Greetings, welcome to Travel + Leisure's second quarter 2026 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andrew Burns, Vice President, Investor Relations. Please go ahead. Thank you, Donna. Good morning, everyone. Before we begin, I'd like to remind you that our discussion today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements. The forward-looking statements made today are effective only as of today. We undertake no obligation to publicly update or revise these statements. The factors that could cause actual results to differ are discussed in our SEC filings and our press release accompanying this earnings call. You can also find a reconciliation of non-GAAP financial measures discussed today in the earnings press release available on our investor relations website. Please note that all references to EBITDA, net income, earnings per share, free cash flow made during this call are on an adjusted basis as disclosed in our earnings press release today. Additionally, all references to earnings per share are on a diluted basis. This morning, Michael Brown, our President and Chief Executive Officer, will provide an overview of our results and our longer-term growth strategy. Erik Hoag, our Chief Financial Officer, will provide greater detail on our results, capital allocation strategy, and outlook for 2026. Following our prepared remarks, we'll open the call up for questions. Finally, all comparisons today are to the same period of the prior year, unless specifically stated. With that, I'll turn the call over to Mike. Good morning, thank you for joining us. Our strong second quarter and first half results demonstrate consistent execution in the durability of our business model. Healthy owner trends and robust travel demand translated into recurring upgrade sales, increasing new owner sales, predictable cash flow, and meaningful capital returns. I want to thank our associates across Travel + Leisure for delivering the exceptional vacation experiences that are the foundation of our success. The sustained momentum we have in our business is clearly reflected in first half results. Revenue growth, combined with EBITDA margin improvement and our shareholder-friendly capital allocation approach fueled compounding growth across the P&L. Gross VOI sales, the core engine that drives multiple predictable revenue streams, increased 7%. EBITDA grew 9%, fueled by 120 basis point improvement in EBITDA margin. Earnings per share were up 21% year-over-year as share repurchases amplified per share economics. Through the first half of the year, we've returned $253 million to shareholders through dividends and share repurchases. We've been able to reduce our common shares outstanding by 4%, reflecting our ongoing commitment to disciplined capital allocation. For the quarter, we generated revenue of $1.06 billion, and EBITDA of $269 million. Gross VOI sales increased 6% and was above our guidance range, supported by high-quality tours and strong owner engagement. Volume per guest also exceeded plan at $3,318, up 2% year -over -year. Our consumer remains healthy and continues to prioritize travel. First half arrivals, adjusted for strategic resort closures, increased year-over-year, and forward bookings give us clear visibility into continued growth in the second half. Key booking metrics also remain strong. The booking window was 109 days, and average length of stay was four days, both at or above prior year levels. Together, these trends reflect the health of our owner base and the value proposition of our products. Overall, this second half visibility, combined with our strong first half performance, gives us the confidence to raise our full year EBITDA, Vacation Ownership sales, and VPG outlook. Our updated guidance also reflects the expected accretion from the acquisitions of Yes& Vacations and Spinnaker Resorts, which we announced last week. These acquisitions at high-quality resorts and high-demand vacation destinations increase our owner base and are immediately accretive to earnings. Let me share with you the strategic benefits in more detail. These acquisitions add 23 resorts, including six properties in Hilton Head and seven in Maui. These are highly sought-after leisure destinations where new development is challenging. This more than offsets our recent strategic resort closures, demonstrating our commitment to proactively grow our network while improving the quality, reach, and relevance of our resorts. Adding premier destinations through acquisitions and development while removing older, lower demand properties enhances our owner value proposition and supports long-term growth. We are also adding over 100,000 owners, expanding our owner base by more than 10%. These owners are similar in age and average income to Travel + Leisure's owner base, and approximately 80% of them have fully paid off their timeshare loan. Adding these owners creates a larger embedded audience for future upgrade activity, particularly as we introduce these owners to our broader product set and flexible points-based system. From a capital allocation perspective, these acquisitions clear our returns-based thresholds and offer attractive long-term return profiles and immediate accretion. The size of these transactions preserves our balance sheet flexibility and allows us to maintain our capital allocation strategy, including dividends and share repurchases. We believe these deals have low integration risk. They are well-run platforms with established owner bases, existing resort operations, and familiar