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Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sunstone Hotel Investors Second Quarter Earnings Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. I would like to remind everyone that the conference is being recorded today, August 6, 2026, at 12 o'clock p.m. Eastern Time. I will now turn the presentation over to Mr. Aaron Reyes, Chief Financial Officer. Please go ahead. Thank you, operator. Before we begin, I would like to remind everyone that this call contains forward-looking statements that are subject to risks and uncertainties, including those described in our filings with the SEC, which could cause actual results to differ materially from those projected. We caution you to consider these factors in evaluating our forward looking statements. We also note that the commentary on this call will contain non-GAAP financial information including adjusted EBITDA RE, adjusted FFO, and hotel adjusted EBITA RE. We are providing this information as a supplement to information prepared in accordance with generally accepted accounting principles. Additional details on our quarterly results have been provided in our earnings release and supplemental, which are available in the investor relations section of our website. With us on the call today are Brian Giulia, Chief Executive Officer, and Robert Springer, President and Chief Investment Officer. After our remarks, the team will be available to answer your questions. With that, I would like to turn the call over to Brian. Please go ahead. Thank you, Aaron, and good morning, everyone. We were pleased with our performance in the second quarter, which again exceeded our expectations. Our portfolio benefited from robust leisure demand as a result of increased summer travel and special events, which added to sustained strength in group and corporate demand. Overall, REVPAR in the quarter grew a solid 9.3%. Excluding Ondas Miami Beach, which continues to ramp nicely, REvPAR grew 4.3% This stronger-than-expected revenue performance, combined with continued focus on cost controls at the hotels and at the corporate level, allowed us to deliver meaningful growth in earnings. The added benefit of our accretive common and preferred stock repurchase activity contributed to further growth in EPS with second quarter adjusted FFO over 14% higher than last year. Our resorts once again led the portfolio with combined REVPAR growth of nearly 27% including the benefit of Ondas Miami Beach. Waialea Beach Resort delivered impressive performance as REVPAR grew nearly 15% in the quarter. The resort continues to regain its market position, growing year-to-date occupancy by 10 points and increasing EBITDA by nearly 18% relative to the prior year. We are encouraged by the sustained momentum we are seeing in Maui with year-to-date group room night production for all future periods up 36% versus last year and group pace for 2027 up over 10%. Our wine country resorts generated rev par growth of 5% in the second quarter, driven by better group business. We continue to see strong growth at Onda's Miami Beach, even with less occupancy compression than we were expecting from the World Cup. During the second quarter, the resort ran 72% occupancy at an average rate of $470 and produced $2.8 million in EBITDA. While the third quarter is seasonally the lowest in the market, our resort is gearing up for a solid 4th quarter which should benefit from market compression following the temporary closure of the W Hotel and the opening of our signature restaurant, Bazaar Meat. The restaurant is now complete, but we are waiting to open into the high season. Our renovated resort continues to gain traction with higher end group business and leisure travelers and the addition of bazaar should bring additional momentum as we move into 2027. Our urban hotels benefited from strong group, corporate, and leisure demand during the quarter. RevPar at these hotels grew a combined 5.2% driven primarily by rate, which drove a 50 basis point expansion in hotel margins. JW New Orleans benefited from robust group demand with strong out-of-room spend. We expect this trend to continue for the remainder of the year with second half group pace up double digits. At Marriott Boston Long Wharf, the quarterly performance benefited from strength across all demand segments. Going into the quarter, our hotel had a solid base of group business on the books, which which then allowed our operators to compress leisure rates, especially during the World Cup. While we were pleased to see summer events drive more demand than anticipated in Boston, the strength we are seeing in the market is broader-based, with pace up meaningfully for the remainder of the year and into 2027 with the added benefit of a better citywide calendar. at our convention hotels reflected a continuation of the same themes we saw earlier in the year. San Francisco continued to perform well with rate compression in June from the World Cup, adding to what was already a strong setup for corporate transient demand throughout the quarter. REVPAR grew 16% in the quarter, which was impressive, but down 11 points sequentially from the first quarter. Our expectation was that the pace of growth in San Francisco for the remainder of the year would continue to moderate, which is consistent with what we saw during our ownership period in July. Performance in Washington, D.C. came