Apple Hospitality REIT Inc (APLE) 2017 Q1 法說會逐字稿

Greetings, and welcome to Apple Hospitality REIT First Quarter 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to turn the conference over to your host, Kelly Clarke, Vice President, Investor Relations. You may begin.

您好，歡迎參加 Apple Hospitality REIT 2017 年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興將會議交給主持人、投資者關係副總裁凱利克拉克 (Kelly Clarke)。你可以開始了。

Thank you, and good morning. We welcome you to Apple Hospitality REIT's First Quarter 2017 Earnings Call on this, the fifth day of May, 2017. Today's call will be based on the first quarter 2017 earnings release, which was distributed yesterday afternoon.

謝謝，早安。歡迎您參加 Apple Hospitality REIT 於 2017 年 5 月 5 日舉行的 2017 年第一季財報電話會議。今天的電話會議將基於昨天下午發布的 2017 年第一季財報。

As a reminder, 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.

提醒一下，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 2016 Form 10-K and other filings with the SEC. Any forward-looking statement that Apple Hospitality makes speaks only as of today, and the company undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

參與者應仔細審查我們的財務報表及其附註，以及 Apple Hospitality 2016 年 10-K 表格和向美國證券交易委員會提交的其他文件中所述的風險因素。Apple Hospitality 所做的任何前瞻性聲明僅代表今日的觀點，除非法律要求，否則本公司不承擔公開更新或修改任何前瞻性聲明的義務。

In addition, certain non-GAAP measures of performance, such as EBITDA, adjusted EBITDA, FFO and modified FFO will be discussed during this call. We encourage participants to review reconciliations of those measures to GAAP measures, as included in yesterday's earnings release and other filings with the SEC.

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。

For a copy of the earnings release or additional information about the company, please visit applehospitalityreit.com.

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 first quarter of 2017 and an outlook for the sector and for the company. We will then open the call for Q&A.

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 2017 年第一季的業績以及產業和公司的前景。然後我們將開始問答環節。

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 First Quarter 2017 Earnings Call.

謝謝你，凱利。早安，歡迎參加 Apple Hospitality REIT 2017 年第一季財報電話會議。

During the quarter, our broadly diversified portfolio of upscale hotels performed generally in line with our expectations. Despite difficult year-over-year comps in the LA market, comparable hotels RevPAR increased by 1.4%, above the midpoint of our annual guidance. Pressure on labor costs combined with moderate top line growth in the quarter resulted in modest margin decrease to 36.2% of revenue.

本季度，我們多元化的高檔飯店組合表現整體符合我們的預期。儘管洛杉磯市場同比表現艱難，但同店可比酒店的平均可售房收入 (RevPAR) 仍增長了 1.4%，高於我們年度指引的中位數。勞動成本壓力加上本季溫和的營收成長導致利潤率小幅下降至營收的 36.2%。

(inaudible) regarding the broader economy, which improved following the transition in Washington, remains relatively strong despite continued political gridlock. Consistent with our comments during our year-end 2016 earnings call, we have yet to see meaningful improvement in many of our markets and do not anticipate any significant changes until late in the year at the earliest. That said, our portfolio of hotels continues to perform well. And with year-over-year comps for the LA market growing easier as we approach the end of the second quarter, we continue to have confidence in our full year guidance and are well positioned should the economic environment strengthen in the back half of the year.

（聽不清楚）就整體經濟而言，華盛頓權力交接後經濟有所改善，儘管政治僵局持續存在，但仍保持相對強勁。與我們在 2016 年年終收益電話會議上的評論一致，我們尚未看到許多市場出現有意義的改善，並且預計最早也要到今年年底才會出現任何重大變化。儘管如此，我們的酒店組合仍然表現良好。隨著第二季末的臨近，洛杉磯市場的同比數據變得越來越容易，我們仍然對全年業績指引充滿信心，並且如果下半年經濟環境轉好，我們將處於有利地位。

Given the geographic mix of our portfolio, we feel we are uniquely positioned to benefit should the current administration succeed in advancing all or part of its proposed agenda.

考慮到我們投資組合的地理分佈，我們認為，如果現任政府成功推進其所提議的全部或部分議程，我們將處於獨特的優勢地位，並從中受益。

In April, we completed the sale of our full-service Hilton hotel in Dallas, Texas, for $56 million. While the property performed well for us, this disposition is consistent with our strategy to reduce our ownership of full-service assets and redeploy proceeds into our core product where we believe we can generate stronger, more stable returns for our shareholders over time.

今年 4 月，我們以 5,600 萬美元的價格完成了位於德克薩斯州達拉斯的全方位服務希爾頓酒店的出售。雖然該物業對我們來說表現良好，但這種處置符合我們的策略，即減少我們對全方位服務資產的所有權，並將收益重新部署到我們的核心產品中，我們相信我們可以隨著時間的推移為股東創造更強勁、更穩定的回報。

Our remaining full-service portfolio consists of 4 hotels, less than 2% of our total portfolio. We will continue to look for opportunities to sell these assets where we feel pricing is appropriate and proceeds can be redeployed into assets which better fit our long-term strategy.

我們剩餘的全方位服務酒店組合包括 4 家酒店，占我們總組合的不到 2%。我們將繼續尋找機會出售這些資產，我們認為價格合適，收益可以重新部署到更適合我們長期策略的資產。

Within our core portfolio, we continue to monitor the performance of our hotels and markets, and look to selectively dispose off assets which are likely to be less relevant with consumers in the future as a result of their location, size, brand, age or condition.

在我們的核心投資組合中，我們持續監控飯店和市場的表現，並尋求選擇性地處置那些因地點、規模、品牌、年齡或狀況而未來可能與消費者不再相關的資產。

As part of this process, in April, we entered into contracts for the sale of our SpringHill Suites and TownePlace Suites in Columbus, Georgia. Proceeds from the sale of these assets will provide further availability under our revolver to fund acquisitions or buy back stock.

