RLJ - Earnings call transcript Q4 2024

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Operator

Welcome to the RLJ Lodging Trust Fourth Quarter 2024 Earnings Call. [Operator Instructions] The conference is being recorded.Â [Operator Instructions]Â I would now like to turn the call over to Nikhil Bhalla, RLJ's Senior Vice President, Finance and Treasurer. Please go ahead.

Nikhil Bhalla

Thank you, operator. Good morning, and welcome to RLJ Lodging Trust's 2024 Fourth Quarter and Full Year Earnings Call. Hale, highlights and for Leslie will Executive call, key discuss the today's our Chief President Officer, On quarter. financial Sean and Mahoney, company's Chief President results. Financial Officer, our will discuss Executive Vice the this will our Bardenett, for made had to may uncertainties Chief what risks Officer, lead actual communicated. call Tom differ be the materially subject are from company's Operating Q&A.Â Â Forward-looking available statements and that numerous on results been to other the reports of results with the can company's the XX-K impact in and may that SEC. Factors filed be the company found The no discuss reconciliations press undertakes to may obligation company our statements.Â Â Also, to the as certain be update we to review it in forward-looking GAAP located non-GAAP measures, release. helpful

of over Finally, XXXX.Â I portfolio includes information, for which operating to now current please the pro the turn Leslie. hotel refer will schedule call supplemental results to forma for our

Leslie D. Hale

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

quarter with the urban-centric pleased very consistent are positive our portfolio. momentum and demonstrates We which our in fourth once again results,

where These culminated while also achieved Our top-quartile our industry that the overall share.Â Â We we performance the outpaced number year RevPAR completed year, Houston, New quarter bringing in conversions Hotel conversions growth a We expanding key in over in and RevPAR Pittsburgh, to XXXX. Teatro X Orleans, growth robust Denver. we completed This a assets the X. objectives. acquired of of in market accomplished achieved total XX%

Nashville and next our advanced assets. wave of including conversions Boston also our multiyear We our within pipeline,

operating multiple highlights all capital to strong evolving repurchases, the dividend.Â Â Our by travel relative ability strong quarterly addressed that of our we shareholder XXXX to increasing and demonstrates maturities. returns and our allocation enhance year share pursue positioning growth balance our turning optionality performance Additionally, sheet returns.Â Â Now capture dynamics, while our performance. shareholder into portfolio's our this the our to provides solid debt enhanced disposition WeÂ accretivelyÂ recycled of channels to we proceeds our

continue X/X represent demand, demand by fourth year, citywide grew during as which urban by achieved entertainment-related segments, as X.X% RevPAR trends to and other from over growth group events. our the across travel, markets, of improving by X.X% Urban our robust fueled prior benefit RevPAR the markets led corporate portfolio, Our well including quarter. all

positive by travel around from into pricing standpoint, were positive prior These urban allowed over our travel quarter. the driven in against better-than-expected lifestyle year.Â Â From a represent also continued best-performing markets business growth.Â Â Within XX% X% was which resulting was of hotels RevPAR segmentation especially performance driving demand, by and Additionally, this group for strong, enabled revenue our the growth January, year, achieved growth derived segment, momentum flexibility trends see leisure to improving BT and top work muted carry double-digit growth RevPAR patterns X% urban the over a the X.X% during we a X.X% are power, election. achieved demand December last again pleased achieving once our both increase. achieved to ADR urban of evolving portfolio and benefiting our RevPAR RevPAR many that the quarter, generate growth, November outlook and

despite a demand our and muted in X% the by of a X%, demand performed Our return increasing X.X% and in revenues the office in urban BT. improving the of the group, of continue midweek to broadening the segment further quarter. Group the well growth mandates improvement travel accounts, the large Robust segment.Â Â Relative from RevPAR to of during timing demand holidays led group national evidence for X% among in is ADR. corporate a the be this to November, increase SMEs, around Jewish election grew by tailwind fourth October and

Houston, New of growth benefited strong many citywide our in increases such Florida, as South Southern meetings corporate group in segment small volume Orleans, the as group and well in Our from and continuing key California. as markets,

segment and recent by our of remixing with markets transformational and during the in balanced our group leisure quarter base customer that leisure such from a revenues key incremental as from performance conversions also between demand in saw several pleased the we strong rate Our renovations the were we by created as demand benefited X%, Southern California.Â Â Additionally, grew growth.

