Sotherly Hotels Inc (SOHO) 2025 Q2 法說會逐字稿

Good morning, all, and thank you for joining us for the Sotherly Hotels Q2 2025 conference call and webcast. My name is Karl and I'll be coordinating the call today.

大家早安，謝謝您參加 Sotherly Hotels 2025 年第二季電話會議和網路廣播。我叫卡爾，今天我將負責協調這場電話會議。

(Operator Instructions)

（操作員指示）

I'd like to hand over to our host, Mack Sims, Vice President of Operations. The floor is yours.

我想把麥克風交給我們的主持人、營運副總裁 Mack Sims。現在輪到你了。

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. Any statements made during this conference call, which are not historical, may constitute forward-looking statements.

謝謝大家，早安。如果您尚未收到本財報，請造訪我們的網站 sotherlyhotels.com 取得。在本財報中，本公司已根據 Reg G 的要求，將所有非 GAAP 財務指標與最直接可比較的 GAAP 指標進行調整。本次電話會議期間所做的任何非歷史性的陳述都可能構成前瞻性陳述。

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. 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.

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。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進行了詳細說明。本公司不承擔更新或修改任何前瞻性陳述的義務。

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. I'll start off today's call with a review of our portfolio's key operating metrics for the second quarter. Looking at the second quarter results for the composite portfolio compared to 2024. RevPAR decreased 5.4%, driven by a 3.5% decrease in occupancy and a 1.9% decrease in ADR.

謝謝，麥克。在今天的電話會議上，我將首先回顧我們投資組合第二季的關鍵營運指標。與 2024 年相比，請查看綜合投資組合的第二季業績。平均每間可用客房收入 (RevPAR) 下降 5.4%，因為入住率下降 3.5%，平均房價下降 1.9%。

Stripping out Tampa from the results due to continued impact of the property from Hurricane Helene, which struck Tampa in late September 2024, the second quarter's composite portfolio RevPAR decreased slightly better 5% compared to prior year, driven by a 2.3% decrease in occupancy and a 2.8% decrease in ADR.

由於 2024 年 9 月下旬襲擊坦帕的颶風海倫持續影響坦帕酒店，我們將坦帕從業績中剔除，第二季綜合投資組合 RevPAR 與上年相比略有下降 5%，原因是入住率下降 2.3%，ADR 下降 2.8%。

Year-to-date RevPAR performance for the composite portfolio represents a decrease of 0.5% from the same period in 2024 driven by 0.9% increase in occupancy and a 1.5% decrease in rate. Once again, stripping out Tampa from the results, composite portfolio delivered slightly better results decreasing 0.1% compared to prior year, driven by a 2.1% increase in occupancy and a 2.1% decrease in rate.

年初至今，綜合飯店組合的 RevPAR 表現較 2024 年同期下降 0.5%，原因是入住率增加 0.9%，房價下降 1.5%。再次，將坦帕業績中剔除後，綜合投資組合的業績略有好轉，與上年相比下降了 0.1%，這得益於入住率上升了 2.1%，而房價下降了 2.1%。

During the second quarter, our portfolio of hotels underperformed expectations against the backdrop of growing economic uncertainty and softening demand. While certain leisure destinations showed pockets of stability, overall performance was impacted by a pullback in government-related travel due to DOGE program spending cuts as well as more cautious consumer behavior in the face of persistent inflation and economic unease.

在第二季度，在經濟不確定性增加和需求疲軟的背景下，我們的飯店組合表現不如預期。雖然某些休閒目的地表現出一定的穩定性，但由於 DOGE 計劃支出削減導致政府相關旅行減少，以及面對持續的通貨膨脹和經濟不安，消費者行為更加謹慎，整體表現受到了影響。

DOGE-related spending cuts had a notable impact on group and business traveler demand at our Washington, D.C. MSA properties in Arlington and Laurel. Our hotels in Savannah and Atlanta, where association business represents a meaningful share of group room nights were also adversely affected.

與 DOGE 相關的支出削減對我們位於華盛頓特區阿靈頓和勞雷爾的 MSA 酒店的團體和商務旅客需求產生了顯著影響。我們在薩凡納和亞特蘭大的酒店也受到了不利影響，因為協會業務在團體客房預訂量中佔了相當大的份額。

Additionally, uncertainty around national tariff policies contributed to hesitancy among business travelers, particularly in several of our secondary and drive to markets. These factors create a more challenging operating environment than we had anticipated, and we remain focused on disciplined cost management and targeted revenue strategies as we navigate the remainder of the year.

