Apple Hospitality REIT Announces Monthly Distribution and Special Distribution for 2024

Rhea-AI Summary

Apple Hospitality REIT (NYSE: APLE) has announced two distributions for shareholders: a regular monthly cash distribution of $0.08 per common share and a special cash distribution of $0.05 per common share. The combined distribution of $0.13 per share will be paid on January 15, 2025, to shareholders of record as of December 31, 2024.

Based on the company's stock closing price of $15.25 on December 18, 2024, the annualized regular monthly distribution of $0.96 represents a 6.3% annual yield. The company owns 222 hotels with approximately 29,900 guest rooms across 86 markets in 37 states and DC, including 98 Marriott-branded, 119 Hilton-branded, and 5 Hyatt-branded properties.

Positive

• Special distribution of $0.05 per share announced in addition to regular monthly distribution
• Attractive 6.3% annual yield based on current stock price
• Large diversified portfolio of 222 hotels across 86 markets
• Strong brand affiliations with Marriott, Hilton, and Hyatt

Negative

• None.

Insights

REIT Investment Analyst

This distribution announcement marks a notable development for Apple Hospitality REIT investors. The $0.08 regular monthly distribution combined with a $0.05 special distribution signals strong operational performance and excess cash flow generation. The total yield of 6.3% is particularly attractive in the current market environment for income-focused investors. The special distribution component is especially significant as it indicates the REIT has generated surplus cash beyond its regular distribution requirements. Looking at the broader portfolio context - 222 hotels across 86 markets with major brand affiliations (Marriott, Hilton and Hyatt) - this distribution policy reflects confidence in sustainable cash flows from a well-diversified, upscale hospitality portfolio. This geographic and brand diversification provides a buffer against regional market fluctuations and helps maintain stable income streams for shareholders. The timing of the distribution, with a record date of December 31, 2024, also has tax implications for investors as it will be counted toward the 2024 tax year obligations.

Portfolio Manager

The announcement of a special distribution on top of the regular monthly payment deserves attention from a portfolio construction perspective. At the current share price of $15.25, the combined annualized yield presents an compelling income opportunity in the REIT sector. The portfolio's focus on upscale, rooms-focused properties across 37 states provides a balanced exposure to the U.S. hospitality market recovery. The brand mix is particularly strategic - with 98 Marriott-branded hotels, 119 Hilton-branded hotels and 5 Hyatt-branded properties - representing strong partnerships with three of the most recognized names in hospitality. This positions the REIT well for both business and leisure travel recovery. The special distribution suggests robust cash flow generation and prudent capital management, indicating potential for value appreciation alongside the income component. For dividend-focused portfolios, this combination of yield and quality makes APLE an interesting consideration for income-oriented investment strategies.

RICHMOND, Va.--(BUSINESS WIRE)-- Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that its Board of Directors declared a regular monthly cash distribution of $0.08 per common share and a special cash distribution of $0.05 per common share. The combined distribution of $0.13 per common share is payable on January 15, 2025, to shareholders of record as of December 31, 2024.

Based on the Company’s common stock closing price of $15.25 on December 18, 2024, the annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 6.3%.

About Apple Hospitality REIT, Inc.

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 222 hotels with approximately 29,900 guest rooms located in 86 markets throughout 37 states and the District of Columbia. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 98 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded hotels. For more information, please visit www.applehospitalityreit.com.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, but are not limited to, the ability of the Company to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. In addition, the Company’s qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended. Readers should carefully review the risk factors described in the Company’s filings with the Securities and Exchange Commission, including but not limited to those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Any forward-looking statement that the Company makes speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.

For additional information or to receive press releases by email, visit www.applehospitalityreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218997996/en/

Apple Hospitality REIT, Inc.

Kelly Clarke, Vice President, Investor Relations

804‐727‐6321

kclarke@applereit.com

Source: Apple Hospitality REIT, Inc.

FAQ

What is Apple Hospitality REIT's (APLE) latest distribution announcement for 2024?

Apple Hospitality REIT announced a regular monthly cash distribution of $0.08 per share and a special cash distribution of $0.05 per share, totaling $0.13 per share, payable on January 15, 2025.

What is the current dividend yield for Apple Hospitality REIT (APLE)?

Based on the December 18, 2024 closing price of $15.25, APLE's annualized regular monthly distribution of $0.96 represents a 6.3% annual yield.

When is the record date for APLE's special distribution in 2024?

The record date for Apple Hospitality REIT's special distribution is December 31, 2024.

How many hotels does Apple Hospitality REIT (APLE) currently own?

Apple Hospitality REIT owns 222 hotels with approximately 29,900 guest rooms across 86 markets in 37 states and the District of Columbia.

What is the brand composition of APLE's hotel portfolio?

APLE's portfolio consists of 98 Marriott-branded hotels, 119 Hilton-branded hotels, and 5 Hyatt-branded hotels.