Apple Hospitality REIT Inc (APLE) 2018 Q1 法說會逐字稿

Greetings, and welcome to the Apple Hospitality REIT First Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Apple Hospitality REIT 2018 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。

I would now like to turn the conference over to your host, Kelly Clarke.

現在我想將會議交給主持人凱利克拉克 (Kelly Clarke)。

Thank you, and good morning. We welcome you to Apple Hospitality REIT's First Quarter 2018 Earnings Call on this, the 8th day of May 2018.

謝謝，早安。歡迎您參加 Apple Hospitality REIT 於 2018 年 5 月 8 日舉行的 2018 年第一季財報電話會議。

Today's call will be based on the first quarter 2018 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 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.

今天的電話會議將基於昨天下午發布的 2018 年第一季財報。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 所做的任何前瞻性聲明僅代表今日的觀點，除非法律要求，否則本公司不承擔公開更新或修改任何前瞻性聲明的義務。

In addition, certain non-GAAP measures of performance such as EBITDA, adjusted EBITDA, FFO and modified FFO will be discussed during this call. We encourage participants to review reconciliations of those measures to GAAP measures as included in yesterday's earnings release and other filings with the SEC. For a copy of the earnings release or additional information about the company, please visit applehospitalityreit.com.

此外，本次電話會議也將討論某些非 GAAP 績效指標，例如 EBITDA、調整後的 EBITDA、FFO 和修改後的 FFO。我們鼓勵參與者審查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; 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 2018 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)； Krissy Gathright，我們的營運長；我們的財務長 Bryan Peery 將概述我們 2018 年第一季度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, and good morning. In just over a week, we will celebrate our third year of trading on the New York Stock Exchange. Since May of 2015, we have returned approximately $1 billion to shareholders in dividends and share buybacks. Our focus on providing investors with consistent dividends and appreciation in the value of their underlying investment predates our listing by over 1.5 decades and is based on a strategy we have proven and refined over multiple cycles. We own rooms-focused properties with industry-leading brands, which generate strong, stable, relative margins. We work with established regional and national operators, using innovative contracts that align management and ownership interest and preserve flexibility to sell assets unencumbered. We are broadly diversified across markets to reduce volatility and provide the portfolio exposure to a variety of industries and demand generators. We consistently reinvest in our assets to maintain competitive positioning across our markets, yield strong guest satisfaction and provide for more predictable future capital needs. We refine and enhance our portfolio through tactical acquisitions and dispositions, and we focus on maintaining a flexible balance sheet that provides us with additional security during periods of volatility and the ability to pursue opportunities in the marketplace. Today, with 242 hotels, diversified across 88 U.S. markets, we're the largest publicly traded REIT focused on the select service segment of the lodging industry. Each element of our strategy contributes to our ability to make good on our commitment to our shareholders.

謝謝你，凱利，早安。再過一周多一點，我們將慶祝在紐約證券交易所交易三週年。自 2015 年 5 月以來，我們已透過股利和股票回購的方式向股東返還了約 10 億美元。我們專注於為投資者提供持續的股息和基礎投資價值的升值，這早在我們上市前 15 年就已開始，並且基於我們已經在多個週期中得到驗證和完善的戰略。我們擁有以客房為中心的飯店物業，擁有業界領先的品牌，可產生強勁、穩定的相對利潤。我們與成熟的區域和國家運營商合作，採用創新合同，使管理層和所有者的利益保持一致，並保留出售無抵押資產的靈活性。我們在各個市場進行廣泛的多元化投資，以降低波動性，並為各種行業和需求產生者提供投資組合曝險。我們持續對資產進行再投資，以保持在各個市場的競爭地位、獲得較高的客戶滿意度並滿足更可預測的未來資本需求。我們透過戰術收購和處置來完善和增強我們的投資組合，並專注於維持靈活的資產負債表，以便在波動時期為我們提供額外的安全性以及在市場中尋求機會的能力。如今，我們擁有 242 家飯店，業務遍及美國 88 個市場，是專注於住宿業精選服務領域的最大上市房地產投資信託基金 (REIT)。我們策略的每個要素都有助於我們履行對股東的承諾。

Operational results for the first quarter were generally in line with our expectations. Comparable hotels RevPAR growth was approximately 1%, with lingering storm-related business in the quarter offset in part by the Easter holiday calendar shift. With rates driving RevPAR growth and occupancies remaining stable, we were able to achieve a comparable hotels adjusted hotel EBITDA margin of approximately 36%. Economic indicators remain positive and strong leisure travel continues to boost shoulder night demand on -- at our hotels.

第一季的經營業績基本上符合我們的預期。可比飯店 RevPAR 成長率約為 1%，但本季持續的風暴相關業務被復活節假期日曆的變化部分抵消。由於房價推動 RevPAR 成長且入住率保持穩定，我們能夠實現可比飯店調整後飯店 EBITDA 利潤率約為 36%。經濟指標依然保持樂觀，強勁的休閒旅遊繼續推動我們酒店的夜間住宿需求。

Business travel, which for our portfolio is most significant in the second and third quarters, was relatively stable in the first quarter. Current midweek booking trends provide some indication of increased business transient demand for the coming months, and we are exceptionally well positioned to benefit from strength in this segment. We continue to feel confident in the full year 2018 guidance we provided with our year-end 2017 earnings.

對於我們的投資組合而言，商務旅行在第二季和第三季最為重要，但第一季商務旅行相對穩定。目前周中預訂趨勢顯示未來幾個月商務臨時需求將會增加，我們處於非常有利的位置，可以從這一領域的優勢中受益。我們仍然對我們根據 2017 年年終收益提供的 2018 年全年指引充滿信心。

We acquired 2 hotels during the quarter: The Hampton Inn & Suites in Downtown Memphis and the Hampton Inn & Suites in Downtown Atlanta, for a combined purchase price of $63 million. In both instances, we transitioned management and anticipate that this, combined with significant renovation scheduled for 2019, will position the hotels to take advantage of exceptional locations within their respective markets.

我們在本季收購了 2 間飯店：位於孟菲斯市中心的漢普頓飯店及套房 (Hampton Inn & Suites) 和位於亞特蘭大市中心的漢普頓飯店及套房 (Hampton Inn & Suites)，總收購價為 6,300 萬美元。在這兩種情況下，我們都對管理層進行了轉型，並預計，結合計劃於 2019 年進行的大規模翻新工程，這些酒店將能夠利用其各自市場中優越的地理位置。

More recently, we acquired the newly constructed Hampton Inn & Suites in Downtown Phoenix for $44 million. We entered into a forward commitment for the property prior to construction and, in so doing, we are able to lock in attractive per feet pricing in a rising cost environment. We have forward contracts on 3 additional hotels with trusted developers, a Home2 Suites at the Orlando airport and a combined Hampton Inn & Suites and Home2 Suites in Cape Canaveral, Florida. We anticipate closing on the Orlando Home2 Suites in the fourth quarter of this year and the combo hotel in Cape Canaveral in 2020.

最近，我們以 4,400 萬美元的價格收購了位於鳳凰城市中心的新建漢普頓酒店及套房 (Hampton Inn & Suites)。我們在施工前就對該物業做出了遠期承諾，這樣，我們就能夠在成本上升的環境中鎖定有吸引力的每英尺價格。我們與值得信賴的開發商簽訂了另外 3 家酒店的遠期合同，包括位於奧蘭多機場的 Home2 Suites 酒店以及位於佛羅裡達州卡納維拉爾角的 Hampton Inn & Suites 酒店和 Home2 Suites 酒店的組合。我們預計奧蘭多 Home2 Suites 酒店將於今年第四季竣工，卡納維爾角組合酒店將於 2020 年竣工。

While the transaction market continues to be challenging, we have confidence in our ability to continue to selectively source high-quality hotels consistent with our strategy, which expand our reach into new markets and increase our presence in markets which we believe will benefit from current economic and demographic trends. We have also seen an uptick in interest for select service assets, fueled in part by continued strength in the debt markets and wide availability of financing for existing hotels, which could help to facilitate selective dispositions in coming months.

