Apple Hospitality REIT, Inc. (NYSE:APLE) Q4 2018 Earnings Conference Call - Final Transcript
Feb 26, 2019 • 09:00 am ET
Greetings, and welcome to the Apple Hospitality REIT Fourth Quarter and Full-Year 2018 Earnings Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Kelly Clark, Vice President of Investor Relations. Please go ahead.
Thank you, and good morning. We welcome you to Apple Hospitality REIT's fourth quarter and full year 2018 earnings call on this, the 26th day of February 2019. Today's call will be based on the fourth quarter and full year 2018 earnings release, which was distributed yesterday afternoon.
As a reminder, today's call will contain forward-looking statements as defined by federal securities laws, including statements regarding future operating results. These statements involve known and unknown risks and other factors, which may cause actual results, performance or achievements of Apple Hospitality to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Participants should carefully review our financial statements and the notes thereto as well as the risk factors described in Apple Hospitality's 2018 Form 10-K and other filings with the SEC. Any forward-looking statement that Apple Hospitality makes speaks only as of today, and the company undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.
In addition, certain non-GAAP measures of performance such as EBITDA, EBITDAre, adjusted EBITDA, adjusted EBITDAre, 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 Chief Executive Officer; Krissy Gathright, our Chief Operating Officer; and Bryan Peery, our Chief Financial Officer, will provide an overview of our results for the fourth quarter and full year 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. As we begin 2019, the macroeconomic backdrop continues to be relatively strong with healthy GDP growth, low unemployment, rising corporate profits and high levels of consumer confidence, despite some political uncertainty in the US and abroad. Although the hotel industry experienced only modest growth during 2018, fundamentals are stable and we remain optimistic that 2019 will be another year of steady performance for Apple Hospitality REIT.
Our performance during the fourth quarter of 2017 related to the two hurricane recovery and restoration efforts in Houston and parts of Florida create a difficult year-over-year comps for us, which were exacerbated by the margin impact of the 2018 hurricanes Florence and Michael and ramping new supply in many of our markets. For our portfolio, comparable hotels RevPAR declined 0.8% during the