business models. We can preserve what is working locally while thoughtfully bringing the businesses onto our platform, which lowers execution risks and allows us to integrate at the correct pace. During the second quarter, we continued to make meaningful progress scaling our multi-brand strategy. Margaritaville is on track to exceed $150 million in annual VOI sales. Accor Vacation Club sales remain on track to nearly double in 2026, and Eddie Bauer Adventure Club sales are meaningfully exceeding our expectations. Sports Illustrated Resorts is also progressing with our Nashville resort opening in the third quarter and sales already underway at our new sales center. Each brand gives us a distinct way to reach new traveler profiles while leveraging the scale, sales expertise, and operating platform of Travel + Leisure. Combined VOI sales from these brands remain on track to approach 10% of our sales mix this year. Our multi-brand strategy is grounded in a simple but powerful insight. Consumers increasingly choose leisure travel that reflects who they are and how they want to spend their time. Whether it is the toes in the sand, drink in hand energy of Margaritaville or the excitement surrounding Sports Illustrated Resorts and SEC football weekends, these brands create a more personal and emotional connection with travelers. That is what makes the strategy so compelling, and the measurable progress we are making gives us confidence that it is developing as we originally envisioned. We are also investing in digital infrastructure to support this strategy. We recently launched the Margaritaville app, giving owners a more seamless way to engage with the brand. This is another milestone in advancing our broader digital roadmap, which is designed to help owners search, plan, book, and travel through digital channels. By way of example, the award-winning Club Wyndham app, which we launched less than two years ago, now represents more than 30% of total club bookings. Turning to the resort optimization initiative, it continues to perform exceptionally well. As a reminder, this initiative involves removing a small number of aging, lower demanded resorts to strengthen the overall system for our club HOAs and owners and improve the financial health of Travel + Leisure. We are realizing the expense savings that we expected as part of our resort optimization initiatives, and to date, stronger conversion and VPG have more than offset the lost tour volume from closed sales centers, allowing us to maintain our VOI sales growth rate. To close, our results reflect exceptional execution and reinforce the strength of our model. We are entering the back half of the year with clear visibility into continued growth. At the same time, we are investing in areas that will extend our growth runway, including scaling our multi-brand strategy, enhancing the quality and reach of our resort portfolio, and improving the owner experience through digital innovation. All of these factors support sustainable long-term growth and give us the confidence to raise our full-year EBITDA, Vacation Ownership sales, and VPG guidance. I'll turn the call over to Erik to further elaborate on our results, capital allocation framework, and outlook. Erik? Thanks, Mike. Good morning, everyone. I'll start with our enterprise performance, then discuss our operating segments, capital allocation, our balance sheet, and finally, our outlook. Starting with enterprise performance, we delivered another strong quarter, generating revenue of $1.06 billion in EBITDA of $269 million. Compounding was evident across the P&L. Revenue grew 4%, EBITDA grew 8%, and earnings per share grew 14%. EBITDA margin expanded 70 basis points, reflecting healthy operating leverage across the business. We believe the quality of our earnings is just as important as the quantity. Once again, those earnings translated into free cash flow, allowing us to continue investing in the business, return meaningful capital to shareholders, execute accretive acquisitions, and maintain a strong balance sheet. Turning to the Vacation Ownership segment. The business continues to perform well across key operating metrics. Gross VOI sales increased 6% to $693 million. Segment revenue grew 6% to $907 million. Segment EBITDA increased 13% to $247 million, reflecting healthy demand, continued strength in volume per guest, and the ongoing benefits of our resort optimization initiative. Tours increased 1% during the quarter, reflecting solid demand and new owner acquisition. New owner mix was up slightly year-over-year with healthy new owner transaction volume and close rates. Our inventory position continues to evolve favorably. We're exiting older, lower demand resorts through our resort optimization initiative and improving the quality of our resort network through new brands and recent acquisitions. The result is a stronger network, a better owner experience, and a higher quality business. Credit performance in the quarter remained consistent with our underwriting standards. Weighted average FICO scores at origination remained above 740, and down payment levels have improved year-over-year. Our loan provision rate was flat year-over-year. Delinquency rates improved sequentially from the first quarter. These results reinforce what differentiates our Vacation Ownership business: a large, engaged owner base, attractive unit economics, and multiple avenues for long-term growth. The compounding engine we outlined at the start of the year. Turning to Travel and Membership. Second quarter