Sotherly Hotels Inc (SOHO) 2024 Q3 法說會逐字稿

Good morning, all, and thank you for joining us at the Sotherly Hotels Q3 2024 conference call and webcast. My name is Carly and I'll be coordinating your call today. (Operator Instructions)

大家早安，謝謝您參加 Sotherly Hotels 2024 年第三季電話會議和網路廣播。我叫卡莉，今天我將負責協調您的通話。（操作員指令）

I'd now like to hand over to your host Mack Sims, Vice President of Operations.

現在我想將麥克風交給主持人、營運副總裁 Mack Sims。

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.

謝謝大家，早安。如果您沒有收到收益報告的副本，您可以透過我們的網站 sotherlyhotels.com 存取。

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. 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 obtained.

在新聞稿中，該公司已根據 Reg G 的要求將所有非 GAAP 財務指標與最直接可比較的 GAAP 指標進行協調。本次電話會議中所做的任何非歷史性的陳述均可能構成前瞻性陳述。儘管我們相信任何前瞻性陳述中反映的預期都是基於合理的假設，但我們不能保證這些預期將會實現。

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.

可能導致實際結果與前瞻性陳述所表達或暗示的結果存在重大差異的因素和風險在今天的新聞稿中以及公司不時向美國證券交易委員會提交的文件中詳細說明。該公司不承擔更新或修改任何前瞻性陳述的責任。

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

說完這些，我會把電話轉給史考特。

Thanks, Mack. Good morning, everyone. I'll start off today's call with a review of our portfolio's key operating metrics for the third quarter. Looking at the third-quarter results for the composite portfolio compared to 2023, RevPAR increased 4.1%, driven by a 7.8% increase in occupancy and a 3.4% decrease in ADR.

謝謝，麥克。大家早安。在今天的電話會議上，我將首先回顧我們投資組合第三季的關鍵營運指標。與 2023 年相比，綜合飯店組合第三季的業績顯示，RevPAR 成長了 4.1%，這得益於入住率成長了 7.8%，而 ADR 下降了 3.4%。

Looking at the third-quarter results for the composite portfolio relative to 2019, RevPAR increased 6.4%, driven by ADR growth of 10.9%, while occupancy was down 3.6%. Year-to-date RevPAR performance represents an increase of 4.6% over the same period in 2023, driven by a 6.9% increase in occupancy and a 2.2% decrease in rate. Moving at the year-to-date results for the composite portfolio relative to 2019, RevPAR was up 5.3%, driven by ADR growth of 10.6% and occupancy decline of 4.9%.

與 2019 年相比，綜合飯店組合第三季的業績顯示，受平均房價成長 10.9% 的推動，RevPAR 成長了 6.4%，而入住率則下降了 3.6%。年初至今的 RevPAR 表現較 2023 年同期成長 4.6%，這得益於入住率成長 6.9% 和房價下降 2.2%。與 2019 年相比，綜合投資組合的年初至今業績顯示，RevPAR 上漲 5.3%，主要得益於 ADR 上漲 10.6% 以及入住率下降 4.9%。

Overall, our portfolio's third-quarter results driven by strong occupancy growth were in line with our expectations. Our portfolio's continued occupancy growth, highlighted by our slower to recover urban markets, is an encouraging sign that lodging fundamentals for our portfolio has stabilized. The quarter's notable occupancy gains were partially offset by a 3% decline in ADR as leisure travelers demonstrated price sensitivity due to signs of slowing economic growth.

整體而言，受強勁入住率成長推動，我們投資組合的第三季業績符合我們的預期。我們的投資組合的入住率持續成長，尤其是在城市市場復甦較慢的情況下，這是一個令人鼓舞的跡象，表明我們的投資組合的住宿基本面已經穩定下來。由於經濟成長放緩的跡象，休閒旅客表現出價格敏感性，導致本季入住率顯著增長，但平均房價下降 3% 部分抵消了這一增長。

Two major storms occurred during the third quarter, affecting our operations in Florida and Georgia. Hurricane Debby, which occurred in early August, caused no significant damage to our hotels, but moderately impacted our operations in Tampa, Savannah, and Jacksonville. The more impactful storm during the third quarter, Hurricane Helene which occurred during the last week of September, caused physical damage to our hotel, our Tampa asset as well as substantial operational impact in Tampa, Jacksonville and Savannah. The bulk of Hurricane Helen's financial impact on our Tampa asset will occur during the fourth quarter. I will detail this impact as well as the recovery process later in my remarks.

