Core Insights - The company reported a strong fourth quarter with total RevPAR growth of 7.4%, or 12.5% including contributions from Andaz Miami Beach, driven by solid performance across its resort portfolio [2][20] - The company is optimistic about 2026, expecting Rooms RevPAR to increase between 4% to 7%, and total RevPAR to rise between 3.5% to 6.5%, largely due to the full-year contribution from Andaz Miami Beach [22][23] - The company has successfully managed costs, achieving a comparable portfolio margin growth of 40 basis points on total RevPAR growth of 3.5% [10][39] Financial Performance - The fourth quarter results exceeded expectations, with Adjusted EBITDAre of $57 million and Adjusted FFO of $0.20 per diluted share [21] - The company returned over $170 million to shareholders through dividends and share repurchases, with a focus on enhancing per-share earnings and NAV [3][26] - The company has a strong balance sheet with net leverage of 3.5x trailing earnings, and over $200 million in cash and cash equivalents, providing significant liquidity [21][22] Strategic Initiatives - The company completed the sale of Hilton New Orleans at a mid-6% cap rate and reinvested proceeds into stock repurchases at a compelling discount [3][19] - The company is focused on three strategic objectives: recycling capital, investing in its portfolio, and returning capital to shareholders [4][14] - The company is optimistic about the potential for industry-wide growth from upcoming events such as F1 in Miami and the World Cup [12][68] Market Performance - The company’s resorts, particularly Montage Healdsburg and Wailea Beach Resort, showed strong RevPAR growth of 15% and 19% respectively in the fourth quarter [5][1] - Urban hotels like Marriott Long Beach Downtown and The Bidwell Marriott in Portland also reported solid performance, with RevPAR growth of 12% and nearly 13% respectively [5][8] - The company is cautious about markets like San Diego and Washington, DC, which faced headwinds from softer transient demand and government-related disruptions [8][68] Future Outlook - The company anticipates that the first quarter of 2026 will be the strongest growth quarter, driven by contributions from Andaz Miami Beach and improved performance in Maui [23][24] - The company expects total RevPAR growth to be above the high end of the full-year ranges in the first quarter, with subsequent quarters showing growth between the lower end and midpoint [24][25] - The company plans to continue its capital investment strategy, with a CapEx guidance of $95 million to $115 million for various projects across its portfolio [70][71]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss attributable to common stockholders of $46 million, or $0.67 per diluted share, and an AFFO per diluted share of -$0.02. For the full year, the net loss was $72.7 million, or $1.07 per diluted share, with an AFFO per diluted share of $0.28 [12][14] - Adjusted EBITDAre for Q4 was $28.8 million, while for the full year it was $147 million. Total assets at quarter end were $1.9 billion, with $1.1 billion in loans and a blended average interest rate of 6.7% [12][13] - The company ended the quarter with cash and cash equivalents of $124.4 million and restricted cash of $42.5 million [13] Business Line Data and Key Metrics Changes - Comparable total revenue growth for Q4 was 1.8%, while full-year comparable total revenue growth was 2.8%. Comparable Hotel EBITDA growth for Q4 was 6% and for the full year it was 3.1% [6][8] - The resort portfolio reported a comparable RevPAR of $536, a 4.1% increase over the prior year, and comparable Hotel EBITDA of $32.5 million, a 6% increase [9][19] - Excluding hotels under renovation, RevPAR growth was 2.6%, and comparable Hotel EBITDA increased 6.4% [8][18] Market Data and Key Metrics Changes - The company’s portfolio consisted of 13 hotels with 3,028 rooms as of December 31, 2025 [17] - Group room revenue increased by 7.1% for the full year, with Q4 group room revenue up 0.4% compared to the prior year [20] - The Ritz-Carlton, Sarasota achieved a RevPAR increase of 25.5% and Hotel EBITDA improvement of 48% compared to the prior year [24] Company Strategy and Development Direction - The company has initiated a sale process and engaged Robert W. Baird & Co. as its financial advisor, with no definitive timetable for completion [5] - The strategic repositioning of Cameo Beverly Hills to Hilton's luxury LXR brand reflects the company's commitment to enhancing guest experience and competitive positioning [11] - The company plans to continue redeeming non-traded preferred stock to deleverage its platform and improve cash flow per share [11] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the portfolio's performance despite a challenging operating environment in the hospitality industry [8][28] - The company remains optimistic about sustaining operating momentum and