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01/11 03:08
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with increased EBITDA and RevPAR, a robust share repurchase program, and a positive outlook for key markets like Maui. Despite some uncertainties in acquisitions and tariffs, management remains confident, and no immediate cost-cutting is needed. The Q&A section highlighted stable demand trends and positive market sentiment, reinforcing a positive outlook. The combination of strong financials, shareholder returns, and optimistic guidance suggests a likely positive stock price movement in the near term.
Adjusted EBITDAre $514,000,000 (up 5.1% year-over-year) due to business interruption proceeds of $10,000,000 related to Hurricanes Helene and Milton.
Adjusted FFO per share $0.64 (up 4.9% year-over-year) also benefited from $10,000,000 of business interruption proceeds.
Comparable hotel total RevPAR Improved 5.8% year-over-year, driven by strong rate growth.
Comparable hotel EBITDA margin 31.8% (up 30 basis points year-over-year) as revenue growth outpaced expenses due to higher rates.
Transient RevPAR Grew by 6% year-over-year, driven by resorts, particularly in Maui.
Group RevPAR Up 7% year-over-year, driven by special events and strong corporate group bookings.
Total group revenue pace Up 3.3% compared to the same time last year.
F&B RevPAR Grew 5% year-over-year, driven by banquet and outlet growth.
Other revenue per available room Grew 2% year-over-year despite a decline in attrition and cancellation revenue.
Share repurchase Repurchased 6,300,000 shares at an average price of $15.79 for a total of $100,000,000.
Total property damage and remediation cost at Don Cesar Estimated between $100,000,000 and $110,000,000 with $20,000,000 in insurance deductibles.
Leverage ratio 2.8 times.
Total available liquidity $2,200,000,000.
Quarterly cash dividend 20¢ per share.
2025 full year adjusted EBITDAre midpoint $1,645,000,000 (up $25,000,000 or 1.5% from prior guidance midpoint).
New Restaurant Openings: The View, a two-story rotating restaurant lounge on the 48th Floor of the New York Marriott Marquis, and Aviv, a new restaurant on the lobby level of the One Hotel South Beach, have been completed and reopened.
Group Room Nights: 1,100,000 group room nights were sold in Q1, bringing total definite group room nights for 2025 to 3,600,000, or 85% of comparable full year 2024 group room nights.
Transient RevPAR Growth: Transient RevPAR grew by 6% driven by resorts, particularly in Maui, which accounted for almost half of the transient RevPAR growth.
Maui Performance: Maui's transient rooms sold were up approximately 70% year over year, with a 16% RevPAR growth in Q1.
Adjusted EBITDAre: Adjusted EBITDAre for Q1 was $514,000,000, a 5.1% increase over last year.
Comparable Hotel EBITDA Margin: Comparable hotel EBITDA margin improved by 30 basis points year over year to 31.8%.
Capital Expenditure Guidance: 2025 capital expenditure guidance is between $580 million and $670 million, including $70 million to $80 million for property damage reconstruction.
Share Repurchase Program: In Q1, 6,300,000 shares were repurchased at an average price of $15.79, totaling $100,000,000.
Portfolio Reinvestment: Comprehensive renovations completed at the Grand Hyatt Atlanta and Buckhead, with ongoing projects at Hyatt Regency Austin and Hyatt Regency Capitol Hill.
Economic Uncertainty: The company remains cautious due to heightened macroeconomic uncertainty, which could lead to deteriorating lodging fundamentals.
Group Lead Volume: Moderating trends in group lead volume have been observed, particularly from government and association groups, impacting future bookings.
Business Transient Revenue: Business transient revenue is expected to remain flat for the remainder of the year due to uncertain macroeconomic conditions.
CapEx Risks: Potential risks to capital expenditure plans due to tariff situations and supply chain challenges, although current guidance remains unchanged.
Labor Market: No significant pressure on labor supply has been reported, but the company is prepared to implement contingency plans if needed.
Insurance Proceeds: Uncertainty regarding the timing and amount of additional business interruption proceeds related to property damage from hurricanes.
RevPAR Sensitivity: For every 100 basis point change in RevPAR, a $32,000,000 to $37,000,000 change in adjusted EBITDAre is expected, indicating sensitivity to market fluctuations.
Adjusted EBITDAre: $514,000,000, an increase of 5.1% over last year.
Adjusted FFO per share: $0.64, an increase of 4.9% over last year.
Total property damage and remediation cost at Don Cesar: Estimated between $100,000,000 and $110,000,000.
Share repurchase: 6,300,000 shares at an average price of $15.79 per share for a total of $100,000,000.
Capital expenditure guidance: $580,000,000 to $670,000,000, including $70,000,000 to $80,000,000 for property damage reconstruction.
Condo development at Four Seasons Resort Orlando: Expected to complete mid-rise condominium building and begin closing on sales in Q4 2025.
Renovations: Completed renovations at Grand Hyatt Atlanta and Buckhead, and reopened The View restaurant at New York Marriott Marquis.
Comparable hotel RevPAR guidance: Maintaining guidance range with a slight reduction to total RevPAR.
2025 full year adjusted EBITDAre midpoint: $1,645,000,000, representing a $25,000,000 improvement over prior guidance.
Comparable hotel EBITDA margins: Expected to decline by 100 to 160 basis points year over year.
RevPAR growth guidance: Between 50 basis points and 2.5% over 2024.
Impact of RevPAR change on adjusted EBITDAre: $32,000,000 to $37,000,000 for every 100 basis point change.
Quarterly Cash Dividend: In April, we paid a quarterly cash dividend of 20¢ per share. Future dividends are subject to approval by the company’s board of directors.
Share Repurchase Program: During the first quarter, we repurchased 6,300,000 shares of common stock at an average price of $15.79 per share for a total of $100,000,000. Since February 2022, we have repurchased $415,000,000 of stock at an average repurchase price of $16.16 per share. We have $585,000,000 of remaining capacity under our board authorized share repurchase program.
The earnings call reflects a positive sentiment with strong group revenue growth in key markets, optimistic 2026 outlook, and increased EBITDA guidance. Despite some uncertainties in specific metrics, management's focus on strategic capital investments and strong liquidity position supports a positive outlook. The Q&A session further reinforced optimism with stable bookings and positive market dynamics, contributing to a positive stock price movement prediction over the next two weeks.
The earnings call presents a mixed picture: while transient revenue and Maui recovery are positive, group room revenue has decreased, and EBITDA margins have declined. The Q&A highlights concerns about group dynamics and wage growth, with management showing caution. Despite some optimistic guidance, the lack of robust transaction activity and unclear management responses contribute to a neutral sentiment.
The earnings call indicates strong financial performance with increased EBITDA and RevPAR, a robust share repurchase program, and a positive outlook for key markets like Maui. Despite some uncertainties in acquisitions and tariffs, management remains confident, and no immediate cost-cutting is needed. The Q&A section highlighted stable demand trends and positive market sentiment, reinforcing a positive outlook. The combination of strong financials, shareholder returns, and optimistic guidance suggests a likely positive stock price movement in the near term.
The earnings call presents a mixed picture. While there are positive aspects like strong RevPAR growth, increased EBITDA, and a solid balance sheet, there are concerns about rising expenses and international demand imbalance. The Q&A reveals cautious optimism but also highlights uncertainties in acquisitions and capital returns. The company's strategic actions, such as share repurchases and dividends, provide some support, but the lack of clear guidance on capital projects and margin pressures tempers the outlook, leading to a neutral sentiment.
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