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CORRECTED: K | IS CEREAL RESUSCITATING THE COMPANY?

Kellogg Company (K) is on our Hedgeye Consumer Staples SHORT bench.

 

We are tempted to press the short, but few names in the space make good shorts in this market.  On the LONG side, your best bet for a large cap, low-single digit top-line growth, dividend company within the consumer staples space continues to be General Mills (GIS), which has much broader growth potential.

 

We have been vocal about our LONG thesis on the cereal market and its return to positive growth. We do not picture the category as a major growth driver for a particular company, more as a complement, providing consistent low-single digit sales growth. That is what we have with Kellogg, who just reported 2Q15 results yesterday. The street was overly bearish on the company going into the quarter resulting in an estimate beat, but still considerable declines in operating profit year-over-year.

 

HEDGEYE OPINION

Management isn’t setting the bar too high, even with the sluggish 1H of the year it won’t be difficult to achieve flat sales for the full year. If we continue to see the same softness in volumes and sales, these longer-term targets will start to seem unachievable. We continue to be bearish on K, but can’t find the conviction to call it a true SHORT yet. We do however continue to get excited about the cereal categories resurgence after every earnings call we listen to from one of the category leaders; POST is up next, on Friday, August 7th.

 

PERFORMANCE IN THE QUARTER

K’s reported 2Q15 currency-neutral comparable diluted EPS of $0.97 versus consensus estimates of $0.92, representing a -4.9% decrease YoY. Currency-neutral comparable net sales came in above estimates, reporting $3,685mm versus consensus estimates of $3,466mm, representing a +0.1% increase YoY. Although net sales saw a slight uptick, notably volume for the company was down -0.4%. Currency-neutral comparable operating income of $529mm beat consensus estimates of $507mm, representing a -6.8% decrease YoY.

 

PERFORMANCE BY REGION

CORRECTED:   K | IS CEREAL RESUSCITATING THE COMPANY? - K CHART1

 

NORTH AMERICA

(Represents ~65% of total consolidated net sales)

The region struggled across the board, led by U.S. Morning Foods and U.S. Snacks, reporting net sales declines of -2.3% and -1.8%, respectively. The total segment net sales declined -1.8%, leading to a -12.7% decline in operating profit. Operating profit declines were led by North America Other (includes the U.S. Frozen Foods, Kashi and Canadian businesses) down -22.4%, followed by U.S. Snacks, down -18.7%, U.S. Morning Foods down -5.5% and lastly U.S. Specialty down -5.3%. North America is clearly still struggling to grow sales, other things affecting the quarter were increased distribution costs, timing of production and incentive compensation. Although all segments in North America showed net sales declines, management stated that “sales increased…in the Frozen Foods and Canadian businesses.” Management was upbeat about the progress made in cereal, but there is still more to do, as they put it.  Currently management is confident in the improvements they have made to the product offering, and continue to improve. Cereal consumption seems to have stabilized and was flat in Q2, Kellogg branded sales were essentially flat, with the top six brands growing share and sales. Currently 75% of cereals are made without artificial colors and more than half without artificial flavors, they plan to transition to 100% on both by 2018. U.S. is down -1.8% as a result of continued weakness in wholesome snacks, and continued distribution losses on this businesses. U.S. specialty sales were down -1.2% in the quarter, as business is experiencing share losses in foodservice. Kashi has continued its descent in 2Q15, and they continue to invest in the brand, is it a dead better-for-you brand? Possibly, it will have to turn soon, or all the investment made in the brand will be for nothing.

 

EUROPE

(Represents ~19% of total consolidated net sales)

The Europe team is working through a rather difficult operating environment, but surviving. Net sales for the region were -2.5% in the quarter, while operating profits increased 5.6%. These positive results were driven by improved COGS and the timing of investments made in brand building. Pringles is a winner in all regions, growing net sales at a double-digit rate in the UK and Germany. Cereal is struggling international, a little more than the U.S.

 

LATIN AMERICA

(Represents ~9% of total consolidated net sales)

Latin America has experienced robust sales growth, with net sales up 14.5% and operating profit up 8.9%, driven in large part by the Pringles brand, as well as investments in renovating other brands. This region provided another glimmer of hope for the cereal business, seeing moderate volume and price growth. Consumption of Pringles was also strong for the quarter, leveraging Copa America partnership to drive sales. Latin America, more than any other region was assisted by pricing/mix, which represented 13.4% of the 14.5% increase in net sales.

