Hello, and welcome to today's Xenia Hotels & Resorts, Incorporated Second Quarter 2022 Earnings Conference Call. My name is Bailey, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to our host, Amanda Bryant, Vice President of Finance. Please go ahead.

Thank you, Bailey. Good afternoon, and welcome to Xenia Hotels & Resorts second quarter 2022 earnings call and webcast. I'm here with Marcel Verbaas, our Chairman and Chief Executive Officer; Barry Bloom, our President and Chief Operating Officer; and Atish Shah, our Executive Vice President and Chief Financial Officer. Marcel will begin with a discussion on our quarterly performance and long-term growth opportunities. Barry will follow with more details about our recent operating trends and status of our capital expenditure projects. And Atish will conclude our remarks with an update on our balance sheet and full year guidance. We will then open the call for Q&A. Before we get started, let me remind everyone that certain statements made on this call are not historical facts and are considered forward-looking statements. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10-K and other SEC filings, which could cause our actual results to differ materially from those expressed in or implied by our comments. Forward-looking statements in the earnings release that we issued this morning, along with the comments on this call, are made only as of today, August 3, 2022 and we undertake no obligation to publicly update any of those forward-looking statements as actual events unfold. You can find a reconciliation of non-GAAP financial measures to net loss and definitions of certain items referred to in our remarks in this morning's earnings release. The property-level portfolio information we'll be speaking about today is on a same-property basis for 32 hotels. This excludes Hyatt Regency Portland and Oregon Convention Center and W Nashville. An archive of this call will be available on our website for 90 days. I will now turn it over to Marcel to get started.

