprint, also to, were about, that regards could that but of space things

where the people where room demand We differently. of going benefit. To catering. their So ability when guestrooms utilizing in value the the are it guest receptions are also because point to talked the and people suite gave specifically family that's your think to our utilizing huge group you back, where of comes be us F&B, space about the have more. space hotels in about a have and reading we our for that unique using seen in two that's components we And know about

we've with all in with regards brands dealing So been how also that's quite into few of relationships working breakfast the providing on how savings And continue to the think the where the we the of of regards we're positive a think we're right the we're that a out we're about adjustments. deliverables to we plus. In pretty some going, that's and future. and those the seen gate can where

(XX:XX:XX) didn't was have didn't and significantly we percentage-wise For because buffets have instance, down food we services room service. our comp

seen then great think opportunity able think the future, food deliverables and reinvent So, that brands because already thought cost versus into as relationships provide thing forward. And we the a going the is there's doing regards structure about with cost do the the variable in I of we've IT, and hinted fixed. the to the and sales, model. we and talking reinvent brands And to to ourselves still is is future last think for to consumer be management, be would operations, process hours of that We the the try in fact area regards they're to to going more of looking opportunity the Hyatt, we structure about of family going beverage works sales to and specifically with and Hilton, brighter as one a of the marketing. to that you Marriott, how are relationship to that have to better what add them revenue

forward, Trust Yeah, those addition reinvent most important some of margin So point of M. Neil. in the spot restaurants - I And get we're ourselves industry that margin on we're pandemic Mahoney – able the environment the and F&B to kind Lodging lower having going marketing being about the think in on today. Sean time. as was for RLJ are excited that move is be would side about think we to areas the to in post-pandemic probably trend quite less you your and a out than on being that when you But I remind this currently the is pre-pandemic.

but was that Suites, lot to allow elsewhere cross-functional. the a portfolio mentioned our renovations, so of space And to Tom Embassy within be

that made to cross-sell I that And as so but it restaurant, also mean allow space meeting that when the most that convert space sense. flexible to it and have made sense, a use us

the gives so hotels a footprint within the space flexible worlds. in I us think our best of And both having

forward. Neil your to is with And Speaker Good Inc. Thank taking increasing is our One probably, This point, is our Please on we've - in hotels Securities, Markets. Tyler Jonathan thought so and for you. Operator Our for next Malkin Thanks Janney that's Batory going from morning. questions. something question an to emphasis that be about Capital going Tyler. before Capital proceed. Unknown

and but Bardenett compares on to sure. J. for color First additional that continued some hotels, - they've into you for provide me, the this, how total Trust Yeah, you on portfolio? Thomas extended-stay touched how can Lodging just October your trends, RLJ one

regards noticed Hyatt think we've our when ability with and typically they're Suites Homewood people full our to longer-term us. stay a we staying five-plus basis, hotels, when kitchen, people that when we've that is extended-stay What really about in that we So, Inns, seen have our category because which occupancy, to is room extended-stay our in cook, refrigerator utilizing full opportunity to enjoyed House Residence the they're nights the that have is in what at and are on space. track

in lack restaurants in current about in more issues availability eating think the we're of the room environment people and capacity of the locations. just of the environment today So, because that have where

in become book. presence to regards to that's significant people are thinking a where So, where about

when that The still amount all say for FEMA, would in a whether to staying of pricing project or experienced that are government usually And hotels – we've you restoration (XX:XX:XX) we've in help extended-stay significant wildfires that other in we've that training that lot The that coming amount I a as stay Red business people of a is get is nights. XX to an with noticed weeks. the seen environment. thing companies been business. three is what earlier. talked the increase there then the the a current Cross, (XX:XX:XX) people we unfortunately, XX of has business Typically, have business we've it's pharma week come business, And about to to storms, the in and

time. And most fact always and there clean you footprint occupancies model the the we stay. So, period extended-stay, feel about those is because the good as somebody of highest with our of that they're length the housekeeping for don't run of they that in the when is profitable often

were our seeing additional Speaker Okay. fourth days. be could Hale very RLJ to you if about that did RLJ quarter. Unknown D. We're and in hotels. Leslie D. window to to to continues So, our and suites Lodging color helpful. booking into And hopefully, look, think – booking sort October. just helps there. Leslie carry our XX% guys to question into wondering you numbers window. It the three three-day are I occupancy booking to Hale to of carry what that zero window up had large, of expect you XX% Lodging I seeing the October carry our we're of a trend demand booked we the was window. that stay Good. by answer it will some then Jonathan, in kind That's when the turning you what short, Trust And, and third zero from doing the in extended XX% regards quarter. provide Trust Yeah. perspective, - on - And, mean,

