Apple Hospitality REIT Inc (APLE) 2019 Q4 法說會逐字稿

Greetings. Welcome to Apple Hospitality REIT Fourth Quarter and Full Year 2019 Earnings Call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Kelly Clarke, Vice President, Investor Relations. Thank you. You may begin.

問候。歡迎參加 Apple Hospitality REIT 2019 年第四季和全年財報電話會議。（操作員指示）請注意，本次會議正在錄音。現在我將會議交給主持人、投資者關係副總裁凱利克拉克 (Kelly Clarke)。謝謝。你可以開始了。

Thank you, and good morning. We welcome you to Apple Hospitality REIT's Fourth Quarter and Full Year 2019 Earnings Call on this, the 25th day of February 2020. Today's call will be based on the fourth quarter and full year 2019 earnings release and Form 10-K, which were distributed and filed yesterday afternoon.

謝謝，早安。歡迎您參加 Apple Hospitality REIT 於 2020 年 2 月 25 日舉行的 2019 年第四季和全年財報電話會議。今天的電話會議將基於昨天下午分發和提交的 2019 年第四季和全年財報以及 10-K 表格。

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 2019 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. In addition, certain non-GAAP measures of performance such as EBITDA, EBITDAre, adjusted EBITDAre, adjusted hotel 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.

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 2019 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。此外，本次電話會議也將討論某些非 GAAP 績效指標，例如 EBITDA、EBITDAre、調整後的 EBITDAre、調整後的飯店 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; and Liz Perkins, Senior Vice President, Corporate Strategy and Reporting, will provide an overview of our results for the fourth quarter and full year 2019 as well as 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)；以及企業策略和報告高級副總裁 Liz Perkins 將概述我們 2019 年第四季度和全年的業績以及該行業和公司的前景。概述之後，我們將開始問答環節。

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

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

Thank you, Kelly. Good morning, and thank you for joining us. Before I get started, as we've discussed previously, Bryan Peery and Krissy Gathright plan to retire from their current officer roles with the company during the first quarter. We are close to finalizing plans for the reallocation and transition of their responsibilities and anticipate making an announcement in the coming weeks. I would like to take this opportunity to recognize both of them for their significant contributions to the Apple REIT companies over the years.

謝謝你，凱利。早安，感謝您加入我們。在我開始之前，正如我們之前討論過的，Bryan Peery 和 Krissy Gathright 計劃在第一季從公司現任高階主管職位上退休。我們即將完成重新分配和移交職責的計劃，並預計在未來幾週內發佈公告。我想藉此機會表彰他們兩位多年來對 Apple REIT 公司的重大貢獻。

Krissy Gathright was the company's first employee and has been an integral part of the development of our strategy and our team. She is one of the brightest and most talented people I know, and has been a tremendous pleasure to work with her over the past 20 years. Krissy joined our Board of Directors last year, and I'm grateful that she will continue to be a resource to us in that capacity. Her industry knowledge and understanding of our business are invaluable.

Krissy Gathright 是公司的第一位員工，也是我們策略和團隊發展中不可或缺的一部分。她是我認識的最聰明、最有才華的人之一，過去 20 年來與她共事是我的榮幸。克麗西 (Krissy) 去年加入了我們的董事會，我很感激她將繼續以這一身份為我們提供資源。她的行業知識和對我們業務的理解非常寶貴。

Bryan has been with the company for nearly as long and has been integrally involved in the shaping of our business. His dedication to the success of our company, our shareholders and our team has been absolutely incredible over the years, and he will be missed. Upon stepping down from his current officer position, Bryan will continue with the company in an advisory capacity to ensure a smooth transition.

布萊恩在公司工作的時間幾乎與他一樣長，並且一直積極參與我們業務的塑造。多年來，他為我們公司、股東和團隊的成功所做出的貢獻令人難以置信，我們會想念他的。布萊恩卸任現任職務後，將繼續擔任公司顧問，確保順利過渡。

I'm joined on today's call by Liz Perkins. Liz began her career in public accounting and joined the Apple REIT companies as an asset manager in 2006. For the past 6 years, Liz has worked closely with me on corporate strategy and has spent a significant amount of time on the road in meetings with many of you. I am grateful to Liz and the incredibly talented and committed Apple Hospitality team members and the leadership of our senior managers who have worked together through multiple economic cycles, industry evolutions and corporate transitions. We are fortunate to have a 10-year group of employees that are intelligent, experienced and passionate about driving industry-leading results and maximizing value for our shareholders.

莉茲·珀金斯 (Liz Perkins) 也和我一起參加了今天的電話會議。Liz 的職業生涯始於公共會計領域，並於 2006 年加入 Apple REIT 公司擔任資產經理。在過去的 6 年裡，Liz 與我密切合作制定公司策略，並花了大量時間在路上與你們中的許多人開會。我非常感謝 Liz 和才華橫溢、盡職盡責的 Apple Hospitality 團隊成員以及我們高級經理的領導，他們共同經歷了多個經濟週期、行業變革和企業轉型。我們很幸運擁有一支擁有 10 年經驗的員工隊伍，他們聰明、經驗豐富且熱衷於推動行業領先的成果並為我們的股東實現價值最大化。

Together with our management companies, our team continued to work diligently in 2019 to maximize profitability and our portfolio of high-quality rooms focused hotels produced results in line with our expectations for both the fourth quarter and the full year despite challenging year-over-year storm and disaster-related comps, new supply and continued wage pressure in many of our markets.

我們的團隊與管理公司一起，在 2019 年繼續勤奮工作，以最大程度地提高盈利能力，儘管我們在許多市場面臨著與去年同期相比風暴和災難帶來的挑戰、新增供應和持續的工資壓力，但我們專注於高品質客房的酒店組合的業績仍符合我們對第四季度和全年的預期。

During the fourth quarter, ADR decreased 1.2%, partially offset by 0.3% increase in occupancy, resulting in a comparable hotels RevPAR decline of 0.9%. RevPAR for the full year was essentially flat with ADR up 0.2% and occupancy down 0.1%, slightly better than the midpoint of our revised 2019 guidance.

第四季度，平均房價下降 1.2%，但入住率增加 0.3% 部分抵消了這一下降，導致可比飯店平均每間可用客房收入下降 0.9%。全年 RevPAR 基本持平，ADR 上漲 0.2%，入住率下降 0.1%，略優於我們修訂後的 2019 年指引的中位數。

Summarizing some of our results for the quarter and the full year, total revenue was $290 million and $1.3 billion, adjusted EBITDAre was $86 million and $429 million and modified FFO per share was $0.32 and $1.63, respectively. For the full year 2019, G&A expense was $36 million, representing a year-over-year increase due primarily to senior management transition costs and outperformance of the company's relative shareholder return metrics, which are components for the company's incentive plan.

總結本季和全年的部分業績，總收入分別為 2.9 億美元和 13 億美元，調整後 EBITDAre 分別為 8,600 萬美元和 4.29 億美元，調整後每股 FFO 分別為 0.32 美元和 1.63 美元。2019 年全年，一般及行政管理費用為 3,600 萬美元，較去年同期成長，主要原因是高階管理層過渡成本以及公司相對股東回報指標的優異表現，而這些指標是公司激勵計畫的組成部分。

With top line growth muted and continued cost pressures, we experienced modest declines in operating margins. Comparable hotels adjusted hotel EBITDA margin was 33% for the quarter and 37% for the full year, though slightly down year-over-year, 130 basis points for the quarter and 60 basis points for the full year, these margins continue to be among the strongest in our industry, and I commend our team for their diligent efforts to maximize the profitability of our assets in a challenging operating environment.

