Good day, ladies and gentlemen, and welcome to the Third Quarter 2017 Hyatt Hotels Corporation Earnings Conference Call. My name is Krista, and I will be your operator today. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Brad O'Bryan, Treasurer and Senior Vice President, Investor Relations and Corporate Finance. Please proceed, sir. [0CPPRG-E Brad O'Bryan]: Thank you, Krista. Good morning, everyone, and thank you for joining us for Hyatt's third quarter 2017 earnings conference call. I'm here in Chicago with Mark Hoplamazian, Hyatt's President and Chief Executive Officer; and Pat Grismer, Hyatt's Chief Financial Officer. Mark will begin our call today with a review of our third quarter, including highlights of our operating results and an update on our growth strategy and other business matters. Mark will then turn the call over to Pat, who'll provide more detail on our financial results for the quarter, as well as an update on our full year outlook. We will then take your questions. Before we get started, I would like to 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 earlier this morning, along with the comments on this call are made only as of today, November 2, 2017, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find a reconciliation of our non-GAAP financial measures referred to in our remarks on our website at hyatt.com under the Press Release section of our Investor Relations link and in this morning's earnings release. An archive of this call will be available on our website for 90 days further information included in this morning's release. And with that, I'll turn the call over to Mark.

Thank you, Brad. Good morning, and welcome to Hyatt's third quarter 2017 earnings call. I'd like to start this morning by taking a moment to acknowledge all of those affected by the various natural disasters over the past few months. We have a presence in all of the impacted markets and many of our colleagues and guests have endured a wide range of challenges posed by these events. I'm inspired by all of the examples of care that we've seen and I want to express my gratitude to all of the members of the Hyatt family who have demonstrated in such tangible and visible ways, our purpose which is to care for people so they can be their best. Moving to our results, we're pleased to report that despite facing some headwinds in the third quarter, we continue to produce solid operating results, building on a very strong first half of the year. As we discussed during our second quarter call, we expected the third quarter to be our weakest of the year relative to last year. Due to the Jewish holiday shift this year and the Olympics uplift that we experienced at Grand Hyatt Rio de Janeiro last year. In addition, the natural disasters that occurred during the quarter weighed on our overall results with a disproportionate impact to certain owned properties. We reported adjusted EBITDA for the quarter of $180 million, exceeding our previous estimates despite the unexpected external events. Adjusting for the year-over-year impact of transactions, along with the impact of the holiday shift, the tough comparison in Rio de Janeiro and the natural disasters, our adjusted EBITDA would have increased 7% on a constant currency basis, driven once again by strong increases in management and franchise fees across all regions. Our system-wide comparable constant dollar RevPAR…

Thank you, Mark, and good morning, everyone. I will begin by providing more detail on our third quarter results and will then share an update on our expectations for the balance of 2017. Earlier today, we reported third quarter net income attributable to Hyatt of $16 million and earnings per share of $0.13 on a diluted basis. Adjusted EBITDA for the quarter was $180 million with comparable system-wide RevPAR growth of 1.6% in constant dollars. Collectively, the holiday shift and natural disasters adversely impacted our system-wide RevPAR growth by approximately 100 basis points in the quarter. This impact combined with the overlap of last year's Olympics benefit cost us about $20 million of adjusted EBITDA. Additionally, the impact of transactions over the past 12 months resulted in a net decrease in third quarter adjusted EBITDA of $7 million compared to 2016. Excluding all of these non-recurring items, our third quarter adjusted EBITDA grew at a healthy rate of approximately 7% on a constant currency basis. All things considered, we are very pleased with these third quarter results. I'll now highlight our segment results starting with our owned and leased business, which accounted for just under half of our adjusted EBITDA before corporate and other expenses in Q3. Owned and leased segment adjusted EBITDA was down approximately 14% to prior year in constant currency, reflecting the impact of transactions and other non-recurring items as previously mentioned. Comparable owned and leased RevPAR declined 1.1% for the same period. Compared to our system-wide RevPAR average, both the holiday timing and natural disasters had a more pronounced effect on our owned and leased hotels due to our company owned presence in Florida, as well as the disproportionate significance of group business to our owned portfolio. Excluding these items, our owned and leased hotels grew…

Your first question comes from the line of Shaun Kelley with Bank of America. Your line is open.