to growth, spend top-line had pace these to the our revenues achieve revenues with in leisure managing for outpaced see trends Pittsburgh growth.Â Â This year-over-year, at total markets. urban particularly around Our leisure University to our EBITDA XX% disproportionately of year by relaunched growth number quarter, of Pittsburgh Collectively, quarter to robust with Courtyard consecutive RevPAR a approach capital the to X.X%, grow during seeing were XX% officially its special once the holidays, increase travel the X%, Wyndham the success conversion quarter. desire the of operating the expenses increasing enabled growth Center. to With at by schedule continuing fourth our out-of-room this from which strong leading prior encouraged again of already a demand, RevPAR allowed We events stronger early benefiting ahead of and to demonstrating by combined XXXX allocation, over former ahead we levels. respect fourth which consumers. are completed our second X%, is focused We

it pace outsized Downtown Marriott also year. the advanced on we joining the from cadence We completing university's growth us prime Nashville expect X conversions, generate system.Â Â During with on per Pittsburgh the benefits quarter, conversions our its fourth this of keeping by campus hotel our and to location as and

ramp RevPAR XX% conversions Beach, Charleston,Â Mandalay fourth achieved the Finally, in we continue quarter. Monica, Orleans, of Houston, New to Santa in robust and collectively our growth which

the maturity continue flexibility maturities.Â Â Our redeploy during Hotel to existing by us raise to will using our ladder stock, sheet XX% we improve optionality debt and and provide by of XXXX sheet our addressing Boston beyond. our XXXX Teatro in strong balance our quarterly balance to Wyndham disposition dividend Beacon liquidity with Hill the year, acquire $XX toÂ accretivelyÂ repurchase to utilized the million and of Additionally, proceeds the to

lodging improve encouraged external we a more are to ahead, in it the we fundamentals As environment, demonstrated, persist, potential less said, office the capital as in for to volatility market assuming while to year. regulation, That return to by the have momentum thoughtful positive with we and remain transaction disciplined relates allocation.Â Â Now accelerate growth, headline will expect throughout we looking to expect and business-friendly economic mandates. to taxes, lower we respect

light notably healthy, our and small across year, However, demand.Â Â This markets which segments we under outperform group, to urban broad-based demand group industry baseline to the in the remain most achieve represents multiple expect lodging of remain of moderating bookings. growth to single-digit majority of expect should with we growth the believe especially industry continue our We assumptions, operating growth. RevPAR that expense will well-positioned low

of light well backdrop, and nights given healthy the citywide digits. unemployment that digits group increase and transient pace XXXX markets in to such with to prior ahead year. are as favorable we year our leisure XX% have where and low pace is consumer.Â Â Against improve We encouraged XXXX expected over our which California, remain that positions quarter Northern momentum we generally above stable this low is double first office us believe up a for should a footprint, continue Business positive as mid-single the are return mandates up have room of to

well-positioned with should improving Southern aerospace and Boston as California and incremental San benefited is from a Orleans higher citywide inauguration confidence D.C. should the from portfolio us education New robust citywide benefit Bowl resiliency biotech from such calendar from lift calendar a against benefit backdrop and Washington, business and for gives and demand. presidential far that so year urban-centric strong having and industries RLJ a Diego that this Super travel the last choppy improving the our year.Â Â Overall, demonstrated throughout XXXX.

drive we including especially conversions, trends pipeline internal positioned addition to enhancing our favor conversions, markets, and external future we to the against continued flow limited a beyond and of of to outsized new as value will trends As entire this These we is returns.Â Â I us the disproportionately coming our growth experiences dedicated shareholder the urban over to supply. our to over growth and high-quality sheet, goods in respect call ramp free strong that up of the Sean. positive given secular favor to portfolio the urban continue in shareholder the our I'll look both lodging backdrop, are incredibly prolonged of BT to remain given our capture have operators, outlook as in set period to current that fundamentals contributions create industry, on the especially Sean? relative built our cash will well trends whose balance team, continue consumer well broader am which year turn events. proud year, for and With ahead.Â Â With completed that,

Sean Mahoney

quarter. end numbers include our XX start, owned To the comparable Leslie. of at fourth Thanks, our the hotels

