Ladies and gentlemen, welcome to NH Hotel Group H1 2021 Results Conference Call. I now hand over to the speaker. Sir, please go ahead. Hi. Good morning to all. This is Javier Vega-Penichet from IR department. Our CEO, Ramón Aragonés, will share the monthly positive trend that started in May, and how KPIs of ADR and occupancy are improving in the last two months. The recovery of the B2B demand is gaining momentum for the post-summer months. Our CFO, Luis Martínez, will provide a more detailed description of the results and will dive in the cash flow detail, liquidity, and the reinforced capital structure of the group after the milestones achieved in the last months. At the end, a Q&A session will be open to answer questions you may have. Let's start with our CEO remarks. Thank you, Javier. Good morning, everyone, and thank you for joining us today. This is Ramón Aragonés. After a weaker start of the year, the ongoing lifting of restrictions has permitted the travel activity to gradually recover since the month of May, especially in Southern Europe. Together with efficiency and cost control measures, including fixed rent reductions, allowed us to report the first EBITDA improvement since the pandemic started, both in the second quarter and in the first half figures. Net income has improved significantly, partially supported by the net capital gain from an asset rotation transaction. The gradual rollout of vaccination programs, together with the progressive easing of restrictions, has helped us to accelerate the reopening of our portfolio in the last months. Currently, approximately 90% of hotels are open. Revenue improvement has permitted to reduce average cash burn per month from EUR 29 million in the first quarter to EUR 50 million in the second quarter. As occupancy has increased, cash drain has decreased. This improvement has continued in July, reaching an occupancy between 40%-45% at group level, entailing revenues of around EUR 70 million and allowing us to confirm the slightly positive operating cash flow in this month. With regards rates during periods of mobility restrictions, the company follow a volume strategy and with flexibility in terms of cancellations. Once the recovery has started, our focus on rates is back to normal, limiting the discounted rates and reintroducing prepaid rates. As such, ADR in the month of June has been EUR 83 and compared to EUR 66 in the first quarter and EUR 78 in the second quarter. In July, this ADR recovery has continued, and we expect to close July with an ADR closer to EUR 90 and keep increasing in August and September. Our strategy is to focus on those segments that are traveling first to capture the short-term pent-up demand with tactical promotion and rollout of initiatives to adapt the new demand trends, such as extended stays. We have also launched new campaign for the corporate segment, focusing on small and medium accounts. The flexible operating structure and financial resilience proven during the first half of 2021 has allowed to strengthen the capital structure through an equity injection, extension of the syndicated facilities, bond refinancing, and asset rotation. This proactive roadmap implemented has addressed the financial stability with a strong liquidity position of EUR 478 million at the end of June. No relevant debt maturities up to 2026, allowing the management team to focus and capitalize on the industry recovery in the coming quarters. Moving to the detail on the results on Page 4 of the presentation, as I commented previously, the gradual revenue improvement, together with cost control measure, has allowed to report an EBITDA improvement of EUR + 79 million in the second quarter, or EUR + 96 million including IFRS 16, explained by the remarkable 64% conversion rate on the second quarter. In the first six months, this EBITDA improvement amounted to EUR + 12 million or EUR +27 million including IFRS 16. We have done a tremendous effort to reduce the cost base. Overall, in the first six months, we have been able to minimize our non-rent costs by 30%, by adapting the workforce structure in all geographies through temporary layoffs and time salary reduction both in hotels and headquarters. This fixed cost base continues minimized, and a collective dismissal process has been executed in Spain central services at the end of April as part of a global strategy, resulting in EUR 34 million in structural cost savings captured together with other efficiency plans implemented at operating level, such as meeting and event, housekeeping, outsources of back office function, and the optimization and closing of certain of our offices. In addition to the EUR 34 million of structural cost savings already captured, the company intends to achieve additional cost savings during the rest of 2021 and 2022, with the aim of increasing those savings up to EUR 60 