AINC - Earnings call transcript Q2 2019

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Operator

Good day, and welcome to the Ashford Inc.

Second Quarter 2019 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jordan Jennings. Please go ahead.

Jordan Jennings

development. welcome for conference XXXX the update on and results to and everyone, you Ashford for second recent day, to call today's review to Good quarter of

Hays, On Co-President Eubanks, the Financial Jeremy Officer. Chief and Co-President Officer; will call be: Chief and Strategy Officer; today Chief Deric and Operating Welter, Robison

been distributed call listen-only basis has over results as of by notice release a The covered in the accessibility press Internet media. on were yesterday financial as well of afternoon a this conference the the that

statements conference from included At pursuant the materially in and These that uncertainties assumptions, this differ not of forward-looking statements time, certain forward-looking harbor the regulation. to cause statements let and conference of revise this made or are known the call, made which contain obligated and forward-looking filings could the me date is as are the discussed to remind and subject risks, Exchange with them. you assumptions company's results or of to in call being securities those update provision the Securities or upon numerous call based are are unknown publicly safe information in more The are fully federal to only this company anticipated. actual this Commission. Such factors

have also or which all information Also earnings those of are XXXX, XXXX Each to provided release and in of addition, X, www.ashfordinc.com. the quarter quarter In XXXX. schedules, through non-GAAP the be are stated, encouraged second filed second call together company's reported accompanying unless to certain at SEC discussed accessed all the otherwise review of website terms X-K release. results reconciliations in compared provided used company's provided to is with in which the in the other tables August release call measures, reconciliations on in may financial on this earnings Form and been this with listener

call the ahead, go sir. over to Robison. turn will I now Please

Robison Hays

Good of welcome agreement will to call to definitive of provide giving our second on financial Trust. discuss quarter Return our I Hotels ERFP Ashford Holdings. discuss with update then XXXX. begin results held management overview recently Remington morning, Funding acquire our privately of by business our the and quarterly & also brief and will our Resorts announced results an for Program to Enhanced I'll hotel or the Braemar and a

Afterwards, investments strategic Jeremy and provide I'll results, conclude an answers. up as Deric our questions strategic will and financial with then investor efforts. open initiatives, as review will our well other update for our it regarding update and on our we initiatives outreach will an then

the strong performance the financial success the platform. operating the we are are and for second groundwork We and pleased of quarter delivered in continued with laying

and XX%, increased net share was revenues income adjusted the by For $X.X $X.XX. per was quarter, adjusted million EBITDA

Ashford Inc. our believe results with they is a demonstrate to and growth platform, these benefit and we strategy. are the pleased

in sometime industry. scale, to in Holdings. close business I'd to fourth an low which announced held, will now Remington recently management enhanced of the diversification high-margin, discuss hospitality immediately hotel Ashford CapEx quarter for XXXX transaction expected the is agreement acquire of and competitive add The like the position our privately to

REITs. also our breadth we the to We'll services expand offer of advised

new for we clients. moving management its and streams diversify compelling industry mutual advised deep business business of believe to opportunity represents in the with a place the Ashford potentials our hotel agreements REITs, to further Importantly to experience with and acquisition a expand exclusivity forward, Remington's earnings

success cycle. Remington's of in hotel significant record of phases business hotel hotel economic property track years independent Remington the over the of company demonstrates hospitality the in with is quality experience service in the an management business, understanding top all management. a XX providing of area

services Trust representing with for a full-service over management Remington's hotel select-service and portfolio of cost-effective XX Remington's properties states hotel Braemar. management of Columbia. business of the both and currently rooms over consists hotels and brands Ashford XX,XXX dozen hotel provides District almost in XX comprehensive across

time, little will At forward. third-party has opportunity Remington's currently of of the REITs, focus advised an immediate -- management an our outside very be hotel and area business business which growth going this

