Service Properties Trust (SVC) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Service Properties Trust fourth quarter 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Stephen Colbert, Director of Investor Relations. Please go ahead.

早安，歡迎參加 Service Properties Trust 2023 年第四季財報電話會議。（操作員說明）請注意此事件正在被記錄。我現在想將會議交給投資者關係總監 Stephen Colbert。請繼續。

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 SEC.

早安.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；以及財務主管兼財務長布萊恩唐利 (Brian Donley)。今天的電話會議包括管理層的演講，隨後是分析師的問答環節。請注意，未經 SEC 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 would 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 SPCs present beliefs and expectations as of today, February 29, 2024. Actual results may differ materially from those projected in these forward-looking statements.

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。這些前瞻性陳述是基於 SPC 截至 2024 年 2 月 29 日的當前信念和期望。實際結果可能與這些前瞻性陳述中的預測有重大差異。

Additional information concerning factors that could cause those differences is contained in our filings with the SEC, which can be accessed from our website at svcreit.com or the SEC's website. 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.

有關可能導致這些差異的因素的更多資​​訊包含在我們向 SEC 提交的文件中，可以從我們的網站 svcreit.com 或 SEC 網站存取該文件。該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。

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 operating and financial data package, which can be found on our website. And with that, I'll turn the call over to Todd.

此外，本次電話會議可能包含非 GAAP 財務指標，包括標準化營運資金或標準化 FFO 和調整後的 EBITDAre。這些非 GAAP 財務指標與淨利潤的對帳以及計算 AFFO 的組成部分可在我們的補充營運和財務資料包中找到，該資料包可在我們的網站上找到。然後，我會將電話轉給托德。

Thank you, Stephen, and good morning. As we see fourth quarter results reflect themes we are witnessing across the lodging industry as demand has moderated and high operating costs are impacting profits. While we expect market softness to continue during the first half of 2024, we are optimistic that the back half of the year should improve due to macroeconomic factors and improve business and inbound international travel. We are using this time to invest capital into our hotels, which we expect will lead to improved performance and an attractive return on investment.

謝謝你，史蒂芬，早安。正如我們所看到的，第四季度的業績反映了我們在整個住宿行業目睹的主題，因為需求放緩，而高營運成本正在影響利潤。雖然我們預計 2024 年上半年市場將持續疲軟，但我們樂觀地認為，由於宏觀經濟因素以及業務和入境國際旅行的改善，今年下半年應該會有所改善。我們正在利用這段時間對我們的酒店進行資本投資，我們預計這將帶來業績的改善和有吸引力的投資回報。

Now onto our results. During the quarter, we experienced a moderate top-line decline in our hotel portfolio as year over year, comparable ADR growth was offset by reduced occupancy, leading to a RevPAR decline of 2.2% and reduced hotel EBITDA, largely due to disruption from '23 active renovations during the quarter.

現在來看我們的結果。本季度，我們的酒店組合收入同比略有下降，可比 ADR 增長被入住率下降所抵消，導致每間客房收入下降 2.2%，酒店 EBITDA 下降，這主要是由於 23 年的中斷本季度積極進行翻修。

Excluding the hotels experiencing renovation impacts, RevPAR was flat, decreasing by 30 basis points from the previous year quarter, while total revenues increased $7.1 million led by F&B sales. We expect the pace of renovations to remain elevated during 2024.

不包括受到裝修影響的飯店，每間客房收入持平，比去年同期下降了 30 個基點，而總收入在餐飲銷售的帶動下增加了 710 萬美元。我們預計 2024 年翻修步伐將持續加快。

Our portfolio of full-service hotels gained 40 basis points of RevPAR over the previous year quarter, led by gains in our group and contract segments, which were up 6.2% and 10.2% year over year, respectively. Strong group business was driven by corporate demand at our hotels in Cambridge, Las Vegas, and San Francisco, and contract revenues fueled sizable ADR increases at our semester branded hotels in Redondo Beach, San Juan, and Kauai.

我們的全方位服務酒店組合的 RevPAR 比去年同期增長了 40 個基點，其中集團和合約業務的增長帶動了增長，分別同比增長 6.2% 和 10.2%。強勁的集團業務是由我們在劍橋、拉斯維加斯和舊金山的酒店的企業需求推動的，合約收入推動了我們在雷東多海灘、聖胡安和考艾島的學期品牌酒店的平均每日房價大幅成長。

The notable $7.1 million of increased revenues mentioned earlier was mostly the result from banquet and catering as well as expanded hours at our F&B outlets in our three downtown Chicago Royal semester properties. Our portfolio of select-service hotels experienced the most disruption during the quarter, leading to a RevPAR decline of 5.8% year over year as 18 of our 61 hotels were under renovation.

前面提到的 710 萬美元的顯著收入增長主要是由於宴會和餐飲以及芝加哥市中心三座皇家學期酒店的餐飲店營業時間延長的結果。我們的精選服務酒店組合在本季度經歷了最嚴重的干擾，導致每間可用客房收入同比下降 5.8%，因為我們的 61 家酒店中有 18 家正在進行翻修。

Our semester select portfolio grew RevPAR by 1.3%, much of which was driven by airline contract revenues in the Atlanta, Phoenix, and Los Angeles markets. Our extended-stay portfolio experienced a 2.8% decline in RevPAR year over year when excluding three hotels under renovation, this segment has seen reduced occupancy from non-repeat long-term extended stay business from medical related and project base accounts. While shorter term stays with higher ADRs have increased.

我們的學期精選投資組合使 RevPAR 成長了 1.3%，其中大部分是由亞特蘭大、鳳凰城和洛杉磯市場的航空公司合約收入推動的。如果不包括三家正在裝修的飯店，我們的長期住宿投資組合的 RevPAR 同比下降了 2.8%，該部門的入住率因醫療相關和專案基礎帳戶的非重複長期長住業務而減少。而具有較高 ADR 的短期住宿則增加。

The results in this segment were largely market dependent with positive RevPAR relative to 2022. At our extended-stay hotels in Boston, San Francisco and Sunnyvale, offset by declines in San Diego, Reno, Dallas, and Atlanta.

