Loading...
01/11 03:08
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presented a mixed picture. While there are positive elements such as strategic asset management and a slight increase in adjusted FFO guidance, concerns remain due to weak RevPAR guidance and economic uncertainties, particularly in Florida. The Q&A highlighted management's cautious stance on economic conditions and unclear responses regarding specific financial allocations. The market cap suggests moderate sensitivity, leading to a neutral outlook as the positives and negatives balance out.
Comparable total RevPAR Increased 5.5% over 2023, driven by strong urban performance and favorable calendar shifts.
Urban hotel RevPAR Increased 8.2% on a 5.4% increase in average daily rate, with December RevPAR up 13.2% due to favorable calendar shifts.
Resort hotel RevPAR Declined 150 basis points, with Florida resorts seeing a 5.8% decline due to pandemic hangover effects.
Group room revenues Increased 8.1% over 2023 on a 5.9% increase in room nights, with urban hotels seeing a 10.2% increase.
Hotel adjusted EBITDA $75.9 million, reflecting 16.4% growth over 2023 with a margin increase of 250 basis points.
Corporate adjusted EBITDA $68.7 million, representing almost 20% growth over 2023.
Adjusted funds from operations (AFFO) $0.24 per share, an increase of $0.06 or 33% over 2023.
Dividends paid Total of $0.32 per share for 2024, including a $0.20 stub dividend and a regular $0.03 quarterly dividend.
Mortgage loans maturing in 2025 Totaling just shy of $300 million at a weighted average cost of approximately 4.2%.
Term limit maturity in early 2026 $300 million at an average cost of approximately 5.8%.
Sale of Westin hotel Closed for $92 million, equating to about a 7% trailing NOI cap rate.
Free cash flow yield cap rate on sale Closer to 5% or lower, reflecting the decision to avoid significant renovation costs.
EBITDA disruption from Orchards Inn renovation Expected to be about $1.2 million in the first half of 2025.
2025 corporate adjusted EBITDA guidance Expected to be in the range of $275 million to $300 million, slightly behind 2024 at the midpoint.
2025 adjusted FFO guidance Expected to be in the range of $199 million to $224 million, with adjusted FFO per share expected to be between $0.94 to $1.06.
Room Renovations: Completed room renovations at Bourbon Orleans, Westin San Diego Bay View, and Hotel Champlain, enhancing guest experience and revenue.
Destination Fee Introduction: Introduced a destination fee for food and beverage credit at Bourbon Orleans, contributing to revenue growth.
Spa Renovation: Completed a $1.5 million spa renovation at Westin Fort Lauderdale, expecting rapid payback.
RevPAR Growth: Comparable total RevPAR increased 5.5% over 2023, with urban hotels seeing an 8.2% increase.
Group Revenue Growth: Fourth quarter group room revenues increased 8.1% over 2023, indicating strong market positioning.
Sale of Westin DC: Closed the sale of the 410-room Westin for $92 million, capitalizing on post-election market dynamics.
G&A Cost Reduction: Implemented measures to reduce G&A costs and increase operational efficiency.
Financial Reporting Improvements: New systems implemented for improved financial reporting and data analysis.
Capital Expenditure Rationalization: Rationalized capital expenditures to minimize costs and maximize impact.
Independent Hotel Conversion: Converted Dagney hotel to independent status, improving profitability and reducing expenses.
Future Growth Strategy: Focus on pruning underperforming hotels and exploring external growth opportunities.
Regulatory Issues: The company faces uncertainties related to federal securities laws and the potential impact of regulatory changes on future results.
Supply Chain Challenges: The company anticipates potential disruptions in supply chains, particularly in relation to renovations and capital expenditures.
Economic Factors: There are concerns regarding inflation and job uncertainty affecting leisure travel demand, particularly in Florida markets.
Competitive Pressures: The company is experiencing competitive pressures in the hospitality market, especially with large group sales where competitors like Marriott excel.
Interest Rate Risks: The company has significant mortgage loans maturing in 2025 and 2026, with expectations of refinancing at higher interest rates, which could impact overall interest expenses.
EBITDA Disruption: The redevelopment of the Orchards Inn is expected to cause approximately $1.2 million of EBITDA disruption in the first half of 2025.
Capital Expenditures: In 2024, completed renovations at Bourbon Orleans, Westin San Diego Bay View, and Hotel Champlain, with a total expenditure of approximately $8 million for renovations and improvements.
Orchards Inn Redevelopment: Redevelopment and repositioning of Orchards Inn in Sedona is underway, with $10 million spent in 2024 and an additional $15 million expected in 2025.
Group Revenue Strategy: Continued addition of groups to resorts to preserve transient pricing and improve profitability, with group room revenue increasing 8.1% over 2023.
Independent Hotel Strategy: Converted Dagney hotel to independent status, resulting in a 90% hotel EBITDA increase in the quarter and 40% for the year.
2025 RevPAR Growth: Expected RevPAR growth of 1% to 3% for 2025.
2025 Corporate Adjusted EBITDA: Expected to be in the range of $275 million to $300 million.
2025 Adjusted FFO: Expected to be in the range of $199 million to $224 million, with adjusted FFO per share between $0.94 to $1.06.
Interest Expense Guidance: Assumed maturing loans will be replaced at a high 6% rate, but overall interest expense expected to be slightly lower in 2025.
Quarterly Dividend: $0.08 per share for 2025, with a total of $0.32 per share of common dividends paid for 2024.
Stub Dividend: $0.20 per share stub dividend announced for Q4 2024.
Share Repurchase: None
The earnings call summary indicates a stable financial outlook with positive elements such as increased EBITDA projections, a strong setup for future revenue growth, and a focus on shareholder returns through potential share repurchases. The Q&A section shows management's strategic focus on efficiency and growth, with no major disruptions expected. Although guidance is cautious, the overall sentiment and strategic initiatives suggest a positive impact on the stock price over the next two weeks.
The earnings call summary shows mixed signals: a revised down RevPAR outlook and EBITDA guidance, but positive factors like successful cost management, share repurchase, and refinancing flexibility. The Q&A section highlights urban group booking improvements and optimism about labor costs but lacks clarity on long-term sustainability and Chico opportunity specifics. Considering the small-cap nature, the stock may experience moderate volatility, but the lack of strong positive catalysts or negative surprises suggests a neutral movement in the short term.
The earnings call presents mixed signals: steady financial performance with some positive RevPAR growth and share repurchases, but concerns about debt maturities and economic uncertainties. The Q&A reveals management's cautious stance on cost control and renovation expenses. The market cap indicates moderate stock sensitivity, suggesting a neutral impact on stock price over the next two weeks.
The earnings call presented a mixed picture. While there are positive elements such as strategic asset management and a slight increase in adjusted FFO guidance, concerns remain due to weak RevPAR guidance and economic uncertainties, particularly in Florida. The Q&A highlighted management's cautious stance on economic conditions and unclear responses regarding specific financial allocations. The market cap suggests moderate sensitivity, leading to a neutral outlook as the positives and negatives balance out.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
