Apple Hospitality REIT Inc (APLE) 2017 Q4 法說會逐字稿

Greetings, and welcome to the Apple Hospitality REIT Fourth Quarter and Year-End Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Apple Hospitality REIT 第四季和年終收益電話會議。 （操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce your host, Ms. Kelly Clarke, Vice President of Investor Relations. Thank you, you may begin.

現在我很高興介紹您的主持人，投資者關係副總裁凱利克拉克女士。謝謝，你可以開始了。

Thank you, and good morning. We welcome you to Apple Hospitality REIT's Fourth Quarter and Full Year 2017 Earnings Call on this, 23rd day of February 2018.

謝謝，早安。歡迎您參加 Apple Hospitality REIT 於 2018 年 2 月 23 日舉行的 2017 年第四季和全年財報電話會議。

Today's call will be based on the fourth quarter and full year 2017 earnings release, which was distributed yesterday afternoon. 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. Participants should carefully review our financial statements and the notes thereto as well as the risk factors described in Apple Hospitality's 2017 Form 10-K and other filings with the SEC. Any forward-looking statements 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.

今天的電話會議將基於昨天下午發布的 2017 年第四季和全年財報。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。參與者應仔細審查我們的財務報表及其附註以及 Apple Hospitality 2017 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 所做的任何前瞻性陳述僅代表今日的觀點，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, Justin Knight, our Chief Executive Officer; Kristi Gathright, our Chief Operating Officer; and Bryan Peery, our Chief Financial Officer, will provide an overview of our results for the fourth quarter and full year of 2017, and an outlook for the sector and for the company. Following the overview, we will open the call for Q&A.

今天上午，我們的執行長賈斯汀奈特 (Justin Knight)； Kristi Gathright，我們的營運長；我們的財務長 Bryan Peery 將概述我們 2017 年第四季和全年的業績，以及該行業和公司的前景。概述之後，我們將開始問答環節。

At this time, it is 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)。

Thank you, Kelly. Good morning, and welcome to Apple Hospitality REIT's Fourth Quarter and Full Year 2017 Earnings Call.

謝謝你，凱利。早安，歡迎參加 Apple Hospitality REIT 2017 年第四季和全年財報電話會議。

Bolstered by relief and restoration efforts related to storms that occurred in the third quarter, revenue during the fourth quarter exceeded expectations for the hotel industry overall. Our portfolio benefited from particularly strong operations in South Texas and in a number of our Florida markets. We achieved comparable hotels RevPAR growth of 3.5% during the quarter and 1.6% for the year. Although increased occupancy and wage pressure, driven largely by low unemployment, produced higher variable costs for our portfolio. We achieved a strong comparable hotels -- adjusted hotel EBITDA margin of 37.8% for the year.

受第三季風暴救災和復原工作推動，第四季的收入超過了旅館業整體的預期。我們的投資組合受益於南德克薩斯州和佛羅裡達州多個市場的強勁營運。本季度，我們實現了可比飯店 RevPAR 成長 3.5%，全年實現 1.6%。儘管入住率和工資壓力的增加（主要受低失業率的推動）為我們的投資組合帶來了更高的變動成本。我們實現了強勁的可比飯店—全年調整後飯店 EBITDA 利潤率為 37.8%。

Overall, despite stock market volatility in recent weeks, sentiment regarding the broader U.S. economy continues to be positive. For the full year 2018, we are forecasting comparable hotels RevPAR growth of 0% to 2%, comparable hotels adjusted hotel EBITDA margin of 36.8% to 37.8%, and adjusted EBITDA of $437 million to $457 million.

總體而言，儘管最近幾週股市波動，但對美國整體經濟的情緒仍然保持樂觀。就 2018 年全年而言，我們預測可比飯店 RevPAR 成長率為 0% 至 2%，可比飯店調整後 EBITDA 利潤率為 36.8% 至 37.8%，調整後 EBITDA 為 4.37 億美元至 4.57 億美元。

Our 2018 comparable hotels RevPAR growth guidance assumes a steady-state economy and while we have yet to see meaningful change in trends directly impacting business at our hotels, we are optimistic that continued economic strength, infrastructure spending and consumer confidence will provide an environment where we could see incremental upside.

我們對 2018 年可比飯店 RevPAR 成長的預測是基於經濟穩定狀態的假設，雖然我們尚未看到直接影響我們飯店業務的趨勢發生重大變化，但我們樂觀地認為，持續的經濟實力、基礎設施支出和消費者信心將為我們提供一個可以看到逐步上升的環境。

With 241 Marriott- and Hilton-branded hotels diversified across 88 U.S. markets and the strength and flexibility of our balance sheet, we are confident we are well positioned for any economic environment.

憑藉遍布美國 88 個市場的 241 家萬豪和希爾頓品牌酒店以及強勁而靈活的資產負債表，我們有信心在任何經濟環境下都佔據有利地位。

So the balance is varied by market. Supply and demand generally grew in tandem nationally in 2017 in response to continued development cost increases, which have outpaced revenue growth in most markets, we are beginning to see the pace of new construction starts moderate. Just under 62% of our hotels expect 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, a slight decline from the third quarter.

因此，平衡隨市場而變化。 2017年，由於開發成本持續上漲（大多數市場開發成本的上漲速度超過了營收的上漲速度），全國的供應和需求整體同步成長，我們開始看到新開工速度放緩。我們有近 62% 的飯店預計在未來 18 個月內，其 5 英里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，這一比例較第三季度略有下降。

Additionally, according to Smith Travel Research, rooms under construction declined from prior year for the first time since the recovery from the recession began. Each market is different and there continues to be significant supply under development. However, absent a significant decrease in construction costs or a significant reacceleration in the economic growth, we anticipate the industry will continue to see a deceleration in new construction starts over the next several years.

此外，根據史密斯旅遊研究公司的數據，自經濟從衰退中復甦以來，在建客房數量首次較去年同期下降。每個市場都有所不同，並且仍有大量供應處於開發中。然而，如果建築成本沒有大幅下降或經濟成長沒有大幅加速，我們預計未來幾年該行業新開工量將繼續減速。

We are pleased to have accessed the equity market in the fourth quarter through our ATM program, issuing approximately 7 million shares for gross proceeds of approximately $140 million at an average sales price of $19.55 per share. More importantly, we were able to efficiently deploy these proceeds into acquisitions that we believed locked in value for our shareholders.

