Greetings, and welcome to the Park Hotels & Resorts First Quarter 2025 Earnings Conference Call. At this time, all participants are in the listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question-and-answer session will follow the formal presentation. You may be placed into the question queue at any time by pressing star one on your telephone keypad, and we ask that you please ask one question and one follow-up, then return to the queue. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Ian Weissman, Senior Vice President, Corporate Strategy. Ian, please go ahead. Thank you, Operator, and welcome everyone to the Park Hotels & Resorts First Quarter 2025 Earnings Call. Before we begin, I would like to remind everyone that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and we are not obligated to publicly update or revise these forward-looking statements. Actual future performance outcomes and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Park with the SEC, specifically the most recent reports on forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. In addition, on today's call, we will discuss certain non-GAAP financial information such as FFO and adjusted EBITDA. You can find this information together with reconciliations to the most directly comparable GAAP financial measure in this morning's earnings release, as well as in our 8-K filed with the SEC and the supplemental financial information available on our website at pkhotelsandresorts.com. Additionally, unless otherwise stated, all operating results will be presented on a comparable basis. This morning, Tom Baltimore, our Chairman and Chief Executive Officer, will provide a review of Park's first-quarter performance and strategic initiatives, as well as an update on our 2025 outlook. Sean Dell'Orto, our Chief Financial Officer, will provide additional color on first-quarter results and 2025 guidance. Following our prepared remarks, we will open the call for questions. With that, I would like to turn the call over to Tom. Thank you, Ian, and welcome everyone. I'm pleased to report that we delivered better-than-expected performance in the first quarter, with RevPAR essentially flat despite a tough comparison to last year when our portfolio significantly outperformed in almost every market, resulting in nearly 8% RevPAR growth compared to the first quarter of 2023. Our Bonnet Creek complex in Orlando and Casa Marina Resort in Key West continued to lead the portfolio following their transformative renovations, with first-quarter RevPAR increasing by 14% and 12% respectively. We were very pleased to see broad-based strength in several of our core markets, with Miami, New Orleans, Puerto Rico, Washington, D.C., and San Francisco reporting above-industry average RevPAR gains. Results from our Hilton Hawaiian Village Hotel, which continues to recover from the labor strike last fall, offset these gains, causing a 420-basis-point drag on our first-quarter results. From a capital allocation perspective, it was another productive quarter as we remained laser-focused on allocating capital to unlock the embedded value in our portfolio and maximize shareholder returns. We initiated over $80 million of capital improvements during the quarter, while we plan to execute the second phase of renovations at both of our Hawaii hotels during the third quarter, alongside the second phase of Main Tower guestroom renovations at the Hilton New Orleans Riverside. We are also excited to announce the upcoming $100 million transformative renovation of the Royal Palm South Beach Miami, with the hotel having recently suspended operations. Construction is expected to begin within the next few weeks. The renovation will include a complete refurbishment of all 393 guestrooms, along with the addition of 11 new rooms. All public spaces will be reimagined, including a new lobby bar, reconcepted food and beverage outlets, and expanded meeting spaces designed to enhance the overall guest experience. Forecasted returns are in excess of 15%-20%, with the expectation of doubling the hotel's EBITDA once stabilized. In 2025, we expect to invest a total of $310 million-$330 million on capital improvements as we continue to reinvest in our iconic portfolio, with the confidence that we can generate higher development yields compared to acquisition yields. We also achieved a major milestone in the entitlements process for the planned 515-room tower and related campus expansion at Hilton Hawaiian Village. In mid-April, the City Council of Honolulu approved our discretionary entitlement applications for the project, subject to certain conditions which we expect to be able to satisfy. We also expect to receive final administrative approval of the project by the end of this year. Additionally, given the historically wide disconnect between public and private market valuations, we remain active in repurchasing shares during the quarter at a material discount to net asset value, having bought back approximately 3.5 million shares for a total purchase price of $45 million and approximately 11.5 million shares over the past year. Finally, despite a very challenging transaction market, we continue to make progress toward our strategic initiative of selling $300 million-$400 million of non-core hotels this year. We have several assets in various stages of the marketing and disposition process, including a pending sale of a non-core hotel at very attractive pricing. However, given the current market uncertainty, we make no assurances as to whether or when the transaction will close. As a reminder, since 2017, we have sold or disposed of 45 hotels for over $3 billion, an effort that has materially reshaped our portfolio and strengthened our long-term growth path. Turning to operations, we are very pleased with the performance of our Bonnet Creek complex in Orlando following our $220 million comprehensive renovation and meeting space expansion project. Results for the complex continue to come in well ahead