Earnings call transcript Q1 2023

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Operator

Welcome to the RLJ Lodging Trust First Quarter 2023 Earnings Call.

As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the call over to Nikhil Bhalla, RLJ’s Senior Vice President, Finance and Treasurer. ahead. go Please,

Nikhil Bhalla

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

call this that results on Factors to The SEC. made reports subject company's to results found uncertainties statements no Forward-looking impact undertakes materially of company communicated. and risks are can other be filed had in may actual with the forward-looking numerous company that update obligation statements. may been the the the lead the and from company's to differ what XX-K

we Also, review GAAP reconciliations to discuss measures, helpful be non-GAAP our to as it the release. in certain located may press

to portfolio. supplemental includes pro schedule refer which results our for Finally, of operating night, was hotel current information, posted our last forma please the to website which

I will the now Leslie. over to turn call

Leslie Hale

Thanks, Good today. morning, joining thank everyone, for Nikhil. you us and

fundamentals encouraged month absolute RevPAR positive the are in throughout relative to improved momentum and as basis We first the on quarter, for lodging sequentially that industry an the continued each both XXXX.

XXXX relative As we reaching expected, the post year for last to industry achieved markets RevPAR and significant in the first the of level quarter first outpaced a milestone urban pandemic. time

the our conversion, achieved debt, $XXX of progress increased our that our opportunistically for stock tangible exceeded $XX backdrop, of million quarterly on constructive by results XXXX million we continued conversion, repurchased expectations, dividend this XX%. first strong our maturities of operating quarter Against and extended XXXX made ramp

to of enhance portfolio balance shareholder return. provides our Our underscores strong also overall optionality the our during quarter and sheet deploy urban-centric that capital accretively demonstrates the benefits the first performance to

operating performance. to our Turning

led XXX improvement markets XX% increase XX% our the quarter, an recovery quarter. from by and first points ongoing the our During over of RevPAR last basis in urban representing the achieved XXXX, fourth year to of

growth, pricing RevPAR year-over-year a grow than our our continued but increase ADR as power from year. demand, XX% yielding Notably, above increased to also led only achieved in lift, more ADR last XX% not incremental occupancy, benefited

throughout of each led quarter, XXXX. increased with Demand the which operating our to first reaching RevPAR results XX% accelerate March month,

We to April. are this momentum continue see encouraged into

increasing of Our These urban March first within our the two-thirds represent hotels, which XXX%. last the nearly and by achieving year XX% growth RevPAR our over generated of portfolio results the quarter. RevPAR quarter, during EBITDA, XX% outperformed with achieving with highest expectations for our XXXX

growth our during was weather markets, across despite the the including of broad-based urban of impact quarter. all severe California, Southern Demand

rising demand for healthy the first for to Our to group continues urban business continued international room portfolio, travel, strong drove growth. which improvement portfolio demand, year-over-year in quarter XX% in our have travel. increase leisure This a increased significant from benefited ADR during urban

expectations Strong up demand. relative underscores for given the we remain transient urban our the outperform encouraged to performance urban recovery our that growth our With on of business conviction segmentation, a set outsized portfolio in to basis, markets. continued respect hotel, by is

consulting. post highest XX the to finance, industries, XXXX. special improvement room aerospace, in points XX% care our saw such seeing We health night, with quarter insurance, reflected from include transient broader corporate are which XXXX as business XX% achieved throughout and in quarter, by the We revenues, demand corporate level sequential automotive, is first This quarter the March, of relative to fourth pandemic. to levels our which improved

XX% during achieved our RevPAR, can which transient March. business be Positive in also Weekday momentum seen of XXXX in

expectations. group our Our exceed segment to continues

demand strong premium groups were revenues date. group the first corporate increase During group, of growth XXX% XXXX, our ADR driven revenues highest XXXX Group nearly and XX% over achieve levels. and to in to allowed us social an quarter, from by improving achieved the ADR

