Apple Hospitality REIT Inc (APLE) 2015 Q4 法說會逐字稿

Greetings and welcome to the Apple Hospitality REIT fourth-quarter and full-year 2015 earnings conference call.

歡迎參加 Apple Hospitality REIT 2015 年第四季和全年財報電話會議。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Kelly Clarke Director of Investor Services. Thank you, you may begin.

提醒一下，本次會議正在錄製中。現在我很高興介紹您的主持人，投資者服務總監凱利克拉克女士。謝謝，你可以開始了。

Thank you. Good morning and welcome to Apple Hospitality REIT's fourth-quarter and full-year 2015 earnings call on this the 26 of February, 2016. Today's call will be based on the fourth-quarter and full-year 2015 earnings release which was distributed yesterday afternoon.

謝謝。早安，歡迎參加 2016 年 2 月 26 日 Apple Hospitality REIT 的 2015 年第四季和全年財報電話會議。今天的電話會議將基於昨天下午發布的 2015 年第四季和全年財報。

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.

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。

Participants should carefully review our financial statements and the notes thereto as well as the risk factors described in Apple Hospitality's 2015 Form 10-K 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.

參與者應仔細審查我們的財務報表及其附註以及 Apple Hospitality 2015 年 10-K 表格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 measures as included in yesterday's earnings release. For a copy of the earnings release, or additional information about the Company, please visit applehospitalityreit.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。我們鼓勵參與者檢視昨天收益報告中這些指標與 GAAP 指標的對帳情況。如需查看收益報告副本或有關該公司的更多信息，請訪問 applehospitalityreit.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 fourth-quarter and full-year 2015 and an outlook for the sector and for the Company. Following the overview will have a question-and-answer session.

今天上午，我們的總裁兼執行長賈斯汀奈特 (Justin Knight)、營運長克里斯西加思賴特 (Krissy Gathright) 和財務長布萊恩皮里 (Bryan Peery) 將概述我們 2015 年第四季和全年的業績以及對該行業和公司的展望。概述之後將有一個問答環節。

It is now my pleasure to turn the call over to Justin Knight.

現在我很高興將電話轉給賈斯汀奈特 (Justin Knight)。

Thank you, Kelly. Good morning and welcome to Apple Hospitality REIT's fourth-quarter and full-year 2015 earnings call. We are pleased to report another year of strong operations for Apple Hospitality.

謝謝你，凱利。早安，歡迎參加 Apple Hospitality REIT 2015 年第四季和全年財報電話會議。我們很高興地報告 Apple Hospitality 又取得了強勁的營運表現。

For the full-year 2015, comparable hotels RevPAR grew by 6.5%, and adjusted EBITDA grew by 13.7%. RevPAR growth was driven primarily by rate, with an increase in ADR up 5% and growth and occupancy of 110 basis points to 77.2% for the year.

2015 年全年，可比飯店 RevPAR 成長 6.5%，調整後 EBITDA 成長 13.7%。 RevPAR 的成長主要受房價推動，全年 ADR 成長 5%，入住率成長 110 個基點，達到 77.2%。

With 179 hotels located in more than 80 MSAs across 32 states, our portfolio of primarily upscale select service hotels, exclusively aligned with the Hilton and Marriott families of brands, is one of the largest most geographically diverse hospitality portfolios in the United States. This geographic breadth also provides the complementary benefit of exposure to a myriad of demand generators, industries, and service businesses.

我們的酒店組合主要由高檔精選服務酒店組成，分佈在 32 個州的 80 多個大都會統計區 (MSA) 中的 179 家酒店，與希爾頓和萬豪品牌系列獨家合作，是美國規模最大、地域分佈最廣泛的酒店組合之一。這種地理廣度也提供了接觸無數需求產生者、產業和服務業務的補充優勢。

Given the strength and diversity of our hospitality platforms, we anticipate 2016 will be another positive year for Apple. Although market volatility and uncertainty within the lodging sector continue to make headlines, it's important to keep in mind that in 2015 the hotel industry reported record performance across every top-line metric.

鑑於我們酒店平台的實力和多樣性，我們預計 2016 年對 Apple 來說又將是積極的一年。儘管住宿業的市場波動和不確定性繼續成為頭條新聞，但重要的是要記住，2015 年酒店業在各項營收指標上都創下了歷史新高。

Approximately 89% of US submarkets generated gains in RevPAR in 2015, with declines predominately reported across oil and gas dependant markets. Although increased supply growth, particularly in the upscale category, provides concerns about the hotel cycle's longevity, supply growth through 2017 is projected to remain below long-term averages.

2015 年，約有 89% 的美國子市場的 RevPAR 實現成長，而主要依賴石油和天然氣的市場則下滑。儘管供應量成長（尤其是高檔飯店）引發了人們對飯店週期持續時間的擔憂，但預計到 2017 年供應量成長仍將低於長期平均水準。

Our broad geographic diversification has mitigated the impact of supply growth, which focused primarily on a finite number of gateway markets and large urban centers early in the cycle. While during the fourth quarter construction starts increased in several of our markets, at year end 50% of our hotels had no new supply in the upper mid-scale, upscale, or upper-upscale categories under construction within a five-mile radius.

我們廣泛的地理多元化減輕了供應成長的影響，供應成長在週期早期主要集中在有限數量的門戶市場和大型城市中心。儘管第四季度我們多個市場的開工建設有所增加，但到年底，我們方圓五英里內 50% 的酒店沒有在建的中高檔、高檔或超高檔類別的新供應。

On the demand side, key economic indicators while not exceptionally positive, have been generally favorable. For our portfolio the impact of supply growth and demand in energy dependent markets was more than offset by growth in markets with demand generators in telecom, technology, healthcare, and other services.

需求方面，主要經濟指標雖然不是特別樂觀，但整體還是不錯的。對於我們的投資組合而言，依賴能源的市場的供應成長和需求的影響被電信、技術、醫療保健和其他服務等需求產生市場的成長所抵消。

Recent reports from the Bureau of Labor Statistics show the unemployment rate at 4.9%, which supports current analysts' forecasts for continued strength in disposable income. In addition, forecasts for real GDP growth are in the range of 2.2% to 2.4%, roughly in line with real GDP growth for 2015.

美國勞工統計局最近的報告顯示，失業率為 4.9%，這支持了當前分析師對可支配收入持續強勁的預測。此外，實質GDP成長預測在2.2%至2.4%之間，與2015年的實質GDP成長大致持平。

Corporate profits outside of the energy sector appear relatively stable, and while we expect weather in January and calendar changes in March to create drag on first-quarter RevPAR growth, we anticipate renewed strength as we move into the second and third quarters. While we remain optimistic about our prospects for the coming year, and about fundamentals for our portfolio specifically, we have limited ability to impact broad economic indicators that correlate with our business. However, we assembled our portfolio with the strategic intent to mitigate risk and volatility.

能源產業以外的企業利潤似乎相對穩定，雖然我們預計 1 月的天氣和 3 月的日曆變化會對第一季度的 RevPAR 成長造成拖累，但我們預計隨著進入第二季和第三季度，RevPAR 的成長將重新強勁。雖然我們對來年的前景以及我們投資組合的基本面仍然保持樂觀，但我們對與我們的業務相關的廣泛經濟指標的影響能力有限。然而，我們組建投資組合的策略意圖是降低風險和波動性。

In 2015, we worked to refine our portfolio through the selective sale and purchase of assets. We completed the disposition of 19 non-strategic properties and acquired seven hotels with better long-term growth potential. We currently have agreements in place for the potential purchase of four additional hotels, all of which are under construction. Assuming closing conditions are satisfied, we will acquire the hotels upon completion over the next 18 months. We will continue to explore opportunities to enhance our portfolio through selective property sales and accretive acquisitions when market conditions are right.

2015年，我們透過選擇性出售和購買資產來完善我們的投資組合。完成了19處非策略性物業的處置，並收購了7處具有較好長期成長潛力的飯店。目前，我們已經達成協議，可能購買另外四家酒店，這些酒店都在建設中。假設成交條件得到滿足，我們將在未來 18 個月內收購這些飯店。當市場條件合適時，我們將繼續探索透過選擇性房地產銷售和增值收購來增強我們的投資組合的機會。

These transactions will, when considered together, continue to fine tune our market mix and geographic diversification, enhance our operational effectiveness as an ownership entity and Management team, and ensure that our portfolio continues to have relevance and consumer appeal necessary to drive profitability. In addition we will look for opportunities to reduce our ownership in the few full-service upper-upscale assets we own where we feel we can achieve appropriate pricing and when we feel funds can be effectively redeployed to acquire assets more consistent with our core strategy, reduce leverage, or buy shares of our Company.