第三季發生了兩次重大風暴，影響了我們在佛羅裡達州和喬治亞州的業務。8 月初發生的颶風黛比沒有對我們的酒店造成重大損失，但對我們在坦帕、薩凡納和傑克遜維爾的業務產生了中等影響。第三季影響更大的風暴是 9 月最後一周發生的颶風海倫，它對我們的酒店和坦帕資產造成了物理損壞，並對坦帕、傑克遜維爾和薩凡納的運營造成了重大影響。颶風海倫對我們坦帕資產的大部分財務影響將發生在第四季度。我將在後面的發言中詳細介紹這項影響以及恢復過程。

Looking at some highlights across the portfolio. Despite the hurricane-related impact during the third quarter, Hotel Alba and Tampa posted commendable results, growing RevPAR by 13.6%, fueled by a 14.5% occupancy gain over prior year. Hotel Alba continued its well-balanced approach during the third quarter with a mix of group, which grew by an impressive 54% year-over-year, along with growth from business travel and high-rated contract.

看看整個投資組合的一些亮點。儘管第三季受到颶風影響，阿爾巴酒店和坦帕酒店仍取得了可喜的業績，平均每間可用客房收入增長 13.6%，入住率較上年同期增長 14.5%。第三季度，Hotel Alba 繼續採取均衡發展策略，集團業務組合年增 54%，同時商務旅行和高評級合約也實現成長。

Driven by a 19.4% increase in occupancy share, Hotel Alba easily outperformed its competitive set during the quarter, growing its RevPAR index by 18.4%. As noted, the improved performance during the first half of the year at our urban locations continued during the third quarter. Our DoubleTree Hotel in Philadelphia grew RevPAR by 11% during the quarter, driven by a 15.7% gain in occupancy. The hotel's strong occupancy growth driven by increased business travel and a more robust citywide calendar led to a 220 basis point RevPAR share gain during the third quarter.

受入住率成長 19.4% 的推動，Hotel Alba 在本季輕鬆超越其競爭對手，RevPAR 指數成長了 18.4%。如上所述，我們城市門市上半年業績的改善在第三季得以延續。我們位於費城的逸林酒店本季的 RevPAR 成長了 11%，得益於入住率成長了 15.7%。受商務旅行增加及全市日程安排更加繁忙的推動，酒店入住率強勁增長，導致第三季 RevPAR 份額增長了 220 個基點。

The Whitehall in Houston built on a strong second quarter results, growing occupancy by 60.4%, resulting in a 51.9% growth in RevPAR over the prior year. The Whitehall's occupancy improvement was predominantly driven by growth in the transient business segment as well as improved citywide demand, an encouraging sign for the property's continued growth prospects. The Whitehall easily outperformed the competitive set during the quarter, improving its RevPAR share index by nearly 42%, driven by a 47.3% increase in occupancy share.

休士頓的 Whitehall 飯店第二季業績表現強勁，入住率成長了 60.4%，每間可用客房營收 (RevPAR) 較上年同期成長了 51.9%。白廳飯店入住率的提高主要得益於臨時商務部門的成長以及全市需求的改善，這對該物業的持續成長前景來說是一個令人鼓舞的訊號。本季度，Whitehall 飯店輕鬆超越競爭對手，其 RevPAR 份額指數提高了近 42%，這得益於入住率份額增加了 47.3%。

The Hyatt Centric in Arlington continues to perform at a high level, growing RevPAR by 3.7% and outperforming budgeted expectations despite a slight rate decline during the quarter. The hotel achieved a strong 4.2% occupancy gain, drawing business from a number of diverse demand drivers in the market, especially group and transient business travelers.

阿靈頓的凱悅尚萃酒店 (Hyatt Centric) 繼續保持高水準表現，儘管本季度房價略有下降，但每間可用客房收入 (RevPAR) 增長了 3.7%，並且超出了預算預期。該飯店的入住率強勁成長4.2％，吸引了市場上多種不同的需求驅動因素，尤其是團體和臨時商務旅客。

Looking at profitability metrics for the portfolio. Hotel EBITDA margins have stabilized with third quarter hotel EBITDA margin improving by 55 basis points over prior year despite the moderate decline in rate for the quarter. The improvement in occupancy at our hotels in Houston, Philadelphia and Atlanta balance out the portfolio as rates declined, driving down the portfolio's average cost per occupied room, while allowing for additional high-margin non-room revenue. Going forward, we expect normalized staffing and amenity levels along with stabilized wage costs, which are positively impacted by a decline in contract labor to result in relatively stable margins.

