Good day, and welcome to the Playa Hotels & Resorts third quarter 2023 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Ryan Hymel. Please go ahead. Thank you very much, Betsy. Good morning, everyone, and welcome to Playa Hotels & Resorts third quarter 2023 earnings conference call. Before we begin, I'd like to remind participants that many of our comments today will be considered forward-looking statements that are subject to numerous risks and uncertainties that may cause the company's actual results to differ materially from what has been communicated. Forward-looking statements made today are effective only as of today, and the company undertakes no obligations to update forward-looking statements. For discussion on some of the factors that could cause our actual results to differ, please review the Risk Factors section of our quarterly report on Form 10-Q, which we filed last night with the SEC. We've updated our investor relations website, investors.playaresorts.com, with the company's recent releases. In addition, reconciliations to GAAP of the non-GAAP financial measures we discuss on this call were included in yesterday's press release. On today's call, Bruce Wardinski, Playa's Chairman and CEO, will provide comments on the third quarter demand trends and key operational highlights. I will then review our third quarter results and our outlook. Bruce will wrap up the call with some concluding remarks before we turn it over to Q&A. With that, I'll turn the call over to Bruce. Great. Thanks, Ryan. Good morning, everyone. Thank you for joining us. Our third quarter results were in line with the expectations we shared with you on our last earnings call, led by strong performance in our Jamaica segment. Playa's owned resort EBITDA, $52.8 million in the third quarter, included a significant year-over-year foreign currency, currency exchange headwind of approximately $8 million due to the appreciation of the Mexican peso, a benefit from business interruption insurance proceeds of approximately $1 million, and negative EBITDA at the Jewel Resorts in the Dominican Republic. Also, as a reminder, Hurricane Fiona hit the Dominican Republic in late September of 2022, causing us to close the [Hyatt Ziva Cap Cana] and Hilton La Romana resorts for repairs for a portion of the third quarter last year, which we estimated to be a $2.9 million negative impact on EBITDA and an 80-90 basis point hit to our Q3 2022 owned resort EBITDA margin. We estimate that in Q3 2023, the foreign exchange headwinds had a negative 390 basis points impact on a reported owned resort EBITDA margin and 410 basis points for our legacy portfolio resort margins. Adjusting for all of these factors, underlying EBITDA growth for our legacy portfolio was approximately 9.5% during the third quarter, and we were still able to improve legacy resort margins by 150 basis points year-over-year. As we outlined earlier this year, our expectation was that the first quarter would represent the highest year-over-year ADR in EBITDA growth for 2023 as we lapped the impact from Omicron last year, and growth would normalize as we entered the second half of 2023, as the base comparison period had less noise. Playa's third quarter legacy portfolio year-over-year EBITDA growth was driven by ADR growth of 8.9% and the cost efficiency measures we have implemented, particularly in Mexico. Fundamental strength during the third quarter was led by our Jamaican segment, which posted our highest occupancy rate and ADR growth, resulting in 510 basis points of resort margin expansion year- over- year. Although Jamaica had a fantastic year in 2023, there is still plenty of room to go in the recovery in that market. One, on an underlying basis, growth versus pre-pandemic is still lagging versus our other segments by 10-20 percentage points and is also evident when you drill down to like-for-like peers at the hotel level. Two, supply growth over the last few years has been benign at a little under 10%, with year-to-date international arrivals into Montego Bay only slightly exceeding the additional supply, but this was largely due to the timing of additional airlift. Three, airlift versus 2019 was only slightly positive in Q1 2023, but is estimated to be over 20% in the second half of 2023, which bodes well for increased demand and the ability to close the ADR gap versus peers. With the improvements made to the Montego Bay Airport and the expected growth in additional flight capacity, we remain extremely optimistic for the Jamaican segment fundamentals. In Mexico, revenue declined modestly year- over- year, as a result of construction disruption in the Pacific and the impact of increased visitation to Europe this summer, which was largely offset by ongoing increases in ADR. We believe we are significantly outperforming the market in Mexico, a testament to our service from the heart and execution by our operations team. As I mentioned, both the Yucatan and the Pacific segments were negatively impacted by year-over-year appreciation in the Mexican peso, and we estimate that the Yucatan would have seen approximately 130 basis points of margin improvement year-over-year, excluding the impact of FX, and the Pacific would have expanded margins by approximately 50 basis points. With the hiring of a new regional operations director for Mexico, we've been taking a fresh look at our cost structure in Mexico and believe we have room to further optimize our staffing during the ebbs and flows of occupancy levels. While our early efficiency actions are already bearing fruit,... We expect to see a long tail from greater efficiencies, especially as it relates to areas like procurement and staffing models, given the iterative nature of these changes. In the Dominican Republic, our legacy resorts, excluding the Jewel Palm Beach and the Jewel Punta Cana, grew both occupancy and ADR year-over-year. Adjusting for the previously discussed business interruption insurance benefit and the impact in Q3 2022 from Hurricane Fiona, resort EBITDA for our legacy DR resorts grew over 6% during the third quarter. However, the results of the two Jewel resorts in the DR segment continued to weigh on this segment, negatively impacting profits by approximately $6 million year-over-year in the third quarter. We had anticipated a weak summer for these two properties as a result of missing the summer selling season, particularly for its core European guest base. We still expect to improve on the