此外，國家關稅政策的不確定性也導致商務旅客猶豫不決，尤其是在我們的幾個二級市場和自駕市場。這些因素造成了比我們預期的更具挑戰性的經營環境，在度過今年剩餘時間時，我們仍將專注於嚴格的成本管理和有針對性的收入策略。

Despite these macroeconomic headwinds, our portfolio's ADR remained resilient, reflecting the strength of higher-end travelers as well as our overall pricing strategy. As previously noted, Hotel Alba in Tampa continue to experience some operational disruption in the second quarter due to elevated repairs following flood damage from Hurricane Helene.

儘管存在這些宏觀經濟逆風，我們投資組合的 ADR 仍然保持彈性，反映了高端旅行者的實力以及我們的整體定價策略。如前所述，由於颶風海倫造成洪水破壞後修復工作量增加，坦帕市的 Hotel Alba 酒店在第二季度繼續遭遇一些營運中斷。

While restoration is ongoing, we are making steady progress and anticipate a full return to normal operations later this month. Importantly, our headline operating metrics, occupancy, ADR and RevPAR reflect the temporary impact on a pre-insurance basis, while our reported revenue and profitability benefited from business interruption insurance proceeds, helping to mitigate the financial effects during the quarter.

雖然恢復工作仍在進行中，但我們正在穩步推進，預計本月晚些時候將全面恢復正常運作。重要的是，我們的主要營運指標、入住率、平均房價和每間可用客房收入反映了保險前的暫時影響，而我們報告的收入和盈利能力受益於業務中斷保險收益，有助於減輕本季度的財務影響。

Looking at some highlights from a few key assets in the portfolio during the quarter. Hotel Ballast in Wilmington posted another solid performance in the quarter, exceeding budgeted expectations. RevPAR increased 1.3% year-over-year, driven by a 2.7% gain in average rate partially offset by a modest 1.3% decline in occupancy. The hotel benefited from continued strength in group demand along with strong banquet and catering revenue.

回顧本季投資組合中一些關鍵資產的亮點。威爾明頓的 Hotel Ballast 在本季度再次取得了穩健的業績，超出了預算預期。平均客房收入 (RevPAR) 年增 1.3%，其中平均房價上漲 2.7%，但入住率小幅下降 1.3% 抵消了這一增長。酒店受益於團體需求的持續強勁以及宴會和餐飲收入的強勁增長。

Hotel Ballast remained a market leader, finishing the quarter with a RevPAR index of 119.6% versus competitive set. The DoubleTree Philadelphia Airport delivered a solid second quarter performance surpassing budget expectations despite ongoing softness in market ADR. While RevPAR declined 5.3% year-over-year, driven by a 6% decrease in ADR, this decline primarily reflects the absence of several onetime events that boosted results in the prior year.

Hotel Ballast 持續維持市場領先地位，本季的 RevPAR 指數比競爭對手高出 119.6%。儘管市場平均房價持續疲軟，費城機場逸林酒店第二季的業績依然穩健，超出了預算預期。雖然受平均房價下降 6% 的影響，每間可用客房收入 (RevPAR) 年減 5.3%，但這一下降主要反映了上一年促進業績成長的幾項一次性事件的缺失。

Looking ahead, we remain optimistic about the hotel's outlook, reported by improving group bookings and strengthening citywide demand drivers. The Hyde Beach House delivered strong results in the second quarter, outperforming both budgeted and prior year expectations.

展望未來，我們仍對飯店的前景持樂觀態度，報告顯示團體預訂量有所改善，全市需求驅動力有所加強。海德海濱別墅 (Hyde Beach House) 在第二季度取得了強勁的業績，超出了預算和去年的預期。

RevPAR increased 12.7%, driven by an 18.5% gain in occupancy, partially offset by a 4.9% decline in ADR. Performance was bolstered by robust spring break leisure demand and increased demand related to the FIFA Club World Cup. Profitability remained solid, supported by diversified revenue streams, including centralized housekeeping and parking operations.

平均每間可用客房收入 (RevPAR) 增長 12.7%，主要由於入住率增長 18.5%，但平均房價 (ADR) 下降 4.9% 部分抵消了這一增長。強勁的春假休閒需求以及國際足總俱樂部世界盃相關需求的增加推動了業績的成長。獲利能力依然穩健，得益於集中客房服務和停車業務等多元化收入來源的支持。

Looking at portfolio profitability. Hotel EBITDA margin declined by 2.5% year over year for the quarter, primarily due to RevPAR softness in Savannah, Atlanta and Jacksonville. While these results came in below our expectations, we believe the outsized impact from DOGE-related spending cuts and tariff policies is temporary in nature. Encouragingly, our operators were able to maintain rate discipline despite these headwinds, signaling that demand among higher income customers remains resilient. Looking ahead, we expect margin trends to remain relatively stable, supported by normalized staffing levels, steady mend the offerings and easing wage pressures across the portfolio.