此細分市場的業績很大程度取決於市場，與 2022 年相比，每間可用房收入為正值。我們在波士頓、舊金山和桑尼維爾的長住酒店的銷量被聖地亞哥、裡諾、達拉斯和亞特蘭大的長住酒店數量下降所抵消。

Segmentation in our portfolio shifted away from transient, which represented 72.5% of total revenues in Q4 due to a continued softening in leisure demand, while group mix increased 1.3% year over year to 18.1% of revenues and contract mix increased 80 basis points to 7.3%.

由於休閒需求持續疲軟，我們的投資組合中的細分不再是瞬態，佔第四季度總收入的72.5%，而團體組合同比增長1.3%，佔收入的18.1%，合約組合增加80 個基點，達到7.3 %。

2024 full-year group pace is up $19 million or 22.5% over the same time last year, with strong growth across all our operators. OTA revenue as a percentage of total revenues decreased from 27.6% to 25.9% year over year during the quarter and our operators continue to focus efforts on driving bookings to their websites to lessen the dependency on third-party channels of charge commissions.

2024 年全年集團營收比去年同期成長 1,900 萬美元，即 22.5%，我們所有營運商均實現強勁成長。本季度，OTA 收入佔總收入的比例從 27.6% 年減至 25.9%，我們的業者繼續致力於推動其網站的預訂，以減少對第三方收費佣金管道的依賴。

Nestor remains focused on building its brand to spend on advertising, marketing and IT initiatives. Travel pass continues to see increased consumer adoption, evidenced by the mix of room nights and semesters. full-service hotels increasing by 16.5% year over year, and operating expenses are impacting margins.

Nestor 仍然專注於建立其品牌，並將資金用於廣告、行銷和 IT 計劃。旅行通行證的消費者採用率不斷增加，住宿晚數和學期的混合證明了這一點。全服務酒店年增 16.5%，營運費用正在影響利潤率。

And while our operators lessen their reliance on contract labor by filling open positions below the GOP line, expenses have increased, notably real estate taxes up $2.5 million from Q4 2022 and insurance costs of $2.4 million from increased premiums as well as deductibles paid on higher number of claims.

儘管我們的營運商透過填補共和黨線以下的空缺職位來減少對合約工的依賴，但費用卻有所增加，特別是房地產稅比2022 年第四季度增加了250 萬美元，保險費用因保費增加以及更高數量的免賠額而增加了240 萬美元索賠。

We expect near term disruption on our portfolio as renovations are completed during the upcoming quarters. However, we are already starting to see the benefits of these renovations at some of our recently renovated hotels with substantial RevPAR increases, and we are expecting upcoming renovation hotels to also benefit from these much-needed improvements.

我們預計，隨著未來幾季翻修工程的完成，我們的投資組合將在短期內受到干擾。然而，我們已經開始在一些最近裝修的酒店中看到這些裝修的好處，每間客房收入大幅增加，我們預計即將裝修的酒店也將從這些急需的改進中受益。

Turning to our net lease portfolio, which represents 45% of SVC's portfolio by investment as of December 31, 2023, or 752 service oriented retail net lease properties were 97.1% leased with a weighted average lease term of 8.8 years.

至於我們的淨租賃投資組合，截至 2023 年 12 月 31 日，佔 SVC 投資組合的 45%，即 752 處服務型零售淨租賃物業的租賃率為 97.1%，加權平均租賃期限為 8.8 年。

Our lease maturities are well laddered and only 2.1% of our net lease minimum rents expire prior to the end of 2024. The aggregate coverage of our net lease portfolio's minimum rents was 2.46 times on a trailing 12 month basis as of December 31, 2023.

我們的租賃期限是階梯式的，只有 2.1% 的淨租賃最低租金會在 2024 年底前到期。截至 2023 年 12 月 31 日，過去 12 個月我們淨租賃投資組合最低租金的總覆蓋率為 2.46 倍。

The decline sequentially is largely driven by softer EBITDA, reported by TA for Q4 2023. Notably the increase in fuel margins that TA benefited from post pandemic due to increased trucking activity has returned to more normalized levels consistent with levels immediately preceding the pandemic.

根據 TA 報告的 2023 年第四季的數據，這一下降主要是由於 EBITDA 疲軟所致。值得注意的是，由於卡車運輸活動增加，達盟在大流行後受益於燃料利潤率的增加，已恢復到與大流行之前的水平一致的更正常的水平。

And these properties remained some of our most stable investments as rent payments are guaranteed by investment grade rated subsidiary of PP. Bank coverage for other net retail net lease tenants were stable at 3.7 times. Transaction activity during the quarter consisted of no acquisitions and nine net lease dispositions for an aggregate sales price of $8.8 million.

這些房產仍然是我們最穩定的投資之一，因為租金由 PP 的投資等級子公司擔保。其他淨零售淨租賃租戶的銀行覆蓋率穩定在3.7倍。本季的交易活動包括無收購和九項淨租賃處置，總銷售價格為 880 萬美元。

As we have discussed previously, we continually evaluate opportunities to optimize our portfolio, specifically trimming our lodging portfolio of lower performing hotels that have been a headwind to overall EBITDA. After careful analysis, we have begun to market 22 Sonesta hotels totaling 2,832 keys for disposition, including nine Sonesta ES Suites, five simply suites, seven Sonesta selects, and one full service Sonesta hotels.

