Red Rock Resorts Inc (RRR) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to Red Rock Resorts' fourth-quarter and full-year 2023 conference call. (Operator Instructions)

下午好，歡迎參加 Red Rock Resorts 的 2023 年第四季和全年電話會議。（操作員說明）

Please note this conference is being recorded.

請注意，本次會議正在錄製中。

I would now like to turn the conference over to Stephen Cootey, Executive Vice President, Chief Financial Officer, and Treasurer of Red Rock Resorts. Please go ahead.

我現在將會議交給 Red Rock Resorts 執行副總裁、財務長兼財務主管 Stephen Cootey。請繼續。

Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Red Rock Resorts fourth-quarter and full-year 2023 earnings conference call. Joining me on the call today are Frank and Lorenzo Fertitta, Scott Kreeger, and our executive management team.

謝謝接線員，大家下午好。感謝您今天參加我們的 Red Rock Resorts 第四季和 2023 年全年財報電話會議。今天參加電話會議的有 Frank 和 Lorenzo Fertitta、Scott Kreeger 以及我們的執行管理團隊。

I'd like to remind everyone that our call today will include forward-looking statements under the Safe Harbor provisions of the United States federal securities laws. Developments and results may differ from those projected.

我想提醒大家，我們今天的電話會議將包括美國聯邦證券法安全港條款下的前瞻性聲明。事態發展和結果可能與預期有所不同。

During this call, we will also discuss non-GAAP financial measures. Definitions and complete reconciliation for these figures to GAAP, please refer to the financial tables in our earnings press release, Form 8-K, and investor deck, which were filed this afternoon prior to the call.

在本次電話會議中，我們也將討論非公認會計準則財務指標。這些數字的定義以及與 GAAP 的完全一致，請參閱我們今天下午在電話會議之前提交的收益新聞稿、表格 8-K 和投資者資料中的財務表格。

Also, please note that this call is being recorded.

另請注意，此通話正在錄音。

Before we get into any details, we are proud to say that the fourth quarter represented another strong quarter for the company by any measure. In terms of adjusted EBITDA, our Las Vegas operations had the best fourth quarter in the history of our company. And in terms of net revenue and adjusted EBITDA margin, our Las Vegas operations experienced second-best fourth quarter ever. As we look at our results for the full year, our Las Vegas operations experienced near record net revenue and adjusted EBITDA margin while achieving our best adjusted EBITDA in the history of our company.

在我們討論任何細節之前，我們很自豪地說，無論以何種標準衡量，第四季度都代表著公司又一個強勁的季度。就調整後 EBITDA 而言，我們拉斯維加斯業務的第四季度表現是公司歷史上最好的。就淨收入和調整後 EBITDA 利潤率而言，我們拉斯維加斯業務的第四季度表現是有史以來第二好的。當我們審視全年業績時，我們的拉斯維加斯業務經歷了接近創紀錄的淨收入和調整後 EBITDA 利潤率，同時實現了公司歷史上最好的調整後 EBITDA。

In addition to showing strong financial results, 2023 was a year in which we continued to validate our long-term growth strategy across the Las Vegas Valley by welcoming our Durango and Wildfire Fremont properties to the Red Rock family. The successful openings of these properties not only validates our long-term growth strategy within the Las Vegas Valley, it also demonstrates the power of our owned development pipeline and real estate bank, which now consists of over 441 acres of developable land positions in highly favorable areas across the Las Vegas Valley.

除了展現強勁的財務表現外，2023 年我們還歡迎杜蘭戈和野火弗里蒙特地產加入 Red Rock 家族，繼續驗證我們在拉斯維加斯谷的長期成長策略。這些物業的成功開業不僅驗證了我們在拉斯維加斯谷的長期成長策略，還展示了我們擁有的開發管道和房地產銀行的力量，該銀行目前擁有超過441 英畝的可開發土地位置，地理位置優越。整個拉斯維加斯谷地區。

Not only did we expand our physical footprint across the Valley in 2023, we continued to execute on our core strategy of reinvesting in our existing properties to deliver fresh and relevant amenities to our guests, all while remaining focused on best-in-class customer service. In executing this strategy, the team delivered another strong quarter across all business lines, with this quarter marking the 14th consecutive quarter that the Las Vegas operations delivered adjusted EBITDA margins in excess of 45%.

2023 年，我們不僅擴大了整個山谷的實體足跡，還繼續執行我們的核心策略，即對現有物業進行再投資，為我們的客人提供新鮮且相關的設施，同時繼續專注於一流的客戶服務。在執行此策略的過程中，該團隊在所有業務領域都實現了另一個強勁的季度，本季度標誌著拉斯維加斯業務連續第 14 個季度實現調整後 EBITDA 利潤率超過 45%。

Now let's take a look at our fourth-quarter and full-year results. With respect to our Las Vegas operations and with our Durango resort only open 27 days in the quarter, our fourth quarter net revenue was $459.4 million, up 9.5% from the prior year's fourth quarter. Our adjusted EBITDA was $220.3 million, up 6.5% from the prior year's fourth quarter. Our adjusted EBITDA margin was 48%, a decrease of 134 basis points from the prior year's fourth quarter.

現在讓我們來看看我們第四季和全年的業績。就我們的拉斯維加斯業務而言，由於杜蘭戈度假村本季僅開放 27 天，我們第四季的淨收入為 4.594 億美元，比去年第四季成長 9.5%。我們調整後的 EBITDA 為 2.203 億美元，比去年第四季成長 6.5%。我們調整後的 EBITDA 利潤率為 48%，比去年第四季下降了 134 個基點。

On a consolidated basis, excluding a one-time benefit received in the fourth quarter last year from Graton, our fourth-quarter net revenue was $462.7 million, up 9.3% from the prior year's fourth quarter. Our adjusted EBITDA was $201.3 million, up 6.1% from the prior year's fourth quarter. Our adjusted EBITDA margin was 43.5% for the quarter, a decrease of 133 basis points from the prior year's fourth quarter.

綜合來看，不包括去年第四季從 Graton 獲得的一次性收益，我們第四季淨收入為 4.627 億美元，比去年第四季成長 9.3%。我們的調整後 EBITDA 為 2.013 億美元，比去年第四季成長 6.1%。本季調整後 EBITDA 利潤率為 43.5%，比去年第四季下降 133 個基點。

Let's turn to our full-year performance. With respect to our Las Vegas operations, our full-year net revenue was $1.7 billion, up 3.6% from the prior year. Our full-year adjusted EBITDA was $818.8 million, up 1% from the prior year. And our full-year adjusted EBITDA margin was 47.9%, a decrease of 134 basis points in the prior year.

讓我們來看看我們的全年業績。拉斯維加斯業務全年淨收入為 17 億美元，比上年增長 3.6%。我們全年調整後 EBITDA 為 8.188 億美元，比上年成長 1%。我們全年調整後 EBITDA 利潤率為 47.9%，較上年下降 134 個基點。

On a consolidated basis, excluding the one-time benefit we received last year from Graton, our full-year net revenue was $1.7 billion, up 3.8% from the prior year. Our full-year adjusted EBITDA was $746 million, up 0.4% from the prior year. Our full-year adjusted EBITDA margin was 43.3%, a decrease of 143 basis points from the prior year.

綜合來看，排除去年我們從 Graton 獲得的一次性收益，我們全年淨收入為 17 億美元，比上年增長 3.8%。我們全年調整後 EBITDA 為 7.46 億美元，比上年成長 0.4%。我們全年調整後 EBITDA 利潤率為 43.3%，較上年下降 143 個基點。

In the quarter, we converted 73% of our adjusted EBITDA to operating free cash flow, generating $147.1 million or $1.41 per share. When looking at our 2023 cumulative free cash flow, we converted 59% of our adjusted EBITDA to operating cash flow, generating $437.6 million or $4.18 per share.

本季度，我們將調整後 EBITDA 的 73% 轉化為營運自由現金流，產生 1.471 億美元或每股 1.41 美元。在查看 2023 年累積自由現金流時，我們將調整後 EBITDA 的 59% 轉換為營運現金流，產生 4.376 億美元或每股 4.18 美元。

This significant level of free cash flow was either reinvest in our long-term growth strategy, including our Durango and Wildfire Fremont projects, existing property investments, or return to our stakeholders via debt paydown and dividends. As in past quarters, we continue to remain operationally disciplined and focused on our core local guests, as well as continue to grow our regional and national segments.