儘管交易市場仍然充滿挑戰，但我們有信心有能力繼續選擇性地尋找符合我們策略的高品質酒店，這將擴大我們在新市場的影響力，並增加我們在那些我們認為將受益於當前經濟和人口趨勢的市場中的存在。我們也看到，對精選服務資產的興趣有所上升，部分原因是債務市場持續走強，以及現有酒店融資管道廣泛，這可能有助於促進未來幾個月的精選處置。

Since the beginning of 2015, the year we listed on the New York Stock Exchange, we've acquired 73 hotels for a total purchase price of approximately $1.8 billion, including our merger with Apple REIT Ten, and sold 22 hotels for total proceeds of approximately $316 million. Our team has nearly 2 decades of experience in hotel transactions and over that period has purchased 429 Hilton and Marriott hotels and sold 187.

自 2015 年初在紐約證券交易所上市以來，我們已收購了 73 家酒店，總收購價約為 18 億美元，其中包括與 Apple REIT Ten 的合併，並出售了 22 家酒店，總收益約為 3.16 億美元。我們的團隊在酒店交易方面擁有近 20 年的經驗，在此期間購買了 429 家希爾頓和萬豪酒店，並出售了 187 家。

While broadly speaking, we see new construction sites beginning to moderate, at the end of the first quarter, 63.5% of our properties had one or more upper midscale, upscale or upper upscale new construction projects within a 5-mile radius, a slight increase from the percentage reported on our last call. Based on the supply outlet for our markets, we anticipate new construction starts will peak this year and absent a significant decrease in construction costs, meaningful reacceleration in the economic growth or an increase in the availability of construction financing, we expect the industry will continue to see a deceleration in new construction starts.

雖然從總體上看，我們看到新建築工地開始放緩，但在第一季度末，我們 63.5% 的物業在 5 英里半徑範圍內擁有一個或多個中高檔、高檔或超高檔新建築項目，與我們上次報告的百分比略有增加。根據我們市場的供應情況，我們預計今年新開工量將達到峰值，如果建築成本沒有大幅下降、經濟成長沒有顯著加速或建築融資可用性沒有增加，我們預計該行業新開工量將繼續減速。

Although there could be headwinds in some of our markets this year as a result of new hotel openings, we believe the strength of our hotel brands and the low effective and actual age of our hotels will enable us to remain competitive within our markets. We continue to be optimistic about the prospects for the year and remain confident in the fundamentals of our portfolio.

儘管今年我們的一些市場可能會因新酒店開業而面臨阻力，但我們相信，憑藉我們酒店品牌的實力以及酒店較低的有效和實際使用年限，我們將能夠在市場中保持競爭力。我們繼續對今年的前景持樂觀態度，並對我們投資組合的基本面充滿信心。

Before I hand the call over to Krissy to provide additional detail on our performance across our markets during the quarter and the industry, I would like to commend her and her team for their dedication to our shareholders and the performance of our portfolio overall. Their combined experience, operational expertise and innovative approach to asset management play a key role in driving our industry-leading margin performance in an increasingly challenging operating environment. I'm incredibly proud of the work they do. And with that, it is now my pleasure to hand the call over to Krissy.

在我將電話交給克莉絲，讓她詳細介紹我們本季在各個市場和行業的表現之前，我想讚揚她和她的團隊對我們的股東和我們整體投資組合表現的奉獻精神。他們的綜合經驗、營運專業知識和創新的資產管理方法在日益嚴峻的營運環境中發揮關鍵作用，推動我們實現業界領先的利潤績效。我對他們所做的工作感到無比自豪。現在我很高興將電話交給克莉絲。

Thank you, Justin. We are pleased to report that our first quarter results were largely in line with expectations. We are also encouraged by recent trends showing continued strength in leisure demand and improving business demand. Week-day RevPAR growth has accelerated each month since we started the year, and our expectation is for that trend to continue as we move in to the stronger business travel months. For the second quarter, we anticipate our RevPAR growth to be at or above the high end of our yearly outlook range. During the quarter, our occupancy remained strong at 75%, with substantially all of our RevPAR growth coming in rate. Our RevPAR growth was entirely transient driven, as same-store group revenue was down 2%.

謝謝你，賈斯汀。我們很高興地報告，我們的第一季業績基本上符合預期。我們也對最近的趨勢感到鼓舞，這些趨勢顯示休閒需求持續強勁，商業需求不斷改善。自今年年初以來，週內 RevPAR 的成長速度每月都在加快，我們預計，隨著商務旅行旺季的到來，這一趨勢將持續下去。對於第二季度，我們預計 RevPAR 的成長將達到或超過我們年度預期範圍的高端。本季度，我們的入住率仍保持在 75% 的強勁水平，RevPAR 的成長基本上來自於房價。我們的 RevPAR 成長完全是暫時性的，因為同店集團營收下降了 2%。

In some instances, the reduction in group was purposeful as our operators limited group bookings to take advantage of higher-rated transient demand. In a few markets, we experienced group cancellations due to inclement weather and the government shutdown. Corporate-negotiated and government business represented 28% of our mix, consistent with the prior year in spite of a slight decline in March related to the Easter holiday shift.

在某些情況下，減少團體人數是故意的，因為我們的運營商限制團體預訂，以利用更高評級的臨時需求。在某些市場，我們因惡劣天氣和政府關門而遭遇團體取消行程的情況。企業談判業務和政府業務占我們業務組合的 28%，儘管 3 月受復活節假期影響略有下降，但與前一年持平。

RevPAR for our top 20 markets, representing 60% of our EBITDA, increased just over 2%. Of the 3 markets with an EBITDA contribution above 5%, Phoenix and Los Angeles continued their trend of solid RevPAR growth, while the San Diego market performance lagged coming off a tough comparison of 13% growth in the prior year. We expect performance in San Diego to improve over the course of the year, especially in the second half, with more favorable comps of solid city-wide calendar and increased government and sports-related group bookings.

我們前 20 個市場的 RevPAR 占我們 EBITDA 的 60%，增幅略高於 2%。在 EBITDA 貢獻率超過 5% 的 3 個市場中，鳳凰城和洛杉磯繼續保持 RevPAR 的穩健成長趨勢，而聖地牙哥市場的表現則落後於前一年 13% 的成長率。我們預計聖地牙哥的表現將在今年內有所改善，尤其是在下半年，全市範圍內的日程安排更加緊湊，政府和體育相關的團體預訂也將增加，這將帶來更有利的業績。

We are excited about the prospects for our recently acquired Downtown Phoenix Hampton Inn & Suites. This brand new hotel has a prime location near the ASU Downtown campus, Fortune 500 company, the convention center and professional sports arenas and should provide a nice lift in 2019 following its ramp up.

我們對最近收購的鳳凰城市中心漢普頓酒店及套房的前景感到非常興奮。這家全新的飯店地理位置優越，靠近亞利桑那州立大學市中心校區、財富 500 強公司、會議中心和專業體育場館，預計在 2019 年開業後將帶來良好的成長。

RevPAR outside of our top 20 EBITDA markets declined 50 basis points. In the first quarter of 2017, we benefited from tornado recovery business in Louisiana, Mississippi, Georgia and Kansas with no such business in 2018. In addition, RevPAR for our Omaha hotels declined 16% with ramping new supply and one hotel under renovation. Increased demand is expected to improve Omaha's market performance in the second quarter. As we enter the higher occupancy months, we are well positioned to capitalize on improving corporate demand as the hotel revenue management teams can be more selective in managing the mix to drive the highest profit business into our hotels.