由於營業收入成長放緩和持續的成本壓力，我們的營業利潤率略有下降。可比飯店調整後的飯店 EBITDA 利潤率本季為 33%，全年為 37%，儘管同比略有下降（本季下降 130 個基點，全年下降 60 個基點），但這些利潤率仍然屬於我們行業中最強的，我讚揚我們的團隊在充滿挑戰的營運環境中為最大限度地提高資產環境中為最大限度地提高資產的努力。

We finished the year with $1.3 billion of total outstanding indebtedness and a current combined weighted average interest rate of approximately 3.6% and weighted average debt maturities of 5 years. Undrawn capacity on our unsecured credit facilities as of December 31 was approximately $374 million. With just 3.1x net debt to EBITDA, no significant maturities over the next 3 years, and a relatively young portfolio, we are in a position to be patient, flexible and opportunistic as we work to capitalize on dislocations that may occur in the market. During 2019, we purchased approximately 300,000 shares under our share repurchase program at an average price of $14.92 per share for a total purchase price of approximately $4.3 million.

截至今年底，我們的未償還債務總額為 13 億美元，目前綜合加權平均利率約為 3.6%，加權平均債務期限為 5 年。截至 12 月 31 日，我們無擔保信貸額度的未提取額度約為 3.74 億美元。由於淨債務與 EBITDA 比率僅為 3.1 倍，未來 3 年內沒有重大到期債務，且投資組合相對年輕，我們可以保持耐心、靈活和抓住機會，努力利用市場可能出現的混亂。2019 年，我們根據股票回購計畫以平均每股 14.92 美元的價格購買了約 30 萬股，總購買價約為 430 萬美元。

As of December 31, 2019, approximately $360 million remained available for purchase under our share repurchase program. As I've highlighted on past calls, we intend to use this program opportunistically when we see potential to create meaningful long-term value for our shareholders as a result of dislocations in the public market.

截至 2019 年 12 月 31 日，根據我們的股票回購計劃，仍有約 3.6 億美元可供購買。正如我在過去的電話會議上所強調的那樣，當我們看到由於公開市場混亂而有可能為股東創造有意義的長期價值時，我們打算抓住機會利用這個計劃。

Since the beginning of 2019, we have sold 12 hotels for a combined total of approximately $135 million. Also in December of 2019, we entered into a contract for the sale of our 230-room SpringHill Suites by Marriott in Boise, Idaho for a gross sales price of $32 million. This sale is expected to be completed in the first quarter of 2020, and the company anticipates recognizing a gain upon completion of the sale. We believe that current interest in high-quality rooms focused assets, combined with strong debt markets will continue to create opportunities for selective dispositions from our portfolio in the coming year. These proceeds will be used in part to fund the acquisition of construction projects, which we currently have under contract, but may also be used to opportunistically fund share repurchases or targeted acquisitions of existing assets that enhance the growth profile and value of our larger portfolio.

自 2019 年初以來，我們已出售 12 家酒店，總價值約為 1.35 億美元。此外，在 2019 年 12 月，我們簽訂了出售位於愛達荷州博伊西的擁有 230 間客房的萬豪 SpringHill Suites 酒店的合同，總售價為 3200 萬美元。此次出售預計將於 2020 年第一季完成，公司預計出售完成後將確認收益。我們相信，目前對高品質客房資產的興趣，加上強勁的債務市場，將在來年繼續為我們的投資組合中的選擇性處置創造機會。這些收益將部分用於資助我們目前已簽約的建築項目的收購，但也可能用於機會性地資助股票回購或有針對性地收購現有資產，以提高我們更大投資組合的成長前景和價值。

We acquired 3 hotels in 2019 for a combined total of approximately $59 million. Our current acquisitions pipeline is approximately $209 million with projects in Cape Canaveral, Florida; Tempe, Arizona; Madison, Wisconsin; and Denver, Colorado.

我們於 2019 年收購了 3 家飯店，總價值約 5,900 萬美元。我們目前的收購管道價值約為 2.09 億美元，項目位於佛羅裡達州卡納維拉爾角；亞利桑那州坦佩；威斯康辛州麥迪遜；以及科羅拉多州丹佛市。

During 2019, we invested approximately $79 million in capital expenditures. These investments in our hotels add to their operational stability and help to ensure the long-term competitiveness of our portfolio. We plan to invest between $80 million and $90 million in 2020, with major renovations at between 25 and 30 hotels, including our full-service Marriott in Richmond, Virginia, where renovation began in the fourth quarter of last year, and our full-service Marriott in Houston, Texas.

2019 年，我們投資了約 7,900 萬美元的資本支出。對我們酒店的這些投資增加了它們的營運穩定性，並有助於確保我們酒店組合的長期競爭力。我們計劃在 2020 年投資 8000 萬至 9000 萬美元，對 25 至 30 家酒店進行大規模翻新，其中包括位於弗吉尼亞州里士滿的全方位服務萬豪酒店（該酒店於去年第四季度開始翻新）和位於德克薩斯州休斯頓的全方位服務萬豪酒店。

Our experienced in-house project managers work closely with our asset managers, third-party operators, and the brands to deliver cost-effective, high-impact results while minimizing property level disruption. We are committed to enhancing and incorporating sustainability opportunities into our investment and asset management strategies, minimizing our environmental impact. The hotels we own are efficient by design, and we seek to build upon this efficiency by investing in proven sustainability practices when renovating our hotels and in portfolio-wide initiatives that enhance asset value while also improving environmental performance.

我們經驗豐富的內部專案經理與我們的資產經理、第三方營運商和品牌密切合作，以提供具有成本效益、高影響力的成果，同時最大限度地減少對財產層面的干擾。我們致力於加強並將永續發展機會納入我們的投資和資產管理策略中，最大限度地減少對環境的影響。我們旗下的飯店在設計上都是高效的，我們力求透過在翻新飯店時投資經過驗證的可持續發展實踐以及在提升資產價值的同時改善環境績效的投資組合範圍內的舉措來鞏固這種效率。

Projects include a variety of equipment upgrades and replacements that reduce energy and water consumption and improved waste management. At the end of the fourth quarter, approximately 64% of our hotels had 1 or more upper midscale, upscale or upper upscale new construction projects underway within a 5-mile radius, which represents a decrease of 150 basis points from what we reported at the end of the third quarter. While we are pleased to see a slight decrease in construction starts, we anticipate that new supply will continue to be a challenge for us in a number of our markets during the coming year.

項目包括各種設備升級和更換，以減少能源和水的消耗並改善廢物管理。截至第四季末，我們約有 64% 的飯店在 5 英里半徑範圍內擁有 1 個或多個中高檔、高檔或超高檔新建築項目，與第三季末報告的數字相比下降了 150 個基點。雖然我們很高興看到新開工數量略有下降，但我們預計，來年新供應仍將是我們在多個市場面臨的挑戰。

This, combined with expectations for slowing GDP growth, potential volatility associated with an election year and ongoing concerns surrounding the impact of the coronavirus act as a counterbalance to continued low unemployment, strong consumer confidence and other positive indicators of overall economic health. Taking into consideration these broad economic factors as well as an expectation for continued property level cost pressures, we are cautious in our near-term expectations for performance growth.

再加上對 GDP 成長放緩的預期、選舉年帶來的潛在波動以及對冠狀病毒影響的持續擔憂，這些因素抵消了持續的低失業率、強勁的消費者信心和其他整體經濟健康的積極指標。考慮到這些廣泛的經濟因素以及對持續的房地產成本壓力的預期，我們對近期業績成長的預期持謹慎態度。

Our operational outlook for 2020 includes the following. Net income between $134 million and $161 million, comparable hotels RevPAR between negative 2% and 0, comparable hotels adjusted hotel EBITDA margin between 34.5% and 35.5% and adjusted EBITDAre between $394 million and $414 million. Over our 20-year history in the lodging industry, the Apple REIT companies have owned over 400 hotels; and through our ownership and transaction experience, we have fine-tuned our strategy for hotel ownership that mitigates volatility, provides consistency in operations and produces value for our investors throughout real estate and economic cycles.