of expectations, with a 32% RevPAR increase in Q1 at the Waldorf Astoria, driven in large part by a surge in transient revenues of nearly 65%, while the hotel grew market share by nearly 30%. Looking ahead, the outlook for our Orlando hotels remains very strong, with group revenue pace up 9%, while the overall market is expected to witness tailwinds from the opening of Universal's new Epic Theme Park, which is anticipated to accelerate leisure transient demand into the market after its expected opening this May. EBITDA for the complex is currently forecasted to exceed $90 million in 2025, a $30 million increase over 2023. In Key West, Casa Marina delivered another strong quarter, with RevPAR up 12%, driven by a 680-basis-point increase in occupancy and nearly 4% growth in ADR. Despite lapping an impressive first-quarter performance last year, RevPAR growth was over 34% compared to 2023. The hotel also continued to outperform its competitive set, posting a RevPAR index above 112. At The Reach, RevPAR held steady year-over-year, following a 7% increase in the first quarter of last year over 2023. The hotel continued to outperform, achieving an impressive RevPAR index of 119, exceeding its competitive set in March by nearly 300 basis points in occupancy and nearly $100 in rate. As we move through the second quarter, we are seeing continued solid performance from both Key West properties, with RevPAR expected to trend up, low single digits fueled by Casa Marina's continued momentum, strong group booking patterns, and the favorable timing of the Easter holiday shift into April. Turning to Hawaii, RevPAR across our two properties declined by 15% during the quarter, as our Hilton Hawaiian Village Hotel continues to ramp up following the labor strike in Q4. Marginally softer inbound travel from abroad also weighed on results, with arrivals from Japan down 6% and Canada down 1.5%. However, we were very encouraged that U.S. domestic visitation remained flat year-over-year, supported by increased airlift from major U.S. carriers, including new domestic routes into Honolulu announced by both Delta and American earlier this year, which continues to drive healthy inbound travel from the mainland. At our Hilton Waikoloa Village Hotel on the Big Island, RevPAR declined just 2.5% during the quarter, while Q2 RevPAR growth is expected to accelerate to mid-single-digit range, driven by the nearly 90% increase in group revenue pace during the quarter. Additionally, we continue to see benefits from our recent capital investments at both of our Hawaii hotels. At Hilton Hawaiian Village, we completed phase one of the Rainbow Tower renovation in February, which included a full upgrade of 392 guestrooms and the addition of 12 new guestrooms. At Waikoloa Village, phase one of the Palace Tower renovation was finalized, upgrading 197 guestrooms and expanding the inventory with six new guestrooms. We were pleased to see meaningful rate premiums of 25%-30% for the renovated rooms at both resorts in the first quarter, a clear reflection of the quality and impact of the investments made at both resorts. We plan to kick off the final phase of both the Rainbow Tower and Palace Tower guestroom room renovations during the third quarter, with the project extending into early next year. Looking ahead, the long-term outlook for Hawaii remains very favorable, supported by limited new supply expected through at least 2029 and the anticipated improvement of inbound travel from Japan as the dollar/yen exchange rate normalizes. Hawaii is one of the most dynamic and resilient resort markets in the country. With over 3,500 fee-simple guestrooms at a huge discount to replacement cost, Park remains well-positioned to deliver above-average long-term growth for shareholders. With respect to fundamentals over the balance of the year, the near-term outlook for U.S. lodging fundamentals remains uncertain, as the ongoing global trade war continues to delay decision-making and amplify geopolitical tensions, causing booking windows across most segments to narrow significantly and disrupting cross-border leisure travel. April results have been mixed, with preliminary RevPAR growth of 1.6%, driven by double-digit gains in New York, Orlando, and San Francisco, which benefited from exceptionally strong group trends, while preliminary RevPAR in Puerto Rico increased by 25%, offset by weaker performance in Hawaii, Chicago, Seattle, New Orleans, and Washington, D.C. Despite the modest decline in a select few markets, we continue to see pockets of strength in many of our resort and urban hotels. While concerns persist about a significant slowdown in both international and government-related demand, neither has had a meaningful impact on our performance. International demand represents just 10% of total room nights, while government-related business accounts were only 3% of overall room nights. Based on our current forecast, Q2 RevPAR growth is expected to be relatively flat year-over-year, or approximately 290 basis points lower than initial forecast, with Hilton Hawaiian Village representing roughly 80% of the reduction. Despite ongoing macro uncertainty, we remain laser-focused on factors within our control and continue to work closely with our operators as they develop contingency plans for managing operating expenses in the event of further demand softening. Additionally, while the transaction market remains episodic, we will remain prudent capital allocators, advancing our strategic objective of selling non-core hotels to further deleverage the balance sheet and support our robust ROI pipeline. Sean will provide greater details about guidance in his remarks. Overall, I am incredibly proud of the progress we've made in elevating the overall quality of our portfolio, positioning the company for sustained long-term growth, and returning capital to shareholders. Our targeted capital investments are delivering strong results, reinforcing the overall quality of our portfolio and the