查看投資組合獲利能力。本季飯店 EBITDA 利潤率年減 2.5%，主要原因是薩凡納、亞特蘭大和傑克遜維爾的 RevPAR 疲軟。雖然這些結果低於我們的預期，但我們認為 DOGE 相關支出削減和關稅政策帶來的巨大影響本質上是暫時的。令人鼓舞的是，儘管面臨這些不利因素，我們的業者仍能維持費率紀律，這表明高收入客戶的需求仍然強勁。展望未來，我們預期利潤率趨勢將保持相對穩定，這得益於正常的人員配置水準、穩定的產品和緩解整個投資組合的薪資壓力。

Turning to corporate activity. We are proactively managing upcoming debt maturities tied to our assets in Atlanta and Hollywood. While broader debt market conditions remain uncertain, we are confident in our ability to work constructively with our lending partners. As to close -- disclosed in early July, we engaged a consultant that is in the process of helping us negotiate the loan extension with a special servicer for The Georgian Terrace Hotel in Atlanta.

轉向企業活動。我們正在積極管理與亞特蘭大和好萊塢資產相關的即將到期的債務。儘管整體債務市場狀況仍不確定，但我們有信心與貸款夥伴進行建設性合作。最後，我們在 7 月初披露，我們聘請了一位顧問，正在幫助我們與亞特蘭大喬治亞露台酒店的一家特別服務商協商貸款延期事宜。

Looking ahead, we are also confident in our ability to address the upcoming maturity of the mortgage loans secured by the DoubleTree in Hollywood, Florida. We remain committed to a disciplined and conservative approach to capital management supported by a well-staggered maturity schedule that offers meaningful flexibility in the current financing environment.

展望未來，我們也對自己解決佛羅裡達州好萊塢 DoubleTree 酒店即將到期的抵押貸款的能力充滿信心。我們仍然致力於採取嚴謹而保守的資本管理方法，並輔以分階段的到期計劃，在當前融資環境下提供有意義的靈活性。

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

說完這些，我現在將電話轉給托尼。

Thank you, Scott. Reviewing performance for the period ended June 30, 2025. For the second quarter, total revenue was approximately $48.8 million, representing a decrease of 3.7% over the same quarter in 2024. Year-to-date, total revenue was approximately $97.1 million, representing a decrease of 0.1% from the same period last year. Hotel EBITDA for the quarter was approximately $13.9 million, representing a decrease of 11.5% from the same quarter in 2024.

謝謝你，斯科特。檢視截至 2025 年 6 月 30 日的業績。第二季總營收約 4,880 萬美元，較 2024 年同期下降 3.7%。年初至今，總營收約 9,710 萬美元，較去年同期下降 0.1%。本季飯店 EBITDA 約 1,390 萬美元，較 2024 年同期下降 11.5%。

Year to date, hotel EBITDA was approximately $26.8 million, representing a decrease of 4.4% over the same period last year. For the quarter, adjusted FFO was approximately $4.8 million, representing a decrease of approximately $2.7 million from the same quarter in 2024. And year-to-date adjusted FFO was approximately $9.3 million, representing a decrease of $3.4 million from the same period last year.

年初至今，飯店 EBITDA 約 2,680 萬美元，比去年同期下降 4.4%。本季度，調整後的 FFO 約為 480 萬美元，較 2024 年同期減少約 270 萬美元。年初至今調整後的 FFO 約為 930 萬美元，比去年同期減少 340 萬美元。

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. 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.

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。飯店 EBITDA 不包括這些費用以及利息支出、利息收入、公司、一般和行政費用、衍生性工具的已實現損益、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情。

Looking at our balance sheet. As of December -- as of June 30, 2025, the company had total cash of approximately $26.5 million, consisting of unrestricted cash and cash equivalents of approximately $10.5 million as well as approximately $16.5 million, which was reserved for real estate taxes, insurance, capital improvements and certain other items.

查看我們的資產負債表。截至 12 月 - 截至 2025 年 6 月 30 日，該公司的總現金約為 2,650 萬美元，其中包括約 1,050 萬美元的非限制現金和現金等價物以及約 1,650 萬美元，用於房地產稅、保險、資本改善和某些其他項目。

At the end of the quarter, we had principal balances of approximately $315.8 million in outstanding debt at a weighted average interest rate of 5.89%, approximately 84.4% of the company's debt carried a fixed rate of interest when taking into account the company's interest rate hedges. We anticipate routine capital expenditures for the replacement and refurbishment of furniture fixtures and equipment will amount to approximately $7.1 million for calendar year 2025.