我們前 20 個 EBITDA 市場以外的 RevPAR 下降了 50 個基點。2017 年第一季度，我們受益於路易斯安那州、密西西比州、喬治亞州和堪薩斯州的龍捲風恢復業務，而 2018 年沒有此類業務。此外，由於新供應增加且有一家酒店正在裝修，我們奧馬哈酒店的 RevPAR 下降了 16%。預計需求增加將改善奧馬哈第二季的市場表現。隨著入住率進入較高水平，我們已做好準備，充分利用企業需求的提升，因為酒店收益管理團隊可以更有選擇性地管理組合，從而為我們的酒店帶來最高利潤的業務。

We expect the fourth quarter to be the most challenging with seasonally lower business demand and a difficult storm-related comparison. However, we do feel the impact will be somewhat mitigated by a modest improvement in energy-related business in Houston and improved demand in Miami, unrelated to the hurricane recovery. As a testament to the persistence and intense focus of our asset management team, working in conjunction with our operators, we were able to minimize the comparable hotel adjusted EBITDA margin decline to only 50 basis points and grow comparable hotel EBITDA even with modest revenue growth. Targeted efforts focused on driving incremental parking, pantry and cancellation revenue resulted in a 12% or approximately $750,000 same-store ancillary revenue increase, contributing 20 basis points to margin. Cancellation revenues have risen with the movement of the cancellation date further out. And our asset management team has been extremely diligent in pushing a high capture rate on this growing revenue stream.

我們預計第四季將是最具挑戰性的季度，因為季節性業務需求較低，而且與風暴相關的比較也比較困難。然而，我們確實認為，休士頓能源相關業務的溫和改善以及邁阿密需求的增加將在一定程度上減輕這種影響，這與颶風後的恢復無關。作為我們資產管理團隊的堅持和高度專注的證明，我們與運營商合作，能夠將可比酒店調整後的 EBITDA 利潤率下降幅度降至僅 50 個基點，並且即使在收入增長適度的情況下也能實現可比酒店 EBITDA 的增長。有針對性的努力集中在增加停車、茶水和取消收入，導致同店輔助收入增加 12% 或約 75 萬美元，為利潤率貢獻 20 個基點。隨著取消日期的推遲，取消收入增加。我們的資產管理團隊一直非常努力地推動這一不斷增長的收入流的高捕獲率。

As for expenses, our labor management technology initiative continues to produce favorable results. For the third quarter in a row, wages per occupied room grew less than 3% in the face of a challenging labor market. Total payroll increased 2.7% per occupied room, and our operators managed other controllable expenses well, keeping growth essentially flat. Property taxes and insurance increased 5%, in line with expectations. Our team remains laser focused on improving operational efficiencies in collaboration with our operators and using our expertise and scale to deliver industry-leading margins.

至於費用，我們的勞動力管理技術措施持續產生良好的效果。面對嚴峻的勞動市場，連續三個季度，每間入住客房的薪資增幅不足 3%。每間入住客房的總薪資增加了 2.7%，我們的營運商很好地管理了其他可控費用，使成長基本上保持穩定。房產稅和保險上漲5%，符合預期。我們的團隊始終專注於與營運商合作提高營運效率，並利用我們的專業知識和規模來實現領先業界的利潤率。

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. To summarize a few of the numbers Justin and Krissy touched on, we finished the quarter with revenue of $298 million, adjusted EBITDA of $100 million and modified FFO per share of $0.38 per share. Also we invested approximately $18 million in capital expenditures in the first quarter, with 15 hotels completing renovation.

謝謝，克麗西，早安。總結賈斯汀和克莉絲提到的幾個數字，我們本季的營收為 2.98 億美元，調整後的 EBITDA 為 1 億美元，調整後的每股 FFO 為 0.38 美元。此外，我們在第一季投資了約 1800 萬美元的資本支出，其中 15 家酒店完成了翻新。

We continue to reiterate our guidance for 2018 that we provided in February. Based on our operating performance to date, our visibility into business drivers for the remainder of the year and announced transactions, we anticipate net income of between $198 million and $221 million, comparable hotels RevPAR growth between 0% and 2%, comparable hotels adjusted EBITDA margin percent between 36.8% and 37.8% and adjusted EBITDA between $437 million and $457 million.

我們繼續重申我們在二月提供的 2018 年指引。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宣布的交易，我們預計淨收入將在 1.98 億美元至 2.21 億美元之間，可比酒店 RevPAR 增長率將在 0% 至 2% 之間，可比酒店調整後的 EBITDA 利潤率將在 36.8% 至 37.38% 187. 4.57 億美元之間。

At the end of March, the company had approximately $1.3 billion of outstanding debt with the current combined weighted-average interest rate of 3.7% for the remainder of 2018. Our debt is comprised of $499 million in property-level debt and $831 million outstanding on our $1.2 billion of unsecured credit facilities. At the end of the quarter, approximately 80% of our debt has an effectively fixed rate.

截至 3 月底，該公司未償還債務約為 13 億美元，2018 年剩餘時間的當前綜合加權平均利率為 3.7%。我們的債務包括 4.99 億美元的房地產債務和 12 億美元無擔保信貸額度中 8.31 億美元的未償債務。截至本季末，我們約 80% 的債務均已實現有效固定利率。

During the first quarter, the company paid distributions of $0.30 per share. To annualize, the $1.20 per common share represents an annual 6.7% yield based on our May 2 closing price of $17.89. Also during the quarter, the company repurchased approximately 250,000 common shares at an average price of $16.89 per share. Since the beginning of the year, we have returned approximately $96 million to shareholders through dividends and share repurchases.

第一季度，該公司每股派息 0.30 美元。以年率計算，根據 5 月 2 日 17.89 美元的收盤價計算，每股 1.20 美元代表年收益率 6.7%。本季度，該公司還以每股 16.89 美元的平均價格回購了約 250,000 股普通股。自今年年初以來，我們已透過股利和股票回購向股東返還約 9,600 萬美元。

Finally, I wanted to highlight that our Annual Shareholder Meeting is scheduled for May 17, and we once again have a proposal before our shareholders that provides for amending our charter to destagger our board. Although we've been unable to obtain the required votes the past couple of years to pass this proposal, we continue to believe this is an important piece of corporate governance that is beneficial to our shareholders. 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 17 日舉行，我們再次向股東提出一項提案，該提案規定修改我們的章程以縮短董事會任期。儘管過去幾年我們一直未能獲得通過該提案所需的票數，但我們仍然相信這是有利於我們股東的一項重要的公司治理措施。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. With some optimism as we have entered our strongest quarters 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. Thank you for joining us this morning. And we will now open up the call for questions.

感謝您今天上午加入我們。帶著樂觀的心情，我們進入了今年表現最強勁的季度，我們將繼續執行我們的核心策略，並相信從長遠來看，我們有能力大幅提高股東價值。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 from KeyBanc Capital Markets.

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

Wanted to touch on a comment you made, Justin. You said you've seen an uptick in interest for select service assets, kind of paraphrasing here, fueled in part by an attractive financing environment, which you thought could help facilitate some select service dispositions in the coming months. Could you just expand on those comments? And add a little context of what you're seeing in the transaction market today that leads you to believe that we could see an uptick in the coming months?

想談談你發表的評論，賈斯汀。您說您已經看到對精選服務資產的興趣有所上升，這是一種解釋，部分原因是受到有吸引力的融資環境的推動，您認為這可能有助於在未來幾個月促進一些精選服務的處置。您能否進一步闡述這些評論？並且添加一些您今天在交易市場上看到的背景信息，讓您相信我們可能會在未來幾個月看到上漲趨勢？

Certainly, Austin. And this isn't inconsistent with comments that I've made on past calls. But we from time to time, receive reverse inquiries for assets from a variety of different groups, ranging from individual owners to -- and operators to small private equity shops, and have continual conversations with some of the larger shops as well. What I was referencing in my prepared remarks was an uptick that we've seen in these reverse inquiries, which we think potentially position us and others to take advantage of an opportunity to dispose a portion of our portfolio and recycle the capital. That's been a consistent part of our strategy. And the driver -- the key driver seems to be twofold really, and I highlighted one. But I think it's increasing optimism as it relates to the industry overall. And then, two, continued strength in the debt markets. And when I say strength in the debt markets, I mean specifically financing availability for existing assets to include potentially small portfolios. We are -- and we'll continue to explore opportunities as they present themselves, though we don't have anything to announce specifically at this time.

