Financial Data and Key Metrics Changes - The company announced a share buyback plan of $25 million, indicating a strong position to enhance shareholder value after addressing $500 million of maturing debt [6][7] - The quarterly common dividend was increased by 29% to $0.09 per share, reflecting a yield of over 5% [7] - Q1 2025 hotel EBITDA was $20.8 million, adjusted EBITDA was $17.9 million, and adjusted FFO was $0.14 per share [24][25] - GOP margin for Q1 was 38.9%, up 30 basis points from Q1 2024, driven by 3.8% RevPAR growth and effective expense control [24][25] Business Line Data and Key Metrics Changes - RevPAR growth was strong in six of the top seven markets, with Silicon Valley hotels seeing an 8% increase [14] - The average age of the five sold hotels was 25 years, sold at an approximate 6% capitalization rate on 2024 NOI levels [8] - RevPAR at leisure hotels declined only 1%, while tech hotels showed significant growth [19][20] Market Data and Key Metrics Changes - RevPAR in LA increased by 14%, with specific hotels benefiting from fire-related demand [15] - New York, Dallas, and DC markets saw at least 6% growth in RevPAR [16] - Government-related room revenue accounted for approximately 5% of the overall portfolio, indicating limited impact from government travel [11][12] Company Strategy and Development Direction - The company is focusing on high-quality premium branded targets for acquisitions to diversify its portfolio [9] - The share repurchase plan and potential acquisitions are viewed as tools to enhance shareholder value [6][9] - The company aims to reduce volatility in cash flow by diversifying its asset base beyond tech-heavy markets [57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand despite current economic uncertainties, projecting flat RevPAR growth for the year [12][13] - The company noted that the current environment has resulted in lower new supply, which could support future RevPAR growth [13] - Management highlighted the importance of adjusting sales efforts to attract leisure travelers in response to declining government-related demand [11][12] Other Important Information - The company completed renovations at several hotels, with a CapEx budget of approximately $26 million for 2025 [22][23] - The company has successfully reduced leverage through the sale of older hotels, with a net debt to LTM EBITDA ratio of 3.6x [25][26] Q&A Session Summary Question: Insights on capital allocation initiatives regarding buybacks and acquisitions - Management is looking at both buybacks and acquisitions opportunistically, with a focus on enhancing shareholder value [29][30] Question: Update on potential development in Portland, Maine - The development process is ongoing, with careful consideration of costs and approvals before proceeding [32][34] Question: Performance drivers for the Phoenix hotel - The Phoenix hotel has outperformed expectations due to strong management and market conditions [35][36] Question: Impact of government demand and international travel exposure - Government demand is minimal, and international travel exposure is light, with strong overall performance in key markets [52][53] Question: Guidance on RevPAR expectations for 2025 - The company expects flat RevPAR growth, with potential ADR growth offsetting occupancy changes [54][56] Question: Potential acquisition opportunities and market targeting - The company aims to diversify its asset base and is open to acquisitions in new markets to reduce cash flow volatility [57]

Economic Overview - The U.S. trade deficit reached a record low of -$140.5 billion in March, surpassing the previous estimate of -$137.6 billion and the revised prior record of -$123.2 billion [2] - The trade deficit metric has been consistently reported since 1992, indicating ongoing trade challenges [3] Company Earnings Reports - DoorDash (DASH) reported Q1 earnings of 44 cents per share, beating estimates by 10%, but revenues of $3.03 billion fell short by nearly 2%. The company announced acquisitions of Deliveroo for $3.9 billion and SevenRooms for $1.2 billion [3] - Archer-Daniels-Midland (ADM) reported earnings of 70 cents per share, slightly beating estimates but significantly lower than the $1.46 per share from the previous year. Revenues of $20.18 billion missed expectations by 2.5% [4] - Marriott International (MAR) reported Q1 earnings of $2.32 per share, exceeding estimates by 5 cents, with revenues of $6.26 billion, which was slightly below expectations but an increase from $5.98 billion a year ago [5] Market Expectations - The Federal Open Market Committee (FOMC) meeting is underway, with no expected changes to the Fed funds rate, which has been stable in the 4.25-4.50% range since December [6][7] - The U.S. dollar has shown some instability due to new global trade realities, but bond yields remain stable, indicating no immediate pressure for rate changes [8] Upcoming Earnings Reports - Upcoming earnings reports include Advanced Micro Devices (AMD), Electronic Arts (EA), and Wynn Resorts (WYNN), with The Walt Disney Company (DIS) reporting the following day [9]