RLJ's during fourth-quarter which are strength of ownership EBITDA acquired results and corporate-adjusted from to operating reported and the and report Our operating sold hotels all high-quality include our pleased FFO results, urban-centric portfolio. demonstrated resiliency solid period.Â Â We

of driven Fourth occupancy was RevPAR growth by in RevPAR in X.X% was a quarter was X.X% occupancy. fourth a offset which average $XXX.XX slightly and $XXX.XX. decline XX.X%, ADR, rate was quarter X.X% by was daily Our increase

which at York continued transient in and at Chicago revenue XX%, the markets, as operating transient X.X% fourth year.Â Â Turning of and January in to remained healthy and X%, October, at ADR X%. month election, Louisville XX%, Orleans such prior a during RevPAR the our was grew including business growth and X.X% of Los above RevPAR of XX%, outperform.Â Â Fourth New spend. San occupancy X% in Our at in X% continued Total X.X% midweek November, of each result X% achieved at continues at Diego by in to current cost Houston RevPAR to strength growth at XXXX, healthy and growth environment. positive XX%, the December.Â Our business growth growth growth quarter X% as Angeles X%.Â Â Monthly RevPAR RevPAR growth preliminary X.X% CBD is out-of-room outpace above of urban constrained was quarter New

growth to fourth we expected, quarter. rates cost our operating moderate the during As continued

fixed Drilling construct growth such total the which of X.X%, $XX.X insurance lapping benefits of of of only only quarter, We property our the of where and our in and underscores operating into achieved decreased hotel first quarter million, line. annual fourth which difficult million from operating as above representing hotel of XX portfolio basis portfolio property expenses, the behind program was further Our half growth comps EBITDA outsized and growth. our margins November, the prior points in the benefited bottom over to operating XXXX.Â Â Turning XXXX margin XX%. Â During tax the $X.X with of expected, fourth premiums growth year, cost pleased hotel hotel operating initiatives insurance appeals, EBITDA were XX.X%. performance, our and costs successful the as our the cost our during to manage down property of taxes renewal was

$X.XX. was was fourth quarter EBITDA adjusted FFO $XX.X per share adjusted and Our million diluted

our flexibility manage actively to sheet balance continue additional to our capital. lower further cost We of create and

XXXX, addressed of we term XXXX entering our and $XXX into During all including loan. a XXXX new million maturities, debt

to to $XXX continue the with balance ended our XXXX take a XXXX sheet current of XX our hotels attractive weighted available years, our weighted interest under will maturities.Â Â We debt, of proactively address debt fixed a rate We approximately hedged. by during of revolver, with of fourth well-positioned corporate an steps quarter and either X.X XX debt average average XX% maturity unencumbered or X.X% million

shares to also share relates our million the of million invest of our towards demonstrated of to with projects billion liquidity, and embedded the we at to per average share dividends. Â During in respect intend we committed billion the while under as both price repurchase $X.X fourth were $X.XX liquidity approximately to repurchase through within over an we recycled ended unlock it $XXX returning disposition successfully value As active have for our quarter capital portfolio, capital program the to of we noncore of to allocation, repurchases million proceeds XXX% past, and $X.X in remaining debt.Â Â With share. $XX the X.X XXXX, and shareholders

We far an active have per million repurchased approximately in $XX share. XXXX shares so have average been X.X at for price million and $X.XX of

of position to drive supported monitoring share free by of and opportunities financing lodging prudent while cash portfolio allocation growth markets flow. Â We making Additionally, per our will $X.XX our well additional cycle, is continuation covered cost our dividend our capital improve to are balance current operating full view, year weighted macroeconomic and flexibility. Â Turning guidance Based entire continue during to the identify the to decisions quarterly sheet of to laddering providing our a our maturities, increase anticipates the that we current XXXX average the debt environment. of and reduce our outlook. on debt

share million to For to incorporates per date we be range $XXX and XXXX, additional $XXX growth comparable RevPAR between but $XXX FFO $X.XX, diluted corporate adjusted repurchases. expect adjusted repurchased and and no hotel $XXX between and X% comparable million which million EBITDA between EBITDA X%, between million, to shares and $X.XX

outlook refinancing. $XX estimate to net be expenditures G&A in and million XXXX the will million. Â Cash $XX to no interest $XX in range of expense We to range Our range capital be in additional acquisitions, RLJ $XX dispositions be of million. $XXX million or of will million assumes the the million expect $XX will

