APLE - Earnings call transcript Q1 2018 | Apple Hospitality REIT, Inc.

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Operator

Greetings and welcome to the Apple Hospitality REIT First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kelly Clarke.

Kelly Clarke

morning. good and you Thank We welcome earnings May, first XXXX Hospitality to on this Apple call of REIT’s the quarter you Xth XXXX. day XXXX distributed will the call based earnings quarter release, Today’s which afternoon. yesterday be was first on

to actual As of risks as by should materially carefully a or or which and required be and with regarding the operating Any only other Federal to forward-looking described statements, as factors involve in Apple today, statements cause thereto, statements defined review Apple results. Hospitality obligation including publicly factors, as statements. update reminder, statements Hospitality’s These implied of forward-looking future that will by except the results, law. notes SEC. Apple Laws Participants known any from forward-looking XX-K achievements results, call expressed our makes future filings achievements statements today’s Hospitality by the XXXX performance, contain speaks or Company Securities forward-looking as and such different may other unknown risk as and performance, well no statements, the Form revise undertakes financial and or

non-GAAP such adjusted FFO, discussed to and filings GAAP as modified in earnings of addition, included EBITDA, yesterday’s to be measures with We release during other FFO, of EBITDA, will encourage call. those measures In and this the participants certain reconciliations performance review measures SEC. as

our Officer; additional Gathright, Chief release Peery, about Justin visit earnings For Company, Officer; or our This information Knight, Operating Officer. and our a Krissy the of Executive copy morning, applehospitalityreit.com. Financial the Chief Bryan Chief please

first Company. outlook the an overview sector of and the quarter and XXXX an the provide for We for our results will for

for to open CEO, it Justin overview, the this over to pleasure Knight. Q&A. the time, Following our turn the call will At we my is call

Justin Knight

XXXX, we Kelly, Exchange. we approximately on have trading celebrate of you, York Since in to third the buybacks. shareholders Stock New In week, just a dividends $X will billion good over year May and morning. share Thank our of returned and

dividends in refined We our listing on by rooms and consistent investments strong, based with and we investors generate properties over stable, brands, unencumbered. cycles. operators providing margin. have and on strategy is align of established their underlying ownership national industry-leading multiple a work interest with assets a proven innovative value focus with and to and appreciation decade focused half flexibility own over and a contracts regional which Our preserve management We relative using and sell that predates

to of our strategy offset of leisure REIT continues to and balance in the the exposure generally Comparable to make provide storm on We’re of broadly quarter, with related were quarter in in adjusted RevPAR a pursue more commitment and assets with expectation. flexible element achieve predictable was Economic on in boost markets, diversified provide guest and traded demand we the XXX capital hotel strong maintaining we on segment most quarters, portfolio across and good that contributes quarter. across security our publicly for which in relatively us results With travel variety remain dispositions, industry. rates We reinvest a needs. to driving consistently industries [ph] our our and to the for margin Operational hotels ability EBITDA booking stable positive, Business indicators RevPAR the from our stable; at for midweek we’re the competitive growth and hotels focused and this volatility diversified our first shareholders. portfolio the months a we strength third exceptionally yield first night demand Easter periods to well-positioned markets X% volatility are generators. our holiday to during trends reduce the maintain hotels We service by through positioning increased business was shift. travel, of second business the satisfaction across strong U.S. ability additional and XX%. is demand in benefit refine to focus part largest line tactical able occupancies provide the future some select our of transient calendar lodging coming Today, with significant and approximately acquisitions opportunities our markets, remain provides segment. XX approximately for in the and enhance growth sheet hotels. comparable in lingering marketplace. the and portfolio Current of with shorter indication on Each to were to our

attractive construction, both XXXX, & in We for acquired commitment full-year in anticipate downtown that downtown year-end management able position Atlanta rising instances, More to XXXX within pricing the for guidance XXXX to hotels $XX earnings. Inn & the with million. for a we renovation Phoenix & the significant continue Suites in in respective our and Inn we were feel downtown quarter, two and entered to exceptional acquired Memphis, a key transitioned in this, of doing, cost million. markets. combined for their constructed combined environment. the the $XX into per Suites In provided confident advantage lock newly We locations hotels Suites the prior price will and with forward recently, in We property we Hampton take Hampton Hampton scheduled of in purchase so during the to Inn a

