Pursuit Attractions and Hospitality Inc (PRSU) 2025 Q3 法說會逐字稿

Good afternoon. My name is Makaya, and I will be your conference operator today. At this time, I would like to welcome everyone to pursue 2025 3 quarter earnings conference call.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press the pound key.

Thank you. Carry on, you may begin today's conference.

Good afternoon and thank you for joining us for Pursuit's 2025 3rd quarter earnings conference call. Our earnings presentation, which we will reference during this call, is available on the investors section of our website. We encourage investors to monitor the investors section of our website, in addition to our press releases, filings submitted with the SEC, and any public conference calls or webcasts.

During the call, you will hear from David Barry, our President and CEO, and Bo Heitz, our Chief Financial Officer.

Today's call will contain forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1,995.

Please refer to the disclaimer on page 2 of our presentation for identification of forward-looking statements and for a discussion of risks and other important factors that could cause results to differ from those expressed in such statements. During the call, we will also discuss non-GAAP financial measures. Definitions of these non-GAAP financial measures are provided on page 3. And reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation as well as in our earnings release.

And now I'd like to turn the call over to David who will start on page 4 of our presentation.

Thanks, Carrie, and thank you all for joining us as we review our very strong 2025 3 quarter results.

Let us start by highlighting four key achievements that really speak to the strength and momentum of our business.

First, we delivered a record breaking 3rd quarter with significant year over year growth that exceeded expectations, all while continuing to deliver incredible experiences for our guests.

Second, based on that exceptional performance, we're raising our full year 2025 growth guidance, a reflection of both our year-to-date results and our confidence in what's ahead.

Third, we're well positioned to benefit from global consumer demand trends for experiential travel to iconic destinations.

That gives us a solid foundation for continued growth in 2026.

And 4th, our refreshed build by strategy continues to deliver. It's fueling growth and enhancing our collection of irreplaceable assets backed by a meaningful pipeline of investment opportunities and a strong balance sheet that gives us flexibility to accelerate.

So let's review our record 3rd quarter results and improved full year 2025 outlook on page 6.

During the quarter, our dedicated team delivered extraordinary experiences to approximately $2 million attraction visitors and welcomed lodging guests across nearly 200,000 room nights.

We delivered revenue growth across all geographies, including a strong recovery in Jasper following last year's wildfires.

Total revenue for the quarter reached $241 million, which is up 32% year over year.

Our adjusted EBITDA margin expanded to 49%, reflecting the scalable nature of our business with strong demand for our incredible attractions and unique lodging properties and our diligent ongoing management of costs.

Our strong team member engagement, our relentless focus on elevating the guest journey, and the perennial demand for our iconic experiences and destinations continue to differentiate pursuit, and that's driving sustained momentum and reinforcing our long-term growth.

With our exceptional 3rd quarter results, we're raising our full year 2025 adjusted EBITDA guidance by $6 million at the midpoint, as opposed to our prior guidance range. We now expect full year 2025 adjusted IBEDAT to be in the range of $116 million to $122 million.

Now let's dive in on page 7 with a reminder of what makes pursuit a powerful and differentiated growth engine.

Pursuit success is anchored in a guest-obsessed, experience-driven, hospitality-focused culture, and that's paired with authentic one-of a-kind experiences.

Our unique offering of must-do sightseeing attractions for all ages and skill levels and our distinctive lodging and iconic destinations with limited supply and high barriers to entry gives us a strong foundation for enduring success.

Guided by our proven refreshed bill by strategy, we continue to scale our collections of irreplaceable experiences with growth and the guest experience in mind, anchored by focused capital allocation and discipline.

Since 2015, we've nearly quadrupled revenue expanding across four countries. We've grown from 4 world-class attractions to 17, and from 12 lodges to 29.

This is a testament to the power of our strategy and the timeless allure of experiential travel, which we believe will continue benefiting us long into the future.

As shown on page 8, our refreshed build by growth strategy is anchored in two important growth levers that drive long-term value creation.

Our first growth lever is delivering organic growth to refresh and build investments, and the second is to buy one of a kind forever businesses that fit our strategy.

We actively maintain a robust pipeline of opportunities across both levers backed by our strong financial and operational capacity.

With ample liquidity and low leverage, we're able to invest across a spectrum of high return opportunities.

On the organic growth front, we've identified over $250 million in refresh and build opportunities over the next six years, including an expected $38 million to $43 million in 2025.

These targeted investments elevate the quality of our existing assets. They enhance the guests and team member experience, and they unlock new revenue streams in our iconic destinations.

We view these investments as among our most efficient uses of capital. By raising asset quality, elevating the guest experience, and improving financial performance, we deliver high returns and we drive long-term value.