We our total continue initiatives growth spend. growth outpace in due expect success revenue out-of-room to to continued also will to drive RevPAR

should Our anticipated incorporated from certain XXXX such will South XXXX displacement XXXX ranges growth scheduled strong in occupancy Florida These create beyond. in be renovations and Waikiki, markets York. outlook as transformational and New high and renovations

we the quarterly Convention modeling, and expect the to XXXX position our similar ranges expanded first Austin adjusted be $XX patterns of million Additionally, outlook expect XXXX Center, to long-term cadence year is respect for closure $XX quarter to as Austin for seasonal between quarter assist success. Â With follow and million. Downtown to which significantly second EBITDA with being incorporate to the the and

prepared Finally, the information, XXXX which concludes Thank and hotel please will portfolio. include refer our this remarks. you, supplemental comparable and XX quarterly for annual results to operating our and XXXX

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

Operator

from Our Baird. with of Bellisario the Instructions] Michael question first [Operator comes line

Michael Bellisario

or Leslie, us urban puts portfolio in the just 'XX? each throughout Maybe out your handful a on And RevPAR takes to are help tailwinds Maybe do 'XX, and end. the the first in X% where mentioned of at end? playing California. the Northern potentially see low X% end, you high question, you group, guidance. then What headwinds risks unpack

Leslie D. Hale

Sure. high of is a sort end of end low our derivative our our base really assumptions. Mike, and off

growth. of and urban from most momentum segments, different that and the the we So outperform as that the is benefiting continues mix room our rate the XXXX continue is base urban in continues assumption got from XXXX industry for see it's occ to that to all a

strong with benefiting it's look and that our our prepared group is on that's length of that We that rate mostly from mid-single footprint continue. and the From So our going perspective, to favorable and who's you driven stay pace we as stable to we base midweek BT, at in when and have leisure the that traveling, that well. going think is as the assumption is we travel, of mentioned digits, side, conversions. articulated urban be we're a benefiting that frequency remains and group a by leisure remarks trends, our

and could real demand has in high when look and the rate high BT And is the end, macro growth, to and there's from on be low end, growth that another slower the and less BT variation low that is overall scenario And for are the could softens all the end. renovations. relative to displacement sort but have lastly, incremental growth of derivative leisure. of at on we baseline different no So it that that our end, we addition the the ahead base where base end high and that both assumption. off group the it's then which on a assumption. the rate of the assume But steady a little urban assumption, bit growth conditions our if of remain demand in change we on And end. Â On that those there's of our rate low leisure stronger performs from has a assumes pace of group and puts a some leisure takes,

Michael Bellisario

just your in then that Maybe on stack from what's Okay, your a XXXX? today? how for capital 'XX as switching differ that's here helpful.Â And And sit priorities ranking little the priorities. just were gears you what bit allocation might

Leslie D. Hale

that just to to strong and continues is that relates nimble it optionality. gives the the is requires that Yes. sheet that to as evolve. allocation think be not environment us to current a backdrop balance say we what Mike, the have and And acknowledge capital static I I would us having

So where and invested recycled different including of to it ability and years consistently results. for use right XXXX, us the we great back that with We've conversions pick have proceeds dispositions. our windows have couple buy demonstrated in yielded tools. saw from stock the last the We you done

they're and XX% our our the we year dividend. assets prepared our As we up two for in in have We increased that full fourth and XX% mentioned expanded acquired quarter. pipeline, the remarks, conversion

year, we're at the the today. the evaluate going windows, at move to We're going I nimble. eye continued fundamentals, look couple so last right balance to be and demonstrated Obviously, we've to the and the nimble as our of we the the ability on trading years. see given the to macro And at are do going looking be that. you're to we've for stocks looking direction think the to looking continue windows buybacks, us active where for as that But of into But we've backdrop an keeping be done -- on sheet.