significant embedded value within our real estate. With that, I'd like to turn the call over to Sean. Thanks, Tom. Overall, we are pleased with our first-quarter results, with Q1 RevPAR exceeding expectations, with reported results of $178, representing a modest 70 basis point decline over the prior year period. Difficult year-over-year comparisons were the primary driver of the decline, following last year's nearly 8% growth rate, with occupancy falling by 210 basis points during the quarter, although offset by continued rate strength, with ADR up over 2.3%. Total hotel revenues for the quarter were $608 million, and hotel-adjusted EBITDA was $151 million, resulting in a nearly 25% hotel-adjusted EBITDA margin. Total expenses were up 3.3% during the quarter, with the majority of the increase related to nearly $10 million of employment tax credits and other relief grants received in Q1 of last year. Excluding these items, total comparable operating expenses increased just 1% over the prior year period. Adjusted EBITDA for the quarter was $144 million, and adjusted FFO per share was $0.46. With respect to our dividend, on April 15th, we paid our first-quarter cash dividend of $0.25 per share, and on April 25th, we declared our second-quarter cash dividend of $0.25 per share to be paid on July 15th to stockholders of record as of June 30th. The dividend currently translates to an annualized yield of approximately 10%. Turning to guidance, as we navigate the increasingly complex global economic landscape and evaluate the impact of the escalated trade war on global travel, we have revised our full-year outlook to reflect a modest slowdown in demand. As a result, we are lowering our RevPAR growth forecast by 100 basis points at the midpoint to a new range of -1% to +2%, maintaining a wider-than-normal range to account for the ongoing uncertainty. Note that most of this adjustment reflects a slower-than-expected recovery at Hilton Hawaiian Village, coupled with modestly weaker transient demand over the next quarter or two. Hilton Hawaiian Village, along with the overall portfolio, will benefit from easier year-over-year comparisons in November and December, following last year's labor strike there and in a few of our other markets. This, along with an 18% increase in Q4 group revenue pace for the portfolio, should help to support low to mid-single-digit RevPAR gains during the fourth quarter. With respect to earnings, we are lowering our adjusted EBITDA forecast by just 3% at the midpoint to a new range of $590 million-$650 million, while hotel-adjusted EBITDA margin range is now 25.6%-27.2%, or down just 50 basis points from our initial range. Finally, adjusted FFO per share is reduced by $0.11 at the midpoint to a new range of $1.79-$2.09 per share. Additionally, as a reminder and included in our original guidance, renovation-related displacement at the Royal Palm South Beach Hotel is expected to reduce RevPAR growth by approximately 110 basis points for the year. This concludes our prepared remarks. We will now open the line for Q&A. To address each of your questions, we will ask that you limit yourself to one question and one follow-up. Operator, may we have the first question, please? Certainly. We'll now be conducting a question-and-answer session. As a reminder, if you'd like to be placed into question queue, please press star one on your telephone keypad. Once again, that's star one to be placed into question queue and star two if you'd like to move yourself from the queue. As a reminder, please ask one question and one follow-up, then return to the queue. Our first question today is coming from Floris van Dijkum from Compass Point. Your line is now live. Hey. Good morning, guys. Thanks for taking my question. Tom, maybe if you could comment a little bit on the planned asset sales and how confident you are in the current market environments and of being able to achieve decent prices as well as having willing buyers. Yeah, it's a great question, Floris. Look, we've got tremendous uncertainty right now for all the reasons that we all know: geopolitical, obviously the tariffs, obviously leading to trade wars. Uncertainty is the enemy of decision-making. I think for many business leaders, men and women, they're probably hesitant. They're probably pausing in many situations and certainly being cautious. No difference in what certainly we're seeing and probably a lot of our peers. Hence the reason that I think everybody's been sort of a little more cautious on forward guidance. I would say that this team has really separated itself in being able to transact even under the worst of circumstances. If you think back since the spin, as we pointed out, we have sold or disposed of 45 hotels, including 14 international, for north of $3 billion. We do have one asset under contract, very attractive pricing. Look, we are cautiously optimistic, but we're not going to comment and give any details until it closes. We just think that's the prudent thing to do. We also have a number of other assets that are at various stages of the marketing process. There's plenty of liquidity. There's plenty of equity capital. There's plenty of debt capital. If I'm a small family office owner-operator, midsize PE firm, these periods of dislocation, I think, can be a really unique opportunity to certainly buy assets. We are being very targeted. We're being very focused. I think we've, again, demonstrated every year that we've been able to sell assets. We've raised the bar a little higher this year, but we're still working our butts off to get as many sales done this year as we can. We are confident that we will achieve our objectives. Thanks, Tom. Maybe in my follow-up, maybe if you can comment a little bit more on Hawaii. Obviously, RevPAR was down, I think, 15% in the quarter. You said it dragged for the overall Hawaii Village. It was a 420-basis-point drag on overall results. How is the ramp of the, obviously, the strike disruption in the fourth quarter, but