PK - Earnings call transcript Q4 2024 | Park Hotels & Resorts Inc.

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Operator

Greetings, and welcome to the Park Hotels & Resorts Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded.

my Please Ian go now President, Senior to Strategy. Corporate ahead. pleasure is Weissman, introduce Vice It

Ian Weissman

Thank you, XXXX operator, Hotels & and welcome, everyone, Fourth and to Quarter Full Year Earnings Resorts Call. the Park

the laws. I would forward-looking remind many are Before we comments federal like today securities begin, made under everyone to that of statements considered

not results to and uncertainties are that As described the to with and risks filings obligated from SEC, these expressed, cause or numerous forward-looking future to update in our statements differ those are revise subject statements. publicly could we these

Actual XX-Q, contained materially those Please specifically future in in identify that factors which those Park performance, actual refer outcomes those statements. SEC, and and the most results important to risk recent by may forward-looking differ cause filed from with from forward-looking could differ reports to on results documents the statements. XX-K expressed Form

will as EBITDA. non-GAAP today's on certain financial discuss addition, such information, call, In adjusted and we FFO

information to X-K filed You yesterday's the well website our in find at financial on the as available earnings the release pkhotelsandresorts.com. with SEC in information GAAP comparable this supplemental with and measure can our directly as most together financial reconciliations

on Additionally, operating will unless a results otherwise comparable be stated, basis. presented hotel all

Dell'Orto, This results Sean quarter quarter our will Chairman details fourth Chief performance provide morning, Tom Officer, color for and further fourth on while Baltimore, Financial Officer, review on and outlook Park's our Chief Executive XXXX, provide additional and an guidance. will

will remarks, prepared questions. we our the open for call Following

call Tom. like the over I would that, With to to turn

Thomas Baltimore

Thank everyone. you, Ian welcome, and

our in advancing strong steadfast sustained for strategic to performance made saying for of capital by objectives, line operational building our top sector-leading long-term results, company's team's how while by further am begin multiple our Let achieved in exceptional the showcasing performance, and the expectations Operationally, bottom commitment quality and exceeded strategic investments year XXXX, a portfolio we and we've line I portfolio, success. which our of enhanced growth a foundation our both me the proud excellence.

On hotels. hotels reshape of were Accordingly, to continue joint the the X sold including ventures portfolio of disposed non-core to combined million divesting and for X that capital allocation Oakland by of hotels year, early the termination front, and $XXX a EBITDA which strategically during in we we loss closure addition months. ground million prior of the $X incurred the lease nearly a an airport, Hilton XX of over our

XX XXXX by while points. improved hotels basis by these RevPAR $X, over Exiting EBITDA increasing margin

intend seek portfolio, our targeting the of with enter sales further be we million enhance growth this asset debt. as and to long-term our disposition aggressive pay to we to down our more profile efforts, overall quality improve million year, As between we $XXX noncore $XXX of

As or a of sold XXXX, quality hotels XX the of upgraded billion, for disposed reminder, our we since $X meaningfully over have while portfolio.

sell into reinvestment As capital hotels. assets, portfolio shareholder our strategy allocating our on the core of laser focused remain returns, including we execute maximize of we to to proceeds iconic non-core

XXXX. it's at the million exceeding Casa XXXX the complex year and At last XX% million $XX or above over we up and increasing value $XX,XXX the Marina, which their in over exceptional redevelopments XX% Bonnet year the in at resort finished Creek Resort Creek $XX prior through XX% improvement Casa EBITDA is resort EBITDA per first have $XX RevPAR the since proud I'm post delivered performance almost increased Orlando, year. for over or XXXX at West. year, created Key of incredibly for key with has nearly property in RevPAR million, in and Bonnet recent Each Marina our XX% and since

the at up Bonnet both to ahead we XX%. XXXX, pace growth at continued Creek with complex revenue expect Looking resorts group

the we from its accelerate leisure park, which demand opening Additionally, new is billion expected into theme Universal's of opening Epic transient anticipated to tailwinds after expect May. market and the $X this

The the Nast in top resort a poised XXXX. as from lift Condé is a XX global Waldorf benefiting recognition further also Astoria destination for

share new Casa of For we as more resort in gains Barn from resort the year Front guest this place Marina, experience Beach enhanced as the its Key expect with continued market top West restaurant. recaptures benefiting an the Dorado

this expect year, the each value in these one and which resort of demonstrating key portfolio, upper further underwriting translating for our double-digit EBITDA each in produce RevPAR single growth of strategic ROI exceeding unlock ability to core We projects digits, to remains our embedded our our to growth priorities.

proven and elevate $XXX million our our it reposition in allowing excited prestigious Avenue through premium situated command value South in ADR to substantial to experience, to compete announce This track guest along to ROI record other creation Royal transformational investment and plans is the I'm Collins overall major property's ideally market lifestyle resorts of With Resort Corridor. Beach, designed Palm significantly the a quality increase. with the better projects,

guestrooms The addition all refurbishment full along comprehensive XXX will of encompass XX the renovation new with of a rooms.

spaces, bar, reconcepted We and will group the enhance a outlets new designed also overall to is food experience. beverage reimagine meeting space lobby including all and public expanded

scheduled World to us QX May of EBITDA Construction generate while reopen to on require begin of expectation in is ahead June matches XX% stabilized. begin our after XXXX, to expected with suspend the XX% of expect Based and will to to in the an hotel the the to Cup the doubling well IRR into underwriting, once peak of potentially of operations project we season XXXX.