delivering strong results in the future [20][27] - Management highlighted the importance of high-margin ancillary revenue streams and the effectiveness of targeted sales strategies [21][22] Other Important Information - The company sold the 410-room Clancy in San Francisco for $115 million, which allowed for a $65 million debt paydown and retained approximately $44 million in net proceeds [10] - Capital expenditures in 2025 totaled approximately $78 million, with anticipated spending between $25 million and $35 million in 2026 [26] Q&A Session Summary - The Q&A session included inquiries about the company's sale process, future capital expenditures, and strategies for enhancing revenue streams. Management reiterated their focus on shareholder value and operational efficiency [28]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss attributable to common stockholders of $46 million, or $0.67 per diluted share, and an AFFO per diluted share of -$0.02 [12] - For the full year 2025, the net loss attributable to common stockholders was $72.7 million, or $1.07 per diluted share, with an AFFO per diluted share of $0.28 [12] - Adjusted EBITDAre for Q4 was $28.8 million, while for the full year it was $147 million [12] - Total assets at quarter end were $1.9 billion, with $1.1 billion in loans and a blended average interest rate of 6.7% [12][13] Business Line Data and Key Metrics Changes - Comparable total revenue growth for Q4 was 1.8%, while full-year comparable total revenue growth was 2.8% [6][8] - Comparable Hotel EBITDA for Q4 increased by 6%, and for the full year, it grew by 3.1% [8][19] - The resort portfolio reported a comparable RevPAR of $536, a 4.1% increase over the prior year, and comparable Hotel EBITDA of $32.5 million, a 6% increase [9] Market Data and Key Metrics Changes - Comparable hotel RevPAR was flat for Q4, but ADR improved by 5.4% compared to the prior year [18] - Excluding properties under renovation, RevPAR increased by 4.6% and Total RevPAR increased by 6.3% for Q4 [18] - Group room revenue for the full year increased by 7.1%, with Q4 group room revenue up 0.4% [20] Company Strategy and Development Direction - The company has initiated a sale process and engaged Robert W. Baird & Co. as its financial advisor, with no definitive timetable for completion [5] - The company is focusing on high-margin ancillary revenue streams to drive profitability [19] - Recent renovations and strategic repositioning of properties, such as the conversion of Cameo Beverly Hills to Hilton's LXR brand, reflect the company's commitment to enhancing guest experiences [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining operating momentum and delivering strong results in the future [19] - The company is optimistic about opportunities ahead and plans to continue enhancing its diversified platform [27] - Management highlighted the resilience of the portfolio and the positive impact of recent renovations on future performance [11][28] Other Important Information - The company sold the 410-room Clancy in San Francisco for $115 million, which allowed for a $65 million debt paydown [10] - Approximately $149 million of non-traded preferred stock has been redeemed, representing about 32% of the original capital raise [11] - Capital expenditures in 2025 totaled approximately $78 million, with an anticipated spending of $25 million to $35 million in 2026 [26] Q&A Session Summary - The management team addressed questions regarding the impact of renovations on performance and the strategic direction of the company amidst the sale process [28]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss attributable to common stockholders of $46 million, or $0.67 per diluted share, and an AFFO per diluted share of -$0.02 [13] - For the full year 2025, the net loss attributable to common stockholders was $72.7 million, or $1.07 per diluted share, with an AFFO per diluted share of $0.28 [13] - Adjusted EBITDAre for Q4 was $28.8 million, while for the full year it was $147 million [13] - Total assets at quarter end were $1.9 billion, with $1.1 billion in loans and a blended average interest rate of 6.7% [13][14] Business Line Data and Key Metrics Changes - Comparable total revenue growth for Q4 was 1.8%, while full-year growth was 2.8% [7][8] - Comparable Hotel EBITDA for Q4 increased by 6%, and for the full year, it grew by 3.1% [8][20] - The resort portfolio reported a comparable RevPAR of $536, a 4.1% increase over the prior year, and comparable Hotel EBITDA of $32.5 million, a 6% increase [10] Market Data and Key Metrics Changes - Comparable hotel RevPAR was flat for Q4, but ADR improved by 5.4% compared to the prior year [19] - Excluding properties under renovation, RevPAR increased by 4.6% and Total RevPAR increased by 6.3% for Q4 [19] - Group room revenue for the full year increased by 7.1%, with Q4 group room revenue up 0.4% [21] Company Strategy and Development