我們很高興在第四季度透過 ATM 計劃進入股票市場，發行了約 700 萬股股票，總收益約為 1.4 億美元，平均售價為每股 19.55 美元。更重要的是，我們能夠有效地將這些收益部署到我們認為能為股東鎖定價值的收購中。

Since the beginning of the fourth quarter, we acquired a total of 5 hotels for a combined purchase price of approximately $168 million, expanding our geographic footprint and further exposing the portfolio to diverse demand generators. Each of these acquisitions is consistent with our strategy of owning high-quality select service hotels in strong markets.

自第四季初以來，我們總共收購了 5 家飯店，總收購價約為 1.68 億美元，擴大了我們的地理覆蓋範圍，並進一步將投資組合暴露給不同的需求來源。每一次收購都符合我們在強勁市場中擁有高品質精選服務飯店的策略。

We have 2 additional hotels under contract with anticipated closings later in 2018: a Hampton Inn & Suites in Phoenix, and a Home2 Suites in Orlando. Similar to our other newly built hotel acquisitions, we entered into fixed-price contracts with trusted developers for these projects prior to construction, which in a rising construction cost environment adds additional value immediately upon our acquisition. Although the acquisition market remains tight, we continuously underwrite hotels that would be a strong fit for our portfolio.

我們還有另外 2 家酒店正在簽約中，預計將於 2018 年下半年關閉：鳳凰城的 Hampton Inn & Suites 和奧蘭多的 Home2 Suites。與我們收購的其他新建酒店類似，我們在施工前與值得信賴的開發商就這些項目簽訂了固定價格合同，在建築成本不斷上升的環境下，這在我們收購後立即增加了額外的價值。儘管收購市場依然緊張，我們仍持續承保那些非常適合我們投資組合的飯店。

In 2017, the company completed the opportunistic disposition of 2 of our full-service hotels, the 224-room Hilton in Dallas and the 316-room Marriott in Fairfax, Virginia; further strengthening our concentration in the select service segment of the industry. We will continue to closely monitor the profitability of our hotels, market conditions and capital requirements and seek disposition opportunities where we feel pricing is appropriate and proceeds can be redeployed into assets which better fit our long-term strategy.

2017年，公司完成了對兩家全方位服務酒店的機會性處置，即位於達拉斯的擁有224間客房的希爾頓酒店和位於弗吉尼亞州費爾法克斯的擁有316間客房的萬豪酒店；進一步加強我們在行業精選服務領域的集中度。我們將繼續密切關注酒店的獲利能力、市場狀況和資本需求，並尋求我們認為定價合適的處置機會，並將收益重新部署到更符合我們長期策略的資產中。

We are pleased to have recently added Blythe McGarvie to our Board of Directors. Blythe is an exceptional individual with board financial, public markets and board experience. Her appointment increases the size of our board from 7 to 8 members, and we look forward to her perspective and input.

我們很高興最近將 Blythe McGarvie 加入我們的董事會。布萊斯是一位傑出的人才，擁有董事會財務、公開市場和董事會經驗。她的任命使我們的董事會規模從 7 名成員增加到 8 名，我們期待她的觀點和意見。

The strength of our balance sheet continues to be an important differentiating factor for the company. With debt to adjusted EBITDA at under 3x, our balance sheet is among the strongest in the industry.

我們資產負債表的強勁實力仍是公司的重要差異化因素。我們的債務與調整後 EBITDA 比率低於 3 倍，資產負債表是業界最強勁的之一。

As the largest publicly traded REIT focused on the select service segment of the lodging industry, the size, scale and geographic diversification of our portfolio provides purchasing economies, operational efficiencies and unparalleled access to performance data. Combined with our strong flexible balance sheet and capital allocation philosophy, we are well positioned to enhance long-term value for our shareholders in a variety of economic scenarios.

作為專注於住宿業精選服務領域的最大公開交易房地產投資信託基金 (REIT)，我們投資組合的規模、範圍和地理多樣化提供了購買經濟性、營運效率和無與倫比的績效數據存取能力。結合我們強大而靈活的資產負債表和資本配置理念，我們有能力在各種經濟情勢下為股東提升長期價值。

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. We were excited to end 2017 on a high note. We estimate that incremental demand from the post-hurricane recovery efforts boosted RevPAR growth by approximately 150 basis points in the quarter and 50 basis points for the year. Factoring in our estimated 40 to 50 basis points of negative impact from the Porter Ranch comp, the net impact of these onetime events was essentially a wash for the year.

謝謝你，賈斯汀。我們非常高興能夠以高調的方式結束 2017 年。我們估計，颶風過後復原工作帶來的增量需求將推動本季 RevPAR 成長約 150 個基點，全年成長 50 個基點。考慮到我們估計的 Porter Ranch 同類產品帶來的 40 至 50 個基點的負面影響，這些一次性事件對全年的淨影響基本上是抵消。

While carryover post-hurricane demand has helped mitigate the loss of Super Bowl business for the first quarter in our Houston area hotels, our hotel teams are reporting that the disaster recovery business is diminishing. However, we are also expecting a modest improvement in energy-related business over the course of the year. Strength in the Southern Florida market has persisted into 2018 with elevated government spending and strong leisure business, both group and transient. Our occupancy grew 110 basis points in the fourth quarter with rate growth of 1.9%.

雖然颶風過後延續的需求有助於緩解我們休士頓地區飯店第一季超級盃業務的損失，但我們的飯店團隊報告稱，災難復原業務正在減少。不過，我們也預期今年能源相關業務將略有改善。由於政府支出增加以及團體和短期休閒業務的強勁成長，南佛羅裡達州市場的強勁勢頭持續到了 2018 年。第四季我們的入住率成長了 110 個基點，房價成長率為 1.9%。

Drilling down into segmentation. Our corporate-negotiated mix improved slightly in the quarter versus the year-to-date trend. The other discount segment continues to have the highest growth, which is consistent with the relative strength in leisure travel.