additional explore actively to Hawaii, Barbara. continue Santa as and development Key such West markets key opportunities in We

now exceeds potential million. creation over an $X with incremental value of pipeline $XXX billion ROI estimated Our

which strategic value and capital in our disciplined we shareholders. long-term invest unlock remain we pursue We projects for our as to

gains coupled in group several by Turning urban business Orlando ended solid pickup most solid quarter New a in RevPAR Chicago, presidential transient to Boston operations. Key the a demand markets, demand on double-digit across West, the key We segments following with and strong in note, including QX and and following election, supported York. with

our during renovation group In Orlando, hotels, performance Bonnet revenues RevPAR by production transient over increased the I Waldorf X increased driven our across in with surge and am Creek, segment. of outstanding following last quarter. the the hotel nearly strong the year's gains during transient quarter in with leisure an solid Astoria the the XX% pleased particularly XX% revenues group reporting XX%

advantage generated increase of golf a ancillary guests course. Additionally, and XX% upgraded the to the revenues our hotel enhancements as facilities outlet took in championship

quarter hotel's to RevPAR exceed renovation XXXX increase XXX. the the index XX% reporting In hotel expectations the Key in with continued Casa improving West, a with to during Marina the RevPAR following

the particularly quarterly premium saw with occupied operation, and index entire spend performance hotel year competitive set night a in across XXXX. The including over per group was and total since nearly room increase a banquet ending of December up strong, XX% $XXX RevPAR notable XXX, the $XXX prior marking a versus ancillary of contribution wins the ADR highest over room, per period. the

X% X%. hotel enabling up strong power hotel's transient Notably, demand December the a York pricing fourth room increased growth New ADR the further momentum. group At increase the X% by Hilton, rates approximately expanded reinforcing in nearly the base, was nearly nights, RevPAR with and XX% rate the quarter during of X.X% quarter, group in during driven the to push were gains

XXXX expectations At which driving basis across with to over EBITDA performance. demand period. a efficiencies, seeing the Hilton point for Chicago, healthy growth strong year very XXXX, the in Heading nearly Hilton above combined the segments, XX%, all improvement was this operational margin growth prior-year contributed RevPAR is into XX Chicago RevPAR a

Hawaii. to Turning

As XXX quarter. iconic XX-day Village the RevPAR for Tower, strike, basis guestrooms headwind disclosed, at to the the during hotel our Rainbow total results collectively by coupled impacted accounting of previously labor disruption nearly portfolio negatively with Hilton renovation from at a fourth Hawaiian XXX were point a

for a resort during anticipate ahead, XXXX. start with a in Looking Despite we modest year-over-year comparisons very the first quarter. rebound challenging the solid

with rest growth by last solid expect quarter growth disruption. of for the aided year lapping year's fourth strike We the

from with of nearly room this to gains increase most along Japan, in by citywide travelers, we are year. a domestic in the expected convention see While inbound nights with increased be to activity continue demand driven XX% improvements

Waikoloa year. Hilton lower year renovation group full due was and RevPAR of XX% tough half where on to down our the comparisons second demand hotel, disruption At in the

in rebound sharp positive RevPAR a with group up nearly production expect in pace revenue to leading group XXXX. We XXXX growth anticipated XX%, in

to for Turning our the focus XXXX. outlook

election drive segments, will it's to supported accelerated year strong some which demand administration continue presidential cautiously the an November pro which feel by From by growth see following business more That a U.S. and demand momentum. how for backed firm resilient corporate said, the hotels. policies with hard economy believe how U.S. consumer, employment, administration's to to optimistic regulation, remains and we across remains, all this profit and standpoint, about macro on is a growth will will I in We unfold. new impact that the rational trends footing, continue predict uncertainty healthy all positive

total what control first growth. be comparison lapping tale made markets on long-term investments is to year, we growth a of for well supply X%. expect of is a the the which quarter For specifically, specifically, the Park based just growth positioned X last strategic tough in market portfolio believe we remain with every outperformed in about with beginning as laser-focused for presence as we've our to in can with well halves XXXX on we and More portfolio, portfolio a our limited that RevPAR

group single-digit X%, to business transient followed the segments growth. in rounding The transient with Therefore, quarter aided in the year. lap and quarter, by is out last leisure pace comparisons negative with the complemented we easier one we expected by low from RevPAR of strong to year revenue expect strongest the slightly second by half of as disruption strike be the positive improving and a segment first then remain second corporate growth

key For first comparable quarter, XXX monitor a basis about RevPAR Royal reflecting under administration. the economy May expecting of our new of the in including closure from as of planned the year, the Resort and cautious beginning X% U.S. we to developments several factors, the X growth are we optimism Palms disruption points slower top-line

will basis broader more in Miami, about growth X.X% however, strength Sean the provide his XXX to details at the guidance points by year, the prepared portfolio. the of reflecting overall improved for Excluding remarks. midpoint

year achieved wanted key XXXX our time. positioned summary, was we emphasize In growth over accelerated for which have I company that another that to transformative objectives in

X investments underscores ROI net our between repurchases, continue of which dividends at commitment stock returns our value. to shareholders strategic below and shares Our value, to million totaled asset return $XXX capital shareholder and to of values over strong million last yield year well maximizing

embedded significant Palm the We within with Miami, capital optimistic unlock as enhance value are portfolio our as long-term while the growth prospects our such repositioning our Royal ongoing core quality recycling projects our efforts. the about overall in through further portfolio we renovation of we

And to with the that, I'd over like Sean. to call turn

Sean Dell'Orto

Thanks, Tom.