Current in half robust booked higher the year including year quarter, revenues group bookings representing all and us were million our group This across to during approximately regional during powerhouses the than of last more XXXX, total for in booked our the Louisville rates group as enabled year. as at first Tampa. we revenues group of drive $XX portfolio, such

portfolio, groups, Given rather group, citywide. was which from our year has year. group XXXX, end leisure to lifestyle, submarkets ADR located of of are representing year our improvement high of watermark. in across largely currently, the able a remained are demand from new urban levels revenue which leisure seven-day pace on multiple generators flexibility, demand week continued of representing a demand book more further by is XX% the increase to our small demand portfolio well property type, especially XXXX positioned hotels bolstered the growth. in with benefiting strengthen normalization XXX% work strength This which in elevated allowed leases, patterns, from the than benefit our a the of recovery Despite of beginning our The appeal our XX% urban the are our leisure of to to the rely hybrid to this demand for self-contained

play. on work are concentration a which will XXX% renovated in at travelers from forward, properties the to lifestyle sequentially achieved capture improved going resort our of demand leisure Mandalay urban quarter. basis ADR, sustainable recently believe our assets, urban Dunes which including given hotels, Beach, ADR relative Zachari experiential positioned our our to leisure that from well our XXXX fourth door Additionally, combine with more We and be looking

year first to EBITDA achieved achieve increase we XX% during last led the momentum over and by of our levels. positive hotel XXXX XX% quarter, The

some prior led hotel our EBITDA year. expected, achieve which pressures of the from us costs we As to mitigate more allowed hotel the lean by operating XXX inflationary than basis to points on increase efficiency operating our to margins model

generate during a us flow cash quarter. significant slower and of margin seasonally Our strong overall profile operating performance portfolio free the our enabled to

capital to on Moving allocation.

continue internal make opportunities. progress We on to growth our

three expect This our EBITDA generated XX%. Our over the EBITDA meaningfully by outperform are accelerate XXXX conversions by exceed we overall XXXX the pace these conversions and on throughout our to year to year, underwriting.

making two Hotel will and Medical on new The a expected double of the hotel to also begin capture position is which rate renovation our our Hilton are Houston the We quarter, tree. with progress repositioning conversions. incremental affiliation Center comprehensive during as to through its second

Garden we pronounced. tripping And in our District Orleans New as Marriott's recently announce hotels to portfolio pleased Hotel joined are that

with Marriott the to underscore year. the hotel unlock our and expect portfolio renovation benefit for system We additional Bonvoy come later and value this our conversions lift from significant joining embedded scheduled the incremental we powerful complete the These ADR to to EBITDA. repositioning immediately in ability after

accretive be to and portfolio further enhance conversions these our quality. expect We highly

have growth. the multiple of pursue we to channels sheets Additionally, balance among strongest our one us of allows traded publicly which peers,

sheet demonstrated our balance by levers as have that the multiple optionality opportunistically We such repurchasing towards conversion capital shares. provides deploying pulling new and our

year, redeployed of shares repurchase price flow at this $XX share. on average $XX.XX to have far a cash our million free of per So we basis an leverage-neutral attractive

sheet tools capital by This shareholders, quarterly utilized profile, on a return neutral to cash XX%. and repurchases incremental to strong past and balance basis. flow to multiple continue our included dividend disciplined which our leverage will share we we raising Given free quarter, evaluate also our

benefit is us will number indicators during the ahead, that our we of urban current second uncertain, allow environment quarter, remainder our that while markets reflect and the constructive We remain the there are a which outlook. of the outperform believe macro Looking should quarter industry continue to year. in to that recognize for the second portfolio

continue we for we leisure quarter. easier healthy And recovery should each experienced to half the expect expect year, transient corporate full demand to strongest during dynamics. also achieve demand year-over-year to against with RevPAR growth that the comps. to performance quarter be the broadening the continue For due year-over-year given first growth remain in to the first XXXX leisure year of business throughout positive The as we

and should demand to strengthen, small group. Group social corporate continue especially

