Sotherly Hotels Inc (SOHO) 2023 Q3 法說會逐字稿

Hello, and welcome to the Sotherly Hotels third quarter 2023 earnings call. My name is Alex, and I'll be coordinating the call today. (Operator Instructions)

您好，歡迎參加索瑟利飯店 2023 年第三季財報電話會議。我叫亞歷克斯，今天我將協調通話。 （操作員說明）

I'll now hand over to Mack Sims, Vice President of Operations. Please go ahead.

現在我將把工作交給營運副總裁 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 measures in accordance with Reg G requirements.

謝謝大家，大家早安。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，該公司已根據 Reg G 要求將所有非 GAAP 財務指標與最直接可比較的 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.

本次電話會議期間發表的任何非歷史性聲明都可能構成前瞻性聲明。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一定會實現。

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.

今天的新聞稿以及該公司不時向美國證券交易委員會提交的文件中詳細介紹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。該公司不承擔更新或修改任何前瞻性陳述的義務。

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

因此，我會將電話轉給斯科特。

Thanks, Mac, and good morning, everyone. I'll start off today's call to review of our portfolio's key operating metrics for the quarter. About looking at the third quarter results for the same store portfolio relative to 2019 third quarter RevPAR was up 1.7%, driven by ADR growth of 15%. Third quarter occupancy was down to 2019 by 11.6%, reflecting the significant upside for the portfolio moving forward. Year-to-date, RevPAR performance represents an increase of 1% over the same period in 2019, driven by a 13.9% increase in rate and 11.3% decrease in occupancy.

謝謝，麥克，大家早安。我將在今天的電話會議上開始審查我們的投資組合本季的關鍵營運指標。關於同店組合的第三季業績，相較於 2019 年第三季度，RevPAR 成長了 1.7%，受 ADR 成長 15% 的推動。第三季入住率較 2019 年下降 11.6%，反映出投資組合未來的顯著上升空間。年初至今，每間可出租客房收入較 2019 年同期成長 1%，原因是房價上漲 13.9%，入住率下降 11.3%。

Looking at the third quarter results compared to 2022 RevPAR performance represents an increase of 0.6% over prior year, driven by 1.5% increase in rate and a 0.9% decrease in occupancy. Year-to-date, RevPAR increased 8.3% over the same period in 2022, driven by a 3.5% increase in occupancy and a 4.6% increase in rate.

從第三季的結果來看，與 2022 年相比，RevPAR 表現比去年同期成長了 0.6%，這是由於費率成長 1.5%，入住率下降 0.9%。今年迄今，由於入住率增加 3.5% 和費率成長 4.6%，每間可用客房收入 (RevPAR) 較 2022 年同期成長 8.3%。

Overall, our portfolio's third-quarter top-line results were generally in line with expectations. These results were characterized by further recovery of group and corporate demand, combined with the softening of leisure demand in certain markets. The softening of leisure demand, especially evident for South Florida properties, which underperformed in terms of both occupancy and ADR compared to prior year.

整體而言，我們投資組合第三季的營收業績整體符合預期。這些結果的特徵是團體和企業需求的進一步復甦，以及某些市場休閒需求的疲軟。休閒需求疲軟，尤其是南佛羅裡達州的房地產，其入住率和平均房價均低於去年。

Recall that last year South Florida was still benefiting from the revenge travel demand following the pandemic as well as the reduction of outbound international travel due to COVID testing policies. This year, outbound international travel has grown significantly, whereas inbound international travel has only seen moderate improvement, leading to a net negative in leisure demand for the South Florida market.

回想一下，去年南佛羅裡達州仍然受益於大流行後的報復性旅行需求以及由於新冠檢測政策而導致的出境國際旅行的減少。今年，出境國際旅遊大幅成長，而入境國際旅遊僅略有改善，導致南佛羅裡達市場休閒需求淨負。

While the leisure segment was not as strong as last year. Our hotels in this market continue to shift to a more normalized mix of business with RevPAR growth from our group and corporate transient segments. Meanwhile, our Atlanta hotels, film and entertainment business contracts were heavily impacted during the third quarter by the entertainment industry strike.