 

ASIA PACIFIC

(Represents ~7% of total consolidated net sales)

Asia Pacific is crossing over some easy comparisons, but they are experiencing strong growth as well. Net sales are up 6.8% in the region with operating profit up 76%, still only representing $10mm in operating profit as shown in the chart above.

 

MANAGEMENT GUIDANCE

Management reaffirmed guidance for the full year 2015, which consists of the following:

  • Net Sales = Approximately flat
  • Operating Profit = -2% to -4%
  • EPS = Flat to -2%
  • Operating Cash Flow = Approximately $1bn
  • Total capital spending = 4% to 5% of sales
  • Share repurchases in 2015 = $700mm to $750mm

 

Additionally, management provided early guidance for the 2016 fiscal year, which was unusually early; they usually wait until at least Q3. Seemed that they were trying to shift focus away from current poor performance and urge investors to look out 2-3 quarters. In 2016 management hopes that current initiatives both cost savings and investments will start to make a stronger impact leading to flat to slightly up sales, getting them back on their long-term growth model.

 

 

 

 

 


K | IS CEREAL RESUSCITATING THE COMPANY?

Kellogg Company (K) is on our Hedgeye Consumer Staples SHORT bench.

 

We are tempted to press the short, but few names in the space make good shorts in this market.  On the LONG side, your best bet for a large cap, low-single digit top-line growth, dividend company within the consumer staples space continues to be General Mills (GIS), which has much broader growth potential.

 

We have been vocal about our LONG thesis on the cereal market and its return to positive growth. We do not picture the category as a major growth driver for a particular company, more as a complement, providing consistent low-single digit sales growth. That is what we have with Kellogg, who just reported 2Q15 results yesterday. The street was overly bearish on the company going into the quarter resulting in an estimate beat, but still considerable declines in operating profit year-over-year.

 

HEDGEYE OPINION

Management isn’t setting the bar too high, even with the sluggish 1H of the year it won’t be difficult to achieve flat sales for the full year. If we continue to see the same softness in volumes and sales, these longer-term targets will start to seem unachievable. We continue to be bearish on K, but can’t find the conviction to call it a true SHORT yet. We do however continue to get excited about the cereal categories resurgence after every earnings call we listen to from one of the category leaders; POST is up next, on Friday, August 7th.

 

PERFORMANCE IN THE QUARTER

K’s reported 2Q15 currency-neutral comparable diluted EPS of $0.97 versus consensus estimates of $0.92, representing a -4.9% decrease YoY. Currency-neutral comparable net sales came in above estimates, reporting $3,685mm versus consensus estimates of $3,466mm, representing a +0.1% increase YoY. Although net sales saw a slight uptick, notably volume for the company was down -0.4%. Currency-neutral comparable operating income of $529mm beat consensus estimates of $507mm, representing a -6.8% decrease YoY.

 

PERFORMANCE BY REGION

K | IS CEREAL RESUSCITATING THE COMPANY? - K CHART1

 

NORTH AMERICA

(Represents ~65% of total consolidated net sales)

The region struggled across the board, led by U.S. Morning Foods and U.S. Snacks, reporting net sales declines of -2.3% and -1.8%, respectively. The total segment net sales declined -1.8%, leading to a -12.7% decline in operating profit. Operating profit declines were led by North America Other (includes the U.S. Frozen Foods, Kashi and Canadian businesses) down -22.4%, followed by U.S. Snacks, down -18.7%, U.S. Morning Foods down -5.5% and lastly U.S. Specialty down -5.3%. North America is clearly still struggling to grow sales, other things affecting the quarter were increased distribution costs, timing of production and incentive compensation. Although all segments in North America showed net sales declines, management stated that “sales increased…in the Frozen Foods and Canadian businesses.” Management was upbeat about the progress made in cereal, but there is still more to do, as they put it.  Currently management is confident in the improvements they have made to the product offering, and continue to improve. Cereal consumption seems to have stabilized and was flat in Q2, Kellogg branded sales were essentially flat, with the top six brands growing share and sales. Currently 75% of cereals are made without artificial colors and more than half without artificial flavors, they plan to transition to 100% on both by 2018. U.S. is down -1.8% as a result of continued weakness in wholesome snacks, and continued distribution losses on this businesses. U.S. specialty sales were down -1.2% in the quarter, as business is experiencing share losses in foodservice. Kashi has continued its descent in 2Q15, and they continue to invest in the brand, is it a dead better-for-you brand? Possibly, it will have to turn soon, or all the investment made in the brand will be for nothing.