綜合考慮這些交易，將繼續調整我們的市場結構和地理多樣化，提高我們作為所有權實體和管理團隊的營運效率，並確保我們的投資組合繼續具有推動盈利所必需的相關性和消費者吸引力。此外，我們將尋找機會減少我們所擁有的少數全方位服務高檔資產的所有權，我們認為我們可以實現適當的定價，並且當我們認為資金可以有效地重新部署以收購更符合我們核心策略的資產、降低槓桿率或購買我們公司的股份時。

Our focus on building and maintaining a geographically diverse portfolio of upscale select service and extended stay product with concentrated Hilton and Marriott brand ownership, has enabled Apple to deliver strong returns to investors over multiple hotel cycles. On an operational level, our focused strategy enables us to develop powerful benchmarking analysis tools that our managers use to drive property level profitability.

我們專注於建立和維護地理上多樣化的高檔精選服務和長期住宿產品組合，並集中擁有希爾頓和萬豪品牌，這使得蘋果能夠在多個酒店週期內為投資者帶來豐厚的回報。在營運層面，我們的重點策略使我們能夠開發強大的基準分析工具，我們的管理人員可以使用這些工具來提高物業層面的獲利能力。

As we manage renovations, this same focus provides us with purchasing power and enables us to develop processes which drive efficiency and lower costs. During 2015, we invested approximately $59 million in our hotels, with approximately $25 million invested in the fourth quarter.

在我們管理翻新工程時，同樣的重點為我們提供了購買力，並使我們能夠開發提高效率和降低成本的流程。 2015年，我們在酒店方面投資了約5900萬美元，其中第四季度投資了約2500萬美元。

Our strategic reinvestment in our portfolio has resulted in an average effective age for our hotels of approximately 3 to 4 years based on their last renovations. As we discussed last quarter, we work to schedule our renovations at the most favorable time, so a significant number of our projects typically occur in the first and fourth quarters when occupancies in many of our markets are lower than they are at other times during the year.

我們對酒店投資組合進行了策略性再投資，根據最近的裝修情況，我們酒店的平均有效使用年限約為 3 至 4 年。正如我們上個季度所討論的那樣，我們努力在最有利的時間安排裝修工作，因此我們的大量項目通常發生在第一季度和第四季度，而此時我們許多市場的入住率都低於一年中的其他時間。

These quality enhancing investments better position our hotels to take advantage of continued rate growth opportunities and provide an important competitive advantage in future years as markets become more competitive due to supply growth or demand declines. In keeping with our disciplined reinvestment strategy, we anticipate investing approximately $50 million to $60 million in various scheduled renovation projects for approximately 25 properties during 2016.

這些提升品質的投資使我們的飯店能夠更好地利用持續的價格成長機會，並在未來幾年由於供應成長或需求下降而導致市場競爭加劇時提供重要的競爭優勢。根據我們嚴謹的再投資策略，我們預計 2016 年將對約 25 處房產的各種預定翻新項目投資約 5,000 萬至 6,000 萬美元。

As in years past, these renovations will be scheduled to minimize property level disruption. We ended the year with outstanding debt at approximately 3.1 times trailing adjusted EBITDA. The strength of our balance sheet is an important differentiating factor for our Company, providing us with additional security during periods of volatility and the flexibility to act in meaningful ways to enhance shareholder value.

與過去幾年一樣，這些翻新工程將按計劃進行，以盡量減少對酒店層面的干擾。截至年底，我們的未償債務約為調整後 EBITDA 的 3.1 倍。我們資產負債表的實力是我們公司的一個重要的差異化因素，它為我們在動盪時期提供了額外的安全保障，並讓我們能夠靈活地採取有意義的行動來提高股東價值。

At this time, I'd like to turn the discussion over to our Chief Operating Officer, Krissy Gathright, to provide additional detail on the industry overall and performance across some of our key markets.

現在，我想將討論交給我們的營運長 Krissy Gathright，請她提供有關整個行業以及我們一些主要市場表現的更多詳細資訊。

Thank you, Justin. In the fourth quarter our portfolio of hotels continued its strong performance, achieving comparable RevPAR growth of 5.9%, above the reported growth for the industry in the upscale category. With greater room for occupancy growth and modest new supply, industry suburban hotel markets continued to outperform urban locations, benefiting our broadly diversified portfolio.

謝謝你，賈斯汀。第四季度，我們的飯店組合持續保持強勁表現，每間可用客房收入 (RevPAR) 較去年同期成長 5.9%，高於高檔飯店業的報告增幅。由於入住率成長空間較大且新增供應量適中，郊區飯店市場表現持續優於城市地區，這有利於我們多元化的投資組合。

As is consistent with our trend for the year, over 30% of our hotels experienced double-digit RevPAR growth in the quarter. Even with two of our larger hotels in Anchorage and Seattle undergoing renovations during the quarter, our west coast hotels grew RevPAR 10.5%.

與今年的趨勢一致，本季我們超過 30% 的飯店實現了兩位數的 RevPAR 成長。儘管我們位於安克雷奇和西雅圖的兩家較大的酒店在本季度進行了翻新，但我們西海岸酒店的 RevPAR 仍增長了 10.5%。

There are only two states where our EBITDA contribution is greater than 10%, California and Texas. Our California markets, including among others the top 25 markets of Los Angeles, Anaheim and San Diego, continued their robust performance, averaging 16.5% RevPAR growth for the quarter. Our Texas market performance was mixed, with Dallas market RevPAR above the portfolio average and Houston and Austin below. Richmond, Boise, and Tucson are a few examples of emerging cities outside of the top 25 markets that are performing well due to diverse demand generators: government, universities, hospitals, a growing corporate base, and attractive leisure amenities.

只有兩個州我們的 EBITDA 貢獻超過 10%，即加州和德克薩斯州。我們的加州市場，包括洛杉磯、阿納海姆和聖地牙哥等前 25 個市場，持續保持強勁表現，本季平均每間可用客房收入成長 16.5%。我們在德州市場的表現好壞參半，達拉斯市場的 RevPAR 高於投資組合平均水平，而休士頓和奧斯汀則低於平均水平。里士滿、博伊西和圖森是前 25 個市場之外的新興城市的幾個例子，這些城市由於多樣化的需求驅動因素而表現良好：政府、大學、醫院、不斷增長的企業基礎和有吸引力的休閒設施。

As we move into 2016, for the full year we expect RevPAR to grow 3.5% to 5.5%. Taking into account tougher year-over-year comps, the Easter calendar shift, slightly lower group, some winter storm impact, and modestly higher renovation disruptions, we expect the first-quarter growth to be at the lower end of our outlook. In January, our portfolio RevPAR growth was above the industry and upscale category average, further accelerating in February.

進入 2016 年，我們預計全年 RevPAR 將成長 3.5% 至 5.5%。考慮到更嚴峻的同比形勢、復活節日曆的變化、略低的群體、一些冬季風暴的影響以及略高的裝修中斷，我們預計第一季的成長將處於我們預期的低端。 1 月份，我們的酒店組合 RevPAR 增幅高於行業和高檔酒店類別的平均水平，2 月份增幅進一步加快。

Turning to profitability, comparable hotel adjusted EBITDA margin increased 90 basis points to a strong 38.1% for the year, and remained flat at 35.1% for the fourth quarter. Fourth-quarter margin growth was impacted by retail-tenant turnover and management transition expenses related to Renaissance Hotel 57, as well as increases in property insurance, real estate taxes, and incentive management fees, somewhat offset by utilities savings.

談到獲利能力，可比飯店調整後的 EBITDA 利潤率全年上漲 90 個基點，達到 38.1%，第四季則持平於 35.1%。第四季利潤率成長受到零售租戶營業額和與文藝復興酒店 57 相關的管理過渡費用以及財產保險、房地產稅和激勵管理費增加的影響，但公用事業節省的部分抵消了這一影響。

With the continued improvement in the job market and state and locality mandated minimum wage increases, we have experienced a moderate escalation in wages. On a per-occupied-room basis, rooms wages increased approximately 2% for the year and 3% in the quarter.