As will our from trends. mentioned, benefit in for year the segment year the group booking improving previously the

year, pace, nearly in confidence XXXX urban is which quarter our info, levels. at bolstered the Also, Our markets. it drive by international as throughout especially is group travel demand should incremental gateway second

recently our our We amplify the to that ramp conversions performance. industry. performance believe these trends of And three urban further markets, bolster ahead completed of of us achieve allowing the finally, will the further positive RevPAR our to

seeing are shape We these already during quarter. trends the second taking

strong for beneficial positioned run given demand/supply our imbalance. growth to for very be growth. nature Longer This we in remains in significant drive which portfolio, will term, believe uniquely drive demand, growth that which markets, outlook outsized lodging favorable positive, have for fundamentals changes dynamic a given multiyear secular given concentration EBITDA will room urban which of especially travel the the the our is

the from strong recent conditioning. portfolio our internal and our diversified our future conversions week sheet. conversions opportunities from next our high-quality pipeline of Our and that the completion execution of with our benefits demand, by are opportunities, relative balance Overall, we of growth seven-day and two incremental encouraged upside strong supported including the acquisitions,

call I will Sean. the turn now over to

Sean Mahoney

comparable numbers Thanks XX our hotels To quarter. throughout first the include Leslie. start, our owned

hotels Our sold RLJ's period. reported and ownership operating include FFO all acquired corporate adjusted during results EBITDA from and

quarter first results. our our with pleased were exceeded We which expectations.

of which XXXX rate First daily was XXXX. XX% $XXX,XXX, of and $XXX, of was portfolio XX.X%, achieving RevPAR XXXX occupancy XX% Average XXX% was quarter was was levels. which

including or more in New levels number The York, Orleans. Tampa, key Diego, first quarter and markets, D.C., Washington, XXXX ADR San Pittsburgh, XX% a exceeded urban New by of Miami,

XXXX quarter of and of a pandemic Monthly driven XX% XX%, occupancy XX%, levels and XXXX, respectively. and February, March, ADR the of of at throughout January, of month to levels the XX% XXX% RevPAR highest XX% and and was accelerated achieved combination March of of which the XXXX. recovered during XXXX was by

RevPAR Los Chicago by Diego XXX%, Tampa in XXX%, Indianapolis as Washington, markets at Louisville and XXX%. March XXX% at XXX%, at results XXX%, primarily at at New at outstanding Angeles most and were urban Our York such at XXX%, D.C. XXXX at our driven XXX%; exceeding of San

levels. trends operating with points quarter results margin of of of led increased the levels. Monthly XX.X% comparable $XX.X of accelerated first EBITDA basis hotel portfolio XX% representing EBITDA XXX XX% to Hotel hotel XXXX quarter, of quarter XXXX. the EBITDA March throughout XXXX Our our million, at above achieve

and positive a occupancy XX% XXX% XXXX. April levels XXX% The continued RevPAR from $XXX, April representing X% approximately and representing momentum of RevPAR of ADR and into driven April where increase XXX% from approximately XXXX and XXXX. $XXX, is forecasted of XX% was March of by

of Importantly, expected to April is hotel levels. exceed forecasted EBITDA XX% XXXX

FFO bottom-line, ranges. first adjusted EBITDA both to quarter the exceeded was guidance high-end $X.XX, our million $XX.X our adjusted the and per share of was Turning which of

strong costs continued While first the demand during hotel normalize. to remained quarter, operating

core initiative hotel operating quarter success first only CPI model, levels, of growth the to our approximately above total XX.X%. redefine the portfolio XXXX and aggregate which since costs Underscoring below benefits XXXX the of rate of construct is operating meaningfully were the cost our X%

of There reductions operating costs. most that property with these influence seeing restructuring of results are are to our agreements factors the our in many benefiting taxes, many and both positive which successful operating the significant third-party of expected continue contributors

approximately below XXXX First remained quarter operating significant of levels. wages and our costs, costs XX% benefits, most total at

first first quarter, of demonstrating quarter, XX% During the XXX quarter, over the in pre-COVID, continued which operating model occupancy and fourth fewer the FTEs points flexibility from environment. labor our the despite moderated higher post-COVID our hotels the basis with during

the FTEs, footprint, portfolio stay. longer lean and given current model, the remains environment, for operations labor for of to fewer smaller F&B operating positioned Our need due length better limited our