 

EUROPE

(Represents ~19% of total consolidated net sales)

The Europe team is working through a rather difficult operating environment, but surviving. Net sales for the region were -2.5% in the quarter, while operating profits increased 5.6%. These positive results were driven by improved COGS and the timing of investments made in brand building. Pringles is a winner in all regions, growing net sales at a double-digit rate in the UK and Germany. Cereal is struggling international, a little more than the U.S.

 

LATIN AMERICA

(Represents ~9% of total consolidated net sales)

Latin America has experienced robust sales growth, with net sales up 14.5% and operating profit up 8.9%, driven in large part by the Pringles brand, as well as investments in renovating other brands. This region provided another glimmer of hope for the cereal business, seeing moderate volume and price growth. Consumption of Pringles was also strong for the quarter, leveraging Copa America partnership to drive sales. Latin America, more than any other region was assisted by pricing/mix, which represented 13.4% of the 14.5% increase in net sales.

 

ASIA PACIFIC

(Represents ~7% of total consolidated net sales)

Asia Pacific is crossing over some easy comparisons, but they are experiencing strong growth as well. Net sales are up 6.8% in the region with operating profit up 76%, still only representing $10mm in operating profit as shown in the chart above.

 

MANAGEMENT GUIDANCE

Management reaffirmed guidance for the full year 2015, which consists of the following:

  • Net Sales = Approximately flat
  • Operating Profit = -2% to -4%
  • EPS = Flat to -2%
  • Operating Cash Flow = Approximately $1bn
  • Total capital spending = 4% to 5% of sales
  • Share repurchases in 2015 = $700mm to $750mm

 

Additionally, management provided early guidance for the 2016 fiscal year, which was unusually early; they usually wait until at least Q3. Seemed that they were trying to shift focus away from current poor performance and urge investors to look out 2-3 quarters. In 2016 management hopes that current initiatives both cost savings and investments will start to make a stronger impact leading to flat to slightly up sales, getting them back on their long-term growth model.

 

 

 

 

 


CHUY | COVERING THE SHORT

CHUY is on the Hedgeye Restaurants Best Ideas list as a SHORT. Coming out of this strong quarter, and improved guidance we are taking it off the list and covering the short.

 

Last night Chuy’s Holdings (CHUY) reported their 2Q 2015 results. Comparable same-store sales (SSS) for the quarter were 3.2% versus consensus estimates of 2.8%, representing an 80 basis improvement YoY. The increase in SSS were driven by a 3.9% increase in average check offset by a -0.7% decrease in traffic, representing 652 fewer guests.  Revenue increased 19.1% to $75.4mm topping consensus estimates of $73.4mm.  Net income increased 55.9% to $5.4mm or $0.32 per diluted share versus consensus estimates of $4.2mm or $0.25 per diluted share.

 

CHUY | COVERING THE SHORT - CHUY CHART 1

CHUY | COVERING THE SHORT - CHUY CHART 2

 

During the quarter the company opened one new Chuy’s restaurant in Dayton, Ohio, for a total of five to date in the year. The company remains on track to open 10-11 new restaurants in the full year 2015. Management is focused on penetrating higher growth markets such as the Chicago area and Florida, as they continue to backfill existing markets.

 

CHUY’s had robust margin improvement driven by productivity initiatives being implemented faster than anticipated. The new stores seem to be ramping up well, as management is getting better at opening stores more efficiently each year. As you see in the chart below, they have been driving costs out of the business, and improving margins

 

CHUY | COVERING THE SHORT - CHUY CHART 3

 

Management improved guidance for the full year 2015, now expecting EPS in the range of $0.82 to $0.85 versus the previous range of $0.76 to $0.79. Built by the main assumption that same-store sales will grow at 2.5% for the remainder of the year.

 

For now we will stop chasing this name as a SHORT, but there may be a time in the future we revisit the possibility.


