Hawaii Performance and Japanese Travel Recovery
Q: Are you seeing upside in Hawaii despite challenges with Japanese tourism?
A: Yes. Even though revenue from Japanese travelers is only 3.5% compared to 18–20% pre-pandemic " " , our Hawaii properties are achieving near-record performance. We expect total EBITDA from our two Hawaii assets to approach $240–$250 million, possibly achieving a third record year. " The gradual return of Japanese tourists—forecasted at 850,000–900,000 visitors this year—is a future tailwind. "

Miami Renovation Plans
Q: What are your plans for the Miami property renovation?
A: We see a great opportunity to reimagine our iconic Miami asset, similar to our successful renovation of Casa Marina. " We're investing in design and pre-development but significant spending won't occur until after 2024. " We're excited about the potential upside and enhanced returns from this project. " "

Group Business Outlook
Q: Can you discuss expectations for group rates and ancillary revenues?
A: We continue to drive group rates higher, with rates up 11% over 2019 and projected to be up 14% for 2025. " Out-of-room spend is robust; in Q1, banquet and catering revenues increased 11%. " We anticipate sustaining this positive momentum in group business.

Asset Sales Strategy
Q: What is your plan regarding asset sales in the current market?
A: Despite market choppiness, we aim to achieve at least $100 million in asset sales this year. " " We'll use the proceeds to reinvest in our portfolio, reduce debt, or buy back shares. " " " We've successfully sold assets under various conditions before and will remain disciplined. " "

CapEx Spending Outlook
Q: Should we expect elevated CapEx levels in the coming years?
A: Yes, we plan to spend $260–$280 million on CapEx, investing where we see significant upside, such as in Hawaii and Miami. " This is higher than our historical average but reflects catch-up spending and strategic investments. " "

Leisure Demand Trends
Q: Are you concerned about softening leisure demand?
A: We believe concerns are overdone. Our upper-middle-class customer base remains resilient. " We're not seeing significant softening; in fact, we expect RevPAR to increase 5–6% in May and June, with group pace up 9%. " "

Urban Market Recovery
Q: How is the recovery in urban markets like New York progressing?
A: New York RevPAR was up 30% in 2023 and 11% in Q1. " With supply down 9% and tighter regulations on Airbnb, New York is more compelling today. " We see urban recovery broadening across our portfolio. " "

Cost Controls and Margins
Q: Do you foresee any significant cost pressures this year?
A: We don't anticipate major unknowns. Potential upside exists from reinsurance renewals, and we're appealing real estate taxes. " Labor costs are managed through strong union relationships, and we've built expected costs into our budget. " We're confident in our cost controls. " "

Balance Sheet and Funding
Q: How will you fund your CapEx projects given debt levels?
A: We'll fund capital needs through asset sales, redeploying proceeds between the balance sheet and ROI projects. " Our net debt to EBITDA is 5.2x, and we're focused on maintaining a strong balance sheet. "

Occupancy and Rate Growth Potential
Q: Is there room to increase urban occupancy and rates further?
A: Yes. Overall occupancy is still about 500 basis points below 2019, indicating upside potential. " " We see opportunities to drive both occupancy and rate, especially in markets like New York. " "