作為這一過程的一部分，我們在四月簽訂了位於喬治亞州哥倫布市的 SpringHill Suites 和 TownePlace Suites 的銷售合約。出售這些資產所得的收益將為我們的循環信貸提供進一步的資金，用於收購或回購股票。

As we mentioned on our last call, we acquired a new Courtyard by Marriott in the historic Stockyards area of Fort Worth on February 2, the same day the hotel opened for business. We currently have outstanding contracts for the purchase of 4 additional hotels, all of which are under construction, for a total purchase price of approximately $103 million. The properties under contract included dual branded Home2 Suites and Hilton Garden Inn in Birmingham, a Hampton Inn in downtown Phoenix, and a Home2 Suites at the airport in Orlando, Florida. We anticipate these properties will be completed and open for business over the next 6 to 18 months.

正如我們在上次電話會議上提到的，我們於 2 月 2 日收購了位於沃斯堡歷史悠久的 Stockyards 區的一家新萬怡酒店，並在同一天該酒店開業。我們目前有尚未履行的購買另外 4 家酒店的合同，這些酒店均在建設中，總購買價格約為 1.03 億美元。簽約的酒店包括位於伯明罕的雙品牌 Home2 Suites 酒店和希爾頓花園酒店、位於菲尼克斯市中心的漢普頓酒店以及位於佛羅裡達州奧蘭多機場的 Home2 Suites 酒店。我們預計這些物業將在未來 6 至 18 個月內竣工並投入營業。

For our existing portfolio, consistent reinvestment enables us to maintain the competitive positioning and relative -- or relevance of our hotels and mitigate the impact of competing new supply within our individual market. While we utilize our scale to drive down total renovation costs, the scope of each renovation is tailored to the specific needs of the asset and its competitive positioning within a market. During the first quarter, the company invested approximately $13 million in carefully timed and effectively managed renovations, and we plan to spend an additional $50 million to $60 million during the remainder of 2017.

對於我們現有的投資組合，持續的再投資使我們能夠保持酒店的競爭地位和相對相關性，並減輕我們個人市場內競爭性新供應的影響。雖然我們利用規模來降低整體改造成本，但每次改造的範圍都是根據資產的具體需求及其在市場中的競爭地位量身定制的。在第一季度，公司投資了約 1,300 萬美元用於精心安排時間和有效管理的翻新工程，我們計劃在 2017 年剩餘時間內再投資 5,000 萬至 6,000 萬美元。

Although new supply has expanded beyond core urban and gateway markets, growth has been muted compared to earlier recovery periods and continues to be supported by positive demand trends. The supply outlook for our hotels is unchanged from what we reported for the fourth quarter, with just over 60% of our hotels expecting one or more upper midscale, upscale or upper upscale new construction projects within a 5-mile radius to be completed within the next 18 months.

儘管新增供應已擴展到核心城市和門戶市場之外，但與早期復甦期相比，成長仍然緩慢，並繼續受到積極需求趨勢的支撐。我們酒店的供應前景與第四季度報告的相比沒有變化，超過 60% 的酒店預計在未來 18 個月內，5 英里半徑範圍內將有一個或多個中高檔、高檔或超高檔新建築項目竣工。

We have one of the strongest balance sheets in the industry, which provides us with increased stability during times of economic uncertainty and the flexibility to pursue accretive opportunities in the marketplace. At the end of the quarter, our debt-to-adjusted EBITDA was approximately 3x.

我們擁有業內最強勁的資產負債表之一，這為我們在經濟不確定時期提供了更高的穩定性，並使我們能夠靈活地在市場上尋求增值機會。在本季末，我們的債務與調整後 EBITDA 比率約為 3 倍。

In addition, the company has in place both an at the market common share offering and a share repurchase program that provides for opportunistic share issuances or share repurchases in open market transactions.

此外，該公司還設有市場普通股發行和股票回購計劃，以便在公開市場交易中機會性地發行股票或回購股票。

The ATM provides the mechanism to efficiently issue shares when market conditions are appropriate and use proceeds to further enhance the strength of our balance sheet in anticipation of future opportunities, such as individual asset transactions.

ATM 提供了一種機制，可以在市場條件合適時有效發行股票，並利用收益進一步增強我們的資產負債表實力，以期抓住未來的機會，例如個人資產交易。

The share repurchase program provides us optionality should shares trade at the level that makes the purchase of our own shares significantly more attractive than asset opportunities. Although no shares were sold or purchased during the first quarter of this year, we are pleased to have these programs in place and the flexibility to benefit from dislocations in the trading of our shares should they occur.

如果股票交易水準使得購買我們自己的股票比購買資產機會更具吸引力，那麼股票回購計畫為我們提供了選擇權。儘管今年第一季沒有出售或購買任何股票，但我們很高興能夠實施這些計劃，並能夠靈活地從股票交易混亂中獲益。

Deal ownership within the Marriott and Hilton brand families and among our third-party management companies, as well as concentration in the upscale rooms-focused sector of the lodging industry, provides Apple Hospitality with exceptional influence, purchasing economies, operational efficiencies and unparalleled access to performance data. Through the detailed analysis of hotel performance, operational and market metrics, we have established a data-driven platform that allows us to benchmark and share best practices across our portfolio to maximize property-level profitability and drive strong operating margins.

萬豪和希爾頓品牌家族以及我們第三方管理公司的交易所有權，以及在以高檔客房為中心的住宿業領域的集中度，為 Apple Hospitality 提供了卓越的影響力、採購經濟性、營運效率和無與倫比的績效數據存取權。透過對酒店業績、營運和市場指標的詳細分析，我們建立了一個數據驅動平台，使我們能夠對整個投資組合進行基準測試和分享最佳實踐，以最大限度地提高酒店層面的盈利能力並實現強勁的營業利潤率。

With that, 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, Justin. While our hotel results benefited from the shift in the Easter holiday from March to April, as anticipated, the loss of the Porter Ranch business year-over-year suppressed some of our growth. Excluding the 8 Porter Ranch affected hotels, our RevPAR grew 2.6% in the quarter, 120 basis points higher than the 1.4% growth for all comparable hotels.

謝謝你，賈斯汀。雖然我們的酒店業績如預期一樣受益於復活節假期從 3 月移至 4 月，但波特牧場業務的同比損失抑制了我們的部分增長。除受影響的 8 家 Porter Ranch 酒店外，我們的 RevPAR 本季度增長了 2.6%，比所有可比酒店的 1.4% 增幅高出 120 個基點。

Approximately 60% of our hotels had RevPAR growth, excluding hotels with renovation impact. 21% of our hotels achieved double-digit RevPAR increases, while 11% of our hotels experienced double-digit RevPAR declines.

