Apple Hospitality REIT Inc (APLE) 2017 Q2 法說會逐字稿

Greetings, and welcome to Apple Hospitality REIT Second Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator Instructions) 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, and you may now begin.

您好，歡迎參加 Apple Hospitality REIT 2017 年第二季財報電話會議。此時，所有參與者都處於只聽模式。正式演講之後將有一個簡短的問答環節。（操作員指示）提醒一下，本次會議正在錄音。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，現在可以開始了。

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

謝謝，早安。歡迎您參加 Apple Hospitality REIT 於 2017 年 8 月 8 日舉行的 2017 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 2017 年第二季財報。

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

參與者應仔細審閱我們的財務報表及其附註，以及

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.

Apple Hospitality 的 2016 年 10-K 表格以及向美國證券交易委員會提交的其他文件。Apple Hospitality 所做的任何前瞻性聲明僅代表今日的觀點。並且，除非法律要求，否則公司不承擔公開更新或修改任何前瞻性陳述的義務。

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昨天的收益報告和向美國證券交易委員會提交的其他文件中包含的這些指標與 GAAP 指標的對帳。如需查看收益報告副本或有關該公司的更多信息，請訪問 applehospitalityreit.com。

This morning will hear from Justin Knight, our Chief Executive Officer; Bryan Peery, our Chief Financial Officer; and Krissy Gathright, our Chief Operating Officer. We will provide an overview of our results for the second quarter of 2017 and then open the call for Q&A.

今天早上我們將聽取我們的執行長 Justin Knight 的演講； Bryan Peery，我們的財務長；以及我們的營運長 Krissy Gathright。我們將概述 2017 年第二季的業績，然後開始問答環節。

At this time, it my pleasure to turn the call over to our CEO, Justin Knight.

現在，我很高興將電話轉給我們的執行長賈斯汀奈特 (Justin Knight)。

Good morning and welcome to our Second Quarter 2017 Earnings Call. Before I turn the call over to the team to provide detail regarding our performance during the quarter and Q&A. I want to take a moment to express my sincere gratitude for the tremendous outpouring of concern and support following my accident in early July. Unexpected interruptions to our daily lives often stand to remind us of the importance of each day and all that we have to be thankful for. I'm incredibly grateful to be a part of such a thoughtful and caring industry, so thank you.

早上好，歡迎參加我們的 2017 年第二季財報電話會議。在我將電話轉給團隊提供有關我們本季表現的詳細資訊和問答環節之前。我想藉此機會對我七月初發生事故後大家給予的極大關心和支持表示誠摯的謝意。日常生活中意外的干擾常常提醒我們每一天的重要性以及所有值得感恩的事。我非常感激能夠成為如此體貼和關懷的行業的一部分，所以謝謝你們。

Shifting to results, we anticipated the current business demand trends, rising labor costs, calendar shifts, and outsized growth in 2016 in some of our markets would present challenges for our portfolio of hotels during the second quarter. Given our broad diversity of markets and concentration in the upscale segment of the industry, we navigated those challenges and overall produced stable operating results.

談到業績，我們預計當前的業務需求趨勢、勞動力成本上升、日曆變化以及 2016 年部分市場的超額增長將對我們第二季度的酒店組合構成挑戰。鑑於我們市場的多樣性和對高端行業的集中度，我們克服了這些挑戰並總體上取得了穩定的經營業績。

We continue to be confident in the merits of our strategy and our ability to maximize shareholder value over the long term. We have an incredibly talented, dedicated, and data-driven team with tremendous industry experience. We are all focused on maximizing long-term shareholder value, and are confident in our strategy, experience, and ability to execute on that strategy will continue to put us in a position to achieve that goal.

我們對我們的策略優勢以及長期實現股東價值最大化的能力充滿信心。我們擁有一支才華洋溢、敬業奉獻、以數據為導向的團隊，擁有豐富的業界經驗。我們都專注於最大化長期股東價值，並對我們的策略、經驗和執行該策略的能力充滿信心，這將繼續使我們處於實現這一目標的位置。

It is now my pleasure to turn the call over to Bryan and Krissy to provide additional details for the quarter.

現在我很高興將電話轉給 Bryan 和 Krissy，以提供本季的更多詳細資訊。

Thanks, Justin. To reiterate Justin's comments, we very much appreciate everyone's concern and support, and are very thankful for his speedy recovery. As always we have been amazed by his strength and resiliency. Justin was engaged with the team and business soon after the accident, and we look forward to having him back in the office in the near term.

謝謝，賈斯汀。重申賈斯汀的評論，我們非常感謝大家的關心和支持，並非常感謝他迅速康復。一如既往，我們對他的力量和韌性感到驚訝。事故發生後，賈斯汀很快就回到了團隊並開始工作，我們期待他能在不久的將來重返辦公室。

Next, I will cover some of our second quarter highlights, and then Krissy will provide greater detail regarding performance within our markets and the industry overall. We finished the second quarter with revenue of $332 million, adjusted EBITDA of $126 million, and corporate G&A expense of $6 million. Modified FFO per share was $0.51 down from $0.52 in the second quarter of 2016.

接下來，我將介紹我們第二季的一些亮點，然後 Krissy 將提供有關我們市場和整個行業表現的更多詳細資訊。我們第二季的營收為 3.32 億美元，調整後 EBITDA 為 1.26 億美元，企業 G&A 費用為 600 萬美元。每股調整後 FFO 為 0.51 美元，低於 2016 年第二季的 0.52 美元。

As anticipated, the second quarter was a challenge for a number of reasons. Year-over-year comps in a couple of our larger markets, soft business demand, and calendar shifts led to comparable RevPAR for the second quarter being down slightly from last year. Although continued pressure on labor costs and property taxes combined with the lack of growth in ADR lead to a decrease in hotel adjusted EBITDA margins, we still achieved a very strong margin of 39.9%

正如預期的那樣，第二季度由於多種原因而充滿挑戰。與去年同期相比，我們幾個較大市場的業績、疲軟的商業需求以及日曆變化導致第二季的可比 RevPAR 比去年略有下降。儘管勞動成本和房產稅的持續壓力，加上平均房價成長乏力，導致飯店調整後 EBITDA 利潤率下降，但我們仍然實現了 39.9% 的強勁利潤率

Although overall macro-economic factors in the U.S. continue to be modestly favorable with GDP growth, low unemployment although currently a negative to our labor cost, and high consumer confidence, an uncertain direction of the federal government appears to have impacted business investment and CEO confidence which has led to reserved business travel.