Leisure Strategically, Pure includes after management Project of will asset Capital. Wellness, JSAV, growing we to our and the OpenKey, Premier businesses, list hotel-related this add our Hospitality Management, business, completion transaction, RED hotel property of management & Lismore which

advised mobile provide These management, architecture, room Now hotels. services, property services project rights asset management, hypoallergenic services, acquire sports the key services, to platforms hotel sales design, hotels, water exclusive when hotel hotel property rooms and we management, construction will financing audiovisual activities. services, services, include services of REIT those measurement, our all to have these procurement, advisory

this updating Financially, to income rapidly net about adjusted share. closing potential approaches builds increases earnings this be scale, immediately per later is expected transaction short, look and transaction opportunities you provides to this operating accretive to forward year. we are excited and surely as the In

now ERFP to designed Braemar does year this I'd very at Braemar, with million to The Braemar a simple update from Ashford commitment Similar growth strong funding investments on which Ashford. Ashford strong to produce at returns is in Ashford with agreements Trust, and $XX hotel ERFP Trust. fee and way. our announced it our was with an provide like ERFP on earlier this

assets. That in and to lower capital equity can equity has effectively improve into paid to the Ashford returns and investment. Braemar, hotel order materially put Ashford amount has customarily equity from it of Braemar reduction Braemar incremental of fees in-turn, Braemar a provides its that receives

acquisitions ERFP Town, La At has closed Square Cruz/Scotts Fe, that Times Santa its and New make we Suites of Trust. Posada the to Braemar place York, Embassy $XXX in on have Tahoe we million ERFP Alexandria Also, $XXX with progress the million. Lake Today, with Today, Hilton of complete continue to Trust Old Ashford for XXXX Ritz-Carlton ERFP de including utilized Valley. Hilton that Santa Ashford utilizes have acquisition Manhattan

approximately $XX million original the XX% Trust of commitment. utilization bring acquisitions with These ERFP of funds Ashford to

is to ERFP. from While as over anticipated, $X months, saved the I'd services further past to result for over of as we taxes also management million in ERFP. estimate we like growing that shareholders adding of hotel list have our the working increase point a XX we out businesses could ERFP that returns

forward, strong at repeatable. Trust drive Moving we structure, ERFP are predictable companies all future the these line excited about as we the is, positive we Braemar. prospects involved. their believe an the as Ashford of Ashford we for Bottom sizable, returns -- can drive innovative believe benefits is and With that and for can programs well and

most we our we built to leverage of discuss to our one advised. others and expertise the is our our management around And company competitive have I'd consider the of now which effective strategy, margin industry one industry like stable highly ability We teams combined to advantages. has the our team we the both and it growth platforms hospitality believe in in acting and like of our aligned, us from distinguished shareholders main grow

advises as REIT which with approximately platforms, two and together assets Braemar, $X.X XX, traded and of June publicly Ashford Ashford XX,XXX gross XXXX. owns billion approximately of Trust currently rooms XXX hotels,

be fee-based high-growth a fee multiple with business a to We is at it believe generators. Ashford attractive diversified margins. scalable platforms platform with model

previous stipulate level of agreement of the cash year's flow at base very least basis, REIT Additionally, as at XX% stable the with base the a advisory the that fee a fee. maintained is

their that share to versus on in advisory incentivizes return shareholder with outperforms fee a their shareholder performance incentive driven We place have structure Ashford based value fee performance and create our platforms total REIT our its base at by price fee peers.

management Our primary focus team's maximizing returns. is

Currently, is growth. focused our company areas on of X

our accretively platforms. to like First, we existing would grow REIT

like Second, add would we investment additional to platforms.

