Financial Performance - Total revenue increased by 09% to $1350 million[3] - Adjusted EBITDA decreased by 24% to $326 million[3] - Adjusted EBITDA margin decreased by 90 bps to 241%[3] - AFFO increased 551% to $211 million[3] - AFFO per share increased 80% to $081[3] - GAAP net loss of $(7) million, or $(003) per diluted common share[3] Guidance - Full-year 2025 adjusted EBITDA is now expected to be $129 to $134 billion, revised down from the prior guidance of $135 to $140 billion[5] - Adjusted FFO per share for full-year 2025 is expected to be $320 to $340, revised down from the prior guidance of $340 to $360[5] - Third-quarter 2025 adjusted EBITDA is expected to be $326 to $336 million[5] - Third-quarter 2025 AFFO per share is expected to be $075 to $079[5]

Financial Data and Key Metrics Changes - In Q1 2025, RevPAR increased by 6.4%, driven by a 6.4% increase in occupancy, while ADR remained flat compared to the prior year [3] - Excluding the impact of Hurricane Helene in Tampa, RevPAR increased by 7.3% year over year, supported by a 7.5% increase in occupancy [3] - Total revenue for Q1 2025 was approximately $48.3 million, representing a 3.8% increase over the same quarter last year [15] - Hotel EBITDA for the quarter was approximately $12.9 million, reflecting a 4.5% increase year over year [15] - Adjusted FFO was approximately $4.5 million, a decrease of about $700,000 from the same quarter last year [15] Business Line Data and Key Metrics Changes - The Doubletree Resort in Hollywood, Florida, saw RevPAR increase by 11.9%, driven by an 11.8% increase in occupancy [7] - Hotel Ballast in Wilmington achieved RevPAR growth of 6.5%, supported by a 3.5% increase in occupancy and a 2.9% increase in rate [8] - The Whitehall in Houston reported a 19.4% increase in RevPAR, driven by a 20.5% gain in occupancy [9] - The Doubletree Philadelphia Airport experienced a 34.3% increase in RevPAR, with a 38.7% increase in occupancy [10] Market Data and Key Metrics Changes - Urban markets showed pronounced gains in occupancy, indicating a stabilization of lodging fundamentals post-pandemic [4] - Group business and special events contributed significantly to performance in urban markets, with notable events like the presidential inauguration and NFL playoffs [4] Company Strategy and Development Direction - The company is advancing plans for two upcoming PIP renovations, including a $11.5 million renovation in Philadelphia and a $14.6 million project in Jacksonville [12][13] - The company is taking a disciplined approach to managing its capital structure, with a focus on refinancing and addressing upcoming debt maturities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall outlook for the industry, despite macroeconomic uncertainties impacting near-term visibility [21] - The company noted a solid group booking pace and a lack of widespread cancellations, although there was a pause in group lead conversions in late March [22] - The company expects full-year 2025 RevPAR to range between 103-105% of 2024 levels, indicating confidence in continued occupancy growth [25] Other Important Information - The company had total cash of approximately $32.8 million as of March 31, 2025, with $11.5 million in unrestricted cash [16][17] - The principal balance of outstanding debt was approximately $317.6 million at a weighted average interest rate of 5.88% [18] Q&A Session Summary Question: Reverse split timing - Management indicated that the reverse split is likely to occur close to the August 11 deadline, with preparations ongoing [27][28] Question: Business interruption insurance for Hotel Alba - Management clarified that while room revenue has decreased due to fewer guests, profitability is largely maintained through insurance proceeds, estimating a 95% recovery of expected performance [31][32] Question: Refinancing of loans for Hollywood and Atlanta - Management discussed the likelihood of extensions and modifications for upcoming loan maturities, reflecting broader trends in the CMBS market [36][39] Question: Cash management regarding CapEx and refinancing - Management noted that they are evaluating cash needs against refinancing activities and have significant equity in other assets that could be leveraged [41][43] Question: Accrued balance on preferred dividends - Management confirmed that the accrued balance on preferred dividends is approximately $21.9 million, with current payments being made [44][45]