雖然休閒領域的表現不如去年強勁。我們在這個市場上的酒店繼續轉向更規範化的業務組合，我們的集團和企業瞬態細分市場的每間客房收入 (RevPAR) 不斷增長。同時，我們的亞特蘭大飯店、電影和娛樂業務合約在第三季受到娛樂業罷工的嚴重影響。

The writers' strike was recently settled, and as of last night, the actor strike was tentatively settled, which should dramatically improve the Georgian Terrace as growth prospects moving forward. Despite these market-related challenges, several of our hotels driven by further improvement of group and business travel in the quarter continued to perform historically well.

編劇罷工最近得到了解決，截至昨晚，演員罷工也暫時得到解決，隨著成長前景的發展，這應該會極大地改善喬治亞露台。儘管存在這些與市場相關的挑戰，但在本季度團體和商務旅行進一步改善的推動下，我們的幾家酒店繼續表現出歷史上的良好表現。

Looking at some highlights across the portfolio. The DeSoto in Savannah continued its excellent performance during the quarter, outpacing both prior year and pre-pandemic levels, fueled by strong group business, which outpaced the comparable period in 2019 by nearly 45%. The property's third quarter RevPAR outperformed prior year by 5.2%, driven by a strong 8.9% increase in occupancy.

看看整個投資組合中的一些亮點。薩凡納的 DeSoto 在本季繼續保持出色的業績，在強勁的集團業務的推動下，其業績超過了去年和疫情前的水平，集團業務比 2019 年同期增長了近 45%。由於入住率強勁成長 8.9%，該飯店第三季的 RevPAR 比去年同期高出 5.2%。

The DeSoto easily outpaced the comparable period in 2019, with RevPAR improving 43.5% fueled by significant rate growth of 23.6%. The property continues to improve its position among its competitive set, gaining 280 basis points in fair share during the quarter.

DeSoto 輕鬆超越 2019 年同期，在 23.6% 的顯著增長率推動下，每間可用房 (RevPAR) 提高了 43.5%。該酒店繼續提高其在競爭中的地位，本季公平份額增加了 280 個基點。

The Hyatt Centric Arlington, fueled by continued recovery in group corporate travel demand at the hotel posted exceptional results for the third quarter. Grew business has rapidly surpassed pre-pandemic levels, outperforming the third quarter of 2019 by 55%.

阿靈頓凱悅中心酒店在團體商務旅行需求持續復甦的推動下，第三季取得了出色的業績。成長的業務迅速超過了疫情前的水平，比 2019 年第三季成長了 55%。

Overall, the property outpaced prior year's RevPAR by nearly 19%, driven by an 11.7% increase in occupancy and a 6.6% increase in rate. Property, 7% in RevPAR versus the comparable period in 2019 demonstrates this hotel is fully recovered following the gradual post-pandemic ramp-up period. The property continues to be a standout among its competitive set, achieving a RevPAR index of over 130% while gaining 550 basis points of share for the quarter.

總體而言，由於入住率增長 11.7%，房價增長 6.6%，該酒店的 RevPAR 增長了近 19%。與 2019 年同期相比，酒店的每間客房收入增長了 7%，這表明這家酒店在經歷了疫情後的逐步恢復期後已完全恢復。該酒店繼續在同類酒店中脫穎而出，實現了超過 130% 的 RevPAR 指數，同時本季的份額增加了 550 個基點。

Hotel Ballast in Wilmington, North Carolina continued to record strong results during the quarter as improved group demand was coupled with continued strength from leisure demand. The property outpaced prior year RevPAR by 8.6%, fueled by a 3.6% increase in occupancy, a 4.8% increase in rate.

由於團體需求的改善以及休閒需求的持續強勁，北卡羅來納州威爾明頓的 Hotel Ballast 在本季度繼續錄得強勁業績。由於入住率成長 3.6%（入住率成長 4.8%），該飯店的 RevPAR 比去年增加了 8.6%。

The property achieved strong results versus competitive set gaining 250 basis points of share during the quarter. And lastly, Hotel Alba in Tampa, fueled by a well-balanced mix of business, returned excellent results during the quarter the hotel's RevPAR surpassed prior year by 11.6%, fueled by 3.7% increase in occupancy and a 7.7% increase in rates. The Tampa market continues to be one of the top hotel markets in the country. And this hotel is a standout performer among its competitive set, achieving a RevPAR index of 116.5% during the quarter.