we X.X%. As was very quarter were performance. QX noted, with $XXX, of Tom our RevPAR decline pleased a fourth

million adjusted margin were hotel exclude impact share nearly $XXX. EBITDA you the to expansion EBITDA quarter the XX the quarter was of while affected QX million, to activity at adjusted activity resulting XX.X% increased $XXX for million hotels, Occupancy quarter was hotel you $XXX adjusted basis if ADR points. from adjusted the disruption was QX if margin revenue year-over-year. $X.XX. were $XX million However, was strike EBITDA was was of exclude XX.X%, of FFO in in per EBITDA resulting X during the strike and or the QX from hotel X.X% $XXX in RevPAR and XX.X%,

XXXX, for versus EBITDA XX Adjusted per while hotel hotel For of the million, $XXX the was increased X.X%, share inclusive RevPAR and year was for was versus by impact adjusted $XX margin When million approximately basis XX points and the EBITDA adjusted XX.X% improved strike strike full EBITDA basis margin FFO of $X.XX. year. year or full year, adjusting up disruption, adjusted down X.X% was RevPAR last points.

Prioritizing portfolio. strengthening the In our X-phase tower renovation main of the and the Waikiki terms we included $XXX aimed experience of our in and room resort X-phase Waikoloa the XXXX, X,XXX the approximately assets. renovation guestroom reinvested work a Orleans as of the the Tower Rainbow Big and Hilton comprehensive a New guest million Island at resiliency Riverside. the upgrades This elevating well first the phase at Hilton at CapEx, during Tower on as guestroom at first Palace of famed into

are renovations total this extend the million. with In a year early phase we and of investment XXXX, to both Both in Hawaii renovations towers execute will QX guest second of scheduled final XXXX. $XX through of and in room at start

past over strategic the with franchise Royal which have were both Fisherman's models at a been Orleans, in X project, San Miami, to second the New we also months, and the in of of last hotels, X continue and Wharf Boston investment doubled rooms rebranded X guestroom converted W launch of operational $XX quarter year-end. is of of as Phase Phase partners has shift. through Newton hotels X to in begin Chicago we covered have including which in to Additionally, scheduled proactively This of renovation, year million transitioned excellence, plan nearly covering operating to which the Palm rooms. Centric Hilton XXX Denver, Hotels Hyatt our in year at our respect this impacted Francisco, the part With this Marriott in X

Overall, hotels, further This in a of key savings. strong to at our managers to to addition transition are we and diversification efficiency, excited greater operations introduces and upside very the commitment presence, and operator these anticipate cost about driving long-term each improvements focus growth meaningful with underscoring brand we potential as strategy. market

guidance. to Turning

establishing As growth year RevPAR Tom we full XXXX X% X%. to year-over-year or to $XXX of guidance are noted, $XXX of

FFO $X.XX. adjusted million between at basis a point or we guidance be be million $XXX share adjusted to adjusted margin between hotel in to XX.X% and forecasting EBITDA XX.X% of EBITDA expected are to $XXX to and to be is per XX decrease to XXXX the range respect $X.XX to forecast With the midpoint. earnings, While is

to Assumed in renovation the May is of operations Palm million EBITDA our suspend expected the to $XX XXXX guidance our scheduled in of associated remainder which with approximately Royal displacement is project, year.

renovation, hotel With operating the approximately would year Excluding midpoint XXXX. by respect X% expenses Miami our the improve increased guidance to X% by to expense full basis of prior guidance points over the to XXX X% comparable for the RevPAR year X% to at growth, period. implies

QX comparisons an the at benefiting in previously disclosed, closer RevPAR. with faces strong Looking tough performance, leading first exceptionally group from to results, X% as quarter, QX increase XXXX year-over-year

received of nearly million grants While impacted points employment the during last approximately positively EBITDA earnings year, by quarter state tailwind. were $XX in XXX refunds basis and resulting of tax margin

Casa tougher Boston the ongoing than lower year Valley. prior driven Bonnet comparisons Chicago, and Partially in Silicon at Marina. X.X% finished Hawaii, RevPAR period, by by strength XXXX January and offset Creek

quarter prior However, slightly And the portfolio compared performance we year last currently is to year. expected the to to improve throughout quarter. be down with first forecasts, last February anticipate to outperforming

At with dividend on $X.XX respect our fixed declared to share, a levels, February XX, X% yield. as to paid XX March this record to stockholders quarter be our of dividend, first to we of to of translates Finally, trading per cash XX. current on dividend April X.X% quarterly

This concludes our prepared remarks.

you the question and questions, limit please? follow-up. we may each ask we have Operator, now will first for to the question, your one yourself Q&A. We address To open line of one

Operator

you. Thank

Dijkum question Van with first Point. from is Our Compass Floris

Floris Gerbrand van Dijkum

laid million can half be to So target capital? that as of expect you've $XXX far to talk for got on probably versus tell, how assets, potential your least your through that spent of going non-core portion out, that buybacks? you left as sale. -- probably is Can projects What -- $XXX deploy of the only million us walk you we could non-core share covers disposition you've plan EBITDA a the another that's ROI I percentage to half your at --

Thomas Baltimore

you Floris. for question, the Thank Yes.