正如我們之前所討論的，我們不斷評估優化投資組合的機會，特別是削減業績較低的酒店的住宿組合，這些酒店一直是整體 EBITDA 的阻力。經過仔細分析，我們已開始銷售 22 家 Sonesta 酒店，總計 2,832 間客房供處置，其中包括 9 家 Sonesta ES Suites、5 家簡約套房、7 家 Sonesta select 和 1 家全方位服務 Sonesta 酒店。

These hotels have a net book value of $162 million and an aggregate reported negative EBITDA of $4.7 million during 2023. In addition, each of these hotels were slated for renovation in future years, which should reduce our overall CapEx spend. We expect that aggregate RevPAR and hotel EBITDA margins for the remaining hotel portfolio will improve with the removal of the subset of hotels. We also have one other hotel under contract to sell for $3.3 million. That's part of our Radisson agreement.

這些飯店的帳面淨值為 1.62 億美元，2023 年報告的 EBITDA 總額為負 470 萬美元。此外，這些酒店都計劃在未來幾年進行翻修，這應該會減少我們的總體資本支出。我們預計，隨著飯店子集的移除，剩餘飯店組合的總 RevPAR 和飯店 EBITDA 利潤率將有所改善。我們還有另一家酒店已簽訂合同，售價為 330 萬美元。這是我們麗笙協議的一部分。

To wrap up my comments before turning it over to Brian, we are confident that the hotel portfolio will see improved financial and operational performance as renovation capital is invested and after the expected dispositions of the 22 hotels that I discussed. In addition, our net lease portfolio provides consistent dependable cash flows with 68% of annual minimum rents coming from an investment grade rated tenant and VP with over $750 million of total liquidity and a large pool of highly valuable unencumbered assets. Our balance sheet is well-positioned with no debt maturities until 2025. I will now turn the call over to Brian to discuss our financial results in more detail.

在將我的評論轉交給 Brian 之前，我們相信，隨著裝修資本的投入以及我討論的 22 家酒店的預期處置之後，酒店組合的財務和營運績效將得到改善。此外，我們的淨租賃投資組合提供持續可靠的現金流，其中 68% 的年最低租金來自投資級評級租戶和副總裁，擁有超過 7.5 億美元的總流動資金和大量高價值的未支配資產。我們的資產負債表狀況良好，2025 年之前沒有債務到期。我現在將把電話轉給布萊恩，更詳細地討論我們的財務表現。

Thanks, Todd, and good morning. Starting with our consolidated financial results for the fourth quarter of 2023. Normalized FFO was $50 million or $0.30 per share versus $0.44 per share in the prior year quarter. Adjusted EBITDAre decreased 6.2% year over year to $141.2 million.

謝謝托德，早安。首先是 2023 年第四季的綜合財務表現。標準化 FFO 為 5,000 萬美元，即每股 0.30 美元，而去年同期為每股 0.44 美元。調整後 EBITDA 年減 6.2% 至 1.412 億美元。

Our results this quarter as compared to the prior year were impacted by higher expense, a decline in hotel EBITDA, and lower rental income recognized. Rental income decreased by $4.1 million this quarter compared to the prior year, largely as a result of our percentage rents recognized last year under our historical lease terms with TA, partially offset by an increased minimum rental income recognized under the revised terms of our leases with TA following the BP transaction last May.

與前一年相比，我們本季的業績受到費用增加、飯店 EBITDA 下降以及確認的租金收入下降的影響。與前一年相比，本季的租金收入減少了410 萬美元，主要是由於我們去年根據與TA 的歷史租賃條款確認的租金百分比，部分被根據我們與TA 的修訂租賃條款確認的最低租金收入增加所抵消。TA 繼去年5月完成BP交易後。

Turning to the performance of our hotel portfolio. For our 290 comparable hotels this quarter, RevPAR decreased by 2.2%. Gross operating profit margin percentage declined by 210 basis points to 26.3%. Gross operating profit decreased by $6.4 million from the prior year period. Below the GOP line, costs at our comparable hotels increased $4.9 million from the prior year, driven primarily by increased property insurance and real estate tax expense.

轉向我們酒店組合的表現。本季我們 290 家可比飯店的 RevPAR 下降了 2.2%。營業毛利率下降 210 個基點至 26.3%。營業總利潤較上年同期減少 640 萬美元。在共和黨線以下，我們的可比飯店的成本比前一年增加了 490 萬美元，這主要是由於財產保險和房地產稅費用的增加。

Our 221 hotels generated hotel EBITDA of $43.6 million, a 19.3% decline from the prior year and below our guidance range of $45 million to $49 million, driven by higher expenses and renovation disruption. By service level hotel EBITDA year over year declined [$6.1 million] for our 49 full-service hotels, [$3.1 million] for our 61 select service hotels, and [$2.8 million] for our 111 extended-stay hotels.

由於費用增加和裝修中斷，我們的 221 家酒店產生的酒店 EBITDA 為 4,360 萬美元，比上年下降 19.3%，低於我們 4,500 萬至 4,900 萬美元的指導範圍。按服務等級劃分，我們的49 家全服務酒店的酒店EBITDA 同比下降了[610 萬美元]，我們的61 家精選服務酒店的酒店EBITDA 同比下降了[310 萬美元]，我們的111 家長住酒店的EBITDA 年減了[280 萬美元]。

Turning to our expectations for Q1, we are currently projecting full quarter Q1 RevPAR of $77 to $80 in hotel EBITDA in the $28 million to $31 million range. We will continue to see softer seasonal results in the remainder of the winter months before activity picks up in the spring. Our portfolio will also see continued disruption in 2024 at hotels we have under renovation.

談到我們對第一季的預期，我們目前預計第一季將本季 RevPAR 為 77 至 80 美元，飯店 EBITDA 在 2,800 萬至 3,100 萬美元範圍內。在春季活動回升之前，我們將在冬季剩餘的幾個月中繼續看到季節性結果疲軟。到 2024 年，我們正在裝修的飯店的投資組合也將繼續受到干擾。

Turning to the balance sheet. During the fourth quarter, we successfully executed on a new eight year $1 billion senior secured notes offering at [8 5/8%] and repaid all $1.2 billion of unsecured notes that were scheduled to mature in 2024.