截至本季末，我們的未償債務本金餘額約為 3.158 億美元，加權平均利率為 5.89%，考慮到公司的利率對沖，公司約 84.4% 的債務採用固定利率。我們預計，2025 日曆年更換和翻新家具固定裝置和設備的常規資本支出將達到約 710 萬美元。

Significant portion of our product improvement plans at the DoubleTree by Hilton Philadelphia Airport and the DoubleTree by Hilton Jacksonville Riverfront will occur during the year with anticipated capital expenditures related to both these projects totaling $5.6 million for calendar year 2025.

費城機場希爾頓逸林酒店和傑克遜維爾河濱希爾頓逸林酒店的產品改進計劃的大部分將在今年內實施，預計這兩個項目相關的資本支出在 2025 日曆年總計將達到 560 萬美元。

Turning to guidance. We're issuing updated guidance to reflect full year 2025 accounting for current and expected performance within the portfolio, taking into account market conditions as well. We're projecting total revenue in the range of $185.2 million to $188.2 million for full year 2025 and at the midpoint of the guidance that represents a 2.6% increase over the prior year.

轉向指導。我們正在發布更新後的指南，以反映 2025 年全年投資組合的當前和預期表現，同時也考慮市場狀況。我們預計 2025 年全年總收入將在 1.852 億美元至 1.882 億美元之間，處於指導值的中間值，比上一年增長 2.6%。

Hotel EBITDA is projected in the range of $45.3 million to $45.8 million. At the midpoint of the guidance, this represents a 2.6% decrease from the prior year.

酒店 EBITDA 預計在 4530 萬美元至 4580 萬美元之間。以指導中位數計算，這比前一年下降了 2.6%。

And adjusted FFO is projected in the range of $6.9 million to $7.5 million or $0.34 to $0.37 per share. And I'll now turn the call over to Dave.

調整後的 FFO 預計在 690 萬美元至 750 萬美元之間，或每股 0.34 美元至 0.37 美元。現在我將把電話轉給戴夫。

Thank you, Tony. Good morning, everyone. In the second quarter, we experienced a modest reduction in hotel demand across the portfolio with the majority of our competitive set properties reporting year-over-year RevPAR declines. This softening aligns with broader macroeconomic headwinds including elevated interest rates and the continued impact of tariff-related policies. Despite these pressures, business transient demand remained relatively steady with only a slight year-over-year dip, underscoring the resilience of this high-value segment.

謝謝你，托尼。大家早安。在第二季度，我們整個投資組合的酒店需求略有下降，其中大多數競爭酒店的 RevPAR 均出現同比下降。這種疲軟與更廣泛的宏觀經濟逆風相一致，包括利率上升和關稅相關政策的持續影響。儘管面臨這些壓力，商業臨時需求仍保持相對穩定，同比僅略有下降，凸顯了這個高價值領域的彈性。

Group booking pace for the remainder of the year also remains intact with only minor reductions compared to 2024 supporting our expectation for a gradual recovery as market conditions stabilize.

今年剩餘時間的團體預訂速度也保持不變，與 2024 年相比僅略有下降，這支持了我們對隨著市場狀況穩定而逐步復甦的預期。

From a macro standpoint, recent federal policies introduced a higher level of uncertainty, contributing to reduced near-term visibility across the lodging sector, this backdrop has weighed on consumer sentiment and resulted in softer overall demand, government-related travel has also slowed particularly at our hotels in the Washington, D.C. area, Savannah and Atlanta markets where government and association business represent a meaningful share of revenue.

從宏觀角度來看，最近的聯邦政策引入了更高的不確定性，導致整個住宿業的短期可見性降低，這種背景影響了消費者情緒並導致整體需求疲軟，政府相關旅行也有所放緩，特別是在華盛頓特區、薩凡納和亞特蘭大市場的酒店，政府和協會業務佔了相當大的收入份額。

We believe tariff-related policies have had a direct impact on the leisure segment, particularly among price-sensitive and international travelers, inflationary pressures and rising costs on consumer goods have constrained discretionary spending, leading to shorter booking windows, lower average lengths of stay and more cautious travel behavior overall. These effects were especially pronounced in our drive to leisure markets where weekend demand has historically been strong. Savannah, in particular, saw an outsized impact during the quarter with RevPAR down nearly 10% year over year.

我們認為，關稅相關政策對休閒領域產生了直接影響，特別是對價格敏感和國際旅行者而言，通膨壓力和消費品成本上漲限制了可自由支配的支出，導致預訂時間縮短、平均停留時間縮短以及整體旅行行為更加謹慎。這些影響在我們開拓週末需求歷來強勁的休閒市場時尤其明顯。薩凡納在本季受到的影響尤其巨大，RevPAR 年減近 10%。

Despite these results, we remain confident in the long-term fundamentals of the Savannah market and expect performance to recover as macro pressures ease. On the group side, total production declined 7% in the second quarter. That said, group pace for the remainder of the year remains healthy, and we have not seen the widespread cancellations that typically accompany more severe economic downturns.