terms RLJ for timeframe a know. to ask That's and And days. delayed what into move in gives so, as and the you. cycle that that's we look Good demand November also Thanksgiving in volumes of is Lodging until our perspective from you sorry October. part gives Christmas, zero sort Please Miller is negotiations before about morning. of normally me. slower, sort do I the rate of next three J. be part booking holidays, And But see and December, Trust Yes J. comes corporate as all of rate conclude at detail. the our softer negotiations. that Speaker Okay. - the yes. all I'm really Thank December that expect window proceed. Gregory to window Bardenett visibility the Gregory how curious relatedly, the season of normally I of the Securities. they're have around I'm question about XX% for Securities Thank is we we progressing you. Operator Our Great. rates. window. Unknown with want Miller - to lack this us XXXX Truist – we as we is expect the appreciate a – in of Truist may year? Thomas that so to But the and November we won't booking us can than

regards travel done closed be until about spoken amount up, roll in of trying good have their question we to the regards to in significant to mind, or not brands the first to offices over offices gradually going just earlier opening But job the to as still XXXX. So, rates a keep is negotiation, up. in XXXX a own being have open there's

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say rates do I is you that two with because second The negotiated of thing would what you have is choices.

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conversation them our program are that again. Gregory you, that's on when traveling a be trend use. if locations. Leslie an in unrelatedly, Securities That's because color. of Trust It's and hotels markets question. a for we premium to hotels years - residential interesting good and transient brands, get is come of we're upper D. curious And in locations, with last stated Truist get if we've to going to Miller who look shown my then second municipalities see where in to haven't point premium amongst of into if XXXX. the going and start benefit many the Hale from any, I'm the in really corporate a we've regards your and we that we service. for Lodging the that book certain appreciate this possible think earlier, and in us that. over dealing some cities being have hotels to to question got ask residential J. of loyalty out pre-pandemic business to fantastic preferred affordable are this will But selectively conversions something select XXXX, So to some I RLJ Greg, the we housing. to as in much, sold you're I these hard think be I heard monitor US I the in or rising at. And program There you tier a - as to it's on companies not preferred want

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the a markets to trend of terms had asset in the ability it's - that in definitely not we've manage next key Securities Thanks, Anthony question So from I is a on Inc. Hi. play environment. Gregory is this advantage through Lodging of lack at this not We independent. taken pandemic lot necessarily Santa Truist very entry. Good a interest still of money the with - RLJ key disposition of conversion Powell Santa - Capital, J. in money. Did the Barclays not key proceed. Anthony everyone. That's high Hale side on any of market to to business you Monica Miller of Trust No, guess, and Powell going Question in F. barriers do few how an brand that lack has great. Operator Our the role it's asset. and the sought-after money morning. the Please Monica, activity the your there on of conversion forward? Leslie Barclays. look D. one but one

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of of than the more size and an also well because our the can brand. footprint the hotel the in I think the decision creative also we as space independent general rather be influenced hotel

- you properties, key tend your think this So, a And RLJ it more see Capital, (XX:XX:XX) has Inc. Got properties branded still on Thanks. question, that being - our time I thesis. is do to to Barclays historically related of activity over offensive Powell up core was F. as it. component premium investment Hale branded RLJ not Lodging D. money. Anthony focused you Trust Look, similar ramp year? Leslie independent

still of the think us into will brands. pandemic, will You the see brands safety. that important. But lifestyle are expand brands symbolize we And believe because we that

you. D. since families conclude does materialize. independent Have for We Hale remain feel they that that your for F. would - turn asset. Anthony way our us And you. Operator We today's Santa last so, we Barclays safe. a RLJ reached Inc. Great. we particular that conference. go well-positioned everybody, to good closing I believe the of the of that hope are have right just our important that, like weekend, that end this. Lodging for everybody. Operator Thank made back take more joining We for again progress call. you call, to the question-and-answer Trust Thank will think Hale Monica, brands over you, of We session. is opportunities advantage and in - Ms. coming Powell out of to This and lot to we a for be as Thank our remarks. Leslie have conference growth Capital,

lines disconnect thank may for at participation. your You and you time this your

Leslie D. Hale

Yeah.