轉向資產負債表。在第四季度，我們成功執行了新的八年期 10 億美元優先擔保票據發行，價格為 [8 5/8%]，並償還了計劃於 2024 年到期的所有 12 億美元無擔保票據。

Interest expense is projected to be $91.5 million for the first quarter of 2024 following these refinancings. We currently have $5.6 billion of fixed rate debt outstanding with a weighted average interest rate of 5.94%. Our next debt maturity is $350 million of senior notes maturing in March 2025. We currently have $100 million of cash and our $650 million revolving credit facility is undrawn for total liquidity of $750 million.

這些再融資後，2024 年第一季的利息支出預計為 9,150 萬美元。目前，我們有 56 億美元的未償固定利率債務，加權平均利率為 5.94%。我們的下一個債務到期日是 3.5 億美元的優先票據，將於 2025 年 3 月到期。我們目前擁有 1 億美元現金，6.5 億美元循環信貸額度尚未動用，流動資金總額為 7.5 億美元。

Turning to investing activities, during the fourth quarter, we sold nine net lease properties for a total price of $8.8 million. We made $106 million of total capital improvements at our properties during the fourth quarter, and we expect to make capital expenditures of $250 million to $275 million in 2024 as we continue to ramp up our renovation program within the hotel portfolio.

談到投資活動，第四季度，我們出售了九處淨租賃房產，總價為 880 萬美元。第四季度，我們對酒店的資本改善總額為 1.06 億美元，隨著我們繼續加大酒店投資組合內的翻新計劃，我們預計 2024 年的資本支出將達到 2.5 億至 2.75 億美元。

Of this capital spend, we expect $80 million to $100 million of maintenance-type capital with the rest going towards renovation capital. We expect 36 hotels across all of our service levels to be under renovation throughout 2024. In January, we announced our regular quarterly common dividend of $0.20 per share, which we believe is well covered, representing a 48% normalized FFO payout ratio for the year ended 2023. That concludes our prepared remarks, and we're ready to open the line for questions.

在這筆資本支出中，我們預計 8,000 萬至 1 億美元用於維護類資本，其餘部分將用於翻新資本。我們預計 2024 年將有 36 家所有服務等級的飯店進行翻修。一月份，我們宣布了每股 0.20 美元的定期季度普通股息，我們認為這一股息得到了很好的覆蓋，相當於 2023 年終了年度的正常化 FFO 派息率為 48%。我們準備好的發言到此結束，我們準備好開始提問。

(Operator Instructions) Bryan Maher, B. Riley FBR.

（操作員說明）Bryan Maher，B. Riley FBR。

Thank you. And good morning. Just a few from me. On the hotel renovations, can you try to quantify for us what you think that that's going to do to hotel margins and/or RevPAR throughout the year and then maybe drill down a little bit on the non-maintenance CapEx, IT spend, what type of level of activity is going to go on at those 36 hotels? And does any of that include the Nautilus that you bought last year in South Beach?

謝謝。早安.只是我的一些。關於酒店裝修，您能否嘗試為我們量化一下您認為這將對全年酒店利潤和/或 RevPAR 產生什麼影響，然後可能深入了解非維護資本支出、IT 支出以及什麼類型這36 家酒店的活動水平如何？其中包括您去年在南海灘購買的鸚鵡螺號嗎？

Good morning, Brian, I'll start.. Thank you for the question. As far as quantifying the disruption and potential activity. It's going to be a little choppy. In Q4 we had 23 hotels under renovation and we saw a significant reduction in RevPAR for those hotels in the 20% range. Net EBITDA, pretty much eroded off of that hotel book corporate hotel portfolio set.

早安，布萊恩，我要開始了..感謝你的提問。至於量化破壞和潛在活動。會有點不穩定。第四季度，我們有 23 家飯店正在進行翻修，我們發現這些飯店的 RevPAR 大幅下降了 20%。淨 EBITDA 幾乎從酒店預訂企業酒店投資組合中被侵蝕。

As we look forward, we're going to have hotels coming out of renovation where you get a nice lifts and the expected improvement of the position of the hotel and RevPAR index and so forth. So we're going to have some ups and downs, but net-net we're projecting RevPAR won't be as drastic as the 20% RevPAR decline for the 23 subset.

正如我們所期望的那樣，我們將有一些酒店完成裝修，您將獲得良好的電梯，並且酒店的地位和 RevPAR 指數等將得到預期的改善。因此，我們將會有一些起伏，但我們預計 RevPAR 不會像 23 個子集的 RevPAR 下降 20% 那樣劇烈。

Overall, we're projecting about a 1% to 2% disruptive displacement in RevPAR for the whole year. So again, we're going to have stuff going down. Stuff coming back is there will be some offsetting going on. So we'll be as material in our view today for the year. And as far as what we're spending, you know, we've got the 17 Hyatts that were in full swing in Q4, and those are expected to ramp up in early Q2, and that's everything from guestrooms and public space and some exterior work.

總體而言，我們預計全年可售房收入將出現約 1% 至 2% 的顛覆性變化。再說一遍，我們的東西將會下降。回來的事情是將會發生一些抵消。因此，我們今天將作為今年的重要內容。就我們的支出而言，您知道，我們有 17 家凱悅酒店在第四季度如火如荼地進行，預計將在第二季度初增加，這包括從客房、公共空間到一些外部的一切工作。

And the same is going to be done for the renovation capital in this. And that's the portfolio we've got a couple of full-service hotels, our Hilton Head property, for example, we're doing all the rooms off season in the winter months here, and that are now going to be the public space at the end of the year when the summer season is over and we have a full slate of select service and extended stay hotels that we're doing the same thing. We're going through the roads in the public areas, some façade work and so forth. So it's a pretty comprehensive program.

