Core Viewpoint - Associated Capital Group, Inc. intends to voluntarily delist its Class A common stock from the NYSE and deregister under the Securities Exchange Act of 1934, aiming to provide liquidity through the OTCQX platform [1][2][3]. Group 1: Delisting and Deregistration - The company has formally notified the NYSE of its intention to delist its Class A common stock and deregister under Section 12(b) of the Exchange Act [1]. - The last trading day on the NYSE is expected to be around September 4, 2025, with the filing of Form 25 taking effect on that date [1]. - Following the delisting, the company plans to file Form 15, which will suspend its reporting obligations under the Exchange Act [1]. Group 2: Board's Rationale - The Board of Directors believes that delisting and deregistration are in the best interest of the company and its stockholders, citing the burdens of being a registered public company as outweighing the benefits [3]. - Factors influencing this decision include significant cost savings from not preparing and filing periodic reports, as well as reduced legal, audit, and management costs associated with compliance [3]. - The Board aims to redirect financial and management resources towards a broader range of business opportunities post-deregistration [3]. Group 3: Future Trading and Information Provision - The company has applied for its common stock to be quoted on the OTCQX platform and will continue to provide information to stockholders to facilitate trading [2]. - There is no guarantee that a broker will continue to make a market in the common stock or that trading will persist on the OTCQX [2]. Group 4: Company Overview - Associated Capital Group, Inc. is a diversified global financial services company based in Greenwich, Connecticut, providing alternative investment management through Gabelli & Company Investment Advisers, Inc. [4]. - The company has allocated proprietary capital for direct investments in new and existing businesses, with initiatives including Gabelli Private Equity Partners, LLC and Gabelli Principal Strategies Group, LLC [4].

Core Viewpoint - Air Canada anticipates significant flight cancellations due to a planned strike by flight attendants, affecting around 100,000 passengers and disrupting the tourism sector during peak summer travel [1][4][10]. Flight Cancellations and Impact - The airline expects to cancel several dozen flights by the end of Thursday and around 500 flights by the end of Friday [1][8]. - The cancellations are a result of the complexity of Air Canada's operations, which involve over 250 aircraft flying to more than 65 countries [1][2]. - As of Thursday midday, Air Canada had already canceled nine flights [4]. Union and Negotiation Status - The Canadian Union of Public Employees represents 10,000 flight attendants and has expressed that Air Canada negotiators are not engaging in discussions [9]. - The union has previously opposed binding arbitration and believes the company is seeking federal government intervention [9][13]. - Air Canada has offered a 38% increase in total compensation over four years, with a 25% raise in the first year, but the union is pushing for compensation for all hours worked, including boarding and waiting times [14]. Passenger Concerns - Passengers have expressed anxiety over potential cancellations affecting their travel plans, with some reporting difficulties in rebooking flights [5][6]. - Support for the flight attendants' strike is evident among passengers, who are concerned about fair compensation for the crew [7][8]. Government Involvement - Canadian Jobs Minister Patty Hajdu has urged both Air Canada and the union to return to the bargaining table to avoid disruptions [9].

