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    Kenneth Billingsley • Compass Point Research & Trading LLC

    Kenneth Billingsley's questions to RLJ Lodging Trust (RLJ) leadership

    Kenneth Billingsley's questions to RLJ Lodging Trust (RLJ) leadership • Q2 2025

    Question

    Kenneth Billingsley of Compass Point Research & Trading LLC asked for more detail on the drivers of food and beverage (F&B) revenue growth, questioning whether it was due to customer spending or pricing, and if urban hotel F&B performance differed from other locations.

    Answer

    COO Tom Bardenett attributed the F&B growth to a combination of factors, including optimizing hours, redesigning menus, and adding new concepts to drive volume. CEO Leslie Hale added that a key strategy is attracting non-hotel guests to these reimagined spaces. Bardenett confirmed that urban hotels are performing very well in F&B, as they are situated near major events and attractions, which drives spending from both guests and locals.

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    Kenneth Billingsley's questions to Diamondrock Hospitality Co (DRH) leadership

    Kenneth Billingsley's questions to Diamondrock Hospitality Co (DRH) leadership • Q2 2025

    Question

    Kenneth Billingsley of Compass Point Research & Trading LLC inquired about DiamondRock's strategy for capturing group business, comparing its branded versus unbranded assets. He also asked for clarification on the regulatory issues that impacted disposition plans.

    Answer

    President & COO Justin Leonard explained their large hotels are brand-encumbered and leverage brand lead channels for convention business, while smaller, independent luxury properties target differentiated, high-dollar corporate off-sites. CEO Jeff Donnelly clarified that disposition plans were impacted by credit market volatility, property tax changes in Chicago, and uncertainty around potential taxes on foreign investment, which collectively created a challenging negotiating environment.

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    Kenneth Billingsley's questions to Diamondrock Hospitality Co (DRH) leadership • Q2 2025

    Question

    Kenneth Billingsley of Compass Point asked how DiamondRock competes for group business across its branded and unbranded hotels and sought clarification on the regulatory issues that impacted disposition plans.

    Answer

    President & COO Justin Leonard explained that large, branded hotels like the Chicago Marriott rely on brand lead channels for convention business, while smaller, independent luxury properties target high-rated, differentiated experiences for smaller corporate groups. CEO Jeffrey Donnelly clarified that disposition plans were impacted by credit market volatility, property tax changes, and uncertainty around potential tax changes for foreign investors.

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    Kenneth Billingsley's questions to Apple Hospitality REIT Inc (APLE) leadership

    Kenneth Billingsley's questions to Apple Hospitality REIT Inc (APLE) leadership • Q2 2025

    Question

    Kenneth Billingsley from Compass Point Research & Trading LLC inquired about the ability to accelerate group business bookings and why the rates were considered attractive. He also sought clarification on the specific market share opportunity anticipated for November.

    Answer

    CFO Liz Perkins explained that the company's group business is typically shorter-term (e.g., sports teams, family reunions), allowing for quick booking adjustments. The rates are 'attractive' because group ADR has grown year-over-year, contributing positively to RevPAR. Regarding November, she clarified the 'market share opportunity' refers to lapping the 2024 election week, a period when the company's business-transient-focused portfolio historically underperforms the broader industry, creating a favorable comparison.

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    Kenneth Billingsley's questions to Apple Hospitality REIT Inc (APLE) leadership • Q3 2024

    Question

    Kenneth Billingsley from Compass Point, on behalf of Floris Van Dijkum, questioned the high implied Q4 CapEx spend, the expected CapEx budget for 2025, and the drivers behind the 20% reduction in property insurance costs.

    Answer

    CFO Liz Perkins explained that the Q4 CapEx spend is seasonally high as most renovations begin then, and they anticipate meeting their full-year guidance. She noted that the 2025 CapEx budget is still being formulated but is expected to follow a typical run rate. Regarding insurance, Perkins attributed the 20% cost reduction to a favorable program restructuring in April, combined with a good loss experience and an easier year-over-year comparison on uninsured loss expense.

