Service Properties Trust (SVC) 2022 Q4 法說會逐字稿

Good morning, and welcome to the Service Properties Trust Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions)

早上好，歡迎來到 Service Properties Trust 2022 年第四季度收益電話會議。 （操作員說明）

I would now like to turn the conference over to Mr. Stephen Colbert, Director of Investor Relations. Please go ahead, sir.

我現在想將會議轉交給投資者關係總監斯蒂芬科爾伯特先生。請繼續，先生。

Good morning. Joining me on today's call are Todd Hargreaves, President and Chief Investment Officer; and Brian Donley, Treasurer and Chief Financial Officer. Today's call includes a presentation by management followed by a question-and-answer session with analysts. Please note that the recording, retransmission and transcription of today's conference call is prohibited without the prior written consent of SVC.

早上好。與我一起參加今天電話會議的還有總裁兼首席投資官 Todd Hargreaves；財務主管兼首席財務官 Brian Donley。今天的電話會議包括管理層的介紹，然後是與分析師的問答環節。請注意，未經 SVC 事先書面同意，禁止對今天的電話會議進行錄音、轉播和轉錄。

I'd like to point out that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on SVC's present beliefs and expectations as of today, March 1, 2023. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call other than as required by law.

我想指出，今天的電話會議包含 1995 年《私人證券訴訟改革法案》和其他證券法含義內的前瞻性陳述。這些前瞻性陳述基於 SVC 截至 2023 年 3 月 1 日的當前信念和預期。公司不承擔修改或公開發布對今天電話會議中前瞻性陳述的任何修改結果的義務，除非根據法律要求。

In addition, this call may contain non-GAAP financial measures, including normalized funds from operations, or normalized FFO, and adjusted EBITDAre. Reconciliations of these non-GAAP financial measures to net income as well as components to calculate AFFO are available in our supplemental package found in the Investor Relations section of the company's website. Actual results may differ materially from those projected in these forward-looking statements. Additional information concerning factors that could cause those differences is contained in our Form 10-K on file with the SEC and in our supplemental operating and financial data found on our website at www.svcreit.com.

此外，本次電話會議可能包含非 GAAP 財務措施，包括正常化運營資金或正常化 FFO 以及調整後的 EBITDAre。這些非 GAAP 財務指標與淨收入的對賬以及計算 AFFO 的組成部分可在公司網站投資者關係部分的補充包中找到。實際結果可能與這些前瞻性陳述中預測的結果存在重大差異。有關可能導致這些差異的因素的更多信息包含在我們向美國證券交易委員會備案的 10-K 表格以及我們網站 www.svcreit.com 上的補充運營和財務數據中。

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

有了這個，我會把電話轉給托德。

Thank you, Stephen, and good morning. Our fourth quarter results are highlighted by the ongoing improvement in our hotel portfolio as comparable hotel RevPAR increased by 21.4% versus the prior year period, with ADR up 14.5% and occupancy increasing by 3.3 percentage points, leading to a 98.3% increase in comparable hotel EBITDA over the same period last year.

謝謝你，斯蒂芬，早上好。我們的酒店組合的持續改善突出了我們第四季度的業績，可比酒店 RevPAR 比去年同期增長 21.4%，ADR 增長 14.5%，入住率增長 3.3 個百分點，導致可比酒店增長 98.3% EBITDA 為去年同期。

The continued recovery of SVC's urban full-service and suburban select service hotels contributed to the improvement as travel maintained its pace of recovery, consistent with typical seasonality and business-related travel reflected more in-person engagements. Combined with the steady performance of our leisure and extended stay hotels, room rates again surpassed 2019 figures in the fourth quarter.

SVC 的城市全方位服務酒店和郊區精選服務酒店的持續復甦促進了改善，因為旅行保持了復甦的步伐，與典型的季節性和商務相關旅行反映了更多的親自參與。結合我們的休閒和長住酒店的穩定表現，房價在第四季度再次超過 2019 年的數字。

Notably, our full-service portfolio RevPAR for the quarter increased by 31.1% from 2021 levels, largely driven through ADR increases in many of our leisure and urban hotels. Our hotels in Fort Lauderdale, Hilton Head, Chicago, Miami and Kauai led the strong performance of our full-service segment, which achieved aggregate ADR of $174.48 during the quarter, 14.5% above 2021 fourth quarter levels.

值得注意的是，我們本季度的全方位服務組合 RevPAR 比 2021 年的水平增長了 31.1%，這主要是由於我們許多休閒和城市酒店的 ADR 增加所致。我們位於勞德代爾堡、希爾頓黑德、芝加哥、邁阿密和考艾島的酒店引領了我們全方位服務部門的強勁表現，該部門在本季度實現了 174.48 美元的總 ADR，比 2021 年第四季度的水平高出 14.5%。

While the overall performance of our select service portfolio remains behind our other service levels, we are encouraged that Q4 RevPAR of our scaled-down post-disposition portfolio of 45 Sonesta Select branded hotels, improved 25% versus the same quarter last year, outpacing any other SVC-focused service brand and 8.7 percentage points above total nationwide industry growth.

