Apple Hospitality REIT Inc (APLE) 2016 Q2 法說會逐字稿

Greetings, and welcome to the Apple Hospitality REIT second quarter 2016 earnings conference call.

您好，歡迎參加 Apple Hospitality REIT 2016 年第二季財報電話會議。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kelly Clarke, Vice President of Investor Relations. Thank you, Ms. Clarke, you may begin.

提醒一下，本次會議正在錄製中。現在，我想將會議交給主持人、投資者關係副總裁凱利克拉克 (Kelly Clarke)。謝謝您，克拉克女士，您可以開始了。

Thank you. Good morning, and welcome to Apple Hospitality REIT's second quarter 2016 earnings call on this, the 9th day of August 2016. Today's call will be based on the second quarter 2016 earnings release, which was distributed yesterday afternoon.

謝謝。早安，歡迎參加 Apple Hospitality REIT 於 2016 年 8 月 9 日舉行的 2016 年第二季財報電話會議。今天的電話會議將基於昨天下午發布的 2016 年第二季財報。

I would like to remind everyone that today's call will contain forward-looking statements as defined by federal securities laws, including statements regarding future operating results. These statements involve known and unknown risks and other factors which may cause actual results, performance, or achievements of Apple Hospitality to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Participants should carefully review our financial statements and the notes thereto, as well as the risk factors described in Apple Hospitality's 2015 Form 10-K, second 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 statement, 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 年第二季 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均僅代表今日的觀點，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 AppleHospitallityREIT.com.

此外，本次電話會議也將討論某些非 GAAP 績效指標，例如 EBITDA、調整後的 EBITDA、FFO 和修改後的 FFO。我們鼓勵參與者審查這些指標與 GAAP 指標的對帳情況，包括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。如需查看收益報告副本或有關該公司的更多信息，請訪問 AppleHospitallityREIT.com。

This morning, Justin Knight, our President and Chief Executive Officer; Krissy Gathright, our Chief Operating Officer; and Bryan Peery, our Chief Financial Officer, will provide an overview of our results for the second quarter of 2016, and an outlook for the sector and for the Company. Following the overview, we will have a question and answer session.

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 年第二季的業績以及該行業和公司的前景。概述之後，我們將進行問答環節。

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

現在我很高興將電話轉給賈斯汀。

Thank you, Kelly. Good morning, and welcome to Apple Hospitality REIT's second quarter 2016 earnings call.

謝謝你，凱利。早安，歡迎參加 Apple Hospitality REIT 2016 年第二季財報電話會議。

While general US economic indicators provided a less than stellar backdrop for the hotel industry as a whole during the second quarter, we are happy to report comparable hotels RevPAR grew 5.1%, bringing the year-to-date RevPAR growth through June to 4.5%. Comparable adjusted hotel EBITDA margin for the same period increased 90 basis points, and adjusted EBITDA and modified FFO per share grew 11.6% and 18.2%, respectively.

儘管美國總體經濟指標在第二季度為整個酒店業提供了不太亮眼的背景，但我們很高興地報告，同店可比酒店的 RevPAR 增長了 5.1%，使截至 6 月份的年初至今的 RevPAR 增長率達到 4.5%。同期可比調整後飯店 EBITDA 利潤率增加 90 個基點，調整後 EBITDA 和每股調整後 FFO 分別成長 11.6% 和 18.2%。

With 180 hotels located in more than 80 MSAs across 32 states, our portfolio of hotels is one of the largest, most geographically diverse hotel portfolios in the United States. This broad geographic diversity provides us exposure to a wide variety of demand generators, and minimizes the overall impact of volatility within a single market, region, or industry. Our strategy has somewhat insulated our portfolio from supply/demand dynamics uniquely impacting gateway markets over the past several quarters. However, we cannot fully mitigate macroeconomic factors that impact US markets broadly.

我們的飯店組合在美國 32 個州的 80 多個大都會統計區 (MSA) 中擁有 180 家飯店，是美國規模最大、地理分佈最廣泛的飯店組合之一。這種廣泛的地理多樣性使我們能夠接觸到各種各樣的需求產生器，並最大限度地減少了單一市場、地區或產業內波動的整體影響。在過去的幾個季度中，我們的策略在一定程度上使我們的投資組合免受供需動態的影響，而這種動態對門戶市場產生了獨特的影響。然而，我們無法完全減輕對美國市場有廣泛影響的宏觀經濟因素。

Second quarter GDP growth for the US came in below expectations. And while projections for performance in the remainder of the year remain somewhat mixed, an increasing number of economists have taken a more conservative views. As has been the case for much of this extended economic recovery signals vary, with consumer spending and job growth both improving, but somewhat offset by declines in corporate profits and spending.

美國第二季GDP成長低於預期。儘管今年剩餘時間經濟表現的預測仍然褒貶不一，但越來越多的經濟學家持更保守的觀點。正如本輪長期經濟復甦的大部分情況一樣，訊號各有不同，消費者支出和就業成長均有所改善，但在一定程度上被企業利潤和支出的下降所抵消。

Although we continue to see strength and opportunity in overall domestic travel, and remain confident in the fundamentals of our hospitality platform, with softer than anticipated RevPAR numbers in July, and the potential for some economic headwinds in the back half of the year, we are tempering our full year RevPAR guidance by 50 basis points. Given the strong operating performance of our hotel properties year-to-date, and the anticipated mix of business and operating fundamentals for the remainder of the year, we do not see a need to adjust EBITDA guidance at this time.

儘管我們繼續看到國內旅遊業整體的強勁增長和機遇，並且對我們的酒店平台的基本面仍然充滿信心，但考慮到 7 月份的 RevPAR 數據低於預期，以及下半年可能出現一些經濟逆風，我們仍將全年 RevPAR 預期下調了 50 個基點。鑑於我們酒店物業今年迄今的強勁營運表現，以及今年剩餘時間預期的業務和營運基本面組合，我們認為目前沒有必要調整 EBITDA 指引。

New construction starts in our markets decreased slightly in the second quarter, approximately 46% of our hotels, and [just say] one or more new upper midscale, upscale, or upper upscale hotels to open within a five-mile radius during the next 18 months. This is down from 50% reported last quarter. Approximately 61% of our hotels had one or more hotels open within a five mile radius over the past 12 months, or anticipate having one or more hotels open during the next 18 months. This is also down 200 basis points from the prior quarter.

