Apple Hospitality REIT Inc (APLE) 2016 Q3 法說會逐字稿

Greetings and welcome to Apple Hospitality REIT's third-quarter 2016 earnings conference call.

歡迎參加 Apple Hospitality REIT 2016 年第三季財報電話會議。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

I would now like to turn the conference over to your host, Miss Kelly Clarke, Vice President of Investor Relations. Thank you, you may begin.

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女士。謝謝，你可以開始了。

Thank you. Good morning and welcome to Apple Hospitality REIT's third-quarter 2016 earnings call on this, the 8th day of November, 2016. Today's call will be based on the third-quarter 2016 earnings release which was distributed yesterday afternoon.

謝謝。早安，歡迎參加 2016 年 11 月 8 日 Apple Hospitality REIT 的 2016 年第三季財報電話會議。今天的電話會議將基於昨天下午發布的 2016 年第三季財報。

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.

我想提醒大家，今天的電話會議將包含聯邦證券法定義的前瞻性陳述，包括有關未來營運績效的陳述。這些聲明涉及已知和未知的風險和其他因素，可能導致 Apple Hospitality 的實際結果、業績或成就與此類前瞻性聲明表達或暗示的未來結果、業績或成就有重大差異。

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

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 年第三季 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 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 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 third quarter of 2016 and an outlook for the sector and for the Company.

今天上午，我們的總裁兼執行長賈斯汀奈特 (Justin Knight)；我們的營運長 Krissy Gathright 和財務長 Bryan Peery 將概述我們 2016 年第三季的業績以及產業和公司的前景。

Following the overview we will have a question and answer session. It is now my pleasure to turn the call over to Justin.

概述之後，我們將進行問答環節。現在我很高興將電話轉給賈斯汀。

Thank you, Kelly. Good morning and welcome to Apple Hospitality REIT's third-quarter 2016 earnings call. And thank you for joining us on election day. There has undoubtedly been some turbulence surrounding this year's elections and a host of other national and global events which have prevented a backdrop of heightened uncertainty for the broad economy and financial market.

謝謝你，凱利。早安，歡迎參加 Apple Hospitality REIT 2016 年第三季財報電話會議。感謝您在選舉日加入我們。毫無疑問，今年的選舉和一系列其他國家及全球事件引發了一些動盪，導致整體經濟和金融市場不確定性加劇。

Despite these challenges, economic indicators, although mixed at times, continue to signal slow but steady growth as has been the case for much of this extended economic recovery. That said, we continue to see strength and opportunity in our overall domestic -- in the overall domestic travel [market] and remain confident in the fundamentals of our hospitality platform. Our broad geographic diversification and choice of markets, our focus on the upscale select service and extended stay sector, our exclusive investment in Hilton and Marriott branded hotels, our ongoing reinvestment in the quality of our hotels and our strong, flexible balance sheet all contribute to a strategy designed to reduce volatility and generate strong, stable investor returns over time.

儘管面臨這些挑戰，經濟指標雖然有時好壞參半，但仍顯示出緩慢而穩定的成長，就像本輪長期經濟復甦的大部分情況一樣。話雖如此，我們仍然看到整體國內旅遊市場的優勢和機遇，並對我們的酒店平台的基本面充滿信心。我們廣泛的地理多元化和市場選擇、我們對高檔精選服務和長期住宿領域的關注、我們對希爾頓和萬豪品牌酒店的獨家投資、我們對酒店質量的持續再投資以及我們強大而靈活的資產負債表，都有助於製定旨在降低波動性並隨著時間的推移為投資者帶來強勁而穩定的回報的戰略。

Turning to the quarter, July RevPAR for the combined portfolio was flat to last year, however growth in August and September allowed us to achieve an increase in comparable hotels RevPAR of 1.5% and bright year-to-date comparable hotels RevPAR growth through September to 3%. While we have not adjusted our 2016 RevPAR guidance, we feel most comfortable with our ability to achieve annual growth at, or slightly below, the midpoint of that range absent a reacceleration in business transient post-election and prior to the end of the year.

回顧本季度，7 月份合併後酒店組合的 RevPAR 與去年持平，但 8 月和 9 月的增長使我們實現了可比酒店 RevPAR 增長 1.5%，並且截至 9 月，年初至今可比酒店 RevPAR 增長強勁，達到 3%。雖然我們尚未調整 2016 年 RevPAR 指導，但我們對實現年增長率的能力感到最為自信，因為在選舉後和年底之前，業務不會出現再次加速的現象，而年增長率能夠達到或略低於該範圍的中點。

Our portfolio of hotels achieved growth and adjusted EBITDA of 14.9% during the third quarter of this year and 12.5% year-to-date through September, consistent with our expectations and in line with our previously provided guidance. We're pleased to have completed the Apple REIT Ten merger on September 1st, strengthening our position as one of the largest upscale, select service focused lodging REITs. The merger added 56 hotels to our portfolio, expanding our geographic footprint and significantly growing our platform while maintaining the strength of our balance sheet.

我們的飯店組合在今年第三季實現了成長，調整後 EBITDA 為 14.9%，截至 9 月的年初至今實現了 12.5% 的成長，這與我們的預期一致，也符合我們先前提供的指引。我們很高興於 9 月 1 日完成了 Apple REIT Ten 合併，鞏固了我們作為最大的高檔、精選服務住宿房地產投資信託基金之一的地位。此次合併使我們的酒店組合增加了 56 家，擴大了我們的地理覆蓋範圍，並顯著擴展了我們的平台，同時保持了我們資產負債表的強勁。

We continually monitor the profitability of our hotels, market conditions and capital requirements and strive to maximize shareholder value by refining our portfolio and investing in properties that we believe provide superior value over the long-term. During the third quarter this year, we acquired a newly constructed 128-room Home2 Suites by Hilton Hotel in Atlanta Georgia for a purchase price of approximately $25 million. Subsequent to the end of the third quarter in October 2016, we entered into a contract for the potential purpose of a 210-room Hampton Inn and Suites to be constructed in downtown Phoenix, Arizona, for a gross purchase price of $44 million.

