Financial Data and Key Metrics Changes - The company reported a fourth quarter occupancy rate of 68.7%, an average daily rate (ADR) of $199, and revenue per available room (RevPAR) of $137, reflecting a 1.5% decline in RevPAR year-over-year, driven by a 0.9% decline in occupancy and a 0.7% decline in ADR [17][18] - Total revenues grew by 0.2%, supported by a 7.2% increase in non-room revenues, which outperformed RevPAR by nearly 900 basis points [11][18] - Adjusted EBITDA for the fourth quarter was $80.4 million, with hotel EBITDA margins at 27%, only 44 basis points lower than the previous year [19][22] Business Line Data and Key Metrics Changes - Urban markets outperformed the overall portfolio, with notable RevPAR growth in Northern California (18.5%), Denver CBD (10.1%), and New York City (4.7%) [18] - Non-government related business transient revenues increased by 5%, while group revenues declined by 3% due to the government shutdown impacting demand [9][10] - Leisure segment revenue grew by 1%, with urban leisure outperforming the portfolio, driven by strong holiday demand [10][11] Market Data and Key Metrics Changes - The company noted a strong recovery in San Francisco, with RevPAR growth of 52% in the fourth quarter, supported by various demand segments and events like the Dreamforce conference [8][9] - The overall lodging industry is expected to achieve slightly positive RevPAR growth in 2026, driven by increased leisure demand and ongoing positive trends in non-government business travel [14][15] Company Strategy and Development Direction - The company is focused on urban markets, anticipating that these will continue to outperform the broader industry due to favorable geographic exposure and high-impact capital investments [15][16] - The company plans to continue executing on high-occupancy renovations and conversions, with an average of two conversions per year, including the upcoming Boston conversion to Hilton's Tapestry Collection [12][41] - Capital allocation strategies include opportunistic asset sales and share repurchases, with a focus on maintaining a strong balance sheet while driving shareholder value [32][33][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, citing potential tailwinds from moderating interest rates and tax cuts, which could positively impact travel demand [13][14] - The company expects the first quarter of 2026 to be the softest due to challenging year-over-year comparisons, with expectations for improved performance in the latter half of the year [25][26] - Management highlighted the importance of urban leisure demand and special events, such as the World Cup, in driving future growth [30][31] Other Important Information - The company successfully addressed all near-term debt maturities and executed refinancing transactions to extend debt maturities through 2028, enhancing financial flexibility [20][21][22] - The company returned $120 million to shareholders through dividends and share repurchases during 2025 [13][23] Q&A Session Summary Question: How much benefit is expected from the World Cup and easier comps due to the government shutdown? - Management indicated that they expect a balanced contribution from rate and occupancy growth, with specific events like the World Cup contributing approximately 45 basis points to RevPAR growth [30][31] Question: How is capital allocation prioritized between asset sales and share repurchases? - Management stated that they are actively recycling capital from asset sales and share repurchases while maintaining a strong balance sheet, with a focus on balancing near-term opportunities and long-term resilience [32][33] Question: What are the expectations for operating costs and EBITDA margins in 2026? - Management anticipates overall expenses to grow about 3%, with variable expenses at 2% and fixed expenses at 4%, excluding tax benefits [37] Question: What is the expected impact of the Wyndham Boston conversion to Tapestry? - Management believes the conversion will yield a 40% increase in EBITDA, driven by the asset's location and demand drivers, with returns well above 50% relative to incremental capital [78][79]

Financial Data and Key Metrics Changes - The fourth quarter occupancy was 68.7%, average daily rate (ADR) was $199, and revenue per available room (RevPAR) was $137, reflecting a 1.5% decline in RevPAR year-over-year, driven by a 0.9% decline in occupancy and a 0.7% decline in ADR [16][18] - Total revenues grew by 0.2%, supported by a 7.2% increase in non-room revenues, which outperformed RevPAR by nearly 900 basis points [10][17] - Adjusted EBITDA for the fourth quarter was $80.4 million, with hotel EBITDA margins at 27%, only 44 basis points behind the previous year [18] Business Line Data and Key Metrics Changes - Urban markets outperformed the overall portfolio, with notable RevPAR growth in Northern California (18.5%), Denver CBD (10.1%), and New York City (4.7%) [17] - Non-government related business transient revenues grew by 5%, while group revenues declined by 3% due to the government shutdown impacting demand [8][9] - Leisure demand increased by 1%, with urban leisure segments performing better, particularly in renovated hotels in Waikiki and Deerfield Beach, achieving RevPAR growth of 12% and 10% respectively [9][11] Market Data and Key Metrics Changes - The company noted a strong recovery in San Francisco, driven by a thriving tech economy and significant events like the Super Bowl and upcoming World Cup games [6][7] - Government business demand was negatively impacted by the shutdown, particularly affecting D.C. and Southern California markets [8] - The company expects the lodging industry to achieve slightly positive RevPAR growth in 2026, driven by non-government business travel and increased leisure demand [12] Company Strategy and Development Direction - The company is focused on high-impact capital investments and urban-centric portfolio growth, with plans to continue executing conversions and renovations [15][21] - The strategy includes opportunistic asset sales and disciplined capital allocation to strengthen the balance sheet while returning capital to shareholders [5][22] - The company aims to benefit from upcoming major events, including the World Cup and the 250th anniversary of America, which are expected to drive urban market performance [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, citing moderating interest rates and tax cuts as potential tailwinds for travel demand [12] - The company anticipates a challenging first quarter due to difficult year-over-year comparisons but expects stronger contributions in the latter half of the year [24] - Management highlighted the importance of maintaining a flexible balance sheet to capitalize on growth opportunities while managing costs effectively [20][21] Other Important Information - The company returned $120 million to shareholders through share repurchases and dividends in 2025 [12][22] - The company has addressed all near-term debt maturities through refinancing transactions, extending maturities through 2028 [19][20] - Capital expenditures for 2026 are estimated to be between $80 million and $90 million, with a focus on driving out-of-room spend [23] Q&A Session Summary Question: How much benefit is expected from the World Cup and easier comps due to the government shutdown? - Management indicated that they expect a balanced contribution from rate and occupancy growth, with urban leisure demand anticipated to outperform [26][27] Question: How is capital allocation prioritized between asset sales and share repurchases? - Management stated they are actively recycling capital from asset sales while also considering share repurchases, balancing near-term opportunities with long-term resilience [31][32] Question: What are the expectations for operating costs in 2026? - Management expects total expenses to grow about 3%, with variable expenses at 2% and fixed expenses at 4%, excluding tax benefits [36] Question: What is the outlook for conversions and renovations in 2026? - Management confirmed plans for two conversions per year, with ongoing positive performance from recent conversions [40][41] Question: What factors influence decisions on asset dispositions? - Management considers market conditions, demand drivers, and potential returns on capital when evaluating asset sales [94] Question: Is there appetite for larger-scale portfolio deals? - Management noted that while most active buyers are owner-operators, there is increasing volume for larger single assets, contingent on interest rate cuts materializing [95]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The high - frequency data during the 2026 Spring Festival shows that the "quantity" of travel and tourism consumption continued to recover, but the price recovery lagged; the logistics was differentiated, with strong foreign trade resilience and weak production and consumption logistics; the volume of hotels and scenic spots increased while the price decreased, and the box office was weak; the real - estate market continued to be under pressure, with weak transactions in both new and second - hand housing. With the price increase in the second half of last year and the carry - over effect, it is highly likely that the subsequent fundamentals will shift from "trading price for volume" to "trading volume for price". Currently in a low - interest - rate environment in China, minor fundamental changes have limited impact on the bond market, and the view of a volatile bond market is maintained. The short - end of the bond market depends on the central bank, and the carry - trade strategy may continue. The long - end, especially the 30 - year treasury bond, needs to focus on fiscal efforts and the bank's carrying capacity. In the medium - term, the inflation theme should be monitored [1][4][7][77]. 