該酒店取得了強勁的業績，而競爭對手在本季度獲得了 250 個基點的份額。最後，坦帕的阿爾巴酒店(Hotel Alba) 在均衡的業務組合的推動下，在入住率增長3.7% 和房價增長7.7% 的推動下，本季度酒店的RevPAR 比去年同期增長了11.6%，取得了優異的業績。坦帕市場仍然是該國最大的酒店市場之一。這家飯店在同類飯店中表現出色，本季的 RevPAR 指數達到 116.5%。

I will now turn the call over to Thank you, Scott.

現在我將把電話轉給謝謝你，史考特。

Thank you, Scott.. Reviewing performance for the period ended September 30, 2023. For the quarter, total revenue was $39.2 million, representing a decrease of just 0.1% over the same quarter in the prior year. Year to date, total revenue was approximately $131.7 million, representing an increase of 5.6% over the same period last year.

謝謝 Scott。年初至今，總營收約1.317億美元，較去年同期成長5.6%。

Hotel EBITDA for the quarter was approximately $7.6 million, representing a decrease of 23% from the same quarter of last year. Year-to-date, hotel EBITDA was approximately $34.5 billion, representing a decrease of just 0.2% from the same period in 2022.

該季度飯店 EBITDA 約 760 萬美元，較去年同季下降 23%。年初至今，飯店 EBITDA 約 345 億美元，較 2022 年同期僅下降 0.2%。

For the quarter, adjusted FFO was approximately $88,000, representing a decrease of approximately $2.3 million from the same quarter a year ago. Year-to-date, adjusted FFO was approximately $11.8 million, representing an improvement of $1.9 million over the same period last year.

本季調整後的 FFO 約為 88,000 美元，比去年同期減少約 230 萬美元。年初至今，調整後的 FFO 約為 1,180 萬美元，比去年同期增加了 190 萬美元。

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. Aesop and stock compensation expense as well as other items. 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.

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、與中止或放棄的證券發行相關的衍生工具費用的損益。伊索和股票補償費用以及其他項目。飯店 EBITDA 不包括這些費用以及利息支出、利息收入、公司一般費用和管理費用。我們所得稅撥備的當前部分和其他項目也是如此。請參閱我們的收益發布以了解更多詳細資訊。

Looking at our balance sheet. As of September 30, 2023, the company had total cash of approximately $29.4 million, consisting of unrestricted cash and cash equivalents of approximately $19.2 million, as well as approximately $10.2 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2023年9月30日，該公司擁有現金總額約2,940萬美元，其中包括約1,920萬美元的非限制性現金和現金等價物，以及約1,020萬美元，用於房地產稅、資本改善和某些其他專案.

At the end of the quarter, we had principal balances of approximately $320.8 million and outstanding debt at a weighted average interest rate of 5.41%. Approximately 83.5% of the company's debt carries a fixed rate of interest after taking into account the company's interest rate swap agreements.

截至本季末，我們的本金餘額約為 3.208 億美元，未償債務的加權平均利率為 5.41%。考慮到公司的利率掉期協議後，公司約83.5%的債務採用固定利率。

As we enter a more normalized operating environment, we anticipate capital expenditures to be more in line with historical norms and estimate capital expenditure amounts to approximately $7.6 million for calendar year 2023.

隨著我們進入更規範化的營運環境，我們預計資本支出將更加符合歷史標準，並估計 2023 年的資本支出約為 760 萬美元。

We're providing guidance for with a forecast of anticipated results for the fourth quarter. Our guidance considers market conditions and accounts for current and expected performance within the portfolio, we're projecting total revenue in the range of $40.5 million to $42 million for the fourth quarter.

我們正在為第四季度的預期結果提供指導和預測。我們的指導考慮了市場狀況並考慮了投資組合中當前和預期的業績，我們預計第四季度的總收入將在 4,050 萬美元至 4,200 萬美元之間。

Hotel EBITDA is projected in the range of $9.3 to $9.6 million and the year-over-year decrease in hotel EBITDA, largely due to a benefit received last year related to a recovery of a theft loss of $975,000, as well as an increase in the current year for insurance costs related to the renewal of our property casualty policies and that amounts to about $590,000. Adjusted FFO is projected in the range of $1.2 to $1.6 million or six to $0.08 per share. And I will now turn the call over to David.