儘管美國整體宏觀經濟因素繼續溫和向好，GDP 成長，低失業率（雖然目前對我們的勞動力成本產生負面影響）以及消費者信心高漲，但聯邦政府的不確定方向似乎影響了商業投資和 CEO 信心，導致商務旅行減少。

The restrain in corporate spending mixed with increased supply in many of our markets has muted our ability to increase rates. Since we do not anticipate there will be an immediate change in Washington or a meaningful increase in travel from the business sector, we are tempering our full year adjusted EBITDA guidance by $5 million on the low end and $10 million on the high end. Lowering our full year REVPAR growth guidance by 50 basis points on the high end, and reducing our hotel EBITDA margin guidance by 50 basis points on the low end and tightening the high end by 80 basis points.

企業支出受到限制，而許多市場供應增加，削弱了我們提高利率的能力。由於我們預計華盛頓不會立即發生變化，商務旅行也不會出現顯著增長，因此我們將全年調整後的 EBITDA 預期下限下調 500 萬美元，上限下調 1000 萬美元。將全年 REVPAR 成長預期的高階值降低 50 個基點，將飯店 EBITDA 利潤率預期的低端值降低 50 個基點，將高階值收緊 80 個基點。

Based on our operating performance to date, our visibility into business drivers for the remainder of the year and completed transactions we anticipate net income between $207 million and $225 million. Comparable hotels RevPAR growth between zero and 1.5%. Comparable hotels adjusted hotel EBITDA margin between 36.8% and 37.5%. And adjusted EBITDA between $425 million and $440 million.

根據我們迄今為止的經營業績、對今年剩餘時間業務驅動力的了解以及已完成的交易，我們預計淨收入將在 2.07 億美元至 2.25 億美元之間。可比較飯店 RevPAR 成長率在 0 至 1.5% 之間。可比飯店調整後飯店 EBITDA 利潤率在 36.8% 至 37.5% 之間。調整後的EBITDA在4.25億美元至4.4億美元之間。

Although we have adjusted our outlook for the remainder of the year, we do believe we are well positioned to exceed expectation should there be a stronger improvement in the economy and/or an increase in business travel. As we have discussed on previous calls, we continue to look for opportunities to reduce our ownership of our full service assets to focus solely on our core select service and extended stay product where we believe we can generate stronger more stable returns for our shareholders over time.

儘管我們已經調整了今年剩餘時間的展望，但我們確信，如果經濟出現更強勁的改善和/或商務旅行增加，我們將完全有能力超越預期。正如我們在先前的電話會議上討論的那樣，我們將繼續尋找機會減少對全方位服務資產的所有權，而只專注於我們的核心精選服務和長期住宿產品，我們相信，隨著時間的推移，我們可以為股東創造更強勁、更穩定的回報。

In April, we completed the sale of our full-service Hilton Hotel in Dallas, Texas for $56 million. And as a result of the sale, we recognized a gain of approximately $16 million during the second quarter.

今年四月，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。由於此次出售，我們在第二季度實現了約 1,600 萬美元的收益。

In June, we entered into a contract for the sale of our 316 room Marriott Hotel in Fairfax, Virginia for a gross sales price of $42 million. Should closing conditions be met we anticipate this sale would be completed by the end of this year, and that we would recognize a small gain on sale.

6 月份，我們簽訂了位於維吉尼亞州費爾法克斯的萬豪酒店出售合同，該酒店擁有 316 間客房，總售價為 4,200 萬美元。如果滿足成交條件，我們預計此次出售將在今年年底前完成，並且我們將獲得小額出售收益。

If the Fairfax sale is completed, our remaining full-service portfolio would consist of three hotels or 1% of our total portfolio. We continually look for accretive opportunities for our shareholders. However, the acquisition market remains a challenge with the uncertainty in operations, more competition, and sellers with seemingly little incentive to sell.

如果費爾法克斯的出售完成，我們剩餘的全方位服務組合將包括三家酒店，占我們總組合的 1%。我們不斷尋找為股東增值的機會。然而，收購市場仍存在挑戰，營運存在不確定性、競爭加劇，而且賣家似乎沒有出售的動機。

Although construction is not complete, we do anticipate closing on our previously disclosed contract for the purchase of a dual branded Home2 Suites and Hilton Garden Inn in Birmingham, Alabama upon opening in September. The total purchase price for these assets is $38 million, and they will have a combined 210 rooms. This is another good example of an effective piece of our strategy. We entered into the contract with these hotels in the middle of 2015 for a fixed price, thus taking no development risk. With a significant increase in construction costs in the last couple of years, we believe that we have achieved a very attractive price per key for new assets in a growing market.

儘管施工尚未完工，但我們預計在 9 月開業時，我們將完成先前披露的購買阿拉巴馬州伯明罕雙品牌 Home2 Suites 和希爾頓花園酒店的合約。這些資產的總購買價格為 3,800 萬美元，總共將有 210 間客房。這是我們策略有效實施的另一個很好的例子。我們於2015年中期與這些酒店簽訂了固定價格的合同，因此不存在開發風險。隨著過去幾年建築成本的大幅增加，我們相信，在不斷增長的市場中，我們已經實現了新資產的非常有吸引力的單價。

After closing on the purchase of these properties, we will continue to add outstanding contracts for the purchase of two hotels, both of which are currently under construction, for a combined purchase price of $65 million. We anticipate these two projects will be completed in mid-2018.