year-over-year profit drag as we move into the fourth quarter. We do not have any information to share with respect to the timing of the disposition of the two resorts, but hope to have more to share on that in the future. On the booking front, demand for the fourth quarter and beyond improved in July and continued to accelerate through the third quarter. In aggregate, during the third quarter of 2023, 45.7% of Playa owned and managed transient revenues booked were booked direct, down 450 basis points year-over-year. The decline was driven by fewer World of Hyatt redemption bookings following a spike during the first quarter of 2023, ahead of a change in the conversion rate for point redemptions, which pulled forward quite a bit of demand. We expect this to smooth out in the coming months and believe we are on track with our targeted 50% booked revenue mix of transient revenue. During the third quarter of 2023, playaresorts.com accounted for approximately 11% of our total Playa owned and managed transient room night bookings, continuing to be a critical factor in our customer sourcing and ADR gains. Taking a look at who is traveling, roughly 39% of the Playa owned and managed room night stays in the quarter came from our direct channels. Geographically, the biggest change in our guest mix during the third quarter was once again our Mexican-sourced guest mix, which was up nearly 570 basis points year-over-year. Our European-sourced guest mix was up slightly year-over-year and remained well ahead of pre-pandemic levels. Our Asian-sourced guest mix improved modestly, modestly year-over-year, but remains the most depressed, as it is still only approximately 25% recovered. The most noteworthy geographic source market to keep a close eye on, though, is Canada, which was a large source market for us prior to the pandemic, but has only recovered approximately 60%. However, recently, there has been a significant increase in flight capacity into our markets from Canada for the high season, so I am optimistic that our Canadian guest mix will improve in the coming months. Our visibility remains a critical factor of our success, as our booking window was just under 3 months. In total, while 2023 was a very successful year for Playa on many fronts, we faced significant headwinds that masked the robust performance in our core portfolio. However, our focus on execution and the stellar fundamentals should shine brighter in the near future as the profit headwinds are expected to abate. Starting in the first quarter, we will begin to lap the significant profit decline at the two Jewel properties in the Dominican Republic. At current U.S. dollar to Mexican peso spot FX rates, FX would cease to be a profit headwind beginning in Q2 2024, and we will be lapping the significant increase in our insurance expense in Q2 2024 as well. Finally, on the capital allocation front, we repurchased approximately $76 million worth of Playa stock during the third quarter, and an additional $15.4 million thus far in the fourth quarter, bringing our total repurchases since resuming our program in September 2022 to approximately $212 million, or 17% of the shares outstanding. We continue to believe that our significant free cash flow generation is underappreciated, given the modest amount of ROI-driven CapEx expected in the near term and healthy business fundamentals. We believe our stock offers a tremendous value and that share repurchases are a phenomenal use of capital for our free cash flow to boost total shareholder return over time. Once again, I would like to thank all of our associates that have continued to deliver world-class service in the face of unexpected challenges and rising operating costs. Their unwavering passion and dedication to service from the heart is what truly sets Playa apart. With that, I'll turn the call back over to Ryan to discuss the balance sheet and our outlook. Thank you, Bruce. I'll begin with a recap of the segment fundamentals, followed by an overview of our balance sheet and expected uses of cash, and conclude with our outlook for the remainder of the year. Before I begin my review of the quarter, I'd again like to remind everyone that beginning with the first quarter of 2023, we elected to reclassify on-premise room upgrade revenues from non-package revenue to package revenue to be consistent with industry trends. We've recast prior periods to conform with current period presentation. A reconciliation of the changes made prior to the reporting period for 2021 and 2022 can be found in our investor deck on slide 5. Furthermore, as Bruce mentioned, there are some unique items affecting the comparability of our financials in the second half of this year that I would like to remind you of before we dive in. Firstly, as Bruce mentioned, Hurricane Fiona hit the Dominican Republic towards the end of Q3 2022 and caused significant disruption at the Hilton La Romana and the Hyatt Cap Cana, which we chose to fully close for a small portion of Q3 2022 and over half of Q4 2022. We shared on our previous earnings call that we estimate the EBIT impact to Q3 2022 to be roughly $2.9 million, and an approximately 80-90 basis point hit to resort EBIT margins, and then an approximately $5.4 million EBIT impact net of business interruption in Q4 of 2022. Given the pronounced seasonality of our ADRs during the fourth quarter, these resorts were disproportionately open during a much higher ADR and margin portion of the fourth quarter, skewing our Q4 2022 ADR and margin comparisons. Second, foreign exchange. As Bruce mentioned, the Mexican peso had its largest year-over-year change during the third quarter of 2023, which negatively impacted our EBIT by just under $8 million, and resort margins by 390 basis points. During the fourth quarter of 2022, we also had several true-up adjustments that significantly increased reported Q4 2022 ADRs. The largest of these was related to an advanced pricing agreement rates in the Dominican Republic that affects our VAT, which was detailed in our Q4 2022 earnings release on page 17. These adjustments in total sum up to nearly approximately $10 or 2.5% of ADR. Business interruption, we received $1 million of BI proceeds during Q3 of 2023, as we outlined in our release, which increased own resort margins by approximately 50 basis points. Lastly, as we've mentioned, the DR Jewels. These resorts have continued to weigh on the performance of the portfolio, negatively impacting own resort margins