當然，奧斯汀。這與我過去電話會議中發表的評論並不矛盾。但我們不時會收到來自不同團體的資產反向詢價，從個人所有者到營運商，再到小型私募股權公司，也會與一些較大的公司進行持續對話。我在準備好的演講中提到的是，我們在這些反向調查中看到了上升趨勢，我們認為這可能使我們和其他人有機會利用機會處置部分投資組合併回收資本。這是我們策略的一貫組成部分。而驅動因素——關鍵驅動因素似乎實際上有兩個，我強調了其中一個。但我認為，就整個產業而言，這種樂觀情緒正在增強。其次，債務市場持續走強。當我說債務市場強勁時，我指的是現有資產的融資可用性，包括潛在的小型投資組合。我們正在——並將繼續探索出現的機會，儘管目前我們還沒有任何具體消息可以宣布。

Appreciate the color. I mean -- and you mentioned small portfolios. But is there an appetite for potentially larger portfolio deals today from what you've seen? And then how are you thinking about reinvesting proceeds today? Most of the deals we've seen you announce have been sort of these presale type deals recently. So just curious how you're thinking about uses?

欣賞色彩。我的意思是——你提到了小型投資組合。但從您所看到的情況來看，今天是否有人對潛在的更大規模的投資組合交易感興趣？那麼，您今天如何考慮重新投資收益？我們看到您最近宣布的大多數交易都是這種預售類型的交易。所以只是好奇您是如何考慮用途的？

So we've been consistent in our response to that question as well. In terms of use of proceeds, well, let me answer your first question first. We think that there potentially does exist an appetite for larger portfolios as well based on availability of financing. And I think we've been clear in past calls that as we've assessed potential acquisitions, portfolio acquisitions, our biggest competitor was the banks. And a number of the private equity groups with larger portfolios have chosen, as I can give, widely known publicly to refinance rather than pursue other alternatives. That same financing is available should they decide to become more active in pursuing larger portfolios. And that does certainly exist as a possibility in terms of use of proceeds. We think we've been consistently effective with these forward commitment deals. And I think if you look at the relative per-key price, that we're able to acquire high-quality new assets in prime locations that we're hand selecting, I think you should anticipate that will continue to be a portion of our strategy. I think you should also note that we've been more active in individual asset acquisitions for existing assets as well. And we highlighted in the quarter 2 of those assets, the Memphis and Atlanta Downtown assets, both exceptional locations in the heart of a downtown marketplace with [diverse demand carriers] both on the leisure and on the business side, really wholly consistent with the type of assets that we're looking to acquire. We think -- and again, I'm not going to overstate the depth of the market right now, but we have a high degree of confidence in our ability to execute on those and continue to evaluate larger portfolio transactions as well.

因此我們對這個問題的回答也是一致的。關於收益用途，嗯，讓我先回答你的第一個問題。我們認為，基於融資的可用性，可能確實存在對更大投資組合的需求。我認為我們在過去的電話會議中已經明確表示，當我們評估潛在的收購、投資組合收購時，我們最大的競爭對手是銀行。據我所知，許多擁有較大投資組合的私募股權集團都選擇了再融資，而不是尋求其他替代方案。如果他們決定更積極地尋求更大的投資組合，他們也可以獲得相同的融資。就收益的使用而言，這確實是存在可能性的。我們認為這些遠期承諾交易一直都很有效。我認為，如果你看一下相對的每筆價格，你會發現我們能夠在我們精心挑選的黃金地段收購高品質的新資產，我想你應該預料到這將繼續成為我們策略的一部分。我想您也應該注意到，我們在對現有資產的個別資產收購方面也更加積極。我們在第二季度重點介紹了孟菲斯和亞特蘭大市中心資產，這兩個資產都位於市中心市場中心的絕佳位置，擁有休閒和商業方面的[多樣化需求載體]，這與我們希望收購的資產類型完全一致。我們認為——我再說一次，我不會誇大現在市場的深度，但我們對執行這些交易的能力以及繼續評估更大的投資組合交易的能力充滿信心。

And then just the last one for me. As we kind of move through the noise around the holiday shift and into May, what are some of the emerging trends you're seeing from corporate travelers, in particular? Maybe how the -- in the quarter, for the quarter trending at this time versus past years? And then I think you've spoken to local negotiated rates being a particular focus on when you would feel more optimistic about the corporate travel. So any thoughts around those would be appreciated.

對我來說這是最後一個了。隨著我們逐漸走出假期喧囂，進入五月份，您從商務旅客身上看到了哪些新趨勢？也許本季的趨勢與過去幾年相比如何？然後我認為您已經談到了當地協商價格，當您對商務旅行感到更樂觀時，您會特別關注當地協商價格。因此，任何有關這些的想法都將受到讚賞。

Absolutely. So, so far this year, and as I mentioned in our comments, the results have been in line -- generally in line with expectations. As we enter into May and June, those are higher occupancy months that are more geared towards business travelers. So we're inclined to really relying on those months to give us a better indication of business demand without the holiday shift. Forecast for those months are encouraging, with some improvement versus expectation. And it's consistent with anecdotal reports that we're hearing from our operators in the field, pointing to an improvement in corporate demand. Now at this point, I would say modest improvement in corporate demand. But I also think it's important to note it's not any one particular industry. It's multiple different industries. So for us, as we get through May and June and especially with our product type, which is much more geared towards business travelers, we'll feel more comfortable with where we -- with being able to comment further on business travel. But looking at where we are today, we do feel good about the remainder of the quarter. And then you mentioned local negotiated accounts. So yes, from a mixed management standpoint, as we do see that pick up in business travel, then our focus is with each of the individual managers on making sure that, first, we reduce discounts and -- reduce discounts on multiple different levels, whether it be government rates or whether it be different leisure type discounts to push or drop demand to higher-rated, higher-profit business. And then what that also allows us to do is, as we see that increased demand that compresses the hotel, then we can be more selective on yielding out hotels that aren't producing the volume that we would expect or might have a lower rate that is more needed in times like the first and fourth quarter when business travel isn't as strong.

絕對地。因此，今年到目前為止，正如我在評論中提到的那樣，結果基本上符合預期。進入五月和六月，這兩個月的入住率較高，更適合商務旅客。因此，我們傾向於真正依靠這些月份來更好地了解不受假期影響的業務需求。這幾個月的預測令人鼓舞，與預期相比有所改善。這與我們從現場營運商那裡聽到的傳聞報告一致，顯示企業需求有所改善。現在，我想說企業需求略有改善。但我認為還必須注意，這不是任何特定的行業。它涉及多個不同的行業。因此對我們來說，隨著五月和六月的到來，尤其是我們的產品類型更加面向商務旅客，我們會對能夠進一步評論商務旅行感到更加安心。但看看我們今天的狀況，我們對本季剩餘時間的表現確實感到樂觀。然後您提到了本地協商帳戶。所以是的，從混合管理的角度來看，我們確實看到商務旅行有所回升，那麼我們的重點是與每位經理一起確保首先減少折扣，並在多個不同層面減少折扣，無論是政府價格還是不同休閒類型的折扣，以推動或降低對更高評級、更高利潤業務的需求。然後，這也使我們能夠做的是，當我們看到需求增加壓縮酒店空間時，我們可以更有選擇性地放棄那些沒有達到我們預期數量的酒店，或者在第一季度和第四季度商務旅行不那麼強勁的時候，可能會有更低的房價。

Our next question comes from the line of Michael Bellisario from Robert W. Baird.

我們的下一個問題來自羅伯特·W·貝爾德公司的邁克爾·貝利薩裡奧。

Just want to focus on CapEx a little bit, I guess, just first housekeeping, are you still thinking $70 million to $80 million this year?

我只是想稍微關心一下資本支出，首先，您還想在今年花費 7,000 萬到 8,000 萬美元嗎？

Yes. I mean, that -- it might be a little bit on the low end of that range because we have a couple of full-service renovations in that mix and just depending on timing of when those get executed, it could be where we are right now in the year. It could be on the low end of that range, but the range is still good.