隨著就業市場的持續改善以及州和地方強制提高最低工資標準，我們的工資水平出現了適度上漲。以每間入住客房計算，客房工資全年上漲約 2%，本季上漲約 3%。

Our asset management team ensures that our management company partners are regularly reviewing and adjusting market wages as needed to minimize turnover. Our managers utilize productivity tracking tools to achieve optimal labor scheduling efficiencies, while at the same time promoting high employee and guest satisfaction. Our detailed property and brand benchmarking allows us to quickly identify payroll or other cost opportunities.

我們的資產管理團隊確保我們的管理公司合作夥伴定期審查並根據需要調整市場工資，以最大限度地減少人員流動。我們的經理利用生產力追蹤工具來實現最佳的勞動力調度效率，同時提高員工和客人的滿意度。我們詳細的財產和品牌基準測試使我們能夠快速識別工資或其他成本機會。

The previously mentioned retail-tenant turnover for Renaissance Hotel 57 will result in approximately $1.4 million less in EBITDA for the portfolio in the first quarter due to a lump sum lease termination payment we received in March of last year. We are currently in active negotiations to release the majority of the vacant space, but have not factored additional revenue into our outlook at this time.

由於我們去年 3 月收到的一筆一次性租約終止付款，前面提到的 Renaissance Hotel 57 零售租戶營業額將導致該投資組合第一季的 EBITDA 減少約 140 萬美元。我們目前正在積極協商釋放大部分空置空間，但目前尚未將額外收入納入我們的預期。

We are excited to report that we have completed a significant management contract restructuring project in 2015. We moved over 70% of our contracts to a standard form, we maintained our term flexibility with all of those contracts terminable within a year upon sale, we right-sized accounting, systems, revenue management, and other allocations, and most importantly we adjusted the management fee structure. Instead of earning a base management fee plus an incentive fee tied to an owner's priority threshold established at acquisition, there is now just one variable management fee ranging from 2.5% to 3.5% tied to performance on our balance scorecard.

我們很高興地宣布，我們已於 2015 年完成了一項重要的管理合約重組專案。我們將超過 70% 的合約轉換為標準格式，保持了合約期限的靈活性，所有合約均可在出售後一年內終止，我們調整了會計、系統、收入管理和其他分配的規模，最重要的是，我們調整了管理費結構。現在不再收取基本管理費加上與收購時確定的所有者優先權門檻掛鉤的激勵費，而是只收取與平衡記分卡上的績效掛鉤的 2.5% 至 3.5% 不等的可變管理費。

Balance scorecard metrics include: gross operating profit performance versus budget; mid-travel market index targets; brand and trip advisor guest satisfaction scores; flex-flow targets; and forecast accuracy. The goal of adjusting the fee structure was not to reduce overall management fees. We expect these changes to be cost neutral in 2016. Instead our goal was to establish a fee structure that better aligns with the interest of the owner and manager, rewards those managers who outperform in all stages of the cycle, and ultimately drive improved performance. As we look ahead, we embrace the opportunity to leverage our data-driven and analytical approach to asset management to continue to yield strong performance at our properties in 2016.

平衡記分卡指標包括：總營業利潤表現與預算的關係；中期旅遊市場指數目標；品牌與旅遊顧問顧客滿意度分數；彈性流目標；和預測準確度。調整費用結構的目的並不是降低整體管理費用。我們預計這些變化在 2016 年不會對成本產生影響。相反，我們的目標是建立一個更符合所有者和管理者利益的費用結構，獎勵那些在周期各個階段表現優異的管理者，最終推動績效的提升。展望未來，我們抓住機遇，利用數據驅動和分析方法進行資產管理，在 2016 年繼續保持我們資產的強勁表現。

I will now turn the call over to Bryan.

現在我將把電話轉給布萊恩。

Thanks, Krissy, and good morning. To summarize a couple of numbers Justin and Krissy touched on, our comparable hotels RevPAR growth finished the year at 6.5% and 5.9% for the fourth quarter of 2015. We achieved adjusted EBITDA of $321.4 million for the full year, an increase of 13.7% over 2014, and we achieved $69.7 million, or a 7.3% increase for the fourth quarter of 2015 as compared to the same period in 2014.

謝謝，克麗西，早安。總結賈斯汀和克莉絲提到的幾個數字，我們同級飯店的 RevPAR 成長率在 2015 年第四季達到 6.5%，而 2015 年第四季達到 5.9%。全年調整後的 EBITDA 為 3.214 億美元，比 2014 年成長 13.7%，2015 年第四季的 EBITDA 為 6,970 萬美元，與 2014 年同期相比成長 7.3%。

As a reminder, 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. On a comparable hotels basis, adjusted hotel EBITDA increased 10.2% for the year and 6.9% for the fourth quarter.

需要提醒的是，年初至今的成長部分是由於 2014 年 3 月 Apple Seven 和 Apple Eight 與公司合併而增加了 99 家飯店。以可比飯店計算，調整後飯店 EBITDA 全年成長 10.2%，第四季成長 6.9%。

General and administrative expense for the three months ended December 2015 and 2014 was $5.1 million and $6.1 million respectively. For the full year of 2015 and 2014, G&A expense was $19.6 million and $20.9 million respectively.

截至 2015 年 12 月及 2014 年 12 月的三個月的一般及行政費用分別為 510 萬美元及 610 萬美元。 2015 年全年及 2014 年全年的一般及行政費用分別為 1,960 萬美元及 2,090 萬美元。

The fourth-quarter variance from 2014 was primarily due to the structure of our incentive plan, which was implemented in May 2014 and increased fees from Apple Ten, which are based on its performance which improved during 2015 and reached the top tier of the fee calculation. The full-year favorable variance was primarily due to approximately $2.5 million from the increased fee from Apple Ten, and with listing a part of our Senior Management incentive compensation will be paid with restricted stock that does not vest until December 2016, thus spreading that portion of the accrual over a longer period.

2014 年第四季的差異主要歸因於我們於 2014 年 5 月實施的激勵計劃的結構以及 Apple Ten 費用的增加，這些費用基於其在 2015 年期間的業績改善並達到費用計算的最高層級。全年有利的差異主要由於 Apple Ten 增加的費用約 250 萬美元，並且隨著上市，我們的部分高級管理人員激勵薪酬將以限制性股票的形式支付，該限制性股票直到 2016 年 12 月才歸屬，從而將該部分應計分攤到更長的時期內。

Offsetting that favorable variance was approximately $1 million additional incentive plan accrual related to an added plan metric upon listing that was tied to the relative share performance. The maximum payout was achieved under this metric, with their shares trading over 30% higher on a relative basis to the lodging sector since listing through year end.

抵消這一有利差異的是與上市時增加的計劃指標相關的約 100 萬美元的額外激勵計劃應計金額，該指標與相對股票表現掛鉤。在此指標下實現了最高支出，自上市到年底，其股價相對於住宿業而言高出 30% 以上。

At December 31, 2015, the Company had approximately $998 million of indebtedness, with a current combined weighted average interest rate of approximately 3.6% for 2016. Excluding the newly required reclassification of loan origination cost and fair value adjustments on acquired debt, our debt is comprised of approximately $462 million in property level debt and $540 million outstanding on our $965 million unsecured credit facility. Our outstanding debt is approximately 3.1 times 2015 adjusted EBITDA, and 22% of our enterprise value at December 31, 2015.

截至 2015 年 12 月 31 日，公司負債約 9.98 億美元，2016 年合併加權平均利率約 3.6%。不包括新要求的貸款發放成本重新分類和所收購債務的公允價值調整，我們的債務包括約 4.62 億美元的房地產層面債務和 9.65 億美元無擔保信貸額度中 5.4 億美元的未償債務。我們的未償債務約為 2015 年調整後 EBITDA 的 3.1 倍，佔 2015 年 12 月 31 日企業價值的 22%。

During the fourth quarter of 2015, we recorded a $45 million non-cash impairment charge related to our Renaissance Hotel in New York, Hotel 57. The hotel has been and is anticipated to be impacted by a number of factors including a decline in hotel market conditions in New York, anticipated new supply, the loss of retail tenants at the property, and an extended period of time it is anticipated to re-lease available space and costs associated with transitioning to a new management company. Although we are disappointed in the performance of this hotel and the resulting impairment charge, it is an outlier within our portfolio and one of a small number of hotels inconsistent with our core strategy.