million, always in accordance with local employment legislation and leveraging on our digital capabilities with technology as an enabler to boost automation. The effort in efficiency and cost control has allowed to cover all the operating costs before rents or EBITDA in the first six months. With regard leases, these savings amounted to EUR 32 million in the first six months, compared to EUR 23 million achieved in the first half of last year. We continue to negotiate with landlords additional rent reduction for the third quarter of this year. Moving to Page 6 of the presentation, occupancy for the second quarter reached 23%, that compares with 40% in the first quarter. Being June the first month with an occupancy higher than 30% at group level. Like-for-like occupancy in the month of June by country has been the following: Spain 47%, Italy 31%, Central Europe 23%, and 22% in Benelux. An immediate pickup in demand is observed in those countries where mobility restrictions are lifted. This improvement has continued in July, reaching an occupancy between 40%-44% at group level with the following like-for-like detail by country. Spain 55%, Italy close to 45%, Central Europe between 35%-40%, and Benelux around 35%. We expect to keep increasing in August and September. As commented before, ADR has also improved, reaching EUR 83 in the month of June. That compares to EUR 66 in the first quarter and EUR 78 in the second quarter. In July, ADR will be closer to EUR 90. This improvement in RevPAR is translated into revenues. Q2 revenues excluding EUR 39 million of subsidies reached EUR 115 million, almost doubling the reported figure in the first quarter that was EUR 62 million. Including subsidies, reported revenue was EUR 155 million, still - 67% below the reported figure in 2019. With regards to EBITDA, the improvement in the second quarter was +EUR 79 million, explained by the remarkable 64% conversion rate and reaching -EUR 36 million excluding IFRS 16 on a positive figure of EUR 31 million including IFRS 16. In the first six months, the improvement amounted to EUR 12 million. Well, to conclude my intervention, I want to remark our confidence in the future of the group. The recovery in domestic leisure demand is already tangible and is gaining momentum as Europe steps up its vaccination rate and eases restriction. These difficulties faced in early 2021 are behind, and we trust that a gradual recovery is sustainable. There is no doubt that leisure demand will fully recover and very fast. There is also a pent-up demand for meetings among our corporate customers, and we have seen an increase in booking requests for the months after the summer. Although still -35% compared to the number of requests of 2019. Moreover, we have a registered monthly pipeline for September and October that reach 75%-80% of 2019 levels. This translates that we are already perceiving the gradual reactivation of a small business group after the summer, and we expect large group meetings, congresses, and big events could recover progressively from the last month of 2021. With regards the long-term view of the recovery, although sector consensus assumes to recover pre-COVID levels by 2024, the current more efficient operating model, together with the new openings at the Boscolo portfolio and the recent refurbishment in cities such as Dublin, Amsterdam, London, and New York, will allow us to reach a higher profitability compared to 2019, and to target pre-COVID EBITDA one year ahead of sector consensus. Let me now turn the call over to Luis, that will give you more details on the results and balance sheet. Luis, please. Thank you, Ramón. This is Luis Martínez speaking. Thanks for your attendance and good morning to everyone. Jumping to the details of the results on Page 7, reported revenue in the first six months reached EUR 216 million, 74% below 2019 reported levels. Revenues in the first quarter amounted to EUR 62 million and reached EUR 154 million in the second quarter due to reactivation of the activity since May with the easing of restrictions in the different countries. Q2 revenue figure includes EUR 39 million of subsidies, and despite a significant improvement from previous quarters, they are still 67% below 2019 reported figures. Excluding subsidies, Q2 revenue figure almost doubled revenues of the first quarter of the year. By regions, and moving to Page 8, a better performance has been achieved in southern European countries and in secondary cities, especially towards the end of the quarter. This trend has continued in July. It is important to remark that secondary cities in Spain and Italy are already showing a positive evolution compared to last year. Moving to page 10, the reported EBITDA improvement is explained by the recovery of activities in Spain and the lower cost base. Payroll in the first six months has decreased by