sort of I set. think to that level it's important

our as think I consistently capital. team, recycle ability to shown a we've

of of sold thoughtful achieve been or $X disposed We've obviously, year. $XXX the If selling you each about at very it, from year, we've spin hotels for billion. now, to we difficult back portion circumstances, been under objective about least million. that have even XX think able about Last that some

we've are environment to working in $XXX million. set about Tom diligently million his Morey, team and $XXX Investment our and aggressive target an Officer of Chief this

we're We can projects yields continue But this to and core invest wait we expect, capital. believe look we generate passionately at to that going obviously, in you how to will best that can than development use really we'll can acquisition point. from higher portfolio. for -- reallocate projects We our from

sort X. that's of point So

back want significant down shares time to NAV. will Point will use can that make as opportunistically, sheet possible. makes doing in And to gap from it We sure balance great proceeds And X, we laser-focused on quickly liquidity. to we I sense. continue to to continue really the then debt. to a buying got mean, shape that we that time to pay and the -- everything remains is as we've at in team trade obviously, discount where close is we look

Floris Gerbrand van Dijkum

obviously, pointed thinking Maybe it's billion is Sean. Hawaii CMBS flexibility, non-core more sheet -- cash your in I and Or will balance refinancing you my about sales. going How with is that think how Village sheet, how this to more $X.X on but is early, address maybe know you potential follow-up do balance the and have you towards 'XX? are debt look? on the you

Sean Dell'Orto

for Hyatt Hawaiian it's Village. and Floris. comment CMBS when reiterate question, would half the that to Regency of what second or you're due Yes, in to $X.X Boston comes thinking, billion you as Thanks mature Yes. say I asset include of the well just 'XX the with

have number access think the a of we I markets. capital debt in to end,

as talked But maturity the and with looking the noted, you some of thinking our strategies capital well bankers Tom our We doing tenure continue of about sales, about of as at to as this. through. flexibility weighing we're the talk table, cost monitor them, the I'll asset as timing certainly

that putting together, it of all is early. kind So

to Certainly, extent feel CMBS you'll the at take activity as go us off to of we least table. earlier. that change. take see monitor to it a like market conditions to -- look that continue compels maybe portion We We the

further in perform think obviously the would CMBS they there really I flow scenario lot to put in out of one cash even you'll see better a us address XXXX. continues that. a well say and that Hawaiian Village All back least a certainly and than as think So the debt portion I I more year, would said, this is we into go EBITDA lot is produced place at

it on supports of it a point. this even certainly So debt level higher at

again, I to proving have option. A bond an scenarios access last And we we as well look lot can goes capital. all that bank we But capital did first debt saying Term that that's the those back at again, that a of So we it's look we markets we it wouldn't again, say at our year, the option. have as look as this to solution. accessed we'll when as of well some to both markets Loan with

Thomas Baltimore

out agree to banks other said Sean the as strong the you Street And have I we the Floris, just gives paid a Sean optionality of The in would team as done have that pandemic, everything that that and with us about the back. when thing just anybody all has credibility even add, we the with peer job. is think coming our fabulous set.

at in right to really so balance. doesn't different already the under until And be you disciplined to find until team proactive, can expect and leadership, this of us Sean we'll Obviously, but front options. 'XX, out late the half mature Sean's be and it second are the looking of

Operator

Pfennigwerth Duane ISI. from is Evercore question with next Our

Duane Pfennigwerth

pacing QX growth what to lack like wonder QX, then from you year? that give kind total. get look if over the questions And is clients Maybe how course expectation of EBITDA. in or QX, you the growth total the weighted in the us one Hawaii can I stats of of the the in through walk growth to convert is in all of market we for

for lower So group a for that does growth How up example, XX%? like pace to asset? EBITDA translate that

Thomas Baltimore

Yes.

bit first about grab a can the it, the me Sean EBITDA of side. Let talk little part

kind set. to level again, of important it's think I

million about million, If you of $XX $X.X has into been of to me, have -- been about $X.X Japanese islands or excuse look that. $X.X plus historically, always the minus. million, north demand Japan million

If was around you it $XXX,XXX. back XXXX, look to

in still about $XXX,XXX We XX% above million. plus and probably year expected beneath then $XXX,XXX is now, the the to last year to ended down be $XXX,XXX visitors that about about current prior estimate year, $X still from or right XX% XXXX. range, This closer minus

still XXXX. So beneath about you're XX%

or including we're So international but up now, X.X%, about what seeing and plus that and -- up are are And the minus arrivals up XX%, last about think XX% domestic January. year were time international over as about same right are Oahu even about of X.X% covering in arrivals XX% year up are of into about plus from up you ahead includes or Japan deficit. about arrivals partially last some XXXX minus

soft, no look, -- ramp as doubt that. certainly, quarter up. that expect have that to we Hawaii know So the Sean outlined is going to We we is just going be first

obviously, expect, we We as we a properties increase, and obviously, year QX, digit And to outlined of to RevPAR the year end second and of Sean the growth. in the to expect, the in halves in X both of obviously, expect be the mid-single at low tale QX. with half significant

seeing So very I confident, very good trends. feel

Airlines going Airlines, we be capacity. Southwest their they're that's obviously to Hawaiian XX flights that, acquisition and just also of to obviously, expect that red-eye adding more adding, announced, going Alaskan be

get back which some the have is Japanese whether sort the of X.X into back, million continues visitors had 'XX, and the penetrate certainly Hawaiian Islands. to of in and we the be back over And seen, you're So to see yen that going to to historically the to go remains long see we're going 'XX of we time, but that that that Hawaii, we to the currently domestic will window doubt really levels dollar forecasting sort no we clearly, think be good settle term. away, surcharges traveler to travelers as

additional color let provide that, me on So with he'll it. it off some hand and to Sean

