Apple Hospitality REIT Inc (APLE) 2015 Q2 法說會逐字稿

Greetings, and welcome to the Apple Hospitality REIT second-quarter 2015 earnings conference call.

您好，歡迎參加 Apple Hospitality REIT 2015 年第二季財報電話會議。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. I would now like to turn the conference over to Kelly Clarke, Director of Investor Services. Thank you. Please go ahead.

提醒一下，本次會議正在錄製中。現在我想將會議交給投資者服務總監凱利克拉克 (Kelly Clarke)。謝謝。請繼續。

Thank you. Good morning, and welcome to Apple Hospitality REIT's second-quarter 2015 earnings call on this, the 7th day of August 2015. Today's call will be based on the second-quarter 2015 earnings release, which was distributed yesterday afternoon.

謝謝。早安，歡迎參加 Apple Hospitality REIT 於 2015 年 8 月 7 日舉行的 2015 年第二季財報電話會議。今天的電話會議將基於昨天下午發布的 2015 年第二季財報。

I would like to remind everyone that today's call will contain forward-looking statements as defined by federal securities laws, including statements regarding future operating results. These statements involve known and unknown risks and other factors which may cause actual results, performance or achievements of Apple Hospitality to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Participants should carefully review our financial statements and the notes thereto, as well as the risk factors described in Apple Hospitality's 2014 Form 10-K, our second-quarter 2015 Form 10-Q and other filings with the SEC. Any forward-looking statement that Apple Hospitality makes speaks only as of today, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.

我想提醒大家，今天的電話會議將包含聯邦證券法定義的前瞻性陳述，包括有關未來營運績效的陳述。這些聲明涉及已知和未知的風險和其他因素，可能導致 Apple Hospitality 的實際結果、業績或成就與此類前瞻性聲明表達或暗示的未來結果、業績或成就有重大差異。參與者應仔細審查我們的財務報表及其附註，以及 Apple Hospitality 2014 年 10-K 表、2015 年第二季 10-Q 表和向美國證券交易委員會提交的其他文件中所述的風險因素。 Apple Hospitality 所做的任何前瞻性聲明僅代表今日的觀點，除非法律要求，否則本公司不承擔公開更新或修改任何前瞻性聲明的義務。

In addition, certain non-GAAP measures of performance, such as EBITDA, adjusted EBITDA, FFO and modified FFO, will be discussed during this call. We encourage participants to review reconciliations of those measures to GAAP as included in yesterday's earnings press release. For a copy of the press release or additional information about the Company, please visit AppleHospitallityREIT.com.

此外，本次電話會議也將討論某些非 GAAP 績效指標，例如 EBITDA、調整後的 EBITDA、FFO 和修改後的 FFO。我們鼓勵參與者查看昨天的收益新聞稿中包含的這些指標與 GAAP 的對帳情況。如需新聞稿副本或有關該公司的更多信息，請訪問 AppleHospitallityREIT.com。

This morning, Justin Knight, our President and Chief Executive Officer; Krissy Gathright, our Chief Operating Officer; and Bryan Peery, our Chief Financial Officer, will provide an overview of our results for the second quarter and an outlook for the sector and for the Company. Following the overview, we will have a question-and-answer session. It is now my pleasure to turn the call over to Justin.

今天上午，我們的總裁兼執行長 Justin Knight； Krissy Gathright，我們的營運長；我們的財務長 Bryan Peery 將概述我們第二季的業績以及該行業和公司的前景。概述之後，我們將進行問答環節。現在我很高興將電話轉給賈斯汀。

Thank you, Kelly. Good morning, and welcome to Apple Hospitality REIT's second-quarter 2015 earnings call. On May 18 of this year, our Company listed its shares on the New York Stock Exchange under the ticker symbol APLE. As this is our first earnings call, I thought it appropriate to begin with a brief overview of our portfolio and corporate strategy.

謝謝你，凱利。早安，歡迎參加 Apple Hospitality REIT 2015 年第二季財報電話會議。今年5月18日，本公司在紐約證券交易所上市，股票代號為APLE。由於這是我們的第一次收益電話會議，我認為首先應該簡要概述我們的投資組合和公司策略。

At the end of the second quarter, our portfolio consisted of 174 hotels located in more than 80 MSAs across 32 states. We purposely assembled this portfolio with the strategic intent to generate strong, stable, risk-adjusted returns for our shareholders over time. Core components of this strategy include broad geographic diversification in order to mitIgate volatility associated with concentrated exposure in specific markets or dependence on a limited set of demand generators. A focus on the upscale select-service segment of the industry, where strong consumer demand and efficient operating models yield higher margins. Concentration on Hilton and Marriott brands, which benefit from broad consumer recognition and strong loyalty programs. The selection of award-winning regional and national third-party management companies, and low leverage.

截至第二季末，我們的投資組合包括遍布 32 個州 80 多個 MSA 的 174 家飯店。我們刻意組成這個投資組合，其策略意圖是長期為我們的股東創造強勁、穩定、風險調整後的回報。此策略的核心要素包括廣泛的地理多樣化，以減輕因集中投資於特定市場或依賴有限的需求產生器而產生的波動。重點關注行業中的高端精選服務領域，該領域的強勁消費者需求和高效的營運模式可帶來更高的利潤率。專注於希爾頓和萬豪品牌，這兩個品牌受益於廣泛的消費者認可和強大的忠誠度計劃。選擇屢獲殊榮的區域和國家第三方管理公司，且槓桿率較低。

Our management team has proven and refined this strategy over multiple business cycles spanning more than a decade and a half. During the past 90 days, in addition to listing the Company's shares on the New York Stock Exchange, we implemented a 50% reverse stock split, completed a $200 million tender offer and launched a share repurchase program. Over that same period, we continued to see strength in the majority of our markets. For the second quarter, comparable hotels RevPAR grew 6.2%, and adjusted hotel EBITDA grew 8.5% as compared to the second quarter of 2014. RevPAR growth was driven primarily by rate, with an increase in ADR of 5% and an increase of occupancy of just over 1%.

我們的管理團隊已經在超過十五年的多個業務週期中證明並完善了這項策略。在過去的 90 天裡，除了在紐約證券交易所上市公司股票外，我們還實施了 50% 的反向股票分割、完成了 2 億美元的要約收購併啟動了股票回購計畫。在同一時期，我們繼續看到大多數市場表現強勁。與 2014 年第二季相比，第二季同店可比飯店的 RevPAR 成長了 6.2%，調整後飯店 EBITDA 成長了 8.5%。 RevPAR 的成長主要受房價推動，其中 ADR 成長了 5%，入住率成長了 1% 多一點。

Economic and travel trends for the US remain strong. GDP for the second quarter was over 2%, and analysts expect it to accelerate to 3% to 3.5% in the second half of the year. Job growth continues, with over 200,000 jobs added in June, and unemployment is expected to be just over 5% by the year end. Business spending is expected to expand by 4% this year. Air travel continues to increase, and carriers are moving to expand capacity, which should result in lower travel costs for consumers. And while energy-dependent markets have seen some negative impact from low oil and gas prices, fuel prices continue to benefit drive-to markets.

美國的經濟和旅遊趨勢依然強勁。第二季GDP成長率超過2%，分析師預估下半年GDP成長率將加速至3%至3.5%。就業成長持續，6 月新增就業機會超過 20 萬個，預計年底失業率將略高於 5%。預計今年企業支出將成長4%。航空旅行持續增加，航空公司正在努力擴大運力，這將降低消費者的旅行成本。儘管依賴能源的市場受到了低油價和低天然氣價格的一些負面影響，但燃料價格仍有利於自駕遊市場。

On a national level, hotel supply growth continues to lag long-term averages. And occupancy growth in the vast majority of markets supports the assertion that on a national level, demand continues to outpace supply. Based on third-party data and looking specifically at projects currently under construction in the upper mid-scale, upscale and upper upscale categories, we expect supply growth nationally to be around 2.4% in the latter half of this year, and around 2% in 2016. For Apple Hospitality sub-markets, estimated supply growth rates are slightly lower than the national average, at a little less than 2% for the remainder of 2015 and 2016.

