Apple Hospitality REIT, Inc. (NYSE:APLE) Q2 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 09:00 am ET

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Apple Hospitality REIT, Inc. (NYSE:APLE) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Apple Hospitality REIT Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Kelly Clarke, Vice President, Investor Relations. Thank you. You may begin.

Executive
Kelly Clarke

Thank you, and good morning. We welcome you to Apple Hospitality REIT's second quarter 2019 earnings call on this the 6th day of August 2019.

Today's call will be based on the second quarter 2019 earnings release and Form 10-Q, which were distributed and filed 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 statements 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 hotel 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 Chief Executive Officer; Krissy Gathright, our Chief Operating Officer; and Rachael Rothman, our Chief Financial Officer, will provide an overview of our results for the second quarter 2019, as well as an outlook for this 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.

Executive
Justin Knight

Thank you, Kelly. Good morning, and thank you for joining us today. Before we get into the results for the quarter, I would like to take a moment to introduce everyone to Rachael Rothman, who we welcomed as CFO on July 1st. We are pleased to have her join us, and we know that her extensive experience within the hotel industry and among the financial community will complement our existing team.

I'm incredibly proud of our entire team and their dedication to our shareholders, the industry, our community, our management teams, the associates at our hotels and our guests. We have built a dynamic organization over the past 20 years and look forward to what we can achieve in the next 20.

During the second quarter of this year, performance across our portfolio of hotels was steady. Through portfolio optimization, we were able to increase actual RevPAR 1.1%, and comparable hotels RevPAR