Sean Dell'Orto

that how not group an think couple go into through Yes. you about A under pace, to number there. including strong, say renovation components We Island. market into of group that back the of down hotels, I into kind comp I groups I of kind speaks a EBITDA with, think, would it, pace think if you had not strength mean of it's translate that it's to cycling formula very too detail. of set in -- much get in certainly conversion. the to But Big easy the ours

so activity. you're of benefits better there here. seeing looking coming to I group And for And think people their the product seeing go online and

you displacing XX%, That transient meaningful component, of on said, I about mean, are of and max that group is, it's say, of while demand would peak kind the asset. a I

great It's good. better it's So obviously catering get and you banquet contribution.

pace I demand, think for this be to are around customers. offsetting XX-plus look given group percent year transient you we that Waikoloa but up in

kind so profile points Waikoloa net-net X% in the only of being side, we XXX it, not asset, RevPAR but to growth higher of it's still where it's of RevPAR end what the would a year-over-year better we of that, but basis XX% you overall RevPAR transient, with on contributes in get think growth think terms kind to about the call addition for And a being again, growth, our say the RevPAR on group, impact the that I the about is portfolio I total when portfolio. what think room growth, somewhat see of for for certainly you of range to of

it. to contribute things of kinds those So

better you drive yield help establish to certainly and want that that and foundation think a transient. it's to I mix

uncertainty back, be of There's strong range. kind of certainly could but factors in comes could think garner upside that market to wider demand of that what that kind we that as back, -- as comes you bit with the So foundation. some little a the that's how

to -- lot all how EBITDA. it's translate it say a to to say that So does

end, I RevPAR the positive think in growth. you've growth, got positive revenue

you We some overall expense EBITDA. have algorithm of converting group pace well the manage as as the of to down think about assumptions to

Duane Pfennigwerth

thoughts. you. Thank the Appreciate

Operator

Katz Our next from Jefferies. question is David with

David Katz

Palm positioning talk everyone. back not to Thanks you've Royal When ago. for it's hot long just about within circle detail as a morning, so the fit wanted can it finished, far. copious just the all important there it I the laid project, having toured in market. right, obviously on Good too meaningful out? which big, intended does you Where its landscape Miami, of

Thomas Baltimore

great our an by a question, Mayfield, obviously, walked design antibody in you David. spent is lot There I lodging is think time and experience think way, the and knowledge, in construction sector, the in it's his David, heads the Creek, success that has you credit Carl have best-in-class. success in a demonstrates the think certainly sector about really you in who, it Bonnet recently of I And Yes, huge and Miami. record a our team Like down REIT our team, track Casa who that. with down his about, Marina.

really activate take that given buildings and how We have to the and and Royal more studied nature, historic of advantage for Palm carefully than year best bull's-eye a really the location. with given X

from that's back underneath Al and will all Regis you've North to Bahar Aman also coming, the what we seasons St. see end, the got coming, coming, level. X obviously, here, Andaz, the about I Miami open. close And that obviously taking all deck that. Beach, which it Palm Royal eventually Ritz-Carlton have that, you see step of and high the on We the Rosewood obviously, of and with South Beach being mean don't when tucked think Faena, the you and the not

customer And a lifestyle, see is accelerating. under we diverse in given varied and So but happening certainly Miami, upper that We think we just it's rate and we and that base. don't an what can see just what's raise really significantly give upscale down. tuck slowing

really about kind And we'll that talk the have really keys. space, we outlets, that passionately. believe EBITDA, So second and a product the changing taking making really a to of food pool with the the obviously views opportunity renovated on really room different believe as public and we that double more the XX floor we activated beverage operation and adding

So about this. are excited really we really,

create close the we right long-term really going this decision, business hotel, and shareholders. a but to right really to think to do it's for hate You value it's

don't excited about And slowing see we very down. any So it.

markets the all it's you certainly really all credit what sure carefully kind over those we years, Park the should, that are among last that from estate is been have we really not X markets, shareholders And it's at I'm get If look Key XX it's that the in of real the look we it's markets. well positioned. you Miami, quality Orlando, West. in Hawaii, have of strongest, the when the those of of

Operator

from mute? is question next on Smedes Our line with Rose is your Citi. Smedes

Bennett Rose

Can mute was you came in, the apologize. to asked there. asset, Creek on low Okay. it hear I it like in the me I wanted I million. on Bonnet $XX looks you now?

that's range of would think it upside kind investment. -- growth around just -- the post of target at of And organic sort feel you think this... of there's or just like you it stabilized you kind would do I Or here? significant kind more that's normalized of kind do sort you of

Thomas Baltimore

$XX Obviously, know, we given has Yes, ability Smedes, $XX Waldorf, obviously, up to million in in you multiple seeing rating up top EBITDA we bullish, first XX from not and globally. groups, really RevPAR are again, could XX%. as that, million, incredibly to be Condé layer going Nast more year, excited. and the the about a think the XX% that's, And

at we incredibly see Waldorf, on minus up are I up pace XX% think sort 'XX. you about another the group plus 'XX and now look We right of XX% excited, what in in at as at or Creek Bonnet

So we out. look we encouraged very as are very,

are is us The this really you thing about Smedes, citywides helps year that as Orlando. too, in up other think

the minus. or Universe, be or then, in plus $X to tailwind that's And Epic about experiences which be in a certainly for is reported billion the May, of minus. to plus So going And going spend market. XX is opening course,

going the continue we that's So to only that that's we certainly and in assets market to Orlando. Creek think and benefit our Bonnet to think overall benefit going