3. Summary by Relevant Catalogs 3.1. Travel: Long holidays release travel demand, and self - driving travel is popular - The demand for family visits and tourism during the Spring Festival was continuously released, and the overall passenger volume remained high. As of the sixth day of the first lunar month, during the first 21 days of the Spring Festival travel rush, the overall passenger volume increased by 6.0% year - on - year. Among different transportation modes, the waterway had the highest growth rate, with railway, civil aviation, highway, and waterway passenger volumes increasing by 5.3%, 5.5%, 6.0%, and 23.1% respectively [10]. - The cross - regional population flow during the Spring Festival travel rush in 2026 reached a new high in recent years, with a significant increase in travel willingness. The peak occurred on the sixth day of the first lunar month, with a 12.3% increase compared to 2025, a 20.6% increase compared to 2024, and a 46.9% increase compared to 2019 [10]. - There was an obvious characteristic of off - peak travel before the festival. The growth compared to 2025 was mainly concentrated in the post - festival peak, while the improvement compared to 2024 started from the 24th day of the twelfth lunar month. The growth compared to 2019 was throughout the whole period, indicating that the long holiday catalyzed the release of residents' travel demand [11]. - The travel choices during the Spring Festival travel rush in 2026 were dominated by self - driving, reflecting residents' preference for short - distance travel. The proportion of non - commercial highway (mainly private cars) flow reached 81.6%, a 11.9 - percentage - point increase compared to 2019 [18]. - The domestic flight volume, passenger volume, and occupancy rate remained prosperous, but the price recovery was weak, and the pattern of "trading price for volume" was difficult to reverse in the short term. The domestic flight volume increased by 4.0% year - on - year, the passenger volume increased by 6.5%, the occupancy rate increased by 1.2%, and the domestic oil - included ticket price decreased by 1.5% [22]. 3.2. Logistics: Foreign trade shows resilience, while production and consumption logistics weaken in advance - The national logistics near the Spring Festival in 2026 showed a pattern of "strong foreign - trade resilience, high - then - low production logistics, and early - weakening consumption logistics". The container throughput maintained a year - on - year positive growth of 9.3% - 12.2% in the four weeks before the festival, but the growth rate of the monitored port cargo throughput fluctuated and declined [34]. - The production logistics was high in the early stage and low in the later stage. The national highway truck traffic volume increased by 4.3% and 2.6% year - on - year in the four and three weeks before the festival respectively, but the growth rate slowed down and turned negative in the last two weeks before the festival, indicating a rapid contraction of production logistics near the holiday [34]. - The consumption logistics contracted in advance. The postal express collection volume declined from 9.2% four weeks before the festival to 0.5% one week before the festival, and the delivery volume declined from 7.9% to 1.4%, suggesting that the peak of New Year goods delivery was earlier than last year [34]. - The railway transportation was stable, and civil aviation continued to grow. The national railway freight volume fluctuated slightly around zero, and the civil aviation flight volume maintained a positive growth of 4.8% - 6.0% [34]. 3.3. Tourism Consumption: Hotels and Scenic Spots See Volume Increase but Price Decrease, and the Box Office is Weak - The hotel occupancy rate increased, but the price was under pressure. The occupancy rate of the overall sample of Chinese mainland hotels increased from 54.7% five weeks before the festival to 64.0% one week before the festival, a year - on - year increase of 11.7%. However, the revenue per available room (RevPAR) and the average daily rate (ADR) decreased compared to last year [40]. - The scenic spots' business improved. The number of tourists in many provincial - level key - monitored scenic spots increased significantly, and the revenue of some popular scenic spots also increased substantially. For example, the revenue of Zhangjiajie Huanglongdong increased by 79% [42][45]. - Hainan's tourism consumption recovered strongly, with both volume and price increasing. The number of passengers at Haikou Meilan Airport increased day by day, and the off - island duty - free shopping also rebounded significantly. From February 15 - 19, the shopping amount, number of people, and per - capita consumption were 13.8 billion yuan, 17.7 million person - times, and 7,797 yuan respectively, with year - on - year increases of 19%, 24.6%, and - 4.5% [45]. - The Spring Festival movie market had a weak performance in both volume and price. The 7 - day cumulative box office from New Year's Eve to the sixth day of the first lunar month was 5.09 billion yuan, with a recovery rate of only 86% compared to 2019, and the average ticket price decreased by 5% year - on - year [47]. 