in better than expected as incremental transient demand offset what has been a more subdued group backdrop in market due to lower government-related activity. As we noted at the start of the year, we expected that a weaker convention calendar in San Diego, along with our meeting space renovation, would present some headwinds for us with the biggest impact happening in the second quarter, which saw total rev par decline 8.4 percent. While transient demand increased 19 percent in the quarter given the importance of group business to this hotel and its associated out of room contribution the increased transient business was only able to offset a portion of the group shortfall looking ahead the hotel is already seeing the benefit of our new meeting space the sales team had a fantastic booking quarter achieving the hotel's highest q2 group revenue production on record with 26 million of business booked in the quarter we expect to see sequential improvement in san diego for the remainder of the year with particular strength in the fourth quarter the setup in san Diego in 2027 is much better across the market with increased city-wide nights and our hotel is also benefiting from better group patterns and our new meeting space, which is contributing to a double-digit increase in group pays for next year. On the expense side, we knew coming into the quarter that it would be our most challenging comparison of the year given our anticipated mix of business and the benefit of favorable tax appeals that were received in the prior year. Overall, our comparable portfolio, excluding ONDOS, saw expense growth for all costs increase 4.4 percent on an absolute basis during the quarter or 3.6 percent per occupied room which led to a hundred basis point headwind to margins our cost and margin performance was impacted by a shift to a higher transient mix at a couple of our larger group hotels which kept them from running at peak efficiency This was particularly the case at the Hilton San Diego Bayfront, which, as I noted earlier, also had meeting space under renovation for part of the quarter and had a softer backdrop across the market. If we exclude San Diego, our expense growth per occupied room was 120 basis points lower and margins expanded by 10 basis points. We continue to focus on driving labor efficiencies where possible and working with operators to mitigate growth in energy expenses and property-level G&A costs. We have also been focused on minimizing expenses at the corporate level and ensuring that our G&C costs are aligned with the needs of the company. In late July, we closed on the previously announced sale of the Hyatt Regency San Francisco, an attractive private market value for a low yielding asset. While we expect there will be incremental revenue growth at the hotel, we know that ongoing cost pressures in the market will elongate and create risk to the recovery in earnings. So, we took advantage of strong investor interest in the Market and sold the hotel at an implied multiple that is well in excess of where we are trading and deliver to our shareholders the value of future growth today and with certainty. We have accretively deployed a portion of the sale proceeds into the discounted repurchase of common and preferred stock and expect to generate additional shareholder value and grow NAV per share through the redeployment of the remaining proceeds. needs. We have adjusted our full-year outlook to reflect a sale of our San Francisco hotel and the better-than-expected performance in the second quarter. While many of the factors that gave rise to macroeconomic uncertainty earlier in the year and warranted a cautious view have not abated, we believe that the strength of recent trends allows us to incorporate a modest amount of incremental revenue and profitability expectations for the second half of the year in our revised outlook. While we are optimistic that if trends continue, we can deliver stronger performance, we believe it remains prudent to retain a degree of caution. In terms of the transaction market, the interest we saw in our San Francisco sale process was encouraging and reflects continued momentum the environment looks to be more conducive to further executing our capital recycling strategy and continuing to demonstrate the value of our portfolio in the interim we delivered value to shareholders through an additional 70 million of accretive common and preferred stock repurchase activity so far this year we expect to continue opportunistic repurchase activity, as pricing allows, while we focus on generating profitability growth from operations and realizing the benefits of our investment projects. And with that, I'll turn the call over to Robert to give some additional details on our capital investment activity. Thanks, Brian. As we head into the second half of 2026, we are pleased to be wrapping up a few of the larger projects we had slated for this year in san diego we are now done with the renovation of the meeting space and are already seeing the benefits of that investment in our booking velocity and expect group activity to pick up in the latter part of this year and into 2027. at the andaz miami beach construction is complete at bizarre meat and the space looks great we are starting training activities and remain on track to debut the restaurant in the fall to take advantage of the full high season in the market We look forward to