Hi. Good afternoon. So Mark, there's a lot here for I think everyone to digest, especially on kind of the new $1.5 billion sort of asset sale target. Could you give us a little sense – you mentioned this in your prepared remarks, but can you just give us a little bit more color there on two fronts: one would be you mentioned something about possibly targeting lower yield and higher multiple hotels, so just how to think about potential EBITDA loss from in the owned and leased segment or sort of what types of assets you're targeting there? So a little bit more color on that. And then, the other thing would be just as you move into a more steady stage of asset sell down, is there any impact on the G&A line item for the company overall or should we expect that to be relatively stable?

Yeah, so Shaun, I'll provide some further context later, but I'll let Pat address this question.

Thank you, Shaun. So, first with respect to the lower yield or higher multiple assets, based on how we're valued today as a company it appears that our owned real estate is broadly being valued by investors at EBITDA multiples in the high-single to low double-digit range. And in our view, this does not fairly reflect the market value of our portfolio evidenced by the multiples at which we've been able to sell many of our assets in the past. So we intend to focus our disposition activity on assets that we believe will command EBITDA multiples above the high-single to low double-digit range, and we believe these actions will be accretive to our overall value. Now as to the kind of the net impact to EBITDA over time, it's really tough to say and we're not providing specifics on this at the present time bearing in mind that that impact will depend very heavily on the specific assets that we sell, as well as the offsets from any investments that we will make over that same period of time. And then secondly, as to the SG&A piece, based on how we're expediting to continue to grow our company, both organically and through new investments in line with our growth strategy, we're not anticipating a material change to our total level of SG&A.

Great. Thank you very much.

Your next question comes from the line of Chad Beynon with Macquarie. Your line is now open. Chad Beynon - Macquarie Capital (USA), Inc.: Hi. Great. Thanks for taking my question. Wanted to talk about the owned margins. Pat, in your prepared remarks, you talked about some cost containment or really just a nice effort within the team. Can you kind of talk about if these are new initiatives, if this has just kind of continued, and more importantly how should we think about cost containment in 2018 if RevPAR does decelerate maybe closer to the GDP range? Thanks.

Thank you, Chad. First, I will say that I am really pleased with and proud of the efforts of our hotel operations teams to continue to drive productivity improvements at our hotels in ways that do not impair the guest experience. I think when you consider that for the quarter our comparable owned and leased margins were down only 40 basis points given – or in the context of a fairly significant comparable RevPAR decline driven by the shift in the holidays as well as the natural disasters, that highlights the extent to which we are seeing continued improvements in productivity. As you'd expect in any given quarter, there are a number of ins and outs, but it netted to only a 40 basis point degradation. And that reflects efforts that have really been ongoing for the past few years here as the teams remain focused on driving the top line as well as managing costs in a very responsible fashion. We see those efforts continuing to gain momentum and we anticipate in the years ahead that those efforts will sustain. Chad Beynon - Macquarie Capital (USA), Inc.: Great. Thanks. And then my follow-up, just a question on your comment about 2018 pace decelerating from kind of how you talked about it last quarter. Anything there to point out or were you just attempting to get through a certain percentage and that's how it played out in the quarter, anything that you can kind of help us think about the group pace there?