雖然我們精選服務組合的整體表現仍落後於我們的其他服務水平，但令我們感到鼓舞的是，我們縮減規模的 45 家 Sonesta Select 品牌酒店處置後投資組合的第四季度 RevPAR 與去年同期相比提高了 25%，超過了任何其他以 SVC 為重點的服務品牌，比全國行業總增長率高出 8.7 個百分點。

In terms of segmentation, group mix was 16.6% in the fourth quarter, up from 12% during the previous year quarter and above 2019 levels of 14.5%. This increase was broadly attributable to increased demand for corporate, association and citywide group business, particularly in Philadelphia, New Orleans and Houston. Revenues as a percentage of total room revenue for the more costly OTA channels decreased from 30.8% in Q4 2021 to 26.4% in Q4 2022.

在細分方面，第四季度集團組合為 16.6%，高於去年同期的 12%，高於 2019 年 14.5% 的水平。這一增長主要歸因於對企業、協會和全市集團業務的需求增加，特別是在費城、新奧爾良和休斯頓。成本較高的 OTA 渠道的收入佔客房總收入的百分比從 2021 年第四季度的 30.8% 下降到 2022 年第四季度的 26.4%。

Inflationary pressures seen across the economy are continuing to impact hotel-level operating expenses related to utilities, insurance and specifically labor. Our operators remain focused on reducing the reliance on more expensive, less efficient contract labor and increasing permanent staffing levels, measures which we will -- expect will result in helping to offset some of these labor cost pressures during 2023.

整個經濟體的通脹壓力繼續影響與公用事業、保險和特別是勞動力相關的酒店層面的運營支出。我們的運營商仍然專注於減少對更昂貴、效率更低的合同工的依賴，並增加永久性員工數量，我們將——預計這些措施將有助於抵消 2023 年的部分勞動力成本壓力。

Our largest hotel operator, Sonesta, continues to establish itself as a leader in the North American lodging sector, and we expect SVC to benefit as it increases its brand awareness with national corporations as well as business and leisure travelers. Sonesta recently launched a multimillion-dollar advertising campaign, and this loyalty program is gaining momentum with Travel Pass revenues as a percent of total revenue increasing from 13.6% in 2021 to 21.2% in 2022. Travel Pass ADR increased 22.1% year-over-year and room nights nearly doubled over the same time frame.

我們最大的酒店運營商 Sonesta 繼續確立自己在北美住宿行業的領先地位，我們預計 SVC 將受益，因為它提高了在全國性公司以及商務和休閒旅客中的品牌知名度。 Sonesta 最近發起了一項耗資數百萬美元的廣告活動，隨著 Travel Pass 收入佔總收入的百分比從 2021 年的 13.6% 增加到 2022 年的 21.2%，這項忠誠度計劃正在獲得發展勢頭。Travel Pass ADR 同比增長 22.1%在同一時間段內，房間夜數幾乎翻了一番。

As referenced earlier, looking at the bottom line, SVC's Q4 hotel EBITDA increased by 98.3% year-over-year, largely a result of the performance of some of SVC's premier destination hotels in what we view as some of our flagship lodging assets. Our Royal Sonestas in Kauai, Boston, Chicago Downtown and New Orleans, all of which contributed heavily to SVC's year-over-year EBITDA improvement.

如前所述，從底線來看，SVC 的第四季度酒店 EBITDA 同比增長 98.3%，這主要是由於 SVC 的一些主要目的地酒店在我們視為我們的一些旗艦住宿資產中的表現。我們在考艾島、波士頓、芝加哥市中心和新奧爾良的 Royal Sonestas，所有這些都為 SVC 的 EBITDA 同比增長做出了重大貢獻。

Turning to our net lease portfolio, which represents 45% of SVC's portfolio by gross assets. As of December 31, 2022, we owned 765 service-oriented retail net lease properties, including our travel centers, with 13.4 million square feet. Our net lease assets were 98% leased by 180 tenants with a weighted average lease term of 9.6 years and operating under 138 brands in 21 distinct industries as of quarter end. The aggregate coverage of our net lease portfolio's minimum rents was 3.0x on a trailing 12-month basis as of December 31, 2022, an increase versus the same period last year and an improvement from 2.88x in the third quarter.

轉向我們的淨租賃組合，按總資產佔 SVC 組合的 45%。截至 2022 年 12 月 31 日，我們擁有 765 個服務型零售淨租賃物業，包括我們的旅遊中心，面積為 1340 萬平方英尺。截至本季度末，我們 98% 的淨租賃資產由 180 個租戶出租，加權平均租期為 9.6 年，在 21 個不同行業的 138 個品牌下運營。截至 2022 年 12 月 31 日，我們的淨租賃組合最低租金的總覆蓋率為過去 12 個月的 3.0 倍，比去年同期有所增加，比第三季度的 2.88 倍有所改善。

For TA, our largest tenant, site level coverage on a trailing 12-month basis was 2.74x, up from 2.4x last quarter, and TA reported another extremely strong quarter last night. We have 271,000 square feet of leases expiring in 2023, representing only 0.6% of our net lease rents. This includes 5 tenants across multiple properties known to be vacating, representing $732,000 of annual revenue. We are evaluating various options for the known vacates, which includes re-leasing, redevelopment and marketing for sale.

