Apple Hospitality REIT Inc (APLE) 2016 Q1 法說會逐字稿

Greetings and welcome to the Apple Hospitality REIT first-quarter 2016 earnings conference call.

大家好，歡迎參加 Apple Hospitality REIT 2016 年第一季財報電話會議。

(Operator instructions)

（操作員指示）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kelly Clarke, Vice President, Investor Relations. 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、投資者關係副總裁凱利克拉克 (Kelly Clarke)。謝謝。你可以開始了。

Thank you. Good morning and welcome to Apple Hospitality REIT's first-quarter 2016 earnings call, on this, the 6th day of May, 2016. Today's call will be based on the first-quarter 2016 earnings release, which was distributed yesterday afternoon.

謝謝。早安，歡迎參加 Apple Hospitality REIT 2016 年第一季財報電話會議，今天是 2016 年 5 月 6 日。今天的電話會議將基於昨天下午發布的 2016 年第一季財報。

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 2015 Form 10-K, first-quarter 2016 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 2015 年 10-K 表格、2016 年第一季 10-Q 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 and other filings with the SEC. For a copy of the earnings release or additional information about the Company, please visit www.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。我們鼓勵參與者審查昨天的收益報告和向美國證券交易委員會提交的其他文件中包含的這些指標與 GAAP 指標的對帳。如需查看收益報告副本或了解有關該公司的更多信息，請訪問 www.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 first quarter of 2016 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 2016 年第一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's REIT first-quarter 2016 earnings call.

謝謝你，凱利。早安，歡迎參加 Apple Hospitality 房地產投資信託基金 2016 年第一季財報電話會議。

We are pleased to report comparable hotels RevPAR for our portfolio grew 4% despite a calendar shift and weaker national economic growth in the first three months of the year. Comparable hotels adjusted hotel EBITDA margin increased 60 basis points and adjusted EBITDA and modified FFO per share grew 11% and 18%, respectively. Based on preliminary results, US GDP growth, although positive, slowed during the first quarter of this year. Unemployment remained fairly stable at approximately 5%, and while opinions vary, analysts generally anticipate that the economy will gain momentum as we move into the second quarter, producing moderate macroeconomic growth for the balance of the year.

我們很高興地報告，儘管今年前三個月日曆發生變化且國家經濟成長放緩，但我們投資組合中可比酒店的 RevPAR 仍增長了 4%。可比飯店調整後飯店 EBITDA 利潤率增加 60 個基點，調整後 EBITDA 和每股調整後 FFO 分別成長 11% 和 18%。根據初步結果，今年第一季美國GDP成長雖然為正，但卻放緩。失業率保持相當穩定，約 5%，儘管意見不一，但分析師普遍預計，隨著進入第二季度，經濟將獲得動力，在今年剩餘時間內實現溫和的宏觀經濟成長。

Looking at performance of the hotel industry specifically, national averages obscure the fact that dynamics vary widely from market to market. As we progress through this real estate cycle, we continue to anticipate that individual portfolios of hotels will perform differently based on their unique geographic make-up and concentration. With 179 hotels located in more than 80 MSAs across 32 states, our portfolio of primarily upscale, select-service, and extended-stay hotels is one of the largest, most geographically diverse hospitality portfolios in the United States. Our geographic footprint provides exposure to a myriad of businesses, geographic regions, events, and attractions, minimizing the overall impact of volatility within a single market or industry. We intentionally assembled and continue to monitor and adjust the make-up of our portfolio to drive operating results for our shareholders, while mitigating risk and volatility associated with heavy concentrations in individual metropolitan areas, or unbalanced reliance on particular industries or demand generators.

具體來看酒店業的表現，全國平均掩蓋了不同市場之間動態差異很大的事實。隨著我們經歷房地產週期的推進，我們繼續預期各個酒店組合將因其獨特的地理組成和集中度而表現不同。我們的飯店組合遍佈 32 個州的 80 多個大都會統計區 (MSA)，共有 179 家飯店，主要包括高檔飯店、精選服務和長住飯店，是美國規模最大、地域分佈最廣泛的飯店組合之一。我們的地理覆蓋範圍涵蓋眾多企業、地理區域、活動和景點，最大限度地減少單一市場或行業波動的整體影響。我們特意組成並持續監控和調整我們的投資組合，以推動股東的經營業績，同時降低因過度集中在個別大都市區或對特定行業或需求產生者的不平衡依賴而帶來的風險和波動。

The geographic make-up of our portfolio has also mitigated, to a large extent, the impact of new supply, which has in recent years been heavily concentrated primarily in urban and gateway markets. For our portfolio, we continue to see supply dynamics similar to those we discussed at our year end, with roughly 50% of our hotels anticipating one or more new operating new upper mid-scale, upscale, or upper upscale hotels to open within a five-mile radius during the next 18 months. During the first quarter, we continued to focus, in collaboration with our third-party hotel operators, on enhancing the mix of business at our hotels and managing expenses in order to continue to drive operating margins. Our unique data-driven approach to asset management, strengthened by our deep ownership in and experience with Hilton and Marriott's select-service brands enables us to produce industry-leading operating margins, which further enhance the operating stability of our hospitality platform.

我們的投資組合的地理分佈也在很大程度上減輕了新供應的影響，近年來新供應主要集中在城市和門戶市場。對於我們的投資組合，我們繼續看到與我們在年底討論的類似的供應動態，大約 50％ 的酒店預計在未來 18 個月內在五英里半徑範圍內開設一家或多家新的中高檔、高檔或超高檔酒店。在第一季度，我們繼續致力於與第三方酒店營運商合作，增強酒店業務組合和管理費用，以繼續提高營業利潤率。我們獨特的數據驅動資產管理方法，加上我們對希爾頓和萬豪精選服務品牌的深度所有權和經驗，使我們能夠實現行業領先的營業利潤率，從而進一步增強了我們酒店平台的營運穩定性。

Through March of 2016, the Company invested $19 million in capital expenditures and we anticipate investing an additional $30 million to $40 million during the remainder of the year, completing renovations projects at approximately 20 hotels. Consistent reinvestment in our hotels adds to the operational stability and competitiveness of our portfolio. With an average effective age of four years, our hotels are well-positioned to perform where individual markets become increasingly competitive as a result of new supply or shifts in demand. [AL] ownership within specific select-service and extended-stay brands provides us with purchasing power and an ability to drive process efficiencies, reducing the cost of major renovations. In addition, our in-house project managers work together with asset management and our third-party managers to minimize property-level disruption and business displacement.

截至 2016 年 3 月，公司已投資 1,900 萬美元資本支出，我們預計在今年剩餘時間內再投資 3,000 萬至 4,000 萬美元，完成約 20 家飯店的翻新工程。對我們酒店的持續再投資增強了我們投資組合的營運穩定性和競爭力。我們的飯店平均有效營運年資為四年，在個別市場因新增供應或需求變化而競爭日益激烈的情況下，我們的飯店具有良好的發展前景。 [AL] 擁有特定的精選服務和長期住宿品牌為我們提供了購買力和提高流程效率的能力，從而降低了重大翻修的成本。此外，我們的內部專案經理與資產管理部門和第三方經理合作，盡量減少財產層面的中斷和業務中斷。

We ended the quarter with outstanding debt at 3.1 times trailing 12-month adjusted EBITDA. The strength of our balance sheet continues to be 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.

