Chatham Lodging Trust (CLDT) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Chatham Lodging Trust First Quarter 2023 Financial Results. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Chris Daly, President, DG Public Relations. Please go ahead, sir.

您好，歡迎閱讀查塔姆住宿信託 2023 年第一季度財務業績。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想將會議交給東道主、公共關係總局總裁克里斯·達利先生。請繼續，先生。

Thank you, Melissa. Good morning, everyone, and welcome to the Chatham Lodging Trust First Quarter 2023 Results Conference Call. Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. These statements are subject to risks and uncertainties, both known and unknown, as described in our most recent Form 10-K and other SEC filings. All information in this call is as of May 4, 2023, unless otherwise noted, and the company undertakes no obligation to update any forward-looking statements to conform the statement to actual results or changes in the company's expectations. You can find copies of our SEC filings and earnings release, which contain reconciliations to non-GAAP financial measures referenced on this call, on our website at chathamlodgingtrust.com.

謝謝你，梅麗莎。大家早上好，歡迎參加查塔姆住宿信託 2023 年第一季度業績電話會議。請注意，我們今天的許多評論被視為聯邦證券法定義的前瞻性陳述。正如我們最新的 10-K 表格和其他 SEC 文件中所述，這些陳述存在已知和未知的風險和不確定性。除非另有說明，本次電話會議中的所有信息均截至 2023 年 5 月 4 日，公司不承擔更新任何前瞻性聲明以使聲明符合實際結果或公司預期變化的義務。您可以在我們的網站 chathamlodgingtrust.com 上找到我們向 SEC 提交的文件和收益發布的副本，其中包含本次電話會議中引用的非 GAAP 財務指標的調節表。

Now to provide you with some insight into Chatham's 2023 first quarter results, allow me to introduce Jeff Fisher, Chairman, President and Chief Executive Officer; Dennis Craven, Executive Vice President and Chief Operating Officer; and Jeremy Wegner, Senior Vice President and Chief Financial Officer. Let me turn the session over to Jeff Fisher. Jeff?

現在，為了向您介紹查塔姆 2023 年第一季度業績，請允許我介紹董事長、總裁兼首席執行官傑夫·費舍爾 (Jeff Fisher)；丹尼斯·克雷文 (Dennis Craven)，執行副總裁兼首席運營官；以及高級副總裁兼首席財務官 Jeremy Wegner。讓我把會議交給傑夫·費舍爾。傑夫？

Thanks, Chris, and good afternoon, everyone. I certainly appreciate being on the call this afternoon with us. Just before addressing our quarterly performance, I wanted to highlight that we were awarded the Hilton Brand Development Award for our Home2 Suites at Woodland Hills Warner Center, California that we've spoken highly about and gave special recognition to the teams from Chatham, Island, Western International and EMCO, who worked incredibly hard over several years to bring that project to fruition.

謝謝克里斯，大家下午好。我當然很高興今天下午與我們通話。在談到我們的季度業績之前，我想強調一下，我們位於加利福尼亞州伍德蘭山華納中心的 Home2 套房榮獲了希爾頓品牌發展獎，我們對來自查塔姆島、西方國際公司和 EMCO 多年來付出了令人難以置信的努力，使該項目取得了成果。

Turning to our performance in the quarter, which was very strong with higher-than-expected RevPAR growth driving EBITDA growth of 34% and more than doubling FFO per share to $0.16, exceeding consensus estimates of $0.13. Driven by meaningful growth in some of our larger markets more reliant on the business traveler, RevPAR growth was over 25% in the quarter, the fourth best amongst all lodging companies. Our RevPAR growth was attributable to similar growth in both occupancy and ADR of approximately 14%. Relative to 2019, RevPAR was off about 6% and that result was adversely impacted by approximately 700 basis points due to the performance at our 4 Silicon Valley hotels. So excluding those hotels, RevPAR was up almost 1% compared to 2019. Relative to 2019, RevPAR improved each of the first 4 months of 2023 with RevPAR down 12%, 5%, 4% and less than 2%, an encouraging trend and a key indicator that business travel continues its recovery across the country, even in Silicon Valley.

談到我們本季度的業績，該季度的業績非常強勁，RevPAR 增長高於預期，推動 EBITDA 增長 34%，每股 FFO 增長一倍多，達到 0.16 美元，超出市場普遍預期的 0.13 美元。在我們一些更依賴商務旅行者的較大市場的顯著增長的推動下，本季度每間可用客房收入增長超過 25%，在所有酒店公司中排名第四。我們的 RevPAR 增長歸因於入住率和 ADR 的類似增長（約 14%）。與 2019 年相比，RevPAR 下降了約 6%，由於我們 4 家矽谷酒店的業績，這一結果受到了約 700 個基點的不利影響。因此，排除這些酒店，RevPAR 比 2019 年增長了近 1%。與 2019 年相比，RevPAR 在 2023 年前 4 個月都有所改善，RevPAR 分別下降了 12%、5%、4% 和不到 2%，這是一個令人鼓舞的趨勢，這是商務旅行在全國范圍內持續復甦的一個關鍵指標，甚至在矽谷也是如此。

Leisure travel remains strong with all of our leisure markets producing strong growth in the quarter. We can look at Destin, Florida, up 13%; Portsmouth, New Hampshire, up 40%; Portland, Maine, up 16%; Anaheim, up 14%; Fort Lauderdale, up 9%; and Savannah, up 28%. Occupancy finished the quarter at 69%, up almost 14% and about 10% off pre-pandemic levels, evidenced by the year-over-year growth of 28%. We continue to see the return of the business traveler across our portfolio as well as improved international travel due to loosening restrictions on entering the U.S. and obtaining work visas. Weekday occupancy is the best indicator of business travel, and versus 2019, weekday occupancy in the first quarter improved each month of 2023 and was 69% for the entire first quarter. Weekday ADR was up approximately 17% versus last year and only down approximately 1% versus 2019, an encouraging pattern given the first quarter historically is our slowest of the year. Weekend RevPAR remained strong as it was up approximately 9% in the quarter versus 2019.