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MGM Q2 CONFERENCE CALL NOTES

Takeaway: Finally, a good quarter in Vegas. Favorable US outlook (RevPAR) and profit enhancement plan could lead to positive earnings revisions

CONF CALL 

  • Domestic resorts was $1.7 billion, an increase of 4% compared to the prior year quarter. 
  • Growth across the entire US portfolio 
  • Domestic resorts increased 6% with a 6% increase in RevPAR at the Company's Las Vegas Strip resorts compared to the prior year quarter
  • Wholly owned Adjusted Property EBITDA up 11% driven by growth at our Las Vegas and regional resorts
  • MGM China's net revenue was $557 million and Adjusted EBITDA was $132 million, decreases of 33% and 37%, respectively, compared to the prior year quarter
  • CityCenter's Adjusted EBITDA related to resort operations was $84 million, a 4% increase compared to the prior year quarter.
  • Diluted earnings per share for the second quarter of 2015 was $0.17 compared to diluted earnings per share of $0.22 in the prior year quarter.
  • Sequential margin improvement in China 
  • Profit growth plan to take up to 10 months, and provide sustained growth. 
  • Economy seen growing, but at a slow pace. They want to outpace the market and grow faster. this plan is a challenge for themselves. they brought in outside help. 
  • Profit growth plan well help leverage assets, and reduce expenses, improve purchasing power, and use better analytics and technology
  • Tremendous work to be done, but the plan will offer new and refreshed views on how to grow out and perform better than peers 
  • Process is about empowering employees, and improving the guest experience. 
  • Initiatives will be rolling out in 2016 and 2017. 
  • The plan is expected to result in $300 million of annualized Adjusted EBITDA benefit.  The Profit Growth Plan commenced in July 2015 and it is expected to begin to show results as early as the second half of 2015 and be fully realized by the end of 2017.
  • They think margins can come back to the 30% level 
  • Will continue to drive value for all. Very enthusiastic about these developments 
  • Strip = 6% revpar growth
  • Margins +120bps 
  • All segments seeing increases
  • Convention business up YoY, expected it to be flat  
  • RevPAR up 9 and 14 at off strip properties 
  • Should see strong convention bookings going into 2H and FY2016. 
  • Now expect to outperform last year
  • Q3 strip RevPAR should be 6% - Street was expecting only flattish to slightly up, differs from analysts' surveys
  • New theatre project at Monte Carlo to cause one time charge of $6 million per Q in 2H. 
  • Corp expense up slightly in Q3. $60-65mm 
  • MGM China earned net revenue of $557 million, a 33% decrease compared to the prior year quarter;
  • Main floor table games revenue decreased 23% compared to the prior year quarter
  • VIP table games revenue decreased 43% due to a decrease in VIP table games turnover of 54% compared to the prior year quarter, while hold percentage increased to 3.2% in the current year quarter compared to 2.7% in the prior year quarter;
  • Market share seen increasing sequentially 
  • Continue to maintain costs and drive margins 
  • Win dropped by 23% YoY at MGM China
    • Declined by 5% sequentially 
  • Added 61 high limit slot machines on main floor
  • Record high 80% coming from mass segment 
  • Shifting VIP tables to Mass. Mass now 60% of total tables
  • Strategy is driving incremental main floor visitation
  • MGM China paid a $120 million final dividend in June 2015
  • Should finish MGM Cotai in Q4 2016. Construction remains on track. 
  • Bellagio margins were the best on the strip
  • Crystals leading the way in the retail space
  • New expansion at Mandalay Bay opening later this month, demand has been very strong
  • Monte Carlo new 5000 seat theater set to open soon 
  • Cite strong airline passenger growth, and ability for more capacity as tailwinds for 2H and into 2016
  • Cite that there is a value gap between how the market and management values the company, but see very good prospects in the future for this value gap to close
  • Must narrow the field to determine what is best for shareholder across all timelines

Q & A

 

Profit growth plan? $300 million pledged, how much is operating expense related and how much for the strip?

  • Not looking for quick fixes. Instead, looked through hundreds of ideas, and devised implementation plans. Trying to create sustainable change. 
  • 1/3rd of money is revenue uplift
  • 2/3rd of money looking to change the way they do business. 
  • Majority pledged for the strip. 
  • $225 million for strip 
  • $25 million for regional properties

Would expect to see margins benefit?