Thanks, Amanda, and good afternoon to all of you joining our call today. Momentum in our business picked up meaningfully since our last earnings call in early May. As we reported this morning, RevPAR grew 2% in the second quarter as compared to 2019, marking the first quarter since the onset of the pandemic where quarterly RevPAR exceeded the same period in 2019. With a strong leisure base, higher levels of corporate transient and group demands allowed our properties to grow revenues and profits above our expectations. In the second quarter, net income was $27.6 million. Adjusted EBITDAre was $88.6 million and adjusted FFO per share was $0.57. As demand continues to recover in what has historically been the seasonally strongest quarter for our portfolio, all of our properties generated positive hotel EBITDA. RevPAR for the quarter was $186.75, with a 2% growth over the same period in 2019 reflecting a substantial sequential improvement from the first quarter when RevPAR was 19.5% below 2019. The RevPAR growth was primarily driven by strong results in the months of April and June and was fueled by substantial ADR growth throughout the quarter. Average daily rate increased 16.6%, offset partially by about 10 points lower occupancy as compared to the second quarter of 2019. RevPAR growth exceeded 30% in four of our top 10 markets, including Key West, Phoenix, San Diego, and Napa. We continue to be pleased with our operators' ability to control costs in this inflationary environment. Second quarter hotel EBITDA margin improved 365 basis points as compared to 2019, benefiting from the combination of robust rate growth and favorable expense controls. As a result, same-property hotel EBITDA for the quarter exceeded the 2019 level by 15%, while our adjusted EBITDAre came within 1% of the amount we generated in the second quarter of 2019. Like many of our peers, our portfolio of premium hotels in top 25 markets and key leisure destinations has benefited from a rapid recovery in leisure demand in recent quarters. However, we believe we are in the early innings of a multiyear recovery in overall lodging demand, and our portfolio remains well positioned to experience the tailwinds of improving corporate transient and group demand. Near-term trends remain favorable and while visibility remains limited, we are not seeing signs of a meaningful slowdown in demand. We are off to a solid start to the third quarter, which historically has been the seasonally weakest quarter for our current same-property portfolio. Preliminary RevPAR for the month of July was approximately $157, driven by occupancy of approximately 64% and average daily rate of approximately $247. July estimated RevPAR was approximately 4% below the results achieved in July of 2019 and approximately 16% higher than July of 2021. Rate growth continues to be impressive as our estimated ADR exceeded July 2019 by approximately 18%. Midweek demand improved steadily after the 4th of July holiday caused business travel to be muted in the early part of the month. We continue to be well positioned to benefit from a diverse set of demand drivers even as the summer travel season winds down over the next month. We have been pleased that our properties have been able to pivot to capture substantial leisure demand in their respective markets. However, pre-pandemic revenues at the majority of our hotels were primarily generated by corporate transient and group demand, particularly after Labor Day. We expect that improving demand from group and corporate transient, on top of continuing strong leisure demand, will enable our operators to drive occupancy gains in the months and quarters ahead. So where are the greatest opportunities for growth in the portfolio? Let me highlight two key areas. First, we have meaningful growth left in our same-property portfolio. Same-property hotel EBITDA in the first half of 2022 was down 7% as compared to the first half of 2019. Seven of our top 10 markets as measured by contribution to 2019 EBITDA have yet to fully recover back to 2019 levels, which is reflective of the greater dependence on corporate transient and group demand in the hotels we own in those markets. Six of our larger corporate and group-focused hotels, namely Marriott San Francisco Airport, Hyatt Regency Santa Clara, our two Dallas hotels, and our two Westins in the Houston Galleria markets, were collectively more than $20 million behind in terms of hotel EBITDA in the first half of 2022 as compared to the first half of 2019. These six hotels generated approximately 30% of our same-property hotel EBITDA in 2019, significantly above the approximately 18% of hotel EBITDA they generated during the first half of this year. While 2019 did not reflect peak earnings for every market, it is a good starting point to assess opportunities for recovery and growth in the back half of this year and into 2023. Importantly, our hotels in most of the markets that have lagged thus far are currently experiencing good pickup in both group and corporate transient demand. We believe that this momentum will help us continue to close the EBITDA gap to 2019. The second significant driver of growth for our portfolio is represented by our two most recent acquisitions. As previously discussed, we expect W Nashville and Hyatt Regency Portland to generate between $40 million and $45 million in hotel EBITDA annually upon stabilization. Both properties are building their books of group business, in addition to corporate transient and leisure demand. Hyatt Regency Portland is already starting to benefit from citywides and events that are adjacent to the Oregon Convention Center and the Moda Center. The hotel's group base has steadily improved throughout the year, with almost 60,000 group room nights actualized and on the books for 2022 as of the end of the second quarter. Profitability and RevPAR improved significantly in the quarter, with the hotel achieving occupancy of approximately 68% in June, the highest level since opening. Although the pandemic has caused stabilization to be delayed compared to underwriting when we acquired the hotel in late 2019, we remain confident in our belief that the hotel will reach the stabilized EBITDA we expected upon acquisition. Meanwhile, W Nashville continues to perform well and in line with our expectations. RevPAR exceeded $250 every month during the second quarter, and significant upside remains as the outstanding food and beverage facilities are optimized from an operating perspective and corporate transient and group demand builds. The hotel has a unique offering for groups with 18,000 square feet of meeting space in what is a very rapidly growing market. We believe this is an important element to achieve the optimal demand segmentation mix to drive maximum profitability. We continue to expect that the hotel will deliver between $13 million and $15 million of EBITDA during our ownership period this year. While potential recession may slow the rate of recovery in the lodging industry in the short term, we remain very optimistic about our growth prospects in the years ahead. We believe our strategic focus will add a multitude of demand generators to drive portfolio performance, as well as a balanced mix between group, corporate transient, and leisure demand will continue to serve us well in the next phase of the industry recovery. With that, I will turn the call over to Barry, who will provide additional details on our second quarter performance and an update on significant CapEx projects we have scheduled for this year and early 2023.