這種重要水準的自由現金流要麼再投資於我們的長期成長策略，包括我們的杜蘭戈和野火弗里蒙特專案、現有房地產投資，要麼透過債務償還和股息回報給我們的利害關係人。與過去幾季一樣，我們繼續保持營運紀律，專注於我們的核心本地客人，並繼續發展我們的區域和國家細分市場。

When comparing our results to last year's fourth quarter, we continue to see upside from strong visitation and play in our local, regional, and national segments. A strength, coupled with strong spend per visit across the majority of our carded play, allowed us to enjoy record fourth-quarter revenue profitability across our gaming segments.

將我們的結果與去年第四季的結果進行比較時，我們繼續看到本地、區域和國家細分市場的強勁訪問量和遊戲帶來的好處。憑藉我們的優勢，加上我們大部分卡牌遊戲的每次訪問的強勁支出，使我們能夠在整個遊戲領域享受創紀錄的第四季度盈利能力。

Turning to the non-gaming segments, both hotel and food and beverage continued to grow year over year and deliver record revenue and profitability in the fourth quarter. Our hotel division experienced its highest quarterly revenue and profit in our company's history, driven by our team's success on continuing to drive higher occupancy and ADR across our hotel portfolio.

轉向非博彩業務，酒店和餐飲業務繼續同比增長，並在第四季度創造了創紀錄的收入和盈利能力。我們的酒店部門取得了公司歷史上最高的季度收入和利潤，這得益於我們的團隊成功地繼續提高了我們酒店組合的入住率和平均房價。

Food and beverage experience its highest quarterly revenue and profit in our company's history, driven by higher average check and cover counts across our food and beverage outlets and the continued strength of our catering business. Our catering revenue continues to remain strong as this quarter represented the 10th consecutive quarter of double-digit year-over-year growth in this business line.

受我們食品和飲料店平均檢查和覆蓋數量增加以及餐飲業務持續強勁的推動，食品和飲料經歷了公司歷史上最高的季度收入和利潤。我們的餐飲收入持續保持強勁，本季代表該業務線連續第十個季度實現兩位數年增長。

With regard to our group sales, despite a difficult year-over-year comparison, we continue to see positive momentum in this business, driven by growth in both room nights and ADR as our pipeline continues to grow into 2024.

就我們的集團銷售而言，儘管同比比較困難，但隨著我們的管道繼續增長到 2024 年，在間夜數和平均房價增長的推動下，我們繼續看到該業務的積極勢頭。

As we begin the new year, we remain confident in our business, particularly with the addition of our Durango property. So we will continue to face challenging year-over-year comparisons throughout 2024, as well as face continuing disruption in our Palace Station property due to ongoing traffic work around the property during the first half of 2024.

在新的一年開始之際，我們對我們的業務仍然充滿信心，尤其是杜蘭戈房地產的增加。因此，2024 年我們將繼續面臨具有挑戰性的同比比較，並且由於 2024 年上半年該物業周圍正在進行的交通施工，我們的 Palace Station 物業將面臨持續的干擾。

On the expense and labor side, we remain operationally disciplined and continue to look for ways to become more efficient while continuing to provide best-in-class customer service to our guests and remaining the top employer of choice in the Las Vegas Valley. Despite a tougher year-over-year comparable, the company continues to manage its expenses, generate record financial performance, and return capital to our shareholders. These results demonstrate the resilience of our business model, the sustainability of our operating margins, and the ability of our management team to execute for our long-term growth strategy while taking a balanced approach to returning capital to our shareholders.

在費用和勞動力方面，我們保持營運紀律，並繼續尋找提高效率的方法，同時繼續為我們的客人提供一流的客戶服務，並保持拉斯維加斯谷首選雇主的地位。儘管同比比較困難，但該公司繼續管理其支出，創造創紀錄的財務業績，並向股東返還資本。這些結果證明了我們業務模式的彈性、營業利潤的可持續性以及我們的管理團隊執行長期成長策略的能力，同時採取平衡的方法向股東返還資本。

Also, during the quarter, we successfully opened our Durango Casino Resort on December 5 to rave reviews from our customers. Our newest destination is located off the 215 Expressway and Durango Drive in the Southwest Las Vegas Valley within the fastest growing area in the Las Vegas Valley. Very favorable demographic profile and no unrestricted gaming competitor by mile range.

此外，在本季度，我們於 12 月 5 日成功開業了杜蘭戈賭場度假村，贏得了客戶的好評。我們的最新目的地位於拉斯維加斯山谷西南部的 215 號高速公路和杜蘭戈大道旁，位於拉斯維加斯山谷發展最快的地區。非常有利的人口統計特徵，並且沒有不受英里範圍限制的遊戲競爭對手。

While we are still in early days, we are extremely pleased with our resorts opening. The property thus far has grown the surrounding market, has attracted new customers to our brand, and has been profitable since day one. As we've stated on past earnings calls, we expect to experience and have experienced some cannibalization across our core portfolio through the Durango opening. But this has been largely in line with our expectations and is expected to backfill given the strong long-term demographic growth profile of the Las Vegas Valley and our proximity of our properties to those high growth areas within the Valley.

雖然我們仍處於早期階段，但我們對度假村的開業感到非常滿意。到目前為止，該物業已經擴大了周邊市場，為我們的品牌吸引了新客戶，並且從第一天起就實現了盈利。正如我們在過去的財報電話會議上所說的那樣，我們預計透過杜蘭戈開業，我們的核心投資組合將會經歷並且已經經歷過一些蠶食。但這在很大程度上符合我們的預期，並且考慮到拉斯維加斯谷強勁的長期人口增長狀況以及我們的物業靠近矽谷內那些高增長地區，預計將回填。

Now let's cover a few balance sheet and capital items. The company's cash and cash equivalents at the end of the fourth quarter was $137.6 million and the total principal amount of debt outstanding was $3.3 billion, resulting in a net debt of $3.2 billion.

現在讓我們介紹一些資產負債表和資本項目。截至第四季末，該公司的現金和現金等價物為1.376億美元，未償債務本金總額為33億美元，淨債務為32億美元。

As of the end of the fourth quarter, the company's net debt to EBITDA interest coverage ratio was 4.3 times and 4.7 times, respectively. As we stated on our previous earnings calls, our leverage is peaking as we wrap up our Durango project as it's expected to ramp down if you look to delever to our long-term net leverage target of 3 times.

截至第四季末，公司淨負債與EBITDA利息保障倍數分別為4.3倍及4.7倍。正如我們在先前的財報電話會議上所說，隨著杜蘭戈計畫的結束，我們的槓桿率正達到頂峰，因為如果您希望將槓桿率降低到我們3 倍的長期淨槓桿率目標，那麼槓桿率預計會下降。

Capital spend in the fourth quarter was $187 million, which includes approximately $168.7 million of investment capital, inclusive of Durango, as well as $18.3 million in maintenance capital. For the full-year 2023, capital spend was $699.5 million, which includes approximately $615.4 million in investment capital, inclusive of Durango as well as $84.1 million in maintenance costs. As we look into our capital spending for 2024, we expect to spend between $140 million and $100 million spread between maintenance and investment capital.

第四季的資本支出為 1.87 億美元，其中包括約 1.687 億美元的投資資本（包括杜蘭戈）以及 1,830 萬美元的維護資本。2023 年全年資本支出為 6.995 億美元，其中包括約 6.154 億美元的投資資本（包括杜蘭戈）以及 8,410 萬美元的維護成本。當我們研究 2024 年的資本支出時，我們預期維護資本和投資資本之間的支出將在 1.4 億至 1 億美元之間。

During the quarter, along with the opening of Durango, we remain committed to strategically investing in our core strategy, offering new amenities to our guests in our existing locations. Over the past several months, we've successfully opened a new high-limit table room at our Green Valley Ranch property. We are pleased with the early results from this room, as well as all the other amenities we have opened up in 2023.

在本季度，隨著杜蘭戈的開業，我們仍然致力於對我們的核心策略進行策略性投資，在現有地點為客人提供新的設施。在過去的幾個月裡，我們在綠谷牧場酒店成功開設了一個新的高限額桌室。我們對這個房間以及我們在 2023 年開放的所有其他設施的早期結果感到滿意。

We expect to continue to invest in our existing properties in 2024, including a new high-limit slot room suites or new high-limit slot room as well as two new restaurant offerings at Green Valley Ranch and upgraded race and sports book, a partial casino remodel, and a new Yard House restaurant at Sunset Station.

