Apple Hospitality REIT Reports Results of Operations for Second Quarter 2022

Rhea-AI Summary

Apple Hospitality REIT (NYSE: APLE) reported impressive second-quarter results for 2022, with net income rising to $65.3 million, a 222.2% increase year-over-year. Adjusted EBITDAre also surged by 46.1% to $126.2 million. Earnings per share reached $0.29, reflecting strong operational performance driven by robust leisure demand and improving business travel. The company maintained high occupancy rates of 77.9% and achieved a record Average Daily Rate (ADR) of $153.35. Additionally, Apple Hospitality enhanced its financial flexibility by amending its credit facility, increasing borrowing capacity to $1.2 billion.

Positive

• Net income of $65.3 million, up 222.2% YoY.
• Adjusted EBITDAre increased by 46.1% to $126.2 million.
• Earnings per share rose to $0.29, a 222.2% increase.
• Occupancy rates at 77.9%, improving 10.2% from the previous year.
• Average Daily Rate (ADR) reached $153.35, a 27.2% increase.
• Amended credit facility increased to $1.2 billion, enhancing liquidity.

Negative

• Total debt outstanding is approximately $1.4 billion, with a maturity profile concentrated within 3 years.

RICHMOND, Va.--(BUSINESS WIRE)-- Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the second quarter ended June 30, 2022.

Apple Hospitality REIT, Inc.
Selected Statistical and Financial Data
As of and For the Three and Six Months Ended June 30
(Unaudited) (in thousands, except statistical and per share amounts)(1)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		% Change		2022		2021		% Change
Net income (loss)	$65,345		$20,283		222.2%		$83,347		$(26,152)		n/a
Net income (loss) per share	$0.29		$0.09		222.2%		$0.36		$(0.12)		n/a
Adjusted EBITDAre	$126,208		$86,379		46.1%		$204,506		$113,687		79.9%
Comparable Hotels Adjusted Hotel EBITDA	$136,509		$93,592		45.9%		$224,418		$127,430		76.1%
Comparable Hotels Adjusted Hotel EBITDA Margin %	40.4%		38.6%		180 bps		37.5%		32.3%		520 bps
Modified funds from operations (MFFO)	$110,803		$67,670		63.7%		$174,263		$76,352		128.2%
MFFO per share	$0.48		$0.30		60.0%		$0.76		$0.34		123.5%
Average Daily Rate (ADR) (Actual)	$153.35		$120.56		27.2%		$145.84		$111.19		31.2%
Occupancy (Actual)	77.9%		70.7%		10.2%		72.5%		63.2%		14.7%
Revenue Per Available Room (RevPAR) (Actual)	$119.41		$85.28		40.0%		$105.77		$70.23		50.6%
Comparable Hotels ADR	$153.35		$122.69		25.0%		$145.84		$112.79		29.3%
Comparable Hotels Occupancy	77.9%		70.7%		10.2%		72.5%		63.1%		14.9%
Comparable Hotels RevPAR	$119.41		$86.71		37.7%		$105.77		$71.14		48.7%
Distributions paid	$34,261		$2,232		n/a		$47,962		$2,232		n/a
Distributions paid per share	$0.15		$0.01		n/a		$0.21		$0.01		n/a
Cash and cash equivalents	$1,598
Total debt outstanding	$1,376,986
Total debt outstanding, net of cash and cash equivalents	$1,375,388
Total debt outstanding, net of cash and cash equivalents, to total capitalization(2)	29.1%

(1) Explanations of and reconciliations to net income (loss) determined in accordance with generally accepted accounting principles (“GAAP”) of non-GAAP financial measures, Adjusted EBITDAre, Comparable Hotels Adjusted Hotel EBITDA and MFFO, are included below.

(2) Total debt outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the Company’s closing share price of $14.67 on June 30, 2022.

Comparable Hotels is defined as the 219 hotels owned by the Company as of June 30, 2022. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.