EUR 58 million, or -33%. Operating expenses declined by EUR 34 million, or -26%. This effort in efficiency and cost control has allowed the company to cover the operating cost before rents or EBITDA in the first six months. Reported lease payments and property taxes fell by EUR 28.2 million, or -83%, mainly explained by the fixed rent concessions achieved during the first half of the year. Excluding perimeter changes and IFRS 16, fixed rent saving agreements amounted to EUR 32 million in the first half of 2021. In Q2, fixed rent savings amounted to EUR 16 million compared to EUR 23 million in Q2 2020 due to the closure of the majority of the portfolio in the same period in 2020. Reported recurring EBITDA improved by EUR 27 million, reaching EUR -6.8 million in the first six months. Excluding IFRS 16, recurring EBITDA improved by EUR 12.4 million, reaching EUR -136.7 million for the first six months of 2021. In the second quarter, this improvement is enlarged due to the recovery acceleration since May. Reported recurring EBITDA in Q2 improved by EUR 96 million, reaching EUR +31.4 million. Excluding IFRS 16 accounting impact, recurring EBITDA improved by close to EUR 79 million, reaching EUR -36.3 million, implying a remarkable 64% conversion rate. Below EBITDA, jumping to page 11, financial expenses increased by EUR 3.4 million, mainly due to the higher gross financial debt compared to the same period in 2020, explained by the full drawdown of the RCF, the EUR 250 million unsecured syndicated loan, and the EUR 100 million shareholder injection since May this year. Net recurring result has improved for the first time since the end of 2019. EBITDA growth explains the EUR 30 million improvement in the net recurring income reported figure. That reaches -EUR 172 million compared to -EUR 202 million reported last year. Non-recurring activity of the period contributed with EUR +27 million, mainly explained by the net capital gain from the sale and leaseback of NH Collection Calderón in Barcelona that amounted to EUR 47 million, partially offset by certain one-off impacts and write-offs related to the refinancing of the debt, and also by the cost of the collective dismissal process. As a consequence, reported total net income improved by EUR 73 million, reaching EUR -145.4 million compared to EUR -218.5 million in the first half of 2020. Moving to the cash flow evolution on page 12, the gradual revenue improvement since May, together with all cost control measures implemented, has allowed NH to reduce the average cash burn per month from EUR 29 million in Q1 to EUR 15 million in Q2, excluding the proceeds from the sale and leaseback signed last month. As you can see in the graph, both the working capital and taxes show positive dynamics. This is mainly explained by a very high conversion of revenues into cash collections due to the lower weight of B2B clients to which typically NH gives great terms. A smart supply chain management with deferred payment terms, certain corporate income tax and VAT refunds in several countries, and some tax postponement facilities in Benelux. CapEx reached EUR 24 million in the first six months and will continue at limited levels during the coming quarters. On June 30th, NH announced the sale and leaseback of NH Collection Barcelona Gran Hotel Calderón for a price of EUR 125.5 million and an initial lease term of 20 years. The lease includes an option for NH for two extensions of 20 years each. This transaction generated a net capital gain of EUR 46.7 million and an estimated net cash after taxes of EUR 113 million. The proceeds will be used to reduce debt. This sustained recovery has continued in July, I can affirm that NH has crossed the operating cash flow breakeven point, landing into the positive operating cash flow area. The group closed June with an available liquidity of EUR 478 million, out of which EUR 447 million is cash and EUR 31 million in the form of available credit lines. This liquidity of June closing already reflects the proceeds of the sale and leaseback transaction and the EUR 100 million equity injection by the majority shareholder, Minor International, executed through a shareholder loan that will be capitalized through a rights offering process after summer and extended to all shareholders. This agreement has provided immediate liquidity and demonstrated the shareholders' support on the turnaround of the business. Net financial debt increased by EUR 17 million from EUR 685 million in December 2020 to EUR 703 million in June 2021. Operating lease liability of the fixed leases under IFRS 16 amounts to EUR 2 billion in our balance sheet as of June 2021. Regarding gross financial debt, and as you can see on page 13, the debt optimization has continued in June with the successful placement of EUR 400 million senior secured bond due in July 2026, and with a 4% coupon. The