3.4. Real Estate: Both New and Second - hand Housing Transactions are Weak, and the Volume and Price in First - tier Cities are Declining - The new - housing market had a significant decline in transaction volume. The transaction area of commercial housing in 30 large and medium - sized cities in the two months before the Spring Festival in 2026 was significantly lower than the same period in the past five years. In the first week before the festival, it was only 1.102 million square meters, a year - on - year decrease of 36.6%, and during the Spring Festival week, it was 83,000 square meters, a year - on - year decrease of 20.4% [61]. - The second - hand housing market was weak in both volume and price. The 7 - day moving average (7DMA) of the second - hand housing transaction area in 12 cities was only 247,200 square meters in the first week before the Spring Festival, a year - on - year decrease of 15.3%. The national second - hand housing listing price index continued to decline, with a 7.0% year - on - year decrease in the first week before the festival [61]. - The land market was also sluggish. The premium rate of land transactions in 100 large and medium - sized cities was 2.42% in the first week before the festival, significantly lower than 9.86% in the same period last year [62]. 3.5. How will the Bond Market Price the Spring Festival Holiday Data? - The real - estate market is still in a downward pressure channel, with weak sales volume and price, especially in some first - tier cities where housing prices may decline at an accelerated pace. The consumer data shows a rapid recovery in volume but pressure on prices, continuing the "trading price for volume" trend. With the price increase in the second half of last year and the carry - over effect, it is likely that the fundamentals will shift from "trading price for volume" to "trading volume for price" [77]. - In the current low - interest - rate environment in China, minor fundamental changes have limited impact on the bond market. The view of a volatile bond market is maintained. The short - end of the bond market depends on the central bank, and the carry - trade strategy may continue. The long - end, especially the 30 - year treasury bond, needs to focus on fiscal efforts and the bank's carrying capacity. In the medium - term, the inflation theme should be monitored [77].

Financial Data and Key Metrics Changes - Comparable hotels total revenue was $319 million for the quarter and $1.4 billion for the full year 2025, down approximately 2% and 1% compared to the same periods of 2024 [22] - Comparable hotels adjusted hotel EBITDA was approximately $99 million for the quarter and $474 million for the year, down approximately 8% and 6% compared to the same periods of 2024 [22] - Comparable hotels RevPAR for the full year was $118, down 1.6%, with ADR at $159, down only 10 basis points, and occupancy at 74%, down 1.6% compared to 2024 [23] Business Line Data and Key Metrics Changes - Comparable hotels RevPAR for the fourth quarter was $107, down 2.6%, with ADR at $152, down 90 basis points, and occupancy at 70%, down 1.7% compared to the fourth quarter of 2024 [22][23] - Variable hotel expenses increased only 0.5% in the fourth quarter, while total hotel expenses increased by only 1% for the quarter and 1.9% for the year compared to the same periods of last year [29][30] Market Data and Key Metrics Changes - STR reports industry RevPAR of $100 and average occupancy of 62% for 2025, highlighting the relative strength of the company's portfolio demand despite year-over-year disruption [23] - Top RevPAR performing hotels included the Embassy Suites in Anchorage, Alaska, which was up almost 42%, and the Homewood Suites in Tukwila, Washington, which was up 33% [24] Company Strategy and Development Direction - The company aims to optimize its portfolio by consolidating management and enhancing operational efficiencies, particularly through the transition of 13 Marriott-managed hotels to franchise [8][9] - The long-term goal is to grow the portfolio while maintaining a strong balance sheet and capitalizing on market opportunities, with a focus on disciplined capital allocation [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for incremental leisure travel related to the FIFA World Cup 2026 and acknowledged that the guidance for 2026 could prove conservative [20][35] - The company remains confident in the long-term outlook for the hospitality industry and its ability to drive profitability despite macroeconomic headwinds [21][36] Other