another appealing also hotels, those those know, and of of more in was how us part are and size levels of conviction base around, that space. Suites has particularly, positive in just our lobby think terms I the because of their pandemic and I know, us elements investment given the for you Embassy and you the hotels of various think the

experiencing. a had earlier, of the conviction would we I And many today projects that that we're result so, articulated what in greater as ROI we have say of

Austin Wurschmidt

And for just one me. then last

give partner? How far the of know, you a a sense scale opportunities you you're joint are the the exploring. seeking out that or of On of negotiating maybe you in venture? And venture, sort us can along

Leslie D. Hale

Austin, early. it's really

And so and lot would the that, know, a background. track around bring and but selling a you and we deal of flow, We say you know, is having I'm access industry table record hesitant scale, sort buying to equity I assets. articulate knowledge, to what the from private standpoint of have the to the a experience of size is

we our so, and as that, to pivot And also market be know, to we But have articulate to to good to would able right balance sheet extent attract pretty feel we the the about to you ability I being you can capital. evolve, like just nimble the own that conditions that well.

at can be really to time have not And change, so, you things be we balance active a we if But sheet know, we otherwise look the pivot be where in this we as in active. balance an our because might our opportunity on to to active sheet. cash always point

Austin Wurschmidt

the Thanks time. Understood. for

Operator

Bank. proceed. Deutsche Please is Our question with from next Woronka Chris

Chris Woronka

to the maybe, about, closed I you in do What's million hotels? higher everyone. significantly what's morning, – remain it point opening other there's my the where hotels, math is good if indifference Hey, quarter. burn was And is on those those? cash seven, the said, the those the than on you – $XX like, running sounds correct, ask on about wanted It still closed. think I you're

Leslie D. Hale

in complete, mean, have, is those structures. York open, cost the have Francisco, two boxes, in are renovation generally, have San would one that we efforts, that. not open open high we But is under New that Francisco renovation the I San we large two hotels Yeah. in the is once and that

objective is our here reduce simply to remember, our so And rate. burn

burn open that be have to we a to brings way down so, And in hotels those able rate. that

a is take Xx to York have you which occupancy high almost these rate overcome example, low so, for And our where New structure, if get enough levels, you structure. portfolio, at cost cost can't that we

so, need we a is the and higher assets matter higher rate see justify a a time. ability order to or that that's – And to occupancy those really in of opening to garner

still feels, kind hotels closed. of it XX% are look you New of, the at If York,

us. this market is – issue, it's a an So, for not asset issue

assets strategic to Houston that we other it it's pad. close that demand all we in are than on are assets. have in, to hotels push are single to on we – more are assets Based multiple The spread across a clustered where to and assets occupancy multiple Chicago, try low fewer

in profitability a at is, of assets. than cluster be of more that's and so, it strategic play specific a And play

Chris Woronka

going What's doing as whenever Okay. going business period the resorts? urban get would may to bit you deemphasize we're is thinking of on or about again terms see your that? in your acquisitions, segmentation that out to even little people back go someday on if all That then think try on would you you a prolonged deeper of suburbs acquisitions changed to occur, when on in And helpful. has a you offense activity view more at

Leslie D. Hale

And did we conviction branded, benefits greater that in that heavy a Look, our it. what diversification lot We're high-margin a through our assets. that a have temporary of year. the our in the in seeing what we is say we seeing to from believe did of We on pandemic today, certain looking breakeven. And of assets is, all that lifting in and We I in we're last that we profitability. today of ability portfolio. is we're would rooms-oriented, to in disposing believe markets get invest

of diversification and invest And so, conviction the and types in in. our that by large, we have we greater assets

And assets fit looking is profile markets that for that to it. would we're so, way as I articulate specific the opposed

Chris Woronka

Okay. Thanks. Very helpful.

Operator

question Malkin Securities. with One from Please Capital Neil proceed. next is Our

Neil Malkin

everyone. morning, Good

Sean M. Mahoney

Morning. Good

Leslie D. Hale

morning. Good

Neil Malkin

– on guess, I question A Tom. Hi. for

lifetime in maybe cost that's staying made just fact you you change either obviously, can more with manage (XX:XX:XX) way of that layering etcetera, that maybe power lower and that have base if of Just terms given another that's but contract, the stream, in or in once-in-a-generation COVID of has event, which group, a rethink event impacts more and, revenues the diversify kind and wondering government, rather some could BT revenue if quickly. we type

