Sotherly Hotels Inc (SOHO) 2022 Q4 法說會逐字稿

Hello, and welcome to today's Sotherly Hotels 4Q 2022 Earnings Call and Webcast. My name is Bailey, and I'll be the moderator for today's call. (Operator Instructions) I would now like to pass the conference over to our host, Mack Sims, Vice President of Operations. Please go ahead.

大家好，歡迎收看今天的 Sotherly Hotels 2022 年第四季度財報電話會議和網絡直播。我叫 Bailey，我將擔任今天電話會議的主持人。 （操作員說明）我現在想將會議轉交給我們的主持人，運營副總裁 Mack Sims。請繼續。

Thank you, and good morning, everyone. If you did not receive a copy of the earnings release, you may access it on our website at sotherlyhotels.com. In the release, the company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements.

謝謝大家，早上好。如果您沒有收到收益發布的副本，您可以在我們的網站 sotherlyhotels.com 上訪問它。在新聞稿中，公司已根據 Reg G 的要求將所有非 GAAP 財務指標與最直接可比的 GAAP 指標進行了核對。

Any statements made during this conference call, which are not historical, may constitute forward-looking statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained.

本次電話會議期間作出的任何非歷史陳述都可能構成前瞻性陳述。儘管我們認為任何前瞻性陳述中反映的預期都是基於合理的假設，但我們無法保證這些預期會實現。

Factors and risks that can cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in today's press release and from time to time in the company's filings with the SEC. The company does not undertake a duty to update or revise any forward-looking statements.

今天的新聞稿以及公司不時向美國證券交易委員會提交的文件中詳述了可能導致實際結果與前瞻性陳述明示或暗示的結果存在重大差異的因素和風險。公司不承擔更新或修改任何前瞻性陳述的義務。

And with that, I'll turn the call over to Scott.

有了這個，我會把電話轉給斯科特。

Thanks, Mack. Good morning, everyone. I'll start off today's call with a review of our portfolio's key operating metrics for the quarter. Looking at the fourth quarter results for the same-store composite portfolio, RevPAR was $102.34 driven by an occupancy of 57.4% and an ADR of $178.41. Fourth quarter RevPAR performance represents an increase of 17.1% over the same period in 2021. For the year, RevPAR for the same-store composite portfolio was $108.56 with occupancy of 61% and an ADR of $178.1.

謝謝，馬克。大家，早安。我將從今天的電話會議開始，回顧我們投資組合本季度的關鍵運營指標。查看同店綜合投資組合的第四季度業績，受 57.4% 的入住率和 178.41 美元的 ADR 推動，RevPAR 為 102.34 美元。第四季度 RevPAR 業績比 2021 年同期增長 17.1%。全年，同店綜合投資組合的 RevPAR 為 108.56 美元，入住率為 61%，ADR 為 178.1 美元。

2022's full year RevPAR performance represents an increase of 27.7% over the same period in 2021. Overall, we were pleased with our portfolio's fourth quarter results highlighted by sustained strength in demand for lease travel, coupled with growing demand for group and business travel. During October, which is historically one of the busiest group and business travel months of the year for our portfolio, RevPAR was up 3.3% over 2019 levels with ADR up more than 11%.

2022 年全年 RevPAR 業績比 2021 年同期增長 27.7%。總體而言，我們對我們投資組合的第四季度業績感到滿意，這突出體現在租賃旅行需求持續強勁，以及團體和商務旅行需求不斷增長。 10 月曆來是我們投資組合一年中最繁忙的團體和商務旅行月份之一，RevPAR 比 2019 年水平增長 3.3%，ADR 增長超過 11%。

November experienced some softness due to Hurricane Nicole's threatened impact on the Southern U.S. However, December produced similarly strong results with RevPAR outpacing 2019 by 1.3%, with ADR up nearly 19%. For the quarter as a whole, RevPAR was off by [2.5%] to Q4 2019. On an annualized basis, 2022 RevPAR was off 2019 by 6.2%, with occupancy down 12.9% with ADR increasing 7.7%. While we expect rates to remain strong, we believe occupancy growth will be the biggest opportunity going forward.

