Financial Data and Key Metrics Changes - For Q1 2025, total revenue was approximately $48.3 million, representing a 3.8% increase year-over-year [14] - Hotel EBITDA for the quarter was approximately $12.9 million, reflecting a 4.5% increase compared to the same quarter last year [14] - FFO was approximately $4.5 million, a decrease of approximately $700,000 from the same quarter last year [14] - RevPAR increased by 6.4%, driven by a 6.4% increase in occupancy, with ADR remaining flat compared to the prior year [3][4] - Hotel EBITDA across the entire portfolio increased by 4.5% year-over-year, and when excluding a one-time benefit from a COVID-related grant, it increased by 9.4% [10] Business Line Data and Key Metrics Changes - The Doubletree Resort in Hollywood, Florida, saw RevPAR up 11.9%, primarily due to an 11.8% increase in occupancy [6] - 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 [7] - The Whitehall in Houston reported a 19.4% increase in RevPAR, driven by a 20.5% gain in occupancy [8] - The Doubletree Philadelphia Airport experienced a 34.3% increase in RevPAR, driven by a 38.7% increase in occupancy, despite a 3.1% decline in rate [9] Market Data and Key Metrics Changes - Urban markets showed pronounced gains, indicating stabilization in lodging fundamentals and normalization of demand patterns [4] - Group business and special events significantly contributed to performance, particularly in urban markets [4][20] - The company noted a pullback in government segment demand, particularly in the Washington DC submarket [21] Company Strategy and Development Direction - The company is advancing planning for two upcoming PIP renovations, with a total budget of $26.1 million for properties in Philadelphia and Jacksonville [11][12] - The company is taking a disciplined approach to managing its capital structure, with a focus on refinancing and extensions for upcoming debt maturities [12][36] - The portfolio is expected to outperform the broader market, with upscale and upper upscale assets positioned well [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter results, driven by occupancy recovery in urban markets and strong group business [20] - There is caution regarding macroeconomic uncertainty impacting near-term visibility in the lodging industry, with potential increased price sensitivity among transient guests [21] - Despite uncertainty, the company has not seen widespread cancellations and maintains a solid group booking pace [22] Other Important Information - The company has approximately $32.8 million in total cash, with $11.5 million in unrestricted cash [15][16] - The principal balance of outstanding debt is approximately $317.6 million at a weighted average interest rate of 5.88% [17] - The accrued balance on preferred dividends is approximately $21.9 million, with current payments being made [43][44] Q&A Session Summary Question: Renovation plans for the Philadelphia hotel - Management indicated that the reverse split timing is likely to occur close to the August 11 deadline, with preparations ongoing [26][27] Question: Business interruption insurance for Hotel Alba - Management clarified that while room revenue is down due to fewer guests, profitability is largely maintained through insurance coverage [28][30] Question: Refinancing of loans for Hollywood and Atlanta - Management discussed the likelihood of extensions and modifications for upcoming debt maturities, reflecting broader market trends [33][36] 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 [38][39] Question: Accrued balance on preferred dividends - Management confirmed that the accrued balance is approximately $21.9 million, with current payments being made [43][44]