2015年第四季度，我們記錄了與紐約文藝復興酒店Hotel 57相關的4,500萬美元的非現金減損費用。該酒店已經並預計將受到多種因素的影響，包括紐約酒店市場狀況的下滑、預期新增供應、該物業零售租戶的流失、預計重新出租可用空間的時間延長以及與過渡到新管理公司相關的成本。儘管我們對這家酒店的表現和由此產生的減值費用感到失望，但它是我們投資組合中的一個異常值，也是少數與我們的核心戰略不一致的酒店之一。

As discussed on our previous call, the Company's Board of Directors has authorized a share repurchase program of up to $500 million. To date the Company has purchased approximately 1.3 million common shares under the program at a weighted average market price of approximately $17.62 per common share for an aggregate purchase price of approximately $22.4 million. We plan to continue to consider opportunistic share repurchases under the $478 million remaining portion of our authorized $500 million share repurchase program.

正如我們上次電話會議所討論的，公司董事會已批准一項高達 5 億美元的股票回購計畫。迄今為止，該公司已根據該計劃以每股約 17.62 美元的加權平均市場價格購買了約 130 萬股普通股，總購買價約為 2,240 萬美元。我們計劃繼續考慮根據已授權的 5 億美元股票回購計畫的剩餘 4.78 億美元進行機會性股票回購。

The Company paid distributions of $0.30 per share during the fourth quarter of 2015. Our Board of Directors has authorized a regular monthly cash distribution of $0.10 per common share The annualized $1.20 per common share represents an annual 6.1% yield on our February 23 closing price of $19.59.

該公司在 2015 年第四季支付了每股 0.30 美元的分配。我們的董事會已授權每月定期以每股 0.10 美元的現金分配每股普通股 1.20 美元的年化收益率計算，基於我們 2 月 23 日 19.59 美元的收盤價，年收益率為 6.1%。

Let me now turn to 2016. Our 2016 guidance is based on Management's current view of both operating and economic fundamentals of the Company's existing portfolio of hotels and our hotels under contract, and does not take into account the impact of any unanticipated developments in our business or changes in the operating environment. For the full-year 2016, the Company anticipates to achieve comparable hotels RevPAR growth of between 3.5% to 5.5% and adjusted EBITDA of between $340 million and $360 million.

現在讓我談談2016年。我們2016年的指引是基於管理層對公司現有酒店組合和簽約酒店的營運和經濟基本面的當前看法，並沒有考慮到我們業務中任何意外發展或營運環境變化的影響。 2016 年全年，該公司預計可比飯店 RevPAR 成長率將達到 3.5% 至 5.5%，調整後 EBITDA 將達到 3.4 億美元至 3.6 億美元。

On a non-financial note, I wanted to highlight a couple of corporate governance items. Last week we filed in an 8-K amendments to the Company's bylaws, and will be including in our annual proxy proposals by our Board of Directors which further enhance our corporate governance. The recommended proposals to be considered by our shareholders at our 2016 annual meeting relate to certain changes to our charter, and include, one, de-staggering our Board such that when current Board members' terms expire newly elected Board members' terms would be one year.

從非財務角度來看，我想強調幾個公司治理事項。上週，我們提交了一份 8-K 公司章程修正案，並將納入董事會的年度代理提案中，以進一步加強我們的公司治理。我們股東在 2016 年年度會議上考慮的建議提案涉及我們章程的某些變更，其中包括：一是取消董事會成員的交錯任期，即當現任董事會成員的任期屆滿時，新當選的董事會成員的任期為一年。

Two, we're going to opt out, proposed opting out of certain provisions of the Virginia Stock Corporation Act that among other things require a vote of two-thirds of disinterested shareholders to approve certain transactions that involve sale of the Company or similar events. By opting out a majority of all shareholders would be required for these transactions. And finally number three, providing for a majority vote on all amendments to our charter. Additionally recently the Board also implemented several additions to our governance guidelines which are available on our website, also enhancing our governance structure.

二，我們將選擇退出，提議選擇退出《維吉尼亞股份公司法》的某些條款，這些條款除其他外還要求三分之二的無利害關係股東投票批准涉及出售公司或類似事件的某些交易。透過選擇退出，這些交易需要全體股東的多數同意。最後第三點，規定我們章程的所有修正案都必須經過多數票表決。此外，董事會最近還對我們的治理指南進行了幾項補充，這些補充可在我們的網站上查閱，這也增強了我們的治理結構。

The additions include, one, providing for required share ownership of five times annual base salary for the Chief Executive Officer, three times annual base salary for our other executive officers, and two times annual cash compensation for each director. And two, providing for the resignation of an incumbent Director that does not received a majority of the votes cast in an election of Directors. We always strive to provide maximum value for our shareholders, and we believe these provisions further that objective.

新增內容包括：一是規定執行長必須擁有相當於年度基本工資五倍的股權，其他執行官必須擁有相當於年度基本工資三倍的股權，每位董事必須擁有相當於年度現金薪酬兩倍的股權。第二，規定在董事選舉中未獲得多數票的現任董事可以辭職。我們始終致力於為股東提供最大價值，我們相信這些規定有助於實現這一目標。

I will now turn the call back to Justin.

我現在將電話轉回給賈斯汀。

Thank you, Krissy and Bryan, Given the scale and underlying strength of our hospitality platform, the expertise of our team, and the financial flexibility of our balance sheet, I'm confident that 2016 will be another positive year for Apple Hospitality REIT.

謝謝 Krissy 和 Bryan，鑑於我們的酒店平台的規模和潛在實力、我們團隊的專業知識以及我們資產負債表的財務靈活性，我相信 2016 年對於 Apple Hospitality REIT 來說將是另一個積極的一年。

Thank you again for joining us this morning. We would be happy now to respond to questions you may have.

再次感謝您今天早上加入我們。我們現在很樂意回答您可能提出的問題。

(Operator Instructions)

（操作員指示）

David Loeb from Baird.

來自貝爾德的戴維·勒布。

Good morning. Krissy or Justin, I want to come back to the changes in the management agreements. Was this targeted to really have a bigger impact on margins?

早安. Krissy 或 Justin，我想回到管理協議的變更。這樣做真的能對利潤率產生更大的影響嗎？

We clearly noticed a little less margin growth this quarter than we thought. Can you talk a little bit about what motivated you to make this change?

我們明顯注意到本季的利潤率成長比我們想像的要低一些。能否稍微談談促使您做出這項改變的動機？

Absolutely. Good morning. First I want to cover margin growth in the fourth quarter and provide a little bit of additional color. If you actually look at our gross operating margin, we achieved a 60 basis point increase, or a 53% flow in the quarter.

絕對地。早安.首先，我想介紹一下第四季的利潤成長情況，並提供一些額外的資訊。如果你實際看一下我們的毛營業利潤率，你會發現我們本季實現了 60 個基點的成長，或者說 53% 的流量。

We were impacted, as I mentioned, by some of the transition expenses and the loss of the retail tenants at Hotel 57 to the tune of $750,000 in EBITDA impact. That was a 30 basis point impact that -- and again moving into the first quarter we will have the year-over-year impact of the loss of the retail tenant and that payout.

正如我所提到的，我們受到了一些過渡費用以及 Hotel 57 零售租戶流失的影響，EBITDA 損失高達 75 萬美元。這是一個 30 個基點的影響——進入第一季度，我們將再次感受到零售租戶損失和賠付的同比影響。

The taxes and insurance piece was a 40 basis point impact to margin in the fourth quarter, and a part of that was related to the new acquisitions in the California -- the California acquisitions and adjusting to the new tax assessments on those. As we talk -- in one other piece we did very well on food and beverage in the quarter, and food and beverage actually has a lower margin so a 20 basis point impact was related to that. And then the incentive management fee piece that you bring up, that was approximately a 15 basis point impact on margin.

稅收和保險部分對第四季度的利潤率產生了 40 個基點的影響，其中一部分與加州的新收購有關——加州的收購以及對這些收購的新稅收評估的調整。正如我們所說的那樣——在另一篇文章中，我們本季在食品和飲料方面做得非常好，而食品和飲料的利潤率實際上較低，因此 20 個基點的影響與此有關。然後，您提到的激勵管理費部分對利潤率的影響約為 15 個基點。

In terms of the management contract piece, we set that to be pretty much cost neutral. There might be a slight savings in that, but the goal was really not to push down overall fees. We felt that it just was strategically better to align the management fee that we're paying to our managers to tie that more to current performance.