我們預計到 2024 年將繼續投資現有物業，包括新的高限額老虎機房套房或新的高限額老虎機房以及 Green Valley Ranch 的兩家新餐廳以及升級的比賽和體育博彩、部分賭場改造，並在日落車站開設了一家新的Yard House 餐廳。

We are very excited to move beyond the challenges created by the construction of these properties and introduce these new amenities to our customers later this year. Like our other more recently introduced amenities, we expect these solid investments over the medium and long term.

我們非常高興能夠克服這些房產建設帶來的挑戰，並在今年稍後向我們的客戶推出這些新的設施。與我們最近推出的其他設施一樣，我們預計這些穩健的投資將在中長期內實現。

Consistent with our balanced approach to investing in our long-term growth strategy and returning capital to our shareholders, we are pleased to announce the company's Board of Directors has declared a special cash dividend of $1 per Class A share. Special dividend will be payable on March 4 to all shareholders of record as of the close of business on February 22. The dividend reflects our Board and management team's continued confidence in the resilience of our business model and the strength of the Las Vegas locals market.

根據我們平衡投資長期成長策略並向股東返還資本的方針，我們很高興地宣布，公司董事會已宣布派發每股 A 類股 1 美元的特別現金股息。特別股利將於3月4日支付給截至2月22日收盤時在冊的所有股東。此次股息反映了我們的董事會和管理團隊對我們的業務模式的彈性和拉斯維加斯當地人市場的實力的持續信心。

Lastly, in November 2023, we successfully completed the sale of approximately 73 acres at our former Fiesta Rancho and Texas station properties for approximately $58 million. Proceeds from this transaction were used to pay down debt and represent the continued execution of our long-term real estate development strategy as we look to reposition and upgrade our real estate portfolio for the next chapter of growth of station properties.

最後，2023 年 11 月，我們以約 5800 萬美元的價格成功完成了前嘉年華蘭喬和德克薩斯車站地產約 73 英畝的出售。這筆交易的收益用於償還債務，並代表我們長期房地產開發策略的繼續執行，因為我們希望重新定位和升級我們的房地產投資組合，以實現車站物業增長的下一個篇章。

Turning now to North Fork. As you may be aware, our management agreement with the tribe was approved by the Chairman of the National Indian Gaming Commission in early January, clearing one of the last hurdles to the development of this project, which will be located on the Tribe's 305-acre parcel trust land. The site is located north of Fresno, California, and offers convenient ingress and egress and excellent visibility from Highway 99.

現在轉向北福克。如您所知，我們與部落的管理協議已於 1 月初獲得印度國家博彩委員會主席的批准，掃清了該項目開發的最後障礙之一，該項目將位於部落佔地 305 英畝的土地上。包裹信託土地。該場地位於加州弗雷斯諾北部，進出方便，99 號高速公路視野極佳。

The design is near complete and we expect -- we are fully engaged in the process of retaining a general contractor and discussing the project with financiers. We are very excited to be making great progress on this project, and we will continue to provide updates on our growth program.

設計已接近完成，我們預計——我們正在全力參與保留總承包商並與金融家討論該項目的過程。我們非常高興能夠在這個項目上取得巨大進展，我們將繼續提供有關我們成長計劃的最新資訊。

In addition to our previously announced special dividend, on February 7, the company announced that the Board of Directors has declared a regular cash dividend of $0.25 per Class A common share payable for the first quarter of 2024. The regular dividend will be payable on March 29 to all shareholders of record as of the close of business on March 15. When we combine our special dividend with our regular declared first-quarter dividend, we expect to return approximately $136.6 million to our shareholders during the first quarter of 2024.

除了我們先前宣布的特別股利外，2月7日，公司宣布董事會已宣布派發2024年第一季每股A類普通股0.25美元的定期現金股利。定期股利將於 3 月 29 日支付給截至 3 月 15 日收盤時在冊的所有股東。當我們將特別股息與定期宣布的第一季股息相結合時，我們預計將在 2024 年第一季向股東返還約 1.366 億美元。

With our best-in-class assets and locations, coupled with our development pipeline of seven homesites located the most desirable locations in Las Vegas Valley, we have an unparalleled growth story that will allow us to double the size of our portfolio and capitalize on the very favorable long-term demographic trends and high barriers to entry that characterize the Las Vegas locals market.

憑藉我們一流的資產和地點，加上我們位於拉斯維加斯谷最理想地點的七個住宅區的開發管道，我們擁有無與倫比的成長故事，這將使我們能夠將投資組合規模擴大一倍，並充分利用非常有利的長期人口趨勢和高進入障礙是拉斯維加斯當地人市場的特徵。

We would like to recognize and extend our thanks to all of our team members for their hard work. Our success starts with them, and they continue to be the primary reason why our guests return time after time.

我們對所有團隊成員的辛勤工作表示認可和感謝。我們的成功始於他們，他們仍然是我們的客人一次又一次回來的主要原因。

I'd like to thank them again for voting us the top casino floor in Las Vegas Valley for the third consecutive year. And finally, we'd like to thank our guests for their loyal support in each of the last six decades.

我要再次感謝他們連續第三年將我們評選為拉斯維加斯谷頂級賭場樓層。最後，我們要感謝我們的客人在過去六年中每一年的忠誠支持。

Operator, this concludes our prepared remarks for today, and we are now ready to take questions.

接線員，我們今天準備的發言到此結束，現在我們準備好回答問題。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Joe Greff, JPMorgan.

喬‧格雷夫，摩根大通。

Good afternoon, guys. Thanks for taking my questions. Obviously, the results were better than we had consensus. We're expecting from an EBITDA perspective, EBITDA up -- a little over $13 million year over year.

下午好，夥計們。感謝您回答我的問題。顯然，結果比我們的共識好。從 EBITDA 的角度來看，我們預期 EBITDA 會年增率略高於 1,300 萬美元。

I'm assuming there is net cannibalization or cannibalization ex Durango. And there, I was hoping you can maybe sort of quantify maybe same-store EBITDA performance and then maybe also frame it with same-store EBITDA margin performance in the quarter or in December as we think about kind of modeling the ramp, or the anticipation of a ramp throughout the balance of 2024 between Durango and the rest of the portfolio.

我假設杜蘭戈存在淨蠶食或蠶食。在那裡，我希望您可以量化同店 EBITDA 績效，然後在我們考慮對成長或預期進行建模時，也可以將其與本季或 12 月的同店 EBITDA 利潤率績效結合Durango 和投資組合的其他部分在2024 年餘下時間將出現成長。

Yes, this is Steve. So before I hand over to Scott, is we haven't broken out properties in the past. And so I don't think we're going to be doing so in the future. But just for general note on cannibalization and how Durango is doing, I'll turn it back over to Scott.

是的，這是史蒂夫。所以在我交給斯科特之前，我們過去沒有列出過財產。所以我認為我們將來不會這樣做。但對於同類蠶食以及杜蘭戈的表現的一般說明，我會將其轉回給斯科特。

Yes. Hi, Joe. As far as Durango goes, we've opened up and the property is performing above our expectations. We're super happy with how we opened up, the team's effort across the whole employee base of the company. We want to extend our thanks for all of the support. Things are going great.

是的。嗨，喬。就杜蘭戈而言，我們已經開業，該物業的表現超出了我們的預期。我們對我們的開放方式以及整個公司員工團隊的努力感到非常滿意。我們要感謝所有的支持。事情進展順利。

When we talk about cannibalization specifically, we're not experiencing any different levels of cannibalization than we forecasted in previous calls. So we think that it's right on track. And I think that it's important to note that we've always says as these properties ramp. And that our focus in the early days with Durango is provide great quality service, quality product. And we're working through the efficiencies of Durango and everything is really trending as we expected.

當我們具體談論蠶食時，我們並沒有經歷與先前電話會議中預測的任何不同程度的蠶食。所以我們認為它走上了正軌。我認為重要的是要注意，我們總是說隨著這些屬性的增加。我們在杜蘭戈成立之初的重點是提供優質的服務和優質的產品。我們正在努力提高杜蘭戈的效率，一切都按照我們的預期發展。

Great. Thanks. And I was hoping maybe you can give us some sort of perspective for the locals market and the benefits from the festivities that have started around the Super Bowl and continuing through the weekend. How much of a lift do you think that is for the properties surrounding the strip?