由於颶風妮可對美國南部的威脅，11 月經歷了一些疲軟。然而，12 月產生了同樣強勁的結果，RevPAR 比 2019 年高出 1.3%，ADR 上漲近 19%。就整個季度而言，與 2019 年第四季度相比，RevPAR 下降了 [2.5%]。按年率計算，2022 年的 RevPAR 比 2019 年下降了 6.2%，入住率下降了 12.9%，ADR 增長了 7.7%。雖然我們預計利率將保持強勁，但我們認為入住率增長將是未來最大的機遇。

Our portfolio's recent booking trends for business and group travel demonstrate the demand from these segments continues to grow. For the group segment, which continues to be -- continues to make quarter-over-quarter improvements, our portfolio produced 103% of the group business in the fourth quarter of 2022 compared to Q4 2019. During 2022, the nature of our group bookings was 25% corporate, representing a positive change from the prior year where corporate accounted for 15% of total group bookings.

我們產品組合最近的商務和團體旅行預訂趨勢表明，這些細分市場的需求持續增長。對於繼續進行環比改進的團體業務，與 2019 年第四季度相比，我們的產品組合在 2022 年第四季度產生了 103% 的團體業務。在 2022 年期間，我們團體預訂的性質企業佔 25%，與上一年相比出現了積極變化，上一年企業佔團體預訂總量的 15%。

For the transient business travel segment, our portfolio was 68% of the business travel produced in Q4 2019 but was 36% greater than Q4 2021. These gains in group and business travel demand came across the entire portfolio but most notably at our urban properties in Washington, D.C. and Atlanta, which experienced the best year-over-year improvements in performance. Meanwhile, our portfolio's leisure-focused hotels continue to outperform expectations during the quarter.

對於短暫的商務旅行部分，我們的投資組合佔 2019 年第四季度產生的商務旅行的 68%，但比 2021 年第四季度高出 36%。團體和商務旅行需求的這些增長來自整個投資組合，但最顯著的是我們位於華盛頓特區和亞特蘭大的績效同比增長最好。與此同時，我們投資組合中的休閒酒店在本季度的表現繼續超出預期。

Sustained strength in the leisure segment was supplemented by group with better-than-expected food and beverage contribution resulting in strong improvement over prepandemic levels in these markets. Overall, rate growth across all segments continued to drive strong results for our portfolio. Our forecasts for 2023, which have shown further improvement to these trends for the portfolio are an encouraging sign for our company.

休閒部門的持續實力得到食品和飲料貢獻好於預期的集團的補充，導致這些市場的大流行前水平大幅改善。總體而言，所有細分市場的利率增長繼續推動我們的投資組合取得強勁業績。我們對 2023 年的預測表明，投資組合的這些趨勢將進一步改善，這對我們公司來說是一個令人鼓舞的跡象。

Dave will comment more on this later in the call. Looking at some highlights across the portfolio. The Hyatt Centric Arlington continued to show steady, sequential improvement relative to 2019 fueled by the return of group and business travel to the hotel. Fourth quarter RevPAR was only down 2019 by 1.3% as compared to 10.1% deficit during the third quarter. Rate which was up 12.4% compared to the fourth quarter of 2019 was a driver of this improvement.

戴夫稍後將在電話中對此發表更多評論。查看投資組合中的一些亮點。在團隊和商務旅行回歸酒店的推動下，阿靈頓 Hyatt Centric 相較於 2019 年繼續呈現穩定、連續的改善。與第三季度 10.1% 的赤字相比，2019 年第四季度 RevPAR 僅下降 1.3%。與 2019 年第四季度相比增長 12.4% 的利率是這一改善的驅動因素。

The property continues to outperform its competitive set. And during the quarter, the hotel achieved a RevPAR index of over 123% and gained over 11.6% RevPAR share, further solidifying its position as the market leader. The DeSoto Savannah continued its streak of excellent performance, which is driven by a well-balanced mix of leisure and group business. During the quarter, the property easily outpaced 2019 metrics with a 21.3% gain in RevPAR fueled by significant rate growth of 26.1% over 2019.

該物業的表現繼續優於其競爭對手。在本季度，酒店的 RevPAR 指數達到了 123% 以上，並獲得了超過 11.6% 的 RevPAR 份額，進一步鞏固了其市場領導者的地位。 DeSoto Savannah 繼續其卓越的表現，這是由休閒和團體業務的均衡組合推動的。在本季度，由於 2019 年 26.1% 的顯著增長率，該物業的 RevPAR 增長了 21.3%，輕鬆超過了 2019 年的指標。

Hotel Alba and Tampa continues to record exceptional results, significantly outpacing 2019 RevPAR by 54.2% during the quarter. Fourth quarter results for this hotel were fueled not only by a 30.8% increase in rate but also an 18% gain in occupancy, a notable performance that highlights the hotel's successful repositioning strategy. Our management team achieved commendable profitability metrics during the fourth quarter by executing revenue management strategies aimed at driving rate and controlling variable costs at our properties.