本季末，我們的未償債務為過去 12 個月調整後 EBITDA 的 3.1 倍。我們資產負債表的實力仍然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。

In April, we announced that the Company had entered into a definitive merger agreement with Apple REIT Ten. This unique opportunity would meaningfully increase our size and scale, with a complementary portfolio of hotels, and further expand our market mix and geographic diversification, while maintaining our strong and flexible balance sheet. The transaction would further position Apple as one of the largest select-service lodging REITs in the industry and is expected to be accretive in the first year after closing. As managers at the Apple Ten portfolio, we have an intimate knowledge of the assets and anticipate integration with our existing portfolio to be seamless. The merger agreement provides Apple Ten with a 45-day go shop period that ends on May 28. We remain excited by both the strategic and financial merits of this potential opportunity.

今年 4 月，我們宣佈公司已與 Apple REIT Ten 達成最終合併協議。這一獨特的機會將顯著增加我們的規模，並提供互補的酒店組合，進一步擴大我們的市場組合和地理多樣化，同時保持我們強勁而靈活的資產負債表。這項交易將進一步使蘋果成為業內最大的精選服務住宿房地產投資信託基金之一，並有望在交易完成後的第一年實現增值。作為 Apple Ten 投資組合的管理者，我們對這些資產有著深入的了解，並預計與我們現有的投資組合的整合將無縫銜接。合併協議為 Apple Ten 提供了 45 天的試營運期，截止日期為 5 月 28 日。我們對這一潛在機會的策略和財務價值感到興奮。

However, we will be limited in our ability to answer questions on today's call because of our timing in the process, and encourage you to review our SEC filings and investor communications as we make additional information available in the near future. In addition to Apple Ten, we 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.

然而，由於時間安排的原因，我們在今天的電話會議上回答問題的能力有限，並鼓勵您查看我們的 SEC 文件和投資者溝通文件，因為我們將在不久的將來提供更多資訊。除了 Apple Ten 之外，我們還達成了購買另外四家酒店的協議，這些酒店目前都在建設中。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。

Our Management team has successfully owned and managed hotel portfolios through multiple cycles spanning over a decade and a half. While we have limited ability to impact broad economic indicators that correlate with our business, we remain confident about prospects for the coming year and about the fundamentals for our portfolio specifically.

我們的管理團隊已成功擁有並管理了十五年多來多個週期的飯店組合。雖然我們影響與我們的業務相關的廣泛經濟指標的能力有限，但我們對來年的前景以及我們投資組合的基本面仍然充滿信心。

At this time, I would like to turn the discussion over to Krissy 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 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.

謝謝你，賈斯汀。

We are pleased with the first-quarter performance of our geographically diversified portfolio, achieving comparable RevPAR growth of 4% with only a slight decline in occupancy of 0.3% and average rate growth of 4.3%. As has been the trend in recent months, the West Coast hotels led the way, with strong growth in Los Angeles, Anaheim, and San Jose, offset by some supply- and renovation-driven underperformance in Seattle. An already strong Los Angeles market received an addition boost from the unfortunate displacement of families associated with the Porter Ranch gas leak. Outside of the Pacific region, our Texas hotels had a slight decrease in RevPAR due to continuing energy softness in Houston and some supply- and weather-driven weakness in Austin. We anticipate second quarter improvement in Austin, but continued weakness in Houston. In Florida, our Orlando and Tampa hotels outperformed industry averages, while Miami underperformed due to multiple factors including the stronger dollar and new supply.

我們對地理多元化飯店組合第一季的業績感到滿意，飯店每間可用客房營收年增 4%，入住率僅小幅下降 0.3%，平均房價成長 4.3%。正如最近幾個月的趨勢一樣，西海岸的酒店業一路領先，洛杉磯、阿納海姆和聖何塞的​​酒店業增長強勁，但西雅圖由於供應和裝修等原因，酒店業表現不佳。波特牧場天然氣洩漏事件導致大量家庭流離失所，這為已經十分強勁的洛杉磯市場帶來了進一步的提振。在太平洋地區以外，由於休士頓的能源持續疲軟以及奧斯汀的供應和天氣原因導致的疲軟，我們德州的飯店的平均可出租客房收入 (RevPAR) 略有下降。我們預計奧斯汀第二季的情況會有所改善，但休士頓的情況將繼續疲軟。在佛羅裡達州，我們的奧蘭多和坦帕酒店的表現優於行業平均水平，而邁阿密酒店的表現則因美元走強和新供應等多種因素而落後。

In segmentation trends, we continued to see increases in our highest-rated retail segment, which represented about one-third of our total net. Our group room nights, at 14% of our mix, remains stable. With lower GDP growth beginning in the fourth quarter of 2015 and continuing into the first quarter of 2016, overall business transient demand remained muted but stable. Outside of some energy markets, we are not hearing feedback from our corporate accounts that would suggest further deceleration. Corporate negotiated business accounted for around 24% of our room nights, on target with our expectations. During corporate pricing season, in late 2015, our strategy was to reduce lower-value corporate accounts in favor of higher-rated retail business. We constantly monitor market trends, which vary widely depending on the different demand generators in market. In a few markets, where the demand trend was softer than expected in the first quarter, we adjusted our mix [drive G] and layered in some additional corporate and group base.

在細分趨勢中，我們繼續看到評級最高的零售細分市場出現成長，該細分市場約占我們淨利潤的三分之一。我們的團體間夜量佔總間夜量的 14%，並保持穩定。由於 2015 年第四季開始 GDP 成長放緩並持續到 2016 年第一季度，整體商業臨時需求仍保持低迷但穩定。在一些能源市場之外，我們沒有聽到來自企業帳戶的回饋表明經濟將進一步減速。公司協商業務約占我們客房晚數的 24%，符合我們的預期。在 2015 年底的企業定價季節，我們的策略是減少低價值的企業帳戶，轉而支持評級較高的零售業務。我們不斷監測市場趨勢，這些趨勢因市場中不同的需求產生器而有很大差異。在某些市場，第一季的需求趨勢比預期弱，我們調整了產品組合[驅動 G]，並增加了一些企業和團體基礎。

As we enter the higher occupancy months, we will continue to drive as much business as opportunities allow to the higher-rated retail segment, while at the same time protecting our shoulder nights with solid base business. In April, we saw an acceleration RevPAR growth and our second-quarter forecast is trending ahead of industry and line with our expectations factored into our full-year outlook.

隨著我們進入入住率較高的月份，我們將繼續在允許的範圍內為評級較高的零售領域推動盡可能多的業務，同時透過穩固的基礎業務來保護我們的平夜量。四月份，我們看到 RevPAR 成長加速，我們對第二季的預測領先於產業，並且與我們全年展望中的預期一致。

Turning to profitability, comparable hotel adjusted EBITDA margin increased 60 basis points to 37.2% for the quarter, representing a 50% flow-through of total revenues to hotel EBITDA. With improvements in the job market and government-mandated wage increases, we have seen moderate increases in payroll costs, approximating 3.5% in the first quarter. We are monitoring government wage-related initiatives and working closely with our management companies to minimize future margin impact, as we do expect wage pressures to persist.

談到獲利能力，本季可比飯店調整後的 EBITDA 利潤率增加了 60 個基點，達到 37.2%，這意味著總收入的 50% 流向了飯店 EBITDA。隨著就業市場的改善和政府強制提高工資，我們看到工資成本適度增加，第一季約為 3.5%。我們正在監控政府與工資相關的舉措，並與我們的管理公司密切合作，以盡量減少未來對利潤率的影響，因為我們確實預計工資壓力將持續存在。

The combination of energy savings initiatives and lower fuel prices have resulted in year-over-year reduction in utility costs, favorably impacting margin. As we discussed on our year-end call, we remain very pleased with our new management contracts and the restructuring of the management fees to more closely align with our balance scorecard metrics used to measure the performance of our hotels. We transitioned another management company to the new form beginning in April, and now we have 74% of our hotels under the new contract terms.