forward have the in Cape Inn fourth We a Cape of quarter closing Canaveral, HomeX three on and the at in Florida. and combo trusted Suites Suites the in year on XXXX. Suites hotels, this Suites airport HomeX HomeX anticipate in Hampton and Orlando additional contracts Orlando & We developers, with hotel a combined the Canaveral

our believe trends. from challenging, source economic in which to While increase ability benefit with selectively hotels presence and and into the to which to continues reach demographic new markets we we have expand consistent in our be current confidence transaction continue market high-quality markets our strategy our will

we also wide for of XXXX, purchase financing interest proceeds in on the selected seen months. for a $X.X select the have sold total existing strength could billion total including in million. Ten, debt in of Exchange, hotels, approximately fueled XX price hotels the for which part of facilitate have an York merger New continued $XXX assets, by Apple XX we availability Stock dispositions and service hotels listed acquired for uptick help markets Since year REIT coming to in the We of approximately our with beginning and

that nearly Marriott and XXX purchased decades Our of in period two hotels has hotel has and sold Hilton XXX. over transaction team experience and

starts will markets, in in within we outlook XX.X% speaking, see to of or will we economic construction end significant had on from construction upper starts broadly new peak our call. the upscale availability construction financing, reacceleration new one in in properties decrease or anticipate slight this construction moderate, radius, more the supply quarter, new the we absent upscale an X-mile first the for and the to a deceleration continue a our Based new expect at beginning midscale, a a reported projects last industry increase increase construction the While percentage of growth starts. on year; construction costs, meaningful upper the of see our or

effective strength markets of competitive enable of believe and year, in markets. our of headwinds the as hotel low actual to of will be our hotel and brands openings, result a this within our new hotels our some us could age there the Although we remain

be the portfolio. We for to in year confident the optimistic continue fundamentals remain the about prospects and of our

to to and And overall. my industry-leading performance her across commend in margin on incredibly her the they our the challenging in key play the of portfolio to asset with that, of team to performance call provide performance operating to Krissy is to management hand combined our environment. pleasure shareholders industry, call over expertise the hand operational detail role during additional it I for Before driving work would over our the dedication quarter innovative our Krissy. like their do. proud approach and Their an to I the I’m increasingly markets and now and experience, our

Krissy Gathright

you, Thank Justin.

quarter were first in to that pleased line largely are with results expectations. We report our

We recent expectation to of the as for accelerated is our in showing since continue the Weekday the month growth move in are improving each business continued demand demand. trend trends we also year stronger month. business and strength to start and encouraged that by RevPAR leisure has travel

RevPAR be or For to of we at our anticipate range. growth the high end the our second quarter, above yearly outlook

occupancy strong the growth at quarter, remained our XX% During coming of our rate. substantially in RevPAR all with

prior In in and related X%, same-store revenue operators of in the XX% lagged group Our Diego increased over entirely X%. trend group and slight year, Los down March RevPAR to our weather a rated their shift. In our an representing due Easter continued shutdown. in X%. the market off spite instances, a bookings Corporate-negotiated was with Angeles the three as with of Phoenix transient San of contribution solid EBITDA, growth of and higher markets, cancellations our consistent was RevPAR the inclement demand. business advantage group some to take purposeful limited in reduction driven group growth we as government represented transient experienced the government mix, prior few to above the comparison year. a XX% XX while RevPAR coming top of Of for our just EBITDA of the XX% performance markets markets, growth, decline holiday tough was

second over the with course Diego related the San bookings. favorable half solid especially calendar, comp, in performance the more group citywide government expect and improve of We a in to sports and increased year,

declined prospects & Tornado such ASU brand top provide the in nice Kansas arenas, quarter with in benefited We Mississippi, In the business, of of for and outside its has our professional surf should Phoenix following are points. sports Georgia, recovery downtime XX ramp-up. EBITDA center, acquired XXXX, and and hotel Inn lift campus, no Fortune basis we about from new Suites. a XX location RevPAR markets Hampton excited XXX This companies, first and a the our near XXXX. prime Louisiana, convention downtime business the recently XXXX

new Omaha’s under one quarter. renovation. declined is addition, XX% second RevPAR our hotel market in improve performance Omaha expected In Increased demand for the supply and with ramping hotels to