proceeds of this new bond have been mainly used for the early redemption of the EUR 357 million senior notes due in 2023. In addition, thanks to the strong confidence of our banks on NH, the company has signed in June the maturity extension of its EUR 242 million syndicated revolving credit facility from March 2023 to March 2026. A covenant holiday for the entire 2021 and 2022, enabling the company to face no relevant debt maturities until 2026, allowing us to focus and capitalize on the industrial recovery in the coming quarters. Now, after covering the results of the first half of the year, the team will be happy to answer any question you may have. Thank you very much for your time and attendance. Thank you. Ladies and gentlemen, we are going to start the Q&A session. If you have a question, please press zero one with zero and one on your telephone keypad. Ladies and gentlemen, if you have a question, please press zero and one on your telephone keypad. Zero plus one. We have our first question from Andre Juillard from Deutsche Bank. Please go ahead. Yes. Good morning, gentlemen. Thank you for taking my question. First one is about the MICE segment and the business clientele in general. I wanted to know if you had a decent visibility on the bookings for the autumn, for seminar fairs and all these kind of events, which are generally booked in advance. Second question is about the balance sheet. If I look at your results, I can only say that the job has been done between the high yield bond, the credit line, which has to be converted into capital and so on, the disposal of the asset. If necessary, I guess that you are ready to consider any other option. I insist on if necessary because my feeling is that the leverage you have at the moment is considered as decent. Thank you for your question. The recovery is coming from all the segments, not only from leisure, also from corporate, MICE, congress, et c. We are still far from where we would like to be, but we are having a very nice on the books for the coming four months, from B2B and small business accounts, and also for small meetings. For the big meetings, I think we have to wait until the end of this year. Believe me, things are changing really faster than we expected. My personal feeling is that in the last quarter of this year, we will have a positive surprise from all the segments. Regarding question on the balance sheet, well, indeed, thank you for your recognition on the job that we have done, on the work we have done on the balance sheet. Indeed, we are very, let's say, confident on the fact that there is no relevant debt maturity until 2026 after this refinancing, which gives us a lot of headroom in terms of time. We have no governance pressure until the end of 2022. The full 2021 and 2022 are waived, no pressure on governance. For us, the priority for now onwards is deleveraging. At the same time, of course, ensuring liquidity. Liquidity has been key in this crisis, and it has always shown a very strong liquidity level. Even in the worst moments, we have been honoring our payment commitments, we have been ensuring operational continuity, and we have always kept a very high level of liquidity. Indeed, for us, continuing ensuring liquidity plus starting a deleveraging process is our priority. In this sense, of course, we will rely on the improvement of the business to stabilize the cash flow. At the same time, we have already given the first step. We have an asset disposal process, and the ultimate goal of that asset disposal process is to reduce debt. As we have explained in several calls, even in the process of the refinancing, our priorities are, first, is ensuring liquidity, simultaneously, a sustainable debt management profile. Of course, and at the same level, start a deleveraging process as we did in the previous years before COVID. Remember that our leverage was extremely low. At the end of December 2019. Thanks to that, we have half the headroom to react in this crisis, raise liquidity, and ensure operational continuity. We think we have done the right thing in this crisis. Okay, thank you. Maybe one additional question about leases. You had, I guess, a permanent discussion with your landlords since the beginning of this crisis. You've been able to delay or to reduce some rents. Could you give us some more color about the general conditions that have been renegotiated with landlord? Has the average duration of the lease been extended? Happy to have some more detail about that aspect. First of all, let me say that what we have with most of our landlords is a partnership, so we are cooperating with them many years. It is a long-term relationship. I have to say that most of them, they really helped us during this period, and they are still supporting us. We have achieved very nice agreements. I would say that we don't have nothing