除受翻新影響的酒店外，約有 60% 的酒店實現了 RevPAR 成長。我們 21% 的飯店實現了兩位數的 RevPAR 成長，而 11% 的飯店則經歷了兩位數的 RevPAR 下降。

Transient rooms sold were slightly down year-over-year, as has been consistent with the trend we saw in the second half of 2016, when the softness in business transient became more pronounced in our portfolio.

短期客房銷售量較去年同期略有下降，這與我們在 2016 年下半年看到的趨勢一致，當時我們的投資組合中商務短期客房的疲軟態勢變得更加明顯。

Group production continued to be strong as our group room night mix increased just over 1 point to approximately 15%. Rate growth was essentially flat, with a decline of almost 80 basis points attributable to Porter Ranch.

團體生產持續保持強勁勢頭，我們的團體客房夜數組合增加了 1 個百分點，達到約 15%。利率成長基本上持平，由於波特牧場 (Porter Ranch) 的影響，利率下降了近 80 個基點。

Due to a softer April with the change in Easter holiday timing, we do not expect RevPAR growth to pick up until the second half of the year, even though the impact from the Porter Ranch displacement business will be less in the second quarter.

由於復活節假期時間的變化導致 4 月份酒店業較為疲軟，我們預計 RevPAR 的增長要到今年下半年才會回升，儘管 Porter Ranch 排水量業務對第二季度的影響較小。

60% of our hotel EBITDA in the quarter was derived from 20 star markets. We have 3 markets with hotel EBITDA contribution greater than 5%: Phoenix, Los Angeles and San Diego. Phoenix and San Diego continued to perform well, with RevPAR growth of 5.5% and 13.1% respectively. RevPAR for our hotels in the Los Angeles market declined 16.3%. We are pleased to report that all 8 of our Porter Ranch affected hotels grew market share with an average premium of 8% over their competitive set.

本季我們 60% 的飯店 EBITDA 來自 20 個星級市場。我們有 3 個市場的飯店 EBITDA 貢獻率超過 5%：鳳凰城、洛杉磯和聖地牙哥。菲尼克斯和聖地牙哥繼續表現良好，RevPAR 分別成長 5.5% 和 13.1%。我們洛杉磯市場酒店的每間可用客房收入下降了 16.3%。我們很高興地報告，受影響的波特牧場酒店全部 8 家的市佔率均有所成長，比競爭對手平均高出 8%。

Other markets that performed well included Seattle, with increasing business from Amazon and various technology-related firms and Richmond, with increased demand from corporate relocations and solid leisure business. Miami continues to be one of our weakest markets.

其他表現良好的市場包括西雅圖，亞馬遜和各種技術相關公司的業務不斷成長，以及里士滿，企業搬遷的需求增加和休閒業務穩健。邁阿密仍然是我們最弱的市場之一。

Turning to profitability. Adjusted hotel EBITDA margin declined 130 basis points to 36.2% for the quarter. Excluding the Porter Ranch hotels, decline was 100 basis points. As Justin mentioned, payroll expenses outpacing revenue growth was the main driver of the margin decline, primarily as a result of wage rate increases, but also some impact from higher occupancy. We expect labor costs to be an ongoing challenge, but we have identified some opportunity in labor efficiencies and have been piloting whole house labor efficiency software to address those opportunities. The pilot is being run with a few of our management companies, and we are pleased with the results thus far. We are working with vendors to incorporate management company feedback and greater process efficiency and we'll continue to roll out these programs for additional hotels as we move through the remainder of the year.

轉向盈利能力。本季調整後飯店 EBITDA 利潤率下降 130 個基點至 36.2%。不包括波特牧場飯店，下降了 100 個基點。正如賈斯汀所提到的，薪資支出超過收入成長是利潤率下降的主要原因，這主要是由於工資率上漲，但也受到入住率提高的影響。我們預期勞動成本將是一個持續的挑戰，但我們已經發現了勞動效率方面的一些機會，並一直在試行全屋勞動效率軟體來應對這些機會。我們的一些管理公司正在進行試點，迄今為止我們對結果感到滿意。我們正在與供應商合作，整合管理公司的回饋並提高流程效率，我們將在今年剩餘時間內繼續為更多飯店推出這些計劃。

We are also focused on reducing reliance on contract labor in several markets resulting from the increasingly tight labor environment. We have used our scale to negotiate favorable pricing on some comprehensive hiring solutions, which we are also testing with a couple of management companies.

由於勞動力環境日益緊張，我們也致力於減少多個市場對合約工的依賴。我們利用我們的規模就一些綜合招聘解決方案協商了優惠價格，我們也正在與幾家管理公司進行測試。

Although many markets where demand is still outpacing supply, we continue to work with the management teams to manage the mix-to-drive rate yielding higher margin. We expect margins to be challenged again in the second quarter, with expected low RevPAR growth before improving in the second half of the year.

儘管許多市場的需求仍然超過供應，但我們仍將繼續與管理團隊合作，以管理混合驅動率，從而獲得更高的利潤。我們預計利潤率將在第二季再次面臨挑戰，預計 RevPAR 成長率較低，然後在下半年有所改善。

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

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. I will quickly summarize a few of the numbers Justin and Krissy touched on.

謝謝，克麗西，早安。我將快速總結賈斯汀和克莉絲提到的幾個數字。

We finished the first quarter with revenue of $293 million, adjusted EBITDA of $99 million and corporate G&A expense of $6.8 million, all increasing from the same period in 2016, due primarily to the Apple Ten merger, which added 56 hotels to our portfolio in September 2016.

我們第一季的營收為 2.93 億美元，調整後 EBITDA 為 9,900 萬美元，企業一般及行政費用為 680 萬美元，均較 2016 年同期有所增加，這主要歸因於 Apple Ten 合併，該合併於 2016 年 9 月為我們的投資組合增加了 56 家酒店。

Modified FFO per share was $0.39, down from $0.40 per share in the first quarter of 2016.

每股調整後 FFO 為 0.39 美元，低於 2016 年第一季的每股 0.40 美元。

We continued to reiterate our guidance for 2017 that we provided in February. Based on our operating performance to-date, our visibility in the business drivers for the remainder of the year and announced transactions, we anticipate net income of between $209 million and $232 million; comparable hotel RevPAR growth between 0% and 2%; comparable hotels adjusted EBITDA margin percent between 37.3 and 38.3; and adjusted EBITDA between $430 million and $450 million.