also the renovations that have just occurred? How quickly will it ramp up in your view? How dependent are you on the international tourists for some of that ramp? Listen, the ramp is taking a little longer as we come out of the strike. Obviously, the strike was 45 days. It certainly had an impact. We are seeing sequentially improvement. I mean, we were down, obviously, Hilton Hawaiian Village about 15%, excuse me, 18% in Q1. As we look at April, we're down about 7%. We're probably going to be down, we think, for the quarter, probably high single-digit, low double-digit. Certainly seeing improvement there. Feel very good about third quarter, probably mid-single-digit positive as we think about RevPAR. As Sean pointed out in his remarks, we've got really favorable and easy comp in Q4. Overall, we think it's going to be a solid performer long-term, intermediate, and long-term. Flores, we could not be more confident about any market than Hawaii, just given the limited supply growth, given the historic nature of the market where its RevPAR growth rate has outpaced the U.S. by 120 basis points over the last 20 years. We feel very good about it over the intermediate and long-term. As it relates to the renovations, we have been very strategic, very thoughtful about it. Carl Mayfield and his team on our design and construction are best in class, best in the industry. We think there is really minimal disruption, particularly since we are lapping disruption from the previous year as we are completing and carefully phasing and staging our renovations there. We do not have any issues in terms of supplies. We have what we need, and I'm confident that we'll be able to get them done sort of on time, on budget, as I think we've done as well as anybody in this sector, particularly given the nature of our portfolio. Thanks, Tom. Appreciate it. Okay. Thank you. Next question is coming from David Katz from Jefferies. Your line is now live. Hey, David. Hey. Good morning, everybody. Thanks for taking my question. Look, I wanted to just follow up on the prior conversation about asset sales. The market will be what it will be. It does look like you've sort of trimmed your core hotels to a smaller number, right? 25-20, if I'm seeing that correctly. Maybe we should just talk about that and sort of what's going on with the five and sort of how we're thinking about that change, please. Yeah. It's a great question, David. We have, as a team, again, back to the earlier comment I made, we have worked our tails off, and I know you know this, and really looking to reshape the portfolio based on additional work. As we've looked at capital allocation, where do we want to be allocating capital? It's really those top 20 assets that really account for about 85%-90% of the value of the company. We have made the decision that those are the core assets. The other remaining assets, we want to work really hard to recycle that capital, to sell those assets and take those proceeds and pay down debt, reinvest in strategic ROI projects, as we're talking about in Hawaii and New Orleans and obviously Miami. Obviously in periods of dislocation, be prepared to buy back stock. Look, we've bought back 26.5 million shares over the last two and a half years. I think we've been as prudent as anybody from a capital allocation standpoint and very confident in those 20 hotels being sort of our core and then working as aggressively as we can to sell the non-core. That can be different combinations. You saw in Oakland last year, non-performing, difficult market. We closed the hotel. You've seen other situations, there are short-term ground leases. We'll work to figure out a solution for those situations. We really want to get the core portfolio down to those core 20 hotels where the real embedded value of the company lies. Understood. If I can just follow up quickly, with respect to the CapEx that's planned, notably Miami, which is important over the course of a year, it seems to me that you've sort of embarked on that. Maybe you could talk about how much of that cost is really sort of and timing is sort of locked in at this point, just given the limited visibility in the marketplace. Thank you. Yeah. It's another great question, David. I would say, and you heard me make this the earlier comment, you've been down. You've seen, obviously, what we've done in Orlando with the Bonnet Creek and how well that's performing and the complexity of that. I say this respectfully. There's not another team in the lodging REIT landscape that has that experience and has that ability to be able to handle it. Miami, this is what we do. Carl Mayfield and the team have studied this situation carefully over the last year. We've bought out many of the subs. We have the GC. We have the permits. We have suspended operations. We will be preparing and fencing around. We're confident that we will deliver before June of next year for the World Cup. We're excited. I mean, this is a complete transformation of guest rooms, public space, lobby, the pool area, food and beverage outlets. We think, obviously, as we said, we think there's a great opportunity not only for 15%-20%, 25% unlevered returns, but the ability to really double EBITDA as well. In a market where you've got such high-end, the Auberge coming, Rosewood, the Aman, the Andaz, obviously, will open at some point. The ability for us to tuck underneath that and be able to really significantly increase rates. Given the quality of that location, Mid-Beach, right next to the Loews, we're really excited about this project as we move forward. We realize there's some near-term disruption, but we think for intermediate and long-term and for real value creation for shareholders, it's the right decision for us to make. We also believe passionately that we can deliver higher development yields than we can acquisition yields. That really plays to our strength as a team. Appreciate it. Thanks very much. Good luck. Thank you. Thank you. Our next question today is