our on Project to hospitality Lismore Management, working we or Capital OpenKey, our -- asset management including Premier RED & platforms advisory accelerate leveraging connections and relationships working and Then we're to diligently we investing on through Pure Third, Wellness, their buy, businesses incubate and industry Hospitality are our expertise, can related Leisure. growth the dramatically. opportunities JSAV, with

the and assets subsequent based common excursion & West Leisure RED leading all $X.X approximately end, of for million Key and now services cash a provider Sebago, stock. of set of in substantially million Hospitality this Toward end, quarter in acquisition activities watersport $X.X to completed we of Florida the Ashford's

potential XX% price seller, attractive multiple was times, an to trailing return After period X.X The $X.X April financials of adjusted investment. XX-month giving adjusted the ended Hospitality. in XX, the was provided Based believe the based million. on the Sebago's EBITDA total approximately the the unaudited effect on on equity EBITDA implied for own RED represents XXXX, we by purchase which Ashford will common transaction,

investments We all for for platforms. continue of and two are about be to our advisory prospects excited the our strategic optimistic

and shareholders investment incubating opportunity great superior by Additionally, businesses. deliver platforms hospitality-related well additional as other as investing platform our adding for we returns to this grow see in and to

and end, since active On potential effort believe base XXXX, that our broadening we're analysts, with investor areas and shareholders. existing investor important investor having relations are we sell-side To a front, of over shareholders an focus. outreach XXX held meetings we've beginning

Over well focus wide the to We a holders. these range expanding and our should base. which to provide have of number investor smaller targeting coming planned funds investors we've and as attend offices months, conferences investors retail a of to mid-cap for as industry-dedicated turn to at opportunity meaningful in positive investor impact story, further dialogue to our tell conferences will on investors, believe with a the potential exposure continue providing family

in Day on New at the City October and see to of hope Regis plan Investor We many York also you St. Hotel host to X, there. an

turn I Deric. will call to now the over

Deric Eubanks

income common second for quarter year per diluted the net with million loss or diluted or Robison. of quarter. share per for share stockholders to attributable $X.XX compared $X million Thanks, $X the $X.X Net was prior

market second prior Adjusted the adjusted rate was revenues second $X.X million growth quarter, diluted $XX million the second was quarter of million. year income $XX.X At reflecting company corporate share. $XX.X diluted the had in for For and million, quarter the currently $X.XX quarter, fully a cash, end the approximately per $X.X have of million XX% EBITDA capitalization the the quarter. total net for a equity were over or second we

units. stock as shares options relates restricted diluted we with issued treatment for minority XXXX, of under deferred strategic plan some our investments balance million compensation common stock earmarked associated issuance had $X.X for million had shares options, stock. June and shares X.X the to the in-the-money put the our June company and Also common interest outstanding, XX, GAAP XX, total common X.X and of fully of million and At

In preferred X.XX series shares our include common also million from B our financial results, we stock. convertible

our $X.X at we of quarter, purchased its million the Embassy of Suites Manhattan with Ashford Trust as Square. York, from Times the FF&E part ERFP commitment New associated During of acquisition

Braemar quarter the of acquisition our Ritz-Carlton of Additionally, during from the and end, quarter, million Tahoe. $XX.X with ERFP Lake subsequent we of its associated purchased part as to FF&E commitment

I will now our discuss Jeremy turn the call investments to to other over and strategic initiatives.

Jeremy Welter

Thank Deric. you,

and businesses accomplishments services strong and products hospitality quarter. second our results the on updates and the provide to excited are We during

fully, we that in a To the initiative grow products this strategy services industry, hospitality strategy operating explain our in strategically act service more companies. industry, where and companies and the is invest unique an these as accelerator to we investment

to our so, and pricing establish from attractive vendor. an able we doing able a higher levels companies third-party our would in than In ways our number industry we by to hotel by a they synergies receive providing hotels platforms, owned We're REITs grow service believe are best-operating advised portfolio to also for practices. of by consulting them our vast relationships and on of by leveraging referring

ownership, on provides the development, branding of focused the we hospitality Their first to growth procurement and Management comprehensive Project Premier services in full project profitability initiatives design, have and exercises accelerate been over and several three management executing long-term. industry. architecture, cost-effective quarters and

that $X.X the XXXX was quarter. February in period in second $XXX,XXX architecture early which for of with through revenue seen second and the the returns million Premier's service, new end, have of we revenue architecture launched To quarter on architecture year-to-date