PART I. FINANCIAL INFORMATION [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements detail the company's financial position, operations, equity changes, and cash flows for the period ended June 30, 2025, showing increased assets and net income driven by investment gains [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to **$959.1 million** by June 30, 2025, from **$935.3 million** at year-end 2024, primarily due to U.S. Treasury Bill investments, with total equity also rising Condensed Consolidated Statements of Financial Condition (Unaudited, in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $249,360 | $299,551 | | Investments in U.S. Treasury Bills (>3 months) | $143,140 | $68,299 | | Investments in equity securities | $194,736 | $199,040 | | Total assets | $959,126 | $935,289 | | **Liabilities and Equity** | | | | Total liabilities | $38,702 | $36,991 | | Total equity | $914,654 | $892,706 | | **Total liabilities, redeemable noncontrolling interests and equity** | $959,126 | $935,289 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income for Q2 2025 surged to **$18.6 million** from **$3.0 million** in Q2 2024, driven by a **$27.1 million** net gain from investments, despite an operating loss Key Income Statement Data (Unaudited, in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $2,207 | $2,595 | $4,336 | $5,606 | | Operating loss | $(7,977) | $(3,674) | $(13,265) | $(8,644) | | Net gain/(loss) from investments | $27,081 | $(159) | $37,973 | $16,635 | | Net income attributable to ACG | $18,584 | $2,985 | $26,253 | $16,806 | | Basic and diluted EPS | $0.88 | $0.14 | $1.24 | $0.78 | [Condensed Consolidated Statements of Equity and Redeemable Noncontrolling Interests](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20and%20Redeemable%20Noncontrolling%20Interests) Total equity increased to **$914.7 million** by June 30, 2025, from **$892.7 million** at year-end 2024, primarily due to **$26.3 million** in net income, partially offset by dividends and stock repurchases Changes in Equity - Six Months Ended June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Balance at December 31, 2024 | $892,706 | | Net income | $26,253 | | Dividends declared | $(2,112) | | Purchases of treasury stock | $(2,193) | | **Balance at June 30, 2025** | **$914,654** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$49.3 million** for the six months ended June 30, 2025, a shift from **$28.6 million** provided in 2024, leading to a **$51.5 million** overall decrease in cash Summary of Cash Flows - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in)/provided by operating activities | $(49,267) | $28,623 | | Net cash provided by/(used in) investing activities | $2,109 | $(640) | | Net cash used in financing activities | $(4,315) | $(8,662) | | **Net (decrease)/increase in cash** | **$(51,473)** | **$19,321** | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's organization, revenue recognition, investment composition, fair value measurements, equity structure, and accounting policies, operating as a single segment in alternative investment management - The company's primary business is providing alternative investment management services and deriving investment income from proprietary investments[23](index=23&type=chunk)[24](index=24&type=chunk) Revenue Breakdown - Six Months Ended June 30 (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Asset-based advisory fees | $2,120 | $2,444 | | Sub-advisory fees | $1,934 | $2,951 | | Performance-based advisory fees | $31 | $1 | | **Total investment advisory and incentive fees** | **$4,085** | **$5,396** | - As of June 30, 2025, the company had **293,289 shares** remaining under its stock repurchase authorization. For the six months ended June 30, 2025, repurchases totaled **$2.2 million**[66](index=66&type=chunk) - Subsequent to the quarter end, from July 1 to August 7, 2025, the company repurchased an additional **31,640 shares** and increased its buyback authorization by **150,000 shares**[73](index=73&type=chunk) [Item 2. Management's Discussion and Analysis ('MD&A') of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20('MD%26A')%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q2 2025 net income increase to strong proprietary investment performance, particularly **$27.1 million** in merger arbitrage gains, offsetting lower advisory fees, with AUM rising to **$1.34 billion** [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2025 total revenues decreased to **$2.2 million**, but a **$27.1 million** net investment gain significantly boosted net income to **$18.6 million**, despite increased compensation and management fees - Q2 2025 investment gains were **$27.1 million** compared to losses of **$0.2 million** in Q2 2024, primarily driven by the performance of merger arbitrage funds[97](index=97&type=chunk) - Q2 2025 compensation expense increased to **$5.3 million** from **$3.9 million** in Q2 2024, mainly due to higher variable compensation of **$1.6 million**[94](index=94&type=chunk) - Unrecognized incentive fees amounted to **$9.5 million** for the quarter ended June 30, 2025, typically crystallized on December 31[93](index=93&type=chunk) [Assets Under Management](index=29&type=section&id=Assets%20Under%20Management) Assets Under Management (AUM) reached **$1.342 billion** by June 30, 2025, a **7.5% increase** from year-end 2024, primarily driven by **$49 million** in market appreciation and **$23 million** from currency fluctuations Assets Under Management by Strategy (in millions) | Strategy | June 30, 2025 | Dec 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Merger Arbitrage | $1,078 | $1,003 | 7.5% | | Long/Short Value | $228 | $209 | 9.1% | | Other | $36 | $36 | 0.0% | | **Total AUM** | **$1,342** | **$1,248** | **7.5%** | Q2 2025 Fund Flows (in millions) | Description | Amount | | :--- | :--- | | AUM at March 31, 2025 | $1,269 | | Market Appreciation/(Depreciation) | $49 | | Foreign Currency | $23 | | Net Inflows/(Outflows) | $1 | | **AUM at June 30, 2025** | **$1,342** | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$274.2 million** in cash and equivalents, despite a **$51.5 million** net cash outflow for the first six months of 2025, primarily from operating and financing activities - At June 30, 2025, the company held **$249.4 million** in cash and cash equivalents and **$143.1 million** in U.S. Treasury Bills[114](index=114&type=chunk) Six-Month Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Operating activities | $(49,267) | $28,623 | | Investing activities | $2,109 | $(640) | | Financing activities | $(4,315) | $(8,662) | | **Net Change in Cash** | **$(51,473)** | **$19,321** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Associated Capital Group, Inc. is exempt from providing quantitative and qualitative disclosures about market risk - The company is exempt from this disclosure requirement due to its status as a smaller reporting company[118](index=118&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective[119](index=119&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[120](index=120&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any legal proceedings expected to materially impact its financial condition, operations, or cash flows, with management deeming all matters immaterial - The company is not subject to any legal proceedings involving claims exceeding **10%** of its consolidated assets[124](index=124&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Associated Capital Group, Inc. is exempt from providing risk factor disclosures - The company is exempt from this disclosure requirement due to its status as a smaller reporting company[125](index=125&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased **21,241 shares** of Class A Stock at an average price of **$36.53** per share under its stock repurchase program Share Repurchases for the Quarter Ended June 30, 2025 | Period | Total Shares Repurchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 7,796 | $34.48 | | May 2025 | 5,211 | $37.04 | | June 2025 | 8,234 | $38.14 | | **Total** | **21,241** | **$36.53** | [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first half of 2025 - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in the first half of 2025[127](index=127&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q report, including agreements, CEO and CFO certifications, and interactive data files (XBRL) - Exhibits filed with the report include CEO and CFO certifications pursuant to Sarbanes-Oxley Act rules[128](index=128&type=chunk)