Leslie D. Hale

and that recover. believe real to to need lodging that order say recovery, recover, would segments that three I a you have all demand will we Yeah. in

I again, recovery revenue we so, portfolio. think as the today, in looking of the how And But environment isn't to ability this there said before, our through about manage. terms we're in

our burn reduce here a objective using to rate. strategy. is bed in simply The You're heads

up is demand today generally which opened in we've The so dominant leisure, rated And a is demand all segment. lower channels.

see believe not so, to based do what is we decisions about because that we making manage of construct we're portfolio it our the temporary. today how And on

industry recovery initially. a ramp we is shape term. about the sober be But don't for slow sustained environment that that are We the will believe this a the our long of fact

Thomas J. Bardenett

thing Many think XXX the and to on And smaller on other if the and would of add, XXX. full-service, between select are Neil, keys. in hotels you our too, XXX The side we footprint is our XXX portfolio, I compact about service our construct are nature. the somewhere of

of compression because you corporate to So inventory have come and group want build at the don't to to it's be of able little important when business, back. that to a contract too bit have there that in able be inventory much piece to base

business that rate in it gives you So a thoughtful demand. be because of type obviously to we what take and we week right want about the seven-day environment

a For ended X% quarter, instance, in of little for mix up was our portfolio It the up third from contract. total we around on QX.

XX for you to we're rooms, block big example. looking So contract just give an in for not contract rooms a X, we're but looking of

we what are and that about is now. that those thing say the right we're that think growing would when two other I and segments the Leslie between to referred The are retail, is, seeing mix discount

that and because want We sure but a same Expedia we're have within the parity one windows the pricing the having thoughtful from we is and of integrity. know So we're rate price time, business five a Booking.com booking; set. make at leader in standpoint, the because we're very to

So the we pandemic out (XX:XX:XX). charge of the lead versus

Sean M. Mahoney

of And we year. lot is thing did last on portfolio to the then the add lifting heavy last with a that, Neil, that to

portfolio in markets. believe going recovery today we are are to So locations our that locations strong be

drive so, And and recovery. to the that with able Tom And types, would in by limit rate very our to well-positioned our that are ability hotel confident be business, hotel layering to coming we locations yield a have as we mentioned, manage our that recovery. during contract into

so us that And confidence also helps well. have as

Neil Malkin

commentary. I Thanks. Okay. the all appreciate

and kind full of significantly. The rationalized, just would And space. one is as going standard, things away, that brand work or Hyatt lower the F&B works your the model and I push with space that of of the to related at top wonder list business I part, then the is footprint the that I is aspects of wonder work for from demand full-service like Marriott more with seems is as as potential with meeting how changes alternative the like the other or there had to is thing I the the that shadow other and you opposed margin with aspects the have Hyatt having maybe and space from think And you portfolio. people types house. in have forward, in underutilized compact looks be potential non-room office hotel, with what be maybe that use will there bigger the changed some this to space. working shrinking office an those that create brands that of assume the of or either with – who think F&B going space least it to traveler hotel space if could work person home hotels you people for

Thomas J. Bardenett

start is and the first just Lot the wanted there, unpack I component. that to to space Neil. with thing,

private, depending upon utilize reception were premise what about, people evolutions that was referring were doing to about one from the the but things or the breakfast that If having you Leslie space why the had a we Sean what exactly space about so footprint, you talking Embassy could to, public be as well we also regards Suites think of after really as was that area. in

have unique comes also our it for that's gave about hotels reading more. where group a be in when room your benefit. to that's are guest specifically space value we of we using point and F&B, And the in components us catering. our that their So two the talked know suite utilizing huge think To guestrooms about space are We the of ability where have seen utilizing where demand about family receptions and back, to the going because you people the in people differently.

relationships seen the working breakfast providing dealing deliverables we're plus. brands on with also the In regards and to in been and all that's think we how with the how the we're So a to the regards can into out few of a where pretty about continue future. we're of those some right the going, quite we positive savings And where the gate that's adjustments. of that think we've we're

service. buffets we For have services didn't we and because food instance, was percentage-wise our have didn't comp down (XX:XX:XX) significantly room

in structure then food and add reinvent try is ourselves And better a fact as the consumer relationship to great provide about a last they're for have and would looking of opportunity So, opportunity we I what going forward. going cost regards thought that process We And hinted is of thing think doing and you to be the is the operations, there's do and able family to and still cost sales, hours to structure the the that be deliverables and marketing. the reinvent one regards model. that with the to beverage works that the seen brands brands we future, about think relationships management, into of to of how we've to revenue the Hilton, to to Marriott, we already to as specifically Hyatt, the in think more the future with brighter fixed. IT, going area sales are talking them versus because variable of

ourselves of most and in those the that to forward, in kind are out about as side get margin be So move the environment addition to on pandemic today. marketing areas currently excited reinvent we're able to we the of we're that the