深入細分。與年初至今的趨勢相比，本季我們公司協商的組合略有改善。另一個折扣細分市場持續保持最高成長，這與休閒旅遊的相對強勢一致。

If there is an acceleration in business travel, our hotel revenue team are well positioned to quickly manage the mix to reduce discount and drive higher-rated corporate and retail business. Our outlook assumes relatively stable demand trends derived from our very thorough, detailed budget process. And a slight uptick in supply consistent with industry projections.

如果商務旅行加速，我們的飯店收入團隊將能夠快速管理組合，減少折扣並推動更高評級的企業和零售業務。我們的展望假設需求趨勢相對穩定，這源自於我們非常徹底、詳細的預算流程。供應量略有上升，與產業預測一致。

We expect the fourth quarter comp to be our most challenging due to the temporary hurricane-related lifts we experienced in 2017. While market performance continues to be varied across our broadly diversified portfolio, the trends have been consistent in terms of the number of hotels growing in RevPAR. Approximately 62% of our hotels grew RevPAR in the quarter as compared to 61% in the prior quarter and 59% for the year. We have provided additional detail on our individual market performance in our earnings release.

由於 2017 年經歷了颶風帶來的短暫成長，我們預計第四季的業績將面臨最大挑戰。雖然我們廣泛多元化的投資組合的市場表現持續存在差異，但就 RevPAR 成長的飯店數量而言，趨勢是一致的。本季度，我們約有 62% 的飯店每間可用客房收入 (RevPAR) 有所成長，而上一季度這一數字為 61%，全年這一數字為 59%。我們在收益報告中提供了有關我們各個市場表現的更多詳細資訊。

Pivoting to profitability. We achieved a solid EBITDA margin of 34.9% for the quarter and 37.8% for the year, just above the high end of our range. With continued focus on maximizing productivity and minimizing turnover in a tight labor market, we were pleased to see, for the second quarter in a row, wage increases for occupied rooms grew less than 3%. Wages increased 2.4% per occupied room for the quarter and 3.8% per occupied room for the year, accounting for 20 and 50 basis points of margin impact, respectively.

轉向盈利。我們本季的 EBITDA 利潤率達到 34.9%，全年的 EBITDA 利潤率達到 37.8%，略高於我們預期的高端。在緊張的勞動力市場中，我們繼續注重最大限度地提高生產力和最大限度地減少人員流動，我們很高興地看到，連續第二個季度，已入住客房的工資漲幅不到 3%。本季每間入住客房的薪資上漲了 2.4%，全年每間入住客房的薪資上漲了 3.8%，分別對利潤率產生了 20 個基點和 50 個基點的影響。

Increases in incentive and other benefits resulted in 30 basis points of margin impact for the quarter and a 10-basis point impact for the year. The majority of the increase was from properties reaching annual incentive targets. Total payroll costs increased 3.7% for occupied room in the quarter and 3.6% for the year.

獎勵和其他福利的增加導致本季利潤率影響 30 個基點，全年利潤率影響 10 個基點。大部分成長來自於達到年度激勵目標的房產。本季已入住客房的總薪資成本上漲了 3.7%，全年上漲了 3.6%。

Successful appeal efforts helped mitigate real estate tax increases, which were 5% for the quarter and 4% for the year. We expect those labor costs and real estate taxes to continue to pressure margins. And as always, we are diligently focused on opportunities to mitigate cost increases.

成功的上訴努力有助於緩解房地產稅的增長，本季房地產稅增長為 5%，全年房地產稅增長為 4%。我們預計勞動成本和房地產稅將繼續給利潤率帶來壓力。像往常一樣，我們努力尋找機會來減輕成本增加。

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'll quickly summarize a few numbers for the quarter and full year of 2017.

謝謝，克麗西，早安。我將快速總結一下 2017 年季度和全年的一些數字。

Total revenue increased to $290 million for the fourth quarter and $1.2 billion for the full year. Adjusted EBITDA was $93 million and $439 million, respectively. And modified FFO per share declined slightly to $0.36 for the fourth quarter and $1.74 for the full year.

第四季總營收增至 2.9 億美元，全年總收入增至 12 億美元。調整後的 EBITDA 分別為 9,300 萬美元和 4.39 億美元。第四季每股調整後 FFO 略微下降至 0.36 美元，全年每股調整後 FFO 略微下降至 1.74 美元。

G&A expenses increased in the fourth quarter and full year by $3.6 million for the fourth quarter and $9.3 million for the full year from the same periods of 2017. Excluding $0.5 million as a full year increase, increases were due to fees and cost reimbursements from Apple Ten prior to the merger in September 2016. The majority of the remaining increase for the year-end and the quarter was due to performance under the company's incentive plan.

與 2017 年同期相比，第四季和全年的 G&A 費用增加了 360 萬美元，全年增加了 930 萬美元。不包括全年增加的 50 萬美元，增加的部分是由於 2016 年 9 月合併前 Apple Ten 的費用和成本補償。年末和本季剩餘的成長大部分是由於公司激勵計劃下的業績。

With approximately 80% of senior management's compensation based on operational and shareholder return metrics, the payoff can vary from year to year. Based on the company's performance in 2016, the payout under the plan was approximately 30% of target, and in 2017 it was 85%. Consistent with our overall focus on cost-effective operations, our G&A expenses remain one of the lowest in the industry at 2% of revenue and less than 50 basis points of market cap.

大約 80% 的高階主管的薪酬是根據營運和股東回報指標決定的，因此薪酬每年都會有所不同。根據該公司 2016 年的業績，該計劃的派息額約為目標的 30%，2017 年則為 85%。與我們整體注重成本效益營運一致，我們的一般及行政費用仍然是業內最低的之一，佔收入的 2% 且不到市值的 50 個基點。

At the end of the year, the company had $1.2 billion of outstanding debt with a combined weighted average rate of 3.6% for 2018. Excluding debt issuance costs and fair value adjustments on acquired debt, our debt is comprised of $457 million in property-level debt, $767 million of unsecured debt. Overall, approximately 80% of our debt is fixed rate. Our undrawn capacity on our unsecured credit facilities after completing the transactions earlier this month was approximately $340 million.