by over 200 basis points during Q3 2023, and are expected to continue to be a drag on Q4 2023 margins as well. Now let's take a look at our fundamentals. Our third quarter results were in line with our expectations. Continued ADR growth, easing pressure from food and beverage expenses, and cost efficiency measures led to reported resort margin declines of 330 basis points year-over-year, which, as we mentioned, included a 390 basis point headwind from foreign exchange, a 50 basis point benefit from business interruption proceeds, and a 210 basis point headwind from the two Jewel resorts in the Dominican. Adjusting for foreign exchange and business interruption, our legacy portfolio grew underlying margins 150 basis points year-over-year. The ADR growth was broad-based, with all segments reporting year-over-year ADR growth, excluding the two Jewels in the DR. On the cost front, food and beverage costs continued to be favorable as a result of lower input prices and cost efficiency efforts by our operations and procurement teams, while utilities and labor were headwinds in the quarter. As Bruce mentioned, we're undertaking efforts to streamline and improve our procurement processes across the entire portfolio to take advantage of our scale. These efforts are really just beginning to bear fruit from all the heavy lifting undertaken thus far in 2023, and we expect the benefits to accelerate as the company moves into 2024 and beyond, as our cost savings are averaging mid-single digits to high single digits improvements per category. At the segment level, Jamaica again led the way in year-over-year ADR and occupancy growth and margin improvement. As a reminder, Jamaica got off to a slower start in 2022 due to the Omicron variant having a disproportionate impact on the segment given its COVID testing requirements at the time. The ongoing recovery, in addition to the recent investment made into the airport, bode well for the Jamaican segment in the second half of 2023 and beyond. Forecasted flight seats into Montego Bay for the next 6 months are expected to grow mid-teens year-over-year, leading all of our major destinations, with the recent additions and more flights from Canada boosting growth in the fourth quarter. On the margin front, Jamaica once again benefited from better than expected F&B and utilities expense, while insurance and labor costs pressured margins. Keep in mind when comparing results in Jamaica versus other segments, that Jamaica generally has higher operating costs than our other segments and typically generates higher ADRs as well. Looking at our other segments, the Yucatan Peninsula continued to deliver strong results, with reported year-over-year ADR growth of 4.1% and FX adjusted margins expanding 130 basis points year- over- year. Occupancy during the third quarter was down 310 basis points year- over- year, as we anticipated and discussed on our last earnings call. We believe this is attributable to the increased visitation to Europe this summer, and it's evident as year-over-year occupancy increased in September and is expected to be relatively stable in the fourth quarter. Reported owned resort margins were down 700 basis points year-over-year, primarily again as a result of the 840 basis point negative impact from foreign exchange. Food and beverage expenses were favorable year-over-year on a currency-neutral basis, while higher government policy-driven labor costs negatively impacted the margins. All told, we're pleased with the operations team to again expand margins on a currency-neutral basis on more modest ADR and revenue growth. Pacific had another fantastic quarter, with year-over-year ADR improvement of 8.1%, leading to currency adjusted margin gains of 50 basis points, as F&B expenses remained favorable year-over-year. Similar to the Yucatan, segment margins were negatively impacted by approximately 800 basis points as a result of the changes in the Mexican peso. In the Dominican Republic, our legacy resorts, the Hyatt Ziva Cap Cana and the Hilton La Romana, grew ADR over 12% year-over-year, with occupancy of nearly 69%, which was up sharply given the impact of the Hurricane Fiona in late Q3 2022. Adjusting for the impact of Hurricane Fiona in 2022 and business interruption proceeds in Q3 of 2023, underlying EBITDA at these two resorts grew just over 6%. The segment performance was dragged down by the two Jewel resorts, which experienced a more challenging summer period than we anticipated. We continue to expect the performance of the two Jewels to improve sequentially year-over-year, while we execute the sale process of these resorts. Now turning to our MICE group business. Our 2023 net MICE group business on the books is approximately $60 million and is well ahead of our final full year, 2019 MICE revenue of $32 million. Looking ahead to 2024, we currently have approximately $56 million of MICE revenue already on the books, well ahead of where we were at the same time last year, and we believe this sets us up favorably for the first half of 2024 and the high season. From a pacing perspective, this pace of business, combined with our leisure transient bookings, currently has our first half revenue pacing up over 20%, with both ADR and occupancy contributing to that. Finally, turning to the balance sheet. We finished the quarter with a total cash balance of approximately $185 million and total outstanding interest-bearing debt of $1.09 billion. We currently have no outstanding borrowings on our $225 million revolving credit facility. Our net leverage on a trailing basis stands at 3.4 x. We anticipate our cash CapEx spend for full year 2023 to be approximately $55 million-$60 million, partitioned out between $35 million-$40 million for maintenance CapEx, and the remainder designated for ROI-oriented projects. Also, as a reminder, effective April 15th, we entered into two interest rate swaps to mitigate floating rate risk in our new term loan, due 2029. As a reminder, we entered into a 2-year and 3-year contract, both of which have a fixed notional amount of $275 million and carry fixed SOFR rates of 4.05 and 3.71, respectively. On the capital allocation front, as Bruce mentioned, we purchased an additional $76 million of stock during the third quarter and an additional $15 million thus far in Q4. Since we began repurchasing shares last September, we've purchased over 28.8 million shares, or over 17% of the shares outstanding. We still have $43 million remaining on