Question · Q4 2025
Dan Politzer asked about the specific areas of conservatism embedded in the flat to +2% RevPAR guidance, particularly concerning properties or markets the company is excited about. He also inquired about the capital allocation strategy, including project investments, share repurchases, and the dividend, in the context of the 5x leverage target.
Answer
Sean Dell'Orto, COO and CFO, identified Q4's group pace, down 8% overall (with Hilton Hawaiian Village down 50% and Midtown down 6% for the year), as a key area of conservatism. Tom Baltimore, Chairman and CEO, elaborated on the cautious approach, balancing encouraging tailwinds (Fed, major events, fiscal stimulus) with existing headwinds (geopolitical, inflation, international travel, cautious consumer). Regarding capital allocation, Sean Dell'Orto stated that proceeds from non-core asset sales are primarily focused on deleveraging to achieve the 5x target. He added that project investments and organic growth from Hawaii's recovery are expected to contribute to this goal.
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