我們持續監控飯店的獲利能力、市場狀況和資本需求，並努力透過優化投資組合和投資我們認為能夠長期提供卓越價值的物業來最大化股東價值。今年第三季度，我們以約 2500 萬美元的價格收購了位於喬治亞州亞特蘭大的一家新建的擁有 128 間客房的希爾頓欣庭套房酒店。 2016 年 10 月第三季結束後，我們簽訂了一項合同，計劃在亞利桑那州鳳凰城市中心建造一座擁有 210 間客房的漢普頓酒店及套房，總購買價為 4400 萬美元。

This potential acquisition brings the total number of hotels currently under contract for purchase to four. To further refine our focus on the select service and extended stay segment of the industry, we identified two of our full-service properties for potential sale. The 224-room Hilton Hotel in Dallas, Texas, and the 226-room Marriott Hotel in Chesapeake, Virginia, and entered into separate contracts for the sale of these properties for a total combined gross sales price of approximately $66 million. Assuming conditions to closing are met, we anticipate completing each of these sales by the end of the first quarter of 2017.

此次潛在收購使得目前簽訂購買合約的飯店總數達到四家。為了進一步聚焦於精選服務和長期住宿領域，我們確定了兩處可能出售的全方位服務物業。位於德克薩斯州達拉斯的擁有 224 間客房的希爾頓酒店和位於弗吉尼亞州切薩皮克的擁有 226 間客房的萬豪酒店，並分別簽訂了出售這些房產的合同，總售價約為 6600 萬美元。假設成交條件得到滿足，我們預計將在 2017 年第一季末完成每筆銷售。

New construction starts within our markets, while slightly down in the second quarter, increased again in the third quarter. More than 50% of our hotels now anticipate one or more new upper mid-scale or upscale or upper upscale hotels within a 5 mile radius during the next 18 months.

我們市場的新建築開工量雖然在第二季略有下降，但在第三季再次增加。我們超過 50% 的飯店預計在未來 18 個月內在 5 英里半徑範圍內開設一家或多家新的中高檔、高檔或超高檔飯店。

As new supply enters our markets the strategic merits of consistent reinvestment become even more pronounced. Well-timed, effectively managed projects strengthens the competitiveness and operational stability of our hotels. With an average effective age of four years across the portfolio, we firmly believe our hotels are well-positioned to remain competitive within their markets and maintain or grow market share despite an increase in competing hotel inventory.

隨著新供應進入我們的市場，持續再投資的策略優勢變得更加明顯。時機恰當、管理有效的專案增強了我們飯店的競爭力和營運穩定性。整個酒店組合的平均有效年限為四年，我們堅信，儘管競爭酒店庫存增加，但我們的酒店仍處於有利地位，能夠在市場中保持競爭力，並維持或增加市場份額。

During the nine months ended September 30, 2016, the Company invested approximately $42 million in renovations and property improvements. We anticipate spending an additional $20 million during the remainder of 2016, which includes various scheduled renovation projects on approximately 20 properties. Strategic, consistent re-investment in our hotels will continue to be a key component of our operational strategies, leveraging our scale ownership within specific Marriott and Hilton brands to help reduce the cost of major renovations, increase our purchasing power and strengthen our profit [proficiencies].

截至 2016 年 9 月 30 日的九個月期間，該公司投資約 4,200 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 萬美元，其中包括對約 20 處房產進行各種預定的翻新工程。對我們酒店進行策略性、持續性的再投資將繼續成為我們營運策略的關鍵組成部分，利用我們在特定萬豪和希爾頓品牌內的規模所有權，幫助降低重大翻修成本，提高我們的購買力，並增強我們的利潤[能力]。

We continue to believe that the strength of our balance sheet is an important differentiating factor for our Company, providing us with additional security during periods of volatility and the flexibility to act in meaningful ways to enhance shareholder value. We ended the quarter with outstanding debt at three times trailing 12 month adjusted EBITDA. We have financial flexibility to fund capital requirements, purchase our own stock when appropriate and pursue opportunities in the marketplace.

我們始終相信，強勁的資產負債表是我們公司的一個重要的差異化因素，它為我們在市場波動時期提供了額外的保障，並讓我們能夠靈活地採取有意義的行動來提升股東價值。本季末，我們的未償債務為過去 12 個月調整後 EBITDA 的三倍。我們擁有財務彈性，可以為資本需求提供資金，在適當的時候購買自己的股票並在市場上尋求機會。

With 236 hotels, located in 96 MSAs across 33 states, our portfolio is one of the largest, most geographically diverse hospitality platforms in the United States. Given our unparalleled access to performance benchmarking data, our asset management team continues to work in collaboration with our 22 independent management companies to adjust business mix and control operating costs in order to maximize property-level profitability and drive strong operating margins.

我們的投資組合擁有 236 間飯店，分佈在 33 個州的 96 個大都會統計區 (MSA)，是美國規模最大、地理分佈最廣泛的飯店平台之一。憑藉我們無與倫比的績效基準數據存取能力，我們的資產管理團隊繼續與我們的 22 家獨立管理公司合作，調整業務組合併控制營運成本，以最大限度地提高物業層面的盈利能力並實現強勁的營業利潤率。

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，她將提供有關我們整個市場和整個行業表現的更多詳細資訊。

Thank you. As Justin mentioned, comparable hotel RevPAR for the third quarter increased 1.5% with rate growth of 1.7% and a slight decline in occupancy of 0.2% while maintaining a high level of 80%. As we discussed in our prior earnings call, we started off the quarter with flat RevPAR growth due to a shift in the 4th of July holiday. Comparable hotel RevPAR growth improved to 2.3% in August and similarly by 2.2% in September.

謝謝。正如賈斯汀所提到的，第三季同店可比飯店RevPAR成長1.5%，房價成長1.7%，入住率略有下降0.2%，但仍維持在80%的高水準。正如我們在先前的收益電話會議上所討論的那樣，由於 7 月 4 日假期的轉變，本季初我們的 RevPAR 增長持平。 8 月可比飯店 RevPAR 成長率提高至 2.3%，9 月同樣提高至 2.2%。

We had anticipated September to have the strongest RevPAR growth but we did experience some negative impact from tropical storm Hermine in our Southeast hotels over Labor Day weekend, combined with transient bookings actualizing a little lower than expected. Our geographically diversified select-service concentrated portfolio did not materially benefit from the shift in the Jewish holidays in September, just as we did not experience a material negative impact in October.