our existing repurchase authorization. With our leverage ratios well below 4x, the anticipated free cash flow generation of the business, and attractive valuation of our stock, we believe repurchasing shares is very compelling use of capital and intend to use our discretionary capital to repurchase shares going forward, depending on market conditions. We'll also continue to invest in our business to deliver value to our guests and shareholders, but the bar is high for new projects on a risk-adjusted basis, given the valuation of our stock. Now turning our attention to our outlook for the remainder of 2023. Relative to the expectations set at the beginning of the year, our RevPAR growth outlook has largely been as expected, with ADRs improving versus initial expectations and occupancy slightly lower, and better than expected performance in our core legacy portfolio and fundamental and fundamentals coming in lower than expected at the DR Jewel Resorts. We expect full year adjusted EBITDA of $260 million-$265 million, and that is inclusive of approximately $25 million negative impact from the appreciation of the Mexican peso, approximately $6 million of which is expected to hit in the fourth quarter of 2023. Our core total legacy portfolio EBITDA forecast for the second half has remained steady in Jamaica and the DR, but year-over-year occupancy declines in Mexico in the second half due to construction disruption in the Pacific, choppiness in the shoulder period, and disruptions in October from the recent storms in the Pacific have incrementally weighed on our Q4 outlook for Mexico. The FX outlook, however, has improved slightly based on an estimated average exchange rate of approximately 17.25 for the fourth quarter, bringing the full year impact to approximately $25 million, with, again, $6 million hitting in the fourth quarter. At the midpoint, our full year guidance represents approximately 8% year-over-year growth on an adjusted EBITDA basis on a reported basis. But after adjusting for hurricane-related expenses, business interruption, and foreign currency impacts, the midpoint of our guidance represents adjusted EBITDA growth of approximately 12.5%. For the fourth quarter, we expect reported occupancy to be in the low 70s, reported ADR growth of low single digits on a year-over-year basis, again, given the aforementioned impact of the factors affecting Q4 2022 reported ADR. We expect owned resort EBITDA margins to decline year-over-year, given the EBITDA drag in the DR from the two Jewel resorts and again, continuing FX headwinds in Mexico. Putting it all together, we expect Q4 owned resort EBITDA of $63 million-$67 million, Playa Collection and management fee income of $2 million-$2.5 million, corporate expense of approximately $15 million-$16 million, which includes a negative FX impact related to our shared service centers in Mexico, all leading to adjusted EBITDA of approximately $49 million-$54 million. Given our booking window, we're approximately 90% booked for the fourth quarter. We're not giving guidance for 2024 today, but I want to flag the following adjustments and unique items to keep in mind as you think about next year. So just as a reminder, in total, thus far in 2023, we've booked $5.3 million of business interruption proceeds. As of today, foreign exchange is forecasted to be approximately $25 million drag on EBITDA this year, and at current spot rates, it would remain a drag into Q1, but we expect it to be closer to neutral beginning in the second quarter. The DR resorts were a material drag on our profits this year, with a combined loss of over $15 million, with approximately a third of that coming in the first quarter of 2023, given the fact that one of the resorts was only open for a small portion of the first quarter this year. While this creates favorable profit comparisons year-over-year in the fourth quarter, the lack of lower-rated room nights vis-à-vis the rest of our portfolio, it will therefore artificially depress our ADR as our occupancy improves materially year-over-year. The Playa Collection and management fee contribution should grow in 2024, given the ramp of the managed properties and, most importantly, the rollout of the Playa Collection across our Hyatt resorts during 2023 and into the early part of 2024. Lastly, we have, as a reminder, we have a robust amount of MICE business on the books for the first half of 2024, which should give us a healthy base to yield ADR from. We hope this framework helps guide you as you fine-tune your models and gives you further insight to what we're seeing and expecting. With that, I'll turn it back over to Bruce for some closing remarks. Great. Thanks, Ryan. So although the complexion was significantly different than we anticipated, 2023 is expected to finish as we originally anticipated back in February. We expected that the second half of the year would be much more difficult than the first half due to tougher comparisons, including an unfavorable MICE calendar, more normal seasonality, the major return of Europe as a destination, and the nonfundamental ADR comparisons from last year's fourth quarter. Despite that, our Mexican resorts performed slightly better than expected on a currency neutral basis, despite the soft patch this summer and continued strength in the Caribbean led to robust profit growth, but disappointing performance at the two DR Jewels, offsetting the stellar performance in the Caribbean. We are diligently moving forward on the disposition of the two DR Jewels and remain committed to returning cash to shareholders with anticipated proceeds. With the increasing uncertainty in the macro backdrop, we are diligently focused on the areas within our control and are carefully monitoring the landscape. We continue to believe the price certainty and amazing value provided by Playa's all-inclusive resorts resonates with travelers, even in the face of an uncertain economic backdrop. With that, I'll open up the line for any questions. We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Chad Beynon with Macquarie. Please go ahead. Good morning. Thanks for taking my question. Great to see all the share repurchases, and, Ryan, thanks for all the same store commentary. Definitely kind of paints the appropriate picture that we're looking for. As we're thinking about the first quarter, have you started to see any price discounting from peers? I guess we could kind of go around your markets. Sounds like, you