在完成這些房產的購買後，我們將繼續增加購買兩家酒店的未完成合同，這兩家酒店目前均在建設中，總購買價格為 6500 萬美元。我們預計這兩個項目將於 2018 年中期完工。

With 235 hotels located in 87 markets across 33 states, our portfolio of hotels is one of the largest most geographically diverse hospitality portfolios in the United States. Our exposure to a wide variety of markets and demand generators minimizes the overall impact of volatility within a single market, region, or industry.

我們的飯店組合遍佈 33 個州的 87 個市場，擁有 235 家飯店，是美國地域分佈最廣、規模最大的飯店組合之一。我們接觸各種各樣的市場和需求產生器，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。

Coupled with our focus on select service and extended-stay product in Marriott and Hilton brands, we are able to effectively maximize operating opportunities across our portfolio producing strong, stable, risk adjusted results. Although we saw some pressure on results in the second quarter, we continue to be a leader in hotel EBITDA margin, and EBITDA after CapEx margin which highlights the benefits of our strategy.

加上我們對萬豪和希爾頓品牌的精選服務和長期住宿產品的關注，我們能夠有效地最大化整個投資組合的營運機會，產生強勁、穩定、風險調整後的業績。儘管我們在第二季度的業績上面臨一些壓力，但我們在酒店 EBITDA 利潤率和扣除資本支出後的 EBITDA 利潤率方面仍然處於領先地位，這凸顯了我們戰略的優勢。

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

現在我很高興將電話轉給克莉絲。

Thank you, Bryan. With our toughest comparison of 4.5% RevPAR growth in the second quarter of 2016, the continued softness in business demand and the shift in holiday timing we expected the second quarter of this year to be our most challenging quarter. Comparable hotel RevPAR declined 20 basis points, with a modest occupancy decline of 50 basis points, and a modest rate increase of 30 basis points. Transient rooms sold declined 68 basis points, just slightly more than the first quarter decline of 40 basis points. Group room nights grew 1.8%, and the group rate increased 50 basis points with group mix remaining relatively consist at 15%.

謝謝你，布萊恩。與 2016 年第二季 4.5% 的 RevPAR 成長率相比，由於業務需求持續疲軟以及假期時間的變化，我們預計今年第二季將成為我們面臨的最具挑戰性的季度。同店可比飯店 RevPAR 下降 20 個基點，入住率小幅下降 50 個基點，房價小幅上漲 30 個基點。短期客房銷售量下降了 68 個基點，略高於第一季 40 個基點的降幅。團體間夜量成長 1.8%，團體房價上漲 50 個基點，團體結構維持相對穩定，為 15%。

With leisure outpacing business transient growth, our room nights in the retail and corporate negotiated segments declined with the offset being an increase in the discount segments which muted overall rate growth. As we move forward into the second half of the year, we would expect our geographically diversified portfolio results to approximate the upscale industry average with growth remaining slow until we see a pickup in business demand.

由於休閒業務的短暫成長速度超過商務業務，零售和企業協商部分的間夜數有所下降，而折扣部分的間夜數有所增加，從而抑制了整體房價的增長。隨著我們進入下半年，我們預計我們的地域多元化投資組合業績將接近高端行業平均水平，並且在業務需求回升之前增長將保持緩慢。

Taking into consideration contribution to EBITDA, our strongest markets during the quarter were Seattle, Richmond, San Diego, and Denver. Our weakest markets were Austin, Omaha, Dallas, and Los Angeles. The west south central region was our poorest performing region with a RevPAR decline of 7.1%. With the previously mentioned underperformance in Dallas and Austin, as well as continued impact from declines in energy-related demand. Although the Austin market only represented 2.2% of our EBITDA contribution in the quarter, the 14% decline in RevPAR lead to a 40 basis point drag on our overall RevPAR growth. All of our Austin hotels experienced RevPAR declines as the new supply in Austin is outpacing demand and the markets are becoming more compartmentalized with less compression from downtown.

考慮到對 EBITDA 的貢獻，本季我們最強勁的市場是西雅圖、里士滿、聖地牙哥和丹佛。我們最弱的市場是奧斯汀、奧馬哈、達拉斯和洛杉磯。西南中部地區是我們表現最糟糕的地區，RevPAR 下降了 7.1%。由於前面提到的達拉斯和奧斯汀的表現不佳，以及能源相關需求下降的持續影響。儘管奧斯汀市場僅佔本季度我們 EBITDA 貢獻的 2.2%，但 RevPAR 下降 14% 導致我們的整體 RevPAR 成長受到 40 個基點的拖累。由於奧斯汀的新供應量超過了需求量，而且市場變得更加分散，市中心的擠壓越來越小，我們奧斯汀的所有酒店的每間可用客房收入 (RevPAR) 均出現下滑。

(inaudible) hotels declined the most as they are being impacted by new hotel openings in the Round Rock and the domain submarkets. While we expect continued softness in the near term as supply is absorbed, we feel positive about the [sub] market long term. As existing large companies like Apple, Samsung, GM, and Home Depot have technology innovation centers located there. In addition, 3M just announced that they are establishing a new state-of-the-art campus in the (inaudible) corridor in 2019.

（聽不清楚）酒店業下滑最為嚴重，因為它們受到了 Round Rock 和域名子市場新酒店開業的影響。雖然我們預計隨著供應被吸收，短期內市場將繼續疲軟，但我們對長期市場持樂觀態度。因為現有的大公司如蘋果、三星、通用、家得寶等都在那裡設有技術創新中心。此外，3M 剛剛宣布，他們將於 2019 年在（聽不清楚）走廊上建立一個新的最先進的園區。

Dallas has been impacted by a softer convention calendar in 2017, and the impact of new hotels opening ahead of the ramp of new business generators in the area including Toyota's new U.S. headquarters, Liberty Mutual's new regional business center, Boeing's new Global Service Headquarters, and the Dallas Cowboy's new training center. That said, the convention calendar is pacing well for 2018 and beyond.