儘管存在這些結果，我們仍然對薩凡納市場的長期基本面充滿信心，並預計隨著宏觀壓力的緩解，業績將會復甦。集團方面，第二季總產量下降了7%。儘管如此，今年剩餘時間的集團步伐仍然保持健康，而且我們還沒有看到通常伴隨更嚴重的經濟衰退而出現的大規模取消活動的情況。

In some markets such as Arlington, where second quarter group revenue increased 42% over prior year, our operators were able to offset declines in government business by backfilling with additional group bookings. As overall demand trends for our portfolio have moderated, we're approaching the back half of the year with a more measured outlook.

在阿靈頓等一些市場，第二季度團體收入比上年增長了 42%，我們的營運商能夠透過增加團體預訂來彌補政府業務的下滑。由於我們投資組合的整體需求趨勢已經放緩，我們將以更審慎的眼光看待下半年。

Still, we remain confident in our operators' ability to adapt quickly and execute targeted sales and revenue strategies to navigate the current environment effectively. As Scott referenced in his prepared remarks, the mortgage markets continue to challenge borrowers as loans mature and refinancing assets remain difficult. We continue to navigate this environment with loan restructuring, extensions, modification and asset sales.

儘管如此，我們仍然相信我們的營運商能夠快速適應並執行有針對性的銷售和收入策略，以有效應對當前環境。正如斯科特在其準備好的演講中提到的那樣，抵押貸款市場繼續給借款人帶來挑戰，因為貸款到期和再融資資產仍然很困難。我們將繼續透過貸款重組、延期、修改和資產出售來應對這種環境。

For example, as we recently disclosed, we have entered into a purchase and sale agreement to sell our parking garage in Atlanta adjacent to The Georgian Terrace hotel. This sale, coupled with a new mortgage loan on the hotel, will allow for the extinguishment of the existing CMBS loan that matured in the second quarter.

例如，正如我們最近所揭露的那樣，我們已簽署了一份買賣協議，出售位於亞特蘭大喬治亞露台酒店附近的停車場。此次出售加上酒店的新抵押貸款將可以償還第二季到期的現有 CMBS 貸款。

We further expected a change in interest rates will provide a much-needed lift to commercial real estate lending. Sotherly will benefit from such developments as well as an environment characterized by more stable macroeconomic conditions. As we look toward the second half of the year, we remain cautiously optimistic about the overall trajectory of the lodging industry.

我們進一步預期利率的變動將為商業房地產貸款提供急需的提振。索瑟利將受益於這樣的發展以及更穩定的宏觀經濟條件的環境。展望下半年，我們對住宿業的整體發展趨勢仍持謹慎樂觀的態度。

While elevated interest rates, persistent inflationary pressures and geopolitical uncertainty continue to weigh on consumer and corporate sentiment, we're taking a more measured view of the near-term pace of hotel demand. That said, our portfolio is well positioned to navigate these challenges. We believe our concentration in upscale and upper upscale assets will allow us to outperform the broader market in 2025. Booking trends remain relatively healthy.

儘管利率上升、持續的通膨壓力和地緣政治不確定性繼續影響消費者和企業情緒，但我們對近期飯店需求的成長速度採取了更為審慎的看法。也就是說，我們的投資組合已做好充分準備來應對這些挑戰。我們相信，我們對高檔和超高檔資產的集中將使我們在 2025 年的表現超越大盤。預訂趨勢仍然相對健康。

And at this time, we anticipate full year 2025 RevPAR for the actual portfolio to be approximately flat compared to last year. Supported by continued proactive asset management, we remain confident in our ability to deliver strong relative performance in a complex operating environment.

目前，我們預計 2025 年全年實際投資組合的 RevPAR 將與去年基本持平。在持續主動的資產管理的支持下，我們仍然有信心在複雜的營運環境中實現強勁的相對業績。

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

接線員，這樣我們就可以開始提問了。

(Operator Instructions) Alexander Goldfarb, Piper Sandler.

（操作員指示）亞歷山大·戈德法布、派珀·桑德勒。

Dave, I have a few questions here. The first one, though, I was interested, I think if I heard you correctly, you said Savannah was the hardest hit hotel in the quarter. And I can understand Arlington and Laurel given DOGE. But can you just talk a little bit more about Savannah. Maybe there's more government there than I thought. But that comment stuck out to me for why that hotel would have been the hardest hit, again, if I heard you correctly.