Important Information - The company paid distributions totaling approximately $240 million for the full year, or $1.01 per share, with an annual yield of approximately 7.8% based on the closing stock price [17] - Capital expenditures for the year totaled approximately $88 million, with expectations to reinvest between $80 million and $90 million in 2026 [15][16] Q&A Session Summary Question: What was the total drag on RevPAR in 2025 from Liberation Day and the government shutdown? - Management indicated that government-related room nights were down about 12% for the full year, with a potential recovery of about a point in occupancy expected [39][40] Question: Can you take us through some of the building blocks on the expense side? - Management provided that variable expenses are expected to be just under 3% for the full year, with fixed expenses around 4.5% at the midpoint [41] Question: Does the RevPAR growth guidance assume any volatility? - Management noted that the guidance does not reflect much benefit from special events, with expectations for the highest growth in the fourth quarter due to the government shutdown last year [46] Question: How are you thinking about the potential upside to your portfolio from the World Cup? - Management expressed excitement about the potential for incremental business related to the World Cup, emphasizing the need for early bookings and maximizing rates as the event approaches [91][92] Question: How much is conservatism impacting your EBITDA guidance? - Management acknowledged that a portion of the conservatism is due to sold assets, but emphasized that the guidance is primarily revenue-driven [97] Question: How do you expect the Marriott franchise transitions to impact profitability? - Management believes the transitions will enhance marketability and profitability through cost savings and increased operational focus [98][99]

Financial Data and Key Metrics Changes - Comparable hotels total revenue was $319 million for Q4 2025 and $1.4 billion for the full year, down approximately 2% and 1% compared to 2024 [21] - Comparable hotels RevPAR for the full year was $118, down 1.6%, with Q4 RevPAR at $107, down 2.6% [23][24] - Comparable hotels adjusted hotel EBITDA was approximately $99 million for Q4 and $474 million for the year, down approximately 8% and 6% compared to 2024 [21][32] - The company achieved an industry-leading comparable hotels EBITDA margin of 31.1% for Q4 and 34.3% for the year, down 210 basis points and 190 basis points respectively [7][31] Business Line Data and Key Metrics Changes - The company adjusted its strategy to optimize the mix of business at hotels, layering additional group business to bolster market share [5][6] - Variable hotel expenses increased only 0.5% in Q4, while total hotel expenses increased by 1% for the quarter and 1.9% for the year [29][31] - The transition of 13 Marriott-managed hotels to franchise is expected to drive operational synergies and increase marketability [8][102] Market Data and Key Metrics Changes - The portfolio is diversified across 84 markets, with strong leisure travel demand, although midweek demand was impacted by government travel pullbacks [5][6] - Top RevPAR performing hotels included the Embassy Suites in Anchorage, Alaska, which was up almost 42%, and the Homewood Suites in Tukwila, Washington, which was up 33% [24] - The company reported that nearly 59% of its hotels had no new upper upscale or upper mid-scale product under construction within a five-mile radius, reducing overall risk [17][106] Company Strategy and Development Direction - The company aims to maximize shareholder value through strategic initiatives, optimizing its portfolio, and capitalizing on market dislocations [5][9] - The long-term goal is to grow the portfolio while managing capital allocation to safeguard against macroeconomic volatility [9][13] - The company plans to reinvest between $80 million and $90 million in its portfolio for 2026, with major renovations planned for approximately 21 hotels [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the hospitality industry and the company's ability to drive profitability [20][37] - The guidance for 2026 anticipates comparable hotels RevPAR to be flat at the midpoint, with potential benefits from the FIFA World Cup 2026 [18][36] - Management acknowledged the challenges posed by policy-related disruptions but remains confident in the company's ability to adapt and maximize profitability [37] Other Important Information - The company sold seven hotels for a combined gross sales price of approximately $73 million and repurchased 4.6 million common shares for about $58 million [9][10] - Capital expenditures for the year totaled approximately $88 million, with plans for significant renovations in 2026 [15][16] - The company continues to pay attractive dividends, with distributions totaling approximately $240 