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 delivered Adjusted EBITDAre of $428 million and 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, driven primarily by rate increases, with luxury properties seeing over 10% growth [7][23] - Comparable hotel food and beverage revenue grew approximately 6%, with outlet revenue growing 9% [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 [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] Company Strategy and Development Direction - The company is focused on capital allocation through dispositions, portfolio reinvestment, share repurchases, and dividends, 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][74] 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 confidence in the company's ability to capitalize on future opportunities [20] - The guidance for 2026 anticipates comparable hotel total RevPAR growth of between 2.5% and 4%, with EBITDA margins expected to be stable [28][30] - Management highlighted the importance of the World Cup in 2026, expecting a 60 basis point benefit to RevPAR from the event [85] 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 [14][33] - The company completed approximately $644 million in capital expenditures in 2025, focusing on resiliency initiatives and hurricane restoration [15][18] - The 2026 capital expenditure guidance is set between $525 million and $625 million, with a focus on redevelopment and ROI projects [17] Q&A Session Summary Question: Insights on the Four Seasons sales and future high-value dispositions - Management confirmed a deep buyer pool for luxury assets and indicated that they are open to selling top 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 [48][49] Question: Outlook for Maui's EBITDA and growth potential - Management expressed confidence in the $120 million EBITDA forecast for Maui, citing significant growth expected from the Hyatt Regency [58][59] Question: Future capital allocation strategies - Management stated that they will take a measured approach to the remaining proceeds from asset sales, considering market conditions before making decisions [74][75] Question: Expense outlook and labor availability - Management indicated that total expense growth is expected to be 3.3%, with wage rates anticipated to increase by 5% [78][79]