Greetings and welcome to the Park Hotels & Resorts 3rd Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Ian Weissman, Senior Vice President, Corporate Strategy. Please go ahead. Thank you, operator, and welcome everyone to the Park Hotels & Resorts 3rd Quarter 2026 Earnings Call. Before we begin, I would like to everyone remind 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're not obligated to publicly update or revise these forward-looking statements. Actual performance, outcomes, and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Park Hotels & Resorts Inc. 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 differ to from those contained in the forward-looking statements. In addition, on today's call, we will discuss certain non-GAAP financial information such as adjusted FFO, and adjusted EBITDA. You can find this information together with reconciliations to the most directly comparable GAAP financial measure in yesterday's earnings call as well in our 8-K file 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 hotel basis. This morning, Tom Baltimore, our Chairman and Chief Executive Officer, will provide an update on our strategic initiatives and review Park's 3rd quarter performance and outlook for the year, while Sean Dell'Orto, our Chief Financial Officer, and Chief Operating Officer, will provide updates on our capital investments and additional color on 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 Park delivered another outstanding quarter with results meaningfully exceeding our expectations. RevPAR increased 8.4% year over year. With growth accelerating from 9% in July to more than 13% in September, despite weather-related disruptions in Hawaii during August and September. Results reflected broad-based strength across the portfolio, supported by continued momentum in group, leisure, and higher-rated business transient demand. RevPAR increased nearly 7% across both our resort and urban hotels, while our airport and suburban hotels grew approximately 20% and 14%, respectively. Turning to our major markets. Hawaii continues to be one of the most compelling growth opportunities in our portfolio. RevPAR across our 2 resorts increased an impressive 7% despite the temporary disruption from 3 hurricanes which we estimate reduced combined RevPAR growth for the 2 resorts by nearly 280 basis points during the quarter. Demand rebounded as conditions improved. With September representing the strongest month of the quarter, and RevPAR across our Hawaii resorts increased nearly 14%. Group was the primary driver of performance at both hotels in the 3rd quarter. group rooms revenue more than doubling year over year. which helped to drive a 110% increase in banquet and catering revenue. At Hilton Hawaiian Village, RevPAR increased 5% during the quarter. With occupancy reaching nearly 90%, allowing for compression to drive stronger rates, particularly in September. when average daily rate increased approximately 9% compared to last year. The resort also continued to gain market share, achieving a RevPAR index of 105% for the quarter, up 4 points from last year with gains across both occupancy and rate. Importantly, the index remains nearly 14 points below its 21. The resort's renovated outlets and enhanced programming also helped drive record 3rd quarter food and beverage performance, with banquet and catering and outlet revenue each growing 14% year-over-year. Orlando also delivered another strong quarter. With RevPAR increasing more than 5%, led by continued outperformance at Bonnet Creek. The complex delivered another record-breaking quarter. Generating its highest 3rd quarter revenue ever. Transient revenue increased nearly 19% year-over-year. Supported by premium-rated luxury demand at the Waldorf. Further underscoring the exceptional quality of these properties, Insignia by Hilton Orlando Bonnet Creek and Waldorf Astoria Orlando were recently ranked the number 2 and number 3 resorts in Orlando, respectively, in Conde Nast Traveler's 2026 Reader's Choice Awards. Bonnet Creek's continued strength following our significant investment demonstrates how targeted capital can elevate an asset, strengthen its competitive positioning and drive sustained earnings growth. EBITDA of the complex has grown from approximately $60 million to a level we expect to exceed $108 million this year. And we believe there is further upside as the complex continues to gain market share. Our urban portfolio was another important source of strength. Led by Washington, D.C., Chicago, and Boston. Across our 2 D.C. metro hotels, RevPAR increased by nearly 33% year over year. Supported by a 9-point increase in occupancy and ADR growth of 16%. Group room nights increased 139%, creating meaningful compression and supporting transient ADR growth of more than 17%. At our Hilton Chicago Hotel, RevPAR increased more than 15%, benefiting from a particularly strong citywide and event calendar and excellent transient pricing. Boston also delivered strong results. with portfolio RevPAR increasing approximately 13%, supported by meaningful ADR growth, strong citywide demand, and high occupancy. Finally, we are very excited about the early progress at Royal Palm South Beach following its approximately $110 million transformational renovation. The hotel welcomed its first guests in late July. making the 3rd quarter very much a ramp-up period. Even at this early stage, rate performance has been very encouraging, with 3rd quarter ADR of approximately $244 up nearly $60 and more than 30% above the comparable period in 2024, with September increasing to $264 were over 40% better than pre-renovation results. The team has also been focused on building awareness of the reimagined hotel, hosting leading travel media, Marriott sales leaders from around the world, and key industry groups while benefiting from broad support from Marriott and our operating partners. Looking ahead, the demand backdrop is encouraging with 8 citywide events scheduled for