休閒旅遊依然強勁，我們所有的休閒市場在本季度都實現了強勁增長。我們可以看看佛羅里達州德斯坦，上漲了 13%；新罕布什爾州朴茨茅斯上漲 40%；緬因州波特蘭上漲 16%；阿納海姆，上漲 14%；勞德代爾堡上漲 9%；和薩凡納，增長了 28%。本季度入住率達到 69%，同比增長 28%，增長了近 14%，較疫情前水平下降了約 10%。我們繼續看到商務旅行者在我們的投資組合中回歸，並且由於放鬆了進入美國和獲得工作簽證的限制，國際旅行也有所改善。平日入住率是商務旅行的最佳指標，與 2019 年相比，2023 年第一季度的平日入住率每個月都有所提高，整個第一季度為 69%。平日 ADR 與去年相比增長了約 17%，與 2019 年相比僅下降了約 1%，鑑於歷史上第一季度是我們一年中最慢的季度，這是一個令人鼓舞的模式。週末 RevPAR 依然強勁，本季度較 2019 年增長約 9%。

As we move into the second and third quarters, we are more confident with respect to the outlook as we see business travel demand continuing to build month by month. For the first time since the pandemic, we're also really starting to see meaningful demand pickup from Korea, Japan, Taiwan and China in our Silicon Valley hotels and our Bellevue, Washington Hotel. Offsetting some of this recovery is going to be the intern programs in 2023. Since our last call, many of the world's largest tech companies such as Meta, Apple, Google, Microsoft and T-Mobile have meaningfully reduced their programs in 2023 following significant corporate layoffs. Although they are expected to fully return in 2024, we will see a decline in intern revenue of approximately 80% to 90% across our 4 hotels in Silicon Valley and Bellevue, Washington from about $12 million in revenue last year to between $1.5 million and $2.5 million this year.

隨著進入第二和第三季度，我們對前景更加充滿信心，因為我們看到商務旅行需求繼續逐月增加。自大流行以來，我們第一次真正開始看到來自韓國、日本、台灣和中國大陸的矽谷酒店和華盛頓貝爾維尤酒店的需求大幅回升。 2023 年的實習生計劃將抵消部分複甦的影響。自我們上次電話會議以來，Meta、蘋果、谷歌、微軟和 T-Mobile 等許多全球最大的科技公司在重大企業裁員。儘管他們預計將在 2024 年全面回歸，但我們將看到我們位於矽谷和華盛頓州貝爾維尤的 4 家酒店的實習生收入將下降約 80% 至 90%，從去年的約 1200 萬美元收入下降至 150 萬美元至 2.5 美元之間今年百萬。

Thankfully, and most importantly, we are able and expect to be able to make up at least half to 75% of the intern-related EBITDA loss of $6 million. So work is ongoing and recent occupancy trends in Silicon Valley, particularly, are stronger than expected on a week-by-week basis. So we feel very positive about the piece of the intern business and the EBITDA related to it that we should be able to replace. Operationally, our margins grew 200 basis points over last year to a post-pandemic first quarter high of 40%. Good flow through in corporate expense controls allowed us to double free cash flow before CapEx and amortizing debt from about $5 million last year to $10 million this year.

值得慶幸的是，最重要的是，我們有能力並且預計能夠彌補與實習生相關的 600 萬美元 EBITDA 損失的至少一半到 75%。因此，工作正在進行中，尤其是矽谷最近的入住趨勢，每週都強於預期。因此，我們對實習生業務以及與之相關的 EBITDA 感到非常積極，我們應該能夠取代它。在運營方面，我們的利潤率比去年增長了 200 個基點，達到疫情后第一季度的 40% 高位。公司費用控制的良好流程使我們能夠將資本支出和攤銷債務之前的自由現金流從去年的約 500 萬美元增加到今年的 1000 萬美元。

Lastly, I want to touch on our financial condition, which is extremely healthy as we sit here at our lowest leverage levels in over a decade. During the first quarter, we've already paid off loans amounting to $73 million, including the high rated loan on our Woodland Hills Hotel as well as 2 maturing loans, replacing debt with an average interest rate of 8% with the term loan that is currently at 6.2%. Funded with our remaining borrowings at our term loan and free cash flow on May 5, we will repay another $16 million maturing mortgage. After that, we'll only have 2023 maturing debt of about $60 million secured by 2 hotels for later this year, and we have full capacity in our $260 million unsecured credit facility.

最後，我想談談我們的財務狀況，我們的財務狀況非常健康，因為我們的槓桿水平處於十多年來的最低水平。第一季度，我們已經還清了 7300 萬美元的貸款，包括 Woodland Hills 酒店的高評級貸款以及 2 筆到期貸款，用 8% 的定期貸款取代了平均利率為 8% 的債務。目前為6.2%。利用我們的定期貸款剩餘借款和 5 月 5 日的自由現金流，我們將償還另外 1600 萬美元的到期抵押貸款。此後，我們今年晚些時候將只有 2 家酒店擔保的 2023 年到期債務約 6000 萬美元，而且我們的 2.6 億美元無擔保信貸額度已滿負荷。

Touching quickly on external growth, excuse me, the transaction market has been dormant, but it does seem like it's starting to ease up a bit with a significant rise in interest rates and a bunch of maturing debt occurring throughout the industry. We believe there will be some opportunities to acquire hotels that fit into our high-quality portfolio in the back half of the year. With 39 hotels, we can acquire 1 or 2 hotels, and it significantly moves the needle with respect to EBITDA and FFO growth. We want to continue to increase further our focus, of course, on the extended stay segment. With that, I'd like to turn it over to Dennis for a little more color. Dennis?