including lower entered of our the loan our with draw of sheet additional active in further maturing $XXX into and delayed remain million XXXX. term-loan late replacing extending balance we of $XX and term that in We capital, million to managing cost debt a in from of create XXXX, proceeds flexibility

revolver XX X.X with corporate is undrawn sheet is of maturity approximately hotels positioned are by well weighted XX debt. Our our our balance unencumbered an average current years,

debt or Our is fixed at attractive hedged. of an and weighted average XX% interest X.XX% rate either is

to liquidity, unrestricted approximately our debt. revolver quarter $XXX and the ended on million of with cash, we $X.X of corporate million availability of $XXX Turning billion

for which the volatility the will April, shares under an Leslie repurchased program in active our our during repurchased quarter. per markets advantage to end a million million we additional X.X us of far average have repurchase said, Board one-year, respect to At to-date $XXX with XXXX, capital take including, approved With share future remain share, second allocation, an shares. million to capital repurchase program, repurchase $XX approximately $XXX $XX.XX in at price of the so and provide million tool of as share

first Turning quarter. per sheet, to in increased our to of the embedded $X.XX in operating announced, and the strength growth dividend common lean given the starting share model as our our dividends, quarterly portfolio, our our previously balance board

We provide view use share enhancing allocation capital ongoing and as the the to these to of both validates return. tools continue our total both we investors repurchases components important of recent of return to dividends and shareholder commitment seek

prudent decisions sheet the drive capital increase reduce cycle, balance average laddering monitoring will making lodging to improve position debt to the We overall flexibility. allocation weighted while to the during cost markets continue financing of of opportunities our our to our entire maturities, our portfolio identify and results additional

Turning we are anticipate current on our and and the a providing environment. view, quarter to Based continuation macroeconomic our operating outlook. of second current guidance

For we between and and million million, $XXX $X.XX adjusted $XXX and $XXX the between and corporate diluted and Comparable $XXX between $X.XX. expect EBITDA million share EBITDA adjusted second between FFO quarter, comparable RevPAR million hotel $XXX. $XXX per

for to refer XXXX, results Our the information, outlook or XX no hotel quarterly includes refinancings supplemental and and XXXX which Please repurchases. additional operating acquisitions, assumes our portfolio. annual comparable dispositions, share

capital the XXXX. range to $XXX to in during continue we be million Finally, will estimate million expenditures of $XXX RLJ

you, our Thank and prepared remarks. concludes this

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

Operator

At be conducting the Our we time, first with Please you. your line from Instructions] Thank a Markets. proceed of KeyBanc this Austin session. with Capital comes question. Wurschmidt will question-and-answer question [Operator

Austin Wurschmidt

around to in good I Great. appreciate then in your the seeing and how April in your but specific and sectors, portfolio, curious results? the you're context everybody. of BT urban broadening across recovery guys' if your perform BT did comments velocity Thanks any of it the morning, slowdown

Frank Bozich

We're of it that room seeing say all, ended ended March are if we're sequential room we relates saw grind nights prepared And XX XXXX quarter-over-quarter. talked room of about seeing a actually remarks We will. our slowdown. up XX% you nights, quarter XX% at the quarter good that Austin. We during not points forward, where first a improvement at the I So, nights. in our BT, to morning, as would

even sequential also numbers, quarter-over-quarter improvement would midweek the at and drill saw XXX basis margin which quarter If a revenues ended we XX%, but is point market with in further say XXXX. XX% I I total What down for that of we did ended revenues RevPAR with XX%. on is improvement,

overall, quarter basis start. that I into we're be fact, line March, as think April, with up but we moving that about expect the is And month-over-month relative carry overall saw in good relative pick to so in forward. to momentum And to April, off XXX points seeing March. a ADR we XXXX to

for group June ask quarter BT, didn't the is quarter. the you is that I group, quarter. Additionally, pace the XXXX in then second what and May levels about say And but at stronger BT would about months are second in typically second the

off. we second of build saw on relative it momentum to and not the in it seeing We're growing BT, so forward. we so expect half would to seeing April the soften And we're

Austin Wurschmidt

outperforming? that trends you And segments. specific submarkets in in then, Do I'm California the demand your curious latest update sort are any see pace with submarkets recovery of a for continue across various Northern to are