revenue declined 5% to $157 million, while segment EBITDA declined 11% to $49 million, reflecting the continued evolution of our exchange business. Our focus continues to be on stabilizing the long-term earnings profile and free cash flow generation of the business through operational improvements, new strategic partnerships, and digital initiatives. Moving to capital allocation, which continues to be one of our highest priorities. We continue to operate against the framework we set in February: invest in the core business, return capital to shareholders through dividends and repurchases, and pursue opportunistic M&A when returns are clearly superior to buying back our own shares. During the quarter, we repurchased approximately $88 million of common stock, an increase of 25% from the prior year, while continuing to pay our quarterly dividend. Subsequent to quarter end, we acquired Yes& Vacations and executed an agreement to acquire Spinnaker Resorts. These transactions reflect exactly what we look for: attractive financial returns, high quality owners that we can upgrade over time, receivables that we can securitize, resorts that enhance our portfolio, recurring management fee streams, and businesses we know we can successfully integrate. The financial math on these transactions clears the framework by a meaningful margin. We're investing approximately $340 million to acquire businesses expected to generate about $50 million of EBITDA on a full year synergized basis. After securitizing roughly $80 million of finance receivables, our net capital deployed falls to about $260 million, resulting in a net investment multiple of approximately 5x EBITDA. The transactions add approximately 2/10 of one turn of leverage, and we expect to end 2026 with leverage of 3.2 x. Importantly, our share repurchase program will continue. We expect a similar level of buybacks in 2026 compared to 2025. These transactions were funded through cash and existing debt capacity and did not require any change to our capital return commitment. We're excited to welcome both organizations to Travel + Leisure and look forward to updating you on our integration progress in the quarters ahead. Turning to the balance sheet. We ended the quarter with a strong liquidity position and leverage below 3.2 x, down from 3.4x in the second quarter last year. Liquidity remains strong with over $1.2 billion of available capacity across cash on hand and a revolving credit facility. Earlier this week, we completed our second ABS transaction of the year, raising $300 million at a 98% advance rate and a 5.52% coupon. Overall, our balance sheet continues to provide significant financial flexibility to support investment in the business, shareholder returns, and future investment opportunities. Our financial flexibility is a competitive advantage. Moving to the outlook. We are raising our full year guidance for two reasons: stronger than expected operating performance across our core business and the expected contribution from the acquisitions of Yes& Vacations and Spinnaker Resorts. Starting with the core. Our first half performance exceeded our original expectation, driven by strong execution, healthy owner demand, and continued strength in volume per guest. Excluding acquisitions, we now expect full year EBITDA to be between $1.05 billion and $1.065 billion. Turning to the acquisitions, we expect Yes& Vacations and Spinnaker Resorts to contribute $15 million - $20 million of incremental EBITDA during 2026. Combining the stronger outlook for the core business with the expected contribution from the acquisitions, we now expect full year gross VOI sales of $2.6 billion - $2.675 billion. EBITDA of $1.065 billion - $1.085 billion. In our consumer finance business, we still expect our full year provision rate to be modestly below prior year levels before the impact of acquisitions. Including the provision on sales from our recently announced acquisitions, we now expect our consolidated loan loss provision rate to be approximately 21%. Additional guidance assumptions include a full year adjusted tax rate of approximately 29%, free cash flow conversion of roughly half of EBITDA, and year-over-year EPS growth of approximately 20%, supported by EBITDA growth, deal accretion, and share repurchases. For the third quarter, we expect gross VOI sales of $700 million - $740 million, EBITDA of $275 million - $285 million, and volume per guest of $3,300 - $3,350. In closing, the business continues to perform as designed. Our updated outlook demonstrates the momentum we're seeing in the business. At the same time, we're not standing still. We're deploying capital to make our company even better. Our investment thesis remains straightforward and continues to be grounded in four characteristics. First, a compelling consumer value proposition that continues to attract new owners while deepening relationships with our existing owner base. Second, a recurring demand business model that generates durable earnings, cash flow, and visibility. Third, multiple growth drivers, including our multi-brand strategy and strategic acquisitions that continue to expand our growth runway. Finally, a strong free cash flow and capital allocation framework that's focused on compounding long-term per share value. That's the business we're continuing to build and why we remain confident in our strategy and our ability to create long-term per share value. Donna, we can now open the line for questions. Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. We do ask that you please limit yourself to one question and one follow-up. Again, that's star one to register a question at this time. Today's first question is coming from Patrick Scholes of Truist Securities. Please go ahead. Hi. Good morning, Mike and Erik. I'll start out with a high level question, being that you're the first sort of greater lodging company to report. Mike, just give us your latest thoughts on the state of your consumer. Just in general thoughts around that, and then I'll have a follow-up question for you, Erik. Thank you. When we closed out Q1, we were pretty clear that our consumer remained committed to vacations. The metrics supporting them, both behaviorally and economically, were strong. As we're 90 days later, nothing's changed in that outlook. When you look at our booking patterns, our forward bookings, length of stay, distance traveled to get on vacation, all those are remarkably consistent from what we saw in Q1 in April. You can see through our new owner business that ticked up tours and transactions, as well as our owner VPGs being above the range. The economic side of our measurement remains very consistent and very strong. As we get toward the end of our summer season, we're very pleased to be moving through Q2 and into Q3, the two highest quarters of the year, with very strong demand from the consumer, and we've not seen anything in our metrics that would indicate there's a weakening occurring. Consistent and strong. Okay. Thank you. Erik, let's talk just a moment on trends in the loan loss provision. Certainly in 1Q, there had been some concerns about a very modest uptick in the early-stage delinquencies. Can you kind of walk us through what's the latest in 2Q and how that has been trending, as well as any other granular thoughts and observations in the loan loss provision and just trends around that? Thank you. Yeah. Thanks, Patrick. Maybe zooming out a little bit on the consumer finance book, and I'll first maybe start with the point of sale. I mentioned it in my prepared remarks, but the point-of-sale underwriting remains very consistent. It remains very disciplined. We have had FICO scores that have averaged in the 740 range. Down payment rates have moved into the mid-20s, so I think the punchline associated with point-of-sale underwriting remains consistent and disciplined. Moving on to early-stage delinquencies. You're right. In the first quarter, we talked about a roughly 20 basis point sequential increase in early-stage delinquencies. Since that time, we've seen a roughly 80 basis point improvement since the first quarter, which is more pronounced than what we would typically expect to see between the first quarter and the second quarter, which would have roughly been about 40 basis points. A meaningful improvement in early-stage delinquencies in the second quarter, which puts us right back into the seasonal pattern that we would expect. The third thing associated with the full-year loan loss provision, we continue to expect 2026 to be lower than 2025. One thing specifically associated with early-stage delinquencies at Travel + Leisure, Patrick, you've got to be current on your loan to book travel, and you've got to be current on your loan to actually arrive at one of our resorts. As we have moved from the first quarter into the second quarter, we have seen that delinquency pattern move right back to where we would expect it to be as we move into the heavier travel season of the year. Thank you for the color and granularity on that. I'm all set. Thank you. Our next question is coming from Chris Woronka of Deutsche Bank. Please go ahead. Hey, good morning, guys. Thanks for taking the questions. Michael, if you could maybe give us a little bit of a background on these two acquisitions you just announced in terms of maybe how they came about and what possibly got you guys over the finish line versus maybe some others, either public or private, that might have also been looking. Thanks. Then I have a follow-up. Well, let me first say that our strategy around M&A has been consistent on every one of these calls that we want to look for strategic transactions that are financially accretive. We spoke at length throughout the prepared remarks that both of these hit those marks and hit them right in the bullseye. Both of these companies are well-run companies that have resorts in destinations where we had white space. Hilton Head, South Carolina, and Maui are two locations that are highly demanded for our owner bases, and we had a need in both of those. Add on to the fact that development in those areas is super constrained. We really like these opportunities to put, as we said, 13 of the 23 resorts are in those two locations alone, aside from 10 other great projects in their system. Resort expansion for our owners over time, very important in key destinations. On the flip side, opportunities for the Yes& and Spinnaker owner base to see a broader network of what they have available vacations. That's point number one is resort portfolio destinations. Number two is owner base. Over 100,000 owners. The ability to offer existing owner base of 100,000 + into our resort network, should they choose points-based system, allowing maximum flexibility. It's just going to be a great offering for the existing owner base that I think will be received extremely well by the embedded owner bases at the two companies. Lastly, the financial accretion. I think Erik walked through very well the reasons that this made a ton of sense financially. We had to squint really hard to find