coming from Duane Pfennigwerth from Evercore ISI. Your line is now live. Hey, Duane. Hey. Hey. Good morning. Just wondering if you could give us your updated views on markets that you expect to lead this year and the underlying demand drivers and correspondingly the markets that you expect will lag in your portfolio. Has that pecking order changed since one quarter ago? Look, we've talked about Hawaii. We think, obviously, Hawaii is going to continue to ramp up. The Hilton Hawaiian Village, obviously, is on that given the post-strike. Hilton Waikoloa, we still are very bullish on that. We've obviously got a significant increase in group business there. What's happening in Orlando and the double-digit increase that we've seen at Bonnet Creek, we expect that's obviously going to continue to be a really strong performer. Key West, obviously, again, given the transformative renovations there and what we're doing and how well they did last year, we're still continuing to be very encouraged. New York City. I mean, New York is up April, 16%-17%. We feel good about it in the second quarter. It continues. Obviously, you have had very little supply added in New York and continue to be cautiously optimistic there. Caribe has been on fire and continues to perform very well for us there. We are expecting, obviously, Denver, given the management changes that we have made there, certainly to see sequential improvement there as we sort of look out. Overall, if you think about the first quarter, taking out Hilton Hawaiian Village from that standpoint and given the tough comp, I mean, it would have been, obviously, a very strong, nearly 4% increase in RevPAR for us. Given the fact that we have been so disciplined, and I give huge credit to our asset management team, to Sean's leadership, as well as we look on the cost side. I mean, we were up about 3.3% in expenses. But when you take out the one-time anomalies, we were only up about a little over 1%. I mean, it's not just the top line in those markets, but it's the discipline as well on the cost side. I think we've done a really good job on that front. You'll see that kind of energy and effort to continue as we move forward. Thanks, Tom. If I could just follow up on one of those on New York. There's been so much intense media focus on potentially softer international inbound, less Canadian travel, etc. What do you think some of that media might be missing in terms of demand drivers to a market like New York? Thanks for taking the questions. Yeah. Listen, New York, one of the great cities of the world, as we all know. There is no doubt when you think about the frustration, the energy around the tariffs right now. There are going to be some. Obviously, we saw a little bit of decline in the Japanese coming into Hawaii. That is still ramping up, but certainly still a little over 50% below where we were in 2019. International accounts for about 10% of our business overall. If you think about pre-pandemic, inbound into the U.S. was about 79 million. I think we are back to somewhere between 70 million-72 million. About half of that comes from Canada and Mexico. Mexico has been pretty consistent. It has not seen a falloff. You have seen a little bit of falloff in Canada. We are all hopeful, just given the strong alliance and relationship, that that will get resolved and that will sort of resume. Certainly in the near term, that is a little dilutive. Again, for us, it is less than 2%. It is really not that significant to Park in our portfolio. Thank you. Thank you. Next question today is coming from Patrick Scholes from Truist Securities. Your line is now live. Thank you, operator. Hi. Good morning, everyone. Question for you on the group pace. On the prior earnings release, it had been tracking 6%. Now it is 1%, +1% for the year. I am wondering if you can kind of give us an apples-to-apples for 2Q to 4Q. I know or suspect that 1Q benefited from the Easter shift. When you take that out, you sort of naturally, the rest of the year might have been softer. How does that +1% for 2Q to 4Q compare to your prior projection? Thank you. Hopefully, that makes sense. Yeah, Patrick, I believe so. Hopefully, we'll get you a response that aligns with your thinking. In the end, as we look at pace for, I would say, Q2, Q3, pace is roughly just slightly down, 0%-1% for Q2. Q3 is a little bit weaker. It's down 10%. Hawaiian Village, a big driver of that, as well as New Orleans and Chicago, which are both lapping strong Q3 performance on the group side last year. If you recall, obviously, Chicago had the DNC, so it's lapping that. Other than those, I would say the markets are pretty healthy for group pace in Q3. Q4 is a very strong quarter for us, up 18%. A lot of big drivers of positive pace and pretty much across the board. Not too many properties dragging down the performance for group expected in Q4. That is kind of how the pace goes. I would say that I do not think we have seen much decline in the near term. I think the definites we have had on the books, which represent about, at this point, about 90% of the forecast, have held. Occasional cancellation, a little bit of maybe wash, but been offset by rebound, positive rebounds in other areas. It has generally held. I think the group story for the year for us, as we look at it and play into the guidance, is just confidence in the year-for-the-year bookings, which probably is not unique to us. Just kind of thinking through the ability to pick up what's remaining in our reach for the rest of the year. I think the sales teams feel good. As Tom mentioned, with the uncertainty out there, you're just kind of seeing some hesitancy in decision-making right now. Okay. When you said confidence, do you mean there is confidence or more sounds like there's not confidence? I just want to be clear. Thank you. I think there's confidence out there to kind of pick up the remaining reach in the portfolio. We've obviously hedged a little bit of that in our guidance forecast. In anything