This is Mark speaking. Overall the – as you look at group and the profile of what we've seen, in general, you're seeing a bit of softening in the nearer term, that is the 2017 pace and the 2018 pace from a quarter ago, and a strengthening in the 2019 and 2020 pace. And what we're seeing in effect is some bifurcation of demand. The longer dated bookings are largely association bookings and the shorter dated bookings are largely corporate bookings. And what we're seeing in general is corporations who are behaving in a pretty cautious way they continue to be cautious and that has affected, and this has been the story over the last four to six quarters, in the quarter for the quarter bookings, which are largely corporate and nearer term bookings. This past quarter, obviously, we had a significant downdraft because of the holiday shift. About 50% of our revenue impact for the quarter was associated with the holiday shift. So it's a significant proportion of the total story here. But within that, we had a couple of outliers. I think pharma was by far the worst performing sector, for example; banking and manufacturing were next in line in terms of declines. So that will give you a little bit of color in terms of where we're seeing some of that. As we head into 2018, no matter that we've seen a bit of softening relative to our pace from last quarter, the good news about 2018 from our perspective is that and this is different from how we came into 2017, our patterns of availability in our hotels, I think sets up better for execution in the year in 2018. And in particular, if you look at availability – space availability in particular where we've had a lot of turned away interest this year because we simply couldn't accommodate people given the date ranges they were looking for. This coming year the open-to-buy or open-to-sell rather that we've got available is in better time periods with respect to days of weeks, and also in certain markets where we think demand will be relatively good. So I would say that while the overarching phenomenon is what I described earlier about corporate versus association, a more nuance read is that 2018 could actually prove out to be a year in which we could maybe more proactively revenue manage our way into a reasonable year. And then, in terms of individual markets, there will always be markets that are doing better or worse depending on the rotations. But I think across the board, we're holding still to a positive progression into 2018. Chad Beynon - Macquarie Capital (USA), Inc.: Okay. Thank you very much, Mark. Appreciate it.

And your next question comes from the line of Michael Bellisario with Baird. Your line is now open. Michael J. Bellisario - Robert W. Baird & Co., Inc.: Good morning, guys.

Good morning. Michael J. Bellisario - Robert W. Baird & Co., Inc.: Wanted to focus on 2018, and really the kind of puts and the takes, not looking for guidance or a number or anything, but what signs are you seeing on the ground? I know you mentioned some group commentary there, that caused you to think it could be softer than 2017 and is some of it maybe Hyatt specific because you've outperformed this year or are you seeing something on the macro that makes you a little bit more cautious?

I don't think there's – I mean, there's the overall macro picture that we're living in. But I wouldn't say that there's been any kind of inflection point in the progression of macro circumstances. I would say that there is a persistent cautiousness amongst our corporate customers, both impacting a bit on the transient and the group side. So, I guess that remains a factor as we look into the coming year. On the group side, you know I just described our perspective there. We're heading into the fourth quarter now with tentatives looking a bit better. And that's encouraging, because we still have, as I said attractive patterns that we can fill in 2018. So yeah, I think it's just a overall judgment about where we are at the moment, even though some of the pattern benefit should allow us to revenue manage better into next year, that we have seen a bit of a softening in terms of forward pace for 2018 from last quarter. And that's really one of the things that's on our mind with respect to how we're thinking about the progression into 2018, in general.

And Michael, this is Pat. Just to build on what Mark has said. I thank you for highlighting the fact that you know, we've had a very good year this year. You'll recall that we had entered the year guiding to a range of zero to 2%. Our most recent guidance update calls for 2.5% to 3%. And to repeat that performance in the next year, I think is a pretty tall order. So we prefer in the current environment to take a more conservative approach as far as how we're thinking about the shape of next year's plan. We'll be providing explicit guidance on the February call. But, we are thinking about it in the context of what has proven to be a much stronger year than we had anticipated. And we may be one of the few hotel companies out there set up to post a stronger global RevPAR result this year than we posted last year. Michael J. Bellisario - Robert W. Baird & Co., Inc.: Got it. That makes sense. And then just kind of one clarification on that $1.5 billion of asset sales. Is that incremental to the already $300 million that were completed in October?