對於我們最大的租戶 TA，過去 12 個月的站點級覆蓋率為 2.74 倍，高於上一季度的 2.4 倍，昨晚 TA 報告了另一個非常強勁的季度。我們有 271,000 平方英尺的租約將於 2023 年到期，僅占我們淨租賃租金的 0.6%。這包括 5 名租戶，分佈在多個已知即將搬離的房產中，年收入為 732,000 美元。我們正在評估已知空置的各種選擇，包括重新租賃、重新開發和營銷銷售。

As announced last month, the acquisition of TA by BP upon completion will be extremely positive for SVC as the revised lease agreements we negotiated will not only provide $379.3 million in upfront funds, but will also significantly enhance the credit quality of our core travel center tenant, providing long-term investment-grade cash flows with fixed increases that we expect will result in a meaningful increase to FFO from prior levels.

正如上個月宣布的那樣，BP 完成對 TA 的收購將對 SVC 極為有利，因為我們談判達成的修訂後的租賃協議不僅將提供 3.793 億美元的前期資金，還將顯著提高我們核心旅遊中心租戶的信用質量，提供固定增長的長期投資級現金流，我們預計這將導致 FFO 較之前水平顯著增加。

Before turning it over to Brian, as we have now wrapped up the fourth quarter and moved on to 2023, I would like to take a minute to summarize some of the accomplishments SVC achieved during 2022 in the early part of 2023. We substantially completed the disposition of approximately 20% of our hotel portfolio in an extremely challenging market to sell properties at our targeted pricing, helping to reduce leverage and improving the overall quality of the portfolio in the process. We improved the overall performance of our hotel portfolio and returned to the necessary levels to regain compliance with their debt covenants earlier than originally anticipated. Overall, we repaid $1.5 billion of debt in 2022. We reinstated a meaningful dividend to shareholders.

在將它交給 Brian 之前，由於我們現在已經結束了第四季度並進入了 2023 年，我想花一點時間來總結一下 SVC 在 2022 年和 2023 年初取得的一些成就。我們基本上完成了在極具挑戰性的市場中處置我們約 20% 的酒店組合，以我們的目標定價出售物業，有助於在此過程中降低杠桿率並提高投資組合的整體質量。我們改善了酒店組合的整體表現，並恢復到必要的水平，以比原先預期更早地重新遵守他們的債務契約。總體而言，我們在 2022 年償還了 15 億美元的債務。我們恢復了對股東的有意義的股息。

Our largest hotel operator, Sonesta, continued to establish itself as a leading hotel brand, expanding into New York through its acquisition of 4 hotels with over 900 keys. We successfully completed a secured financing, monetizing some of our net lease portfolio and retiring our June 2023 debt maturities. Finally, we recently came to an agreement regarding the amendment of our travel center leases in connection with BP's announced acquisition of TA, which, once completed, will provide an improved tenant credit profile and additional liquidity.

我們最大的酒店運營商 Sonesta 繼續確立自己作為領先酒店品牌的地位，通過收購擁有 900 多間客房的 4 家酒店將業務擴展到紐約。我們成功完成了擔保融資，將我們的一些淨租賃組合貨幣化，並償還了 2023 年 6 月到期的債務。最後，我們最近就與 BP 宣布收購 TA 相關的旅遊中心租約修訂達成協議，一旦完成，將提供更好的租戶信用狀況和額外的流動性。

I will now turn the call over to Brian to discuss our financial results in more detail.

我現在將把電話轉給布賴恩，更詳細地討論我們的財務業績。

Thanks, Todd, and good morning. Starting with our consolidated financial results for the fourth quarter of 2022, normalized FFO was $73.3 million or $0.44 per share, a 162% increase over the prior year quarter.

謝謝，托德，早上好。從我們 2022 年第四季度的綜合財務業績開始，標準化 FFO 為 7330 萬美元或每股 0.44 美元，比去年同期增長 162%。

Adjusted EBITDAre was $150.5 million for this quarter, a 26.5% increase over the prior year quarter. The major drivers impacting normalized FFO over the prior year quarter included the improving performance of our hotel portfolio, which generated an additional $25.7 million of hotel EBITDA or a 90% increase over the prior year quarter. A repayment of $500 million of senior notes in the second quarter and repaying the remaining balance on our revolving credit facility, which was fully drawn as of year-end 2021, resulted in a $14.6 million decline in interest expense.

本季度調整後的 EBITDAre 為 1.505 億美元，比去年同期增長 26.5%。影響上一季度正常化 FFO 的主要驅動因素包括我們酒店組合業績的改善，這產生了額外的 2570 萬美元的酒店 EBITDA，比上一季度增長了 90%。第二季度償還了 5 億美元的優先票據，並償還了截至 2021 年底已全部提取的循環信貸額度的剩餘餘額，導致利息支出減少 1,460 萬美元。

G&A expense declined $3.9 million over the prior year as a result of a $2.4 million decline in business management fees and a $1.5 million decrease in legal and other corporate expenses.

由於業務管理費用減少 240 萬美元以及法律和其他公司費用減少 150 萬美元，G&A 費用比上一年減少了 390 萬美元。

Turning to the performance of our hotel portfolio. For our 236 comparable hotels this quarter, RevPAR increased 21.4%, gross operating profit margin percentage increased by 4.1 percentage points to 28.4%, and gross operating profit increased by $31.6 million from the prior year period. Below the GOP line costs at our comparable hotels increased $4.4 million from the prior year as a result of increased management fees driven by higher revenues at our hotels and an increase in insurance costs.