Our buy acquisition strategy complements this by targeting irreplaceable attraction and hospitality businesses in both existing markets and new markets that have perennial demand, limited supply, and high barriers to entry.

We focus on businesses that deliver attractive (inaudible) margins, operate in countries with strong ease of doing business, and exceed the 15% IRR hurdle rate that our growth investments need to deliver.

This disciplined approach ensures that we continue to scale with purpose by investing in unforgettable experiences. That inspire our guests and deliver sustainable returns.

Page 9 provides some visibility into our significant refresh and build pipeline, which represents a compelling set of organic growth opportunities through 2030.

In 2025 and 206, we're advancing two large scale multi-year lodging refresh projects.

At our Forest Park Hotel in Jasper National Park, we are in our second phase of a full refresh of the Woodland wing with upgrades to guest rooms, corridors, the exterior facade, lobby and atrium, conference spaces, food and beverage areas, and this first phase of room renovations was complete for the 2025 peak 3rd quarter, and the elevated guest experience captured a 22% increase in ADR. Compared to the non-renovated rooms.

At our Gross Mountain Lodge in Whitefish, Montana near Glacier National Park, we're underway with the first phase of a full refresh of that property.

Ahead of the 2026 peak summer season, we plan to have renovated the South wing guest rooms and pool area. We're also building a new 8,250 square foot wedding and event pavilion to support the group and leisure demand, which will open later in 2026.

These projects will transform and reposition these year-round lodges to better meet the expectations of mass affluent leisure travelers, as well as support higher ADRs and attraction visitation.

And our phased approach to renovation, with construction taking place primarily during the seasonally slower 4th and 1st quarters, allows us to minimize disruption during our busy summer months.

So as we look further ahead, we have a robust pipeline of potential refresh and build projects presently in the planning stage to drive incremental capacity and yield opportunities in high demand markets.

And key examples include Jasper Sky tram Investments to introduce a new lift and reimaging terminal buildings to deliver a more elevated guest experience.

A refresh of the Banf gondola in Banff National Park with a new lift and experiential enhancements to further differentiate this iconic attraction.

Investments at Apgar Village in Glacier National Park aimed at improving and maximizing lodging capacity to meet growing demand for this very special place.

And then finally investment in the Denali Backcountry adventure focused on elevating and reimagining the guided journey deep into Denali National Park when the Denali Park Road reopened in 2027.

And a series of additional lodge refreshes focused on transforming and repositioning properties to align with market demand.

These investments reflect our commitment to enhancing the quality and appeal of our experiences while positioning our portfolio for sustained growth and profitability.

We plan to provide more details on our 2026 capital plans in February 26 and expect growth capital investments over the next two years at increased levels relative to 2025, primarily driven by planned large scale refresh and build investments in the new Jasper Skyrim attraction, Forest Park Hotel Woodland Wing, and Gross Mountain Lodge, subject to approvals.

And while these investments take multiple years to complete, they will help propel our growth beyond 2026.

Now on page 10, let's revisit our frequent acquisition of Tabacon completed at the beginning of the 3rd quarter.

Which exemplifies the kind of high-quality buy opportunities we're pursuing to drive long-term growth.

Tabacon is a world-class destination resort and attraction in one of Costa Rica's most iconic travel regions.

Nestled at the base of the Adal volcano and adjacent to protected rainforest, Tabacon offers exclusive access to the country's largest network of naturally flowing hot springs.

It is truly unique with two distinct thermal river attractions paired with a luxury 105 room resort, renowned spa, signature culinary experiences, and 570 acres of beautiful terrain.

Tabacon is profitable 10 months of the year, with full year hotel occupancy exceeding 80%, and provides a positive EBITDA contribution during periods that are seasonally slower for our Canadian and US businesses.

The renowned Tabacon Thermal River attraction offers a premium experience for both hotel guests and day visitors.

And in March of 24, Tabacon opened a second thermal river attraction, Hot Springs Pravida, designed to serve more budget conscious guests.

Both attractions are open to day use guests serving a broad range of visitors and driving incremental revenue.

Through its inclusion in the small luxury hotels of the world portfolio, Cabacon is accessible to Hilton Honors members, which expands its global reach and visibility among high value travelers.

This strategic affiliation enhances the resort's positioning in the luxury market, drives incremental demand from a loyal and affluent customer base, and strengthens its competitive advantage within the premium hospitality segment.

Tabacon is led by an exceptional local leadership team.

With deep roots in Costa Rica and a proven track record, this team has built a reputation for delivering best in class hospitality and driving sustained growth.

Culturally, Tabacon is a perfect fit with pursuit in all aspects, including the team's growth mindset and restless focus on making experiences better.