May. owners, institutions payment of Secondly, We're Donald services a in expertise property the excited he and managers other as executive recently appointment with recovery industry. Kelly to Chief Premier industry and hospitality and in opportunity Co-Chief veteran about CenterSource, as are Executive deep excited Onyx Commercial to commercial solutions. about an served of Premier's the accomplished and most a we joins Officer BXB processing operational of leading and Don expand provider Officer the as our

revenue and of In the second adjusted of million quarter, EBITDA. $X.X Premier million $X.X generated

adjusted the For million generated and period revenue of the Premier year-to-date through $X.X quarter, of million $XX.X EBITDA. second

to We see business. this going for continued forward opportunities significant

show leading and a event needs of hospitality and single-source services, design for and Including audiovisual suite is meeting integration. integrated an services, JSAV and services services. with solution event creative

second XX% We outstanding for the quarter the period with continued to prior-year quarter and at in to company the see XX% revenue through year-to-date growth compared the the compared period up period. prior-year to the second

compared with company's in already providing prior-year first March, achieved the of first April records upside three of of monthly BAV in Furthermore, up Additionally, the is months the BAV XXXX full second meaningful acquisition our quarter the during May BAV revenue in revenue XX% quarter to ownership. period. and

the the and $XXX XX ended to June markets hotels trailing and for XX, by including incredible million highlighting into grow combined months share. an scale future over revenue its increasing to company market ability For gain pro BAV forma is and additional into achievement the XXXX JSAV

transitioned cost initiatives hotels. being executive the optimizing to services future and implemented optimizing and Chuck and to sharing continuing CEO, Bauman, the optimize growth management Additional performance, integrating by retailing integrating include company's ramp-up new team profitability BAV support highlighted business and newly processes show a sales of unit

per the Ashford management room up satisfaction night scores hotels level. revenue the to XX.X% highlighting in incredible and prior service continue average results up from asset We provider, positive AV also with average from X.X% customer integrated JSAV's group JSAV see

XX second X to and In non-Ashford representing centers with and in growth. hotel end the executed place JSAV contracts to at convention XX compared hotels X XX% the new contracts hotel XXXX, of of increasing number quarter, the multiyear contracts Ashford

the by of hotels we XXXX, in engaged owned beginning have advised JSAV REITs. Since XX our

We at JSAV can partners After with year. AV believe expect opportunities two growth ramp-up, hotels. hotels more by there our to so the significant the in it operations JSAV for we end to hotel, JSAV take the still or Ashford year are a for of have

integrating more hotels the internationally a in as leading for outstanding given service the opportunity industry. JSAV the provider in tremendous reputation a in and see U.S. We company's

hotels RED other U.S. Hospitality the watersports opportunities VI with U.S. including & the the and Leisure other activities in expand expansion travel the to of Virgin elsewhere We remain is platforms, advisory a growth leading in provider our prospects and market. excited into transportation and Islands. company, expansion the services at in of Caribbean

closed all West, of water Florida, Key recently Hospitality Ashford's of of RED in in approximately the leading substantially stock. Sebago, end, acquisition services excursion of and million provider and in activities that To a common the for cash assets sports million $X.X $X.X based

provided the period total seller, attractive for $X.X believe we implied X.Xx, adjusted return Based The represents the ended trailing XX-month was EBITDA multiple which April on on unaudited purchase the million. financials an on adjusted potential Sebago's by is based XXXX, EBITDA XX, price investment.