從全國來看，酒店供應成長仍落後於長期平均。絕大多數市場的入住率成長支持了這個論點：在全國範圍內，需求持續超過供應。根據第三方數據，並特別關注目前正在建造的中高檔、高檔和超高檔類別的項目，我們預計今年下半年全國供應增長率將在 2.4% 左右，2016 年將在 2% 左右。對於 Apple Hospitality 子市場，預計供應成長率略低於全國平均水平，2015 年剩餘時間和 2016 年的成長率略低於 2%。

Narrowing further to new upper mid-scale, upscale and upper upscale development within a 5-mile radius of our existing hotels, about 25% of our current portfolio has one or more new hotels under construction with anticipated opening before year end. About 20% of our portfolio has one or more hotels under construction within a 5-mile radius with an anticipated opening date in 2016. The impact of these new additions will vary widely, based on specific market demand, existing supply, relative location and condition of our existing assets, and quality of our property management team. In most instances, we believe our markets will quickly absorb the new supply, with little impact to our current operations. It is certainly worth noting that approximately 60% of our hotels do not have any upper mid-scale, upscale or upper upscale hotels under construction within a 5-mile radius.

進一步縮小範圍至我們現有酒店 5 英里範圍內的中高檔、高檔和超高檔新開發項目，我們目前的投資組合中約有 25% 有一家或多家新酒店正在建設中，預計年底前開業。我們投資組合中約有 20% 的酒店在 5 英里半徑範圍內擁有一家或多家在建酒店，預計於 2016 年開業。這些新酒店的影響將有很大差異，取決於特定的市場需求、現有供應、現有資產的相對位置和狀況，以及我們物業管理團隊的品質。在大多數情況下，我們相信我們的市場將迅速吸收新的供應，對我們目前的營運影響不大。值得注意的是，我們約 60% 的飯店在 5 英里半徑範圍內沒有任何正在建造的中高檔、高檔或超高檔飯店。

With occupancy stabilizing and rate growth driving higher margins, we anticipate continued strong fundamentals in our segment of the hotel industry through the remainder of this year and into 2016. Consistent with our experience in past cycles, improving operating fundamentals, combined with attractive debt markets, are bringing new investors into the hotel space. As these new entrants compete with the existing players for hotel assets, we tend to see less differentiation in cap rates as they are applied to assets and markets. This cap rate compression creates an optimal environment for portfolio refinement, as it enables us to sell and replace assets with minimal friction costs.

隨著入住率趨於穩定，房價成長推動利潤率上升，我們預計，今年剩餘時間和 2016 年，我們所處的酒店業領域將繼續保持強勁的基本面。與我們在過去週期中的經驗一致，不斷改善的營運基本面，加上具有吸引力的債務市場，正在吸引新的投資者進入酒店領域。由於這些新進業者與現有參與者競爭飯店資產，我們往往看到應用於資產和市場的資本化率差異較小。這種資本化率壓縮為投資組合優化創造了最佳環境，因為它使我們能夠以最小的摩擦成本出售和替換資產。

Earlier this year, we sold 19 assets in two separate transactions, for a total of approximately $208 million. These hotels were selected based on a variety of criteria, including location, size, age, market concentration and growth prospects, product competitiveness and near-term capital needs. Using proceeds from the sale of these assets, we purchased three hotels, and currently have five additional hotels under contract. In June we acquired the 156-room Hampton Inn in the historic area of downtown Fort Lauderdale, Florida, and the 110-room Hampton Inn in Cypress, California. Both assets are well-located in strong markets, benefiting from a mix of business and leisure demand generators. In each instance, we chose to replace existing management, and plan full renovations to reposition the assets within their respective markets.

今年早些時候，我們透過兩筆獨立交易出售了 19 項資產，總價值約為 2.08 億美元。這些飯店是根據多種標準選出的，包括地點、規模、年齡、市場集中度和成長前景、產品競爭力和近期資本需求。我們利用出售這些資產的收益購買了三家酒店，目前還有五家酒店正在簽約中。 6 月份，我們收購了位於佛羅裡達州勞德代爾堡市中心歷史街區的擁有 156 間客房的漢普頓酒店，以及位於加利福尼亞州賽普拉斯的擁有 110 間客房的漢普頓酒店。兩項資產均位於強勁市場的黃金地段，受益於商務和休閒需求的結合。在每種情況下，我們都選擇更換現有的管理層，並計劃進行全面翻新，以在各自的市場中重新定位資產。

In July we acquired the newly-constructed 170-room SpringHill Suites in Burbank, California. This boutique-style hotel is located within walking distance of downtown Burbank, and convenient to Hollywood attractions. This acquisition is the seventh hotel our team has purchased from the award-winning California hotel developer R.D. Olson. These three hotels had an average age of seven years, an average room count of 145, and an estimated RevPAR of $110. For comparison purposes, the 19 hotels sold earlier this year had an average age of 11 years, an average room count of 99, and an average RevPAR of $72. The Company currently has outstanding contracts for the Home2 Suites by Hilton in downtown Atlanta, Georgia, which is currently under construction; a Courtyard in Burbank, California; a Courtyard in San Diego, California. And the dual-branded Courtyard and Residence Inn located in downtown Syracuse, New York.

7 月份，我們收購了位於加州伯班克的新建的擁有 170 間客房的 SpringHill Suites 飯店。這家精品風格的飯店距離伯班克市中心僅幾步之遙，前往好萊塢景點也很方便。此次收購是我們團隊從屢獲殊榮的加州酒店開發商 R.D. Olson 購買的第七家酒店。這三家飯店的平均開業時間為 7 年，平均客房數量為 145 間，預計每間可用客房收入 (RevPAR) 為 110 美元。為了進行比較，今年稍早售出的 19 家飯店的平均開業時間為 11 年，平均客房數量為 99 間，平均每間可用客房收入為 72 美元。該公司目前持有位於喬治亞州亞特蘭大市中心的希爾頓欣庭套房酒店的未完成合同，該酒店目前正在建設中；加利福尼亞州伯班克的一座庭院；加利福尼亞州聖地亞哥的一個庭院。以及位於紐約州錫拉丘茲市中心的雙品牌萬怡酒店和Residence Inn酒店。

In general, the assets that we are acquiring are higher-quality, younger, larger and generate higher RevPAR than the assets we have sold. These assets are also located in more urban or higher-density suburban markets. While we have not limited our search for new acquisitions to a finite number of markets, we continue to seek out high-quality, select-service hotels in markets that benefit from multiple demand generators, and locations with proximity to attractive guest amenities. So long as current market dynamics persist, we will continue to look for opportunities to refine our portfolio by selling small groups of properties and selling individual assets, using the proceeds from sale of currency.

整體而言，我們收購的資產比我們出售的資產品質更高、更年輕、規模更大，並且產生的 RevPAR 也更高。這些資產也位於更城市化或更高密度的郊區市場。雖然我們並沒有將新收購的搜尋範圍限制在有限數量的市場中，但我們仍在受益於多種需求產生器的市場中尋找高品質、精選服務的酒店，並且靠近有吸引力的客人設施。只要當前的市場動態持續存在，我們就會繼續尋找機會，透過出售小批房產和個人資產，利用出售貨幣的收益來完善我們的投資組合。

We listed our Company with one of the strongest balance sheets in the industry. In addition to providing us with security through economic cycles, this also allows us flexibility to pursue accretive transactions. To this end, the Board authorized a share buyback program up to $500 million. And on July 8, we put in place a 10b5-1 plan to enable us to purchase shares opportunistically during blackout periods. We have capacity to fully fund this program using availability on our current line of credit. Our balance sheet also uniquely positions us to grow the platform through individual acquisitions, or to act as a consolidator should the opportunity present itself.

我們的公司是業內資產負債表最強勁的公司之一。這不僅為我們提供經濟週期中的安全保障，也使我們能夠靈活地進行增值交易。為此，董事會批准了高達5億美元的股票回購計畫。 7 月 8 日，我們實施了 10b5-1 計劃，以便我們能夠在禁售期內適時購買股票。我們有能力利用現有的信用額度為該計劃提供全額資金。我們的資產負債表也使我們能夠透過單一收購來發展平台，或在機會出現時充當整合者。

As we consider these opportunities, whether purchasing shares in our own Company, acquiring individual assets or exploring larger corporate transactions, we will act only when the opportunity is consistent with our operating philosophy and corporate strategy. And where we anticipate the transaction to be meaningful accretive for our current shareholders. We listed a platform that is large enough to be relevant, and efficiently operated in the absence of external growth. However, we see our balance sheet as an important differentiating factor for our Company, which will enable us to act in meaningful ways to enhance shareholder value as opportunities arise. At this time, I'd like to turn the discussion over to Krissy to provide additional detail of the industry overall, and performance across some of our key markets.

