Financial Data and Key Metrics Changes - Adjusted EBITDAre for Q1 2025 was $514 million, a 5.1% increase year-over-year, while adjusted FFO per share rose by 4.9% to $0.64 [4] - Comparable hotel total RevPAR improved by 5.8% compared to February, with a 7% increase driven by strong rate growth [4] - Comparable hotel EBITDA margin improved by 30 basis points year-over-year to 31.8% as revenue growth outpaced expenses [4][25] Business Line Data and Key Metrics Changes - Transient RevPAR grew by 6%, particularly strong in resorts, with Maui accounting for nearly half of the transient RevPAR growth [5][6] - Group RevPAR increased by 7% year-over-year, driven by special events and strong corporate group bookings [7][24] - Food and beverage RevPAR grew by 5%, with other revenue per available room increasing by 2% despite declines in attrition and cancellation revenue [9][20] Market Data and Key Metrics Changes - Strong performance noted in Washington DC, New York, New Orleans, Los Angeles, and Maui, with Maui's transient rooms sold up approximately 70% year-over-year [5][6] - Business transient RevPAR grew by 2%, driven by rate growth, while group revenue pace was up 3.3% compared to the same time last year [7][24] - The luxury segment showed resilience, with upper-tier markets performing better than the overall market [39] Company Strategy and Development Direction - The company is focused on capital allocation, including share repurchases and property reinvestment, with $585 million remaining under the share repurchase program [12][30] - Continued investment in renovations and redevelopment projects, with expectations of significant operating profit guarantees from the Hyatt transformational capital program [14][15] - The company maintains a cautious outlook for 2025, adjusting guidance based on macroeconomic uncertainties while leveraging its strong balance sheet [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential deteriorating lodging fundamentals, maintaining RevPAR guidance with a slight reduction in total RevPAR [16][17] - The company is well-positioned to weather economic uncertainties due to its investment-grade balance sheet and diversified portfolio [18][30] - Future guidance reflects a range of potential economic outcomes, with expectations for continued operational improvements in Maui [27][29] Other Important Information - The company expects to complete the mid-rise condominium building at the Four Seasons Resort Orlando by Q4 2025, with deposits already secured [13] - 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 [11] Q&A Session Summary Question: Recent trends in April from a demand standpoint - Management noted that top markets are performing well, with strong RevPAR performance even excluding one-time events [35][36] Question: Outlook for Maui for the remainder of the year - Maui's Q1 performance was strong, with expectations for continued improvement, particularly in Q4 [44][46] Question: Opportunities for acquisitions in the current market - Management indicated uncertainty in the transaction market but remains opportunistic for future acquisitions [50][52] Question: Consumer environment and off-peak periods - Consistent performance noted across peak and off-peak periods, with strong group booking pace [64][66] Question: Margin management and cost-cutting initiatives - Contingency plans are in place for potential downturns, but no immediate staffing changes are planned [67][68] Question: Impact of tariffs on CapEx budget - The company maintains its CapEx guidance and is monitoring tariff impacts, but no significant risks are anticipated at this time [71][72] Question: Group and business transient demand details - Group lead volumes are moderating, particularly for government groups, while business transient rates are expected to remain stable [80][81] Question: Labor supply and margin pressures - No significant labor supply issues reported, and current margin guidance remains intact despite economic uncertainties [85][86] Question: Performance of the Rich Carlton, Turtle Bay - The hotel is performing well, with a 13% increase in RevPAR, and strategic decisions regarding golf course renovations are underway [99][102]