Financial Data and Key Metrics Changes - Adjusted EBITDARE for 2025 was $258.3 million, exceeding initial guidance and reflecting a strong performance compared to 2024 [10][12] - Net income for Q4 2025 was $6.1 million, with Adjusted FFO per share at $0.45, both meeting or exceeding guidance [8][10] - Total RevPAR for 2025 increased by 8%, driven by strong food and beverage revenue growth of 13.4% [5][11] Business Line Data and Key Metrics Changes - Same-property RevPAR for Q4 2025 increased by 4.5%, building on a 5.6% growth in Q4 2024 [8][20] - Food and beverage revenue for the full year was up 13.4%, significantly contributing to overall revenue growth [11][20] - Group room revenues increased by 12.8% compared to 2024, indicating strong demand in this segment [12][20] Market Data and Key Metrics Changes - Properties in Scottsdale, Denver, Santa Clara, Orlando, San Diego, and San Francisco showed substantial increases in Total RevPAR during 2025 [11][21] - Houston market experienced growth in RevPAR and Total RevPAR, recovering from previous challenges [9][12] - Overall, about half of the 30 hotels achieved RevPAR growth compared to 2024, indicating a positive trend across various markets [11][21] Company Strategy and Development Direction - The company plans to invest between $70 million and $80 million in capital expenditures for 2026, focusing on renovations and enhancements [16][17] - The strategy includes leveraging strong group demand and enhancing food and beverage offerings to attract more guests [12][30] - The company aims to maintain a balance between share repurchases and potential acquisitions, focusing on quality assets in underrepresented markets [35][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth prospects, citing resilient lodging demand despite economic uncertainties [18][43] - The expectation of continued revenue ramp-up at Grand Hyatt Scottsdale and modest RevPAR growth across the portfolio supports the positive outlook for 2026 [18][42] - Management noted that the supply outlook is favorable, with expected supply growth of about 1% in 2026, which is beneficial for pricing power [44] Other Important Information - The company repurchased approximately 9.4 million shares in 2025, representing about 9.2% of outstanding shares at the start of the year [35][36] - A quarterly dividend of $0.14 per share was announced for Q1 2026, reflecting a yield of approximately 3.5% [36] - The company has no preferred equity or senior capital, indicating a strong balance sheet position [33] Q&A Session Summary Question: Can you provide more context around the RevPAR guide ranges? - Management highlighted that special events and strong group revenue pace are key factors supporting the RevPAR outlook, with visibility on growth in specific markets [47][48] Question: What are the recent trends in large corporate account growth? - Management noted consistent growth in large corporate accounts, particularly from major firms, indicating a positive trend for future performance [50][52] Question: Is there more activity expected in the asset trading market? - Management acknowledged increased optimism in the broker community and indicated potential for more external growth opportunities as market conditions improve [57][58] Question: How did the Nashville market perform in Q4 and what are the expectations for 2026? - Management reported challenges in Q4 but expects improvement in midweek corporate and group segments in 2026, driven by food and beverage transformations [66][67] Question: What is the outlook for OpEx growth and its impact from Grand Hyatt Scottsdale? - Management indicated that OpEx growth includes impacts from Grand Hyatt Scottsdale, with expectations for slight margin contraction due to increased occupancy and expenses [84]