我們市場的新開工酒店數量在第二季度略有下降，約有 46% 的酒店，以及未來 18 個月內在五英里半徑範圍內將開設一家或多家新的中高檔、高檔或超高檔酒店。這一數字比上一季報告的 50% 有所下降。在過去 12 個月內，我們約有 61% 的酒店在五英里半徑範圍內開設了一家或多家酒店，或預計在未來 18 個月內開設一家或多家酒店。這也比上一季下降了 200 個基點。

Anecdotally, we continue to hear that financing for new hotel construction is becoming increasingly difficult. And with slower market growth and continued increases in construction costs, we do not see supply as an imminent threat to our business, outside of a select number of high rate traditionally higher barrier to entry markets.

有趣的是，我們不斷聽到新酒店建設的融資變得越來越困難。隨著市場成長放緩和建築成本持續上漲，除了少數傳統上進入門檻較高的高利率市場外，我們並不認為供應會對我們的業務構成迫在眉睫的威脅。

In order to maintain the relevance and competitiveness of our hotel portfolio, we continue to make strategic capital reinvestment. During the six months ended June 30, 2016, the Company invested approximately $29 million in renovations and property improvements. We anticipate spending an additional $20 million to $30 million during the remainder of 2016, with scheduled renovations at approximately 25 hotels for the full year.

為了保持我們酒店組合的相關性和競爭力，我們繼續進行策略資本再投資。截至 2016 年 6 月 30 日的六個月內，該公司投資約 2,900 萬美元用於翻新和物業改善。我們預計 2016 年剩餘時間將額外花費 2,000 萬至 3,000 萬美元，全年計劃對約 25 家酒店進行翻新。

In our experience, consistent reinvestment through well-timed effectively managed projects strengthens the competitiveness and operational stability of our hotels. Our scale ownership with specific Marriott and Hilton brands helps to reduce the cost of major renovation, by increasing our purchasing power, and enabling us to develop process efficiencies. With an average effective age of four years, we firmly believe our hotels are well-positioned to be competitive within their local market.

根據我們的經驗，透過適時有效管理的專案進行持續的再投資可以增強我們酒店的競爭力和營運穩定性。我們對特定萬豪和希爾頓品牌的規模所有權有助於降低大規模翻修的成本，提高我們的購買力，並使我們能夠提高流程效率。我們的酒店平均營運年資為四年，我們堅信，我們的酒店在當地市場具有良好的競爭力。

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 share holder value. We ended the quarter with outstanding debt at 3 times trailing 12 month adjusted EBITDA. With approximately $480 million available on our existing unsecured credit facilities, we have the financial flexibility to fund capital requirements, purchase our own stock when appropriate, and pursue opportunities in the marketplace, including the potential merger with Apple REIT Ten.

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，在波動時期為我們提供額外的安全保障，並靈活地採取有意義的行動來提高股東價值。本季末，我們的未償債務為過去 12 個月調整後 EBITDA 的 3 倍。我們現有的無擔保信貸額度約為 4.8 億美元，因此我們擁有足夠的財務靈活性來滿足資本需求、在適當的時候購買自己的股票以及在市場上尋求機會，包括與 Apple REIT Ten 的潛在合併。

Subsequent to the end of the quarter, we closed on the acquisition of the 128 room Home2 Suites by Hilton in Atlanta for $24.6 million. We are pleased to enter the downtown Atlanta market with this hotel, which we believe is well-positioned to benefit from the market's wide variety of demand generators. As we have previously mentioned, we continue to have agreements in place for the potential purchase of three additional hotels, all of which are under construction.

本季結束後，我們以 2,460 萬美元的價格收購了位於亞特蘭大的 128 間客房的希爾頓欣庭套房飯店。我們很高興透過這家酒店進入亞特蘭大市中心市場，我們相信該酒店能夠從市場各種各樣的需求中獲益。正如我們之前提到的，我們繼續就購買另外三家酒店達成協議，這些酒店都在建設中。

Assuming closing conditions are satisfied, we will acquire the hotels upon completion over the next 12 months. We continue to make progress towards closing on the merger with Apple REIT Ten. The voting process is currently underway, and the required shareholder meetings are scheduled for August 31. We remain excited by both the strategic and financial merits of the potential merger, and assuming the necessary shareholder approvals and satisfaction of other closing conditions are met, we anticipate completing the transaction in early September.

假設成交條件得到滿足，我們將在未來 12 個月內收購這些飯店。我們在完成與 Apple REIT Ten 的合併方面繼續取得進展。投票程序目前正在進行中，所需的股東大會定於 8 月 31 日舉行。我們對潛在合併的策略和財務價值仍然感到興奮，並且假設獲得必要的股東批准並滿足其他成交條件，我們預計將於 9 月初完成交易。

As we have outlined before, the Apple REIT Ten portfolio complements our existing hospitality platform, strengthens our presence in key markets, and expands our geographic footprint to include locations in 96 MSAs throughout 33 states. The transaction maintains the strength and flexibility of our balance sheet, highlights our disciplined approach to the allocation of capital and portfolio growth, and would uniquely position us as one of the largest select service hospitality REITs in the industry.

正如我們之前所概述的，Apple REIT Ten 投資組合補充了我們現有的酒店平台，增強了我們在主要市場的影響力，並擴大了我們的地理覆蓋範圍，將我們的業務範圍擴展到 33 個州的 96 個 MSA。這項交易維持了我們資產負債表的實力和靈活性，凸顯了我們對資本配置和投資組合成長的嚴謹態度，並將使我們成為業內最大的精選服務酒店房地產投資信託基金之一。

Because of our timing in the process, we will again be limited in our ability to answer questions on today's call. We encourage you to continue to review our filings, our SEC filings, and investor communications for additional information.

由於我們在過程中的時間安排，我們在今天的電話會議上回答問題的能力將再次受到限制。我們鼓勵您繼續查看我們的文件、美國證券交易委員會 (SEC) 文件和投資者通訊以獲取更多資訊。

Our broad geographic diversification and choice of markets, our decision to focus on the upscale select service and extended stay sector, our exclusive investment in Hilton and Marriott branded hotels, and our decision to maintain a strong flexible balance sheet, all contribute to a strategy designed to reduce volatility and generate strong stable investor returns over time. Having owned hundreds of hotels through multiple cycles spanning over a decade and a half, we continue to assess and fine-tune this strategy to drive performance across our portfolio.