2017 年達拉斯受到了會議日程減少的影響，而且該地區新酒店開業先於新業務增長，包括豐田新的美國總部、利寶互助新的區域商務中心、波音新的全球服務總部和達拉斯牛仔隊的新培訓中心。話雖如此，2018 年及以後的會議日程安排還是很緊湊的。

With the exception of Los Angeles, our West Coast markets continue to perform well. Our Los Angeles market RevPAR has declined 6.4% with continued (inaudible) through May. Although a 4% average market share growth for the group mitigated the impact to our portfolio. Excluding those hotels, our rate and RevPAR growth would have been 40 basis points higher.

除洛杉磯外，我們的西海岸市場繼續表現良好。我們洛杉磯市場的 RevPAR 下降了 6.4%，並持續到 5 月。儘管該集團4%的平均市佔率成長減輕了對我們投資組合的影響。如果不計入這些飯店，我們的房價和每間可用客房收入 (RevPAR) 成長率將會高出 40 個基點。

Strength in the technology sector, primarily with Amazon and military defense spending with Boeing, have persisted to drive strong growth in Seattle. And our San Diego hotels continue to benefit from strong leisure, group, and government business.

科技業的強勁發展（主要是亞馬遜）和波音的軍事國防開支持續推動著西雅圖的強勁成長。我們的聖地牙哥飯店持續受益於強勁的休閒、團體和政府業務。

We are very excited about the addition of the Birmingham Hilton Garden Inn Home2 Suites combo to our portfolio later this year. The hotels are well located within walking distance of three major hospitals UAB, Children's, and the VA Hospital. RevPAR growth from our two [owned] hotels in the market was 11.7% in the second quarter. Just slightly higher than the [start of] market results as the market has benefited from expansion in manufacturing, life sciences, information technology, finance, and insurance sectors.

我們非常高興今年稍後伯明罕希爾頓花園酒店 Home2 Suites 組合將加入我們的產品組合。飯店地理位置優越，步行即可到達三家主要醫院：UAB、兒童醫院和 VA 醫院。第二季度，我們在市場上擁有的兩家飯店的 RevPAR 成長率為 11.7%。由於市場受益於製造業、生命科學、資訊科技、金融和保險業的擴張，該業績略高於市場初期的表現。

For a broader perspective on new supply as it relates to our portfolio, the outlook for our hotels is unchanged from what we reported for the first quarter. With just over 60% of our hotels expecting one or more upper midscale, upscale, or upper upscale new construction projects within a five-mile radius to be completed within the next 18 months. From that perspective, the pipeline of rooms and construction appears steady which is consistent with the Smith Travel Statistics for the industry.

從與我們的投資組合相關的新供應的更廣泛角度來看，我們酒店的前景與我們第一季報告的一樣沒有變化。我們超過 60% 的飯店預計在未來 18 個月內，其五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。從這個角度來看，客房和建築的籌備情況似乎很穩定，這與史密斯旅遊業的統計數據一致。

Turning to profitability, adjusted hotel EBITDA margin decreased 160 basis points during the quarter due to a slight decline in RevPAR and expense growth in the mid 2% range when factoring out the [ramp] hotels. Continued labor pressures resulting from reduced availability of qualified labor and minimum wage increases accounted for 70 basis points of the margin decline consistent with the first quarter.

談到獲利能力，由於 RevPAR 略有下降，且扣除 [坡道] 酒店後費用增長在 2% 左右，本季度調整後的酒店 EBITDA 利潤率下降了 160 個基點。由於合格勞動力供應減少和最低工資上漲導致的持續勞動力壓力，造成利潤率下降 70 個基點，與第一季一致。

We do expect labor costs to continue to be a challenge with labor shortages in several of our markets. The starting wage rate for hourly workers has been increased in several markets to attract additional hires and minimize turnover costs. We have almost completed the test phase of whole house labor management technology platform which should help mitigate labor cost increases through better monitoring of overtime and productivity. We expect 75% of our hotels to have implemented the new system by October.

我們確實預期勞動成本將繼續成為一個挑戰，因為我們的幾個市場都存在勞動力短缺的問題。多個市場已提高計時工人的起薪，以吸引更多員工並最大程度地降低人員流動成本。我們幾乎完成了全屋勞動力管理技術平台的測試階段，該平台可以透過更好地監控加班和生產力來幫助緩解勞動成本的增加。我們預計到十月份，75% 的飯店將實施新系統。

Although in line with expectations, utility expense ticked up slightly in the quarter equating to 20 basis point to the margin decline. Our asset management team is working closely with our property management teams to drive additional savings and utilities including the following projects among others selective Energy Management System and higher efficiency equipment installation, LED lighting upgrades, irrigation monitoring, and low-flow toilet retrofits.

儘管符合預期，但本季公用事業費用略有上升，相當於利潤率下降了 20 個基點。我們的資產管理團隊正與我們的物業管理團隊密切合作，以推動額外的節約和公用事業，包括以下項目，其中包括選擇性能源管理系統和更有效率的設備安裝、LED 照明昇級、灌溉監測和低流量廁所改造。

Increase in real estate taxes also accounted for 20 basis points of the margin decrease. Reflective of the assessments catching up with the appreciation in value, we aggressively appeal increases in assessments and expect results of those appeals to keep increases to a mid-single digit level in 2017.

房地產稅的增加也導致利潤率下降20個基點。由於評估趕上了價值的升值，我們積極呼籲提高評估，並預計這些呼籲的結果將使 2017 年的增幅保持在中等個位數水準。

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

現在我將把電話轉回給布萊恩，讓他提供更多關於我們財務表現的細節。

Thanks, Krissy. I will quickly highlight a few balance sheet items of note before we get into Q&A. Our balance sheet continues to be one of the strongest in the industry. At the end of June, the Company had $1.3 billion of outstanding debt with a combined weighted average interest rate of 3.4% for the remainder of 2017. Excluding debt issuance costs and fair value adjustments on acquired debt, our debt is comprised of $433 million in property level debt in $876 million of unsecured debt.