Financial Data and Key Metrics Changes - For Q1 2025, normalized FFO per share was $0.35 and normalized AFFO per share was $0.37, compared to $0.34 and $0.35 in Q1 2024, representing a year-over-year increase of 79% for both metrics [14][15] - Cash rental income from the triple net portfolio totaled $90 million, up from $89 million in Q1 2024, despite the disposal of $115 million of real estate from the portfolio last year [15] - Cash NOI from the managed senior housing portfolio totaled $24.1 million, compared to $19.1 million in Q1 2024, driven by strong occupancy and margin gains [15][12] Business Line Data and Key Metrics Changes - Skilled nursing and triple net senior housing EBITDARM rent coverage reached new highs at 2.19 and 1.41, respectively, with behavioral health coverage at 3.77 [5] - Skilled occupancy increased by 80 basis points sequentially, while triple net senior housing occupancy rose by 50 basis points [6] - Revenue for the same store managed senior housing portfolio grew 6.3% year-over-year, with occupancy at 85.4% compared to 82.6% in Q1 2024 [11] Market Data and Key Metrics Changes - The domestic portfolio occupancy was 83%, gaining 340 basis points year-over-year, while the Canadian portfolio occupancy was 90.9%, adding 140 basis points [11] - RevPAR in the same store portfolio increased by 2.8% year-over-year, with Canadian RevPAR growing by 4.9% [11] - The company noted a robust deal pipeline, with over $200 million in awarded deals, which is more than the total for all of 2024 [7][8] Company Strategy and Development Direction - The company is focusing on internal and external growth opportunities in senior housing, with little new supply expected in the coming years [10] - Management emphasized a commitment to maintaining a balanced portfolio between senior housing and skilled nursing, avoiding large portfolio acquisitions to keep operations predictable [78] - The company is actively using its ATM program to raise equity for funding growth, with a focus on accretive capital [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued occupancy growth and potential Medicaid rate increases in the summer, which could enhance coverage [86] - The company is cautious about the skilled nursing facility (SNF) market due to challenges in structuring leases around underperforming assets [66][68] - Management believes that the current operating environment will allow for improved coverage and revenue growth, despite potential headwinds from provider taxes [85] Other Important Information - The Board of Directors declared a quarterly dividend of $0.30 per share, representing a payout of 81% of the first quarter normalized AFFO per share [19] - The company has ample liquidity of over $1 billion, consisting of unrestricted cash and available borrowings [18] Q&A Session Summary Question: Update on skilled nursing facility sale - Management confirmed that the expected $50 million skilled nursing facility sale is still on track, though regulatory hurdles have delayed the process [21] Question: Trajectory of RevPOR and expense growth - Management expects occupancy to rise, which will allow for increased pricing power, while expenses are anticipated to remain stable [22][23] Question: Guidance on acquisitions and SHOP performance - Management reiterated that acquisitions are not included in current guidance until closed, and reaffirmed expectations for low to mid-teens cash NOI growth [27][28] Question: Insights on transaction market and deal flow - Management noted a robust pipeline of deals, primarily in senior housing, with private equity firms as frequent sellers [31][33] Question: Details on $200 million of awarded deals - All awarded deals are domestic, primarily in the Eastern U.S., with growth potential embedded in the assets [40][41] Question: Changes in underwriting criteria - Management stated that underwriting criteria remain unchanged, focusing on cost of capital and accretive deals [60] Question: Concerns regarding SNF acquisitions - Management highlighted challenges in acquiring SNFs due to financial instability and the difficulty in structuring leases [66][68] Question: Expectations for SHOP occupancy cadence - Management anticipates an increase in occupancy as seasonal factors improve, particularly in Canadian assets [70] Question: Interest in large portfolio acquisitions - Management confirmed a commitment to smaller, more manageable deals to maintain operational simplicity and predictability [78] Question: Medicare reimbursement impacts - Management expressed confidence that Medicare will not be significantly impacted by current government budget discussions [97]