Direction - The company has initiated a sale process and engaged financial advisors to explore options for creating shareholder value [6] - Renovations and strategic repositioning of properties, such as the conversion of Cameo Beverly Hills to Hilton's LXR brand, reflect the company's commitment to enhancing guest experiences [12][27] - The company plans to continue redeeming non-traded preferred stock to deleverage its platform and improve cash flow per share [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining operating momentum and delivering strong results despite a challenging hospitality environment [20][28] - The company anticipates continued benefits from recent renovations and strategic initiatives aimed at enhancing profitability [27][28] - Management highlighted the resilience of the diversified portfolio and the effectiveness of targeted sales strategies in capturing group demand [22][23] Other Important Information - The company sold the Clancy hotel in San Francisco for $115 million, which allowed for a significant debt paydown of approximately $65 million [11] - Capital expenditures in 2025 totaled approximately $78 million, with an anticipated spending of $25 million to $35 million in 2026 [27] Q&A Session Summary Question: What is the outlook for the company's sale process? - Management indicated that there is no definitive timetable for the sale process and that it is exploring all options to create shareholder value [6] Question: How are renovations impacting performance? - Renovation activities have significantly impacted portfolio results, with hotels not under renovation showing better RevPAR growth [7][10] Question: What are the expectations for group revenue? - Group room revenue has shown strong growth, particularly at standout properties like the Four Seasons Scottsdale, which achieved significant increases in both revenue and ADR [21][22]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 of fiscal 2025 were $193.5 million, a 2.8% increase year-over-year, with revenue growth in both divisions [5] - Fourth quarter operating income was $1.7 million, negatively impacted by $5.2 million of non-cash impairment charges in the theater division; adjusted operating income was $6.9 million, a 5.2% increase from the previous year [5][7] - Consolidated adjusted EBITDA for Q4 was $26.8 million, a 3.6% increase compared to the prior year [6] - For the full year, consolidated revenues increased just over 3%, while adjusted EBITDA decreased 3.1% to $99.3 million [7][8] Business Line Data and Key Metrics Changes Theatres Division - Q4 revenue for the theatres division was $123.8 million, a 2.2% increase year-over-year, with a favorable shift in the fiscal calendar contributing to revenue growth [8][9] - Comparable theater admission revenue increased 6.1% over the prior year, while attendance decreased 5.7% [9][10] - Average admission price increased by 12.7% due to strategic pricing actions [10] - Adjusted EBITDA for the theatre division was $24.1 million, just under a 2 percentage point increase compared to the prior year [12] Hotels and Resorts Division - Q4 revenue before cost reimbursements was $60.4 million, a 5% increase year-over-year [12] - RevPAR for owned hotels grew 3.5% during Q4, despite a 1.2 percentage point decrease in occupancy rate [13][14] - Adjusted EBITDA for the hotels division was $7.3 million, an increase of 3.4% compared to the prior year [16] Market Data and Key Metrics Changes - Theatres outperformed the U.S. box office, which decreased by 1.5% during Q4, indicating a 7.6 percentage point outperformance [10] - Hotels outperformed the upper upscale segment, which saw a RevPAR increase of 0.8% [14][15] Company Strategy and Development Direction - The company plans to decrease capital expenditures significantly in 2026, focusing on maintenance and ROI investments in hotels and enhancing customer experience in theatres [19][20] - The company aims to return capital to shareholders while seeking growth opportunities [20][21] - The 2026 film slate is expected to include several strong titles, which could enhance box office performance [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in 2026, particularly in the theatres division due to a favorable film slate [24][36] - The company noted that the demand environment for hotels was mixed, but upper upscale properties performed well [40] - Management highlighted the importance of maintaining a steady product supply in theatres to support attendance [27] Other Important Information - The company ended Q4 with over $23 million in cash and $230 million in total liquidity, with a debt-to-capitalization ratio of 26% [19] - Share repurchases totaled approximately 1.1 million shares for $18 million in cash during fiscal 2025 [18] Q&A Session Summary Question: What should be expected regarding pricing strategy in the theatre segment for 2026? - Management indicated