阿爾巴酒店和坦帕酒店繼續取得優異成績，本季度顯著超過 2019 年可出租客房收入 54.2%。這家酒店第四季度的業績不僅得益於 30.8% 的增長率，還有 18% 的入住率增長，這一顯著表現凸顯了酒店成功的重新定位戰略。我們的管理團隊在第四季度通過執行旨在提高我們物業的利率和控制可變成本的收入管理戰略，實現了可觀的盈利指標。

As a result of these efforts, rooms margin profit expanded 280 basis points over 2019 to 76.5% during the fourth quarter. Meanwhile, hotel EBITDA margins for the fourth quarter 2022 versus 2019 expanded an impressive 780 basis points to 28.8%. For the year, hotel EBITDA margins expanded 270 basis points over 2019 to 28%. As we navigate the post-pandemic operating environment, margin control will continue to be a crucial area of focus for our managers, especially as additional revenue drivers, which were scaled back during the pandemic, are layered into our properties. All in all, we are pleased with our portfolio's progress during the year and are encouraged by the trends we are seeing going forward.

由於這些努力，客房利潤率在第四季度比 2019 年擴大了 280 個基點，達到 76.5%。與此同時，2022 年第四季度的酒店 EBITDA 利潤率與 2019 年相比增長了 780 個基點，達到 28.8%，令人印象深刻。今年，酒店 EBITDA 利潤率比 2019 年擴大了 270 個基點，達到 28%。在我們應對大流行後的運營環境時，利潤控制將繼續成為我們經理關注的一個關鍵領域，尤其是在大流行期間縮減的額外收入驅動因素被分層到我們的資產中時。總而言之，我們對我們的投資組合在這一年中取得的進展感到滿意，並對我們看到的未來趨勢感到鼓舞。

I will now turn the call over to Tony.

我現在將電話轉給托尼。

Thank you, Scott. Reviewing performance for the period ended December 31, 2022. For the fourth quarter, total revenue was approximately $41.3 million, representing an increase of 17.8% over the same quarter in 2021. For the year, total revenue was approximately $166.1 million, representing an increase of 30.1% over the prior year. Comparing current performance to prepandemic levels, total revenue for the fourth quarter represented 93.3% of total revenue for the same period in 2019. And for the year, total revenue represented 89.4% of total revenue for the full year 2019.

謝謝你，斯科特。回顧截至 2022 年 12 月 31 日止期間的業績。第四季度總收入約為 4130 萬美元，比 2021 年同期增長 17.8%。全年總收入約為 1.661 億美元，同比增長比上年增長30.1%。將當前業績與大流行前水平進行比較，第四季度總收入佔 2019 年同期總收入的 93.3%。全年總收入佔 2019 年全年總收入的 89.4%。

Hotel EBITDA for the quarter was approximately $11.9 million representing an increase of 46.8% over the same quarter in 2021. Year-to-date, hotel EBITDA was approximately $46.5 million, representing an increase of 50.4% over full year 2021. Comparing fourth quarter performance to prepandemic levels, hotel EBITDA represented 128.2% of hotel EBITDA for the same quarter 2019.

本季度酒店 EBITDA 約為 1190 萬美元，比 2021 年同期增長 46.8%。年初至今，酒店 EBITDA 約為 4650 萬美元，比 2021 年全年增長 50.4%。比較第四季度業績與大流行前的水平相比，酒店 EBITDA 佔 2019 年同一季度酒店 EBITDA 的 128.2%。

For the full year, hotel EBITDA represented 99% of hotel EBITDA for full year 2019. For the quarter, adjusted FFO was approximately $8.5 million, representing an increase of $9.8 million over the same quarter of 2021. For the year, adjusted FFO was approximately $18.3 million representing an improvement of approximately $23.2 million over full year 2021.

全年，酒店 EBITDA 佔 2019 年全年酒店 EBITDA 的 99%。本季度，調整後的 FFO 約為 850 萬美元，比 2021 年同期增加 980 萬美元。全年，調整後的 FFO 約為1830 萬美元，比 2021 年全年增加約 2320 萬美元。

Comparing fourth quarter performance to prepandemic levels, adjusted FFO represented more than an 8-fold increase in adjusted FFO for the same quarter in 2019. And on a full year basis, adjusted FFO represented 104.3% of adjusted FFO for the full year 2019. Please note that our adjusted FFO excludes charges related to the early extinguishment of debt, gains and losses on derivative instruments, charges related to aborted or abandoned securities offerings, and ESOP and stock compensation expense as well as other items.