to enter we business teams we to the occupancy into improving revenue the our profit management well-positioned highest can hotels. mix As corporate more are capitalize the the drive months, as hotel on in selective demand managing be higher

storm-related with comparison. and fourth difficult demand the quarter the seasonally business challenging expect a to lower most We be

by feel be mitigated hurricane demand we unrelated the somewhat the in in and Houston However, business impact energy-related modest improvement recovery. in to do improved Miami a will

increase, comparable hotel asset growth. grow persistence Targeted EBITDA, with basis capture revenue adjusted to even diligent our the ancillary cancellation pantry efforts to and As pushing the XX team has resulted points the a to have contributing XX% or management asset were we focus revenue and in conjunction to approximately minimize testament EBITDA same-store XX focused cancellation risen hotel and and a revenue our team, rate incremental in parking, comparable only on movement revenues a out modest extremely further working able of high operators, been with Cancellation intense this basis in decline revenue on growing stream. the in with margin our driving points $XXX,XXX management margin. dates

for our produce continues initiative management technology As to results. labor expenses, favorable

wages growth of occupied face X%, the the labor essentially a with For expenses and row, line in payroll Property controllable in Total less increased quarter room insurance per other operators taxes well, third grew rooms managed X.X% keeping and expectations. market. a for in our occupied challenging flat. increased than X%

deliver our expertise provide efficiencies on results. using laser-focused collaboration the operators additional margins. and financial improving I’ll to detail industry-leading remains in now Bryan over operational on to team with Our to turn our and scale call our

Bryan Peery

expenditures and first EBITDA few of share. we the on, share good touched $XXX revenue invested hotels Krissy and modified XX finished Krissy, of with of numbers per adjusted $X.XX FFO a the Also, of in summarize $XX capital quarter million renovation. Thanks, we morning. the $XXX and To the million, quarter approximately completing million, with Justin per in

the of for remainder business between We X continue $XXX the hotels of announced comparable performance and between combined into growth February. year a EBITDA million to net X%, for At percent interest outstanding Based drivers between million. anticipate debt million, and adjusted our Company of XX.X, current $XXX X.X% the end the comparable approximately and March, adjusted XXXX. our we in transactions, RevPAR $XXX the reiterate we and EBITDA that had on XX.X hotels billion margin between XXXX to-date, visibility weighted-average guidance rate of of income and and for $X.X with operating of remainder provided million $XXX our

our of $XXX the Our XX% $XXX fixed debt end debt of in comprised has property the rate. is our debt, At facilities. on $X.X of million unsecured an level credit million approximately and of quarter, billion outstanding effectively

May XXX,XXX share quarter, yield, the Also $X.XX price Company common based $X.XX share, represents annual During during the annualize closing average year, quarter, of the and to we on an per shares per the first our beginning share the have distributions of at the the repurchases. an $XX.XX $XX common paid through $XX.XX. X.X% per repurchased of Xnd dividends approximately Since shareholders returned approximately Company price share. million of to

to meeting shareholders scheduled once for and Board. have Finally, is highlight XXth, that before our a I we annual our provides amending wanted again destagger for our to charter our shareholder that proposal May

we you our and this corporate we against well-positioned for Although strategy encourage joining strongest our we now piece optimism over us morning. as of obtain We years believe to questions. entered this the Thank continue we that the investor shareholders. quarters value. shares for open call we to some pass and each execute accordingly. shareholder these core their increase have consider Thank the proposals of this to the couple of are that morning. an important will you And proposal, to to to unable vote our we meaningfully required past have been to joining is up beneficial this With for long-term, continue believe us votes is governance year,

Operator

Our Markets. question. line KeyBanc Please from the comes of Wurschmidt from [Operator Instructions] Austin proceed Capital your with first question

Austin Wurschmidt

made Hi. guys. comment a Good touch wanted on morning, I to you Justin.

could environment, facilitate we you’ve some You fueled coming interest you by thought service service select assets, financing in attractive and uptick months. of part seen Could comments in those kind see paraphrasing the dispositions an uptick help seeing which little select in here, that you said an an in expand could today for what you’re transaction market the just a context leads that add on to months? to in the you coming believe