查看投資組合的獲利指標。飯店 EBITDA 利潤率已趨於穩定，第三季飯店 EBITDA 利潤率較上年同期提高 55 個基點，儘管本季利潤率略有下降。由於休士頓、費城和亞特蘭大飯店的入住率提高，房價下降，投資組合的平衡性得到了降低，從而降低了投資組合的每間入住客房的平均成本，同時實現了額外的高利潤非客房收入。展望未來，我們預計人員配備和便利設施水準將恢復正常，工資成本也將穩定下來，而合約工減少將產生正面影響，從而帶來相對穩定的利潤率。

While Hurricane Helene occurred during the third quarter, the majority of its operational impact will take place during the fourth quarter of this year. The category 4 hurricane caused the Tampa Bay area's largest storm surge on record, eclipsing the previous record by over 2 feet. Despite the storm's sizable impact, our operating team did a commendable job keeping the property open to residents seeking shelter from the storm.

雖然颶風海倫發生在第三季度，但對營運的大部分影響將發生在今年第四季。這場四級颶風導致坦帕灣地區有史以來最大的風暴潮，比之前的紀錄高出超過 2 英尺。儘管風暴影響巨大，我們的營運團隊仍出色地保持物業開放，供躲避風暴的居民使用。

As a result of the storm surge, Hotel Alba sustained water intrusion on the first floor of the hotel, causing damage to furniture, finishes and equipment and public areas and guest rooms as well as some building systems. Despite this damage, the hotel has remained open due to an expeditious effort to clean up and mitigate the damage and full restoration is currently progressing at a good pace.

由於風暴潮的影響，阿爾巴酒店一樓遭受進水，導致家具、裝飾和設備、公共區域和客房以及一些建築系統受損。儘管遭受了損壞，但由於迅速清理和減輕損壞，酒店仍然保持營業，目前全面修復工作正在順利進行。

We expect impact to operations at Hotel Alba as a result of Hurricane Helene through the first quarter of 2025. physical impact to the hotel as well as the result in business interruption are fully insurable events.

我們預計，到 2025 年第一季度，颶風海倫將對阿爾巴酒店的營運產生影響。

A second major storm, Hurricane Milton struck Florida just two weeks after Helene, causing major wind damage in the Tampa Bay area. As a result of the city's mandatory evacuation, Hotel Alba is closed for approximately 48 hours before welcoming back to places residents and first responders to the property. Fortunately, during Hurricane Milton, Hotel Alba did not sustain any additional damage to note.

颶風米爾頓是第二場強烈風暴，在海倫颶風過後僅兩週襲擊佛羅裡達州，對坦帕灣地區造成嚴重風害。由於該市強制疏散，阿爾巴酒店將關閉約 48 小時，然後才允許居民和急救人員返回酒店。幸運的是，在颶風米爾頓期間，阿爾巴酒店沒有遭受任何額外的損壞。

Turning now to corporate activity. In July, we announced that the company executed a secured loan on the DoubleTree by Hilton Jacksonville Riverfront hotel in Jacksonville, Florida. The loan, which carried a floating interest rate based on SOFR plus 3%, as an initial principal balance of $26.25 million with an additional $9.5 million available to fund the product improvement plan at the hotels.

現在來談談企業活動。7 月份，我們宣佈公司為位於佛羅裡達州傑克遜維爾的傑克遜維爾河濱希爾頓逸林酒店提供了一筆擔保貸款。這筆貸款的浮動利率為基於 SOFR 加 3%，初始本金餘額為 2,625 萬美元，另有 950 萬美元可用於資助酒店的產品改進計劃。

The company also announced that it's entered into a new 10-year franchise agreement with Hilton Worldwide to relicense our Jacksonville Hotel, soft-branded DoubleTree by Hilton under the name Hotel Bellamy. As part of its relaunch efforts for the hotel, the company will undertake a complete renovation of the property with a cost of approximately $14.6 million and an estimated completion date of January 2027.

該公司還宣布與希爾頓全球達成新的 10 年期特許經營協議，將我們的傑克遜維爾酒店（軟品牌希爾頓逸林酒店）重新授權為貝拉米酒店 (Hotel Bellamy)。作為酒店重新開業計劃的一部分，該公司將對酒店進行全面翻新，耗資約 1,460 萬美元，預計完工日期為 2027 年 1 月。

Renovation plans for the property will include a complete transformation of its guest rooms, public spaces, building exterior, pooling sundeck, existing food and beverage offerings as well as the addition of a new Riverfront dining concept.

該酒店的翻新計劃將包括徹底改造其客房、公共空間、建築外觀、泳池日光浴平台、現有的餐飲服務以及增加新的河濱餐飲概念。

I will now turn the call over to Tony.

現在我將電話轉給托尼。

Thank you, Scott. Reviewing performance for the period ended September 30. For the second quarter -- or for the third quarter, total revenue was approximately $40.7 million, representing an increase of 3.9% over the same quarter in 2023. Year-to-date total revenue was approximately $137.9 million, representing an increase of 4.7% over the same period last year.