將第四季度業績與大流行前水平進行比較，調整後的 FFO 比 2019 年同一季度的調整後 FFO 增加了 8 倍以上。在全年基礎上，調整後的 FFO 佔 2019 年全年調整後 FFO 的 104.3%。請請注意，我們調整後的 FFO 不包括與提前清償債務相關的費用、衍生工具的損益、與中止或放棄的證券發行相關的費用、ESOP 和股票補償費用以及其他項目。

Hotel EBITDA excludes these charges as well as interest expense; interest income; corporate, general and administrative expenses; the current portion of our income tax provision; and other items as well. Please refer to our earnings release for additional detail.

酒店 EBITDA 不包括這些費用以及利息費用；利息收入;公司、一般和行政費用；我們所得稅準備金的當前部分；和其他物品。有關更多詳細信息，請參閱我們的收益發布。

Looking at our balance sheet. As of December 31, 2022, the company had total cash of approximately $27.3 million consisting of unrestricted cash and cash equivalents of approximately $21.9 million as well as approximately $5.4 million, which was reserved for real estate taxes, capital improvements and certain other items.

看看我們的資產負債表。截至 2022 年 12 月 31 日，公司擁有的現金總額約為 2730 萬美元，其中包括約 2190 萬美元的不受限制現金和現金等價物以及約 540 萬美元，這些現金用於房地產稅、資本改善和某些其他項目。

At the end of the quarter, we had principal balances of approximately $324.4 million in outstanding debt at a weighted average interest rate of 5.0%. Approximately 96% of the company's debt carries a fixed interest rate after taking into account the company's interest rate swap agreements. This week, we announced the modification of the existing loan on The Whitehall in Houston with the existing lender. The loan, which has a principal balance of approximately $14.2 million was extended for 5 years until February of 2028 and maintains a floating interest rate of New York Prime Rate plus 1.25% subject to an overall floor rate of 7.5%.

本季度末，我們的未償債務本金餘額約為 3.244 億美元，加權平均利率為 5.0%。考慮到公司的利率互換協議，公司約 96% 的債務採用固定利率。本週，我們宣布與現有貸方一起修改休斯頓白廳的現有貸款。該貸款的本金餘額約為 1,420 萬美元，已延長 5 年至 2028 年 2 月，並維持紐約最優惠利率加 1.25% 的浮動利率，但總體底利率為 7.5%。

In December 2022, we were notified that the forgiveness application related to one of the loans we received under the SBA's payroll protection program had been approved. In January, we were notified that a second forgiveness application had also been approved. In total, we received approximately $4.9 million in principal forgiveness plus the associated accrued interest. A third forgiveness application of approximately $0.3 million is still pending with the small business administration.

2022 年 12 月，我們獲悉，與我們在 SBA 工資保護計劃下收到的一筆貸款相關的寬恕申請已獲批准。 1 月份，我們獲悉第二份寬恕申請也已獲得批准。我們總共收到了大約 490 萬美元的本金減免以及相關的應計利息。第三份約 30 萬美元的寬恕申請仍在等待小企業管理局處理。

As we enter a more normalized operating environment, we anticipate capital expenditures to be more in line with historic norms and estimate capital expenditures will amount to approximately $7.2 million for calendar year 2023. We are resuming guidance with a forecast of anticipated results for the first quarter. Our guidance takes into account market conditions and accounts for current and expected performance within the portfolio.

隨著我們進入更加正常化的運營環境，我們預計資本支出將更符合歷史規範，並估計 2023 日曆年的資本支出將達到約 720 萬美元。我們正在恢復指導，並預測第一季度的預期結果.我們的指引考慮了市場條件並考慮了投資組合中當前和預期的表現。

We are projecting total revenue in the range of $42.3 million to $44.3 million for the first quarter 2023. At the midpoint of this range, this represents a 13% increase over the prior period total revenue. Hotel EBITDA is projected in the range of $11.9 million to $12.5 million. And at the midpoint of the range, this represents a 22.3% increase over the hotel EBITDA for the same quarter in the prior year. And adjusted FFO is projected in the range of $4.1 million to $4.7 million or $0.21 to $0.24 per share. At the midpoint of the range, this represents more than a 200% increase of our adjusted FFO for the same quarter in the prior year.