Yes, it is. And I would also like to clarify...

Starting from the level of $300 million – are you asking if the $300 million is included against the $1.5 billion, Michael? Michael J. Bellisario - Robert W. Baird & Co., Inc.: Yes.

Oh, I'm sorry, excuse me. The $1.5 billion is not incremental to that. I would think about the $300 million transaction earlier this quarter as a 20% down payment on that $1.5 billion goal. And also to clarify, the $1.5 billion represents pre-tax cash proceeds. We would expect that there would be some measure of tax leakage depending on the ultimate profile of the assets that we sell. But yes, to be very clear, the $300 million of assets we sold earlier this quarter would form part of that program, and those $300 million of assets are not included in what we had previously announced and committed to by way of an approximate $500 million proceeds from the asset sale program that we initiated earlier this year. Michael J. Bellisario - Robert W. Baird & Co., Inc.: That's helpful. Thank you very much.

Your next question comes from the line of Joe Greff with JPMorgan. Your line is now open.

Good morning, everybody.

Morning.

Mark, you in your earlier prepared comments, you mentioned in some fashion 2018 could be softer than 2017. I'm presuming you're talking about the rate of RevPAR growth, not the absolute RevPAR dollar result.

Yeah. Correct. That's correct.

Okay. And then, Pat, you talked a little bit about something I want to ask about in terms of tax consequence of these asset sales. I mean, how should we at this point, if you obviously know what the tax, what the cost basis is and you have the $1.5 billion number there. I mean how are you thinking about trying to quantify the tax consequence or the tax consequence ranges there? And then for the $300 million and change that you did in this fourth quarter here, what's the tax leakage on those assets? That's all from me. Thanks.

Certainly. Thank you, Joe. So, first with respect to what might be the tax lease leakage associated with the $1.5 billion of gross cash proceeds. It's tough to say at this stage as we're still in the process of finalizing our program of asset sell down informed by updated market valuations, which we'll be obtaining in the coming weeks. But I think a reasonable estimate at this stage would be in the range of 20% to 25% of gross proceeds. But you would expect, as has been our pattern in the past that we'll be seeking to minimize the tax impact whenever possible. And I would also highlight that we may occasionally take advantage of tax planning opportunities, uncertain of those sales in the context of our larger capital recycling efforts. And then, as to the tax impact of the most recent asset sale, the package if you will of HR Scottsdale with the Royal Palms, focusing on the Hyatt Regency Scottsdale, when you account for the tax basis in that asset and apply an effective tax rate on the implied gain of around 40%, you're looking at an effective rate on gross proceeds of 32%. That would tend to be on the higher-end of the spectrum of our assets, again considering that each asset has a very different tax profile given the extent to which we've taken advantage of 10/31 rollover opportunities. And so, what I would highlight as a point of comparison just to balance things out here is that when you look at the Hyatt Regency Grand Cypress that we sold at the end of the second quarter, gross proceeds were $206 million and the tax basis on that asset was just over $150 million. Applying the same marginal tax rate of 40% on the implied gain, the effective tax rate on the gross proceeds was about 10%. So you know there is a couple of examples at opposite ends of the spectrum one north of 30%, the other around 10%. And that's why at this very preliminary stage of the planning process around our $1.5 billion gross proceeds sell down, we think a reasonable estimate is in the range of 20% to 25%. But certainly, as we finalize our plans and you know looking forward to our fourth quarter earnings call, we'll be providing more information.

And I would just add to that Joe, I mentioned that we're going to be looking at tax management across all of our transactions activity. Past examples, just now give you an interesting example of that where we had the opportunity to release proceeds from this Grand Cypress sale. But look to a 10/31 on the Regency Scottsdale sale as a means of actually trying to optimize the tax profile but still remain true to the contribution towards the $1.5 billion of gross proceeds that we're looking to deliver.

Thank you.