Miami Beach in the 4th quarter. expected to generate approximately 56,000 room nights. Up 70% compared to last year. We are also seeing strong early validation of the hotel's repositioning across both group and food and beverage. At the end of the 3rd quarter, 2027 group revenue on the books totaled approximately $3.9 million. Already matching the comparable pace for 2024, the hotel's best year. With an average daily rate that is $136 higher, or up nearly 40%. During the 3rd quarter alone, the hotel booked more than 8,000 future group room nights at $461 average daily rate. Representing approximately $3.7 million of rooms revenue. More than triple the amount booked during the same period in 2024. Banquet and catering has also been particularly strong. Booking nearly 1.7 million during the 3rd quarter versus less than 200,000 booked during the same period in 2024. together. These early results demonstrate the opportunity to drive significantly higher rates and meaningfully higher total revenue across the properties. These results also reinforce our confidence that Royal Palm will become a meaningful contributor to Park's earnings growth over the next couple of years. On the capital allocation front, we continue to make meaningful progress executing on our noncore disposition strategy. In October, we completed the sale of the Wade, a 520-room hotel in Chicago, for approximately $19 million. The hotel was expected to generate an operating loss of approximately $1.3 million in 2026. With a forecasted loss of approximately $1.3 million in the 4th quarter. Making the sale immediately accretive to earnings while further enhancing the quality of our portfolio. Our remaining noncore hotels now represent 3% to 4% of total portfolio value, and we remain committed to further reducing that exposure by year-end with active workstreams on a number of assets underway. We are extremely pleased with our progress since launching the strategy late last year. Of the 19 hotels originally identified as noncore, we have sold or otherwise disposed of 11 hotels, generating approximately $220 million in gross proceeds. at an average multiple of more than 16 times EBITDA. These transactions have reduced our exposure to lower-growth assets, and enabled us to focus our capital and resources on our highest-quality hotels and markets. The result is a higher-quality portfolio, with stronger margins, a better growth profile, and greater long-term earnings potential. We believe this transformation has positioned Park to deliver sustained earnings growth and create long-term shareholder value. As we look at the balance of the year and into 2027, I remain encouraged by the strength across our portfolio. Despite continued geopolitical and macroeconomic uncertainty, the U.S. economy and consumer remain resilient. Healthy business activity and investment, including significant spending related to AI, should continue to support lodging demand. While historically low levels of new hotel supply provide a favorable backdrop for continued pricing power. Against this backdrop, We expect to finish the year strong and enter 2027 with considerable momentum. Core group revenue pace is up nearly 6%, and we have several distinct growth drivers, including our recently completed capital investments which are expected to provide meaningful embedded earnings growth. In Miami, 2027 will mark its first full year of operations at the transformed Royal Palm South Beach. Early performance continues to reinforce our high confidence in the hotel's ramp toward approximately $28 million of stabilized hotel-adjusted EBITDA compared with approximately $3 million expected this year. by 2028. we currently expect earnings to at least return to pre-renovation levels of approximately $14 million of EBITDA, with Royal Palm alone expected to contribute approximately 200 basis points to total portfolio RevPAR growth. Hawaii represents another substantial opportunity. With the Ali'i Tower renovation expected to be completed in early 2027, we will have invested approximately $350 million to strengthen the competitive positioning of our 2 resorts. With the major renovation activity behind us, solid group pace already on the books and significant upside from recovering market share, We believe our Hawaii portfolio is well positioned to continue closing the approximately $60 million EBITDA gap to its 2023 peak earnings over the next few years. As a result, I believe Park is uniquely positioned to deliver outsized earnings growth over the next several years. We have strengthened the portfolio through disciplined capital allocation and active capital recycling, invested substantially in our highest return opportunities, and enhanced our financial flexibility through proactive balance sheet management. We are now positioned to realize the earnings benefit of that work, creating a compelling path to higher EBITDA and meaningful long-term value creation for our shareholders. And with that, I'll turn the call over to Sean. For 2027, Thanks, Tom. Overall, we were very pleased with our 3rd quarter results, which once again exceeded expectations, with RevPAR increasing 8.4% to $201. and hotel-adjusted EBITDA increasing 8% year over year, with hotel-adjusted EBITDA margin expanding by 50 basis points to 25.7%. Adjusted EBITDA was $135 million for the quarter, while adjusted FFO per share was $0.39, an increase of over 11%. We were also pleased to see broad-based strength across the portfolio. Group rooms revenue increased more than 18%, while transient revenue grew over 5%. Reflecting healthy demand across multiple customer segments. RevPAR growth was also well-balanced, with occupancy increasing 2.4 percentage points and ADR up 5%. Expenses increased 5% during the quarter compared with just under 4% in the first half of the year, with the reopening of the Royal Palm adding roughly 85 basis points of operating expense growth versus prior year. Excluding Royal Palm, cost per occupied room increased 3.7% in the