the incremental earnings and appeal that this dining destination will add to the resort. On July 1st, we converted the Ocean's Edge Resort to the Hilton Key West Resort and Marina. This change is intended to drive incremental earnings at the resort as the property benefits from Hilton's stronger distribution channels, operating expertise, and lower customer acquisition costs compared to its prior independent operating model. As part of the conversion, the resort is undergoing a focused renovation which includes a rooms refresh and some facade work. This work is being done in phases over the rest of 2026 and into 2027 and is being partially funded by the resort's new operator. As we shared with you last quarter, Wailea Beach Resort was impacted by a series of severe storms that came through the Hawaiian Islands in March and caused wind and water damage in some parts of the resort. We are now substantially complete with most of the repair work on the guest rooms and public spaces, but will have some roof and exterior work that will be performed later this year. As Brian noted earlier, demand at the resort has rebounded sharply this year, so we have been navigating around peak periods to minimize disruption. To date, we have received approximately $6 million in reimbursements from our insurers, including $1.2 million in business interruption associated with lost income in March and April. We are working closely with our insurers to pursue additional cost recovery for the remaining repair work. With that, I'll turn it over to Aaron. Please go ahead. Thanks, Robert. As we noted at the top of the call, our earnings results for the second quarter came in ahead of expectations, driven by stronger leisure performance and sustained strength in corporate and group demand. Williams RevPar for the total portfolio grew an impressive 9.3% in the quarter, including a 500 basis point benefit from Ondas Miami Beach. Total RevPar, for all hotels, increased 7.7%, including a 470 basis point benefits from Ondas. The stronger top line performance in the quarterly contributed to earnings that were ahead of our expectations, including adjusted EBITDA RE in the second quarter of $77 million, an an increase of 6% relative to last year. When combined with the added benefit of our accretive repurchase activity, adjusted FFO per diluted share was $0.32, an increase at 14% from last year. Our balance sheet remains strong and has been further bolstered by the receipt of the sale proceeds from Hyatt Regency San Francisco. On a transaction-adjusted basis, our total cash balance as of Q2 was approximately $430 million including restricted cash, and our net leverage stood at only 2.6 times trailing earnings or 3.6 including our preferred equity. We have no debt maturities prior to 2028, and we have restored full availability on our credit facility. Included in our press release this morning are the details of our updated outlook for As part of that information, we are providing an adjusted view of our prior guidance ranges, which reflect the July sale of the Hyatt Regency San Francisco. These adjustments include the estimated gain from the sale and the net impact of the removal of the hotel's earnings for the remainder of the year, which are partially offset by the estimated interest income we expect to generate, assuming the net sale proceeds are retained in our cash reserves. From here, we have increased our expectations for the year to reflect the outperformance we saw in the second quarter along with a modest increase from improved near-term trends while still retaining a degree of caution for the balance of the year. Our updated guidance also includes the benefit of lower corporate G&A resulting from a management transition that occurred earlier in the year and the benefit of higher FFO and FFO per share created by our accretive common and preferred stock repurchase activity. Based on what we see today, we now expect that REVPAR for all 13 hotels in the current portfolio will grow between 7% and 9%, or an increase of 175 basis points at the midpoint to a range of $239 to $244. This reflects the full-year benefit of ONDOT's Miami Beach, which is expected to contribute approximately 450 basis points of growth at the midpoint. Total REVPAR is also expected to increase between 7% to 9%, to a range of $404 to $411, with a similar 450 basis point benefit from ONDOS. As noted in our supplemental, our year-to-date REV PAR and total REV par growth for the current 13 hotel portfolio with a robust 10.5% and 9.7% respectively. Based on the midpoint of our updated ranges, this would imply a mid-single-digit revenue growth expectation for the third and fourth quarters with approximately 200 basis points benefit from ONDOS. This revised revenue growth is now expected to translate into adjusted EBITDA RE in the range of $245 million to $255 million. Our FFO per diluted share also incorporates $1 million of lower preferred dividends as a result of our repurchase activity and is now expected to range from 93 cents to 98 cents. In terms of the distribution of our EBITDA by quarter, based on the midpoint of our updated range, the first half of the year will account for roughly 58% of our full year earnings, with the third quarter expected to contribute an additional 20% and the balance coming in the fourth quarter. As we noted in the press release this morning, we also adjusted our estimate for full year