As one small tangible example, the team is underway with rebranding the new thermal river experience from its initial brand Choiyin to the more compelling brand of Hot Springs Pura Vida based on learnings and feedback across key stakeholders.

And we're actively collaborating on exciting future growth opportunities.

We see a clear path to near-term upsides through targeted operational enhancements and the full ramp up of Hot Springs Porravida.

And also, with strong demand and ample hot springs capacity, we expect to drive Tabacons at just the Deepa multiple below 9 times by year 3.

Beyond these operational gains, we're actively exploring refresh and build opportunities across the 570 acres of acquired terrain as well as buy opportunities to expand our presence in Costa Rica with additional high-quality attractions and hospitality assets at attractive valuations.

We see the potential to build a world class collection of nature-based experiences in Costa Rica.

Across pursuit, we're not just focused on the next quarter, we're focused on the next decade, and we're confident that the choices we're making today will drive long-term value for our guests, our teams, and our shareholders.

Next on page 11, we provide some initial insights into our indicators for next year.

We believe we're well positioned for continued growth in 2026, supported by favorable secular trends, sustained demand for our destinations, and solid business fundamentals.

Across generations, we continue to see a shift toward experience-driven travel with increasing demand for adventure, wellness, and immersive exploration, all areas where we're strongly positioned to capture growth with our differentiated and authentic guest experiences in iconic locations.

Our travel destinations from Banff and Jasper to Costa Rica have perennial demand and continue to attract strong visitation.

In Canada, we expect another standout year for travel in 2026, supported by favorable foreign exchange rates, unique geopolitical trends, and the recently renewed free admission to Canadian national parks in 2026.

Our global network of tour and travel partners spanning over 80 countries are signaling strong demand for the 2026 itineraries.

This early indicator reflects the appeal of our offerings and the strength of our diversified market reach.

And at the heart of our success is a relentless focus on growth and elevating the guest and team member experience.

And it's with this mindset that we're confident in our ability to harness these tailwinds and deliver exceptional performance in the years to come.

And now I'll turn it over to vote to review our 2025 financial results and outlook in more detail.

Thanks David. I'll start on page 13 with our 3rd quarter financial highlights.

As David mentioned, this was a phenomenal quarter with record results that exceeded our expectations, particularly in August for the remainder of the core summer season as visitation to our markets accelerated.

The team managed extremely well to harness this demand, drive the power of flow through, and deliver outsized results.

We delivered revenue of $241 million in the third quarter, which was up approximately $59 million or 32% year over year.

This growth was primarily driven by a strong recovery across our Jasper properties that were temporarily closed during the 2024 3rd quarter due to wildfire activity, as well as by incremental growth from our new experiences and continued momentum and overall guest demand for our distinctive existing experiences in iconic places.

Excluding our jobs for properties and new experiences that were not operated by pursuit for the entirety of 2025 and 2024, our third quarter revenue increased $17.7 million or 12%, from strong yield optimization and visitation across our geographies.

We delivered revenue growth across all geographies with particular strength across our Canadian operations and at Sky Lagoon, supported by continued global secular trends, our differentiated businesses, and our passion for delivering incredible experiences for our guests.

In addition to broad demands, Mother Nature was also on her side this season, with minimal impacts to our operations from inclement weather and smoke as compared to typical years.

Net income attributable to pursuit, which is inclusive of discontinued operations, was $73.9 million as compared to $48.6 million in the prior year.

Our income from continuing operations attributable to pursuit was $76.7 million up $33.4 million compared to the prior year.

During the 2025 3rd quarter, we reported a pre-tax gain of $4.2 million from business interruption insurance proceeds received related to lost profits in 2024 from the Jasper wildfire.

This brings our total insurance proceeds received since the 2024 wildfire to $23.7 million.

We continue to work with our insurance carriers on additional potential recoveries.

Our adjusted net income, which excludes results of discontinued operations and other non-recurring income or expenses, including the business interruption insurance proceeds gain, was $75.3 million as compared to $50.7 million in the prior year.

The year to year growth of $24.6 million primarily reflects higher adjusted EBITDA, partially offset by increases in income tax expense and income attributable to non-controlling interests.

Adjusted EBITDA increase by $34.4 million or 41.5% year over year to $117.4 million primarily driven by significant revenue growth with strong margin flow through supported by operating leverage in the business and continued cost discipline.

Turning to our strong balance sheet highlights on page 14, pursuit continues to have ample liquidity and low net leverage to support accelerated growth.

As of September 30th, 2025, we had total liquidity of $274.4 million including $33.8 million in cash and cash equivalents and $240.6 million of available capacity on a revolving credit facility.