我們對 2020 年的營運展望如下。淨收入在 1.34 億美元至 1.61 億美元之間，可比飯店 RevPAR 在負 2% 至 0 之間，可比飯店調整後飯店 EBITDA 利潤率在 34.5% 至 35.5% 之間，調整後 EBITDA 在 3.94 億美元至 4.14 億美元之間。在我們涉足住宿行業 20 年的歷史中，Apple REIT 公司擁有超過 400 家酒店；透過我們的所有權和交易經驗，我們調整了酒店所有權策略，以減輕波動性、提供營運的一致性並在整個房地產和經濟週期中為我們的投資者創造價值。

Our mission is and has always been to provide our investors with attractive dividends and appreciation in the value of their underlying investment over time. Over the past year, we paid $1.20 per share or a total of approximately $269 million in dividends. Based on our February 20 closing price of $15.12, this represents a 7.9% yield. Operations continue to be healthy for our portfolio. And despite uncertainty in the near-term macroeconomic environment we remain confident that with the strength of our portfolio and the flexibility of our balance sheet, we are well positioned to maximize shareholder value over the long term.

我們的使命一直是為我們的投資者提供有吸引力的股息，並隨著時間的推移實現其基礎投資價值的升值。在過去的一年裡，我們支付了每股 1.20 美元或總計約 2.69 億美元的股息。根據我們 2 月 20 日的收盤價 15.12 美元計算，這代表著 7.9% 的收益率。我們的投資組合的營運持續健康。儘管短期宏觀經濟環境存在不確定性，但我們仍然相信，憑藉我們強大的投資組合和靈活的資產負債表，我們完全有能力實現長期股東價值最大化。

As one of the largest owners of Marriott and Hilton branded hotels, with the concentration in upscale rooms focused sector of the lodging industry, our team has unparalleled access to performance data. We benefit from visibility across different markets, brands and managers and utilize the information to implement the most efficient and effective practices across our portfolio, which, along with purchasing scale, reduce operating costs and lead to our strong operating margins. Our team works collaboratively with our third-party managers to maximize the performance of each asset and to ensure that we are well positioned to compete effectively in our markets.

作為萬豪和希爾頓品牌酒店的最大業主之一，我們的團隊專注於住宿業的高檔客房領域，擁有無與倫比的績效數據存取權。我們受益於跨不同市場、品牌和管理人員的可見性，並利用這些資訊在我們的產品組合中實施最有效和最高效的實踐，這與採購規模一起降低了營運成本並帶來了強勁的營運利潤率。我們的團隊與第三方管理人員合作，最大限度地提高每項資產的績效，並確保我們在市場上具有有效的競爭優勢。

It's now my pleasure to turn the call over to Liz, who will provide additional detail regarding performance across our portfolio and the industry overall.

現在我很高興將電話轉給 Liz，她將提供有關我們投資組合和整個行業表現的更多詳細資訊。

Thank you, Justin, and hello, everyone. It's a pleasure to be with you this morning. As anticipated, the fourth quarter of 2019 proved to be our most challenging quarter of the year with tougher comparisons related to non-repeat business from the 2018 Boston area gas explosion and decreased disaster recovery business. Even with an estimated 100 basis point net impact from these headwinds in the quarter, our performance was in line with industry results for our chain scale. While our North Carolina East market was negatively impacted by Hurricane Florence comps quarter-over-quarter, Panama City benefited from an easier comp with rooms out of service last year as well as continued benefit from recovery business related to Hurricane Michael, particularly within Panama City proper and closer to Tyndall Air Force Base.

謝謝你，賈斯汀，大家好。我很高興今天早上能和你們在一起。正如預期的那樣，2019 年第四季度是我們今年最具挑戰性的一個季度，與 2018 年波士頓地區煤氣爆炸導致的非重複業務以及災難復原業務減少相關的比較更加艱難。即使本季這些不利因素預計將帶來 100 個基點的淨影響，我們的業績仍與我們連鎖規模的產業業績一致。雖然我們的北卡羅來納州東部市場季度環比受到颶風佛羅倫薩的負面影響，但巴拿馬城受益於去年客房停用帶來的較輕鬆的同比收入，以及颶風邁克爾相關的恢復業務的持續收益，特別是在巴拿馬城本區和廷德爾空軍基地附近。

San Diego's weaker convention calendar in the fourth quarter drove RevPAR declines for the market and our hotels, particularly our Downtown properties with our suburban hotels outperforming the broader San Diego market. Our Nashville hotels and the market as a whole are starting to see impact from new supply despite continued demand growth, which is putting pressure on rates. And our full-service Richmond Marriott began its significant room renovation in October, displacing revenue, some of which we captured by our Courtyard and Residence Inn. Markets that produced strong top line results in the quarter included Phoenix, Austin, Orlando, Birmingham and Washington, D.C.

聖地牙哥第四季會議日程較弱，導致市場和我們酒店的 RevPAR 下降，特別是市中心的酒店，而我們郊區的酒店表現優於聖地牙哥大都會市場。儘管需求持續增長，但納許維爾的酒店和整個市場開始受到新供應的影響，這給價格帶來了壓力。我們的全方位服務里士滿萬豪酒​​店於 10 月開始對客房進行大規模翻新，這取代了我們的部分收入，其中一部分來自我們的萬怡酒店和 Residence Inn 酒店。本季業績表現強勁的市場包括鳳凰城、奧斯汀、奧蘭多、伯明罕和華盛頓特區。

For the full year, the industry continued to see outperformance outside of the top 25 markets, benefiting our geographically diverse portfolio. While demand growth continues to be strongest in the upscale and upper midscale chain scale, supply growth in these chain scales has also been elevated, resulting in slight RevPAR declines for the year. As Justin mentioned, our RevPAR results were in line with our expectations, with over 50% of our EBITDA coming from markets outside the top 25. In 2019, we benefited from disaster recovery business in our North Carolina East, Florida Panhandle and Anchorage market. Phoenix, Norfolk/Virginia Beach, Washington, D.C., Huntsville and Birmingham were also among our top performing markets. Weaker markets for the year included Nashville, Seattle, Miami, Houston and Boston.

就全年而言，該行業在前 25 個市場之外繼續表現出色，這有利於我們地域多元化的投資組合。雖然高檔和中高檔連鎖飯店的需求成長仍然最為強勁，但這些連鎖飯店的供應成長也有所提高，導致全年每間可用客房收入 (RevPAR) 略有下降。正如賈斯汀所提到的，我們的 RevPAR 結果符合我們的預期，超過 50% 的 EBITDA 來自前 25 名以外的市場。2019 年，我們受惠於北卡羅來納州東部、佛羅裡達州狹長地帶和安克拉治市場的災難復原業務。菲尼克斯、諾福克/維吉尼亞海灘、華盛頓特區、亨茨維爾和伯明罕也是我們表現最好的市場之一。今年表現較弱的市場包括納許維爾、西雅圖、邁阿密、休士頓和波士頓。

While we see varied performance across markets based on supply and demand dynamics, we continue to see our transient revenue grow with the decline in group, both for the quarter and year-to-date. Though the Richmond Marriott grew production for the year and our fourth quarter renovation impacted our overall results, this group and transient trend for our portfolio was broad-based. As you know, in 2019, we invested in additional internal resources to work with our operators to enhance our overall revenue strategy, ensuring that revenue management, sales and digital teams are working collaboratively and proactively to drive the optimal mix depending on the individual market conditions.

雖然我們看到各市場根據供需動態表現各異，但無論是本季或年初至今，我們的短暫營收仍隨著集團的下滑而成長。儘管里士滿萬豪酒​​店今年的產量有所增長，而且我們第四季度的翻新工程影響了我們的整體業績，但對於我們的投資組合而言，這一群體和短暫趨勢是廣泛的。如您所知，2019 年，我們投入了額外的內部資源，與我們的營運商合作，以增強我們的整體收入策略，確保收入管理、銷售和數位團隊能夠協同並積極主動地根據各個市場情況推動最佳組合。

Our teams remain strategically focused on increasing group and negotiated base business to maximize top line performance in supply impacted markets. The hotel industry remains strong, reporting record highs with respect to rooms available, rooms sold, average daily rates and RevPAR in 2019. But with the backdrop of slowing GDP growth and supply increases, top line growth for the industry has been flat to modestly positive, putting additional pressure on operating margins. While challenging continued solid cost control on the part of our operators assisted by our asset management team helped us to produce comparable hotel EBITDA margins of 33.4% and 36.7% for the quarter and the year, respectively, again in line with our expectations.