我們繼續重申我們在二月提供的2017年指導。根據我們迄今為止的經營業績、我們對今年剩餘時間業務驅動力的預見性以及已宣布的交易，我們預計淨收入將在 2.09 億美元至 2.32 億美元之間；可比酒店 RevPAR 增長率在 0% 至 2% 之間；可比酒店調整後的 EBITDA 利潤率在 37.3% 至 38.380 億美元之間的

At the end of March, the company had approximately $1.4 billion of outstanding debt with a current combined weighted average interest rate of 3.3% for the remainder of 2017.

截至 3 月底，該公司未償還債務約為 14 億美元，2017 年剩餘時間的當前綜合加權平均利率為 3.3%。

Excluding debt issuance costs and fair value adjustments on acquired debt, our debt is comprised of $462 million in property-level debt and $942 million outstanding on our $1.1 billion of unsecured credit facility.

不包括債務發行成本和所收購債務的公平價值調整，我們的債務包括 4.62 億美元的房地產債務和 11 億美元無擔保信貸額度中未償還的 9.42 億美元。

As Justin mentioned, during April, we completed the sale of the Dallas Hilton for a total of $56 million and have entered into contracts for the sale of 2 hotels in Columbus, Georgia, for $10 million. Net of debt assumed, we used the $29 million of sales proceeds from the Dallas hotel to further increase the availability under our credit facility and plan to use the Columbus proceeds similarly should a closing occur.

正如賈斯汀所提到的，四月份，我們以總價 5600 萬美元完成了達拉斯希爾頓酒店的出售，並簽訂了以 1000 萬美元出售佐治亞州哥倫布市兩家酒店的合約。在扣除承擔的債務後，我們使用了達拉斯酒店 2900 萬美元的銷售收益來進一步增加我們的信貸額度，併計劃在酒店關閉時以類似方式使用哥倫布酒店的收益。

As a result of the Dallas Hilton sale, we will recognize an approximate gain of $16 million in the second quarter of '17.

由於達拉斯希爾頓的出售，我們將在 2017 年第二季度實現約 1,600 萬美元的收益。

During the first quarter, the company paid distributions of $0.30 per common share and the annualized $1.20 per common share represents an annual 6.3% yield based on our May 1 closing price of $18.90.

第一季度，該公司支付了每股普通股 0.30 美元的分配，每股普通股 1.20 美元的年化收益率根據 5 月 1 日 18.90 美元的收盤價計算為 6.3%。

Finally, I wanted to highlight that our Annual Shareholder Meeting is scheduled for May 18, and we once again have a number of corporate governance proposals that we feel are beneficial to shareholders, including deferring the terms of our Board of Directors and having annual elections for the entire board. These proposals were voted on but not approved at our 2016 Annual Meeting due to lack of shares voting. We encourage each investor to consider these proposals and vote their shares accordingly.

最後，我想強調的是，我們的年度股東大會定於 5 月 18 日舉行，我們再次提出了一些我們認為對股東有利的公司治理提案，包括推遲董事會任期和每年舉行全體董事會選舉。這些提案在我們的 2016 年年度會議上進行了表決，但由於缺乏投票，因此未獲批准。我們鼓勵每位投資者考慮這些提議並相應地投票。

Thank you for joining us this morning. Despite a more moderate growth environment so far in 2017 and expected for the remainder of the year, we continue to execute against our core strategy, and believe that over the long term, we are well positioned to meaningfully increase shareholder value.

感謝您今天上午加入我們。儘管 2017 年迄今成長環境較為溫和，預計今年剩餘時間的成長環境也將如此，但我們仍將繼續執行核心策略，並相信從長遠來看，我們已做好準備，大幅提升股東價值。

We will now open the call up for questions.

我們現在開始回答問題。

(Operator Instructions) Our first question comes from Ryan Meliker with Canaccord Genuity.

（操作員指示）我們的第一個問題來自 Canaccord Genuity 的 Ryan Meliker。

I had a couple of things. First of all, you guys, first of all, congratulations. You put up some pretty solid RevPAR growth in spite of LA being down 16%, so kudos to you for that. I guess I'm wondering, as we look forward with 1Q which seemed to be one of the more challenging quarters given that LA comp, and you guys coming in the upper half of your outlook for RevPAR for the full year, what are you seeing as we go into 2Q, 3Q and 4Q that tempers those expectations there where you might see things coming towards the lower half? Or are you just being conservative and you just didn't see the significant opportunity here to raise your guidance because it's so early in the year?

我有幾件事。首先，各位，首先，祝賀你們。儘管洛杉磯的 RevPAR 下降了 16%，但你們仍然實現了相當穩健的 RevPAR 成長，為此值得稱讚。我想知道，當我們展望第一季時，考慮到洛杉磯酒店業的情況，這似乎是最具挑戰性的一個季度，而且你們對全年 RevPAR 的預期處於上半部分，那麼當我們進入第二季度、第三季度和第四季度時，您認為哪些因素會降低這些預期，您可能會看到情況轉向下半部分？或者您只是比較保守，只是因為今年還太早，所以您沒有看到提高指導的重大機會？

Ryan, I'll take that one. Yes, we were very pleased with our first quarter results. And as I mentioned in my comments, we expect second quarter to be our most challenging quarter. And that's really because we still have Porter Ranch that continues into April and May, as well as April was soft for us because, as you know, with our hotels and the segment that we're in, we're relying on business travelers. So because of the change in timing of Easter, we were negatively impacted. And if you look at the industry, the markets really that led in April are markets that were more leisure-based. So we are encouraged that we are seeing in our future booking pace for May and June what we would expect which would be a pickup for May and June. But that we still had the softness in April. So the other thing if you remember from last year, in the first part of the year, for our portfolio, business transient was still very strong, and it's more broadly, the softness more broadly spread to our portfolio as we got to the second part of the year. So from a comp standpoint, we had a tough comp in Q2. We actually, for our comparable hotels, grew 4.5% in RevPAR last year. Then as we moved throughout the year in Q3, it was 1.5% and Q4 was 1.9%. So as we are -- as we moved into Q3 and Q4, we saw that business transient demand sort of stabilize and not decelerate any further and we're seeing that consistently into Q1 other than the change of an Easter timing. So a part of it is a more favorable comp as you reach the second part of the year. But the April softness definitely impacts our second quarter numbers.