我們預計 2023 年第一季度的總收入在 4230 萬美元至 4430 萬美元之間。在此範圍的中點，這比上一期總收入增長 13%。酒店 EBITDA 預計在 1190 萬美元至 1250 萬美元之間。在該範圍的中點，這比去年同期的酒店 EBITDA 增長了 22.3%。調整後的 FFO 預計在 410 萬至 470 萬美元或每股 0.21 至 0.24 美元之間。在該範圍的中點，這表示我們調整後的 FFO 比去年同期增加了 200% 以上。

And I will now turn the call over to Dave.

我現在將把電話轉給戴夫。

Thanks, Tony, and good morning, everyone. Our portfolio continued to demonstrate encouraging trends for the fourth quarter, characterized by further improvement in group and business transient demand in our urban markets and sustained strength in leisure demand in our leisure-focused markets. Impressive rate growth for our portfolio, which was especially notable at our coastal leisure hotels contributed to record profitability metrics for the company during the quarter. The portfolio's continued improvement made during the fourth quarter capped off a year of significant progress in its recovery from the pandemic.

謝謝，托尼，大家早上好。我們的投資組合在第四季度繼續呈現出令人鼓舞的趨勢，其特點是我們城市市場的團體和商務臨時需求進一步改善，而我們以休閒為主的市場的休閒需求持續強勁。我們投資組合的增長率令人印象深刻，這在我們的沿海休閒酒店尤為顯著，這為本季度公司創紀錄的盈利指標做出了貢獻。該投資組合在第四季度取得的持續改善為其從大流行中復甦的一年取得了重大進展畫上了句號。

Thus far, this momentum, which highlights the positioning and management of our assets in their respective markets has been carried forward into the first quarter of this year. Overall, 2022 significantly outperformed our expectations. During the year, our management team soundly executed several objectives, which ultimately resulted in a transformative shift in the outlook for the company.

到目前為止，這種突出我們資產在各自市場的定位和管理的勢頭已經延續到今年第一季度。總體而言，2022 年的表現大大超出了我們的預期。在這一年裡，我們的管理團隊穩健地執行了多項目標，最終導致公司前景發生變革性轉變。

The sale of our Louisville and Raleigh assets in the year allowed us to reduce secured mortgage debt and additionally repay an expensive corporate loan while concurrently eliminating the need for expensive near-term CapEx required for life cycle improvements at these 2 hotels.

年內出售我們的路易斯維爾和羅利資產使我們能夠減少有擔保的抵押貸款債務並額外償還昂貴的公司貸款，同時消除了這 2 家酒店生命週期改善所需的昂貴的短期資本支出的需要。

In addition, the loan modification of our Tampa asset provided improved terms and additional cash proceeds for the company. This series of transactions allowed for the complete repayment of the aforementioned corporate loan with the Kemmons Wilson Companies and as a result, the elimination of high interest current payments, onerous loan covenants and the return of a significant interest reserve.

此外，我們坦帕資產的貸款修改為公司提供了更好的條款和額外的現金收益。通過這一系列交易，可以完全償還與 Kemmons Wilson Companies 的上述公司貸款，從而消除了高利息當前付款、繁重的貸款契約並返還了大量利息儲備。

In addition, we believe our strategic approach towards holding properties in southern markets proved successful as these locations experienced outsized performance during the industry's recovery following the pandemic. One of the best examples of this trend is the performance of the Desoto in Savannah, Georgia where 2022's RevPAR gain of 22% over 2019 represented the best year of performance in the property's lengthy history.

此外，我們相信我們在南方市場持有物業的戰略方法被證明是成功的，因為這些地區在大流行後行業復甦期間表現出色。這一趨勢的最好例子之一是佐治亞州薩凡納的 Desoto 的表現，2022 年的 RevPAR 比 2019 年增長了 22%，這是該物業漫長歷史上表現最好的一年。

Meanwhile, revenue growth and strong margins led to record profitability metrics for the second, third and fourth quarters, each outperforming the same periods in 2019. As a result of these efforts, 2022's hotel EBITDA notably surpassed same-store 2019 hotel EBITDA completing a remarkable recovery for our portfolio following the pandemic.