quarter, including an approximately 80 basis point impact from increased utility cost pressures. Which, combined with higher occupancy and along with revenue-based variable costs, drove the expense growth for the quarter. But partially offset by a reduction in fixed costs, mostly due to lower property insurance premiums from our annual policy renewal this past June. Turning to capital investments, during the 3rd quarter, we invested a total of $57 million in capital improvements, with full-year CapEx expected to range between $270 million to $280 million. In Hawaii, we commenced a comprehensive renovation of the 348-room Ali'i Tower at Hilton Hawaiian Village in August, a $100 million project that includes a complete renovation of all guest rooms plus the addition of 3 guest rooms within the premium oceanfront tower. and enhancements to food and beverage outlets, including the Tropics Bar and Grill and the poolside outlet Mix Bar, all of which are expected to be completed early next year. Upon completion, 80% of the guest rooms across the nearly 3,000-room resort will have been fully renovated. And finally, in New Orleans, we commenced the 3rd and final phase of the Main Tower guest room renovation in May, encompassing the remaining 489 guest rooms and expect the project to be completed by mid-November. Upon completion, all 1,600+ guest rooms will have been fully renovated, significantly enhancing the quality and competitiveness of one of our most important convention-oriented assets. Turning to the balance sheet, we ended the 3rd quarter with net debt of approximately $3.7 billion, translating to a trailing 12-month net debt-to-EBITDA ratio of just under 6x. A reduction of 0.2 turns since the beginning of the year. Liquidity was $1.3 billion, including $295 million in cash and $1 billion of available capacity under our revolver. In September, we fully repaid the $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Resort using the remaining $600 million of capacity under our delayed draw term loan. Together with proceeds from the $700 million delayed draw mortgage loan secured by the Bonnet Creek complex. This transaction meaningfully extended our debt maturities by roughly 1.5 years, and we now have no significant maturities until Q4 of 2028. We also finalized terms on a $205 million refinancing of the Hilton Santa Barbara Resort, which will be used to repay the existing $150 million mortgage maturing in December. And provide for future funding advances towards the property's comprehensive renovation currently planned for late 2028. We expect to close this refinancing by the end of this month. With respect to our dividend, on October 15th, we paid our 3rd quarter cash dividend of $0.25 per share, and on October 29th, the board approved a 4th quarter cash dividend of $0.25 per share. To be paid on January 15th to stockholders of record as of December 31st. The dividend currently translates to an annualized yield of approximately 6% based on recent trading levels. Turning to guidance, following another stronger-than-expected quarter, we are increasing both our RevPAR and earnings guidance ranges to reflect our 3rd quarter results and our updated expectations for the 4th quarter. Accordingly, we are raising our full-year RevPAR outlook by 200 basis points at the midpoint to a new range of 5.5% to 6%, which implies a 4th quarter growth rate between 5.5% to 7.5%. This updated outlook reflects the nearly 400 basis points of outperformance delivered during the 3rd quarter, as well as stronger-than-anticipated results at the start of the 4th quarter, with preliminary October RevPAR increasing nearly 11%. Driven by a 120 basis point lift from Miami, coupled with double-digit gains at Bonnet Creek, Key West, and Washington, D.C. From an earnings perspective, we are increasing adjusted EBITDA guidance by approximately $13 million at the midpoint to a new range of $635 million to $645 million. While adjusted FFO guidance increases by approximately 8 cents per share at the midpoint to a new range of $2 to $2.05 per share. This increase to guidance also reflects an assumed annual increase in expenses of approximately 4.5% year-over-year and 5.5% to 6.5% for the 4th quarter. With an approximate 150 basis point impact from the reopening of Royal Palm. Expenses are being driven by the stronger demand environment and higher occupancy expectations across the portfolio, driving increases in variable costs such as labor and utilities. In addition, with respect to Royal Palm, we expect 4th quarter hotel adjusted EBITDA at the property to be approximately $4 million with full-year EBITDA of approximately $3 million. We very much look forward to welcoming many of you to the property next week when we host an investor tour and showcase the exceptional transformation firsthand. This concludes our prepared remarks. We will now open the line for Q&A. To address each of your questions, we ask that you limit yourself to one question and one follow-up. Operator, may we have the first question, please? Thank you. Our first question is from Floris van Dijkum with Ladenburg Thalmann. the most valuable hotel, I believe, in the world. You've invested $350 million in that. Presumably, you're going to get your 15% stabilized returns on that. In your view, when can we expect that that asset could get to $200 million of EBITDA? Obviously not forecasting for next year. et cetera, because the latest renovation won't be finished or fully stabilized yet. But you should see some pretty, you know, heady growth in Hawaii. based on the capital you spent plus the market's recovering. Maybe if you can walk us through some of that, please. Hey guys, thanks. Look forward to seeing your Miami Beach asset next week with you guys. Just wanted to talk about Hawaii Village, which is First of all, Floris, thank you for the question and thank you for taking time and look forward to seeing you, you and many others next week. I think if you step back and just think about Hawaii, really