capital expenditures to a range of $105 million to $115 million. This increase is the result of additional repair work at YLA Beach Resort following the storms earlier this year, and is consistent with our commentary from last quarter in which we thought we were likely to end up in the upper end of our prior range once we had the opportunity to more fully assess the required repair work. We expect a vast majority of our additional spend will be reimbursed by our insurance programs. And as Robert noted earlier, we have already received a portion of the expected proceeds. Moving to our return of capital, since the start of the year up through this week, we have repurchased approximately $40 million of common stock at a blended price of $9.24 per share, a meaningful discount to consensus estimates of NAB. In addition, we have also purchased nearly $30 million of our preferred stock at a blended of $20.44 per share or an 18% discount to its liquidation value. This common and preferred stock repurchase activity has been accretive to both NAB and earnings per share. And while we retain capacity and appetite for additional share repurchases, our revised 2026 outlook does not assume the benefit of additional buyback activity. In addition to our share rep purchases, our Board of Directors has authorized a $0.09 per share common dividend for the third quarter and has also declared the routine distributions for our Series H and I preferred securities. Before we conclude our prepared remarks, I'll turn it back over to Brian for some additional thoughts. Before we open the call to questions, I want to provide an update on our 2026 objectives. The Board and management remain focused on realizing the value of our portfolio. This was demonstrated by our recent sale of the Hyatt Regency San Francisco for a nearly 20 times trailing EBITDA multiple. As we have shared in the past, San Francisco had been and was expected to be one of our better growth markets, and that growth is reflected in the high purchase price multiple. While San Francisco represented a portion of our 2026 and 2027 growth, it was only a piece of it. We continue to see and expect further growth in Miami and Waialea, and between strong 2027 group pace and more constructive citywide demand in Washington, D.C., Boston, San Diego, and San Antonio, our focus portfolio is set to continue to deliver above industry average growth. In addition, we have proceeds from the San Francisco sale to deploy in a manner that will deliver incremental value to our shareholders. We have established a track record of recycling capital at what have proven to be attractive valuations and redeploying proceeds into the most accretive option available at the time. Given the improving transaction market, we expect to continue to selectively take advantage of strong private market values for certain assets. This would then allow us to redeploy proceeds in the manner that would result in the best return to shareholders. To date, that has been common and preferred stock repurchases. The Board and management remain committed to maximizing value for shareholders and are open to pursuing any alternative that would reasonably be expected to result in value creation. With that, we can now open the call to questions. Operator, please go ahead. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. The first question comes from the line of Smedes Rose with Citibank. Your line is now open. Oh, hi. Thank you. Brian, I realize it's early, but I wanted to ask you a little bit on your thoughts around the pace of expense growth, I guess, through the balance of the year and how you're thinking just early on about 2027, now that you have obviously more visibility around the union contracts and I think the wage hike for next year, maybe it's a little lower than what you saw this year, but maybe just kind of all in, can you just maybe give us some high level thoughts around just kind of the pace of property level expense growth? Sure. Good morning, Smedes. So for 2026, we're trending now somewhere between, for total expenses, somewhere between 3.5% and 4% total growth and, you know, call it 2.5%, on a cost-per-occupied room basis. Our expenses and margin in the second quarter, some of the items we talked about on the call, having the lower group percentage and more transient in a large hotel like San Diego, doesn't optimize the productivity of that hotel. And so as we move into the fourth quarter, second half and fourth quarter this year, and we start to get to see the growth in group contribution, and as we go into next year, which has good pace, we'll start to see that normalize a little bit more, which should help a little bit on the cost side, on the efficiency side. Looking into next year, you're correct. We do have some of our labor agreements will start to normalize down to lower levels. You know, and then also looking at some of the larger expenses, you know, insurance we'll see at least for the first half of next year some reduction. Property taxes, while we had some credits last year, seemed to be a little bit more normalized. So I could see, assuming some, you know, our growth will probably come with at least half occupancy next year, we'll continue to see some incremental variable costs rise. But I would guess with labor being the biggest piece of it, we'll start to see our uh our expense moderate down to the lower end uh of that range and