Thank you, Marcel, and good afternoon, everyone. For the second quarter, our same-property portfolio occupancy was 69.8% at an average daily rate of $267.72, resulting in RevPAR of $186.75. On an absolute basis, this marks our highest RevPAR quarter since the start of the pandemic. Building on a very strong start in April, RevPAR of the quarter ended up 2% as compared to the second quarter of 2019. As Marcel mentioned in his remarks, the portfolio drove an average daily rate increase of 16.6% in the quarter as compared to the same period in 2019. On a monthly basis, results during the quarter exceeded our expectations. April continued the strong occupancy trend, with an occupancy of 72% at an average daily rate of $280.62, both post-COVID records, reflecting occupancy down 9.8 points to 2019, while rate increased by 18.3%, reflecting continued strength in leisure business and strengthening group business, particularly our large resort hotels. May is a seasonally slower month for our portfolio than April and achieved occupancy of 69% and an ADR of $264.98, an occupancy decline of 9.1 points compared to 2019, with rate up 12.8%. June occupancy of 68.3% reflects historically lower levels of group and leisure business, which was offset by continued strength in individual corporate business and a decline of 11.1 occupancy points to 2019. However, ADR was $256.97, up 18.8%, the largest monthly rate increase over 2019 achieved to date. Out of 32 same-property hotels, all but four achieved higher average daily rates in the second quarter of 2022 than they did in the second quarter of 2019. We've been pleased to see resilience in leisure pricing and continue to be optimistic regarding corporate rates, particularly as we achieve higher midweek occupancies and sellouts in a number of our markets on Tuesday and Wednesday nights. We continue to be proud of the work we and our hotels have done to identify opportunities to maximize rate and ensure we are providing the right mix of amenities and services to satisfy our guests. As noted, demand in the quarter was broad-based. The portfolio benefited from very strong leisure demand, along with the build-up of group business and corporate transient. In the quarter, our group business benefited from solid in the quarter for the quarter bookings and strong rate growth, resulting in higher groups revenue, group, higher group rooms revenue as compared to the second quarter of 2019, which were high-quality, reflecting healthy corporate group demand, particularly in our larger resorts. And we saw a notable improvement in citywide conventions, which benefited our hotels in San Francisco, Dallas, Denver, Portland, and New Orleans. Corporate transient demand continued to recover, with Monday, Tuesday, and Wednesday occupancies building through the second quarter, although still down in the low to mid-teens occupancy point range compared to 2019. The Monday, Tuesday, and Wednesday night occupancies we achieved in the quarter represent an improvement of more than 10 points from the level we saw in the first quarter and are clearly indicative of an acceleration in business travel that has continued into July. We remain optimistic on the recovery in corporate transient, which will be of increasing importance as we look beyond Labor Day and into next year. Early indications from our operators suggest that negotiated corporate rates could increase in the high single or low double digits next year. Now switching to profit, second quarter hotel EBITDA was $86.5 million, an increase of 15% on a total revenue increase of 2.4% compared to the second quarter of 2019, resulting in 365 basis points of margin improvement. Hotel EBITDA margin grew significantly during the quarter as the flow through on rate and our operators continuing success in effectively managing expenses. For the quarter, departmental expenses declined by 3.7% compared to 2019, while undistributed expenses declined by 1.7%. Though labor remains challenging in select markets, our operators report that they continue to fill open positions and there seems to be increasing availability of labor. In markets that have nearly fully recovered, our operators report that open positions are in line with pre-pandemic levels. Wage increases seem to have stabilized in the mid-single-digit range as compared to last year, which is in line with our initial expectations. Turning to CapEx, during the quarter, we invested $14.3 million in portfolio improvements, bringing our year-to-date spend to $21.8 million. At Park Hyatt Aviara Resort, Golf Club & Spa, the renovation of the golf course began in the second quarter and is expected to be complete early in the fourth quarter. We are also planning for a significant upgrade to the resort's spa and wellness amenities, which will be branded as a Miraval Life in Balance Spa upon its completion in the first quarter of 2023. We expect this world-class facility will perfectly complement the five-star five-diamond hotel experience and attract a new demand segment to the resort. During the quarter, we substantially completed the restaurant, lobby, meeting space, and rooftop renovations at Kimpton Canary Hotel Santa Barbara and continued planning of the guest room renovation, which is expected to occur in the fourth quarter this year and first quarter of 2023. We also began work on the comprehensive renovation of Grand Bohemian Hotel Orlando, which will continue into the second quarter of 2023. As a reminder, this will include renovation of the guest rooms, including substantial tub-to-shower conversions, meeting space, lobby, restaurant, and bar, and the rooftop pool, which will include the addition of a stand-alone bar and entertainment zone. We also commenced the renovation of bathrooms at Marriott Woodlands Waterway Hotel & Convention Center, including the conversion of bathtubs to walk-in showers in approximately 75% of the guest rooms. Additional projects that are planned to commence this year include renovation of the meeting space and lobby, including the addition of a Starbucks outlet at Fairmont Pittsburgh, renovation of meeting space at Royal Palms Resort & Spa, and our renovation and reconfiguration of suites at The Ritz-Carlton Denver, which will result in the addition of three keys to the hotel. We have also started planning work on a comprehensive renovation of Kimpton Hotel Monaco Salt Lake City, expected to commence in the first quarter of 2023. With that, I will turn the call over to Atish.