戴夫，我有幾個問題。不過，第一個問題我很感興趣，如果我沒聽錯的話，您說薩凡納是本季受災最嚴重的飯店。我可以理解阿靈頓和勞雷爾給予 DOGE。但是您能否再多談一點有關薩凡納的事情呢？也許那裡的政府比我想像的還要強大。但如果我沒聽錯的話，那則評論讓我印象深刻，因為那家旅館再次受到最嚴重的打擊。

Well, I don't think I said it was a hardest hit, it had some outsized negative impact. The quarterly RevPAR was down significantly in the market. Part of it was transient travel was off. And we do have -- surprisingly, there is a lot of government business that was impacted by the DOGE-related activities in the quarter. And Scott, you got anything to add?

嗯，我認為我並沒有說這是最嚴重的打擊，而是說它產生了一些巨大的負面影響。本季市場平均每間可用客房收入 (RevPAR) 大幅下降。部分原因是短暫的旅行被取消了。令人驚訝的是，本季有許多政府業務受到了 DOGE 相關活動的影響。史考特，你還有什麼要補充的嗎？

Yes. I mean that's -- it's twofold. Again, I think leisure travel in Savannah has reached a crest of a bit. I think we've really seen a tremendous growth from leisure segment there over the past 5 years and then we've topped out for at least for the time being. But on the group side, as Dave mentioned, I think we've been a bit surprised by as the DOGE cuts have really unfolded, it's how far that money goes and the type of group business that we typically book at hotels outside of D.C. MSA that benefit from government-related funding.

是的。我的意思是──它有雙重意義。再次，我認為薩凡納的休閒旅遊已經達到了頂峰。我認為，在過去 5 年裡，我們確實看到了休閒領域的巨大成長，並且至少目前我們已經達到頂峰。但在團體方面，正如戴夫所提到的，我認為我們對 DOGE 削減的真正展開感到有些驚訝，這筆錢的用途以及我們通常在華盛頓 MSA 以外的酒店預訂的團體業務類型受益於政府相關資金。

So Savannah and Atlanta, I think, as we mentioned, and Jacksonville as well. We're seeing group cancellations or just a pullback in certain groups lead that ultimately are related to government funding that you wouldn't traditionally expect to be government-related business. I think of association -- education associations, those type of things that you don't immediately think of as a government group but ultimately get their funding from the government.

正如我們所提到的，我認為薩凡納和亞特蘭大也是如此，傑克遜維爾也是如此。我們看到一些團體取消了訂單，或者只是某些團體的領先地位有所下降，這些訂單最終都與政府資助有關，而傳統上你不會認為這些是與政府相關的業務。我想到的是協會——教育協會，這類組織你不會立即想到是政府團體，但最終卻從政府獲得資金。

Okay. And maybe along that line, again, this is all sort of learning more about the portfolio and the reach of government. What percent of your -- as you look at your portfolio, what percent is government? Is it like 20%, 30%, 10%, like what -- if we had to break out your portfolio between government, group business and transient, what would be the mix between those 3 segments?

好的。也許沿著這個思路，這一切都是為了更了解政府的投資組合和影響力。在您的投資組合中，政府佔了多大比例？是 20%、30% 還是 10%？如果我們必須將您的投資組合分為政府、團體業務和臨時業務，那麼這三個部分之間的比例會是怎麼樣的？

Yes, Alex. I mean, I don't want to give you a firm number because again, it's -- we would traditionally have a firm government group number that I could probably tell you, but what we're seeing -- and that's probably in the high single digits, low double -- probably high single digits, I would guess, again, mainly focused on those D.C. hotels, that is truly government group-related business and then a little bit throughout the rest of the portfolio.

是的，亞歷克斯。我的意思是，我不想給你一個確切的數字，因為再說一次，我們傳統上會有一個確切的政府集團數字，我可能會告訴你，但我們看到的是，這可能是高個位數，低兩位數——可能是高個位數，我猜，再次，主要集中在那些華盛頓特區的酒店，這是真正的政府集團相關業務，然後是其餘部分的投資組合。

What we're seeing now are our group bookings that again, nobody would ever tie them directly to the government, and they aren't officially government tied, just the funding. The way the fund has been coming through the government and have been restricted, you've just seen a pullback in near-term booking pace or lead generation.

我們現在看到的是，我們的團體預訂，沒有人會將他們直接與政府聯繫起來，他們也沒有正式與政府掛鉤，只是資金而已。由於資金透過政府獲得的方式受到限制，您剛剛看到短期預訂速度或潛在客戶生成的回落。

So again, I don't think it's necessarily people have gotten their fund cut. It's -- they are groups that I think are hesitant to proceed forward until they have a clear picture on what all funding they're going to be getting on the foreseeable future.

所以，我再說一遍，我認為這不一定是人們的資金被削減了。我認為，這些團體在清楚了解可預見的未來他們將獲得哪些資金之前，不會輕易採取行動。

Yes, Alex, the -- I mean it's like having a private consulting firm that books -- has a group booking at a hotel, but all of its revenues come from the federal government. So when they have a pullback, then that corporate account cancels its booking, but it's all ultimately tied to the government, but it's kind of difficult to disaggregate all that and give you a percentage number.