In September, we expanded our revolver by $100 million to a total of $300 million. We also added Tavicon as a co-borrower and extended its maturity to September 2030, enhancing our financial flexibility to capitalize on strategic growth opportunities.

Also in September, we acquired the remaining 20% minority interest in Glacier Park Inc. For $13 million securing full ownership of this high performing subsidiary.

This move simplified our capital structure, eliminated a $22 million dollar non-controlling interest liability, and reinforces our commitment to growing iconic experiences driven assets with long-term potential.

At the end of the quarter, our total debt was $129.8 million and our net leverage ratio stood at 0.7 times, comfortably below our target range of 2.5 to 3.5 times.

Now let's look at our 3rd quarter of actions performance on page 15.

Attraction ticket revenue reached $100.4 million reflecting a 33% year to year increase driven by substantially higher visitors and effective ticket prices.

Visitors increased 22% year over year due to a strong jasper recovery, new attractions, and overall robust demand for our one of a kind sightseeing attractions with a 4% increase in same store visitors.

Same store constant currency effective ticket pricing, which excludes our Jasper properties temporarily closed in the prior year and new attractions grew by 9% compared to 24.

This improvement was enabled by our focus on guest experience with particularly strong performance from Sky Lagoon and our Canadian attractions in Banf and Golden.

Sky Lagoon continues to deliver strong growth in effective ticket price, primarily fueled by the expansion of the premium ritual experience, which was completed in August 2024.

Next, let's turn to our 3rd quarter hospitality performance on page 16.

Lodging room revenue totaled $59.7 million reflecting a 42% year to year increase driven by a strong Jasper recovery, new lodging, and improvement in same store ADR and occupancy.

All of our collections delivered growth in room revenue during the quarter.

Same sort constant currency revpar, which excludes our Jasper properties temporarily closed in the prior year and new lodging, grew 6% as compared to 2024.

Our lodging properties are located in iconic high demand experiential travel destinations, offering guests direct access to some of the most breathtaking natural settings, including at nearby Pursuit sightseeing attractions.

These markets benefit from strong compression dynamics supporting both premium pricing and high occupancy.

Let's turn to our 2025 outlook on page 17.

As David mentioned earlier, based on continued demand for our authentic experiences and stronger than expected results for the 3rd quarter of 2025, we are raising our full year 2025 guidance.

We now expect full year adjusted EBITDA of $116 million to $122 million.

Which is an increase of $6 million at the midpoint relative to our prior guidance range of $108 million to $118 million.

This new guidance range represents substantial adjusted EEA growth of $39 million to $45 million relative to 2024.

This significant year to year growth reflects our strength of execution, continued strong demand, and the recovery of leisure travel to Jasper, in addition to contributions from our recent acquisitions.

With the strong rebound in Jasper, our continued relentless focus on delivering exceptional guest experiences and the strength of our balance sheet, we are well positioned to drive sustained growth and strategically invest in high return, refresh, build, buy opportunities.

And with that, I'll turn it back to David.

Thank you both.

So just in closing, I'd like to express my sincere appreciation to our team members for their passion, their dedication, and their growth mindset.

Their restless positive energy and commitment to excellence continue to drive exceptional guest experiences and our overall success.

To our shareholders, thank you for your ongoing support of pursuit. We're energized by the opportunities ahead, and we remain focused on executing our growth strategy to create long-term value.

Let's open up the line for questions.

At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster.

Your first question comes from a long Tyler Batory with Oppenheimer. You may begin.

Oh hey, good afternoon. Thanks for taking my questions and congrats on the strong results here.

First one for me, more housekeeping on results and guidance.

Can you talk about the insurance proceeds in the quarter?

Were those contemplated when you provided? Original guide that $4.2 million that you cited in the investor presentation. And then can you also talk about FX please too? I'm not sure if that was a tailwind or a headwind in the quarter and just how is foreign exchange movements impacting guidance for the full year.

Yeah, sure, Tyler, happy to take those. So on the insurance proceeds, just to reiterate, we've now received $24 million insurance proceeds in totality, $13 million of that was last year, and about a little under $11 million of that was in 2025, as you noted for Q3 there was about $4.2 million of that in the business interruption recoveries bucket of that. Importantly, we're treating that outside of adjusted EBITDA given the non-recurring nature of it. So it was never in our adjusted EBITDA guidance and it's not in there today either.

On the FX side of it wasn't, it wasn't a big driver for the quarter, and frankly for the whole year it relative to last year is not a major driver. We did have some movements from where we started the year from an FX perspective, but, that really reversed itself heading into Q2 results. So, pretty neutral on the whole year and with only a couple of months to go of not really peak operating periods. It's not a huge sensitivity to that for the remainder of the year here.