[Associated Capital Group, Inc. Form 8-K Report](index=1&type=section&id=Associated%20Capital%20Group%2C%20Inc.%20Form%208-K%20Report) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Associated Capital Group, Inc. announced a preliminary book value per share range for Q2 2025 via a furnished press release - The company announced a preliminary range for its **book value per share** for the quarter ended June 30, 2025[4](index=4&type=chunk) - The announcement was made via a press release on July 7, 2025, filed as Exhibit 99.1[4](index=4&type=chunk) - Information furnished under this item is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[5](index=5&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the Form 8-K exhibits, including the July 7, 2025 press release and the Interactive Data File Exhibits Filed | Exhibit No. | Description | | :--- | :--- | | 99.1 | Associated Capital Group's Press Release, dated July 7, 2025 | | 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | [Signature](index=3&type=section&id=Signature) The report was duly signed and authorized by Chief Financial Officer Ian J. McAdams on July 8, 2025 - The report was signed on behalf of Associated Capital Group, Inc. by **Ian J. McAdams**, Chief Financial Officer[8](index=8&type=chunk) - Date of signature: **July 8, 2025**[8](index=8&type=chunk)

Core Insights - The company reported a strong performance in its merger arbitrage strategy, achieving a return of +5.5% before expenses in Q2 2025 and +9.4% for the first half of the year, marking the best first-half performance in over 25 years [1] - The company anticipates vibrant M&A activity for the remainder of the year [1] - Assets Under Management (AUM) increased to $1.34 billion as of June 30, 2025, up from $1.27 billion at March 31, 2025 [1][3][8] - The book value per share rose to $43.30 at the end of the quarter, compared to $42.51 at the end of Q1 2025 [1][3] Financial Performance - Total revenues for Q2 2025 were $2.2 million, down from $2.6 million in Q2 2024 [4][32] - The company experienced an operating loss before management fees of $5.2 million in Q2 2025, compared to a loss of $3.2 million in Q2 2024 [5][33] - Net investment and other non-operating income surged to $32.9 million in Q2 2025, compared to $7.3 million in Q2 2024, driven by merger arbitrage investments [6][33] - Net income for Q2 2025 was $18.6 million, significantly higher than $3.0 million in Q2 2024, with net income per share increasing to $0.88 from $0.14 [2][32] M&A Activity and Outlook - Global M&A activity exceeded $1 trillion in Q2 2025, reflecting a 3% increase from Q1 2025 and a 33% increase year-over-year [14] - The company expects ongoing M&A activity to be supported by a more favorable antitrust environment and pent-up demand from acquirers [15] - Recent regulatory changes in the U.S. and abroad are anticipated to create a more favorable environment for merger arbitrage investing [16] Shareholder Actions - The Board authorized the repurchase of up to an additional 150,000 shares [1] - The company repurchased 21,241 Class A shares for $0.8 million during Q2 2025, with a total of 60,259 shares repurchased for $2.2 million in the first half of the year [22][23] - A semi-annual dividend of $0.10 per share was declared and paid to shareholders [22]