Financial Data and Key Metrics Changes - The company achieved RevPAR growth of 1.6% in the first quarter, driven by a 2.1% increase in ADR, slightly offset by a 0.5% decline in occupancy [5][18][19] - First quarter occupancy was 69.1%, average daily rate was $204.31, and RevPAR was $141.23 [18] - Total revenue growth was 1.2%, benefiting from a 3.8% increase in out-of-room spend [19][21] Business Line Data and Key Metrics Changes - Group segment was the best performing, with revenue growth of 10% driven by strong citywide events [10][19] - Urban hotels achieved robust RevPAR growth of 3.6%, with weekday urban RevPAR growing by 4.9% [8][9] - The six initial conversions achieved RevPAR growth of 14%, while three recent conversions in Houston, New Orleans, and Pittsburgh achieved 35% RevPAR growth [11][12] Market Data and Key Metrics Changes - March RevPAR was down 1.3%, reflecting a lack of compression due to an elongated spring break and macroeconomic uncertainty [8][19] - Northern California showed recovery momentum, supported by a stronger citywide calendar and improving business climate [9][52] - International demand remains soft, representing less than 3% of revenues, primarily in markets like New York and South Florida [14] Company Strategy and Development Direction - The company is focused on capital recycling and strengthening its balance sheet, with a proactive approach to refinancing debt maturities [11][22] - The urban-centric portfolio is geographically diverse and benefits from demand generators, positioning the company to navigate economic uncertainty [17] - The company plans to continue investing in projects to unlock embedded value while returning capital to shareholders through share repurchases and dividends [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fundamentals have moderated and uncertainty persists due to elevated macroeconomic risks [12][15] - The company adjusted its full-year guidance to reflect current trends, expecting RevPAR growth to range between negative 1% and up 1% [25] - Management remains constructive on the long-term outlook for lodging fundamentals, supported by consumer preferences favoring experiences over goods [15][16] Other Important Information - The company ended the first quarter with over $800 million of liquidity and $2.2 billion of debt [23] - The company has a new $250 million share repurchase program approved by the Board to take advantage of future market volatility [23] Q&A Session Summary Question: Can you provide insights on April's performance and how it compares to expectations? - Management indicated that April was expected to be slightly positive but projected to decline between 1% to 2% [30][41] Question: What is the current state of the balance sheet and capital availability? - Management noted that the bank group market remains strong, with capacity for top-quality sponsors, and high yield markets have seen some recovery [32][34] Question: What are the trends in the group segment and future bookings? - The group segment is performing well, with a healthy booking pace for the year, although cancellations were noted primarily in government-related travel [75][76] Question: How is the company addressing the uncertainty in the transaction market? - Management stated that the transaction market is currently cautious, with a focus on opportunistic sales rather than a programmatic approach [90]

Financial Data and Key Metrics Changes - The company reported Q1 RevPAR of $178, reflecting a modest 70 basis point decline year-over-year, primarily due to difficult comparisons following last year's nearly 8% growth [18] - Total hotel revenues for the quarter were $608 million, with hotel adjusted EBITDA at $151 million, resulting in a nearly 25% hotel adjusted EBITDA margin [18] - Adjusted EBITDA for the quarter was $144 million, and adjusted FFO per share was $0.46 [19] Business Line Data and Key Metrics Changes - The Bonnet Creek complex in Orlando saw a 32% RevPAR increase, driven by a surge in transient revenues of nearly 65% [10] - Casa Marina in Key West delivered a 12% RevPAR increase, with occupancy up 680 basis points [11] - RevPAR across the two Hawaii properties declined by 15%, with Hilton Hawaiian Village significantly impacted by a labor strike [12] Market Data and Key Metrics Changes - Miami, New Orleans, Puerto Rico, Washington DC, and San Francisco reported above industry average RevPAR gains [5] - Preliminary April results showed mixed performance, with RevPAR growth of 1.6%, driven by strong gains in New York, Orlando, and San Francisco [15] - International demand represents just 10% of total room nights, with government-related business accounting for only 3% [16] Company Strategy and Development Direction - The company plans to invest $310 million to $330 million in capital improvements in 2025, focusing on unlocking embedded value in its portfolio [8] - A transformative renovation of the Royal Palm South Beach, Miami, is set to begin soon, with expected returns exceeding 15% to 20% [6] - The company aims to sell $300 million to $400 million of non-core hotels this year, with several assets in various stages of marketing [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ongoing geopolitical uncertainties and their impact on decision-making in the market [26] - The outlook for Hawaii remains favorable, supported by limited new supply expected through at least 2029 [14] - Despite macro uncertainties, the company remains focused on