偉大的。謝謝。我希望您能給我們一些關於當地人市場的看法，以及從超級盃前後開始並持續到週末的慶祝活動的好處。您認為這對於該地帶週邊的房產有多大的提升？

This is Lorenzo. And I think everybody around here is pretty positive and pretty excited about the Super Bowl event. It feels like it's shaping up to be one of the, if not maybe, best weekend, biggest weekend from big event standpoint that Las Vegas has seen, which is obviously quite a statement.

這是洛倫佐。我認為這裡的每個人都對超級盃賽事非常積極和興奮。從拉斯維加斯大型賽事的角度來看，這感覺就像是，即使不是可能，也是最好的周末、最大的周末之一，這顯然是一個相當不錯的聲明。

We'll say that we're definitely feeling the impact from a regional standpoint, inbound from guests that are coming in. We're seeing it in the hotel side and also on the casino side relative to people wanting to come in for the game. So even more so, obviously, Super Bowl is always a bit weekend in the Las Vegas. But I would say that this seems to be shaping up to be bigger than a normal Super Bowl weekend for the city and for us per se.

我們會說，從區域角度來看，我們確實感受到了來自進來的客人的影響。我們在酒店方面和賭場方面都看到了與想要進來玩遊戲的人相關的情況。更重要的是，顯然，超級盃總是在拉斯維加斯度過一個週末。但我想說，對於這座城市和我們本身來說，這似乎比正常的超級盃週末更重要。

And then one final question, if I may. Steve mentioned about some disruption in the first half of this year at Palace Station. Can you sort of help us understand and maybe think about an impact there? And was there anything that commenced in the fourth quarter that generated some disruption that obviously we couldn't see in the aggregated reported results?

如果可以的話，還有最後一個問題。史蒂夫提到今年上半年宮殿車站出現了一些中斷。您能否幫助我們理解並思考那裡的影響？第四季開始的任何事情是否產生了一些我們在匯總報告結果中顯然看不到的干擾？

Hey, Joe. This is Scott again. We'll break it down by property. Palace is undergoing around its perimeter road work. That road work was expected to be done by the end of the year and is now been extended into -- all the way to May based on complications of underground and different scheduling issues. So we continue to try and to mitigate the impacts to Palace, but it is pretty disruptive getting in and out of the property.

嘿，喬。這又是斯科特。我們將按屬性對其進行細分。宮殿週邊正在進行道路施工。該道路工程預計將於今年年底完成，但由於地下的複雜性和不同的調度問題，現在已延長至五月。因此，我們繼續努力減輕對 Palace 的影響，但進出宮殿會造成相當大的破壞。

On another note, as we see this as positive, we continue to reinvest in the properties. We've seen great success with our new high-limit rooms and new amenities and GVR has a slight impact when it comes to the slot high-limit room, the table high-limit room, which we've opened up the table high-limit room. We're a couple of weeks away from opening up the slot high-limit room and then offering two new restaurants.

另一方面，由於我們認為這是積極的，因此我們繼續對這些房產進行再投資。我們看到新的高限額房間和新設施取得了巨大成功，而 GVR 對老虎機高限額房間、牌桌高限額房間產生了輕微影響，我們已經將牌桌高額開放了-限制房間。距離開放老虎機高限額房間並提供兩家新餐廳還有幾週的時間。

So while there's some short-term disruption, the upside is we've been very successful with this formula in other properties like Red Rock. So we look forward to the upside of that.

因此，雖然存在一些短期幹擾，但有利的一面是，我們在 Red Rock 等其他房地產項目中採用了這一模式，並取得了非常成功的成功。所以我們期待它的好處。

Same token at Sunset, we basically have gone in and we're finding huge success in the recent sportsbook being reformatted to more of a viewer-style format than the traditional race and sportsbook were about over-the-counter wagering.

同樣的道理，在日落，我們基本上已經進入了，我們發現最近的體育博彩取得了巨大的成功，它被重新格式化為更多觀眾風格的格式，而不是傳統的比賽和體育博彩的場外投注。

And so reconfiguring our race and sportsbooks to be more experiential has been a huge success.

因此，重新配置我們的比賽和體育博彩以使其更具體驗性已經取得了巨大的成功。

And the great success we've seen at Durango, what we did there and trying to bring Sunset up to that level.

我們在杜蘭戈看到了巨大的成功，我們在那裡做了什麼，並試圖將 Sunset 提升到那個水平。

Yes. So we're investing in a new race and sportsbook, a new casino bar, and new high-limit room area for Sunset. So in the interim, through the remainder of the spring, we'll be under construction there. We also are adding a Yard House restaurant in that expansion and remodel. So once we get through that, it's going to be a great add to the property.

是的。因此，我們正在投資新的比賽和體育博彩、新的賭場酒吧以及新的日落高限額房間區域。因此，在此期間，在春季剩餘的時間裡，我們將在那裡進行施工。我們還在擴建和改建中增加了一家 Yard House 餐廳。因此，一旦我們解決了這個問題，這將是房產的一個很好的補充。

Thank you, guys.

感謝你們。

Carlo Santarelli, Deutsche Bank.

卡洛桑塔雷利，德意志銀行。

Hey, guys. Understanding you don't want to get into property-level metrics, I guess my question was less around numbers and more maybe around experience, so to speak. If you kind of look at your margin profile throughout 2023 from a same-store basis, your margins were kind of down in that 100 to 200 basis point range over the 2Q and the 3Q.

大家好。理解你不想進入財產層面的指標，我想我的問題不是圍繞著數字，而是更多圍繞經驗，可以這麼說。如果您以同店為基礎查看 2023 年全年的利潤狀況，您會發現第二季和第三季您的利潤率下降了 100 到 200 個基點。

4Q actually improved on despite the opening. So is it fair to assume at this stage that that kind of in those 27 days, that property, Durango specifically, did not necessarily have a meaningful drag on your margins? And is there anything perhaps one-time in nature that we need to be cognizant of as we look out to 2024 as it pertains to the margin profile of that asset?

儘管開業，第四季度實際上有所改善。那麼，現階段是否可以公平地假設，在這 27 天內，該房產（特別是杜蘭戈）不一定會對您的利潤產生重大拖累？當我們展望 2024 年時，是否有任何與該資產的利潤狀況相關的、可能是一次性的事情需要我們注意？

Look, in Durango, I have to say it's one of the best openings that I've seen in terms of the guest experience. And again, like Scott said, special thanks to the other six properties and their executive teams and team members that still then, you know, anywhere and everywhere that needed to make that as great an experience for the customer as possible.

看，在杜蘭戈，我不得不說，就賓客體驗而言，這是我見過的最好的開業之一。再次，正如斯科特所說，特別感謝其他六家酒店及其執行團隊和團隊成員，您知道，無論何時何地，他們仍然需要為客戶提供盡可能出色的體驗。

You know, it's very difficult at the beginning when we opened Durango, the visitation was off the charts. I mean, it's very hard to keep up and make it a good experience. I think our team did that. While no opening is perfect, this is as close as I've seen to a perfect one.

你知道，杜蘭戈開業之初非常困難，訪客人數破紀錄。我的意思是，要跟上並使其成為一次良好的體驗是非常困難的。我認為我們的團隊做到了。雖然沒有完美的開場，但這是我見過的最接近完美的開場。

So take that initial three weeks, you have to realize everybody's calm and everybody wants to see it. There's a tremendous amount of trial. And just like we've seen with every other property that we've opened, after that initial wave of the opening, you're going to find out where your natural market settles into, right?

因此，在最初的三週裡，你必須意識到每個人都很平靜，每個人都希望看到這一點。有大量的試驗。就像我們在我們開設的所有其他酒店中看到的那樣，在第一波開業之後，您會發現您的自然市場在哪裡，對嗎？

And that's the stage that we're in right now. I think we're settling into what is going to be like a base level of business. And then over the next couple of quarters, we're going to start working to get more efficiencies out of that property. But the first focus for us, there was to have a smooth opening, have good word-of-mouth on the street, have people want to go there, and we'll worry about getting the efficiencies over the course of the next two to three quarters.

這就是我們現在所處的階段。我認為我們正在進入基本的業務水平。然後在接下來的幾個季度中，我們將開始努力提高該資產的效率。但我們的首要關注點是開業順利，在街上有良好的口碑，讓人們想去那裡，我們將擔心在接下來的兩年中如何提高效率四分之三。

Do you have anything else to add?

您還有什麼要補充的嗎？

I would just say I'll go back to -- Frank said it well with Durango. I'll just go back to the fundamentals, the key fundamentals of acquisition cost being very stable in the market. Our cost of goods sold year over year and quarter actually went down. Our labor as a percentage of revenue went down.