當我們考慮這些機會時，無論是購買我們自己公司的股份、收購個人資產或探索更大規模的公司交易，我們只會在機會符合我們的經營理念和公司策略時才會採取行動。我們預計此交易將為我們現有股東帶來有意義的增值。我們列出了一個足夠大的平台，該平台具有相關性，並且在沒有外部成長的情況下可以有效運作。然而，我們認為資產負債表是我們公司的一個重要的差異化因素，它將使我們能夠在機會出現時採取有意義的方式提高股東價值。現在，我想將討論交給 Krissy，讓她提供有關整個行業以及我們一些主要市場表現的更多細節。

Thank you, Justin. As mentioned, overall performance across the hotel industry and our portfolio remains very healthy. Industry-wide increases in demand continue to outpace new supply, and the majority of markets continue to see growth in both occupancy and rate. Over 70% of our hotels fall in the upscale chain scale, as categorized by Smith Travel. And for the second quarter and year to date, our comparable RevPAR outperformed the industry upscale category. Additionally, our Hilton and Marriott select-service brands compared favorably to the brand statistics, as reported by both companies in the recent earnings release.

謝謝你，賈斯汀。如上所述，整個酒店業和我們的投資組合的整體表現仍然非常健康。整個產業的需求成長持續超過新增供應量，大多數市場的入住率和房價持續成長。根據 Smith Travel 的分類，我們超過 70% 的飯店屬於高檔連鎖飯店。從第二季到今年迄今為止，我們的可比 RevPAR 表現優於業界高端類別。此外，正如兩家公司在最近的收益報告中所報告的，我們的希爾頓和萬豪精選服務品牌與品牌統計數據相比表現良好。

Our strong portfolio occupancy of 82% provide our operators greater ability to manage mix and shift business from lower-rated negotiated and discount segments into the higher-rated retail segment. [Softball] mixed management, in combination with increasing both group and transient rates in anticipation of the strong demand, led to a 5% increase in our average daily rate for the quarter.

我們強大的投資組合入住率高達 82%，為我們的營運商提供了更強大的能力來管理組合，並將業務從評級較低的協商和折扣部分轉移到評級較高的零售部分。 [Softball] 混合式管理，加上預期強勁需求而提高團體和臨時費率，導致本季我們平均每日費率上漲了 5%。

As we move into the third quarter, typically our highest occupancy quarter, we feel that there's even greater opportunity to maximize rate growth. July is off to a good start, with RevPAR at the top end of our range -- again, primarily rate-driven. Comparable hotel adjusted EBITDA margin increased by 70 basis points to a solid 40% for the quarter, and 110 basis points to 38% year to date. The previously-mentioned focus on increased rates helped drive the margin expansion, although it was temperate as a result of cost and disruption from the Company's transition of six management contracts. The Company continually reviews its managers' performance, and believes that these transitions will better-concentrate and align regional expertise, producing revenue and cost benefits in the future for both the transition hotels and other owned hotels in the same market.

隨著我們進入第三季度，通常是我們入住率最高的季度，我們認為有更大的機會來實現入住率的最大化。 7 月開局良好，RevPAR 處於我們預期的最高水準 —— 同樣，這主要受價格驅動。本季可比飯店調整後 EBITDA 利潤率上升 70 個基點至 40%，年初至今可比飯店調整後 EBITDA 利潤率上升 110 個基點至 38%。前面提到的對提高費率的關注有助於推動利潤率的擴大，儘管由於公司六份管理合約的轉移而產生的成本和乾擾，利潤率的擴大幅度不大。公司不斷審查其管理人員的表現，並相信這些轉型將更好地集中和協調區域專業知識，為轉型酒店和同一市場中的其他自有酒店在未來產生收入和成本效益。

While we were able to achieve reductions in real estate taxes in some markets through successful appeal efforts, it did not completely offset increased property taxes in other markets. We are encouraged that labor increases for our portfolio hotels have remained moderate. And our operators, in partnership with our asset management team, are doing a commendable job with controllable expenses.

雖然我們透過成功的上訴努力在某些市場實現了房地產稅的降低，但這並不能完全抵消其他市場增加的房產稅。令我們感到鼓舞的是，我們投資組合酒店的勞動力成長保持適度。我們的營運商與資產管理團隊合作，在控制費用的同時，也做出了令人稱讚的工作。

I will now take a moment to provide a few additional specifics related to regional performance for the second quarter. Our overall performance continues to be positively impacted by the Pacific region, which contributes approximately 20% of our hotel EBITDA. RevPAR was up 10% in this region, with Seattle, San Diego and San Jose markets among the top performers. Our properties within the South Atlantic region also performed well. Coming off a strong first quarter, we continued to see solid year-over-year RevPAR growth at 7% for the second quarter, with our Florida and Virginia hotels leading the group. Many of the hotels in this region benefited from strong leisure demand.

現在，我將花一點時間提供一些與第二季區域表現相關的額外細節。我們的整體業績繼續受到太平洋地區的正面影響，該地區貢獻了我們酒店 EBITDA 的約 20%。該地區的 RevPAR 上漲了 10%，其中在西雅圖、聖地牙哥和聖荷西市場表現最為出色。我們在南大西洋地區的物業也表現良好。繼第一季表現強勁之後，第二季我們繼續看到 RevPAR 年增 7%，其中佛羅裡達州和維吉尼亞州酒店表現最為出色。該地區的許多酒店都受益於強勁的休閒需求。

As for Texas, one of our larger markets, while a slowdown in the energy sector did negatively impact our Houston hotels, with only three hotels in the market, the impact on our overall performance is minimal. RevPAR growth at our Dallas-area hotels was hindered by weather-related cancellations in the second quarter. But we do expect improved results moving forward. Dallas continues to be one of the top employment growth markets in the country, benefiting from expansion in multiple sectors. Including trade, transportation and utilities, financial professional services, education, healthcare and leisure. Another top job growth market, Austin, with its multiple demand generators and attractive amenities, continues to show resilience, in spite of above-average supply growth.

至於我們較大的市場之一德州，雖然能源產業的放緩確實對我們休士頓的飯店產生了負面影響，但由於市場上只有三家飯店，因此對我們整體業績的影響微乎其微。由於第二季天氣原因導致的取消，我們達拉斯地區飯店的 RevPAR 成長受到了阻礙。但我們確實期待未來能取得更好的結果。受益於多個行業的擴張，達拉斯繼續成為美國就業成長最快的市場之一。包括貿易、運輸和公用事業、金融專業服務、教育、醫療保健和休閒。另一個就業成長最快的市場是奧斯汀，由於其擁有多個需求引擎和富有吸引力的便利設施，儘管供應成長高於平均水平，但仍繼續表現出韌性。

On the reinvestment front, we invested approximately $20 million in capital expenditures during the first half of 2015. And anticipate spending an additional $30 million to $40 million for the remainder of the year. We have and plan to consistently reinvest in our hotels. Which, in addition to our partnership with leading third-party managers, has resulted in our hotels earning industry-leading scores in guest satisfaction, based on TripAdvisor ratings. As one of the largest owners of Marriott- and Hilton-branded hotels, we believe our scale and brand experience allows us the ability to complete each step of our renovation process extremely efficiently and cost effectively. To reiterate, given our broad geographic diversity, I believe our portfolio will continue to benefit from the forecasted fundamental improvement in the industry. I will now turn the call over to Bryan.