截至年底，該公司 2018 年未償還債務為 12 億美元，綜合加權平均利率為 3.6%。不包括債務發行成本和收購債務的公平價值調整，我們的債務包括 4.57 億美元的房地產債務和 7.67 億美元的無擔保債務。整體而言，我們約 80% 的債務是固定利率。本月初完成交易後，我們的無擔保信貸額度尚未提取的額度約為 3.4 億美元。

During 2017, we invested $69 million in renovations and property improvement. Consistent reinvestment in our hotels continues to be a key component of our strategy to maintain competitive positioning across our markets, yield strong guest satisfaction and loyalty, provide more predictable future capital needs, and mitigate the impact of competing new supply within our individual markets. We have similar projects planned for 2018 and anticipate spending $70 million to $80 million, which includes various scheduled renovation projects for 30 to 35 properties.

2017年，我們投資了6,900萬美元用於翻修和物業改善。持續對飯店進行再投資仍然是我們策略的重要組成部分，以保持在各個市場的競爭地位，獲得較高的客人滿意度和忠誠度，提供更可預測的未來資本需求，並減輕我們各個市場內競爭性新供應的影響。我們計劃在 2018 年開展類似的項目，預計花費 7,000 萬至 8,000 萬美元，其中包括針對 30 至 35 處房產的各種預定翻新項目。

During the fourth quarter, we recorded a $38 million noncash impairment charge related to our New York Renaissance Hotel. The hotel has been and is anticipated to be impacted by a number of factors, including a decline in hotel market conditions in the city, continued anticipated new supply and a loss of retail tenant at the property with an extended period of time and costs required to re-lease the available space.

在第四季度，我們記錄了與紐約文藝復興酒店相關的 3800 萬美元的非現金減損費用。該酒店已經並預計將受到多種因素的影響，包括城市酒店市場狀況的下滑、預計新供應的持續增加以及該物業零售租戶的流失，以及重新租賃可用空間所需的時間和成本的增加。

The factors are magnified by the fact that the property is on a relatively short-term land lease. Although we are disappointed in the performance of this hotel and continue to work aggressively on opportunities to improve its positioning and profitability, it is important to re-emphasize that it is inconsistent with our overarching strategy from 1 of only 3 remaining full-service hotels within our portfolio.

由於該房產屬於相對短期的土地租賃，這些因素被放大了。儘管我們對這家酒店的表現感到失望，並將繼續積極尋找機會改善其定位和盈利能力，但必須再次強調的是，它與我們投資組合中僅存的三家全方位服務酒店之一的總體戰略不一致。

As we've mentioned previously, it is our intention to opportunistically dispose off these 3 hotels to be 100% focused on the select service sector of the industry. During 2017, the company paid distributions of $0.10 per month or $1.20 per share for the full year. This distribution rate represents an annual 6.6% yield based on our February 20 closing price of $18.16.

正如我們之前提到的，我們打算趁機出售這三家酒店，以便 100% 專注於該行業的精選服務領域。 2017 年，該公司支付的分配為每月 0.10 美元或全年每股 1.20 美元。根據我們 2 月 20 日 18.16 美元的收盤價計算，該分配率相當於年收益率 6.6%。

Finally, as we head into proxy season, our Board of Directors just once again approved a proposal to present to shareholders that provides for amending of charter to de-stager our board such that as the current board member's terms expire, newly elected board member's terms would be 1 year. Although we have been unable to achieve the required vote the past 2 years to approve this amendment, we believe it is an important governance provision, and we'll continue to provide shareholders the opportunity to consider the proposal.

最後，隨著我們進入代理季節，我們的董事會剛剛再次批准了一項提交給股東的提案，該提案規定修改章程以減少董事會的任期，這樣當現任董事會成員的任期到期時，新當選的董事會成員的任期將為 1 年。儘管過去兩年我們一直未能獲得批准該修正案所需的投票，但我們認為這是一項重要的治理條款，我們將繼續為股東提供考慮該提案的機會。

Within our overall strategy of providing strong risk-adjusted returns through the investment in high-quality, well-diversified select service hotels, we were successful in 2017 in refining our portfolio, both in makeup and operational performance. We also believe we were able to grow the portfolio accretively, and we are well positioned to continue to produce strong results in the coming year.

我們的整體策略是透過投資高品質、多元化的精選服務酒店來提供強勁的風險調整回報，2017 年我們在結構和營運業績方面均成功優化了我們的投資組合。我們也相信，我們能夠大幅增加投資組合，並且我們有能力在來年繼續取得強勁的業績。

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

感謝您今天上午加入我們。我們現在開始提問。

(Operator Instructions) Our first question comes from the line of Austin Wurschmidt with KeyBanc Capital Markets.

（操作員指示）我們的第一個問題來自 KeyBanc Capital Markets 的 Austin Wurschmidt。

Just wanted to kick off here with the RevPAR guidance forecast. You've talked in the past about taking cues from Marriott and Hilton, and then doing a more detailed property-by-property budgeting process. And so aside from, I guess, the tougher fourth quarter comp that you referenced, what's led you guys to be a little bit more conservative in your forecast for 2018?

我只是想從這裡開始介紹 RevPAR 指導預測。您過去曾談到要藉鏡萬豪和希爾頓的經驗，然後對每家飯店制定更詳細的預算流程。那麼，除了你們提到的更艱難的第四季競爭之外，是什麼導致你們對 2018 年的預測更加保守？

Well, with our geographically diversified portfolio and our brands, you are correct, in the past and consistently we used the upscale industry average as a good benchmark for our portfolio. And if you look at it, with travel, I believe their projected average is 1.8%. CBRE is 0.7%. They actually have factored in a small decline in the fourth quarter related to the excess demand from the hurricanes. With Marriott, they are 1% to 2% for North America. And Hilton is 1% to 3% globally, but they did say that they expect North America to be lower. And as you mentioned, we do have a tough comp in the fourth quarter from the incremental hurricane demand. And in our budget process in those markets, we have very limited visibility, obviously, that far out. So several of those markets' managers are budgeting for a decline year-over-year when we get to that point. Our hope, of course, is that we do see in those markets other dynamics, either a pickup in business travel or continued strength in Miami, for instance, to offset some of that impact. And then for recent trends, we really haven't seen any recent trends that as of yet would make us modify our outlook. We don't feel the late fourth quarter or the early first quarter performance is a good indicator of future business travel trends. There's a lot of noise around holidays, the shifting school calendars and weather. So that's where we got to where we are.