就管理合約部分而言，我們將其設定為成本中立。這樣做可能會節省一點錢，但目的實際上並不是降低整體費用。我們認為，從策略上來說，將我們支付給管理人員的管理費與當前績效掛鉤是更好的選擇。

So when we set those fees, we looked at 2015 operating metrics and we set it to be approximately 3%. If we underperform or if the hotels underperform those metrics, the management fee will be lower. If they outperform it will be slightly higher. We are really excited about this, our management companies are actually very excited about this because there incentivized to outperform, and we've already seen that several of them have even modified their bonus program on site to be even more geared towards our metrics.

因此，當我們設定這些費用時，我們參考了 2015 年的營運指標，並將其設定為約 3%。如果我們的表現不佳或飯店的表現不佳，管理費就會降低。如果他們表現優異，這個數字將會略高一些。我們對此感到非常興奮，我們的管理公司實際上對此感到非常興奮，因為他們有動力超越別人，而且我們已經看到他們中的一些公司甚至修改了他們的現場獎金計劃，使其更加符合我們的指標。

Really, David, the historical structure for incentive management fees is tied more to the performance of markets than it is to the performance of the management companies within those markets. The revision was to eliminate that so that management companies are rewarded for the performance of their teams on-site and not necessarily for growth within their particular markets with they may not have any control over.

事實上，大衛，激勵管理費的歷史結構與市場表現的連結比與市場內管理公司的績效的連結更緊密。修訂的目的是消除這種現象，以便管理公司根據其現場團隊的表現獲得獎勵，而不一定是根據他們可能無法控制的特定市場內的成長獲得獎勵。

That makes a lot of sense, Justin, but I guess what I'm asking Krissy is more when you -- what do you hope that they will do differently? So what do you hope the outcome will be in terms of your profits from those hotels? Is it better performance overall, or is it specifically better margin performance?

賈斯汀，這很有道理，但我想我問克莉絲的更多的是——你希望他們做些什麼不同的事情？那麼，您希望從這些酒店獲得的利潤是多少呢？是整體表現較好，還是具體利潤表現較好？

Absolutely better performance overall. That's the motivating factor.

整體而言，表現絕對較好。這就是激勵因素。

Okay. And how was it that you were able to get 70% of the operators to buy into these changes? That seems like a herculean task.

好的。您是如何讓 70% 的電信業者接受這些變化的？這似乎是一項艱鉅的任務。

It took quite a bit of time and energy, but part of it goes back to we have established a very long term collaborative relationship with our existing managers, but we've aligned them with short-term contracts that continue to allowed to have the flexibility to move where we need to or motivate where we need to. So I will let Justin to continue to build upon that.

這花費了相當多的時間和精力，但部分原因是我們與現有經理建立了長期的合作關係，但我們與他們簽訂了短期合同，以便他們能夠繼續靈活地調動到我們需要的地方或在我們需要的地方激勵員工。所以我會讓賈斯汀繼續在此基礎上繼續努力。

But the reality is that many of those contracts were already short-term, so they were terminable. And that made it a little bit easier to have that conversation. But again we used the motivating factor that if you perform well, you have the ability to actually outperform what you're currently earning.

但實際情況是，許多合約已經是短期合約，因此可以終止。這使得對話變得更容易。但我們再次使用激勵因素，如果你表現良好，你就有能力真正超越你目前的收入。

Because many of the properties were not earning incentive management fees based on the acquisition price or the owner's priority hurdle being too high. So now they actually do have a chance to earn additional incentive, but again we don't anticipate and the metrics weren't set up so that we would see a sharp increase in incentive management fees. And that is the other reason that we kept that range in a tight window, to manage on the upside and on the -- to manage the risk on the upside and the downside.

因為很多房產沒有根據收購價格賺取激勵管理費，或是業主的優先權門檻太高。所以現在他們確實有機會獲得額外的激勵，但我們再次沒有預料到，而且指標也沒有設定，所以我們會看到激勵管理費大幅增加。這也是我們將這個範圍控制在一個狹窄視窗內的另一個原因，以便管理上行和下行風險。

Really what we're able to accomplish is a reallocation of our fee structure to the management companies that are performing best across a balanced scorecard designed to really produce total profitability and top line performance for our hotels. We were able to do that, as Krissy mentioned, because of our relationship with our managers, which is collaborative. But they are also very competitive groups, and this we feel will further enhance our performance moving forward

我們真正能夠做到的是將我們的收費結構重新分配給在平衡記分卡中表現最好的管理公司，旨在真正為我們的酒店帶來整體盈利能力和頂線業績。正如克麗西所提到的，我們之所以能夠做到這一點，是因為我們與經理之間有著良好的合作關係。但他們也是非常有競爭力的群體，我們認為這將進一步提高我們未來的表現

Great. One more for you Justin, I heard the discussion about and I read about canceling the 10b5-1 plan. Can you just talk a little bit more about the motivation for that? Were you not able to buy as much stock as you wanted?

偉大的。賈斯汀，我再告訴你一件事，我聽到了關於取消 10b5-1 計劃的討論，也讀到了關於取消 10b5-1 計劃的文章。能否再多談談這樣做的動機？您是否無法購買您想要的那麼多的股票？

Did you by more than you wanted? You're giving up the ability to buy during blackout periods, so what's the benefit to trade off against that what you're giving up?

您是否購買了超出自己想要的數量？您放棄了在停電期間購買的能力，那麼您放棄的東西能換來什麼好處呢？

That's a good question. When we originally put the plan in place it was as a stopgap given the large retail shareholder base in our stock against a large sell off of shares, which would drive our particular stock performance below industry averages.

這是個好問題。當我們最初實施該計劃時，它是一種權宜之計，因為我們的股票有大量散戶股東，因此大量拋售股票會導致我們特定股票的表現低於行業平均水平。

Our shareholders have proven to be relatively stable, and really suspension of the plan gave us an opportunity to reassess the current market conditions and to act according to the conditions as we see them. It's no secret there's been a tremendous amount of volatility in the space. I've been clear from the beginning that we don't intend to use stock repurchases to support or sustain a particular stock price.

事實證明，我們的股東相對穩定，暫停該計劃確實讓我們有機會重新評估當前的市場狀況，並根據我們所看到的情況採取行動。眾所周知，這個領域存在著巨大的波動。我從一開始就明確表示，我們不打算透過股票回購來支持或維持特定的股價。

It's our goal to use those purchases in an accretive fashion to drive long-term shareholder return. And given a change in environment, we felt it important that we reassess our position and the metrics used in the plan. And in the interim we still have a program that allows us to buy shares as we see opportunity to do that.

我們的目標是以增值的方式利用這些購買來推動長期股東回報。鑑於環境的變化，我們認為重新評估我們的立場和計劃中使用的指標非常重要。在此期間，我們仍然有一個計劃，允許我們在看到機會時購買股票。

So does that mean you might put in a new program where you tweak the parameters a little bit before your next blackout date?

那麼，這是否意味著您可能會在下一個停電日期之前引入一個新程序，在其中稍微調整參數？

It is certainly a possibility.

這當然是有可能的。

Okay, thank you.

好的，謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Ryan Meliker, Canaccord Genuity.

Canaccord Genuity 的 Ryan Meliker。

Good morning. I don't know if you can answer this but I'm going to ask it anyway, with regards to your guidance, obviously you gave us some good color on what impacted margins in 4Q. It sounds like some of those things are going to spillover at least in part if not for the full year of 2016. Does your guidance essentially assume roughly flat margins in 2016 at the property level?

早安.我不知道您是否可以回答這個問題，但我還是要問，關於您的指導，顯然您對影響第四季度利潤率的因素給出了很好的說明。聽起來，即使這些因素不會影響 2016 年全年，至少也會在一定程度上產生外溢效應。您的指導方針是否基本上假設 2016 年房地產利潤率基本上持平？

The guidance assumes on a lower end roughly flat all the way up to 90 basis points approximately in margin increase.

該指導假設利潤率在低端大致持平，在高端大約增加 90 個基點。

Okay, that's helpful, thanks. So you did answer it. All right, I'll ask another one that I doubt you'll answer but maybe I'll get lucky again.

好的，這很有幫助，謝謝。所以你確實回答了。好吧，我會問另一個問題，我懷疑你會回答，但也許我會再次幸運。

Can you talk a little bit given your insight into Apple REIT Ten what the -- whether there's any near-term path to a liquidation event there, and if you think Apple will play a role in that liquidation event?