改造資本也會這樣做。這就是我們擁有幾家全方位服務酒店的投資組合，例如我們在希爾頓黑德的酒店，我們在冬季的幾個月裡淡季處理所有房間，現在將成為以下酒店的公共空間：到年底，夏季結束後，我們將提供全套精選服務和長期住宿酒店，我們正在做同樣的事情。我們正在穿越公共區域的道路、一些外牆工程等等。所以這是一個非常全面的計劃。

[There's Brian -- the RVs] the maintenance capital that we mentioned does not include a lot from the Nautilus. The majority of the Nautilus is likely going to be completed in 2025. So it does not include any maintenance or renovation related to that.

[布萊恩－房車]我們提到的維護資金並不包括鸚鵡螺號的許多資金。鸚鵡螺號的大部分零件可能會在 2025 年完工。因此它不包括與此相關的任何維護或翻新。

Okay. Two more. I mean, you made some comments about TA and I get it the year over year stuff, but you talked about the gas margins and getting back to pre pandemic levels from the elevated that we saw over the last couple of years. I just want to clarify, though, that given the lease structure you have with BP, none of that is really relevant to you and what you get rent wise, it maybe just impacts what the coverages. But with BP as a credit, it's kind of like who cares, right?

好的。還有兩個。我的意思是，你對 TA 做了一些評論，我得到了逐年的信息，但你談到了天然氣利潤率，以及從我們過去幾年看到的高水平恢復到大流行前的水平。不過，我只是想澄清一下，考慮到您與 BP 的租賃結構，這些都與您以及您獲得的租金無關，它可能只會影響承保範圍。但有了 BP 作為信用，這就有點像誰在乎了，對吧？

It's exactly right, Brian. We just illustrating that we do report coverage for our whole portfolio, and it's such a high weighting in that calculation. But you're 100%, right. And we have we sleep well at night knowing we have the credit behind us and those lease payments.

完全正確，布萊恩。我們只是說明我們確實報告了整個投資組合的覆蓋範圍，並且在計算中它的權重如此之高。但你是100%，對吧。我們晚上睡得很好，因為我們知道我們有信用和租賃付款。

Okay. And then last for me and I'll hop back in the queue. We don't talk much about your net lease assets outside of TA, but there's been a lot in the press regarding retail and retail demand seems to be strong for real estate. He and I know that you've been selling a few assets kind of you know, smallish non-core properties. Can you just give us a little bit of color on how many more sales there are to go, kind of what you're selling and when you you've got to re-lease those properties? What kind of rent roll-ups are you seeing?

好的。然後我會跳回隊列中。我們不太談論 TA 以外的淨租賃資產，但媒體上有很多關於零售的報導，而且房地產的零售需求似乎很強勁。他和我知道您一直在出售一些資產，即小型非核心資產。您可以向我們透露還有多少銷售量、您正在銷售的產品以及何時需要重新出租這些房產嗎？您看到什麼樣的租金上漲？

Sure. So yeah, there's a lot of good points there. We're seeing the same thing on the retail side. We're starting to see more demand, especially in the investment sales market, the bar portfolio, specifically over the past few years, you've really seen us sell mostly vacant properties as we really haven't really been buying anything and we've just been selling properties as they become vacant.

當然。是的，那裡有很多優點。我們在零售方面也看到了同樣的情況。我們開始看到更多的需求，特別是在投資銷售市場、酒吧投資組合，特別是在過去的幾年裡，你確實看到我們出售了大部分空置的房產，因為我們真的沒有真正購買任何東西，而且我們'我們剛剛在空置房產時出售它們。

And we don't think we have a good sense of leasing those what you might see us do going forward now that we're getting getting back into, there's still volatile, but a little bit more stable capital markets and buyer activity out there as you you're likely going to see us sell potentially sell some more stable assets. I think we've cycled through most of the vacant stuff that we that we knew were issues when we bought SMTA back in 2019. But we have I think we have about 20 vacant properties.

我們認為，我們對租賃那些你可能會看到我們未來所做的事情沒有很好的感覺，因為我們正在回歸，仍然存在波動，但資本市場和買家活動更加穩定，因為您可能會看到我們出售一些較穩定的資產。我認為我們已經解決了大部分空置的問題，我們在 2019 年收購 SMTA 時就知道這些問題。但我認為我們有大約 20 個空置房產。

Last, there's a handful more that are that are probably coming. I think we're up to 97% occupancy in terms of number of properties. And so and then in terms of the rent roll-ups, generally, we've been net lease, meaning mainly maintaining rents are rolling up rents. There are some situations you've seen a lot with the movie theaters that we release those a lot of those were were very high rents on a per-square-foot basis for the size of those properties.

最後，還有一些可能即將到來。我認為就房產數量而言，我們的入住率高達 97%。因此，就租金累加而言，一般來說，我們一直是淨租賃，這意味著主要維持租金是累加租金。您已經在我們發布的電影院中看到過很多情況，其中許多情況對於這些房產的規模而言，每平方英尺的租金非常高。

There was a lot of TA amortization in those ranks as well. So that's why you might see some rent roll downs, some of that longer term sale leasebacks that spirit that the previous owner had done a lot of times, those rents tend to be above market as well. So you see some rent roll-downs there. But generally where I think if you look back the last few years, we're probably averaging about 2% rental growth for that portfolio per year.

這些關卡中也有大量的 TA 攤銷。因此，這就是為什麼您可能會看到一些租金下降，一些長期銷售回租，這表明前業主已經做了很多次，這些租金也往往高於市場價格。所以你會看到那裡的租金下降。但總的來說，我認為如果你回顧過去幾年，我們該投資組合的租金每年可能平均成長約 2%。

Okay. Thank you very much.

好的。非常感謝。

Dori Kesten, Wells Fargo.

多麗凱斯滕，富國銀行。

Thanks. Good morning. I'm assuming that 22 Sonestas are sold, what would your 2019 pro forma RevPAR and hotel EBITDA margins be?