that the focus will be on the anniversary of price changes made in mid-2025, with an emphasis on driving per capita sales in food and beverage [48][49] Question: What is the outlook for leisure versus business travel bookings in hotels for 2026? - Management noted that group bookings remain healthy, with leisure demand performing well, particularly in renovated properties [50][52] Question: What are the company's thoughts on M&A activity? - Management acknowledged the slow hotel transaction market but indicated a willingness to explore opportunities in both hotels and theatres [69][72] Question: How does the company view its asset portfolio and potential divestitures? - Management stated that they continuously evaluate their assets and are open to divestitures if it aligns with long-term strategy [80][81]

Financial Data and Key Metrics Changes - Same-property total RevPAR increased by 2.9%, and same-property hotel EBITDA grew by 3.9% to $64.6 million, exceeding the midpoint of the outlook by $2.2 million [4] - Adjusted EBITDA climbed 11.1% year-over-year to $69.7 million, about $6 million above the midpoint, supported by strong hotel results and lower corporate G&A [4] - Adjusted EPS per share increased to $0.27, up $0.05 above the midpoint and 35% higher than Q4 2024 [4] Business Line Data and Key Metrics Changes - Same-property occupancy increased by 190 basis points, while ADR declined by 1.6%, resulting in a 1.2% RevPAR increase [5] - Resort occupancy increased by approximately 160 basis points, driving total RevPAR up 4.9% and same-property resort EBITDA up 17.4% [9] - Non-room RevPAR climbed 5.5%, contributing to total RevPAR growth of 2.9% [5] Market Data and Key Metrics Changes - San Francisco led the portfolio with a total RevPAR increase of over 32% in Q4, driven by recovery across all demand segments [10] - For the full year, San Francisco's portfolio grew RevPAR by 15.1%, with hotel EBITDA increasing by 58.5% [10] - Urban markets showed mixed performance, with improvements in cities like Portland and Chicago, while markets like San Diego and Washington, D.C. faced disruptions [10][11] Company Strategy and Development Direction - The company executed a deliberate revenue management strategy prioritizing occupancy growth, which drives incremental profit across ancillary revenue streams [6] - A focus on operational efficiencies is expected to expand margins as revenue growth accelerates in 2026 [8] - The company plans to continue its strategic reinvestment program to capture more group catering and ancillary spend [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of hotel demand growth engines and the fading of last year's headwinds as tailwinds entering 2026 [5] - The company anticipates a favorable transition point in the industry, with strong leisure demand and recovery in weekday business travel [18] - The outlook for 2026 is cautiously optimistic, with expectations of demand re-correlating to GDP growth [24] Other Important Information - The company invested $74.6 million in 2025, with expected capital investments of $65 million-$75 million for 2026 [14] - The company completed two strategic dispositions in Q4 for gross proceeds of over $116 million, using proceeds for debt reduction and share repurchases [15] - The company refinanced near-term maturities with a new $450 million senior unsecured term loan, extending the debt maturity profile [16] Q&A Session Summary Question: Group side composition and trends - Management noted that group room nights are down 0.6% for the year, while transient room nights are up 11.6%, indicating a stronger transient demand [35] Question: Resort portfolio cash returns - Management indicated that recent projects have realized a cash ROI in the 22%-26% range, with a strategic reinvestment program averaging 16%-17% annualized cash ROI [42] Question: Lower RevPAR guidance despite strong calendar events - Management explained that the guidance is conservative due to macro uncertainties, with an implied RevPAR growth of 1%-2% for the last nine months of the year [49] Question: Boston market EBITDA growth - Management highlighted that Boston's anticipated EBITDA recovery is driven by higher ADR assets and more meeting/event space, with significant operating leverage expected [78] Question: Balancing CapEx and deferred maintenance - Management clarified that they are not deferring capital and continue to protect real estate through ongoing infrastructure improvements [83]

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]