Bennett Rose

could Hotels And I it so more. Chicago ask improvements look one of myself, if just talk maybe help I been about maybe in Or embarrassing Or risk I I switch then they've at ask does the that brand like Okay. W you this, anyway. you maybe requirements? could just will missed And little The just a on was renamed. bit? expect And operational that would you there? CapEx wondering,

Thomas Baltimore

Yes, obviously, be nimble. part family, we both flexibility leaner, the we both that sides. on having to think, both having Tribute operators think, think the expected, new both obviously, more of We and

decision. excited very that we're So about

remarks, As converting in operators. Sean case, model, In franchise we're Marriott changing, staying within this prepared we've out X family. also the his really changed noted a to certainly

about decisions. these So excited really

win-win to our happen, make our year hard discussions very in credit worked really a for last plus and to think everybody. Again, that's we team over with the that team management development Marriott asset it's and

Operator

is question Bank. next Chris from with Deutsche Our Woronka

Chris Woronka

ones those So few franchises and think, I if whether pretty a bit the I deeper. Chicago Marriott new, on Lake times. the could longer-term a just because go known you can little Tom, -- maybe little follow-up on well are bit a ones that independent Shore attribute bit that comment I to was think with the little a with it's shopped that

the with the is assets -- what how sell this impact or unencumbered brand? being encumbered buyer ability change or them does to done view And your you've long-term as by might so this

Thomas Baltimore

having looking Marriott Marriott wanted it we time And new caliber spent was either brands. of the more And we obviously, negotiating. gives for. Chris, us of didn't asset think situation, lot W a in again, actually a think obviously, optionality, being were a those more of in soft optionality really those having of with franchise We terms Yes. operators what

if monetizing and selling that the we balance. and So decision we're demonstrated And right will create that are asset -- we confident that. certainly we've do to means here. can we outcome at time the But or right how arrived right We'll we found again, look we've value. continue shareholder the time as

Chris Woronka

good. Very Okay.

on on staying if could. similar a that's at And follow-up, a that renovation, kind a there Tribute, but is but franchise question, renovation. reset kind of sounds I contract. does post like the I Marriott, mean Miami you staying in Just the of the of It

if see first to Is are the I reset Or that for you a for still going I in there like Tribute think that remember. in you was of kind XXXX, much some be one tributes there? to portfolio to are optionality wedded portfolio old longer going on a -- of the period? Starwood

Thomas Baltimore

Chris. Europe. We've been there long all time, have a We optionality around significant in

that themselves, features, the us. reimagine and with that design under how working feedback to same the current that's been is and In going Tribute the this food change, first speak space, certainly partner Starwood for the great really beverage structure. offerings. with They fact, it that, are thrilled but we're has And point. but with term can is our the understanding the they and we've gotten with can't as was been well mean doesn't our public Marriott our at program, a It

excited very are about We this.

have again, running a the going we've hard World Cup that hit the incredibly strong a to team, out confidence shout will deliver year. more out. at this the than our And year season, end and of with for ground as for we we're peak And planned next who worked to

Operator

question next from is with Our Chris Green Street. Darling

Chris Darling

specifically. how curious walk on York your Hilton there? also as Would property your New about your market I hear you would the expectations through your thinking to be can year? And for be at you're perspective overall well Midtown this Tom, curious about as margins then additionally,

Thomas Baltimore

about we're York, I about we we're think been the X%. and quarter, about I market in pace I think decline. for you New up looking Group mean, up year, little increase 'XX, think supply the south XX%. in so There's to X% continues ended 'XX, mean, overall in and York, obviously, just of think X.X% in I about if fourth full RevPAR New think, I

And and since X.X%, Manhattan X%, flat think think X% supply just XXXX. in I think, I XXXX. has in X.X% clearly 'XX I fallen,

restrictions and Obviously, look, So stronger helped imposed that some the required New been Airbnb the of has to turned York have market. a have be market. out

X hotels share Our groups. only gain really there large hotel handle that to can continues market and are

existing here nights, operator digits encouraged. a to to down our Obviously, be year expect a as going terms bit will comment the quarter, when no little in in on with think we're group in execution. that suspect 'XX. So XXXX we're finish going -- to probably contract 'XX, but low be doesn't we until room that got labor I've expire RevPAR I I of still will the the start single that engage we that to we're but first

remain optimistic in New we cautiously York. But

you to solid it think you office, about what's return I market. about and a happening, York think think about be visitation, New continues think to

Chris Darling

a X right. about you see helpful days? Or any transactions, more, deal All appetite one-off think of really little anything the Thinking buyers just transact do scale, you bit. increased And like it's transaction shifting more market, gears perspective, then That's a private thoughts. a just that? situation these to your portfolio at kind of among do curious still

Thomas Baltimore

on capital the Yes, rumors $XXX Chris, there's it's that question. private includes to that midsized players. large are of Obviously, also equity some real you a estate great some of some the obviously, would expect, sidelines. kind billion players includes of small

family operators. are seems but certainly would buyers you're to I got say owner and narrowing I is improved slightly. going sellers that and expect, have officers see I to the to You've between markets gap open. the Pricing I want perhaps, sellers. think think debt don't capitulation, obviously,

half probably to market transaction second of the this more improve expect to continue would the year. I So

there rates in, obviously, coming certainly a impact about, hopefully, with regulation, There's tariffs. come that of in, including start the policy lower still while obviously to with the sticky. is I being new of growth, inflation point, think decisions rational some While optimism uncertainty. more administration, uncertainty taxes. the And pro At still talked but expectation of some little there's are

second and but active and our up think to others be the the year. a of But peers we really expect and I we we transaction that So see. market see little fully expect optimism, to in the are would more pick still in of there's half going bit wait