快速談到外部增長，請原諒，交易市場一直處於休眠狀態，但隨著利率的大幅上升和整個行業出現大量到期債務，它似乎開始有所緩解。我們相信今年下半年將有一些機會收購適合我們優質投資組合的酒店。擁有 39 家酒店後，我們可以收購 1 或 2 家酒店，這對 EBITDA 和 FFO 的增長產生了顯著的推動作用。當然，我們希望繼續進一步加大對長住細分市場的關注。有了這個，我想把它交給丹尼斯，以獲得更多的色彩。丹尼斯？

Thanks, Jeff. Our portfolio performed significantly better than the industry with first quarter RevPAR growth of 28%, exceeding industry performance by approximately 50%, again for the second consecutive quarter. Excluding the impact of the interim business, this is a pretty relative indicator of potential performance moving forward in 2023. If you look at our portfolio for the quarter, excluding Silicon Valley, our first quarter RevPAR was up slightly versus 2019 on ADR growth of almost 10%, offset by a decline in occupancy of 9%.

謝謝，傑夫。我們的投資組合表現明顯優於行業，第一季度每間可用房收入 (RevPAR) 增長 28%，連續第二個季度超出行業表現約 50%。排除中期業務的影響，這是 2023 年潛在業績的一個相當相對的指標。如果你看看我們本季度的投資組合（不包括矽谷），我們第一季度的 RevPAR 與 2019 年相比略有上升，ADR 增長了近10%，但被入住率下降 9% 所抵消。

Silicon Valley, our largest market, continues to grow meaningfully over the prior year with first quarter RevPAR growth of 59%, meaningfully higher than our fourth quarter 2022 RevPAR growth of 45%. That market remains well off of 2019 levels still down 36%. Occupancy of 64% in the quarter for those 4 hotels was up 20% over last year and still below 2019 levels by approximately 16 percentage points. Silicon Valley EBITDA was $3 million in the first quarter, which is up 150% over last year, still below first quarter 2019 EBITDA levels though.

我們最大的市場矽谷繼續比上一年顯著增長，第一季度的 RevPAR 增長了 59%，明顯高於我們 2022 年第四季度的 RevPAR 增長 45%。該市場仍遠低於 2019 年的水平，仍下跌 36%。這 4 家酒店本季度的入住率為 64%，比去年增長 20%，但仍低於 2019 年的水平約 16 個百分點。矽谷第一季度 EBITDA 為 300 萬美元，比去年增長 150%，但仍低於 2019 年第一季度 EBITDA 水平。

First quarter international air travel into both San Fran and San Jose airports are at their best levels since the pandemic though still off approximately 16% versus 2019. Again, this is an encouraging trend. In other key tech markets, Seattle RevPAR grew 17% in the quarter. It still remains about 35% below 2019 levels. EBITDA at that hotel grew over 30% in the quarter. First quarter international air travel into Seattle was only off 2% versus 2019. And for the first time since the pandemic, March international deployments exceeded 2019 levels. Beating this slower recovery in our Silicon Valley and Seattle markets, Austin continues to do really well. In our Residence Inn Austin, RevPAR was up 13% versus 2019 with gains in both occupancy and ADR. Our TownPlace Suites was not opened in 2019, but I will say that RevPAR at our TownPlace Suites Austin was up almost 40% year-over-year.

第一季度前往舊金山和聖何塞機場的國際航空旅行量處於疫情以來的最佳水平，儘管與 2019 年相比仍下降了約 16%。這再次是一個令人鼓舞的趨勢。在其他主要科技市場，西雅圖本季度的 RevPAR 增長了 17%。仍比 2019 年水平低 35% 左右。該酒店的 EBITDA 在本季度增長了 30% 以上。第一季度前往西雅圖的國際航空旅行量與 2019 年相比僅下降了 2%。自疫情大流行以來，3 月份的國際航空運輸量首次超過 2019 年的水平。奧斯汀克服了矽谷和西雅圖市場復甦緩慢的局面，繼續表現出色。在我們的奧斯汀 Residence Inn 酒店，每間可用客房 (RevPAR) 較 2019 年增長 13%，入住率和平均房價均有所增長。我們的 TownPlace Suites 奧斯汀套房尚未於 2019 年開業，但我想說的是，我們奧斯汀 TownPlace Suites 酒店的 RevPAR 同比增長了近 40%。

Our 5 highest hotels with absolute RevPAR in the quarter were our Residence Fort Lauderdale with RevPAR over $273, on occupancy of 93%, followed by our Hilton Garden Inn Marina del Rey with RevPAR of $147. And then our SpringHill Suites in Savannah -- SpringHill Suites Savannah and Home2 Woodland Hills, and those both also had RevPAR over $150. 27 of our 36 comparable hotels achieved first quarter ADR higher than 2019, and 14 of our 36 comparable hotels achieved RevPAR higher than '19. We continue to see an average length of stay approximately 10% longer than our historical levels. It's come down from pandemic-related stays. But on a long-term basis, should remain longer due to the more flexible work arrangements that exists in today's work environment.

本季度絕對 RevPAR 最高的 5 家酒店是我們的 Residence Fort Lauderdale，其 RevPAR 超過 273 美元，入住率為 93%，其次是我們的 Hilton Garden Inn Marina del Rey，其 RevPAR 為 147 美元。然後是我們在薩凡納的 SpringHill Suites——薩凡納 SpringHill Suites 和 Home2 Woodland Hills，它們的 RevPAR 也都超過 150 美元。我們的 36 家可比酒店中有 27 家的第一季度平均房價高於 2019 年，36 家可比酒店中有 14 家的 RevPAR 高於 19 年。我們發現平均停留時間比歷史水平長約 10%。這是由於與大流行相關的住宿而減少的。但從長遠來看，由於當今的工作環境中存在更靈活的工作安排，應該保持更長的時間。

For the quarter, total hotel revenue of $67 million was up 23% compared to last year's revenue of $54 million, which is the same percentage growth as last quarter. We were able to generate incremental GOP flow-through of almost $6 million for flow-through of approximately 50%, much better than our fourth quarter flow-through of 35%. We are still able to control operating expenses and headcounts. Our employee headcount remains approximately 20% below pre-pandemic levels. And since 2019, our hourly wages, similar to last quarter, have increased approximately 25% over that same 4-year period. And versus last year through the first quarter, our hourly wages are essentially flat at our hotels. Our top 5 producers of GOP in the quarter were our Gaslamp Residence Inn, the fifth straight quarter to lead the portfolio, followed by our Residence Inn Fort Lauderdale, Courtyard Dallas Downtown and then our Residence Inn Silicon Valley II and then our SpringHill Suites in Savannah.