  • Yes that is the key focus. And along with this plan, they are also bullish on the macroeconomics behind the future of the strip. 
  • FTE's still down 15% since 2007. And they will remain down. Growth process is just a plan to show they can do better, because they know they can do better. 
  • Labor savings are in the cards due to the upgrades they will make 

How early can we see results and when? Profit reinvested in the business?

  • Can provide more color next Q. But each project has a project leader, and they have separate teams on each project. Big projects will be felt in 2016, and be accretive in 2017. 

Mirage on the market? PNK assets valued at 30% premium to yours?

  • Mirage not on the market. Will not just put a for sale sign on their properties. 
  • Asset values of the strip clearly show that waiting and not selling has been the right move. 
  • Tremendous interest for strip real estate. Continue to meet people that are qualified. 
  • Highly confident this valuation gap will close going forward. 

REIT? 

  • Should decide on that by the end of the year.

Able to sustain growth next year? Since the comps will be tough. 

  • Will continue to add more events, concerts, fights, etc in the future to maintain competitive edge. The fight actually hurt flow through by 400bps. Look to improve flow through but margins are the most important. 

Macau: Stabilization on the Mass side. Given changes to smoking bans and govt policies. Do you see the market growing or a share shifting game playing out? How do you intend to grow?

  • Critical to re-engineer their process along with the opening of Cotai.  

FTE savings due to the opening of the new property in Cotai?

  • Absolutely, lots of consolidation and process engineering. Difficult times giving them the opportunity to be challenged and better their processes. That is definitely the silver lining during these difficult times. 

MGM sees themselves in a position of unique strength. Predictability of cash flows. 

 

6% RevPAR guidance of Q3? Similar scale for luxury to non luxury?

  • Yes, likely to see a similar mix to RevPAR growth. 
  • Convention business a tailwind, macro environment a positives. 

Striving for 30% margins across all the properties? 

  • Yes, should see this growth across all properties. Many initiatives that look to weed out extra costs, everything from how their linens are cleaned and maintained to actions across the F&B segment of the business. 
  • Looking to push out the middle man and go straight to the source for food and beverage needs to drive margins. 
  • FedEx and Coca Cola have been helpful through these "improvement plans"
  • Will continue to update details each Q. 

Strategic alternatives? JV's? Color on future opportunity?

  • Reno sale, was a right fit transaction. 
  • Existing JV's? Not many left, but looking to continue to use them to return cash to shareholders. Cited City Center as main driver. 
  • An expansion of Crystals is very likely due to the 2 acres of land nearby. Actively having these discussions. 
  • Other JV's aren't really of strategic focus at this point. 

Chinese baccarat customer seen hurting other operators? How did this play out for MGM in LV?

  • Domestic side of business did very well, and was a big help. Table games ex. baccarat did very well. China source play continues to weaken. 
  • Best quarter ever from domestic business (since 2007). 
  • Plenty of events really attracted domestic customers. 
  • July off to a great start as well. 

RevPAR guidance a little high? 

  • Strength is largely underwritten by convention business. 
  • Clientele is strong. Tech companies and healthcare companies are customers going into 2H. 
  • They believe they have competitive advantage to accommodate broad based wants and needs of companies 
  • Retail and leisure business in Q3 should be strong giving seasonality, overlayed with convention business gives them the confidence that RevPAR will be around 6%. 
  • Room rate surveys are useful, but very tough to use for Q3 due seasonality. 
  • They see strong RevPAR growth for Q4 as well.