我們的團隊始終從策略上專注於增加團體和協商基礎業務，以最大限度地提高受供應影響的市場中的營收表現。飯店業依然保持強勁，2019 年可用客房數、已售客房數、平均每日房價和每間可用客房收入均創歷史新高。但在GDP成長放緩和供應增加的背景下，該行業的營收成長一直持平或略有正成長，給營業利潤率帶來了額外的壓力。儘管我們的營運商在資產管理團隊的協助下繼續保持穩固的成本控制，這仍然具有挑戰性，幫助我們在本季度和全年分別實現了 33.4% 和 36.7% 的酒店 EBITDA 利潤率，再次符合我們的預期。

With payroll as the largest component of our hotel operating expenses, we remain intently focused with our managers on minimizing increases in labor costs largely related to a low unemployment environment, which drives increased competition for quality workers. While fourth quarter costs were slightly higher due in part to benefits and bonus adjustments, our same-store payroll expenses increased 4.2% on a per occupied room basis for the full year. Our automated labor management systems have helped us to proactively increase productivity and reduce over time where possible. However, these productivity efforts are balanced by efforts to offer competitive wages, fill open positions effectively and monitor employee satisfaction in order to minimize turnover, increase guest satisfaction and maximize our overall results.

由於薪資是我們飯店營運費用的最大組成部分，我們與管理人員始終專注於盡量減少勞動力成本的增加，這主要與低失業率環境有關，這加劇了對優質工人的競爭。雖然第四季度的成本因福利和獎金調整而略有上升，但全年同店薪資支出按每間入住客房計算增加了 4.2%。我們的自動化勞動力管理系統幫助我們積極提高生產力並盡可能減少加班。然而，這些生產力努力與提供有競爭力的薪資、有效填補空缺職位和監控員工滿意度的努力相平衡，以盡量減少人員流動、提高客人滿意度並最大限度地提高我們的整體業績。

Comparable hotel utility expenses declined approximately 3% for the year, potentially creating a tough comp for 2020. Comparable property taxes increased 2% in 2019, which met with many localities reassessing property values. We continue to appeal tax assessments in an effort to mitigate these increases where possible.

可比飯店公用事業費用全年下降了約 3%，這可能會為 2020 年帶來嚴峻的競爭狀況。2019 年可比房產稅上漲了 2%，導致許多地方重新評估房產價值。我們將繼續對稅收評估提出上訴，以盡可能減輕這些增加。

We began the renovation of our full-service Marriott in Richmond, Virginia at the beginning of the fourth quarter. With the convention calendar down in 2019, we have been able to absorb a good portion of the room's displacement at our Courtyard and Residence Inn. Softer group production in the market, coupled with displacement from our renovation at this hotel negatively impacted our food and beverage revenues for the quarter and full year. The rooms portion of the renovation is expected to be completed by the end of the first quarter of this year with a transformed lobby area and expanded rebranded and enhanced food and beverage outlets scheduled to be completed by the end of the second quarter. Group pace is up 7% for 2020 and the outlook for Richmond is healthy with pace for 2021 and 2022 even stronger.

我們從第四季初開始對位於維吉尼亞州里士滿的全方位服務萬豪酒店進行翻新。隨著 2019 年會議日程的臨近，我們已經能夠吸收萬怡酒店和 Residence Inn 酒店中相當一部分客房的空置率。市場上團體生產疲軟，加上我們對該酒店進行裝修而導致的人員流失，對我們本季和全年的餐飲收入產生了負面影響。客房部分的翻新工程預計將於今年第一季末完成，改造後的大堂區域以及擴建、重新命名和升級的餐飲店預計將於第二季末完成。2020 年集團步伐加快 7%，里士滿前景光明，2021 年和 2022 年的步伐將更加強勁。

With food and beverage outlets under renovation for the first half of 2020, we expect F&B revenues at this hotel to decline for the year. However, the outlook is strong for the second half of the year.

由於 2020 年上半年餐飲店正在進行裝修，我們預計該酒店今年的餐飲收入將會下降。不過，下半年的前景依然強勁。

With increased focus on other income, we were able to increase same-store parking, pantry and late cancellation revenue for the year, bringing our annual growth to approximately 10%, which contributed 25 basis points to margin. While we've realized much of the growth in late cancellation fees year-over-year, we will remain diligent in monitoring our charging and collection of these fees, and we believe there to be additional opportunity with parking and pantry income. As a reminder, we adopted the new accounting lease standard on January 1, 2019, which resulted in reclassification of 4 operating leases that are now classified as finance leases under the new standard. The net impact of this change was an approximate 50 basis points increase to hotel EBITDA margins, both for the quarter and the full year.

透過更加關注其他收入，我們能夠增加當年的同店停車、茶水間和延遲取消收入，使我們的年增長率達到約 10%，為利潤率貢獻了 25 個基點。雖然我們已經意識到逾期取消費用的逐年增長，但我們仍將認真監控這些費用的收費和收取，並且我們相信停車和茶水間收入還有更多機會。提醒一下，我們在 2019 年 1 月 1 日採用了新的會計租賃準則，這導致 4 項經營租賃被重新分類，根據新準則，這些租賃現在被歸類為融資租賃。這項變更的淨影響是本季和全年的飯店 EBITDA 利潤率增加約 50 個基點。

Subsequent to year-end, we converted our Renaissance Hotel in New York to an independent boutique hotel. The intent of the conversion is to provide greater long-term flexibility with the operations of the property. We anticipate we will incur total conversion cost of approximately $1 million and experience operational disruption as the management team works to replace business that came through the Marriott brand channel. January RevPAR for this hotel was down over 30%. And while we expect the first quarter to be the most challenging, the full year impact to comparable RevPAR guidance is approximately 40 basis points.

年底之後，我們將紐約的文藝復興酒店改建為獨立的精品酒店。轉換的目的是為該物業的運營提供更大的長期靈活性。我們預計，由於管理團隊致力於取代透過萬豪品牌管道獲得的業務，我們將承擔約 100 萬美元的總轉換成本，並經歷營運中斷。該酒店 1 月的 RevPAR 下降了 30% 以上。雖然我們預計第一季將是最具挑戰性的，但對全年可比較 RevPAR 指引的影響約為 40 個基點。

Looking ahead to 2020, we expect broad supply and demand dynamics to create challenges for us in many of our markets despite continued strength in the overall economy. We anticipate the first quarter to be the weakest in the year and come in at the low end of our guidance range. Following the first quarter, we anticipate improvement as we move throughout the year. Comparable RevPAR declined 30 basis points in January for the entire portfolio, with total revenue slightly positive. The near-term operating environment will be disrupted by continued expense pressure, especially with respect to labor.

展望 2020 年，儘管整體經濟持續強勁，但我們預期廣泛的供需動態將為我們在許多市場帶來挑戰。我們預計第一季將是今年表現最疲軟的季度，並將處於我們預期範圍的低端。繼第一季之後，我們預計全年情況將會有所改善。1 月份，整個酒店組合的可比 RevPAR 下降了 30 個基點，但總收入略有增長。短期經營環境將因持續的費用壓力（尤其是勞動費用）而受到干擾。

However, for over 20 years, Apple Hospitality has intentionally positioned its portfolio to mitigate market and industry level risk to provide our investors with attractive dividends and appreciation in the value of their underlying investment through all economic cycles, while maximizing operating results and driving long-term value. With consistent reinvestment in our hotels, a disciplined approach to capital allocation and a low leverage balance sheet, we are confident that we are well positioned to meaningfully increase shareholder value over the long term.

然而，20 多年來，Apple Hospitality 一直有意調整其投資組合，以降低市場和行業層面的風險，為我們的投資者提供有吸引力的股息，並在所有經濟週期中實現其基礎投資價值的升值，同時最大化經營業績並推動長期價值。透過對飯店的持續再投資、嚴謹的資本配置方法和低槓桿資產負債表，我們有信心，我們有能力在長期內顯著提高股東價值。

Thank you for joining us this morning. And we will now open 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 is from Neil Malkin with Capital One Securities.