本季度酒店總收入為 6,700 萬美元，比去年的 5,400 萬美元收入增長 23%，增幅與上季度相同。我們能夠為共和黨帶來近 600 萬美元的增量流通，流通率約為 50%，比第四季度 35% 的流通率要好得多。我們仍然能夠控制運營費用和員工人數。我們的員工人數仍比大流行前的水平低約 20%。自 2019 年以來，我們的小時工資與上季度類似，在 4 年期間增長了約 25%。與去年第一季度相比，我們酒店的小時工資基本持平。本季度我們的 GOP 前 5 名生產商是我們的 Gaslamp Residence Inn 酒店，這是連續第五個季度領先的投資組合，其次是我們的勞德代爾堡 Residence Inn 酒店、達拉斯市中心萬怡酒店、矽谷 II 號 Residence Inn 酒店和薩凡納的 SpringHill Suites 酒店。

With respect to capital expenditures, we spent approximately $8 million in the quarter and expect to spend about $30 million total in 2023. That includes $22 million of renovation cost at 5 hotels. During the quarter, we completed renovations at our Residence Inns in White Plains and Holtsville, New York as well as our Residence Inn Foggy Bottom. And just as an extra tidbit, RevPAR at our Residence Inn Foggy Bottom. And just as a extra tidbit, RevPAR at our Residence Inn Foggy Bottom was actually still up approximately 60% year-over-year despite being under renovation for most of the quarter, indicative of just another business travel market that's been pretty dormant for the last couple of years that's starting to come back to life. A reminder, we are hosting in-person meetings at REIT Week in early June. So please e-mail me directly if we haven't already locked up a meeting yet. With that, I'll turn it over to Jeremy.

在資本支出方面，我們本季度支出約 800 萬美元，預計 2023 年總計支出約 3000 萬美元。其中包括 5 家酒店的 2200 萬美元裝修費用。本季度，我們完成了紐約懷特普萊恩斯和霍爾茨維爾的 Residence Inn 酒店以及霧谷 Residence Inn 酒店的翻修工程。另外，還有一個額外的花絮，我們的 Foggy Bottom Residence Inn 酒店的 RevPAR。值得一提的是，儘管本季度大部分時間都在進行翻修，但我們 Foggy Bottom Residence Inn 酒店的 RevPAR 實際上仍同比增長約 60%，這表明另一個商務旅行市場在上個季度一直處於休眠狀態。幾年後，它開始恢復生機。提醒一下，我們將在 6 月初的房地產投資信託週 (REIT Week) 上舉辦現場會議。因此，如果我們尚未鎖定會議，請直接給我發電子郵件。有了這個，我會把它交給傑里米。

Thanks, Dennis. Good afternoon, everyone. Our Q1 2023 hotel EBITDA was $20.7 million. Adjusted EBITDA was $17.8 million. Adjusted FFO per share was $0.16, and cash flow before capital was $7.6 million. While we have seen costs increase due to reinstatement of certain brand standards and the impacts of inflation on a number of key line items, we were able to generate a solid GOP margin of 39.8% and hotel EBITDA margin of 30.7% in Q1. Our Q1 GOP margin of 39.8% was essentially equal to our Q4 2022 GOP margin of 39.9% and was 150 basis points higher than our Q1 2022 GOP margin of 38.3%. Over the last several years, Chatham has taken a number of steps to strengthen its balance sheet, and as a result, we now have the lowest leverage and most liquidity we've ever had. As of March 31, Chatham's net debt to LTM EBITDA was 4.3x, which is significantly below our pre-pandemic leverage, which is generally in the 5.5 to 6x area, despite the fact that EBITDA is not fully recovered to pre-pandemic levels.

謝謝，丹尼斯。大家下午好。我們 2023 年第一季度的酒店 EBITDA 為 2070 萬美元。調整後 EBITDA 為 1780 萬美元。調整後每股 FFO 為 0.16 美元，資本前現金流為 760 萬美元。雖然我們看到由於恢復某些品牌標準以及通貨膨脹對一些關鍵項目的影響而導致成本增加，但我們在第一季度實現了 39.8% 的穩定 GOP 利潤率和 30.7% 的酒店 EBITDA 利潤率。我們第一季度的共和黨利潤率為 39.8%，基本等於 2022 年第四季度的共和黨利潤率 39.9%，比 2022 年第一季度的共和黨利潤率 38.3% 高出 150 個基點。在過去的幾年裡，查塔姆採取了一系列措施來加強其資產負債表，因此，我們現在擁有有史以來最低的槓桿率和最高的流動性。截至 3 月 31 日，Chatham 對 LTM EBITDA 的淨債務為 4.3 倍，這明顯低於我們在疫情爆發前的槓桿率，而我們的槓桿率通常在 5.5 至 6 倍之間，儘管 EBITDA 尚未完全恢復至疫情前的水平。

In Q1, we used $75 million of the delayed draw term loan availability to repay 2 maturing mortgage loans and the construction loan in our Home2 Warner Center. We intend to use the remaining availability under our delayed draw term loan to repay a $16 million mortgage that matures in May 2023 and use available cash to repay a $20 million mortgage that matures in July 2023. Over the course of 2023, we'll continue to closely monitor debt markets to consider opportunities to refinance a $40 million mortgage that matures in December and potentially address a portion of our 2024 debt maturities.