是的。我的意思是，這可能有點處於該範圍的低端，因為我們有幾個全方位服務的翻新項目，並且取決於這些項目的執行時間，它可能是我們今年現在所處的位置。它可能處於該範圍的低端，但範圍仍然很好。

Got it. And then maybe on the 2 acquisitions in Atlanta and Memphis, kind of how are you thinking about investing in properties like those? I think you said they require significant renovations. Are you more open to doing acquisitions that require some big renovations and the properties might not be as new when you acquire them?

知道了。那麼，關於亞特蘭大和孟菲斯的兩次收購，您是如何考慮投資這樣的房產的？我認為您說過它們需要進行大規模的整修。您是否更願意進行需要進行大規模翻修的收購，而且收購時的房產可能不那麼新？

Absolutely. So -- we've been doing this for long enough that we feel we can effectively gauge the dollars necessary to position the hotels appropriately in the marketplace. We have in-house project management. As part of our acquisition due diligence, we send the team to the property, fully assess the opportunity. And that team includes our acquisitions folks who have been active in the marketplace for an extended period of time, representatives from our asset management group and our project management group on the CapEx side. We take a holistic view to acquisitions and really look at the long-term potential within the market. And as we look to acquire assets in urban markets, oftentimes they are existing assets that have the prime location within those markets. And location is extremely important, especially in an environment where we're seeing increasing levels of supply, as that might be the best opportunity for us. We feel that given our expertise on the CapEx side and the asset management side, we're able to position hotels that existed in marketplaces in ways that will create long-term value for our shareholders.

絕對地。所以——我們已經這樣做了很長時間，我們覺得我們可以有效地衡量在市場上為酒店定位所需的資金。我們有內部專案管理。作為收購盡職調查的一部分，我們派遣團隊前往該地產，充分評估機會。該團隊包括長期活躍在市場上的收購人員、來自資產管理集團和資本支出方面的專案管理集團的代表。我們對收購採取整體觀點，並真正關注市場內的長期潛力。當我們尋求在城市市場收購資產時，通常這些資產是位於這些市場黃金地段的現有資產。地點極為重要，特別是在供應水準不斷增加的環境下，這可能是我們最好的機會。我們認為，鑑於我們在資本支出和資產管理方面的專業知識，我們能夠以能夠為股東創造長期價值的方式定位市場上現有的酒店。

And then how should we think about the big expected renovations at these 2 properties impacting the kind of first year pricing and return expectations that you guys underwrote?

那麼，我們該如何看待這兩處房產的預期大規模翻修將如何影響你們承保的第一年定價和回報預期？

Well, I can remember, in both cases, as I highlighted in my prepared remarks, we transitioned management in addition to the potential renovation. There is some disruption immediately upon acquisition as we transitioned management teams sometimes at the property level and looked to rightsize that. The actual renovation scope will be significant. And we'll look to perform it as we do all of our renovations at a time when we can minimize the renovation disruption. Typically, that ends up being end of the fourth quarter, beginning of the first quarter in those markets. Obviously, in markets like Florida or Arizona where you have kind of an inverse season from a demand standpoint, we'd be looking at different time periods. And Atlanta has a large event planned for the beginning of next year, that we'll want to schedule around. But you can have confidence that we'll look to minimize disruption in the second year. Really those assets we anticipate, based on our acquisition price, will perform well for us in the first year. Coming out of the renovation is when we really anticipate we'll see the numbers that we anticipated.

嗯，我記得，在這兩種情況下，正如我在準備好的演講中所強調的那樣，除了潛在的翻新之外，我們還進行了管理轉型。收購後會立即出現一些混亂，因為我們有時會在物業層級轉變管理團隊並尋求調整規模。實際的改造範圍將會非常大。我們將在進行所有裝修工程時盡量做到這一點，以便將裝修幹擾降到最低。通常，這些市場的最終結果會在第四季末或第一季初公佈。顯然，在佛羅裡達或亞利桑那這樣的市場，從需求的角度來看，季節是相反的，我們會關注不同的時間段。亞特蘭大計劃於明年年初舉辦一場大型活動，我們會根據活動安排時間。但您可以相信，我們會在第二年盡量減少干擾。事實上，根據我們的收購價格，我們預計這些資產在第一年將為我們帶來良好的表現。當我們真正期待裝修完成後，我們會看到我們預期的數字。

Got it. That's helpful. And then last one for me on the revenue management side. You mentioned you're holding back group business in the first quarter. Is this something that you're trying to do on a go-forward basis? And then how should we think about any potential RevPAR growth or margin moves because of this mix shift?

知道了。這很有幫助。最後一點是關於收入管理方面的。您提到您在第一季抑制了集團業務。這是您今後想要做的事嗎？那麼，我們應該如何看待這種組合轉變可能帶來的任何潛在 RevPAR 成長或利潤率變動呢？

As a clarification on that, certain specific markets that we're actually doing very well, they had good solid base business. Then in those markets where they had good, based on this higher occupancy, there were strategic shift to focus more on driving the higher-rated transient. In certain other markets, the group business was needed and counted on, but due to the first quarter unexpected, as I mentioned, inclement weather or storms and just a colder first quarter, in general, our hotels rely on group business that often is sports oriented. So there was some negative impact there as well as some of our hotels around the short-term government shutdown, there were some government groups that actually canceled. Now the good news on those groups is several of them rescheduled for later in the year. And then going forward, the expectations are that we would see group being pretty consistent. When we have the opportunity -- when and if we have the opportunity to drive higher-rated transit, we will do that. But we also have the option with those groups, and we're constantly working with our revenue management teams to make sure that they're dynamically adjusting pricing when they are layering on additional groups to make sure that they're driving group rates there as well. And traditionally the warmer months of the -- in the spring and summertime do give us more opportunities to choose from the additional group business, whether it be family reunions, weddings, sports. And that we'll be working with our revenue management teams to make sure that we only take the group business when we need it. If we have strength during the week, we're going to just try to layer it on in the weekends at the right rate. So hopefully that gives you a little bit more perspective.

需要澄清的是，我們在某些​​特定市場表現非常好，它們擁有良好且穩固的基礎業務。然後，在那些擁有良好業績的市場中，基於更高的入住率，他們進行了策略轉變，更加重視推動更高評級的瞬時客流。在某些其他市場，團體業務是需要的，也是值得依賴的，但由於第一季意外出現，正如我所提到的，惡劣的天氣或風暴，而且第一季氣溫較低，總的來說，我們的酒店依賴於通常以體育為導向的團體業務。因此，政府短期關門對我們的一些酒店以及一些政府團體的預訂都產生了一些負面影響。現在對這些團體來說好消息是，其中幾個團體的活動已改期至今年稍後。展望未來，我們期望看到團隊保持相當的一致性。當我們有機會時——如果我們有機會推動更高評級的交通運輸，我們就會這樣做。但我們也為這些團體提供了選擇，並且我們不斷與我們的收益管理團隊合作，以確保他們在增加其他團體時動態調整價格，以確保他們也能在那裡推動團體價格。傳統上，春季和夏季的溫暖月份確實為我們提供更多機會來選擇額外的團體業務，無論是家庭聚會、婚禮還是體育賽事。我們將與我們的收益管理團隊合作，確保我們只在需要時才承接團體業務。如果我們在周中還有體力，我們就會嘗試在周末以適當的速度增加體力。希望這能為你帶來更多視角。

Our next question comes from the line of Bryan Maher from B. Riley FBR.

我們的下一個問題來自 B. Riley FBR 的 Bryan Maher。

Couple of quick questions. When you talk about the potential to have some dispositions maybe this year, if financing and interest remain strong, what kind of characteristics are you looking for in the properties that you would sell? Or is it simply opportunistic if you have an inbound interest and the price is right, you would sell it?