（操作員指示）我們的第一個問題來自 Capital One Securities 的 Neil Malkin。

Appreciate the color on the Renaissance going independent impact. Could you give the same or what you estimate will be the impact to RevPAR due to the renovations at your 2 Marriotts -- your 2 full-service Marriotts in 2020?

欣賞色彩對文藝復興的獨立影響。您能否給出相同的估計，或者由於您的兩家萬豪酒店（2020 年的兩家提供全方位服務的萬豪酒店）的裝修，將對 RevPAR 產生什麼影響？

Neil, this is Liz. I think for the Richmond Marriott, what we'll find is that the first quarter negative impact will be offset in large part by the Q4 comp that we experienced from the negative drag in 2019 at the Richmond Marriott.

尼爾，這是莉茲。我認為，對於里士滿萬豪酒​​店而言，我們會發現第一季的負面影響將在很大程度上被我們在 2019 年里士滿萬豪酒​​店遭受的負面拖累所抵消。

And for the Houston Marriott, we are just beginning the renovation this year. And because it's in Houston, the impact will be less meaningful there as well.

對於休士頓萬豪酒店，我們今年才剛開始裝修。而且由於它位於休斯頓，因此其影響也不會那麼大。

Okay. Great. And then another one for me is just regarding coronavirus. Obviously, you guys aren't super concentrated to the coast, but just given the diverse nature geographically of your portfolio, have you been able or have your property manager has been able to discern any trends in terms of markets that potentially are impacted by coronavirus demand or cancellations? And what, if any, kind of impact or conservatism have you baked into your guidance related to coronavirus?

好的。偉大的。對我來說，另一個問題與冠狀病毒有關。顯然，你們的投資重​​點並不是集中在沿海地區，但考慮到你們投資組合在地理上的多樣性，你們或者你們的物業經理是否能夠辨別出可能受到冠狀病毒需求或取消影響的市場趨勢？如果有的話，您在與冠狀病毒相關的指導中融入了哪些影響或保守主義？

I'll start with the last part of the question, and that's -- our guidance includes our best guess at this point in time as to the impact from the coronavirus on our portfolio. You began your question by highlighting, and I think rightfully, that we're benefited relative to our peers from lower concentration in gateway and top 25 markets, which we anticipate we'll see the bulk of the impact. That being said, we do anticipate that there will be some halo impact as impacting voluntary travel. And we will have some markets where we see specific impact. We were notified yesterday. The Dell, which is a large producer for a portion of our Austin asset, is putting a temporary freeze on inbound travel from China to their facility, which will have some impact on our portfolio. But again, at this point, on a relative basis and to some extent on an absolute basis, we anticipate that the coronavirus will be less impactful to us than our peers and potentially to the national averages.

我將從問題的最後一部分開始，那就是——我們的指導包括我們目前對冠狀病毒對我們投資組合的影響的最佳猜測。您在提問時就強調了這一點，我認為這是正確的，即相對於我們的同行，我們受益於門戶市場和前 25 個市場的較低集中度，我們預計我們將看到大部分影響。話雖如此，我們確實預計會產生一些影響，例如影響自願旅行。我們將在一些市場看到具體的影響。我們昨天收到通知。戴爾是我們奧斯汀資產的一部分的大型生產商，該公司暫時凍結了從中國到其工廠的入境旅行，這將對我們的投資組合產生一定影響。但同樣，目前，從相對基礎和某種程度的絕對基礎來看，我們預計冠狀病毒對我們的影響將小於我們的同行，並且可能對全國平均水平的影響較小。

Our next question is from Anthony Powell with Barclays.

我們的下一個問題來自巴克萊銀行的安東尼·鮑威爾。

A question on top 25 performance versus all of the markets. You mentioned before that you benefited through last year from the outperformance of all of the markets. However, we've seen in recent months, top 25 markets do a bit better. So how do you expect those 2 segments to perform this year?

關於所有市場中排名前 25 位的表現的問題。您之前提到過，去年所有市場的優異表現讓您受益匪淺。然而，我們看到近幾個月來，前 25 個市場表現略有改善。那麼您預計這兩個部門今年的表現如何？

I'll start and Liz can jump in on this. But in part, the outperformance of the top 25 markets was the result of calendar shifts as we rounded out the last part of the year. As we look at business trends, which are the most impactful to our business, business transient trends, as we rounded out the last year, the last part of last year, we were relatively stable.

我先開始，然後 Liz 可以加入。但在某種程度上，前 25 個市場的優異表現是日曆變化的結果，因為我們已進入今年最後階段。當我們觀察對我們的業務影響最大的業務趨勢和業務瞬態趨勢時，我們發現，在去年、去年下半年，我們的業務相對穩定。

Business transient and overall just transient for our portfolio was stable in Q4. I think what we saw a decline in was group as we look forward. This is for the portfolio more broad-based, top 25 and outside of top 25. I think we're seeing pace for group increase, which, I think, will help us overall as we try to revenue manage and maximize the remaining inventory that we have available.

第四季度，我們投資組合的業務瞬態和整體瞬態都保持穩定。我認為，當我們展望未來時，我們看到的是群體的衰退。這是針對更廣泛的投資組合，包括前 25 名和前 25 名之外的投資組合。我認為，我們看到了集團成長的速度，我認為這將對我們整體有所幫助，因為我們正在嘗試收入管理並最大限度地利用我們剩餘的庫存。

Got it. And on that topic, I did notice the sales and marketing expense increase, I guess, that was partly due to some of the group initiatives. You've seen the pace increase. But when do you expect that to really hit in the RevPAR and the revenue numbers? Is it later in 2020, 2021?

知道了。關於這個主題，我確實注意到銷售和行銷費用有所增加，我想，這部分是由於一些集團舉措。你已經看到步伐加快了。但是您預計什麼時候才能真正對 RevPAR 和收入數字產生影響呢？是 2020 年晚些時候，還是 2021 年？

No. For us, group is relatively -- the booking window is relatively short term. So we should see benefit to our group numbers actualize as we move throughout the year. I don't think that there's a long lead-time for many of our group bookings. Again, and I think while we have seen January, especially in the first couple of weeks of January, maybe a little bit softer. We say this every year, transient group business transient is hard to judge in January and February for our portfolio. It's the weakest time for business transient. We typically wait to make any sort of broad conclusions on trends until we get further in the quarter. But I think that the group pace is a positive and indicative of our ability to capitalize on that transient as it actualizes.

不。對我們來說，團體預訂窗口相對較短。因此，隨著全年的發展，我們應該會看到我們集團數字的效益逐漸顯現。我認為我們的許多團體預訂並不需要很長的準備時間。再說一次，我認為我們已經看到 1 月的情況，特別是 1 月的前幾週，可能會稍微疲軟一些。我們每年都這麼說，對於我們的投資組合來說，一月和二月的瞬態集團業務瞬態很難判斷。現在是商業流動最淡的時期。我們通常會等到本季進一步發展後再對趨勢做出任何廣泛的結論。但我認為集體步伐是正面的，顯示我們有能力利用這種瞬變。

Got it. And maybe one more for me. How did customer acquisition cost trend in the quarter? We've heard growth in both OTA costs and loyalty costs from some of the other operators. So what have you seen in that area of the business?

知道了。對我來說也許還有一個。本季客戶獲取成本趨勢如何？我們聽說其他一些營運商的 OTA 成本和忠誠度成本都在成長。那麼您在該業務領域看到了什麼？

We continue to see a positive shift from OTA to brand.com from a channel perspective, and brand.com is our lowest customer acquisition cost channel. So I think we continue to see that trend, where we have the ability to yield out OTA business. We're benefiting from that. Overall, I think that as we are looking to really deploy our sales expenses and our sales initiatives strategically, we will increase some of our more tactical e-commerce and e-commerce initiatives. So I think that you'll see that we're increasing there, but we're trying to be strategic and find ways where we can reduce sales expenses to offset that.