Core Insights - Associated Capital Group, Inc. announced a preliminary book value range for Q2 2025 of $43.20 to $43.40 per share, an increase from $42.51 per share at the end of Q1 2025 and $42.14 per share at the end of 2024 [1] Company Overview - Associated Capital Group, Inc. is a diversified global financial services company based in Greenwich, Connecticut, providing alternative investment management through Gabelli & Company Investment Advisers, Inc. [2] - The company has allocated proprietary capital for its direct investment business, which focuses on new and existing businesses, and is structured around several core pillars including Gabelli Private Equity Partners, LLC and Gabelli Principal Strategies Group, LLC [2]

Financial Performance - Total revenues for Q1 2025 were $2.1 million, down from $3.0 million in Q1 2024, reflecting a decrease of approximately 30%[90] - Net income attributable to shareholders for Q1 2025 was $7.7 million, down from $13.8 million in Q1 2024, representing a decline of approximately 44%[90] - The company reported a net gain from investments of $10.9 million in Q1 2025, down from $16.8 million in Q1 2024[96] Assets Under Management - Assets under management (AUM) at the end of Q1 2025 were $1.3 billion, a decrease of 18.1% compared to $1.5 billion in Q1 2024[99] - Total AUM as of March 31, 2025, was $1,269 million, reflecting a net increase from $1,248 million as of December 31, 2024[101] - Assets under management (AUM) increased by $21 million for the quarter ended March 31, 2025, driven by market appreciation of $33 million and currency fluctuations of $13 million, partially offset by net investor outflows of $25 million[102] Expenses - Management fee expense decreased to $1.1 million in Q1 2025 from $2.0 million in Q1 2024, a reduction of 45%[94] - Compensation expenses increased to $4.4 million in Q1 2025 from $3.8 million in Q1 2024, primarily due to higher stock-based compensation[93] Cash and Investments - The company ended Q1 2025 with approximately $870.8 million in cash and investments, providing flexibility for strategic objectives[88] - Cash, cash equivalents, and restricted cash at the end of the period were $317.4 million, down from $341.0 million at the beginning of the period[104] - The company had cash and cash equivalents of $293.9 million, investments in U.S. Treasury Bills of $64.0 million, and $202.1 million of investments net of securities sold as of March 31, 2025[104] Cash Flow - Net cash used in operating activities was $8.1 million for the three months ended March 31, 2025, compared to $1.1 million for the same period in 2024[105][106] - Net cash provided by investing activities was $1.2 million, primarily from proceeds of $0.6 million from sales of securities[105] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $8.3 million for the three months ended March 31, 2025[104] Tax and Incentives - The effective tax rate for Q1 2025 was 26.3%, compared to 21.5% in Q1 2024, primarily due to deferred tax benefits from a foreign investment[97] - Unrecognized incentive fees for Q1 2025 amounted to $2.0 million, with no material unrecognized fees in Q1 2024[92] Liquidity Position - The company’s principal assets include cash, treasury securities, and marketable securities, indicating a strong liquidity position despite net cash used in operating activities[103] - The company anticipates that available liquid assets will be sufficient to meet cash requirements as it builds out its operating business[104] Operating Cash Flows - Operating cash flows in 2025 were impacted by $7.7 million of net decreases in securities and $6.7 million in adjustments for noncash items[105]

Company Information - The company is listed on the New York Stock Exchange under the trading symbol AC[3] - The company is incorporated in Delaware with IRS Employer Identification No. 47-3965991[3] - The address of the principal executive offices is 191 Mason Street, Greenwich, CT 06830[3] Financial Reporting - Associated Capital Group, Inc. announced a preliminary range for its book value per share for the quarter ended March 31, 2025[4] - The press release related to the financial results is filed as Exhibit 99.1[4] - The report was signed by Ian J. McAdams, Chief Financial Officer, on April 7, 2025[8] - The filing is made pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934[4] - The report does not include detailed financial statements or operational results[5] - The information provided is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[5] - The company has not indicated if it is an emerging growth company[3]