謝謝。早安.我假設已售出 22 輛索尼斯塔，您的 2019 年預估 RevPAR 和酒店 EBITDA 利潤率是多少？

Sure. I can pull that up for you. So as I mentioned on the prepared remarks, our EBITDA was actually negative for those 22 hotels was about [negative $4.7 million]. So if you take out those hotels for the year, EBITDA margin would be 18.3% and RevPAR would be $92.18 just for the Sonestas.

當然。我可以幫你把它拉起來。正如我在準備好的評論中提到的，這 22 家酒店的 EBITDA 實際上為負值，約為[負 470 萬美元]。因此，如果您剔除今年的這些酒店，僅索尼斯塔酒店的 EBITDA 利潤率為 18.3%，RevPAR 將為 92.18 美元。

Yeah, the sale hotels in '19 generated about [$19 million] of hotel EBITDA.

是的，19 年出售的酒店產生了約 [1900 萬美元] 的酒店 EBITDA。

In 2019, the 22 Sonestas generated [$19 million] in EBITDA that you said.

正如您所說，2019 年，22 家 Sonestas 的 EBITDA 產生了 [1900 萬美元]。

Yeah, some of them were under different flags and pre-pandemic, that was the full year hotel EBITDA.

是的，其中一些在大流行前處於不同的旗幟下，這就是全年酒店 EBITDA。

Okay. And you've previously talked about returning to prior-peak EBITDA margins once the renovation programs complete there. Is there anything going on internally at in essence that gives you confidence that and you will exceed those prior peak margins holding to the side that the outside from this position?

好的。您之前曾談到，一旦改造計畫完成，EBITDA 利潤率就會恢復到先前的高峰。本質上是否有任何內部發生的事情讓您有信心，並且您將超越該職位外部所持有的先前峰值利潤？

I mean that is a good question. That's one of the reasons that we are selling some of these hotels. We've identified these hotels as ones that we don't think that would return to those margin levels. But semesters continues to be very focused on expanding the brand awareness, expanding those loyalty program and they're putting they're not taking any money out of the business.

我的意思是這是一個好問題。這就是我們出售其中一些酒店的原因之一。我們已將這些酒店確定為我們認為不會恢復到這些利潤水平的酒店。但學期仍然非常注重擴大品牌知名度，擴大忠誠度計劃，他們表示不會從業務中拿走任何資金。

They're putting everything they get from management fees paid by us, franchise fees, they get from their franchisees, all the cash flow they're getting from other owned hotels specifically there the hotels they own in New York, which are doing very well. All that's going back into the business. So we are seeing the right things in terms of the number of loyalty members. They have the percentage of revenues that are booked through the loyalty program. They continue to put money into their revamped website, mobile app, our customer relationship management system.

他們把從我們支付的管理費、特許經營費、從特許經營商那裡獲得的所有現金流、從其他自營酒店獲得的所有現金流都投入到了他們在紐約擁有的酒店，這些酒店的業績都非常好。所有這些都會回到業務中。因此，我們在忠誠會員數量方面看到了正確的事情。他們擁有透過忠誠度計劃預訂的收入百分比。他們繼續投入資金改造網站、行動應用程式和我們的客戶關係管理系統。

They still have a lot of weight, a lot a lot of room to go there from. I think a couple of we had we haven't seen it for all of our hotels in terms of performance yet again, I think we will see it once the renovations are complete. But the other thing we are seeing, too, and we we talked about the segmentation. They've really they've really done a starting to do a good job of building out their national sales platform. And you're seeing that with the the increase in group business that they are starting to pick up.

他們仍然有很大的重量，還有很大的空間。我認為我們還沒有在所有酒店的性能方面再次看到它，我想一​​​​旦裝修完成，我們就會看到它。但我們也看到了另一件事，我們討論了細分。他們確實在建立全國銷售平台方面確實取得了良好的開端。你會看到，隨著集團業務的增加，他們開始復甦。

A lot of that is driven by by sales and distribution channels rather than a lot of the transient this book to not only the website, but also through the OTAs. So to answer your question, yes, we still expect we expect to get back to those margin levels. The renovation, I think we'll see immediate impact from from from those renovations at the snus hotels, there's a number of hotels, specifically a lot of the Royal Sonesta and full-service hotels that they are performing well with and they are competing and outperforming the market in some cases.

其中很大一部分是由銷售和分銷管道推動的，而不是本書的大部分內容不僅是透過網站，而且還透過線上旅行社。因此，回答你的問題，是的，我們仍然希望能夠回到這些利潤水平。我想我們會看到鼻煙酒店的翻修帶來的直接影響，有很多酒店，特別是很多皇家索尼斯塔酒店和全方位服務酒店，它們表現良好，並且正在競爭和在某些情況下表現優於市場。

So again, it's something we think we've talked about on previous calls. It's again a fact that to the sales we're looking at the entire portfolio and anytime we put any money into these hotels in terms of renovation, we're looking at what that return is going to be. We're going out several years in terms of what we expect the operating cash flows to look like. And then we layer on the CapEx, not just the renovation CapEx, but the maintenance CapEx. And if we don't think we're going to get a return on that incremental capital. And we're back to margins that we think it will compete with the market, and that's why they ended up on the sale list.

再說一遍，我們認為我們在之前的電話會議中已經討論過這個問題。這又是一個事實，對於銷售，我們關注的是整個投資組合，每當我們在裝修方面向這些酒店投入任何資金時，我們都會關注回報將是多少。我們預計未來幾年的營運現金流會是什麼樣子。然後我們將資本支出分層，不僅是改造資本支出，還有維護資本支出。如果我們認為我們無法從增量資本中獲得回報。我們回到了利潤率，我們認為它將與市場競爭，這就是他們最終出現在銷售名單上的原因。

And I may have missed this. What did you say the I think it's a three-year program. What will the total capital spend be including ROI and maintenance assuming that Sonestas are out?