嗯，您說得對，憑藉我們在地域上多元化的投資組合和品牌，我們過去一直將高端行業平均水平作為我們投資組合的良好基準。如果你看一下旅遊業，我相信他們的預期平均值是 1.8%。 CBRE為0.7%。他們實際上已經將第四季度因颶風導致的過度需求造成的小幅下滑考慮在內。萬豪在北美地區的銷售額佔比為 1% 至 2%。希爾頓的全球降幅為 1% 至 3%，但他們確實表示，預計北美的降幅會更低。正如您所提到的，由於颶風需求增加，我們在第四季度確實面臨嚴峻的競爭情況。顯然，在這些市場的預算過程中，我們對未來的了解非常有限。因此，當我們到達那個點時，這些市場的幾位經理都預計銷售額將比去年同期下降。當然，我們希望在這些市場中看到其他動態，例如商務旅行的回升或邁阿密的持續強勁，以抵消部分影響。就最近的趨勢而言，我們確實還沒有看到任何近期趨勢會讓我們改變我們的觀點。我們認為第四季末或第一季初的表現並不能很好地預示未來的商務旅行趨勢。假期、學校日曆的變化和天氣變化都會帶來很多噪音。這就是我們現在的處境。

And Austin, I mentioned in my comments, we base our guidance based on what we're seeing today in the market. I've mentioned several times as we've been on the road and in prior calls, that we feel slightly more optimistic than we did at the same time last year. But until we begin to see that optimism materialize in the form of numbers and specifically business -- transient business at our hotels, we thought it's unwise to set our expectations too high.

奧斯汀，我在評論中提到，我們的指導是基於我們今天在市場上看到的情況。我在路上和之前的電話會議中多次提到，我們比去年同期感覺稍微樂觀一些。但是，直到我們開始看到樂觀情緒以數位形式實現，特別是業務——我們酒店的臨時業務——之前，我們認為將期望值設得太高是不明智的。

I appreciate the thoughtful response. And then next question. You guys announced the 2 new acquisitions in early 2018, the Hampton Inns. And I think you presciently referenced last quarter the remaining focus on strong brands like Hampton, and those do fall within that upper midscale segment. And I'm just curious what your exposure is to leisure today given that you have seen the strength there? And how does that compare to where you'd like to be in the near to medium term?

我很感激您的深思熟慮的回應。接下來是下一個問題。你們在 2018 年初宣布了兩項新收購，即漢普頓酒店。我認為您在上個季度很有先見之明地提到，剩下的重點是漢普頓等強勢品牌，而這些品牌確實屬於中高檔市場。我很好奇，既然您已經看到了休閒領域的實力，那麼您今天對休閒的了解程度如何？這與您近期和中期的期望相比如何？

I -- that's a very good question. I think what you'll find is that we continue to pursue assets with diverse demand generators. The types of assets that we acquire have strong appeal with business travelers. But if you look at the locations where we've recently acquired assets, there are a mix of demand generators to include a higher percentage of leisure than we've had in the past. So Portland, Maine and the 2 Downtown properties, the Beale Street Hampton Inn and the Downtown Atlanta Hampton Inn, have very steady business during the week from business travelers, but have -- are uniquely positioned to benefit from leisure on the weekends, and even sometimes midweek in ways that some of our other assets have not. Given the strength in that sector, I think we've seen an opportunity within our portfolio to increase on the margin our exposure to it. But you shouldn't assume that you would see a radical shift in our overarching strategy. We're talking an increase in exposure of 3% to 5% as being kind of a target to that particular segment of the economy, recognizing, again, that our mainstay will be business travelers.

我——這是一個非常好的問題。我想你會發現我們繼續追求具有多樣化需求產生器的資產。我們收購的資產類型對商務旅客具有強烈的吸引力。但如果你看看我們最近收購資產的地點，你會發現那裡有各種各樣的需求，其中休閒的比例比過去更高。因此，緬因州波特蘭市和市中心的兩家酒店，比爾街漢普頓酒店和亞特蘭大市中心漢普頓酒店，在工作日都有非常穩定的商務旅客業務，而且，它們還具有獨特的優勢，可以從週末的休閒活動中獲益，有時甚至可以從周中休閒活動中獲益，這是我們其他一些酒店所沒有的。鑑於該行業的實力，我認為我們已經看到了在我們的投資組合中增加對該行業的敞口的機會。但你不應該假設你會看到我們的整體策略發生根本性的轉變。我們正在討論將曝光率提高 3% 至 5%，作為針對特定經濟領域的目標，同時再次認識到，我們的主力將是商務旅客。

And then just last one for me. You referenced having the 3 remaining full-service assets, and have talked in the past about ultimately looking to sell those. And just curious what led the decision to tap the ATM program in the fourth quarter instead of continuing down the path of selling assets?

對我來說，這是最後一個。您提到擁有剩餘的 3 項全方位服務資產，並且過去曾談到最終尋求出售這些資產。我很好奇，是什麼促使我們決定在第四季啟動 ATM 項目，而不是繼續出售資產？

And you shouldn't think that those are mutually exclusive for us. So we continue to look for opportunities to dispose off our full-service hotels. And we've highlighted in past calls the unique situation that we see ourselves in. And again, for the record, we do not consider their upper upscale assets, our Embassy Suites to be full-service hotels, because of the unique operations within those hotels. So we're speaking specifically to the 2 remaining Marriott full-service hotels and the 1 Renaissance that we have. But there are unique factors in those markets that may cause us to hold them for a little bit longer. Houston, New York, both markets have been significantly depressed. And Richmond interestingly is a market that's seen significant -- significantly strong performance recently, but isn't necessarily on the radar for a lot of buyers looking for assets. We will look for opportunities there. But specifically on the ATM, we've seen a unique opportunity to be able to issue equity when we see the opportunity to acquire assets at a spread to the implied multiple to that equity. And I think what you should infer from our issuance of equity is that we saw unique opportunity in the market where we could lock in a spread on acquisitions through the price that we're able to issue equity in a way that we felt would be accretive to our shareholders. I think we'll continue to do that where we see that type of opportunity. And continue as well to look at unique and interesting opportunities to dispose off and recycle capital -- dispose off assets and recycle capital that's on our portfolio as well.