over the last 20 years or more, Oahu in particular has really outpaced the U.S. by about 120 basis points. So I think you really start with that embedded tailwind. If you, if you look at Hawaii, I think their RevPAR CAGR has been about 4.5% versus about 3.3%. for the broader U.S. So I certainly think that that's going to be a real benefit to us as we look to the future. The other thing which not only applies to Hawaii but even broader, really limited supply growth through 2030. Near impossible to add new supply in Hawaii and having 2 iconic resorts there, particularly Hilton Hawaiian Village, We are really excited, and as Sean noted in his remarks, completing Ali'i, we will have north of 80% of really the core rooms renovated. We certainly think that's going to continue to be a real tailwind for us. If you think about HHV, I mean, we are We're running an index, RevPAR index of about 105%. So when we get Ali'i done, as we sort of look out, we would certainly expect here in the next couple of years that we have bridged that gap that we talk about, that recapturing that $60 million plus or minus in EBITDA in Hawaii that really gets us back to the 2023 peak levels. So very encouraged. If you think about the success that we've had with our transformational renovations, whether it's Bonnet Creek or Key West and and I certainly put Royal Palm in that category that we're very, very confident and very, very optimistic. We certainly think that Hawaii is going to continue that track record and we're really excited about the future. At both assets and particularly Hilton Hawaiian Village. Thanks, Tom. Maybe a follow-up, something that people don't or tend to forget about, but ancillary revenue. is obviously a big driver of trying to maximize value at each of your assets. I think the investors are probably somewhat familiar and certainly travelers with resort fees as well as paid parking. And presumably, I don't know if there's an asset in your portfolio that does not have resort fees. today, but maybe talk about some of the other things that you can do to drive revenue and EBITDA at hotels, including things like billboards, etc. Yeah, listen, we are, as you can imagine, Floris, looking— all issues are on the table to drive incremental revenue. You captured many of them clearly, resort fees. Keep in mind, we've got 150,000 square feet of retail space there. Provides incremental. We've got incremental parking there. At any one time, you've probably got 15,000 people. You've got 1,000 room— 1,000 timeshare rooms. So all of that provides for a unique experience, but it also provides for really broad sources of revenue for us at Hilton Hawaiian Village. And to your earlier comment, It's also owned all fee simple. There are many ground leases in Hawaii for both of our properties. They're fee simple with huge optionality. That gives us tremendous confidence not only in the interim but certainly over the long term in terms of the great upside that we have at those assets. Our next question is from Duane Pfennigwerth with Evercore ISI. Yeah. Hi, this is Peter. I'm for Duane. Thanks for taking the question. Just on Miami for the $4 million EBITDA outlook in the 4th quarter, if you can share just what level of occupancy is assumed within that outlook? And remind us, is the hotel 100% open across all the amenities and outlets? And just love to hear any, you know, highlights that you can share now that it's up and running. Yes, sure. This is Sean. I'll take that. I mean, thanks for Q4. I would say Royal Palm is probably going to be somewhere in that, you know, kind of critical 60% occupancy. plus or minus set up for Q4, certainly trailing what it did in 2024 from an occupancy standpoint. But we certainly— our thesis is to not necessarily drive as much occupancy as we did. And more so driving the rate. So we'll see, certainly see better rate projected for Q4 relative to '24, lower occupancy, you know, getting pretty close to what we would have achieved from bottom line in, in '24. So pre-renovation. So feel good about that. You know, from an overall operations standpoint, everything's open. We do have a— we did have a third-party leased restaurant that we'll be working to bring online over the coming months. But for the most part, the, you know, the outlets that we've you know, baked in and into our underwriting. And obviously, all rooms are all open and operational. Gotcha. And then just quickly— oh, go ahead, Tom. No, I was just going to just build on Sean's point on the renovation. All guest rooms, all public space, reimagined lobby, breezeway, pool, 4 food and beverage outlets, upgraded meeting space. All of that is done. And most importantly, and you'll— those of you that are with us next week will see really integrating 3 separate buildings so that they look and feel as one. Just, we could not be prouder, and Condé Nast obviously did a recent feature that perhaps many of you have seen, and I think it really speaks to the quality of design work and the finishes. And we are terribly excited about it. We're incredibly excited about it and can't wait to show it next week and can't wait, most importantly, for its performance in the coming months and years. Gotcha. Appreciate the color. One quick follow-up on the 11% RevPAR growth in October. What level of total revs did you see for the month? And what do you kind of expect between the balance between RevPAR growth and TrevPAR growth in 4Q? Thanks for taking the questions. I mean, I would— well, I would say from a— for the quarter specifically, we'd expect to see TrevPAR be a little more aligned with RevPAR. Certainly, more in line than what we saw for Q3. So if you think about our implied guidance range for the quarter for RevPAR, kind of 5.5% to 7.5%, I would certainly see that we would expect total RevPAR, TrevPAR kind of being— maybe it's more towards the lower end of that range, but certainly kind of closer to RevPAR. Our next question is from Smedes Rose with Citi. Hi, thanks. Hi. I wanted