Your next question comes from the line of Jared Shojaian with Wolfe Research. Your line is now open.

Hey, everybody. Thanks for taking my question. So you've talked about your valuation and what the market is implying. So my question is, why not do more than the $1.5 billion? And can you just help me understand how you came up with that number?

Sure. So thanks for that. We undertook a rigorous evaluation, looking at multiple alternatives and we had outside advisors helping us look through what our different alternatives might look like and helping us arrive at our path forward. And as we look through the various alternatives, we concluded that the approach that we've set out is the one that will provide superior shareholder value over time. We've assessed these kinds of options in the past. I think the issues that we've looked at in the recent past with respect to the durability of the increases that we're seeing in the managed and franchised business and also the fact that we believe that we are seeing an inherent undervaluation or under appreciation for the value of our asset base. We feel like this approach allows us to unlock value by monetizing higher multiple assets by accelerating the evolution of our earnings mix towards the capital light and even the franchise fee business, but also leaving us with sufficient funds with respect to a sufficient capital base to allow us to continue to have flexibility and be able to invest in our business. So, from our perspective the $1.5 billion figure is meaningful. It's a meaningful reduction to the owned real estate portfolio. We feel confident, we can execute against it in the period of time given current or expected stable market conditions. And finally, it preserves a level of assets that allows us to maintain the asset recycling activity and preserve long-term optionality with respect to how we deploy those assets. So that's all the considerations that went into the sizing.

Okay. Thank you. And just to follow-up on that. Have you already identified the specific assets or did you just pick $1.5 billion as your targeted number? And then how should we think about returning that $1.5 billion, is that primarily buybacks or do you think about other projects along the way?

Well, let me address the second point, and then I'll turn the first point back to Pat. In terms of the proportion of proceeds that are going to be used to either invest in businesses or return capital to shareholders, we don't really have a defined allocation at this point and we will make those decisions as we go. But we have consistently prioritized in the past and we will continue to prioritize the growth of our business in a way that creates value. But we are also – as I think, proof will show that we've been very committed to returning meaningful shareholder capital when available, and as a means of delivering value to shareholders. So that will continue to be our practice. With respect to the process.

Yeah. Jared, just with respect to how we're thinking about the timing or the progression of the sell down, as I mentioned earlier, the recent sales of the Hyatt Regency Scottsdale and Royal Palms for gross cash proceeds of $305 million was our first step in this sell down, again about a 20% down payment, if you will. And also just to clarify, we sold those assets at a blended multiple EBITDA multiple of 12.6. So that transaction compared to how investors are valuing our total owned and leased EBITDA stream today, was solidly accretive, and I think is a good example of the types of transactions we have in mind as we march down this path. We will be taking additional assets to market in 2018, and we intend to be fairly aggressive early on. But as to the exact timing, we expect to see cash proceeds from sale. There's no real way to be sure, given that there's some circumstances beyond our control, but there's a high degree of intentionality, and we're I think making good progress in developing a specific asset playbook, if you will. And we expect that you'll see meaningful evidence of our commitment to this effort during 2018. In terms of how we're thinking about how we prioritize assets beyond what we already talked about in terms of the EBITDA multiple threshold above which we're looking to monetize some of our real estate, we'll be looking at a number of factors. Market demand is critical, asset pricing critical, tax attributes, in the interest of preserving value for our shareholders and near-term renovation capital requirements, all of those things go into the decision process. And also to be very clear, we intend to enter into long-term management or franchise agreements for all of the assets that we're looking to sell. And we are working with couple of brokers now to finalize our asset sale strategies supporting these efforts and we look forward to providing more information about this on our next call in February.

Okay. Thank you very much.

Your next question comes from the line of Stephen Grambling with Goldman Sachs. Your line is now open. Stephen Grambling - Goldman Sachs & Co. LLC: Hey. Thanks. Maybe following up on the questions on capital allocation. Does this shift to more fee-based EBITDA make you reconsider the right leverage ratio? And then maybe on a somewhat related note, how does your allocation of the proceeds from the sale of Avendra differ from other forms of cash flow or other reimbursed funds? Thanks.