我們廣泛的地理多元化和市場選擇、我們專注於高檔精選服務和長期住宿領域的決定、我們對希爾頓和萬豪品牌酒店的獨家投資以及我們維持強大靈活資產負債表的決定，都有助於我們制定旨在降低波動性並隨著時間的推移為投資者帶來強勁穩定的回報的策略。經過十五年多的多個週期，我們擁有了數百家酒店，我們將繼續評估和微調這項策略，以推動我們整個投資組合的表現。

From the beginning, this economic recovery has been characterized by mixed indicators, which have in hindsight yielded slow industry growth over an extended period, despite limited visibility along the way. Looking forward, we continue to see opportunity. Our asset management team continues to work in collaboration with our managers to adjust business mix, and control operating costs, in order to maximize property level profitability.

從一開始，本輪經濟復甦就呈現出好壞參半的特徵，儘管復甦過程中的可預見性有限，但事後看來，產業成長在較長時期內依然緩慢。展望未來，我們繼續看到機會。我們的資產管理團隊繼續與我們的管理人員合作，調整業務組合，控制營運成本，以最大限度地提高物業層面的獲利能力。

Our concentrated ownership of specific select service and extended stay brands, provides us with unparalleled access to performance benchmarking data. This combined with purchasing power enhanced by scale, enables us to consistently produce industry-leading operating margin.

我們對特定精選服務和長期住宿品牌的集中所有權，為我們提供了無與倫比的性能基準數據存取權。再加上規模化增強的購買力，我們能夠持續創造業界領先的營業利益率。

It is now my pleasure to turn the call over to Krissy, who will provide additional detail regarding performance across our markets, and the industry overall.

現在我很高興將電話轉給 Krissy，她將提供有關我們各個市場以及整個行業表現的更多詳細資訊。

Thank you. We are very pleased with our second quarter performance.

謝謝。我們對第二季的表現非常滿意。

As Justin mentioned, our comparable RevPAR grew 5.1%, with a slight increase in occupancy and an average rate growth of 4.7%. With our geographically diversified portfolio, only seven markets had an EBITDA contribution greater than 3%, of those, Los Angeles, Nashville and Dallas were our strongest performers. Even after the Porter Ranch gas leak business left the market in May, RevPAR growth at our Los Angeles area hotels remained solid. Our San Diego and Seattle hotels had modest growth, impacted somewhat by new supply, although the demand outlook for San Diego is improved in the third quarter with stronger group base.

正如賈斯汀所提到的，我們的可比 RevPAR 成長了 5.1%，入住率略有增加，平均房價成長了 4.7%。憑藉我們地理多元化的投資組合，只有七個市場的 EBITDA 貢獻超過 3%，其中洛杉磯、納許維爾和達拉斯表現最為強勁。即使在波特牧場天然氣洩漏事件於 5 月退出市場之後，我們洛杉磯地區酒店的 RevPAR 成長依然保持穩健。我們的聖地牙哥和西雅圖飯店實現了適度成長，在一定程度上受到新供應的影響，儘管聖地牙哥的需求前景在第三季有所改善，並且集團基礎更加強大。

Of note, our Phoenix and Tucson, Arizona markets continue to outperform, with fast-growing economies featuring diverse business and leisure demand generators. With over 80 different MSAs in our portfolio, performance has varied widely. For some perspective, 78% of our hotels had positive RevPAR growth, with 42% achieving RevPAR growth greater than 5%. 22% of our hotels experienced RevPAR declines, with just 8% declining more than 5%.

值得注意的是，我們的亞利桑那州鳳凰城和圖森市場持續表現出色，快速成長的經濟體擁有多樣化的商業和休閒需求驅動力。我們的產品組合中有超過 80 種不同的 MSA，其性能差異很大。從某個角度來看，我們 78% 的飯店實現了 RevPAR 正成長，其中 42% 的飯店實現了 RevPAR 增幅超過 5%。我們有 22% 的飯店經歷了 RevPAR 下降，其中只有 8% 的飯店下降超過 5%。

Our outperforming markets have benefited from healthy demands in the following industries: internet retail, home goods, various technology sectors, healthcare, insurance, aviation, entertainment, and government contractors among others. As for segmentation trends in the quarter, our negotiated account room night mix decreased 130 basis points to 22% as our management teams have been successful in shifting business to the highest rated retail segment in the majority of markets.

我們的優異市場得益於以下行業的健康需求：網路零售、家居用品、各種技術部門、醫療保健、保險、航空、娛樂和政府承包商等。至於本季的細分趨勢，由於我們的管理團隊已成功將業務轉移到大多數市場中評級最高的零售細分市場，我們的協商帳戶客房夜數組合下降了 130 個基點至 22%。

Although our retail rate growth was modest at 1%, our hotels were able to drive solid rate growth overall by increasing the retail room night mix 230 basis points to one-third of our total room nights, consistent with the year-to-date trend. Group room nights remain stable at 15% of our mix.

儘管我們的零售價格增幅僅為 1%，但我們的飯店仍能透過將零售客房間夜數組合提高 230 個基點至總間夜數的三分之一來推動整體價格的穩健增長，這與年初至今的趨勢一致。團體間夜量維持穩定，佔 15%。

Although it is difficult to determine the net impact to RevPAR from brand member discounts in the quarter, we do believe that new member enrollments are driving some of the retail room night increases, with some small short-term trade down in rate. Helton was the first to roll out member discounts, and while it is still early yet, we are pleased to see channel shift, as our Hilton.com business grew more than our OTA business during the quarter. OTA business representing 8% of our mix still grew, but a more moderate single-digit versus double-digit pace. We along with our brands, feel it is extremely important to promote our direct channels, to improve the customer experience, drive loyalty, and maximize the long-term value of our brands.