謝謝你，斯科特。檢視截至 9 月 30 日的期間的績效。第二季或第三季的總營收約為 4,070 萬美元，比 2023 年同期成長 3.9%。年初至今總營收約1.379億美元，較去年同期成長4.7%。

Hotel EBITDA for the quarter was approximately $8.1 million, representing an increase of 6.8% from the same quarter in 2023 and -- and year-to-date hotel EBITDA was approximately $36.1 million, representing an increase of 4.8% over the same period last year.

本季飯店 EBITDA 約 810 萬美元，較 2023 年同期成長 6.8%，年初至今飯店 EBITDA 約 3,610 萬美元，較去年同期成長 4.8%。

For the quarter, adjusted FFO was a deficit of approximately $350,000, representing a decrease of approximately $400,000 from the same quarter last year. Year-to-date adjusted FFO was approximately $12.3 million, representing an increase of 5% over the same period in 2023.

本季度，調整後的 FFO 虧損約 35 萬美元，較去年同期減少約 40 萬美元。年初至今調整後的 FFO 約為 1,230 萬美元，較 2023 年同期成長 5%。

Please note that our adjusted FFO excludes charges related to the early extinguishment of debt, unrealized gains and losses on derivative instruments, charges related to aborted or abandoned securities offerings, ESOP and stock compensation expense as well as other items.

請注意，我們的調整後 FFO 不包括與提前償還債務相關的費用、衍生工具的未實現損益、與中止或放棄的證券發行相關的費用、ESOP 和股票薪酬費用以及其他項目。

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

飯店 EBITDA 不包括這些費用以及利息支出、利息收入、企業、一般及行政開支、衍生性商品的已實現損益、我們所得稅準備金的當前部分以及其他項目。請參閱我們的收益報告以了解更多詳細資訊。

Looking at our balance sheet. As of September 30, the company had total cash of approximately $32.5 million, consisting of unrestricted cash and cash equivalents of approximately $14 million as well as $18.5 million, which was reserved for real estate taxes, insurance, capital improvements and certain other items. At the end of the quarter, we had principal balances of approximately $321.3 million in outstanding debt at a weighted average interest rate of 5.95% approximately 84.5% of the company's debt carried a fixed rate of interest when taking into account the company's interest rate hedges.

查看我們的資產負債表。截至 9 月 30 日，該公司的總現金約為 3,250 萬美元，其中包括約 1,400 萬美元的非限制現金和現金等價物以及 1,850 萬美元，用於房地產稅、保險、資本改善和某些其他項目。截至本季末，我們未償還債務的本金餘額約為 3.213 億美元，加權平均利率為 5.95%，考慮到公司的利率對沖，公司約 84.5% 的債務採用固定利率。

We anticipate routine capital expenditures for the replacement and refurbishment of furniture, fixtures and equipment to be approximately $7.2 million for calendar year 2024. As previously announced, we anticipate beginning a product improvement plan at the DoubleTree by Hilton, Philadelphia Airport this year, with anticipated capital expenditures related to this project to total approximately $3 million for the year.

我們預計，2024 日曆年更換和翻新家具、固定裝置和設備的常規資本支出約為 720 萬美元。正如先前宣布的那樣，我們預計今年將在費城機場希爾頓逸林酒店啟動一項產品改進計劃，預計今年與該項目相關的資本支出總額約為 300 萬美元。

Turning to guidance. We're updating our previous guidance for 2024, accounting for current and expected performance within the portfolio, taking into account market conditions, the refinance of the mortgage on the DoubleTree by Hilton Jacksonville Riverfront, the second trust on the DeSoto Hotel in Savannah and weather-related events, including Hurricane Helene. We're projecting total revenue in the range of $177.8 million to $180.1 million for full year '24. At the midpoint of the guidance, this represents a 3% increase over prior year.

轉向指導。我們正在更新 2024 年的先前指引，考慮投資組合的當前和預期表現，並考慮市場狀況、傑克遜維爾河濱希爾頓逸林酒店的抵押貸款再融資、薩凡納德索托酒店的第二筆信託以及與天氣相關的事件，包括颶風海倫。我們預計24年全年總收入將在1.778億美元至1.801億美元之間。以指導價的中間值計算，這比去年增加了 3%。

Hotel EBITDA is projected in the range of $45 million to $45.6 million. And at the midpoint of the guidance, this represents a 1.1% increase over last year. Lastly, adjusted FFO is projected in the range of $12.8 million and $13.4 million or $0.65 to $0.68 a share. At the midpoint of this guidance, it represents a 9.8% decrease over the prior year.