與此同時，收入增長和強勁的利潤率導致第二、第三和第四季度的盈利指標創下歷史新高，均優於 2019 年同期。由於這些努力，2022 年的酒店 EBITDA 顯著超過 2019 年同店酒店 EBITDA，完成了令人矚目的成績大流行後我們投資組合的恢復。

Facilitated by the continued improvement of the company's operating fundamentals, in January, we announced the reinstatement of our quarterly preferred dividends. In addition, we announced that in the future, we intend to reduce the amount of cumulative unpaid preferred dividends through the periodic announcement of special dividends as is warranted by market conditions and the company's profitability.

在公司經營基本面持續改善的推動下，1 月份，我們宣布恢復季度優先股息。此外，我們宣布，未來我們打算根據市場狀況和公司盈利能力，通過定期發布特別股息來減少累計未支付優先股股息的金額。

This announcement demonstrates management's confidence in our financial health and our ability to navigate the changing lodging environment. Looking forward, we believe there is significant upside for our portfolio, especially in the transient business travel and group segments, which are trending positively thus far this year. In fact, transient business travel reservations are projecting tremendous growth for the year, already pacing 145% at the same time last year. Meanwhile, we expect group business to build on last year's improvement with group bookings for this year currently pacing 47% ahead of prior year.

該公告表明管理層對我們的財務健康狀況以及我們駕馭不斷變化的住宿環境的能力充滿信心。展望未來，我們相信我們的投資組合有很大的上升空間，尤其是在今年迄今為止呈積極趨勢的短暫商務旅行和團體旅行領域。事實上，短期商務旅行預訂預計今年將出現巨大增長，去年同期已經增長了 145%。同時，我們預計團體業務將在去年有所改善的基礎上再接再厲，今年的團體預訂量目前比上年增長 47%。

Overall, we are pleased by the progress we are seeing in our operations so far this year, with first quarter RevPAR forecasted to be in the range of 97% to 101% of the first quarter of 2019, a difficult comp for us, which included the Super Bowl in Atlanta. We are closely monitoring macroeconomic data, consumer behavior and corporate travel policies and have not yet seen any pullback in demand, future booking pace or room rates. We remain cautiously optimistic that these encouraging booking trends as well as the tailwinds we've discussed will continue to fuel our growth prospects moving forward.

總體而言，我們對今年迄今為止在運營中取得的進展感到滿意，第一季度 RevPAR 預計將在 2019 年第一季度的 97% 至 101% 之間，這對我們來說是一個艱難的競爭，其中包括亞特蘭大的超級碗。我們正在密切關注宏觀經濟數據、消費者行為和企業差旅政策，尚未發現需求、未來預訂速度或房價出現任何回落。我們仍然謹慎樂觀地認為，這些令人鼓舞的預訂趨勢以及我們討論的有利因素將繼續推動我們的增長前景向前發展。

And with that, everyone, we'll open the call up for questions.

有了這個，大家，我們將打開問題的電話。

(Operator Instructions) Our first question today comes from the line of Alexander Goldfarb from Piper Sandler.

（操作員說明）我們今天的第一個問題來自 Piper Sandler 的 Alexander Goldfarb。

So a few questions. First, obviously, great to see the PPP forgiveness in the quarter. It definitely drove a good chunk of the FFO beat but certainly good to see. Question is, per the release, you guys took out just over $10 million of PPP. You've now been forgiven of about $5 million. There's another, I think, you said $300,000 that you submitted for. What's your expectation for the balance of the PPP loan, call it, roughly $5 million. Are you expected to pay that back? Or you anticipate also being granted forgiveness on that portion?

所以有幾個問題。首先，很明顯，很高興看到本季度的 PPP 寬恕。它肯定推動了 FFO 節拍的很大一部分，但肯定很高興看到。問題是，根據新聞稿，你們拿出了超過 1000 萬美元的購買力平價。你現在已經被免除了大約 500 萬美元。還有一個，我想，你說你提交了 300,000 美元。您對 PPP 貸款餘額的預期是什麼，大約 500 萬美元。你要還錢嗎？還是您希望在那部分也獲得寬恕？

Alex, this is Tony. No, there's no additional forgiveness unfortunately. We submitted one round of forgiveness applications and the total forgiveness will be somewhere around $5 million. We've made payments already on that loan. So we've got it down to between $2 million and $2.5 million left, and we've got the remainder of a 5-year period to repay that. So we'll have -- whatever the balance is, we'll have until sometime in mid -- early to mid-2025 to get that paid.

亞歷克斯，這是托尼。不，不幸的是沒有額外的寬恕。我們提交了一輪寬恕申請，寬恕總額約為 500 萬美元。我們已經支付了那筆貸款。所以我們已經把它降到了剩下的 200 萬到 250 萬美元之間，我們還有 5 年的剩餘時間來償還這筆錢。因此，無論餘額是多少，我們都會在 2025 年初至中期的某個時間之前獲得這筆款項。

And what's the rate on that?

