Financial Data and Key Metrics Changes - For the full year 2025, the company reported Adjusted EBITDAre of $1.757 billion, a 4.6% increase over 2024, and adjusted FFO per share of $2.07, a 3.5% increase year-over-year [5][6] - Comparable hotel total RevPAR grew 4.2%, and comparable hotel RevPAR grew 3.8% compared to 2024 [6] - The fourth quarter adjusted EBITDAre was $428 million, with adjusted FFO per share of $0.51 [6] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin was 28.9%, down 40 basis points year-over-year, influenced by $21 million of business interruption proceeds received in 2024 [6][27] - Transient revenue grew by 6% in the fourth quarter, primarily driven by rate increases, with luxury properties seeing over 10% growth [7][23] - Comparable hotel food and beverage revenue grew approximately 6%, with strong performance in outlet revenue and banquet contributions [22][23] Market Data and Key Metrics Changes - Strong transient performance was noted in markets such as Maui, New York, and San Francisco, with Maui contributing over one-third of the transient revenue growth in the fourth quarter [7][8] - The company expects Maui to contribute approximately $120 million of EBITDA in 2026, up from $111 million in 2025 [8][58] - Group revenue for the fourth quarter was up approximately 1% year-over-year, driven by rate increases despite declines in group room nights [8][25] Company Strategy and Development Direction - The company is focused on capital allocation through dispositions, portfolio reinvestment, share repurchases, and dividends, while maintaining an investment-grade balance sheet [5][12] - The recent sale of the Four Seasons properties for $1.1 billion reflects the company's strategy to monetize assets at attractive returns [10][41] - The company plans to evaluate the best use of capital based on market conditions, which may include returning capital to shareholders or pursuing acquisitions [12][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel environment, particularly at the upper end of the chain scale, and believes the company is well-positioned to capitalize on future opportunities [20][30] - For 2026, the company anticipates comparable hotel total RevPAR growth of between 2.5% and 4%, and comparable hotel RevPAR growth of between 2% and 3.5% over 2025 [28][30] - The company expects wage rates to increase approximately 5% in 2026, with total expense growth assumed at 3.3% [30][81] Other Important Information - The company completed approximately $644 million in capital expenditures in 2025, focusing on resiliency initiatives and hurricane restoration [15] - The company has a weighted average maturity of 5.1 years on its debt, with no maturities in 2026, and ended 2025 with a leverage ratio of 2.6 times [32] - The company returned nearly $860 million of capital to shareholders in 2025, including share repurchases and dividends [14] Q&A Session Summary Question: Insights on the Four Seasons sales and future high-value dispositions - Management highlighted the depth of the buyer pool for luxury assets and indicated that they are open to selling top-performing assets if it maximizes shareholder value [36][40] Question: Details on the Transformational Capital Program - Management explained that the program targets great assets needing repositioning, with expectations of mid-teens cash on cash returns from the investments [48][50] Question: Outlook for Maui's EBITDA and recovery - Management expressed confidence in the $120 million EBITDA forecast for Maui in 2026, noting significant growth expected from the Hyatt Regency Maui [58][59] Question: Future capital allocation strategies - Management stated that they will take a measured approach to capital allocation, considering market conditions and operational performance before making decisions [75][76] Question: Expense outlook and labor availability - Management indicated that total expense growth is expected to be 3.3%, with wage rates projected to increase by 5%, but overall expenses may be lower due to productivity enhancements [80][81]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported Adjusted EBITDAre of $1.757 billion, a 4.6% increase over 2024, and adjusted FFO per share of $2.07, a 3.5% increase year-over-year [3][4] - Comparable hotel total RevPAR grew 4.2%, while comparable hotel RevPAR increased by 3.8% compared to 2024 [4] - The full-year RevPAR and adjusted EBITDAre exceeded initial 2025 guidance by 2.3 percentage points and 8.5% respectively [4] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin was 28.9%, down 40 basis points year-over-year, influenced by $21 million of business interruption proceeds received in 2024 [4][27] - In the fourth quarter, comparable hotel total RevPAR improved by 5.4%, and comparable hotel RevPAR was up 4.6%, driven by strong leisure transient demand and higher room rates [5] - Transient revenue grew by 6%, primarily due to rate increases, with luxury resorts showing particularly strong performance [5][22] Market Data and Key Metrics Changes - Strong transient performance was noted in markets such as Maui, New York, and San Francisco, with Maui contributing over one-third of the transient revenue growth in the fourth quarter [5][6] - The company expects Maui to contribute approximately $120 million of EBITDA in 2026, up from $111 million in 2025 [6][60] - Group revenue for the fourth quarter was up approximately 1% year-over-year, driven by rate increases despite a decline in group room nights [6][25] Company Strategy and Development Direction - The company is focused on capital allocation through dispositions, portfolio reinvestment, share repurchases, and dividends, while maintaining an investment-grade balance sheet [3][11] - The recent sale of the Four Seasons properties for $1.1 billion reflects the company's strategy to monetize assets at attractive returns [9][42] - The company plans to evaluate the best use of capital based on market conditions, which may include returning capital to shareholders or pursuing acquisitions [11][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel environment, particularly at the upper end of the chain scale, and believes the company is well-positioned to capitalize on future opportunities [20] - For 2026, the company anticipates comparable hotel total RevPAR growth of between 2.5% and 4%, and comparable hotel RevPAR growth of between 2% and 3.5% [28] - The company expects stable operating conditions with continued leisure transient strength and modest improvements in group booking trends [27][31] Other Important Information - The company repurchased 13.1 million shares at an average price of $15.68 per share in 2025, returning nearly $860 million of capital to shareholders [13][34] - The company invested approximately $644 million in capital expenditures and renovations across its portfolio in 2025 [14][17] - The company has a weighted average maturity of 5.1 years on its debt with no maturities in 2026, ending 2025 with a leverage ratio of 2.6 times [33] Q&A Session Summary Question: Depth of buyer pool for Four Seasons sales and outlook for high-value dispositions - Management indicated that there is a deep buyer pool for luxury assets, including sovereigns and private equity firms, and they are open to selling top assets at the right price [36][41] Question: Details on the Transformational Capital Program - Management explained that the selected hotels for the program are great assets needing repositioning, with expectations of mid-teens cash on cash returns from the investments [50][51] Question: Outlook for Maui's EBITDA and potential upside - Management expressed confidence in the $120 million EBITDA forecast for Maui in 2026, with potential for upside based on group pace and short-term bookings [59][61] Question: Future capital allocation strategies - Management stated that they will take a measured approach to capital allocation, considering market conditions and operational performance before deciding on the use of proceeds [76] Question: Expense outlook and labor availability - Management expects total expense growth of 3.3% with wage rates increasing by 5%, but productivity enhancements and lower insurance costs may help manage overall expenses [80][82]