a reason to not aggressively pursue both. We did aggressively pursue both, and I think from a standpoint of seller and buyer, everyone won in both these equations, and we'll be great stewards of both these companies and help to grow their owner bases and grow, I think, satisfaction of our nearly 800,000 owners plus the 100,000 will be added to our system. Okay. Well, thanks for all the color, Michael. As a follow-up, you guys have talked in the past about potentially looking to create value within the Travel and Membership segment, and I'm just kind of curious, as we sit here now and we see a lot of private capital investing in this broader travel and leisure space all over, do you think there's a higher likelihood that something value add could happen now than maybe a year ago or six months ago? Let me start it, and then I'll hand it to Erik here. Let me just start by saying on the quarterly performance, we continue to stay committed to growing businesses within the travel and membership space. When you step into that business, you see the exchange business is the challenge side of the equation, and we continue to grow transactions, albeit lower margin on the travel club business. Related to potential other opportunities, we will absolutely look at them. I think as I hand it to Erik here, we will be very disciplined, just like we were with these two acquisitions, to make sure that we are checking the right boxes. Given that capital allocation is Erik's body work, in addition to mine, let me hand it to him to let him conclude. Yeah, Chris, I think, as Mike said, we are open to a two things. Number one, we're going to continue to focus on driving returns in this business, in a way where we can match the EBITDA performance to the revenue performance. We are very focused associated with managing costs, running the business for cash. We're making some modest investments in the business, as I mentioned in my prepared remarks, associated with some digital capabilities, similar to the apps that we have for Club Wyndham and WorldMark and Margaritaville to reduce the friction associated with the product for the subscribers in the business. As far as strategic alternatives for the business, we'll continue to evaluate. We're very focused associated with total shareholder return and making sure that any decision that we make associated with the portfolio is driving accretion to the shareholder base. Okay, got it. Very helpful. Thanks, guys. Thanks, Chris. Thank you. The next question is coming from Stephen Grambling of Morgan Stanley. Please go ahead. Hey, thank you. Wanted to clarify, I realize it's early, as we look at the, I think you said $15 million-$20 million of incremental EBITDA in 2026 from the acquisitions, is that the right kind of run rate, based on the core business' seasonality to think about for at least a base case for 2027? Are there other puts and takes to consider as we think through the integration and any potential synergies or one-time costs? Stephen, this is Mike. Let's start with the fact that we've closed on Yes& about 10 days ago, and although we've signed Spinnaker, we will close on that business in August. You're not getting half year full results this year, which is why, as Erik laid out, it's $50 million year one, and we're going to be getting 4.5 to five months of that this year. I think you're better to start with the $50 million year one run rate as the starting point. Our process will be pretty clear as these are well-run businesses, we'll get in and we'll try to realize our synergies as soon as possible so that we can enjoy full synergized cost in 2027. On the revenue synergies, that takes more time to make sure you do that thoughtfully, measure twice, cut once approach. It's clear that we have the opportunity to move systems onto a points-based, which will create a lot of owner value and therefore upgrade opportunity, that's not a quarter-by-quarter transition. We'll start the transition this year, it'll take several years to realize the full potential of those upgrades. The $50 million you heard today for year one is primarily run rate that's been synergized for the first 12 months. Got it. That's helpful. It's all cost, but the revenue might come later. One other just clarification, you were giving some details around delinquencies improving. As we think about the provision, over the past three years, the provision's been above write-offs. They both moved higher. If the delinquencies are stabilizing or down year-over-year, at what point would you start to think through maybe unwinding some of the incremental allowance relative to the write-off trend line? Hey, Stephen. It's Erik. I think it's a fair question. Let me start with the second quarter early-stage delinquency improvement. We were down 80 basis points sequentially, reconfirming that the loan loss provision should be down. There will be some modest pressure associated with the loan loss associated with the acquired business. I think as we get later in the year, Stephen, and start to think about our 2027 expectation, that might be an appropriate time for us to reevaluate what we expect the longer-term provision to look like. Fair enough. Thank you. Thank you. The next question is coming from Ben Chaiken of Mizuho. Please go ahead. Hey, good morning. Thanks for taking my questions. Maybe just one on M&A with three parts, if that's okay. It seems like the major opportunity here is upgrades of existing Yes& as well as Spinnaker owners. I guess number one, is there a medium-term, and we don't have