我們原本預期 9 月的 RevPAR 成長最為強勁，但在勞動節週末，熱帶風暴 Hermine 對我們東南部的飯店造成了一些負面影響，而且實際的臨時預訂量也略低於預期。我們地理多元化的精選服務集中投資組合併未因 9 月猶太節日的轉變而獲得實質好處，正如我們在 10 月沒有受到實質負面影響一樣。

We finished the month with comparable hotel RevPAR growth around 2% consistent with the growth in the past few months. There continues to be wide variability in the performance of our market with 33% of our hotels growing RevPAR 5% or more, compared with 37% year-to-date. 19% of our hotels had RevPAR declines greater than 5%, compared to 13% year to date.

本月，同店飯店 RevPAR 成長率約為 2%，與過去幾個月的成長率一致。我們的市場表現依然存在很大差異，33% 的飯店 RevPAR 成長率達到 5% 或更多，而今年迄今這一比例為 37%。我們 19% 的飯店 RevPAR 降幅超過 5%，而今年迄今這一比例為 13%。

Our more significant underperforming markets were Houston, Chicago and Austin. In Austin we faced a tough year-over-year comparison with 15% RevPAR growth in the third quarter of 2015, boosted by flood-related FEMA recovery business. Additional headwinds based in Austin included new supply and softer corporate demand.

我們表現較差的市場是休士頓、芝加哥和奧斯汀。在奧斯汀，我們面臨嚴峻的同比形勢，2015 年第三季度，受洪水相關的聯邦緊急事務管理局 (FEMA) 恢復業務的推動，RevPAR 增長了 15%。奧斯汀面臨的其他不利因素包括新增供應和企業需求疲軟。

Markets with stronger performance included Los Angeles, Washington, DC and Phoenix. For a little more color on segmentation in the quarter, transient room nights decreased approximately 30 basis points and group room nights increased approximately 50 basis points. Transient and group rate grew approximately 1% and 3% respectively.

表現較強的市場包括洛杉磯、華盛頓特區和鳳凰城。為了更詳細地了解本季的細分情況，臨時間夜數減少了約 30 個基點，團體間夜數增加了約 50 個基點。臨時費率和團體費率分別增加約 1% 和 3%。

Our group room night mix remain steady at about 14%. While our corporate negotiated segment mix was down 1.4 percentage points, consistent with our year to date trends, we saw the offset primarily in the other discount segment, instead of the retail segment which had been the trend prior to entering the second half of the year. This limited our rate growth as the average rate in the other discount segment is lower than the retail average rate.

我們的團體客房住宿組合維持穩定在 14% 左右。雖然我們的企業協商細分市場組合下降了 1.4 個百分點，與我們今年迄今為止的趨勢一致，但我們看到抵消主要出現在其他折扣細分市場，而不是進入下半年之前的零售細分市場。這限制了我們的利率成長，因為其他折扣部分的平均利率低於零售平均利率。

As we are on the midst of budget season, we're working with our management companies to target an increase in corporate negotiated and group business through a combination of rate increases and solicitation of additional accounts where warranted. With the continued variability in market performance, we are working closely with our management teams to target revenue management strategies to the unique circumstances in individual markets. Although down for the previous year, adjusted hotel EBITDA margin remains strong at approximately 39% for the quarter and year-to-date.

由於我們正處於預算季節，我們正在與管理公司合作，透過提高利率和在必要時招攬更多帳戶等方式來增加企業協商業務和團體業務。隨著市場表現的持續變化，我們正在與管理團隊密切合作，針對各個市場的獨特情況制定收入管理策略。儘管較上年有所下降，但本季和年初至今調整後的飯店 EBITDA 利潤率仍保持強勁，約 39%。

90 basis points of the year-over-year decline in EBITDA margin is attributable to $1.8 million of settlement proceeds we received in 2015 related to the 2010 BP oil spill and $1.3 million in real estate tax increases. We do expect to offset some of these increases when the outstanding appeals are concluded. Payroll expenses increased 3.4% in the quarter, just slightly up from the year-to-date increase of 3.3%. With continued low unemployment, increasing supply and government initiatives, we are cognizant that maintaining margins in a low RevPAR growth environment will be challenging.

EBITDA 利潤率年減 90 個基點，歸因於我們在 2015 年收到的與 2010 年 BP 漏油事件相關的 180 萬美元和解金以及 130 萬美元的房地產稅增加。我們確實希望在未決上訴結束後抵消部分增加的費用。本季薪資支出成長 3.4%，略高於年初至今 3.3% 的增幅。隨著失業率持續走低、供應增加和政府措施的出台，我們認識到在較低的 RevPAR 成長環境中維持利潤率將是一項挑戰。

As such our experienced asset management team is working in tandem with our management company to maximize productivity and minimize turnover costs. We are testing new technology platforms focused on improved labor scheduling and tracking processes.

因此，我們經驗豐富的資產管理團隊正與我們的管理公司協同工作，以最大限度地提高生產力並最大限度地降低週轉成本。 我們正在測試專注於改善勞動力調度和追蹤流程的新技術平台。

If occupancy declines become more pronounced, our rooms-focused product requires less staffing to meet our guests' expectations as compared to larger full-service hotels, which enables us to maintain our industry-leading margins even in a more challenging operating environment. I will now turn the call over to Bryan to provide additional detail on our financial results.

如果入住率下降變得更加明顯，與大型全方位服務酒店相比，我們以客房為中心的產品需要更少的員工來滿足客人的期望，這使得我們即使在更具挑戰性的運營環境中也能保持行業領先的利潤率。現在我將把電話轉給布萊恩，讓他提供更多關於我們財務表現的細節。

Thanks, Krissy, and good morning. As both Justin and Krissy highlighted, although growth was not as strong as the last few quarters, we believe we continue to enhance our strategy and highlight its benefit. While increasing the geographic diversity and product focus of our portfolio of hotels, with the acquisition of 57 hotels this year, we have been able to increase adjusted EBITDA to $104 million during the third quarter and $283 million year to date, increases of almost 15% and over 12% respectively compared with 2015.