know, Jamaica, with the mid-teens growth in flight seats, demand is probably going to exceed supply. Mexico is probably the one that we'll be looking for, but just trying to understand price integrity as we kind of get into, you know, a period where maybe demand is a little bit lower in Yucatan and in Pacific in the first quarter. Thanks. Yeah, no, that's something that we've been focused on, you know, throughout the entirety of this year, knowing that, you know, as you've seen the last two quarters, starting with the Yucatan, ADR growth is normalizing and, you know, now kind of low single digits. You know, our focus is still on maintaining rate integrity over pushing occupancy unless there's some sort of major shift in demand, which again, you know, as you saw from Bruce's comments, you saw that, you know, we've seen demand really begin to stabilize, you know, particularly once that summer season was over. And you really saw some nice pickup for the fourth quarter and the first quarter starting kind of tail end of July and August. I'm not saying stays, I'm saying bookings for future periods. And so given our booking window, that leads you to believe that's bookings for Q4 and for Q1. You know, right now, with the exception of the Pacific, you know, we're pacing up, you know, for Q1 on an ADR basis, anywhere from kind of low single digits in the Yucatan to potentially high single digits in Jamaica. The Pacific, given the MICE business that's on the books, a very large book of business that we have coming, I think it's either in January or February, for a legacy group that's done a lot of business with us, actually has a kind of legacy rate still on the books, you know, back from COVID times that we, you know, elected to honor and move forward because they've done such an amount of business with us. So that's really kind of a lumpy book of business, even though they spend a lot on non-package revenue, that weighs on the rates on the books for that period. But otherwise, you know, the pacing and the amount of business we have on the books today gives us a sense of optimism. You know, obviously, you know, booking patterns have returned to normal, and the way we build and pick up occupancy, you know, has kind of returned to normal. So it's going to be critical to see how things continue to book and build the remainder of the winter. But we're happy with where we sit today. Perfect. Thanks, Ryan. And then in terms of some of these margin improvement or procurement opportunities that you touched on, is there a way to frame out same store or kind of FX adjusted, you know, total saves, whether we're thinking about a dollar amount or a margin amount? I mean, could, could this be over, you know, 100 basis points in, in margins if you're able to execute, as planned, understanding that it's it's just kind of underway? Thanks. Yes, the answer is yes. So why don't we break it into kind of the two main buckets? You heard Bruce and I talk about procurement initiatives and then kind of resort efficiency, you know, as we've kind of called it, more so having to do with staffing and kind of waste reduction. But on the procurement side, we hired, you know, a woman in our Florida office, who has really spent the last year condensing and taking advantage of our scale and our buying power. And thus far, and again, very early innings, we're achieving a just under 2% cost savings on food thus far. And, you know, just on a few, you know, unit items within our food base. And just a reminder, food is approximately 15% of our cost. So if you want to extrapolate, you know, 1.8% savings times 15%, you know, that kind of annualizes to roughly 25-30 basis points of annual savings. And we estimate we're only about 20% of the way through the, through the addressable cost base. So we're just getting started there. We're actually, you know, planning on actually adding a couple other members to that team, you know, in some of our local destinations, you know, starting next year in our budget, just because we think those, those members of the team will just pay for themselves, you know, 10 x over. And then the other side is, Bruce mentioned it, is on, you know, with an addition of a new head of operations in Mexico, and then just generally, our overall focus on rationalizing staffing models, across our portfolio, kind of with the ebbs and flows of occupancy. You know, I think most hotel companies will, every couple of years, will kind of re-look at their staffing models and kind of throw old ones out the window, and that's exactly what we've begun to do and say, like: "Hey, you know, how do we think about staffing at these lower occupancies, you know, different times of year?" And then also how we've been actually starting to measure food waste at, you know, at our buffets and at some of our à la carte restaurants, and hope that we can extrapolate and take advantage of some scale there in the future. We don't have a set goal in mind on that. It's a fairly iterative process, again, based on occupancy and how ADR is moving, but that's something that has been a real focus for us, you know, starting at, you know, probably about Q2, as we knew and called out earlier in the year, that ADR is going to be far more normal in the back half of this year. That's great. Thank you very much, guys. Appreciate it. Thanks. Thanks, Chad. The next question comes from Patrick Scholes with Truist Securities. Please go ahead. Hi. Yeah, good morning, Bruce and Ryan. Hey. Morning to you, Pat. My first question, can you just confirm again that, you know, your target leverage, I guess, at the high end net debt to EBITDA is 4x? I think you implied that in the call, but is that correct? No, that's correct. I mean, if you look at it, you know, if we're in the 3-4 x range, I think that's an incredibly prudent place to be. You add to that, you know, kind of our existing cash balance. We have, you know, over $1.30 per share of cash. You know, we've got the anticipated proceeds from the sale of the two Jewels. So, you know, anything we do with regards to share repurchases should be replenished by, you know, the proceeds, you know, we got, which we have, you know, specifically said we're going to use. So I think, you know, we're in a very prudent level. And, you know, just compare us, for example, just to the lodging REITs. And, you know, we are at the low end of all of that group. I feel very comfortable with where we are. You know, we've got, you know, nothing drawn on our