節能措施和較低的燃料價格相結合，導致公用事業成本逐年下降，對利潤產生了積極影響。正如我們在年終電話會議上所討論的那樣，我們對新的管理合約和管理費的重組感到非常滿意，以便更緊密地與用於衡量酒店業績的平衡記分卡指標保持一致。我們從四月開始將另一家管理公司轉變為新的形式，現在我們 74% 的酒店都遵循新的合約條款。

In the first quarter, we saw mid-single-digit increase in the average portfolio score, with the greatest improvement in the achievement of the flex flow-through metric. Our managers are working diligently to make it to the top of the scorecard, which we anticipate will draw continued performance improvement as we move forward.

在第一季度，我們看到平均投資組合得分出現了中等個位數的成長，其中靈活流通指標的實現取得了最大的進步。我們的管理人員正在努力工作，力爭在記分卡上名列前茅，我們預計這將在我們前進的過程中帶來持續的績效改進。

I will now turn the call over to Bryan to provide additional color on corporate-level financial results.

現在我將把電話轉給布萊恩，讓他提供更多有關公司層級財務表現的詳細資訊。

Thanks, Krissy, and good morning.

謝謝，克麗西，早安。

To recap a couple of numbers Justin and Krissy touched on, our comparable hotels RevPAR grew to almost $99 for the quarter, an increase of 4% from 2015. The growth led to an increase of 11% in adjusted EBITDA to $79 million, and an increase of 18% in modified FFO per share to $0.40 per share.

回顧賈斯汀和克莉絲提到的幾個數字，我們同檔飯店的 RevPAR 本季成長至近 99 美元，較 2015 年成長 4%。這一增長導致調整後的 EBITDA 增長 11% 至 7,900 萬美元，調整後每股 FFO 增長 18% 至每股 0.40 美元。

General and administrative expense for the three months ended March 31, 2016, was $4.8 million compared to $5.5 million in the same period of 2015. The improvement from 2015 was primarily a result of increased fees from the Apple Ten advisory agreement we have, and reduced legal costs associated with previously completed litigation. The fees from Apple Ten are based on three tiers of performance, and Apple Ten has consistently achieved the top-tier level of performance since the second quarter of 2015.

截至 2016 年 3 月 31 日的三個月的一般及行政開支為 480 萬美元，而 2015 年同期為 550 萬美元。較 2015 年同期的改善主要由於我們與 Apple Ten 的諮詢協議費用增加，以及與先前完成的訴訟相關的法律成本減少。 Apple Ten 的費用是基於三個等級的效能，自 2015 年第二季以來，Apple Ten 一直保持著最高等級的效能。

At the end of March, the Company had approximately $1 billion of outstanding debt, with a current combined weighted average interest rate of 3.5% for the remainder of 2016. Excluding debt issuance costs and fair value adjustments on acquired debt, our debt is comprised of $429 million in property level debt and $597 million outstanding on our $965 million unsecured credit facility. Our outstanding debt is approximately 3.1 times trailing 12-month adjusted EBITDA and 23% of our enterprise value at the end of the quarter.

截至三月底，公司未償還債務約為 10 億美元，2016 年剩餘時間的當前綜合加權平均利率為 3.5%。不包括債務發行成本和所收購債務的公允價值調整，我們的債務包括 4.29 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的 5.97 億美元未償還債務。我們的未償債務約為過去 12 個月調整後 EBITDA 的 3.1 倍，佔本季末企業價值的 23%。

We have continued to work toward shifting our debt profile by reducing secured mortgage debt, which in general was assumed with the acquisition of hotels as we built the portfolio, and increasing unsecured debt. Since the beginning of 2015, we have extinguished 19 mortgage loans with an average rate of 5.9%. Over the next 12 months, we anticipate extinguishing another 12 secured loans with an average rate of approximately 5.7%. Mindful of staggering maturities, we will continue to selectively utilize 10-year traditional mortgage debt for financing needs; however, the flexibility and pricing of unsecured debt will be our primary focus. With that in mind, subsequent to quarter-end, we entered into $150 million unsecured term loan facility to fund our maturing secured loans. The facility is comprised of $100 million 7-year term loan and a $50 million 5-year term loan.

我們繼續致力於改變我們的債務狀況，減少有擔保的抵押貸款債務（這通常是在我們建立投資組合時收購酒店時承擔的），並增加無擔保債務。自2015年初以來，我們已償還了19筆抵押貸款，平均利率為5.9%。在接下來的 12 個月內，我們預計將再償還 12 筆擔保貸款，平均利率約為 5.7%。考慮到期限錯開，我們將繼續有選擇地利用 10 年期傳統抵押貸款債務來滿足融資需求；然而，無擔保債務的靈活性和定價將是我們關注的重點。考慮到這一點，在季度末之後，我們簽訂了 1.5 億美元的無擔保定期貸款協議，為到期的擔保貸款提供資金。該貸款包括 1 億美元的 7 年期定期貸款和 5,000 萬美元的 5 年期定期貸款。

At closing, the Company borrowed $50 million under the facility. The facility provides a delay draw feature, which allows us to draw the remaining availability between now and October 2016. Concurrent with the term loan facility, we entered into two forward interest rate swap agreements to fix the rate on the variable rate loan. The effective fixed interest rates on the 7-year and 5-year loans are 3.1% and 2.5%, respectively. The term loans are subject to similar requirements and covenants as our $965 million unsecured credit facility.

交易結束時，該公司根據該協議借款 5,000 萬美元。該貸款提供延遲提取功能，使我們能夠從現在到 2016 年 10 月提取剩餘可用貸款。在提供定期貸款的同時，我們也簽訂了兩份遠期利率交換協議，以確定浮動利率貸款的利率。 7年期和5年期貸款的實際固定利率分別為3.1%和2.5%。定期貸款與我們 9.65 億美元的無擔保信貸額度有類似的要求和契約。

During the first quarter, the Company paid distributions of $0.30 per share. 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 6.4% yield on our May 3 closing price of $18.81.

第一季度，該公司支付每股 0.30 美元的分配。我們的董事會已授權每月定期分配每股 0.10 美元的現金。每股普通股年化收益率為 1.20 美元，相當於 5 月 3 日收盤價 18.81 美元的年收益率為 6.4%。

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 hotels under contract, except for those related to Apple Ten; 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 of 2016, based on our operating performance year to date, and our visibility into business drivers for the remainder of the year, we reaffirm the guidance we provided on our year-end earnings call. We specifically anticipate comparable hotels RevPAR growth of 3.5% to 5.5% and adjusted EBITDA of $340 million to $360 million for the full year of 2016.

我們對 2016 年的指引是基於管理層對公司現有酒店和簽約酒店組合的運營和經濟基本面的當前看法，但與 Apple Ten 相關的酒店除外；並且沒有考慮到我們業務中任何意外發展或經營環境變化的影響。對於 2016 年全年，基於我們年初至今的經營業績以及我們對今年剩餘時間業務驅動力的預見性，我們重申我們在年終收益電話會議上提供的指引。我們特別預期 2016 年全年可比飯店 RevPAR 成長率為 3.5% 至 5.5%，調整後 EBITDA 為 3.4 億至 3.6 億美元。

As Justin mentioned earlier, we continue to move forward with the proposed Apple Ten merger and plan to file a preliminary joint proxy registration statement in the near future. This document will have additional information regarding the proposed transaction and Apple Ten. To the extent you have questions regarding Apple Ten, we encourage you to visit Apple Ten's website and review their filings with the SEC.

正如賈斯汀之前提到的，我們將繼續推進擬議的 Apple Ten 合併，並計劃在不久的將提交初步聯合代理註冊聲明。該文件將包含有關擬議交易和 Apple Ten 的更多資訊。如果您對 Apple Ten 有任何疑問，我們鼓勵您造訪 Apple Ten 的網站並查看他們向美國證券交易委員會提交的文件。

Lastly, just as a reminder, our annual shareholder meeting is next Thursday, May 12. For any investors on the call, we hope you can join us and we encourage you to vote on the proposals that are included in the Company's 2016 proxy.