瑞安，我會接受這個。是的，我們對第一季的業績非常滿意。正如我在評論中提到的，我們預計第二季將是我們最具挑戰性的季度。這確實是因為我們的波特牧場之旅將持續到四月和五月，而且四月份對我們來說比較疲軟，因為如你所知，我們的酒店和我們所處的細分市場都依賴於商務旅客。因此，由於復活節時間的變化，我們受到了負面影響。如果你看一下這個產業，你會發現四月真正領先的市場是休閒為主的市場。因此，我們很高興地看到，5 月和 6 月的預訂速度將達到我們的預期，即 5 月和 6 月的預訂速度將有所回升。但四月份經濟依然疲軟。因此，如果您還記得去年的情況，那麼在上半年，對於我們的投資組合而言，業務瞬態仍然非常強勁，而且更廣泛地說，隨著進入下半年，疲軟現象更廣泛地蔓延到了我們的投資組合。因此，從比較的角度來看，我們在第二季面臨嚴峻的競爭情勢。事實上，我們同類酒店的 RevPAR 去年成長了 4.5%。然後，隨著我們進入全年，第三季的成長率為 1.5%，第四季的成長率為 1.9%。因此，隨著我們進入第三季度和第四季度，我們看到業務瞬時需求趨於穩定，沒有進一步減速，除了復活節時間的變化外，我們在第一季也一直看到這種情況。因此，當你進入下半年時，部分情況會更加有利。但四月的疲軟肯定會影響我們第二季的數據。

Okay, now that's really helpful. And then with regards to margins. Obviously margins were soft in 1Q. Are there particular tailwinds or fewer headwinds on comparable RevPAR growth as we move through the year that give you guys some confidence that you'll hit the bottom line EBITDA at these top line numbers?

好的，這確實很有幫助。然後是關於利潤。顯然，第一季的利潤率較低。隨著我們度過這一年，可比 RevPAR 成長是否存在特定的順風或更少的逆風，讓你們有信心達到這些頂線數字的底線 EBITDA？

We will still have headwinds in -- we had the headwinds of Porter Ranch in Q1 because the loss in Porter Ranch was primarily rate. We will have some of that continue into Q2. And because we're expecting lower RevPAR growth in Q2, as I mentioned in the comments, then we expect margins to be challenged in Q2. But as we pick up in Q3 and Q4, we're expecting more of that growth to be primarily in rate, rate-driven, and we expect to see improvement in margins in the second part of the year.

我們仍然會面臨阻力——第一季我們遇到了波特牧場的阻力，因為波特牧場的損失主要是利率。其中一些活動將持續到第二季​​。正如我在評論中提到的那樣，由於我們預計第二季的 RevPAR 成長會較低，因此我們預計第二季的利潤率將面臨挑戰。但隨著第三季和第四季的回暖，我們預計更多的成長將主要由利率驅動，我們預計利潤率將在今年下半年有所改善。

Okay, now that's great. That's good color. And then last, I just wanted to ask and, Justin, maybe you can give us some insight here. It looks like you guys announced you sold the 2 Columbus assets for $10 million with a writedown of $8 million. If I look at your K, it looks like you bought those assets in March of 2014. So in 3 years, you basically cut the investment from $18 million down to $10 million. I'm wondering what's going on with those assets or in that market that's driving that, I guess, value destruction. And I'm wondering if there -- if it's unique to Columbus or something else that might be hitting other markets across your portfolio.

好的，現在太好了。這顏色真好。最後，我只是想問一下，賈斯汀，也許你可以給我們一些見解。看起來你們宣布以 1000 萬美元的價格出售了哥倫布的兩處資產，並減記了 800 萬美元。如果我看一下你的 K，看起來你是在 2014 年 3 月購買了這些資產。因此，在 3 年內，您基本上將投資從 1800 萬美元削減至 1000 萬美元。我想知道這些資產或市場到底發生了什麼，導致了價值的毀滅。我想知道這是否是哥倫布獨有的，或者其他可能影響您投資組合中其他市場的東西。

So a bit of an anomaly with those assets. The valuations were the result of a merger, so aren't necessarily reflective of the original purchase price of the assets. And I'd say what's going on in that market is a little bit distinct. I mentioned in my earlier comments that we continually look at our portfolio for opportunities. That particular market is more challenged than some of our others in terms of growth potential. And these particular assets are smaller than what we would consider to be optimal in terms of operational efficiencies, which is why they were targeted for sales. I think it would be a mistake to read through to the remainder of our portfolio anything really from that particular transaction, which is under contract. It has yet to close.

因此這些資產有點異常。此估值是合併的結果，因此不一定反映資產的原始購買價格。我想說的是，那個市場的情況有點不同。我在之前的評論中提到過，我們會不斷審視我們的投資組合以尋找機會。就成長潛力而言，該特定市場比我們的其他市場面臨更大的挑戰。這些特定資產的規模比我們認為的營運效率最佳的規模要小，這就是為什麼它們成為銷售目標。我認為，如果僅僅從那筆特定交易（該交易已簽訂合約）來解讀我們投資組合的其餘部分，那將是錯誤的。它尚未關閉。

Now that's great color. And just to make sure I understand correctly, the purchase price allocation that you guys have in your filings isn't necessarily what you would have believed the market value of those individual assets were at the time of acquisition. That's correct?

顏色真棒。為了確保我理解正確，你們在文件中分配的購買價格不一定是你們認為的收購時這些單一資產的市場價值。那是對的嗎？

Well, it's a 2-point way. When we bought -- Apple Seven bought the assets back in '08. And then when we did the merger in '14 of the 3 companies, we looked at fair market value at that time again and rerecorded them, if you will, because Apple Nine was the acquirer at that point. Looking back, they were actually close to the same number. The purchase price was -- the original purchase price in '08 was very similar to what we recorded the assets at in 2014.

嗯，這是兩點方法。當我們購買時——Apple Seven 在 2008 年買回了這些資產。然後，當我們在 2014 年對這三家公司進行合併時，我們再次查看了當時的公平市場價值並重新記錄了它們，如果你願意的話，因為當時 Apple Nine 是收購者。回頭來看，它們實際上接近相同的數字。購買價格是 - 2008 年的原始購買價格與我們 2014 年記錄的資產價格非常相似。

Our next question comes from Michael Bellisario with Robert W. Baird.

