Financial Guidance ReductionThe company's 2024 RevPAR growth and FFO/share guidance were lowered, falling below consensus expectations, indicating a less optimistic financial outlook.
Increased Operating ExpensesNew labor agreements are likely to result in increased expenses in the first year, affecting operating expense growth assumptions, along with hurricane impacts increasing insurance premiums.
Labor Strikes ImpactProlonged strikes can be quite disruptive to operations, particularly at group-focused hotels, leading to significant group cancellations expected to impact earnings in the fourth quarter.