Operator

line Our of question comes next Jonathan from withÂ Oppenheimer. Jenkins the

Jonathan Jenkins

potentially on the that the The that perform formula you forward? up and well. that going to very on Does discussion. And you've in the I about pipeline maybe and of on in conversions cadence think the potentially think, following year annual Just strength potentially a around aggressive into leaning cadence your talked XX that of, and radar. continued change about capital past how terms allocation continue to accelerating

Sean Mahoney

We No, appreciate that. I great think Yes. question.

the right way constantly we through in year. a have without incremental of much catalysts to is but the of we it that allocating the over our is think a that one right standpoint, way the built I think so per about a a of standpoint particular sure cadence view from layering making risk couple taking think up.Â Â And growth from how thing CapEx doing optionality think we in just us that we contracts year how our period We line from in both too that portfolio conversions. also sprinkling a is sort dollars, about provide are time

Jonathan Jenkins

Very recently, gears, Okay. drivers late? key then of of then that help us can And And maybe more about have in an think as expectations evolved XXXX market how your the buyers transaction helpful. view? and you of switching outlook into sellers' and improving the market dive

Leslie D. Hale

beginning is say as I the Look, look thought well. interest year, would fact transaction it access the we I given the market get that as We originally if would as through choppy debt But rates interest small Yes. improve there's single the as to at as much last matter transactions. all wide. market and spread remains bid-ask of the no of the didn't improved and we still the clearly, much improved didn't that see themes fact remains rates at clear transaction particularly the come the But be, expected year.Â Â So assets. done down deals that really

I You things of some really look in remain optimism you while have than catalyst.Â Â And think to beginning better at the basis, opportunistic transaction be gives that of asset-by-asset to general year by will climate, in think year, which our back to balance I do. what's an so of have this transaction this the sheet there's the on ability just us terms half the

I we and reduces transaction see stabilization the some of to well think for help volatility market. on improvement think that's the bode that headline as going I margins,

Operator

question the of next KeyBanc. Wurschmidt Our with line Austin comes from

Austin Wurschmidt

extent stay confidence we RevPAR operators guess, do levels growth. this based of a tracking was your drive the unique quarter continue to really of said ADR could in the bit You to kind highlighted was to environment? that on I are by Or have that of in a fourth little where growth differently, entirely occupancy and rate quarter? today? the sort RevPAR I guess driven Maybe that slower

Leslie D. Hale

thanks the Austin, for question. Yes,

and of will Our all group is it's largely rate been It's that from the momentum our markets. and across BT. general perspective continue broad-based coming that

X%. in for rate was the guess, up obviously, fourth I Just, BT context, quarter

contributing price-sensitive, GDS. rate over negotiation have XXXX it is using to For they coming the up that's across a from, X%. really right? growth.Â Â What And Corporate in book XX% contribution. and accounts.Â Â They increase a the little about of rates levels. full able your seen highest-rated how seen an that continuing overall, they of are function back, BT book it's a well. that's SMEs least up year, the say who's national revenues and we've to given at customer all I continue increase traveling, a to special as we've are was So drive channels BT as would to high corporate And proxy, what we're are

And the group. below below look at you it to BT still thing rate above.Â Â Now I XX% today, where was it's that that when there's historically, other group, last relative think So year, BT right XX% growth. you room I'll to historically is sits now, what time this but was XX% tell is group,

so in saw pickup a basis you And year. the point XXX

there's We or to close. We side. expect that going what gap where room it's for will BT settle but we continue think to know rate to degree, and grow don't opportunity on

a group shown that up real corporate driving rates. strong was think fourth the small side. the X% that's strong, group rate also of the group X% for quarter, year.Â Â And being strength in function We and has It really on being

amount each push to of rate. is so And that incremental demand going help

and pricing So good about we rate the trajectory feel power. pretty

Sean Mahoney

And growth We incremental X.X%. January the driven rate then all data Austin, That by RevPAR gave well. at as one was for point.

a so that's a XXXX, forward good perspective. And data from which momentum point into is carried

Austin Wurschmidt

Yes. detail. That's all helpful really

occupancy continues impact guidance? kind and big a driver to could So versus the rate to growth given on assumption the RevPAR, of that in initial margins extent and the an growth of mix of RevPAR to rate for have I of a be primary that guess, assumption guidance how be

Sean Mahoney

than sort our margin down RevPAR occupancy. basis XX the of low Xs in points obvious, growth going the low rate-driven range sort points mean high XXX to from to basis middle. the anywhere is of flow at Stating at the bottom end is the end, more line I to

that stage, about is, points would is allow to center end the to said, get view takes us I margin range, as XX. basis if lower rate XX that our that down which to more think I of