從通路角度來看，我們繼續看到從 OTA 到 brand.com 的積極轉變，而 brand.com 是我們客戶獲取成本最低的管道。所以我認為我們會繼續看到這種趨勢，即我們有能力拓展 OTA 業務。我們從中受益。總的來說，我認為，當我們真正尋求策略性地部署我們的銷售費用和銷售計劃時，我們將增加一些更具戰術性的電子商務和電子商務計劃。所以我想你會看到我們的銷售額正在成長，但我們正在努力製定策略，尋找降低銷售費用的方法來抵消這一增長。

And in response to the loyalty portion of your question, the trends that we're seeing are not dissimilar to the trends that some of our peers are seeing, with the one exception being that our hotels tend to be hotels where loyalty members go to earn points rather than redeem points. And so to the extent our peers are speaking to redemption and things of that sort, that would have a much lower impact on us. But we have seen loyalty members increase as a percent of the total guest staying at our hotels, and there are some incremental costs associated with that over the long run because, again, our brand channels are the lowest cost channels still for our hotels, we see that as a positive and an offset in part to significant supply growth within the major chain.

在回答您問題中關於忠誠度的部分時，我們看到的趨勢與我們的一些同行看到的趨勢並無不同，唯一的例外是，我們的酒店往往是忠誠會員賺取積分而不是兌換積分的酒店。因此，當我們的同齡人談論救贖和諸如此類的事情時，對我們的影響要小得多。但我們已經看到忠誠會員占我們酒店入住客人總數的百分比有所增加，從長遠來看，這會帶來一些增量成本，因為我們的品牌渠道仍然是我們酒店成本最低的渠道，我們認為這是一個積極的方面，可以部分抵消主要連鎖酒店供應量大幅增長的影響。

Our next question is from Austin Wurschmidt with KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Austin Wurschmidt。

So with the highlighted strategy, revenue management strategy of proactively layering in more group in sort of base business, I mean what does group pace look like over the next, say, 30 to 60 days? And then I'm also curious what you underwrote for group revenue in 2020 and what that could mean for growth in out of room spend as well on a year-over-year basis?

因此，透過強調的策略，即在基礎業務中主動分層更多集團的收入管理策略，我的意思是，在接下來的 30 到 60 天內，集團的步伐會是什麼樣的？然後，我還很好奇您為 2020 年的集團收入承保了多少，這對客房外支出的同比增長意味著什麼？

I think that as we approached the year and we went into budgeting for 2020, we looked at each market and each hotel on a case-by-case basis. And as there was additional supply impact or as we may have seen business transient more stable and maybe there wasn't a significant amount of growth, we wanted to layer on additional base business. So that's always our approach as we go into the New Year. I think with group softening for our portfolio broadly for the full year 2019, we wanted to put an additional focus on that. And we're seeing in our pace numbers that it's improving and we're actualizing on that strategy. To what extent, it's too early, I think, to say. But we definitely incorporated that as part of our strategy as we looked in 2020.

我認為，隨著新年的臨近，我們開始製定 2020 年的預算，我們會根據具體情況對每個市場和每家酒店進行逐一研究。由於有額外的供應影響，或者我們可能看到業務暫時更加穩定，並且可能沒有顯著的成長，因此我們希望增加額外的基礎業務。因此，我們在迎接新年時始終採取這樣的做法。我認為，隨著我們 2019 年全年投資組合整體疲軟，我們希望更加關注這一點。我們從步速數據中看到情況正在改善，我們正在實現這項策略。我認為，現在談論其程度還為時過早。但我們肯定會將其納入我們 2020 年策略的一部分。

And as Liz highlighted, our group business books short within a few weeks often of the actual stay. And so even on the group side for us, looking 60, 90 days out, becomes a little bit less informative. In terms of additional income that we would receive from groups, again, for our hotels, excluding hotels like the Richmond Marriott, where restaurant revenues and other catering revenues are a more significant percentage of total business, our groups have some incremental F&B spend, but again not nearly as significant in terms of incremental revenue for us as it is for some of our full-service peers. The primary benefit for us really is compressing the hotel and putting us in a better position to revenue manage the remaining room.

正如 Liz 所強調的那樣，我們的團體業務預訂通常在實際入住後的幾週內就已短缺。因此，即使對我們來說，從團體角度來看，展望 60 天或 90 天後的情況，也會變得不那麼有用。就我們從團體獲得的額外收入而言，對於我們的酒店而言，不包括里士滿萬豪酒​​店等酒店，這些酒店的餐廳收入和其他餐飲收入在總業務中所佔的比例更大，我們的團體有一些增量餐飲支出，但就增量收入而言，對我們來說並不像一些提供全方位服務的同行那麼重要。對我們來說，主要的好處實際上是壓縮飯店空間，讓我們能夠更好地管理剩餘房間的收入。

And as you're thinking about other income and F&B income for 2020, just take note, again, of my comments around the Richmond Marriott. We will have significant F&B displacement in the first half of the year with improvement in the latter half.

當您考慮 2020 年的其他收入和餐飲收入時，請再次注意我對里士滿萬豪酒​​店的評論。上半年我們的餐飲業務將出現較大幅度的下滑，下半年情況將會有所改善。

So how does that kind of balance overall, which is kind of what I'm looking at, because F&B certainly was a source of negative growth, I believe, for the full year last year. So does that pick back up? Or do we kind of flatten out this year for the full year again?

那麼，整體而言，這種平衡如何呢？這正是我正在關注的，因為我認為，餐飲業去年全年肯定是負成長的原因之一。那麼情況會恢復嗎？或者我們會再次將今年的業績與全年業績持平？

I think we'll still have a negative impact from the Richmond Marriott overall.

我認為里士滿萬豪酒​​店總體上仍會給我們帶來負面影響。

Okay, got it. That's helpful. And then Justin, you referenced the dividend yield at nearly 8%. Fundamentals remain challenged, and you're expecting pressure on RevPAR and margins this year. So how comfortable are you and the Board with the current level of the dividend?

好的，明白了。這很有幫助。然後賈斯汀，您提到股息收益率接近 8%。基本面依然面臨挑戰，預計今年的 RevPAR 和利潤率將面臨壓力。那麼您和董事會對目前的股利水準感到滿意嗎？

We're somewhat unique among our peers and that we pay a monthly dividend. And so we're giving the opportunity on a monthly basis to assess the sustainability and viability of our dividend on a very regular basis with our Board of Directors. Given the strength of our current yield and the more challenging operating environment, it has been a topic of conversation. That said, our dividend coverage last year remained strong. We were -- depending on how you calculate it, and I know there are a couple of different ways that people like to look at it. But we were in the mid -- mid-80s to low 90s. Low 90s being including actual CapEx spend for the year.

我們在同行中有些獨特，我們每月都會支付股息。因此，我們每月都會與董事會一起定期評估股利的可持續性和可行性。鑑於我們目前的收益率強勁以及更具挑戰性的營運環境，這一直是一個話題。儘管如此，我們去年的股息覆蓋率依然強勁。我們——取決於你如何計算，我知道人們喜歡用幾種不同的方式來看待它。但我們處於 80 年代中期到 90 年代初期。90 年代初期包括了當年的實質資本支出。

Given the environment we anticipate that that coverage percentage would go up in the coming year, and we'll continue to watch it as the year materializes. Based on where we are trading this morning, we're pushing a 9% yield, which is incredibly attractive. We're fortunate to have ownership in assets that produce a tremendous amount of cash and enable us to pay a strong dividend throughout cycles.

考慮到目前的環境，我們預計明年覆蓋率將會上升，並且我們將在明年繼續關注這一情況。根據我們今天早上的交易情況，我們力爭實現 9% 的收益率，這非常有吸引力。我們很幸運能夠擁有能夠產生大量現金的資產，並使我們能夠在整個週期中支付豐厚的股息。

So is it fair to say that, again, depending on how you calculate it some of the elevated CapEx is pushing up that coverage level this year.