酒店 EBITDA 預計在 9.3 至 960 萬美元之間，酒店 EBITDA 同比下降，主要是由於去年收到的與追回 975,000 美元盜竊損失相關的收益，以及酒店 EBITDA 的增加今年與續簽財產傷亡保單相關的保險費用約為59 萬美元。調整後的 FFO 預計為每股 120 至 160 萬美元，即 6 至 0.08 美元。我現在將把電話轉給大衛。

Thank you, Anthony, and good morning, everyone. Overall, the lodging industry's recovery in demand, which has been characterized by significant increases in ADR flattened during the third quarter. Changes in lodging demand have been a market by market phenomenon, leading to mixed results for our portfolio in the quarter.

謝謝你，安東尼，大家早安。整體而言，以平均房價大幅成長為特徵的住宿業需求復甦在第三季趨於平緩。住宿需求的變化是逐個市場的現象，導致本季我們的投資組合結果好壞參半。

On the one hand, several of our key properties performed historically well from a rate and RevPAR standpoint and maintain excellent prospects moving forward. In Tampa, Savannah and Wilmington continued strength leisure demand, along with stock, strong group business and business travel pickup resulted in notable year-over-year gains.

一方面，從房價和每間可售房收入的角度來看，我們的幾個關鍵物業在歷史上表現良好，並且保持著良好的未來前景。在坦帕、薩凡納和威爾明頓，休閒需求持續強勁，加上庫存、團體商務和商務旅行的強勁增長，帶來了顯著的同比增長。

Meanwhile, market-specific factors stalled the recovery of three of our largest revenue contributing assets leading to results at those properties falling short of expectations during the quarter, despite some market related headwinds, we believe there's ample opportunity for occupancy growth at our hotels.

同時，市場特定因素阻礙了我們三個最大的收入貢獻資產的復甦，導致這些酒店在本季度的業績未達到預期，儘管存在一些與市場相關的阻力，但我們相信我們的酒店入住率增長有充足的機會。

As our portfolio's occupancy was still to 670 basis points below 2019 levels during the third quarter. Specifically looking at the slow to recover Philadelphia Airport submarket, our competitive sets occupancy was still 500 basis points below 2019 levels during the quarter. A stronger citywide event calendar for Philadelphia in 2024, combined with continued growth in business travel should create compression in the market and provide a significant boost in demand at our hotel.

由於第三季我們投資組合的入住率仍比 2019 年水準低 670 個基點。特別是考慮到費城機場子市場復甦緩慢，本季我們的競爭性機位入住率仍比 2019 年水準低 500 個基點。 2024 年費城的全市活動日曆更加豐富，加上商務旅行的持續成長，應該會壓縮市場，並顯著增加我們飯店的需求。

Meanwhile, the Georgian Terrace, whose performance was dampened in the quarter by union strikes in the entertainment industry is gaining traction and capturing new base business, which has diversified its mix of business and boost occupancy going forward. The recent settlement of both the writers and actors strikes should provide a much-needed demand boost for this hotel's near future.

同時，Georgian Terrace 在本季度的業績因娛樂業工會罷工而受到影響，但它正在獲得吸引力並獲得新的基地業務，這使其業務組合更加多元化，並提高了未來的入住率。最近作家和演員罷工的解決應該會為這家酒店的不久的將來帶來急需的需求增長。

In addition, weekend business at our urban market hotels bolstered by professional and college sports concerts and other cultural events starting to normalize to pre-pandemic levels.

此外，在專業和大學體育音樂會和其他文化活動的推動下，我們城市市場酒店的周末業務開始正常化到大流行前的水平。

Finally, while our Arlington Virginia hotels experienced tremendous improvement over the past year, we believe the occupancy gap of 630 basis points to 2019 during the quarter positions this hotel for outsized growth in the near term as business travel continues to improve. The continued recovery of group business was a key factor in the overall year-over-year growth for our portfolio during the quarter.