Financial Data and Key Metrics Changes - In Q4 2025, RevPAR was approximately $182, reflecting a nearly 1% year-over-year increase, or nearly 3% when excluding the Royal Palm [20] - For the full year, RevPAR declined 2% versus 2024, while hotel adjusted EBITDA margin was 26.5%, a reduction of 130 basis points from the prior year [21] - Core hotel adjusted EBITDA margin improved by 230 basis points to 30%, contrasting with a 280 basis point contraction in the non-core portfolio [20][21] Business Line Data and Key Metrics Changes - The core portfolio delivered a RevPAR increase of 6% to nearly $216, significantly outperforming the non-core portfolio by nearly 1,500 basis points [20] - Fourth quarter group revenue for the core portfolio increased 13% year-over-year, with double-digit growth in banquet and catering revenues across key markets [11] - The Royal Palm renovation is expected to generate a 15%-20% return on invested capital, with projected EBITDA doubling from $14 million to nearly $28 million once stabilized [16] Market Data and Key Metrics Changes - The core portfolio outperformed the non-core hotels by an average of 480 basis points in 2025, reinforcing the company's strategic focus [10] - Hawaii is expected to be a significant contributor to earnings growth, with a multiyear recovery anticipated as demand trends improve [12] - New York delivered its highest fourth quarter group revenue in hotel history, up over 8% year-over-year, indicating strong market performance [14] Company Strategy and Development Direction - The company is focused on reshaping its portfolio by concentrating ownership in 21 core hotels with superior growth prospects and aggressively exiting non-core assets [6][8] - Over $120 million in non-core sales were executed at a blended multiple of 21x, with a strong track record of successfully recycling capital [7] - The company aims to complete its transition to a streamlined portfolio of high-quality hotels located in premium gateway cities and resort markets [18] Management's Comments on Operating Environment and Future Outlook - The U.S. economy remains on firm footing, with modestly higher growth expectations and easing inflation, which should support consumer demand [16] - The company remains cautious in its guidance due to potential geopolitical or macroeconomic volatility impacting booking decisions [17] - Management is optimistic about the setup for 2026, with anticipated demand boosts from major events like the World Cup [17] Other Important Information - The company invested nearly $300 million across the portfolio in 2025, with a planned reduction in capital investment for 2026 to $230 million-$260 million [22][24] - As of year-end 2025, liquidity was approximately $2 billion, including $200 million in cash and $1 billion in available capacity under the revolver [25] - The company returned a total of $245 million of capital in 2025, including $200 million in dividends and $45 million in share repurchases [32] Q&A Session Summary Question: Earnings trajectory for Hawaii properties - Management indicated that Hawaii properties should see mid-single-digit EBITDA growth, with RevPAR growth expected to be on the higher end of the 2% range [36][38] Question: Sequential change in Hilton Hawaiian Village performance - Management noted a 37% decrease in group pace for Q1, impacting expected performance despite a strong Q4 [45] Question: Non-core asset sales and potential for core hotel sales - Management emphasized a focus on non-core asset sales, with core hotels accounting for 90% of EBITDA and value, making them less likely to be sold [70][72] Question: Impact of World Cup on Miami property - Management expressed confidence in capturing demand from the World Cup, with the Royal Palm expected to open in early June [49][75] Question: Future growth and potential acquisitions - Management is optimistic about transitioning to an offensive strategy post non-core asset sales, with potential for acquisitions in the future [81][82]

Core Insights - A study by the Groundwork Collaborative highlights the emergence of an "annoyance economy" where Americans face longer customer service wait times, significant junk fees, and healthcare-related hassles, costing them over $165 billion annually [1][4]. Group 1: Financial Impact - Junk fees for various services are costing Americans over $90 billion each year [1]. - Americans waste over $21.6 billion in time due to healthcare administrative issues [1]. - The total financial burden of the "annoyance economy" amounts to $165 billion annually, factoring in both direct financial losses and the value of wasted time [4]. Group 2: Customer Service Trends - The time spent by Americans on customer service calls has increased by 60% over the past 20 years, as companies reduce customer service quality to enhance revenue [2]. - Companies are intentionally complicating simple tasks to maximize profits, often by shifting from ownership models to subscription-based services [5]. Group 3: Subscription Economy - The economy is increasingly leaning towards subscription models, where consumers pay monthly fees for services rather than owning products outright [6]. - Difficult cancellation processes for subscriptions can lead to corporate revenue increases of over 200% [6].

