Apple Hospitality REIT Inc (APLE) 2018 Q3 法說會逐字稿

Greetings, and welcome to Apple Hospitality REIT Third Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would like to turn the conference over to your host, Kelly Clarke. Please go ahead.

您好，歡迎參加 Apple Hospitality REIT 2018 年第三季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。我想將會議交給主持人凱利克拉克 (Kelly Clarke)。請繼續。

Thank you, and good morning. We welcome you to Apple Hospitality REIT's Third Quarter 2018 Earnings Call on this, the 6th day of November 2018.

謝謝，早安。歡迎您參加 Apple Hospitality REIT 於 2018 年 11 月 6 日舉行的 2018 年第三季財報電話會議。

Today's call will be based on the third quarter 2018 earnings release, which was distributed yesterday afternoon.

今天的電話會議將基於昨天下午發布的 2018 年第三季財報。

As a reminder, today's call will contain forward-looking statements as defined by federal securities laws, including statements regarding future operating results. These statements involve known and unknown risks and other factors, which may cause actual results, performance or achievements of Apple Hospitality to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. 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.

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.

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。

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

如需查看收益報告副本或有關該公司的更多信息，請訪問 applehospitalityreit.com。

This morning, Justin Knight, our Chief Executive Officer; Krissy Gathright, our Chief Operating Officer; and Bryan Peery, our Chief Financial Officer, will provide an overview of our results for the third quarter of 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 年第三季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 thank you, for joining us today. Before we get started, I'd like to take a moment to commend the operating teams at our hotels in the paths of Hurricanes Florence and Michael, who in the face of challenging and evolving circumstances work tirelessly to serve and care for our guests, associates and surrounding communities. In many ways, reporting on the storms and still to capture the magnitude of the damage caused in the affected areas. While the majority of our hotels in the paths of these storms did not sustain material damage and remained operational, the Panama City, Florida area sustained a direct hit from Hurricane Michael, and at this time, we anticipate that our Hampton Inn & Suites in Panama City Beach and our TownePlace Suites in Panama City will be closed through the end of the year. Although the buildings remain structurally sound, the devastation in the area has lengthened the lead times to complete the necessary remediation and repairs for the hotels to reopen. We look forward to the conclusion of this hurricane season and a full recovery for the resilient communities impacted by these storms.

謝謝你，凱利。早安，感謝您今天加入我們。在我們開始之前，我想花點時間讚揚一下我們位於颶風佛羅倫薩和邁克爾路徑上的酒店的營運團隊，他們面對充滿挑戰和不斷變化的情況，不知疲倦地為我們的客人、同事和周邊社區提供服務和照顧。從許多方面來說，通報風暴仍需要捕捉受災地區所造成的破壞的嚴重程度。雖然我們位於這些風暴路徑上的大多數酒店沒有遭受物質損失並繼續運營，但佛羅裡達州巴拿馬城地區卻遭到了颶風邁克爾的直接襲擊，目前，我們預計位於巴拿馬城海灘的漢普頓酒店及套房和位於巴拿馬城的 TownePlace Suites 酒店將關閉至年底。儘管建築結構依然完好，但該地區的破壞延長了酒店重新開業所需的補救和維修工作所需的準備時間。我們期待著這個颶風季節的結束以及受風暴影響的社區的全面恢復。

Storm disruption during the third quarter exacerbated what we had already anticipated to be a difficult quarter due to tough year-over-year comparison. RevPAR declined 2%, which offset growth for the portfolio during the first half of the year. Year-to-date through September, RevPAR growth for our portfolio was flat to last year.

由於與去年同期相比情況艱難，我們原本預計第三季的經營將更加困難，而第三季的風暴災害則進一步加劇了這一情況。RevPAR 下降了 2%，抵消了上半年投資組合的成長。截至今年 9 月，我們投資組合的 RevPAR 成長與去年持平。

Adjusted EBITDA grew by approximately 2% for the quarter and year-to-date. Continued efforts to augment ancillary income and manage expenses enabled us to achieve comparable hotels -- adjusted hotel EBITDA margin of 38% for the quarter and year-to-date. I'm pleased that despite challenges, our portfolio continues to produce industry-leading bottom line results. However, a better performance year-to-date and our outlook for the remainder of the year, we have reduced our full year 2018 guidance.

本季及年初至今的調整後 EBITDA 成長了約 2%。透過持續努力增加輔助收入和管理費用，我們實現了可比飯店——本季和年初至今的調整後飯店 EBITDA 利潤率為 38%。我很高興，儘管面臨挑戰，我們的產品組合仍繼續創造業界領先的獲利績效。然而，由於今年迄今的業績表現較好以及我們對今年剩餘時間的展望，我們下調了 2018 年全年業績預期。

Since the beginning of the year, we have acquired 4 hotels for an aggregate purchase price of $137 million and have 6 hotels under contract for a total purchase price of $146 million. 5 of these hotels are new construction projects, which we anticipate will be delivered over the next 2 years. All of the new build projects, which we have discussed in greater detail during prior calls, are with trusted developers with whom we have done business in the past. As with prior turnkey development projects, our contracts enable us to acquire the assets upon completion at a fixed maximum price, which locks in attractive per key pricing in the current rising cost environment.