幾個簡單的問題。當您談到今年可能進行一些處置的可能性時，如果融資和興趣保持強勁，您會在出售的房產中尋找什麼樣的特徵？或者這只是一個機會，如果你有入境興趣並且價格合適，你會出售它？

So I'd say yes to both. The inquiries that we get range from inquiries related to specific assets at one extreme to more general inquiries from groups that are looking to build portfolios. In the case of the latter, we're continually assessing our portfolio, the strength of individual markets and our concentration within those markets and look to dispose selectively of assets as we continue to look to refine and enhance the value of the overall portfolio. Key considerations would be everything from age to brand and brand positioning within a particular product to CapEx needs relative to long-term potential. We're continually looking at relative growth rates for various markets within our portfolio, and look over time to adjust the mix in order to really optimize the portfolio in the face of evolving economic and demographic trends within individual marketplaces. So I think at a certain price, everything within our portfolio is for sale. And as we consider individual reverse inquiries for specific assets, there is nothing within our portfolio that we would not consider selling. But as we receive these more broad inquiries, we're extremely strategic in terms of putting together portfolios which we feel create value for the buyer so that we can maximize value on exit, but also open us to refine and enhance the value of our portfolio.

所以我對這兩個問題的答案都是肯定的。我們收到的諮詢範圍很廣，既有與特定資產相關的諮詢，也有希望建立投資組合的團體的一般諮詢。對於後一種情況，我們會不斷評估我們的投資組合、各個市場的實力以及我們在這些市場中的集中度，並在繼續尋求完善和提高整體投資組合價值的同時，尋求有選擇地處置資產。主要考慮因素包括從年齡到品牌、特定產品內的品牌定位以及相對於長期潛力的資本支出需求等所有方面。我們不斷關注投資組合中各個市場的相對成長率，並隨著時間的推移調整組合，以便在各個市場不斷變化的經濟和人口趨勢下真正優化投資組合。所以我認為，在某個價格下，我們投資組合中的所有東西都可以出售。當我們考慮對特定資產進行單獨的反向查詢時，我們的投資組合中沒有任何資產是我們不會考慮出售的。但是，當我們收到這些更廣泛的詢問時，我們會非常有策略地整合我們認為可以為買家創造價值的投資組合，以便我們可以在退出時實現價值最大化，同時也使我們能夠改進和提高投資組合的價值。

Okay. And then I think you guys made a comment that your property taxes were up roughly 5%. And this seems like a pretty big number, especially since there has been a lot of effort in some states to kind of control property tax expense. What are you guys doing to deal with that? I mean, you just can't have sustained 5% every year.

好的。然後我想你們評論說你們的房產稅上漲了約 5%。這個數字似乎相當大，尤其是考慮到一些州已經做出了巨大努力來控制房產稅支出。你們正在做什麼來解決這個問題？我的意思是，你不可能每年都維持 5% 的成長率。

Property taxes and insurance together were up 5%. Property taxes were actually up a little bit less than that, they were in the 3% to 4% range. And insurance was a little bit higher than that. But from the property tax standpoint, we actively work to appeal increases in real estate tax assessments and have had very good success from that. And considering that the past few years they've -- localities have been very aggressive, to be able to try to maintain those real estate tax increases in that low to mid-single-digit range is a challenge. But we're definitely working to do that, and we -- as you also acquire additional hotels, there usually is an increase in property taxes associated with that, which we underwrite as part of the deals. But for the most part, we've been pretty pleased with the results that we've had with the appeals and the work that we've done on this.

房產稅和保險費共漲了5%。實際上，房產稅的漲幅略低一些，介於 3% 到 4% 之間。保險費比這稍微高一點。但從房產稅的角度來看，我們積極努力地對提高房地產稅評估提出上訴，並且取得了非常好的成功。考慮到過去幾年來，各地方政府一直非常積極，試圖將房地產稅增幅維持在低至中等個位數範圍內是一個挑戰。但我們肯定會努力做到這一點，而且——當您收購更多酒店時，通常會增加與之相關的房產稅，我們會將其作為交易的一部分進行承保。但總體而言，我們對上訴的結果和我們為此所做的工作感到非常滿意。

And not to dilute the risk of increase in property taxes, but last year -- the timing of appeal results can play into that, too.

這並不是降低房產稅上漲的風險，而是去年上訴結果的時機也會對這項風險產生影響。

Absolutely.

絕對地。

And last year, the first quarter of 2017, we had a little bit more favorable results on appeals that hit in the first quarter.

去年，也就是 2017 年第一季度，我們在第一季處理的上訴案件中取得了更有利的結果。

Okay. And then just lastly for me. I mean, you guys have been going at this destaggering of the board for some time now. Can you just discuss for listeners why that's so important to you?

好的。最後，對我來說。我的意思是，你們已經進行這種董事會拆分已經有一段時間了。您能否與聽眾討論為什麼這對您如此重要？

Well, I can speak to why it's so important to us. And then Bryan can speak to kind of how strategically we're changing the playing field in order to increase our chance of getting sufficient votes to make it happen. Really for us, destaggering the board is a visible signal that we, as a management team, believe in governance that's consistent with the best interest of our shareholders. And while we can say that, and we firmly believe it, it is a part of our DNA here, there are certain things that create consistency in terms of what we say and public perception. And destaggering the board is one of those things. We've tried for some time. Because of the large number of retail shareholders that we have within our stock, a portion of whom don't see this as being an important initiative, we've struggled to get the number of votes necessary. But as the mix of our shareholders changes and we increase in institutional ownership as well as some of the other things that we've done internally, we feel that we have increased the likelihood and have a reasonably high degree of confidence that we'll get through this time.

好吧，我可以說為什麼這對我們這麼重要。然後布萊恩可以談談我們如何從策略上改變競爭環境，以增加獲得足夠選票的機會來實現這一目標。對我們來說，取消董事會成員交錯制度是一個明顯的訊號，表示我們作為管理團隊相信公司治理符合股東的最佳利益。雖然我們可以這麼說，而且我們堅信這一點，這是我們 DNA 的一部分，但有些東西可以使我們的言論和公眾的看法保持一致。取消董事會錯位就是其中之一。我們已經嘗試了一段時間了。由於我們股票中的散戶股東數量眾多，其中一部分人並不認為這是一項重要舉措，因此我們很難獲得所需的投票數。但隨著股東結構的變化、機構持股比例的增加以及我們內部採取的一些其他措施，我們感到，我們度過這段時期的可能性增加了，並且有相當高的信心。

Yes, historically it's been a super-majority vote requirement. And then this year, it's just a majority vote. Based on one of the measures that got passed last year, the requirement was changed. So to Justin's point, we are more optimistic that it will happen, and you won't have to listen or hear about that anymore.

是的，從歷史上看，這是一項絕對多數要求。而今年，則只需多數票即可。根據去年通過的一項措施，該要求已改變。所以對於賈斯汀的觀點，我們更樂觀地認為它會發生，而且你不必再聽到或聽到有關它的消息。

Our next question comes from the line of 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 on business travel, some of the other REITs commented that they saw a better corporate transient travel in the quarter, particularly in March, whereas your comments are seemingly more forward-looking. Could you maybe go into why your corporate business may have been a bit different than others in the quarter?

僅在商務旅行方面，其他一些房地產投資信託基金 (REIT) 評論說，他們在本季度，尤其是 3 月份看到了更好的企業臨時旅行，而您的評論似乎更具前瞻性。您能否解釋為什麼貴公司的業務在本季與其他公司業務有所不同？

Well, in March, we definitely were impacted from the holiday shift to the last week of March was soft for us. So that's -- and then we also have, I think some of the other commentary was around group in the first quarter and group is a smaller percentage for us. So we would have had less impact from that. Again, going back to the second quarter and third quarter, really the strongest business travel months for us. So more of our commentary in terms of business travel is related to the forecast that we're actually seeing there. And we were somewhat encouraged by the fact that even with the Easter shift, we were still able to maintain stable corporate-negotiated and government travel as a percentage of our mix.

嗯，在三月份，我們肯定受到了假期輪班的影響，三月的最後一周對我們來說很輕鬆。所以那是——然後我們還有，我認為其他一些評論是關於第一季的集團，而集團對我們來說只佔較小比例。因此我們受到的影響較小。再次回顧第二季度和第三季度，這確實是我們商務旅行最強勁的月份。因此，我們對商務旅行的更多評論與我們實際看到的預測有關。令我們感到鼓舞的是，即使受到復活節的影響，我們仍然能夠保持穩定的企業協商旅行和政府旅行佔比。

Got it. How did April turn out in terms of RevPAR, if you can give that data?