我只想說我會回到-弗蘭克對杜蘭戈說得很好。我將回到基本面，收購成本在市場上非常穩定的關鍵基本面。我們的銷售成本年比和季度實際上有所下降。我們的勞動力佔收入的百分比下降了。

So the teams out there at the properties are doing a super job of managing some of the key expense areas. We do still struggle a bit. With energy costs, we are up about $1 million in electrical costs for the quarter. But otherwise, as we go forward, absent what Frank said, the base of our expenses looks pretty stable.

因此，飯店的團隊在管理一些關鍵費用領域方面做得非常出色。我們確實還有些掙扎。由於能源成本，本季的電力成本增加了約 100 萬美元。但除此之外，隨著我們的前進，如果沒有弗蘭克所說的話，我們的支出基礎看起來相當穩定。

And just a quick follow-up on that. Previously, you guys had talked about given the demographic and the location of the asset, you anticipated the table game side to be a little bit greater of the mix relative to slots than most other properties. Has kind of that held through thus far?

對此進行快速跟進。此前，你們曾討論過，考慮到資產的人口統計和位置，你們預計桌面遊戲方面相對於老虎機的組合會比大多數其他資產更大一些。到目前為止，這種情況持續了嗎？

This is Lorenzo, Carlo. Yes, I mean, I think if you kind of take a look around the property, I mean, obviously, we said we're super happy with the way things are going. If you asked us, what are we absolutely surprised about? But maybe a little bit. The table games business has been -- the drop has been but better than we certainly project it.

這是洛倫佐，卡洛。是的，我的意思是，我想如果你環顧一下這處房產，我的意思是，顯然，我們說我們對事情的進展非常滿意。如果你問我們，我們對什麼感到絕對驚訝？但也許有一點。桌上遊戲業務一直在下降，但比我們預計的要好。

I would say that, in addition to that, the food with customers, kind of reaction to overall food and beverage, particularly the food hall, it's just been a smash Grand Slam hit so far, doing big volumes, big numbers, as well as people's reaction to the sportsbook connected to the George Restaurant with the indoor/outdoor feature and restaurant basically inside of the sportsbook. So people have reacted nicely to the different amenities. But yes, given the demographic in the area, table drop is stronger than we expected initially.

我想說的是，除此之外，顧客的食物，對整體食品和飲料的反應，特別是美食大廳，到目前為止，它剛剛成為大滿貫，銷量很大，數量很大，而且人們對與喬治餐廳相連的體育博彩的反應，該餐廳具有室內/室外功能，餐廳基本上位於體育博彩內部。因此，人們對不同的便利設施反應良好。但是，是的，考慮到該地區的人口結構，餐桌下降幅度比我們最初預期的要強。

Probably you can refer to the December volume market share report to kind of give you an indication but that is never perfect. Just given the scheduled drops to solve it in tables outperformed in December.

也許您可以參考 12 月的銷售市場份額報告來為您提供一些指示，但這絕不是完美的。剛剛考慮到 12 月的表中表現優於預期的計劃下降來解決這個問題。

Yes. No. For sure. Just with that data sometime, especially around new year's season, that could be kind of careful what you're looking at. But I appreciate that, guys. Thank you very much.

是的。不。一定。有時候，尤其是在新年期間，只要有了這些數據，你就可以對你所看到的內容保持謹慎。但我很感激，夥計們。非常感謝。

Shaun Kelley, Bank of America.

肖恩凱利，美國銀行。

Hi, good afternoon. Thanks for taking my question. Just hoping -- as you kind of think a little bit forward about the natural maturation curve here,

嗨，下午好。感謝您提出我的問題。只是希望——當你稍微考慮一下這裡的自然成熟曲線時，

I'm just struggling a little bit to kind of get a sense of, did this open better than sort of run rate expectation or typically we would expect that property to build and stabilize over time? Maybe a combination of both. But I guess trajectory-wise, I'm just getting a few mixed signals, and I'm trying to kind of get my arms around, is both the revenue and the EBITDA contribution of what we're seeing so far better?

我只是有點想了解一下，這個開盤是否比運行率預期更好，或者通常我們期望該房產隨著時間的推移而建設和穩定？也許是兩者的結合。但我想就軌跡而言，我只是收到了一些混合訊號，我正試圖了解我們迄今為止所看到的收入和 EBITDA 貢獻是否更好？

And we expect that to normalize a little bit down or actually is there just an implied ramp up, which I think many of us would expect having look at the casino openings in the past? Just any directional help just given -- again, the headline results here were excellent and clearly imply some great numbers for the property or the portfolio.

我們預計這種情況會稍微下降，或者實際上只是隱含的上升，我想我們很多人在看看過去的賭場開業情況後都會期望這種情況？只是剛剛給出的任何方向性幫助 - 再說一次，這裡的總體結果非常出色，並且顯然意味著該房產或投資組合的一些巨大數字。

Thanks, Shaun. I'll start and I'll hand over the team. But I think that the opening, as Frank said, was pretty damn near close to perfect. But we also said, our focus was on guest service. Our focus was on execution and the property (inaudible).

謝謝，肖恩。我將開始並移交團隊。但我認為，正如弗蘭克所說，這個開頭非常接近完美。但我們也說過，我們的重點是賓客服務。我們的重點是執行和財產（聽不清楚）。

And again, as Frank said, the team did a fantastic job. We view this as a 40-year asset. And so right now, as we're starting to find our footing in terms of what's our normal business, we're going to be in their finetuning Durango to make this the most efficient property that we can.

正如弗蘭克所說，該團隊再次做得非常出色。我們將其視為一項可使用 40 年的資產。因此，現在，當我們開始在正常業務方面找到立足點時，我們將對杜蘭戈進行微調，使其成為我們所能做到的最高效的房地產。

And in addition, you know, a, the cannibalization we're expecting to backfill the core properties, just given the favorable long-term demographic profile in Las Vegas. But we've always said this is a several year ramp to get the stabilization. And so we think we're well on track to hit that target.

此外，考慮到拉斯維加斯有利的長期人口狀況，我們預計會進行蠶食來回填核心物業。但我們總是說，要達到穩定需要幾年的時間。因此，我們認為我們正在順利實現這一目標。

Great. Thanks, Stephen. And maybe just one smaller one, but just sort of a tactical one around the way preopening works here. Can you just give us a sense -- was there some loaded costs in terms of when you typically bring employees on the line, but before the actual opening? Did you incur some of those expenses? Or is the expense base really reflective of really just from December 5 on? Or was again, there are some expenses incurred in the quarter prior to opening that might have -- just in the way that this happens. I think I've seen a little bit of both over the years. I'm just curious on how you did it.

偉大的。謝謝，史蒂芬。也許只是一個較小的問題，但只是一種圍繞著預開放工作方式的戰術問題。您能否給我們一個感覺——在您通常讓員工上線時（但在實際開業之前）是否存在一些負擔成本？您承擔了其中一些費用嗎？或者支出基數真的反映了 12 月 5 日之後的情況嗎？或者，在開業之前的季度可能會產生一些費用——就像這種情況發生一樣。我想這些年來我對這兩種情況都有所了解。我只是好奇你是怎麼做到的。

We incurred about $20 million of preopening expenses in Q1 -- Q4, and that was a little bit larger than we anticipated due to the delay. If you recall, we moved the opening from late November to December 5. So we had to incur additional preopening expenses, but those are a little below the line and we wouldn't expect any going forward with regard to Durango.

我們在第一季至第四季產生了約 2000 萬美元的開業前費用，由於延遲，這比我們的預期要高一些。如果你還記得的話，我們將開業時間從 11 月下旬移至 12 月 5 日。因此，我們必須承擔額外的開業前費用，但這些費用略低於底線，我們預計杜蘭戈不會有任何進展。

But just to be clear, were there any staff costs and that was in that kind of period of buildup as employees are joining in that period? (multiple speakers) There aren't in pre-opening? Is there's just not -- that initial few weeks beforehand?

但需要澄清的是，是否存在任何員工成本，並且是在員工加入的那段時期內產生的？（多人發言） 沒有在預開場嗎？難道就沒有──提前幾週嗎？

Everything is captured and approved.

一切都被捕獲並得到批准。

Okay. Thank you very much. Appreciate that.

好的。非常感謝。感謝。

Jordan Bender, Citizens JMP.