雖然很難確定本季品牌會員折扣對 RevPAR 的淨影響，但我們確實認為新會員的加入推動了部分零售客房晚數的增加，同時短期內價格出現小幅下降。 Helton 是第一家推出會員折扣的飯店，雖然現在還為時過早，但我們很高興看到管道的轉變，因為本季我們的 Hilton.com 業務成長超過了我們的 OTA 業務。占我們業務組合 8% 的 OTA 業務仍在成長，但成長速度較溫和，為個位數而非兩位數。我們和我們的品牌都認為推廣我們的直銷管道、改善客戶體驗、提高忠誠度以及最大化我們品牌的長期價值極為重要。

As for recent trends, an already short booking window has compressed even further. We are entering the month with less retail and corporate occupancy on the books, and then seeing pickup in the month for the month in those segments. The uncertainty around transient pickup has prompted some hotels to open up discounts earlier than needed, limiting rate growth.

就最近的趨勢而言，本來就很短的預訂窗口進一步壓縮。進入本月以來，零售和企業入住率有所下降，但本月這些領域的入住率將有所回升。由於臨時接待的不確定性，一些酒店提前推出折扣，從而限制了房價的增長。

Due to the continued wide variability in performance from market to market, our asset management team has been working closely with our management partners to remain aggressive in driving rate in stronger markets, and to adopt more defensive strategies, including layering on more base business as conditions warrant in other markets.

由於各個市場的表現持續存在很大差異，我們的資產管理團隊一直與我們的管理夥伴密切合作，在強勁的市場中保持積極的利率推動力，並採取更多的防禦性策略，包括根據其他市場的條件增加更多的基礎業務。

With the shift of the 4th of July holiday to a Monday, dramatically reducing business travel during that week, July got off to a slow start for our portfolio. In spite of experiencing a sizable RevPAR decline over that week, consistent with upscale industry performance we were able to finish July with flat RevPAR growth.

由於 7 月 4 日假期改至星期一，導致該週的商務旅行大幅減少，7 月我們的投資組合開局緩慢。儘管當週 RevPAR 大幅下滑，但與高端酒店業的表現一致，我們在 7 月仍實現了 RevPAR 平穩成長。

Turning to profitability, comparable hotel adjusted EBITDA margin increased 90 basis points to a strong 41% for the quarter, representing a 57% flow through of total revenues to hotel EBITDA. Our operators did an excellent job managing controllable expenses, with over two-thirds achieving their operating flex flow-through targets, a 6% increase over the prior year. Our asset management team and operators continue to drive industry-leading margins, capitalizing on our highly analytical review of broad benchmarking data, our centrally negotiated and managed programs, and our pull-through of best practices across the platform.

談到獲利能力，本季可比飯店調整後的 EBITDA 利潤率增加了 90 個基點，達到 41%，這意味著總收入中有 57% 流向了飯店 EBITDA。我們的營運商在管理可控費用方面做得非常出色，超過三分之二的營運商實現了營運靈活流通目標，比前一年增加了 6%。我們的資產管理團隊和營運商繼續推動業界領先的利潤率，利用我們對廣泛基準數據的高度分析性審查、我們的集中協商和管理的計劃以及我們在整個平台上的最佳實踐。

I will now turn the call over to Bryan to provide additional details on our financial results.

現在我將把電話轉給布萊恩，讓他提供有關我們財務表現的更多詳細資訊。

Thanks, Krissy, and good morning. As both Justin and Krissy highlighted, we believe our results for the second quarter and year have been very positive.

謝謝，克麗西，早安。正如賈斯汀和克麗絲所強調的那樣，我們相信第二季和今年的業績非常積極。

With solid RevPAR growth, we have been able to increase adjusted EBITDA to $100.5 million and $179.1 million, an increase of almost 12% for the quarter, and over 11% year to date from last year. Modified FFO per share grew to $0.52 for the second quarter, and $0.91 year to date, representing growth of 18% for the second quarter and 17% year to date.

隨著 RevPAR 的穩定成長，我們得以將調整後的 EBITDA 提高到 1.005 億美元和 1.791 億美元，本季成長近 12%，年初至今比去年同期成長超過 11%。第二季每股調整後 FFO 成長至 0.52 美元，年初至今成長至 0.91 美元，第二季成長 18%，年初至今成長 17%。

At the end of June, the Company had approximately $1 billion of outstanding debt, with a current combined weighted average interest rate of 3.5% for the remainder of the year. Excluding debt issuance costs and fair value adjustments on acquired debt, our debt is comprised of $400 million in property level debt, and $631 million outstanding on our $1.1 billion of unsecured credit facilities. Our outstanding debt net of cash on hand is approximately 3 times trailing 12 months adjusted EBITDA, and 23% of enterprise value at the end of the quarter.

截至 6 月底，該公司未償還債務約 10 億美元，今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 億美元的房地產債務，以及 11 億美元無擔保信貸額度中 6.31 億美元的未償債務。我們的未償債務扣除現金後約為過去 12 個月調整後 EBITDA 的 3 倍，佔本季末企業價值的 23%。

Although we intend to continue to utilize traditional long-term mortgage debt as a means of diversifying our capital structure, reducing a portion of this component provides us an opportunity to improve pricing and flexibility. With this in mind, we continued to reduce our secured mortgage debt during the first six months of the year by repaying eight mortgage loans totaling $82 million, with an average interest rate of 5.3%. We anticipate extinguishing another 10 secured loans, with an average rate of approximately 6% by the end of the year.

儘管我們打算繼續利用傳統的長期抵押債務作為資本結構多樣化的手段，但減少這一部分為我們提供了改善定價和靈活性的機會。考慮到這一點，我們在今年上半年繼續減少抵押貸款債務，償還了八筆抵押貸款，總額達 8,200 萬美元，平均利率為 5.3%。我們預計到今年年底將再償還 10 筆擔保貸款，平均利率約為 6%。

During the second 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 a 6% yield, based on our August 5 closing price of $20.10.

第二季度，該公司支付了每股 0.30 美元的分配。我們的董事會已授權每月定期分配每股 0.10 美元的現金。根據我們 8 月 5 日的收盤價 20.10 美元計算，每股普通股年化收益 1.20 美元，相當於 6% 的收益率。

We provided 2016 guidance in our earnings release, based on our current view of both operating and economic fundamentals of the Company's existing portfolios hotels and hotels under contract, except for those related to Apple Ten. Our guidance 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 performance year to date, and our visibility into business drivers for the remainder of the year, we reaffirmed our anticipated adjusted EBITDA of $340 million to $360 million for the full year of 2016, and slightly reduced our anticipated comparable hotels RevPAR growth to 3% to 5%.