Tom Bardenett

Austin. Tom. morning, Good It's Yes.

our airport in out in over know, in in couple Burlingame Emeryville SFO CBD, we then couple and a Valley. at a have out So Northern you the Silicon California, footprint, and as

just new so, business And significant instance. finding are that We BT, business we're Valley side, Apple, like come also the into that Leslie is seeing intern Micron type seeing what folks are accounts we're in project with that still referred hires our booked to in. of business are her that we Silicon Tesla, group are coming short-term and hiring some on for hotels, and accounts some

that more than so QX starting what's out Valley QX in as encouraging to it's and ramp QX. Silicon a happened see And in and

year, really It one CBD, was were great best we of the the of the where attendance then led back in gate kind charge the see obviously, and events January. that still amount be of into the in, of the double because the when attendance San helps in back going that's like there. pretty And then to for of that of the There's amount out and they're there's type half we of are half feel comps compression expected attendance though should let's XXXX, San California, in XX Francisco. citywides. South encouraging, QX, going be significant XXXX, of QX to XX California, in the where Emeryville Northern Francisco even of it's compression, say, know better citywides out this come which going be because And to citywides chasing of JPMorgan Northern we

Austin Wurschmidt

helpful. Thanks, that's No, Thanks, Leslie. Tom.

Operator

question. proceed of Please your Our Batory question Tyler from comes line with Oppenheimer. the next with

Tyler Batory

morning. on at Questions more maybe certainly that the Good occupancy you more April I'm maybe that's more means in as rate rate you. well. you was for like provided RevPAR in strong. when you the the QX Hey. driven, XX-XX strong was just are guidance. sounds Thank QX, thinking very It range growth driven, interested look

expecting what interested just the you're QX? So balance for of

Leslie Hale

Tyler, our XX-XX and two-thirds largely you the believe that for was just for rates versus of we in still quarter. off, ability would at we're to about it the first say not sort as rate general, looking I second Sure. And in mentioned, quarter, that, there's still power. but split push between was pricing rate. overall April, about

Tyler Batory

Okay.

do out repurchase. opportunities capital to might that the of Okay. mean, in view some you terms how And nice there. option Perfect. be that see other the the versus of allocation, I

is more of the capital And about the now. that stock You about stock right bought towards perhaps kind leverage-neutral I the is think on where back as price future? in a buybacks you a average basis. mean, governor was applying

current to So the at continue in expect should levels? you we active market to be

Leslie Hale

a and can Tyler, overall balance one pull sort that just that that the a liquidity approach very more was were demonstrated saw obviously number I we than the and given we have, provides trigger. disciplined we optionality helicopter to across that of our leveraging sheet we've say fronts. you thoughtful So and consistently of active

And buyback we've that you last for we as the done mentioned, quarters were several And on so the here. side. active

cash to is our we're to the able forward. order us shares basis, free something to buy -- but as generation, to in neutral utilize profile margin something we at did free if leverage at be going We cash flow and you look our which that's that's that important continue a leverage to flow go

to this new to capital We ahead already as put the obviously performing our even two in dividend in without expectations we're later of are which launched the portfolio. continue increased invest We going our conversions, well. our year, we that

of acquisitions, the recognizing and today but we attractive buybacks cultivate monitor continue pipeline of a deployment potential to continue today. that accretive to And that. remain most We'll capital

Our macro is on a and to think perspective general that's have where and where volume approach complexity view have sort fundamentals perspective because around buybacks. we also they a on as impacts well of view your a think you headed

thoughtful. think to I been acknowledge We're so And remain attractive. do to continue that we've but thoughtful, we going buybacks be

Tyler Batory

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

Operator

question proceed Our comes line next your from question. Please with Bellisario of Baird. Michael with the

Michael Bellisario

Thank you. Good morning, everyone.

