Ben Chaikin

Ben Chaikin inquired about the occupancy and unsold inventory levels of the 17 assets involved in the strategic review, the factors influencing the $15 million-$25 million EBITDA benefit range, and the early sales performance of Sports Illustrated Resorts and Eddie Bauer Adventure Club, including any potential upgrade programs for existing customers.

Answer

President and CEO Michael Brown stated that the 17 resorts had significant unsold inventory and occupancies well below 50%, primarily older, highly seasonal assets in the Northeast. CFO Erik Hoag explained that the range for the EBITDA benefit is due to variables like pending HOA approvals. Michael Brown provided positive early feedback on Sports Illustrated Resorts' event-based marketing and noted a 'tremendous reception' for Eddie Bauer Collection's physical sales centers, particularly from the WorldMark owner base.

Ben Chaikin asked how DraftKings plans to build liquidity in the Railbird Exchange and whether the DraftKings OSB platform is considered a competitive differentiator in this context.

Answer

Jason Robins (Co-Founder and CEO, DraftKings) confirmed that the existing OSB platform is a significant competitive differentiator, leveraging its pricing models, data science, marketing, and infrastructure. He expects numerous market makers to engage with Railbird, and DraftKings' own market-making division, supported by its established pricing models and trading desk, will be a key differentiator in creating liquidity, especially for new and combination markets.

Ben Chaikin inquired about the total construction disruption expected in 2026 across new projects at Sunset Station, Green Valley Ranch, and Durango, and any relevant cadence for these impacts.

Answer

Stephen Cootey, EVP, CFO, and Treasurer, stated that Q4 2025 disruption was approximately $5.1 million, primarily at Green Valley Ranch, with minimal impact at Sunset. For Q1 2026, Green Valley Ranch is projected to experience about $9 million in disruption due to peak construction on the East Tower and convention spaces. Lorenzo Fertitta, Vice Chairman, added that Green Valley Ranch rooms are expected to be back online by summer. Stephen Cootey noted that disruption impacts at Durango and Sunset are harder to quantify but are being actively managed.