to regret from our negotiation with them. We are not merged for the coming years. In some cases, we have extended the lease one year or something like that. In most of the cases, I would say 70% of the cases, what we got from them is simply helps. They really supported us. They are very happy with the company. In most of the cases, as you know, we have many hotels with different landlords. It's quite a strange case that we have only one hotel with a landlord. From the very beginning, we find a fantastic, let's say, approach from them. We are still negotiating some agreement for this year. We will have some additional help from our landlords for 2021. We feel comfortable with this agreement that we have reached with them. Okay. Thank you. Thank you. Next question from [Tom Parel from New Street Research. Berman] please go ahead. Hi, Luis. Thank you for the results presentation. I mean, a good outcome. Maybe can I start by asking you a couple things? Your liquidity at EUR 478 million, I think this is post the asset disposals you've recently done. Is that EUR 150 million-EUR 200 million number included in the EUR 478 million, is my first question. Second, do you see the need for any further asset disposals at this point? Do you feel the need to do any more disposals in Benelux or Spain as the case may be? Number three is, what are you seeing in terms of booking trends? I remember you mentioning you have visibility on four weeks, or sometimes it's only a week, but are you able to outline, we're nearly at the end of August, sorry, at the end of July, so what kind of booking trends are you seeing for August and September? Thank you. Hi, Tom. This is Luis. How are you? Yes, this figure, the EUR 478 million, includes the proceeds of the asset disposals. Correct. Okay. Your question on further disposal, Ramón, can you give more color? Yes. Hi, Tom. Listen, the idea of the company is to conclude another transaction before the end of this year. We are exploring several options. We are still working on it. We are far from finishing. We will communicate to all of you once we will have further information. Obviously, today, we are not in a hurry. The situation is totally different than it was just three months ago. Anyway, we have the commitment to closing this transaction before the end of the year, and we will do it. Regarding booking trends, listen, the situation has totally changed. A radical change of trend right now. Honestly, we couldn't expect what is happening right now just three months ago. From May, the situation had changed. We have started in Spain, but now it's in all the countries where we have a strong presence, with the exception of South America, where fortunately they are behind. Now we are growing in all the markets. We are growing in Spain, we are growing in Italy, in Germany, and in Benelux. Just to give you some numbers, as I mentioned before, we grew 40% in June versus May. We are growing in July another 40% versus June in July, and we expect to grow about 30%, 40% in August. For me, the most important is how we are managing the ADR because you have a look to the numbers, you will see that despite that we are growing in occupancy and we are opening more hotels. Now we have 90% of the portfolio opening. We have been able to doing so without sacrificing ADR. Every month we are growing in ADR. We expect to finish August above EUR 90, let's see what happen in September. Don't forget that in 2019, we used to have about EUR 100. We are not really far from the numbers in terms of ADR that we got in 2019. We are extremely optimistic for the future. We are now building a very good on the books for the coming months. We are going to start September with higher revenues than the total revenues we got in May, just today. You can imagine that it's still one month coming. Honestly, I think it's complicated to come to final conclusion, but for sure NH has overcome this crisis. Okay. Ramón, if you're going to grow 30%-40% even in August over July, the question I have is, do you anticipate needing further liquidity through further asset disposals? Is the EUR 478 million not enough to carry through next year? Especially since you say you're doing extremely well. On the one hand, I'm hearing that, yes, you may do further asset disposals in December. It's all lined up, and when the time is right, you will tell the lenders. On the other hand, I'm hearing recovery is good. I'm asking, do you need to go to that step where you make the asset disposals, or are you comfortable with the EUR 478 million of liquidity to carry through to next April, March? I feel comfortable with the current liquidity of the company. As you know, and you know me, I don't like to have debt. We are going to reduce the debt as soon as possible. I don't feel comfortable at all with the level of debt to the company, so we have the commitment to