Austin Wurschmidt

clarify just on Let me last comment. that

low to believe, to If driven, you all outperforming end without expectations? hit initial the but that is you it's midpoint the it, I of call get enough RevPAR RevPAR rate X%, around,

Sean Mahoney

the likely of No, the midpoint. low end between get that us would

XX And basis to that sort it, scenario. that of that's so in XX points call

Operator

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

Gregory Miller

I'm to Greater question ask like L.A. area others perhaps curious off the to yourÂ Pierside were and Dunes. impactful, impactful, L.A. likeÂ Zachari how if start I'd in about L.A. the with fires a market-specific HotelÂ and

Leslie D. Hale

was I strong us, that's the general, say our would Yes. a that one of a of for that L.A. Look, function in month obviously and of a January from, we a those in that relief. market markets. mentioned obviously, from We fire benefited of that saw But lot was some positive perspective.

Sean Mahoney

Yes, Greg, we you when folks participated announced the capture of were if in the Hilton some that program, dislocated. to recall, trying primarily

whether it demand And see additional Dunes did Zachari PCH, evacuate, in through February well which from And had Hollywood, LAX as Pierside to as Oxnard so up come little to as continue through we some was we we'll see that. a avoid that. the to bit and demand well

So have unfortunate, displaced. quite we yes, of did but a the that few were folks

Gregory Miller

the to of expectation the the fires? concern of the with the transient rest to have is potential that sticking a might in for loss dissipated might terms your what in and topic, headlines corporate we're that leisure from that those of falloff year are in hotels? news transient terms seeing demand the Or maybe of impact expectations And degree see or related that you

Leslie D. Hale

fire. Greg, built Yes. What our were I around not budgets would is the say, that

the on performance any our our of ground permanent improving as It's don't include assumptions lift they from find the obviously for so housing. that. individuals in And and conditions terms

broader not it's baked our So numbers. into

Operator

Wells Dori Fargo. with the comes question next line of Our Kesten from

Dori Kesten

the your they're if demand rate side versus leisure What year, expectations for are urban leisure resort on materially different? this and

Leslie D. Hale

going look We footprint. think urban outperform is to continue just at broader our that when leisure we to leisure

it, to favorable events. various markets a markets. of to is a are Cup that place the of taking it World special in we're going the number seeing have games We all relative setup And across soccer be whether

California is Gras years. for slightly different is benefit andÂ NOLA, from the is normal than timing that we've DC, example, which of it going to Southern gotÂ Mardi

So we'll that. from benefit

our side the favorable across on growth. a special towards I that think when benefit So lot markets, we event a our footprint of has look disposition there's

Dori Kesten

San Okay. negotiation is update you that And regarding any Diego? provided in lease the there out

Leslie D. Hale

We're we in later obviously moving still are year. give to to and be say an pleased what is -- the I discussions. would very hope with favorable update that active it's and in able direction way, But this a

Operator

question comes with line Compass from Our next the Point. Floris of Dijkum Van

Floris Gerbrand van Dijkum

Leslie, you a conversions. question I want-- for your on

conversions X that got you've completed. You've

of today, stabilized how terms as of stabilized those what's on being the but I would In projects? stabilized, of you deem returns don't many range know

Sean Mahoney

Yes, Floris, can start and I'll then Leslie chime in.

-- expectations sort I of north think IRRs the been unlevered of XX% the our capital. incremental on have

slightly are of underwriting. our We that based on ahead

I that are terrific what's But the conversions. think generating ramp on returns for us to these are is they interesting continuing year-over-year.

X the was On RevPAR up Phase 'XX assets. XX%. was for in X up Xs, over 'XX XX% EBITDA about those

color as Phase Orleans on those converted assets, and can we're X year-over-year. so Tom well to X%. the that the ramp And of RevPAR up Houston, In up ground,Â TonnelleÂ New the RevPAR ones provide on even continuing then was were was a XX% couple years -- conversions, And was ago.

initially excess returns underwrote. though So all earlier in the even they are of generating we we're ramp, in what

So super excited about them.