你不應該認為這些對我們來說是互相排斥的。因此，我們繼續尋找機會出售我們的全方位服務酒店。我們在過去的電話會議中強調了我們所處的特殊情況。再次聲明，我們不認為他們的高端資產，我們的 Embassy Suites 是全方位服務酒店，因為這些酒店內部的運作方式很獨特。因此，我們特別談到了我們剩下的兩家萬豪全方位服務酒店和一家萬麗酒店。但這些市場中存在一些獨特因素，可能導致我們持有它們更長時間。休士頓、紐約兩地市場均明顯低迷。有趣的是，里士滿市場最近表現強勁，但不一定受到許多尋找資產的買家的關注。我們將在那裡尋找機會。但具體到 ATM 機上，當我們看到以與股權隱含倍數相等的價差收購資產的機會時，我們看到了一個能夠發行股權的獨特機會。我認為，從我們發行股票的行為中，您可以推斷我們在市場上看到了獨特的機會，我們可以透過以我們認為能為股東帶來增值的方式發行股票的價格來鎖定收購價差。我認為，只要我們看到這種機會，我們就會繼續這樣做。並繼續尋找獨特而有趣的機會來處置和回收資本——處置資產並回收我們投資組合中的資本。

Our next question comes from Bryan Maher with FBR.

我們的下一個問題來自 FBR 的 Bryan Maher。

A couple of questions here. On the labor cost, can you talk about maybe where it's more profound in the country than others? Is it city centers? Is it the South? Where are you seeing it most impactful?

這裡有幾個問題。關於勞動成本，您能否談談國內哪些地方的勞動成本比其他地區更為嚴重？是城市中心嗎？是南方嗎？您認為它在哪裡影響最大？

It's pretty much spread all throughout the country. So it's not in any one particular market. We are seeing across the board lower employment driving labor challenges in a good portion of our markets. And as such, we've talked about in the past, we've worked very proactively with our management companies. We've got the majority of our teams on a labor tracking system, which will -- helps us identify overtime [rest] earlier and helps us better schedule. And one of this is -- which is for us this year is to continuing to work on benchmarking -- standard benchmarking and improve performance and utilization of that system. And one of the other opportunities is just we're continuing to work with and support the American Hotel and Lodging Association also in working for a sensible immigration reform, because it's -- you've got wage pressure, but also you've just got the ability to find labor in certain markets has become more difficult.

它幾乎遍布全國各地。所以它並不存在於任何一個特定的市場。我們看到，就業率普遍下降，導致相當一部分市場面臨勞動力挑戰。正如我們過去所討論的那樣，我們與管理公司進行了非常積極的合作。我們大多數團隊都採用了勞動力追蹤系統，這可以幫助我們更早發現加班[休息]並幫助我們更好地安排時間。其中之一就是——我們今年將繼續致力於基準測試——標準基準測試並提高該系統的性能和利用率。另一個機會是我們將繼續與美國酒店和住宿協會合作並支持其推動合理的移民改革，因為你們面臨著薪資壓力，而且在某些市場尋找勞動力的能力也變得更加困難。

Okay. And then on the transaction side. It seems like the fourth quarter you had a few that closed. How should we think about 2018 and kind of your run rate as it relates to what you're out there underwriting? And what you think you can close? I know that you have the 2 under contract. But should we be thinking about it it's 1 or 2 per quarter, or 2 or 3 per quarter? And then as far as the acquisition cost, is $15 million to $30 million kind of the ZIP code that we should be thinking about for the cost of those assets?

好的。然後是交易方面。看起來第四季你已經完成了一些交易。我們應該如何看待 2018 年以及您的運作率與您所承保的業務之間的關係？您認為您可以關閉什麼？我知道您已簽訂了 2 份合約。但我們是否應該考慮每季 1 或 2 個，還是每季 2 或 3 個？那麼就收購成本而言，我們應該考慮這些資產的成本在 1,500 萬到 3,000 萬美元之間嗎？

So our acquisitions are opportunistic. And so our appetite for new acquisitions will depend entirely on opportunities that we see at our cost of capital at that moment. We, as I mentioned, over the past year saw opportunity to issue equity in a way based on opportunities that we're seeing -- that we felt we could lock in value for our shareholders, and we may do that in the coming year. I think given the fact that hotel stocks have traded down slightly and the market for private assets has not moved in tandem, there would need to be a shift in one or the other in order for us to more aggressively pursue that. Then after that you'll see us kind of recycling capital selling into a market where we feel we can achieve strong values and either replacing assets or buying our stock with the proceeds from those sales, again, depending on which of the 2 is the better opportunity at the moment. And I know that's not as specific as what you'd like, but hopefully it's a proper response that helps you understand that we're not going to set a specific target for acquisitions absent those individual deals being accretive for our shareholders. In terms of value for assets, select service assets tend trade in the $15 million to $30 million range. We've acquired assets at prices double that and that's certainly not out of the question. But I think $25 million to $30 million on average is probably a good range for you to be thinking about in terms of individual asset acquisition.

所以我們的收購是機會主義的。因此，我們對新收購的興趣將完全取決於我們當時看到的資本成本機會。正如我所提到的，在過去的一年裡，我們看到了以某種方式發行股票的機會——我們認為我們可以為股東鎖定價值，我們可能會在來年這樣做。我認為，鑑於酒店類股票交易價格略有下跌，而私人資產市場並未同步變動，我們需要在其中一個方面做出轉變，以便我們能夠更積極地追求這一目標。然後，你會看到我們將資本回收到我們認為可以實現強大價值的市場中，然後用這些銷售所得替換資產或購買股票，同樣，這取決於目前哪一​​個是更好的機會。我知道這並不像您想要的那麼具體，但希望這是一個適當的回應，可以幫助您理解，如果這些單獨的交易不能為我們的股東帶來增值，我們就不會為收購設定具體的目標。就資產價值而言，精選服務資產的交易價格通常在 1,500 萬美元至 3,000 萬美元之間。我們以兩倍的價格收購了資產，這當然不是不可能的。但我認為，就個人資產收購而言，平均 2500 萬至 3000 萬美元可能是您可以考慮的一個合理範圍。

Okay. And then just lastly on the Renaissance 57, which is just kind of up the street from us here. How long is left on that land lease on that property? And how do you think about disposing that? And if memory serves me, I think this is, as far as I can recall, maybe the second write-down on that asset, which isn't a bad asset and it's in a good location but I understand it's kind of challenging to you. What are your thoughts there and how long is the land lease?