在再投資方面，我們在 2015 年上半年投資了約 2,000 萬美元的資本支出。預計今年剩餘時間內還將支出 3,000 萬至 4,000 萬美元。我們已經併計劃持續對我們的酒店進行再投資。除與領先的第三方管理者合作外，根據 TripAdvisor 評分，我們的酒店在客人滿意度方面獲得了行業領先的分數。作為萬豪和希爾頓品牌酒店的最大業主之一，我們相信我們的規模和品牌經驗使我們能夠非常有效率且經濟地完成翻新過程的每一步。重申一下，鑑於我們廣泛的地域多樣性，我相信我們的投資組合將繼續受益於預測的產業基本面改善。現在我將電話轉給布萊恩。

Thank you, Krissy, and good morning, everyone. As Justin and Krissy discussed, with the trends across the hotel industry, as well as our portfolio remaining positive, we are maintaining our operational and financial outlook for the full year of 2015. Which includes expected comparable hotels RevPAR growth of approximately 5% to 7%, and adjusted EBITDA in the range of $310 million to $330 million. With a year-to-date June comparable hotels RevPAR growth of 6.9%, the second half of the year is anticipated to be slightly lower, due to continued improved to comparisons year over year and the timing of capital expenditures in 2015 versus 2014.

謝謝你，克麗西，大家早安。正如賈斯汀和克莉絲所討論的，鑑於整個酒店業的趨勢以及我們的投資組合保持積極態勢，我們維持 2015 年全年的營運和財務展望。其中包括預期可比飯店 RevPAR 成長率約為 5% 至 7%，調整後的 EBITDA 將在 3.1 億美元至 3.3 億美元之間。今年 6 月截至目前可比飯店 RevPAR 成長率為 6.9%，預計下半年成長率將略有下降，原因是年比持續改善，且 2015 年與 2014 年相比資本支出的時間有所變化。

The Company's second-quarter adjusted EBITDA increased by 5.5% as compared to the same three-month period last year, and increased approximately 20% year to date. Part of the year-to-date growth was due to the addition of 99 hotels in March 2014 from the Apple Seven and Apple Eight merger with the Company. For the three- and six-month periods ended June 30, 2015, adjusted EBITDA totaled $90.1 million and $162.2 million, respectively. On a comparable hotels basis, adjusted hotel EBITDA increased 8.5% for the quarter, and a little over 11% year to date through June. General and administrative expense for the three months ended June 30, 2015 and 2014, was $3.7 million and $6.6 million, respectively. For the first six months of 2015 and 2014, G&A expense was $9.2 million and $9.1 million, respectively.

該公司第二季調整後 EBITDA 與去年同期相比成長 5.5%，年初至今成長約 20%。年初至今的成長部分歸因於 2014 年 3 月 Apple Seven 和 Apple Eight 與公司合併後新增的 99 家飯店。截至 2015 年 6 月 30 日的三個月和六個月期間，調整後的 EBITDA 總額分別為 9,010 萬美元和 1.622 億美元。以可比飯店計算，本季調整後飯店 EBITDA 成長 8.5%，年初至今（截至 6 月）成長略高於 11%。截至 2015 年 6 月 30 日及 2014 年 6 月 30 日的三個月的一般及行政費用分別為 370 萬美元及 660 萬美元。 2015 年及 2014 年前六個月的一般及行政費用分別為 920 萬美元及 910 萬美元。

The quarter and year-to-date amounts benefited from an increase in fees from Apple REIT Ten, who we manage. The fee structure is tiered, based on the annual performance of Apple REIT Ten. And during the second quarter, Apple REIT Ten reached the top tier, which provided an additional $500,000 in fees as compared to last year and the first quarter of this year. $250,000 reflects the year-to-date catch-up for the fee recognized at a lower tier in the first quarter. The fees and costs reimbursement from Apple REIT Ten offset the G&A costs of providing the management services.

本季和年初至今的金額受益於我們管理的 Apple REIT Ten 費用的增加。費用結構是分級的，基於 Apple REIT Ten 的年度表現。而在第二季度，Apple REIT Ten 則躋身頂級行列，與去年和今年第一季相比，額外提供了 50 萬美元的費用。 25 萬美元反映了今年迄今對第一季度較低等級確認的費用的追補。 Apple REIT Ten 的費用和成本補償抵消了提供管理服務的 G&A 成本。

Also during the quarter, as a result of being listed, the Company's executive incentive plan provides that approximately 2/3 of any payouts will be paid in restricted stock, half of which would vest at the end of 2016. As a result, the quarter benefited by approximately $750,000, half of which is a catch-up from what was accrued in the first quarter, now being spread over two years instead of one. As compared to 2014, second-quarter G&A also improved, due to the timing of implementing our executive incentive plan. In 2014, the plan was implemented and began accruing in the second quarter, but was effective from March 2014.

此外，在本季度，由於上市，公司的高階主管激勵計畫規定，大約三分之二的支出將以限制性股票的形式支付，其中一半將在 2016 年底歸屬。因此，本季收益約為 75 萬美元，其中一半是第一季累積金額的補足，現在分兩年而不是一年支付。與 2014 年相比，由於實施高階主管激勵計畫的時機，第二季的 G&A 也有所改善。該計劃於2014年實施，並從第二季開始累積，但從2014年3月開始生效。

On the capital front, concurrent with the listing, the Company entered into an amendment and restatement of its existing credit facility, increasing the borrowing capacity to $965 million, and extending the maturity date. The $965 million credit facility is comprised of a $540 million revolving credit facility, with a term of four years plus a one-year extension option, and a $425 term limit facility with a five-year term. Interest under the new facility is based on our leverage ratio, and ranges from an annual rate of LIBOR plus 1.5% to 2.3%. At June 30, 2015, we had approximately $800 million of debt outstanding, with a current combined weighted average interest rate of approximately 4.1% for the remainder of 2015. Comprised of approximately $490 million of property level debt and $310 million outstanding on the unsecured credit facility.

在資本方面，與上市同時，公司對現有信貸安排進行了修訂和重述，將借款能力提高至 9.65 億美元，並延長了到期日。 9.65 億美元的信貸額度包括 5.4 億美元的循環信貸額度（期限為四年，另加一年的延期選擇權）和 4.25 億美元的定期限額信貸額度（期限為五年）。新貸款的利息是基於我們的槓桿率，從 LIBOR 年利率加 1.5% 到 2.3%。截至 2015 年 6 月 30 日，我們有大約 8 億美元的未償還債務，2015 年剩餘時間的當前綜合加權平均利率約為 4.1%。其中包括約 4.9 億美元的房地產債務和 3.1 億美元的無擔保信貸額度未償還債務。

Our combined unrestricted cash and undrawn capacity on our revolving credit facility at June 30 was approximately $655 million. Our outstanding debt is approximately 2.6 times trailing EBITDA, and roughly 19% of enterprise value at June 30, 2015. Also upon listing, the Company commenced a modified Dutch auction tender offer. Through the tender, which expired on June 22, the Company purchased approximately 10.5 million common shares at a purchase price of $19 per share, for an aggregate purchase price of approximately $200 million. The total common shares accepted for purchase represented approximately 97% of the common shares properly tendered and not properly withdrawn at the purchase price of $19. Payment for shares accepted for purchase occurred on June 24, and the shares repurchased were retired. The Company funded the tender offer and all related costs with borrowings under its credit facility.

截至 6 月 30 日，我們的循環信貸額度中的非限制現金和未提取額度總計約為 6.55 億美元。我們的未償債務約為 EBITDA 的 2.6 倍，約佔 2015 年 6 月 30 日企業價值的 19%。此外，在上市後，公司開始了修改後的荷蘭式拍賣要約收購。透過 6 月 22 日到期的招標，該公司以每股 19 美元的價格購買了約 1,050 萬股普通股，總購買價約為 2 億美元。接受購買的普通股總數約佔以 19 美元購買價格正確提交但未正確撤回的普通股的 97%。接受購買的股份的付款於 6 月 24 日發生，並且回購的股份已被註銷。該公司透過信貸額度下的借款為此次收購要約及所有相關費用提供資金。

As Justin mentioned, we have implemented a 10b5-1 share repurchase plan under our Board-approved $500 million share repurchase program, which became effective on July 8, subsequent to the completion of our tender. Because repurchases under a 10b5-1 plan are subject to certain pricing market and volume parameters, there's no guarantee as to the exact number of shares that will be repurchased under the plan. However, our objective in setting the plan's parameters was to take advantage of opportunities when our stock trades at a discount to our estimated net asset value.

