Apple Hospitality REIT, Inc. (NYSE:APLE) Q3 2018 Earnings Conference Call - Final Transcript
Nov 06, 2018 • 09:00 am ET
Greetings, and welcome to Apple Hospitality REIT Third 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. Please go ahead.
Thank you, and good morning. We welcome you to Apple Hospitality REIT's Third Quarter 2018 Earnings Call on this, the 6th day of November 2018.
Today's call will be based on the third quarter 2018 earnings release, which was distributed yesterday afternoon.
(Forward Looking Cautionary Statement)
In addition, certain non GAAP measures of performance such as EBITDA, adjusted EBITDA, FFO and modified FFO will be discussed during this call. We encourage participants to review reconciliations of those measures to GAAP measures as included in yesterday's earnings release and other filings with the SEC.
For a copy of the earnings release or additional information about the company, please visit applehospitalityreit.com.
This morning, Justin Knight, our CEO, Krissy Gathright, our COO and Bryan Peery, our CFO, will provide an overview of our results for the third quarter of 2018 and an outlook for the sector and for the company. Following the overview, we will open the call for Q&A.
At this time, it is my pleasure to turn the call over to our CEO, Justin Knight.
Thank you, Kelly. Good morning, and thank you for joining us today. Before we get started, I'd like to take a moment to commend the operating teams at our hotels in the paths of Hurricanes Florence and Michael, who in the face of challenging and evolving circumstances work tirelessly to serve and care for our guests, associates and surrounding communities.
In many ways, reporting on the storms and still to capture the magnitude of the damage caused in the affected areas. While the majority of our hotels in the paths of these storms did not sustain material damage and remained operational, the Panama City, Florida area sustained a direct hit from Hurricane Michael, and at this time, we anticipate that our Hampton Inn & Suites in Panama City Beach and our TownePlace Suites in Panama City will be closed through the end of the year.
Although the buildings remain structurally sound, the devastation in the area has lengthened the lead times to complete the necessary remediation and repairs for the hotels to reopen. We look forward to the conclusion of this hurricane season and a full recovery for the resilient communities impacted by these storms.
Storm disruption during the third quarter exacerbated what we had already anticipated to be a difficult quarter due to tough year over year comparison. RevPAR declined 2%, which offset growth for the portfolio during the first half of the year. Year to date through September, RevPAR growth for our portfolio was flat to last year.
Adjusted EBITDA grew by approximately 2% for the quarter and year to date. Continued efforts to augment ancillary income