酒店 EBITDA 預計在 4500 萬至 4560 萬美元之間。按照預期中位數計算，這比去年增長了 1.1%。最後，調整後的 FFO 預計在 1,280 萬美元至 1,340 萬美元之間，或每股 0.65 美元至 0.68 美元。依照指引的中間值計算，這一數字較前一年下降了 9.8%。

And I'll now turn the call over to Dave.

現在我將電話轉給戴夫。

Thank you, Tony, and good morning, everyone. Overall, we were pleased with our portfolio's third quarter results, which were characterized by healthy business fundamentals with further occupancy improvement, particularly in our urban markets. The nearly 8% occupancy improvement over prior year was highlighted by strong performances in Philadelphia and Houston, 2, slower to recover urban hotels, which continue to stabilize during the period.

謝謝你，托尼，大家早安。總體而言，我們對投資組合的第三季業績感到滿意，其特點是業務基本面健康，入住率進一步提高，特別是在我們的城市市場。入住率較上年同期提高了近 8%，其中費城和休士頓的表現最為出色。

Despite a slower-than-expected summer leisure travel season, which was negatively impacted by disruptions from major storms, this moderation of leisure business was offset by strong group demand at our coastal drive markets. While our portfolio experienced some softening from a rate perspective during the quarter, we were very pleased with our managers' ability to achieve solid margins and bottom-line growth while gaining RevPAR share versus our competitive sets.

儘管受到強烈風暴造成的負面影響，夏季休閒旅遊旺季進展不如預期，但沿海自駕遊市場的強勁團體需求抵消了休閒業務的放緩。雖然本季我們的投資組合從利率角度來看經歷了一些疲軟，但我們對我們的管理人員能夠實現穩健的利潤率和底線增長，同時相對於我們的競爭對手獲得 RevPAR 份額的能力感到非常滿意。

As Scott mentioned, during the last week of the quarter, we experienced a major casualty at our hotel in Tampa as a result of Hurricane Helene. Despite our hotel experiencing flooding on its ground floor that resulted in a material casualty to interior spaces and systems the hotel remained open, and remediation and restoration commenced immediately. Our staff and partners should be recognized for their commendable efforts in handling this event in a streamlined manner, which minimized impact to operations. The hotel remains open, and while the timing remains a moving target, the company expects to recover lost revenues through business interruption insurance.

正如斯科特所提到的，本季度的最後一周，由於颶風海倫的影響，我們位於坦帕的酒店遭受了重大損失。儘管我們酒店底層遭遇洪水侵襲，導致內部空間和系統遭受物質損失，但酒店仍然正常營業，並立即開始整治和恢復工作。我們的員工和合作夥伴應該受到認可，他們以精簡的方式處理此事件，最大限度地減少了對營運的影響，並做出了值得稱讚的努力。酒店仍在營業，雖然具體時間還不得而知，但該公司希望透過營業中斷保險收回損失的收入。

The occupancy improvement at our urban locations during the third quarter is an encouraging sign that these hotels are nearing stabilization, following an uneven recovery period. In fact, during the third quarter, our three slow to recover hotels in Houston, Philadelphia and Atlanta delivered nearly $1 million in bottom line growth over prior year, validating our prior assumptions regarding the recovery of these assets.

第三季度，我們城市飯店的入住率有所改善，這是一個令人鼓舞的跡象，表明這些飯店在經歷了不平衡的復甦期後已接近穩定。事實上，第三季度，我們位於休士頓、費城和亞特蘭大的三家復甦緩慢的酒店較上年同期實現了近 100 萬美元的利潤增長，驗證了我們先前對這些資產復甦的假設。

The Whitehall's 60% year-over-year occupancy gain is a testament to the hotel's refocused sales strategy as well as the improved health of the Downtown Houston market. Importantly, the hotel's two most valuable clients, which are located adjacent to the hotel, being Chevron and Kellogg Brown & Root have normalized to pre-pandemic levels. In addition, group business at the Whitehall showed tremendous growth, improving by 92% over prior year.

白廳酒店 (Whitehall) 的入住率較上年同期增長了 60%，證明了酒店重新調整了銷售策略，也證明了休士頓市中心市場的健康狀況有所改善。重要的是，酒店相鄰的兩個最有價值的客戶雪佛龍和凱洛格布朗和魯特的營業額已恢復到疫情前的水平。此外，白廳的團體業務也呈現大幅成長，較前一年成長了 92%。

Similar to the Whitehall, our DoubleTree Hotel at the Philadelphia Airport experienced a nearly 16% and -- year-over-year increase in occupancy during the quarter as strong business travel was coupled with a more active citywide calendar. While the City of Philadelphia will likely continue to follow an uneven growth trajectory, this market is showing real progress following a slow recovery period coming out of the pandemic.