Core Insights - Marriott International, Inc. reported first-quarter 2025 results with adjusted earnings exceeding estimates while revenues fell short, indicating a mixed performance despite year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were $2.32, surpassing the Zacks Consensus Estimate of $2.27, and up from $2.13 in the prior-year quarter [3]. - Quarterly revenues reached $6,263 million, slightly below the consensus mark of $6,275 million, but represented a 5% increase year-over-year [3]. - Base management and franchise fees were $325 million and $746 million, respectively, reflecting year-over-year increases of 4% and 8% [4]. - Incentive management fees decreased by 2% to $204 million compared to $209 million in the prior-year quarter [4]. Operational Metrics - RevPAR for worldwide comparable system-wide properties increased by 5.2% year-over-year, supported by a 3.4% rise in average daily rate (ADR) and a 1.2% increase in occupancy [5]. - Comparable system-wide RevPAR in the Asia Pacific (excluding China) rose by 10.6% year-over-year, while Greater China experienced a decline of 2.1% [5][6]. - Total expenses decreased by 4% year-over-year to $5.31 billion, attributed to a decline in reimbursed expenses [6]. Development and Growth - The company achieved a record of over 34,000 room signings in Q1 2025, with nearly two-thirds in international markets, and conversions accounted for about one-third of new signings and openings [2]. - As of the end of Q1, Marriott's development pipeline included 3,808 hotels, with 1,447 properties and over 244,000 rooms under construction [9]. Future Outlook - For Q2 2025, management anticipates gross fee revenues between $1.38 billion and $1.39 billion, with adjusted EBITDA expected to range from $1.37 billion to $1.39 billion [10]. - The company projects worldwide system-wide RevPAR growth of 1.5-3.5% year-over-year for 2025, a revision from the previous estimate of 2-4% [10]. - For the full year 2025, gross fee revenues are expected to be between $5.37 billion and $5.48 billion, with adjusted EBITDA projected between $5.3 billion and $5.4 billion [11].

Sunstone Hotel Investors (SHO) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Company Participants Aaron Reyes - CFO & Executive VPBryan Giglia - CEO & DirectorRobert Springer - President & Chief Investment OfficerDavid Katz - Managing DirectorDany Asad - DirectorDuane Pfennigwerth - Senior Managing DirectorMichael Bellisario - Managing DirectorSmedes Rose - Director Conference Call Participants Chris Woronka - Analyst Operator Good morning, ladies and gentlemen, and thank you for standing by. Welcome to th ...

Financial Data and Key Metrics Changes - Consolidated revenues for the first quarter were $148.8 million, an increase of $10.2 million or 7.4% compared to the prior year quarter, with revenue growth in both divisions [10] - Operating loss for the quarter was $20.4 million, a decline of $3.7 million compared to the prior year quarter [10] - Consolidated adjusted EBITDA for the first quarter was a loss of $0.3 million, a decrease of $2.6 million over the first quarter of fiscal 2024 [11] - Cash flow from operations was a use of cash of $35.3 million in the first quarter, compared to cash used by operations of $15.1 million in the prior year quarter [20] - Total capital expenditures during the first quarter were $23 million, compared to $15.4 million in the first quarter of fiscal 2024 [21] Business Line Data and Key Metrics Changes Theater Division - Total revenue for the first quarter was $87.4 million, an increase of 7.5% compared to the prior year first quarter [12] - Comparable theater admission revenue increased by 1.3% and comparable theater attendance increased by 6.9% compared to the prior year [12] - Theater division adjusted EBITDA was $3.7 million, compared to $6.2 million in the prior year quarter [17] Hotels and Resorts Division - Revenues were $61.3 million for the first quarter, an increase of 7.2% compared to the prior year [18] - RevPAR for comparable owned hotels grew by 1.1% during the first quarter, with an average daily rate (ADR) increase of 8% [18] - Hotels adjusted EBITDA increased by $1 million in the first quarter compared to the prior year quarter [20] Market Data and Key Metrics Changes - Comparable competitive hotels in the markets experienced RevPAR growth of 6.7% for the first quarter, indicating that the company's hotels underperformed the competitive set by 5.6 percentage points [19] - The upper upscale segment experienced an increase in RevPAR of 2.8% during the first quarter, indicating that the company's hotels underperformed the industry by 1.7 percentage points [19] Company Strategy and Development Direction - The company plans to maintain a focus on long-term value creation while managing short-term dynamics, with expectations for growth in both theater and hotel divisions [25] - The company is investing in enhancing customer experience through new ScreenX auditoriums and additional concession stands at Dine-in Movie Tavern locations [30][32] - The company is optimistic about the film slate for the rest of the year and into 2026, with several major franchises expected to perform well [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the first quarter did not meet expectations but expressed optimism for the summer movie season and the overall outlook for the year [25][26] - The company is prepared to react quickly to any economic uncertainties that may arise, leveraging its diversified business model [26][40] - Management emphasized the importance of attendance and customer experience, indicating a thoughtful approach to pricing in a potentially slowing economy [29][46] Other Important Information - The company repurchased approximately 424,000 shares of common stock for $7.1 million in cash during the quarter [23] - The Hilton Milwaukee renovation is progressing as planned, with 65% of the guest rooms completed and expected to be fully operational by June 30 [39] Q&A Session Summary Question: Impact of concessions per patron - Management indicated that the change in food and beverage per caps was primarily due to pricing, with no significant changes in incidence or basket size [45] Question: Ability to take price increases - Management expressed confidence in their ability to manage pricing, noting that they have successfully passed through price increases in the past [46] Question: Hilton Milwaukee renovation pricing strategy - Management views the renovation as an opportunity to hold or potentially increase prices, especially with the upcoming convention center demand [47][50] Question: Impact of Marcus Movie Club on ticket pricing - Management reported that the initial results of the subscription product are positive, but its impact is still minimal [56] Question: Group pace and market dynamics - Management noted that group business is performing well, particularly in recently renovated properties, and that bookings are solid across several markets [58] Question: Labor expense impact and staffing levels - Management indicated that higher labor costs were due to a return to normal operating hours and that there is room for improvement in labor efficiency [75][76]