to ask you a little more about the group booking pace that you mentioned for '27. It looks like very healthy, plus 6%. And I was just curious if you could talk a little bit about kind of what you're seeing maybe on the composition of that in terms of corporate versus sort of larger maybe association-type business or anything you can just kind of share in terms of the patterns you're seeing? Well, as we mentioned, approximately 6%, obviously that's largely core, which again is about 97% of the value. And I think represents also EBITDA for the portfolio. Hilton Hawaiian Village obviously is coming back on and still ramping up from and lapping obviously favorable comps there. I think up about 12%. Bonnet Creek, as you know, has been a tremendous success for us. We're looking at probably another 10% in group pace for next year. Obviously, Miami, a very high number, you know, 900% effectively because it was closed the last 15 months, but it's going to be significant. Key West, looking at about 22%. Casa in particular at about— up about 25%. Chicago, around 8%. New Orleans in that 7% to 8% range. San Francisco, 10%. So broad-based. We do have a good citywide calendar as well that I certainly think is going to benefit. As we sort of look out and creating some compression. So it's set up, I think, for a very strong group year. And obviously coming on as we finish 2026, up about 6% is what we expect to finish the year. Obviously, at 18% in 3rd quarter, slightly negative in 4th quarter, but really making up with that with really strong transient as we look out, Smedes. Thanks. I appreciate that. I wanted to ask you just one question on the New York Hilton during the 3rd quarter. I'm just curious. I mean, it looks like the EBITDA declined pretty significantly with some margin compression there. I was just wondering if you could talk about, was it just ascribed to maybe the way that the booking patterns worked over the quarter, or is that to do with the higher expenses at the property level? Or maybe just talk about what's going on there. Yeah, I would say no. I think we kind of generally contemplated for Q3, and I wouldn't say it holds. You had, you had some, you know, we have one kind of big group that kind of has come through in a repeating group in Q3. That it ultimately didn't spend as much kind of outside the room. So I don't necessarily think it's kind of a pattern in any sense, probably a little bit of anomaly. But in the end, I think that's kind of contributing more kind of a common theme across the quarter in a way is in terms of RevPAR being less than RevPAR in terms of growth. Still, still solid, still some good growth. But in the end, I think where New York's concerned, I think just kind of didn't have the F&B kind of out-of-room production to kind of offset some of the cost structure. that quarter. Our next question is from Jamie Feldman with Wells Fargo. Hi. Thank you. This is Connor on with Jamie. Maybe on New Orleans with the last— hi. Thank you. Thank you for taking my question. New Orleans with the last phase of rooms wrapping up this quarter, How should we think about 4Q displacement and then the ramp in 2027? And any color on the citywide calendar, how it looks there next year? Yeah, as we— one, we're really excited to bring those. This is the last phase of the main tower, so about 489 rooms. Scheduled to return to service, I believe, on the 13th of November, plus or minus. As we think about 2027, we're very encouraged. Group pace up about 6.5%, plus or minus, and citywides are, I think, 26% 6 events and a little over 500,000 room nights expected. So a solid year in New Orleans. Very, very encouraged. Obviously, it's a tough Q3, but a lot of that has to do with lack of citywides in the city. And also for us in particular, we obviously have been under renovation. So Certainly impact there. Q4, we're looking probably low single digits, 1%, 2% RevPAR as we sort of look out. Transient revenue growing some. So a couple million dollars there. But we, in terms of disruption, don't think it's going to be significant as we look out in Q4. Thank you. Really appreciate the color. And maybe a separate follow-up. Group rooms revenue was up over around 18%, but F&B kind of only up around 2% with banquet flat. Should we think of that as seasonality or mostly mix? And for 2027 group on the book, how should we think about out-of-room spend versus this year? Yeah, I would say Q3 is not necessarily the norm here. What we had in Q3, and again as expected, was a few kind of room-only blocks that were, you know, pretty sizable. And so I think that kind of ultimately helped drive the good group pace and group production in the quarter. It didn't translate obviously to higher banquet and catering. Since obviously that wasn't linked to the block. So I think it's just kind of— I don't think these are kind of repeating elements either for next year. So I think it's going to be more— I think more return to normal. And as you think about the banqueting catering production from a group standpoint going forward. Thank you. Our next question is from Michael Hirsch with JPMorgan. Hi, and thank you for taking my question. With 5 noncore hotels left to sell, could you speak to the current state of the transaction market and timing, pricing, and, you know, how is buyer financing shaping up, you know, for the remaining sales? Well, first of all, I couldn't be prouder of the team and how hard we've worked. If you step back and just remind listeners, we have sold or disposed of 57 6 assets since the spin now for about $3.1, $3.2 billion, including 14 international. So we've seen a little bit of everything. There are 8 remaining assets, as you pointed out, EBITDA of about $50 million. 