Justin Knight, Chief Executive Officer of Apple Hospitality, commented, “Portfolio performance continued to strengthen during the second quarter, exceeding our expectations and surpassing 2019 results. Leisure demand has remained robust while business demand, both transient and group, has continued to steadily improve. We are pleased to report occupancy of 78%, ADR of $153 and RevPAR of $119 for our portfolio for the second quarter of 2022. Driven primarily by rate growth and aided by continued operating efficiencies, we achieved Adjusted EBITDAre of $126 million, Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 40% and MFFO of approximately $111 million, or $0.48 per share, for the quarter. These outstanding results further validate our proven strategy of investing in a diversified portfolio of high-quality, branded, rooms-focused hotels with low leverage and highlight the strength of our corporate and on-site management teams.”

Mr. Knight continued, “We are pleased to have refinanced our primary unsecured credit facility in July, further enhancing the strength and financial flexibility of our balance sheet and bolstering our already strong liquidity position. In addition to extended maturities and improved pricing, the refinancing upsized our revolving credit facility and term loans, providing the Company with greater access to liquidity for strategic growth. We greatly appreciate the support of our lenders, their conviction in our core strategy and their continued confidence in the underlying fundamentals of our business. With second quarter RevPAR and Adjusted Hotel EBITDA now exceeding pre-pandemic levels and additional upside remaining as we continue to build midweek occupancy, we are incredibly optimistic about our future. Our strategy is designed to mitigate downside risk while maintaining meaningful upside potential. Having tested and refined that strategy through multiple economic cycles, we are well positioned to maximize shareholder value in any macroeconomic environment.”

Hotel Portfolio Overview

As of June 30, 2022, Apple Hospitality owned 219 hotels with an aggregate of 28,748 guest rooms located in 86 markets throughout 36 states.

Operations Update

• Strong operating performance: For the Company’s portfolio, second quarter 2022 RevPAR surpassed second quarter 2019 by approximately 4%, driven by an improvement in ADR of approximately 8% as compared to second quarter 2019. Occupancy, ADR and RevPAR for the Company’s portfolio for the second quarter 2022 exceeded industry averages as reported by STR. Portfolio occupancy outperformance continued into July 2022, with occupancy of approximately 77% for the month, down 6% as compared to July 2019 and up 2% as compared to July 2021, and continued growth in ADR.

• Strong bottom-line performance: The Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $137 million and Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 40% for the second quarter 2022, improvements of approximately 4% and 10 bps, respectively, as compared to 2019.

• Balance sheet: In July 2022, the Company amended and restated its existing unsecured $850 million credit facility, increasing the total credit facility to approximately $1.2 billion and extending the maturity dates while achieving improved pricing terms across the total credit facility.

The following tables highlight the Company’s monthly performance during the second quarter of 2022, as compared to the second quarters of 2021 and 2019 (in thousands, except statistical data):

		April		May		June				April		May		June				April		May		June
		2022		2022		2022		Q2 2022		2021		2021		2021		Q2 2021		2019		2019		2019		Q2 2019
ADR		$148.58		$151.56		$159.74		$153.35		$110.08		$119.39		$131.32		$120.56		$139.83		$139.72		$145.14		$141.60
Occupancy		77.2%		76.5%		79.9%		77.9%		68.1%		69.8%		74.4%		70.7%		80.6%		80.1%		83.7%		81.4%
RevPAR		$114.74		$115.97		$127.62		$119.41		$74.94		$83.35		$97.65		$85.28		$112.64		$111.94		$121.41		$115.30
Adjusted Hotel EBITDA(1)		$42,376		$45,012		$49,127		$136,515		$23,869		$32,363		$38,582		$94,814		$42,014		$43,542		$49,203		$134,759