million for the full year [17] Q&A Session Summary Question: What was the total drag on RevPAR in 2025 from Liberation Day and the government shutdown? - Management indicated that government-related room nights were down about 12% for the year, with a potential recovery of about a point in occupancy expected in 2026 [40][41] Question: Can you take us through some of the building blocks on the expense side? - Management provided details that variable expenses are expected to be just under 3% for the full year, with fixed expenses around 4.5% [42] Question: How is the RevPAR growth guidance structured for 2026? - Management noted that the guidance assumes little impact from special events, with expectations for occupancy growth as comparisons ease [45][56] Question: What is the focus regarding the transaction market? - Management stated that the current focus is on select dispositions where they can redeploy proceeds into higher producing opportunities [60][61] Question: What trends are being observed in midweek occupancy? - Management reported encouraging signs of midweek occupancy growth, especially post-government shutdown, but noted the need for caution due to weather disruptions [66][69] Question: How does the transition of Marriott-managed hotels impact marketability? - Management confirmed that transitioning to franchise agreements increases marketability and provides flexibility for potential sales [101][102]

Summary of Conference Call Notes Industry Overview - The conference call discusses the performance of the domestic travel and hotel industry during the 2026 Spring Festival, highlighting significant trends in both domestic and outbound tourism [1][2][3][6]. Key Points on Domestic Air Travel - Domestic flight supply during the 2026 Spring Festival contracted by 2%-3% year-on-year, which contributed to a demand increase [1][2]. - Air travel volume increased by approximately 14%-15% compared to the previous year, outperforming the overall market growth of 8%-9% [2][9]. - Ticket prices peaked around the seventh day of the festival, with a year-on-year increase of 6%-7%, and a maximum increase of 10% in the two weeks leading up to the festival [1][2]. Key Points on Domestic Hotel Industry - Hotel occupancy rates during the 2026 Spring Festival rose by about 17%-18% year-on-year, while prices slightly decreased by 1%-2% [1][3]. - High-star and mid-high star hotels achieved occupancy rates exceeding 75%, while budget hotels faced lower occupancy due to intense competition [7][17]. - The market is experiencing structural adjustments, with increased hotel supply in smaller cities and surrounding areas of major cities to meet dispersed demand [1][5]. Key Points on Outbound Tourism - The outbound tourism market showed significant recovery, with transportation and hotel volumes increasing by nearly 30% year-on-year [1][6]. - Airfare for outbound flights decreased by approximately 5% year-on-year, particularly for short-haul destinations in Southeast Asia, which have returned to 2019 levels [6][11]. - Hotel prices for outbound travel increased by about 5% year-on-year, indicating a recovery in the market [6]. Key Points on Market Trends and Consumer Behavior - The extension of the Spring Festival holiday by one day positively impacted service consumption, with a notable increase in travel, accommodation, and transportation sectors [1][8][9]. - The overall booking volume increased by around 20% compared to the previous year, with a clear trend of staggered travel before and after the holiday [12]. Key Points on Future Outlook for the Hotel Industry - The hotel supply growth rate is expected to stabilize between 3%-5%, with a cautious outlook on new supply due to market saturation [4][13]. - Hotel prices are anticipated to stabilize and show positive growth starting from March 2026 or during the summer peak season [4][13]. - Structural issues persist in the low-star hotel segment, which faces significant competition and operational challenges, particularly in regions like Yunnan and Guizhou [14]. Key Points on Regulatory Environment and Competition - Ongoing government investigations into environmental practices may impact operators, with potential adjustments in exclusivity, pricing tools, and commission structures [15][16]. - Despite these regulatory challenges, major platforms are expected to maintain their market positions due to structural advantages [16]. - Hotel operators like Huazhu and Atour have shown stable performance during the festival, with cautious strategies in response to regulatory uncertainties [17].

【#酒店现大量白蚁顾客要求退一赔三遭拒#】#涉事酒店回应房间现大量白蚁#2月24日，王女士(化名) 以1107元的价格预订千岛湖某度假酒店，入住第二天其反应房间内出现大量白蚁，"床上、地上全是白 蚁，掀开床垫里面更是密密麻麻的。"王女士表示白蚁已沾染孩子的食物、生活用品，行李箱也被污 染，她提出退一赔三，却被酒店拒绝。24日下午，涉事酒店回应，工作人员在王女士入住时已提醒她， 因临近湖边需关好阳台门，且王女士入住第一晚未反馈任何虫害问题，直至第二晚晚些时候才告知情 况。酒店称日常会定期开展虫害消杀工作，此次白蚁大量出现为首次发生，目前已全额退还王女士两晚 房费，认为王女士退一赔三的要求不合理。（齐鲁晚报） （来源：猛犸新闻） ...