3 of those are in this safehold portfolio as part of our dispute with them. So obviously, those are not being marketed at this time. That's about $16 million of EBITDA. The remaining 5 assets are about $34 million of EBITDA, and one of those, Lake Buena Vista in Orlando, is about $20 million of that. So you really got 4 assets that have about $14 million. These are small assets, small contributors. All of them are complicated, like many of the others, with tax, legal, some joint venture. So we're working through— we've got workstreams underway. We've dealt with this for many years. We've made significant progress. The remaining assets, with the exception of Lake Buena Vista, candidly, are insignificant in terms of their contribution to overall EBITDA. We are evaluating, just given the strength of Orlando, does it make sense for us to fold that back in and renovate that, given the extraordinary success that we've had with Bonnet Creek. Remaining, the other 4 assets all have workstreams. Many of them are at various stages of that, and we're confident that we will make significant progress before year-end and could spill a little bit into early '27. But we expect to have that really behind us in the very near future. Thank you. And then for my follow-up, I appreciate it's early, but how should we think about CapEx in 2027 compared with the $275 million planned for this year? Which I believe you raised your CapEx guide a bit from your prior guidance. Yeah, we're certainly in a position where we're bringing that CapEx number down. Clearly this year with Royal Palm finishing up and bringing Ali'i— Brittany Ali'i Tower project, which as we mentioned is $100 million. You know, we had some kind of day 2 work on Royal Palm, went back and kind of did a few other things, so added a little scope there. And also kind of as we started with Ali'i, I think a little bit of scope addition there, and ultimately some timing of bringing starting on some projects for '27 that were identified for '27 earlier to kind of get the ball rolling as we head into '27. So there's a little bit of timing and a little bit of scope for some of the big projects there that kind of resulted in the increase in the guidance range. But I would say going forward into next year, you know, we're kind of bringing the annual spend down to a more normalized level of, call it, $185 million or so, plus or minus, $175 million, $185 million. So that's ultimately— so you'll see that kind of, you know, we'll have a little bit of, you know, carrying in and layering over from '26. into '27 as we go through, but ultimately getting down to that, you know, that more normalized approach going forward. Our next question is from Rich Hightower with Barclays. Good morning, guys. Just one for me. We've covered a lot. Hey, Tom, how are you? I was wondering, I know you've quantified the interest expense headwind within the '26 guidance, but as I think about '27, you know, you've got $1.7 billion of floating rate. Obviously, we've had a lot of refinancing activity. What does that kind of year-on-year headwind look like for '27 as we think about modeling? Yeah, I mean, I think the easiest way, Rich, looking at it is we obviously kind of took, you know, we kind of replaced about $1.5 billion of debt this year between the 2 mortgages we took out that were kind of at the lowish 4% and, you know, replaced it with debt that's kind of trading more so kind of in the, you know, 6s to low 6s right now. So kind of 200 basis points on that. So it's a $30 million type of headwind annually. I would say that, you know, we, as we kind of bring leverage down, we'll see reductions in the, you know, the spread grid in our term loan. So we'll get some relief there, we'd expect. We certainly, as you look at our guide, and kind of, you know, hold net debt to where it is, just you kind of get certainly below 6, closer to 5.8 times. That'll bring us a notch down. And as we go through next year, bringing Royal Palm back online, getting recovery from Hawaii, Hawaii, of course, and the like, and certainly, certainly expect some continued growth in the portfolio. We should start to continue to bring that down to the next layer. on the floating rate change if you go down below 6? So there'll be a little bit of a tailwind too to that offset, you know, offsetting some of the headwind next year, we would expect. Sean, how does that pricing grid It goes down about 25 bps. Okay, great. Thank you. Our next question is from David Katz with Jefferies. with respect to 2027. Just, you know, looking at the portfolio, you know, this year, I think, you know, each one has sort of its own offline about it, but I wanted to get a sense for what '27 could be when we start to walk across the opportunity set and maybe guiding today, but any help, we'll take it. Hey, David. Thank you. Hey, good morning. Thank you for taking my question. You've talked a decent amount in part— in different parts and so forth its own story. But if we were to pile up some of the headwinds or calendar issues or whatever the case may be, from this year and what we're seeing in this quarter and roll them into next year, I think Ian obviously does a copious job with us some of the internal headwinds that you've had here and just be a little clearer about what the upside could totally be to the degree that you can. I know you're not Yeah, David, I appreciate the question. It's always good to get your thoughtful and insightful perspective. I'd make a couple observations for you and for the broader listeners. One, I think Park is incredibly well positioned for 2027. If you start with Miami and Royal Palm. Hopefully you're able to join us next week and you'll see for yourself. Yep. As we said in our remarks, there's about 200 basis points again impact total RevPAR growth rate. So I think candidly, we start with a stronger position than perhaps many of our peers there. We really didn't get the benefit from the World Cup. We were about 26 to 30 bps plus or minus, pretty insignificant. And candidly, America 250, not significant for us as well. A little bit of activity in D.C. in one, one particular situation, but that's it. So you start with a real strong tailwind there. You also, if you look across our portfolio, we've got over the next