自今年年初以來，我們已收購了 4 家酒店，總收購價為 1.37 億美元，並已簽訂了 6 家酒店的合同，總收購價為 1.46 億美元。其中 5 家酒店是新建項目，我們預計在未來 2 年內交付。我們在之前的電話會議中已經詳細討論過所有新建項目，這些項目都是與我們過去曾合作過的值得信賴的開發商合作的。與先前的交鑰匙開發項目一樣，我們的合約使我們能夠在專案完成後以固定的最高價格收購資產，從而在當前成本上升的環境下鎖定具有吸引力的每個關鍵定價。

In addition to these development projects, we are pleased to announce that in October, we entered into a contract for an existing Hyatt Place in Jacksonville, Florida. If all conditions to closing are met, we expect to acquire the Jacksonville Hotel in December of this year.

除了這些開發案之外，我們很高興地宣布，10 月份，我們簽訂了位於佛羅裡達州傑克遜維爾的現有凱悅酒店合約。如果所有成交條件都得到滿足，我們預計將於今年 12 月收購傑克遜維爾酒店。

During our last call, I highlighted the fact that we have been receiving an increased number of inbound inquiries from private equity looking for diversified portfolios of Marriott and Hilton select service hotels. The relative age and general quality of our portfolio enables us to be strategic in exploring these opportunities and to act only when we feel we can secure attractive pricing for the assets and redeploy proceeds in ways that further enhance the value of our remaining portfolio.

在我們上次通話中，我強調了這樣一個事實：我們收到了越來越多來自私募股權的諮詢，他們尋求萬豪和希爾頓精選服務酒店的多元化投資組合。我們的投資組合的相對年齡和整體品質使我們能夠策略性地探索這些機會，並且只有當我們認為能夠確保資產的有吸引力的定價並以進一步提高我們剩餘投資組合的價值的方式重新部署收益時才採取行動。

In August, we entered into a contract to sell 16 hotels for combined sales price of $175 million to one of these groups. Assuming completion of the transaction, the sale will improve top line performance and margins for our portfolio overall and adjust our market mix in ways, which we feel will further enhance the strength and stability of our platform for coming years. Combined with the July sale of our TownePlace Suites and SpringHill Suites Holes in Columbus, Georgia and the anticipated sale of the Residence Inn located in Springdale, Arkansas, which we currently have under contract. These asset sales will provide nearly $200 million to fund acquisitions and share buybacks.

8 月份，我們與其中一個集團簽訂了合同，以 1.75 億美元的總價出售 16 家酒店。假設交易完成，此次出售將提高我們整體投資組合的營收表現和利潤率，並以某種方式調整我們的市場組合，我們認為這將進一步增強我們平台未來幾年的實力和穩定性。加上我們 7 月出售的位於喬治亞州哥倫布的 TownePlace Suites 和 SpringHill Suites Holes，以及預計出售位於阿肯色州斯普林代爾的 Residence Inn（目前我們已簽訂了合約）。這些資產出售將提供近2億美元用於收購和股票回購。

Given the recent pullback in our share price, the purchase of our stock has been increasingly compelling relative to hotel acquisitions opportunities in the market. Under our share repurchase program, we have repurchased more than 1.6 million shares of our stock since the end of the third quarter. These shares were purchased as spread to the pricing for the portfolio we currently have under contract for sale and the bulk of the acquisitions opportunities we have underwritten in recent months. We will continue to assess share repurchases as we look at available opportunities for hotel acquisitions and deploy funds where we feel we can generate the greatest value for our shareholders.

鑑於我們股價近期回落，相對於市場上的飯店收購機會而言，購買我們的股票變得越來越有吸引力。根據我們的股票回購計劃，自第三季末以來我們已經回購了超過160萬股股票。這些股票的購買價差涵蓋了我們目前簽訂的銷售合約中的投資組合的定價以及我們近幾個月來承保的大部分收購機會。我們將繼續評估股票回購，尋找飯店收購的機會，並將資金部署到我們認為可以為股東創造最大價值的地方。

Ramping new hotel supply in some of our markets contributed to slower RevPAR growth for our portfolio during the quarter. However, given the current rising cost environment and limited availability of construction financing, we are beginning to see a moderation in new construction starts. Based on the outlook for our markets, we anticipate the supply could peak over the next year and that as we push into the latter part of 2019, ramping new supply will represent less of the headwind for us. At the end of the third quarter, approximately 63.5% of our properties and one or more upper midscale, upscale or upper upscale new construction projects within a 5-mile radius. As a percentage, supply growth for our markets has exceeded industry averages. Although demand has generally kept pace when competing new supply opens and ramps within our markets, we are often challenged to drive rate until occupancy levels out and the new hotels stabilize.

我們部分市場新酒店供應量的增加導致本季度我們酒店組合的每間可用客房收入 (RevPAR) 增長放緩。然而，鑑於當前成本上升的環境和建築融資的有限性，我們開始看到新建築開工量出現放緩。根據我們對市場的展望，我們預計供應量可能在明年達到峰值，而隨著進入 2019 年下半年，增加新供應量對我們來說將不再是太大的阻力。截至第三季末，我們約 63.5% 的物業以及一個或多個中高檔、高檔或超高檔新建項目位於 5 英里半徑範圍內。從百分比來看，我們市場的供應成長已經超過了行業平均水平。儘管當市場中出現新的競爭性供應並增加時，需求通常會保持同步，但我們經常面臨的挑戰是提高房價，直到入住率趨於平穩且新酒店穩定下來。

Strength of our brands, the low effect of -- and actual age of our hotels, our locations within markets and the quality of our on-site management teams all help maintain our competitive positioning and offset the long-term impact of new supply within our market. Despite recent stock market volatility and geopolitical uncertainty, broad economic indicators for the U.S. continue to improve, marked by robust GDP growth, low unemployment and rising corporate profit. Demand for hotel rooms remained strong in a majority of our markets, and we continue to see improvements in the business transient segment. Although top line growth was challenged during the third quarter, we continue to achieve high operating margins and strong bottom line results. With a focus on providing our investors with consistent dividends and appreciation in the value of their underlying investment, Apple Hospitality was structured to provide solid operations and be able to maximize results in any environment. Our portfolio consists of rooms-focused hotels that are aligned with industry-leading brands, operated by best-in-class management companies and broadly diversified across markets and demand generators. We are constantly looking to refine and strengthen our portfolio of hotels through meaningful transactions and renovation. And we maintain a flexible balance sheet that provides additional security during periods of volatility and the ability to pursue opportunities in the marketplace.

