Chesapeake Lodging Trust (NYSE:CHSP.PRA) Q4 2016 Earnings Conference Call - Final Transcript
Feb 22, 2017 • 05:00 pm ET
new key on-site management team is in place with limited supply growth and stronger revenue management, we expect RevPAR in Santa Barbara to be in the 2% range for 2017.
In San Diego, at our Indigo, we're expecting a very solid year. There is limited new supply both Downtown and the convention calendar is strong in terms of quality, size and placement of the citywides throughout 2017. RevPAR expectations are in the 3% range for the year. The Hyatt Mission Bay will have impact from its renovation this year. Accordingly, we expect RevPAR to decline in the mid-single-digits. In Chesapeake, smaller markets, our Seattle -- in Seattle, we expect low single-digit growth in 2017. In DC, our RevPAR growth is expected in the 3% range. In New York, pricing remains a challenge but with the new management company in place, with stronger revenue management strategies, we expect 1% to 2% RevPAR growth.
And finally, in Minneapolis, RevPAR is expected to decline in the mid-single digits due to new supply and a reduction in citywide conventions in 2017. There is no question that the industry operating environment is challenging. That said, Chesapeake's balance sheet is in an excellent shape and we've created an outstanding portfolio of hotels. As we enter what appears to be the next phase of a typical cycle, we expect that our well-located portfolio will outperform its competitors once we get beyond our 2017 short-term headwinds.
We'll be even more diligent on cost controls and identifying creative new revenue sources as we focus our efforts on internal growth and repositioning projects. This portfolio is well positioned to take advantage of every opportunity both now and as fundamental strengthen. Over the long-term, we believe our footprint and EBITDA concentration are one of the strongest in our industry and our relative value is attractive. Furthermore, we expect several of the strongest headwinds to our portfolio's growth in 2017 to dissipate over time. This includes the Moscone Center renovation and expansion, the renovation disruption at four of our larger properties and ultimately the impact of Zika in Miami.
With that, I'll open it up to your questions. Thank you.