provider highest-rated the With the into over X superior West XX customer market. track tours new of strategic Key of years in Sebago business, premier excellent maintaining is history, integrating the and services. of watersports excited and operating XX excursions, which has TripAdvisor's, we're services Sebago an grow about opportunity markets record to

direct and charter Hospitality, St. St. Thomas Additionally, beach rental significant services business. and bookings and to to we and operations Ritz-Carlton timeshare and sport continue including the St. water water the the and of increased see Beach of Westin property Club, RED Hotel Services the the Transportation existing ramp John to Ritz-Carlton the adjacent services Ferry to sports Thomas private

$XXX,XXX XXX% of prior-year adjusted In generated XXX% EBITDA through quarter, the over Year-to-date, XXX% the company growth and revenue quarter, of growth, million representing respectively, generated adjusted $X.X period. second and the year $X.X XXX% representing EBITDA and the prior revenue respectively of second the and over of million the company $XXX,XXX period.

RED of year the about the year-to-date adjusted going quarter has second Hospitality outlook the more EBITDA Moreover, growth for XXXX. period full the through than optimistic remain company in X.Xx generated forward. We for

to additional coming in We share hope the in evaluating companies, on active some remain to more that details continue investments and operating in front quarters.

call will we Q&A. And remarks. for open prepared our the up now concludes That

Operator

Maher Riley take FBR. our Thank question from you. B. We'll first from Bryan [Operator Instructions]

Bryan Maher

hear you me? Can

Jeremy Welter

Yes.

hear can you. we Now

Bryan Maher

Okay. A questions. of couple

that acquiring, the how outside of come pool managed hotel expanded hasn't to of a business Remington the kind hotels Ashford helpful. here? Just that be acquisition would previous the little there you're On history

Jeremy Welter

No, it's Bryan. question, good

that concerns, business. Archie first I when wanted had think because on that of at had those of launched the to the view they rationale conversations on they primarily Ashford, early and there think times be we Remington by had did Monty been think they Ashford I I been focus

REIT, Trust Some think and a -- worth of time value Ashford perception sort to private sort I that they have amounts demonstrate in energies they net of of they had company outside that a of time were extraordinary want stock management and that any lot and one public this the they the or spending of an at alone, so this of lot kind and didn't and conflict of companies the public companies. that you wanted their Ashford

I it sure them so then was more Braemar. Trust and for to and execution focus on wanted at was that And later of value just think maximizing Ashford there they make

more really of strategic REITs. it's a of -- a other given more of broader the less decision, decision So think, financial I

Bryan Maher

RED and then Okay, and Sebago. moving on to

So expand from expand West. the Florida I Key the Key Florida or know it thought Keys West Sebago or What's just on throughout keep throughout in the the there? it to growth Is plan general? it process in

Jeremy Welter

Jeremy. is This

So within service a plan We to ones the well as Key and don't in revenue and expand Key from of other we U.S. some be our West that to pretty expand the resort opportunities some throughout sales of Islands of side, of because the offering be a believe to able that West which a at well perspective services, services we could the of some really it additional in the lot same as services own practices our initially lot some that our think they do that charges, West. RED we itself. our as expand booking some leverage expand does synergistic do is have the the to in tours, Virgin Key of some we

but really branding and another into or from watersports markets, the Sebago that haven't we West, identified -- we sub-brand not within have go we Florida, in when we'd made we'd go Key to increase or a of which elsewhere outside the or whether or of Sebago RED within expanding watersports, U.S. into is perspective that of additional like use terms In the markets certainly RED determination

was This strategic a for acquisition us.

the actually we little I it find of the getting on into a our it high that think slips other be that and business is West to Key lot in limited markets lot because Marina the is of very different you'll will markets, entry and other markets. go a has because of into the amount a has. barriers when expansions creating incubating bit own

Bryan Maher

Right. And pretty X, islands. The to and big big period a a year X of do a let's and you for kind say RED how is a then of of place lot flipping there's of think kind again second. Caribbean a back lot I resorts you of could RED grow time? in mean