第一季度，我們使用了 7500 萬美元的延遲提取定期貸款來償還 2 項到期抵押貸款和 Home2 華納中心的建築貸款。我們打算使用延遲提取定期貸款下的剩餘可用資金來償還 2023 年 5 月到期的 1,600 萬美元抵押貸款，並使用可用現金償還 2023 年 7 月到期的 2,000 萬美元抵押貸款。在 2023 年期間，我們將繼續密切關注債務市場，考慮為 12 月到期的 4000 萬美元抵押貸款進行再融資的機會，並可能解決 2024 年到期的部分債務問題。

Our undrawn $260 million revolving credit facility provides a valuable source of liquidity that increases our flexibility to address our remaining debt maturities. With our reasonable leverage, solid liquidity, strong operating performance, sizable portfolio of unencumbered hotels and meaningful free cash flow, we are well positioned to refinance our remaining debt maturities when needed. As a reminder, our reported 2022 RevPAR figures did not include results for the Home2 Warner Center since it had been in operation for less than a year, and our reported 2023 RevPAR figures include Warner Center's results starting on January 24, 2023, the 1-year anniversary of its opening date. 2022 RevPAR, including Warner Center, was $90 in Q1, $138 in Q2, $151 in Q3, $118 in Q4 and $124 for the full year. This concludes my portion of the call. Operator, please open the line for questions.

我們未提取的 2.6 億美元循環信貸額度提供了寶貴的流動性來源，提高了我們解決剩餘債務到期問題的靈活性。憑藉我們合理的槓桿率、穩健的流動性、強勁的經營業績、規模龐大的無負擔酒店組合和可觀的自由現金流，我們有能力在需要時為剩餘債務期限進行再融資。提醒一下，我們報告的 2022 年 RevPAR 數據不包括 Home2 華納中心的結果，因為它運營還不到一年，而我們報告的 2023 年 RevPAR 數據包括華納中心自 2023 年 1 月 24 日開始的結果，即 1-開業周年紀念日。 2022 年的 RevPAR（包括華納中心）第一季度為 90 美元，第二季度為 138 美元，第三季度為 151 美元，第四季度為 118 美元，全年為 124 美元。我的電話部分到此結束。接線員，請開通提問線路。

(Operator Instructions) Our first question comes from the line of Aryeh Klein with BMO Capital Markets.

（操作員說明）我們的第一個問題來自 BMO 資本市場的 Aryeh Klein。

Maybe can you talk a little bit about the Silicon Valley market? It looks like RevPAR versus 2019 maybe took a little bit of a step back in the first quarter relative to the fourth quarter. It's obviously a market that has a lot of challenges. To what extent, if any, have they maybe gotten somewhat worse recently with the layoffs and banking? And then I think you mentioned potentially backfilling the intern business. Can you just talk about that a little bit and add some color and context there?

也許您能談談矽谷市場嗎？看起來，與 2019 年相比，第一季度的 RevPAR 可能比第四季度略有回落。顯然，這是一個充滿挑戰的市場。最近，由於裁員和銀行業務，他們的情況是否變得更糟（如果有的話）？然後我想你提到了可能回補實習生業務。您能簡單談談這一點並添加一些色彩和背景嗎？

Yes. I mean I'll start and Jeff can chime in, Aryeh. This is Dennis. I think if you look kind of sequentially from the fourth quarter to the first quarter, I think really, the only difference is between kind of October and now as we sit here today, you've had $100-plus thousand of announced job cuts. So in the short term, I would say not all surprising given just the quarter-to-quarter sequential movement. I think the important thing, which I think Jeff talked about, is that we are really -- and I think we even talked about this in February, which kind of by the time the second week of February came along, we actually just started to see some trickling of international travel, which has only continued to improve. And if you look at the 4 hotels in Silicon Valley, just as recently as the last couple of weeks, you're looking at 82% occupancy in Mountain View, 82% in San Mateo, 80% at Sili I and basically 79%, 80% at Sili II.

是的。我的意思是我先開始，傑夫可以插話，Aryeh。這是丹尼斯。我認為，如果你按順序查看第四季度到第一季度的情況，我認為，唯一的區別是 10 月份和現在，當我們今天坐在這裡時，你已經宣布了 100 多美元的裁員。因此，從短期來看，考慮到季度環比的連續變化，我認為這並不令人意外。我認為傑夫談到的重要的事情是，我們真的 - 我想我們甚至在二月份討論過這個問題，到二月份的第二周到來時，我們實際上才剛剛開始看到一些國際旅行的出現，而且這種情況還在持續改善。如果你看看矽谷的 4 家酒店，就在最近幾週，你會發現山景城的入住率為 82%，聖馬特奧為 82%，Sili I 為 80%，基本上為 79%，西里二號 80%。

So occupancy wise, the market is continuing to, as Jeff talked about, demand from not only international, but just broadening corporate demand in the market has gotten better. I mean, to sit here in basically April with 75%, 80% occupancy at those 4 hotels is encouraging. And rates as well, if you look at each of those 4 hotels, rates on average are up essentially $10 to $15 from just 7 or 8 weeks ago. So it's a good trend. Our operators there are positive about what they're seeing from a demand perspective. And that at least, believe -- I think as we've worked through the last 3 months, we're encouraged by that trend, and we do feel even though we took a bunch of intern business last year, which was almost double what we had done historically on a pre-pandemic basis, I think we'll be able to offset a good chunk of, if not most of, that lost EBITDA.

因此，正如傑夫所說，就入住率而言，市場繼續變得更好，不僅來自國際市場的需求，而且來自市場上不斷擴大的企業需求也變得更好。我的意思是，四月份基本上坐在這裡，這 4 家酒店的入住率達到 75%、80%，這是令人鼓舞的。還有價格，如果你看看這 4 家酒店，你會發現平均價格比 7 或 8 週前上漲了 10 到 15 美元。所以這是一個好的趨勢。我們的運營商對他們從需求角度看到的情況持積極態度。至少，相信——我認為，在我們過去三個月的工作中，我們對這種趨勢感到鼓舞，而且我們確實感覺到，儘管去年我們接了很多實習生業務，這幾乎是去年的兩倍我們在大流行前的歷史基礎上所做的，我認為我們將能夠抵消大部分（如果不是大部分）EBITDA 損失。

And then just maybe, Jeremy, on the balance sheet, you mentioned some of the things that you're doing this year. There's a lot of debt that's coming due next year, some of it in Silicon Valley-challenged market. What's, I guess, kind of the plan there? And how difficult do you think it will be to refinance those? Could you look at the delayed term loan as an option? I guess, how are you approaching it?