正如賈斯汀所提到的，我們根據董事會批准的 5 億美元股票回購計劃實施了 10b5-1 股票回購計劃，該計劃在我們完成投標後於 7 月 8 日生效。由於 10b5-1 計劃下的回購受某些定價市場和數量參數的影響，因此無法保證根據該計劃將回購的股票的確切數量。然而，我們設定計劃參數的目標是利用我們的股票以低於估計淨資產價值的價格交易的機會。

Through July 31, the Company had purchased approximately 186,000 shares under the plan at a weighted average purchase price of $17.80, for a total of approximately $3.3 million. Purchases under the plan have been funded, and we plan to fund future purchases with availability under the Company's credit facility. The Company paid distributions of $0.327 per share during the second quarter of 2015. Based upon listing, our Board of Directors authorized a regular monthly cash distribution of $0.10 per common share. The annualized $1.20 per common share represents an annualized 6.6% yield on our July 31 closing price of $18.14. I will now turn it back over to Justin.

截至 7 月 31 日，該公司已根據該計劃以 17.80 美元的加權平均購買價購買了約 186,000 股，總計約 330 萬美元。該計劃下的採購已獲得資金，我們計劃利用公司的信貸額度為未來的採購提供資金。該公司在 2015 年第二季支付了每股 0.327 美元的分配。根據上市情況，我們的董事會授權每月定期以每股 0.10 美元的現金分配。每股普通股年化收益率 1.20 美元，相當於 7 月 31 日收盤價 18.14 美元的年化收益率 6.6%。現在我將把發言權交還給賈斯汀。

Thanks, Krissy and Bryan. In summary, individual fundamentals remain strong. Our portfolio of hotels is performing well, and numbers continue to improve. We continue to see evidence validating our strategy of investing in a geographically diverse portfolio of upscale select-service Marriott- and Hilton-branded hotels. And we have a balance sheet which positions us to act in meaningful ways to enhance shareholder value as opportunities present themselves, now and in the future. I'm pleased with the way our Company has transitioned into the public markets, and look forward to the months ahead of us. With that said, we would be happy now to respond to questions.

謝謝，克莉西和布萊恩。整體而言，個人基本面依然強勁。我們的酒店組合表現良好，數量持續增加。我們不斷看到證據證明我們的投資策略是投資於地理多樣化的高檔精選服務萬豪和希爾頓品牌酒店。我們擁有資產負債表，這使我們能夠在現在和將來抓住機會，採取有意義的行動來提升股東價值。我對我們公司向公開市場轉型的方式感到滿意，並期待未來的發展。話雖如此，我們現在很樂意回答問題。

(Operator Instructions)

（操作員指示）

And our first question comes from the line of David Loeb with Robert W. Baird. Please go ahead with your questions.

我們的第一個問題來自羅伯特·W·貝爾德 (Robert W. Baird) 的大衛·勒布 (David Loeb)。請繼續提問。

Good morning, Justin and team. I want to start with probably an easy one, and I think I know what you're going to say. But what are your latest thoughts about Apple Ten? It's a question we get a lot. Are you guys planning to acquire it? What's the process, how will that be handled?

早安，賈斯汀和團隊。我想從一個簡單的問題開始，我想我知道你要說什麼。但是您對 Apple Ten 的最新看法是什麼？這是我們經常遇到的問題。你們打算收購它嗎？流程是怎麼樣的，如何處理？

Good morning, David. We have spoken about this in the past. You know, Apple Ten represents a unique potential opportunity for us at Apple Hospitality. Of all of the portfolios that exist, it's the most consistent with our core strategy of investing in upscale select-service assets in the Hilton [and Marriott] families. That being said, Apple Ten has an independent board of directors. At some point in the near future, we anticipate they'll begin to explore liquidating options. But at this point, the board has not given any specific direction on that, and we do not have any inherent first right with that portfolio.

早安，大衛。我們過去曾談論過這個問題。您知道，Apple Ten 對我們 Apple Hospitality 來說是一個獨特的潛在機會。在現有的所有投資組合中，它最符合我們投資希爾頓（和萬豪）家族高檔精選服務資產的核心策略。話雖如此，Apple Ten 擁有獨立的董事會。我們預計，在不久的將來，他們將開始探索清算選項。但目前，董事會尚未就此給出任何具體指示，而且我們對該投資組合不擁有任何固有的優先權。

Okay. That actually helps. And can you talk a little bit more in depth about the buyback? What kind of pricing parameters? I can see where you bought in the range of where the stock is now, $17.80 average price. But do you think that there will -- is there a threshold, basically, above which you don't have interest?

好的。這確實有幫助。能否更深入地談談回購事宜？什麼樣的定價參數？我知道您買入的股票價格在目前的範圍內，平均價格為 17.80 美元。但是您是否認為——基本上是否存在一個門檻，超過這個門檻您就不會感興趣？

Well, when we set the parameters for our buyback, we were using our estimates of NAV. And we set them to be more aggressive as it got further away or below NAV in their pricing parameters. So as you've seen, we started out as kind of slow. We've continued to be in the market every day -- I mentioned through July 31. We've been in the market every day since then. And we believe the price right now is at a pretty nice discount that we'll continue to buy. I don't know if that helps, but we really set it around what our targeted NAV is, or estimate of NAV is.

嗯，當我們設定回購參數時，我們使用了資產淨值的估計。當其定價參數遠離或低於資產淨值時，我們將其設定得更具侵略性。正如你所看到的，我們一開始進展得有點慢。我們每天都繼續在市場上——我提到直到 7 月 31 日。從那時起我們每天都在市場上。我們相信現在的價格折扣相當不錯，我們會繼續購買。我不知道這是否有幫助，但我們確實是根據我們的目標淨值或淨值估計值來設定的。

That does. Do you want to elaborate on what that target is?

確實如此。您想詳細說明一下這個目標是什麼嗎？

(laughter) No, we will not disclose that. We have mentioned that our tender -- we have bought more than just the buyback program, obviously, through our tender. And we believe that the $19 is also a discount, and was accretive to shareholders -- remaining shareholders. So that gives a little more color to it. But I don't want to get any further than that.

（笑聲）不，我們不會透露這一點。我們已經提到，我們的招標——顯然，透過招標，我們購買的不僅僅是回購計劃。我們相信 19 美元也是一個折扣，並且對股東（剩餘股東）來說是增值的。這樣就為它增添了更多色彩。但我不想再進一步了。

Sure, okay. One more big picture. You've got balance sheet capacity, you could sell more assets, and it sounds like the uses of capital are acquisitions which, Justin, you talked about your interest in, or stock buybacks. Can you just give us an idea about how you view those tradeoffs? For example, do you see substantial asset sales going forward, and using that capital for acquisitions or stock buybacks?

當然可以。再來一張大圖。你有資產負債表容量，你可以出售更多資產，聽起來資本的用途是收購，賈斯汀，你談到了你的興趣，或者股票回購。您能否告訴我們您如何看待這些權衡？例如，您是否認為未來將有大量資產出售，並將這些資金用於收購或股票回購？

David, in my remarks I mentioned that we see a unique opportunity in the marketplace now, given the cap rate compression, to sell and to use proceeds from the sale of currency to buy assets, upgrading our portfolio. You know, our expectation, based on past experience, is those conditions will persist for the next 6, 12 months. I would anticipate, over that period of time, you'll see us selling and buying assets, and really remaining fairly neutral in terms of the size of our total portfolio. Our balance sheet at this point could be used to pursue individual acquisitions if we see deals that are meaningfully accretive. But at this point, it's more likely to be used, based on our current stock price, for share repurchases and/or for a larger corporate transaction, should it present itself in the future.

大衛，我在發言中提到，考慮到資本化率的壓縮，我們現在在市場上看到了一個獨特的機會，可以出售貨幣並使用出售貨幣的收益來購買資產，從而升級我們的投資組合。您知道，根據過去的經驗，我們預計這些情況將持續未來 6 到 12 個月。我預計，在這段時間內，你會看到我們出售和購買資產，並且就我們的總投資組合規模而言，實際上保持相當中立。如果我們發現有顯著增值潛力的交易，我們目前的資產負債表可以用來進行個別收購。但就目前而言，根據我們目前的股價，如果未來發生這種情況，它更有可能被用於股票回購和/或更大規模的公司交易。

Okay, that's helpful. I may come back with some more at the end. Thank you.