Jeremy Welter

Yes, I a detail go if opportunity know projections perspective, I markets into to from great don't to into there we're in Caribbean. certainly but level of think that the is that a prepared expand other

focused within more I Florida. initially think be we'll

we see other or or You'll we that both if businesses buy expand these add services. we them

into so at flow doing know, you a post-close, and a to when contracted to we planning thought does generate and the it business. that reinvest cash cash Key you as We're take fantastic go are it it Sebago, continued originally and of cash expanding attractive cash and and return. as at EBITDA rebounding amount at the cash decent but flow the a it cash returns we're was X well it business look up West is actually Irma When performance but multiple, on very, times very we from was because

themselves. of RED it name. then for actually and it was just the ownership different distributed operated and kept under Previous flow a cash They

is continue plan very grow Batchelor So I to at excited RED leadership, know it. Chris do to we because our

one we're of more to much that per terms initially going know than In year. market do I pace, don't

XXXX to a of another to experience another expect into a very experience are that scale at you create and offer for is we then really market or you have experience in point, would then have and we and or in that to Sebago that I So scalable Islands, whether infrastructure from you market, that not get feel really you. and two maybe similar get but we're to trying that probably an market if at XXXX have Virgin U.S. positive that market trying company the

Bryan Maher

but And the half then shares of they of in there to the where which I is just back are were I'm the me at issued equity treading, million Deric end shifting at probably cash $XX said where wrong, if component second does that time correct lastly, are quarter, last the you trading conjunction of the cash ERFP, Inc. think with Ashford

when you additional with expand consideration as would into be expanding flow go it Braemar? equity inclined consideration? of opposed cash capital not so and that borrow Trust kind is great a the to that ERFP? Or it's raise Or to to comes Does to issue to ERFP

Jeremy Welter

good we these intention prices. mean, of sorts question. we that's have of equity a -- Bryan, don't I at I mean, raising any

from cash ability So at but is of perhaps ERFP, a I sheet, and some of wanted some to the would and think we cash I expansion loan look there to. the that funded if balance other because be of some get additional existing we when by mix to facility on of sort think it potentially financing, financing facility, credit we credit we an do flow the turn have could undrawn potential

that if I route there So private is wanted capital as go could do there we is to well. and even we that think --

opportunities to ERFP. expand a of access to variety there we is So cash want if

assets call, in the the As here share Reach the prices now, of to given trust are was unlikely it in the they on that market right seems near-term. kind buying where be are discussed going

So all potentially upsize, when forward it there. account move take from and looking closer in we to will factors get to those

Bryan Maher

And can it $XX another none million, you is up million? or another or all upsize $XX not necessarily it an

Jeremy Welter

may there that and things agreements, time, I'm to changes when want both but updates to platform sense in million be on issues of if and additional that could each sides think an in terms that for it question. sure we a that these said and just a improve. contract tweaks come mutual of by I duplicate point it kind may it kind The That's it good prewired on existing $XX and

we and some and we it's structure, improve both like may the there to not put for thought we perfect made mean, we absolute it platforms that I together sense created ways -- be better, as probably and would so it have an X.X, ERFP it part to it. whatever and we'll, there anticipate improvements I'm of make some and is tweaks sure, I would changes

Bryan Maher

helpful. Okay. That’s Thank you.

Operator

on Tyler And Batory Markets. you. to Capital with move Janney we'll next, Thank

Tyler Batory

thank Good Hi, morning. Nice you. here. quarter

So the for on ruling? I the just missed a transaction. few Remington follow-ups private me. I discuss of here, details just few start a letter Can apologize but to you the if proposed

if to a I think letter I recall few private that the correctly, there years was previously involved ruling. a hurdle done that ago getting

can front? on So what's you changed about talk that

Deric Eubanks

Yes, Tyler, this Deric. is

ruling private another about independent for IRS purposes the we're So contemplated ultimately, REIT to X years when of And the process as transaction private ruling. was and hotels Braemar Ashford for eligible the letter this we through letter relates went continuing managing with ago Remington qualify in-acceptable Trust. to the to able and an there get contractor not

is will private so structure the be and letter we closing able is of that still ruling need feel has to That the conditions we that the would been of that letter time, transaction. in within an of so not private still confidence idea it get it to the we received this yet to one had process, But level ruling. get completed higher in-acceptable