Thanks, Barry. I will cover two topics this afternoon. First, I'll discuss our balance sheet, and second, I'll discuss our full year guidance. As to our balance sheet, we have the flexibility needed to grow the company and create long-term shareholder value. We exited from covenant waivers on our corporate credit facilities after the end of the second quarter. As such, the restrictions on both paying dividends and repurchasing shares have now lapsed. By way of reminder, we paid an annualized dividend of $1.10 per share prior to COVID, which reflected a payout ratio of approximately 65% of funds available for distribution. While we have net operating losses which should offset to some degree the requirement to pay dividends in the near term, we continue to monitor the trajectory of the recovery as that may enable reinstatement of a modest dividend over the next couple of quarters. As to share repurchase, this is a tool we utilized in the past to drive shareholder returns. By way of reminder, since our listing in 2015, we repurchased $80 million of stock at an average price of about $15 per share. We currently have about $95 million remaining on our share repurchase authorization. As to the overall leverage level on a trailing 12-month basis, our net debt to adjusted EBITDA was approximately five and a half times as of June 30. Turning to our liquidity. At the end of the second quarter, it was approximately $675 million as compared to approximately $625 million at the end of the first quarter. Our liquidity reflects approximately $225 million of unrestricted cash and approximately $450 million undrawn on our line of credit. We continue to have a well-diversified balance sheet, with no debt maturities until 2024. Turning to my second topic, our guidance. We have provided full year guidance, consistent with prior practice. Our guidance reflects current business conditions and does not anticipate any meaningful changes in the economic environment or any additional COVID-related impacts. Looking forward, we continue to believe our hotels are well positioned to capture business transient and group demand as they more fully recover. At the midpoint of guidance, we expect RevPAR to be down approximately 5% from 2019 levels and adjusted EBITDAre of $266 million or about 10% lower than 2019. The greater variance in adjusted EBITDAre reflects changes in portfolio composition and the recovery potential of certain of our properties. At the midpoint, our guidance implies a slight decline in second half RevPAR compared to 2019, which reflects the transition from a leisure-driven recovery to one that is more broad-based and likely to be slightly more gradual. We expect both continued ADR and margin growth versus 2019. Our guidance reflects improving corporate transient demand as the year continues and group demand continuing to build. Turning to group more specifically, group room revenue pace is strengthening, with 2022 pace 18% below 2019 levels at the end of June. This compares to 2022 group revenue pace of down 23% at the end of the first quarter. The second half of 2022 continues to look better as well. For the second half, group rooms revenue pace is about 18% lower than 2019. Second half group pace was down 21% at the end of the first quarter, reflecting an approximately 300-basis-point improvement in pace versus a quarter ago. The rate story on the group side is quite positive. Rates for the second half are up 10% versus the second half of 2019. The other items that we provided guidance on in this morning's release have not changed much since last quarter. Interest expense is unchanged from prior guidance and reflects interest rate hedges expiring this fall and roughly 15% of our total debt. Cash G&A expense guidance is up $1 million, and capital expenditure guidance is down $5 million as our estimates of each have been fine-tuned. To wrap up, the company continues to be well positioned for an extended lodging recovery. No matter the exact trajectory, we've prepared the company well with high-quality, well-located primarily branded hotels and a healthy liquidity and balance sheet to be able to grow in the years ahead. That concludes our prepared remarks today. And with that, we will turn the call back over to Bailey for our Q&A session.

Thank you. The first question today comes from the line of Dori Kesten from Wells Fargo. Please go ahead. Your line is now open.

Thanks. Good morning. I know you said you haven't seen a slowing in demand yet, but where would you expect to eventually see that slowing? Is it more on the leisure side or business transient?