好的，這很有幫助。我可能最後會再帶回更多東西。謝謝。

Thank you. And our next question comes from the line of Jeff Donnelly with Wells Fargo. Please go ahead with your questions.

謝謝。我們的下一個問題來自富國銀行的傑夫唐納利。請繼續提問。

Yes, good morning, guys, and thanks for taking my question. I was just curious, first off, about trends you were seeing in oil patch markets. I apologize if you addressed that in your remarks; I got on a little late. Just curious if you've seen anything unfold there as the years progress?

是的，大家早安，感謝你們回答我的問題。首先，我只是好奇您在石油市場中看到的趨勢。如果您在評論中提到了這一點，我深表歉意；我來的有點晚了。我只是好奇，隨著時間的推移，您是否看到那裡發生了一些事情？

Go ahead, Kris.

繼續吧，克里斯。

Hi, Jeff, it's Krissy. How are you doing?

嗨，傑夫，我是克莉絲。你好嗎？

Good.

好的。

Okay. Well, the first thing I do want to say is a reminder that our portfolio has a very broad geographic diversity, so no one market has a significant impact on the rest of our portfolio. Houston, for example, represents about 2% of our EBITDA. But with that being said, we have three hotels in Houston, and we were actually down in the recent quarter 8%.

好的。嗯，我想說的第一件事是提醒大家，我們的投資組合具有非常廣泛的地理多樣性，因此沒有一個市場會對我們投資組合的其他部分產生重大影響。例如，休士頓約占我們 EBITDA 的 2%。但話雖如此，我們在休士頓有三家酒店，最近一個季度我們的酒店業務實際上下降了 8%。

With that being said, Houston has broad diversity. So, for example, the full-service Marriott Hotel was down the most. It was down 15%. But our Residence Inn in the West Energy Corridor right around the corner was only down 4%, because we had AT&T project business to help offset some of the oil and gas declines. And then in the Stafford market, for example, we had more diverse demand generators -- medical, FEMA -- following the floods. So we were actually up 6%. We do expect, in our conversations with the team, for the third quarter to continue to be soft. But the fourth quarter does look better, and we feel good, long term, about the Houston market.

話雖如此，休士頓仍然具有廣泛的多樣性。例如，提供全方位服務的萬豪酒店跌幅最大。下降了15%。但我們位於西能源走廊拐角處的 Residence Inn 酒店僅下降了 4%，因為我們有 AT&T 項目業務來幫助抵消部分石油和天然氣的下滑。例如，在斯塔福德市場，洪水過後，我們有更多樣化的需求來源──醫療、聯邦緊急事務管理署。所以我們實際上上漲了6%。在與團隊的對話中，我們確實預期第三季的業績將持續疲軟。但第四季的情況確實更好，從長遠來看，我們對休士頓市場充滿信心。

That's helpful. And setting aside where your equity price is currently, when you folks talk about acquisitions going forward, how do you think about the waiting between what I'll call traditional full-service or select-service hotels? And maybe focus on more, I'll say, full-service hotels that are like a rooms-only product? I think one of your peers has crept more that way. How do you think about that balance going forward?

這很有幫助。撇開你們目前的股權價格不談，當你們談論未來的收購時，你們如何看待我所說的傳統全方位服務酒店或精選服務酒店之間的等待？或許應該更專注於提供全方位服務的飯店，例如僅提供客房服務的飯店？我認為你的一位同事在這方面做得更好。您如何看待未來的平衡？

That's a good question. And we, over the past 15 years, have wrestled with that. There's some similarities between the two products -- the big box with limited F&B, and the select-service, purpose-built product. Our experience has always been more positive in the purpose-built upscale select-service assets. And I think as you look it up on a go-forward basis, we'll tend to continue to focus our attention in that space, and really exclusively on a go-forward basis. And I use that term a little bit broadly. There may be on occasion a one-off asset that falls outside of that. But by and large, you'll see us focusing on our core business, which has proven to be the most effective use of our capital to date.

這是個好問題。過去 15 年來，我們一直在努力解決這個問題。這兩種產品有一些相似之處——大型賣場提供有限的餐飲，而精選服務則提供專用產品。我們在專門打造的高檔精選服務資產方面的經驗一直更為積極。我認為，當你從未來的角度來看待這個問題時，我們傾向於繼續將注意力集中在這個領域，並且真正專注於未來。我使用這個術語的範圍比較廣。有時可能會有一次性資產不在該範圍內。但總的來說，你會看到我們專注於我們的核心業務，事實證明這是迄今為止我們資本最有效的利用方式。

And one last question. There some companies that -- as you think about acquisition opportunities, there are some companies out there that are private and contemplating becoming public, and obviously there's some existing public companies. I'm just curious, are there any opportunities that you see in that well of some companies that are maybe considering a public access, that are appealing to you or would fit with your strategy? Or are there any that you just say, it just wouldn't fit strategically, and isn't really on your radar screen?

最後一個問題。當您考慮收購機會時，您會發現有些公司是私人公司，正在考慮上市，而且顯然還存在一些現有的上市公司。我只是好奇，您是否看到一些公司可能正在考慮公開訪問，這些公司有哪些機會對您有吸引力或適合您的策略？或者您只是說，它從戰略上來說不合適，而且不在您的考慮範圍內？

Well, I mentioned in my remarks a couple of core criteria. First was that the acquisition candidate would need to be consistent with our core strategy, which is investment in upscale select-service assets. Really, to be more specific, we're, at this point, exclusively invested in Hilton and Marriott assets. So a potential acquisition candidate would need to be, by and large, select-service and extended-stay hotels within the Marriott and Hilton branded families. That narrows the prospects fairly dramatically.

嗯，我在我的評論中提到了幾個核心標準。首先，收購對象需要與我們的核心策略保持一致，即投資高檔精選服務資產。實際上，更具體地說，目前我們只投資希爾頓和萬豪的資產。因此，潛在的收購對像大致上需要是萬豪和希爾頓品牌旗下的精選服務和長住酒店。這大大縮小了前景範​​圍。

Beyond that, there would be issues of quality. We've worked diligently to build a portfolio of high-quality assets and to maintain those assets over our hold period. And as we look at potential acquisition candidates, there's a range of quality, even among those who have invested specifically in our space. And then the third criteria would need to be that the transaction itself would need to be accretive to our shareholders. I mentioned in my remarks, we listed a platform that's large enough to be relevant. We have 174 assets now, and we're operating efficiently from a G&A standpoint. So we don't have a mandate to grow, absent accretion for our current shareholders.

除此之外，還存在品質問題。我們努力建立高品質資產組合，並在持有期內維持這些資產。當我們尋找潛在的收購對象時，我們會發現它們的素質參差不齊，即使是那些專門在我們的領域進行投資的公司也是如此。第三個標準是交易本身需要為我們的股東帶來增值。我在我的演講中提到，我們列出了一個足夠大的、具有相關性的平台。我們現在擁有 174 項資產，從一般及行政管理角度來看，我們的營運效率很高。因此，如果沒有現有股東的增值，我們就沒有成長的授權。

All right, thank you.

好的，謝謝。

Thank you. And our next question comes from the line of Anthony Powell with Barclays. Please go ahead with your questions.

謝謝。我們的下一個問題來自巴克萊銀行的安東尼·鮑威爾。請繼續提問。

Hi, good morning, everyone. Do you expect the upscale segment to continue to outperform in RevPAR growth? You've benefited from these trends over the past few years. And over the next couple of years in the cycle, do you continue to expect demand growth to outstrip supply in that particular chain scale?

大家好，早安。您是否預計高端酒店市場的 RevPAR 成長將繼續保持領先？在過去幾年裡，您已經從這些趨勢中受益。在接下來的幾年週期中，您是否仍預期該特定鏈規模的需求成長將超過供應？

You know, we do. And that would be consistent with our experience in past cycles. At early points in the cycle, because of the higher volatility in full-service and luxury assets, they tend to see more dramatic rebound in the early part of the cycle. As those assets begin to stabilize, we see a shift, in terms of growth pattern, towards our type of assets. I think layered on top of that now, given the dramatic improvement in product quality, and the increased distribution within the brands that were a part of the Marriott and Hilton select-service brands, we've seen a consumer shift, in terms of preference towards those brands. All of that is combined to really drive our operating performance to date. We anticipate that will continue through the remainder of the cycle.