to put, like, a time frame on it, but medium-term upgrade propensity you think is reasonable, 15%, 20%, 30%? Maybe a better way to ask is, what have you seen in the past in these type of deals? Again, in terms of upgrade propensity of legacy owners into the new system. Question two would be, were these platforms on points or were they deeded? Then three, does this also help you? Maybe I'll stop there. Then there's a quick third follow-up. Let me try to get the second one first, which is, one of the companies was not on a points-based system. It's an obvious move just to honor and recognize their current ownership, but give them the opportunity to move to a points-based system. The industry's moved there, high flexibility. The other company had just a variety of different product types, but not cleanly on a points-based system. When you look across the 100,000 owner base, you're looking at the opportunity to move them all onto a points-based system. I would describe the opportunity as pretty full related to that owner base. I'm not going to today give a upgrade propensity likelihood. What I would say is, what we really enjoyed about the process and getting to know both companies is we saw tons of owner synergies between the two companies on locations, points usage platforms, and we would expect that, as you rightly said, Ben, the owner opportunity is the first clear and immediate opportunity related to revenue synergies. What I would also say, though, and one of the strategic benefits of these transactions is we're not marketing today in these two primary locations of Maui and Hilton Head, which creates a new opportunity that we did not have 30 days ago. Yes, we've all seen this before in the industry. The owner opportunity is the greatest and it's the most immediate, but we really like the subtle long-term opportunity that sits in both of these markets that are new to our system. Let's not forget they've got other resorts and other destinations which do overlap us, but having over 50% of the resorts in new destinations and destinations of these quality where you can see two oceans, it's really a great win for us. That's very helpful. Just a quick third one. Does this help fill in the gaps to reduce some of the leakage, if I may, from the resort optimization? I guess the reason it's coming to mind, and maybe it's just a coincidence, but I think one of the acquired assets or a few of the acquired assets are in Branson, Missouri, which is a location you referenced on the last call and was part of the streamlining. When I say leakage, meaning just adding some locations where you may have seen customer friction on the VOI sales side. Thanks. I would not describe this as filling gaps where we lost in the resort optimization. I would say it's a broad-based upgrade to our system in multiple locations. I know you mentioned Branson, but I think Branson's one of those that's still a seasonal location. What we view this is improving our portfolio, moving from lower demand, highly seasonal location to year-round oceanfront resorts. That to me is where we can turn around to all three of these owner bases, Spinnaker, Yes& and our existing platform and say, "We at Travel + Leisure are deploying capital for the benefit of owner bases so that you have less compression, less booking friction, and better, newer locations that you can enjoy and will more likely result in fulfillment," which is the number one business that we're in, is getting people on their number one vacation as often as possible. Putting these 23 resorts into the system when we've exited 12 full resorts and five partial ones is a absolute numerical increase, but also a quality increase to people's vacation options. Thank you. Very helpful. Thank you. Our next question is coming from David Katz of Jefferies. Please go ahead. Hi. Good morning. Thanks for taking my question. Enjoying all the detail about the acquired businesses. Just starting off with one follow-up there. It sounds like one of the acquired companies has owned the deeded product versus points. What insights do you have that owner base didn't buy what they bought because they only want to go to that location, meaning some of the revenue synergies are likely driven by the transferability of those owners to sort of buy in other locations also, right? We've seen that in one of your peers over the years with Hawaii, for example. David, it's a great question, insightful question. We fully expect the owner bases at both of these companies to be sticky to these locations. Whether it was in the Q&A or in our remarks, I forget which I said it was, we think there's going to be the opportunity over time for people to upgrade into these locations. Why is that the case? There is constant turnover in ownership. As ownerships age, people will look for what's their option, and it could be buying more in a points-based system. It could be exiting the system. We enter these transactions willing to put in capital and willing to support basically inventory processing, and that could be upgrading resorts, it could be processing foreclosures, it could be really investing in the rebranding of the resorts to a multitude of brands. I think ultimately, David, you've got great locations with embedded bases that will want to go there, and then you've just simply got a population of people who are going to want more options. We provide with our scale and our platform and our capital scale that we can fulfill all of those needs of the owner bases, and ultimately that's going to create inventory