Okay, I appreciate the clarification on that. And then I wanted to double click on something that we talked about last quarter in terms of EP, and I mean look at the same store visitation in the mid single-digits has been very strong, but the EP has been even stronger, and I'm. If you can just unpack that a little bit more, how much is mixed, how much is outright price increases, and when you think it's about the strong ETP growth you've seen this year, does that create a situation perhaps where there's some difficult comps for you in 2026?

Yeah, I think first I would say, Tyler, that one of the important factors is that any growth in ETP is a combination of several things. Yet you've got some price increases.

You've also got attendance itself, the impact of the type of visitor filling white space. There's a whole variety of different factors that help drive the effective ticket price and We do have a view to the future in 206, and we have a sense of confidence, meaning that the trends are on our side. We see continued energy around the growth in, experiential travel that connects in with iconic locations. We think that Canada and its position is going to continue to be strong as we look at growth coming.

We have the strength of the business that prepared itself and adapted quickly and just being, I think, alert and anticipating is part of how we were able to drive such a strong increase in effective ticket price and bo jump in if I miss anything there. Yeah.

I think that's all true holistically, if I were to point to any particular.

Outliers of strength this quarter.

I probably put top of the list, Sky Lagoon and Golden Sky Bridge as well as the Banf gondola. Some of those are areas where we've had recent investment that helps support the incremental yield and some of that is the continued efforts that David alluded to, all of which I think sets us up as the right baseline to build off of for next year.

A great example with Sky Lagoon. Remember, one of the choke points at Sky was. The way that the ritual experience worked was that originally we had undersized that when we had created Sky. So the investment that we made in 24 set us up really well for 25, and so we were able to just as a reminder, take some of the lower tier products and basically they disappeared off the the price list and everyone just, entering and visiting for the first time. Purchasing the full ritual, the school experience, and really enjoying it, and that led to a couple of things. One, growth in ETP but also growth and guest.

Satisfaction, which is what we're looking for.

Okay, last one for me, just a couple on the Tacon acquisition.

What was the EBITDA and revenue contribution from that in Q3 and just remind us again in terms of seasonality, how that flows throughout the year. And can you also just touch on integration, bringing that under the folds here and just kind of how that's gone.

I'll take the integration part that we could talk about some of the other things. So I have a good story for you, Tyler. The team, Andre Gomez and the team, they are obviously in the geothermal attraction water attraction business with two geothermal attractions at Tabacon. They recently visited Sky Lagoon and so you would think, where are the parallels there? Why would a team from Costa Rica go to Iceland to visit another geothermal attraction? We think there's a lot of learning in between those two locations. So from an integration standpoint, that was one of the first things we wanted to do. And just on a personal level, I'll share that, Andre Gomez saw snowfall for the very first time in his life and a few snowflakes. On the first day he was visiting. Everybody went to sleep a little jet lagged. They woke up the next morning to 30 centimeters. So for those of you that don't speak metric, that's well over 1 ft of snow. And they had a fantastic day in Iceland benchmarking Sky Lagoon and having some learning, going mutually back and forth between the Sky team and the team at Pelargon. And then that night the northern lights came out, so a pretty fantastic experience and so integration is going well. They have lots of really interesting growth ideas into the future. There's a high level of occupancy in that property and so we're working on the planning of some concepts. We have 570 acres of terrain that we can expand upon. One of the prototypes we're working on is more of a luxury villa product that maybe two couples or a larger family would use. And so we're going to be testing those. We're modeling them out in terms of how we might construct them, but those are some of the growth opportunities we're excited for. Integration is going really well. Team is fantastic, a ton of great energy. Bo, over to you. Yeah.

And going back to part of your question on the financial component of this, Tavione benefits from being much more of a year-round operation for us. It's profitable 10 months out of the year, from a seasonality perspective. I'd say the biggest quarter for them would be in Q1.

Q4 is also a pretty strong quarter, but broadly the rest really spreads out across the year.

What we noted at the beginning, when we first closed on the acquisition was an expectation for about $3 million of impact in the second half of 2025 and about a 10 year.

Full year or $1,010 million of you got full year impact, so another $7 million coming when you annualize that into next year.

Generally, that's all performing really well for the first couple months here you know we do disclose from a revenue perspective there's about $6.3 million of revenue in Q3, and we'll continue to break that out as we get into the future quarters here.

Okay, great. That's all for me.

Thank you.

Thank you.

The next question comes from the line of Alex Furman with lucid capital markets.

Your line is now open.