我們品牌的實力、酒店的低影響和實際年齡、我們在市場中的位置以及我們現場管理團隊的品質都有助於保持我們的競爭地位並抵消我們市場中新供應的長期影響。儘管近期股市波動和地緣政治不確定性，但美國的整體經濟指標持續改善，國內生產毛額成長強勁、失業率低、企業利潤上升。我們大多數市場的飯店客房需求依然強勁，我們繼續看到商務短暫旅行領域的改善。儘管第三季營收成長面臨挑戰，但我們仍繼續實現高營業利潤率和強勁的獲利業績。Apple Hospitality 致力於為我們的投資者提供持續的股息和基礎投資價值的升值，其結構旨在提供穩健的營運並能夠在任何環境下最大化收益。我們的投資組合包括以客房為中心的酒店，這些酒店與行業領先的品牌保持一致，由一流的管理公司運營，並在各個市場和需求產生者之間實現廣泛多元化。我們不斷尋求透過有意義的交易和翻新來完善和加強我們的酒店組合。我們保持靈活的資產負債表，以便在市場波動期間提供額外的保障，並有能力在市場中尋求機會。

Today with 241 hotels, diversified across 88 U.S. markets, we have 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, and we are confident we are well positioned as we head into 2019.

如今，我們擁有 241 家飯店，業務遍及美國 88 個市場，是最大的公開交易房地產投資信託基金 (REIT)，專注於住宿業的精選服務領域。我們策略的每個要素都有助於我們履行對股東的承諾，我們有信心在邁入2019年時做好充分準備。

I would now like to hand the call over to Krissy to provide additional detail on performance across our markets.

現在，我想將電話交給克莉絲，讓她提供更多關於我們各個市場表現的細節。

Thank you, Justin. Third quarter results were challenged by calendar shift, tough year-over-year comparisons due to elevated demands in the solar eclipse and restoration and recovery business following Hurricane Harvey and Irma in 2017. Disruption from Hurricane Florence at the end of September as well as continued competitive pressures in certain markets, while new supply is being absorbed. Although we experienced an indirect impact from increased cancellations ahead of the Hurricane Florence landfall and a shorter disruption in operations for the 5 hotels that were directly impacted, we are benefiting from some recovery demand that will continue through the fourth quarter. This lift will help mitigate, but not offset continued challenging comparisons from Hurricanes Harvey and Irma in the prior year.

謝謝你，賈斯汀。由於 2017 年颶風哈維和伊爾瑪過後日食和恢復業務需求增加，第三季業績受到日曆變化、同比困難等因素的挑戰。9 月底佛羅倫薩颶風造成的干擾以及某些市場持續的競爭壓力，同時新的供應正在被吸收。儘管我們受到了颶風佛羅倫薩登陸前取消預訂數量增加的間接影響，並且直接受影響的 5 家酒店的營運中斷時間較短，但我們仍受益於一些將持續到第四季度的復甦需求。這種提升將有助於緩解但不會抵消去年颶風哈維和颶風艾爾瑪帶來的持續挑戰。

And as Justin mentioned, our 2 hotels in the Panama City area that were impacted by Hurricane Michael in October are not expected to be fully operational before the end of this year. Our estimated third quarter impact from the national disasters, both current and prior year and the prior year request was 100 to 130 basis points. From a segmentation standpoint, our corporate-negotiated business increased 100 basis points, offset by decline in group room nights. Some of the decline in group is attributable to prior year storm recovery business and in some, its purposeful remixing to higher-rated segments. We have identified certain hotels, primarily in markets with ramping new supply to have an opportunity to grow group share and are working with the respected management companies on targeted efforts to proactively increase group bookings, especially on the shoulders and weekends. From a revenue strategy standpoint, we are also challenging our operators to ensure that revenue management, direct property sales and e-commerce functions are strategically aligned to drive the most profitable business to our hotels, factoring in unique market dynamics.

正如賈斯汀所提到的，我們位於巴拿馬城地區的兩家酒店在 10 月受到了颶風邁克爾的影響，預計今年年底前無法全面恢復營運。我們估計，第三季受全國性災害（包括今年和去年以及去年的要求）的影響為 100 至 130 個基點。從細分角度來看，我們的企業協商業務成長了 100 個基點，但被團體間夜量的下降所抵消。該集團業績下滑的部分原因是去年的風暴恢復業務，部分原因是該集團有意將業務重心轉向更高評級的板塊。我們已經確定了某些酒店，主要位於新供應量不斷增加的市場，以有機會增加團體份額，並且正在與受尊敬的管理公司合作，採取有針對性的措施，積極增加團體預訂量，尤其是在旺季和週末。從收益策略的角度來看，我們也正在挑戰我們的營運商，以確保收益管理、直接物業銷售和電子商務功能在策略上保持一致，從而為我們的酒店帶來最賺錢的業務，並考慮到獨特的市場動態。