鑑於您對 Apple REIT Ten 的了解，您能否談談——是否存在任何近期清算事件的途徑，以及您是否認為 Apple 會在清算事件中發揮作用？

50% is pretty good, Ryan, (laughter) and unfortunately I'm not in a position to speak for Apple Ten on this call. I've been clear in the past that the portfolio aligns from a strategic standpoint with ours, and at some point would be attractive as an acquisition target. But that company has a separate Board of Directors which has yet to take public action related to a liquidation of assets.

50% 已經相當不錯了，Ryan，（笑聲）不幸的是，我無法在這次電話會議上代表 Apple Ten 發言。我過去曾明確表示，從策略角度來看，該投資組合與我們的投資組合一致，並且在某種程度上作為收購目標會具有吸引力。但該公司有一個單獨的董事會，尚未採取與資產清算有關的公開行動。

All right, that's helpful. Along not specific to Apple REIT Ten, but obviously we've seen in general the lodging REITs take a pretty big tumble in terms of stock prices over the past few months, certainly since the last call that you had back in November.

好的，這很有幫助。這並不是專門針對 Apple REIT Ten 的，但顯然，我們已經看到，過去幾個月裡，住宿類 REIT 的股價總體上出現了相當大的下跌，當然，自從您 11 月份上次通話以來也是如此。

Your stock has held up relatively well, been fairly resilient over that timeframe. I think that speaks volumes to your diversification and your business strategy focused on select service hotels. Given that dynamic, do you see yourselves being able to use your current cost of capital advantage relative to some your public peers and grow through substantial acquisitions?

您的股票表現相對較好，在這段時間內具有相當的彈性。我認為這充分說明了您的多元化經營和專注於精選服務酒店的業務策略。鑑於這種動態，您是否認為自己能夠利用當前相對於一些上市同行的資本成本優勢，並透過大規模收購實現成長？

Certainly this is a possibility. The challenge with the current markets is that they're choppy and highly volatile and that creates some difficulties for doing relative value transactions. But should that continue and stabilize it's certainly something we would look at.

這當然是有可能的。當前市場面臨的挑戰是波動性大、高度不穩定，這給進行相對價值交易帶來了一些困難。但如果這種情況持續下去並穩定下來，我們肯定會關注它。

The challenge, and again, I'll go back to my comments that I made earlier; the challenge for us really is the longer we exist in this particular business the more convinced we are of our core strategy and the relevance of that strategy. And looking at the portfolio we've created and comparing it to portfolios that are otherwise available, we see ourselves as having an advantage in the future which we would not want to dilute through acquisitions.

挑戰，我再次回到我之前所發表的評論；我們面臨的真正挑戰是，我們在這個特定行業中存在的時間越長，我們就越確信我們的核心戰略以及該戰略的相關性。透過查看我們創建的投資組合並將其與其他可用的投資組合進行比較，我們認為自己在未來擁有優勢，我們不想透過收購來削弱這一優勢。

That narrows the groups that would be interesting to us from an acquisition standpoint. And we've proven absent large transactions that given the proper conditions, we can grow and develop portfolios through individual asset transactions. And we don't see either of those as being mutually exclusive opportunities for us to grow given the appropriate cost of capital, and always governed by those transactions individually and as a whole being accretive for our shareholders.

從收購的角度來看，這縮小了我們感興趣的群體範圍。我們已經證明，在適當的條件下，我們可以透過單一資產交易來擴大和發展投資組合，而無需進行大規模交易。我們認為，在適當的資本成本下，這兩者並不是相互排斥的成長機會，並且始終受這些交易的支配，無論是單獨交易還是整體交易，都為我們的股東帶來增值。

Okay, that's helpful. And I think that's all for me. Thanks.

好的，這很有幫助。我想，對我來說這就是全部了。謝謝。

Whitney Stevenson, JMP Securities.

惠特尼·史蒂文森，JMP證券。

I was wondering if you could just talk a bit, any additional details you could give on those four new build projects you have under contract? How you source those types of deals and maybe a little bit about how their structured if you could? And that's it for me.

我想知道您是否可以簡單談談，您能提供一些有關您合約中的四個新建項目的更多細節嗎？您如何獲得這些類型的交易？如果可以的話，能否稍微介紹一下它們的結構呢？對我來說就是這樣。

Okay. Welcome. New construction projects or turnkey developments have been a part of our growth strategy for well over a decade. We view this as a way to continue to maintain the relevance and the relative age of our portfolio which we see as a competitive advantage.

好的。歡迎。十多年來，新建築項目或交鑰匙開發項目一直是我們成長策略的一部分。我們認為這是繼續保持我們投資組合的相關性和相對年齡的一種方式，我們認為這是一種競爭優勢。

These deals are structured typically with a small deposit and an agreement to close, assuming conditions are met including the construction of the property is in line with specs that we've agreed to when we go under contract. We've found over time that this enables us to maintain our relatively young portfolio while also maintaining a lower cost per key on entry, which obviously produces greater profitability.

這些交易通常以小額額定金和成交協議的形式構成，假設條件得到滿足，包括房產的建造符合我們簽訂合約時同意的規格。隨著時間的推移，我們發現這使我們能夠維持相對年輕的產品組合，同時也能保持較低的每把鑰匙成本，這顯然會產生更大的獲利能力。

To the extent these projects exist within the brands where we have deep ownership, we have a high degree of confidence in the performance we create for them. And really we're dividing the risk such that the developer takes 100% of the development risk in the project, and the only risk we take in the project is related to the market which is consistent with the risk we would take in any acquisition.

只要這些項目存在於我們深度擁有的品牌中，我們對為它們創造的績效就有很高的信心。實際上，我們正​​在劃分風險，使得開發商承擔專案 100% 的開發風險，而我們在專案中承擔的唯一風險與市場有關，這與我們在任何收購中承擔的風險一致。

The projects that we have currently under contract are with a developer who produces exceptional quality at a very reasonable cost. And if you look at the cost per key of the projects for new builds in the markets where they're located, I think you'll agree that these are attractive on a per key basis. We think they are also compelling properties that will be additive to our portfolio at some point in the future.

我們目前簽約的項目是與一家能夠以非常合理的成本提供卓越品質的開發商合作的。如果您看一下這些專案所在市場新建專案的每個按鍵成本，我想您會同意這些專案在每個按鍵基礎上都很有吸引力。我們認為它們也是引人注目的資產，將來某個時候將會補充到我們的投資組合中。

Given where we are in the cycle, these -- the pace of new development deals is slower for us in terms of timing new development deals. Then you might expect it to be at points lower in the cycle when we feel we can effectively lock in pricing and advantage as markets improve. But you should anticipate it will always be a part of our program to be funded depending on how our stock is trading either with availability on our line, either with overnight offering a draw down on our line of credit, or with the proceeds from the sale of existing assets

考慮到我們所處的周期，就新開發交易的時機而言，新開發交易的步伐對我們來說比較慢。那麼您可能會預期它會處於週期的較低點，我們認為隨著市場改善，我們可以有效地鎖定價格和優勢。但你應該預料到，它將永遠是我們計劃的一部分，資金將取決於我們的股票交易情況，要么來自我們的信用額度，要么來自隔夜提供信貸額度，要么來自出售現有資產的收益

Daniel Donlan, Ladenburg Thalmann.

丹尼爾唐蘭、拉登堡塔爾曼。

Just wanted to walk through the fee structure a little bit with you. It sounds like a pretty interesting idea, but as you look at how these assets may perform on -- and it's in a more recessionary environment versus an expansionary environment, would you expect it to cap your downside a little bit and maybe cap your upside in a better recovery? Or would you expect more or less the same type of margins, you just expect better performance during each specific time period?

只是想和您稍微介紹一下費用結構。這聽起來像是一個非常有趣的想法，但是當你觀察這些資產在衰退性更強的環境中而非擴張性環境中的表現時，你是否認為它會稍微限制你的下行空間，甚至可能在更好的復甦中限制你的上行空間？或者您是否期望或多或少相同類型的利潤，只是期望在每個特定時間段內有更好的表現？

We would expect better performance, and one of the metrics or a couple of the metrics to talk about, the flex flow metric. And the upside, if we're exceeding budget we want to make sure that we're capturing as much of that as possible and bringing it to the bottom line. In a potential downturn or if property is short of budget, then we want to make sure we are flexing as much in terms of savings.

我們期望有更好的性能，以及要討論的其中一個指標或幾個指標，即彈性流指標。而好處是，如果我們超出了預算，我們希望確保盡可能多地獲取資金並將其納入底線。在潛在的經濟低迷時期或如果房地產預算不足，那麼我們希望確保我們在儲蓄方面盡可能靈活。

And so that's one piece of it. Also on the target market RevPAR index piece, so even if the market is down for each individual property, we would sit looking at very unique circumstances for each property, we'd look at the demand generators, we look at supply, we look at renovations. And we actually set quarterly index targets for each property.