Hey guys, thanks for taking my question and congratulations on a really nice summer season. David, it sounds like you're targeting increased growth cap X levels for the next couple of years. You mentioned a couple of specific. Hotel projects, is it really, just a couple of refreshes that are are driving it? Would you say there's anything you're seeing, that that that may be driving you to to see maybe perhaps more than the $200 million of of CapEx projects and then you know you talked about a little while ago.

Yeah, you'll notice in the investor presentation, firstly, as we think of organic and build within our existing businesses, we've increased that amount with our view over the next 6 years that that amount is closer to $250 million which are all terrific opportunities within the four walls of our existing businesses. So, well established businesses with really Great operating teams, places that we know and we have great confidence. So those investments are among some of our most powerful, and we're able to accelerate those or control those depending on what's happening on the pipeline side.

For 2025 we're investing in between 38 and $43 million into those projects. Our opportunities into the future we'll be talking about in February of 206, but the ones that we mentioned are all ones that are heavily into planning. Jasper Skytram is in a public commentary period now.

We're working on the Bay of Gondola Abar village, and also for those that have been around pursuit, over the last decade, you may recall a terrific business called the Nadali Backcountry Adventure, which was a wildlife safari that took guests into Denali National Park. And for those unfamiliar with Denali, it's not a park you can drive into. You have to travel with an outfitter. So that's a terrific business that as the National Park Road comes back online, which you know they're targeting 26 for the trade and then 27 for the public, that's an example of the kind of investment that we'll be looking at. But we have plans that, again reflect opportunity across a broad swath of the business, and we're prepared to certainly work hard to take advantage of those.

Right, that's really helpful. Thanks, David, and then you know that that 9% increase in, ticket prices on the same sort of basis, that's obviously a really big number. Were there any particular attractions or collections that were driving it and just, ballpark big picture, can you give us a sense of, to what extent that that's on par with just how much attraction prices were going up with your competitors and in your market.

I'll start first with the team. I think the team globally across pursuit was well positioned to be anticipatory, to as demand increased, to be ready to adjust to the demand. So that might be managing inventory in terms of providing availability. It might be adjusting a price or simply adjusting the scale of an operation from, say, a labor standpoint or extending hours or any of those things that help drive overall performance. I would say everyone across all of the businesses perform really well. Obviously there are some strong, really strong performance across the Canadian Rockies, strong performance at Sky Lagoon, good performance in Alaska. And so just overall everybody performed really well.

As to our competitors, I think that with increased demand comes, increased participation from guests from all over the world, and I think everyone benefits.

So we tend not to look so much at what our competitors are doing, but more we're more focused on what we're doing and how do we make experiences better and then charge more for them.

Great, that's really.

Helpful.

Thank you very.

Much.

Thank you.

One moment see as I gather the next question.

My apologies. The next question is from the line of Eric Des Lauriers with Craig-Hallum Capital Group. You may begin.

Great, thanks for taking my questions and congrats on very strong Q3 here.

Most of my questions here are going to focus around timing. I just kind of want to Expectations and understand how you guys are thinking about it. So I was first with Forest Park Hotel and then Grouse Mountain Lodge, you call that second phase of Forest Park to be completed, in 26, 1st phase of Green Mountain completed in 26 as well. How many phases are currently anticipated for each of these and how should we think about the potential timing of future phases and, ultimately when should these two projects be.

Completed?

Yeah, great question. So I'll jump in on if you think of Forest Park and the Woodland wing, remember we built the Alpine Wing in 2022. We renovated half of the Woodland wing in 2025, and then we're underway on the renovation of the existing section of the hotel. So those things are happening now, and the goal is obviously to get things completed and ready as soon as we can into 206. And so that will take several months and through the beginning of the year and then with a plan obviously to be ready to reopen as soon as we can as close to the summer season.

The same thing applies in terms of Gross Mountain Lodge, the hotel for those that have been there, beautiful property, really beautiful location. There's two sections with front desk and have food and beverage facilities in the middle. So we're working on one wing while we operate one wing, and then we'll switch out. And so the benefit there is that we're able to keep the property open and keep hosting guests through this period and just manage these selective closures to be the most efficient with the business.

Okay, so it sounds like at least a Forest Park, excluding the Alpine wing, just two phases. The second one is already underway, and then Grouse Mountain, it sounds like, first phase is underway and should just be two phases, potentially completed in 206. Do I have that roughly correct here.

The Grossman on Lodge, the second phase will start after the summer season, and it will roll into 27. And one of the things I would be remiss in not mentioning is that we're also building a really beautiful event, an attraction pavilion. We think we've got a real opportunity that the competition in the wedding space in northern Montana, we think we've got an opportunity to really differentiate ourselves there for special events and weddings and occasions, and that drives hotel occupancy. It drives attraction visitation and the location in Whitefish is ideal. So we're building, I think, a really beautiful venue that will be very connected and I think just the best of what's available in northern Montana. So we're excited about that.