Core Insights - Associated Capital Group, Inc. reported financial results for Q1 2025, showing a decline in total revenues and net income compared to the same period in 2024 [1][5][19] - The company experienced a change in leadership with Patrick Huvane appointed as Interim CEO following Doug Jamieson's retirement [2][3] Financial Performance - Total revenues for Q1 2025 were $2.1 million, down from $3.0 million in Q1 2024 [5][28] - Net income for Q1 2025 was $7.7 million, compared to $13.8 million in Q1 2024, resulting in a diluted net income per share of $0.36 versus $0.64 in the prior year [4][28] - Operating loss before management fee was $4.2 million in Q1 2025, compared to a loss of $3.0 million in Q1 2024 [4][28] Assets Under Management (AUM) - AUM at the end of Q1 2025 was $1.27 billion, an increase from $1.25 billion at the end of 2024, but down from $1.55 billion a year earlier [6][11] - The increase in AUM was attributed to market appreciation and currency fluctuations, offset by net outflows of $25 million [11] Operating Expenses - Total operating expenses, excluding management fees, were $6.3 million in Q1 2025, up from $6.0 million in Q1 2024, primarily due to increased mark-to-market expenses [8][28] - Management fees decreased to $1.1 million in Q1 2025 from $2.0 million in Q1 2024 [9][28] Investment Strategy Performance - The Merger Arbitrage strategy generated gross returns of 3.77% in Q1 2025, with net returns of 2.81% after fees [15] - Global M&A activity reached $890 billion in Q1 2025, a 15% increase from the previous year, with technology and financial sectors being the most active [15] Shareholder Actions - The Board declared a semi-annual dividend of $0.10 per share, payable on June 26, 2025 [19] - The company repurchased 39,018 Class A shares for $1.4 million in Q1 2025, compared to 117,354 shares for $3.9 million in Q1 2024 [19][20]

Core Insights - The high-end accommodation market in Qingdao is expanding rapidly, with over 20 five-star standard hotels established in the last five years, including several international brands making their debut in Shandong [1][2][3] - Major international hotel groups are increasingly opening their first locations in Qingdao, with eight out of the top ten global high-end hotel management groups choosing to establish their first hotels in the city [3][4] Group 1: Market Dynamics - Qingdao's hotel market is experiencing a surge in demand, with hotel order volumes increasing by 28% year-on-year, driven by the upcoming May Day holiday and a growing "holiday economy" [2] - The Marriott International Group has significantly expanded its presence in Qingdao, with multiple brands including St. Regis, Westin, and Le Meridien already operational, and new projects like the dual-brand Qingdao Jinmao hotels set to open soon [2][3] - The InterContinental Hotels Group has also announced the opening of its first Indigo hotel in Qingdao, emphasizing local cultural integration and unique guest experiences [3][4] Group 2: Economic and Tourism Potential - Qingdao is recognized as a city with international tourism appeal, supported by its strong economic foundation, including being one of China's major foreign trade ports and home to significant enterprises like Haier and Tsingtao Brewery [6][7] - The city is actively pursuing new industries and has been approved as a pilot city for asset investment companies, indicating a robust economic growth trajectory with a projected GDP of 16,719.46 billion yuan in 2024, reflecting a 5.7% increase from the previous year [8][9] Group 3: Challenges and Opportunities - Despite the influx of international hotel brands, Qingdao's hotel market still faces challenges, with 80% of its hotels being low-end, and only 2% classified as high-end, indicating a significant imbalance in accommodation quality [10][11] - The seasonal nature of tourism in Qingdao leads to high vacancy rates during off-peak months, with summer accounting for 60% of annual tourist traffic, highlighting the need for improved year-round demand [11][12] - The local economy's reliance on traditional industries and the lack of strong private enterprises contribute to insufficient business travel demand, which is crucial for sustaining high-end hotel occupancy [12][13] Group 4: Investment Strategies - The high vacancy rate in Qingdao's office buildings, currently at 35%, presents an opportunity for converting these properties into mid-to-high-end hotels, leveraging their prime locations and existing infrastructure [14][15] - Upgrading low-efficiency assets, particularly older hotels with good locations, could meet the rising demand for quality accommodations and enhance the overall hotel market [15][16] - Redefining hotel experiences to incorporate local culture and community engagement could attract both tourists and local residents, creating a unique destination within Qingdao [16][17]