傑里米，也許在資產負債表上，您提到了今年您正在做的一些事情。明年有大量債務到期，其中一些來自矽谷面臨挑戰的市場。我想，那裡的計劃是什麼？您認為為這些項目進行再融資有多困難？您能否將延遲定期貸款視為一種選擇？我想，你是如何接近它的？

Yes. Look, I mean, we have overall very, very low leverage. And a lot of unencumbered properties that serve as borrowing base to the credit facility much more than we need there. So I think we're probably unlikely to put in longer-term fixed rate debt on a bunch of the Silicon Valley properties given the performance levels. So we're likely just to put debt on other assets. So rates have been coming down a little bit. Spreads kind of depend on the week. I think in today's market, new debt probably has a sixth handle on it. So there's going to be some increase in cost at some point unless rates come down, which they certainly could, depending on what's going on in the world. But I think overall, we're probably less likely to put debt on the Silicon Valley asset. So that won't really have an impact on our refinancing plans.

是的。聽著，我的意思是，我們總體上的槓桿率非常非常低。許多無負擔的財產充當信貸安排的借貸基礎，遠遠超出了我們的需要。因此，我認為，鑑於業績水平，我們可能不太可能對矽谷的一系列房產投入長期固定利率債務。因此，我們可能只是將債務放在其他資產上。因此，利率略有下降。點差有點取決於星期。我認為在今天的市場上，新債可能有第六把柄。因此，除非利率下降，否則在某個時候成本將會有所增加，這當然是可能的，具體取決於世界上正在發生的事情。但我認為總體而言，我們不太可能在矽谷資產上舉債。因此，這不會真正對我們的再融資計劃產生影響。

Aryeh, this is Dennis. Just one thing I want to just continue to add just on Silicon Valley because obviously that's a big component. The fact is between all of the layoffs of the tech companies since kind of late in 2022, their employment numbers are still well above where they were 4 years ago. And I think to -- certainly, as you look forward, and again, in a market that we're running 75%, 80% occupancy and having come through tech layoffs probably as many as there have been since the financial crisis, I think it's not -- I mean, listen, we certainly would love for RevPAR to be higher, but it's not the end of the world either. It's -- the hotels are doing well. Rate will continue to rise. And demand is going to continue to come back. We've owned these hotels, whether it be with Chatham or with Innkeepers since the late '90s. And every cycle is better than the prior one. So I think that growth is coming. It's just a question of the timing of how it comes back.

阿耶，這是丹尼斯。我想繼續補充關於矽谷的一件事，因為顯然這是一個重要組成部分。事實上，自 2022 年末以來，科技公司雖然進行了多次裁員，但其就業人數仍遠高於 4 年前的水平。我認為——當然，正如你所期待的那樣，在一個我們的入住率達到 75%、80% 的市場中，並且經歷了技術裁員，數量可能與金融危機以來的一樣多，我認為這不是——我的意思是，聽著，我們當然希望 RevPAR 更高，但這也不是世界末日。酒店經營得很好。利率將繼續上升。需求將繼續回升。自 20 世紀 90 年代末以來，我們一直擁有這些酒店，無論是查塔姆還是 Innkeepers。而且每個週期都比前一個週期更好。所以我認為增長即將到來。只是如何回歸的時間問題。

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

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

You mentioned in your prepared comments and we've been hearing in other calls, the international travel is starting to come back. And I think the numbers you said into San Francisco and Seattle were encouraging. For your markets out on the West Coast, does that include -- or how should we think about international travel into those markets for kind of rest of world versus inbound from Asia, which we're hearing is just now really starting to ramp?

您在準備好的評論中提到，我們也在其他電話中聽到，國際旅行正在開始回歸。我認為你所說的舊金山和西雅圖的數字令人鼓舞。對於西海岸的市場，這是否包括——或者我們應該如何考慮進入這些市場的國際旅行，以及來自世界其他地區的國際旅行與來自亞洲的入境旅行，我們聽說亞洲的入境旅行現在才真正開始增加？

Most of our Silicon Valley business is Asia. Engineers staying in the hotels. I was there 2 weeks ago. We're still doing the appropriate breakfast for that clientele in our Residence Inns. And so that business, at least for us, seems pretty darn strong.

我們矽谷的大部分業務都在亞洲。工程師入住酒店。兩週前我在那裡。我們仍在 Residence Inns 中為該客戶提供適當的早餐。因此，至少對我們來說，這項業務似乎相當強勁。

Okay. And then on the acquisition front, as we think about gateway full-service hotels in New York and other big markets like that, having problems, big-ticket hotels with refinancings probably later this year, how would you characterize your segment of the market, Jeff, as it relates to opportunities? I know that you say 1 or 2 hotels can move the needle. But do you get the sense that we'll see kind of a barrage of $20 million, $30 million, $40 million extended stay hotel hit the market? Or are they just easier to refinance and that's not going to happen?