談到我們酒店組合的表現。對於我們本季度的 236 家可比酒店，RevPAR 增長了 21.4%，營業毛利率百分比增加了 4.1 個百分點，達到 28.4%，營業利潤總額比去年同期增加了 3160 萬美元。由於我們酒店收入增加和保險成本增加導致管理費增加，我們可比酒店低於 GOP 線的成本比上一年增加了 440 萬美元。

Our consolidated portfolio of 238 hotels generated hotel EBITDA of $54 million, resulting in a net margin of 15.4%. By service level, the increases were driven primarily by improvement in our 49 full-service hotels, which generated $26 million of hotel EBITDA during the quarter compared to just $2.7 million in the prior year quarter. Our 114 extended stay hotels remained steady generating $21 million of hotel EBITDA during the quarter. Our 75 select service hotels improved generating hotel EBITDA of $7 million in the fourth quarter, an increase of $3.7 million compared to the prior year period.

我們 238 家酒店的綜合投資組合產生了 5400 萬美元的酒店 EBITDA，淨利潤率為 15.4%。按服務水平劃分，增長的主要原因是我們 49 家全方位服務酒店的改善，本季度產生了 2600 萬美元的酒店 EBITDA，而去年同期僅為 270 萬美元。我們的 114 家長住酒店在本季度保持穩定，產生了 2100 萬美元的酒店 EBITDA。我們的 75 家精選服務酒店第四季度的酒店 EBITDA 增加了 700 萬美元，比去年同期增加了 370 萬美元。

The fourth quarter results of our hotels were generally in line with our expectations as we entered seasonally weaker months for the portfolio. January 2023 RevPAR was $65.53 and, as we look to the rest of the first quarter, we're currently projecting full quarter Q1 RevPAR of $70 to $80 and hotel EBITDA projected to be in the $28 million to $35 million range.

我們酒店的第四季度業績總體上符合我們的預期，因為我們進入了投資組合的季節性疲軟月份。 2023 年 1 月的 RevPAR 為 65.53 美元，展望第一季度的剩餘時間，我們目前預計整個季度第一季度的 RevPAR 為 70 至 80 美元，酒店 EBITDA 預計在 2800 萬至 3500 萬美元之間。

Turning to the balance sheet. Earlier this month, we successfully executed on a new 5-year $610.2 million secured financing with a 5.6% coupon and have provided notice that we will redeem our $500 million of 4.5% senior notes that were originally scheduled to mature in June. Pro forma for these transactions, we have $5.8 billion of fixed rate debt with a weighted average interest rate of 5.1%. Our next debt maturity is $350 million of senior notes maturing in March 2024. We currently have no amounts outstanding on our revolving credit facility, which matures in July of 2023. We have begun discussions with our lenders on a new credit agreement and currently expect the process to recast the line to be completed in the coming months.

轉向資產負債表。本月早些時候，我們成功執行了一項新的 5 年期 6.102 億美元的擔保融資，息票率為 5.6%，並通知我們將贖回原定於 6 月到期的 5 億美元的 4.5% 優先票據。對於這些交易，我們有 58 億美元的固定利率債務，加權平均利率為 5.1%。我們的下一個債務到期日是 2024 年 3 月到期的 3.5 億美元優先票據。我們的循環信貸額度目前沒有未償還金額，該額度將於 2023 年 7 月到期。我們已經開始與我們的貸方就新的信貸協議進行討論，目前預計重鑄生產線的過程將在未來幾個月內完成。

Turning to investing activity. During the fourth quarter, we sold 4 hotels for a total price of 25.8 and 2 net lease properties for $2.3 million. We have sold 8 hotels since year-end for proceeds of $53.3 million, and we are currently under agreement to sell 10 additional hotels for a combined sales price of $103.1 million, which we expect to close by the end of the first quarter. We made $36.8 million of capital improvements at our properties during the fourth quarter, and we currently expect full year 2023 capital expenditures of $200 million to $250 million.

轉向投資活動。第四季度，我們以 25.8 美元的總價出售了 4 家酒店，並以 230 萬美元的價格出售了 2 家淨租賃物業。自年底以來，我們已出售 8 家酒店，收益為 5330 萬美元，目前我們還同意以 1.031 億美元的總售價出售另外 10 家酒店，我們預計將在第一季度末完成。我們在第四季度對我們的物業進行了 3680 萬美元的資本改善，我們目前預計 2023 年全年的資本支出為 2 億至 2.5 億美元。

Regarding our recent TA announcement, our leases with TA currently require a fixed minimum rent of $243 million over the life of the leases and require a percentage rent on nonfuel revenues, which totaled $10.6 million in 2022. Rents under the amended 10-year term will be set at $254 million with 2% fixed rent increases annually. BP will prepay $188 million of rent and will receive credits of $25 million per year against rents due.

關於我們最近的 TA 公告，我們與 TA 的租約目前要求在租約期限內固定最低租金為 2.43 億美元，並要求非燃料收入的一定百分比租金，到 2022 年總計為 1060 萬美元。修訂後的 10 年期限內的租金將定為 2.54 億美元，租金每年固定增長 2%。 BP 將預付 1.88 億美元的租金，並將每年獲得 2500 萬美元的應付租金抵免額。

In addition to the rent growth we have secured as part of this deal, the transaction will provide SVC $379.3 million of additional liquidity upon closing, including $101.9 million for the TA common shares SVC owns, $89.4 million for the sale of the TA brands to be paid and the $188 million of prepaid rents. We expect the transaction will increase the value of our largest portfolio, which represents 64.8% of our net lease segment and 29.3% of our overall portfolio. Our leases with TA will be backed by BP, which will provide a significant credit enhancement to our tenant base and give us additional financial flexibility going forward.