謝謝，克麗西。在進入問答環節之前，我將快速強調幾個值得注意的資產負債表項目。我們的資產負債表仍然是業界最強勁的資產負債表之一。截至 6 月底，該公司未償還債務為 13 億美元，2017 年剩餘時間的綜合加權平均利率為 3.4%。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 4.33 億美元的房地產債務和 8.76 億美元的無擔保債務。

In July, the Company entered into an unsecured $85 million seven-year term loan. The net proceeds from the term loan were used to pay down borrowings on the Company's revolving credit facility. In conjunction with the term loan, we also entered into an interest rate swap agreement to effectively fix the interest rate on $75 million of the $85 million term loan at 3.76%. Our undrawn capacity on our unsecured credit facilities after completing the term loan was approximately $340 million. Also after completing the term loan, three-fourths of our debt is effectively fixed rate.

7 月份，該公司簽訂了一項 8,500 萬美元的七年期無擔保貸款。定期貸款的淨收益用於償還公司循環信貸額度的借款。結合定期貸款，我們還簽訂了一項利率互換協議，將 8,500 萬美元定期貸款中 7,500 萬美元的利率有效地固定在 3.76%。完成定期貸款後，我們的無擔保信貸額度未提取額度約為 3.4 億美元。此外，在完成定期貸款後，我們的四分之三的債務實際上是固定利率。

Continuing our objective of maintaining our hotels in a relevant and competitive position in their market, during the first six months of 2017 we invested approximately $24 million in carefully timed and effectively managed renovations. And plan to spend an additional $35 million to $45 million during the remainder of 2017. While we utilize our scale to reduce total renovation costs, the scope of each renovation is tailored to the specific needs of the asset and its competitive positioning within a market.

為了繼續實現保持酒店在市場上具有相關性和競爭力的目標，我們在 2017 年上半年投資了約 2,400 萬美元，用於精心安排時間和有效管理的翻新工程。並計劃在 2017 年剩餘時間內再支出 3,500 萬至 4,500 萬美元。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定位量身定制的。

Although we had no activity in the second quarter, the Company continues to add employees both in [aftermarket] common share offering and a share repurchase program that provide for opportunistic share issuances or share repurchases in open market transactions. The flexibility of these programs allow us to further enhance shareholder returns by issuing 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 or to repurchase shares if they trade at a level that makes the purchase of our own shares significantly more attractive than asset opportunity.

儘管我們在第二季度沒有任何活動，但公司繼續透過[售後]普通股發行和股票回購計畫增加員工，以便在公開市場交易中機會性地發行股票或回購股票。這些計劃的靈活性使我們能夠在市場條件合適時發行股票，從而進一步提高股東回報，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，或者在股票交易水平使得購買我們自己的股票比資產機會更具吸引力時回購股票。

Lastly, during the second quarter the Company paid distributions of $0.30 per share to annualize the $1.20 per common share reprints an annual 6.6% yield based on our August 4th closing price of $18.18.

最後，在第二季度，該公司支付了每股 0.30 美元的分配，以每股 1.20 美元的普通股重印年化，根據 8 月 4 日 18.18 美元的收盤價計算，年收益率為 6.6%。

Thank you, for joining us this morning. Despite lower growth prospects in 2017, we continue to position ourselves to effectively increase shareholder value when opportunities present themselves. We will now open the call up for questions.

感謝您今天上午加入我們。儘管 2017 年的成長前景較低，但我們仍將繼續努力，在機會出現時有效地提高股東價值。我們現在開始回答問題。

Thank you. At this time, we'll be conducting a question and answer session. (Operator Instructions) One moment please while we poll for questions. Thank you. Our first question is coming from the line of Ryan Meliker with Canaccord Genuity. Please proceed with your questions.

謝謝。這次，我們將進行問答環節。（操作員指示）請稍等片刻，我們正在調查問題。謝謝。我們的第一個問題來自 Canaccord Genuity 的 Ryan Meliker。請繼續提問。

A couple of quick questions that I had for you. First of all, I apologize if I missed this but you know the reduced guidance is there an impact there tied to the asset sale that's pending right now? Or is that not (inaudible) yet?

我想問您幾個簡單的問題。首先，如果我錯過了這一點，我很抱歉，但您知道減少的指導是否會對目前正在進行的資產出售產生影響？或者說這還不是（聽不清楚）？

A very limited impact.

影響非常有限。

So that's not driving [anything yet]?

那麼這還沒有任何推動作用嗎？

Yes, factoring in a little bit of reduction from Fairfax and a little bit of an increase from Birmingham. They essentially offset.

是的，考慮到費爾法克斯的略微減少和伯明翰的略微增加。它們本質上是抵消的。

Okay, that's helpful. And then one of the things I noticed I'm curious what your take is. It looks like if we look at your year-to-date numbers by and large your comparable Marriott brands are really outperforming your comparable Hilton brands from a topline perspective we kind of look at in the upper mid-scale segment Fairfield Inn really outperforming Hampton Inn. TownePlace really outperforming Home2. Residence Inn outperforming Homewood and then Courtyard and Springhill kind of performing in line with Hilton Garden Inn. Are you seeing any shift in demand trends towards Marriot over Hilton? Or is that just kind of funky for your portfolio specifically and anomalistic for the first half of the year?

好的，這很有幫助。然後我注意到的一件事是我很好奇你的看法是什麼。如果我們從整體上看你們今年迄今的數據，那麼從營收角度來看，你們的同類萬豪品牌的表現確實優於你們的同類希爾頓品牌，我們認為在中高端市場中，費爾菲爾德酒店 (Fairfield Inn) 的表現確實優於漢普頓酒店 (Hampton Inn)。TownePlace 的表現確實優於 Home2。Residence Inn 的表現優於 Homewood，而 Courtyard 和 Springhill 的表現則與希爾頓花園酒店 (Hilton Garden Inn) 一致。您是否發現需求趨勢從希爾頓轉向萬豪了？或者這只是對您的投資組合來說有點奇怪並且是今年上半年的異常現象？

Good morning, Ryan. What we've actually seen for our portfolio is more related to the market mix of the hotels that are in those brands. We're not seeing any overall trend suggesting that there is a shift in demand going from Hilton to Marriott. And the big trend related to the fact that we have more of our demand, the majority of our demand, in the business travel segment is brands like Courtyard and Hilton Garden Inn were both softer because of the timing in the second quarter of the Easter holiday. And brands like Residence Inn as well as even Homewood Suites those are the extended-stay brands who while they do have business travelers they also appeal to leisure travelers and they have a longer-term stay. So they tend to fair even better when you do have some softness in that business travel demand.