maybe even a little below that great and i just wanted to clarify something you took your up by 8 million for the year so does that include about 4 million of business interruption insurance that was more than what your fire estimate was just i thought you have a little footnote there just to clarify sure thanks for the question um so our revision to the full year number uh was i think three components one was a portion of the outperformance that we saw in q2 was fully carried through um and then we also had a modest amount of call it a million dollars or so of uh incremental outlook for the back half of the year that's factored in and then the third piece would be as we noted in our press release lower expected gna for the year of about a million as well So those three items account for the $8 million in incremental EBITDA that we expect for this year. What's in the numbers so far from a business interruption perspective is just the $1.2 million that we recognized in the quarter. We're continuing to work with our insurers to vet the remaining coverage for both property damage and any incremental business interception, but there's nothing further assumed in the number from that perspective. Thank you very much. The next question comes from the line of Peter Lasky with Evercore ISI. Your line is now open. Yeah. Hi. Thanks for taking the question. Brian, could you just talk about, you know, the outer room spend trends that you're seeing? And I guess in the first half, room revenue growth is higher than total revenue, but the guidance would imply that maybe that flips in the second half. So what's driving that, and what have you maybe seen so far in the third quarter? Yeah, from a – good morning – from an out-of-room spend, we've seen it throughout last year and into this year be very stable and growing in various hotels. the disconnect between rev par growth and total rev par growth this year or in the quarter is really back to San Diego and so while we saw and we knew going into the year that we were going to have a weaker especially first half group wise in San Diego so having a hotel that's 1,200 rooms that's a very large group box have a larger percentage of its business transient where that that transient spend is nowhere near what the group customer spend is that's where we're seeing the flip and as we get into the the second half of this year the strength really in San Diego starts is really fourth quarter and then looking into next year with with good pace we'll see that flip got it got it appreciate that and then just just quickly on the um conversion in in key west i know it's only been a month but um maybe just walk us through how that conversion process went you know if you're seeing any early wins or you know any changing booking patterns realizing it's it's kind of the off season there but just things that you've learned thus far and kind of what do you expect yeah you're right we are in early days and we have some renovation going on at the same time so that's going to not we're not going to see the optimal output yet but we have seen some actually some very promising and interesting observations early on one we are seeing we are seeing ADR lift so and we're also seeing the booking window expand a little bit more and we attribute that to the brand hilton's booking engine and more customers booking through brand.com than they would through a a shorter term window through an ota um so we're seeing some very promising uh you know top line benefits there and then one other ancillary benefit we're seeing is with having the brand and the purchasing platform of the brand we are seeing some benefits on some of our costs and the purchasing power of the Brand you know being able to acquire and procure things at a at a lower cost than we were with a smaller operator thank you the next question comes from the line of Patrick Scholes with Truist. Your line is now open. Great. Thank you. Good morning. Good afternoon, everyone. I have a bit of a three-part question here regarding the changes that some of the brands Hilton with their RISE program and Marriott, whatever they're calling it. One, are you currently seeing any financial impact on that, or what are your expectations around that? That's the first part of the question. Second is, specifically within that, are we seeing differences between the two programs that the companies are rolling out, that being Hilton versus Marriott? And then third, with your Montage and Four Seasons brands? Now, I know they don't have guest loyalty programs or credit cards, but are they doing anything similar to what Hilton or Marriott are doing as far as fee relief? Thank you. Okay. Thank you, Patrick. So a lot there. Yes. A lot there, but let's unpack From the brands, we are seeing various initiatives come out that are lessening either the percentage or the cost load. Not all of them necessarily would apply to our assets, and some of them are more limited service-focused, but we are seen some sales and marketing and some other costs that are benefiting us our expectation is that over the next several years that there will be there should be a pretty steady increase in some of these savings that the brands are going to be able to recognize through various technology initiatives so where we are expecting and hopeful that this is just the early stage of this. I think it's not fair to compare one to the other on this, but I