For the quarter, some of our better-performing markets included: Knoxville, Chicago, Anchorage, Fort Worth, Panama City, Phoenix, Huntsville and Atlanta. Difficult hurricane-related comparisons resulted in lagging performance in the Houston and Miami, Fort Lauderdale area. While our Dallas and Austin markets were also challenged with nonrepeat hurricane-related benefits, performance in these markets has also been affected by the absorption of above-average growth of supply. Elevated demand surrounding last year's solar eclipse created tough comps for the Boise, Nashville, Idaho and Kansas City markets. Cancellations associated with Hurricane Florence impacted the Virginia Beach market. And while we feel positive about the long-term outlook for markets like Seattle and Oklahoma City, year-to-date supply growth of around 6% led to short-term underperformance. Significant new demand generators are in the works for both markets, including a new convention center in Oklahoma City and a expanded convention center in Seattle in addition to Google's new 930,000-square-foot campus and Amazon's continuing campus expansion to make Seattle like in some markets.

本季度，我們表現較好的市場包括：諾克斯維爾、芝加哥、安克拉治、沃斯堡、巴拿馬城、鳳凰城、亨茨維爾和亞特蘭大。與颶風相關的困難比較導致休士頓和邁阿密、勞德代爾堡地區的表現落後。雖然我們的達拉斯和奧斯汀市場也面臨著與颶風不再相關的收益的挑戰，但這些市場的表現也受到了高於平均水平的供應增長的影響。去年日食導致的需求增加，為博伊西、納許維爾、愛達荷和堪薩斯城市場帶來了嚴峻的競爭狀況。受颶風佛羅倫薩影響的取消活動影響了維吉尼亞海灘市場。雖然我們對西雅圖和俄克拉荷馬城等市場的長期前景持樂觀態度，但年初至今約 6% 的供應量成長率導致短期表現不佳。這兩個市場都在籌備重要的新需求產生器，包括在俄克拉荷馬城新建一個會議中心和在西雅圖擴建一個會議中心，此外還有谷歌新建的 930,000 平方英尺的園區和亞馬遜持續擴建的園區，以使西雅圖在某些市場變得像西雅圖一樣。

After a noisy and difficult September, October RevPAR growth was slightly positive. However, current booking position and forecast for November and December indicate moderate declines in RevPAR as we continue to face challenging year-over-year hurricane comps that will begin diminishing in early 2019. While demand for both business and leisure is still increasing across our portfolio, we do expect ongoing supply increases to limit RevPAR growth until supply growth levels start diminishing towards the latter part of 2019. Helping to partially offset the continuing difficult hurricane comps will be an expected boost from our 3 Atlanta area hotels during the Super Bowl and the ramp of our Downtown Phoenix, Hampton Inn & Suites, which opened in May of this year.

在經歷了喧囂而艱難的九月之後，十月的 RevPAR 增長略有正增長。然而，目前的預訂情況以及 11 月和 12 月的預測表明，RevPAR 將適度下降，因為我們將繼續面臨同比颶風帶來的挑戰，而颶風的同比收入將從 2019 年初開始下降。雖然我們整個投資組合中的商務和休閒需求仍在成長，但我們預計持續的供應增加將限制 RevPAR 的成長，直到 2019 年下半年供應成長水準開始下降。預計超級盃期間亞特蘭大地區的三家酒店以及今年 5 月開業的鳳凰城市中心漢普頓酒店及套房的開幕將有助於部分抵消持續艱難的颶風影響。

From a profitability standpoint, even with a modest decline in revenue, we were still able to achieve an impressive 38% hotel EBITDA margin. Continued focus on ancillary revenue, primarily cancellation revenues, resulted in a 23% increase in other revenues during the quarter. As for expenses, we are very pleased to see same-store expense growth just under 1% in a challenging labor environment. Same-store total labor dollars increased 2% accounting for 70 basis points of margin impact. With the decline in occupancy, same-store payroll per occupied room increased 3.6% for the quarter, bringing the increase to just under 3% per occupied room year-to-date through September.

從獲利能力的角度來看，即使收入略有下降，我們仍然能夠實現令人印象深刻的 38% 的酒店 EBITDA 利潤率。繼續關注輔助收入（主要是取消收入），導致本季其他收入成長了 23%。至於費用，我們很高興看到在充滿挑戰的勞動力環境下同店費用成長率略低於 1%。同店總勞動成本增加 2%，對利潤率造成 70 個基點的影響。隨著入住率的下降，本季每間入住客房的同店薪資上漲了 3.6%，使年初至今截至 9 月的每間入住客房的增幅略低於 3%。

We continue to see productivity gains through increasing utilization of property labor management technology platforms. At the same time, we are focused on ensuring that appropriate staffing levels are maintained and associate satisfaction and retention are prioritized to balance the objectives of mitigating costs increasing -- increases and maintaining guest satisfaction.

透過增加物業勞動力管理技術平台的利用，我們持續看到生產力的提高。同時，我們專注於確保維持適當的人員配備水平，並優先考慮員工滿意度和保留率，以平衡降低成本增加和維持客人滿意度的目標。

Outside of payroll cost, increases in insurance expense and property taxes resulted in a 50 basis point impact to margin. As we have always done, we continue to look for opportunities to gain greater value for the dollars we spent.

除工資成本外，保險費用和財產稅的增加導致利潤率受到 50 個基點的影響。正如我們一直以來所做的那樣，我們繼續尋找機會讓我們所花的錢獲得更大的價值。

I will now turn the call over to Bryan to provide additional detail on hurricane cost impact and our overall financial results.