Justin Knight

the to and capital. a the a well. I the and equity these recycle with as But And off when it’s to dispose availability strengthen from existing of owners ranging of That’s some of potentially individual others which to morning. that a to referencing an key this small with time shops, operators an and our we financing seems increasing and made What we mean receive continued overall; our for optimism from on then, uptick industry have I advantage include variety highlighted to portfolios. Good I’ve potentially as remarks But specifically part and calls. seen continue it the reverse we’ve position I different Austin. inquiries And shops for groups that inconsistent be time portion Certainly, markets. comments of and isn’t past of opportunity small to And portfolio I assets private prepared to in driver, my relates the I two-fold was debt strengthen reverse to say markets, been us think the conversations larger consistent assets one. two, debt inquiries, really, strategy. driver was the in from take think,

don’t this anything We as specifically to to opportunities time. they we explore announce at But have continuing themselves. present are

Austin Wurschmidt

you is how sort presale And for deals potentially And but larger deals there of deals today? are been reinvesting recently. proceeds seen the thinking you’ve today portfolio announced about small from portfolios, an appetite Most seen? you what type the these of then, we’ve new have mentioned

thinking So, about are just you curious usage? how

Justin Knight

question that in we’ve our consistent to as response So, been well.

And with refinance private chosen, widely equity should publicly have pursuing think groups question I our is the larger In exists that first. clear was they of active potentially pursue potential financing. we’ve available, as that exist other proceeds, larger portfolio more certainly portfolios we’ve in let become a is than availability and based your as appetite some And me acquisitions, number We in to as portfolios. rather That financing the think terms well, there acquisitions, on an past banks to known well, does answer of been I of use assessed portfolios competitor alternatives. that same first think of possibility. calls for with larger decide

at proceeds, new our are locations attractive to you that four deals. price relative continue of selecting, I been able strategy. terms high-quality, assets to anticipate commitment acquire of with per if look we think In use consistently hand we the in And I a you will think prime that think we’ve be portion these should we’re key that of

wholly both also on and it’s we’ve the should both assets, asset Atlanta that of depths evaluate to downtown you that execute matter, think with Memphis those consistent to -- note diverse really of transactions assets those the as to we not degree on of looking in ability [ph] we exceptional think, I downtown two a highlighted overstate larger in locations the We going more marketplace been as of our side, assets have now individual well. active for the and assets, high the existing with to and business the leisure the and in heart right of market confidence well. acquire. again, acquisitions but type And in I’m quarter, we’re portfolio the on continue

Austin Wurschmidt

then, me. for the one And just last

As past on to I shift rates the the then, quarter optimistic travelers think in from seeing spoken corporate the when noise are the particular, around the and you’re the feel this maybe in at more particular And local time of the years? we you’ve emerging for focus in trending how through move you being quarter holiday -- negotiated travel. kind May, about versus would corporate trends of some what a

those appreciated. around be would any So, thoughts

Krissy Gathright

Good Austin. Absolutely. morning,

line, results year, been expectations. my this the in in with so in So, and have line far mentioned comments, as generally I

towards business geared we months and travelers. are are June, May into these enter occupancy more that As higher

on us shift. the better we those demand a to holiday of indication business really without give So, relying are months to going

with that our And reports improvement field anecdotal for corporate with months hearing to expectations. pointing consistent versus Forecasts we’re the it’s in some the demand. operators in encouraging those are from improvement

corporate at to think point, also particular industry; it’s note important would I Now, this it’s but modest improvement it’s in multiple I say one a any industries. different demand not

comment looking as the we you a good and more is much especially negotiated -- with where the we’re with do we’ll of travel. remainder And us, through geared comfortable May more our which then, June quarter. at with for we businesses business able local mentioned where and account. So, type, product further get But travelers, about feel being to towards on feel today,

So, producing profit hotel, allows that increased what business. discounts see then, yes, then, yielding discounts reduce whether that demand more up us in as is levels we to the higher our that the more each And out hotels discounts whether it demand travel, be and to in then sure managers see aren’t can volume strong. can we have business on on reduce from that that travel -- a needed we different the as might focus be making or like fourth multiple that management rated, type with the first times mix [Ph] different is do is pick and rates on also in that business that a process quarter standpoint, government selective drop of first on leisure push be or individual do it would we or higher to lower we and expect rate

Operator

question. Our Baird. with line from Please next of from question comes your Bellisario proceed Robert Michael the W.

