Financial Data and Key Metrics Changes - Comparable RevPAR increased by 2% over 2024, 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 [9] - Adjusted FFO was $0.19 per share, an increase of $0.01 or 5.6% over 2024 [10] - Free cash flow per share increased by 10% to $0.63 per share over the prior four-quarter period [10] Business Line Data and Key Metrics Changes - Urban portfolio RevPAR grew by 5%, driven by group and business transient segments, with room revenues up 3.1% in January, 2.6% in February, and 5.4% in March [4] - Food and beverage revenue at urban hotels declined by 3.3% year over year, but excluding the Chicago Marriott, it increased by 5.5% [5] - Resort portfolio comparable RevPAR declined by 2.1% over 2024, with total revenues slightly up in January and February but down 4.3% in March [6][7] - Group room revenues increased by 10.4% over last year on a 5.2% increase in room nights [8] Market Data and Key Metrics Changes - Florida assets saw mid-single-digit revenue declines, with RevPAR down 5.9% and total RevPAR down 4% [7] - Outside of Florida, RevPAR increased by 1.7% and total RevPAR increased by 2.9% [7] - Preliminary April RevPAR showed better than 2% growth [30] Company Strategy and Development Direction - The company is focused on adding groups to resorts to preserve pricing and improve profitability [8] - Plans to refinance maturing loans through a combination of corporate debt issuance and recasting the corporate credit facility [12] - The company is pursuing opportunities to dispose of non-strategic assets while recycling proceeds into attractive investment alternatives [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the unsettled macroeconomic environment has led to softer closure rates for group bookings [9] - The long-term secular drivers for US resorts remain strong, but near-term performance could be soft [20] - The company expects economic anxiety to settle as 2025 progresses, with a focus on increasing earnings per share [27] - Revised full-year 2025 RevPAR outlook to a range of -1% to +1% growth, reflecting a cautious stance on group bookings [23] Other Important Information - The company intends to continue paying a quarterly dividend of $0.08 per share in 2025 [10] - Share repurchases totaled approximately $16 million or 2.1 million shares at an average price of $7.85 [11] Q&A Session Summary Question: Preliminary portfolio-wide RevPAR for April - Preliminary April is showing a little better than 2% growth [30] Question: Renovation project costs and tariffs - Costs depend on the type of renovations; efforts are being made to secure materials before tariffs are reinstated [31][32] Question: Group conversion profile and average group size - The average hotel is about 200 to 250 rooms, with groups running the gamut from associations to corporate [36][37] Question: Group pacing in specific markets - Denver and Salt Lake are showing significant strength in group bookings [41] Question: Holes in group bookings for the rest of the year - The biggest holes are due to difficult comps in Chicago and Boston [48] Question: Average booking window for groups - Smaller groups tend to book 4 to 6 months out, while larger groups book 8 to 12 months out [53] Question: Competitive supply growth and developer behavior - Approximately 40% to 50% of markets have little to no supply growth due to anti-development stances [82]

Financial Data and Key Metrics Changes - Adjusted EBITDAre for the first quarter was $514 million, a 5.1% increase year-over-year, while adjusted FFO per share was $0.64, up 4.9% from last year [6] - Comparable hotel total RevPAR improved by 5.8% compared to the previous year, with a 7% increase driven by strong rate growth [6][7] - Comparable hotel EBITDA margin improved by 30 basis points year-over-year to 31.8% as revenue growth outpaced expenses [6][27] Business Line Data and Key Metrics Changes - Transient RevPAR grew by 6%, particularly strong in resorts due to a late Easter, with Maui's transient rooms sold up approximately 70% year-over-year [8][9] - Group RevPAR increased by 7% year-over-year, driven by special events and strong corporate group bookings [10][25] - Food and beverage RevPAR grew by 5%, with solid growth in both banquet and outlet revenues [11][20] Market Data and Key Metrics Changes - Strong performance noted in Washington DC, New York, New Orleans, Los Angeles, and Maui, with Maui showing a 16% RevPAR growth [9][10] - Business transient RevPAR was up 2%, driven by rate growth, while group room nights were down slightly compared to the previous year [10][25] - Total group revenue pace increased by 3.3% compared to the same time last year [10][26] Company Strategy and Development Direction - The company is focused on capital allocation, including share repurchases and property renovations, with $585 million remaining under the share repurchase program [14][15] - Continued investment in portfolio reinvestment, with comprehensive renovations completed at several properties [14][16] - The company maintains a cautious outlook for 2025, with guidance reflecting potential economic uncertainties [18][28] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to heightened macroeconomic uncertainty, maintaining comparable hotel RevPAR guidance with slight reductions to total RevPAR [18][28] - The company is well-positioned to weather economic fluctuations, supported by a strong balance sheet and diversified portfolio [19][31] - Future guidance includes expectations for a $32 million to $37 million change in adjusted EBITDAre for every 100 basis point change in RevPAR [29][30] Other Important Information - The company expects to complete the mid-rise condominium building at the Four Seasons Resort Orlando by the fourth quarter of this year [15] - Total property damage and remediation costs at the Don Cesar are estimated between $100 million and $110 million, with $10 million collected in business interruption proceeds [13][30] - The company has a weighted average maturity of five years at a 4.7% interest rate, with $2.2 billion in total available liquidity [31] Q&A Session Summary Question: Recent trends in April from a demand standpoint - Management noted that top markets are performing well, with international inbound travel affecting only a small portion of total room nights [36] Question: Outlook for Maui for the remainder of the year - Maui's EBITDA projection has improved, with expectations for continued improvement throughout the year [46] Question: Opportunities for acquisitions in the current market - Management expressed uncertainty about the transaction market but remains opportunistic in capital deployment [51][54] Question: Consumer environment and off-peak periods - No significant changes in trends were observed, with consistent performance across weekdays and weekends [64] Question: CapEx budget risks due to tariffs - Management is maintaining CapEx guidance and does not anticipate significant impacts from tariffs at this time [72][73] Question: Impact of administration policies on labor supply - No pressure on labor supply has been observed, with a strong recovery in staffing levels post-COVID [85][86] Question: Performance of the Rich Carlton, Turtle Bay - Turtle Bay's RevPAR was up 13% in the quarter, with positive performance expected [100]

Financial Data and Key Metrics Changes - Comparable hotels total revenue was $329 million for Q4 2024 and $1.4 billion for the full year, up approximately 4% and 2.5% compared to the same periods in 2023 respectively [26] - Fourth quarter adjusted EBITDARE increased by approximately 7% and modified funds from operations (MFFO) rose by approximately 6% compared to Q4 2023 [10][36] - Comparable hotels RevPAR for Q4 was $109, up approximately 3%, with ADR at $153, up approximately 1%, and occupancy at 71%, up 2% compared to Q4 2023 [27] Business Line Data and Key Metrics Changes - The company achieved comparable hotels RevPAR growth of approximately 3% for Q4 and more than 1% for the full year, driven by improvements in both ADR and occupancy [9] - Comparable hotels occupancy for the full year was 75%, approximately 1% higher than 2023, and comparable hotels ADR was $159, up approximately 1% [27] Market Data and Key Metrics Changes - Approximately 55% of the company's hotels had no new upper upscale, upscale, or upper midscale product under construction within a five-mile radius at the end of Q4 [11] - The company noted that supply-demand dynamics remain favorable, with limited supply growth in its markets enhancing the overall risk profile of the portfolio [11] Company Strategy and Development Direction - The company continues to monitor its distribution rate and timing relative to hotel performance and potential capital uses, maintaining a disciplined approach to capital allocation [12][13] - Recent acquisitions have positively contributed to overall portfolio performance, with seven hotels acquired since June 2024 producing an unlevered 9% yield after CapEx [16] - The company is actively underwriting additional opportunities and is well-positioned to act where attractive yields can be achieved relative to other capital allocation choices [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to produce strong returns for investors over the coming years, citing stable operating fundamentals and favorable supply-demand dynamics [22][42] - The outlook for 2025 includes expectations for net income between $173 million and $202 million, with comparable hotels RevPAR change projected between 1% and 3% [39] Other Important Information - The company paid distributions totaling $58 million or $0.24 per common share during Q4, bringing the annual payout to approximately $244 million or $1.01 per common share [37] - The company has approximately $1.5 billion of total debt outstanding, with a weighted average interest rate of 4.7% and a debt maturity profile averaging three years [38] Q&A Session Summary Question: What operating expense growth has been assumed in 2025 guidance? - Management indicated that normalizing for fixed cost hurdles, the assumed increase for total hotel expenses is around 4.2% at the midpoint, with variable expenses outside of fixed costs around 3.5% [50] Question: What percentage of the portfolio would be described as having outsized CapEx needs? - Management stated that between 7% and 10% of the portfolio fits this category, with a focus on strategic and tactical reasons for prioritizing asset sales [52] Question: How close is the midweek ADR to weekend ADR? - Management noted that midweek ADR is getting closer to weekend levels, with continued opportunities for growth as occupancy improves [60] Question: What is the outlook for RevPAR growth in 2025? - Management believes that both business and leisure demand could contribute to outperforming the guidance, with midweek growth expected to be a significant driver [73] Question: What is the expected wage benefit growth this year? - Wage benefit growth is expected to be between 3.5% and 4% [130] Question: What is the current state of the transaction market? - Management indicated that the transaction market remains challenging, with fewer bidders interested in portfolios, but they expect conditions to improve as the year progresses [66][110]