factors within its control and is working closely with operators to manage operating expenses [16] Other Important Information - The company repurchased approximately 3.5 million shares for a total of $45 million during the quarter [9] - A $70 million impairment was recognized in the quarter, related to an asset whose true value was reassessed [75] Q&A Session Summary Question: Comments on planned asset sales and current market environment - Management acknowledged tremendous uncertainty in the market due to geopolitical issues and trade wars, but expressed confidence in their ability to transact even under challenging conditions [26][27] Question: Update on Hawaii's performance and ramp-up post-strike - Management noted that the ramp-up is taking longer than expected, with sequential improvement anticipated, and expressed confidence in Hawaii's long-term growth potential [30][31] Question: Changes in core hotels and capital allocation - The company has focused on trimming its portfolio to core assets that account for 85-90% of its value, with plans to recycle capital from non-core asset sales [35][36] Question: Group pace and market performance expectations - Management indicated that group pace is slightly down for Q2 and Q3 but remains strong for Q4, with confidence in the overall bookings for the year [60][61] Question: Performance of Hilton Hawaiian Village and EBITDA expectations - Management stated that while it is challenging to predict if EBITDA will exceed last year's performance, they remain bullish on Hawaii's long-term outlook [73][74]

Financial Data and Key Metrics Changes - RevPAR in the same store portfolio increased by 1.5% year over year, driven by a mix of rate and occupancy growth [4] - EBITDA margin contracted by less than 50 basis points compared to the first quarter of the previous year, with pro forma operating expenses increasing by only 1.5% year over year [4][20] - Adjusted EBITDA for the first quarter was $45 million, a modest decline compared to the prior year, primarily due to net effective asset sales completed in 2024 [22] - Adjusted FFO was $27.4 million or $0.22 per share, benefiting from lower interest expenses due to deleveraging efforts [23] Business Line Data and Key Metrics Changes - Urban portfolio RevPAR increased nearly 3%, outperforming the total industry by approximately 80 basis points [17] - Suburban and small town metro portfolios generated average RevPAR growth of 1.2%, driven by hotels in specific regions [19] - The resort location type accounts for only 11% of total guest rooms, with significant capital investment expected to enhance performance [19] Market Data and Key Metrics Changes - January RevPAR declined by 1.5% due to weather-related disruptions, but February saw a robust increase of 8.1% year over year [5] - March RevPAR declined by 1.6% in the same store portfolio, with a 10% decline in the qualified segment, primarily due to weakness in government-related travel [5][10] - April RevPAR is expected to decline by 45% compared to last year, influenced by difficult calendar comparisons [8][12] Company Strategy and Development Direction - The company is focused on managing expenses effectively in a lower revenue growth environment, with EBITDA margins contracting only 15 basis points on 1.6% RevPAR growth over the past five quarters [11] - A $50 million share repurchase program has been approved to return capital to shareholders and drive value creation [15][26] - The company continues to prioritize a balance between returning capital to shareholders, investing in the portfolio, reducing corporate leverage, and maintaining liquidity for future growth [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for the portfolio despite near-term macroeconomic uncertainties [11][15] - The company expects a modest pullback in demand, particularly in government and international travel, but anticipates some recovery as the year progresses [10][32] - The outlook for the second quarter indicates a RevPAR decline of 24% compared to the previous year, with expectations for flat RevPAR growth for the full year [12][14] Other Important Information - The company has closed on a $275 million delayed draw term loan to refinance maturing convertible notes, preserving cash flow [24][25] - Total liquidity stands at over $300 million, with an average interest rate of approximately 4.6% [25] Q&A Session Summary Question: How have trends evolved within government and international travel? - Management noted that the most acute impact was felt in March, but there is optimism for recovery as the year progresses [31][32] Question: How have trends for business transient customers evolved? - Business transient travel has held up reasonably well, with no significant downward trend observed [34] Question: Is leisure travel being impacted the most? - Leisure travel is