Montage CEO Alan J. Fuerstman on Luxury Travel Growth and Development

Luxury Market Performance

• 📈 The luxury segment is performing exceptionally well, with Montage International seeing 8% growth over the previous year, double the industry average.
• 💡 There is tremendous interest in luxury products, indicating strong demand from consumers.

Customer Base and Travel Trends

• 🌍 Montage serves a global customer base, with a strong North American presence complemented by significant international travel.
• ✈️ Travel is a mix of leisure and high-end meetings, with the balance varying by season and property.
• 👨‍👩‍👧‍👦 Multi-generational travel is a notable trend, with families bringing three generations together.

Operational Challenges and Labor

• ⚠️ While overall operating costs haven't been significantly impacted yet, labor costs have risen and remain a challenge in certain markets.
• 🧑‍💼 Montage focuses on attracting top talent, but scarcity of labor is a concern, particularly in seasonal resorts.
• 🛂 The company relies on H-2B and J-1 visas to fill seasonal gaps, and current restrictions on H-1B visas do not appear to directly impact their needs.

Development and International Growth

• 🌍 Montage is experiencing significant international growth, with four new projects in development in Mexico, including openings in Mexico City and Punta Mita.
• 📍 Development decisions are driven by the ability to achieve favorable rates that support the company's high level of services.
• 💰 Montage aims for an average nightly rate of north of $1,200 for Montage properties, with slightly lower expectations for Pendry.
• 🗺️ The company avoids developing in markets with a