謝謝，克麗西，早安。正如賈斯汀和克麗絲所強調的那樣，儘管成長不如前幾季強勁，但我們相信我們會繼續加強我們的策略並突出其優勢。在提升我們酒店組合的地理多樣性和產品重點的同時，透過今年收購 57 家酒店，我們已能夠將第三季度的調整後 EBITDA 提高至 1.04 億美元，年初至今的調整後 EBITDA 提高至 2.83 億美元，與 2015 年相比分別增長近 15% 和 12% 以上。

Modified FFO per share grew to $0.49 for the quarter and $1.41 year-to-date, representing growth of 6.5% for the third quarter and almost 14% year-to-date. Although, as Krissy discussed, adjusted hotel EBITDA margins were challenged during the quarter, adjusted EBITDA margins were flat and have increased 60 basis points for the year due primarily to the structure of our incentive plans.

本季每股調整後 FFO 成長至 0.49 美元，年初至今成長至 1.41 美元，第三季成長 6.5%，年初至今成長近 14%。 儘管正如 Krissy 所討論的，調整後的酒店 EBITDA 利潤率在本季度面臨挑戰，但調整後的 EBITDA 利潤率持平，並且全年增加了 60 個基點，這主要歸功於我們的激勵計劃的結構。

The Company's Senior Management annual performance incentive plan is based 50% on shareholder return metrics and 50% on operational metrics. Through September, these metrics are either likely not to be met or will be at the low end of the payout range. The impact related to the incentive plan for the quarter was a reduction in general administrative expense of approximately $3 million as compared to the third quarter of 2015.

公司高階主管年度績效激勵計畫50%基於股東回報指標，50%基於營運指標。到九月份，這些指標可能無法達到或處於支付範圍的低端。本季激勵計畫的影響是與 2015 年第三季相比，一般管理費用減少約 300 萬美元。

With the completion of the merger with Apple Ten on September 1st, the Company issued 49 million common shares and $94 million to the former Apple Ten shareholders and assumed approximately $257 million of debt, maintaining our leverage ratio at three times trailing adjusted EBITDA. Subsequent to the end of the third quarter, the Company reached an agreement in principle to settle the previously disclosed litigation related to the Apple Ten merger which is still subject to court approval.

隨著 9 月 1 日與 Apple Ten 的合併完成，該公司向前 Apple Ten 股東發行了 4,900 萬股普通股和 9,400 萬美元，並承擔了約 2.57 億美元的債務，將我們的槓桿率維持在調整後 EBITDA 的三倍。第三季結束後，公司已原則上達成協議，解決先前披露的與 Apple Ten 合併相關的訴訟，但該訴訟仍有待法院批准。

Included in transaction costs for the third quarter is an estimate of the gross settlement of $32 million. Of this amount an estimated $10 million to $15 million is expected to be funded from insurance proceeds and other parties to the settlement. These estimated amounts are expected to be recognized in our financial statements in future quarters as they are finalized. We do not intend to comment further on the settlement until it has been finalized and approved by the court.

第三季的交易成本包括預計 3,200 萬美元的總結算金額。其中，預計有 1,000 萬至 1,500 萬美元將來自保險收益和其他和解方的資助。這些估計金額預計將在未來幾季的財務報表中最終確認。在最終確定並獲得法院批准之前，我們不打算對該和解協議發表進一步評論。

At the end of September, the Company had approximately $1.3 billion in outstanding net debt with a current combined weighted average interest rate of 3.3% for the remainder of the year. Excluding debt issuance costs and fair value adjustments on acquired debt, our debt is comprised of $474 million in property-level debt and $877 million outstanding on our $1.1 billion of unsecured credit facilities.

截至九月底，該公司未償還淨債務約13億美元，今年剩餘時間的當前綜合加權平均利率為3.3%。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 4.74 億美元的房地產債務和 11 億美元無擔保信貸額度中 8.77 億美元的未償債務。

Subsequent to the end of the quarter we entered into a 10 year, $70 million mortgage with an annual fixed rate of 3.55%, and as Justin mentioned, we entered into contracts for the sale of the Dallas Hilton and Chesapeake Marriott for a total of $39 million, net of debt to be assumed by the buyer under the Dallas contract.

本季度結束後，我們簽訂了為期 10 年、金額為 7,000 萬美元的抵押貸款，年固定利率為 3.55%，並且正如賈斯汀所提到的，我們簽訂了達拉斯希爾頓酒店和切薩皮克萬豪酒店的銷售合同，總額為 3,900 萬美元，扣除買方根據達拉斯合同承擔的債務。

In September, the Company established a written 10b5-1 trading plan under our previously announced share repurchase program. No shares were repurchased during the quarter, however 147,000 shares have been repurchase under the trading plans since the end of the quarter at an average price of $17.81. During the third 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.

9月份，公司根據先前宣布的股票回購計畫制定了書面的10b5-1交易計畫。本季沒有回購任何股票，但自本季末以來，根據交易計畫已回購 147,000 股，平均價格為 17.81 美元。在第三季度，該公司支付了每股 0.30 美元的分配，我們的董事會已批准每月定期以每股 0.10 美元的現金分配。

The annualized $1.20 per common share represents a 6.9% yield based on our November 3rd closing price of $17.48. We have provided 2016 guidance based on our current view of both operating and economic fundamentals of the Company's existing portfolio of hotels and hotels under contract. RevPAR growth guidance includes properties acquired, including those acquired to the Apple Ten merger as if the hotels were owned as of January 1, 2015.

根據我們 11 月 3 日 17.48 美元的收盤價計算，每股普通股年化收益 1.20 美元，相當於殖利率 6.9%。我們根據對公司現有酒店和簽約酒店的營運和經濟基本面的當前看法，提供了 2016 年的指導。 RevPAR 成長指引涵蓋了所收購的物業，包括因 Apple Ten 合併而收購的物業，假設這些飯店自 2015 年 1 月 1 日起就屬於自己所有。

Adjusted EBITDA guidance includes results for hotels acquired beginning on their acquisition date. Our guidance does not take into account the impact of any unanticipated developments in our business or changes in the operating environments. 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 anticipate adjusted EBITDA of $370 million to $390 million for the full year of 2016 and comparable hotels RevPAR growth of 2% to 4%.