I we're demonstrated XX even said we I last as pandemic, close X done. you we've when in look, the years years, -- our from we prepared to mean, assets, and we think in move hotels said I we've Chris, difficult have deals the et been demonstrated circumstances, deals international as I the earlier, -- in cetera, think and we've again pandemic, X and remarks able active been get and

So continue that I execution from us. of to kind you'll expect see

Operator

Truist Our question Patrick Scholes with next from Securities. is

Thomas Baltimore

Patrick. Hi

Charles Scholes

any Canadian that travelers you tariffs? the international most travelers, the seen propensity You is Canadian of your visit with and whatnot all attention from amongst Florida. know Have properties travel international on inbound to traveler the given impact to to important Florida

Thomas Baltimore

a question. we not The this have It's answer is point. at great

half to as about still of monitor about point that the coming you from and continue you think correctly Canada inbound that. We Mexico. out, visitation as And it's and

seen and not certainly and slowdown we strong, any are but and or point. our So remain at this at softening this we particularly Florida properties encouraged point, have

Operator

Wedbush Securities. Our with from next question Jay is Kornreich

Jay Kornreich

Good morning. Thanks much. so

question wide for XXXX. pretty range to to ask a a outlook the Just going back There's EBITDA. adjusted for

low curious, any you that just was puts the I more range? considering can give end you to So of that and the versus you're takes if high might lead of end the

Sean Dell'Orto

quarter, we a you're the through. standpoint. talked think opportunities the lower range with line from I there to of you're Again, end for starting for conservative softer wide starting as think we just widen range -- a kind that We as certainly of us one, first the negative top about, EBITDA with to given. starting Again, well the certainly the X%, I out puts ultimately think, X% typically we've

really that up seeing kind QX pick opportunistic about think you starting an from equate saw that of back levels or Hawaii And we've levels. to get standpoint, we kind through seen of to and to pre-strike

question kind the much the helps, top be think, that how of of kind in drive the so of that can the just through range. and opportunity will again year I build And line recover

the about of operational potential to think and in start of the slower just any the sense, transactional the say start I the kind quarter kind more QX. for more So of QX wouldn't think you when In I the year Hawaii operational, it's there's -- conservatism really kind for of for of anything it.

Jay Kornreich

But you or be first quarter? New benefits, as Hawaii. market just you Orleans, other And in Maybe there that as of of think core as comments other should performance we being onetime naturally, is in halfway inauguration Bowl in in so terms far D.C. the had Super any as outlined just portfolio comp the we're tough in mentioned, Okay. the such through there some a just quarter, with then some is markets

Thomas Baltimore

strong, very encouraged. is very Orleans New Obviously, Yes.

you -- mid-teens up in softer to X%, we the and a X% probably a headquarter think, up teams, probably we location RevPAR We in think Orleans. there there. first down had given I hotel. one just quarter, was the and X% -- New were the we As range at little January X% in were But looking and of had

So certainly strong. very

first Hawaii very in as Sean certainly as good the going pointed a very half stats enplanements, then year, we're already. out, as And Hawaii, about of we Florida both look feel gave and you is of softer No the tough some out. And second to but we pointed as as particular the had in comp a And what out, we're and and well encouraged. in the seeing And very, I as look we're I be there, of surprise domestic. arrivals, Orlando quarter. we out in in what both international seeing to little both

of as that So look plus the the certainly expect we out first single-digit low down encouraged minus, range, quarter balance in very but or year. for

Operator

Robin is UBS. question Farley with next from Our

Robin Farley

XXXX, be is when a On year year? not you that Or talked ramp next about that that you to? would rate would Is understanding Miami, you there. full doubling you by think at up that EBITDA something

Thomas Baltimore

of X mean, we're a obviously, normal But I South how certainly of that in rate Beach, the obviously, Casa underneath But on when as also that and product premier you're excited would that transformation you've right and us think, of the above kind in both dependent that see tuck the opportunity. seen, quick about doing. sort as ramp-up -- the very and we given sort kind really we in about to we us, Bonnet, opportunity have of I talking mean X be that we've I I seen a that and to would market pretty push and years, is we're high-end gives Yes. ramp-up. bringing location would think

Robin Farley

QX. on more X just maybe And Great. Okay.

call be in a was X And that QX. driver about in QX as large still helping in something would a versus of year's of kind decline? or Easter there at given Just shift, being property last particular you the up the group are or maybe would talking Is out leisure something demand 'XX others that of the 'XX. sort

Sean Dell'Orto

Decline -- year versus last sorry, I'm decline year? this

Robin Farley

said being from others there's while out in leisure RevPAR, QX to you And I last it obviously of else QX, of or isn't shift. about was kind there specific QX? in up kind calling that, year. that again, being recurring talking others But to X% something year Others are particular still there know for your just benefiting up comp. are while sort the something of to in growth if was last QX wondering, are pointing Easter guiding you're leisure Yes,

Sean Dell'Orto

Yes.

the in had Robin, it was would that it as strength leisure think strength. also it in we in we've across say transient February terms than broad-based. January, -- more was I of before, was was mentioned I of We've our in markets. group end, a strength and number had some March centered it probably

relative QX was So bigger kind more of shift driver March. specific performance saw in of we what Easter impact certainly of to a it's

Operator

is question Dori from Fargo. with Wells next Kesten Our

Dori Kesten

we think Hawaiian X this at a for the to Waikoloa offset those perspective effectively Riverside tailwinds RevPAR of renovations phases how Village, year? from year? And and aggregate start each of should other next about the then Do