And then maybe just just to make sure the thing we're thinking about from a capital outlay perspective there's also Jasper Skytrend that we've been talking about that there's another you know meaningful multi-year project that we're on your way on.

Yeah, that was actually my follow-up here was just any commentary, understood this is, this Jasper Skyrim is a multi-year project.

Just any sense, could this be completed like this is 27, 28, 29, 30, just he's kind of help level set it for everyone on the line here just in terms of timing for Jasper Skyrim and understood that there's a lot of moving parts here and things can move one way or the other, but at least from my perspective, I'm not sure if this is like 27 or 29, so, if you could help us out with that, I'm sure that'd be.

Helpful.

Yeah, I appreciate the moving parts comment you made because that's exactly how it feels.

We're in a public commentary process now with Parks Canada. Everything is going well. We're working on the planning.

So, again, we'll be in a better position in February to give you a sense of timing. And so just at this point we're still working our way through the preliminary part of the process, but definitely it's something that we're targeting to begin. In 206 and go from there. So as to exact timing, stay tuned for February and we'll be able to fill you in.

Great, I'll look forward to that. Just last question from me here, kind of high level. So obviously you have a lot of, very significant investment opportunities before you both organically and M&A, you've cited the financial flexibility you have, you just completed a, transformational acquisition with Cabaone. Just trying to give comments on. The capacity to take on more transformational investments or acquisitions from management bandwidth perspective.

Just wondering how how full your plate is right now with integrating Tabione and what kind of, internal bandwidth you you potentially have to take on another transformational opportunity here.

Thank you.

You bet. Thanks, Eric. I think there's two things to consider, and I'll ask to speak to the financial capacity, but I'll start with our own internal capacity from a leadership standpoint.

This is a great team. This is a great team with capacity. It's a strong team. It has the ability, the wherewithal, and the energy to do more than one thing at the same time. And also what's important to know is that our financial systems are already, primarily fully integrated with Tabacon, and we're not trying to Control and dominate in each location. We're really trying to build with the team that's in place.

Seem to deliver really authentic hospitality while being part of something that is a powerful network of great hospitality leaders so they can deliver authentic hospitality. So the team in Costa Rica is going to be, leading and helping us grow the collection within. The whole Costa Rican environment. The team in Western Canada who, when you meet them, one of the things you realize right away, I guess there's a tremendous capacity for growth, and I would say the same in Montana, the same in Alaska, and across all of pursuit. So there's a lot of bandwidth internally. We've got the runway for it from an expertise and time and energy, and I'll let those speak to our capacity financially.

Yeah, unfortunately we're in a spot from a capacity as well with that to be optimistic here. I mean our current net leverage is around 0.7 times what we talked about is we have a target longer-term range of 2.5 to 3.5 times on that.

Within that today we have almost $275 million of liquidity available, so the flexibility is there from a financial perspective and from an operating perspective, and now it's about. Being opportunistic with the pipeline as we work through that.

That's great to hear. I appreciate the color and congrats again.

Thanks there.

Our next question comes from the line of Jeff Stantial Stifel You may begin.

Hey, great, good afternoon, everyone. Thanks for taking our questions and and congrats on a strong quarter. Maybe starting off, David, apologies if I if I missed this earlier, can you just remind us at this point in the year typically you know how far booked you are for 2026 and then as a corollary to that are you seeing any. Interesting or or discernible trends year on year, specifically, we obviously continue to see a bit more delayed behavior elsewhere in leisure. Are you seeing any evidence of that this far out or or anything else that's worth calling out.

Yeah, I, what I see, Jeff, and thank you for the question. What I see is positivity and, but important to remember it's early days, and so we have quite strong tour and travel demand coming from our tour and travel partners all over the world, so those indicators show strong demand for 2026.

And those itineraries. Our early booking pace for 2026 is ahead of prior years.

We are experiencing what we would describe as this continued tailwind and the drive into adventure, experiential, wellness, leisure travel in our types of activities and destinations.

You can see through the national park visitation over this summer that there was strong growth. It came in an interesting wave, and in July we were running pretty, even to the first expectation, and then there was an acceleration through August and September, just an overall demand.

Also, a reminder, we work and live in powerful, big, beautiful places where weather can be a factor. So when we think about 26, 1 of the things to just, remind ourselves of is that in 2025 we had very minimal disruptions with weather or, and you can have a forest fire that's 2000 miles away but it blows smoke into a particular geography for a couple of days, and that can affect visitation. So in 25 it was pretty smooth sailing. We always plan though for disruption and then manage around that. And then we know that we're going to have some impact from some of the closures on our capital projects, certain wings of hotels shut down while we're, opening things and rebuilding things, but those are temporal. They go quickly and then we're back in operation. So positivity for 26, we're still working on our plan. We'll be coming out with guidance in February and be able to articulate, I think a more clear picture of exactly where we're headed, but.