Leslie Hale

morning. Good

Michael Bellisario

I you of you do better outperformance remainder all that the or earnings in Was For remainder question, that a outlook your of line? much internal outlook run least driver rate lower sustainable your for is does mentioned the for an head at how of XXXX. think mean And the how the EBITDA earnings change FTEs. on year? of XQ's First at improvement that count,

Sean Mahoney

Mike, this Yes, Sean. is

in benefit sort that quarter-on-quarter, up and sort of were to think light is of where -- of sort flex demand quarter. advantage of for occupancy we FTEs, saw and despite footprint, what the the take was this our of we I of going the the on able

think think changed. has we think in back to of going mid-XX% that XXXX to is are approach that by the not I rebuilding. And think where levels. long-term ramp we going that's be low our land, to We influenced to occupancy the FTEs to

And normalize, there rebuilds, opportunity we levels. would think XX% at so is expect as XXXX still but to the XX% FTEs we of occupancy the that to

grow full year, and So quarter perspective What of beginning on expectations over to is first year. driver then XX% of expectations year-over-year, on margin of the a costs labor year XXX they margins sort for for that is And so how the our said from big changed basis view we at the are continue were full total has year. our And our the to our margins. not of operating in labor our which did the points. for for by that a

Leslie Hale

sort we guidance is that would our Mike, just to reflects look to FTE And what ramp comments I level. of a on back normalized in think Sean's

Michael Bellisario

it. Got

of sort the sounds like more might is it you improvement So little XX% or long little that's improvement bit a of impact maybe or unchanged. because run, there? either whether fair bit XXXX that Is a a see the is XQ the is temporary XX% in takeaway a that more

Leslie Hale

management we say would -- that the asset on I we are very Yeah, aggressive have side.

And headwinds. into do perspective sure a let not making so had clearly of year, around the ahead get we companies costs our Coming lot everybody possible top-line. of spend the time that macro a management

And cautious pretty we on are so the FTE side.

I of seeing So those you're we fill is didn't spots. some what think that

lean box back to of to ability though, temporary what from ability And of flex it's a length would our size so and have average goes ability operating the of I cluster, demonstrate of stay. it is FTEs. the and pickup on a side. the on FTE our say, the to because to model our standpoint quarter efficiencies model It transitory our the on first does And

is And confidence we do, so have. can think we that that give Mike of given need type I we should the when to, you what flex it model

Michael Bellisario

more remainder at the net the Where range that want Sean. one comfort for today? it. comfortable of just helpful. your what's to That's the operate for of year And stand And Got then outlook? based or leverage the on sort is you level

Sean Mahoney

believe to four-quarter continues cycle would is XXXX. to basis this over level. continue roughly for go that half a to appropriate EBITDA down leverage. year, trailing grow expect as EBITDA net to ton Sure. overall debt the on times Today, on the in high-Xs we're the a we And We below that our four

low-Xs. in we entered reminder, As COVID the with leverage a

were times to sometime X.X%, -- quarter X.X% on first or internal models. or get below our based depending we second next back expect either in four the would the we year, on think trajectory and I

Michael Bellisario

That's you. Thank all for me

Operator

Chris question Please the Darling with Green Our of comes next line with your from Street. question. proceed

Chris Darling

Thanks. Leslie, the maintain repurchases. discussed level of of you in neutrality Good share some morning. terms leverage to desire

it's you're So a I those selective maximize that to thinking option. advantage provides in of dispositions great to wonder not understand but theory, value, how about thoughts environment that in I ideas? incremental context. on competing Any of capital that take any

Leslie Hale

be given would Well, thanks question. selling we the assets the for say, is we significant the liquidity offset backdrop given we into. that on our that markets back today when what do fact cash it we in our utilizing face balance at in be I sheet, and cash we of cash will have project not generated. general, market free in forward today the to with capital think free flow debt optimal flow then that that can And terms and an have putting

opposed as about timing in needing to issue to a stay neutral. sell assets I it order think would from leverage to So

Chris Darling

maybe That's opportunities But out the you're enough. X situations. of helpful. it of might I recent at -- look about X conversion future lay one to you calling All with, I presentation, more, Fair pipeline right. your along think, special Tom. what And if for be

Just over of you're special situations, that to the ROI there? hoping time you those could envisioning speak projects types