最後，提醒一下，我們的年度股東大會將於下週四（5 月 12 日）舉行。對於參加電話會議的任何投資者，我們希望您能加入我們，並鼓勵您對公司 2016 年代理中包含的提案進行投票。

Thank you again for joining us this morning. We will now open up the call for questions.

再次感謝您今天早上加入我們。我們現在開始提問。

(Operator Instructions)

（操作員指示）

Ryan Meliker, Canaccord Genuity.

Canaccord Genuity 的 Ryan Meliker。

Hey. Good morning. I just had a couple of things.

嘿。早安.我只有幾件事。

First of all, the four assets that you are acquiring that look to be under development over the course of 2016 and 2017 for $81 million, can you give us an idea of when we should expect those to close? Is it going to be weighted towards 3Q, 4Q, late 2017, et cetera, that will just be helpful?

首先，您收購的四項資產預計將在 2016 年和 2017 年期間進行開發，收購價格為 8,100 萬美元，您能否告訴我們這些資產預計何時能夠完成開發？它是否會專注於 2017 年第三季、第四季、末期等等，這會有幫助嗎？

Sure. Good morning, Ryan. The Atlanta asset, we anticipate the close mid- to late summer of this year. The asset in Fort Worth should close fourth quarter. And then, the other two assets in Birmingham will close next year.

當然。早安，瑞安。對於亞特蘭大資產，我們預計將在今年夏季中後期結束。沃斯堡的資產應該會在第四季結束。然後，伯明罕的另外兩處資產將於明年關閉。

Are we talking early next year, mid, late, any idea?

我們談論的是明年年初、年中還是年末，有什麼想法嗎？

Mid-next year. They are early in development right now.

明年年中。它們目前處於早期開發階段。

Okay. That's helpful. Then the second question I had was you -- I'm curious, you beat our expectations, and most of consensus on the quarter, but you didn't raise guidance for the full year. I'm wondering if you beat your internal expectations for the quarter, or this was in line, or if you're seeing anything that leads you to be a little bit more conservative throughout the rest of the year, or if this is just more conservative in terms of a guidance standpoint?

好的。這很有幫助。然後我的第二個問題是——我很好奇，你的業績超出了我們的預期，也超出了本季度的大多數共識，但你並沒有提高全年的業績預期。我想知道您是否超出了本季度的內部預期，或者這是否符合預期，或者您是否看到了一些事情導致您在今年剩餘時間內變得更加保守，或者這是否只是從指導角度來看更加保守？

That's a good question, Ryan. We are extremely pleased with the performance of our portfolio in the first quarter. Given what a number of pundits were speaking about earlier in the year, we feel our portfolio performed as expected and very well. Krissy mentioned in her remarks, we continued to see very positive performance from our portfolio through April.

這是個好問題，瑞安。我們對第一季投資組合的表現非常滿意。考慮到今年早些時候許多專家的言論，我們認為我們的投資組合表現符合預期，而且非常好。 Krissy 在發言中提到，截至四月份，我們的作品集表現仍然非常正面。

Given the nature of our assets and the short booking window, we feel it's early in the year to be making revisions to our guidance, but that should not be interpreted as a lack of confidence in the future performance of our portfolio. Given performance to date and prospects in the near term, we're far more focused on the high-end of our guidance than the low end of our guidance at this point.

鑑於我們資產的性質和短暫的預訂窗口，我們認為今年年初就對我們的指導進行修改還為時過早，但這不應被解讀為對我們投資組合未來表現缺乏信心。鑑於迄今為止的表現和近期的前景，我們目前更加關注指導的高端而不是指導的低端。

Great. That's really helpful color, thanks. And then one last thing, and I know Krissy gave some good color regarding transient trends and how things were looking heading into April and the lack of any concerns outside of some energy markets. How are things looking in business versus leisure across your portfolio? I know that's always hard to gauge. But we've heard concerns that business has slowed and maybe that's going to start to pick back up. But leisure has offset that to a large degree. Any color in what you are seeing in that regard?

偉大的。這顏色真的很有幫助，謝謝。最後一件事，我知道克莉絲對瞬態趨勢、四月份的情況以及除某些能源市場之外的擔憂給出了很好的解釋。在您的投資組合中，商務和休閒的情況如何？ 我知道這總是很難衡量。但我們聽說有人擔心業務已經放緩，也許業務即將開始回升。但休閒在很大程度上抵消了這一點。就此而言，您看到什麼顏色了嗎？

Going back -- again, good morning, Ryan -- going back to the earlier comments that I gave in my commentary, we're still feeling at this point, that our business transient band is stable and the majority of our markets, the trends are as we would expect. Leisure, we are not seeing a slow down in leisure.

回過頭來說——再次，早上好，瑞安——回到我之前在評論中提到的觀點，我們現在仍然感覺，我們的業務瞬態帶是穩定的，而且我們大多數市場的趨勢都符合我們的預期。休閒，我們並沒有看到休閒活動的放緩。

In fact, when we are looking at, even though the group is a smaller percentage of our Business, 14%, 15%, when you look at -- as we head into the higher occupancy months in the summer months, we're seeing some nice pick-up in some of those smaller group-type leisure-oriented group bookings. For example, sports groups, family, family groups, and things like that. So, we feel very good, based on the commentary that we're getting back from our properties, that on both business and leisure, that trends are in the mid-single-digit range in terms of booking pace.

事實上，儘管團體旅遊只占我們業務的一小部分，只有 14%、15%，但隨著夏季入住率的上升，我們發現一些小型休閒團體預訂量出現了不錯的增長。例如，運動團體、家庭、家庭團體等等。因此，根據我們從飯店得到的評論，我們感覺非常好，無論是商務還是休閒，預訂速度的趨勢都處於中等個位數範圍內。

All right. That's really helpful. I'll jump back in queue with anything else. Thanks a lot.

好的。這真的很有幫助。我將重新排隊處理其他事情。多謝。

Thank you, Ryan.

謝謝你，瑞安。

Jeff Donnelly, Wells Fargo.

富國銀行的傑夫唐納利。

Good morning, folks. Justin, not to sound like a what have you done for me lately question, but I'm just curious, how do you look at the landscape for further portfolio acquisitions beyond Apple Ten? Do you think that there's -- maybe not of the same scale, but do you see clusters of assets out there that would be of interest to you that could come to market or might be coming to market?

大家早安。賈斯汀，這聽起來不像是「你最近為我做了什麼」的問題，我只是好奇，你如何看待除了 Apple Ten 之外的進一步投資組合收購的前景？您是否認為——也許規模不同，但您是否看到了一些您感興趣的、可能進入市場或即將進入市場的資產集群？

Good morning. Good question. We are continually exploring additional opportunities. Interestingly, over the past decade or so, there's been significant consolidation within the hospitality industry. Not all of that consolidation has happened in the public markets and there are a number of smaller to mid-sized, even large portfolios that exist outside of the public market.

早安.好問題。我們正在不斷探索更多的機會。有趣的是，在過去十年左右的時間裡，酒店業經歷了顯著的整合。並非所有的整合都發生在公開市場，在公開市場之外還存在著許多小型、中型甚至大型的投資組合。

What happens with those has yet to be decided in many instances. We've been consistent, since listing, in our messaging related to growth through acquisition in that we're fortunate to have listed a portfolio upscale that's sufficiently large to be meaningful and to be operated efficiently. As we explore additional opportunities, that exploration is governed by really two principles. One, consistency with our existing strategy and portfolio, which is a limiting factor as we explore or look at some of the portfolios that exist. Then two, the opportunity needs to be accretive for our shareholders.