我們在收益報告中提供了 2016 年的指導，該指導基於我們對公司現有投資組合酒店和簽約酒店（與 Apple Ten 相關的酒店除外）的運營和經濟基本面的當前看法。我們的指導並未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業績以及對今年剩餘時間業務驅動因素的預見性，我們重申 2016 年全年預計的調整後 EBITDA 為 3.4 億美元至 3.6 億美元，並將可比酒店 RevPAR 增幅略微下調至 3% 至 5%。

Although we have reduced the low and high end of our anticipated RevPAR growth, due to overall industry moderation in recent months and broad economic uncertainty, we do believe we will continue to be able to improve operating margins as we have demonstrated in the first six months of the year. Our guidance assumes we will be able to continue to offset pressure from property tax increases, labor initiatives, and comparable third quarter 2015 one-time benefits from recoveries related to the BP oil settlement, with among other anticipated benefits, favorable energy costs, rate-driven revenue growth and mix management.

儘管由於近幾個月來整個行業放緩以及廣泛的經濟不確定性，我們降低了預期 RevPAR 成長的低端和高端，但我們確實相信，我們將繼續能夠提高營業利潤率，正如我們在今年前六個月所表現的那樣。我們的指導假設我們將能夠繼續抵消來自財產稅增加、勞工計劃和 2015 年第三季度與 BP 石油和解相關的恢復所帶來的一次性收益的壓力，其中包括有利的能源成本、利率驅動的收入增長和組合管理等預期收益。

As Justin mentioned, the shareholder meetings for Apple Hospitality and Apple Ten necessary for the proposed merger of the companies are scheduled for August 31. If the merger is completed, we would plan on updating our guidance at that time.

正如賈斯汀所提到的，Apple Hospitality 和 Apple Ten 擬議合併所需的股東大會定於 8 月 31 日舉行。如果合併完成，我們計劃屆時將更新我們的指引。

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

感謝您今天上午加入我們。我們現在開始回答問題。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Ryan Meliker, Canaccord Genuity.

Canaccord Genuity 的 Ryan Meliker。

Hey, good morning, guys. I just had one here, just trying to understand how you guys are thinking about -- I guess, a little more color on guidance. Obviously, as you mentioned, you don't have a lot of visibility. Your booking window has even narrowed. Given that dynamic, and the fact that the big brands, not to mention all the other REITs, cut guidance on the top line more than you guys did, at 50 basis points, what gives you confidence that you're going to be able to maintain that 3% to 5% RevPAR growth? I know the first half has been pretty strong, and your markets seemed to be holding up better than most, but just any color on what gives you guys confidence that you're not going to see the fall-off that the brands, and the C corps, and a lot of other REITs are expecting in the back half of the year?

嘿，大家早安。我剛剛在這裡，只是想了解你們是怎麼想的——我想，在指導上多一點色彩。顯然，正如您所說，您的知名度並不高。您的預訂窗口甚至已經縮小。考慮到這種動態，以及大品牌（更不用說所有其他房地產投資信託基金）將營業收入預期下調了 50 個基點的事實，比你們的下調幅度更大，是什麼讓您有信心能夠保持 3% 至 5% 的 RevPAR 增長？我知道上半年表現相當強勁，你們的市場似乎比大多數市場表現得更好，但是是什麼讓你們有信心相信你們不會看到品牌、C 公司和許多其他房地產投資信託基金在下半年預期的下滑？

Good morning, Ryan, good question. Generally speaking, our guidance is in line with our performance, relative to industry year to date. And so, I'm not confident that we're seeing anything different from what the brands are seeing. We have a very large diversified portfolio, which is somewhat representative of the industry as a whole, but not perfectly. And because of the differences in our portfolio, we see opportunity to continue to perform relative to the industry as we have through the first half. Because we only give annual guidance, we benefit on an annual basis from the outperformance we've already achieved year to date as well.

早安，Ryan，這個問題問得好。整體而言，相對於今年迄今的產業表現，我們的指導與我們的表現一致。因此，我不確定我們看到的與品牌看到的不同之處。我們擁有非常龐大的多元化投資組合，這在一定程度上代表了整個產業，但並非完美。由於我們投資組合的差異，我們看到了繼續表現優於行業的機會，就像上半年一樣。因為我們只提供年度指導，所以我們每年都會從今年迄今為止已經取得的優異表現中受益。

No, that's helpful. I guess, as a follow-up then, when you think about your outperformance year to date, what do you think is driving that? Is it your markets, is it your diversification, is it your select-service exposure? Is it the fact that you're a little bit more transient oriented, and we've heard a lot of negatives surrounding corporate transient? Are you guys seeing those types of impacts? Help us understand how you guys are outperforming, so we can get a better understanding of how you guys will continue to outperform.

不，這很有幫助。那麼，作為後續問題，當您思考今年迄今為止的優異表現時，您認為是什麼推動了這一表現？這是您的市場嗎？這是您的多樣化嗎？這是您的精選服務曝光嗎？是因為你們更重視流動性，而我們聽過很多有關企業流動性的負面消息？你們看到這些類型的影響了嗎？幫助我們了解你們的表現如何，這樣我們才能更了解你們將如何繼續保持優異表現。

Ryan, it's a great question. So far this year, I think that our diversification has been one of the keys. Also, as you look at our outperformance, the suburban markets have still been outperforming the urban markets. And, for the first part of the year, continuing into the second quarter, we were still able to mix manage. And the retail demand was strong enough, so that we were able to focus on driving that highest rated -- driving more business to the highest-rated retail.

瑞安，這是一個很好的問題。今年到目前為止，我認為多元化是我們的重點之一。此外，從我們的優異表現來看，郊區市場的表現仍然優於城市市場。並且，從今年上半年到第二季度，我們仍然能夠進行混合管理。零售需求足夠強勁，因此我們能夠專注於推動最高評級——為最高評級的零售帶來更多業務。

As we entered the summer months, which are traditionally less business travel focused, we did see the trends change a little bit. So when we were looking at our position on the books, we had less occupancy going on -- less occupancy on the books going into the month, but we have seen decent pickup so far in retail and group, as we move throughout the month.