Michael Bellisario

$XX this first million I wanted little on bit. are $XX million CapEx year? to to housekeeping, guess, a just still you I just thinking focus

Bryan Peery

the mix. depending range might be in the get range of timing still be is executed, where range, little that the a end of bit on but that we a good. right It that low have low could full-service are renovations and end those on Yes. of of now just when could And we couple be because

Michael Bellisario

renovations. and in properties when and then, open like those? more big Got you you maybe Memphis, the thinking said, acquire some renovations it. two might on Are that require require And to acquisitions investing significant new be the think, how you doing are you about Atlanta them? I as acquisitions not properties in they

Justin Knight

in the gauge been the we the long this for necessary can effectively we We’ve that to feel dollars Absolutely. position doing marketplace. hotels enough appropriately

have project We management. in-house

project due in assess time, property, able marketplace the important, urban active are As of markets, that And within times take there that send acquisition have an on the part diligence, We opportunity and in for of our will us. our asset acquire team locations as the at that position extended existing And seeing look an markets. to we where levels group our we long-term feel best to environment shareholders. CapEx that side. value the side long-term that marketplaces our period management folks especially acquisitions our we representatives who’ve of and exist a assets but assets acquisitions the given in on And might potential is view management group for location as markets. hotels create in a been often management those from extremely prime opportunity. are our look expertise really be to and We within team the the asset fully for the includes the increasing we and holistic supply, CapEx are to side,

Michael Bellisario

about And pricing underwrote? should year we expected these two guys and how properties, the that the big impacting you first expectations at renovations return then, think

Justin Knight

my remarks, management. we as Again, I prepared cases, highlighted transition remembering both in

will renovations, the to at fourth and to of potential up markets we at But, the season [ph] disruption upon size looking periods. next has our we of renovations, acquisition And anticipated. standpoint, for markets. for renovation the coming being price [indiscernible]. our first Obviously, time quarter, well based or anticipate like plan that in disruption, year time demand all really, the ends scope of the a we is look be beginning And have Arizona beginning The as larger as of some in we do acquisition those really disruption. see Atlanta And a that second Florida that where to the the it immediately a we in minimize we renovation most property is when can be of from the look us. numbers Typically staff. confidence quarter you kind And will we we end sometimes would year perform to significant. different In management right inverse will addition at can will on actual assets when renovation we will there out teams, perform level look first you minimize anticipate of transition have we quarter.

Michael Bellisario

And then, last one revenue side. for management the me on

holding You back business the this any quarter. because something mentioned in you basis? of first how go to this growth are you’re do forward a And group then, Is boost on about potential margin trying that mix RevPAR should shift? or we think

Krissy Gathright

clarification business on driving As base on specific good the general, the certain well they that business colder due quarter the group and quarter inclement higher in there strategic on, markets first just than is base solid on and actually hotels or had were a needed often sports markets occupancy, transient. where to weather certain had business, storms in that as those and and shifts other was more mentioned rated I markets, but doing our were group very counted focus to that In first unexpected, business higher oriented. good the rely

negative hotels There were cancelled. shutdown. around as the as there actually was our of So, government short-term well government some groups there that some impact

[ph] we those the the those when do they year. opportunity will for choose transient to spring make business, -- if to with group that. we consistent do to make Now, week, that But sure driving months teams have constantly being rate. that management groups that to pricing that group as adjusting we it us the it. will where also higher have And several layering right have weekends that be rates them and business well. management summer sure then, working are the good and later they the rescheduled opportunity when sure forward, are on take the of on the sports. the with And option the news the we’re to pretty from working warmer when groups give only we our rated and expectations we on, dynamically we reunions, whether layer just in group our in we the they And more would going going If on strengths and we make is, weddings, see group additional are revenue revenue try it we family team time additional the be at are need have traditionally, during are groups there drive to with the opportunities

hopefully So, perspective. a you that gives more little bit

Michael Bellisario

It Thank me. does. all That’s you. for

Krissy Gathright

Thank you.