revolver. You know, just from a liquidity standpoint, from a cash standpoint, from a, you know, debt to EBITDA standpoint, I think we're in a really good place. Okay, thank you. And one more question. Looking hopefully a bit at 2024, would you expect your CapEx to be materially different from that of 2023? And what if you are able to sell the, Jewel properties, I guess, early next year, would that change your CapEx expectations for 2024? Thank you. I think just based on the timing of what we have planned, whether or not we sold the Jewels wouldn't change the plans. But I expect that the maintenance CapEx levels to remain similar, but the kind of growth CapEx or ROI CapEx, you know, that we've called out in the past, should grow over what we spent this year. You know, we called out a few times some construction disruption in the Pacific. What's happening there is an, it's an ongoing stage renovation of our Ziva in Puerto Vallarta. If you recall, that's one of our legacy Hyatts that hasn't seen a rooms renovation in about seven years or so. And so it's a great earner for us, and we want to, you know, update the rooms to the levels that are, you know, more closely associated with some of our newer Hyatts. We're also spending a small amount of money this year, but a little more forcefully next year in Ziva Los Cabos on public space and meeting space, because that property, again, you know, as a meetings and incentive destination, is phenomenal, but it's been, you know, out punching its weight for a while now, given, you know, again, comparisons to our Ziva Zilara in Jamaica or the brand spanking new Ziva Zilara in Cap Cana. So we want to make sure that we're protecting some of those assets and allowing us to continue to push group business in there, which for all the reasons you already know, is great margin, great ADR, and great NPR business for us. So I expect it to go up some. Okay. Can you just give us, you know, for modeling purposes, I guess, a little bit more granularity on, you know, a rough ballpark of percentage, just something ballpark to... When you say up some, I mean, is that 10% or 50%? Oh, so if we're spending kind of $20-ish to $25 million on growth CapEx this year, it could go up another 50%-75% from there. So, you know, maybe it doubles, but probably not. So we're—we've got just based on the timing of what we've got planned, we're probably not going to do more than that next year. We have other plans that Bruce can go into if he'd like. I don't believe they'll be ready to begin next year, but there's other things in the pipeline. But if we're specifically talking about 2024, you know, call it 50%-75% more on growth CapEx than we spent this year. Okay. That's good color there. Thank you. I'm all set. Thanks, Pat. The next question comes from Chris Woronka with Deutsche Bank. Please go ahead. Hey, good morning, guys. Covered a lot of, covered a lot of ground there, as always. So, could we maybe talk a little bit about the, you know, you called out the Hyatt point change in the Hyatt point redemption levels. And, you know, in addition to that, I know that they've bolted on quite a few brands in recent years and really kind of ramped up their resort offerings to the, to their loyalty members. Do you think any of that is or will have an impact on you guys? I mean, it just, and maybe you could give us a really quick, you know, tutorial on economics of point redemptions for you. Yeah. On the redemption side, the change was actually a net positive for us, you know, in the fact, you know, in the sense that it required more points, and so therefore, you know, you know, the next step from that would be that we would get better ADR rate redemptions from Hyatt the following year. It pushed a lot of those redemptions into kind of the first and second quarter, just as kind of like a percentage of our overall Hyatt room nights. You know, just as an example, we've traditionally had, you know, mid- to high-single-digit point stays from all of our Hyatt business, that in this quarter dropped down to kind of low single digits, purely just because there was a mad dash in the first and second quarter to redeem points before they made that change. But generally, it's not made up a massive portion, one way or another, of our room nights from Hyatt. It's far higher, you know, kind of low double-digit numbers from Hilton. And then, Bruce, if you want to talk to any of the brands? Yeah, I mean, I think, you know, from just a big picture, Chris, if you look at it, I think it's all positive, right? So sure, Hyatt added more, you know, resort offerings with the Apple Leisure Group transaction, but we're at the, you know, upper end. So our products, the Hyatt Ziva and Hyatt Zilara, are, you know, higher, higher. They have higher requirements for redemption, you know, the number of points you need to do. So we're kind of targeting a little different Hyatt customer there. So I don't really think them adding, you know, the stuff below us is really going to have a big impact. And then just overall, you know, and I've said this many times in the past, just the more exposure we get to, you know, to customers, kind of your traditional lodging customers, your Marriott, Hyatt, Hilton, you know, InterContinental customers, to all-inclusive is positive for us. So all of it's positive. So I think we just wanted to highlight that because it was, you know, just a little bit of an interesting phenomena. You've seen that before with airlines, where, you know, the airlines do the same thing. They'll have a, you know, flurry of redemptions because they're changing, you know. That's all it is. I don't think really... You know, as Ryan said, it's not a huge number anyway, and I don't think it's, you know, a big issue, but I think it's just positive that there's more and more exposure in a kind of two-way from your traditional lodging customer to all-inclusive. Okay. Thanks for that, Bruce. And then, you know, I guess, could we—I know you said you don't have any information to share about the Jewel asset sales, but maybe talk a little bit about what the gating, primary gating factor is right now in terms of, you know, getting things over the finish line or not getting them over the finish line. And is there a point at which, given the dilution they're, you know, that they're causing to the portfolio, you know, is there any kind of red line or line in the sand as to when you really want to get rid of those? So, I mean, you