最後，雖然我們位於維吉尼亞州阿靈頓的飯店在過去一年中經歷了巨大的改善，但我們相信，隨著商務旅行的持續改善，本季與2019 年相比，入住率差距達630 個基點，這家酒店將在短期內實現大幅增長。集團業務的持續復甦是本季我們投資組合整體年成長的關鍵因素。

During the quarter, group business gained 3% over the same quarter a year ago. Group business at the Hyatt Centric in Arlington and the DeSoto in Savannah, Georgia is tracking significantly above pre-pandemic levels. We see opportunities for continued growth of this segment moving forward, especially in Houston, Atlanta and Atlanta. To slow to recover hotels and have historically had a large group component. We expect the recent improvement of return to office rates in these markets to positively impact demand for these hotels.

本季度，集團業務較去年同期成長3%。阿靈頓 Hyatt Centric 和喬治亞州薩凡納 DeSoto 的集團業務顯著高於疫情前的水平。我們看到該細分市場未來有持續成長的機會，特別是在休士頓、亞特蘭大和亞特蘭大。酒店恢復緩慢，歷史上曾有大型集團的組成部分。我們預期這些市場近期辦公報酬率的改善將對這些飯店的需求產生正面影響。

Looking at our portfolio as group revenue picture, strong rates have driven our portfolio's total group revenue to near pre-pandemic levels. Trailing 2019 third quarter group revenue by approximately 10%. However, the total number of group room nights trailed 2019 by nearly 26% during the third quarter, demonstrating there's still considerable runway for growth in this segment.

從我們的投資組合的集團收入情況來看，強勁的利率已將我們投資組合的集團總收入推至接近疫情前的水平。集團營收落後 2019 年第三季約 10%。然而，第三季團體間夜總數較 2019 年下降了近 26%，顯示該細分市場仍有相當大的成長空間。

Previously, we announced the reinstatement of quarterly dividend payments for our preferred shareholders. During the third quarter, we paid out a catch-up payment for our three series of preferred stock, decreasing the amount owed on the unpaid cumulative preferred dividend by approximately $1.9 million, further reducing the unpaid preferred. The unpaid dividend represents a key priority for the company.

此前，我們宣布恢復優先股股東的季度股息支付。第三季度，我們為三系列優先股支付了補繳款項，使未支付的累積優先股股息減少了約 190 萬美元，進一步減少了未支付的優先股。未支付的股息是公司的首要任務。

And so far this year, we have successfully refinanced the mortgage loans for our hotels in Houston and Laurel with favorable terms. As lending standards continue to tighten we are focused on upcoming loan maturities for our portfolio. We are diligently working on restructuring options with the lender for our Doubletree by Hilton Hotel in Philadelphia who accommodated our request for a short-term extension on the loan, while loan terms have undoubtedly become less favorable for borrowers. So we expect a resolution on this mortgage loan in the near future.

今年到目前為止，我們已成功以優惠條件為休士頓和勞雷爾酒店的抵押貸款進行了再融資。隨著貸款標準繼續收緊，我們將重點關注投資組合即將到期的貸款。我們正在努力與費城希爾頓逸林酒店的貸款人尋求重組方案，他們滿足了我們短期延長貸款的要求，而貸款條件無疑對借款人變得不那麼有利。因此，我們預計該抵押貸款將在不久的將來得到解決。

Looking ahead, the loan maturity schedule for the portfolio is spread evenly over the next several years with only one additional loan maturity coming in 2024 despite a turbulent macro environment during the year, the lodging industry is demonstrated continued resilience with additional growth anticipated for the near term.

展望未來，儘管今年宏觀環境動盪，但該投資組合的貸款到期時間表在未來幾年內均勻分佈，僅在2024 年將有一個額外的貸款到期日，住宿業表現出持續的彈性，預計近期將進一步成長。

Looking ahead, we believe industry growth will be fueled by the corporate and group segments with corporate travel, providing the biggest opportunity for upside in 2024. Improvement in the corporate travel segment is predicated on return to office rates, which continue to trend positively, an encouraging sign for the industry.

展望未來，我們認為企業和團體部門的商務旅行將推動行業成長，為 2024 年提供最大的上漲機會。鼓舞的跡象。

Looking specifically at our portfolio, 2020 three's group revenues pacing 13% ahead of last year, while the business transient segment is pacing 6% ahead of last year. Overall, we are encouraged by the progress we are seeing in our operations.