我可能錯過了這一點。你說什麼？我認為這是一個為期三年的計畫。假設 Sonestas 退出，總資本支出包括投資報酬率和維護費用是多少？

Yeah, we didn't give the multi-year number Dori, but I think over the next two or three years, we're going to see these elevated levels as we mentioned in the prepared remarks, it will be up [$250 million to $275 million] this year. And we're going to continue to evaluate and make sure we, as Todd mentioned, we believe the investment makes sense. So we're going to provide updates as we go along here and move hotels onto the list so moving projects forward.

是的，我們沒有給出多年數字Dori，但我認為在接下來的兩到三年裡，我們將看到這些升高的水平，正如我們在準備好的評論中提到的那樣，它將上升[2.5 億美元到2.75 億美元]今年。正如托德所說，我們將繼續評估並確保我們相信這項投資是有意義的。因此，我們將在此過程中提供最新信息，並將酒店移至列表中，以便推動項目向前發展。

Okay, thank you.

好的謝謝。

(Operator Instructions) Tyler Batory, Oppenheimer.

（操作員說明）Tyler Batory，Oppenheimer。

Hi, good morning. This is Jonathan on for Tyler. Thanks for taking our questions. First one for me maybe a follow-up on the CapEx. Can you can you help us think about how much of that essentially spillover from 2023 last year? And any color on the cadence of the year? I mean, I assume largely front-half weighted.

早安.這是泰勒的喬納森。感謝您回答我們的問題。對我來說，第一個可能是資本支出的後續行動。您能否幫助我們思考去年 2023 年的溢出效應有多少？今年的節奏有什麼顏色嗎？我的意思是，我假設主要是前半部加權。

Yeah, it's a great question. I think I would say probably [$25 million to $40 million] is probably deferred from 2023. As far as how the allocation by quarter will go, it's a little hard to predict, but I think you're right. It's Q1 and Q4 book ending the year as we will see the most activity as we trying to plan these renovations around the peak seasons for us, which it generally speaking starts in early spring and runs through early November.

是的，這是一個很好的問題。我認為 [2500 萬至 4000 萬美元] 可能會從 2023 年推遲。至於按季度分配的情況，有點難以預測，但我認為你是對的。這是今年第一季和第四季的書，因為我們將看到最多的活動，因為我們試圖在旺季為我們計劃這些裝修，一般來說，旺季從早春開始，一直持續到 11 月初。

Okay. Very good. And thank you for all the color there. And then switching gears to maybe more recent demand trends in the hotel portfolio. Todd, I believe you maybe noted some market softness in the first half of the year, any additional color on that and any pockets of weakness or slowing that are worth calling out anything out there that potentially gives you pause, if you look out.

好的。非常好。感謝您提供的所有顏色。然後轉向酒店組合中可能更新的需求趨勢。托德，我相信你可能注意到了今年上半年的一些市場疲軟，任何額外的色彩以及任何疲軟或放緩的地方都值得指出，如果你留意的話，可能會讓你停下來。

It's mostly related to some to leisure travel, but we're also seeing a slowdown in business travel, we business travel still is probably in our portfolio, at least around 70% to 80% of where it was in 2019. And in previous quarters, we had continued to see that that tick up and that's really slowed down and flattened out a lot of our resort hotels.

這主要與休閒旅行有關，但我們也看到商務旅行放緩，商務旅行可能仍在我們的投資組合中，至少佔 2019 年的 70% 至 80% 左右。在前幾個季度，我們繼續看到這種成長，但實際上我們的許多度假飯店的成長速度已經放緩並變得扁平化。

We've seen declines year over year in RevPAR, which which isn't surprising given given the large increases that we saw back in '21 and '22 for those hotels specifically. But yes, the softness is mostly leisure and business, and we have a lot more exposure exposure to business. And again, another factor in how we identified the hotels we wanted to sell. Most of those are business-oriented hotels.

我們看到 RevPAR 逐年下降，考慮到我們在 21 和 22 年看到這些酒店的大幅增長，這並不奇怪。但是，是的，疲軟主要是休閒和商務，而且我們對商業有更多的接觸。這也是我們如何確定想要出售的酒店的另一個因素。其中大部分是商務型飯店。

Okay. And then maybe last one for me. Can you maybe provide some additional color on per occupied room expenses and where labor expense has trended as a blade and your general expectation for expense inflation this year?

好的。然後也許是我的最後一個。您能否提供一些關於每個入住房間的費用、勞動力費用趨勢作為刀片的額外資訊以及您對今年費用通膨的總體預期？

In terms of the, we talked about insurance and taxes, but in terms of rooms expense, it is labor labor's just overall the largest expense by far, what we're seeing there is most of the open positions have been filled in our portfolio across all our operators.

就而言，我們討論了保險和稅收，但就客房費用而言，這是迄今為止勞動力總體上最大的支出，我們看到大部分空缺職位已在我們的投資組合中填補我們所有的運營商。

So there's a lot less reliance on contract labor, which is a positive and I guess just as an employer, a more more negotiation in terms of of of wages and salaries, like what is impacting labor we had to increase it is that you're continuing to see significant year-over-year hourly wage increases even for noncontract labor specific specifically for housekeeping front desk, F&B tenants, those types of positions.

因此，對合約工的依賴大大減少，這是一個積極的方面，我想就像雇主一樣，在工資和薪水方面進行更多的談判，就像影響勞動力的因素一樣，我們必須增加它，那就是你即使是專門針對家事前台、餐飲租戶等此類職位的非合約工，時薪也持續出現年比大幅成長。

So that really hasn't slowed down maybe slow down a little bit, but it's still well above historical norms. So a large outside of the taxes and insurance, that was probably the largest increase we saw to that was impacting margins this past quarter.