Tyler Batory

to the with pool was that? business significant layer do third-party mean, maybe cost we're know the this, a manage? you of but just structure Remington, you Ashford helpful. to that some it you to I amount to additional not at you talk to in to And Okay, now expand maybe on think the Or about early bit have when little outside shift I try hotels already what got need about the a then a That's that hotels do opportunities and strategy of right it. add

Jeremy Welter

Yes, this is Jeremy.

as of of marketing that little would couple terms costs, development bit added, additional to a position Chief a then be costs of cost, financial traveling, general costs, need as support and Officer type positions some and Chief be positions perspective. there's also Officer, Investment entertainment In Development those business from well analyst some a

be the lands we'd Aside Remington. a with to hotel, from anticipate and for actually new get that, Remington third-party when new does the contract incrementally profitable that business business very

but of lot be operating a not costs, cost need that So added. business some to development

Tyler Batory

And cost is Project an switching going? structure And perfect. your the provide in your How gears and there? some growing margins, versus also of third-party that Management. business? you underwriting curious then that to as the there I'm Can Premier update how as Okay, expectations far of that's

Jeremy Welter

Yes.

I think today were even acquired we we're more than Premier bullish it. on when we

into suite of a opportunity As different for individually management. really our that we our for to architecture, seeing for by individually maybe design, groups do for expand get of individually business the there offering marketplace, ownership to amount is tremendous we're project that's typically individually contract procurement, services

advantage. basically start and someone I to the project competitive big come can entire run We from to and finish a think that's

slow that at familiar and planning capital were year because to typically budget do do of renovations. way that decisions a full with with upcoming a groups the grow the those the a and terms is made want work they little business, the of you're lot it to In they what process and end is timing

lead-time I of don't offering think challenges business, renovations we've successful and we done. do new bit little will have new some but we business getting that a a have associated we because is there So with pretty have that compelling getting very

up before ability to the never for necessarily had is renovations, incredibly at ability not that complicated that on into Thomas, to but our very and owned went you autographs, by has certainly been being which If they just that are are branded Ritz-Carlton just if skeptical off not anyone Premier's other being also to ability, very aware we courtyards the incredibly, pull renovation. Marriott we two the done done year, I'm then the being when it and four Braemar, in Ashford, that's this one Premier complicated were they St. off, look pull

of impact still that's where where have Nashville, renovation the in Convention Nashville old be and think upon, group they the to four of overall able and Center we to a a underlying a they didn't for I of incredibly, ongoing operating doing and sequence but able really those company assumed hotel and had In a the execute lot major, transformation business of were they're it's to we that renovations, anyone major incredibly hotel to simultaneously. be renaissance challenging would the that was renovation hotel

can if you St. and well conversion see what you in and to to you'd if fact to and that you we've as Philadelphia pulled travel Philadelphia, what's see you as Nashville, and I done incredibly you St. and incredibly, And quality go we be that that we there at done at you if Francisco what's budget. and been San did with Thomas we've tell done see going go Thomas, I the off the in on as plant the think within impressed see the go

Tyler Batory

I that. you you bit, on a And very acquisition, rattled for the Okay, as discussed helpful. little me, JSAV, last off on question the that. some the numbers growth BAV appreciate for already that

provide of you drive business? are little are a And can high? forward? the more those a of to that is What bit growth mean, about the I REITs so if at going detail doing growth some why you high level sustainable