在很多情況下，如何處理這些問題尚未確定。自上市以來，我們始終如一地傳達著透過收購實現成長的訊息，我們很幸運能夠上市一個規模足夠大、有意義且能夠高效運作的高檔投資組合。當我們探索更多機會時，這種探索實際上受到兩個原則的支配。第一，與我們現有的策略和投資組合保持一致，這是我們探索或研究現有一些投資組合時的限制因素。其次，這個機會需要為我們的股東帶來增值。

We've found, in Apple Ten, a very good fit that met both of those criteria. As we explore other opportunities, we will be looking to structure deals, to the extent they are available, similar to the way that we structured the deal on Apple Ten.

我們發現，Apple Ten 非常符合這兩個標準。當我們探索其他機會時，我們將尋求在可行的範圍內建立交易，類似於我們對 Apple Ten 的交易建構方式。

Do have a strong preference, to the extent different opportunities come to light, do you have a strong preference for select service versus maybe more of a full-service orientation? Are you agnostic there?

您是否有不同的偏好，在不同機會出現的範圍內，您是否更傾向於選擇服務，而不是全方位服務？你是不可知論者嗎？

We are far from agnostic. We have, for some time, been positioned as a strong player in the select service space. And really believe wholeheartedly that that is the space that we want to continue to operate in. In earlier calls, we mentioned that, while full-service makes up a very small percentage of our existing portfolio, over time, it's our intent to liquidate our position in those assets through sale, as opportunities present themselves, and to further concentrate our efforts in the select service space.

我們遠非不可知論者。一段時間以來，我們一直被定位為精選服務領域的強大參與者。並且真心相信這是我們想要繼續經營的領域。在先前的電話會議中，我們提到，雖然全方位服務只占我們現有投資組合的一小部分，但隨著時間的推移，隨著機會的出現，我們打算透過出售來清算我們在這些資產中的持股，並進一步集中我們的精力在精選服務領域。

Really, looking at our strategy, which is to drive stable returns for our shareholders, we feel that, that's much easier to accomplish in the upscale select service and extended stay space, where you have less volatility, higher margins, and really an ability to diversify the portfolio in a meaningful way to mitigate regional risk.

實際上，從我們的策略來看，即為股東帶來穩定的回報，我們認為，在高檔精選服務和長期住宿領域實現這一目標要容易得多，因為這些領域的波動性較小、利潤率較高，而且能夠以有意義的方式實現投資組合多元化，從而降低區域風險。

Just one last question.

最後一個問題。

From your seat, just because you get to work with a handful different brands, when we look across the select service brands, there seems to be, at least my perception is, there seems to be increasing variation of their performance in terms of market share gains and losses. I was wondering if there was something that's -- maybe that's not unique to this time period, maybe in your view it is.

從您的角度來看，僅僅因為您可以與少數不同的品牌合作，當我們縱觀精選的服務品牌時，似乎，至少我的看法是，就市場份額的增減而言，它們的表現似乎差異越來越大。我想知道是否存在某種東西——也許這不是這個時期獨有的，也許在您看來是獨有的。

I was just curious if you thought that there might be some trends going on, and maybe what's driving them, as we look across everything from whether its Choice or La Quinta or the Hilton Marriott families, it just feels like performance is becoming a little more uneven among their select service brands. Wanted your thoughts.

我只是好奇，您是否認為可能存在一些趨勢，以及推動這些趨勢的因素，當我們縱觀從 Choice 或 La Quinta 還是希爾頓萬豪家族的所有酒店時，感覺他們的精選服務品牌的表現變得有些不平衡。想要你的想法。

It's interesting, that's actually a very good question. We've had this conversation with a number of investors on the road. The difficulty with RevPAR yield numbers is that they are extremely valuable on an individual asset basis, but significantly less valuable when you -- to look at the performance of a total portfolio.

這很有趣，這實際上是一個非常好的問題。我們在路上已經和很多投資者進行過這樣的對話。 RevPAR 收益率數字的困難在於，它們在單一資產基礎上極有價值，但當你查看整個投資組合的表現時，它們的價值就會大大降低。

Looking at the individual brands, the make-up and distribution of those brands has shifted fairly dramatically really across the entire landscape over the past several years. With each new asset added to the brand, that asset comes with a unique comp set. Really, because that comp set is much more dependent on the individual region than the brand specifically, averages of RevPAR yields have the potential to just store it -- or to lead individuals looking at them to draw conclusions that are not necessarily fully valid.

從單一品牌來看，過去幾年中，這些品牌的組成和分佈在整個行業中發生了相當大的變化。隨著每個新資產添加到品牌，該資產都會帶有獨特的競爭集。事實上，由於該競爭群體對單一地區的依賴程度遠高於對品牌的依賴程度，因此，RevPAR 收益率的平均值有可能只是將其儲存起來 - 或者導致個人得出不一定完全有效的結論。

I can add to that, too, Jeff. If you look at what both Marriott and what Hilton reported, the product that we're invested in, their select services and extended stay product, really does have broad consumer appeal. Both of them did report, with their market share numbers, that their select service and extended stay product did grow market share.

傑夫，我也可以補充這一點。如果你看看萬豪和希爾頓的報告，你會發現，我們所投資的產品、他們的精選服務和長期住宿產品確實具有廣泛的消費者吸引力。兩家公司都透過市場份額數據報告稱，他們的精選服務和延長住宿產品的市場份額確實有所增長。

If you look at it in the first quarter, that segment, that upscale, that upper mid-scale segment, really outperforms the economy segment. So we would expect, with the product that we're invested in, that that performance should continue. We feel good about that.

如果你看一下第一季的情況，你會發現高階飯店、中高階飯店的表現確實優於經濟型飯店。因此，我們期望，對於我們所投資的產品，這種表現能夠持續下去。我們對此感到很高興。

Okay, great. Thank you, folks.

好的，太好了。謝謝大家。

Thank you.

謝謝。

Daniel Donlan, Ladenburg Thalmann.

丹尼爾唐蘭、拉登堡塔爾曼。

Thank you and good morning. I was just hoping you could comment on the other revenue line item. It looks like it declined year-over-year, and was just curious what was driving that? Was it just one particular hotel, or maybe it's related to the New York asset? Just wanted to--?

謝謝，早安。我只是希望您能對其他收入項目發表評論。看起來它比去年同期有所下降，我很好奇是什麼原因造成的？這只是某個特定的飯店嗎，還是與紐約資產有關？只是想——？

It is. Good morning Dan. It is related to the New York asset. We mentioned on the last call that we had a one-time pay-out of $1.4 million, I believe it was approximately, related to the turnover of one of our large tenants. So, that is a big piece of that.

這是。早上好，丹。它與紐約資產相關。我們在上次電話會議上提到，我們有一筆 140 萬美元的一次性支出，我相信這筆錢大約與我們一位大租戶的營業額有關。所以，這是其中很重要的一環。

We did have some decline in the first quarter in F&B revenue, as well. That was primarily attributed to one of our large full-service assets, the Richmond Marriott, a change-over in the business. There was a large convention that was held in January this year that did not recur. So we had less F&B from that particular event.

我們第一季的餐飲收入也確實有所下降。這主要歸因於我們的大型全方位服務資產之一里士滿萬豪酒​​店的業務轉型。今年 1 月曾舉行過一次大型會議，但後來沒有再舉行。因此，那次活動帶給我們的餐飲減少。

Okay. Actually went to my prom there. Looking at the -- at some of your markets, eight of them had a RevPAR decline of 6% of more. Was just curious: should we assume that those were the hotels that were probably the most impacted by renovations. It looks like your occupancy was down -- it was mostly occupancy driven?