下一個問題來自羅伯特·W·貝爾德 (Robert W. Baird) 的邁克爾·貝利薩裡奧 (Michael Bellisario)。

I just want to try to understand maybe why you haven't been more aggressive on the acquisition front. Maybe can you give us a sense of what you're seeing out there that's keeping you on the sidelines at least in the near term?

我只是想嘗試了解為什麼你們在收購方面沒有採取更積極的行動。也許您能告訴我們，您看到了什麼，導致您至少在短期內處於觀望狀態？

Sure. We're continually in the market looking at and underwriting assets. I think many of our peers have commented and we would concur that to-date, there's been a lack of products available and a fairly significant bid-ask spread. I think our primary reason for being less acquisitive is that, I mean, that our sense is, given recent conversations, that the market is likely to loosen up as we approach the back half of the year. And assuming we continue to be fairly stable from a stock price standpoint, I think you can anticipate we would be more aggressive in pursuing assets late in the year. But really, I've been very careful to explain, I think, our acquisition strategy so that our actions are easily understood. And we will pursue growth only to the extent the individual asset acquisitions are accretive on a leverage neutral basis to us, meaning that we can establish a significant or a meaningful spread between where we're trading and where the market is for the individual assets. Because we've seen the 2 fairly close. I think we've been less active on that front. And I don't think that's unique to us in our position. I think our peers as public companies have been equally careful and private market transactions have been at a lower volume as well. In my mind, I think that reflects continued optimism on the part of owners, both public and private, in the future performance of the individual assets, which I think bodes well for our industry. But in the near term, has made it more challenging to grow our portfolio. That said, we benefit today from significant economies of scale. And I think do not see ourselves as having a need to grow absent benefit on an individual transaction basis for our shareholders.

當然。我們不斷在市場上尋找和承保資產。我想我們的許多同行都曾評論過，我們也同意，到目前為止，可用的產品一直很少，而且買賣價差相當大。我認為我們減少收購的主要原因是，根據最近的談話，我們的感覺是，隨著接近下半年，市場可能會放鬆。假設我們的股價繼續保持相當穩定，我想你可以預期我們會在今年稍後更積極地追求資產。但實際上，我認為我已經非常小心地解釋了我們的收購策略，以便我們的行動可以輕易被理解。我們只會在個別資產收購對我們在槓桿中性基礎上產生增值的範圍內追求成長，這意味著我們可以在我們的交易地點和個別資產的市場之間建立一個顯著或有意義的價差。因為我們已經看到它們兩個相當接近了。我認為我們在這方面不太活躍。我認為這對我們這個地位的人來說並不是獨一無二的。我認為我們的上市公司同業也同樣謹慎，私人市場交易量也較低。在我看來，我認為這反映了公共和私人所有者對個人資產未來表現的持續樂觀態度，我認為這對我們的行業來說是個好兆頭。但在短期內，擴大我們的投資組合將變得更具挑戰性。話雖如此，我們今天仍受益於顯著的規模經濟。我認為我們沒有必要為了股東的利益而進行單筆交易的成長。

Got it. That's helpful. And it sounds like it's more of a quality and quantity issue and less so a price or your willingness to get aggressive issue. Is that correct?

知道了。這很有幫助。聽起來這更多的是一個質量和數量的問題，而不是價格或你是否願意採取積極行動的問題。對嗎？

I guess, yes, to a large extent. But again, our sense is, based on conversations we've had recently with a number of people in the industry that, should things remain stable to the end of the year, transaction volumes should begin to increase here in the near future.

我想，是的，在很大程度上是的。但是，根據我們最近與業內一些人士的對話，我們的感覺是，如果情況到今年年底保持穩定，那麼交易量應該會在不久的將來開始增加。

Got it. And just kind of on that same topic. As you're doing your underwriting, does the tough expense environment that you're experiencing with your own portfolio, has that changed your underwriting or your thought process for how you're looking at assets and how you evaluate certain markets? And is that maybe leading to some conservatism for you?

知道了。和剛才的話題差不多。當您進行承保時，您自己的投資組合所經歷的嚴峻費用環境是否改變了您的承保方式或您對資產的看法以及對某些市場的評估方式的思考過程？這是否會讓你變得更保守？

In certain markets, I'd say, it definitely is. As you're aware, certain markets have experienced outsized pressure on the labor front, which result in higher labor expenses and we're factoring that in as we would in all instances in our acquisition equation. I don't know that, that's causing us to be more conservative. From the beginning -- in every acquisition we've done and we've bought over 400 hotels over the past 1.5 decades, we look to the future and look to reasonably anticipate both top line growth and bottom line performance, taking into consideration what we think are likely factors. We don't see the risk being significantly different than it has been historically, but it varies by market and we take individual market's conditions into consideration as we value assets.

我想說，在某些市場，確實如此。如您所知，某些市場在勞動力方面經歷了巨大的壓力，導致勞動力成本上升，我們在收購方程式的所有情況下都將這一點考慮在內。我不知道，這導致我們變得更保守。從一開始——在過去的 15 年裡，我們進行的每一次收購以及購買了 400 多家酒店時，我們都著眼於未來，並合理地預測營業額增長和利潤表現，同時考慮到我們認為可能的因素。我們認為目前的風險與歷史上相比並沒有顯著不同，但它因市場而異，我們在評估資產時會考慮各個市場的情況。

Understood. And then just on the labor management and the labor technology studies that you talked about at your Investor Day and then earlier on the call. I totally understand it's still early days, but how impactful do you think that these changes can be on bottom line profitability if and when that technology is fully implemented across your portfolio? Just trying to figure out if it could be a $1 million or $2 million the bottom line? Or do you think it could be something more on a run rate basis?