這就是其中的一部分。同樣在目標市場 RevPAR 指數部分，即使每個酒店的市場都處於低迷狀態，我們也會關注每個酒店的獨特情況，我們會關注需求生成器，關注供應，關注裝修。我們實際上為每個房產設定了季度指數目標。

If the market goes down, as long as they are growing share and achieving their target, then they have opportunity still to perform well if the market is going down. Vice versa, if the market is going up but they are not meeting their targets then they [will] miss that metric. So it is set to maximize performance in both the up and down cycles

如果市場下跌，只要他們的份額不斷擴大，實現了目標，那麼他們仍然有機會在市場下跌時表現良好。反之亦然，如果市場上漲但他們沒有達到目標，那麼他們就會達不到那個指標。因此，它的目標是在上升和下降週期中都實現效能最大化

And really, Dan, the most likely scenario is a 3% pay out under this. The advantage over a traditional structure is that incentive fees tend not to be capped as a percent of sales and in that form are unlimited. So as markets continue to progress, depending on the term of the particular agreement, those can radically drive management fee cost.

事實上，丹，在這種情況下最有可能的情況是支付 3%。與傳統結構相比，其優勢在於，獎勵費用往往不受銷售百分比的限制，且不受限制。因此，隨著市場不斷發展，根據特定協議的條款，這些可能會從根本上推動管理費成本。

Our structure really operates within a much narrower band. And in a really good market we don't have that unlimited incentive fee structure that a traditional management contract would have. In difficult markets we are able to continue to provide incentive to our managers again with the thought that our average payout will be consistent with industry norm at 3%.

我們的結構實際上在更窄的範圍內運作。在真正好的市場中，我們不會像傳統管理合約那樣擁有無限的激勵費用結構。在困難的市場中，我們能夠繼續向我們的管理人員提供激勵，因為我們的平均支出將與 3% 的行業標準一致。

There is a piece of it that is tied to GOP the budget. So if we're not performing as well compared to budget, that piece of it will impact the management fee piece as well as if they're performing better than budget.

其中一部分與共和黨的預算有關。因此，如果我們的表現與預算相比不理想，那麼這部分費用就會影響管理費，而如果他們的表現好於預算，那麼這部分費用也會影響管理費。

Okay, that's very helpful and sounds fairly interestingly unique. Just kind of moving to the guidance, what are you assuming in terms of occupancy and ADR growth to get to the midpoint of your RevPAR growth range?

好的，這非常有幫助，而且聽起來相當有趣且獨特。回到指導，就入住率和 ADR 成長而言，您假設什麼才能達到 RevPAR 成長範圍的中點？

We don't publish those numbers. And really backing up a little bit to talk about our particular guidance, we set guidance that we feel is readily achievable given our portfolio make up and fundamentals we see in the space.

我們不會公佈這些數字。稍微回顧一下我們的具體指導，我們設定的指導是我們認為根據我們的投資組合組成和我們在該領域看到的基本面很容易實現的。

We don't believe the guidance should be a stretch goal for management. Year to date, as Krissy mentioned, we're performing ahead of the industry and ahead of the sector where we have concentration.

我們不認為該指導應該成為管理層的延伸目標。正如克麗西所提到的，今年迄今為止，我們的表現一直領先於整個產業，也領先於我們所關注的領域。

But that being said, January was soft, I think we all saw that. And we anticipate March because of the timing of the Easter holiday will potentially be soft as well. As we look at our guidance, we feel very comfortable with the guidance we have provided, and that it's achievable given the metrics that we have.

但話雖如此，一月份的情況並不樂觀，我想我們都看到了這一點。而且我們預計，由於復活節假期的時間安排，三月的銷售也可能會比較疲軟。當我們審視我們的指導時，我們對所提供的指導感到非常滿意，並且根據我們現有的指標，這是可以實現的。

If you look at historic occupancy and the occupancies that we reported for our portfolio, the bulk of our growth going forward will come in the form of rate. And we anticipate at the higher end of our range, as Krissy mentioned, that, that rate growth will drive margin expansion. At the lower end of the range given rising expenses, we think holding the margin flat is a much better assumption.

如果您查看歷史入住率和我們報告的投資組合入住率，您會發現我們未來的大部分成長將以房價的形式實現。正如 Krissy 所提到的那樣，我們預計在我們的範圍的高端，利率成長將推動利潤率的擴大。考慮到費用不斷增加，我們認為在較低範圍內保持利潤率平穩是一個更好的假設。

I was curious given your margin assumptions if it was more occupancy, more rate. It sounds more rate.

我很好奇，根據您的利潤假設，入住率是否會更高，房價是否會更高。聽起來更有速率。

More rate.

更多利率。

And then as far as, and sorry to get a little -- maybe this is better offline, but the lease termination fee, where does that flow through the quarter? And then how much quarterly rent is going away? And how much did -- so I'm just trying to make sure I have the right run rate here.

然後就此而言，抱歉，也許這在線下更好，但是租賃終止費，它在本季度流向哪裡？那麼季度租金會減少多少呢？以及有多少——所以我只是想確保我在這裡有正確的運行率。

$1.4 million was -- we received a lease termination payment of $1.4 million in the first quarter of the previous year. And then so if you look at this year, that after that if you go from this year to next year there should be minimal impact from the second, third, and fourth quarter

140 萬美元是－我們在去年第一季收到了 140 萬美元的租賃終止付款。如果你看看今年，那麼從今年到明年，第二、第三和第四季的影響應該會很小

Okay, I got it. Then going back to Ryan's question, as it relates to acquisitions you have one of the best cost of capitals in the space right now, significantly better than some of your limited select service peers. What about one-off acquisitions given the current dislocation in the credit markets?

好的，我明白了。然後回到瑞安的問題，就收購而言，你們目前擁有該領域最好的資本成本之一，明顯優於一些有限的精選服務同行。鑑於目前信貸市場的混亂，一次性收購怎麼樣？

Your RevPAR growth is -- you're guiding to is fairly strong, you are confident with the economy, why not take advantage of this time and use your strong cost of capital to maybe buy some properties on a one-off basis?

您的 RevPAR 成長 - 您預計是相當強勁的，您對經濟充滿信心，為什麼不利用這個時機，利用您強大的資本成本來一次性購買一些房產呢？

That's a good question. If you look at what we did last year, we did acquire a number of one-off properties. That being said, the dislocation in the debt markets has yet to significantly negatively impact pricing for individual assets, especially high-quality assets that would be attractive to us as potential buyers.

這是個好問題。如果你看看我們去年所做的事情，你會發現我們確實收購了一些一次性資產。話雖如此，債務市場的混亂尚未對個別資產的定價產生重大負面影響，尤其是對我們作為潛在買家有吸引力的高品質資產。

Given where we are, we're not the only ones optimistic about future performance in the space. Individual owners and managers of assets, especially high-quality assets, the type that would be desirable to us, are also optimistic about the future. And there's very little need for them to liquidate their current positions. We haven't seen major portfolio trades recently probably in part because of what we've seen in the debt market.

考慮到我們目前的狀況，我們並不是唯一對該領域未來表現持樂觀態度的人。資產（尤其是優質資產，也就是我們所希望的資產）的個人所有者和管理者也對未來持樂觀態度。他們幾乎沒有必要平掉現有部位。我們最近沒有看到大規模的投資組合交易，可能部分是因為我們看到了債務市場的情況。

But there have been a number of individual asset transactions all at very high per key prices and low cap rates. We'll continue to monitor that. There's potential that it shifts over time, but wisdom and experience tells us that there will be better pricing in the future, and it's a continual balancing act recognizing we have a more volatile cost of capital potentially than we have in the past.

但已有許多個別資產交易的關鍵價格非常高，而資本化率卻很低。我們將繼續監控此事。隨著時間的推移，它有可能發生變化，但智慧和經驗告訴我們，未來會有更好的定價，而且這是一個持續的平衡行為，認識到我們的資本成本可能比過去更加不穩定。

But that being said, the type of opportunities that are attractive to us are not available at a steep discount in large supply, even given our current cost of capital.

但話雖如此，即使考慮到我們目前的資本成本，我們也無法以大折扣獲得對我們有吸引力的機會。

Okay, that makes complete sense. Just curious though where you think cap rates are for comparable assets versus what you have? Are we in the -- still in the high [7%] range or are we more in the low [8%] range? Just trying to get a sense of where market it is.