所以這確實沒有放緩，可能會放緩一點，但仍然遠高於歷史正常水平。因此，除了稅收和保險之外，這可能是我們在上個季度看到的影響利潤率的最大增幅。

Okay, great. I appreciate all the color. That's all for me.

好的，太好了。我欣賞所有的顏色。這就是我的全部。

Bryan Maher, B. Riley FBR.

布萊恩·馬赫 (Bryan Maher)，B. 萊利 (B. Riley) FBR。

Thank you, again. Just a quick follow up on your asset sales. Can you give us a little bit thoughts on the timing of the how they play out through the year, kind of what you're thinking on pricing relative to book value and who are the buyers of these assets? Are they are they more locals? Little color would be helpful.

再次感謝你。只是快速跟進您的資產銷售情況。您能否給我們一些關於它們在一年中表現的時間安排的一些想法，您對相對於賬面價值的定價的看法以及這些資產的買家是誰？他們更多的是當地人嗎？一點顏色會有幫助。

Sure. So sort of 22 probably start with the first. The one that we talked about briefly on that on the call was we are selling one Radisson Hotel as part of our Radisson agreement that is under contract to sell for $3.3 million. That is expected to close in the next 40 or so days. That one was an outlier in that portfolio.

當然。所以 22 可能是從第一個開始的。我們在電話會議上簡要談到的是，作為麗笙協議的一部分，我們將出售一家麗笙酒店，該酒店的售價為 330 萬美元。預計在未來 40 天內完成。那是該投資組合中的異常值。

It was the only one that was producing negative EBITDA, both us and around us and wanted to sell it. We're taking out of the agreement, the management agreement, but we are the owner's priority and the guarantee are not getting touched. That remains the same.

它是唯一一家產生負 EBITDA 的公司，無論是我們還是我們周圍，都想賣掉它。我們正在取消協議、管理協議，但我們是業主的優先事項，並且保證沒有被觸及。這仍然是一樣的。

But back to the 22, which is still the larger part of the portfolio, both at all 22 of those are in the market now we haven't called for first round offers yet. We'll probably do that towards the end of March, beginning of April, it's likely my sense is those are likely it's not going to be one portfolio buyer. My sense is it's probably going to be anywhere from five to eight buyers if I had to guess I'm buying one-offs or portfolios of three, four or five hotels, a lot of the buyers.

但回到 22 款，它仍然是投資組合的較大部分，其中 22 款都已在市場上，現在我們還沒有發出第一輪報價。我們可能會在三月底、四月初這樣做，我的感覺可能是，這可能不會是一個投資組合買家。我的感覺是，如果我必須猜測我購買的是一次性飯店或三、四或五家飯店的投資組合，那麼可能會有五到八個買家，其中有很多買家。

So in terms of timing, my guess is you'll start to see some close in the second quarter. Probably the majority in the third quarter had the buyers for those hotels. A lot of them are the same buyers that we had back in June back in 2021 and '22, we are marketing these encumbered of brands, so we're selling them. I'm expecting buyers to enter into long-term franchise agreements with Sonesta just like we had done a couple of years ago when the majority of those were sold brand encumbered.

因此，就時間安排而言，我的猜測是您將在第二季度開始看到一些結果。可能第三季的大多數都是這些飯店的買家。他們中的許多人都是我們在 2021 年和 22 年 6 月遇到的買家，我們正在行銷這些受阻礙的品牌，所以我們正在出售它們。我預計買家會與 Sonesta 簽訂長期特許經營協議，就像我們幾年前所做的那樣，當時大部分特許經營權都是以品牌為代價出售的。

So it's a lot of the same existing franchisees that have had good success and understand the semester brand. So what we've seen so far has been a lot a lot of interest, which which isn't surprising again, because we have we have that, that group of previous buyers, but also the transactions that are occurring. It's either very, very high end hotels or it's the hotel was kind of the lower price point more select service and extended stay hotels.

因此，許多現有的特許經營商都取得了良好的成功，並且了解學期品牌。因此，到目前為止，我們看到了很多興趣，這並不奇怪，因為我們有這群以前的買家，而且還有正在發生的交易。它要么是非常非常高端的酒店，要么是價格較低、更多精選服務和長住酒店。

So not too different than what we had a lot of a lot of interest there, at least preliminary in terms of pricing versus book value. So there's a few variables there. Number one is it still is a volatile market environment. These had negative EBITDA for that and last year. So you've got really strong US in-place cap rate on it, it's more of a basis play. So the other the other variable there is how much pay for CapEx that a buyer is going to put into their on their underwriting in terms of what their overall cost and overall basis would be.

因此，與我們在那裡有很多興趣的東西沒有太大不同，至少在定價與帳面價值方面是初步的。所以這裡存在一些變數。第一，市場環境仍然不穩定。這些公司當年和去年的 EBITDA 均為負值。因此，美國的實際上限利率非常強勁，這更像是一種基礎策略。因此，另一個變數是買方將根據其總體成本和整體基礎在承保中投入多少資本支出。

So my sense is we may not get all the way to book value, but I don't think it's going to be too far below that. Again, we have and I'll caveat that with we haven't received the offers yet, and it's a volatile environment. But given where our expectations are and our valuations are, I would say we'd probably be somewhat slight somewhat somewhat below that, but not too far.

所以我的感覺是，我們可能無法完全達到帳面價值，但我認為它不會低於帳面價值太遠。再說一次，我們已經收到了，我要警告的是，我們還沒有收到報價，而且這是一個不穩定的環境。但考慮到我們的預期和估值，我想說我們的估值可能會稍微低於這個數字，但不會太遠。

Okay. Thank you. That's very helpful.

好的。謝謝。這非常有幫助。

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

我們的問答環節到此結束。我想將會議轉回總裁兼首席投資長 Todd Hargreaves 發表閉幕詞。

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

感謝大家參加今天的電話會議，我們感謝您對 SVC 的持續關注。

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。您現在可以斷開連線。