與白廳酒店類似，由於商務旅行強勁以及全市日程安排更加活躍，我們位於費城機場的逸林酒店本季度的入住率同比增長了近 16%。儘管費城市可能會繼續遵循不均衡的成長軌跡，但經過疫情後的緩慢復甦期後，該市場正在顯示出真正的進步。

Despite the strong performances of these hotels, there's plenty of upside opportunity with Philadelphia still tracking 900 basis points below 2019's occupancy level and Houston tracking 450 basis points behind 2019's RevPAR. Though the Georgian Terrace in Atlanta experienced lower-than-expected ADR during the quarter, the hotel's management team was able to maintain solid flow and deliver excellent bottom line results. Contributing to the solid bottom line results for the Georgian Terrace was the group segment at this hotel, which grew an impressive 19% over prior year. Moving forward, we believe that Georgian Terrace has plenty of growth opportunities. as its third quarter occupancy rate was still more than 1,400 basis points below the comparable period in 2019.

儘管這些飯店表現強勁，但仍有很大上漲機會，因為費城飯店的入住率仍比 2019 年的入住率低 900 個基點，休士頓飯店的 RevPAR 比 2019 年的 RevPAR 低 450 個基點。儘管亞特蘭大的喬治亞露台酒店在本季度的 ADR 低於預期，但酒店的管理團隊仍然能夠保持穩定的客流量並實現出色的盈利業績。喬治亞露台酒店的團體業務為該酒店的穩健盈利業績做出了貢獻，該業務較上年同期增長了 19%，增幅驚人。展望未來，我們相信 Georgian Terrace 擁有充足的成長機會。因為其第三季的入住率仍比 2019 年同期低 1,400 多個基點。

Looking at the total portfolio, the group picture remains solid for the balance of the year. with full year bookings pacing 5.7% ahead of prior year. On the balance sheet front, during the quarter, we were encouraged by the successful refinancing of our Jacksonville hotel allowing us to meet our capital and funding needs for its life cycle improvement plan. We view the refinance terms with Fifth Third Bank as a favorable outcome, especially given the challenging conditions in the mortgage and lending markets for commercial properties.

從整個投資組合來看，今年餘下的時間內，集團的狀況依然穩健。全年預訂量較上年增加 5.7%。在資產負債表方面，本季度，我們對傑克遜維爾酒店的成功再融資感到鼓舞，這使我們能夠滿足其生命週期改進計劃的資本和資金需求。我們認為與五三銀行的再融資條款是一個有利的結果，特別是考慮到商業房地產抵押貸款和貸款市場當前的嚴峻情況。

We believe our repositioning strategy to a lifestyle hotel will allow the hotel to become more competitive in the dynamic downtown Jacksonville market, which we believe is poised for significant growth over the next several years. This repositioning strategy will be similar to the recent strategy employed at the Hotel Alba in Tampa, which has created significant value.

我們相信，我們的重新定位策略將使酒店在充滿活力的傑克遜維爾市中心市場中更具競爭力，我們相信該酒店在未來幾年將實現顯著增長。這項重新定位策略將與坦帕市阿爾巴酒店 (Hotel Alba) 最近採用的策略類似，該策略創造了巨大的價值。

Looking ahead, we will continue to conservatively approach upcoming debt maturities for our portfolio which are spread evenly over the next few years. As we look at the fourth quarter of 2024, we are cautiously optimistic regarding operating fundamentals for the balance of the year. Upscale and upper upscale hotels are expected to outperform the broader lodging market in the near term, an encouraging indicator for our portfolio.

展望未來，我們將繼續以保守的態度對待我們投資組合中即將到期的債務，這些債務將在未來幾年內均勻分佈。展望 2024 年第四季度，我們對今年剩餘時間的營運基本面持謹慎樂觀的態度。預計高檔飯店和超高檔飯店在短期內的表現將優於更廣泛的住宿市場，這對我們的投資組合來說是一個令人鼓舞的指標。

Preliminary October RevPAR shows a 6.1% improvement over prior year, fueled by continued improvement at our urban hotels, coupled with solid group production across the portfolio. Full year 2024 RevPAR for our portfolio is forecasted to range between 102% and 104% of full year 2023 RevPAR. We believe that our portfolio of well-positioned hotels lifted by continued growth in the group and business transient segments will deliver strong returns for our shareholders.

10 月的初步數據顯示，RevPAR 較去年同期成長了 6.1%，這得益於我們城市飯店的持續改善，以及整個集團投資組合的穩健生產。我們投資組合中的 2024 年全年 RevPAR 預計介於 2023 年全年 RevPAR 的 102% 至 104% 之間。我們相信，我們定位良好的飯店組合，在集團和商務臨時業務持續成長的推動下，將為我們的股東帶來豐厚的回報。

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

接線員，這樣我們就可以開始通話以回答任何問題了。

(Operator Instructions) Alexander Goldfarb, Piper Sandler.

