Diamondrock Hospitality Company

Thank you for standing by, and welcome to the Diamond Rock Hospitality Company's second quarter 2023 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentations, there'll be a question and answer session. To ask a question at that time, please press star 11 on your telephone. As a reminder, this call is being recorded. I would now turn the conference over to your host, Ms. Brianne Quinn, Senior Vice President and Treasurer of Diamond Rock Hospitality. Please go ahead.

Thank you, Valerie. Good evening, everyone. Welcome to Diamond Rock's second quarter 2023 earnings call and webcast. Before we get started, let me remind everyone that many of our comments today are not historical fact and are considered to be forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ materially from those expressed in our comments today. In addition, on today's call, we will discuss certain non-GAAP financial information. A reconciliation of this information to the most directly comparable GAAP financial measure can be found in our earnings press release. With that, I'm going to turn the call over to Mark Brugger, our President and Chief Executive Officer.

Thank you for joining us today for Dimerock's Second Quarter Earnings Call. Global travel demand remains strong. TSA throughput in the quarter reached 99% of 2019 levels, and hotel stays in the United States this year are expected to surpass the annual pandemic record of 1.3 billion roommates. Dimerock has been a leader in the recovery, and later we'll discuss why we are well-positioned to hold and expand our lead sector in the years to come. Against the favorable industry backdrop, however, the slowing macroeconomic environment is weighing on the pace of recovery of business travel, and the redistribution of leisure travel from the return of competition from cruise lines and international destinations is impacting domestic leisure-oriented properties. In our view, some of these adjustments are just momentary events, but they were a headwind in the second quarter and will remain a headwind until later this year. However, we are seeing an emerging new baseline of travel demand.