具體來看我們的投資組合，2020 年三人組營收比去年成長 13%，而業務瞬態業務部門營收比去年成長 6%。總體而言，我們對營運中所取得的進展感到鼓舞。

With Q4 RevPAR forecasted to range between 103% and 100% of fourth quarter last year. We remain cautiously optimistic that normalizing market conditions and encouraging booking trends will continue to fuel our portfolio's growth prospects moving forward.

第四季的 RevPAR 預計為去年第四季的 103% 至 100%。我們仍然謹慎樂觀地認為，市場狀況正常化和令人鼓舞的預訂趨勢將繼續推動我們投資組合的成長前景。

And with that, operator, we can open the call up to questions.

接線員，這樣我們就可以開始電話提問了。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Alexander Goldfarb, Piper Sandler.

亞歷山大·戈德法布，派珀·桑德勒。

Morning David. Just so few questions the ramp up of the staffing levels. Are you back to now full staffing. And also I'm assuming that the need to ramp the staffing up is because at some point, presumably where we are in order to increase the product, the profitability of the hotels with a people checking in they expect a certain level of staffing. So I'm assuming that's why you had to raise it, even though it seemed to pressure margins is that a fair way to think about it?

早安，大衛。很少有人對人員配備水準的提升提出質疑。你們現在恢復到滿員狀態了嗎？而且我還假設需要增加人員配備，因為在某些時候，大概是為了增加產品、酒店的盈利能力以及登記入住的人員，他們期望一定水平的人員配備。所以我假設這就是為什麼你必須提高它，儘管它似乎對利潤率造成壓力，這是一個公平的思考方式嗎？

Yes, that is exactly the right way to think about it. We're not completely staffed to 2019 levels yet. And as you saw maybe some of the of flattening out of the third quarter. We have continued to step up and provide additional services and amenities while we normally provide it, it did have a drag on margins.

是的，這正是正確的思考方式。我們的人員配備尚未達到 2019 年的水準。正如你所看到的，第三季可能會出現一些平緩。我們繼續加強並提供額外的服務和便利設施，而我們通常會提供這些服務和便利設施，但這確實拖累了利潤。

Yes, Alex, I'll just add that food and beverage is the key component there. And we've really ramped up our food and beverage offerings to reopen those outlets to more normalized hours, which was not the case last year. At food beverage, while provides a revenue boost, it's a become a less profitable piece of revenue for the hotels. So that does have a drag on margins.

是的，亞歷克斯，我只想補充一點，食物和飲料是那裡的關鍵組成部分。我們確實增加了食品和飲料供應，以更正常的時間重新開放這些商店，而去年的情況並非如此。在餐飲方面，雖然可以增加收入，但對飯店來說卻成為利潤較低的收入。所以這確實會拖累利潤率。

Right. But obviously, people if they're going to go travel that they expect those amenities. What's going on in Houston? You talked about the south border weakness, you talked about a year ago, Arlington, what's going on in Houston that the Whitehall continues to sort of be a lagger?

正確的。但顯然，如果人們要去旅行，他們會期望獲得這些便利設施。休斯頓發生了什麼事？你談到了南部邊境的弱點，你一年前談到過，阿靈頓，休士頓發生了什麼，白廳仍然有點落後？

Well, look, some of the markets not as healthy as it has been in the past, a lot of the CVB and entertainment and events just have not returned yet. At the same time, we've had some assets in the comp set around the hotel in the metro market that were either closed or under renovation. Those are back and as some of the demand has returned to the market, a lot of that has initially gone to flag hotels and we're an independent asset.

好吧，看，有些市場不像過去那麼健康，很多 CVB、娛樂和活動還沒有回歸。同時，我們在地鐵市場的酒店周圍的競爭集中擁有一些資產，這些資產要么已關閉，要么正在裝修。這些又回來了，隨著部分需求返回市場，其中許多最初流向了旗艦酒店，而我們是一項獨立資產。

But as soon as market stabilizes, I mean, this hotel did very well prior to the pandemic. And I don't see why that's not going to return, it's just slower to happen than by comparison, what we've seen in Arlington, Virginia and the Metro DC market.