早安，瑞安。我們實際上看到的投資組合與這些品牌旗下飯店的市場組合更為相關。我們沒有看到任何表明需求從希爾頓轉向萬豪的總體趨勢。與我們在商務旅行領域的需求增加（大部分需求）相關的大趨勢是，由於正值復活節假期的第二季度，萬怡酒店和希爾頓花園酒店等品牌的業績均有所疲軟。而像 Residence Inn 和 Homewood Suites 這樣的品牌都是長住飯店品牌，它們不僅有商務旅客，而且也吸引休閒旅客，而且他們的住宿時間較長。因此，當商務旅行需求確實出現疲軟時，他們的表現往往會更好。

Home2 Suites also is a very strong brand for us. With the ramp of the Atlanta Home2 impacts the year-over-year comparison there. At that hotel we still feel that there's opportunities to improve in RevPAR. So their RevPAR for the second quarter was approximately, I think it was, $95 which is lower than the average for the portfolio.

Home2 Suites 對我們來說也是一個非常強大的品牌。隨著亞特蘭大 Home2 的崛起，其同比變化也產生了影響。我們覺得那家飯店的每間可用客房收入 (RevPAR) 仍有提升的空間。因此，我認為他們第二季的 RevPAR 大約為 95 美元，低於投資組合的平均值。

Okay, that's helpful. Thanks, Krissy. And then one last one for you, Krissy. Just looking at the margin guidance change. It looks like you lowered the bottom end of the margin guidance without the lowering of the RevPAR guidance. Just can you give us some color on what you guys are seeing and what's concerning you? I know that you held the investor day back in March and kind of touting the asset management capabilities and your ability to move more quickly and be faster as things are starting to shift. But here it seems like you're lowering the margin assumptions while maintaining almost entirely your RevPAR outlook [other than a 50 bid drop] at the high end.

好的，這很有幫助。謝謝，克麗西。最後，克麗西，我要告訴你一個好消息。只看一下保證金指導的變化。看起來您降低了利潤率指導的底線，但沒有降低 RevPAR 指導。您能否向我們介紹一下您所看到的情況以及您所擔心的問題？我知道您在三月舉辦了投資者日活動，並大力宣傳資產管理能力以及隨著情況開始轉變而更迅速地採取行動的能力。但在這裡，您似乎降低了利潤率假設，同時幾乎完全維持了 RevPAR 前景（除 50 個出價下降外）處於高端。

Yes, Ryan, that's primarily because we expect, as I mentioned in my comments, we expect more of our RevPAR growth to actually come from or less rate growth than we originally had anticipated which leads to lower margins. But also a shift in business to leisure travel as we replace some of the business travel. The leisure traveler tends to be a little bit less profitable. They tend to have multiple occupants so that increases cost a little bit as well as we haven't seen a significant pickup in acquisition costs or travel agent commissions yet. But we are cognizant of as we look towards continuing to replace that business traveler that that could drive additional acquisition costs.

是的，Ryan，這主要是因為我們預計，正如我在評論中提到的那樣，我們預計 RevPAR 的成長實際上將來自房價成長，或低於我們最初的預期，這會導致利潤率下降。但隨著我們取代部分商務旅行，商務旅行也轉向休閒旅行。休閒遊客的利潤往往較低。他們往往有多個住戶，因此成本會稍微增加，而且我們還沒有看到收購成本或旅行社佣金的顯著上升。但我們意識到，當我們考慮繼續取代商務旅客時，這可能會帶來額外的收購成本。

So really the main thing is what I highlighted previously. That labor and real estate taxes continue to trend above inflationary levels while the remainder of the expenses are below. And then to go into a little bit more detail on the labor software piece, we have been doing very extensive testing. And most of our management companies have tested one to two properties. So we wanted to make sure during the testing phase that we got the process right including making sure that we're verifying all the standards that are being input into the system to make sure that we're actually tracking and holding the management companies and the teams accountable to benchmark standards.

所以真正重要的是我之前強調的內容。勞動力和房地產稅繼續高於通膨水平，而其餘支出則低於通膨水平。然後更詳細地介紹勞動力軟體部分，我們已經進行了非常廣泛的測試。我們的大多數管理公司都測試了一到兩處房產。因此，我們希望在測試階段確保流程正確，包括確保我們驗證輸入系統的所有標準，以確保我們確實在追蹤並讓管理公司和團隊對基準標準負責。

As I mentioned, it'll be September and October of this year that we will be rolling that out on a wider basis. And from that we expect to see benefits of a reduction in overtime, better adherence to standards. We are working with our teams to roll out some additional incentives so that employees can share in the savings for achieving productivity savings and better tracking of turnover and associated costs.

正如我所提到的，我們將在今年九月和十月廣泛推行這項舉措。由此我們期望看到減少加班、更好遵守標準的好處。我們正在與我們的團隊合作推出一些額外的激勵措施，以便員工可以分享節省的收益，從而實現生產力節約並更好地追蹤營業額和相關成本。

So what we're seeing more of now is that our managers in certain markets as the supply has picked up and the unemployment is low that we've had to, in many case, increase wages. And the increased wages in the short term are negatively impacting margins. But we believe in the longer term once that settles out that we will see reduction in training and turnover costs. So we are really estimating that most of the impact of the mitigation of the increases because of the rollout later in the year, we will see and budget for that in 2018.

因此，我們現在看到的更多情況是，由於供應增加且失業率較低，我們在某些​​市場的經理在許多情況下不得不提高工資。短期內工資上漲對利潤率產生了負面影響。但我們相信，從長遠來看，一旦解決這個問題，我們將看到培訓和人員流動成本的降低。因此，我們實際上估計，由於今年稍後推出的措施，增加的緩解措施的大部分影響，我們將在 2018 年看到並編制預算。

(Operator Instructions) Our next question is from the line of Michael Bellisario with Robert W. Baird, please proceed with your questions.