Group 1 - The core viewpoint is that non-popular travel cities or county hotels experienced a revenue peak during the 2026 Spring Festival, reflecting a shift in lifestyle and county development as more young families choose to stay in hotels instead of at home [1] - Young parents, primarily from the 80s and 90s generations, are increasingly opting for hotel stays, seeking clean environments, 24-hour hot water, and private spaces for comfort during family reunions [1] - The change in accommodation preferences is supported by a shift in older generations' attitudes, who now prioritize the comfort and happiness of their children over traditional beliefs about staying at home during the New Year [1] Group 2 - The improvement in county service industry standards has significantly enhanced the appeal of county hotels for young families, who now find upgraded facilities and services that meet their needs [2] - The rise of chain hotels in county areas has led to standardized hygiene management and comprehensive facilities, making hotel stays more accessible and convenient for young couples [2] - The enhancement of county hotel quality is part of a broader trend of service industry upgrades in rural revitalization, transforming the perception of hotel stays from "impossible" to "very convenient" for family reunions [2]

Financial Data and Key Metrics Changes - For the fourth quarter, RevPAR was approximately $182, representing a nearly 1% year-over-year increase, or nearly 3% when excluding Royal Palm [19] - Core hotel Adjusted EBITDA margin improved materially, expanding 230 basis points to 30%, while the non-core portfolio recorded a 280 basis point contraction to 10% [19] - For the full year, RevPAR declined 2% versus 2024, while hotel adjusted EBITDA margin was 26.5%, reflecting a 130 basis points reduction from the prior year [20] Business Line Data and Key Metrics Changes - The core portfolio delivered a solid 3.2% increase in RevPAR during the fourth quarter, or 5.7% excluding the Royal Palm, outperforming the non-core portfolio by nearly 1,500 basis points [9] - Fourth quarter group revenue for the core portfolio increased 13% year-over-year, with double-digit growth in banquet and catering revenues across several key markets [10] - Core hotel adjusted EBITDA increased 13%, or nearly $18 million over the prior year period, despite an over $4 million headwind from Royal Palm being closed [20] Market Data and Key Metrics Changes - Hawaii showed signs of recovery, with expectations for multiyear recovery towards prior peak levels, driven by improving leisure transient demand following extensive room renovations [11] - Orlando's Bonnet Creek complex generated a record fourth quarter RevPAR, up nearly 9% year-over-year, driven by a 15% increase in group revenues [12] - New York delivered its highest fourth quarter group revenue in hotel history, up over 8% year-over-year [13] Company Strategy and Development Direction - The company is focused on reshaping and upgrading its portfolio, concentrating ownership in 21 core hotels with superior growth prospects and aggressively exiting non-core assets [5] - The company executed more than $120 million in non-core sales at a blended multiple of 21x, with a strong track record of successfully recycling capital [6] - The company plans to complete its transition to a streamlined portfolio of high-quality hotels located in premium gateway cities and resort markets [17] Management's Comments on Operating Environment and Future Outlook - The U.S. economy remains on relatively firm footing, with modestly higher growth expectations and easing inflation, which should support the U.S. consumer [14] - The company expects a blended RevPAR growth range of flat to +2% for 2026, with expense growth expected to be low single digits [27] - Management remains cautious about potential geopolitical or macroeconomic volatility impacting short-term group pickup trends and international inbound demand [16] Other Important Information - The company invested nearly $300 million across the portfolio in 2025, with plans for a lower level of capital investment for 2026, estimated at $230 million-$260 million [21] - As of year-end 2025, the company's liquidity was approximately $2 billion, including $200 million of cash and $1 billion of available capacity under its revolver [24] - The company returned a total of $245 million of capital in 2025, including $200 million of dividends and $45 million of share repurchases [30] Q&A Session Summary Question: Earnings trajectory for Hawaii properties - Management indicated that Hawaii properties should see mid-single-digit growth in EBITDA, with RevPAR growth expected in the 2% range [36] Question: Sequential change in Hilton Hawaiian Village performance - Management noted a 37% decrease in group pace for Q1, impacting expectations for performance [44] Question: Non-core asset sales and buyer interest - Management confirmed strong interest from various buyer types, including family offices and owner-operators, and emphasized the goal of completing non-core asset sales within 2026 [70] Question: Impact of labor negotiations in New York - Management expressed confidence in reaching a favorable outcome in labor negotiations, with expectations for continued strong performance in New York [92]

Group 1 - A consumer reported receiving a threatening message from a branch of Orange Hotel in Nanjing after canceling a reservation, which has sparked controversy [1][4] - The consumer had booked a room at the Orange Hotel (Nanjing Xinjiekou Jinling Zhonghuan Store) for February 18-19, but canceled due to safety concerns after being informed that the room required front desk access [3][4] - The hotel stated that both the consumer and the hotel have reported the incident to the police, and investigations revealed that the IP address used to send the message did not belong to any front desk staff, suggesting a possible hacking incident [4][5] Group 2 - The involved hotel, part of the Huazhu Group, had recently undergone renovations and was in a trial operation phase, indicating that staff would not have a reason to send such messages to customers [4] - The hotel has a high rating of 4.7 out of 5, based on previous renovations in 2021, reflecting its reputation in the hospitality industry [4]