（操作員指令）亞歷山大·戈德法布，派珀·桑德勒。

Dave, I mean, it sounds like everything is sort of back to 2019. I think that's what you guys said, good improvement in urban, business group, everything. So is that a fair statement? Do you think that the portfolio overall is back to 2019? And also -- or do you think it's maybe even exceeding where you were performing in 2019?

戴夫，我的意思是，聽起來好像一切都回到了 2019 年。我想這就是你們所說的，城市、商業集團、一切都有很好的改善。那麼這是一個公正的說法嗎？您認為投資組合整體已經回到 2019 年的水準嗎？而且 — 或者您是否認為它甚至可能超過了您在 2019 年的表現？

Well, I think one of the things that I mentioned, and so did Scott and maybe Tony as well, was we still have a lot of room left on the occupancy column, and that's where the growth is going to be for our portfolio as we continue to get additional group bookings, additional business transient bookings and continue to round out what was once the RevPAR. So I think throughout the portfolio, we're seeing the opportunity to get our occupancy back online. It's still far underperforms 2019.

嗯，我想我提到的一件事，斯科特和托尼可能也提到過，就是我們在入住率方面仍然有很大空間，而這正是我們投資組合的增長點，因為我們將繼續獲得更多的團體預訂、更多的商務臨時預訂，並繼續完善曾經的 RevPAR。因此，我認為，在整個投資組合中，我們都看到了讓入住率重新恢復的機會。它的表現仍遠不及 2019 年。

Okay. And then can you just go back through the hurricane damage. I think, Scott, you mentioned it's more of an impact in fourth quarter. Can you just explain how that works as far as what we'll see in earnings? And also, what's in earnings versus what's on the back end, meaning insurance recovery that doesn't flow through earnings, but that you'll be reimbursed?

好的。然後你就能回顧一下颶風造成的破壞嗎？史考特，我認為你提到它對第四季的影響更大。您能否解釋一下這是如何運作的以及我們將從收益中看到什麼？另外，收益中和後端之間有什麼區別，這意味著保險恢復不會通過收益流動，但您會得到補償？

Yes. I'll let Scott give you the blow by blow, but the short answer is we're going to report the P&L for the hotel into our earnings and at the same time, as the quarters unfold, we're going to have business interruption that will be a payment that will also appear at the corporate level. There might be a lag of two to three months depending on how the carriers respond to true everything up.

是的。我會讓斯科特向您逐一說明，但簡短的回答是，我們將把酒店的損益表報告到我們的收益中，同時，隨著季度的展開，我們將面臨業務中斷，這將是一筆付款，也會出現在公司層面。可能會有兩到三個月的滯後，這取決於承運商如何應對這一切。

But the short answer is we're going to have some impairment at the hotel because of the casualty and you will see that impairment recovered in the form of business interruption insurance at a later time. It's not going to be a year from now, it might be 30 or 60 or 90 days. And if it all happens in the same quarter, then it will be transparent to everybody.

但簡短的回答是，由於這次意外事故，我們的酒店將遭受一些損失，這些損失稍後將以營業中斷保險的形式得到彌補。這不會是一年之後，而可能是30天、60天或90天。如果這一切都發生在同一季度，那麼對每個人來說都是透明的。

But is that -- can you quantify that? Is that like a $0.01, $0.02, $0.03, just so we have a --

但那是──你能量化它嗎？那是不是相當於 0.01 美元、0.02 美元、0.03 美元，這樣我們就有了一個--

Yes. I mean two different things to try to clarify here. So for the third quarter, as I mentioned, we had two hurricanes, Hurricane Debby and Hurricane Helene that had operational impact on several properties in our portfolio. Besides Tampa, none of those were insured events. We just had lost business over the course of the time those hurricanes were blown through the Southeast.

是的。我在這裡想澄清兩件不同的事情。正如我所提到的，第三季我們遭遇了兩場颶風，即颶風黛比和颶風海倫，它們對我們投資組合中的幾處房產產生了營運影響。除坦帕外，這些事件均不是保險事件。在颶風襲擊東南部期間，我們的業務遭受了損失。

So that probably relates to about $0.01 in lost AFFO for the company in the third quarter that is not recoverable, that just impact from the storms. For Tampa specifically, as it relates to the damage from Hurricane Helene and that going forward, again, we're not forecasting that into our guidance because our expectation is that we are going to receive the business interruption proceeds by the end of the third quarter to book that in the quarter -- in the quarter for the quarter.