好的。事實上我去那裡參加了我的舞會。看看你們的一些市場，其中八個市場的 RevPAR 下降了 6% 甚至更多。只是好奇：我們是否應該假設這些飯店可能是受翻修影響最大的飯店。看起來您的入住率下降了——這主要是由於入住率下降所致？

Yes. We did have quite a few markets that were down related to renovations, and I'd have to look at the specific markets to be able to -- let me go back and double check. You would've had, in looking at the markets, you would've had Alaska, so it would've been the Anchorage hotel that would've driven that. You would've had -- we had multiple hotels. We had the Pittsburgh asset that drove that particular market down. We don't give details on markets, but most of the double-digit declines were related to renovations hotels.

是的。我們確實有不少市場因裝修而陷入低迷，我必須查看具體的市場才能——讓我回去再檢查一下。從市場角度來看，你會看到阿拉斯加，因此推動這一進程的應該是安克拉治酒店。你會擁有——我們有多家酒店。我們擁有匹茲堡資產，這導致該特定市場下跌。我們沒有透露市場細節，但大多數兩位數的下降都與飯店裝修有關。

Okay, that's what I thought. As far as directionally on RevPAR growth, would you expect the second and third quarters to be your strongest and fourth quarter somewhere in line with first quarter? Or how should we think about that directionally, if you could give that?

好的，我也是這麼想的。就 RevPAR 成長的方向而言，您是否預計第二季和第三季將是最強勁的季度，而第四季將與第一季持平？或者如果您能給出答案的話，我們應該如何從方向性來考慮這個問題？

We would say, consistent with our previous history, and we don't see any reason in the trends that we're seeing to go away from that, yes, that the second and third quarter are traditionally the strongest quarters for us.

我們會說，與我們之前的歷史一致，而且我們認為趨勢沒有任何理由偏離這一點，是的，第二季和第三季傳統上是我們表現最強勁的季度。

Okay. Then as far as suburban and your airport hotels, they have been consistently outperforming your urban hotels, and that might be completely related to location. But was just curious what you're seeing there? The question relates to, are you seeing more folks book in your suburban hotels and then travel into the urban core because your hotels are so much -- the rates are so much cheaper there than maybe the urban core? Are you seeing that trend at all, or is there any way you can tell if that trend is actually happening?

好的。就郊區和機場酒店而言，它們的表現一直優於市區酒店，這可能完全與地理位置有關。但我只是好奇你在那裡看到了什麼？問題是，您是否看到更多人預訂了郊區的酒店，然後前往市中心，因為那裡的酒店價格比市中心便宜得多？您是否看到了這種趨勢，或者有什麼方法可以判斷這種趨勢是否確實正在發生？

At the suburban hotels, the reason that we're doing better, and it's not just unique to us, it's also -- you can see in the industry numbers, is the supply originally came first to the urban locations, so we are seeing less impact from a supply standpoint in the suburban market. So that's the main reason. And then also there's less impact from Airbnb and the international exchange rates and things like that.

在郊區酒店，我們做得更好的原因不僅是我們獨有的，而且——你可以在行業數據中看到，供應最初首先流向城市地區，因此從供應的角度來看，郊區市場受到的影響較小。這就是主要原因。而 Airbnb 和國際匯率等因素的影響也較小。

Okay. Then just curious, you've mentioned flex flow, and I think you've explained this to me before when I've met with you, but could you maybe explain that one more time, exactly what that metric is? It's not something I've heard too often?

好的。那麼只是好奇，您提到了彈性流，我認為您之前在我與您會面時已經向我解釋過這一點，但是您能否再解釋一次，這個指標到底是什麼？這不是我常聽到的事情嗎？

Absolutely. One of the reasons in the management, the new management contract terms, we assign, quite a bit of value to that particular metric. So if you exceed your budgeted revenue, flow is how much of that you bring to the bottom line. We -- our target for the majority of our hotels in the rate-driven market is 70%. We'd like to see at least 70% of that revenue variance flow to the bottom line.

絕對地。管理中的原因之一是，我們為新的管理合約條款賦予了該特定指標相當多的價值。因此，如果您超出了預算收入，那麼流量就是您為底線帶來的收入。我們的目標是，在價格驅動型市場中，大多數飯店的比例是 70%。我們希望看到至少 70% 的收入差異流入底線。

On the other side, if you're market is not doing as well, and you are running behind budget, or trending behind budget, we'd like to see you at least save 30% of those -- save 30% of the deficit and bring that back. Then that varies full-service versus select service, but it incentivizes our managers even if the market is not performing well, to really maximize.

另一方面，如果你的市場表現不佳，並且你的預算落後，或者趨勢落後於預算，我們希望看到你節省至少 30%——節省 30% 的赤字並將其收回。全方位服務和精選服務有所不同，但即使市場表現不佳，它也能激勵我們的經理最大化。

And we were very pleased to see that our managers were very much on top of that. Then ultimately that flows through to where we had -- where I reported that we had a 50% EBITDA flow for the quarter, which was solid, given 4% RevPAR growth.

我們非常高興地看到我們的經理們已經完全掌握了這一點。然後最終流向我們所報告的——本季我們的 EBITDA 流量為 50%，考慮到 RevPAR 成長了 4%，這個數字是穩健的。

Okay, appreciate that. Last question, maybe for Bryan. As we look out three, four years, is it Apple's goal to become an investment-grade rated issuer? Once you -- if you are able to close the Apple Ten deal, you will be the second largest hotel refi equity market cap. So was just curious what your ambitions and maybe what your goals are there?

好的，非常感謝。最後一個問題，也許是問布萊恩的。展望未來三四年，蘋果的目標是成為投資級發行人嗎？一旦你——如果你能夠完成 Apple Ten 交易，你將成為第二大酒店再融資股票市值。所以我只是好奇你的抱負是什麼以及你的目標是什麼？

It's definitely on our list to consider. At this point, pricing differential is not that great. So we haven't made it a high objective. We think, given the low leverage, we should be in a good position to achieve that, like you mentioned, with Apple 10, if that goes through. So it's on our list, but it's not an imminent priority for us.

它絕對在我們的考慮範圍內。目前，價格差異並不是很大。因此我們並沒有將其定為高目標。我們認為，鑑於槓桿率較低，如果 Apple 10 順利通過，我們應該能夠很好地實現這一目標，就像您提到的那樣。因此它在我們的清單上，但並不是我們的當務之急。

Okay. Thank you. That's it for me.

好的。謝謝。對我來說就是這樣。

Thank you.

謝謝。

Bryan Maher, FBR.

布萊恩·馬赫（Bryan Maher），FBR。

Good morning. Most of my questions have already been asked. But as it relates to some of the newer brands that have been coming out to market, whether it is Tru by Hilton, or even if we look at some of the Starwood brands like Element and Aloft, with Starwood merging into Marriott, how do you think about some of these new brands when it comes to growing Apple over time?

早安.我的大部分問題已經被問過了。但是，就一些剛進入市場的新品牌而言，無論是希爾頓的 Tru，還是喜達屋旗下的一些品牌，如 Element 和 Aloft，隨著喜達屋併入萬豪，您如何看待這些新品牌在蘋果公司不斷發展壯大的過程中發揮的作用？

That's a good question. We -- I can speak to those three specifically and then we can talk more generally. Tru, we think represents an exceptional opportunity for Hilton, but it's currently positioned at a price point below the price point we target as we add assets to our portfolio. So we don't have any immediate plans to add Tru to our portfolio, though we will watch the development of that brand and its performance once hotels are operational, and explore it potentially at some point in the future, as we have other Hilton and Marriott brands.