好的，這完全有道理。只是好奇，您認為與您擁有的資產相比，可比較資產的資本化率是多少？我們是否仍處於較高 [7%] 範圍，還是處於較低 [8%] 範圍？只是想了解市場在哪裡。

Really given the lack of buyers in the market, what we're seeing is an environment in which individual assets are being price very differently. The assets that have traded to date have traded actually a number of them below [7%] caps. But again, we're looking at high quality assets, institutional quality assets, similar to the quality that we acquired later in the year fortunately at better pricing than what occurred recently.

事實上，由於市場缺乏買家，我們看到的是個別資產的定價差異很大。迄今為止已交易的資產中，有許多實際上都低於 [7%] 的上限。但同樣，我們正在尋找高品質資產、機構品質資產，類似於我們今年稍後收購的質量，幸運的是，其定價比最近的定價更好。

The spread is fairly wide, however, and as you move down the quality scale to the extent lower quality assets are trading at all, their trading at 100 basis point or greater spread to the really high-quality assets right now. On average, I'd say for our particular portfolio, if you were to take given the diversity within our portfolio on the average given the environment we are in, we are probably still very close to where we were six months ago if we were to apply current market cap rates that we're seeing in the market on individual assets.

然而，利差相當大，隨著品質等級的下降，低品質資產的交易範圍逐漸擴大，目前它們與真正高品質資產的利差為 100 個基點或更大。平均而言，對於我們的特定投資組合，我想說，如果考慮到我們所處的環境，考慮到我們投資組合的平均多樣性，如果我們應用當前市場資本化率，我們可能仍然非常接近六個月前的水平我們在市場上看到的單一資產。

I appreciate the thoughts. And lastly on the corporate governance, what constitutes the majority vote; is it just 51% or 50% or more?

我很欣賞這些想法。最後，關於公司治理，什麼構成多數票？是只有 51% 還是 50% 或更多？

Yes. Majority vote is 50% or 51%.

是的。多數票為 50% 或 51%。

Okay. Thanks so much, appreciate it.

好的。非常感謝，感激不盡。

Blair Brantley, BB&T.

布萊爾·布蘭特利，BB&T。

Good morning, everyone.

大家早安。

Good morning.

早安.

Had a couple questions. One, your comments about the full-service assets, just trying to get a better view of what your thought is on that space? I know it's not a very big piece of your overall portfolio, but obviously given the weakness up in New York and maybe some of the trading prices that we've seen, any thoughts on that space as a whole relative to your portfolio?

有幾個問題。首先，您對全方位服務資產的評論，只是想更了解您對該領域的想法？我知道這在您的整體投資組合中佔比不大，但顯然考慮到紐約的疲軟以及我們所看到的一些交易價格，您對該領域相對於您的投資組合的整體情況有何看法？

Yes, certainly. Good morning. As we look at our portfolio, roughly 5% of the portfolio exists in the upper upscale category or full-service category. Of even that small subset, we really only have one large hotel, the Richmond Marriott.

是的，當然。早安.縱觀我們的投資組合，大約有 5% 屬於高檔類別或全方位服務類別。即使在這一小群人中，我們實際上也只有一家大型酒店，即里士滿萬豪酒​​店。

The rest are small box full service with limited F&B. That being said, even with that subset what we've recognized in our current portfolio is two things. One, our ability to generate better margins and profitability on our core product and two, and ability to be significantly more efficient in our deployment of capital in the form of capital improvements over time in our core product, which is a very large subset of our total portfolio.

其餘均為小型全套服務，提供限量的餐飲。話雖如此，即使有這個子集，我們在當前投資組合中也認識到了兩件事。一是我們有能力在核心產品上創造更好的利潤率和盈利能力；二是我們有能力隨著時間的推移，以資本改進的形式，更有效地部署核心產品的資本，而核心產品是我們整個產品組合中一個非常大的子集。

I mentioned in my earlier remarks that over time given those two factors, we see significant advantage to us in continuing to purify our portfolio and to focus our attention on the sector which we feel best generates the results that we are targeting as a Company, and that's low volatility and high profitability.

我在先前的評論中提到，隨著時間的推移，考慮到這兩個因素，我們認為繼續淨化我們的投資組合並將注意力集中在我們認為最能產生我們作為一家公司所瞄準的結果的領域，對我們有很大的優勢，那就是低波動性和高盈利能力。

And that being said, as I mentioned earlier in my commentary about cap rates, the market is somewhat volatile and there are fewer players. And given that these assets are a very small percentage of our total portfolio, we're going to be opportunistic in our disposition of those assets where we feel we can achieve a reasonable price for the assets and when we feel we have an alternative use of capital which will produce better returns for our shareholders.

話雖如此，正如我之前在關於資本化率的評論中提到的那樣，市場有些不穩定，而且參與者較少。鑑於這些資產只占我們總投資組合的一小部分，我們將擇機處置這些資產，只要我們認為可以為這些資產獲得合理的價格，並且我們認為我們有其他資本用途，可以為股東帶來更好的回報。

Okay, thanks. Had a question on Apple Ten too, any update on how they did this quarter and what you're seeing there relative to your portfolio?

好的，謝謝。我對 Apple Ten 也有一個疑問，請問他們本季的業績如何？相對於您的投資組合，您看到了什麼改變？

They are a public company and will be filing publicly here shortly. I'm not in a position on this call to comment on their performance.

他們是一家上市公司，很快就會在這裡公開提交文件。我無法在這次通話中對他們的表現發表評論。

Okay. And then finally have you seen any impact from the OTA commission decrease? Anything yet?

好的。最後，您是否看到 OTA 佣金減少的影響？有事嗎？

I can talk a little bit about that. We are very proud of our brands because both Hilton and Marriott achieved great progress on actually getting the cost per booking down, at the commission per booking [down].

我可以稍微談一下這個。我們對我們的品牌感到非常自豪，因為希爾頓和萬豪都在降低每次預訂的成本和佣金方面取得了巨大的進步。

The OTA commission piece is you've got the cost per booking, but then you actually have the growth rate that you have to factor in. On the growth rate side, and one of the reasons to continue to work on distribution, the growth rate, the OTAs have been growing at a double-digit pace.

OTA 佣金部分包括每次預訂的成本，但實際上你必須考慮成長率。在成長率方面，以及持續致力於分銷的原因之一，OTA 一直以兩位數的速度成長。

So as you probably have seen, Hilton and Marriott have increased their advertising or marketing around direct booking. And a part of that is actually focused on shifting, channel shifting more business from OTAs to your direct channels to increase brand loyalty and shift to your higher profit channels.

因此，正如您可能已經看到的，希爾頓和萬豪已經增加了圍繞直接預訂的廣告或行銷。其中一部分實際上集中在管道轉移上，將更多業務從 OTA 轉移到直接管道，以提高品牌忠誠度並轉移到利潤更高的管道。

So we will see the cost per booking go down. We do expect as part of the direct booking campaign to actually see the double-digit growth slow down, and so hopefully that will equate to lower commissions over the course of the year.

因此我們將看到每次預訂的成本下降。我們確實預計，作為直接預訂活動的一部分，兩位數的成長實際上會放緩，因此希望這將等同於全年佣金的降低。

Okay. How much of your business comes from the OTAs in terms of bookings?

好的。就預訂而言，你們的業務有多少來自 OTA？

7% of our businesses is OTA.

我們的業務有7%是OTA。

Great, thank you.

太好了，謝謝。

Thank you. Ladies and gentlemen, we have no further questions in queue at this time. I would now like to turn the floor back over to Mr. Knight for closing remarks.

謝謝。女士們、先生們，目前我們沒有其他問題。現在我想把發言權交還給奈特先生，請他作最後發言。

Thank you for joining us this morning. We're very pleased with our performance this past year and excited about 2016. We hope that as you travel you'll take opportunity to stay with us at one of our hotels, and hope you have a great weekend.

感謝您今天上午加入我們。我們對過去一年的表現非常滿意，並對 2016 年充滿期待。我們希望您在旅行時能有機會入住我們的酒店，並祝您度過一個愉快的週末。

Thank you, ladies and gentlemen, this does conclude our teleconference for today. You may now disconnect your lines at this time. Thank you for your participation and have a wonderful day.

謝謝各位，女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路了。感謝您的參與並祝您有美好的一天。