too, I think the teams are generally positive on potentially transient side to kind of cover for some of that. Okay. Thank you. I mean, if I can slip in one more. What are you seeing for the 2026 and 2027 group trends and how has that changed since you last reported? Thank you. I am all set. I will not speak to 2027. For 2026, we have seen a drop-off. Again, I think as you think through some of the decision-making issues we are dealing with, I think you are seeing that play into it right now. I think it is more kind of the early parts of 2026. Thank you. Next question today is coming from Smedes Rose from Citi. Your line is now live. Hi. Thanks. Hey, Smedes. I just wanted to circle back. Hi. On the Hilton Hawaiian Village, it sounds like sort of quite a few moving pieces there. I mean, do you think realistically you could come in ahead of what you did in 2024 there on an EBITDA basis? I think you did a little over $160 million. It seems like from what you're saying, that might be hard to achieve, but I just kind of want to, maybe I'm not reading what your remarks are. Yeah, we had trouble hearing you. Smedes, just say your question one more time. For the Hilton Hawaiian Village, do you think it's realistic that you can do EBITDA this year that's ahead of what you did in 2024? Yeah. I mean, it's hard to say right now, Smedes, could we get close to it? I think that's possible. I think, again, it goes back to the macro uncertainty. I mean, if you get better visibility and better clarity and confidence resumes at a higher level, I see no reason that we don't get back closer to sort of more normalized behavior. If we end up in an all-out trade war or something along those lines and God forbid we head to a more softer and sort of recessionary type environment, which we are not seeing that at all. This is not 9/11. This is not the great financial crisis. This is not, obviously, the global pandemic. Assuming things sort of normalize or are close to normal, then we're certainly well-positioned. Whether we get back exactly this year, we are very bullish on Hawaii over the intermediate and long term. Fee simple, the barriers to entry, you can't replicate what we have. Obviously, negative supply growth over the last 20 years. Obviously, outperformance from a RevPAR standpoint versus other resorts over the last 20 years. It's where if you're going to be over-indexed, from our standpoint, you want to be over-indexed in Hawaii. Okay. Thank you. I just wanted to ask you, it looks like you took a $70 million impairment in the quarter. Can you just talk about what that was related to? Yeah. It's related to an asset, obviously, is our accounting. And as our team has looked at what we think to be the true value of that subject asset, we made the decision that it was appropriate to write it down and have recognized that accordingly. Okay. So you can't say which one, I guess. Yeah. Not at this point. Okay. All right. Thank you. Thank you, Smedes. Thank you. Next question today is coming from Chris Woronka from Deutsche Bank. Your line is now live. Hey, Chris. Hey, Tom. Good morning. Good morning. Just to circle back to the asset sales for a second, I think everybody's curious. In terms of good outcome for pricing, what's kind of your, Tom, what's your kind of definition of that? I assume it's kind of based on some kind of NOI or EBITDA and then maybe plus saved CapEx that might have been required. I mean, I assume that's the right way to look at it, not some other metric, be it per room or something. Any thoughts you have there would be great. Thanks. Yeah. It's a great question, Chris. I mean, first, look, the assets we're looking to sell are non-core. Embedded in that, obviously, we're looking for attractive pricing, certainly at multiples greater than where we're trading. Obviously, we trade at a ridiculous multiple. We're confident we can be selling at a higher multiple. That gives some price discovery for the market as well. Saving also CapEx and then being able to reallocate that capital strategically back to our core portfolio and/or pay down debt and/or buy stock when and where it makes sense. Obviously, given the dislocation, we've been active on all fronts, continuing to manage the balance sheet, continuing to invest back into portfolio, as well as buying back stock. We're very confident as we start printing and showing certainly some of the transactions that are in the pipeline that they will be very attractive and they'll certainly be accretive from where we're currently trading. Okay. That's great to hear, Tom. As a follow-up, I think Sean may have mentioned that your comparable OpEx kind of X the noise. Last quarter was just up 1%. We know that several of your hotels had some labor resets late last year that would have pushed that number up. Where are you finding the offsets, the savings, and can that continue? Kind of where are you implementing any kind of contingency plans with your operators? Thanks. Yeah, Chris, I'll take that. I mean, clearly, as we're going through those processes last year, the challenges to the teams who come in and budget and whatnot are ultimately to find savings across the board. I think the teams have been successful in doing that. Again, I would say part of the play here too is you think through the mix. Lower occupancy, higher ADR certainly has helped with the flow-through in the first quarter. I think that's part of what you see there. As you think through contingency planning, as we think in the future, clearly we're doing those things with the operators. In an environment where you might see some uncertainty 90 days out, we're certainly outperformance in the near term. It's definitely a tricky situation for the teams on the property to how they think about staffing as they try to react to that dynamic. In the end, I think they're doing an incredible job of kind of staffing and being efficient, knowing that they've got the challenges coming off of some of the labor contracts we renewed last year. I