Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We make great strides towards continuing to unlock incremental embedded growth by announcing that the Renaissance Pittsburgh Hotel will join Marriott's autograph collection, and that the Wyndham Pittsburgh University Center will be converted to a courtyard by Marriott |
| Our growth profile will be bolstered by our high quality portfolio, which is built to capture the growing live work, play trends in urban markets, the continuing and future upside from our announced conversions, the embedded incremental growth from executing on our future pipeline of conversions and ROI opportunities, the tailwinds from our recent renovations in South Florida and Southern California |
| We feel very good about where we are in our discussions and we are a tenant that's in good standing |
| The strong results that we've shown and we expect to continue are the direct results of what we've been executing around curating a portfolio that benefits from seven day a week demand in key urban markets |
| The execution of these initiatives has been made possible by the strength of our balance sheet, which also gives us the capacity for external growth |
| Today, our balance sheet is well positioned with an undrawn corporate revolver |
| As you mentioned, our results were strong in the fourth quarter of 6.6% and it's benefiting obviously from our conversions, but we saw strength in South Florida, which was up 10% in fourth quarter, Southern California was up |
| Our strong execution and results this year validate our thoughtful efforts to curate a high quality portfolio with multiple channels of growth, which is giving us the ability to outperform on a relative basis this year and beyond |
| Now, relative to our operating performance for the quarter, our RevPAR grew by 5.2% over the prior year, outperforming the industry by 4x and our competitive set by 290 basis points |
| Our year over year, RevPAR growth accelerated from the third quarter by 180 basis points, benefiting from a balance between occupancy and ADR demonstrating additional run room and demand, and continued pricing power across our portfolio |
| We are pleased to see this positive momentum carry into January, which achieved close to 6% RevPAR growth |
| As long as well as it's just a strong economic base |
| These markets continue to benefit from robust group demand, the ongoing improvement in business travel, and emerging international inbound demand |
| Additionally, urban leisure remained healthy as large scale events related to concerts and sports, as well as other leisure activity drove strong weekend demand |
| The execution of these transactions is a testament to our strong lender relationships and favorable credit profile |
| The fourth quarter also saw exceptional growth at our three conversions in Charleston, Mandalay Beach and Santa Monica |
| In terms of segmentation, the positive momentum in business travel led our BT revenues to increase to 79% of 2019 levels a new high watermark and a 400 basis point improvement from the third quarter |
| Our growth in BT revenues was balanced between 7% growth in room nights and 6% growth in ADR, contributing to our weekday revenues achieving 94% of 2019 levels, which was a hundred basis point sequential improvements from the third quarter |
| In addition to strong demand from SMEs, we are also seeing continued improvement in production from traditional BT sources such as finance, technology, pharma, and aerospace |
| Relative to group demand remains healthy in addition to strong attendance at citywide |
| The growth in small self-contained group is driving the improvement in this segment, all of which led our fourth quarter group revenues to increase by mid-single digits over the prior year |
| We expect small group demand to remain strong and our hotels are in the sweet spot to cater to this growing segment, given the attractiveness of our meeting space configuration to this segment |
| Finally, we were encouraged to see healthy leisure trends persist throughout the quarter, especially around holidays, benefiting our resorts, which achieve 6.6% RevPAR growth with many people settling into a hybrid schedule |
| Weekend demand continued to be strong across our portfolio especially for urban weekends, which outperformed our portfolio |
| The strength across all segments of demand during the fourth quarter, combined with strong growth of 8.1% in our non-room revenues led our total revenues to increase by 5.7% |
| This strong growth translated into positive year-over-year EBITDA growth of 2.3%, which speaks to our lean operating model |
| Turning to capital allocation, our initial conversions are yielding strong results that are pacing ahead of our expectations |
| We talked about in our prepared remarks that Boston's strong, given its citywide base and self-contained |
| The strong results from these assets bolstered our confidence in the next wave of our conversions |
| But what I would say is that we feel good about what's in our pipeline relative to where our current balance sheet sits |
| Statement |
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| Total fourth quarter hotel operating costs were only 4.3% above 2019 levels meaningfully below the aggregate core CPI growth rates since 2019 |
| As we look forward, San Francisco, we acknowledge, as we said in our prepared marks is going to have a soft citywide |
| On a per occupied room basis, total hotel operating cost growth was limited to 3.4%, which is 260 basis points lower than the third quarter, underscoring the benefits of our portfolio construct and our initiatives to redefine our operating cost model |
| I don't believe it's damaging the brand |
| But I would say that generally, Tyler, that if you look at the headline risk that San Francisco had, it's continuing to subside |
| Chris Darling And then maybe just following up on the comments you just provided around the Bay Area, if I look at the overall portfolio I see that 2023 EBITDA margins finished about 300 basis points below comparable 2019 levels |
| Had we not had confidence in the ability of the portfolio to get ahead of that |
| Do you anticipate that there's going to be a pickup in activity in the back half of this year? Or at this stage, do you think some hype is likely to be unrealized? Leslie Hale Look, I think as we sit here today, transaction volume continues to be constrained |
| In the fourth quarter, our CBD benefited from the citywides and offices from self-contained, our Silicon Valley in the fourth quarter saw just weak transient and I think that was reflected in the numbers that we put on our supplement |
| Dori Kesten Sean, while I have you, you said that the expiration of swaps was the headwind in your ‘24 FFO guide |
| The cadence of that or the split of that rather is, we expect the pressures around fixed costs to continue throughout 2024 |
| Forward-looking statements made on this call are subject to numerous risks and uncertainties that may lead the Company's actual results to differ materially from what had been communicated |
| That optimism has sort of flushed itself out through increased conversations in general |
| Turning to the current operating cost environment, recent inflationary pressures continued to normalize during the fourth quarter |
| I mean, there's going to be some markets that outperformance on markets that underperform |
| And so, we see things that are materializing today as a result of the current backdrop |
| Bill Crow I'm just curious, Leslie, at ALIS, one of the main discussion points was all the deferred CapEx out there, and it's not really a big issue for the res except for the fact that it kind of damages brand reputation |
| I think the way we're thinking about the payout ratio, sort of, I'll call it normalized in this environment, is going to be less than it was in 2019 for all lodging REITs |
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