Jeremy Welter

well. as This is Jeremy

to think is, close One three the as growth and I a months. they of last BAV, components. up XX% think they I in there are incredible had couple were

that. for I credit think any can't that we

I a think timing to benefited prior just and on unique the and business that books bit year piece is of was little they before. that the was part really that actually and had just down was and they acquisition perspective put timed were the from of that able well we good a that we very some

company a done, achieve to we've going to When with to course. you looked company, and JSAV combined and is that be of JSAV BAV now the growth within we've which over that able been

within they have not but growth pretty been phenomenal It's existing third-party able just portfolio, by achieve only ownership been additional and new our it's landing been with to business groups. other

options folks And additional perspective. think is gain so options they clients really groups business audiovisual not the reason the in also very provide they hotels, that of folks then is expanding put of done and who've different they hospitality speak good have naturally share ownership to to I space those with the or as a those clients are a why companies and those very, JSAV so clients like a retain JSAV because relationships, offering in management anymore able from are unique hotels, they to but wallet have the about existing their and and lot of there

stems segment, in And you at job show services a good look did have well then and over, believe, done with corporate be business, X business of their years, recently it's different client fact, a of business a on millions with a as big they contract execute piece totally when executing large of that I that with multiyear dollars. they a multiples but which you'd familiar that of just is piece

a done job they've growing. great So

similar they as would the the hotels the the down I it, growth expect But So future. some would that of have some in year would ramp going anticipate that up. slow forward, probably growth little I of model balance bit through to I as a would

Tyler Batory

Thank for you. me. all Okay, great. That

Operator

take Argus our Research. we'll And with Thank you. next Instructions] Biggar question from [Operator Stephen

Stephen Biggar

Thank Yes. you.

about up I For on was addition. the the Premier's that -- services it's from of so for a revenues revenue Premier release it X% architectural new nice looks line like about the project, about quarter picked

forward? I'm just term? that understand going is over to a line wondering figure a I'm you new on Are partial trying that good longer So And if a expand of going if as could a X% if quarter run those forward? that's activity? nice growth revenues of that a potential Is business. rate just accrued contributor contract

Jeremy Welter

it's good just our think do outsourcing companies any different existing of we just we on started recognize opportunities closed what Premier the I February, at do assumption. we we We always we and we is, what architecture within and a in architecture that sense. as are that look we and Yes, any did make didn't all probably doing and

we out built architects fantastic, out incredible and in hired February. that rolled So up quickly very some it went and business and

a there X and little of architecture maybe is bit, third -- we'll parties. were and and a over Year-to-date more utilize to our the couple many in-source ongoing almost projects more ramping essentially not that you'd little think total months. of we'll assume up a Maybe were I because outsource continue we continue higher that as time, bit percentage to it's of

Stephen Biggar

impediment, of announced funding programs burst in each program, had initial you And was as you the I then but enhanced been guess, mentioned of maybe soon and pricing, an the it after more activity Okay, thanks. that has terms quiet. of

you any is as set? the opportunity just give could there -- on update So any

next changed that this to at Has at maybe macro broad all? environment XX deals anything Is else just And strokes today's in additional there XX months? be in that might point? the hindering

Jeremy Welter

or significant material. know I if there's don't anything

I where that don't we'll opportunities. them. usual anything on But on think outlook. think see if have more continue we've they I for here looking been recently that right materially we if changes And that that jump as doing as it's we come,

Deric Eubanks

ability REITs bows one acquire challenges capital really that down question that be the to cost their I would Yes. of that's of one to of It is the and think the accretive and things assets today. the for

Stephen Biggar

have. I Thanks. great. Okay, That’s all

Operator

the over conclude Thank And would or closing to I does you. question-and-answer session. like turn back conference today's that any now additional to for management remarks.

Robison Hays

earnings joining us Day call. New our we forward second on quarter and on on again Investor our in hope for see to you next York X, you call. Thank We our speaking with at October look to

Operator

time, you now Thank participation. We teleconference. At today's may you. does appreciate your do That disconnect. conclude this

Ashford (AINC) 3 Aug 192019 Q2 Earnings call transcript