調整後的 EBITDA 指引包括從收購日開始收購的飯店業績。我們的指導並未考慮到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，根據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，我們預計 2016 年全年調整後 EBITDA 為 3.7 億美元至 3.9 億美元，可比酒店 RevPAR 增長率為 2% 至 4%。

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

再次感謝您今天早上加入我們。我們現在開始回答問題。

(Operator Instructions)

（操作員指示）

Ryan Meliker with Canaccord Genuity

Canaccord Genuity 的 Ryan Meliker

Hey, good morning, guys.

嘿，大家早安。

I just have a couple here. First of all, I was wondering if you could give us a little bit of color on the RevPAR guidance and RevPAR results in terms of any breakdown between the legacy portfolio and the Apple REIT Ten portfolio? I know that when you guys closed on the acquisition you had lowered guidance to plus 2% to 4% on RevPAR. I'm wondering if that is any deceleration in terms of your outlook for the legacy portfolio and across your business? Or whether that is this just the market mix bringing the Apple REIT Ten portfolio in, and overall across your business you feel the same?

我這裡只有幾個。首先，我想知道您是否可以就傳統投資組合和 Apple REIT Ten 投資組合之間的 RevPAR 指導和 RevPAR 結果進行一些細分？我知道，當你們完成收購時，你們已經將 RevPAR 的預期增幅下調至 2% 至 4%。我想知道，就您對遺留投資組合和整個業務的前景而言，這是否會有所減緩？或者這只是將 Apple REIT Ten 投資組合引入的市場組合，並且在整個業務中您也有同樣的感受？

Good morning, Ryan. I will start and then Krissy can join in.

早安，瑞安。我先開始，然後克莉絲可以加入。

We are obviously seeing significant impact in a finite number of markets and because of the concentration within Apple Ten, there has been negative impact on the overall portfolio from a RevPAR growth standpoint, specifically because of the relative concentration in Chicago and Houston primarily. As we look at the operating environment pulling those two markets out of both portfolios, the portfolios actually produce relatively close numbers in terms of growth. What we are seeing more broadly, I think is very similar to what you have seen in the Star numbers that were generally reported.

我們顯然看到有限數量的市場受到了重大影響，而且由於 Apple Ten 的集中度，從 RevPAR 成長的角度來看，對整體投資組合產生了負面影響，特別是因為主要集中在芝加哥和休士頓。當我們將這兩個市場從投資組合中拉出來時，我們會發現這兩個投資組合在成長方面實際上產生了相對接近的數字。我認為，我們所看到的更廣泛的情況與《星報》普遍報導的數字非常相似。

That being said, Krissy mentioned in her earlier remarks, we saw approximately 2% growth for the entire portfolio in October. We did not experience in the same way the holiday shift, the Jewish holiday shift, that some of our peers who are more heavily concentrated in the Gateway markets experience that didn't, and we have seen something of a stabilization. But we anticipate those markets will continue to be a drag on our portfolio through the remainder of the year. And because we had ownership in both companies in those markets, the drag occurred in both, but is more pronounced because, smaller portfolio, those markets make up a bigger percentage of the Apple Ten portfolio.

話雖如此，Krissy 在她之前的評論中提到，我們看到 10 月整個投資組合成長了約 2%。我們並沒有像一些主要集中在 Gateway 市場的同行那樣，經歷像假期轉變、猶太假期轉變那樣的情況，而且我們看到了某種程度的穩定。但我們預計，在今年剩餘時間內，這些市場將繼續拖累我們的投資組合。而且由於我們在這些市場上擁有兩家公司的所有權，所以兩家公司都受到了拖累，但這種拖累更為明顯，因為雖然投資組合規模較小，但這些市場在 Apple Ten 投資組合中所佔的比例更大。

Ryan, to give you a little more color on that, if you exclude Chicago and Houston, which are two of the markets that we picked up additional properties in with the Apple Ten transactions, we would have had 80 basis points higher RevPAR during the quarter, just excluding those two markets. And then you add in Austin and that is another 30 basis points. So those three markets equate to 110 basis points less in RevPAR.

瑞安，為了給你更詳細地說明這一點，如果你排除芝加哥和休士頓（這兩個市場是我們透過 Apple Ten 交易獲得額外房產的市場），那麼我們本季的 RevPAR 將提高 80 個基點，僅排除這兩個市場。然後加上奧斯汀，又是 30 個基點。因此，這三個市場的 RevPAR 相當於減少了 110 個基點。

Okay. Got you.

好的。明白了。

And Ryan, business, to add to Justin's comments to you, we have seen pretty consistent just a softer business traveler and so we're not seeing that decelerate any further. It is just a softer business traveler across more markets than we have previously.

瑞安，商務方面，補充一下賈斯汀對您的評論，我們看到商務旅客數量一直比較穩定，因此我們沒有看到這種趨勢進一步放緩。與我們以前相比，它只是更溫和的商務旅行者，涉足了更多的市場。

That is helpful.

這很有幫助。

So it sounds like your outlook has somewhat slowed in general across the industry. But it also sounds like, if I look at the 2% to 4% full-year guidance that you guys issued, the legacy portfolio is probably towards the higher end of that range and the Ten portfolio is probably towards the lower end. Is that a safe assessment?

因此聽起來整個產業的前景總體上已經有些放緩。但聽起來，如果我看一下你們發布的 2% 至 4% 的全年指導，傳統投資組合可能處於該範圍的高端，而十大投資組合可能處於低端。這是一個安全的評估嗎？

Yes.

是的。

Generally speaking.

一般來說。

Okay. Great. I just wanted to make sure I understood that.

好的。偉大的。我只是想確保我理解了這一點。

Then the second thing I was hoping you could give us some color on was, you announced the two full-service, non-core asset sales in Chesapeake and Dallas. Can you give us any color on either, A, cap rates or EBITDA multiple;, and, B, potentially how the sale process progressed, whether there was a lot of demand, et cetera, for those assets?

然後我希望您能給我們介紹的第二件事是，您宣布了切薩皮克和達拉斯的兩項全方位服務非核心資產銷售。您能否向我們提供有關 A、資本化率或 EBITDA 倍數，以及 B、銷售過程可能如何進展、這些資產是否有很大需求等資訊？

I am going to give you less on the first and more on the second. As you know, we typically do not report cap rates and multiples on individual transactions. I can tell you in both cases we were very comfortable with the sales price. They are two very different assets in two very different markets. So, disposition for us meant different things in each case.