知道了。您能提供一下四月份的 RevPAR 資料嗎？

April turned out in line with expectation, in the mid-2% range.

四月的結果符合預期，在 2% 左右的範圍內。

Okay. So absorption. Got it. And Hilton has talked about they're doing their flex pricing in the summer. How do you expect that to help your ADR? And also how have cancellation fees trended over the past couple of quarters? I think you mentioned they were up this quarter. So how do you expect that to impact the cancellation fee revenue you've seen?

好的。所以吸收。知道了。希爾頓表示他們將在夏季實施彈性定價。您希望這對您的 ADR 有何幫助？過去幾季取消費用的趨勢如何？我想您提到過本季它們有所上漲。那麼您預計這會對您所看到的取消費收入產生什麼影響？

Okay. So on the first piece, the flex pricing that's actually been released in quite a few of our markets. So we are -- it's too early to see the results yet. But just from -- it's too early to make a definitive assessment. But from early indications, we are seeing that it is doing what we would expect it to do and lengthening that cancellation window. So we do think that, that is going to be a net positive for us as we continue throughout the year, and we're highly supportive of that particular initiative. Cancellation fees, the late cancellation fees, we are very -- as I mentioned in my comments, our asset management team, who I'm extremely proud of, have been very diligent in working with our operators. And we have seen an increase in being -- in cancellations inside of the 48-hour window, which we were able to go and collect cancellation fee revenue from. And I will tell you that is a very manual process currently. And we are working with the brands to automate that, which will then improve the capture rate. But we do expect those. We saw a nice lift in the quarter. And we do -- our goal is to try to continue to drive that. And in terms of overall cancellations, and I think from all these different policies that we're talking about, is having a positive impact there and then that should further help us in the revenue management picture to be able to have a better handle on, even though this booking window is extremely short term and continues to get shorter, gives us more opportunity to resell those rooms in a short time frame.

好的。因此，首先，彈性定價實際上已經在我們相當多的市場中實施。所以我們現在還無法看到結果。但僅從——現在做出明確的評估還為時過早。但從早期跡象來看，我們看到它正在按照我們預期的方式行事，並延長取消視窗。因此，我們確實認為，隨著我們全年的持續發展，這對我們來說將是一個淨利好，我們非常支持這項特定舉措。取消費、延遲取消費，我們非常——正如我在評論中提到的，我們的資產管理團隊，我非常自豪，一直非常勤勉地與我們的運營商合作。我們發現 48 小時內取消預訂的情況增加，我們可以從中收取取消費用。我會告訴你，目前這是一個非常手動的過程。我們正在與各品牌合作，實現自動化，從而提高捕獲率。但我們確實期待這些。我們在本季度看到了良好的成長。我們確實如此——我們的目標是努力繼續推動這一點。就整體取消而言，我認為從我們正在討論的所有這些不同政策來看，都產生了積極的影響，這將進一步幫助我們在收入管理方面能夠更好地處理，即使這個預訂窗口非常短並且持續變短，也讓我們有更多機會在短時間內轉售這些房間。

Got it. And one more for me, on the share buyback. You bought some shares back of the quarter at a good price. What's your overall kind of outlook for buying back shares this year, especially if you are able to sell so many of the success portfolios or hotels that you talked about earlier?

知道了。我還有一個關於股票回購的問題。您以優惠的價格買回了本季的一些股票。您對今年回購股票的整體前景如何，特別是如果您能夠出售之前談到的大量成功投資組合或飯店？

I think what we've shown is that our appetite for shares is directly connected to the pricing of the shares on a particular day. Given recent increase in volatility in share prices, within the quarter we saw opportunity to acquire our shares at what we viewed as a significant discount to both the implicit value of our portfolio and the relative value of acquisitions opportunities within the market. We also saw opportunity to acquire individual assets. And I think what you'll continue to see is us assess and evaluate both opportunities and use the strength of our balance sheet to pursue those opportunities, which we feel will provide our shareholders with the greatest value.

我認為我們已經表明，我們對股票的興趣與特定日期的股票定價直接相關。鑑於近期股價波動加劇，我們在本季看到了以低於我們投資組合隱含價值和市場內收購機會相對價值的價格收購股票的機會。我們也看到了收購個人資產的機會。我想你會繼續看到我們評估和評價這兩個機會，並利用我們資產負債表的優勢來追求這些機會，我們認為這將為我們的股東提供最大的價值。

(Operator Instructions) Our next question comes from the line of Jeff Donnelly from 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。

Krissy, I'm just curious, do you feel that the renovation cycle on hotels has changed in recent years? Are brands pushing for more sooner? Or do you just think that maybe renovation cycle just kind of flexes with the hotel cycle itself?

Krissy，我只是好奇，您是否覺得近年來飯店的裝修週期發生了變化？品牌是否會更快追求更多？或者您只是認為裝修週期可能只是與酒店週期本身同步變化？

I think the renovation cycle has been pretty consistent for us. We're renovating about the same amount of hotels, plus or minus a hotel or 2, each year. And with those renovations, I mean, we're looking -- we're going through a very detailed process every year when we determine which hotels we're going to renovate. And they're somewhere between the 6- and 8-year time frame. If there's been more wear and tear on the hotel and there's more supply coming in and that hotel has gotten behind the competitive set, we might push that more towards the 6-year time frame. Or vice versa, if the hotel is doing well, guest satisfaction scores are great, the competitive landscape hasn't changed that much in the market, we might push that one more to 8 years. But it's been pretty -- you don't usually -- you won't hear us talk much about renovations on our calls, renovation disruption here or there because we're very consistent in how we renovate our hotels. And we think that, that's reflective and we're very much appreciative of the work that you guys do in looking at TripAdvisor and the scores out there because, because we renovate our hotels consistently, because we have pride in -- and as part of our balanced scorecard, including guest satisfaction scores, we feel that those fairly reflect that we do maintain a consistent renovation cycle.

我認為我們的裝修週期相當一致。我們每年翻新的酒店數量大致相同，有時會多或少翻新一兩家。對於這些翻新工程，我的意思是，我們每年都會經歷一個非常詳細的過程來決定要翻新哪些飯店。它們的時間範圍在 6 到 8 年之間。如果飯店的磨損越來越嚴重，而且有更多的供應進來，而該飯店已經落後於競爭對手，我們可能會將其進一步推向 6 年的時間範圍。反之亦然，如果飯店經營良好，客人滿意度很高，市場競爭格局沒有太大變化，我們可能會將這一期限再延長至 8 年。但這相當不錯——你通常不會——你不會聽到我們在電話中談論太多關於裝修的事情，也不會聽到這裡或那裡的裝修中斷，因為我們對酒店的裝修方式非常一致。我們認為，這是有反映的，我們非常感謝你們在查看 TripAdvisor 和那裡的分數方面所做的工作，因為我們不斷翻新我們的酒店，因為我們對此感到自豪 - 作為我們平衡記分卡的一部分，包括客人滿意度分數，我們認為這些公平地反映了我們確實保持一致的翻新週期。

[Doyle] will be happy you mentioned that. Actually, maybe a question for you and Justin. I'm just curious, the brand certainly has been spending more time, I guess, convincing owners the past 1 or 2 years that their numerous brands are sort of sticking in their respective swim lanes, I guess, mainly in terms of price. I'm curious what your perspective is. Do you see situations where the Hampton or a Tru is encroaching more on Hilton Garden Inn or similar dynamic with Marriott products? Maybe not necessarily surpassing on rates, but maybe getting sort of too close?