availability in these high-demand destinations. Understood. Appreciate the growth. I wanted to follow up just quickly on making sure I am not combining two comments and connecting them inappropriately. I think in the prepared remarks, you said that 80% of the owners that you are acquiring do not have loans. I think, Erik, you may have suggested that loan loss this year was going to be 21%, if I heard correctly, which is slightly higher than I think what we were normally expecting. Am I connecting two dots inappropriately to say those other 20% of owners are the driver of pushing that loan loss just a little bit higher? Yeah. Am I inappropriately connecting two dots? No, David. I think there is a couple things in there. First, let's start with the organic loan loss provision. We expect that number to be down on a full-year basis versus 2025. This is exactly what we have been talking about over the last couple of quarters. You got that point exactly right. The provision associated with the acquired companies is higher. As we bring them into the ecosystem here in 2026, we would expect A plus B to be slightly higher than our slightly down on a year-over-year basis. That is maybe 2026. Maybe looking a little bit forward, as we apply the same collections and servicing capabilities that we have here at TNL and run our historical credit performance, I would expect that those operating disciplines to help the acquired portfolio migrate closer to our historical performance. That is what it is. We expect the organic loan loss provision to be down. There is some pressure associated with the acquired portfolios. More than anything else, and we have already talked about it a little bit today, we are not buying these companies for the portfolio. We are buying these companies for the 100,000 owners that come with it and the ability for us to introduce Club Wyndham access, our multi-brand strategy, and have the ability to upgrade them over time. Very clear. Thank you very much. Thank you. Our next question is coming from Ian Zaffino of Oppenheimer & Co. Please go ahead. Hi. Thank you very much. On the VPG, it kind of came in better than expected. What drove that, or at least what kind of surprised you what you saw in the quarter versus what you had expected going into the quarter, whether it's new owners or existing owners pricing? What kind of drove that discrepancy with what you were expecting? Thanks. Yeah. Hey, Ian. There's really two drivers to the favorability in VPG. It's we're seeing larger packages being sold. That's a component, and we're seeing a little bit of price annualization on the packages themselves. If I could just follow up on that. Go on. Ian, I'm just going to add one thing. Erik got it exactly right, I'm just going to take the opportunity. We just have an incredible sales and marketing team. They do a great job quarter after quarter, Not to answer your question, I just want to give them a shout-out because sometimes just great performance is great performance. Sorry, you had a follow-up. Okay. Yeah. I guess I have a follow-up on that, then I have a second question. The follow-up on that would be the larger packages, was that new or existing owners? Where exactly was that? Then my second question would be just on the acquisitions, maybe talk about where you're going to get synergies, how we think about sales centers, et cetera. Thanks. As it relates to the transaction, you're seeing those consistently on the owner side of the equation. We saw good numbers definitely on the new owner side, but ATP on the owners-- Sorry, average transaction price, ATP, on owners was where we saw the VPG lift as it relates to package size. Your question on cost synergies- Yeah. Ian, we've got in the $50 million that we expect to get in the first year, I think there's really three components to it. It's the underlying performance of the business, the operating expense synergies, which is predominantly G&A related. It's G&A, there's a little bit of tech. The third thing is inside that $50 million, there's some incremental interest expense associated with the consumer finance book that we're going to securitize. Okay. Thank you very much. Thank you. Thank you. The next question is coming from Trey Bowers of Wells Fargo. Please go ahead. Hi, this is Nick on for Trey. Want to dig in on the deal multiple a bit. I know you spoke to 5x post synergies and the securitization, can you talk to the pre-synergies multiple for the acquired assets? Sure. Maybe even zooming out a little bit for you, Nick, when we were looking at the transactions themselves, we looked really through three different lenses. We were looking for deals that were immediately accretive to revenue, accretive to EBITDA, EPS, and free cash flow per share. That's maybe the first thing. The second lens that we looked through was the return associated with the transactions versus the implied return of just continuing to buy back our own stock. The math that we think about there is our current free cash flow yield plus our long-term EBIT growth rate, exceeded that one as well. The third thing was over a longer period of time that we're driving a higher return on invested capital versus our cost of capital. These three transactions cleared all of those hurdles. From a purchase multiple perspective, the two transactions, we purchased them inside our current trading multiple. Then to your point, once we synergize and securitize the associated consumer finance receivable, that pushes that net capital deployed multiple closer to 5x. Got it. Thank