因此，可以公平地說，再次，取決於你如何計算，部分增加的資本支出正在推高今年的覆蓋水準。

Yes. And specifically, our full-service hotels. So I highlighted CapEx projections for this year being between $80 million and $90 million. Approximately $15 million of that is associated with renovations that have 3 full-service hotels. The bulk of that is being spent at the Richmond Marriott, which is the largest of our hotels involved -- the renovation involves a meaningful lobby renovation and renovation to the food and beverage outlets, and is an end of franchise-related renovation. So we're doing major renovations in the bathrooms and others, which, we think, will position the hotel incredibly well on a go-forward basis but in the near term are elevating our total CapEx spend.

是的。具體來說，就是我們提供全方位服務的飯店。因此我強調今年的資本支出預測在 8,000 萬美元至 9,000 萬美元之間。其中約 1500 萬美元用於對 3 家全方位服務酒店進行翻修。其中大部分資金都花在了里士滿萬豪酒​​店，這是我們參與改造的最大的一家酒店——改造包括對大廳和餐飲店的重大改造，也是特許經營相關改造的結束。因此，我們正在對浴室和其他設施進行大規模的翻新，我們認為，這將使酒店在未來處於非常有利的地位，但在短期內會提高我們的總資本支出。

Our next question is from Tyler Batory with Janney Montgomery Scott.

我們的下一個問題來自詹妮·蒙哥馬利·斯科特 (Janney Montgomery Scott) 的泰勒·巴托里 (Tyler Batory)。

Wondering if you can segment out trends that you're seeing in the corporate side of things versus leisure. Curious how those segments performed in the fourth quarter, and then also if you could talk to year-to-date as well, that would be helpful.

想知道您是否可以區分出您在企業方面和休閒方面看到的趨勢。好奇這些部門在第四季的表現如何，如果您能談談年初至今的表現，那將會很有幫助。

So I alluded to this a little bit in the earlier question. I think Q4, what we saw between weekday and weekend was more stability in business transient, as we sort of triangulate our overall transient numbers and negotiated business. As we went into the first part of the year, the first couple of weeks, we did see less growth in weekday. As we move throughout January and have moved into February, that stabilized a little bit. And I think we will watch closely as we move throughout the quarter. Again, we had this trend happen in previous years, and it's just a little bit early to draw a broad conclusion. For the full year 2019, our business transient was positive.

我在之前的問題中稍微提到了這一點。我認為在第四季度，我們看到工作日和週末之間的業務瞬態更加穩定，因為我們對整體瞬態數字和協商業務進行了三角測量。進入今年上半年，也就是最初的幾週，我們確實看到工作日的成長減少。隨著一月份的到來和二月的到來，情況有所穩定。我認為我們將密切關注整個季度的進展。再說一次，我們在前幾年就出現過這種趨勢，現在得出廣泛的結論還為時過早。2019年全年，我們的業務瞬息萬變。

Okay, great. And then just a follow-up, I'm not sure if you mentioned it earlier. What are you budgeting for combined wage and benefit increases in 2020? And then are there any other areas of cost inflation that are notable that we should factor into our models?

好的，太好了。然後只是一個後續問題，我不確定您是否之前提到過。您為 2020 年的薪資和福利綜合成長預算是多少？那麼，還有哪些值得注意的成本通膨領域值得我們納入我們的模型呢？

As we look to guidance, we assumed a 4% to 5% CPOR increase for labor -- total labor.

當我們尋求指導時，我們假設勞動力（總勞動力）的 CPOR 將增加 4% 至 5%。

And that would be the largest of the areas of expense increase over the coming year. The bulk of the remaining expenses we assumed will increase roughly at a rate of inflation. We will see, as Liz highlighted in her remarks, potentially an increase in utility expenses, which have been low for a number of years now. That's one that we're watching, in particular. We'll continue to see pressure on insurance costs and on property taxes. But as a percent of total expenditures, those are relatively small relative to labor.

這將是未來一年支出增加最大的領域。我們假設剩餘支出的大部分將大致按照通貨膨脹率成長。正如利茲在發言中所強調的那樣，我們將看到公用事業費用可能會增加，而這筆費用多年來一直很低。這是我們特別關注的一個。我們將繼續看到保險成本和財產稅的壓力。但作為總支出的百分比，這些相對於勞動力來說相對較小。

Our next question is from Michael Bellisario with Robert W. Baird & Company.

下一個問題來自 Robert W. Baird & Company 的 Michael Bellisario。

Just want to go back to the dividend comment you made and clarify one thing or let you clarify one thing. I think you said it's been a topic of conversation with the Board. Can you clarify the dividend has been discussed than you discuss on a monthly basis or you've talked about cutting the dividend?

只是想回到您所做的股息評論並澄清一件事或讓您澄清一件事。我想您說過這已經成為董事會討論的話題。您能否澄清一下，您討論過的股息是按月支付還是削減股息？

The dividend coverage is a continual portion of our review with our Board of our current operation. I highlighted in my earlier remarks that we view our dividend payout as a significant piece of the total value equation for our investors. We have -- continue to have roughly 40% of our investors is retail and dividend for them represents a meaningful piece of the total return that they anticipate from us. We're fortunate, as I highlighted, to be in asset class or subclass that generates incredibly high margins and have been able to maintain the dividend through economic cycles in the past. We are comfortable with where we are currently, but we're monitoring. And our ability to maintain our dividend really depends on us performing as we anticipate we will for the coming year.

股息覆蓋率是我們與董事會對當前營運進行持續審查的一部分。我在先前的評論中強調過，我們認為股息支付是投資者總價值方程式的重要組成部分。我們的投資者中仍有大約 40% 是散戶，對他們來說，股息是他們預期從我們這裡獲得的總回報中相當重要的一部分。正如我所強調的，我們很幸運能夠處於能夠產生極高利潤率的資產類別或次類別中，並且能夠在過去的經濟週期中維持股利。我們對目前的狀況感到滿意，但我們正在進行監控。我們維持股利的能力實際上取決於我們明年的業績是否符合預期。

Got it. That's helpful. Thank you for clarifying. And then just one other follow-up on CapEx, the $80 million to $90 million range for this year. What would that look like if you weren't doing Houston and Richmond?

知道了。這很有幫助。感謝您的澄清。然後是關於資本支出的另一個後續問題，今年的資本支出在 8,000 萬至 9,000 萬美元之間。如果您不去休士頓和里士滿，情況會是什麼樣子？

Well, I highlighted in a response to an earlier question, that the total CapEx spend for the 3 hotels in this calendar year is roughly $15 million. The bulk of that. So over $10 million of that is associated with the Richmond Marriott. We will be beginning the renovation in the latter part of the year in Houston, which will span over into the first part of the following year and likely doing the same at our hotel in New York. But because the Richmond Marriott is the largest of our hotels, because we're renovating in addition to the rooms a significant portion of the public areas and because it's an end of franchise tip from Marriott, that's the most substantial single property renovation that we've incurred to date.

嗯，我在回答之前的問題時強調過，今年這 3 家酒店的總資本支出約為 1500 萬美元。大部分都是這樣的。其中超過 1000 萬美元與里士滿萬豪酒​​店有關。我們將於今年下半年在休士頓開始裝修工程，並將持續到明年上半年，我們紐約的飯店也可能進行同樣的裝修工程。但由於里士滿萬豪酒​​店是我們最大的酒店，由於我們除了客房外還對很大一部分公共區域進行了翻新，由於這是萬豪酒店特許經營權的結束，所以這是我們迄今為止進行的最大規模的單項酒店翻新工程。

Got it. I must have missed that $15 million number earlier. And then just lastly, on asset sales. It doesn't sound like you're too inclined to accelerate the pace, at least maybe versus the comments you provided on last quarter's call, but kind of a 2-part question. I guess, one, is that the right read of your selective comment you made in the prepared remarks? And then the second part is, what would you need to see in the fundamental environment or the transaction environment for you to move faster on that front today?