除了我們作為該交易的一部分獲得的租金增長外，該交易還將在交易結束時為 SVC 提供 3.793 億美元的額外流動性，其中包括 SVC 擁有的 TA 普通股的 1.019 億美元，用於出售 TA 品牌的 8940 萬美元支付和 1.88 億美元的預付租金。我們預計該交易將增加我們最大投資組合的價值，該投資組合占我們淨租賃業務的 64.8% 和我們整體投資組合的 29.3%。我們與 TA 的租賃將得到 BP 的支持，這將為我們的租戶基礎提供顯著的信用增強，並為我們提供額外的財務靈活性。

That concludes our prepared remarks. We're ready to open the line up for questions. Thank you.

我們準備好的發言到此結束。我們準備好開始排隊提問了。謝謝。

(Operator Instructions) And the first question will come from Bryan Maher with B. Riley Securities.

（操作員說明）第一個問題將來自 B. Riley Securities 的 Bryan Maher。

Just a couple for me. On the asset securitization that you just completed, can you share with us which types of assets you pledged on that? Was it hotels? Was it TAs? Was it net lease? How should we think about that? And going forward, if you use that same structure for your 2024s and your 2025s, do you tend to get a better rate on those depending upon which assets you pledge?

對我來說只是一對。關於您剛剛完成的資產證券化，能否介紹一下您在其中質押了哪些資產？是酒店嗎？是助教嗎？是淨租賃嗎？我們應該如何考慮？展望未來，如果您對 2024 年和 2025 年使用相同的結構，您是否傾向於根據您抵押的資產獲得更好的利率？

Thanks, Bryan. I'll take that one. So, as far as the assets pledged, it was a mix and cross-section of the entire net lease segment, excluding travel centers, and there were no hotels in that deal. It was all single-tenant net lease properties with a significant concentration of quick service restaurants, fitness centers, auto change, [oil] repair shops and that kind of thing. So, really a good cross-section of what we have in the portfolio. As far as going forward, our preference would still be to tap unsecured debt, but the ability to use securitization of the portfolio has been demonstrated and it's something we'll continue to compare and contrast based on market conditions and what we see in rates and spreads in the debt markets.

謝謝，布萊恩。我會拿那個。因此，就抵押資產而言，它是整個淨租賃部分的混合和橫截面，不包括旅遊中心，而且該交易中沒有酒店。這都是單一租戶的淨租賃物業，大量集中了快餐店、健身中心、汽車更換、[油] 修理店和諸如此類的東西。因此，這確實是我們投資組合中的一個很好的橫截面。就未來而言，我們的偏好仍然是利用無擔保債務，但利用投資組合證券化的能力已經得到證明，我們將繼續根據市場狀況以及我們在利率和利率方面看到的情況進行比較和對比。債市的利差。

Okay. And in the past, I think maybe a year ago when you came off the first quarter, hotel margins, you provided a bit of an outlook for your expectations for the balance of 2022. Can you share with us what you're thinking about for hotel margins for 2023?

好的。在過去，我想也許一年前當你結束第一季度時，酒店利潤率，你提供了一些關於你對 2022 年剩餘時間的預期的展望。你能和我們分享你的想法嗎？ 2023 年的酒店利潤率？

Yes. I mean, I think, in the prepared remarks, given the outlook for Q1, not for the full year, but we do expect improvement over 2022, and we'll see how the year plays out. But we still think we have room to make up based on the performance starting last year and the ramp-up that really didn't start until Q2 of last year. So, our focus is definitely on the bottom line and improving margins. That's 1 of our primary goals this year is to continue to close the gap from where we were in '19 and get back to where we should be.

是的。我的意思是，我認為，在準備好的發言中，考慮到第一季度的前景，而不是全年的前景，但我們確實預計 2022 年會有所改善，我們將看到這一年的結果。但我們仍然認為，根據去年開始的表現以及直到去年第二季度才真正開始的增長，我們仍有彌補的空間。因此，我們的重點絕對是底線和提高利潤率。這是我們今年的主要目標之一，是繼續縮小與 19 年的差距，回到我們應該達到的水平。

And just 2 more for me. On the hotel dispositions, is that going to continue or are you starting to wind that down? And then lastly, what are your usage thoughts for the $380 million you'll be getting in a few months?

對我來說還有 2 個。關於酒店的配置，這種情況會繼續下去還是你會開始逐漸減少？最後，您對幾個月後將獲得的 3.8 億美元有何使用想法？

Sure. I'll take the first part of the question. So, we are currently wrapping up the current dispositions. We are -- of the original 68 Sonesta branded hotels that we started to market for sale over a year ago now, we've sold 67 of the 68, and we expect the 68th to close this quarter -- later this month. And the 68 Marriott branded hotels, we also expect those to be wrapped up this month. Those -- we're selling to the same buyer group, but we've agreed to close those in 3 phases. So we closed the first 7 last week, and the next 2 phases, we expect will close this month. There's no other hotels in the portfolio that we've identified for sale at this time, but that's something we can consider throughout 2023 as we look at our hotel portfolio and the performance overall, but nothing slated at the current time. And some of that too is just driven. It's a tough time to be selling any types of assets right now. So, it's probably not the right time to sell. But it's certainly an option for us down the road.