你知道，我們確實這麼做。這與我們在過去的周期中的經驗一致。在周期的早期階段，由於全方位服務和奢侈品資產的波動性較高，它們往往在周期早期出現更劇烈的反彈。隨著這些資產開始穩定，我們看到成長模式轉變為我們的資產類型。我認為，現在，鑑於產品品質的顯著提高，以及萬豪和希爾頓精選服務品牌旗下品牌分銷的擴大，我們已經看到消費者對這些品牌的偏好發生了轉變。所有這些因素結合起來，真正推動了我們迄今為止的經營績效。我們預計這種情況將持續整個週期。

All right, great. That's it for me. Thanks a lot.

好的，太好了。對我來說就是這樣。多謝。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Our next question comes from the line of Bob LaFleur with JMP. Please go ahead with your questions.

我們的下一個問題來自 JMP 的 Bob LaFleur。請繼續提問。

Hi, Good morning. I was wondering if you could talk a little bit about the supply outlook. The supply outlook has been very low. But what supply growth there is, is typically in that part of the market where you guys compete. I think 2/3 of the rooms under construction are upscale or upper mid-scale right now. Could you just take us through your portfolio real quickly, and tell us what the competitive new supply outlook is like -- how many cranes are in your markets, et cetera, that kind of stuff?

你好，早安。我想知道您是否可以談談供應前景。供應前景一直非常低迷。但供應的成長通常發生在你們競爭的市場部分。我認為目前正在建造的房間中有三分之二都是高檔或中高檔的。您能否快速地向我們介紹一下您的投資組合，並告訴我們新的競爭供應前景如何——您的市場中有多少台起重機，等等？

Sure, I'd be happy to. Good morning. In my earlier remarks, I mentioned several statistics based on supply growth that we're seeing in our market. Nationally speaking, we continue to see demand outstrip supply. As we look at our particular sub-market, supplies tend to be, or on average is lower -- supply growth is lower than the national average. And then looking further, drilling down further to new hotels within a 5-mile radius of ours, we have approximately 60% of our markets that don't have any new hotels under construction.

當然，我很樂意。早安.在我之前的評論中，我提到了我們在市場上看到的基於供應成長的幾個統計數據。從全國範圍來看，我們仍然看到需求超過供應。當我們觀察我們的特定子市場時，供應量趨於或平均較低——供應增長低於全國平均水平。然後進一步深入研究我們周圍 5 英里範圍內的新酒店，我們發現大約 60% 的市場沒有在建的新酒店。

As we look at supply, it's important to note that we tend -- and I think consistent with the way consumers look at products -- to group categories. So we look at upper mid-scale, upscale and upper upscale assets in their entirety. Our experience has been that consumers will shift back and forth between those product types, based on the purpose of their trip or the quality of the assets within the individual markets. You know, Hampton Inn is not an upscale brand by definition. But you and I both know that in the mini-market, the Hampton Inn is as nice as those assets that fit within the upscale category. So to exclude upper mid-scale, and looking at supply, doesn't tend to make a lot of sense.

當我們審視供應時，重要的是要注意，我們傾向於——我認為這與消費者看待產品的方式一致——對產品進行分組。因此，我們會從整體上看待中高檔、高檔和超高檔資產。我們的經驗是，消費者會根據旅行目的或各市場內的資產品質在這些產品類型之間來回轉換。你知道，漢普頓酒店從定義上來說並不是一個高檔品牌。但你我都知道，在小型市場中，漢普頓酒店與那些屬於高檔類別的酒店一樣好。因此，排除中高端產品並只考慮供應量，往往沒有太大意義。

Generally speaking -- and there are a few markets that are notable exceptions -- I think it's been highly publicized that there's been a tremendous amount of new supply growth in New York, Houston, Miami. There are a few other markets where supply growth has been significant. But by and large, we continue to see supply growth at a reasonable level, based on the demand growth we're seeing, and still lagging that demand growth.

總體而言——也有一些市場是明顯的例外——我認為，紐約、休士頓、邁阿密的新增供應量大幅增長這一消息已得到廣泛宣傳。還有一些其他市場的供應量也顯著成長。但總體而言，根據我們看到的需求成長，我們繼續看到供應成長處於合理水平，並且仍然落後於需求成長。

One of your recent acquisitions was a new-built property. Is the flip side of this increase in supply of newly constructed upscale hotels, is that an opportunity for you for acquisitions?

您最近收購的資產之一是一棟新建的房產。新建高檔飯店供應量增加的另一方面是否對您來說是一個收購的機會？

We think so. Looking back again over the past decade and a half at the hotels we've acquired, between 20% and 30% of the hotels we've acquired, we've acquired at [CFO]. Many of those properties have been acquired through relationships that we have developed with strategic development management partners across the country. You know, that acquisition, or the acquisition of newly-built hotels, enables us to get into markets that we want to be in, to have some say in the development of a product and the amenities that it will offer our guests. And the selection of a specific brand that we think is the best fit for that particular market.

我們是這樣認為的。回顧過去十五年我們收購的飯店，其中 20% 到 30% 是在 [CFO] 收購的。許多房產都是透過我們與全國各地的策略開發管理合作夥伴建立的關係獲得的。您知道，收購或收購新建酒店使我們能夠進入我們想要進入的市場，並在產品開發和為客人提供的便利設施方面擁有發言權。並選擇我們認為最適合特定市場的特定品牌。

There was a period of time early in the recovery where there were very few newly built hotels. And really, the market tightened fairly dramatically, as potential investors chased the few existing and fairly young assets that were on the marketplace. I think on a go-forward basis, you'll continue to see us looking to acquire hotels that are newly built. They reflect the latest and greatest in brand standards. And in many instances, those assets are built to specs beyond the prototype, and we think will have a longer life and longer relevance with our consumers.

在經濟復甦初期，新建的飯店非常少。事實上，由於潛在投資者追逐市場上少數現有且相當年輕的資產，市場收緊程度相當顯著。我認為，從未來來看，您將繼續看到我們尋求收購新建的酒店。它們體現了最新、最好的品牌標準。在許多情況下，這些資產都是按照超出原型的規格建造的，我們認為它們將具有更長的壽命並與我們的消費者保持更長久的相關性。

Just on a related question, more big picture, you have a lot of experience in this particular part of the industry. What percentage of new-built properties, of upscale properties, would you say that the developer is developing with a intention to sell at close to CO, or hold it for a longer period of time? Just trying to get a sense of what the opportunity is for you.

就相關問題而言，從更大角度來看，您在該行業的這個特定領域擁有豐富的經驗。您認為開發商在開發新建房產和高檔房產時，打算以接近 CO 的價格出售或長期持有的比例是多少？只是想了解一下對你來說這是一個什麼樣的機會。

In our experience -- and again, it will vary slightly. But in our experience, a significant portion of the new-built assets are being built at this point in time with the intent to sell, either at CFO or within the first five to seven years prior to the first renovation cycle. We see that it as a huge opportunity. As we entered the industry over a decade and a half ago, it was highly segmented, with a large number of individual developers and managers who had built small portfolios of assets. I think as the industry has continued to develop and we've seen more consolidation in ownership, the individual developers have benefited from liquidity, not having all of their assets -- all of their worth tied in individual assets. We've seen that as a huge opportunity, as I mentioned before, to partner with groups that have award-winning development and management programs. And to build our portfolio in conjunction with their efforts.

根據我們的經驗——再次強調，它會略有不同。但根據我們的經驗，目前建造的很大一部分新建資產都是為了出售，要么在 CFO 出售，要么在第一個翻新週期前的五到七年內出售。我們認為這是一個巨大的機會。當我們十五年前進入這個行業時，它高度分散，有大量的個人開發人員和管理人員建立了小型資產組合。我認為，隨著產業的不斷發展和所有權的進一步整合，個人開發商已經從流動性中受益，他們不再將所有資產——所有價值都與個人資產掛鉤。正如我之前提到的，我們認為這是一個巨大的機會，可以與擁有屢獲殊榮的開發和管理專案的團體合作。並結合他們的努力來建立我們的投資組合。

Okay, thanks. And just to shift gears for a second, obviously this has been a very volatile earnings season. And the big question is, where are we in the cycle, and what is the fundamental outlook? There's certainly a bearish camp and a bullish camp. I'm just curious. You gave -- and everyone is trying to figure out also how the rest of the year plays out, how disruptive is the holiday schedule going to be in the third quarter. Just related to that, as I look at your RevPAR guidance -- I think it's 5% to 7% -- what is the difference between the 5% scenario and the 7% scenario this year, just based on what you guys are seeing out there?