Sean Dell'Orto

some say overall, of it's top bit and had it's think part, little see so I first this beginning some Phase in maybe don't bottom Village a impact not think essentially obviously into they it's of line lap basis to to of the disruption Hawaiian in week impact XX the the Hawaii, the X And year. dramatic at we've line all. XX But other. I'd or each a Yes, Dori, I impact We had. to of points January

Dori Kesten

then your assumptions All operating this year. regarding growth right. cost for just And

we at surprised think just labor the a headwinds. range little the given were end cost bit I low of

some walk lower are there you low that growth it relatively can assume should does So just fewer us through, FTEs, markets some highlighted be assumptions? insurance

Sean Dell'Orto

-- of ultimately of elements overall little little the I offset X I bit certainly to negotiations kind are of kind nonunion on X% range. a mean little standpoint, say, the X-ish, general, in are around Clearly, cost of a kind elevated north Union kind range in in -- the inflation by certainly higher that of X% X.X% inflationary are more. kind end wages from costs. of a costs would in that are and Yes. it's

together, wage and rent kind put standpoint, like of kind from that insurance, all So to us a guidance. helping elements that range in think our by as that to think of of utilities you kinds probably X.X% about things offset of X-ish, costs midpoint kind of down in are of offset digits, to about our -- mid-single other that it's put

occupancy assumptions about into that have lower If driving you expenses. there's go think some you'll there's less that, less clearly, that, that end,

Operator

question Hargreaves with next David from is Our Barclays.

David Hargreaves

soon? guiding top plans you're everything flattish that the So I'm spend-wise, a I on market to debt you going know wondering to of accessing have picture. with that's be if sort But

Thomas Baltimore

million have we've going sell, this optionality are that in been a gives need working debt at of got $XXX said, revolver. over really last you're liquidity, time. pay We've in markets plus capital or to we've the access really years, to change. consistent $X.X about about that minus. don't to see debt also and noncore to few million obviously laser-focused and to billion which and Obviously, pretty down our with be We reinvest strategy the We've not the into $XXX going assets, a got lot us portfolio. We to back recycle and as

think team and the are the as the experienced next what gives thinking next strategic other we and we as think seasoned and year optionality, will, very options shareholders, our and as about about year team but and we'll maturities think We company. of lots us about full here we'll already creates a optionality and for the for maturities value carefully most about have well Sean

David Hargreaves

think expressed And wondering policy? a at just you've that's range. the comfort Xx to that's past, the leverage-wise your if still I'm all updated I if in in level X

Thomas Baltimore

near from sort above Obviously, and sort We were than X Yes. inside It's that's that at a a here future, the of X year able point at that, happen. some be still Xx like make whether of that of guiding Sean normalized, to or at in certainly to principle. we'll we and higher really a little I, we X, a get day confident were we'd X pre-pandemic. is will but X-ish we're certainly sort

Operator

Our next question BMO with Markets. is from Aryeh Capital Klein

Aryeh Klein

disruption the anticipated going $XX year. can EBITDA Maybe to will reconcile the renovation. back May it? this for related I into Palm open hotel disruption can million of million. about wondering, the It help just maybe you expected to you 'XX looks like was that? $XX if you in But help is about did unpack XXXX Can Royal the be

Sean Dell'Orto

of only Yes. the kind of numbers. the of I mean, in a hotel, does are But still all certainly, our team carrying of we that down certainly good job kind the shutting digging establish through back cost to disruption we place ramp manager that fixed of have not Maintain back a look costs standpoint, we to we as but come kind in to teams and need out have. from up. a still there

year, factor carrying costs it's through of Aryeh. So a just rest of the the

Aryeh Klein

BT X% something for but the year, else? is And to it your it. standpoint, on just guess, that reflective low like guide RevPAR Okay. midpoint. is, looks is maybe RevPAR improving, up on a at leisure guidance Got then Is maybe conservatism some single group case digits. Or is I X.X% -- the of it And grow part? plus expected the

Sean Dell'Orto

Yes.

business. the We've or I you we think we're year, ourselves kind about in establish XX% a early, way understanding as we as to got that of think, starting so the think again, we're it's want of the right term in unpredictable. get now. of side to group nature And forecast some certainly, on the is obviously the and group short our kind reach books on transient to side, there's very

just want now. level right And things kind of And so there. to set we feel good

see have not things in come the think I to we past, fruition. somewhat

think I realistic the year. here And I start so a think, taking, just to we're tone

I has would remains demand our mean, in be segment, been I segment late. say, stronger to of which yes, the business But pattern. is, I moderated solid. Leisure, Group is a think transient again, continues largest

-- it's right of digits, even flattish. it's now, low single probably So kind maybe

given. comfortable as the with predictability the we've the So range look the think and feel that's outlook, I we of of kind business, we at kind -- of

Aryeh Klein

in If just I could clarification. one last squeeze

or be of? XXXX tax benefits, the the is there guide anything aware had in 'XX we on guidance, that nonrecurring like 'XX that should some Just one-timers

Sean Dell'Orto

baked Aryeh. No, nothing that into

Operator

Tom There at are back floor time. to no hand further closing to this comments. Baltimore like for over any I questions the would

Thomas Baltimore

and soon. and taking and Citi We safe the we XXXX appreciate are of laser-focused forward I here conference about many to time and forward you of everybody Park travels to today. at seeing look excited look many you at seeing

Operator

This concludes conference. today's

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

Park Hotels & Resorts (PK) 20 Feb 252024 Q4 Earnings call transcript