Operator

next the Bryan proceed Maher comes your question Our Riley FBR. B. with Please from question. from

Bryan Maher

it. couple price right, you to have some you an you interest would sell dispositions of that simply it looking is quick potential would the and opportunistic in year properties if sell, is this have are talk strong, for I about the When questions. characteristics and you or maybe of financing if kind remain what the you have inbound interest

Justin Knight

and be would In markets individual to both. potential. latter, from to brand relative one those and inquiries related assessing our inquiries of dispose CapEx specific within the at the The overall get assets, look within as we yes long-term product continue portfolio to and portfolios. extreme assets that more of refine to build we positioning brand the range to concentration markets everything groups case particular to are looking Key and the look portfolio. of inquiries that needs say selective to to to I strength value from of our from we’re to considerations enhance age continually would general

look for within to mix individual to demographic time portfolio the rates within and the our markets trends growth relative really evolving and adjust at looking economic continually various in optimize portfolio order marketplaces. case over We’re of in the

we strategic to sale. individual we’re And assets, But, portfolio more So, value can is which receive would exit together inquiries, overall but the refine enhance the buyer, extremely putting and of for that on our feel everything consider. that I so portfolio a not open we create portfolios think within value is for our reverse in our at there us we broad specific nothing of portfolio. also terms these inquiries as we certain maximize within value price, we for consider as

Bryan Maher

a I been your Okay. Thanks up that X% then, mean, in think that? this And effort you with some every roughly made that. like taxes there’s doing control for are guys tax a number, lot property to have especially you you of guys pretty big can’t expense. were a sustained since And states seems comment X%. year. property to I deal just What

Krissy Gathright

to Property than and taxes tax had very we tax localities a were digit estate but estate aggressive taxes -- in very bit X% together increases little Property actively is tax were the that bit tax standpoint, property But to in that in were X% from working and was are to that. the appeal that. low maintain than good higher a range, insurance And single able little X%. success real actually try be mid real less the they that; assessments to we and to increases to year up to up been definitely a work that. do range, considering in the these have insurance challenge

we’ve with the with as most that the part part, additional also for an hotels, that is usually that. appeals pretty the the with have done associated property we’ve there increase that and which had of on we in work you acquire been As taxes deals. underwrite we’ve pleased But results to

Bryan Peery

quarter increase year the little -- year, And can into of too. XXXX, on play results the a not the that in last that of in And appeals bit favorable appeal results but taxes timing to first quarter. more hit we of dilute risk had first last the property

Bryan Maher

for for Can lastly to just guys then, me. you? this important that’s why mean, so going the at destaggering for And Board you now. some of discuss been have I time listeners just you

Justin Knight

those to speak Bryan the terms strategically a of can believe things getting what and And the with to is sufficient it’s interest why can firmly say a speak the to that’s create of make is destaggering changing our one playing and order best to are public we field there we so in team while say we it we increase us, I consistency the And here, how then, consistent in governance and that a us. Board it for visible believe are destaggering it’s we important certain that as management our Board chance can of in part things. our that signal Really to votes and DNA perception, shareholders. happen. of of

the that mix Because of stock, being have number of of the number institutional we have shareholders ownership an of a likelihood whom don’t we things have as get this as initiative, the shareholders increase portion degree see an well time. that we the of we we get we and some the reasonably for retail feel and necessary. that But, have high have will our our some tried We within time. confidence that struggled large this as to as votes we’ve internally, of done increased changes other through of important

Bryan Peery

and happen, just about majority it optimistic then last it’s based got requirement to we super listen hear Historically, passed and will Justin’s one on measures this been year, of a requirement that a vote was are year won’t Yes. or vote, more anymore. changed. the it’s you majority point, have they the To

Operator

Our from your next Please of the Barclays. proceed question. Powell Anthony comes question with from line

Anthony Powell

some that forward-looking. others business the quarter, are the the may commented been March, transient saw why whereas different quarter? a maybe business you in Could a travel, corporate REITs comments your in more they travel better a give us On bit your of particularly in have than corporate

Krissy Gathright

we the shift. from Well, impacted in were definitely holiday March,

first group week a the So, quarter, some the and March for commentary was soft for. of the I of is -- also And us. then, we smaller around in think last percentage was other have group