know, Chris, our desire obviously is to you know, sell them as soon as possible, okay? And, you know, is there a big issue? I mean, it's not per se, a big issue. It's just the kind of macro market that we're all sitting in, right? Everybody knows the uncertainty out there. Everybody knows about interest rates and volatility of interest rates. And, you know, if you look across, and I've you know, recently, you know, had discussions with a number of people in just the lodging space generally, right? And, you know, the level of transactions is way down, okay? And, you know, that includes new supply, that includes sales, lots of things. So just things are moving slower. I think, again, you step back in the big picture, it's going to benefit us over the next 2-3 years, you know, all of these, you know, kind of fundamentals on supply and demand. With regards to this, there's still a lot of interest, and, and the pricing is attractive for someone who's coming in, looking at, at it, you know, on a price per key. It's attractive for us, you know, on a trailing multiple. For, you know, both sides, I think it's attractive transaction. I don't think there's any significant issue. I think we're going to conclude the two sales and, you know, hopefully, we'll be able to say something in the near future. Okay, fair enough. Just one, one quick last one is on the... I know you mentioned that the locally sourced, I think, business for Mexico is up 570 basis points. Can you maybe compare— What, what does, what does profitability look on that relative to... I know you're, you're still missing Canada, you're still missing a little bit of Europe and, and more of Asia. So is there a way to just kind of bucket those in terms of their kind of contribution to however you look at it, whether it's EBITDA or RevPAR? Yeah, the, you know, the best way to look at it is kind of a percentage of the pie on room nights or revenue. You know, we still remain very heavily, you know, North American-centric. You know, Mexico traditionally has been kind of 8-10 percentage points of kind of room nights, revenue-ish, U.S. being a very large portion, and then Canada. Canada and Asia were the two, up until recently, that were still kind of behind. Canada had been had its stops and starts, and Asia was still, you know, only about 20-25% recovered. But Asia, pre-pandemic, was only about 4% of our overall pie. Canada, particularly, you know, you heard us reference some of the increases in flights into all of our destinations. Canada is a large part of that across all of our destinations. They've got big pickup, you know, in the DR and Mexico and Jamaica, you know, for Q4 and for Q1. So, you know, I expect by the time we're talking to you, you know, next year about Q4 results, Canada will be essentially fully recovered, if not, if not better than pre-pandemic levels, which is exciting. So a big piece of our overall business. ... Okay. Very helpful. Thanks, guys. Thanks, Chris. Chris. The next question comes from Smedes Rose with Citi. Please go ahead. Hi. Thanks. I wanted to go back to the Jewel assets, which I think you'd said are a drag of $15 million this year. I think you've been trying to sell them for close to a year now. So as you look out into 2024, and I think you had said that you think you can sell them, but if you cannot, I mean, is there a point where it's better just to close them instead of diluting your shareholders so significantly? I mean, what's the argument for keeping them open when they're losing money? Yeah. So, I mean, first of all, you know, and as we highlighted Smedes, in our script, you know, one of the big issues with the properties is kind of how we took them over, okay? And so, you know, when that happened, from a timing perspective, you know, we had really missed the European sales period. And, you know, the Dominican Republic relies very significantly on European customers, and they sell kind of a more traditional way than we do to our other segments, particularly to the U.S. customers and even the Canadian customers. So it's done well in advance, you know, through a lot of the traditional channels. And, you know, so we missed that, and particularly, that impacted, you know, kind of the summer into the third quarter, right? So the really big into the second and third quarter. So, I'll let Ryan talk about how, you know, that goes forward. But, you know, our focus, number one, is on selling the assets. As I just said, you know, to Chris, I feel confident we're going to be able to. We will start, you know, lapping, you know, the bigger negatives, but we also have a better sales position with regards to Europe, and so I think that will benefit us. Yeah, yeah. I mean, I guess the question is in 2024. Sorry, can I just... The question is for 2024, if you're not able to sell them, can you at least get them to break even? Do you think you can get them to zero, or- Yeah, that's, that's where I was going to answer. So, yeah. So the good news is all of those things that ailed us in 2023, you shouldn't have. So one, just by design, they're going to be open in the high season, right? We have a better chance of getting them to break even. And that we've spent a lot of time, particularly over the summer, actually building up a sales force in the Dominican, and we brought in a vice president of sales for the Dominican Republic, who has deep ties to Europe. And just even having come a couple of weeks ago from our board, excuse me, not our board meeting, our budget meetings in the Dominican, is a very, very large focus internally and in the sales and commercial organization on getting these back up, you know, to kind of pre, you know, closer to 2022 levels and, and others. So I think we have a good chance of getting them to break even. And if not, they're still significantly better than where they are today, and they're far, far, far less of a drag. But you're absolutely right, Smedes. There's, you know, the goal should not be to get them to break even. It's to get them better than that. That's right. I mean, it seems like the goal should be to close them if they can't get to break even. I mean, I guess I don't really get what's the point of keeping them open if they're losing money and if- There's other considerations on a sale process and other things you have to keep in mind, too. You can't look at them isolated in a vacuum. All right. Thank you. Sure. Thanks. The next question comes from Tyler Batory with Oppenheimer. Please go