Yeah, we're looking at positivity from this standpoint, and Bo jump in if I missed anything.

No, I think that's all, Jeff, I mean, on your specific question, it's pretty early days on the actual booking pacing. It's certainly relevant enough that we're speaking to it, but there's a lot of time left to go and.

We'll have, better color on that in February as well as it starts to evolve. The tour and travel partners piece, yeah, is always like a helpful indicator in the meantime where it's, demand for taking allocations of rooms that they're then working to sell from there, but you can get a good sense for how much demand there is in that market from what they're seeing from their extended market.

That's great.

Thank you both for for all that color and then maybe hanging on one thing you said there with with regards to to weather David, can you just update us on on some of the progress that that's gone on in in terms of reopening. Some of the hotel inventory in Jasper that was unfortunately impacted by the wildfire and then just as more and more of these rooms come back online whether that's next year or the following, is your current expectation that this will be net dilutive to your business in the market given the additional competitive supplier or actually potentially net accretive just given, rising tide, more foot traffic benefiting the broader market, those kind of things.

Thanks.

Yeah, the latter. I really do believe that as our friends and neighbors rebuild their businesses and Jasper overall quality of lodging improves, that that will have a rising tide effect on everything in Jasper.

Interesting, Jasper, this summer, got to the same levels as 2023. And so overall visitation to Jasper National Park quickly recovered and it happened a little bit later than we originally anticipated, but came on strong in August and September. In Jasper itself, it's very heartening to see that some of our neighbors have got Foundations in the ground. They're beginning the reconstruction of their facilities. I don't expect anything will open in 206. It's more of a late 27 as these are complete rebuilds, from the ground up, but encouraged by what's happening, and I think just all of us should be impressed with the spirit and energy in the community of Jasper, the Mayor and Parks Canada. They've done a terrific job.

That's really great to hear. And then for one more question just apologies for this, it's going to be a really high level one, but sort of.

Circling back around to the effective ticket price performance, this quarter last quarter, and for many years now, we talked a lot about the pricing power, obviously a lot of pricing growth is driven more by improvements to the actual experience and guest satisfaction whether that's from actual CapEx dollars or just more kind of iterative adjustments. More hours, different aspects of experience things of that nature, but I'm curious, strategically, how much do you think about maybe the flip side of this which is more that notion of sort of affordability for the guests and the importance of keeping the value proposition for a park visit compelling versus other vacation alternatives.

Maybe it's another way to look at this like, if you look at the comp like really the comparable set here, you know how is that, value proposition, how do you see peers comps, etc. Pricing relative to your pricing and how much does that factor into your decision making and I realized that was kind of long winded and maybe a little meandering, but let me know if that that makes sense the way I framed.

It.

Yeah No, it's a great question. So where we start is we start with experience, and I get asked, I think every earnings call, are you going to continue to take price and where does that lead? I think the stronger question is, are you going to continue to improve experiences? And the answer is yes. And so an example at the van Gondola where you might have argued, well, we're already, at capacity and things are going well. One of the things the team did this summer was they revived the sunset program. And if you're familiar with, the Bow Valley, if you're in the valley floor, you can't really see the sunset. So there's a great experience that you travel up the gondola and all of a sudden the hours of the gondola's vitality are extended because there's programming that encourages you to come and see the sunset, and the views of that sunset from altitude are incredible.

And so there's an example of you really work on a product, you really work on an experience, you deliver it really well to guests, and then that drives the business outcome. And so everywhere we look for opportunities in a time of day and we price dynamically. So that if you are a more budget conscious traveler, you've got windows in a week that are very transparent that you can pick a more affordable product at a time of day where we know we have capacity, what we call white space that we're looking to fill and do it that way. So you TRY to have a range of products and what you're looking for is a strong net promoter score, strong guest reviews, strong referral from guests that visit us telling their friends what a great experience that they had, and that to us is a very important part and it's just as important as price.

That's right.

Thank you for all the help. I really appreciate it.

Thank you.

There are no further questions at this time. Again, if you'd like to ask the question, press star and then the number one on your tele keypad.

All right. Well, thank you, operator. This concludes our 2025 3rd quarter earnings call. Thanks to everyone who joined today. Please feel free to reach out should you have any further questions and have a great rest of the afternoon.

This concludes today's conference call. You may now disconnect.