So, to the quarter, really strongest less have business third the back Again, second we months that. strongest travel and quarter would for us. the from going impact

in of as that able we’re the related by business encouraged forecast our to So, and travel seeing government somewhat the were percentage of to negotiated we were And the stable there. the of terms a commentary even corporate we Easter actually is shift, still mix. that maintain more fact travel with

Anthony Powell

Thanks. turn if you How April Got it. of can that did data? RevPAR, in out give terms

Krissy Gathright

mid the to in expectation range. with X% line in out turned April

Anthony Powell

has ADR of debuting trended how How to talked about they I their you this and Hilton were the mentioned that pricing help And in the quarter. do your cancellation over flex past fees you think, quarters? up expect also summer. couple

fee that do seeing? to you cancelation revenue the impact So, you’re expect how

Krissy Gathright

few our first the So, flex of quite released the in pricing markets. has actually piece, a on been

assessment. results would early too So, a we it’s too is see definitive it early cancellation -- from we doing make to early to it that expect to the from that yet. it’s But just what are indications, But seeing lengthening and do window.

Cancelation very So, my mentioned we’re fees, particular as net as of, a to we asset we XX-hour -- for do we us our the has cancelation which our think and fees, late window, we’re extremely we that highly continue team collect cancelation in working of very from. revenue an in proud seen that I being with throughout supportive comments, to been operators. -- and inside initiative. able And go in that are year, be management going fee is in the the cancellations positive have increase I’m who diligent

that to different And window brands us help these those we is booking is it we’re picture even is think frame. I that to on, -- which all further have terms cancellations, short-term there. policies the will gives get that extremely rates, more in and shorter, opportunity And having those handle positive goal drive that this a revenue resale to automate talking I us do very that. continue a continues in Now, to better try the though then you improve our about to in we’re but we able expect in process currently. the time do from management and a is impact rooms short being should lift the of quarter -- manual a working overall capture then nice to we saw tell to with a And will

Anthony Powell

me buyback. Thanks. it. one on And the more Got share for

bought price. earlier? for back buying portfolios a you’re sell outlook you the your quarter that You shares overall at if of What’s this hotels or talked some some good in especially year, about these able to shares back

Justin Knight

is day. on particular shares think pricing a the I of our the directly that for is shown to appetite connected shares we’ve what

the Given recent of increase implicit that and volatility the will discount significant in both portfolio relative share of acquisitions as value prices, value a within market. our the quarter, and we viewed saw with to opportunities shares opportunity the be to acquire

see assets. sheet continue assess acquire opportunity We the and to I use with to pursue shareholders saw our of is which balance also opportunities, and us we And evaluate, both you’ll the provide to what think our will feel those opportunities individual strength greatest value.

Operator

from of Instructions] Please proceed from next with line Our [Operator comes Jeff the Wells Fargo. your Donnelly question. question

Jeff Donnelly

renovation am brands sooner just are on has more I maybe just changed hotels just that for do recent cycle or the that cycle Krissy, of the pushing you years, hotel you think feel flexes itself? in kind do curious, cycle renovation with

Krissy Gathright

the it’s those year. well, we hotel coming are towards and to through and much on And they push or detailed pretty for to hasn’t behind think, think If that’s with market, because somewhere and that six-year we hotel we we timeframe maintain do six pretty the we supply our out and the very the that we hotel card And looking when we eight talk there more consistently I are more guys the might because at and renovate calls, great, satisfaction we the there, very about and each won’t looking or between cycle. satisfaction minus of are the because consistent scores, the we the our -- that renovate do that score feel changed there our and been are that hotels the proud there renovations in much a push here renovate. If versa. hotels in renovation guest we gotten reflective, -- we very how renovating And are I and is tear hotels reflect are of a hotel same which fairly on more a we plus we the set, you scores has as renovations you mean, disruption hotels. are timeframe. of those our scores or part going might vice us. that competitive that that in And we’re competitive more cycle are much amount balance landscape appreciative hear years. guest been doing every work one has trip or been determine consistent consistent renovations, But, including year process going eight-year wear is advisor us we two renovation has

Jeff Donnelly

Hampton or perspective of lanes, or their sticking you be Inn have mainly with spending swim Justin. certainly situations I’m happy, Actually numerous for that I’m you or getting dynamic in is the curious, years time you your Marriott I convincing the I respective Dori is. been brands in of in Hilton close? question and maybe sort too guess curious guess price. see mentioned more will owners one two and just what a [ph] that. where there products, surpassing but past rate the are maybe Garden on Do more true terms not maybe encroaching similar brands