現在我將把電話轉給布萊恩，讓他提供更多颶風成本影響和我們整體財務表現的細節。

Thanks, Krissy, and good morning. Quickly summarizing some results for the quarter. Total revenue was $332 million, an increase of 2% from the third quarter of 2017. Adjusted EBITDA was $123 million, also an increase of 2% from the same period last year. And modified FFO per share was $0.47 per share, down $0.01 per share compared to the third quarter of 2017.

謝謝，克麗西，早安。快速總結本季的一些結果。總營收為 3.32 億美元，較 2017 年第三季成長 2%。調整後EBITDA為1.23億美元，較去年同期也成長2%。調整後每股 FFO 為 0.47 美元，較 2017 年第三季下降 0.01 美元。

Year-to-date through September 30, total revenue increased 3% to $975 million, adjusted EBITDA increased 2% to $354 million and modified FFO per share declined 1% to $1.36 per share.

截至 9 月 30 日的年初至今，總營收成長 3% 至 9.75 億美元，調整後 EBITDA 成長 2% 至 3.54 億美元，調整後每股 FFO 下降 1% 至每股 1.36 美元。

Year-to-date, we have invested $43 million in capital expenditures and anticipate an additional $25 million to $30 million throughout the remainder of the year, consistent with our normal annual spend.

今年迄今為止，我們已投資 4,300 萬美元資本支出，預計今年剩餘時間還將額外投資 2,500 萬至 3,000 萬美元，與我們的正常年度支出一致。

Krissy and Justin touched on it, but in addition to the revenue disruption, we did experience additional costs in the quarter related to Hurricane Florence. 3 of our hotels in the hurricanes path have named storm insurance deductibles to their location. As a result, we recognized approximately $600,000 of cost or 20 basis points of margin to remediate and repair the affected hotels. We do not anticipate any additional Hurricane Florence-related costs net of business interruption proceeds for these hotels.

克莉絲和賈斯汀談到了這一點，但除了收入中斷之外，我們在本季度還經歷了與佛羅倫薩颶風相關的額外成本。我們位於颶風路徑上的三家酒店已將風暴保險免賠額指定為其所在地。因此，我們確認了約 60 萬美元的成本或 20 個基點的利潤，用於補救和修復受影響的酒店。我們預計，除了業務中斷收益外，這些飯店不會因颶風佛羅倫薩而產生任何額外的相關成本。

In the fourth quarter, we will incur approximately $900,000 or 30 basis points of margin impact of costs related to the remediation repair of hotels in the path of Hurricane Michael. Our 2 Panama City area hotels incurred considerable wind and water damage and also have named strong deductibles due to their location. Restoration work on these hotels is anticipated to be completed over the next several weeks. Since we are working through the claims and restoration process, we are not currently able to provide estimated business interruption proceeds. However, for reference, the hotels have been effectively closed since October 8 and will be for much of the fourth quarter. The business interruption proceeds will be recognized in our results upon receipt from the insurance carriers.

第四季度，我們將承擔約 90 萬美元或 30 個基點的與颶風邁克爾路徑上酒店修復相關成本的利潤影響。我們位於巴拿馬城地區的兩家酒店遭受了嚴重的風災和水災，並且由於其地理位置的原因，還被要求支付高額的免賠額。這些酒店的修復工作預計將在未來幾週內完成。由於我們正在進行索賠和恢復過程，因此目前無法提供估計的業務中斷收益。不過，作為參考，這些酒店自 10 月 8 日起實際上已經關閉，並且在第四季度的大部分時間都將處於關閉狀態。業務中斷收益將在從保險公司收到後計入我們的業績中。

We mentioned in the subsequent event last quarter, but to highlight for the quarter, in July and August, we completed the refinancing of over $1 billion of our credit facilities to new facilities, extended the maturities of the previous facilities, further spread maturities, reduced applicable spreads and provided additional flexibility in terms. At September 30, we had total outstanding debt of approximately $1.3 billion, with a weighted average maturity of 5.5 years and an average rate of 3.7%.

我們在上個季度的後續事件中提到過，但本季要強調的是，在 7 月和 8 月，我們完成了超過 10 億美元信貸額度的再融資，將其轉換為新的信貸額度，延長了之前信貸額度的期限，進一步擴大了期限，降低了適用利差，並在條款上提供了額外的靈活性。截至 9 月 30 日，我們的未償還債務總額約為 13 億美元，加權平均期限為 5.5 年，平均利率為 3.7%。

Availability under facilities totaled $327 million at the end of the quarter. Almost 80% of our debt was effectively fixed rate, with a weighted average rate of 3.9% and an average remaining term of 4.6 years. As Justin highlighted subsequent to the end of the quarter, we have acquired over 1.6 million shares of our common stock through our share repurchase program for a total of $26 million. We currently have a written trading plan in place intended to comply with rule 10b5-1. And repurchase program may be suspended or terminated at any time. As we had historically, we will execute on the program where we believe value can be created for our shareholders.

截至本季末，設施可用資金總額為 3.27 億美元。我們的債務幾乎 80% 都是有效固定利率，加權平均利率為 3.9%，平均剩餘期限為 4.6 年。正如賈斯汀在本季結束後強調的那樣，我們透過股票回購計畫回購了超過 160 萬股普通股，總額達 2,600 萬美元。我們目前已製定書面交易計劃，旨在遵守規則 10b5-1。且回購計劃可能隨時暫停或終止。正如我們過去所做的那樣，我們將執行我們認為可以為股東創造價值的計劃。

Based on our operating performance to date, our visibility in the business drivers for the remainder of the year and announced transactions, we anticipate results for 2018 to be in the following ranges: net income between $193 million and $207 million; the midpoint of $200 million is a reduction of $5 million from our prior guidance; comparable hotels RevPAR growth to be flat to down 75 basis points, the midpoint of down 38 basis points is a reduction of 138 basis points from our prior guidance; comparable hotels adjusted hotel EBITDA margin between 36.6% and 37.1%, the midpoint of 36.9% is a reduction of 45 basis points from our prior guidance; and adjusted EBITDA between $437 million and $447 million, the midpoint of $442 million is a reduction of $5 million from our prior guidance.