reduce the debt. That's the reason why we are going to keep with our strategy of asset rotation to reduce debt, the sooner the better. This is the reason why we are now keep with this strategy of asset rotation. This is not because need of liquidity, because we don't need liquidity right now. Right. I think it's quite important to reduce debt. Let me add, Tom, because you know that for us liquidity is extremely important, but at the same time, deleveraging is our commitment. As a first step, you know we have a very flexible facility that can be reduced and drawn again. We have this RCF. What we have done in July is used a portion of that liquidity to reduce the outstanding amounts, the drawn amount of the RCF, of the revolver. We don't need to sit on EUR 478 million of liquidity. That's not the plan. In July, we have already reduced that liquidity by reducing RCF. Not liquidity, the cash, because you know the RCF is liquid, so at any moment we can draw it again. It's a fully committed facility. It has no covenants until the end of 2022. It has been extended to 2026. I think we are managing a very smart liquidity strategy, combining an optimization of the outstanding debt, and therefore the financial expense. At the same time ensuring that the company has a very reasonable and well-sized level of liquidity. As Ramón has explained, and as we explained in the roadshow of the bond, our plan is during the year, once we have full visibility on the stabilization of the cash flow and also visibility on Q1 2022, the plan is to repay entirely or reduce entirely the outstanding amount of the RCF. As a second step, we don't know when we will start with that. Obviously, it will be when the business is fully recovered. We will continue with the deleveraging strategy. We have other loans to repay, but we are not in a hurry. We don't have short-term maturities. We don't have covenants that put pressure on us. I think we have the best of the world. We have the liquidity, we have long maturity, we have asset disposal process, with very good terms. Therefore, we think we have a clear priority, that is deleveraging. Okay. No, that's very clear. No, thank you for that. Thank you very much. Thank you. Next question from Miguel Medina from ArmanexT. Please go ahead. Yeah, good morning. Sorry, I was on mute. Two questions. The first one, I'm afraid, is a follow-up on the previous question, and I think that you have already answered it. Just to clarify. I think that when you announce the asset disposal plan, you were aiming for around EUR 200 million, of which you have done a bit more than 50%. I think that at the time, you did not consider the capital injection from Minor, the EUR 100 million. If I combine the two, you have basically achieved the EUR 200 million that you were aiming for from asset disposals. Based on what you have just answered, your idea is that if you can, you are going to accelerate that process, as you have done so far this year, in order to reduce the leverage. Am I correct? Yes. You are right. What happened with the increasing capital of Minor, that was some months ago. Yeah. We didn't have the certainty that we have right now. Anyway, that means that we feel more comfortable. That it doesn't mean that we are going to change our goals. Our strategy is clear, our strategy is known, and we are going to keep with the same goal that we had before, try to reduce debt as soon as possible. Okay. The second question, apologies if you have mentioned this before. What was the cost in the end of the collective dismissal program? I think that from the number of people that you announced originally, there was a reduction after you reached an agreement with the unions. I was trying to see if you could provide us with the cost of the lay off plan and compare that with the savings that you have achieved so far, which I believe you mentioned EUR 34 million, EUR 35 million with the possibility of growing that to EUR 60 million over time. Well, we are still working on it because we are, for example, right now, like I was saying, the collective dismissal in Italy. We are still with some processes worldwide. We were finishing in Spain. The negotiation in Spain was better than expected. For the moment, we can't, let's say, give you the final figure. Anyway, I would say it has been an interesting process for the company, necessary process, and we're still happy with the result. When we finish with all this collective dismissal worldwide, that will be maybe the first quarter of 2022, we will communicate the final figures to all of you. Okay. You basically have achieved so far EUR 34 million, EUR 35 million as a result of this plan, and if everything goes according to plan, you will hit around EUR 66 million in a year and a bit. Yeah, this is the total savings, including a structural measure, like reducing of the number of