think both the brands that you mentioned are taking a very good first step towards finding efficiencies and then sharing them with the owners. As far as the luxury brands, I have not heard of of any of those programs yet our focus really especially in wine country is just on maximizing the productivity and in working with with the brands to streamline operations which we've been very successful at and we think that there is more to do there Okay. I appreciate the caller. Thank you. The next question comes from the line of Michael Bellisario with Baird. Your line is now open. Thanks. Good morning, guys. Brian, it's a two-parter here for you. It's capital allocation and transactions. One, what are you seeing in terms of investment opportunities and where our deals may be pricing relative to your expectations or underwriting and then second you sort of addressed it in your closing remarks but sort of how do you balance that that potential capital deployment with maximizing value and continuing to close the valuation discount thanks sure um on the transaction environment we're we're definitely seeing um you know volume volume pick up um i think earlier in the year it was more luxury focus and so i think that that is something that you know has starting to broaden out a little bit more where we're starting to see not just luxury or or big large super tanker hotels um on the market and And so we're seeing more in the, call it, $75 to $150 million range of full service in primary or secondary markets. So more of that is on the market. I think that when we look at those type of hotels, there are definitely more bidders out there and we from a pricing standpoint we we still see a bit of a disconnect of where things are getting done just because of the competitive nature of of a marketed process and so you know more interesting but not where they need to be from our standpoint at this time And, you know, we have been very active over the last several years of recycling capital and trying to find the best, you know, redeployment of that on a risk-adjusted return basis. And when we look at the transaction market improving now, I think that this is a time where we really have to remain disciplined. And so as we look at having proceeds that have not been fully deployed from the sale of San Francisco, our focus still is to repurchase at a discount to NAV because we believe that compared to redeploying into an asset at current pricing, that provides the best return to our shareholders, especially when we can monetize a low-yielding asset into the market and get, you know, get paid for that future growth while eliminating the risk of getting there. So I think that we still trade, we believe it into consensus and to where we believe is a discount to NAV, and repurchase is our best alternative we see at this time. um you know as stock prices change and valuations change that um and maybe more if the transaction market improves maybe that changes but where we sit right now uh we think that that you know is somewhat of a continuation of what we've been doing but we think it's the best spot for us helpful thank you the next question comes from the line of jack armstrong with wells fargo your line is now open Hey, good afternoon, and thanks for taking the question. You put in a really strong group pace in the back half of the year and into 2027. Can you break out some of the markets where you're seeing that strength and maybe provide that pace number externally as well? Sure. So looking at the beginning of this year, it was always a story of the back-half of year from a group pace perspective and that was you know in in our larger hotels in our largest hotel of san diego um it was the case when we get into you know the fourth quarter and and into 2027 we start to see really broad-based strength across the larger group boxes and you know it's not just group it's it's transient pace is is extremely strong for you know it's not as long of a window but for the next six months is what we have you know a view on transient pace you know portfolio is up 22% a combination of room nights and rate compared to last year it is across hotel types urban is up 25% conventions are up 12 resorts are at 27 so it's it really is broad base and then when you layer on top of that the um the group side and important hotels to our portfolio like um like san diego those really start to you know contribute into the second half specifically the fourth quarter And then into next year, while we haven't given a full year pace for 27, we do have positive pace in 27 and into 28. So we have a more favorable citywide calendar going into next Year 2 with several of our major markets, D.C., San Antonio, San Diego, and Boston all having stronger citywide calendars also. So, you know, you put all that together, and when you look at the specifics of our portfolio and the market that our portfolio, our hotels are in, you know, not only is it the second half of this year, but it really is a multi-year story looking at strength. Thank you. The next question comes from the line of Michael Hirsch with JPMorgan. Your line is now open. Michael Hirsh with J.P. Hi. Thank you for taking my question. On your EBITDA guidance, you mentioned 22 percent of full-year EBITD would be in the fourth quarter, while also noting Andaz and San Diego should have outsized fourth quarters. SO, WOULD YOU VIEW YOUR SECOND HALF OR IMPLIED FOURTH