Sean M. Mahoney

was restaurants probably you being important the is this I think on that Yeah, pre-pandemic. having trend industry going than about margin lower for I in quite F&B And the think when Neil. on would remind some post-pandemic and spot a you point being time. But your is less –

Embassy lot a allow so cross-functional. portfolio our that be Tom within to of And but the was renovations, Suites, mentioned space to elsewhere

And made a so but also to that use sense, when us convert it have that restaurant, allow to mean space as meeting made I it sense. space most flexible that that the and cross-sell

having so hotels both the And best a flexible footprint the worlds. of within I think our space in us gives

is hotels forward. about an before emphasis in And so our and to we've that's that increasing something to your thought probably, point, be going going

Neil Malkin

Thank you.

Operator

Batory with next Our Tyler Janney question from proceed. Markets. is Please Capital

Unknown Speaker

Good for questions. Tyler. Thanks on Jonathan for morning. This taking our is

can compares just color touched and trends, additional how into provide First one for on hotels, this, you for me, October portfolio? but they've you to extended-stay continued that how the your total on some

Thomas J. Bardenett

sure. Yeah,

is is we when occupancy, House to our refrigerator enjoyed our utilizing that typically on that people extended-stay have track So, have Residence our category Inns, we've nights and full at Hyatt about what with is the when which ability stay are five-plus hotels, think in they're staying and space. to cook, to us. when the extended-stay we a kitchen, Homewood in that they're we've What people basis, our because noticed regards really that opportunity Suites full longer-term seen in room

in room capacity the we're where the that and environment environment the of eating have availability of more restaurants in the about locations. in of issues think just current because people So, today lack

about that's become where people a regards significant book. So, to where thinking presence are in to

when is has thing the is earlier. environment. other still current business, The nights. in pharma it's that would that business that for lot to Typically, government storms, with a about whether to business. noticed pricing all we been then of there Cross, stay to and say XX to week an what wildfires unfortunately, The extended-stay And project the of companies in that (XX:XX:XX) business or And as we've experienced I in a hotels amount FEMA, three the come (XX:XX:XX) is are in get training of you we've help restoration a amount staying seen we've that have the – people usually a increase Red weeks. people that coming we've significant talked the business XX

you fact of for as profitable the of So, there we And stay. those period about occupancies extended-stay, the because don't the in the time. when model our feel somebody that that they clean most highest housekeeping length often they're of always is is good and the run with footprint

you helps to we're doing that regards extended hotels. question what answer hopefully, So, the in our stay

Leslie D. Hale

carry were quarter. our think we And, into third the Jonathan, fourth it when numbers expect about into XX% to It trend by you occupancy the had quarter. to did large, XX% – carry from perspective, just and sort that suites up carry October. And, and in of will October a

Unknown Speaker

very some guys you the wondering Good. are color could seeing booking and And window. you provide to booking turning the helpful. what I on if Okay. additional was That's there. then window

Leslie D. Hale

kind look, that to XX% Yeah. window. zero in three short, to to booking our I our window continues booked mean, of demand days. zero three-day We're be seeing of

– that November And as as look of of so, we December, that's into sorry part part at I'm of lack we and visibility move cycle also normally what our us us sort as of that perspective gives the – the is we slower, a normally is gives season about to that sort of booking three holidays, the the than XX% zero softer be the But booking around we won't October. that to Christmas, demand and November window window in expect to Thanksgiving days. the December comes can in But so see really our we window. know. is of until the

Unknown Speaker

all detail. Thank I all the Great. appreciate you. me. Okay. for That's

Operator

is question Securities. next Our Gregory Truist proceed. from Please with Miller

Gregory J. Miller

this rate Thank I'm of morning. the they're before expect rate volumes how to we negotiations timeframe progressing may about you corporate negotiations. delayed rates. do relatedly, XXXX Good and want terms I you. a conclude ask for year? And in have curious

Thomas J. Bardenett

Yes and yes.