Well, it certainly wouldn't be on business transient and group, where we continue to see stronger results. I think if there was anything that you might see, but again, we've not seen it, is in the leisure demand. In fact, our drive-to markets continue to be as strong, if not stronger, than they were in the summer of 2021, so we view that as very positive thus far.

Okay. And how has the quantity of hotels that you're underwriting changed since last quarter? And how has your forecasting changed, if at all, if you look out several years?

It hasn't changed significantly in either category. The current environment does not favor aggressive acquisitions when considering potential uses of capital. As Atish mentioned, we are no longer restricted in terms of share repurchases. We also have some debt to address, which we could pay off, particularly with some hedges expiring, as Atish noted. There are various ways we can use our available capital, including potential acquisitions if we find appealing opportunities. The volume of opportunities hasn't changed dramatically in the last quarter. We continue exploring multiple potential opportunities but haven’t identified anything that meets all our criteria in recent months. Regarding long-term projections, we remain optimistic about growth prospects for our portfolio and the lodging industry overall. We anticipate that supply increases will be relatively modest. Group business and corporate transient demand are expected to continue growing, though this may be gradual in the short term. Even if we encounter challenges or a recession occurs, we remain confident about long-term growth.

Okay, thank you.

Thank you. The next question today comes from the line of David Katz from Jefferies. Please go ahead. Your line is now open.

Hi. Good afternoon, everyone. Thanks for taking my questions, for all of the remarks and perspective today. I really wanted to just go a little further and get a sense for what the discussions are like with respect to assets that may be for sale. How are the underwriting processes changed, given that we're all trying to contemplate whether there is something out there recession-wise or not and what the intensity of it is? How do those discussions get around that uncertainty?

Well, clearly, we haven't gotten around to it on the acquisition side since we haven't bought anything, but we continue to.

Still working around it.

What you're observing in the short term, David, is that the debt markets have changed significantly over the past four or five months. This influences discussions regarding potential buyers for assets. Higher-level buyers are likely not as aggressive in the current environment. This is the immediate impact when considering acquisitions, where there may be less competition, but caution is necessary in the short term when evaluating potential assets. Regarding dispositions, we have consistently emphasized our goal to enhance the quality of our portfolio over time through both acquisitions and dispositions. This could involve selling some lower-end assets, as we have before, particularly those that require significant capital expenditures or have reached an optimized state in asset management. We are continuing discussions about possibly pursuing more dispositions, although nothing major at this time, just a few smaller assets we are considering. When contemplating these sales, we must evaluate potential buyers carefully, ensuring we have confidence in their equity sources and their capacity to finalize transactions.

All right. Understood. And just as a follow-up, assuming that you could get around the current circumstances, are there particular markets where you would prefer to lighten up rather than acquire? And just given your sort of market updates, would be really helpful.

Not necessarily. We are not focused on markets where we feel the need to reduce our presence. Over the past few years, we have made significant efforts to refine our portfolio. Therefore, I wouldn't say we aim to exit any specific market. There may be opportunities to sell certain assets in the current environment that are still appealing, due to short-term strong leisure demand in some markets that attract interest, even if they are not critical long-term assets for us. However, there are no specific plans concerning reshaping the portfolio in terms of markets, whether for acquisitions or dispositions.

Understood, thanks very much.

Thank you. The next question today comes from the line of Bill Crow from Raymond James. Please go ahead. Your line is now open.

Thank you very much. Good afternoon, everyone. I have two questions for you. First, could you provide some insights into how the first quarter of 2023 might unfold? I'm not seeking guidance, but the unique situation with Omicron this year combined with strong leisure demand is quite interesting. I'm curious about your thoughts on how that quarter could impact the industry fundamentally.

We thought you would be excited that we provided guidance for the remainder of this year, Bill. So we...

We always ask for more of that stuff.