所以這可能與該公司第三季約 0.01 美元的 AFFO 損失有關，這是無法挽回的，這只是風暴的影響。具體來說，對於坦帕來說，由於它與颶風海倫造成的破壞有關，而且展望未來，我們不會將其預測到我們的預期中，因為我們預計我們將在第三季度末收到業務中斷收益，以便在本季度入賬——在本季度的本季度。

So when we report the fourth quarter, our expectation is that we'll have BI proceeds to compensate us for any lost impact and therefore, were essentially made a whole. If that doesn't happen, we'll obviously fully detail out the variances there and our expectations. But right now, that's our expectation. So we're not adjusting guidance based on the current impact that we're seeing in Tampa as a result of the hurricane.

因此，當我們報告第四季度時，我們預計將獲得 BI 收益來補償我們因任何損失而產生的影響，因此，我們基本上得到了一個整體。如果沒有發生這種情況，我們顯然會詳細說明其中的差異和我們的期望。但現在，這是我們的期望。因此，我們不會根據颶風對坦帕造成目前的影響來調整指引。

This is Tony and I think where you might see a little bit of impact is on the top line because when you get reimbursed for business interruption, you don't get reimbursed for the revenue, you get reimbursed for the net profit. And we're expecting by the time we report earnings in late February, maybe the first of March, then we'll have gone through that process with our carriers, and we'll have a good picture as to what that amount of recovery was for the fourth quarter.

我是東尼，我認為您可能會看到對營業額有一點影響，因為當您因業務中斷而獲得補償時，您獲得的不是收入補償，而是淨利潤補償。我們預計，到 2 月底或 3 月初報告收益時，我們將與我們的運營商一起完成該過程，並將清楚地了解第四季度的復甦程度。

And we do expect that it will be approximately what we had expected to earn. I don't think this fourth quarter would have been an aberration to the last year's financial performance for the property. So I think we'll be able to get the carriers on board for that. So as Scott said, we really don't expect to see any impact on hotel EBITDA. We don't expect to see any impact on FFO. We don't expect to see any impact on adjusted FFO for that -- for the Hurricane Helene and the resultant loss of business.

我們確實預期這將大約等於我們預期的收入。我認為，今年第四季的業績與去年同期相比不會出現異常。所以我認為我們能夠讓運營商參與進來。正如斯科特所說，我們確實不希望看到酒店 EBITDA 受到任何影響。我們預計這不會對 FFO 產生任何影響。我們預計颶風海倫及其造成的業務損失不會對調整後的 FFO 產生任何影響。

Okay. That's helpful. And then just the final question. The second mortgage on the DeSoto, can you just walk through the thinking on that? I would -- again, this has been a topic we've discussed for quite a while, but I would think the view would be to reduce leverage steadily over time. But just curious, the $5 million second mortgage if this is related to some improvement package or just the thoughts behind it.

好的。這很有幫助。接下來是最後一個問題。關於 DeSoto 的第二筆抵押貸款，您能簡單談談您對此的想法嗎？我會—再說一次，這是我們討論了很長一段時間的話題，但我認為觀點是隨著時間的推移穩步降低槓桿率。但只是好奇，500 萬美元的二次抵押貸款是否與某些改善方案有關，還是只是背後的想法。

Yes, it's directly related to some improvements to the property. We had an exterior restoration project that's been going on for a couple of years now at that property, essentially replacing all the brick facade of the building, at the 1960 building and the brick facade was due for a major restoration project. So ultimately worked with the lender to increase the leverage a little bit on that to help fund that project, that hotel has a ton of equity built up in it, still a low leverage point on the asset. But ultimately, it was solely tied to that restoration projects. So the dollars we pulled out from a financing [went back into the asset].

是的，這與房產的一些改進直接相關。我們在該物業上進行了一項外部修復工程，已經進行了好幾年了，基本上更換了 1960 年建築的所有磚砌外牆，現在需要對磚砌外牆進行大規模修復工程。因此，最終與貸方合作，稍微增加槓桿率以幫助資助該項目，該酒店已經積累了大量股權，資產的槓桿點仍然很低。但最終，它只與修復項目有關。所以我們從融資中提取的資金[回到資產中]。

We currently have no further questions. So I would like to hand back to Dave Folsom, CEO, for any closing remarks.

目前我們沒有其他問題。因此，我想將最後的發言交還給執行長戴夫·福爾瑟姆 (Dave Folsom)。

Thank you, operator, and thanks to everyone for listening today, and we'll talk to you next quarter.

謝謝接線員，也感謝大家今天的收聽，我們將在下個季度繼續討論。

This concludes today's call. Thank you to everyone for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝大家的加入。現在您可以斷開線路了。