Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $15.6 million, adjusted EBITDAre of $72.9 million, and adjusted FFO per share of $0.51, reflecting nearly 12% growth in adjusted EBITDAre and nearly 16% growth in adjusted FFO per share compared to Q1 2024 [6][14][32] - RevPAR grew by 6.3% year-over-year, with same property RevPAR for the 31 hotel portfolio at $188.73, occupancy increasing by 80 basis points, and ADR increasing by 3.6% [6][19][24] Business Line Data and Key Metrics Changes - The Grand Hyatt Scottsdale's RevPAR grew approximately 60% in Q1 2025 compared to the same quarter last year, driven by a transformative renovation and strong group production [10][23] - Group room nights were up 6.6% with ADR up 4.1%, and business from the largest corporate accounts grew approximately 15% compared to Q1 2024 [21][36] Market Data and Key Metrics Changes - Hotels in Washington DC and New Orleans benefited from significant events, contributing to RevPAR growth, while the Houston market was softer due to winter storms [8][20] - The company’s same property portfolio grew RevPAR by approximately 3.4% in April 2025 compared to the previous year, despite the negative impact of Easter timing [14][32] Company Strategy and Development Direction - The company completed two significant transactions, acquiring land in Santa Clara for $25 million and selling Fairmont Dallas for $111 million, reflecting prudent capital allocation [11][12] - The company plans to reduce capital expenditures to between $75 million and $85 million for the year, a reduction of $25 million compared to previous guidance, in response to macroeconomic uncertainties [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite macroeconomic uncertainties, noting that all hotels are in luxury and upper upscale segments, which may be more resilient [17][39] - The company expects RevPAR growth to be driven more by occupancy than rate this year, with strong non-rooms revenue growth anticipated [33][39] Other Important Information - The company increased its quarterly dividend by 17% and repurchased 2.7% of its outstanding shares during Q1 2025 [18][31] - The balance sheet remains strong, with a leverage ratio of 5.4 times trailing twelve months net debt to EBITDA, and no significant debt maturities until late 2028 [30][31] Q&A Session Summary Question: Have group booking trends evolved in response to the current uncertainty? - Management noted that group booking activity remains healthy with no uptick in cancellations or attrition, indicating a positive outlook for group production [42][43] Question: Have you seen any meaningful impact from lower international inbound travel? - Management indicated limited impact from lower international visitation, as the portfolio is not heavily dependent on international travel [44][45] Question: Can you provide background on the Santa Clara acquisition process? - The acquisition was a unique opportunity from the city of Santa Clara, aimed at eliminating future rent escalation risks and increasing asset value [49][50][52] Question: What is the plan for deferred CapEx projects? - Management stated that they will continually evaluate deferred projects and may consider executing them in 2026, depending on macroeconomic conditions and tariff impacts [54][73] Question: What trends are seen in leisure business? - Management observed varied performance in leisure business across properties, with a slight decline expected in RevPAR at leisure assets overall [61][65]

Financial Data and Key Metrics Changes - Comparable RevPAR increased by 2% year-over-year, while total RevPAR increased by 1.6% [4] - Hotel adjusted EBITDA margins increased by 54 basis points, with hotel adjusted EBITDA in Q1 at $61.3 million, reflecting a 2.2% growth over 2024 [10] - Adjusted FFO was $0.19 per share, an increase of 5.6% over 2024, and free cash flow per share increased by 10% to $0.63 [11] Business Line Data and Key Metrics Changes - Urban hotels saw RevPAR growth of 5%, driven by group and business transient segments, while food and beverage revenue declined by 3.3% year-over-year [4][5] - Resort portfolio experienced a decline in comparable RevPAR by 2.1%, with total revenues slightly up in January and February but down by 4.3% in March [6][8] - Group room revenues increased by 10.4% year-over-year, with urban hotels seeing a 14.4% increase [9] Market Data and Key Metrics Changes - Florida assets experienced mid-single-digit revenue declines, with RevPAR down 5.9% [8] - Outside of Florida, RevPAR increased by 1.7%, with notable increases in luxury resorts like The Heights and Vail, which saw RevPAR growth of 7% and total RevPAR growth of 9.5% [8] Company Strategy and Development Direction - The company is focused on adding groups to resorts to enhance pricing and profitability, while also managing costs effectively in the face of revenue softness [9] - The company plans to continue share repurchases and is exploring refinancing options for maturing debts [12][13] - The outlook for 2025 has been revised, with FFO per share guidance unchanged at $0.94 to $1.06, and RevPAR outlook adjusted to a range of -1% to +1% growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains unsettled, impacting group lead conversion rates, but expressed cautious optimism for the