根據我們迄今為止的經營業績、我們對今年剩餘時間業務驅動力的預見性以及已宣布的交易，我們預計 2018 年業績將在以下範圍內：淨收入在 1.93 億美元至 2.07 億美元之間； 2 億美元的中點比我們之前的指導減少了 500 萬美元； 138 個基點；可比飯店調整後飯店 EBITDA 利潤率在 36.6% 至 37.1% 之間，中間值 36.9% 比我們之前的預期降低了 45 個基點；調整後的 EBITDA 在 4.37 億美元至 4.47 億美元之間，中間值 4.37 億美元的預期

During the third quarter, the company paid distributions of $0.30 per share or a total of approximately $69 million. Through September, the company paid distributions of $0.90 per share or a total of $207 million. The annualized $1.20 per common share represents a annual 7.4% yield based on our November 2 closing price of $16.13.

第三季度，該公司支付了每股 0.30 美元的分配，總計約 6,900 萬美元。截至 9 月份，該公司支付的股息為每股 0.90 美元，總計 2.07 億美元。根據我們 11 月 2 日 16.13 美元的收盤價計算，每股普通股年化收益 1.20 美元，相當於年收益率 7.4%。

Thank you for joining us this morning. Although the second half of the year has had and will have operational growth challenges, we do believe our portfolio will continue to produce strong results and that we have the balance sheet and experience to opportunistically improve value for our shareholders.

感謝您今天上午加入我們。儘管今年下半年面臨並將繼續面臨營運成長挑戰，但我們確信我們的投資組合將繼續產生強勁的業績，並且我們擁有資產負債表和經驗，可以抓住機會為股東提高價值。

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 Amanda Sweitzer with Baird.

（操作員指示）我們的第一個問題來自貝爾德的阿曼達·斯威策 (Amanda Sweitzer)。

I just had a few questions on the 16 hotel portfolio sale. Can you talk a little bit more kind of the profile of that buyer? I believe you mentioned private equity but it was more of a regional player? And then can you also tell us about how you chose which hotels to include in that portfolio?

我對 16 家酒店組合出售有幾個疑問。能否再多談談該買家的概況？我相信您提到了私募股權，但它更像是區域參與者？然後您能否告訴我們您是如何選擇將哪些酒店納入該投資組合的？

Sure. Thanks for joining us. I highlighted I think in the past several calls the fact that we have, for some time, been communicating or responding to reverse increase from a number of smaller private equity shops. The groups, generally speaking, has had national reach and haven't been specifically regionally focused. As we look to assemble portfolios for the various groups, in part, we were guided by their investment interest. Obviously, looking to align those interests with the interest that we had. The makeup of this portfolio specifically has been a -- it contained some of our assets that are in the smaller markets and those assets themselves tend to be smaller than our average for our portfolio and while they are high-quality assets as are all the assets in our portfolio. These assets tend to run on slightly lower RevPAR and as a result, slightly lower margins than our portfolio overall. For that reason, I have, added in my earlier remarks, we feel that given the pricing that we're able to achieve in this particular transaction and the results on the remaining portfolio, augmented by our ability to utilize proceeds both to buy shares and to reinvest in additional assets, we saw the opportunity as advantages.

當然。感謝您的加入。我強調，我認為在過去的幾次電話會議中，我們一段時間以來一直在與一些較小的私募股權公司溝通或回應反向增加的請求。一般來說，這些團體具有全國影響力，並沒有特別關注某個地區。當我們為不同的群體建立投資組合時，我們在某種程度上受到他們的投資興趣的引導。顯然，我們希望將這些利益與我們的利益結合。這個投資組合的組成具體來說是——它包含一些位於較小市場的資產，這些資產本身往往小於我們投資組合的平均水平，但它們都是高品質資產，就像我們投資組合中的所有資產一樣。這些資產的 RevPAR 往往略低，因此利潤率也比我們的整體投資組合略低。因此，我在先前的評論中補充道，我們認為，鑑於我們能夠在此次特定交易中實現的定價以及剩餘投資組合的結果，再加上我們能夠利用收益購買股票和再投資於其他資產，我們認為這個機會是優勢。

And then in terms of that pricing that you mentioned, you think you're achieving a portfolio premium with this sale and then if so can you quantify it?

然後，就您提到的定價而言，您認為透過這次銷售您可以獲得投資組合溢價，如果是的話，您能量化它嗎？

Yes. And I highlighted that, that was something that we felt would exist given the availability of financing for existing -- Hilton and Marriott [flexers] hotels. We feel relative to the individual assets that we've been selling that we're able to achieve in the neighborhood of a 100 basis point cap rate spend on the portfolio, which again we think drives incremental value.

是的。我強調指出，我們認為，鑑於現有希爾頓和萬豪酒店的融資情況，這種情況是會存在的。我們認為，相對於我們一直在出售的個別資產，我們能夠實現投資組合 100 個基點左右的資本化率支出，我們再次認為這會推動增量價值。

And then last question for me. Can you just talk about the gaps of demand that's remaining in the market for portfolio sales? Do you think you'll be able to achieve a similar premium later this year or early next year and some additional portfolio sale?