would say as we look forward too, we certainly expect to see some other offsets going forward on the fixed cost side, namely insurance. Certainly, it's a positive market for the insurance going to market. We go to renew on June 1. We're confident we'll get a good outcome there. I think that plays into how we think about maintaining the expenses and keeping it within reason. That said, I mean, in the end, you still have 4%-5% wage growth. And so we're working to find the offsets where we can. Chris, I also just want to say it's strong leadership from Sean, our asset management team, the men and women there who are partnering with our operators. It is also basic blocking and tackling and with a relentless focus on how do we mitigate and how do we manage around. Remember, as you think back through the pandemic and what we were faced with as dire a situation as anybody in the sector, and we got through it. We got through it as well as anybody given those facts and circumstances. So the team is experienced. There isn't anything we haven't seen. Those that sort of write and have comments that we're a little more union-focused and that our cost structure is always going to be higher, they're just wrong. If they did a little bit of work, they'd realize the discipline and talent within this team, and you see how we continue to deliver and continue to work. Really proud of them. We'll see even more of that when you start seeing the insurance when that turns around and what we print versus what our peers print. Okay. Very helpful. Thanks, Tom. Really appreciate your comment and your question. Thank you. Thank you. Next question today is coming from Jay Kornreich from Wedbush Securities. Your line is now live. Hi. Thanks. Good morning. I wanted to first just drill down a little bit further in Orlando, which continues just to perform exceptionally well. Just curious if you can provide just further details as to what's driving the strength there and how much of a positive tailwind the opening of Epic Theme Park can produce and if there's any opportunity for Bonnet Creek complex to produce even more than the $90 million you forecasted. Yeah. We certainly expect that we will exceed the $90 million. If you think about Orlando, people often think about Vegas that has about 45 million visitors. You've got 74 million visitors plus or minus into Orlando. You have, obviously, Epic, where Universal has put in $6 billion or more, I think is the publicly disclosed number. The excitement around that, the first park to open in decades. You've also got Disney coming on the heels talking about another ±$60 billion. Now, I'm not sure all that's theme park. is going to be some shifts. With that kind of backdrop and given it is a strong hub for convention as well, we are very, very bullish on Orlando. Bonnet Creek, in particular, now, given the additional meeting space that we added at both the Waldorf as well as the Signia, we have the ability to be able to layer in groups that we did not have the ability before and then also having a championship golf course. Of course, being a Condé Nast winner last year, a top 10 performer, we are getting rave reviews. The on-site management team just continues to do an exceptional job. We are very, very bullish both near-term and over the intermediate and long term in Orlando. Certainly, again, if you look over the last 20 years in sort of RevPAR growth over the national average, there are several markets, obviously led by Hawaii, Key West, Orlando, Miami, all markets that Park is anchored and where Park has a great footprint. We would encourage investors and listeners to do a little bit more work on that front and see that. You will see that there is, I think, a real competitive advantage for Park as we look out. I appreciate all that color. Just one more follow-up, just going back to more of the macro landscape and just given the uncertainty right now, are you seeing any change in behavior from your transient customers since April, whether it is the corporates pulling back on business travel or business transient travel or changes in leisure customers traveling to or spending at resorts? Are you really just not seeing much change at all at this point? We were down -3% in March. Obviously, you've got the shift of Easter. We expect we're going to end April above the number. We have preliminary, but we think the final numbers will be above the 1.6. Obviously, New York, very strong, as I mentioned earlier, up 18%. Bonnet Creek, up 8%. Caribe, up mid-20s. Casa, up another 14-15%. We are not seeing this is not in a recessionary environment. There is certainly some caution. There are certainly pockets of softness. There is certainly concern. We all share it. There is a lot of uncertainty right now. I think we'd all prefer that we get better visibility. Certainly, despite that, and even the jobs report last week, things still are good. I would like to see some of that uncertainty and some of these trade deals, if they're going to occur, the sooner the better, because I think that will help, I think, provide more confidence as we all move forward. Okay. Thanks very much. Thank you. Next question today is coming from Robin Farley from UBS. Your line is now live. Great. Thank you. My question was really kind of similar to the last question. In your intro remarks, you mentioned, I think you used the phrase modestly weak or transient. And then you talked about some of the challenges with group, maybe some tougher comps later in the year. I guess if you had to sort of rank where the strength or softness is between group and leisure transient and business transient, how would you sort of break down? I mean, it sounds like, obviously, there's a lot going on in the world, and maybe they're all a little bit softer than you thought, or I guess if you were ranking the three. Thanks. I guess for one, Robin, on the group side, again, as I mentioned, the pace and the definites on the books and that holding, I think, is a strength. It's