RHP Q2 2015 CONFERENCE CALL NOTES

CONF CALL 

  • CEO Colin Reed citing strong group and transient demand, which led to record setting Q2. A common theme being reiterated by hotel operators 
  • EBITDA margin growth of 160bps, to 34.5%, best hotel margin they have ever reported. Best EBITDA margins since the opening of Gaylord National 
  • Tough comps to blame for the soft RevPAR
    • Same Store RevPAR +3.1% YoY 
    • Same Store total RevPAR +4.5% YoY
    • Hospitality revenue +4.5% YoY
  • Boosting dividend by $0.05 to $0.70 p/s for Q3 2015, and annual dividend to $2.70 p/s, a 23% increase YoY
  • Volatility in the peer group and within their own stock. Discusses how RevPAR revisions added to that group wide. 
  • The cycle? Business is in good shape, not experiencing a systemic slow down. 
  • High confidence for the future
  • Business operating better than ever as show in the total revenue numbers
  • Best Q2 revenues, better than Q2 2008, their all time high. 
  • Bookings appeared down for Q2? 530K gross room nights booked, compared to 640K in 2014. 
  • Very tough comp, which led to YoY decline 
  • Production still over 3,4,5 year averages
  • +145K more room nights booked for 2016, up roughly 10% YoY
  • 2016 is looking to be a very strong year based on these booking numbers 
  • Booked 130k gross room nights in July vs. 82K last year
  • Negatives, only real threat is supply or companies like Airbnb, but they do not see supply as a real threat. They do not see Airbnb as comp. Their guests are big groups and serve a different experience.  
  • Very good time to be in the group booking business. High demand and limited supply growth. 
  • Gaylord Opryland rev up 9%, best single Q in EBITDA margins ever roughly 38%
  • Accelerated room renovations, will finish all in Q3. Will hurt Q3, but will be very good for Q4 and 2016. 
  • Gaylord National suffered a little due to tough comps from 2014, and a large group cancellation.
  • Expanding outdoor meeting space and ballroom, should help establish property on the east coast
  • AC hotel performing very well. $1 million contribution to EBITDA
  • Gaylord Texan +25% increase in adjusted EBITDA
  • room renovation completion last year has really helped its perfomance. on track for a record year
  • Gaylord Palms performing very solidly as well. Q3 will challenging due to the fall of Jewish holidays. Q4 looking very strong. 
  • Q3 tracking to be better than last year based on group bookings. 
  • Total group production 2.1-2.3 million room nights for 2015, forecast 
  • Entertainment business - continued growth, expanding and developing new content is the goal. have engaged consultants to help grow this segment. tough to be more specific than that. 
  • Attrition up due to a couple group cancellations, not a systemic slow down. 
  • No debt maturities till 2016. Reduced exposure to floating rate debt going forward. 
  • Guidance down, RevPAR trimmed. Due to challenging calendar and room renovations the main reasons for these adjustments but Q4 should be very strong. As a result they are not adjusting overall profitability guidance for FY2015. 
  • BS/CF in great shape, looking to continue growing the dividend. 

 

Q & A 

 

Consultants for the entertainment business? Plans to sell/spin the business off? 

  • No, not yet. These are plans to make it better. Will revisit plans after the consultant advises what changes need to be made.

Booking window lengthening or shortening? What are meeting planners doing?

  • +145K more room nights booked for 2016 vs. last year booking into 2015. For group bookings into next year relative to last year, a big increase
  • Meeting planners, corp segment seeing huge growth. 
  • Booking windows remain the same. But groups increasing outside the room spend.
  • Seeing good last minute bookings, especially from the pharma industry
  • Outside the room spend seen offsetting declining RevPAR. But RevPAR should bounce back in Q4, due to more transient and group booking still left to made. 
  • Continue to reiterate how strong 2016 is shaping up to be. 

Where are the rates on the group bookings for 2016? 

  • Modest increase. But, due to the clientele outside of the room spend should be strong. 

Issues in Texas or energy areas? Is that the attrition you witnessed? 

  • No, it was groups "getting ahead of themselves and having to cancel"
  • No weakness due to energy groups. Gaylord Texan had a good Q. 

Thoughts on renovations?

  • Trying to do them in short bursts. Has temporary effects, but has historically shown good things for future rate growth. 
  • Renovation puts roughly 18K room nights out of order. 

Did you have to turn away groups due to the Opryland renovation? 

  • Yes, but we made sure it was smaller groups. And made sure this was the best time to do the renovation. August just happens to be the best month for that. 

Anything that city leaders are doing to drive for tourism for Nashville?

  • City leaders are very committed to improving the appeal
  • Problem the city is having, is that they are creating so much demand, and the infrastructure will need to catch up to accommodate that.  
  • But for now the demand is very strong and healthy

Weakness in DC?

  • Not seeing a weakness at Gaylord National. Q3 should be strong. Not seeing issues. 

Oil and Gas group is how much of your business?

  • Work hard to diversify. Probably less than 5%. Not an issue. Have many large groups to pull from. 

Bookings to decelerate going into 2H of 2015? 

  • Should see some but not much, still some available inventory. Q1,Q2,Q3 2016 are looking very good. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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