這是我的最後一個問題。您能否談談投資組合銷售市場中仍存在的需求缺口？您認為您能在今年稍後或明年年初實現類似的溢價並進行一些額外的投資組合銷售嗎？

It's interesting. The debt market continue to be relatively strong, even with interest rates going up. We continue to see wide availability of debt financing for existing assets. Spreads have tightened a little bit and loan to values have increased a little bit on the margin offsetting increases in interest rates. I think, well, one, this is a group that we have never done business with before. And this is a large portfolio for this particular group. There are others like this group who I think are looking for transactions in this size. It will be interesting to see how they respond to the recent pullback in the public market. Typically, private equity follows those markets. And I think the availability of equity for transactions of this kind on a go-forward basis will really depend on broad sentiment for the industry as a whole as we get into the latter part of the year. But certainly, from a debt financing standpoint, we continue to see sufficient availability to facilitate transactions of this size on a go-forward basis.

這很有趣。即使利率上升，債務市場仍保持相對強勁。我們繼續看到現有資產的債務融資廣泛可用。利差略有收窄，貸款價值比略有上升，抵銷了利率上升的影響。我認為，首先，我們以前從未與這個集團做過生意。對於這個特定群體來說，這是一個龐大的投資組合。我認為還有其他人也像這個群體一樣在尋求這種規模的交易。看看他們如何應對近期公開市場的回調將會很有趣。通常情況下，私募股權會關注這些市場。我認為，未來此類交易的股權可用性實際上將取決於今年下半年整個行業的普遍情緒。但可以肯定的是，從債務融資的角度來看，我們仍然看到足夠的可用性來促進這種規模的交易。

(Operator Instructions) Our next question comes from the line of Anthony Powell with Barclays.

（操作員指示）我們的下一個問題來自巴克萊銀行的安東尼·鮑威爾。

Similar question. How many more hotels do you have in your portfolio that meet the criteria that is -- or similar to the one's that you sold. Just trying to figure out how many backups that can be sold over time and the amount of proceeds we can generate?

類似的問題。您的投資組合中還有多少家飯店符合標準或與您出售的飯店類似？只是想弄清楚隨著時間的推移可以出售多少備份以及我們可以產生多少收益？

Good question, Anthony. And thanks for joining us. As we look at our portfolio, as I mentioned in my prepared remarks, we're really strategic in pursuing potential sales. We are fortunate to have a relatively young portfolio with brands that are very consistent and high-performing brands. Even within this portfolio, the assets that we're looking to sell would continue to be a good fit if the transaction were for some reason not to proceed. I think as we look at our portfolio, we are continually looking for opportunities to improve on the margin, but I don't think I could effectively highlight for you a portion of our assets that we're aggressively looking to dispose of. That's really not how this particular transaction came about. Nowhere how we would look at transactions on a go-forward basis. We feel comfortable to keeping the assets that we have by-and-large I'd say by that, I mean, nearly 100% of our assets did very well within our product portfolio and our strategy for significant geographic diversification. And we'll pursue opportunities like this where we feel we can achieve pricing that enables us to redeploy proceeds in a way that's accretive for our shareholders.

問得好，安東尼。感謝您的參與。正如我在準備好的演講中提到的那樣，當我們審視我們的投資組合時，我們在追求潛在銷售方面確實具有戰略性。我們很幸運擁有一個相對年輕的品牌組合，這些品牌都非常穩定且表現優異。即使在這個投資組合中，如果交易因某種原因無法進行，我們希望出售的資產仍然會很合適。我認為，當我們審視我們的投資組合時，我們會不斷尋找提高利潤率的機會，但我認為我無法有效地向您強調我們正在積極尋求處置的部分資產。這筆交易其實並不是這樣發生的。我們沒有辦法從長遠角度看待交易。我們對保留現有資產感到很放心，總的來說，我的意思是，幾乎 100% 的資產在我們的產品組合和重大地理多元化策略中都表現得非常好。我們將尋求這樣的機會，我們認為我們可以實現使我們能夠以一種為股東增值的方式重新部署收益的定價。

Got it. So if your stock remains at current levels, kind of in the $16 range, would you be likely to sell more assets more quickly or does that not play into it?

知道了。那麼，如果您的股票保持在當前水平，即 16 美元左右，您是否會更快地出售更多資產，或者這與此無關？

No, I think, given what we're seeing in the market and the value of our stock and the variance between that and where we can sell assets from our portfolio, I think, it makes sense for us to continue to pursue asset sales and to buy shares. We don't think that this is a perpetual state, but it certainly, created an opportunity in the short term or the near term for us to drive incremental value for our shareholders.

不，我認為，考慮到我們在市場上看到的情況和我們股票的價值以及與我們可以從投資組合中出售資產之間的差異，我認為，我們繼續進行資產出售和購買股票是有意義的。我們不認為這是一種永久的狀態，但它確實在短期或近期為我們創造了為股東創造增量價值的機會。

Got it. And moving on to '19, I guess, I know you're not giving guidance now, but it seems like you highlighted that supply will remain elevated through at least the back half or the end of '19. So are you implying that you -- similar RevPAR growth for most of the year next year or was that not what you're trying to imply?