really 4 years, not only does the industry benefit, but I think Park in particular benefits from really muted supply growth. Can't stress enough the importance of that. We haven't had a situation like that over the last 10 years or so where we're looking 3, 4, perhaps 5 years where you're sub-1%. I think for Park, we're at probably 0.7%, 0.8%. Also keep in mind, if you look at the long-term average, obviously, I've been around for a minute or two, David, as you know, it's probably historically been 2%, 2.2% over the last 20, 30 years. That and across our portfolio, I think, gives us a benefit. One of the things that we can't lose sight of is just the AI trade in the investment cycle. nonresidential fixed investment spending and a really high correlation, about 90% plus or minus, in hotel room demand. That's probably been as high as ever. The recent print was 12.7%, and that's lapping in the second quarter about 9%. That is significant. So if you have anything even remotely like that, we think that's going to continue to be a tailwind for the sector and certainly for Park as well. Group pace, as we— one of the earlier questions I got, group pace of about 6%, a solid citywide calendar in the Park portfolio. And again, the Hawaii ramp-up, having renovated now 80% of the rooms when Ali'i is done, coupled with the fact that we're at about 105% at Hilton Hilton Hawaiian Village in RevPAR index, but we're only at a— going to be at about 90% for Hilton Waikoloa. So getting back to fair share and getting back to where we were historically with Hilton Hawaiian Village really again provides us with a tailwind and really momentum as well. And then continued growth at Bonnet Creek. I mean, we've taken Bonnet Creek from $60 million to, as we said in our remarks, probably at $108 million, if not more this year. We can all do the math. It's been a phenomenal success, but we're still barely at fair share. The Cygnea is about 99.5% index and the Waldorf is about 94%, 95%. So you still have growth opportunity. So I think when you, when you add all of that up and we don't have the tough comps that perhaps some of our peers will have, I think it really positions Park to be in a strong position in 2027 as we look out. So tired. I'm sorry for the long But I think it's important that I frame that and that people understand that there's a lot of optionality and significant tailwinds for Park as we look out. Over '27 and beyond. Noted. And, you know, to the same end on my follow-up, maybe Sean could just touch on what the cost landscape is going to look like for you. That would help. Thanks. Yeah, I mean, I still think we're going to be in a situation where cost of preoccupied room is kind of in that low to mid-3s range. So it's going to be kind of, you know, dependent on the growth, dependent on mix of ADR, of course. I certainly expect, and as Tom noted on group pace as maybe a proxy, you're certainly seeing more pricing power and rate in that segment and certainly expect it in other segments as well going forward. So it'll be more of a rate side than an occupancy growth side. So that could ultimately keep expenses a little bit more, you know, not growing as much as they have this year. You know, Royal Palm does add about 100 basis points to expenses for the first half of the year. It's lapping being closed. last, you know, this, you know, for the first half of this year. So you're going to have that element that kind of, you know, bleeds into what we're seeing now and bleeding into the first half of next year, and then it will kind of you know, come back down and lap its, you know, reopening and ramp up in the back half of the year. So again, probably plus or minus 25, 30 basis points. basis points of CPOR, cost per occupied room, impact by Royal Palm. But I think in the end, you know, from a net standpoint, you're probably looking across the portfolio in that kind of 3 to 3.5 range, kind of as a base cost expense. And then from there, you know, depending on occupancy, and staffing labor and everything else, you'll have that, and then you'll have offsets in the first half of the year, the 2% and 20% down on insurance. We'll continue to find, you know, fight the fight on appeals with property tax, keep fixed costs in check as an offset, and then ultimately variable costs based on revenues are what they are as we think about growth next year. Thank you. Super. Our next question is from Chris Woronka with Deutsche Bank. Hey, good morning, guys. Thanks for taking the question. Morning. Just had one question. It's a little bit granular, but, you know, you guys, there's been a lot of talk about RevPAR versus PrevPAR this year, and you guys and others have explained some very legitimate reasons why. So the question is, as you think about next year, Do you think the composition of the groups changes to the point where maybe TrevPAR goes back above RevPAR? And also on the transient side, on the BT side, Have you guys seen any, and I guess we could include leisure if you want, but have you seen any changes in customer behavior in terms of utilization of the you know, the primary F&B outlets or other ancillary? Thanks. Obviously, Chris, you got a lot to unpack there. Let me take a first stab and then Sean can jump in. And I know some of the listeners are concerned about obviously third quarter I think it's important for people to keep in mind, We had in the 3rd quarter 3 major storms in Hawaii. Fortunately, none were a direct hit, but the impact that it has— and so we ended up with some, you know, room-only blocks. So you're not getting the, you know, out-of-room spend. You had some displaced, obviously, residents, which obviously impacts. So it's sort of a one-time We— Sean and I went back and looked, and September is more normalized. You know, we expect the same in the strong, obviously, performance that we're seeing in October. It's a daily leasing business. It is— you are going to be impacted by weather and different events in one time. That clearly