這是個好問題。我們——我可以具體地談談這三個人，然後我們可以更籠統地談談。 Tru，我們認為這對希爾頓來說是一個絕佳的機會，但它目前的價格定位低於我們在向投資組合中添加資產時所設定的價格點。因此，我們目前沒有將 Tru 添加到我們投資組合中的計劃，但我們會關注該品牌的發展及其酒店投入運營後的表現，並可能在未來某個時候對其進行探索，就像我們擁有其他希爾頓和萬豪品牌一樣。

Looking at the Starwood brands specifically, we have not historically considered those brands, largely because of distribution, and in part because of the relative performance to those brands to the Marriott and Hilton brands that we already own. As part of the Marriott family, we would look at their performance, post transaction, and potentially if the changes that Marriott might make with the brands and look to add them as they become comparable from a profitability standpoint to the assets that we currently own.

具體來看喜達屋品牌，我們過去從未考慮過這些品牌，主要是因為分銷問題，部分原因是這些品牌相對於我們已經擁有的萬豪和希爾頓品牌的表現。作為萬豪家族的一部分，我們會關注其業績、交易後表現以及萬豪可能對品牌做出的改變，並在從盈利角度來看這些品牌與我們目前擁有的資產具有可比性時考慮將其納入。

Really, as we look at adding new brands to our portfolio, we consider a number of things. First, we look for product that has broad consumer appeal and ability to drive rate in competitive markets, but also an ability to play well in markets that are more difficult. As we enter new brands, we look to take sizable positions so that we can deploy our asset management team and other resources effectively against those assets.

事實上，當我們考慮將新品牌添加到我們的產品組合中時，我們會考慮很多事情。首先，我們尋找的產品不僅要具有廣泛的消費者吸引力，而且要在競爭激烈的市場中保持領先地位，還要能夠在更困難的市場中表現良好。當我們進入新品牌時，我們希望佔據相當大的份額，以便我們能夠針對這些資產有效地部署我們的資產管理團隊和其他資源。

We've highlighted, in a number of our calls and meetings, the fact that we rely very heavily on data-driven benchmarking to drive performance at our individual asset. That benchmarking depends on scale ownership within individual brands. So we're very thoughtful about adding new brands to our portfolio, and as we take positions in those brands, we look to take positions sizable enough to enable us to have the data necessary to really facilitate our operations in a way that's meaningful for those assets.

我們在多次電話會議和會議中都強調，我們非常依賴數據驅動的基準測試來推動我們個人資產的績效。此基準測試取決於各個品牌的規模所有權。因此，我們非常重視將新品牌添加到我們的投資組合中，並且在我們持有這些品牌的股份時，我們希望持有的股份規模足夠大，以便我們能夠獲得必要的數據，從而以對這些資產有意義的方式真正促進我們的運營。

Thanks. That's some helpful insight.

謝謝。這是一些很有幫助的見解。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Blair Brantley, BB&T.

布萊爾·布蘭特利，BB&T。

Good morning, everyone.

大家早安。

Good morning.

早安.

Most of my questions have been asked. I did have a question. Have you seen any impact yet from the brands trying to push booking through their websites versus the OTAs? Have you seen any impact there with the discount pricing and stuff?

我的大部分問題都已經被問過了。我確實有一個問題。您是否已經看到品牌試圖透過其網站而非 OTA 來推動預訂所產生的影響？您是否看到折扣定價和其他措施帶來的影響？

I will be happy to take that question. Actually, we are 150% supportive of the brand initiatives to basically slow the rapid growth of the OTA business. We feel that it strengthens the loyalty proposition with our guests, and driving the increased bookings to our highest profit channel, where we have the greatest control, is what we want to do. So in the first quarter, it's still a little early yet because Hilton was the first one to really go big with the direct booking campaign and to introduce member rates.

我很樂意回答這個問題。實際上，我們 150% 支持品牌舉措，從根本上減緩 OTA 業務的快速成長。我們認為這加強了我們對客人的忠誠度主張，並將增加的預訂量推向我們利潤最高、我們擁有最大控制權的管道，這正是我們想要做的。因此，在第一季度，現在還為時過早，因為希爾頓是第一個真正大力開展直接預訂活動並推出會員價格的酒店。

But we did see in the first quarter actually what we would want to see. We saw increase in direct bookings going to our retail-rated channels. And we also did see a moderation in our OTA business. As a result, we saw a moderation in our travel agent commissions in the first quarter. So, we're looking forward to, now, Marriott has also launched their member rate and we think that over time, that that's going to be a huge you win for the industry.

但我們在第一季確實看到了我們希望看到的事情。我們發現透過零售通路直接預訂的量增加。我們的 OTA 業務也確實出現了放緩。因此，我們第一季的旅行社佣金有所下降。因此，我們現在期待萬豪也推出了他們的會員價格，我們認為，隨著時間的推移，這將是該行業的巨大勝利。

Okay, that's very helpful. And then, on a separate note, can you maybe give us an update on what you're seeing in the New York market for pricing? I know that we talked about the Renaissance hotel not really fitting in. Just any update would be helpful?

好的，這非常有幫助。然後，另外，您能否向我們介紹一下您對紐約市場定價的最新情況？我知道我們討論過文藝復興酒店不太合適。任何更新都有幫助嗎？

To clarify, are you speaking about pricing power with consumers, or pricing power by (multiple speakers)--?

澄清一下，您說的是消費者的定價權，還是（多位發言者）的定價權－？

Just pricing with transaction and what's out there? Yes, transaction--?

僅透過交易進行定價，還有什麼？是的，交易——？

That's a good question. We -- there are a large number of assets currently on the market for sale in New York and we think that has potential to impact pricing for those assets. To date, the assets that have transacted have transacted at very attractive pricing from a cap rate standpoint.

這是個好問題。我們—目前紐約市場上有大量資產待售，我們認為這可能會影響這些資產的定價。迄今為止，從資本化率的角度來看，已交易資產的價格非常有吸引力。

There exists the possibility that there will continue to be sufficient demand for those assets, despite the increase in supply, meaning properties for sale in that market, that those values will be sustained. But it's certainly becoming more competitive for groups looking to sell assets in New York.

儘管供應量增加（即市場上待售的房產數量增加），但對這些資產的需求仍然可能足夠，因此這些資產的價值將得以維持。但對於希望出售紐約資產的團體來說，競爭無疑變得更加激烈。

We have been clear from the beginning, that as we look at potential dispositions for our full-service assets, we will be opportunistic in pursuing those transactions, and really only do so to the extent, A, we feel that the pricing on the transaction is attractive, and B, that we have an ability to redeploy the capital in a meaningful way for our shareholders. That applies both to that property specifically and to other full-service hotels, and really, to a larger extent, select service hotels that we might consider selling at some point in the future.

我們從一開始就明確表示，當我們考慮全方位服務資產的潛在處置方式時，我們將抓住機會進行這些交易，並且實際上只會在以下情況下這樣做：A，我們認為交易定價具有吸引力；B，我們有能力以對股東有意義的方式重新部署資本。這既適用於該酒店，也適用於其他全方位服務酒店，實際上，在更大程度上，也適用於我們可能在未來某個時候考慮出售的精選服務酒店。

Okay, great. Thank you.

好的，太好了。謝謝。

Thank you. Thanks for joining us.

謝謝。感謝您的加入。

Ryan Meliker, Canaccord Genuity.

Canaccord Genuity 的 Ryan Meliker。

Hey, hello again. Just wanted to talk a little bit about M&A in the space. I know you have obviously been pretty active with Apple REIT Ten and you just announced this for us, a portfolio that's under development today. I'm just wondering, as you think about other public companies, and not specific to anybody in particular, but if you saw a portfolio that was in the public realm, that traded at a material discount to net asset value, is that something that you would try to pursue or engage in or would you wait for that portfolio to maybe come to market publicly?