offices and some additional decision that we have taken with a structural cost. It's not only payroll. Payroll is going to be about 85%, but it's another 15% coming from different sectors. Sorry, because the line was cut off. Payroll will be around 70% of these total savings, and the balance will come from other items. Is that what you said? Yeah, more or less. Okay. Thank you very much. This is still alive. The EUR 60 million is the goal, and you know we use our goals, but it's a live program. The commitment with our board is to conclude this process before the summer of 2022. Okay. Thank you. Thank you. We have one last question registered for the moment. If you wish to ask another question please press zero one on your telephone keypad. Next question from João Safara from Banco Santander. Please go ahead. Yes. Hi, good morning. It's not really a question, but if you could remind us what's your targeted leverage levels. Assuming that we're now entering the stage of gradually cash flow generation starting on the third quarter. What's the goal here? If you can remind us what are your targets now, or if they are the same as they were before. The other one would be if you could also remind me when do you expect the EBITDA, let's say, a normalized EBITDA level. When do you expect to reach the normalized EBITDA level? Is that 2023 or 2024? I believe Ramón said one year before, I guess this would be 2023, but if you could just confirm that. That's it. Thank you very much. Hi, João. On the leverage target, as you can imagine, and you know that the DNA of NH in the past year has been to reduce leverage and to keep a very low level of leverage. Of course, the situation has changed dramatically. We have gone through the worst crisis probably in the history of this industry, and now thinking of going back to those levels of leverage before the crisis, it seems to be a real challenge. We think that a company like us needs to reduce debt, and that's our commitment. That's why we are doing this as a disposal process. That's why we are putting such focus on managing working capital. We don't have a specific number. We don't have a specific target, only that we want to go back to sustainable levels of debt. Answering your question, João, we expect to come back to a normal EBITDA, let's say, about EUR 300 million in 2023. We didn't expect to reach the former figures in terms of revenues until 2024. To be totally honest with you, the situation is changing so quickly that I couldn't say right now what is going to happen. For sure it's going to be sooner than the market consensus because our cost reduction plan. For sure in 2023, we will come back to the previous figures at EBITDA level. Perfect. Thank you very much. Thank you. We don't have any more questions for the moment. Ladies and gentlemen, if you wish to ask your question, please press zero one on your telephone keypad. Zero and one on your telephone keypad. We have a new question from Miguel Medina from ArmanexT. Please go ahead. Yeah. Thank you. One final one. I'm just curious because you are active renegotiating the leases in which you have been very successful. Also, you're trying to reduce the fixed element of the lease and increasing the variable element of the fixed. On the other hand, obviously, you have also been involved in the asset disposal plan, the sale and leaseback of the Calderón, your parent company entering into a transaction with Azora. I'm just curious to see if what you are doing on the leasing side, the higher variable component, et c, is having an impact on the asset valuations. There is such a demand for hotels that you don't notice a negative impact on the asset valuation from the changes on the leases? Well, as you know, the investor used to pay attention to the fixed rent. Variable is, let's say, a complement, is something that could happen or not. In our case, I have to say that we are not suffering this, let's say, problem from the investor, because obviously we sold trophy assets, Calderón in Barcelona. Right now we have several options, and we are exploring different possibilities, but in any case, we are not ready to sell in distress, let's say. We only will close an operation if it is according to our standards. Okay. Thank you very much. Thank you. Thank you. We don't have any more questions, ladies and gentlemen. If you wish to ask a new question, please press zero one on your telephone keypad. It seems like we don't have any more questions. Back to you for the conclusion. Okay. Thank you very much for attending this call. We expect you have a good summer holiday, and keep in touch with the IR department for any further questions you may have. Thank you for your time. Thank you. Thank you. Thank you, ladies and gentlemen. This concludes today's conference call. Thank you all for your participation. You may now disconnect your lines.