CorePoint Lodging Inc. (NYSE:CPLG) Q4 2019 Earnings Conference Call - Final Transcript

Mar 12, 2020 • 05:00 pm ET

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CorePoint Lodging Inc. (NYSE:CPLG) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the CorePoint Lodging Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference to your speaker today, Becky Roseberry, SVP of Finance and Investor Relations. Please go ahead, ma'am.

Executive
Becky Roseberry

Sure. Good afternoon and welcome to CorePoint Lodging's fourth quarter earnings 2019 conference call. In a moment, we will have some prepared comments from Keith Cline, our CEO; and Dan Swanstrom, our CFO. Also in the room with us today are Rob Song, our SVP of Investments and Howard Garfield, our CAO.

Before we start, I would like to remind everyone that our remarks today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements. And forward-looking statements made today speak only to our expectations as of today. We do not undertake any duty to update forward-looking statements.

These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. For more details on some of these risks, please refer to the Risk Factors section of the Company's most recent Annual Report on Form 10-K and in the subsequent reports filed with the Securities and Exchange Commission. In today's remarks, we will also refer to certain non-GAAP financial measures.

Corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP metrics are provided in our earnings release, which is available on our website at corepoint.com. Finally, for those listening to a replay of this call after March 12, 2020, we will remind you that this presentation will not be updated. And it is possible that the information discussed will no longer be current.

With that, I will now turn the call over to Keith.

Executive
Keith A. Cline

Thank you, Becky. Good afternoon, everyone and welcome. We're pleased you could join us. As we've all seen over the last few weeks, there's been a sudden and rapid deterioration in the macro lodging environment due to the actual and anticipated impact of the COVID-19 virus. We're in unprecedented times for the lodging industry. We're working closely with Wyndham to respond to the circumstances and as always, the health and safety of our guests and employees is a priority.

At the asset level, we're working diligently to implement cost containment initiatives in response to declining demand. With respect to our business, we have experienced approximately $5 million in lost revenue from actual disruptions in the business incurred to date. And we've seen a slowdown in our transient business as evidenced by a slowing of our forward-booking pace. Although group travel does not constitute a material part of our overall business mix, we've also experienced group and conference cancellations.

With these recent trends in mind, we believe the prudent course is to withhold formal guidance at this time due to the uncertainty and limited visibility on forward-bookings and operating trends. While we're obviously cognizant of the macro-environment, it goes without saying that addressing its impact on our