喬丹·本德，公民 JMP。

Great. Thanks for taking my question. Steve, you kind of alluded to it in some of the prepared remarks, but with free cash flow ramping, you're turning to the special dividend in the first quarter, but you've also talked about debt reduction kind of following the opening in Durango.

偉大的。感謝您提出我的問題。史蒂夫，您在一些準備好的演講中提到了這一點，但隨著自由現金流的增加，您將轉向第一季度的特別股息，但您也談到了在杜蘭戈。

Assuming that you do turn to debt reduction using that free cash flow, can you maybe give us a perspective of the potential cadence of the reduction until we do hear something further on incremental projects coming from the company. Thank you.

假設您確實利用自由現金流來減少債務，您能否給我們一個關於減少債務的潛在節奏的看法，直到我們確實聽到有關公司增量項目的進一步消息。謝謝。

I think that the way the Board views this is it's quarter by quarter. Like we've always said, we're going to have a peak leverage when Durango wraps up, which is around this time and then we're going to slowly march down toward our long-term target to 3 times net.

我認為董事會的看法是逐季進行。就像我們一直說的那樣，當杜蘭戈交易結束時，我們的槓桿率將達到峰值，大約在這個時候，然後我們將慢慢朝我們的長期目標邁進，達到淨值的 3 倍。

That said, we have always said we're going to take a balanced view of returning capital. So we spent the last two years investing in Durango, and it's off to a great start. And given the confidence in the business model and the way Durango is going, we felt now is the time to issue a special dividend and balance that --

也就是說，我們一直表示我們將對資本返還採取平衡的看法。因此，我們在過去兩年裡投資了杜蘭戈，這是一個好的開始。鑑於對商業模式和杜蘭戈的發展方向充滿信心，我們認為現在是時候發行特別股息和餘額了--

I think maybe your question was more towards new or additional projects coming online. I think our thoughts are to basically take '24, get Durango fine-tuned, delever the company, and we're going to be in a position then in '25 to evaluate which new projects we should be bringing online.

我想也許你的問題更多的是關於上線的新的或額外的項目。我認為我們的想法基本上是在 24 年對 Durango 進行微調，對公司進行去槓桿化，然後我們將在 25 年評估我們應該上線哪些新項目。

Understood, thanks. And then just on the follow-up, your free cash flow conversion, just about 60% for the year. Is that kind of the right level to think about moving forward?

明白了，謝謝。接下來，你的自由現金流轉換率今年大約是 60%。這是考慮前進的正確水平嗎？

Yes, it is. Because that's fully loaded it. I think 4Q is a little bit skewed to the higher end because there wasn't any tax payments or estimated tax payments at that quarter.

是的。因為那已經滿載了。我認為第四季有點偏向高端，因為該季度沒有任何納稅或預計納稅。

Thank you.

謝謝。

(inaudible) mandatory testing.

（聽不清楚）強制測試。

100%, we have mandatory debt payments and maintenance cap.

100%，我們有強制性的債務償還和維持上​​限。

Steve Wieczynski, Stifel.

史蒂夫·維琴斯基，斯蒂菲爾。

Hey, guys, good afternoon. So Steve or Scott, if I could maybe ask I mean, Durango has been kind of beat dead here a little bit. But if I could ask one more on Durango, just wondering maybe what new sign-ups for your loyalty program look like relative to your expectations? And I'm just trying to get an idea of how the property has been helping to bring new customers into your ecosystem if all that makes sense.

嘿，夥計們，下午好。所以史蒂夫或斯科特，如果我可以問的話，我的意思是，杜蘭戈在這裡有點被打敗了。但如果我能再問一個關於杜蘭戈的問題，只是想知道，相對於您的期望，您的忠誠度計劃的新註冊情況是什麼樣的？我只是想了解該物業如何幫助將新客戶帶入您的生態系統（如果這一切有意義的話）。

Yes. (inaudible) for the quarter, our new sign-ups are up high single digits for the quarter. And Durango had a -- in the limited time it was open for the quarter did have a definite impact.

是的。 （聽不清楚）就本季而言，我們的新註冊人數在本季出現了高個位數成長。杜蘭戈在本季開放的有限時間內確實產生了一定的影響。

Okay. Thanks, guys. Appreciate that. And then, Steve, look, we fully understand you guys don't provide formal guidance for the year. But as we think about 2024, is there anything we need to be thinking about, whether it's in terms of headwinds or tailwinds for this year? Or anything that would disrupt the normal cadence for how the year should normally play out? And then maybe also just wondering what you're thinking about for corporate expenses this year.

好的。多謝你們。感謝。然後，史蒂夫，聽著，我們完全理解你們沒有提供今年的正式指導。但當我們思考 2024 年時，有什麼我們需要考慮的，無論是今年的逆風還是順風？或者有什麼會擾亂這一年的正常節奏的事情嗎？然後也許還想知道您今年對公司開支的看法。

So to kind of address that, I mean, as Scott kind of walk us through some of the construction disruption, both. Yes, I'll do the new amenities at Sunset and Green Valley as well, as does work at Palace, which affect us during the first half of the year. And then we've -- obviously, Durango, we expect to continue to ramp up.

因此，為了解決這個問題，我的意思是，史考特帶領我們經歷了一些施工中斷。是的，我也會在 Sunset 和 Green Valley 做新的設施，就像在 Palace 的工作一樣，這會在今年上半年影響我們。然後我們——顯然，杜蘭戈，我們預計會繼續增加。

As far as corporate, I think roughly around $19 million where we ended up in Q4 is right where it would be the rest of the year per quarter.

就企業而言，我認為我們第四季度的收入約為 1900 萬美元，與今年剩餘時間每季的收入水平相當。

Okay. Perfect. Thanks, guys. Appreciate it.

好的。完美的。多謝你們。欣賞它。

Barry Jonas, Truist Securities.

巴里·喬納斯 (Barry Jonas)，Truist 證券公司。

Hey, guys. The Culinary Union contract renewals saw pretty large increases across the strip. Wondering if that's having any impact on your revenues. And should we expect any indirect pressures on your labor costs? Thanks.

大家好。烹飪聯盟的續約合約在整個地帶都有相當大的成長。想知道這是否對您的收入產生任何影響。我們是否應該預期你們的勞動成本會受到任何間接壓力？謝謝。

This is Scott. I'll take it and maybe someone else can jump in. Let's start by just saying and reiterating what we've said in the past. We think we're kind of partner of choice for a lot of reasons, one because of our culture; and two, because of our benefits package, we think, is very competitive in the marketplace.

這是斯科特。我會接受它，也許其他人可以加入。讓我們先說說並重申我們過去說過的話。我們認為我們是首選合作夥伴有很多原因，一是因為我們的文化；二是因為我們的文化。第二，我們認為我們的福利待遇在市場上非常有競爭力。

We had a very successful hiring process for Durango so we tested that in the market. And we found that our compensation package and benefits was very competitive. That being said, we want to remain competitive. And with the increases that will come with the new contracts, we're definitely going to have to look and make sure that we're competitive. And so there will be some consideration there.

我們為杜蘭戈制定了非常成功的招募流程，因此我們在市場上進行了測試。我們發現我們的薪酬方案和福利非常有競爭力。話雖這麼說，我們希望保持競爭力。隨著新合約的增加，我們肯定必須審視並確保我們具有競爭力。所以那裡會有一些考慮。

But as Steve likes to say all the time, you know, all of those 60,000-plus Culinary workers that Scott raises are also a lot of our customers. So there's a waterfall effect there that benefits us on the other side.

但正如史蒂夫一直喜歡說的那樣，你知道，史考特培養的所有 60,000 多名烹飪工人也是我們的許多客戶。因此，那裡存在瀑布效應，這對我們的另一邊也有利。

Got it. Got it. And then just for a follow-up, can you talk a little bit about your tavern strategy here and how you're thinking about organic growth versus M&A?

知道了。知道了。作為後續行動，您能在這裡談談您的酒館策略以及您如何考慮有機增長與併購嗎？

Yes. So taverns are an interesting new segment that we're looking at. It's a very micro local segment. It's a neighborhood segment. It has a different customer profile that we find attractive and we find that the investment returns on taverns is pretty attractive.

是的。因此，酒館是我們正在關注的一個有趣的新領域。這是一個非常微觀的本地部分。這是一個鄰裡部分。它有不同的客戶群，我們認為這些客戶群很有吸引力，我們發現酒館的投資回報也相當有吸引力。

We have a strategy where we'd like to create a penetration in high net-worth, high growth areas of the Valley. Kind of akin to our large site development strategy. And, look, we look at everything, whether that's an acquisition or a ground-up or a build-to-suit situation. But we always find that having our own footprint to design a project the way we want it designed in a new emerging area is probably our method of choice. But we'll look at everything that makes sense..