關於第一點，我將給你較少的信息，而關於第二點，我將給你更多。如您所知，我們通常不會報告單一交易的資本化率和倍數。我可以告訴你，在這兩種情況下，我們對銷售價格都非常滿意。它們是兩個截然不同的市場中的兩種截然不同的資產。因此，對我們來說，性格在每種情況下都意味著不同的事情。

Chesapeake has been a market that has been negatively impacted by lower government business and an increase in supply. That market has historically been heavily dependent on Navy and other military business, which has been less strong over the past several years. And that hotel is also in need of renovations, so it was coming up on a full renovation. Those were factors that played into our disposition on that particular asset. The Dallas asset is a very different scenario, an asset where we acquired the hotel very well and did significant renovations and changed out management and significantly enhanced the value. We felt, in that particular market, that we were in a position to capitalize on our efforts and to lock in a significant profit on the deal.

切薩皮克市場一直受到政府業務減少和供應增加的負面影響。該市場歷來嚴重依賴海軍和其他軍事業務，但過去幾年來這些業務表現不佳。而那家飯店也需要裝修，所以即將進行全面翻新。這些都是影響我們處置該特定資產的因素。達拉斯資產的情況則截然不同，我們非常成功地收購了這家酒店，並對其進行了重大翻修和更換管理層，從而顯著提高了其價值。我們認為，在那個特定的市場中，我們能夠利用我們的努力並在交易中鎖定可觀的利潤。

The two together balance out in a way that provides a strong profit to our original investment, across the two combined. And exiting those assets is consistent with the strategy which we have articulated in past calls, to dispose over time, when appropriate, of our full-service hotels and to double down on our core strategy, which is to invest in upscale select-service and extended-stay hotels where we feel we can operate most efficiently and effectively.

兩者結合在一起，以某種方式達到平衡，為我們的原始投資帶來豐厚的利潤。退出這些資產符合我們在過去的電話會議中闡明的策略，即在適當的時候逐步處置我們的全方位服務酒店，並加倍實施我們的核心戰略，即投資我們認為能夠最高效、最有效地運營的高檔精選服務和長住酒店。

All right. Thank you. That is helpful.

好的。謝謝。這很有幫助。

And then one last thing, just real quickly: from the color that you mentioned about Chicago, Austin, and Houston, that is helpful, obviously. As we look out to 2017, it seems like supply is going to continue to be a challenge for Austin, and Houston has challenges that do not seem to be dissipating anytime soon. How does Chicago look for you guys? I know the convention calendar looks better, but supply is also picking up. Does the conventions calendar have that big of an impact on your portfolio in Chicago? Do you think Chicago is going to be a tailwind next year, or is it still going to be a challenge?

最後還有一件事，非常快：從您提到的芝加哥、奧斯汀和休斯頓的顏色來看，這顯然是有幫助的。展望2017年，供應似乎仍將是奧斯汀面臨的挑戰，而休士頓面臨的挑戰似乎不會很快消失。你們覺得芝加哥怎麼樣？我知道會議日程看起來更好，但供應也在增加。會議日程對您在芝加哥的投資組合有那麼大的影響嗎？您認為芝加哥明年會成為順風嗎，還是仍然會是個挑戰？

Because most of our hotels are not located in the central business district, there is less of an impact on our suburban hotels. The convention calendar, we look at more conventions that actually compress and so we look at compression room nights. If you look at compression room nights you are actually down slightly on those hotels. O'Hare in particular was somewhat impacted this year by the ramp of the Rosemont hotel, the new development there. We do feel there will be less of an impact going forward on O'Hare and then Rosemont will continue to ramp. So, we do see the net-net growth, a little bit of growth in the O'Hare markets.

由於我們的大多數飯店都不位於中央商務區，因此對郊區飯店的影響較小。在會議日程表中，我們查看了更多實際壓縮的會議，因此我們查看了壓縮房間晚數。如果你看一下壓縮房間晚數，你會發現這些飯店的房間晚數實際上略有下降。奧黑爾國際機場今年受到了羅斯蒙特酒店坡道的影響，該酒店是那裡新建的項目。我們確實覺得這對奧黑爾機場未來的影響會較小，而羅斯蒙特機場將繼續增加。因此，我們確實看到了淨成長，奧黑爾市場有一點成長。

The other, Mettawa markets, Warrenville -- Mettawa has been impacted by business that is in a neighboring office park that a large client that moved out. We are seeing some signs that there are some new smaller companies moving in and so we expected to be able to pick up some business there as well, as we had renovation of one of the hotels and then we will start renovation of another one. So following renovation, we feel good about those. Warrenville, we actually did have a large client, ConAgra, move to downtown, so we have to wait and see on that one. There is going to be some additional supply and we need to pick up some additional business.

另一個是沃倫維爾的梅塔瓦市場——梅塔瓦的業務受到了鄰近辦公園區的影響，因為該園區的一個大客戶已經搬走了。我們看到一些跡象表明，有一些新的小公司正在遷入，因此我們希望能夠在那裡開展一些業務，因為我們已經對其中一家酒店進行了翻新，然後我們將開始對另一家酒店進行翻新。因此，經過翻新後，我們對此感覺很好。沃倫維爾，我們確實有一個大客戶康尼格拉搬到了市中心，所以我們必須拭目以待。將會有一些額外的供應，我們需要獲得一些額外的業務。

So I'd say overall it is not going to be a -- I would not say it is a tailwind, but I would not say, either, it's much of a headwind as we have experienced this year. If that is fair.

所以我想說，總的來說，這不會是——我不會說這是順風，但我也不會說，這是像我們今年所經歷的那樣的逆風。如果這是公平的。

That is helpful. That's it for me. Thanks, guys.

這很有幫助。對我來說就是這樣。謝謝大家。

(Operator Instructions)

（操作員指示）

David Loeb with Robert W. Baird

大衛·勒布和羅伯特·W·貝爾德

Good morning.

早安.