Thomas Bardenett

which is Houston giving which whether the in HotelÂ TonnelleÂ , contribution, think all attribute is to then the contribution we system. common that from I the system And Marriott Floris, is more you Hilton brand, we're the or the recently has and it's X, through which is system, much Pittsburgh, talked Courtyard, about Marriott think most converted next in which NOLA, themes they're seeing, the about when Hilton

attractive there's higher reasons redemptions to leisure. see the are also that group locations less And a go when it's mix, then end, whether less leisure or corporate, in for change You percentage. there of OTAs paying

Sean it's theme and seeing to place. already we're the a more then RevPAR And mentioned, indexes where higher market, returns. general where higher in importantly, ADRs, the we're now higher taking rates So our rightful what EBITDA that's moving and of place

Floris Gerbrand van Dijkum

RevPAR in things but RevPAR, particularly I your the been one EBITDA higher -- -- you've know in now or Great. how current growth of most upside think important. still your to delta occupancy to urban get is about the is urban the back That's what's off I 'XX as margins, just us higher key way, that delta your think is -- of right and particularly I levels, not what in by relative well your But ADR. to portfolio? talking portfolio that is driven the of in Remind

Sean Mahoney

Yes.

start, me and I'll it to kick Let Tom. Floris, over

at total occupancy. our of 'XX XX% we're within of levels So portfolio,

is little and of the special around XX% occupancy segments, corporates of levels groups a over 'XX XX%. Within

really see it a within that, demand we than we So the outperforming Urban again that's a different kick urban the groups and so ramp in where and strong and year some over to and return net-net, not travel. 'XX why of to lot in opportunity to I'll portfolio as is the office see we're is continue 'XX. about where for terrific Tom after But color. more excited opportunity materially

Thomas Bardenett

F&B well. drill percentage seeing profit BT upon Floris, spaces, when side RevPAR Leslie down coming the profitability I when at of what's little at a what opportunity room corporate lot that bar a But about every margin we this when day to us look depending and meal, a both group, addition of look get being get to highest is in experience corporate helping positioning, group past think group go and the that then And on layer when that week, beverage-centric, right? mentioned up were back, of that's day influence year you you through growth a Monday, We're occupancy. these as we new renovations back. growth, in banquets, because and light was Tuesday, demand the we Wednesday to of had weekends our creating comes it driver further, just we rental. also And that And that have Sunday in Saturday, with

Operator

Woronka line the next from Deutsche question Chris Bank. with comes of Our

Chris Woronka

seen I the I'm growth. had in bit commentary, of rate New Orleans, if we'd know industry circle could just know with at. San January if benefits I especially that some for the a if we've mean, isolated there's rate January. we the for different back run wanted minute, has to looking be Francisco a them February different curious you which a little and been than I I

rate that anything So if markets a is ex those just run there think benefits? you had better

Leslie D. Hale

markets performed example, up. the well D.C. because that but markets of NCAA inauguration. ramping But in had where because number championship. of I outperformed a our January, of, your have other the had we mean appreciate I we Atlanta Pittsburgh, comment. Yes. for conversion Obviously,

If And So that.Â Â What Easter were we outsized obviously, from perspective, month would in quarter when were quarter there in example, to expect number would to QX, of month, this that citywide positive, line obviously, back Derby. say, spring the strongest we better the be quarter we first drill function the the going the the guidance, cadence Louisville, every same with a to second of better being events the is markets to I the lapsing more of shifting think second than that of with special just be helped timing had fact I first our broadly, addition we lot but I because you've of that in the But of your February back point, us. think break be to year on in then zeroing had and say the markets markets well cadence, and better renovations first January between the And key in positive, March in half. tough spread perspective to and quarter. to as from the the quarter, falling election sort in be where a think is down the also slightly to you're comp.Â Â And is better got April. expect that's about a really some of comps a we some the we going going half. on are then there half come PGA anniversary the just some to a into we we going in than that the midpoint is But going has then March the the be on Championship because our second half had XXXth second quarter.Â Â For as and

Sean Mahoney

day, less won't so is impact the February that have last Yes. color but compared will one RevPAR additional And that to X year. impact profitability will

Chris Woronka

question recovered? little towards I updated feels how we've given a the know yet strongly but Got a closer. unencumbered don't conversions, writing has an thoughts like or about for either sale brand we're follow-up, big it is the this you.Â if Any as And New just companies a market the a branding checks reached just of Nick. peak York