QUARTER GUIDANCE AS CONSERVATIVE HERE? HEY, MICHAEL DERRIN. I THINK IF WE LOOK AT THE BACK HALFT OF THE YEAR, CERTAINLY, YOU KNOW, WHAT'S IMPLIED BY OUR GUIDANCES IS THAT WE THE GROWTH WAS SOMEWHAT FRONT HALVE LOADED. AND SO THAT'S WHAT WE'VE SEEN CERTIFICATELY AS YOU LOOK THROUGH THE DOUBLE DIGIT REVPAR GROWT THAT WE'LL SEE YEAR TO DATE. OUR EXPECTATION FOR THE REMAINDER OF THE EAR IS THAT THAT WE MOVE MORE INTO A MID-SINGLE budget REVPAR growth environment you know we've been pleased at what we've seen relative to a no actual performance to our expectations I wouldn't call our rest of the year guidance conservative I would say based on everything that we've seen and then what we know it's a it's reasonable expectation but we'll see how things play out if we look at what so far in July I would day we've been you know surprised a bit to the upside which is good so that that is one of the months, but we'll see how the remaining five transpire. But I think it's our reasonable best guess at what we think is going to happen as of now. Yeah, you have to look at the total amounts of business for each quarter, too. And so we have, you know, third quarter tends to be our lowest quarter, and, you Know, second quarter, first and second quarter is one of our largest. So when you look at that, I think that if we see a continuation, and we are absolutely seeing very strong production for not only future years group bookings, but I think all but one of our hotels had more in the year for the year bookings in the second quarter than we had last year. And so we're also seeing short-term pickup. And then from the transient side, that remains very strong. You know, if these trends continue, there's definitely upside we can see. I think that, you know, what we saw in the second quarter and moving the guidance up to incorporate some additional you know earnings in the in the third and fourth quarter shows that you know it's a step forward that shows our you know confidence in in our performance and you know again we want to make sure that we are where you know with all of the external headwinds that can be out there that there we do remain cautious, too, and have some level of conservatism when we're looking forward. Thank you. The next question comes from the line of Chris Darling with Green Street. Your line is now open. Thanks. Good morning. Brian, as you think about deploying your dry powder, what's the latest thinking around the Montage preferred security, just given the rising coupon there? It is a freely prepayable option that we weigh against the other alternatives we have to deploy capital. So you're completely right, it does increase, and so there will be a point in time where the yield on it will make it more attractive than some other options. So we have a menu of where we can deploy, and I think that we have at least historically proven to not only just repurchase common but preferred and other securities. So it's out there as an option, and it's something that we'll evaluate. We do have flexibility on it, and we can redeem a portion of it or all of it. And it's up to us, the cadence of how much we want to redeem. Okay. Understood. And then shifting gears back to D.C., I know you spoke about a better citywide calendar into next year. Just putting that aside, what's the opportunity in your mind for that property to continue to take share on a relative basis in the market? I'm just wondering, you know, irrespective of the broader market movements, if there's sort of relative upside there as well. Yeah, I mean, D.C. has been a difficult group market this year, but we have seen considerable pickup on the transient side. Transient pace is 30% going forward, and even with it being a challenging group market, our group production was fantastic during the second quarter, and so we're seeing future bookings from a group side. We're seeing future transient bookings and the transient bookies I really attribute to the the brand change or the flag or the yeah you're going from the Renaissance to the Westin because if you look at if you just go back on a full year basis so in in 2019 as a Renaissance the transient the hotels transient rate index was 106 at the end of last year the transient rate index was 123 the occupancy transient occupant index went from 89 to 119 if you look at just you know quarter over quarter and the total amounts will will change quarter to quarter based on that each quarter you know transient rate index was 117 to 100 and occupancy was 111 to 94 so the answer is is that transient business has been better in the market and our share of that business continues to improve based on on the Western flag and the renovation and everything that we've done to that that hotel it's you know it is a it has the notoriety of the brand it's a great transient box it's a great location it has probably one of the best you know gyms in the city and like it it's just a very um you know it was always a really good group hotel and now it's a good complete hotel thank you for the time that is all the time we have for the q a period today i will now turn the call back to brian gillia for closing remarks thank you everyone for your interest in the company and we uh we look forward to a very strong second half and meeting with many of you over over the coming months at various conferences. Thank you. This concludes today's call. Thank you for attending. You may now disconnect.