當然。我將回答問題的第一部分。因此，我們目前正在結束當前的處置。我們是 - 在我們一年多前開始銷售的最初 68 家 Sonesta 品牌酒店中，我們已經售出 68 家中的 67 家，我們預計第 68 家將在本季度 - 本月晚些時候關閉。以及 68 家萬豪品牌酒店，我們也預計這些酒店將在本月完成。那些——我們正在向同一個買家群體出售產品，但我們同意分三個階段關閉這些產品。所以我們上週關閉了前 7 個階段，接下來的 2 個階段，我們預計將在本月關閉。我們目前還沒有確定投資組合中的其他酒店要出售，但這是我們在整個 2023 年可以考慮的事情，因為我們會審視我們的酒店組合和整體業績，但目前沒有任何計劃。其中一些也只是被驅動。現在是出售任何類型資產的艱難時期。所以，現在可能不是賣出的合適時機。但這肯定是我們未來的一個選擇。

And then, Brian, do you want to...

然後，布賴恩，你想...

Yes. As far as the proceeds and cash we received from the BP deal, it's something we'll continue to discuss with the Board in the coming months. Obviously, we have significant debt maturities coming next year. But whether or not we deploy early or look to invest in opportunistic type investments that could be accretive remains to be seen, but we'll let that play out over the course of the next few quarters.

是的。至於我們從 BP 交易中獲得的收益和現金，我們將在未來幾個月繼續與董事會討論。顯然，明年我們將有大量債務到期。但是，我們是否及早部署或尋求投資於可能增值的機會型投資還有待觀察，但我們將在接下來的幾個季度中發揮作用。

(Operator Instructions) Our next question will come from Tyler Batory with Oppenheimer.

（操作員說明）我們的下一個問題將來自 Tyler Batory 和 Oppenheimer。

First question, a follow-up on the guidance. If I'm doing my math right, it looks like 10% to 12% roughly net margin in terms of Q1, so did I do that math correctly? And just help us think about what margin in Q1 was like pre-pandemic kind of what you're expecting for operating expenses in Q1 in terms of growth year-over-year?

第一個問題，關於指南的跟進。如果我的計算正確，那麼第一季度的淨利潤率大約為 10% 到 12%，那麼我的計算是否正確？並且請幫助我們考慮一下，就同比增長而言，第一季度的利潤率與大流行前一樣，您對第一季度運營費用的預期是什麼？

Yes, so the math you've talked through is roughly correct. We sort of expected January and early February to be weaker, given the seasonality in our portfolio, and it's definitely more so on the occupancy side than the rate side. We expect the portfolio to ramp up fairly quickly as we go into March into early spring. So we'll see that sort of improve in the coming months. As far as expense pressures, I think we're seeing the same thing everybody is seeing with continued pressure on costs, whether it be labor, utilities and other operating costs. But yes, we're still -- from a margin standpoint, we're still lagging where we were in '19, but we expect that gap to close pretty quickly as we move through the later -- in the middle part of the year.

是的，所以你所說的數學大致是正確的。考慮到我們投資組合的季節性，我們預計 1 月和 2 月初會走弱，而且在入住率方面肯定比利率方面更為疲軟。我們預計隨著我們進入三月進入早春，投資組合將迅速增加。因此，我們將在未來幾個月看到這種改善。就支出壓力而言，我認為我們看到的是每個人都看到的同樣的事情，即成本持續受到壓力，無論是勞動力、公用事業和其他運營成本。但是，是的，我們仍然——從利潤率的角度來看，我們仍然落後於 19 年的水平，但我們預計隨著我們進入後期——在今年年中，這種差距會很快縮小.

Okay. Okay. That's great. In terms of the Sonesta branded hotels, you gave some positive commentary, I thought, in the prepared remarks, but a little more perhaps in terms of brand awareness, RevPAR index, just kind of how Sonesta is doing in the marketplace vis-a-vis some of the other brands out there?

好的。好的。那太棒了。就 Sonesta 品牌酒店而言，你在準備好的評論中給出了一些積極的評論，但在品牌知名度、RevPAR 指數方面可能更多一些，就像 Sonesta 在市場上的表現相對於-與其他一些品牌相比？

Sure. Thanks for the question. Yes, I think Sonesta is very focused on increasing the brand awareness, which is obviously critical. And you look back 3, 4 years ago, Sonesta was only 60 hotels. And through the conversion of some of our owned hotels, the acquisition by Sonesta of the Red Lion franchise platform, the launching of the franchise platform for Sonesta-branded hotels, their acquisition of 4 hotels in New York, they're one of the largest hotel brands in North America. So it's certainly very critical for them to increase their brand awareness. In January, they did launch a multimillion-dollar digital marketing campaign. So, we expect to start to see the results from that shortly.