Just to follow up a little bit on the RevPAR question, what impact do you think the direct booking initiatives for Marriott and Hilton are having on your RevPAR? And are you seeing any sort of offset in OTA commissions? And how much of that decrease do you think is being offset in terms of the impact to the bottom line?

關於 RevPAR 的問題，您認為萬豪和希爾頓的直接預訂計劃對您們的 RevPAR 有何影響？您是否看到 OTA 佣金有任何抵消？就對底線的影響而言，您認為這種下降有多少被抵消了？

That is a fun one, so I will take that one.

這個很有趣，所以我會選擇它。

I would say, looking at both Marriott and Hilton, I would say Hilton was probably a little bit more negatively impacted in the short term in the quarter, and you can see that across the performance of some of their select-service hotels as well. That is primarily because they were the first group to come out, the first brand to come out. One of the OTAs decided to dem and de-rank their hotels, which, in the summer months, costs a little bit of less business for that particular brand. What we have seen, though, is that, I believe the OTAs have realized, very smartly, that those brands convert very well and they have since stopped that dem-ing and de-ranking and they are also looking for more, for better ways to partner and understanding that things are changing. And so they are looking for other ways that they can help be a customer acquisition tool for the brands without necessarily increasing commissions.

我想說，縱觀萬豪和希爾頓，我認為希爾頓在本季度的短期內可能受到更負面的影響，你也可以從他們的一些精選服務酒店的表現中看到這一點。這主要是因為他們是第一個出現的團體，第一個出現的品牌。其中一個 OTA 決定降低其酒店的排名，這在夏季會為該品牌帶來一些業務損失。然而，我們看到的是，我相信 OTA 已經非常聰明地意識到這些品牌的轉換率很高，因此他們已經停止了降級和降價，並且他們也在尋找更多、更好的合作方式，並了解事情正在發生變化。因此，他們正在尋找其他方法，幫助品牌成為客戶獲取工具，而不必增加佣金。

In terms of our overall commissions, we did see an increase in commissions, an about 20 basis-points increase in travel agent commissions. What we have seen is our OTA room nights, while they are up, they are up less than last year. Our OTA room-nights in the quarter were up 17%; our brand.com business was also up a strong 9%, which we believe was driven by the marketing around the direct booking strategy. If you look at a channel shift on that, our brand.com business increased from 32% to 34.1%, which is an increase of 210 basis points, where our OTA mix increased from 8% to 9.2%, an increase of 120 basis points. If you actually look at the differential there, that is about a 90 basis-point increase or channel shift from OTA mix to brand.com.

就我們的整體佣金而言，我們確實看到佣金增加，旅行社佣金增加了約 20 個基點。我們看到的是，我們的 OTA 間夜量雖然增加，但增幅低於去年。本季我們的 OTA 間夜量成長了 17%；我們的 brand.com 業務也強勁成長了 9%，我們認為這是由直接預訂策略的行銷推動的。如果從通路轉變來看，我們的 brand.com 業務從 32% 成長至 34.1%，增幅為 210 個基點，而我們的 OTA 組合從 8% 成長至 9.2%，增幅為 120 個基點。如果你真的看一下那裡的差異，那就是從 OTA 組合到 brand.com 的大約 90 個基點的增長或渠道轉移。

We definitely see this is more of a long-term strategic play. The OTA commissions, the cost per booking, is actually going down as the brands have done a better job of working with the ownership community and bringing down those commission costs. But the overall commissions are still going up because the volume is up.

我們確實認為這更像是一項長期策略舉措。 OTA 佣金（即每次預訂的成本）實際上正在下降，因為品牌與業主社群的合作更加緊密，佣金成本也降低了。但由於交易量增加，整體佣金仍在上漲。

Krissy, just to follow up on that: with the growth in those two channels we talked about, but shifting some of that growth between one and the other, what channels are shrinking?

Krissy，我只是想跟進這個問題：我們談到了這兩個管道的成長，但是將部分成長轉移到另一個管道，那麼哪些管道正在萎縮？

Voice continues to shrink a little bit and property-direct shrinks. It is shrinking a little bit.

語音持續萎縮，物業直銷也萎縮。它正在縮小一點點。

Okay, and as we go through this transition where brand.com is really being pushed, do you think there will eventually be a trade-off that you will see lower OTA commissions? And not because the rates are lower, but because there's just less of that? And will that essentially offset some of this RevPAR decrease or ADR decrease?

好的，當我們經歷這個 brand.com 真正受到推動的轉變時，您是否認為最終會出現一種權衡，即 OTA 佣金會降低？這並不是因為利率較低，而是因為這種情況較少？這是否能從根本上抵消部分 RevPAR 或 ADR 的下降？

I do. I think that, as you move into next year, as well, the initial RevPAR decreases from the initial discounts that you are offering up front. But as we move forward as part of a longer-term strategy, I think the brands will continue to look at the discounts and the discount rate, but also they will emphasize, or put greater emphasis on, the other value that is provided by booking direct, not just on price but the other amenities and things that you can only get from booking direct. Straight to room, picking your own room, room key, that type of thing.

我願意。我認為，隨著您進入明年，初始 RevPAR 也會因您預先提供的初始折扣而減少。但隨著我們朝著長期策略的方向發展，我認為品牌將繼續專注於折扣和折扣率，但他們也會強調或更重視直接預訂所提供的其他價值，不僅僅是價格，還有其他便利設施和只能透過直接預訂獲得的東西。直接去房間，選擇自己的房間，房間鑰匙，諸如此類的事情。

So, over time, again we are very supportive of the strategy and we feel that there will be less emphasis on the actual discount, and we already are starting to see and working towards, where we can, adjusting revenue management strategies to increase the -- where we are able, increase the rates so the discount is less.

因此，隨著時間的推移，我們再次非常支持該策略，我們認為對實際折扣的強調將會減少，我們已經開始看到並努力在可能的情況下調整收入管理策略以增加 - 在我們能夠的情況下，提高費率以減少折扣。

Got it. One more sort of related topic: it sounds like the brands are doing much better at wrestling with this whole OTA direct-booking phenomenon. But how about cancel and re-book? You guys must see a bit of that; maybe not as much as some of the urban hotels; but do you think that the brands are taken that seriously and trying to figure out how to stop that or lessen that?