利率是多少？

1%.

1%。

Yes, taxpayer dollars at work. So you're welcome on ...

是的，納稅人的錢在起作用。所以歡迎你...

We got [loan] all day long.

我們整天都得到[貸款]。

Yes. Well, you're welcome as a taxpayer. Okay. so 2025 -- mid-2025 due and it's a 1%. Okay. Great. The second question is...

是的。好吧，作為納稅人，不客氣。好的。所以 2025 年——2025 年年中到期，是 1%。好的。偉大的。第二個問題是...

Alex, just to add to that, there's a monthly payment that's required. It's not a balloon.

亞歷克斯，補充一下，需要按月付款。它不是氣球。

Yes, yes. No, I got it. I got it. The next question is on the preferreds. I think, Scott, last time you and I spoke, I think the accrual balance was $23 million on the preferreds. Not sure if that's still correct or with the resumption of the payment that's come down. But on our cash basis, sort of rough numbers, we have you post dividend, post preferred sort of around $10 million a year of free cash flow, again, after CapEx, after preferreds, which would suggest another 2 years of preferred payments before the common dividend could be once again reconsidered.

是的是的。不，我明白了。我得到了它。下一個問題是關於偏好的。我想，斯科特，上次你和我談話時，我認為優先股的應計餘額為 2300 萬美元。不確定這是否仍然正確或恢復已降低的付款。但在我們的現金基礎上，粗略的數字，我們有你派發股息，派發優先股，每年約 1000 萬美元的自由現金流，同樣，在資本支出之後，在優先股之後，這意味著在可以再次重新考慮共同股息。

Would you sort of -- is that a fair time line to think about? And then separate, is there anything to -- I know you mentioned special dividends to settle up the accrued. But presumably, that would imply some asset sales. And I think most of your hotels are levered, which means probably not that much proceeds. So just sort of curious on one, how you would fund any accelerated repayment. And then two, if my $10 million free cash flow is correct, is about a 2-year time line fair for returning of the common dividend?

你會 - 這是一個值得考慮的公平時間表嗎？然後分開，有什麼——我知道你提到了特別股息來結算應計款項。但據推測，這將意味著一些資產出售。而且我認為你們的大部分酒店都是槓桿化的，這意味著收益可能不會那麼多。所以有點好奇，你將如何為任何加速還款提供資金。其次，如果我的 1000 萬美元自由現金流是正確的，那麼大約 2 年的時間線對於返還普通股息是否公平？

Yes. Alex, it's Dave here. Let me address your second question first. So with respect to the time line, I mean, I can't give you any definitive guidance right now on the frequency or amount or the longevity of this repayment. I think you're probably in the right ballpark. I mean a lot of this -- the repayment just is essentially making double payments on the existing preferred dividend. That will really depend on how the lodging industry progresses; how our profitability is evident; and any other demands for our capital, which includes things like nonrecurring CapEx for relicensing these hotels, mortgage debt refinancing activity, how that will shake out.

是的。亞歷克斯，我是戴夫。我先回答你的第二個問題。所以關於時間表，我的意思是，我現在不能就還款的頻率、金額或期限給你任何明確的指導。我想你可能是在正確的球場。我的意思是很多 - 還款實際上是對現有優先股息進行雙倍支付。這實際上取決於住宿業的發展情況；我們的盈利能力如何明顯；以及對我們資本的任何其他需求，其中包括用於重新許可這些酒店的非經常性資本支出、抵押債務再融資活動，以及將如何擺脫困境。

And to your other -- so to your second question, we do have free cash flow, and it will take time to repay this on a periodic basis as we said on our last call and what we said today is we're going to make special dividends. I just can't tell you how long it's going to take to get accrual paid off. I think the $23 million number at the end of 2022 is the correct number, plus or minus, a very small amount.

對於你的另一個 - 所以對於你的第二個問題，我們確實有自由現金流，並且需要時間定期償還，正如我們在上次電話會議上所說的那樣，我們今天所說的是我們將特別股息。我只是不能告訴你要花多長時間才能還清應計費用。我認為 2022 年底 2300 萬美元的數字是正確的數字，加上或減去一個非常小的數字。

With respect to accelerating the repayment, I mean there are things we can take advantage of, which would include lowering the preferred principal through exchanges, which we did for the last 2 or 3 years. That's really a function of pricing. And then we're always looking for opportunities to raise fresh capital that could accelerate the repayment of that preferred. But what I will tell you is your comment about selling assets, that's not anything we're considering right now to help accelerate the repayment of that preferred dividend.