是的，亞歷克斯，這就像一個私人諮詢公司，負責酒店的團體預訂，但其所有收入都來自聯邦政府。因此，當他們撤回資金時，該公司帳戶就會取消其預訂，但最終都與政府掛鉤，但將所有這些分解並給出一個百分比數字有點困難。

Yes. And I think the final piece on there, again, we're not really seeing cancellations per se. It's been either groups that follow through at the meeting, but are more hesitant to overspend on banquet and catering like they traditionally done. I think that's -- we saw a lot of that impact in Savannah on a year-over-year basis. We had a lot of groups in-house.

是的。我認為最後一點是，我們實際上並沒有看到取消的情況。要嘛是那些在會議上堅持到底的團體，但更不願意像傳統一樣在宴會和餐飲上花費過多。我認為——我們在薩凡納看到了逐年增加的影響。我們內部有很多團體。

Last year, they bought the kitchen sink in terms of banquet and catering amenities. This year, they spent less because they weren't sure what their full funding outlook looks like or the lead generation has just temporarily stalled for kind of in the year, for the year bookings. And I think that's certainly a temporary impact that's going to spur back up here.

去年，他們購買了宴會和餐飲設施的全部設備。今年，他們支出較少，因為他們不確定他們的整體融資前景如何，或者今年的潛在客戶生成暫時停滯，或者全年預訂量停滯。我認為這肯定只是暫時的影響，但很快就會再次刺激經濟。

And then your guidance reduction, that reflects further government-related pullback? Or you think that this level where you're at in the second quarter is the new level?

那麼，您的指導減少是否反映了與政府相關的進一步撤資？或者您認為第二季的水平是新的水平？

From a revenue perspective, that reflects our most recent forecast for the entire year. So we've reforecasted the entire portfolio for the balance of the year with all the trends that we're currently seeing both on group and leisure side of the equation. And that's -- I think that's our best outlook based on the trends we're currently seeing.

從收入角度來看，這反映了我們對全年的最新預測。因此，我們根據目前在團體和休閒方面看到的所有趨勢，重新預測了今年剩餘時間的整個投資組合。我認為，根據我們目前看到的趨勢，這是我們最好的展望。

But directionally, Scott, you think between government group and leisure, do you think that they'll maintain second quarter that sort of annualized pace or you're expecting further declines across all 3, maybe just government? I'm just trying to get a little bit sort of like Thomas' milks and crannies. I'm just trying to get the little Nooks & Crannies on those three different buckets for the balance of the year.

但是從方向上看，斯科特，您認為政府集團和休閒集團之間，您是否認為他們會在第二季度保持這種年化速度，或者您預計這三個行業都會進一步下降，也許只是政府行業？我只是想有點像湯瑪斯的牛奶和縫隙。我只是想在今年剩下的時間裡，將小角落和縫隙放在這三個不同的桶子裡。

Yes. We're not expecting further pullback necessarily. We actually have pretty solid group bookings for the back half of the year. So we're seeing some growth from a group perspective for the back half of the year on a year-over-year basis.

是的。我們並不認為會出現進一步的回調。事實上，我們下半年的團體預訂量相當可觀。因此，從集團角度來看，我們看到今年下半年與去年同期相比有所成長。

And what about leisure and government?

那麼休閒和政府又如何呢？

And government, I think, is -- again, it's declined, and we're -- we assume it's going to kind of stay steady state going forward for the balance of the year until things unlock and leisure is a market-by-market analysis. But we're not expecting that to further grow beyond what we've seen thus far.

我認為，政府——再次，它已經下降了，我們——我們假設它將在今年餘下的時間裡保持穩定狀態，直到事情解開，休閒是一個逐個市場的分析。但我們並不認為其會進一步超出我們目前所見的水平。

Okay. So really group, you expect to rebound?

好的。那麼，您預期真集團會反彈嗎？

That's right. Second quarter, unfortunately, was a step backwards on a year-over-year basis for group. We expect that to be a step forward on a year-over-year basis for the second half of the year based on the bookings we have on -- you know, revenue we have on the book.

這是正確的。不幸的是，第二季度集團的業績與去年同期相比出現了倒退。根據我們的預訂情況，我們預計下半年的預訂收入將比去年同期有所進步。

Okay. Perfect. And then going on sources of capital. Obviously, you announced the parking garage at Georgian Terrace, are there other asset sales planned whether it's perhaps a hotel, but more likely another type of parking lot or something that's tangential to a hotel that you may be able to sell.