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    Kenneth Billingsley's questions to Park Hotels & Resorts Inc (PK) leadership

    Kenneth Billingsley's questions to Park Hotels & Resorts Inc (PK) leadership • Q2 2025

    Question

    Kenneth Billingsley asked about out-of-room visitor spending trends, noting that total RevPAR growth appeared stronger than room RevPAR, and specifically questioned the softer out-of-room spend trends in urban markets.

    Answer

    CFO Sean Dell'Orto confirmed strength in out-of-room spend, highlighting a 5% increase in catering contribution, a 1.5% rise in outlet revenue driven by resorts like Casa Marina, and a 9% increase in parking revenue. He noted that ancillary fees were also up 6% in June. Regarding the specific softness in urban market out-of-room spend, Dell'Orto stated he did not have the data immediately available and would have to follow up.

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    Kenneth Billingsley's questions to Kite Realty Group Trust (KRG) leadership

    Kenneth Billingsley's questions to Kite Realty Group Trust (KRG) leadership • Q2 2025

    Question

    Kenneth Billingsley of Compass Point Research & Trading, LLC sought clarification on the new anchor cash lease spread, asking about the spreads on the portion of anchor signings not included in the 36% figure. He also asked about the high expiring ABR for the remainder of the year.

    Answer

    CFO Heath Fear clarified that the lease spreads on the other anchor deals were close to 25%. He explained that the higher expiring ABR for the rest of the year is due to the mix of leases being more heavily weighted toward small shops, rather than anything unique about the remaining anchor tenants.

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    Kenneth Billingsley's questions to Pebblebrook Hotel Trust (PEB) leadership

    Kenneth Billingsley's questions to Pebblebrook Hotel Trust (PEB) leadership • Q2 2025

    Question

    Kenneth Billingsley of Compass Point followed up on Paradise Point, asking if recent work was part of the Margaritaville plan, and also inquired about the key negative indicators being tracked that could threaten the positive 2026 outlook.

    Answer

    Chairman & CEO Jon Bortz confirmed the completed renovations are consistent with the Margaritaville plan but are also suitable for the property as-is. For the 2026 outlook, he identified three key negative indicators they monitor: an increase in group cancellations, a slowdown in booking pace, and a reduction in ancillary spend by groups. He noted that, currently, they have not seen an increase in cancellations.

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    Kenneth Billingsley's questions to Urban Edge Properties (UE) leadership

    Kenneth Billingsley's questions to Urban Edge Properties (UE) leadership • Q2 2025

    Question

    Kenneth Billingsley from Compass Point asked for clarification on the G&A guidance, seeking to reconcile the lowered full-year forecast with the G&A expense line item being up year-over-year in the second quarter.

    Answer

    EVP & CFO Mark Langer clarified that the year-over-year increase in reported G&A for Q2 was driven by non-recurring items, specifically $2 million in severance expense and $1 million in transaction costs. He explained that the company's lowered full-year guidance is based on the recurring G&A run rate, which excludes these one-time charges.

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    Kenneth Billingsley's questions to Curbline Properties Corp. (CURB) leadership

    Kenneth Billingsley's questions to Curbline Properties Corp. (CURB) leadership • Q2 2025

    Question

    Kenneth Billingsley from Compass Point noted the difference in lease terms between new leases (longer) and renewals (shorter) and asked if this was a result of actively swapping out local tenants for national ones in acquired properties.

    Answer

    CFO Conor Fennerty clarified that the difference in lease terms is standard, with new national tenant leases typically being 10 years and renewals often being 5-year options. He emphasized that while they prioritize credit and would choose a national over a local tenant, the core strategy is not to upgrade the tenant roster. He stated that by acquiring high-quality real estate, the national tenants are generally already in place, and the focus remains on driving rent growth with that existing base.

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