ahead. Thank you. Good morning. So a follow-up question on the ADR growth, and specific to Q4, Ryan, you mentioned low single digits growth year- over- year. I think last quarter you were talking about low single digits to mid single digits. So did that change there in terms of the outlook? And what are you seeing in terms of pricing around the holidays in Q4 in particular? I know it's a little more of a peak period, probably elevated rates. You still expecting to see ADR growth during those periods? Yeah, for the, for the festive periods, absolutely. That looks good. You know, the shoulder periods are definitely more choppy. The Jewels have contributed to kind of that lower end of the original kind of guidance range for Q4. We did talk to be specific, Tyler, I don't think we ever gave Q4 specifically. We talked back half of the year, and so that's where you're getting, you know, the mid to low to mid single digit. And so, I don't think it's changed too much from where we spoke last time, but, you know, on a reported basis, it should be up low single digits. But again, for all those reasons we discussed, there's a lot of things working against us, including the aforementioned adjustments to Q2 2022, or the fact that the two hurricane properties that we reopened in Q4 were opened at the highest ADR points of the fourth quarter. There's a big difference between ADRs in October than it is in December, right? So if you look at that on a clean underlying basis, our reported our underlying ADR growth should be kind of low to mid-ish single digits, but again, you wouldn't see it. It'll. That would be on an underlying basis. Okay. Okay, very good. And then, you know, do you think when you look at your portfolio, and Bruce, I think you, you talked in Mexico, you know, thinking that you're gaining market share. Does that comment extend to other regions in the portfolio? I mean, it might be tough to, tough to measure, but just trying to get a sense of whether you, you think you're gaining market share, whether you think you're, you're growing faster than, than peers. You know, I'm trying to get a sense, too, of just, just how impactful the, the Hyatt brands are in terms of your per-performance versus, versus some of the competition that's out there. Yeah, I mean, I think, Tyler, right now, you know, we can definitely say that for Mexico and the DR. And you know, we're targeting investment to go into Jamaica in order to continue to do that in Jamaica. And I would say that's an opportunity, you know, for us. But there's no question, you know, that if you look at our resorts. I mean, we have, you know, for the large part, a very trophy, you know, portfolio. You know, our Ziva Cancún is on the best location in the hotel zone in Cancún. You know, our Hyatt Ziva in Cap Cana is in the top destination in all of Punta Cana. You know, Los Cabos, we're direct, you know, direct connection to the airport on, you know, one of the best stretches of beach, you know, in Los Cabos. You know, Puerto Vallarta, it was originally, you know, one of the best Mexican hotels at Camino Real. We're on a private beach in Puerto Vallarta. So you just look at, you know, the real estate, and then, you know, you combine that with, you know, the rebranding and, you know, kind of the. And we highlighted that where, you know, the U.S. consumer in particular, but all consumers are really much more familiar with all-inclusive. Once you experience all-inclusive and you like it, then you say, "Okay, now I want to go to the best ones in the market." You know, we're going to be, you know, top of, top of the radar when it comes to that. So I think, you know, our goal needs to be, and, and will be, that we will continue to, you know, exceed, you know, the, the market conditions, right? We're going to have a bigger premium. We should continue to have our ADR and RevPAR premium over, over our competition. And, and quite honestly, I'm not going to accept anything less than that. Okay, great. And then my last question is on group business. And, you know, it's really been a pretty significant driver of results for hotels in the U.S. You know, your book position in terms of the numbers that you gave, you know, sounds pretty strong. So just any more commentary in terms of what you're seeing for group bookings? I mean, how sustainable is that strength? You know, what percentage of your mix is typically group? You know, might that increase going forward? Yeah. Before we built the Hyatt Ziva Cap Cana, we were around 10%, so I expect that to kind of move up a little bit more, you know, a lot as revenues grow as well. You know, for us, we're already booking well into 2025. You know, I'm not expecting too much more, you know, being added to 2024 in the year for the year. And so I think it's pretty sustainable. You know, again, we have the nice benefit of having Cap Cana where we didn't before. It's an incremental property. So now we've satisfied. We used to say this kind of a year or so ago, we're satisfying a lot of these meeting incentive planners who want to do a two or three-year rotation. And I think in next year in Cabo, I referenced it earlier, that is the last group, I believe, that was at original kind of, you know, pre-pandemic or pandemic-era rates, right? That are being pushed through. So everything that we're booking now, even if it's the same group or a group that stayed with us before, it's incremental bookings and someone who wants to come back. It's not just some legacy pent-up demand that we're still trying to work through. So a lot of that was 2022 into 2023 and, like, the last couple legacy ones were 2024. and then on top of that, you heard us mention before, we're spending monies this year, and more importantly, next year, on some of the meeting space in Cabo to kind of protect some of those kind of, you know, golden assets for us to drive a lot of meeting incentive business and allow us to yield. Okay. That's all from me. Thank you. Thanks, Tyler. This concludes our question and answer session. I would like to turn the conference back over to Bruce Wardinski for any closing remarks. Great. Well, thank you all for participating today. You know, we're guardedly optimistic about the rest of this year and into the first half of next year, and we'll be very focused on, you know, sales and operating fundamentals. And, you know, we look forward to having you all join us for our next quarterly call. Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.