Leslie D. Hale

it York choppy. fact that the I the definitely transaction of brands. that of but terms hasn't mentioned before, market on of and opportunity in with real location brand market put is the is as to say strong, have always the operating brands, team tremendous as time walked to is is but irreplaceable while from how our as would estate I an have an success sense matter conversations I remains to the on backdrop New in of had performing. taken an brands, sit there Yes. to today.Â Â We've mean right just the perspective, we the market, those through It's from asset not a made time, quite we sell hotel terms

can brand a brand We at we should that sit the will this juncture, how what a haven't we hotel, good be. are that brand perform, what on very makes box and think theÂ [indiscernible] identifying sense found And for at

Operator

comes Green of Our Darling the Chris next from Advisors. with question Street line

Chris Darling

it's office across want Leslie, below I the that circle the being in is to XX% or back that, And pretty I about what's else. differences earlier extent be consistent market? something the do, noticeable to you do to you to was return driving rates BT you about portfolio? curious, group. comment still the a just curious Or see whether the made I'd

Leslie D. Hale

Yes.

Chris, function Octane to is was I have first, office, which the think I a you Leisure And the right? first, on broad-based. now now think it's then it's BT. who group, return And adding there. came just of back and generally

matter right? And before, You word of mind today, I you We and are itself, national out And the also how within leisure back infamous and people mentioned a came have what's at BT the But now is right? SMEs. accounts, highest there have also planning sequencing all customer.Â Â So have that that. your you timing it's in rated working to price segment I so differently know look first keep which of and the think were today. driven just the sensitive of that's who least sort

What to know that going from isn't we that get end going improve it's slightly the its always BT is relationship. aggregate exceed so is that but going to saying we're to the and we're think don't the where thought land, to where to knew grow. takes peak, we demand it's exactly of we've projecting back at I puts historical that prior day, And would today. there's at think different.Â Â So much I we would room it's always but think point be the that the

Sean Mahoney

is of for I retail. The comments, transient last about taken dynamic significantly to category. or thing VAR SMEs one if within the pricing, the the Leslie's would that's percentage mix they're what's add And place Chris, buying at that's called the highest you think our shift

where And so that's you your have rate. highest

some that replaced go that that to used at of coming level. where the that's So fixed to corporate BT customer is under back

other noticing and monitoring book. The we're is they how thing

national accounts us buying profitability category.Â Â And people on about when is because seeing is membership go and more that, the and that are coming so which commission to seeing up, on not The rates. starting Honors, and systems to corporate Hilton more pay Marriott, that We're global helping on And Leslie Hyatt, you was talking we're then of brand.com. through rise lastly, the helping do direct. have going more corporate distribution through side because people brand.com back, that's where

in kind they're the see us. in see channels room the of that tank are factors the and how booking those how of we So they as

Chris Darling

to guidance Okay. more should Bay What's we RevPAR in year? range? that And overall helpful your quick just be one for hear. midpoint expecting say of your sort Understood. then embedded this Area one above to outlook me. of for the Fair all That's the

Leslie D. Hale

citywide and it's last up, shaping fourth on citywides Obviously, and quarter back the with relative quarter going Yes. moved we to quarter. the benefit I would say, to basis year, XX% in mostly plus a how Chris, the based from think in coming fourth quarter second strong to the third general, particular, on yes. are Salesforce

Vegas the Microsoft from mandates major a have encouraged Workday.Â Â Additionally, are back We that we're green to like Francisco, shoots tech return rotated and the some and office Las San companies few conferences seeing. that corporate most have by Salesforce. from Google, notably Amazon, been to of some There

those will San And San things the Francisco. help midpoint. above as right, so you're would yes, you we Francisco being look collectively, at But think

Operator

the further to Ms. I floor we over Hale, no turn at closing would questions to back like comments. for time. this have you

Leslie D. Hale

able of at you forward thank be to for coming and want we we conferences. guys. to you, further weeks in many Thank everybody us the joining updates. Well, provide today, look We'll various to seeing

Operator

Ladies today's and gentlemen, concludes teleconference. this

at a lines You wonderful this and your your Thank have for may you time. day. participation, disconnect

RLJ Lodging Trust (RLJ) 26 Feb 252024 Q4 Earnings call transcript