Justin Knight

into So, within marketplace. particular a charge to ability factors of a rate property’s there its are play that number

the pursuant a families, know, within you larger or market, it will effectively condition, amenities have that but have brands with those. certain adjacency Property the the As generators among brand to tremendous very brands, the of Garden be market highlighted is markets, only within demand Inn competing not Inn or amount Hampton we versatility. location amenities service have some with product. you same Hilton may in competing existing the full be Hilton And Hampton seen an effectively in

On effectively we competing the similar scale. Marriott where competing see a Springhill brands even side, is Courtyards are instances chain Suites or within other that with very

I we and you’ll find think, what our continue as reposition is refine to portfolio.

nuances individual less I family see that and slightly over the time, program to will become brand within the -- within in significant And be families to associate product the will brand marketplace. within what and brands to the that more the particular significant the is best looking demand being think product will the meet we We overall brands consistent become identify individual brand begin with loyalty family.

mindful of that. we’re think, I

will portfolio continuing which and it environment. context at to help changing we adjustments, to our looking make We’re our at look shareholders in and us again for in feel maximize that returns that

Krissy Gathright

going strategies [ph] that that we produce. to -- additional growing members bookings. the with Defiantly as we and as the direct vocal work contribution laser would on very to their continue brands, as The work agree long we’re are and continue much comfortable. with even pipeline one feel them growing And additional with piece additional contribution add and at we these to grow as focused with looking supply, brand that that and in is them all brands and that’s we’re all that currently and the programs different said. thing, at of our additional on And to that we we’re that more helping that’s continue what see are understand brand loyalty what seeing. the I channel looking And to from brands then Justin contribution preference

Jeff Donnelly

unlikely? or building see that the answer, restrictions off like related is you that as opposed to maybe specific I brand and things sort radius today at brand, changing brand are if margin family more about that sort guess, maybe maybe road the becomes less family more you down think the and less could about they eventually of chain or super to what see, or the

Krissy Gathright

same going currently get are we from with thing a that we it’s hotels the there Inn, within that notifications them and get not new be on notifications, we’re individual the our so been brand develop same that Hilton to family Hampton and thing might still with brands the get Marriott. One necessary within brand

being look still family. still within the we same at notify and on us brand based they So,

that’s we the back the So, the business. mix then, much we of be on based that’s been the brand nuances and consistent. And on been of and think communicate how brands would something impact the based

Justin Knight

within demand to that. product has back And individual brand what on to are attracts on the only family more for focused heavily branded marketplace, I’d echo marketplace. are And specific individual going of brands. a demand that they creating a to that. us on piece already focused for The changed top-line than much focused that related within developing conversation is nuances, brands

model. look we marketplaces, that at on models. stay. to acquire As And also within produce the operating appropriate margins based brands continues looking to brands those And different very we’re

that we example most perfectly extended where market. efficiently of stay, see the product operates type significant going So, a demand are in select a priced for a market we within opportunities for to with that

Jeff Donnelly

non-votes. On out. Actually you I think, favor vote guys received for broker guess just those If maybe about reason think to was I or in that of last destaggering year, a one I of more destaggering, said, you not want I’m of leave the it I the mistaken, of and just a very don’t more XX% statement. Bryan XX% lot

the So, not think you question is, it pretty going like has I that the would are record lead to to odds XX? clear base good composition you seems the are going simple in are anything majority. changed of to your guess, crossover of shareholder that

Bryan Peery

we year. You are anticipate; have anything, right that ownership If changes. we significant real on no point. did We more now last slightly don’t institutional

help should along. that even are about So push right. it further percentages are But, you Those right.

Operator

turn reached the back remarks. closing Justin call And Ladies the of end session. we for to Knight have like and question-and-answer to I’d gentlemen, the

Justin Knight

joining opportunity this with one at that morning. for travel, our a to thanks us take of you And great you. day. hotels. Have will We stay you Thank us hope as

Operator

conference. today’s concludes This

this You disconnect at lines may Thank participation. you your time. your for

Apple Hospitality REIT (APLE) 8 May 182018 Q1 Earnings call transcript