Payment Card Transaction - An authorized transaction refers to a debit or credit card purchase where the merchant has received approval from the issuing bank [1]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 9% on a comparable basis and adjusted EPS increased 20% [5][21] - Global RevPAR grew 2% in constant currency, with U.S. RevPAR starting strong but softening in February and March [6][8] - Free cash flow was $80 million, converting from adjusted EBITDA at approximately 55% [22] - The company returned nearly $110 million to shareholders through share repurchases and dividends [6][22] Business Line Data and Key Metrics Changes - Fee-related and other revenues increased by $12 million year over year, driven by a 9% increase in royalties and franchise fees [21] - Ancillary revenue growth was primarily driven by higher credit card and partnership fees [21][18] - The company opened 15,000 rooms, a 13% increase from the previous year, and signed 6% more deals than a year ago [14][15] Market Data and Key Metrics Changes - Latin America RevPAR grew by 25% excluding Argentina's hyperinflation, while EMEA RevPAR rose 6% [7] - International RevPAR grew in all regions except China, where it declined by 8% year over year [7] - U.S. RevPAR is expected to decline about 3% for the remainder of the year based on recent trends [24][42] Company Strategy and Development Direction - The company focuses on growing its system and supporting franchisees, with a strategic emphasis on higher fee par hotels [12][17] - The development pipeline reached a record 254,000 rooms, with a significant increase in net room growth across all regions [14][15] - The company is prioritizing development in higher RevPAR markets and is selective about capital deployment [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their business model during economic downturns, citing historical outperformance [10][11] - The outlook for 2025 has been refined to reflect a more cautious view of industry-wide RevPAR performance, with expectations ranging from down 2% to up 1% [24][25] - Management noted that consumer sentiment is currently weighing on leisure occupancy, but there are signs of positive momentum as summer approaches [41][42] Other Important Information - The company was named one of the world's most ethical companies for the third consecutive year [19] - The company continues to invest in technology innovations to enhance service and operational efficiency [109] Q&A Session Summary Question: Can you elaborate on the changes in the U.S. RevPAR outlook? - Management noted that normalized April demand improved, with RevPAR running about a full point ahead of the prior year, indicating potential for a positive summer [35][36] Question: What is the long-term outlook for net room growth? - Management reaffirmed a long-term net room growth outlook of 3% to 5%, with a record first quarter in room openings and strong signings [47][49] Question: How is the company managing development costs amid rising prices? - Management highlighted efforts to shift sourcing closer to home and negotiate with suppliers to mitigate cost increases, particularly in construction materials [61][62] Question: What is the outlook for ancillary revenue growth? - Management continues to expect low teen growth for ancillary revenues, driven by contract-based income and a strong co-branded credit card program [92][94] Question: How is the company addressing infrastructure demand? - Management reported a steady demand for infrastructure-related travel, with expectations for continued growth driven by federal spending on infrastructure projects [100][102]