知道了。接下來是 19 年，我知道您現在沒有給予指導，但您似乎強調了供應量至少在 19 年下半年或年底仍將保持高位。那麼，您是在暗示明年大部分時間的 RevPAR 成長情況會類似，還是這不是您想要暗示的？

I think -- and Krissy can add to this, but we're disadvantage this year by particularly challenging comps in the back half of the year. While we do anticipate that in the fourth quarter, we'll -- into the beginning of the first quarter, we'll have some benefit as we see recovery business in a few of our markets that were hit by the hurricane. We don't see ourselves facing the same type of year-over-year comps that really were large contributors to the underperformance for our portfolio in the third quarter. So in terms of fundamentals, I think we continue to see reasonably strong fundamentals. On the demand side, we're seeing very strong demand as Krissy highlighted in her remarks and I did in mine. We have several markets that are challenged by increased levels of supply. We see the supply levels beginning to moderate in terms of new deliveries as we push towards the back half of next year. And that combined with easier year-over-year comps should produce reasonably strong numbers for our portfolio. And while we're not giving guidance, and you can remember consistency in our portfolio would be with what we anticipated as we started this year.

我認為——克麗西可以補充這一點，但今年我們處於劣勢，因為下半年的競爭尤其激烈。雖然我們確實預計在第四季度，也就是第一季初，我們會獲得一些好處，因為我們看到一些受到颶風襲擊的市場的業務正在復甦。我們認為自己不會面臨與去年同期相同的情況，而這確實是導致我們投資組合在第三季表現不佳的主要原因。因此，就基本面而言，我認為我們繼續看到相當強勁的基本面。在需求方面，我們看到了非常強勁的需求，正如克莉絲在她的評論中所強調的，也是我在我的評論中所強調的。我們有幾個市場面臨供應水準增加的挑戰。隨著明年下半年的臨近，我們看到新交付的供應水準開始放緩。再加上年增率放緩，我們的投資組合應該能取得相當強勁的業績。雖然我們沒有給予指導，但您可以記住，我們的投資組合與我們今年年初預期的保持一致。

And I'll just -- Anthony, thank you for getting up for us so early in the morning, we really appreciate that. Looking at next year, just to give you a little bit of additional color, some benefits will be that we -- well, we have more concentration in Atlanta than we did in Minneapolis, so we should benefit from the Super Bowl. Also, we have a relatively mature portfolio, but we do have some hotels that are ramping this year. Phoenix, for instance, the Downtown Hampton Inn & Suites has had a negative impact on us this year in a strong market. But next year should have outsized growth, with it being open a full year in May of next year. Justin mentioned that there will be some lifts. I don't foresee it being material continuing from the first Hurricane Florence. But also Panama City, that market has definitely been very negatively impacted unfortunately from Hurricane Michael. And once we're able to get those hotels back open we should be able to benefit from recovery business. With that being said, we are still going to be challenged into the first quarter of next year with comps from -- with tough comps from the Houston and to some extent, even the Southern Florida markets from the hurricanes in 2017. And if you look overall, at -- the overall economy, while things are still going very well with corporate profits and consumer confidence and things overall from a macroeconomic standpoint look good with potential headwinds from a global standpoint, there is an expectation for a slightly lower GDP growth next year. So we will be factoring that into our guidance as well as Justin just mentioned that supply will continue to pressure us to some extent until we enter the latter part of next year. So we'll be taking all of those things into account as we look to finalize our guidance for next year. We're in the process of collecting all the budgets now. So we don't have a -- we have an idea, but we don't have a -- we don't have a full picture at this point.

我只想說——安東尼，謝謝你這麼早就起床為我們服務，我們真的很感激。展望明年，只是為了給你一點額外的色彩，一些好處是，我們在亞特蘭大比在明尼阿波利斯更加集中，所以我們應該從超級碗中受益。此外，我們擁有相對成熟的酒店組合，但今年確實有一些酒店正在擴張。以鳳凰城為例，今年市場表現強勁，但市中心漢普頓酒店及套房卻為我們帶來了負面影響。但明年應該會有大幅成長，因為明年 5 月將開放全年。賈斯汀提到將會有一些電梯。我預計它不會成為第一次佛羅倫薩颶風的延續。但不幸的是，巴拿馬城的市場也確實受到了颶風邁可的嚴重負面影響。一旦我們能夠重新開放這些酒店，我們就能夠從復甦業務中受益。話雖如此，我們在明年第一季仍將面臨挑戰，2017 年颶風為休士頓市場，甚至某種程度上南佛羅裡達市場帶來了嚴峻的挑戰。如果你從整體來看，雖然整體經濟狀況依​​然良好，企業利潤和消費者信心都有所提高，而且從宏觀經濟角度來看總體形勢良好，但從全球角度來看可能存在阻力，預計明年 GDP 成長將略有下降。因此，我們將把這一點納入我們的指導中，正如賈斯汀剛才提到的，供應將繼續在一定程度上給我們帶來壓力，直到我們進入明年下半年。因此，在最終確定明年的指導方針時，我們會考慮所有這些因素。我們現在正在收集所有預算。所以，我們還沒有──我們有一個想法，但我們還沒有──我們目前還沒有一個完整的畫面。

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

女士們、先生們，我們的問答環節已經結束。我想將電話轉回給賈斯汀奈特 (Justin Knight) 做最後發言。

Thank you, and thanks, everybody for joining us this morning. We recognize this is an election day. We hope you take the opportunity to go out and vote, and as you travel, as always, we hope you to take the opportunity to stay with us at one of our hotels. Have a great day. We'll talk to you soon.

謝謝大家，也謝謝大家今天早上加入我們。我們認識到今天是選舉日。我們希望您能藉此機會出去投票，並且像往常一樣，當您旅行時，我們希望您能藉此機會入住我們的某家酒店。祝你有美好的一天。我們很快會和你聯絡。

This does conclude today's teleconference. You may now disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。現在您可以斷開線路了。感謝您的參與。