好的，謝謝。換個話題，顯然這是一個非常動盪的收益季節。最大的問題是，我們處於週期的哪個階段，基本前景如何？確實存在看跌陣營和看漲陣營。我只是好奇。你給了——每個人都在試圖弄清楚今年剩餘時間的情況如何，第三季的假期安排將造成多大的干擾。與此相關的是，當我查看您的 RevPAR 指導時 - 我認為它是 5% 到 7% - 根據您所看到的情況，今年 5% 的情景和 7% 的情景之間有什麼區別？

To date, we've been at the high end of that range. And let me go back and answer your first question, which was where are we in the cycle. And maybe Krissy can give you a little bit more color on our specific portfolio. Our view is that we're in a maturing phase of the cycle. But based on what we're seeing in the way of demand growth, continuing occupancy growth at our particular hotels, and the muted or mitigated supply growth, we continue to feel very positive. If you're separating groups into two camps, the bulls and the bears, I would say we would be in the bull camp.

到目前為止，我們已經處於該範圍的高端。讓我回過頭來回答你的第一個問題，那就是我們處於週期的哪個階段。也許 Krissy 可以為您提供更多關於我們具體投資組合的詳細資訊。我們認為我們正處於週期的成熟階段。但根據我們所看到的需求成長、特定飯店的持續入住率成長以及低迷或減緩的供應成長，我們仍然感到非常樂觀。如果要把群體分成兩個陣營，也就是多頭和空頭，我會說我們屬於多頭陣營。

You know, as we look forward -- and I think that would be consistent with what you've probably heard from the majority of the other groups in our sector. Interestingly, individual markets perform differently at different points in the cycle. And we spoke earlier about Houston. The fact that Houston would be soft when the rest of the country is doing extremely well, is entirely consistent with our experience through past cycles. Different elements of the US economy fuel other elements. So the fact that oil and gas prices have remained low, negatively impacts those markets that are nearly exclusively dependent on that, but benefit the remainder of the US economy. And if you look at economic growth in the economy, which has been constant, if not exceptionally strong, in large part, that's the result of continued low oil and gas prices, which facilitate trade and travel.

您知道，當我們展望未來時——我認為這與您從我們部門的大多數其他團體中聽到的可能一致。有趣的是，各市場在周期的不同階段表現不同。我們之前談到了休士頓。當全國其他地區都表現優異時，休士頓卻表現疲軟，這與我們過去週期的經驗完全一致。美國經濟的不同要素相互促進。因此，石油和天然氣價格持續低迷，對那些幾乎完全依賴石油和天然氣的市場產生了負面影響，但對美國經濟的其他部分卻有利。如果你看一下經濟成長情況，你會發現經濟成長一直很穩定，甚至異常強勁，這在很大程度上是石油和天然氣價格持續走低的結果，這促進了貿易和旅遊。

So we will see movement in individual markets, and there may be some markets that are softer than others. The beat of our particular portfolio is that we intentionally structured it to be broadly, geographically diversified, so that we benefited from national trends. And we're subject to trends uniquely impacting specific markets. With that, Krissy, can give you a little bit more detail on our specific portfolio.

因此，我們將看到個別市場的變動，並且某些市場可能比其他市場更為疲軟。我們特定投資組合的優勢在於，我們有意將其建構成廣泛的、地域多樣化的，以便從國家趨勢中受益。我們受到對特定市場產生獨特影響的趨勢的影響。透過這個，Krissy 可以向您提供有關我們具體投資組合的更多詳細資訊。

Sure, I'll give you a little bit more color. As mentioned earlier in my comments, the July results, we feel good about. They're consistent with what has been reported for the industry. And in fact, turning in the hotel forecast for August and September, we do feel very positive about the third quarter. We don't anticipate a deceleration of RevPAR growth as compared to recent results. When you get into the fourth quarter, we do have some additional renovations, a larger number of renovations year over year in the fourth quarter. We think it's the appropriate time for us to go ahead and get those renovations done. So that is factored into our full-year outlook.

當然，我會給你多一點色彩。正如我之前在評論中提到的，我們對七月的結果感到滿意。它們與業界報道的情況一致。事實上，根據 8 月份和 9 月份的飯店預測，我們對第三季確實感到非常樂觀。與近期結果相比，我們預計 RevPAR 的成長不會放緩。進入第四季度，我們確實進行了一些額外的翻新，第四季度的翻新數量比去年同期有所增加。我們認為現在是繼續進行並完成這些翻修工作的適當時機。因此，這已計入我們的全年展望。

Are those renovations in markets that are seasonally slower in the fourth quarter, or are they pretty consistent?

這些翻新工程是否發生在第四季季節性放緩的市場中，還是相當一致的？

Absolutely. The majority of them are seasonally slower in the fourth quarter, yes.

絕對地。是的，大多數公司在第四季都出現了季節性放緩。

Okay, thank you.

好的，謝謝。

Thank you.

謝謝。

Our next question is a follow-up from David Loeb with Robert W. Baird. Please go ahead with your questions.

我們的下一個問題是 David Loeb 和 Robert W. Baird 的後續問題。請繼續提問。

Hi, again. Just one more topic. Do you have any way of tracking the legacy shareholders from the non-traded REIT days, and whether those guys have sold out? How do you measure that churn?

嗨，又見面了。再來一個話題。您有什麼辦法可以追蹤非交易房地產投資信託基金時期的遺留股東嗎？這些人是否已經賣光了他們的股份？您如何衡量這種流失？

That's a fair question. We really don't have a way to track all of our shareholders on an individual basis and to see how many of our likely shareholders have churned out. We've had the conversation in the past. We like our shareholder base, the retail shareholder base that we have. And have been happy to see, anecdotally, that a large number of those shareholders have stayed with us. If you look at the performance of our stock and the way that it's traded post-listing, while we feel that it continues to trade at a discount to the real value, the stability relative to our peers, I think, speaks to the fact that our shareholders have been thoughtful as they've looked at valuation and made sales decisions. Our expectation, based on past experience, would be that a significant number of those shareholders will stay with us long term.

這是一個合理的問題。我們確實沒有辦法逐一追蹤所有股東，也無法知道有多少潛在股東已經流失。我們過去曾討論過這個問題。我們喜歡我們的股東基礎，也就是我們擁有的散戶股東基礎。並且很高興地看到，許多股東仍然留在我們這裡。如果你看一下我們股票的表現和上市後的交易方式，雖然我們覺得它的交易價格仍然低於實際價值，但我認為，相對於同行的穩定性表明我們的股東在考慮估值和做出銷售決策時是經過深思熟慮的。根據過去的經驗，我們預期其中相當一部分股東將長期與我們合作。

Great. And how about the tender? Were you able to tell from the tender whether that was mostly legacy shareholders?

偉大的。那麼投標情況怎麼樣呢？您是否能從招標中看出其中主要是否都是遺留股東？

Generally, yes, it was mainly legacy shareholders. Of course, they had the most in it. It wasn't 100% legacy shareholders, but the majority was legacy shareholders.

一般來說，是的，主要是遺留股東。當然，他們擁有的最多。雖然不是 100% 都是遺留股東，但大多數都是遺留股東。

Great, thank you.

太好了，謝謝。

Thank you, David.

謝謝你，大衛。

Thank you. This concludes our question-and-answer session. I'd like to turn the floor back to Mr. Knight for closing remarks.

謝謝。我們的問答環節到此結束。我想請奈特先生作最後發言。

Thank you. On behalf of all of us at Apple Hospitality, I would like to thank you for joining us this morning. We look forward to the continued dialogue, and hope that as you travel, you'll take an opportunity to stay with us at our hotels. Have a great weekend. We'll look forward to talking to you soon.

謝謝。我謹代表 Apple Hospitality 全體感謝您今天早上的到來。我們期待繼續對話，並希望您在旅行時能有機會入住我們的酒店。祝你周末愉快。我們期待很快與您交談。

Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開您的線路，感謝您的參與。