second half of 2025 [22][24] - The company anticipates that demand for drive-to resorts may increase due to economic conditions, while foreign visitation is expected to be softer than initially anticipated [20][21] - Management highlighted the importance of maintaining liquidity and flexibility in the current environment while focusing on increasing earnings per share [80] Other Important Information - The company repurchased 1.4 million shares at an average price of $7.85, with a total of approximately $16 million in repurchases year-to-date [12] - The company has three mortgage loans maturing in 2025, totaling just under $300 million, and is considering a recast of its corporate credit facility [12][13] Q&A Session Summary Question: Preliminary portfolio-wide RevPAR for April - Management indicated that preliminary April RevPAR is showing better than 2% growth [31] Question: Impact of tariffs on renovation costs - Management stated that renovation costs are complex and depend on the timing of orders and tariffs [32][34] Question: Profile of average group bookings - Management noted that group bookings range from associations to corporate events, with average hotel sizes around 200 to 250 rooms [39] Question: Markets with strong group pacing - Management highlighted Denver and Salt Lake as markets showing significant strength in group bookings [42] Question: Average booking window for groups - Management mentioned that the booking window for smaller groups is typically 4 to 6 months, while larger groups book 8 to 12 months out [57] Question: Consumer behavior shifts in booking and spending - Management observed that booking windows are getting shorter, but on-property spending remains in line with or ahead of last year [70] Question: Expectations for wages and benefits growth - Management expects wages and benefits growth to be around 3% to 3.5% for the full year [76] Question: Incremental share repurchases versus cash position - Management emphasized the importance of driving value through share repurchases while maintaining liquidity [80]

Financial Data and Key Metrics Changes - The company reported a consolidated revenue increase of 11% year over year, with adjusted EBITDAre rising by 15% and AFFO per fully diluted share increasing by 28% [17] - Hospitality segment achieved record first quarter revenue and adjusted EBITDAre, driven by RevPAR and total RevPAR growth of 109% year over year [17] - ADR reached a first quarter record of $264, up nearly 6% compared to last year [18] Business Line Data and Key Metrics Changes - The Hospitality segment's revenue and adjusted EBITDAre growth were attributed to strong performance in both group and transient segments, with outside room spending from group customers slightly better than anticipated [19] - The Entertainment segment generated a revenue growth of 34% year over year, with adjusted EBITDAre increasing by 35% [18] Market Data and Key Metrics Changes - Gross group room nights booked for future years increased by 10% year over year, with significant strength in bookings for 2026 and 2027, which were up 1335% and 913% respectively [22][40] - The company noted a decline in consumer confidence but highlighted that the consumer segments served continued to demonstrate strength in the first quarter [19] Company Strategy and Development Direction - The company is focused on long-term value creation while managing short-term dynamics, emphasizing the importance of its diversified customer base to mitigate fluctuations during uncertain times [13][25] - The company is actively managing its capital deployment program and has identified new growth projects, including a ten-year contract to manage the Ascend Amphitheater in Nashville [24] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to economic uncertainties, particularly related to government business, but maintained a positive long-term view [10][12] - The company has slightly modified its full-year guidance for hospitality RevPAR and total RevPAR, reflecting expectations of weaker group business volumes compared to previous assumptions [26] Other Important Information - The company ended the first quarter with $414 million in unrestricted cash and a total available liquidity of approximately $1.2 billion [30] - Capital expenditures expectations for 2025 were lowered from $400-$500 million to $350-$450 million based on updated construction timelines [31] Q&A Session Summary Question: How short-term is the hesitancy being seen in bookings? - Management noted that while there is hesitancy, lead volumes improved from a 50% decline in March to only an 8% decline in April, indicating a positive trend [36] Question: What allows the company to maintain EBITDA guidance despite lower RevPAR? - The company implemented profit improvement plans early in the year, which are expected to safeguard margins and bottom line [45] Question: Can you elaborate on the strategy behind the acquisition of Southern Entertainment? - The acquisition is aimed at increasing the opportunity set for live venues and enhancing the overall fan experience across venues [53] Question: What is the government exposure across the portfolio? - The company indicated that government business is not significant and has stress-tested its model to ensure it can weather potential cancellations [94] Question: How does the company plan to handle cancellations and rebooking? - Management plans to be more aggressive in collecting cancellation fees while also working with customers to find mutually beneficial solutions [100]