As you have noted, visibility is obviously still relatively limited, and there's a lot of macro forces going on that could obviously shape things differently as we get into next year. But I think you pointed out some of the things that will be impacting this year versus last year. Omicron really hit hard in January of last year. And most properties weren't really prepared for that from an operational standpoint. So as you recall, in the first quarter, it was much harder to drive the type of margin improvements that we were able to drive here in the second quarter just because demand slipped so much in the early part of the first quarter versus what the expectations were. So overall, that obviously sets things up better for the first quarter of '23 than it did for the first quarter of 2022. And as we pointed out, we are expecting this continued kind of gradual recovery of the corporate transient and group side that hopefully will offset some of the historic strength that you've seen in leisure here over the last few quarters.

All right. And then my other question is really on seasonality in Nashville. And I asked that because I assume summer is the big season from a tourist perspective. But with all the new supply opening up, I'm just wondering, if we were to look at how the seasonality and demand plays out, if you could just kind of give us a roadmap of what to expect.

Yeah, so we're still learning, obviously, what the seasonality looks like. And I think we were actually, quite frankly, very surprised in Q2 by this hotel's ability to attract short-term corporate group to the hotel in a way that we had not expected when we closed on the hotel at the end of March. I think summer has been an interesting period for us because that group business doesn't really want to be there in the summer. So we've certainly seen and worked to pick up even more leisure business and really do a good job of marketing and advertising the food and beverage amenities, which are largely outdoor-focused. I think we're optimistic about Q3 in the same way as it relates to corporate demand, which we think this hotel is set up very nicely for as well as group demand, which we expect to be significantly different in Q3 than it has been in early Q3 so far. So I think we're still learning the market. And I think what we're really learning is how this asset can best penetrate the market, both in line with our original business plan, but also additional opportunities that we think set the hotel up well for success.

Okay, all right. I appreciate it. Thank you.

Thank you. The next question today comes from the line of Ari Klein from BMO Capital Markets. Please go ahead. Your line is now open.

Thanks and good afternoon. I appreciate that there are some moving parts between leisure and business and group and how that recovers. But how are you thinking about occupancy moving forward and getting back to 2019 levels? It seems like in the back half of the year, expecting more normal seasonality, but at the same time, you do have business and group travel picking up.

Yes, I mean, Ari, it's a good question. I mean, the way we thought about and what we provided, that is embedded in our guidance, is in the second half, we expect occupancy to still be kind of off to 2019 by high single digits to 10%, sort of 10 points. So that gives you kind of a short-term perspective on what's embedded in our guidance. I think over a longer period of time, we obviously expect the recovery to be full and complete, both in terms of corporate transient and group. And so while it might take a little bit longer, we definitely feel confident that the business is coming back based on what we've seen thus far.

Got it. And then maybe just on the Florida Keys, RevPAR growth was, I think, 3% in the second quarter versus last year. Is that just tough comps? And is that a market that you would anticipate seeing a decline in the second half of the year?

Yes, it's a market that has performed exceptionally well for us and others over time. We have a strong preference for the Hyatt Centric hotel there, which continues to show good performance. Throughout every month of the second quarter and into the third quarter, we have been very impressed with our ability to maintain rates and the resilience of that market, as many people want to be there and enjoy the property. We are conducting some infrastructure work at the hotel in August and September, which will slightly affect our performance and growth compared to previous years. However, looking at the long term and strategically, we are very optimistic about the market. It is a location that people have always enjoyed visiting, and it benefits from a limited supply. When people decide to go there, they are willing to pay high rates for their stay, which has been the case for many years.

As we enter this year, one question is whether any part of the year could see a market decline, especially considering the significant growth we've experienced in recent years. We are encouraged by the continued healthy occupancies and average daily rates in the markets, and we haven't observed any setbacks. We remain very optimistic about the long-term outlook.

Got it.

Thank you. The next question today comes from the line of Michael Bellisario from Baird. Please go ahead. Your line is now open.

Good afternoon, everyone. Barry, I wanted to ask on your markets that were not up versus 2019: Dallas, Houston and then Denver, too. Looks like it's all occupancy-driven, but what's the mix of business there today versus where you want it to be? And then any signs you're seeing on the ground that those markets may or may not close the gap versus some of your better-performing markets, at least over the near term?