但一旦市場穩定下來，我的意思是，這家酒店在大流行之前就表現得很好。我不明白為什麼這種情況不會再出現，只是比我們在維吉尼亞州阿靈頓和華盛頓特區市場看到的情況慢得多。

Yes, going back to the debt and appreciate that you guys only have one loan in '24. But we do see that the Philly hotels extended to year end this year before resolution. But if we take your average, your interest rates where they are sort of in the mid fives, I think you said it and take your total debt balance and adjusted for today's interest rates, that's like an extra $6 million, which would basically that does, that's a big number given your earnings.

是的，回到債務並感謝你們在 24 年只有一筆貸款。但我們確實看到費城酒店在解決之前將時間延長到今年年底。但如果我們採用你的平均利率，你的利率大約在五歲左右，我認為你說過，並考慮你的總債務餘額並根據今天的利率進行調整，這相當於額外的600 萬美元，這基本上就可以了，考慮到你的收入，這是一個很大的數字。

So how are you guys thinking about balancing reducing your debt load versus the rising rates? It just seems to be tough math. If we think about it, obviously, you guys have continued to address this, but just wanted to hear how you're thinking about dealing with rising rates while the portfolio is still trying to work to get back to full -- running ?

那麼，你們如何考慮在減少債務負擔與不斷上升的利率之間取得平衡呢？這似乎是一個很難的數學。如果我們考慮一下，顯然，你們一直在繼續解決這個問題，但只是想聽聽你們在投資組合仍在努力恢復全面運行的情況下如何考慮應對利率上升？

Well, as you mentioned, we get the Philadelphia loan worked out here this year. And then we're really only looking at one issue next year. I mean, I think if you look at our total leverage level you've seen over the past couple of years, we have we've adjusted down across both the preferred and the funded debt levels.

嗯，正如你所提到的，我們今年在這裡解決了費城貸款問題。然後我們明年實際上只專注於一個問題。我的意思是，我認為如果你看看過去幾年我們看到的總槓桿水平，你會發現我們已經下調了優先債務和融資債務水平。

I mean, we have to take each one of these on a property by property basis. And I mean our thesis would be Alex, that going forward, we're going to see some interest rate reductions next year, which we think will help lift the industry and the debt issues.

我的意思是，我們必須逐一對待這些財產。我的意思是，我們的論點是亞歷克斯，展望未來，明年我們將看到一些利率下調，我們認為這將有助於提升產業和債務問題。

The other thing to remember in my view is what you said yesterday on your Bloomberg interview is lenders are not eager to create problems right now, and that actually works in the favor of the borrower to extend out mortgages and deal with some of these interest rate increases in the longer term.

在我看來，另一件事要記住的是，您昨天在彭博社採訪中表示，貸方現在並不急於製造問題，這實際上有利於借款人延長抵押貸款並處理其中的一些利率從長遠來看會增加。

You want to add, Anthony.

你想補充一下，安東尼。

I was just I think what I would add is that I think our expectation is as mortgages become due in '25 and '26 to '27, we're not going to be looking at the same interest rate environment. And if we are, we're not going to be back down into inflation at 1.5% to 2%.

我只是想補充一點，我們的預期是，隨著抵押貸款在 25 年和 26 至 27 年到期，我們不會看到相同的利率環境。如果是這樣，我們就不會再陷入 1.5% 至 2% 的通膨水準。

And so I think there's going to be that as these mortgages mature. And as our average weighted average interest rate and our debt rises, we're going to see some amount of corresponding lift in ADR and hotel EBITDA to accommodate to afford that.

所以我認為隨著這些抵押貸款的成熟，這種情況將會出現。隨著我們的平均加權平均利率和債務的增加，我們將看到美國存託憑證和酒店 EBITDA 相應增加，以適應這種情況。

Okay. You answered my next question, which was going to be on bank willingness to work with you guys, but you obviously answer that because clearly the banks don't want to add to their CRE portfolio. So it sounds like they're doing what their can do, adjust the balance and rate. So that way it's still a loan outstanding rather than you're taking possession, that tends to be the MO right, or otherwise -- .

好的。你回答了我的下一個問題，即銀行是否願意與你們合作，但你顯然回答了這個問題，因為銀行顯然不想增加他們的商業房地產投資組合。所以聽起來他們正在盡其所能，調整餘額和費率。這樣一來，它仍然是一筆未償還的貸款，而不是你正在佔有，這往往是 MO 的權利，否則 - 。

You're correct. That's correct.