隨著我們進入夏季，傳統上商務旅行的重點不再是商務旅行，我們確實看到趨勢發生了一些變化。因此，當我們查看帳面上的狀況時，我們發現入住率較低 - 進入本月時帳面上的入住率較低，但隨著整個月的推進，我們已經看到零售和團體業務有不錯的回升。

August, we do -- just to give you a little bit further color, August, we continue to see that consistent pattern, where we've entered the month with less room nights on the books, but our property forecasts are for a pickup in the month for the month, and August looks better than July. September is actually the strongest, and September is a more business travel-oriented month. And we are actually seeing our position on the books being ahead of last year. And with that, our focus, with our asset management teams, is to shift back to what we were doing in the first part of the year, and focus on really driving rate.

八月份，我們確實——只是為了給你更多細節，八月份，我們繼續看到一致的模式，進入這個月，預訂的客房晚數較少，但我們對本月的房地產預測是，八月份的客房晚數將回升，而且八月份看起來比七月份要好。九月實際上是最強勁的，而且九月是一個更注重商務旅行的月份。事實上，我們看到我們的帳面狀況比去年有所改善。因此，我們和資產管理團隊的重點將回到今年上半年的工作，並專注於真正提高利率。

And, as I mentioned, I think our operators have gotten a little bit nervous as they've seen less occupancy on the books, and they are opening up discounts a little sooner than they really need to in some of these strong markets. So our asset management teams are working with our operators to make sure that they're not overreacting, and maximizing rate as much as they can. Because part of our strength from the first part of the year has really been our ability to drive that rate and maintain occupancy as much as possible.

而且，正如我所提到的，我認為我們的運營商已經有點緊張，因為他們看到賬面上的入住率下降，而且他們在一些強勁的市場中推出的折扣比實際需要的要早一些。因此，我們的資產管理團隊正在與我們的營運商合作，以確保他們不會反應過度，並盡可能地提高費率。因為從今年上半年開始，我們的優勢就在於我們有能力提高入住率並盡可能維持入住率。

Got you. So that's helpful. So it sounds, Kelly, it sounds like, in general, that you guys are holding on to pretty strong corporate transient demand. I'm not seeing the fall-off in that dynamic that we've heard from other -- from some of your peers. And, at the same front, you're actually having some success driving rate. You think any of that has to do with your select-service orientation, and the fact that you guys are a mid-tier price point, that is a nice trade-down from some of the higher-end properties?

明白了。這很有幫助。凱利，聽起來，總的來說，你們正在保持相當強勁的企業瞬時需求。我並沒有看到我們從其他人——你們的一些同行——那裡聽到的這種動態的減弱。而且，同時，您實際上在提高速度方面取得了一些成功。您認為這與您的精選服務導向有關嗎？事實上，您的飯店屬於中等價位，與一些高端飯店相比，這是一種不錯的折衷嗎？

Our product definitely has broad consumer appeal, and that continues to be the case. I wouldn't -- just to clarify, wouldn't classify that corporate demand as being strong. It's still soft, and soft as -- we continue to see that it's soft. It is softening a little bit more in more markets than it had in the first part of the year. But when we're in those stronger business travel months, we think there is still additional business travel demand to choose from, and to mix manage. So when we've entered into the summer months, there's a little bit less than that.

我們的產品確實具有廣泛的消費者吸引力，而且這種情況仍然持續。我不會——只是澄清一下，不會將企業需求歸類為強勁。它仍然很柔軟，而且柔軟——我們繼續看到它很柔軟。與今年上半年相比，更多市場的疲軟程度加劇。但是，當我們處於商務旅行較為旺盛的月份時，​​我們認為仍然有額外的商務旅行需求可供選擇並進行混合管理。因此，當我們進入夏季時，情況會稍微好一些。

But, yes, we do feel that we are in the right product. We do feel that, in looking across all of our markets, there are still many markets that are performing very well. And the markets that aren't performing well, clearly oil and gas is not performing, there are -- Austin is a market that we continue to watch. We had a great year last year, in the second and third quarter in Austin.

但是，是的，我們確實覺得我們生產的產品是正確的。我們確實感覺到，縱觀我們所有的市場，仍然有許多市場表現非常良好。而表現不佳的市場，顯然石油和天然氣市場表現不佳，奧斯汀是我們持續關注的市場。去年我們在奧斯汀度過了美好的一年，第二季和第三季也是如此。

And we actually, I think were up 12% or 13% in the second quarter, and close to 18% in the third quarter of last year, because we had some strong FEMA business, and we had -- we had some strong FEMA business and good corporate base. Now, this year, the FEMA business, we don't have that in house, and there is some softening on the corporate -- the business transient side as we see, absorb some additional new supply as well. Hopefully, I got it (multiple speakers).

事實上，我認為我們在第二季度成長了 12% 或 13%，去年第三季成長了近 18%，因為我們有一些強大的 FEMA 業務，而且我們 - 我們有一些強大的 FEMA 業務和良好的公司基礎。現在，今年，我們內部沒有聯邦緊急事務管理署 (FEMA) 的業務，而且企業方面也有一些疲軟——我們看到業務瞬態方面也吸收了一些額外的新供應。希望我明白了（多位發言者）。

And it's really tended to be industry specific. So it's easy to draw a broad conclusion. But what we've seen, and Krissy highlighted, is that there are number of industries that continue to produce strong demand, and our markets that are more heavily dependent on those industries are performing very well. There's been some imbalance in business trends and demand, with certain industries being more negatively impacted than others.

而且它確實傾向於特定於行業。因此很容易得出一個廣泛的結論。但我們看到，正如克麗西所強調的那樣，許多行業繼續產生強勁的需求，而我們那些更依賴這些行業的市場表現非常良好。商業趨勢和需求存在一些不平衡，某些行業受到的負面影響比其他行業更大。

Great, that's really helpful color. Thanks, guys.

太棒了，這顏色真的很有幫助。謝謝大家。

David Loeb, Baird.

大衛‧勒布，貝爾德。

Justin, Krissy, sorry to beat a dead horse, but just to follow up on Ryan's question. I guess, I'm particularly -- I guess, concerned is too strong of a word, but a little confused. I get that your operators are opening the discount channels a little earlier than you need. But what gives you the confidence that you will be able to actually have ADR-led RevPAR in this slower transient environment in the second half?