當然。謝謝你的問題。是的，我認為 Sonesta 非常注重提高品牌知名度，這顯然很關鍵。回顧 3、4 年前，Sonesta 只有 60 家酒店。通過部分自有酒店的轉型，Sonesta 收購紅獅特許經營平台，推出 Sonesta 品牌酒店的特許經營平台，收購紐約的 4 家酒店，成為最大的酒店之一北美酒店品牌。因此，提高品牌知名度對他們來說當然非常重要。一月份，他們確實發起了數百萬美元的數字營銷活動。因此，我們希望很快就能看到結果。

And there are some other areas that we're tracking as well. There's a lot more business coming from the Sonesta.com website, and that takes away the bookings from some of the more costly OTA channels. We're seeing an increase in their Travel Pass usage and the percentage of revenues that they get from their loyalty program. So, we are seeing the results. I think there's still a lot of room to go, which is a positive, but we are seeing all the right things happening. With RFPs, they're increasing their RFPs requested in RFP business. So, we are starting to see the results of their push on the brand awareness side.

我們也在跟踪其他一些領域。 Sonesta.com 網站帶來了更多業務，這搶走了一些成本更高的 OTA 渠道的預訂量。我們看到他們的 Travel Pass 使用率和他們從忠誠度計劃中獲得的收入百分比有所增加。所以，我們正在看到結果。我認為還有很大的發展空間，這是積極的，但我們看到所有正確的事情都在發生。通過 RFP，他們正在增加在 RFP 業務中請求的 RFP。因此，我們開始看到他們在品牌知名度方面的努力所取得的成果。

The second part of the question, Sonesta has shown the ability to compete on a number of the brands, the Royal Sonestas, the Simply Suites, which is a relatively new brand, it's the mid-scale extended-stay brand, they're between 90% and 95% of where they were in 2019 from a RevPAR perspective. We're starting to see a lot of the pickup on the more urban full-service hotels as well. It's a similar commentary to last quarter and the previous quarter. It's the select service, the Sonesta Select brand, which is a new brand for them, where they still have the most room to grow. And I think the reason is kind of twofold. Business travel has not come back. But at the same time, I think Sonesta needs to improve upon their ability to take market share in that segment. So -- and again, they are -- I think I said in the prepared remarks, they increased RevPAR 25% year-over-year. So we are seeing the improvement. They still have ways to go, but that's the 1 brand that continues to be the focus where we don't think we're back to where we need to be yet, but we're optimistic there.

問題的第二部分，Sonesta 已經顯示出與許多品牌競爭的能力，Royal Sonestas，Simply Suites，這是一個相對較新的品牌，它是中檔長住品牌，它們介於從 RevPAR 的角度來看，他們在 2019 年的水平分別為 90% 和 95%。我們也開始看到更多城市的全方位服務酒店也有很多人上車。這是與上一季度和上一季度類似的評論。這是精選服務，Sonesta Select 品牌，這對他們來說是一個新品牌，他們仍然有最大的增長空間。我認為原因是雙重的。出差還沒回來。但與此同時，我認為 Sonesta 需要提高他們在該領域佔據市場份額的能力。所以——再一次，他們是——我想我在準備好的評論中說過，他們的 RevPAR 同比增長了 25%。所以我們看到了改進。他們還有很長的路要走，但這是第一個品牌，我們認為我們還沒有回到我們需要的地方，但我們對此持樂觀態度。

Okay. Okay. Great. Last 1 for me, the CapEx guide, $200 million to $250 million is right in line with what we were looking for. Just remind us what's maintenance assumed in that number? And then, kind of what exactly is some of the spending going to be allocated to this year?

好的。好的。偉大的。最後 1 對我來說，資本支出指南，2 億至 2.5 億美元正好符合我們的要求。只是提醒我們這個數字中假設的維護是什麼？然後，今年將分配給哪些支出？

Sure. Yes. So, the maintenance number for our portfolio is roughly $65 million to $75 million for the year. A big part of the spend in '23 will be to renovate our Hyatt portfolio. It's something we had originally slated for 2022 based on cost inflations and scheduling and scoping changes to try to control cost inflation, we push it off to '23. So we're going to do that string of hotels, 1 Radisson hotel and then about a dozen Sonestas across a couple of different other brand segments for next year.

當然。是的。因此，我們投資組合的年度維護費用約為 6500 萬至 7500 萬美元。 23 年的大部分支出將用於翻新我們的凱悅酒店組合。這是我們最初根據成本通脹以及計劃和範圍變化來控製成本通脹而定於 2022 年進行的事情，我們將其推遲到 23 年。所以我們打算在明年做一系列的酒店，1 家 Radisson 酒店，然後是大約 12 家 Sonestas，跨越幾個不同的其他品牌細分市場。

Your next question will come from Dori Kesten with Wells Fargo.

您的下一個問題將來自 Wells Fargo 的 Dori Kesten。

Is there anything in the BP amendment that deals with incremental CapEx for that portfolio?

BP 修正案中是否有任何內容涉及該投資組合的增量資本支出？

So, in the historical leases, TA had the option to request SVC reimburse or buy the CapEx that they make at our sites in return for an 8.5% rent increase. That function -- the mechanics of that goes away under the amended agreements. BP has made it clear they're going to invest billions into these sites and they weren't looking to us to pay for that or increase their lease liability. So that feature is no longer part of the leases.

因此，在歷史租約中，TA 可以選擇要求 SVC 報銷或購買他們在我們網站上生產的資本支出，以換取 8.5% 的租金上漲。該功能——其機制在修訂後的協議中消失了。 BP 已明確表示他們將向這些地點投資數十億美元，他們不希望我們為此支付費用或增加他們的租賃負債。因此，該功能不再是租約的一部分。

Okay. Sorry, just to be clear. So they're going to be paying for this not you?