contributed. to what we saw. You know, regarding BT and Weather F&B, I mean, I also think that's sort of a case-by-case. BT is improving. We all see that as a stronger growth segment. But the reality is, you know, BT, I'd say BT mix is improving. Aggregate BT is still below where we were in 2019. So there's probably been some modest impact on that, although your mix and how you market and how you maximize value, I think, gives you great opportunity. So we're not at all alarmed. In fact, we're encouraged. We're encouraged, encouraged by the strong demand that we're seeing and that the sector is seeing. We've obviously had a solid year. And we think '27 is only going to be stronger for, for what we control. There are obviously geopolitical and macro issues we don't control. But as we look out and for the long list that I walked through in terms of the benefits in '27, Park is very, very well positioned in '27 and '28 as we look out. Yeah, go ahead and think. Okay, Chris, what I would add too is real fast if I could is that, you know, Tom kind of touched on channel mix and I would say, you know, as we look across Pretty much all the subsegments you see, you've seen strong ADR growth in those segments. You've seen for corporate negotiated and for leisure, you've seen the rate growth you know, kind of sequentially increase from, you know, throughout the year thus far through the first 3 quarters. But I think more importantly, what you've seen is you've seen, you know, moving out of things like government and leisure discount leisure and into, you know, higher-rated business, corporate negotiated, higher-rated leisure business. So, you know, having that ability just given with the broad-based demand, You know, we're kind of getting in that position where, and I think people, you know, people are adapting to it at this point, is, you know, optimizing the mix and ultimately, you know, focusing in the right channels. I think if you think about last year, you had the pipeline for group drying up for the year with tariffs and people kind of sticking their hands out making decisions. You had government. Reduced government spend. You had Canadians not want to travel to the U.S. You had a number of things. And so now that you come into this year and you've got a lot, you know, broad-based demand here, you know, last year you're trying to induce demand. Now you've got it coming in all directions. You got to kind of, you know, you got to find a way to optimize it. I think teams are navigating that and adjusting. And certainly as we think about the budgets being rolled up, our asset managers are certainly pushing them in their commercial strategies and telling them to kind of be confident, be more confident. Now you think about pricing as you go into next year. So I think it's all, you know, evolving here through in a good way as we go through the year here. Okay, super helpful. Much appreciated. Thanks, guys. Thank you. Our next question is from Michael Herring with Green Street Capital. Hi, good morning, Michael. Thanks for taking the question. Morning. You know, maybe just going back to Hawaii and the discussion there, I'm just, you know, curious your thoughts, you know, with the strength of premium travel in the U.S. this year and putting aside the market share gains that you expect, how do you think the Honolulu market fits into that fold going forward from a domestic travel perspective, especially as, you know, international travel continues to remain depressed. I think it fits very well as you think about— well, you made the point about international. Let's sort of start there for a second. I mean, we're Inbound international is about 87% of where we were in 2019. So obviously, given the change in leadership in government, obviously, the recent elections, maybe we start to see improvement there. That would be pretty significant if you think historically. The visitation that we've had in Hawaii, we're still down as it relates to the Japanese traveler, but we're also down across many other countries as well. So to the extent that you see international improve, I certainly think that's going to be a benefit. Airlift into Hawaii has only been growing from Southwest and Alaska Airlines and United and many others. We are very encouraged. Obviously, as we noted, we were up 7% in the 3rd quarter. You take out the hurricane impact, you're at 10%. As we think about just even October alone, Hilton Waikoloa, I think, was up about 55%, 60%. Very, very encouraged in Hawaii. It is a special location. It's been generational. We don't expect that to be changing. And we're very encouraged as we think about the future there. I appreciate the thoughts. And maybe one other just on, you know, turning to the transaction market and given the health of the market generally, I was curious to get your thoughts on the appetite for potentially capitalizing on selling some of your core assets, just given, you know, the strength in pricing that we've seen in some cases. I think I've been pretty clear. This management team, leadership team is not entrenched. Our board is not entrenched. And to the extent compelling offers are made for assets of the entity, we certainly will do what's in shareholders' best interest. We're not actively marketing any of those, but we do get calls occasionally and we assess and evaluate whether or not they're credible or whether they're real. If something's real, we certainly have an obligation and a responsibility to evaluate it. Thank you. There are no further questions at this time. I'd like to hand the floor back over to Tom Baltimore for any closing comments. Appreciate everybody taking time, and we look forward to seeing many of you on Monday, Tuesday on the investor tour down in South Florida, in Miami and Key West. And if we don't see you there, we hope to see many of you at NAREIT in Atlanta. So safe travels. This concludes today's conference call. You may disconnect your lines at this time. Thank you again for your participation.