賈斯汀、克莉絲，很抱歉說了這麼多，只是想繼續回答瑞恩的問題。我想，我特別——我想，「擔心」這個詞太強烈了，但我有點困惑。我了解到您的運營商比您需要的更早開放折扣管道。但是，是什麼讓您有信心在下半年在這種較慢的瞬態環境中能夠真正實現由 ADR 主導的 RevPAR？

Part of it goes back to my comments on September. As we enter back into those stronger business travel months, we're already seeing our position on the books improve, stronger demand in retail rate, stronger rate on the books. And, from a macro standpoint, we'll have to see in terms of what happens with GDP and the general economy. But we are seeing it improve trends as we look into September.

其中一部分可以追溯到我九月的評論。隨著我們重新進入商務旅行旺盛的月份，我們已經看到我們的帳面地位有所改善，零售價格需求更強勁，帳面價格也更強勁。而且，從宏觀角度來看，我們必須觀察 GDP 和整體經濟的情況。但當我們展望九月時，我們看到趨勢正在改善。

Okay. And how about October, do the Jewish holiday shifts have much of an impact on your smaller market, urban and suburban assets?

好的。那麼十月的情況如何呢？猶太節日的變化會對您的小市場、城市和郊區資產產生很大影響嗎？

Much less of an impact on -- there have been some impact, but much less of an impact on our smaller market suburban assets. And just to give you a little bit of perspective, when we go into the month -- and typically right now, in the beginning of August, for example, we have approximately, with our product, 40% of our occupancy on the books. When you look out 30 days out, then we have 20% of our occupancy on the books. And another 30 days out, that's 10% of occupancy on our books. So when we're forecasting, we're forecasting over the next 90 days, with less reliance each 30 days that you go out.

影響要小得多——雖然有一些影響，但對我們較小市場郊區資產的影響要小得多。只是為了給你一點了解，當我們進入這個月時 - 通常是現在，例如 8 月初，我們的產品大約有 40％ 的入住率。如果展望 30 天后，我們的入住率將達到 20%。再過 30 天，我們的入住率將達到 10%。因此，當我們進行預測時，我們會預測未來 90 天的情況，並且每 30 天的預測依賴性就會降低。

And so, we're looking at trends in terms of position on the books, where rate is, our revenue management systems, those are being constantly tweaked and looked at, because the booking window has shortened. So the revenue management systems need to look -- they always look at history from the previous year, but they need to be tweaked off. So understand that the transient pickup has become -- the booking window has become shorter. So our visibility is the next 90 days, plus we are layering in overall macro assumptions as we know it.

因此，我們正在關注帳面位置的趨勢、利率、我們的收入管理系統，這些都在不斷地進行調整和審查，因為預訂窗口已經縮短了。因此，收入管理系統需要審視——它們總是回顧前一年的歷史，但需要進行調整。因此，請理解臨時接送已經變得——預訂窗口已經變短了。因此，我們的可預見性是未來 90 天，此外，我們還將分層考慮我們所知的整體宏觀假設。

Okay, that makes a lot of sense. Justin, I fear you can't answer much about this, given the Apple Ten shareholder vote coming up. But can you comment a little bit about your thoughts about further industry consolidation, and what your appetite would be to look to acquire additional single assets or portfolios?

好的，這很有道理。賈斯汀，鑑於 Apple Ten 股東投票即將到來，恐怕你無法回答太多這個問題。但是，您能否稍微評論一下您對進一步行業整合的看法，以及您希望收購更多單一資產或投資組合的興趣？

Certainly. We've commented on this in most of our calls, and are regularly asked about it, as we meet with investors on the road. The Apple Ten transaction is unique in that it preserves and actually increases the size and strength of our balance sheet. And because we are already the managers of the portfolio, the integration of that portfolio with our current portfolio, we anticipate to be seamless. And so, in terms of our positioning and capacity to pursue other opportunities, we're, I think, exceptionally well positioned to pursue opportunities that might present themselves.

當然。我們在大多數電話會議中都對此進行了評論，並且在與投資者會面時也經常被問及此事。 Apple Ten 交易的獨特之處在於它保留並實際上增加了我們資產負債表的規模和實力。而且由於我們已經是該投資組合的管理者，我們預期該投資組合與我們現有投資組合的整合將是無縫的。因此，就我們的定位和尋求其他機會的能力而言，我認為，我們非常有能力去尋求可能出現的機會。

That being said, as we continue to explore opportunities in the industry, we've seen consistently -- and this has been highlighted by a number of our peers in prior calls -- a significant bid/ask spread. So, seller expectations continue to be very high, both on individual assets and on larger portfolios. As we look forward, the largest impediment to us pursuing acquisitions in scale is likely that. That being said, we continue to have interactions with owners of portfolios and individual assets. And we'll act when we feel opportunities are right for us strategically, and where we feel we can -- that the transaction will be accretive for our existing shareholders.

話雖如此，隨著我們繼續探索行業機遇，我們不斷看到——這一點在之前的電話會議中已被我們的許多同行強調——顯著的買賣價差。因此，賣方對單一資產和較大投資組合的期望仍然很高。展望未來，我們進行大規模收購的最大障礙可能是：話雖如此，我們仍繼續與投資組合和個人資產的所有者互動。當我們覺得機會在策略上適合我們時，我們就會採取行動——交易將為我們現有的股東帶來增值。

I've highlighted this in past calls, but we're a very large company. In our current state, following the transaction with Apple REIT Ten, we'll be an even larger company. We operate extremely efficiently and don't have a mandate, as we see it, to grow for growth's sake. I think you can anticipate we will continue to be very strategic as we pursue opportunities that will grow and enhance the value of our portfolio overall. And, absent those opportunities, we'll continue to manage the portfolio we have to achieve greater efficiency.

我在過去的電話會議中強調過這一點，但我們是一家非常大的公司。就我們目前的情況來看，在與 Apple REIT Ten 進行交易之後，我們的公司規模將會更大。我們的營運極為高效，而且我們認為，我們並沒有被要求為了成長而成長。我想您可以預料到，我們將繼續保持高度的策略性，尋求能夠增加和提高我們整體投資組合價值的機會。即使沒有這些機會，我們也會繼續管理我們的投資組合，以實現更高的效率。

Great. Thank you for that.