Financial Data and Key Metrics Changes - In the first quarter, comparable hotels total revenue was $324 million, down 0.4% year-over-year, while adjusted hotel EBITDA was $105 million, down approximately 5% [8][16] - Comparable hotels RevPAR was $111, down 0.5%, with ADR at $157, up 1%, and occupancy at 71%, down 1.5% compared to the same period last year [8][9] Business Line Data and Key Metrics Changes - The company completed the sale of two hotels for approximately $21 million and entered into an agreement for the sale of the Houston Marriott for $16 million [2] - The company has repurchased approximately $32 million of common shares and paid distributions of nearly $89 million while maintaining a strong balance sheet [2][3] Market Data and Key Metrics Changes - The company noted that demand remained healthy across its portfolio despite challenges, with specific markets like Houston and Los Angeles showing RevPAR growth of nearly 8% and over 20%, respectively [11][12] - Government demand represented about 5% of the occupancy mix, with a decline in government room nights in March but an improvement in April [36][39] Company Strategy and Development Direction - The company is focused on capital allocation to refine its portfolio, drive earnings per share, and maximize long-term shareholder value [2][5] - The company plans to reinvest between $80 million and $90 million in its hotels during 2025, with major renovations at approximately 20 hotels [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market shifts and highlighted the importance of a diversified portfolio to mitigate risks [7][20] - The company anticipates net income for the full year to be between $167 million and $195 million, with a decrease in RevPAR guidance reflecting macroeconomic uncertainties [19][20] Other Important Information - The company has approximately $1.5 billion in total outstanding debt, with a weighted average interest rate of 4.8% and cash on hand of approximately $15 million [18] - The company has completed approximately $338 million in hotel sales since the onset of the pandemic, allowing it to forego over $100 million in capital investments [4] Q&A Session Summary Question: Can you provide more color on the RevPAR guide? - Management indicated that the booking position has declined, leading to a 200 basis point drop in RevPAR expectations for the second half of the year, with Q2 expected to be the worst quarter [24][25] Question: How is the transaction market looking moving forward? - Management noted that the transaction market remains unchanged, with opportunities primarily in smaller asset sales, and they are optimistic about redeploying proceeds into share repurchases [27][28] Question: What are the trends in group bookings? - Management reported strong group bookings, particularly in smaller corporate and leisure groups, with no significant hesitancy observed [61][62] Question: How does the company view its CapEx philosophy? - Management stated that they plan to spend between $80 million and $90 million on CapEx this year, focusing on renovations and maintaining a competitive edge [40][42] Question: How is the company positioned for potential economic downturns? - Management expressed confidence that the lack of new supply in their markets positions them well to weather economic downturns, limiting downside risk and enhancing upside potential [75][76]

Financial Data and Key Metrics Changes - In the first quarter, total revenue for comparable hotels was $324 million, down 0.4% year-over-year, while adjusted hotel EBITDA was $105 million, down approximately 5% [9][16] - Comparable hotels RevPAR was $111, down 0.5%, with ADR at $157, up 1%, and occupancy at 71%, down 1.5% compared to the same period last year [9][10] - MFFO for the quarter was approximately $76 million, or $0.32 per share, down approximately 6% on a per share basis compared to the first quarter of the previous year [17] Business Line Data and Key Metrics Changes - Comparable hotels total hotel expenses increased by 2.2% year-over-year, with total payroll per occupied room at $42, up 4% [15][16] - Comparable hotels adjusted hotel EBITDA margin was 32.3%, down 180 basis points year-over-year, indicating effective cost management despite revenue challenges [16] Market Data and Key Metrics Changes - Government demand represented approximately 5% of the occupancy mix, down from 7% earlier in the year, with a decline in government room nights of about 15% in March [11][34] - Houston properties saw RevPAR growth of almost 8% due to a strong convention calendar, while Los Angeles hotels experienced over 20% RevPAR growth [12][13] Company Strategy and Development Direction - The company plans to reinvest between $80 million and $90 million in hotel renovations in 2025, focusing on maintaining competitiveness in the market [6][7] - The company has completed approximately $338 million in hotel sales since the pandemic began, optimizing its portfolio and reducing capital investment needs [4][5] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging transaction market but remains confident in executing selective asset sales to optimize portfolio concentration [2][5] - The company expects net income for the full year to be between $167 million and $195 million, with a comparable hotels RevPAR change projected to be between negative 11% [18][19] Other Important Information - The company has approximately $1.5 billion in total outstanding debt, with a weighted average interest rate of 4.8% and a significant portion of debt fixed or hedged [17] - The company is closely monitoring potential impacts from tariffs on project costs and timelines, although no known delays are currently affecting planned projects [7] Q&A Session Summary Question: Can you provide more color on the RevPAR guidance? - Management indicated that the booking position has declined by 200 basis points since late February, with Q2 expected to be the worst quarter, implying about 1% RevPAR growth for the second half of the year [22][23] Question: How is the transaction market looking moving forward? - The transaction market remains largely unchanged, with uncertainty keeping larger transactions on the sidelines, but opportunities for smaller asset sales continue to exist [25][26] Question: What is the company's philosophy on CapEx spending? - Historically, the company has spent between 5% to 6% of revenues on CapEx, with plans to spend $80 million to $90 million this year on renovations and other needs [39][40] Question: How is the company managing cost mitigation? - The company is focused on productivity and reducing contract labor, achieving a reduction to 7% of total wages, while maintaining strong occupancy levels [65][66] Question: How does the company view its position in a potential recession? - Management believes the lack of new supply in their markets positions the company favorably, limiting downside risk and enhancing upside potential [68][69]

Financial Data and Key Metrics Changes - The company reported a fourth quarter comparable RevPAR of $305, reflecting a 1.9% increase over the prior year quarter, and a comparable total hotel revenue increase of 5.3% [10][11] - For the full year, the company reported a net loss attributable to common stockholders of $50.9 million or $0.77 per diluted share, and AFFO per diluted share of $0.21 [27][28] - Adjusted EBITDAre for the quarter was $30.2 million and for the full year was $157.6 million [27] Business Line Data and Key Metrics Changes - Group revenue increased by 7% in the fourth quarter, indicating a resurgence in group bookings and events [11] - The luxury resort portfolio achieved a comparable RevPAR of $515, a 1.3% increase over the prior year period, with combined comparable hotel EBITDA of $31 million, a 4.1% increase [13] - Urban hotels achieved comparable RevPAR growth of 3.3% in the fourth quarter, with strong performance across all demand segments [13][14] Market Data and Key Metrics Changes - The company noted that January RevPAR was impressive, with growth over the prior year, and excluding the Capital Hilton, portfolio RevPAR growth was still over 9% [14] - The company experienced fluctuations in the Los Angeles market due to recent events, but February saw a return to stable group bookings [24][25] Company Strategy and Development Direction - The company is in active discussions for refinancing a $193 million loan maturing in June, which will eliminate remaining debt maturities in 2025 [10] - The company plans to invest between $75 million and $95 million in capital expenditures in 2025 to enhance its luxury portfolio [51] - The company is focusing on optimizing revenue opportunities and enhancing guest experiences through strategic renovations and operational efficiencies [16][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of steady growth in resort markets, driven by historically low supply growth [71][72] - The company is encouraged by the positive performance in January and anticipates continued strength in group bookings and overall demand [68][69] - Management highlighted the favorable environment for hotel debt capital markets, which is becoming more attractive for borrowers [35] Other Important Information - The company redeemed approximately $80 million of non-traded preferred stock, representing about 17% of the original capital raise [22] - The company announced a quarterly stock dividend of $0.05 per share, equating to an annual yield of approximately 7.7% [33] Q&A Session Summary Question: Can you provide an update on capital expenditures in Tahoe and spending plans for 2025? - Management confirmed that Tahoe renovations are complete, with a small project planned for under $2 million in 2025 [58] Question: Is the company still restricted from repurchasing common stock? - Management confirmed that they are currently restricted from repurchasing common stock [61] Question: Can you elaborate on the RevPAR strength in January and its sustainability? - Management noted that January performance benefited from calendar shifts and capital investments, leading to broad-based demand [67][69] Question: What is the outlook for the transaction market regarding high-quality assets? - Management indicated strong interest from buyers and a positive reception for hotel sales, suggesting higher transaction volumes in the future [78][80]