Smedes Rose

Management pushed back that it raised full-year volume guidance to $10B on pipeline strength, not decelerating by design.

Roy noted even U.S./Europe investment split, growing U.S. momentum, elevated rates benefiting O versus private competitors, and 94% relationship-driven deals.

Roy declined to provide a specific percentage target, calling the approach opportunistic, but emphasized credit investments must lead to real estate ownership path.

Roy attributed physical occupancy variance to smaller expiring assets with lower rents, noting 2025 guide was similar-to-lower yet actual ended at 98.9%. Pong explained same-store at 1-1.3% captures potential credit losses against 1.5% contractual escalators.

Pong attributed Q4 offset to G&A investments in technology and headcount, noting lease termination income was separate from same-store performance.

Roy detailed credit investments with existing clients at ~9% yield, including one that led to an off-market $100M sale-leaseback, hedging floating rate debt exposure.

Roy disclosed $3.7B of passed deals that met all criteria except initial spread, noting private fund could have captured that volume.

Roy noted Q2 European mix shifted to industrial (almost half), with retail parks primarily in Ireland while UK retail park window is starting to close.

Roy attributed the dip to three or four theater assets dragging below 100%, calling it a one-off with overall renewals still at 99.7%.

Roy highlighted UK and Ireland retail parks acquired below replacement cost with below-market rents, driving European tilt over higher-risk US credits.

Sourav: total expense growth ~4.2% at a 5% revenue increase; wage rate growth 5% this year, expected to step down next year given front-loaded CBAs (prior year 6%). Direct.

Sourav explained the late-booking dynamic and confirmed pacing supports the 60bps assumption; direct.

Risoleo noted 33 transformational renovations completed to date (34 including sold Metro Center). Will continue looking for investment opportunities. Dividend objective remains paying out taxable income sustainably. Policy changes, if warranted, will be communicated to investors.

Ghosh confirmed 2025 wage growth tracking at 6% as expected. Next year should be lower due to front-loaded CBA contracts, but cannot quantify yet pending budget reviews. New York is the only major market with a contract coming up mid-2026.

Ghosh attributed wage growth primarily to CBA negotiation front-loading. Expects next year growth to be lower but declined to give a specific number, noting budgets from managers won't arrive until later.

Risoleo reported Turtle Bay RevPAR up 13% in Q1. Made strategic decision to delay Palmer Course transfer and expedite Fazio Course renovation. Positive on Oahu performance overall.

Risoleo acknowledged the undervaluation but rejected a programmatic buyback, citing the need to balance operations, balance sheet, and blackout period constraints.

Ghosh provided a detailed bridge: $97M net of BI, less $17M non-recurring rooms and $8M one-time cancellations to $72M restated, then +$15-30M improvement less $7M wage headwind.

Mason detailed group pace up 5% for 2026 (U.S. +6%) and characterized 2027 as flattish with rate up and room nights down slightly, noting 40-55% is typically booked by mid-year.

Leeny noted redemptions stable at ~5% of nights. Leisure share at 45% of nights globally, gains since COVID have stuck. Tony highlighted event travel becoming a permanent feature with World Cup, Olympics, and music events.

Leeny highlighted rapid mid-scale growth (200 open, 200+ pipeline, 150 in U.S. pipeline). Conversions attractive for competitive affiliation costs. New build constrained by financing and construction costs but steady drumbeat continues.

Tony emphasized weakness came from attrition and fewer near-term bookings, not wholesale cancellations. 2026 pace up 100bps. Leeny noted F&B spend remains robust at 4% growth, groups not scaling back quality.

Tony confirmed purchase complete. Expects it to be a good cash flow generator in owned/leased line; will evaluate capital needs.

Leeny outlined plan to complete renovations in 2025 then execute a clean sale. More institutional investment dollars flowing into all-inclusive space viewed as positive.

Nassetta gave the SMB versus large corporate growth split directly and confirmed SMB is driving both business transient and group.

Jacobs confirmed government shutdown is factored into Q4 forecast with about a month of impact; full-year range encompasses continued shutdown scenario.

Nassetta said portfolio at 5-6K rooms with similar level of active discussions in pipeline; important for Honors redemptions. Jacobs added they'll pursue both newbuilds and conversions, citing consolidation yielding conversion opportunities.

Nassetta said group will lead all segments; position up mid-single digits but booking pace slowed in last six weeks due to uncertainty. Into next year, position up in the teens.

Jacobs said performance differences are mostly year-over-year comps, not structural underperformance; Hilton gaining share across chain scales.

COO confirmed MGM has option (not obligation) to use VICI capital for NY expansion. No restriction preventing VICI from participating with a third license winner either.

CEO and General Counsel emphasized Aman's ultra-high-end positioning above anything else in the market, noting LVMH couldn't get entitlements for Cheval Blanc on Rodeo Drive.

COO noted progress in Q1 2025 but couldn't provide definitive timeline or answer what happens to the slot facility if license not awarded.