嘿，你好。只是想稍微談談一下該領域的併購。我知道您顯然對 Apple REIT Ten 非常積極，並且您剛剛向我們宣布了這項正在開發的投資組合。我只是想知道，當您考慮其他上市公司時，並不是針對任何特定的公司，但如果您看到一個在公共領域的投資組合，其交易價格遠低於淨資產價值，您會嘗試追求或參與其中嗎？或者您會等待該投資組合公開上市嗎？

I appreciate the question, Ryan.

我很感謝你的提問，瑞安。

We are in continual dialogue with anybody and everybody who owns assets in our particular space and would look to pursue any opportunity that results either from those conversations or is brought to us through the ordinary course of business. Because you weren't specific about an individual portfolio, I probably don't need to be terribly specific in my response, but, we're continually looking for opportunities to enhance our shareholder value, again, being fortunate not to have a need to pursue those opportunities in order to drive success in our business.

我們與在我們特定領域擁有資產的任何人保持著持續的對話，並希望抓住這些對話產生的或在正常業務過程中為我們帶來的任何機會。因為您沒有具體說明單一投資組合，所以我可能不需要在回答中說得非常具體，但是，我們一直在尋找機會來提高股東價值，同樣幸運的是，我們不需要追求這些機會來推動我們業務的成功。

That's really helpful. How do you think about those types of opportunities in terms of trying to drive pricing? Are you focus on the G&A synergies, maybe property-level synergies, as you are able to complex assets in given markets. How much do you care about scale, trying to get to an $8 billion or $10 billion market cap level from a liquidity standpoint? Are any of those driving factors that would help make a deal work for you/ Or is it really just on buying an asset at a discount to what you think that asset is really worth?

這真的很有幫助。就試圖推動定價而言，您如何看待這些類型的機會？您是否專注於一般及行政管理方面的綜效，也許是財產層級的綜效，因為您能夠在特定市場中複合資產。從流動性的角度來看，您有多在意規模，試圖達到 80 億美元或 100 億美元的市值水準？這些驅動因素中是否有任何因素可以幫助您達成交易/或實際上只是以低於您認為的資產實際價值的價格購買資產？

That's a very fair question. Ultimately, any transaction, whether it was a public company or a private group, is at its root, an asset transaction, and we would view deals that way. I mentioned before, we do not feel we have a mandate nor a need to grow to a particular size.

這是一個非常公平的問題。最終，任何交易，無論是上市公司還是私人集團，從根本上來說都是資產交易，我們也會以這種方式看待交易。我之前提到過，我們並不認為我們有義務或需要發展到特定的規模。

We operate extremely efficiently from a corporate G&A standpoint, and have a portfolio we feel that's sizable enough to be very relevant. Someone highlighted earlier on this call that we are already, or will be, post-transaction, the second or third largest hospitality REIT in the space. So that's not a driver.

從企業一般及行政管理角度來看，我們的營運效率極高，我們認為我們的投資組合規模夠大，非常相關。有人在本次電話會議早些時候強調，我們已經是，或者在交易後將成為該領域第二大或第三大酒店房地產投資信託基金。所以這不是一個驅動因素。

The challenge from a G&A savings standpoint is that, typically, that savings would be offset, at least in the short-term, by transaction-related costs, specifically, costs related to determination of existing -- or severance for existing in-place management. So, ultimately, as we value individual transactions, we look at the value of the real estate and whether or not that real estate would be additive to our existing portfolio.

從一般及行政費用節省的角度來看，挑戰在於，通常情況下，節省的資金至少在短期內會被與交易相關的成本所抵消，具體而言，是與確定現有管理人員或遣散現有管理人員相關的成本。因此，最終，當我們評估單一交易時，我們會考慮房地產的價值以及該房地產是否會增加我們現有的投資組合。

That's really good color. Thanks, Justin.

這顏色真好看。謝謝，賈斯汀。

I understand that gives us good framework surrounding the appetite for future growth. What about capacity with Apple REIT Ten on the horizon? It seems like that's a pretty easy plug and play, since you already externally advise Apple REIT Ten. Would that transaction inhibit you in any way from doing another large deal in the near term, or no?

我理解這為我們圍繞未來成長的願望提供了一個良好的框架。 Apple REIT Ten 即將面世，那麼容量如何呢？這似乎是一個非常簡單的即插即用，因為您已經為 Apple REIT Ten 提供外部建議。該交易是否會以某種方式阻礙您在短期內進行另一筆大交易？

I highlighted in our remarks that because we're currently managing the portfolio, we anticipate that a combination of the two companies would be seamless. We're organized in such a way that the assets fit very nicely into our current structure, and in fact, post-transaction, there would be some reductions in workload from an accounting standpoint as we move from reporting for two companies to one Company.

我在我們的評論中強調，由於我們目前正在管理投資組合，我們預計兩家公司的合併將無縫銜接。我們的組織方式使得資產非常適合我們目前的結構，事實上，交易後，從會計角度來看，工作量會減少一些，因為我們從為兩家公司報告轉變為為一家公司報告。

The advantages of that particular transaction are multiple, but one of the primary advantages is that the transaction maintains, and in fact strengthens, our balance sheet, as it increases the scale of that balance sheet, really, enabling us to continue to be flexible, and to have sufficient and significant capacity to pursue other transactions, to the extent those transactions are viewed to be beneficial for our existing shareholders.

該特定交易的優勢有很多，但主要優勢之一是該交易維持並實際上加強了我們的資產負債表，因為它增加了資產負債表的規模，實際上使我們能夠繼續保持靈活性，並擁有足夠和顯著的能力去進行其他交易，只要這些交易被認為對我們現有的股東有利。

There are some limitations from a timing standpoint baked into the current contract that we have with Apple Ten, but assuming a transaction close in the third quarter, as is currently contemplated, we would be in a position, fairly quickly, to pursue other transactions, should there be a transaction that materialized that we thought would potentially meaningful for our shareholders.

從時間角度來看，我們與 Apple Ten 簽訂的現有合約存在一些限制，但假設交易將在第三季完成（正如目前的設想），我們將能夠相當快地進行其他交易，如果有交易實現，我們認為這對我們的股東來說可能很有意義。

All right. That's what I was looking for. Thanks, Justin.

好的。這正是我所尋找的。謝謝，賈斯汀。

Thank you, Ryan. Appreciate it.

謝謝你，瑞安。非常感謝。

It appears we have no further questions at this time, so I'd like to turn the floor back over to Mr. Knight for any additional concluding comments.

目前看來我們沒有其他問題，因此我想將發言權交還給奈特先生，請他發表進一步的總結性評論。

Thank you.

謝謝。

We'd like to thank everybody for joining us this morning. We are pleased with the way our portfolio has performed in the first quarter and we anticipate that the strength and stability will continue for the remainder of the year. As we mentioned in our prepared remarks, fundamentals remain generally favorable in most of our markets.

我們感謝大家今天上午的參加。我們對第一季投資組合的表現感到滿意，並預計這種強勁和穩定的勢頭將在今年剩餘時間內持續下去。正如我們在準備好的評論中提到的那樣，大多數市場的基本面總體上仍然良好。

While we do not anticipate significant deterioration in economic indicators between now and our next call, we've intentionally structured our portfolio to produce strong results during periods of prosperity and to be resilient during periods of economic difficulty. We hope that as you travel, you'll take opportunity to stay with us in our hotels, and hope you have a great day.

雖然我們預計從現在到下次電話會議期間經濟指標不會顯著惡化，但我們有意建立了我們的投資組合，以便在經濟繁榮時期產生強勁業績，並在經濟困難時期保持韌性。我們希望您在旅行時能有機會入住我們的飯店，並祝您有個愉快的一天。

Thank you. Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation and you may disconnect your lines at this time.

謝謝。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，您現在可以斷開線路了。