好的。對不起，只是為了清楚。所以他們會為此買單而不是你？

All CapEx at these travel centers will be funded by BP on their own balance sheet.

這些旅遊中心的所有資本支出都將由 BP 在他們自己的資產負債表上提供資金。

Okay. That's great. And then, I think you were addressing this a little bit in the prior question of the $65 million to $70 million maintenance CapEx. And for the hotels, you'll be spending $200 million to $250 million annually over the next several years, the majority of which, I think, is Sonesta. Can -- I guess within the Sonesta properties, how much do you view as, I guess, defensive versus offensive over this 3-year period? And I guess, what kind of returns would you expect for the more offensive? I just -- I want to make sure that we have the potential upside in our estimates.

好的。那太棒了。然後，我認為你在之前的 6500 萬至 7000 萬美元維護資本支出問題中稍微解決了這個問題。在酒店方面，未來幾年每年將花費 2 億至 2.5 億美元，我認為其中大部分是 Sonesta。可以 - 我猜在 Sonesta 屬性中，我猜你認為在這 3 年期間有多少是防禦性的還是進攻性的？而且我想，對於更具攻擊性的產品，您期望得到什麼樣的回報？我只是 - 我想確保我們的估計有潛在的上升空間。

Yes. I'd say, if you back off the $75 million, you're looking at $125 million to $150 million-ish of offensive capital. And we've said in prior commentary that we expect around an 8% return on those dollars.

是的。我會說，如果你放棄 7500 萬美元，你就會看到 1.25 億到 1.5 億美元的進攻資金。我們在之前的評論中說過，我們預計這些美元的回報率約為 8%。

Okay. And then, I know you're not acquiring right now, but I'm sure you're keeping a pulse on what's on the market for hotels and net lease. Can you just talk about cap rates that you're seeing and maybe just the quality and quantity of what is on the market right now?

好的。然後，我知道你現在不會收購，但我相信你會密切關注酒店和淨租賃市場上的情況。你能談談你看到的資本化率，也許只是現在市場上的質量和數量嗎？

Sure. Yes, we are actively evaluating a number of opportunities. We don't have anything under agreement, but we are closely looking at selective assets. We've said in the past that now that we have exposure through Sonesta in New York City, there's a couple of other markets where we think we want to increase our exposure on the hotel side. So, Miami and Los Angeles, there's a number of opportunities that we're looking at.

當然。是的，我們正在積極評估許多機會。我們沒有任何協議，但我們正在密切關注選擇性資產。我們過去曾說過，現在我們通過紐約市的 Sonesta 進行了曝光，我們認為我們希望在其他幾個市場增加我們在酒店方面的曝光率。因此，邁阿密和洛杉磯，我們正在尋找許多機會。

And then, on the net lease side, again, we continue to evaluate a number of opportunities, more kind of portfolio level deals, I think. And from a cap rate perspective, I think, especially over the last rates have moved out over the past several weeks. And I think cap rates overall have moved out. We're not seeing -- we've certainly seen a slowdown in overall transaction activity. It doesn't mean deals aren't on the market, but we've certainly seen a slowdown in deals getting done.

然後，在淨租賃方面，我們再次繼續評估一些機會，我認為更多的是投資組合層面的交易。我認為，從上限利率的角度來看，尤其是在過去幾週內，最近的利率有所下降。而且我認為資本化率總體上已經退出。我們沒有看到——我們肯定看到整體交易活動放緩。這並不意味著市場上沒有交易，但我們確實看到交易完成速度放緩。

On the hotel side, I think there's certain markets and certain types of properties. I think there's a lot of interest in both from owners as well as lenders, but there's a lot of deals out there that just are not transacting because the sellers are not getting their -- getting anywhere close to their ask. So, cap rates have certainly moved out in the hotel side and certainly have moved out on the net lease side as well. I mean, there are some properties that tend to -- some of the smaller granular properties go to the 1031 exchange, all cash buyers. I don't think you've seen those move out as much. But generally, I would say, cap rates on the net lease side have moved out maybe 75 basis points. And on the hotel side, I think cap rates have moved out as well. So, it's an interesting time because it's -- there are opportunities out there. So, if the right one presents itself, there's a chance you could see us transact.

在酒店方面，我認為有特定的市場和特定類型的物業。我認為業主和貸方對這兩者都有很大的興趣，但是有很多交易只是沒有交易，因為賣家沒有得到他們的 - 接近他們的要價。因此，酒店方面的資本化率肯定有所下降，淨租賃方面也肯定有所下降。我的意思是，有些房產傾向於 - 一些較小的顆粒狀房產進入 1031 交易所，所有現金買家。我不認為你已經看到那些搬出那麼多。但總的來說，我會說，淨租賃方面的資本化率可能已經移動了 75 個基點。在酒店方面，我認為資本化率也有所下降。所以，這是一個有趣的時刻，因為它——那裡有機會。所以，如果合適的人出現，你就有機會看到我們進行交易。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Todd Hargreaves, President and Chief Investment Officer, for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想將會議轉回給總裁兼首席投資官 Todd Hargreaves 先生，聽取任何閉幕詞。請繼續，先生。

Thank you, and thank you, everyone, for joining today's call. We appreciate your continued interest in SVC. Thank you.

謝謝，也謝謝大家參加今天的電話會議。感謝您對 SVC 的持續關注。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。