你是對的。這是正確的。

Okay. Listen, thanks a lot.

好的。聽著，非常感謝。

Thanks, Alex.

謝謝，亞歷克斯。

Jeff Hassannia, HD Enterprice.

Jeff Hassannia，HD Enterprise。

Good morning and thank you for the transparency on your call. I sure appreciate it. I have two questions. First question is dealing with the 11% drop in occupancy from the 2019 numbers, and you provided some rationale for that or what's occurred in general in the marketplace.

早安，感謝您在通話中的透明度。我當然很感激。我有兩個問題。第一個問題是處理 2019 年入住率下降 11% 的問題，您對此或市場上普遍發生的情況提供了一些理由。

And then you also described what you think in the future in terms of market trends are going to help that recover back to maybe that 2019 number. But so the first question around that is beyond just, hoping the market conditions prevail. What are you doing proactively? As a company from a competitive landscape perspective, help make sure that happens beyond just hoping the market conditions approve. That's the first question.

然後您也描述了您對未來市場趨勢的看法，這將有助於恢復到 2019 年的數字。但因此，圍繞這個問題的第一個問題不僅僅是希望市場狀況佔上風。你主動做什麼？作為一家從競爭格局角度來看的公司，我們要協助確保實現這一目標，而不僅僅是希望市場條件得到批准。這是第一個問題。

The second question I'll just ask now as well. If you had to look forward and projects some nominal operating conditions, you sort of a best case kind of forecast or nominal case forecast going forward, when would you anticipate a potential return of dividends to common shareholders? That's the second question.

第二個問題我現在也想問。如果您必須展望未來並預測一些名目經營狀況，您可以對未來進行最佳情況預測或名目情況預測，您預計何時會向普通股股東發放股利？這是第二個問題。

Well, the first question on the occupancy, I think it's pretty consistent across our industry. One of the things we need to do at the property levels to make sure that we're competing within our comp sets with the correct share capture. And that's something we challenge our management company to do.

嗯，關於入住率的第一個問題，我認為在我們行業中這是相當一致的。我們需要在財產層面做的事情之一，以確保我們在我們的競爭集中以正確的份額捕獲進行競爭。這就是我們要求我們的管理公司去做的事情。

And that's probably the nearest piece of low-hanging fruit trying to capture some additional occupancy. As you saw or heard in our prepared remarks, we've all talked about the upside in occupancy and some of that has to do with the recovery of group and business travel into the hotels, and that will lift group and lift revenue. It's not singular to suddenly hotels this phenomenon, with occupancy rate has been the driver of revenue over the recovery.

這可能是試圖獲得更多入住率的最近的一個容易實現的目標。正如您在我們準備好的演講中看到或聽到的那樣，我們都談到了入住率的上升，其中一些與團體和商務旅行進入酒店的恢復有關，這將提升團體和收入。飯店突然出現這種現象並不罕見，入住率一直是收入復甦的驅動力。

And I think to your second question, which was when are we going to pay common dividends? As you're probably aware, we can't pay common dividends until we are caught up on any cumulative outstanding preferred dividends and we are trying to pay those back.

我想問你的第二個問題，我們什麼時候支付共同股息？正如您可能知道的，我們無法支付普通股息，直到我們趕上任何累積的未償還優先股股息，並且我們正在努力償還這些股息。

I can't tell you the pace or frequency or timeline to do that, but our management team is we're significant shareholders and we want a common dividend as bad as everybody else. I just I can't give you the time line of when that might happen.

我無法告訴你這樣做的速度、頻率或時間表，但我們的管理團隊認為，我們是重要股東，我們和其他人一樣渴望共同股息。我只是無法告訴你這可能發生的時間。

Alright. I appreciate it. Thank you for the color.

好吧。我很感激。謝謝你的顏色。

Thank you.

謝謝。

Thank you. At this time, we currently have no further questions. So I'll hand back to COO, David Folsom for any further remarks.

謝謝。目前，我們沒有進一步的問題。因此，我將向營運長 David Folsom 詢問進一步的評論。

No. Thanks very much, operator, and thanks for everyone listening to our call and circle back next quarter. Thank you.

不。謝謝。

Thank you for joining today's call. You may now disconnect your lines.

感謝您參加今天的電話會議。現在您可以斷開線路。