Thank you, Stephen. First with respect to our leverage ratio, at the present time, we don't see any significant change in our overall leverage and expect that we will maintain our investment grade rating over that period of time. But you know, it's something that we evaluate on an ongoing basis. But no current plans to make any change there. And then, as it relates to Avendra, what I would say is that we're expecting that the proceeds will be used broadly for the benefit of our system of Hyatt branded hotels. The cash is not necessarily restricted from a balance sheet perspective. But we do see the opportunity to use those funds in a very targeted fashion for the benefit of our brands, likely to include investments in technology for the benefit of our customers. And we're in the process of consolidating consumer research around how various digital functions and features are benefited or are perceived by customers as it relates to the experience they have at our hotels and how we engage with them. So, we're quite excited about the opportunity here to monetize this very valuable asset and to use the proceeds in ways that will benefit our brands and benefit our customers. And also to be very clear, based on how we have accounted for previous distributions, how we're expecting to account for any gain on this sale and the result of the distribution and our use of those funds going forward, we expect no material impact to Hyatt's adjusted EBITDA, because we will be characterizing these impacts as special items. Stephen Grambling - Goldman Sachs & Co. LLC: Understood. And maybe one quick follow-up on that since you mentioned that you would be allocating some of that to technology and given you just relaunched the World of Hyatt, can you just help us understand maybe what you've historically spent on technology, both at the parent company and then at some of the properties, so maybe at the managed property level? And how that could compare in 2018 and beyond? Thanks.

Thanks. So, we're not going to really get into specific numbers with respect to individual line items or spend or types of spend. We've got – our recent activities have focused with respect to projects and new build technology assets, we've really focused on functionality in the hotel that is enabling colleagues to actually better engage with guests and simplify their interaction with hotel systems which are historically wonderfully groovy (52:56) systems. And secondly, we've looked at and expanded what's available through the app and the resources that are required behind that at the property level to support making app-based services actionable by us. We're evaluating a number of these things. We've got pilots for a mobile key that have been running for some time. And I think we have clarity about that even though the penetration across the whole industry is very, very low right now and usage is very low. We are looking forward in time to see how we will roll that out. And also looking at enhancements to our existing customer-facing technology mostly through the app, but also through the World of Hyatt. I would just take a moment to say that we've hired Mark Vondrasek onto the executive team to focus on our loyalty platform and on our new growth platforms. And we also just announced this week a new leader of the World of Hyatt program. In particular, they both bring tremendous depth of experience, especially in taking consumer information and data and translating that into initiatives that really add value to the program. So, you can expect that you'll see some changes over the next year as they spool up their efforts. And so, I think that'll hopefully give you a little bit more color on how we're thinking about the application of funds. Stephen Grambling - Goldman Sachs & Co. LLC: Great. Thanks so much.

Your next question comes from the line of Thomas Allen with Morgan Stanley. Your line is now open. Thomas G. Allen - Morgan Stanley & Co. LLC: Hey. Good morning. So going back to the asset disposition strategy. So, your owned segment in the first nine months of the year was 53% of EBITDA. Where do you hope that'll be in three years from now?

Hi, Thomas. Thanks for the questions. You're right, we have seen that trend build over the last several years. I think it was back in 2015 that owned and leased accounted for as much as 58%. Last year was 56%; this year we expect to land at around 52%. Of course the inverse of that is our managed and franchised business, which continues to grow at an outsized rate. What we would anticipate is that with the steps we're taking to reduce our asset base, we'll see an acceleration of that trend such that our fee business could account for as much as 60% of our earnings by 2020 before our corporate and other segment. But of course that would depend on the level of share repurchases versus reinvestment and the yield on that reinvestment over that period of time. But we're quite excited about how this move is going to help to accelerate a trend which has been building in recent years and will further highlight the strength of our brands and the outsized growth of our managed and franchised business and all of the positive qualities and characteristics of that earnings stream, less asset intensity, less volatility and higher total asset returns.