Core Insights - Marriott International reported $6.26 billion in revenue for Q1 2025, a year-over-year increase of 4.8% [1] - The EPS for the same period was $2.32, compared to $2.13 a year ago, with a surprise of +2.20% against the consensus estimate of $2.27 [1] Financial Performance Metrics - Revenue from owned/leased rooms was 14,312, slightly above the average estimate of 14,214 [4] - Managed rooms totaled 567,896, below the estimated 587,915 [4] - Franchised rooms reached 1,120,634, exceeding the estimate of 1,102,261 [4] - REVPAR growth rate was 4.1%, surpassing the average estimate of 2.7% [4] - Gross fee revenues were $1.28 billion, above the estimate of $1.25 billion, reflecting a +5.4% change year-over-year [4] - Net fee revenues were $1.25 billion, compared to the average estimate of $1.23 billion, marking a +5.1% year-over-year change [4] - Franchise fees amounted to $746 million, exceeding the estimate of $727.37 million, with an +8.4% year-over-year change [4] - Base management fees were $325 million, slightly above the average estimate of $319.23 million, representing a +3.8% change year-over-year [4] Stock Performance - Marriott shares returned +15.9% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Insights - Sunstone Hotel Investors (SHO) reported revenue of $234.07 million for the quarter ended March 2025, reflecting a year-over-year increase of 7.8% [1] - The company's EPS was $0.21, significantly higher than $0.05 in the same quarter last year, indicating strong earnings growth [1] - Revenue fell short of the Zacks Consensus Estimate of $237.58 million by 1.48%, while EPS exceeded the consensus estimate of $0.18 by 16.67% [1] Revenue Breakdown - Room revenue was reported at $144.92 million, slightly below the estimated $147.44 million, but still showing a year-over-year increase of 6.7% [4] - Other operating revenues reached $22.02 million, surpassing the average estimate of $21.56 million, with a year-over-year growth of 10% [4] - Food and beverage revenues totaled $67.13 million, exceeding the estimated $65.67 million, and reflecting a 9.4% increase compared to the previous year [4] Stock Performance - Over the past month, shares of Sunstone Hotel have returned +7.3%, underperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Sunstone Hotel Investors (SHO) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Speaker0 Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sunstone Hotel Investors First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time. I would like to remind everyone that this conference is being recorded today, 05/06/2025, at 10:30 a. M. Eastern T ...

Core Insights - Caliber has entered into a Development Rights Agreement with Hyatt Hotels Corporation to develop 15 new Hyatt Studios hotels across five states in the U.S. [1][3] - The first hotel is set to break ground in Georgetown, Texas, in Q4 2025, followed by a second hotel in Scottsdale, Arizona, in Q2 2026 [1][4] - Hyatt Studios is Hyatt's first upper-midscale extended-stay brand, designed with input from owners and guests, featuring efficient build costs and a lean operating model [2][3] Company Overview - Caliber manages over $2.9 billion in assets and focuses on real estate investment and development, aiming to generate profits in all market conditions [6] - The company has a competitive advantage through its in-house shared services group, which enhances control over real estate and investment opportunities [6] - Caliber Hospitality Trust, a subsidiary of Caliber, targets middle-market and extended-stay hotels in attractive locations [7] Market Context - The hotel inventory in the U.S. is currently lower than in January 2020, with historically low new construction starts, creating a favorable environment for developing Hyatt Studios hotels [3] - The agreement with Hyatt is expected to deliver $400 million in additional assets under management over the next three to five years, contributing to significant growth in revenue [4]

Marriott International, Inc. (MAR) is scheduled to release first-quarter 2025 results on May 6, before the opening bell. In the previous quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.9%.MAR’s Trend in Estimate RevisionThe Zacks Consensus Estimate for first-quarter bottom line is pegged at $2.27, indicating growth of 6.6% from $2.13 reported in the year-ago quarter. In the past 30 days, earnings estimates have witnessed downward revisions of 0.4%. (See the Zacks Earnings Calendar to ...