好的。然後在收購方面，當我們考慮紐約和其他類似的大型市場的門戶全方位服務酒店時，可能會在今年晚些時候遇到問題，可能會在今年晚些時候進行再融資的大件酒店，您將如何描述您的市場部分，傑夫，這與機會有關嗎？我知道你說一兩家酒店可以改變現狀。但是您是否感覺到我們會看到一大批價值 2000 萬美元、3000 萬美元、4000 萬美元的長住酒店湧入市場？或者他們只是更容易再融資而這種情況不會發生？

It's hard to tell. I mean, every time we speculate -- and you've been around for a long time, too. Every time we speculate about oncoming distress, it seems like going back to, obviously, the GFC and to the beginning of the pandemic and all the other cycles we've been through, it never quite happens the way we expect it to happen. But I think there should be just call it select service hotels across the board. There's a lot of debt maturing. I think extended stay hotels are way closer if not on top of 2019 EBITDA numbers. So probably as a group, frankly, you might see less issues within what we really like to acquire, but that doesn't mean there won't be anything to acquire because there's just so much of it. And it's really owner dependent upon the status of what their balance sheets may or may not look like. Of course, they're all nonrecourse loans anyway. But what does their FF&E reserve account look like? What kind of capital calls have they had during the pandemic? What's their appetite to put money back in, et cetera, so we're kind of cautiously very optimistic about opportunities down the road.

很難說。我的意思是，每次我們猜測——而你也已經存在很長時間了。每當我們推測即將到來的困境時，顯然，這似乎又回到了全球金融危機和大流行的開始以及我們經歷過的所有其他週期，但它從來沒有完全按照我們預期的方式發生。但我認為應該將其稱為全線精選服務酒店。大量債務即將到期。我認為，如果不考慮 2019 年 EBITDA 數據，長住酒店的目標更接近。因此，坦率地說，作為一個團隊，您可能會在我們真正想要獲得的東西中看到較少的問題，但這並不意味著不會有任何東西可以獲得，因為有太多東西了。它的所有者實際上取決於他們的資產負債表的狀況。當然，反正都是無追索權貸款。但他們的 FF&E 儲備賬戶是什麼樣的呢？疫情期間，他們接到了什麼樣的資金呼喚？他們有什麼興趣重新投入資金等等，所以我們對未來的機會持謹慎、非常樂觀的態度。

All right. And thanks for making me feel old. I appreciate it.

好的。謝謝你讓我感覺自己老了。我很感激。

It wasn't intended that way.

本來不是這樣的。

Our next question comes from the line of Tyler Batory with Oppenheimer.

我們的下一個問題來自泰勒·巴托利和奧本海默的關係。

This is Jonathan on for Tyler. First one from me. Any additional color on more recent demand trends maybe outside of the Silicon Valley market? Any pockets of weakness or slowing that are worth calling out there given some of the macro volatility we've seen?

這是泰勒的喬納森。第一個來自我。關於矽谷市場之外的近期需求趨勢還有什麼其他的信息嗎？考慮到我們所看到的一些宏觀波動，有哪些弱點或放緩值得指出？

Jonathan, this is Dennis. No, I mean, I think outside of that, especially if you look at our major markets, as I talked about with Washington, D.C., is coming back to life finally. Dallas, Texas is just really on fire. Los Angeles, especially with Marina del Rey, is doing really well. San Diego has just been killing it. It was more leisure-driven in the early years of the pandemic. It's now back to a pretty strong convention calendar of business travelers. So outside of, I would say, Silicon Valley and Seattle, everything else is pretty good. Even Austin, which is another tech-related market, our 2 hotels at the domain, good growth, not only year-over-year, but versus 2019. And it's been able to still run high 80s, 90% occupancies as well. So very, very encouraging pretty much everywhere else.

喬納森，這是丹尼斯。不，我的意思是，我認為除此之外，特別是如果你看看我們的主要市場，正如我與華盛頓特區談論的那樣，最終將恢復生機。德克薩斯州達拉斯真的著火了。洛杉磯，尤其是瑪麗安德爾灣，做得非常好。聖地亞哥剛剛殺死了它。在大流行的最初幾年，人們更加以休閒為導向。現在商務旅客的會議日程又回來了。所以我想說，除了矽谷和西雅圖之外，其他一切都很好。即使是奧斯汀，這是另一個與科技相關的市場，我們在該領域的 2 家酒店也實現了良好的增長，不僅同比增長，而且與 2019 年相比也是如此。而且它仍然能夠保持 80 年代的高入住率，入住率也達到 90%。幾乎在其他地方都非常非常令人鼓舞。

No, that's great. I appreciate that color. And then switching gears on the capital structure, Jeremy, you highlighted the strong leverage profile in the prepared remarks. Any updated color you can provide on how you're thinking about the leverage profile moving forward?

不，那太好了。我很欣賞那種顏色。然後改變資本結構，傑里米，你在準備好的評論中強調了強勁的槓桿狀況。您可以提供任何更新的顏色來說明您如何看待未來的槓桿情況嗎？

I think we have capacity to add a little leverage over time even at kind of current EBITDA levels. So I think we'd be comfortable taking leverage to 4.75, 5x, something like that. And then as EBITDA recovers, especially in Silicon Valley, that should give us more buying capacity as well.

我認為，即使在目前的 EBITDA 水平上，我們也有能力隨著時間的推移增加一點槓桿作用。所以我認為我們會很樂意將槓桿率提高到 4.75、5 倍之類的水平。然後，隨著 EBITDA 的恢復，尤其是在矽谷，這也應該會給我們帶來更多的購買能力。

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

（操作員說明）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 the extended stay brands. A lot of the major brands seem to have a lot of energy around these new mid-scale brands in the extended stay segment. Is that something that you would look into long term? Or are you still more focused on more of the upscale extended-stay market?

關於長住品牌的問題。許多主要品牌似乎都對長住細分市場的這些新中型品牌投入了大量精力。這是您會長期考慮的事情嗎？或者您仍然更關注高端長住市場？

Anthony, it's Jeff. It certainly is going to be interesting to see how all this shakes out. I believe that Marriott will announce theirs at the upcoming NYU Conference. So there'll be a full roundup of everybody in the business. And look, we're not going to foreclose any opportunities because we like extended stay. Obviously, we're very happy with our Home2 performance, and that is more of a upper mid-scale brand than Residence Inn or Homewood Suites. We do a bunch of those, and we look at other opportunities in some of the other brands. So I think it's certainly a proven business model, if anything, perhaps might get overplayed a little bit, but there's also not as many developers able to truly finance the construction of those deals as the brands would lead you to believe. So we'll see how much really gets built. It will be interesting.