好的。完美的。然後討論資金來源。顯然，您宣布了喬治亞露台的停車場，是否有其他資產出售計劃，無論是酒店，但更有可能是另一種類型的停車場或與酒店相關的東西，您可能可以出售。

Yes. There are options that we are always looking at. So the parking garage in Atlanta is a good example of an option like that, but also, we have a lot of equity in some of our hotels that also we can tap into and we plan to tap into for refinancing to raise liquidity.

是的。我們一直在考慮一些選擇。因此，亞特蘭大的停車場就是一個很好的例子，而且，我們在一些酒店中擁有大量股權，我們也可以利用這些股權，我們計劃利用這些股權進行再融資以提高流動性。

But there are things here and there, whether it's a parking garage or a parking lot in various hotels or sale of assets may be online if that's necessary for the company, although we certainly don't want to do that.

但有些事情是可以在網路上進行的，無論是停車場還是各個飯店的停車場，或是資產的出售，如果公司有必要的話，雖然我們當然不想這樣做。

Okay. And then just final question. I appreciate your time. In other property sectors, even like office, we're seeing the mortgage market come back for office, not all office, but obviously, if it's a good quality asset. Presumably, hotels have fully recovered since the pandemic, why is the mortgage market for hotels still challenged?

好的。接下來是最後一個問題。感謝您抽出時間。在其他房地產領域，甚至像辦公大樓，我們看到辦公大樓抵押貸款市場正在復蘇，雖然不是所有辦公大樓，但顯然，如果它是一項優質資產。想必疫情過後飯店業全面復甦，為何飯店房貸市場仍面臨挑戰？

Is it that the lenders still don't view the industry as recovered? Or was it just LTVs back in the day were still meaningfully higher than where terms are today? I'm just trying to get a better sense for why the hotels would still be challenged in the debt markets.

是不是貸款方仍然不認為該行業已經復甦？或者只是過去的 LTV 仍然明顯高於今天的水平？我只是想更好地理解為什麼酒店在債務市場上仍然面臨挑戰。

Alex, we look at that all the time and lenders, whether they are conduit lenders or insurance companies or banks, debt yields are still stubbornly high, at least compared to the debt yield climate that existed before the pandemic. So there are still several hundred bases of variance between the underwriting that occurred prior to the pandemic and what we're seeing now.

亞歷克斯，我們一直在關注這個問題，貸款機構，無論是管道貸款機構、保險公司還是銀行，債務收益率仍然居高不下，至少與疫情爆發前的債務收益率環境相比是如此。因此，疫情爆發前的承保情況與我們現在看到的承保情況之間仍然存在數百個差異。

Interest rates, obviously, are elevated, but they have come in, and we expect them to come in further and debt service coverage ratios and covenants are simply a lot tougher than they used to be, and it's the lenders caution that creates that environment. So you add up all of those various factors, and the lodging industry is still either not in favor with the lending community or just having to recover from a more buoyant lending environment that occurred five or six years ago.

顯然，利率已經上升，但已經進入了下行通道，我們預計利率還會進一步上升，債務償還率和契約要求也比以前嚴格得多，而貸款人的謹慎態度才造成了這種環境。因此，將所有這些因素加起來，住宿業要么仍然不受貸款界青睞，要么只是需要從五到六年前更活躍的貸款環境中恢復過來。

So I think the -- we're seeing cracks there that you're seeing debt service coverage ratios ease in underwriting, we're underwriting a lot of properties right now. We're seeing debt yields stop rising. So they're seeing some stabilization there, and we're seeing rates come in. So I think things, as I mentioned in my prepared remarks, we're seeing the climate alter to the better, at least for lodging borrowers, and we think that will continue.

所以我認為——我們看到了裂縫，你看到承保中的債務償還率下降，我們現在正在承保很多房產。我們看到債務收益率停止上升。因此他們看到那裡出現了一些穩定跡象，我們也看到利率正在回升。因此，我認為，正如我在準備好的發言中提到的那樣，我們看到環境正在向好的方向轉變，至少對於住宿借款人來說是這樣，而且我們認為這種情況將會持續下去。

(Operator Instructions)

（操作員指示）

We currently have no further questions. So I'd like to hand back to David Folsom for any further remarks.

目前我們沒有其他問題。因此，我想將發言權交還給大衛·福爾瑟姆，請他發表進一步的評論。

Thank you, operator, and thank you for everyone who dialed in today, and I wish everybody have a good day, and we'll talk to you next quarter.

謝謝接線員，也謝謝今天撥入電話的所有人，祝大家有個愉快的一天，我們下個季度再聊。

As we conclude today's call, we'd like to thank everyone for joining. You may disconnect your lines.

在今天的電話會議結束時，我們要感謝大家的加入。您可以斷開線路。