certainly providing that solid base for the business and that to be able to not to worry about that base as much as I think kind of gives it, in this environment, kind of a top billing for me. From the leisure side, which we saw in April, I mean, ultimately, Tom talked a little bit to Hawaiian Village, but the absent Hawaiian Village on the resort side, it's up, I'll call it 8% or so for the month. This was a month where we came in and had dropped the forecast a little bit and outperformed it by about 160 basis points. You're seeing a lot of it's almost like people are thinking through, like, does this feel like a little bit like coming out of COVID, where a lot of the drive-to markets are benefiting and a lot of short-term transient on leisure side. I kind of feel like leisure, to me, ranks second right now in the possibilities as you're thinking about the summertime frames. Transient in a lot of places you might think might be a challenge, but I think we're seeing plenty of markets that have leisure pace up in the summertime. I put leisure second, and I think business transient, I think you think what's capturing that is government and some other elements where I think are certainly pressured. I think business transient, corporate negotiated still shows a very narrow booking window, short-term, but very solid performance so far. Thanks. Just to clarify, April, of course, would have a strong April in a lot of the leisure markets with the benefit of Easter. Is there anything when you sort of when you look out to kind of May and June where there is not as much of a pronounced calendar shift, would you say that leisure is still pacing up outside of the Easter shift? Yeah. I would say when I look at, I think June is healthier than May right now, Robin. May, I think, is just kind of a month where I think we do not have the, I think, the group strength at this point. I think May is a little bit softer month for us in the quarter, softest of the quarter. I think June is stronger with some group backdrop and I think better leisure profile. Okay. Great. Thank you. Yep. Thank you. Next question is coming from Chris Darling from Green Street. Your line is now live. Thanks. Good morning. Tom, wanting to go back to the discussion around capital allocation, just curious how you think about pursuing incremental share repurchases relative to perhaps bolstering your liquidity position. Obviously, a more certain economic outlook today, and you think about some of the debt maturities coming due next year. Yeah. Chris, it's a great question. Sean and I spend a lot of time and the team really studying it. I mean, obviously, we'd like to, to the extent possible, take proceeds. If we're buying back stock, we want to do it on a leveraged neutral basis. We clearly want to continue investing back into the core portfolio as we've talked about it and obviously continuing to manage carefully the balance sheet. I mean, we've got over $1.2 billion in liquidity. Please keep in mind, obviously, the CMBS loan for Hilton Hawaiian Village matures in November, December of next year. We have a plan, and we have optionality. Remember, during the pandemic, we did three bond deals. We pushed out maturities. We paid off all the banks. All the banks made fees. We have great banking relationships. We're not reliant on the banks, and we are carefully studying it. You'll see significant progress made on that maturity this year. We're confident that we'll get it addressed. No fear or concern from that standpoint. Having said that, when you're trading at this kind of pricing, we certainly think buying back stock at these levels is certainly among the best investment decisions that we can make and buying back into this core portfolio at this kind of pricing. It's a balancing act. I think we've demonstrated it, and we'll be careful and thoughtful about it. I think we've demonstrated that over time. That makes sense. Appreciate the thoughts. Thank you. All right. Thank you. Thank you. Next question is coming from Dany Asad from Bank of America. Your line is now live. Hi. Good morning, everybody. Maybe one more question on leisure, if you don't mind. Are you seeing any different patterns of behavior from your consumers staying at your higher-end properties relative to non-luxury resorts? Not in particular, Dany. I mean, clearly, you certainly see better pricing out of the luxury side. You're certainly seeing places like Hawaiian Village where we're opening up channels to obviously drive more volume there because we're trying to recover, which is attracting a little more for discount leisure. I think outside of that, I don't think the patterns have really changed much in the behavior. Okay. One more. Just your non-rooms revenue grew about 200 basis points ahead of RevPAR for the quarter. Is there anything unique to Q1 that would drive this? Just how should we think about RevPAR versus out-of-room spend for the balance of the year with the updated outlook? Yeah. We had some strong group catering contribution, up 9% in Q1. I think as we think about the contribution to overall RevPAR, about 500, I'd say about 500 basis points- 100 basis points added to RevPAR, as you think, as we discussed, group pace a little bit weaker as we go into Q3. I think what's driving it overall for the year, though, and a little bit strength, and certainly in Q1, is just the mix between in-house, kind of corporate in-house and convention has shifted more in the favor of in-house group this year. You're just going to get better F&B production on the catering side. Obviously, with convention business, you're just mostly getting room blocks off of that, and they're eating elsewhere. I think that's kind of a dramatic, more of a significant shift for us this year. Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further closing comments. We really appreciate everybody taking time today, and we look forward to seeing you all at upcoming conferences. Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.