安東尼，是傑夫。看看這一切如何發生當然會很有趣。我相信万豪將在即將舉行的紐約大學會議上宣布他們的計劃。因此，將對業內每個人進行全面匯總。看，我們不會因為喜歡長期停留而取消任何機會。顯然，我們對 Home2 的表現非常滿意，與 Residence Inn 或 Homewood Suites 相比，它更像是中高檔品牌。我們做了很多這樣的事情，並在其他一些品牌中尋找其他機會。因此，我認為這肯定是一種經過驗證的商業模式，如果有的話，也許可能有點被誇大了，但也沒有那麼多開發商能夠真正為這些交易的建設提供資金，就像品牌讓你相信的那樣。所以我們將看看到底建造了多少。這會很有趣。

So you're not worried that these brands will be too low ADR? Or I mean it sounds like the business model is still even attractive even at lower price points?

那麼您不擔心這些品牌的ADR會太低嗎？或者我的意思是，聽起來即使價格較低，這種商業模式仍然有吸引力？

It just depends on what the service model is really. First of all, we're not going to get involved in a $40 or $50 RevPAR deal. But if the RevPAR is pretty close, like a Home2's RevPAR is to a Residence Inn or Homewood, yet your margins are -- you could prove them out to be way in excess or in excess of 50% at the GOP line, those numbers can work really well depending on construction cost.

這僅取決於服務模式的實際情況。首先，我們不會參與 40 美元或 50 美元 RevPAR 的交易。但是，如果 RevPAR 非常接近，就像 Home2 的 RevPAR 與 Residence Inn 或 Homewood 的情況一樣，但你的利潤卻是——你可以證明它們遠遠超過或超過 GOP 線的 50%，這些數字可以效果真的很好，具體取決於建築成本。

Yes. Got it. Okay. And one more on the Silicon Valley and I guess, the intern business. Can you remind us when did that start last year? Was that in June? So is that a 2Q impact? Or is that more 3Q in terms of the year-over-year comparison?

是的。知道了。好的。還有一件事是關於矽谷的，我想是實習生業務。你能提醒我們去年什麼時候開始的嗎？那是在六月嗎？那麼這是第二季度的影響嗎？或者說與去年同期相比，第三季度的情況是否更好？

It's a bit of each, Anthony. I mean, really the interns last year and really every year, some trickle in the last week of May. The bulk of them are in June, basically June, July and August. So it's essentially 1/3 of it in June, 2/3 of it, July and August.

安東尼，兩者都有一點。我的意思是，去年和每年都有實習生，五月的最後一周會有一些實習生。大部分是在六月，基本上是六月、七月、八月。所以基本上是 6 月的 1/3，7 月和 8 月的 2/3。

All right. So I guess we'll start seeing that impact on the comp this quarter? I mean, I know you get back to some of it, but I guess coming June could be...

好的。所以我想我們會在本季度開始看到這種對公司的影響？我的意思是，我知道你會回到其中一些，但我想即將到來的六月可能會......

Yes.

是的。

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Fisher for any final comments.

女士們先生們，我們的問答環節到此結束。我將把發言權轉回費舍爾先生以徵求最終意見。

Well, as always, we certainly appreciate everybody being on this call. Normally, I'd just say we'll see you next time, but I would like to just kind of pick up the ball a little bit and conclude with good news in Silicon Valley because I was there, as I mentioned, a couple of weeks ago, and spent an extensive amount of time in every hotel, meeting with the teams, particularly our sales team. And I will tell you, there's a lot of excitement around, for example, AI and business that's being talked about that will be generated by the big companies that we already do business with, that everybody knows the name of, as you know for incoming this year and certainly moving into 2024.

嗯，一如既往，我們當然感謝大家參加這次電話會議。通常情況下，我只是說我們下次見，但我想稍微收拾一下，並以矽谷的好消息作為結束語，因為正如我提到的，我在那裡，有幾個幾週前，我花了很多時間在每家酒店與團隊會面，特別是我們的銷售團隊。我會告訴你，有很多令人興奮的事情，例如，正在談論的人工智能和商業將由我們已經與之開展業務的大公司產生，每個人都知道這些公司的名字，正如你所知道的傳入的那樣今年，肯定會進入 2024 年。

It's funny I read a Silicon -- I read the Silicon Valley Business Journal. And about 2 or 3 weeks ago, I read that they have the lowest amount of startups funded in 3 or 4 years in the Silicon Valley, and that week, that number was 8 or 9. So this in a normal week, more like 30 to 40. There's still business in Silicon Valley, and there will be plenty of business, I think, as we move through the year and in the future years. And that's why we like our exposure there in good times and in bad times. As Dennis indicated, we've certainly lived through many cycles there, but there continues to be exciting developments in a lot of different arenas. There's a further funding of a company that does those vertical helicopters that our folks are talking to with another round of financing coming in on those for approval and flight in 2024. So all is not lost and we will be more than fine. And with that, we will talk to you next time. Thanks.

有趣的是我讀了《矽谷》——我讀了《矽谷商業雜誌》。大約 2、3 週前，我讀到，矽谷獲得融資的初創公司數量是 3 或 4 年來最低的，而那一周，這個數字是 8 或 9 家。所以在正常的一周裡，更像是 30 家到 40 歲。矽谷仍然有生意，而且我認為，隨著我們今年和未來幾年的發展，將會有大量的生意。這就是為什麼我們喜歡在順境和逆境中都呆在那裡。正如丹尼斯指出的那樣，我們確實經歷了許多周期，但在許多不同的領域仍然有令人興奮的發展。一家生產垂直直升機的公司獲得了進一步的資金，我們的人員正在與他們交談，另一輪融資將在 2024 年獲得批准和飛行。因此，一切都還沒有結束，我們會一切順利。就這樣，我們下次再和你談談。謝謝。

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

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。