（操作員指示）我們的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)，請繼續您的提問。

Just want to focus on 2Q for a second, can you give us a sense of how the top line and bottom line perform versus your internal expectations not just that I know you had telegraphed that it would be the weakest quarter of the year from a growth perspective, but maybe the absolute dollar amount topline and bottom line versus your budgets?

只想暫時關註第二季度，您能否讓我們了解營收和利潤與您的內部預期相比表現如何？我知道您已經表示，從成長角度來看，這將是今年最疲軟的季度，但也許營收和利潤的絕對金額與您的預算相比如何？

The main miss of expectations or slight miss of expectations related to topline which then flow to the bottom line. But we knew April was going to be soft obviously, and then May was stronger. June came up a little bit short. We did see positive impact from the Porter Ranch going away. The year-over-year disparity going away. So L.A., the Los Angeles, market did improve, and it was solid in the mid-single digits in June.

主要的未達預期或輕微的未達預期與營業收入有關，然後影響到利潤。但我們知道四月的銷售顯然會比較疲軟，而五月的銷售會比較強勁。六月有點短。我們確實看到了波特牧場消失的正面影響。逐年差距正在消失。因此，洛杉磯市場確實有所好轉，六月的成長率穩定在個位數左右。

But that market that I mentioned in my commentary, Omaha, Austin, and Dallas from the beginning of the quarter to the end of the quarter softened a little bit more than expected. And Omaha was really the loss of the [swim trials] year over year impacted the last week of June and the first week of July. Plus there was a less favorable draw in college World Series teams which means that we had a little bit more of the losers versus the winners which impacted our share. And our teams felt like they could replace more of the [swim trial] business than they ultimately did.

但我在評論中提到的奧馬哈、奧斯汀和達拉斯市場從本季初到本季末的疲軟程度略高於預期。而奧馬哈確實是[游泳選拔賽]逐年失利的體現，對六月的最後一周和七月的第一周產生了影響。此外，大學世界大賽球隊的抽籤情況不太有利，這意味著我們的失敗者數量略多於勝利者數量，這影響了我們的份額。我們的團隊覺得他們可以取代更多[游泳試驗]的業務，但最終卻沒有。

Austin, and I mentioned that one as well, is one of the markets where you're still seeing demand growth, but the supply percentage increase is the largest of any of our markets. And we did have, and I didn't elude to this in my comment, but we also did have FEMA business in house year over year that was close to 100,000 in June that we had last year. That was the additional supply we weren't able to replace.

我也提到奧斯汀，它是需求仍在成長的市場之一，但供應百分比增幅是我們所有市場中最大的。我們確實有，而且我在我的評論中沒有迴避這一點，但我們也確實有與 FEMA 內部開展的業務，與去年相比，6 月份的業務量接近 100,000。這是我們無法替換的額外供應。

We do think that there's some market share opportunities even though that particular track is a tough track. So we're working with our management team on that. And then Dallas also is a market where this year we expect demand to be a little bit down. As I mentioned, the [city] aren't as robust this year, but looks good going forward. And the supply is opening in advance of all the great demand generators that are coming in. So Austin and Dallas we would expect a continued softness into Q3. Omaha should get a little bit better in August.

我們確實認為，儘管這條特定的賽道很艱難，但仍存在一些市場份額機會。因此，我們正在與管理團隊合作解決這個問題。我們預計今年達拉斯市場的需求也會略有下降。正如我所提到的，這個城市今年的發展並不那麼強勁，但未來前景看好。在所有巨大需求產生者的到來之前，供應就已經提前開放了。因此，我們預計奧斯汀和達拉斯的經濟成長在第三季將繼續疲軟。奧馬哈八月的情況應該會好一些。

We have a Boeing project, a piece of business, that is helping us out. Just to give you a little bit more clarify, as we look to the third quarter we would expect July did start off soft for us. The first week was very soft with July 4 holiday moving to Tuesday. So we did see quite a bit of impact on business travel. We expect August to be stronger.

我們有一個波音項目，這是一項業務，它正在幫助我們。為了讓您更加清楚，展望第三季度，我們預計 7 月的開局對我們來說確實比較疲軟。第一週的生意非常清淡，7 月 4 日的假期改到了星期二。因此，我們確實看到商務旅行受到了相當大的影響。我們預計八月份將會更加強勁。

But September we have less visibility on September. We expect to have a little bit less of an impact from the Jewish holiday shift than some of our peers that may be more exposed to convention and urban markets. We will have some impact. So for the third quarter, we would expect to be towards the lower end of our revised full-year range. But in the fourth quarter, we would expect to be in the higher end of our revised full-year range.

但 9 月我們對 9 月的了解較少。我們預計，與一些可能更多地受到會議和城市市場影響的同行相比，猶太節日轉變對我們造成的影響會更小。我們會產生一些影響。因此，對於第三季度，我們預計其業績將接近全年修正範圍的低端。但我們預計第四季的業績將處於全年修正區間的高端。

Got it. Thanks, that's very helpful. But I guess it sounds like it was a slight shortfall on the topline that then led to a slight shortfall in the bottom line too. You kind of held the margins but top line was [down].

知道了。謝謝，這非常有幫助。但我想這聽起來像是營業額的輕微短缺，進而導致了利潤的輕微短缺。你在某種程度上保持了利潤率，但頂線卻[下降]了。

Yes

是的

Okay. And then just kind of on the topic of RevPAR your portfolio RevPAR index in the quarter did you guys gain or lose market share? And how are your hotels holding up to the comp sets respectively?

好的。那麼，關於 RevPAR 的話題，本季你們的投資組合 RevPAR 指數是增加了還是失去了市場佔有率？你們的飯店與競爭對手相比表現如何？

On average for our portfolio we gained 50 basis points in market share. We'd always like it to be more, but we did gain 50 basis points in market share.