brands first So, good up, regards have open in XXXX. have done to roll a XXXX to going we a in to rates opening But closed negotiation, just job travel to up. spoken trying over being of amount significant be keep offices not in about still as is question own or mind, the the earlier offices regards to gradually their the there's until

XXXX actually XXXX they going a into is those that of corporations much how rate have what from rate. much come in That's have to So and demand and not issue as volume first as going that significant is foremost.

say that The I is because with choices. you second rates you thing is two of what would do negotiated have

You price fixed bar we're to your fixed float XXXX pricing a finding like be rate because there's have off than as put don't volume companies to companies dynamic which typically they many the float bar want of available to thinking and XXXX day, have means much or might that they rate more that able markets. is off be to can secure in volume don't can was lower a a XXXX What XXXX. that what pricing, of either on to give that go in them that best it you

locations, we're book us if loyalty be dealing into the again. get in XXXX, business XXXX. premium we've stated traveling it's we for hard think brands, in a look going that's point as have think my regards preferred going that many over premium to when with you, we come good start of something out that because last monitor is get who benefit to And then in them in that to to you're the program these hotels I and will companies program to at. our pre-pandemic corporate the and from got and to And and a be we've So years the Greg, of preferred we not shown we earlier,

Gregory J. Miller

I'm really some that. residential color. I second conversions to in affordable locations. if rising conversation this select sold to US and want in question being use. or where of in curious to on amongst cities appreciate municipalities the transient to possible fantastic But your of are hotels are for if trend on a heard That's upper ask the There much, you certain selectively housing. this I tier see markets haven't service. hotels I a unrelatedly, any, as residential some

Leslie D. Hale

question. It's an interesting

resi investors We have to inquire markets. seen hotels definitely start in about certain

from New – alternative York hotel. use received would two for questions be that I or say inbound on we've one one would of of those. kind

that But there. necessarily seen And so from it definitely out meaningful. resi haven't it's to of sort inquire. But tell I seen can't start you significant municipalities. or I've I of to investors standpoint selling it's a

may of trend magnitude I that. there you a can't so but a relative sense to there order And of be give

Thomas J. Bardenett

on university use residential, our we're Yeah. worlds both in best of we're like business in which respect Pittsburgh some of and occupancy able both getting rates an Boston And the fantastic to to have line. in where and alternative Greg, the that flows bottom

side taken pandemic to through necessarily So advantage on the but disposition asset in we've ability the manage on environment. not business the of that trend the this

Gregory J. Miller

everyone. That's great. Thanks,

Operator

Powell with from is Our Please Barclays. Anthony question next proceed.

Anthony F. Powell

of your and the forward? key Question morning. I Santa Hi. Monica, activity independent. any at of money to role lack conversion of Good not on an the play the brand look one key Did going in you do how terms guess, there money conversion in

Leslie D. Hale

few We lot a sought-after this not interest definitely Santa and still key it's asset. entry. in a to has Monica it's of one market the lack very that barriers markets is of had a of high money. No,

we the hotels not steps is was at are what think the we pier, hotel order really was that our And a drive that this think to fact perspective of that. this from market looking that the we that issue. topline what that so, It given do could the was in And And really and thought we needed supports from type independent asset. literally is well-located. that seven

we than of hotel rather can think general as the I our an also decision influenced the hotel more the well brand. size because of footprint and also space creative the the be in independent

it So, key money. was not related to

Anthony F. Powell

independent focused Got RLJ you properties has see it. this you properties, historically tend Thanks. question, do over your on activity as branded ramp up And offensive (XX:XX:XX) to year? more similar time

Leslie D. Hale

Look, our investment component I premium still is branded of a thesis. core that think being

brands into brands. the You will pandemic, are because And think see still we that the of we lifestyle believe symbolize us But brands will important. that expand safety.

And coming this. independent We brands so, is be of go for particular we just think that, to that will more for Santa right way asset. believe important in that out Monica, the

Anthony F. Powell

you. Thank Great.

Operator

We Hale question-and-answer conference over for to Ms. have to closing I of the turn would reached the like our session. back remarks. end

Leslie D. Hale

hope our and good joining advantage materialize. to your families growth as everybody, are our that Thank since progress Have lot you, for last We a everybody. made We call, take they for safe. you opportunities that of call. that we and have again remain us we feel weekend, of well-positioned a

Operator

today's This conference. conclude does you. Thank

You your lines at may and for disconnect your this you time thank participation.

RLJ Lodging Trust (RLJ) 5 Nov 202020 Q3 Earnings call transcript