知道了。我之前肯定錯過了 1500 萬美元這個數字。最後，關於資產出售。聽起來您不太傾向於加快步伐，至少與您在上個季度的電話會議上提供的評論相比是這樣，但這是一個分為兩部分的問題。我想，首先，這是您在準備好的演講中所做的選擇性評論的正確解讀嗎？第二部分是，您需要在基本環境或交易環境中看到什麼才能讓您今天在這方面採取更快的行動？

I would say -- and I appreciate you asking the question to clarify. So by selective, we do not mean that we will be less aggressive in pursuing dispositions. In fact, I felt I highlighted. And again, I appreciate giving me an opportunity to clarify that the environment remains strong for potential sale of assets. By selective, really, I've highlighted on past calls that investors in today's environment seem to be more interested in individual assets than they do in larger portfolios and the most likely nature of disposition -- of our dispositions as we roll through the year will be individual transactions for 1 or a small group of properties with buyers who see value in those individual assets.

我想說——我很感謝你提出這個問題來澄清。因此，我們所說的選擇性並不意味著我們在追求性格方面會不那麼積極。事實上，我感覺自己突出了。我再次感謝有機會澄清，潛在的資產出售環境仍然強勁。實際上，我在過去電話會議上強調過，透過選擇性，當今環境下的投資者似乎對單一資產比對大型投資組合更感興趣，而我們全年最有可能的處置性質將是針對 1 個或一小群房產的單獨交易，買家看到了這些單一資產的價值。

Got it. And then just one last one, more housekeeping. Renaissance, New York, you mentioned about 40 basis point RevPAR impact. But in guidance, what's the embedded number for margins and then adjusted EBITDA as well?

知道了。然後只剩下最後一個了，更多的家務事。紐約文藝復興公司，您提到了約 40 個基點的 RevPAR 影響。但在指導中，利潤率的嵌入數字是多少，然後調整後的 EBITDA 又是多少？

So for guidance, we mentioned the 40 basis points on the top line. I think for EBITDA, there's margin impact, there's probably 25 to 30 basis points impact.

因此，為了提供指導，我們提到了頂線上的 40 個基點。我認為對於 EBITDA 來說，利潤率會有影響，大概有 25 到 30 個基點的影響。

(Operator Instructions) Our next question is from Matt Boone with B. Riley FBR.

（操作員指示）我們的下一個問題來自 B. Riley FBR 的 Matt Boone。

This is Matt on for Bryan. I just had a quick one. Can you share what's your top 25 markets are currently seeing the most supply pressure and where you expect that to trend for the balance of the year?

這是馬特 (Matt) 代替布萊恩 (Bryan)。我剛剛快速吃了一頓。您能否分享一下目前供應壓力最大的 25 個市場是哪些，以及您預計今年剩餘時間的供應壓力將如何發展？

Of our top markets, we continue to see pressure in a number of them. Nashville historically has seen the greatest year-over-year growth. We anticipate that that will flow in. And actually, interestingly, and I didn't have an opportunity to make this comment earlier. We believe that in terms of percentage growth, many of our markets peaked this past year or the year before. And our expectation for 2020 opening is that they would be less as a percentage in the bulk of our markets than they have been in times past. The challenge for us really is that given the number of openings we had in a number of our markets in 2019, we anticipate we will experience a bit of a headwind as those assets ramp. But really, Nashville -- Dallas is a market with relatively low barriers to entry. We continue to see meaningful growth there. Miami and a number of our South Florida markets have also seen a significant amount of supply growth.

在我們的主要市場中，我們繼續看到一些市場面臨壓力。納許維爾歷來經歷了最大的同比增長。我們預計這些資金將會流入。事實上，有趣的是，我之前沒有機會發表這個評論。我們認為，從百分比成長來看，我們的許多市場在去年或前年達到了頂峰。我們對 2020 年開業的預期是，它們在我們大部分市場中所佔的比例將比過去有所下降。我們面臨的真正挑戰是，考慮到 2019 年我們在多個市場開設的新店數量，我們預計隨著這些資產的增加，我們將遇到一些阻力。但實際上，納許維爾——達拉斯是一個進入門檻相對較低的市場。我們繼續看到那裡有意義的成長。邁阿密和我們的一些南佛羅裡達州市場也出現了大量供應成長。

We now have a follow-up question from Anthony Powell with Barclays.

我們現在有來自巴克萊銀行的安東尼·鮑威爾的後續問題。

Just a few more on the dividend. I know you mentioned that people look at payout ratios related to REIT, how do you and the Board look at payout ratios? And how do you do you look at normalized CapEx? And just what's in your view, your current payout ratio? And how do you -- and are you comfortable with that over the medium term?

關於股息還有幾點。我知道您提到人們關注與房地產投資信託基金 (REIT) 相關的派息率，您和董事會如何看待派息率？您如何看待正常化的資本支出？您認為您目前的股利支付率是多少？您如何看待這個問題？從中期來看，您對此感到滿意嗎？

But as I hope I highlighted earlier, we look at it in a number of different ways with the Board. We look at it on an absolute basis. So given real CapEx spend within any given year, and then we look at it on a normalized basis as well. For this year and this past year, the delta between those has been 5% to 7%. And I highlighted that this year, we have somewhat elevated CapEx because of the renovations at our 3 full-service hotels.

但正如我希望之前強調的那樣，我們與董事會以多種不同方式看待這個問題。我們從絕對的角度來看它。因此，考慮到任何一年內的實際資本支出，我們也會在標準化的基礎上進行檢視。今年和去年之間的差距為 5% 至 7%。我強調，今年由於我們對 3 家全方位服務酒店進行了翻新，我們的資本支出有所增加。

Right. And so as I look to next year, you should have less CapEx, and you also have the ramp-up of newly acquired new build hotels. So theoretically -- obviously, theoretically coverage should go up, I guess without regard to same store EBITDA, which, I guess, will probably continue to see pressure, but absent same-store EBITDA decline and your coverage should improve next year, given the ramp in hotels and lower CapEx. Is that fair?

正確的。因此，展望明年，您的資本支出將會減少，同時新收購的新建飯店數量也會增加。因此從理論上講 - 顯然，理論上覆蓋率應該會上升，我想不考慮同店 EBITDA，我猜，這可能會繼續面臨壓力，但如果同店 EBITDA 沒有下降，考慮到酒店業務的增長和資本支出的降低，明年你的覆蓋率應該會提高。這樣公平嗎？

I think that's fair. You included a number of caveats in your questions. So I think given those, yes, that would be fair.

我認為這是公平的。您的問題中包含了許多警告。所以我認為考慮到這些，是的，那是公平的。

Got it. Okay. And just one more, if you theoretically had to reduce your dividend, not saying that you will, but if you had to, would it be kind of a gradual decrease based on taxable income? Or would you try to set some level that you think you can maintain beyond that?

知道了。好的。再問一個問題，如果理論上你必須減少股息，雖然不是說你會這麼做，但如果必須的話，股息是否會根據應稅收入逐漸減少？或者你會嘗試設定一個你認為可以維持的水平嗎？

I think this probably isn't the best...

我認為這可能不是最好的...

Form for that. Got it.

為此形成。知道了。

In theorizing, but I would -- but I want to be fair and answer your question. We have historically placed a premium in our analysis on maintaining consistency in our dividend and our dividend payout over time. And I think our first effort will be to manage our business in a way that we can maintain. And then should we make adjustments, it would be based on a longer-term view of our business and what we expect to be a reasonable coverage over our long term.

從理論上講，但我會——但我想公平地回答你的問題。我們在分析中歷來非常重視維持股利和股利支付的長期一致性。我認為我們的首要努力是以我們能夠維持的方式管理我們的業務。然後，我們是否應該做出調整，這將基於我們業務的長期觀點以及我們對長期合理覆蓋範圍的預期。

We have reached the end of our question-and-answer session. I would like to turn the conference back over to Justin Knight for closing comments.

我們的問答環節已經結束。我想將會議交還給賈斯汀奈特 (Justin Knight) 來做最後總結。

Thank you. We really appreciate everybody joining us this morning. And hope, as always, that as you travel, you'll take an opportunity to stay with us at one of our hotels.

謝謝。我們非常感謝大家今天早上加入我們。並且一如既往地希望您在旅行時能有機會入住我們的某家酒店。

Thank you. This does conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開您的線路，感謝您的參與。