expected to be resilient, with potential shifts towards more domestic travel [40][41] Question: What proactive measures are being taken regarding margins? - Management has focused on managing contract labor and employee turnover, without implementing deeper cuts seen in previous downturns [55][56] Question: Thoughts on the buyback announcement and capital allocation? - The buyback program is seen as a compelling opportunity due to significant dislocation in stock prices, with funding expected from reduced CapEx and potential asset sales [59][61] Question: Latest thoughts on joint venture partner's capital deployment? - The joint venture partner is well-capitalized and prepared to take advantage of dislocation opportunities, though transaction activity is expected to slow [64]

Financial Data and Key Metrics Changes - RevPAR in the same store portfolio increased by 1.5% year over year, driven by a mix of rate and occupancy growth [4] - EBITDA margin contracted by less than 50 basis points compared to the first quarter of the previous year, with pro forma operating expenses increasing by 1.5% year over year [4][19] - Adjusted EBITDA for the first quarter was $45 million, a modest decline compared to the prior year, primarily due to net effective asset sales completed in 2024 [20] - Adjusted FFO was $27.4 million or $0.22 per share, benefiting from lower interest expenses due to deleveraging efforts [21] Business Line Data and Key Metrics Changes - Urban portfolio RevPAR increased nearly 3%, outperforming the total industry by approximately 80 basis points [16] - Suburban and small town metro portfolios generated average RevPAR growth of 1.2%, driven by hotels in specific regions [18] - Resort location type accounts for only 11% of total guest rooms, with significant renovations expected to boost performance [18] Market Data and Key Metrics Changes - Demand softening was noted in early March, particularly in government and international travel segments, with March RevPAR declining by 1.6% in the same store portfolio [5][10] - The company expects April RevPAR to decline by approximately 45% year over year, influenced by difficult calendar comparisons [7][12] - The first quarter saw a 2% decline in average daily rate (ADR) despite absolute ADRs increasing year over year across most demand segments [6] Company Strategy and Development Direction - The company announced a $50 million share repurchase program to return capital to shareholders and drive value creation [14][24] - Continued investment in renovations is expected to enhance the quality of the portfolio and drive future profitability [21][25] - The company is focused on managing expenses effectively in a lower revenue growth environment, with a strong emphasis on cost controls [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for the portfolio despite near-term macroeconomic uncertainties [10][14] - The company anticipates a modest recovery in government and international travel segments as the year progresses [30] - Management noted that leisure demand is expected to remain resilient during economic uncertainty, with expectations for group demand to remain strong [11][39] Other Important Information - The company has a total liquidity of over $300 million and no significant debt maturities until 2027 [23] - The average interest rate on the company's debt is approximately 4.6%, with 71% of pro rata share of debt fixed [23] - The company reduced its full-year capital expenditure guidance to $60 million to $70 million, allowing for flexibility in response to market conditions [25] Q&A Session Summary Question: Trends in government and international travel segments - Management noted that both segments experienced the most acute impact in March but have stabilized at lower levels, with optimism for recovery as the year progresses [30][31] Question: Business transient customer trends - The midweek negotiated business segment has held up reasonably well, with no significant downward trend observed [32] Question: Impact on shorter booked weekend leisure trips - Management indicated that leisure demand is expected to be resilient, with potential shifts towards more domestic travel [39] Question: Expense management and potential brand negotiations - Management stated that proactive expense management has been effective, and they have not yet needed to implement deeper cuts seen in prior downturns [55] Question: Share repurchase program and capital allocation - The company plans to fund the buyback through a combination of reduced CapEx and opportunistic asset sales, while maintaining a healthy balance sheet [61] Question: Joint venture partner's capital deployment view - Management indicated that their joint venture partner is well-capitalized and prepared to take advantage of market dislocations, though transaction activity is expected to slow [64]