The mix in those markets is not significantly different from what it has been historically in terms of actual business components. This is resulting in lower occupancy in each case. In the second quarter, while Marcel and I mentioned some markets that outperformed citywide, those markets are all experiencing relative underperformance compared to previous years, which has affected each of those hotels. Denver has shown a strong recovery in July, particularly. Dallas and Houston are markets where our hotels depend heavily on in-house group business, and we are currently in a seasonally slower summer period. However, I believe we have much higher expectations as we move past Labor Day and transition into more definitive corporate travel along with the return of group demand to those properties.

Got it. And just on the group topic, I know you gave volume and ADR for the rest of the year, but what about contractual food and beverage and other out-of-room spend that groups are booking today, are those effective prices up more or less than the ADR figures you quoted earlier?

They're up around the same range. Our operators have reviewed every one of our hotels, focusing not just on restaurants but particularly on banquet pricing. We've observed strong commitments from groups regarding food and beverage. While they may not commit to these upfront when signing a contract, once they arrive at the property, they typically spend significantly more than what they initially committed to. The contribution is at or above where it was in 2019.

Got it. And then just last one from me. Just on the $8.1 million, maybe for Atish, the $8.1 million of non-comp EBITDA, could you provide the split between Nashville and Portland on those?

Yes, it was five and three, Nashville and Portland.

Thank you. The next question today comes from Tyler Batory from Oppenheimer. Please go ahead. Your line is now open.

Good afternoon. This is Jonathan on for Tyler. Thank you for taking our question. First one for me is on CapEx. With the Grand Bohemian renovation underway and the planning stages of the Kimpton in Salt Lake, is there any large-scale renovations that might be on the table or do you think the portfolio is in a good place once those are completed? And I guess, and maybe if you could just remind us the quality of the portfolio, given the CapEx you've spent over the past few years.

We have a long track record of continually improving the assets. So while we're not prepared to talk about them today, we've got a number of projects, quite frankly, that we're looking at and planning for further into '23 and '24, some of which we may be able to talk about on our call in November. But we've continually reinvested in the portfolio. And we do think the portfolio is in really good shape, in part because we do really high-quality renovations. We've talked before about us using our own in-house project management team to manage our projects, which we think lets us deliver those projects at a good cost, with a lot of really good control over the decision-making and what we're doing in those properties. But CapEx is, I think, is clearly an ongoing process for us. And we continue to reinvest in the assets, including assets where we have done comprehensive renovations.

I want to emphasize that we've been consistently evaluating potential high return on investment opportunities within our portfolio. For instance, with the Grand Bohemian Orlando, we explored whether to proceed with a more limited room renovation. However, we are confident in the long-term prospects of that property and believe that the renovations we're currently implementing will significantly enhance its value and yield strong returns for us. We are also exploring further opportunities. To address your other question, we are proud of our high-quality portfolio. If you examine our assets, you won't find many that require extensive investment. Our dedicated team has maintained these properties well. We plan to spend roughly in line with our historical expenditures this year, and as we prepare for next year, we anticipate presenting additional opportunities and discussing our capital expenditure plans, which may highlight other areas where we can achieve substantial returns.

Okay, good. Thank you for all the color there. And then switching gears to the guidance. Can you provide some color on the move to issue the guidance and why that made sense now this quarter compared to maybe next quarter or last quarter? Given the seemingly swirling macro backdrop that's going on right now, is it a sign of confidence in the recovery or more clarity? Any color there?

Yes, that's a good question. It is definitely a sign of a little bit more confidence in the recovery and just a view that we should be providing a little bit more visibility on what we're thinking. So that's really the chief driver of the timing. I think our view is also that we would refer to the type of guidance we've been providing before, so full year guidance. And the other piece is that the ranges on the guidance, if you look back to where the types of ranges we have provided back in midyear, in 2019, they were much tighter. So I think embedded in our guidance is the view that there are, generally speaking, a broader range of potential outcomes, which is why the guidance is quite a bit much wider than it was back in 2019 at this time.

Very helpful. Thank you for all the color, guys. That's all from me.

Thank you. There are no additional questions waiting at this time, so I would like to pass the conference over to Marcel Verbaas for closing remarks.

Thanks. I know it's been a long day for everyone, a lot of people reporting today. We appreciate you joining us for our call today and we look forward to updating you again next quarter.

This concludes today's conference call. Thank you all for your participation. You may now disconnect your lines.