我們有一個策略，希望滲透到矽谷的高淨值、高成長地區。有點類似我們的大型網站開發策略。而且，看，我們會考慮一切，無論是收購、從頭開始還是客製化。但我們總是發現，擁有自己的足跡，以我們希望的方式在新興領域設計專案可能是我們選擇的方法。但我們會看看一切有意義的事..

Perfect. Thank you.

完美的。謝謝。

Dan Politzer, Wells Fargo.

丹‧波利策，富國銀行。

Hey, good afternoon, everyone. Thanks for taking my questions. I was more curious, just in general in the market, obviously a big new property opening, you're going to see a pickup in promotional spend. I guess any detail on what you saw over the course of the quarter and into January and maybe over the past week or so in terms of the market and remaining rational.

嘿，大家下午好。感謝您回答我的問題。我更好奇的是，總的來說，在市場上，顯然是一個大型新酒店開業，你會看到促銷支出增加。我猜想您在本季度和一月份以及過去一周左右所看到的市場和保持理性方面的任何細節。

This is Scott. Where we are, it's more of the same. So it's stable and you have a pretty rational market. You do have a lot of outliers that have been promotional and remain promotional in strategy. There's not been any noticeable change in the market that has affected us.

這是斯科特。我們所在的地方，情況更相似。所以它是穩定的，你有一個相當理性的市場。你確實有很多異常值，這些異常值已經在策略中進行了促銷並保持促銷狀態。市場沒有任何明顯的變化影響我們。

Got it. And then just for my follow-up, I think you guys have talked about that 20% return on capital, getting there for Durango I believe the course of three years. But given the strength of the opening and the momentum out of the gate, I mean, is there any difference in cadence as to how you're thinking about that?

知道了。然後，就我的後續行動而言，我想你們已經談到了 20% 的資本回報率，我相信杜蘭戈需要三年的時間才能實現這一目標。但考慮到開局的強度和走出大門的勢頭，我的意思是，你對此的看法在節奏上有什麼不同嗎？

And then just along those lines, is there any nuance here in terms of gaming versus nongaming mix at that property, I just noticed overall for the portfolio, it was a little different than typical seasonality. Thanks.

然後，沿著這些思路，該物業的遊戲與非遊戲組合方面是否存在任何細微差別，我只是注意到整體投資組合，它與典型的季節性略有不同。謝謝。

This is Steve. I think the ramping profiles remains the same. These are very early days. We're very happy with the opening, but there's still a lot of --

這是史蒂夫。我認為斜坡曲線保持不變。現在還處於非常早期的時期。我們對開業感到非常滿意，但仍有許多問題--

Still settling in.

還在安頓下來。

Still settling in. In terms of the mix, it should follow -- it should match our system -- our current system mix.

還在安頓下來。就組合而言，它應該遵循——它應該匹配我們的系統——我們當前的系統組合。

Maybe a little higher gaming.

可能玩的比較高一點。

Higher gaming just given -- yeah.

剛剛給了更高的遊戲 - 是的。

Limited hotel rooms.

飯店房間有限。

Understood. Thanks so much.

明白了。非常感謝。

Stephen Grambling, Morgan Stanley.

史蒂芬‧格蘭布林，摩根士丹利。

Hey, everyone. Just going to reask a bit on the cannibalization comment. I guess any sense for how quickly you think you could backfill? And did you take any actions or feel like you needed to take any actions to offset any of the cannibalization in any of your other properties from an expense standpoint? Or is it just too small?

嘿大家。只是想重新問一下有關蠶食評論的問題。我想您認為回填的速度有意義嗎？從費用的角度來看，您是否採取了任何行動或感覺需要採取任何行動來抵消您其他財產的任何蠶食？還是只是太小了？

I think it might be a little bit conservative. So we want there to be drive. We want everybody in the Valley to come and drive to Durango and see it. What you see typically from our previous openings is you see a very early strong visitation from in-brand customers, then you tend to see a dip where they go back to their neighborhood property that they're familiar with.

我認為這可能有點保守。所以我們希望有驅動力。我們希望矽谷的每個人都開車去杜蘭戈參觀。從我們之前的開業中您通常會看到，品牌內客戶的早期訪問量很大，然後您往往會看到他們回到他們熟悉的附近房產時會出現下降。

So we're in the throes of kind of understanding what that period is. And then over time, what we've seen in our previous openings is twofold. One, you see the existing property, [Paxville], and grow, and further that, we're talking predominantly Red Rock, which is in one of the highest growth areas in the Valley of the Summerlin, best fund development support, best match fund development in the country this year. So Red Rock has its own backfill story.

所以我們正在努力理解那個時期是什麼。隨著時間的推移，我們在先前的空缺中看到的是雙重的。第一，你會看到現有的房產，[Paxville]，並且正在增長，而且，我們主要談論的是紅岩，它位於薩默林谷增長最快的地區之一，最好的基金開發支持，最好的匹配今年為該國的發展提供資金。所以紅岩有自己的回填故事。

And then the other thing you see is Durango being in a new market that was underpenetrated and lacks additional competition. You're going to see Durango continue to grow its database and the surrounding area over the next three years. And really it never will stop.

然後你看到的另一件事是杜蘭戈處於一個滲透不足且缺乏額外競爭的新市場。您將看到杜蘭戈在未來三年內繼續擴大其資料庫和周邊地區。事實上它永遠不會停止。

I mean, there's a tremendous amount of new rooftops that will be coming online out there over the next year to three years, lots of apartments, and everything else. So we'll see where Durango settles in after a great opening. And then we expect it to be a growth asset for decades to come just to get better, but we're early days right now.

我的意思是，未來一年到三年內將有大量新屋頂、大量公寓和其他一切上線。因此，我們將看看杜蘭戈在出色的開局後會如何定位。然後我們預計它將成為未來幾十年的成長資產，只是為了變得更好，但我們現在還處於早期階段。

So that's helpful. And one other just clarification you were talking about labor inflation a little bit earlier. I guess when we put it all together and you think about core OpEx growth next year, how would you characterize where you're thinking kind of core OpEx growth, the kind of moving parts around Durango would be?

所以這很有幫助。另一項只是澄清你之前談論的是勞動力通膨。我想當我們把所有這些放在一起時，您會考慮明年的核心營運支出成長，您會如何描述您所考慮的核心營運支出成長，以及杜蘭戈周圍的移動部分是什麼？

I think is always looking for efficiency, right? It's being relentless about how we run our business and looking at these core areas. We don't expect to have any real increases in the acquisition cost area. We think we're doing a great job on cost of goods sold, but that's really a daily fight.

我想總是追求效率吧？我們堅持不懈地經營業務並專注於這些核心領域。我們預計購置成本不會有任何實際增加。我們認為我們在銷售商品成本方面做得很好，但這實際上是一場日常鬥爭。

And then probably the biggest one is just us being very diligent about labor.

然後最大的可能就是我們對勞動非常勤奮。

And energy costs.

和能源成本。

Yeah. And energy costs. Making sure that we're competitive so that we get the best employees in the market. But at the same time, making sure that where we deploy those employees and what level is efficient for our business.

是的。和能源成本。確保我們具有競爭力，以便我們獲得市場上最好的員工。但同時，確保我們將這些員工部署在哪裡以及什麼級別對我們的業務來說是有效的。

Great. Thanks so much.

偉大的。非常感謝。

Chad Beynon, Macquarie.

查德貝農，麥格理。

Afternoon. Thanks for taking my question and congrats on the strong opening. I wanted to ask, Scott, maybe one for you just in terms of pacing for '24 for that meeting and banquet space and now that Durango is open and groups can kind of rent that out, how that's looking in terms of what's on the books for '24 overall versus prior periods? Thanks.

下午。感謝您提出我的問題，並祝賀我的順利開幕。我想問，斯科特，也許有一個適合你的，只是就 24 世紀會議和宴會空間的節奏而言，現在杜蘭戈開放了，團體可以將其出租，從賬本上看情況如何'24 整體與之前時期相比？謝謝。

Yes. So I'm going to use the benchmark at the same time as last year's comparison. We like where we're headed. We especially like where we're headed in the first quarter and the fourth quarter of '24 in both group room nights and catering.