If I can just add to that, in terms of things that we might be looking to invest in, we're going to continue to be disciplined and selective in what we invest in and we expect any of the investments that we make to be accretive to the total asset returns over time. So first, investments would be focused on expanding engagement with our customers and increasing share of wallet with them. We've already taken some steps down that path with our wellness-related investments, and more recently in alternative accommodations. The opportunities are going to be focused on capital-light businesses. They may in some cases include assets – hard assets including hotel real estate, but our expectation is that if they do, we would look to sell down or sell off those assets, and really focus on growing fee-based businesses or capital-light earning stream. So that's really going to be the focus of any reinvestment that we make out of those proceeds. Thomas G. Allen - Morgan Stanley & Co. LLC: Helpful. Thank you. And then just when you do guide for 2018 EBITDA, are you going to include the potential impacts of asset sales or are you just going to guide underlying, and then we'll make our own assumptions?

Too soon to say. I think it depends on how our plans come together and we look forward to briefing you in February. Thomas G. Allen - Morgan Stanley & Co. LLC: Helpful. Thank you. Bradley O’Bryan - Hyatt Hotels Corp.: Krista, we'll take our last question at this point.

And your final question comes from the line of Carlo Santarelli with Deutsche Bank. Your line is now open.

Hey, thanks, guys. I have just two quick ones. One is somewhat clerical and I think could be answered pretty quickly, so I'll ask it first. But on your to 2Q call, you guys talked about the 3Q being your smallest EBITDA, absolute dollar generating number of the year implying that 4Q would be higher. If you kind of keep that math and acknowledging you sold $6 million of assets at the beginning of the fourth quarter or EBITDA worth of assets, do you still kind of have that view or are we going to be a little bit more balanced with 3Q, 4Q at this point?

We'll check on that and see if we can give you some direction on that. What's your second question?

Great. Second question is when you think about the direction your business will move from a multiple profile perspective as you do kind of make the transition and sell off this $1.5 billion of assets over the next several years, does it motivate you maybe more so in the near term or ahead of that to be a little bit more aggressive with share buybacks and not to insinuate you haven't been to-date, but does it change your thinking at all around how you think about buyback activity?

Well, I guess in general, it's been – I think it's clear that we've continued to find our own stock an attractive investment. We've been persistent and consistent about being in the market, and so – and we've done that with the backdrop of looking at our overall liquidity profile making sure that we have availability of capital for opportunities as they arise, but really staying committed to being in the market. So I guess what I would say is those same principles will apply as we as we go forward, and as Pat said, our expectation is that we are going to stay active in the remainder of this year.

And then, Carlo as to your first question around Q4 versus Q3 and having characterized Q3 at the time is expected to be our weakest quarter of the year, for exactly the reason you mentioned which is the unplanned sale of those two hotel properties at the beginning of Q4. We expect that Q4 may be a touch lower than Q3 in absolute EBITDA terms, but I would say that the overall expectations for Q4 from a RevPAR growth perspective continue to be stronger for Q4 than we saw in Q3, helped in part by the reverse of the holiday timing shift, which weighed on Q3 results.

Right. And my point was more, if you think about back to when you made those comments. Your view overall of 4Q, I imagine is fairly linear with what it was at that point in time, barring some FX movements here and there and the asset sales, but the operational fundamentals of the business, you look at it very similarly is my assumption?

That is correct.

Great. Thank you.

Thank you, Carlo. [0CPPRG-E Brad O'Bryan]: Okay. Thank you, Krista. And thank you to everyone for joining us today. We look forward to talking to you soon. Good bye.

And this concludes today's conference call. You may now disconnect.