you. Thank you. The next question is coming from Brandt Montour of Barclays. Please go ahead. Hi. Good morning. The first question would be on tour flow. It looks like tour flow in the second quarter decelerated just a little bit, and I think that we were looking for, you guys had talked to something in the mid-single digit range for the year. Just sort of ex acquisitions, is that lower than your internal expectations? Did you expect just sort of a bigger second half, or have things evolved in a different way for the P&L as the way you're looking toward the back half? They've evolved a little bit different, not much, Brandt. Ultimately, as we started at the beginning of the year, we knew that our resort optimization initiative was going to impact our tour flow this year. What we're excited about and what we saw in Q2 is that our new owner tours accelerated, and we saw good growth to really begin to support getting back into the 30s on new owner transactions. Then the impact started to come through on owner tour flow in Q2 as a result of our strategic resort closures. That's how we expected the year to play out, and we're seeing that come through. What has been the positive surprise to that is that the VPG has allowed us to outpace the tour decline on the owner side through the resort closures, resulting in us being able to hit our historical VOI growth rate. Yeah, like with all of our KPIs, things bounce up and down within a range. The tours are the same, VPGs are the same. One slightly down, one slightly up, and net effect is VOI sales being above where we originally anticipated at 6%. Okay. Mike, thank you for that. That's helpful. Maybe for Erik, I just want to widen the lens out on the loan loss provision and talk more sort of longer term. If we go back last year, I don't want to put words in your mouth, but the expectation or sort of the upshot for this year was loan loss could get down into the high teens. Now or sort of earlier this year, the 2026 expectation sort of developed a slightly down year-over-year, which would imply still above that 20% mark. We have a deal. The deal is going to sort of push the whole thing up a little bit, which is totally understandable. There was the first quarter wrinkle that now looks like it's completely reversed and improved. I guess outside of the deal, what would make 2026 not sort of back to that prior path toward high teens? What would make you want to kind of give it another year to sort of hope you could get there? Yeah. Thanks for the question, Brandt. First, let's start with, you're right, the second quarter has completely reversed itself off of what we saw in the first quarter from an early stage delinquency perspective. We guided 2026 to be slightly below 2025's loan loss provision level. In prior calls, I think that we have talked about the loan loss provision settling in over the longer term in the upper teens. I think that thesis continues to hold. I think that we've got some early positive indicators associated with what we've seen from the portfolio here in the second quarter. I think that as we get further and deeper into 2026 and start to think harder about what the 2027 number could look like, we'll be back to you on that. Okay, fair enough. Thanks for the color. Thanks, Brandt. Thank you. Our next question is a follow-up coming from Patrick Scholes of Truist. Please go ahead. Hi. Thank you. Regarding the acquisitions, and my question is regarding how they may be incorporated into RCI. It looks like the fixed weeks at Spinnaker are already a part of RCI, but if I'm correct here, floating weeks are part of Interval International. Would you see down the road whenever that, in fact, if that's correct, that international contract rolls off, and I'm reminded here of what happened with the Shell acquisition many years ago, that you would recontract with RCI for the floating weeks, assuming I've got my facts correct here. Thank you. Yeah, that would definitely be the logical outcome. Some can be immediate depending on the owner base, and I'm not referring to Spinnaker. Some will occur over time, but there's a good portion of that 100,000 that are not currently affiliated, which creates an opportunity for us over the next 24 months, maybe 36. I don't know exactly the timing on it. Okay. Sometime in the next two to three years, likely. Yes. Okay. Thank you. I'm all set. Thanks, Patrick. Thank you. At this time, I would like to turn the floor back over to Mr. Brown for any additional or closing comments. Thanks everyone again for joining us today, and especially I'd like to, like Erik, I'd like to welcome the teams of Yes& and Spinnaker to the Travel + Leisure team. 2026 is shaping up to be another great year for Travel + Leisure. Through the first half of the year, we delivered compounding growth across the P&L, 4% revenue growth, 9% EBITDA growth, and 21% earnings per share growth. This momentum alongside our two recently announced acquisition gives us the confidence to raise the midpoint of our full-year EBITDA guidance by more than $30 million. Importantly, we achieved all of this while maintaining our shareholder-friendly capital allocation strategy and balance sheet flexibility. These results are a direct result of our growth strategy and disciplined capital deployment, and we are well-positioned to create meaningful long-term value for shareholders. Erik and I look forward to seeing you at upcoming conferences, and thank you for your continued interest in Travel + Leisure. Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.