是的。因此，我將在與去年進行比較的同時使用該基準。我們喜歡我們要去的地方。我們特別喜歡 24 年第一季和第四季在團體住宿和餐飲方面的發展方向。

Summer's a bit soft. We've got some work to do in the summer. But with our booking window being pretty short, we've got time to make that up a bit. And I will caution, they are super strong numbers, but they're not the numbers that coming out of the pandemic that were 60%-plus year-over-year increases. But they are still very robust for the brand and we like where we're headed.

夏天有點溫柔。夏天我們還有一些工作要做。但由於我們的預訂窗口非常短，我們有時間來彌補這一點。我要提醒大家的是，這些數字非常強勁，但並不是疫情爆發後年增 60% 以上的數字。但它們對於品牌來說仍然非常強大，我們喜歡我們的發展方向。

Great, thanks. And then I think you talked about strength across the loyalty database. Did you see any declining weakness for that low-end tier or the unrated business? Or did that remain pretty consistent through the fourth quarter as well?

萬分感謝。然後我認為您談到了忠誠度資料庫的實力。您是否發現低端業務或未評級業務的疲軟趨勢有所減弱？或者第四季的情況也保持相當一致嗎？

It's a consistent trend. So we still see very robust numbers in the mid to higher end, but that's partly our strategy. And we see consistent and stable trends in the lower end of the database.

這是一個一致的趨勢。因此，我們仍然看到中高端市場的數據非常強勁，但這部分是我們的策略。我們看到資料庫低端的趨勢一致且穩定。

Great. Thanks. Appreciate it.

偉大的。謝謝。欣賞它。

Joe Stauff, Susquehanna.

喬·斯塔夫，薩斯奎哈納。

Good evening, everyone. Just a few follow-ups, maybe on Durango. One is with the strong opening. I'm just trying to figure out essentially when you guys would expect visitation patterns normalize. Would it be like a typical six months? Would you expect it to be earlier?

各位晚上好。只是一些後續行動，也許是在杜蘭戈。一是開局強勁。我只是想弄清楚你們預計訪問模式何時會正常化。會像典型的六個月嗎？你預計會更早嗎？

And then would you expect this property in particular to be able to pull a certain amount of, say, consistent visitations further away than, say, your corporate average?

然後，您是否期望該物業能夠將一定數量（例如，持續的訪問量）拉得比您的公司平均水平更遠？

Look, I think you have your peak at the opening where everyone in town wants to comment and see it and you get trial. And I would imagine in Q1 and Q2, we will find out where the market is for Durango.

聽著，我認為你在開幕式上達到了巔峰，鎮上的每個人都想發表評論並觀看它，然後你就得到了審判。我想在第一季和第二季度，我們會發現杜蘭戈的市場在哪裡。

We're settling in to not grand opening volumes anymore. And so it'll take a quarter or two. And then I think from there, we should start to be able to build new customers and visitation and start growing from there.

我們已經適應了不再盛大開幕的局面。所以這需要一兩個季度的時間。然後我認為從那裡開始，我們應該開始能夠建立新的客戶和訪問量，並從那裡開始成長。

Yes, it's Lorenzo. But relative to your question as well as the second part of it, given the fact is right around the freeway, it should naturally draw from a wider radius than maybe some of our other properties that don't quite have the amount of traffic that that freeway has. I mean, it's one of the busiest kind of loops in the Valley. Because everybody either going to work or coming home from work the lives on the west side of town from airport back-and-forth, I mean, they have to drive right by Durango.

是的，這是洛倫佐。但相對於你的問題以及它的第二部分，鑑於事實是在高速公路周圍，它自然應該比我們的其他一些房產更廣泛的半徑，這些房產的交通量並不那麼大。高速公路有。我的意思是，這是山谷中最繁忙的環路之一。因為每個人要嘛上班，要嘛下班回家，從機場來回住在城鎮西側，我的意思是，他們必須開車經過杜蘭戈。

But I think if you look at our portfolio, that's one of the great things about our portfolio is location, location, location. Look at Red Rock, great location, right on the Beltway. You look at Sunset Station, right on the Beltway, you know, Boulder Station, right on the Beltway. So I think that's one of the long-term benefits as the town continues to grow, as I think we have probably the best traffic ingress-egress card counts of any one in the market.

但我認為，如果你看看我們的投資組合，你會發現我們投資組合的一大優點就是地點、地點、地點。看看紅岩，地理位置優越，就在環城公路上。你看看日落站，就在環城高速上，你知道，博爾德站，就在環城高速上。因此，我認為這是隨著城鎮不斷發展而帶來的長期好處之一，因為我認為我們可能擁有市場上最好的交通進出卡數量。

Thank you for that. And Steve, maybe just a quick clarification. On North Fork, that does not require any new capital from the company, correct?

謝謝你。史蒂夫，也許只是快速澄清一下。在北福克，這不需要公司提供任何新資本，對嗎？

No. We've invested the original capital, which is still sitting there. It's a $40 million amount. But the current balance is about $110 million. We would anticipate raising on nonrecourse financing around the project.

不。我們已經投入了原始資金，這筆資金仍然存在。這是 4000 萬美元的金額。但目前餘額約1.1億美元。我們預計將圍繞該項目籌集無追索權融資。

Thanks, guys.

多謝你們。

That's probably on the financial markets.

這可能是在金融市場。

(Operator Instructions)

（操作員說明）

John DeCree, CBRE.

約翰‧德克里，世邦魏理仕。

Good afternoon, everyone. Most have been asked and answered, but maybe one more on Durango, and that is given the successful opening that you've talked about. Has that influenced or change how you think about Phase 2 prospects there, either in scope or timing? I know it's still only been several weeks, but any thoughts on Phase 2 would be interesting to hear. Thank you.

大家下午好。大多數問題都已被詢問並得到解答，但也許還有一個關於杜蘭戈的問題，這是考慮到您所談論的成功開場。這是否影響或改變了您對第二階段前景的看法，無論是範圍還是時間安排？我知道這還只是幾週的時間，但任何關於第二階段的想法都會很有趣。謝謝。

Yes, It's Lorenzo. I mean, really consistent with what we've communicated before. We're going to get -- obviously, we got Durango open. We're going to continue to dial in the efficiency, the efficiencies of the property. We are certainly working diligently on a Phase 2 plan that we're actually pretty far along on the programming, and that's more loading on the finer details of adding some entertainment. Potentially adding to the number of hotel rooms adding a couple more food and beverage options as well.

是的，這是洛倫佐。我的意思是，這與我們之前溝通的內容非常一致。顯然，我們將讓杜蘭戈開放。我們將繼續提高酒店的效率。我們當然正在努力製定第二階段的計劃，實際上我們在編程方面已經取得了很大的進展，並且更多地在添加一些娛樂的細節上進行了更多的負載。可能會增加飯店客房的數量，並增加更多的食物和飲料選擇。

And then we're also pretty far along as far as the initial planning for [Esperado], which is out in in Green Valley. And North Fork -- and actually, we're fast and furious working on North Fork as well. So we got plenty on our hands right now actively being worked on from a development standpoint.

然後，我們在《Esperado》的初步規劃方面也取得了相當大的進展，該項目已在綠谷上映。還有北福克——實際上，我們也在快速而激烈地開發北福克。因此，從開發的角度來看，我們現在有很多工作要做。

But like I said, we're going to we're going to get Durango dialed in before we announce kind of what the next move is. But the good thing is the company has more optionality from a growth standpoint with deals and pieces of real estate that we control. And we can bring online whenever we think it fits, but really consistent where we've been in the past. So we're just -- more to come as we go kind of have a little bit more time under our belt with Durango.

但就像我說的，在我們宣布下一步之前，我們將讓杜蘭戈撥打電話。但好處是，從成長的角度來看，公司在我們控制的交易和房地產方面擁有更多選擇。我們可以在任何我們認為合適的時候上線，但與我們過去的情況保持一致。所以我們只是——隨著我們的離開，我們將有更多的時間與杜蘭戈合作。

Perfect. Thanks so much, guys, and congratulations on the opening.

完美的。非常感謝，夥計們，祝賀開業。

Thank you.

謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Stephen Cootey for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給史蒂芬·庫蒂（Stephen Cootey）發表閉幕詞。

Thank you, everyone, for joining us, and we look forward to talking to you next quarter. Thanks.

感謝大家加入我們，我們期待下個季度與您交談。謝謝。

Okay. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

好的。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。