好的。最後，我們來談談 Renaissance 57，它就在我們這條街的上面。該土地的租賃期限還剩多久？您認為該如何處理這個問題？如果我沒記錯的話，我認為就我所記得，這可能是對該資產的第二次減記，這不是一個壞資產，而且它處於良好的位置，但我知道這對你來說有點挑戰。您對此有何想法？土地租賃期間多長？

So the land lease. Remaining term on the land lease is just under 30 years, which given that plus new supply and the underperformance of the New York market, has created a challenge for us as we look at opportunities to dispose of it. I think in terms of priorities, given the fact that the asset produces negative cash flow for us, I think it's a higher priority for us both from a dispositions standpoint and quite frankly gets a lot of attention from us as you might hope in terms of looking to improve current numbers as well. With the numbers beginning to stabilize in the New York market and potentially over the next a little bit beginning to improve, we're in a much better position to explore opportunities. But you shouldn't think that haven't had conversations or have been looking for opportunities to dispose off that asset.

所以土地租賃。土地租賃的剩餘期限不到 30 年，考慮到這一點，再加上新的供應和紐約市場的表現不佳，這對我們尋找處置機會構成了挑戰。我認為，就優先事項而言，鑑於該資產為我們產生負現金流，我認為從處置的角度來看，這對我們來說是更高的優先事項，而且坦率地說，它得到了我們的很多關注，正如您可能希望的那樣，在尋求改善當前數字方面也是如此。隨著紐約市場的數據開始穩定，並可能在未來一段時間內開始改善，我們將處於更有利的位置來探索機會。但你不應該認為沒有進行過對話或沒有尋找機會處置該資產。

Is extending the land lease just off the table with the owner?

土地所有者是否不可能延長土地租賃期？

It exists as a possibility, but there are costs associated with that.

這是一種可能性，但也存在相關成本。

Our next question comes from Anthony Powell from Barclays.

我們的下一個問題來自巴克萊銀行的安東尼·鮑威爾。

Just a question on supply growth. You mentioned that your hotels are seeing a bit less competitive supply over the prior quarter. Do you expect that to continue going forward or do you expect maybe a spike in '19, given some delays we're seeing in some of the construction activity?

這只是一個關於供應成長的問題。您提到，與上一季相比，貴酒店的供應競爭略有減弱。考慮到我們看到一些建築活動出現延誤，您是否預計這種情況會繼續下去，或者您是否預計 19 年可能會激增？

I -- my expectation is barring -- as I highlighted in my earlier comments, barring a reacceleration -- a significant reacceleration in the economy, which would drive stronger RevPAR growth in individual market or nationally or some kind of reductions in construction costs. The -- I see current trends continuing. And in fact, our expectation would be that we continue to see declines in terms of new construction starts with pipelines stretching out further and further into the future. It's not our expectation that there would be a spike in terms of new supply in our markets over the next couple of years.

我的預期是，正如我在先前的評論中所強調的那樣，除非經濟再次加速，否則經濟將出現顯著的再次加速，這將推動單一市場或全國範圍內的 RevPAR 實現更強勁的增長，或導致建築成本出現某種程度的降低。我看到當前的趨勢仍在繼續。事實上，我們預計，隨著管道建設越來越延伸，新開工數量將繼續下降。我們並不預期未來幾年我們的市場新增供應量會激增。

Got it. And in terms of acquisitions, you've obviously done a lot of kind of ones and twos. Are there any portfolios out there that look interesting to you?

知道了。在收購方面，你們顯然已經做了許多一兩次的收購。有沒有哪些投資組合讓您感興趣？

There are portfolios -- smaller portfolios that are interesting to us. Over the past several years we've underwritten portfolios of a variety of sizes and haven't found the right match for us. There are pros and cons. Obviously, in a portfolio transaction we're able to acquire in scale for a very short period of time. The con is that we're not able to individually select markets and/or assets. And given the size of our portfolio there are advantages to us in being able to handpick assets, which are individually additive to the portfolio as a whole. And I think if you look at the way we've built out our portfolio or adjusted our portfolio through dispositions and acquisitions over the past year, you'll see that we've shifted on the margin our exposure within the portfolio towards certain markets and certain asset types in a way that we think will have long-term value for our shareholders. That's not to say that we won't continue to look at portfolio transactions. But as the more likely scenario on a go-forward basis given what we've look at, is that we'll continue to acquire assets on an individual basis with the thought that in doing so we're continuing to enhance and maintain our portfolio.

有一些投資組合——一些較小的投資組合對我們很感興趣。在過去幾年中，我們承銷了各種規模的投資組合，但尚未找到適合我們的投資組合。有利有弊。顯然，在投資組合交易中，我們能夠在很短的時間內實現大規模收購。缺點是我們不能單獨選擇市場和/或資產。考慮到我們投資組合的規模，我們能夠精心挑選資產，這些資產可以單獨添加到整個投資組合中，從而帶來優勢。我認為，如果您觀察一下我們在過去一年中建立投資組合或透過處置和收購調整投資組合的方式，您會發現，我們已經將投資組合中的曝險轉向某些市場和某些資產類型，我們認為這將為我們的股東帶來長期價值。這並不是說我們不會繼續關注投資組合交易。但根據我們所看到的情況，未來更有可能出現的情況是，我們將繼續單獨收購資產，並認為這樣做可以繼續增強和維護我們的投資組合。

Got it. And just maybe one more from me in terms of the SG&A. Obviously, there was a variable comp it seems like in the quarter. Do you expect the absolute level of SG&A to remain at that level for future years or kind of it's just going to up and down?