Leslie Hale

me let in Leslie, is This Sure. on this question. jump

site. asset, lot a maybe allows are to doing look size that have -- only you you think those hospitality not multiuse of also what at is unique and an where but the the I opportunities asset size

a situations So you can at multifamily where these look hotel. alongside developing are

opportunity located. embedded So our would think on asset not where where that incremental necessarily an given something it's in it's an execute we it's for own, there's RLJ but we value

Chris Darling

appreciate time. I Thank Got it. And you. the

Operator

the from with next proceed your Please Powell question. comes Barclays. Our question with of Anthony line

Anthony Powell

Hi, good morning.

do Just one know about as mortgage get the be to that paying me on your think what you mortgage you the those, into something the most I next loans But think refinancing currently, of or the term year. balance peers seem loan mortgages. on sheet. consider, you Is and that would for what rate? loan you off you extended

Sean Mahoney

of debt XX% from Thanks, our than we our just Mortgage Yeah. total asset total Anthony. today, less as debt comfortable a anywhere We're value. of of have up XX% It to hotels. standpoint mortgage represents debt debt our XX sources, from of having maybe on very secured. having diverse XX

And that's appropriate. so we think that

I'm a are and think the two they times that here, are of we of each to mid-teens have use on and on loans XXXX those for going coverage debt numbers yield loans north that loans. anywhere -- I secured today, one

so relatively loans. LTV low And they're

And they're so why is -- which attractively. priced

not individual And when secured think as so perspective. it's continue probably -- an we that's that strategy we would attractive we think a on to refinance, we about a sure to our maintain pushing trying individual but make leverage from those pricing loans,

lending today like all choppy market The unsecured to continues debt. be

we able sheet we be expensive lenders, on expiring As relationships, debt. way, but efficient talk secured secured of be more to to balance than our it in of a to so an expect we're and our obviously would in and because very would good debt the position put because

place. over all the moving is market The

a be we spreads at LTVs. have would to And rate would than all-in would compensate from so I'm for higher the than be on but maturing, don't not view able -- what that other be lower it I today

Anthony Powell

you. Thank

Operator

Our Dijkum question comes line next Point. the with of proceed from questions. van Floris Compass with Please your

Floris van Dijkum

morning. Hey, good

Just a follow-up question.

to comment company Obviously, of a how this economic the you perspective on get April about little even what of it somewhat BT I'm XXXX view? weighing and something does was year levels encouraged over levels, But XX% got to actually higher. on the take? And will XXX% you uncertainty by XXXX -- that in -- can some BT, your still well? I or I Leslie, as does give can we've get you Where think market us, it think, view BT is your maybe et cetera. and and mentioned said

Leslie Hale

would necessarily levels possibility end that We it see don't that's story. XXXX do grinding back I by a getting year. BT generally it's We to XXXX say a for. look, So think is the of this

what But that the million-dollar back all rate question takes would given to not. and puts revenues we going obviously, -- the or that segments that I our the between the XXXX we across achieve is Now confidence have the that all get we're BT is the elevated know say is to the growth across allow us segments to seeing across and XXX% portfolio portfolio.

in would to capture we industry, is that. I segmentation, our of the to all, urban the portfolio an and that. what portfolio, can evolves, types lifestyle When we so think BT are our of have, assets as you our about say between able sitting that new nature mix assets, that evolving the we you week which be is leisure of and to the capture that built demand, and whether breakdown a are for Urban-centric think we heart And seven-day

And to think evolving we're new the is mix But how is continues the shake our I BT evolving. positive out, is so portfolio would normal uniquely what on say. be to as positioned to net-net that I capture able

Sean Mahoney

Yes. quarter. that, our just quarter to bolt with And well guidance kind to as as then of fourth on first to respect to relative

XXX So of implies basis to fourth points first quarter. basis XXXX we're And midpoint, at XXX so RevPAR, at guidance of to another XX points our improved to recovery relative RevPAR quarter-over-quarter. levels quarter was of our XX%

us moment time, unfold. and how driver the we is gave. of indication overall And we the that of portfolio of giving in to our being guidance And this much so that that think is to I think confidence in the that that we a continue recovery going as to believe give is because Urban-centric an BT

Floris van Dijkum

me it That’s Thanks. for

Operator

proceed of comes from Gregory Our with with the your next Miller question question. Please Truist. line