明白了。然後就您在投資者日和早些時候的電話會議上談到的勞動力管理和勞動力技術研究。我完全理解現在還為時過早，但是，如果該技術在您的投資組合中全面實施，您認為這些變化對底線盈利有多大影響？只是想弄清楚底線是否可能是 100 萬美元或 200 萬美元？或者您認為從運行率角度來看，它還能起到更多作用嗎？

I think it is early days yet and we are being very cautious in making sure we get the process correct and the software correct before we roll it out on a broad scale. And it also -- certain management companies depending on what systems that they already have in place are going to -- and the markets that they are operating in are going to have more opportunities versus others. So I would say that, the first half of the year, you're probably going to see very little impact from it because it's just on a few -- a couple of management companies here or there. But as we roll it out to the second part of the year on the margin, in terms of -- wages are increasing between 3% and 4%, and we have the opportunity to shave a couple of millions off for occupied rooms. We haven't calculated the exact number yet because I'm not -- it's unclear in terms of the timing when we're going to roll it out. There is some opportunity on the margin to minimize the negative impact from those wage increases. More to come as we continue to move to that process.

我認為現在還為時過早，在大規模推廣之前，我們會非常謹慎地確保流程和軟體的正確性。而且，某些管理公司根據其已經建立的系統，以及其所經營的市場，將比其他公司擁有更多的機會。所以我想說，今年上半年，你可能不會看到太大的影響，因為它只會影響幾家管理公司。但隨著我們在今年下半年推出這項政策，就邊際而言，薪資將上漲 3% 至 4%，我們有機會削減數百萬的已入住客房成本。我們還沒有計算出確切的數字，因為我還不清楚我們何時推出它。存在一些機會來盡量減少工資上漲帶來的負面影響。隨著我們繼續推進這一進程，還會有更多內容發布。

(Operator Instructions) Our next question comes from Jeff Donnelly with Wells Fargo.

（操作員指示）我們的下一個問題來自富國銀行的傑夫唐納利。

A few questions. Actually, this may be a first one about just trends you're seeing in supply. The urban markets continue to maybe surprise people by seeing continuing construction starts or deliveries. Just curious what you're seeing in your markets, and I guess you think the ability for that to be sustained going forward.

幾個問題。實際上，這可能是您第一次看到有關供應趨勢的文章。城市市場繼續出現新建築開工或交付，這可能會讓人們感到驚訝。我只是好奇您在市場上看到了什麼，我想您認為這種狀況在未來是否能夠持續下去。

So you correctly highlight the fact that we continue to see significant supply growth in our more urban and gateway markets. Well, that has spread beyond those to the higher end suburban market. It continues relative to kind of the last cycle to be more muted, and generally speaking, to follow demand trends, which is why in most of our markets, the majority of our markets continue to see growth in RevPAR year-over-year despite many of them seeing increased supply. I think, anecdotally, we continue to hear that it's increasingly difficult to secure construction financing. But even more importantly, this cycle has been different than past cycles and that we've seen the costs of construction grow at a significantly more rapid pace than we've seen RevPAR increase. And as a result, it's more difficult to pencil construction deals than it was in past cycles. When you combine that with the fact that lenders are requiring more equity in deals than they were in the past, it's tempering supply growth in a way that really in the past 1.5 decades to 2 decades is a little bit unprecedented. In fact, earlier this week, we met in California with a large number of Marriott Select Service owners and having conversations with many who are significant developers in the space. The majority were beginning to pull back in terms of future land purchases for development, largely because it was too difficult to pencil those, which leads us to believe that while we would anticipate supply growth to increase this year and potentially through the first part of next year, we would not be surprised at all to see it begin to taper off at that point. Potentially, and again, very different than last cycle before we see a drop off in RevPAR, which would lead to a very different end result than what we saw kind of during the last downturn.

因此，您正確地強調了這樣一個事實：我們繼續看到城市化和門戶市場的供應量顯著增長。嗯，這已經擴展到高端郊區市場。與上一個週期相比，它繼續保持較為溫和的勢頭，並且總體而言，遵循需求趨勢，這就是為什麼在我們的大多數市場中，儘管許多市場的供應量有所增加，但大多數市場的 RevPAR 仍繼續同比增長。我認為，根據傳聞，我們不斷聽到獲得建築融資變得越來越困難。但更重要的是，這個週期與過去的週期不同，我們看到建築成本的成長速度明顯快於 RevPAR 的成長速度。因此，與過去的周期相比，簽署建築交易變得更加困難。如果再加上貸款方在交易中要求比過去更多的股權這一事實，就會抑制供應成長，而這種情況在過去 15 年到 20 年裡是前所未有的。事實上，本週早些時候，我們在加州會見了許多萬豪精選服務業主，並與該領域的許多重要開發商進行了交談。大多數公司都開始減少未來土地購買用於開發，主要是因為預測這些購買量太困難，這使我們相信，雖然我們預計今年的供應增長將會增加，並且可能持續到明年上半年，但如果到那時供應量開始減少，我們也不會感到驚訝。潛在的，而且，與上一個週期之前我們看到的 RevPAR 下降非常不同，這將導致與我們在上次經濟衰退期間看到的非常不同的最終結果。

And when you talk about higher construction costs, is that the hard cost side of it? I mean, is it land cost? Or maybe it's both, but I wasn't sure if one stuck out in your mind.

當您談到更高的建築成本時，這是否是指硬成本方面？我的意思是，是土地成本嗎？或者兩者兼而有之，但我不確定哪一個在你的腦海中留下了深刻的印象。

All right, no. I mean land cost is significantly up, largely because there are a lot of competing opportunities on the real estate side. But construction costs are up because raw materials are up and labor is impacting construction in the same way it's impacting us. And so year-over-year, we're seeing strong double-digit increases in the cost of new construction. When you combine that with, at least, in our space, the upscale space, the improved quality of the product that's demanded by the brands themselves, you see significant impact on construction costs for that type of product. I think as we get later in this cycle, you'll see acceleration probably in the economy and mid-scale segments where the cost of construction is less than a little bit of a movement away from the upscale sector, largely because of the, absent again, a significant reacceleration on the RevPAR side, which would make it easier to pencil deals. But again, we would benefit from that acceleration on our existing portfolio as well.