偉大的。謝謝你。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Bryan Maher, FBR.

布萊恩·馬赫（Bryan Maher），FBR。

Good morning, guys.

大家早安。

Good morning.

早安.

Just to clarify on one of Ryan's 17 questions (laughter) -- and he hit on several of mine -- I don't think it's proper to characterize all other companies as having cut guidance, because two other outperformers that play in your space -- HBT and Ashford Trust -- don't guide. So it's not fair, in my view. But, more succinctly, do you get the sense that corporate transient is in any way or at any level trading down to the upscale select-service product, from the full-service urban product?

只是為了澄清 Ryan 的 17 個問題中的一個（笑聲）——他回答了我的幾個問題——我認為將所有其他公司都描述為削減指導是不恰當的，因為您所在領域的另外兩家表現優異的公司——HBT 和 Ashford Trust——沒有提供指導。所以在我看來，這是不公平的。但是，更簡潔地說，您是否感覺到企業流動人口正在以任何方式或在任何層面上從全方位服務的城市產品轉向高檔的精選服務產品？

Overall, it's hard to measure that. What we can say is that we have heard anecdotally that there it's -- companies are looking to cut back. They're asking their -- excuse me, their employees to look at, either narrowing the focus of the number -- there are cases where they're narrowing the focus of the number of hotels that they're booking in, in which case then we would benefit, because we would be in that upscale segment, versus the higher-dollar upper-upscale hotels.

總體而言，這很難衡量。我們可以說的是，我們聽到一些傳聞稱，公司正在考慮削減開支。他們要求他們的——對不起，他們的員工看看，要么縮小數量的重點——有些情況下，他們會縮小預訂酒店數量的重點，在這種情況下，我們會受益，因為我們將處於高檔市場，而不是價格更高的高檔酒店。

But it's too early to say yet that we have seen that measurable amount of that. But, anecdotally, we have heard that they're out there. There are opportunities where the -- that we can be a part of a narrower group of hotels.

但現在說我們已經看到了可衡量的程度還為時過早。但據傳聞，我們聽說它們確實存在。我們有機會成為一小部分酒店集團的一部分。

And when those companies are guiding their employees to move in a certain direction, do you get the sense that they're asking to trade down a segment, or into a different segment, or into a branded product versus maybe a boutique hotel, or some combination of the two of those things?

當這些公司引導員工朝著某個方向發展時，你是否感覺到他們要求員工降低某個細分市場的消費水平，或者進入另一個細分市場，或者選擇品牌產品而不是精品酒店，或者兩者兼而有之？

I've not heard anything about going from a branded to boutique hotels or vice versa. And I think, really, it's more towards the rates that are being charged. And, in some cases, as we've spoken about before, it really depends on the market, because in some cases we are higher positioned rate-wise in the market, than some of the full-service hotels. In other markets, where the full-service hotels are higher priced, then we're going to be perceived as more of a value play.

我還沒有聽說過從品牌酒店轉變為精品酒店或反之亦然。我認為，實際上，這更多的是與收取的費率有關。而且，在某些情況下，正如我們之前談到的，這確實取決於市場，因為在某些情況下，我們在市場上的價格定位比一些全方位服務酒店更高。在其他市場，全方位服務酒店的價格更高，因此我們將被視為更有價值的酒店。

And it's important to understand that there has been much made of the, quote-unquote, slowdown in corporate transient. On an absolute basis, there is still a tremendous amount of corporate demand. And we haven't seen, outside of a few specific industries, massive cutbacks and massive adjustments to travel planning that we've seen in past cycles. When that happens, our portfolio -- we anticipate our portfolio will benefit, because of the relative value proposition. The majority of our hotels offer either free or relatively inexpensive breakfast options. Some of them offer light-dining options in the evening as well. And the value proposition for select-service hotels tends to be a better value proposition than other segments.

重要的是要理解，企業流動性放緩已經造成了很大影響。從絕對量來看，企業需求仍然龐大。除了少數特定行業外，我們還沒有看到過去週期中出現的大規模削減和旅行計劃的大規模調整。當這種情況發生時，我們的投資組合——我們預計我們的投資組合將會受益，因為相對的價值主張。我們的大多數飯店都提供免費或相對便宜的早餐選擇。有些餐廳晚上還提供簡餐。精選服務酒店的價值主張往往比其他細分市場的價值主張更好。

Really, before that happens -- a major tradedown -- we see something more dramatic, in terms of a shift in consumer demand that has yet to really materialize. What we've seen so far, in most of our markets that are struggling -- so outside of energy markets and a few markets that are dependent on financial services, that is probably where we've seen some of the biggest hits -- is just a tempering of demand, one or two fewer nights at our hotels, which are mostly 100 to 150 rooms from a particular client. Not the major cutbacks that we saw in the last recessionary period, which drove massive rethinking in terms of business travel.

事實上，在發生這種情況（大規模降價）之前，我們會看到更戲劇性的事情，即消費者需求的轉變尚未真正實現。到目前為止，我們看到，在大多數陷入困境的市場中（除了能源市場和一些依賴金融服務的市場之外，這些市場可能是我們所看到的受打擊最大的市場），需求只是有所緩和，我們的酒店的入住晚數減少了一到兩個，而我們的酒店大多為特定客戶提供 100 至 150 間客房。這不是我們在上次經濟衰退時期看到的大規模削減，那次經濟衰退引發了人們對商務旅行的大規模反思。

Okay, great. Thanks, that's helpful.

好的，太好了。謝謝，這很有幫助。

There are no further questions in queue. I would like to hand the call back over to Justin Knight for closing comments.

隊列中沒有其他問題。我想將電話轉回給賈斯汀奈特 (Justin Knight) 來做最後發言。

Thank you for joining us this morning. Overall, we're pleased with our performance of our hotels during the first six months of 2016, and we believe we're well positioned for the remainder of the year. We hope that, as you travel with us, you will take opportunity to stay with us in our hotels. And I hope you have a great week.

感謝您今天上午加入我們。總體而言，我們對 2016 年上半年飯店的表現感到滿意，並相信我們在今年剩餘時間內表現良好。我們希望，當您與我們一起旅行時，您能有機會入住我們的酒店。祝您有個愉快的一周。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time. And have a wonderful day.

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