關於加速還款，我的意思是我們可以利用一些東西，其中包括通過交換降低優先本金，我們在過去 2 或 3 年中一直這樣做。這實際上是定價的一個功能。然後我們一直在尋找機會籌集新資本，以加速優先股的償還。但我要告訴你的是你對出售資產的評論，這不是我們現在正在考慮的幫助加速償還優先股息的任何事情。

Okay. Yes, Dave, that's what I -- you answered that question. And then is the $23 million as of year-end, is that still the balance today? You made the initial preferred payment -- preferred dividend, so is that -- the $23 million is net of that payment or we would have to reduce the $23 million by the preferred?

好的。是的，戴夫，這就是我——你回答了那個問題。然後是年底的 2300 萬美元，今天還是這個餘額嗎？你支付了最初的優先股——優先股股息，那是——2300 萬美元是扣除那筆付款的淨額，否則我們將不得不減少優先股的 2300 萬美元？

Well, as you know, once we stop paying preferred, that accrual just kept growing and growing and growing. Now that we have reinstated the preferred dividends that fixes that accrual. The unpaid accrual is now fixed, and we just have to pay it off. So it's $23 million total and then out of cash flow or through other mechanisms, we'll have to pay that off sequentially through special dividends.

好吧，正如你所知，一旦我們停止支付優先股，應計費用就會不斷增長。現在我們已經恢復了固定應計利潤的優先股息。未支付的應計費用現在是固定的，我們只需要把它還清。所以它總共是 2300 萬美元，然後沒有現金流或通過其他機制，我們將不得不通過特別股息依次支付。

Okay. Okay. Got it. And then I guess the final question is, your comments about not really seeing anything of the recession down in your markets. You talked about strength in urban, group planning, et cetera. Is there just no sign at all throughout your portfolio whether it's individual travel, group -- business travel, group planning, et cetera. Are there any cracks at all and anything by market? Or your sense is, as you hear back from your various hotels from Philly down of Texas and Florida, that sort of there's really no change in what you're seeing on an operational business sense?

好的。好的。知道了。然後我想最後一個問題是，您關於沒有真正看到您的市場出現任何衰退的評論。你談到了城市、團隊規劃等方面的優勢。在您的投資組合中是否完全沒有任何跡象，無論是個人旅行、團體旅行、商務旅行、團體計劃等等。是否有任何裂縫和市場上的任何東西？或者你的感覺是，正如你從德克薩斯州和佛羅里達州費城的各種酒店收到的反饋，你在運營業務方面看到的東西真的沒有變化嗎？

Yes, that's correct. I mean we have very detailed, very lengthy calls every 2 weeks with the DOSs, the GMs, the corporate staff for our management company. And frankly, right now, the answer is no. Additional BT customer bookings, group bookings, rate, it's all there. We're very thankful to see the BT customer and the corporate group layer back into our business mix. And I can just tell you, we don't see it right now. I'm sure it's going to change, but I can't tell you when that will be, but we're not seeing any cracks as you mentioned.

對，那是正確的。我的意思是，我們每 2 週與 DOS、總經理、我們管理公司的公司員工進行非常詳細、非常冗長的通話。坦率地說，現在，答案是否定的。其他 BT 客戶預訂、團體預訂、房價，應有盡有。我們非常高興看到 BT 客戶和企業集團層重新回到我們的業務組合中。我可以告訴你，我們現在看不到。我確定它會改變，但我不能告訴你什麼時候會改變，但我們沒有看到你提到的任何裂縫。

(Operator Instructions) There were no additional questions waiting at this time. So I'd like to pass the conference over to Dave Folsom for any closing remarks. Please go ahead.

（操作員說明）此時沒有其他問題等待。因此，我想將會議轉交給 Dave Folsom，聽取任何閉幕詞。請繼續。

Thank you, operator, and thank you, everyone, for joining us for our quarterly call, and we look forward to another one in a few months. Thank you.

謝謝接線員，也謝謝大家加入我們的季度電話會議，我們期待幾個月後的另一個電話會議。謝謝。

This concludes today's conference call. Thank you all for your participation. You may now disconnect your lines.

今天的電話會議到此結束。謝謝大家的參與。您現在可以斷開線路。