知道了。還有一個相關話題：聽起來各大品牌在應對整個 OTA 直接預訂現象方面做得更好了。但是取消並重新預訂怎麼辦？你們一定看到了一點；可能不如一些城市酒店那麼多；但你們是否認為品牌會認真對待這個問題並試圖找出如何阻止或減少這種情況？

Yes. We do see, you are correct David, we do see less of that in our particular hotels, primarily because we are suburban and a lot of our extended stay hotels, about a third of our hotels are also extended stay, and they see less of the cancel/re-book. But the brands are taking it seriously. But we would like to see and one of the options that we would support are maybe adding additional tiers of pricing. A growing percentage of the guests are actually booking within seven days.

是的。我們確實看到了，大衛，你說得對，在我們的特定酒店中，這種情況確實較少，主要是因為我們位於郊區，而且我們的許多長住酒店，大約三分之一的酒店也是長住酒店，他們看到的取消/重新預訂的情況較少。但各大品牌對此都非常重視。但我們希望看到並且我們支持的選項之一可能是增加額外的定價層級。實際上，越來越多的客人會在七天內預訂。

So, if we could transfer some of those 24-hour cancellation guests into another price tier, where you maybe you offer a little bit of a discount but not as much of a discount as the fully non-refundable advance purchase, that would spread out our cancellation window and essentially have a built-in -- it allows us to have a built-in premium versus just charging a fee. So we are looking for and encouraging our brands to look at different strategies to be more similar to what you see in terms of the airlines that you have to pay premium pricing for the most flexibility.

因此，如果我們可以將部分 24 小時取消預訂的客人轉移到另一個價格等級，您可能會提供一點折扣，但折扣不如完全不可退款的提前購買那麼多，這將擴大我們的取消窗口，並且本質上具有內置功能 - 它允許我們有內置的溢價，而不僅僅是收取費用。因此，我們正在尋找並鼓勵我們的品牌研究不同的策略，以便更類似於您所看到的航空公司，您必須支付高價以獲得最大的靈活性。

That's great. Thank you very much for that and thank you all.

那太棒了。非常感謝，也感謝大家。

Thank you, David.

謝謝你，大衛。

(Operator Instructions)

（操作員指示）

Our final question comes from Ryan Meliker with Canaccord Genuity.

我們的最後一個問題來自 Canaccord Genuity 的 Ryan Meliker。

Hey guys, long time no talk. (Laughter)

嘿夥計們，好久不見了。 （笑聲）

One quick follow-up I had was related to operating costs. Obviously, you guys talked a little bit about the quarter with margins down 140 basis points. As we think about margins and operating costs going forward, what type of RevPAR growth do you feel like you need to maintain flat margins as we look out to 2017?

我快速跟進的一件事與營運成本有關。顯然，你們談論了本季利潤率下降 140 個基點的情況。當我們考慮未來的利潤率和營運成本時，您認為在 2017 年，需要什麼類型的 RevPAR 成長才能維持利潤率穩定？

Somewhere north of 2%; closer to 3% or above is better. We are, as I mentioned in my comments, Ryan, we are facing some challenges. You have the normal increase in wages that's going through with the minimum wage increases, living wage increases, although they have less of an impact on our portfolio because most of those are primarily geared toward the Gateway cities. In addition, you have just additional supply, which is putting pressure in downtown San Diego and Austin and Nashville and some of these markets that are just natural low unemployment for driving up the wage rates.

2% 左右；接近3%或以上較好。正如我在評論中提到的，瑞安，我們正面臨一些挑戰。隨著最低工資和生活工資的上調，工資也會正常上漲，但這對我們的投資組合影響較小，因為其中大部分主要面向門戶城市。此外，還有額外的供應，這給聖地牙哥市中心、奧斯汀和納許維爾等一些市場帶來了壓力，這些市場自然而然地失業率較低，從而推高了工資率。

So we are clearly going to stay on top of it. We talked about the technology opportunity. We are working with our managers to reduce contract labor as much as possible, There are brand programs where you can basically offer a small amount of frequency points in lieu of daily housekeeping. I mentioned earlier we have extended-stay hotels, and the nice thing about extended stay hotels is that you have lower turnover cost. You have longer-term stays so there's lower turnover cost. There's less exposure to those increases in wages.

因此我們顯然會繼續保持領先地位。我們討論了技術機會。我們正在與我們的經理合作，盡可能減少合約工，有一些品牌計劃基本上可以提供少量的頻率點來代替日常家務。我之前提到過，我們有長期住宿飯店，長住飯店的好處是營業額成本較低。由於您的停留時間較長，因此人員流動成本較低。薪資上漲帶來的影響較小。

Labor is going to be the biggest challenge; utilities have been pretty favorable for us year to date, so we will have to watch that; but again, I would reiterate somewhere north of the mid-2% or so.

勞動力將是最大的挑戰；今年到目前為止，公用事業對我們來說相當有利，因此我們必須關注這一點；但我還是要重申一下，這個數字大約在 2% 左右。

Okay. That is helpful. Thank you.

好的。這很有幫助。謝謝。

Thank you, Ryan.

謝謝你，瑞安。

That does conclude our question-and-answer session. At this time I will turn it back to Mr. Knight for closing remarks.

我們的問答環節到此結束。現在我將把發言時間交還給奈特先生，請他作最後發言。

Thank you for joining us this morning. Overall, we are pleased with the performance of our hotels during the first nine months of 2016. Our experience in lodging industry spans multiple economic cycles and we are confident we are well-positioned for the remainder of the year, despite our expectations for more moderate growth on a go-forward basis. We hope that as you travel you will take the opportunity to stay with us and if you have not already, we would encourage you to vote. Have a great afternoon, and we look forward to talking to you soon.

感謝您今天上午加入我們。整體而言，我們對 2016 年前九個月飯店的表現感到滿意。我們在住宿業的經驗跨越了多個經濟週期，儘管我們預計未來成長會更加溫和，但我們有信心在今年剩餘時間內佔據有利地位。我們希望您在旅途中能藉此機會與我們在一起，如果您還沒有投票，我們鼓勵您投票。祝您下午愉快，我們期待很快與您交談。

This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time.

今天的會議到此結束。感謝您的參與。現在您可以斷開線路。