Financial Data and Key Metrics Changes - The company reported a comparable RevPAR of $400, reflecting a 4.2% increase year-over-year, marking the highest quarterly RevPAR in its history [7][8] - Comparable total hotel revenue increased by 4.4% year-over-year, while comparable hotel EBITDA was $70.8 million, representing a 5.3% increase [8][14] - The net loss attributable to common stockholders was $2.5 million, or $0.04 per diluted share, with AFFO per diluted share of $0.40 [14][15] Business Line Data and Key Metrics Changes - The resort portfolio reported a comparable RevPAR of $800, a 1.9% increase year-over-year, with combined comparable hotel EBITDA of $62 million, a 2% increase [9][10] - Urban hotels achieved a comparable RevPAR growth of 11.3%, with the Capitol Hilton benefiting from the presidential inauguration, showing a 19.3% year-over-year RevPAR growth [10][11] Market Data and Key Metrics Changes - The group revenue pace for 2025 is up 7%, with continued growth projected at 10% for 2026 [11][24] - The urban portfolio's comparable total revenue increased by 10%, and comparable hotel EBITDA increased by 39% year-over-year [24] Company Strategy and Development Direction - The company successfully extended its mortgage loan secured by the Ritz Carlton Lake Tahoe, improving its maturity schedule and lowering the cost of capital [11][12] - The company is focused on strategic capital expenditures, anticipating spending between $75 million and $95 million in 2025 to enhance portfolio quality and brand alignment [29][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's resilience amid economic uncertainty, noting strong booking trends and a solid balance sheet [7][30] - The company highlighted the effectiveness of its cost control initiatives, resulting in improved hotel EBITDA margins [20][40] Other Important Information - The company redeemed approximately $90 million of its non-traded preferred stock, representing about 20% of the original capital raise [13] - The company is exploring asset sales, with increased buyer activity noted in the marketplace, particularly for upper upscale assets [52][53] Q&A Session Summary Question: Any trends in group bookings regarding cancellations or macroeconomic volatility? - Management noted that while the booking window is shortening slightly, there is no significant impact on group bookings, with Q1 group revenue up 31% year-over-year [32][33] Question: What is the company's exposure to international inbound business? - The company indicated that international inbound is a small part of the portfolio, with minimal impact observed, varying by market [34][36] Question: How does the company plan to grow EBITDA margins? - Management expressed optimism about margin growth, citing aggressive cost containment measures and productivity improvements [37][40] Question: Can you provide details on the Magnificent Mile conversion? - The conversion is expected to enhance asset value and performance, with minimal CapEx planned for public and meeting space renovations [41][42] Question: What is the status of preferred stock redemptions? - The company explained that redemptions are subject to timing and the structure of the security, with holders able to redeem after three years [46][49] Question: What is the outlook for asset sales and use of proceeds? - Management reported increased buyer activity and plans to utilize proceeds for preferred equity redemptions, share buybacks, and retiring corporate convertible notes [52][54]