我們的投資組合的市佔率平均增加了 50 個基點。我們一直希望能獲得更多，但我們的市佔率確實增加了 50 個基點。

Got it. And then kind of big picture on capital allocation, stocks at $18 bucks today. You mentioned a much more competitive acquisition environment. I guess what needs to happen or how do you think about buy backs today in the context of the comments you made earlier and where the stock price is today?

知道了。然後從資本配置的總體情況來看，今天的股票價格為 18 美元。您提到了更具競爭力的收購環境。我猜想需要發生什麼，或者根據您之前的評論以及今天的股價，您如何看待今天的回購？

So we can continue to look at all of our options that are out there. We would like to be in a position where we've aggressively underwritten a large number of hotel transactions. We can't seem to get there on price. You know we are still trading, looking at it from a share buyback standpoint. We're still trading in line if not slightly better than most of our peers, not all of them but most of them.

因此我們可以繼續研究現有的所有選擇。我們希望能夠積極承保大量酒店交易。我們似乎無法在價格上達成一致。您知道，從股票回購的角度來看，我們仍在交易。我們的交易狀況與大多數同業（不是全部，但大多數）相比仍然相當，甚至略好一些。

If we get in a position where there's a disconnect you know our stock drops and nobody else's does, we would aggressively begin buying back shares. Right now at $18 or so dollars we're probably not quite in that position yet.

如果我們陷入一種脫節的境地，你知道我們的股票下跌而其他人的股票都沒有下跌，我們就會積極開始回購股票。目前價格約為 18 美元，我們可能還沒有達到那個水平。

Thanks. And then just to follow up on your acquisition comment, maybe how far off are you on pricing for deals that you're underwriting that you're not winning?

謝謝。然後只是為了跟進您的收購評論，也許您對您承銷但未贏得的交易的定價有多大偏差？

I mean it varies. I mean we have never really gotten into publicizing cap rates or anything like that. But I mean the sellers have a lot of confidence right now with the number of bidders in the marketplace being able to refinance their debt. Operating results are good. They're uncertain as we've seen in the future a little bit.

我的意思是它有所不同。我的意思是我們從來沒有真正公開過資本化利率或類似的東西。但我的意思是，賣家現在很有信心，因為市場上有大量的競標者能夠為他們的債務進行再融資。經營業績良好。正如我們所見，他們對未來有些不確定。

But as an owner, there's not a whole lot of incentive to sell unless you're getting a really, really top dollar price. And we're just not prepared to overextend ourselves and put ourselves in a position where we can't clearly see it's an accretive transaction. And we've even had some sellers in essence retrade us. We think we're at a reasonable price, and then they come back and increase it 10% or 15%. And then we just have to walk away.

但身為業主，除非你能獲得非常高的價格，否則你沒有太多的動力去出售。我們還沒有準備好過度擴張自己，將自己置於無法清楚地看到這是一項增值交易的境地。甚至有一些賣家實際上與我們進行了重新交易。我們認為價格合理，但他們又把價格提高了 10% 或 15%。然後我們就必須離開。

And, Mike our expectation is that that's not the constant state. What we've found historically is that [in periods of] time like this it behooves us to be patient. As Bryan said, we're continuing to underwrite a tremendous number of deals. Some that are being publically marketed, and some where we've solicited potential sellers directly. You should expect that as the year continues that we will find opportunity to make acquisitions that make sense. Are a accretive benefit within our portfolio.

而且，麥克，我們的期望是，這不是恆定狀態。從歷史經驗來看，在這樣的時期，我們應該保持耐心。正如布萊恩所說，我們正在繼續承保大量交易。有些是公開行銷的，有些是我們直接徵求潛在賣家的。您應該期待，隨著時間的推移，我們將找到進行有意義的收購的機會。是我們投資組合中的一項增值收益。

It sounds like despite the lack of acquisition activity that we see, it's fair to assume that you've been more aggressive in your pursuit in your underwriting recently?

聽起來，儘管我們看到的收購活動不足，但可以合理地假設您最近在承保方面採取了更積極的行動？

In our pursuit, yes. Our underwriting criteria really [hits for me] fairly consistent.

在我們的追求中，是的。我們的承保標準確實[對我來說]相當一致。

Thank you. At this time, I'll turn the floor back to Justin Knight for further remarks.

謝謝。現在，我將把發言權交還給賈斯汀奈特 (Justin Knight)，請他進一步發言。

Thank you for joining us this morning. And thank you again for all of your support. Despite a challenging second quarter we delivered stable operating results and strong margins. While we anticipate continued headwinds from restrained corporate spending and rising labor costs, we have confidence that our broad geographic diversification, exposure to a wide mix of demand generators and focus on select service and extended stay segment of the industry position us to be successful.

感謝您今天上午加入我們。再次感謝大家的支持。儘管第二季充滿挑戰，我們仍然取得了穩定的經營業績和強勁的利潤率。雖然我們預計企業支出受限和勞動力成本上升將繼續帶來不利影響，但我們相信，我們廣泛的地域多元化、對各種需求來源的接觸以及對精選服務和長期住宿行業的關注將使我們取得成功。

We continue to see opportunity within the industry and believe in our strategy to mitigate volatility and increase shareholder value over the long term. We hope that as you travel you'll take opportunity to stay with us at one of our hotels.

我們持續看到產業內的機遇，並相信我們的策略能夠長期減輕波動並增加股東價值。我們希望您在旅行時能有機會入住我們的某家飯店。

And on a personal note, I'd like to thank Bryan and Krissy for picking up some of the slack for me as I continue my recovery. I anticipate being back full time here in the very near future, and look forward to continuing to work with them.

就我個人而言，我要感謝 Bryan 和 Krissy 在我康復期間為我分擔了一些壓力。我預計不久的將來就能全職回來這裡，並期待繼續與他們合作。

Have a great day. I look forward to talking to you soon.

祝你有美好的一天。我期待很快與您交談。

This concludes today's conference. Thank you for your participation. You may now 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了。