Gregory Miller

business corporate HI. articulated. the are Thanks. had transient. -- an past talk mid-single-digit been we today winter now trends negotiated the update all. that to about Good to provide months, also whereas a question compared you negotiated I'd that like growth ADR about on Thanks. ADR morning, Could previously

Tom Bardenett

on somewhere Good fourth the yes, minimum top up was actually a morning, We as first going the in negotiation and the pretty price Tom. high knowing on that X% we was out ask process, pleased on It's the a well quarter Greg. it globally walkaway at quarter. we it time And had into August, and we're when pretty digits -- into where went time. with single the end. same which had table, ended frame, starts we how September And significant lengthy between shook the as

seeing are comp, obviously you significant about year-over-year, But mix to is talking which our about point type corporations. movement was forward, an versus the the more accounts seeing easy importantly, we're that and that volume from think accounts and just large you from was increasing there's if QX increasing are of about when volume QX. QX the Sean XXXX, where XXXX. to what And Leslie's think we're And grind about

been now can you which the growth at right? know, that coming the all high will. holding you starting at looking digits, up, through from staying see the though correction in those of traction volume percentage-wise to see even low actually of kind where if at source Accenture and and indicator that We're global now through see And regards and we're digits Ernst the went you was hiring a gain the that hotels. Amex our and organizations coming you SMEs process. BT to look systems, And As and companies, have demand leading business, you're they Deloitte we type single when travels to So in start P&C is seeing typically a and is the from tech Young distribution is of back at of consulting, double automotive, book aerospace & events.

back in So starting certainly over track and but up, is -- rate it also XXXX? the to we're encouraged the how we're volume then and ended seeing XXXX, growth to

Gregory Miller

Great. Thanks that. much for so

is that and believe front I there for out found had desk an The that I interesting -- the that's on other and progress question I you,

Leslie Hale

didn't You're your sorry. we question, I'm -- part up, of so breaking you're hear breaking up and

Gregory Miller

Is over? it

Leslie Hale

again. Try

Gregory Miller

Okay.

that. about Sorry

front is the but Okay. pending hourly survey an labor how franchise and I I'm for the on that costs it's desk, that and today? progress not the HLA fill interesting, believe roles? there and survey, the Is to to staffing front the position run found portfolio are pretty I curious harder

Sean Mahoney

to because about think cover what's we back. we food what a able of Yes. even happened. a a had if because bit maintain industry to but always we well and there hardest versus to find if slow down while we've housekeeping to beverage, And food back say, point, certain been starts obviously come having desk beverage of say, of it earlier compared little on has shifts track can When the It have Leslie's you and the comes need to, jobs and folks always been increase. to, maintaining. when desk to group do shifts we area as think not managers the amount let's we've the occupancy that that as took to to move restaurant typically and where about little and And happening you and housekeeping our been has would the when levels have I something been

haven't able typically, we've topic we seen been to that retention. be where have But the

you what put program. is views, that, whole we've is goal think have drive to done, configurations. the up-selling fact, people an try In Greg, and to with rate And interesting, I which in average

the able were for piece actually opportunity to hired highly little to on to get desk they that to if be a assets. And so people we desk have able able it's be attractive that place And be to our a the to pie at more work to found be which get able of been to program the and attractive folks be they in upsell. to have incentive

Gregory Miller

so Thanks information. all much Terrific. for the

Operator

of Leslie the turn the And session. we now have to reached the And closing over back for remarks. question-and-answer call end I'll Hale

Leslie Hale

and can position momentum we we've talked that like you the urban I And positive us that our that just us a reiterate that are continued portfolio, unique to confidence provides us to today. all outperform. that RLJ continue catalysts that we for joining in of to growth. Thank concentration for seen our about number would

NAREIT. I summer. Look, at have I all to many well you for you Thank great I plans, of hope the wish look summer all forward everybody. and you seeing of you,

Operator

And this you participation. at concludes time. for Thank disconnect your today's you your conference, may this and lines

RLJ Lodging Trust (RLJ) 5 May 232023 Q1 Earnings call transcript