[Doyle] 會很高興你提到這一點。實際上，這可能是你和賈斯汀的一個問題。我只是好奇，我猜，該品牌在過去的一兩年里肯定花了更多的時間來說服車主，他們的眾多品牌都在各自的泳道上堅持，我猜，主要是在價格方面。我很好奇你的觀點是什麼。您是否看到漢普頓或 Tru 正在進一步侵蝕希爾頓花園酒店或萬豪產品的市場份額？或許在速度上不一定能超越，但可能已經太接近了？

Yes. So there are a number of factors that play into a property's ability to charge a particular rate within its marketplace. And location is key among those, property condition, amenities or adjacency to amenities or demand tariffs within a particular market. We've seen brands, you highlighted Hampton, that have certain brands within the larger brand family, have a tremendous amount of versatility. And in some markets, not only will the Hampton Inn be competing effectively with a Hilton Garden Inn in the same market, but it may be competing very effectively with an existing Hilton full-service product. And on the Marriott side, we see similar instances where Courtyards are competing or even a SpringHill Suites is competing very effectively with other brands within that chain scale. I think what you'll find is, as we continue to refine and reposition our portfolio, we will be consistent in looking to identify the best product to meet demand within that particular marketplace. And I think over time, what we'll begin to see is that the individual brands within the brand families become slightly less significant and the overall brand family and the associated loyalty program will become more significant, with the individual brands being nuances within the broader brand family. And I think we're mindful of that. We're looking at it and continuing again to look at our portfolio in that context and make adjustments, which we feel will help us to maximize returns for our shareholders in that changing environment.

是的。因此，有許多因素會影響一處房產在其市場內收取特定價格的能力。其中，地點、房產狀況、便利設施或便利設施相鄰性或特定市場內的需求關稅都是關鍵因素。我們已經看到品牌，正如您強調的漢普頓，在更大的品牌家族中擁有某些品牌，具有極大的多功能性。在某些市場中，漢普頓酒店不僅可以與同一市場的希爾頓花園酒店展開有效競爭，而且還可能與現有的希爾頓全方位服務產品展開非常有效的競爭。在萬豪方面，我們也看到類似的例子，萬怡酒店正在與同一連鎖酒店集團內的其他品牌競爭，甚至 SpringHill Suites 酒店也在與該連鎖酒店集團內的其他品牌展開非常有效的競爭。我想你會發現，隨著我們不斷改進和重新定位我們的產品組合，我們將始終如一地尋找最佳產品來滿足特定市場的需求。我認為，隨著時間的推移，我們將開始看到品牌家族中的單一品牌變得不那麼重要，而整個品牌家族和相關的忠誠度計劃將變得更加重要，單一品牌在更廣泛的品牌家族中只是細微的差別。我認為我們已經意識到了這一點。我們正在研究這個問題，並繼續在這種背景下審視我們的投資組合併做出調整，我們認為這將有助於我們在不斷變化的環境中為股東最大化回報。

Definitely agree with all of what Justin said. The one thing -- the additional piece that I would add is that as brands are -- as we work with the brands, we are very much vocal in helping them understand, as they continue to grow on their pipeline, that we are laser focused on looking at that contribution from our loyalty members and looking at brand.com contribution and all the different channels that those brands produce. And as long as we continue to see that, that's growing and growing more even with the additional supply, then we feel comfortable. And that's what we are currently seeing, and we're going to continue to work with them on additional programs and additional strategies that preference brands' direct contribution and bookings.

絕對同意賈斯汀所說的一切。我要補充的一點是，作為品牌——當我們與品牌合作時，我們會非常積極地幫助他們理解，隨著他們的管道不斷發展，我們專注於關注忠誠會員的貢獻、brand.com 的貢獻以及這些品牌生產的所有不同管道。只要我們繼續看到這種情況，即使有額外的供應，這種情況仍在不斷增長，那麼我們就會感到安心。這就是我們目前所看到的，我們將繼續與他們合作，制定更多計劃和策略，優先考慮品牌的直接貢獻和預訂。

I guess, maybe building off that answer. If you think down the road, that eventually becomes more about the brand family and maybe the margin, less about the brand. Could you see things like radius restrictions changing to be maybe less brand-specific and more sort of super-chain or family-related as opposed to what they are today? Or does that sort of seem unlikely?

我想，也許是基於這個答案。如果你進一步思考，你會發現最終問題將更多地在於品牌家族和利潤，而與品牌本身的關係則不那麼密切。您是否認為半徑限制等會發生變化，不再那麼針對特定品牌，而是與超級連鎖店或家庭相關，而不是像現在這樣？或者這看起來不太可能？

One thing that currently we get within our individual brands, and we get notifications with the Hampton Inn, we're still going to get notifications within the -- from Hilton on new hotels that are being developed that are within the brand family that might not be necessarily be the same brand. And the same thing with Marriott. So we still look at, and they still notify us based on being within the same brand family. So that's been something that's been consistent and then we communicate back based on how much we think that the impact would be based on the brand family and the nuances of the brand and the mix of business.

目前，我們在各個品牌內可以獲得通知，並且我們會收到來自漢普頓酒店的通知，我們仍然會收到來自希爾頓的通知，關於正在開發的新酒店，這些酒店屬於我們的品牌家族，不一定是同一品牌。萬豪也面臨同樣的情況。因此我們仍然會關注，並且他們仍然會根據同一品牌家族來通知我們。因此，這一直是一致的事情，然後我們會根據我們認為的影響程度取決於品牌家族、品牌的細微差別和業務組合來進行回饋。

I mean, I'd add to that. The conversation has already changed related to that, and brands are heavily focused on developing demand for the brand family within an individual marketplace. Much more focused on that than they are focused on creating demand for a specific branded product within a marketplace. And going back to nuances, top line is only a piece of what attracts us to individuals brands. And as we look to acquire a perfect brands within marketplaces, we're also looking at the operating model. And brands produce very different margins based on those operating models. And that continues [today]. So in a market, for example, where we see significant opportunity for a perfectly priced extended stay, we are going to select the product that most efficiently operates with that type of demand within a market.

我的意思是，我會補充這一點。與此相關的討論已經發生了變化，品牌主要關注在單一市場中開發對品牌家族的需求。他們更關注這一點，而不是專注於在市場中創造對特定品牌產品的需求。回到細微差別，頂線只是吸引我們關注個人品牌的一部分。當我們尋求在市場中收購完美品牌時，我們也在關注營運模式。並且，品牌根據這些營運模式所產生的利潤率也有很大差異。這種情況一直持續到今天。因此，例如，在某個市場中，我們發現以合適的價格長期住宿存在巨大機會，我們就會選擇最能滿足市場此類需求的產品。

Great. Actually just one more, and I don't want to leave Bryan out. On the destaggering, I guess, maybe more of a statement. If I'm not mistaken, I think last year guys you received about 58% or 60% of the vote, I think, in favor of destaggering, for the very reason that you said, it was a lot of those broker nonvotes. So it would seem like the odds are pretty good that you're going to cross over simple majority. I guess the question is, has anything changed in the composition of your shareholder base of record that would lead you to think you are not going to clear 50%?

偉大的。實際上只剩下一個了，我不想把布萊恩排除在外。關於令人震驚的事情，我想，也許更多的是一種聲明。如果我沒記錯的話，我認為去年你們獲得了大約 58% 或 60% 的選票，我認為，支持取消交錯稅制，原因正如你所說的，很多經紀人都投了反對票。因此看起來，你很有可能突破簡單多數。我想問題是，您的股東基礎組成是否發生了任何變化，導致您認為您無法獲得 50% 的股份？

You're right on point. We don't anticipate -- no real significant changes. If anything, we have slightly more institutional ownership now than we did last year. So that should help even push it further along. But you're right, those percentages are about right and then we anticipate similar for this year.

你說得對。我們預計不會發生任何真正重大的變化。如果說有什麼不同的話，那就是我們現在的機構所有權比去年略多一些。因此這應該有助於進一步推動它的發展。但您說得對，這些百分比大致正確，我們預計今年的情況也會類似。

Ladies and gentlemen, we have reached the end of the question-and-answer session, and I would like to turn the call back to Justin Knight for closing remarks.

女士們、先生們，問答環節已經結束，我想請賈斯汀奈特 (Justin Knight) 致閉幕詞。

Thank you, and thanks for joining us this morning. We hope that as you travel, you'll take opportunity to stay with us at one of our hotels. Have a great day.

謝謝，感謝您今天早上加入我們。我們希望您在旅行時能有機會入住我們的某家飯店。祝你有美好的一天。

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

今天的會議到此結束。現在您可以斷開線路。感謝您的參與。