知道了。關於銷售、一般和行政費用 (SG&A)，我可能還想再提一個問題。顯然，本季似乎存在一個可變的補償。您是否預計未來幾年銷售、一般及行政費用的絕對水平將保持在該水平，還是會上下波動？

Well, it's going to vary a little bit year-to-year, but this year is probably -- I mentioned, we hit 85-ish percent of our target comp. So that -- so it should be the midpoint is where we were this year around $26 million, $27 million and sort of I would say the baseline, if you will.

嗯，每年都會有一點變化，但今年可能——我提到過，我們達到了目標的 85% 左右。所以 — — 所以中間點應該是我們今年的水平，大約是 2600 萬美元、2700 萬美元，如果你願意的話，我會說這是基線。

Got it. And actually I do have one more too in terms of buybacks. If volatility continues in the market, now how do you judge buybacks versus buying assets?

知道了。實際上，在回購方面我還有一個問題。如果市場持續波動，現在您該如何判斷回購與購買資產？

The beauty is that we have the ability to assess both of them simultaneously and to pursue whichever of the 2 is the better opportunity at the moment. We continually assess the value of our own portfolio and compare that to opportunities that we see in the market. And you'll see us buy shares of our stock when that's the better option for us, as we have in the past.

美妙之處在於，我們有能力同時評估這兩者，並追求目前更好的機會。我們不斷評估我們自己的投資組合的價值，並將其與我們在市場上看到的機會進行比較。而且你會看到，當這對我們而言是更好的選擇時，我們就會購買我們的股票，就像我們過去所做的那樣。

(Operator Instructions) Our next question comes from the line of Michael Bellisario with Robert W. Baird.

（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)。

Just one more on the kind of ATM versus buyback thought process. Are there any restrictions from a legal or New York Stock Exchange perspective that kind of limits how soon after ATM issuances you can buy back stock? Just trying to figure out how nimble you can actually be?

關於 ATM 與回購思考過程的再一次討論。從法律或紐約證券交易所的角度來看，是否有任何限制，限制 ATM 發行後多久可以回購股票？只是想弄清楚你實際上有多敏捷？

It's -- my understanding is, and I'm not a liar, but it's sort of a daily thing, so we can do it relatively quickly. But you can't do it on the same day.

這是——我的理解是，我不是騙子，但這是一種日常事務，所以我們可以相對快速地完成它。但你不能在同一天完成這件事。

Got it. So with the recent volatility issuing in December doesn't preclude you from buying back?

知道了。那麼，12 月份的近期波動並不妨礙您回購嗎？

No. No, absolutely not.

不，不，絕對不是。

Justin, you mentioned the acquisition spread. Kind of what are the primary metrics that you're looking at when you're underwriting deals? And kind of what determines whether something is accretive for you? How do you think about that?

賈斯汀，你提到了收購價差。當您承銷交易時，您關注的主要指標是什麼？那麼什麼決定了某件事是否對你有益呢？您對此有何看法？

So we're always looking at underlying cash flow. But interestingly, as we look at spreads, we're particularly focused on the relative growth rate to our existing portfolio. And so we've highlighted in the past where assets that we're looking to acquire have similar growth profiles. So our existing portfolio we look for a larger spread than in assets that we see having significantly larger growth profile, either because of ramp or because of particular market dynamics. But as we look for accretion to our portfolio, we're looking at bottom line cash.

因此我們始終關注潛在的現金流。但有趣的是，當我們觀察利差時，我們特別關注現有投資組合的相對成長率。因此，我們過去曾強調，我們希望收購的資產具有相似的成長特徵。因此，我們在現有投資組合中尋求的利差比那些我們認為具有明顯更大成長特徵的資產更大，無論是由於成長還是由於特定的市場動態。但當我們尋求投資組合增值時，我們關注的是底線現金。

That's helpful. And then last one for me, just on the labor management programs that you've implemented recently. Any kind of quantitative metric you can provide so far that you've seen maybe a benefit or a lift at the properties that have had the programs? And then also how you are kind of thinking about the benefit to expect in 2018?

這很有幫助。最後我想問的是你們最近實施的勞動力管理計畫。到目前為止，您能否提供任何定量指標來表明實施這些計劃的物業可能獲得了好處或提升？那麼，您如何看待 2018 年預期的收益呢？

If you go back to the earlier comments as part of the comments on the quarter and the past 2 quarters is that we were able to keep wages per occupied room below 3%. So part of that is from being able to implement this program. With that -- but with that being said, we do feel there is additional opportunity this year, and we've actually taken a lot of our asset managers and 75% of our job is actually pulling reports and getting the data from the labor management system and following up with the management company. So we do feel there is additional opportunity to mitigate cost increases in a tough labor environment. But what we're actually -- what we've included in our outlook is a similar growth rate in payroll compared to this year. So any additional savings would be more favorable for our outlook.

如果您回顧先前的評論，作為對本季度和過去兩個季度的評論的一部分，我們能夠將每間入住客房的工資保持在 3% 以下。因此，部分原因在於能夠實施該計劃。話雖如此，我們確實覺得今年還有更多機會，我們實際上已經聘請了很多資產經理，而我們 75% 的工作實際上是提取報告並從勞動力管理系統中獲取數據並跟進管理公司。因此，我們確實認為在嚴峻的勞動環境下還有更多機會來緩解成本上漲。但實際上，我們在展望中已經考慮到了與今年類似的薪資成長率。因此，任何額外的儲蓄都會對我們的前景更有利。

There are no further questions at this time. I would like to turn the call back over to Mr. Knight for any closing remarks.

目前沒有其他問題。我想將電話轉回給 Knight 先生，請他做最後發言。

Thank you. I would like to thank you for joining us this morning and hope, as always, that if you have any opportunity to travel, that you'll take the opportunity to stay with us at one of our hotels. Have a great day. We look forward to talking to you again soon.

謝謝。感謝您今天早上加入我們，並一如既往地希望，如果您有機會旅行，您將藉此機會入住我們的某家酒店。祝你有美好的一天。我們期待很快再次與您交談。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

謝謝。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，祝您有美好的一天。