好吧，不。我的意思是土地成本大幅上漲，主要是因為房地產方面有許多競爭機會。但建築成本上升是因為原物料價格上漲，而勞動力對建築的影響就像對我們的影響。因此，與去年同期相比，我們看到新建築成本呈現兩位數的強勁成長。當你將其與至少在我們這個領域，高端領域，以及品牌本身所要求的產品品質改進結合起來時，你會看到對這類產品的建設成本有顯著的影響。我認為，隨著我們進入這個週期的後期，您可能會看到經濟型和中檔酒店領域的成長加速，因為這些領域的建設成本與高檔酒店領域的差距較小，這主要是因為 RevPAR 方面再次出現了顯著的再加速，這將使交易變得更容易。但同樣，我們現有投資組合的加速成長也會讓我們受益。

And I'm curious, are there any major themes that I guess that were discussed at that Marriott owners meeting that you can kind of share with us? And I guess maybe as a follow-up, do you think some of the Starwood brands, there aren't too many, but of the select service or upscale category could be something that is an opportunity for you guys down the road? I guess how are you thinking about that?

我很好奇，我猜萬豪業主會議上討論了哪些主要主題，您可以與我們分享嗎？我想也許作為後續問題，您是否認為喜達屋旗下的一些品牌（雖然數量不多，但精選服務或高檔類別）可能會為您的未來帶來機會？我猜您對此有何看法？

Sure. Yes, in terms of major themes, again, the benefit in large part of these large conferences of owners for us is on the networking side. And so as we interacted with managers, developers and some of our partners in the space, I think there continues to be a sense of optimism related to the future. Specific to the Starwood-Marriott transaction, there was a tremendous amount of focus on efforts that are underway to maximize the potential of that merger by increasing appeal for the combined entity with consumers. And to further development of the brands, specific in the select service space, we're involved in conversations with Marriott about the future of a loss in Element. Marriott has proven over the years to be exceptional at modifying and developing product that can be efficiently built and has broad consumer appeal. And if you look at the development premerger of those 2 brands, it was on a relative basis, lackluster when compared to kind of the buildout of Marriott Select Service brands. We would anticipate that Marriott will make modifications for those 2 brands that over time will make them more attractive from us from an investment standpoint.

當然。是的，就主要主題而言，這些大型業主會議為我們帶來的好處很大一部分是在交流方面。因此，當我們與管理人員、開發人員以及該領域的一些合作夥伴互動時，我認為他們對未來仍然充滿樂觀。具體到喜達屋與萬豪的交易，人們非常關注正在進行的努力，以透過增加合併後實體對消費者的吸引力來最大限度地發揮合併的潛力。為了進一步發展品牌，特別是在精選服務領域，我們正在與萬豪就 Element 未來的虧損問題進行討論。多年來，萬豪已證明其在修改和開發高效且具有廣泛消費者吸引力的產品方面表現出色。如果你看這兩個品牌合併前的發展，你會發現與萬豪精選服務品牌的建立相比，它們的發展相對平淡。我們預計萬豪將對這兩個品牌進行修改，隨著時間的推移，從投資的角度來看，它們將對我們更具吸引力。

Okay. And maybe one last question. This might be for Christie (sic) [Krissy]. And I don't know if you'll have this level of granularity, but I was surprised to see at Marriott's Investor Day that there was actually very little overlap in the membership of the Starwood and Marriott loyalty programs. It was something like 10% or 11% overlap. Just considering that Starwood really did not have, what I would call, a robust select service offering. Do you guys have a sense if you've been a beneficiary of a pickup of guests from the Starwood system now that -- I know the programs aren't combined, but now that those 2 firms are operating under one umbrella?

好的。也許還有最後一個問題。這可能是給克里斯蒂（原文如此）[Krissy]的。我不知道您是否具有這種程度的細粒度，但令我驚訝的是，在萬豪投資者日上，喜達屋和萬豪忠誠度計劃的會員資格實際上幾乎沒有重疊。重疊率約為 10% 或 11%。只是考慮到喜達屋確實沒有提供我所說的強大的精選服務。你們是否意識到自己已經成為喜達屋系統客人增加的受益者——我知道這些計劃並沒有合併，但現在這兩家公司都在同一個保護傘下運作？

Yes, it was 11%, yes. And so we're excited about that opportunity. But as of yet, we have not seen that come through. And again, primarily, because they haven't been able to merge the systems. You can't easily transfer the points. But from what we understand, it's just a small percentage of points that have actually been transferred up until this point. And it's going to probably be at the earliest, as you know, late 2018 before that with their credit card and comp share arrangements as well as the -- and that's primarily in versus more the system opportunities before that they can actually get those systems merged. But once they get the systems merged, we are looking forward to actually -- because there is not as much overlap in the select service products, we do think that there is an opportunity to gain more business from the Starwood elites into our select service portfolio, especially in markets where they might not have previously had a select service option. So we do see that as an opportunity down the road, but we're not seeing it yet.

是的，是 11%，是的。因此我們對這個機會感到非常興奮。但到目前為止，我們還沒有看到這項結果。再次強調，主要是因為他們無法合併系統。您不能輕易轉移積分。但據我們了解，到目前為止，實際轉移的積分只佔很小一部分。而且最早可能要到 2018 年底，屆時他們將推出信用卡和公司股份安排，以及——這主要是相對於更多的系統機會而言，在此之前，他們實際上可以合併這些系統。但一旦他們合併了系統，我們實際上期待著——因為精選服務產品的重疊並不多，我們確實認為有機會從喜達屋精英那裡獲得更多業務到我們的精選服務組合中，特別是在他們以前可能沒有精選服務選項的市場。因此，我們確實將其視為未來的一個機會，但我們目前還沒有看到它。

We have reached the end of the Q&A session. And I'd like to turn the call back to Justin Knight for closing comment.

問答環節已結束。我想將電話轉回給賈斯汀奈特 (Justin Knight) 來做最後評論。

Thank you. And thanks to everyone who joined us today. Our strategy was designed to reduce volatility and generate strong stable investor returns over time. We're uniquely positioned to benefit from a wide variety of market conditions in ways that will continue to enhance value for our shareholders. We continue to see opportunity within the industry and we look forward to another strong year for Apple Hospitality. We hope that as you travel, you'll take opportunity to stay with us. And happy Cinco de Mayo.

謝謝。感謝今天與我們一起的所有人。我們的策略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。我們擁有獨特的優勢，能夠從各種各樣的市場條件中獲益，從而繼續為股東創造價值。我們繼續看到業界的機遇，並期待 Apple Hospitality 再創輝煌。我們希望您在旅行時能有機會入住我們飯店。祝您五月五日節快樂。

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

今天的電話會議到此結束。現在您可以斷開線路，感謝您的參與。