										% Change								% Change
		April		May		June				April		May		June				April		May		June
		2022		2022		2022		Q2 2022		2021		2021		2021		Q2 2021		2019		2019		2019		Q2 2019
ADR		$148.58		$151.56		$159.74		$153.35		35.0%		26.9%		21.6%		27.2%		6.3%		8.5%		10.1%		8.3%
Occupancy		77.2%		76.5%		79.9%		77.9%		13.4%		9.6%		7.4%		10.2%		(4.2%)		(4.5%)		(4.5%)		(4.3%)
RevPAR		$114.74		$115.97		$127.62		$119.41		53.1%		39.1%		30.7%		40.0%		1.9%		3.6%		5.1%		3.6%
Adjusted Hotel EBITDA(1)		$42,376		$45,012		$49,127		$136,515		77.5%		39.1%		27.3%		44.0%		0.9%		3.4%		(0.2%)		1.3%

Note: Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

(1) See explanation and reconciliation of Adjusted Hotel EBITDA to net income (loss) included below.

Portfolio Activity

Contract for Potential Acquisition

As previously announced, the Company has an outstanding contract for the purchase of an Embassy Suites by Hilton in Madison, Wisconsin, for an anticipated total purchase price of approximately $79 million. The hotel is currently under development and expected to include 260 rooms. There are many conditions to closing that have not yet been satisfied, and there can be no assurance that a closing on this hotel will occur under the outstanding purchase contract. Assuming all conditions to closing are met, the Company anticipates acquiring the hotel following completion of construction, which is expected to occur in early 2024.

Capital Improvements

Apple Hospitality consistently reinvests in its hotels to maintain and enhance each property’s relevance and competitive position within its respective market. During the six months ended June 30, 2022, the Company invested approximately $17 million in capital expenditures. The Company anticipates investing approximately $55 million to $65 million in capital improvements during 2022, which includes various renovation projects for approximately 20 to 25 hotels; however, inflationary pressures or supply chain shortages, among other issues, may result in increased costs and delays for anticipated projects.

Balance Sheet and Liquidity

Summary

As of June 30, 2022, Apple Hospitality had approximately $1.4 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 3.6%, cash on hand of approximately $2 million and availability under its revolving credit facility of approximately $359 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt was comprised of approximately $366 million in property-level debt secured by 22 hotels and approximately $1 billion outstanding under its unsecured credit facilities, including a seven-year $75 million unsecured senior notes facility that the Company entered into in June 2022 and used the net proceeds for general corporate purposes, including the repayment of borrowings under the Company’s revolving credit facility and the repayment of mortgage debt. During the second quarter, the Company repaid in full the $56 million note payable related to the purchase of the fee interest in the land at its Residence Inn by Marriott Seattle Downtown Lake Union, previously held under a finance ground lease. In addition, during the second quarter, the Company repaid in full six secured mortgage loans for a total of $67 million, increasing the number of unencumbered hotels in the Company’s portfolio as of June 30, 2022, to 197. The Company’s total debt to total capitalization, net of cash and cash equivalents at June 30, 2022, was approximately 29%. As of June 30, 2022, the Company’s weighted-average debt maturities were 3 years, with approximately $96 million, net of reserves, maturing in 2022, including $66 million outstanding on its revolving credit facility.

Amended and Restated Primary Unsecured Credit Facility

On July 25, 2022, the Company amended and restated its existing $850 million credit facility, increasing the borrowing capacity to approximately $1.2 billion, extending maturity dates and achieving improved pricing across the credit facility. Through the amended credit agreement, the Company has greater access to liquidity for strategic growth and the opportunity to reduce its already conservative secured debt exposure. The $1.2 billion credit facility is comprised of a term loan of $275 million with a maturity date of July 25, 2027; a term loan of up to $300 million with a maturity date of January 31, 2028 (including $150 million available via a delayed draw option until 180 days from closing); and a revolving credit facility of $650 million with an initial maturity date of July 25, 2026, which may be extended up to one year subject to certain conditions. The amendments under the total $1.2 billion credit facility provide for additional capacity of $150 million under the term loans and additional capacity of $225 million under the revolving credit facility. The credit agreement also includes an accordion feature through which the amount of the total credit facility may be increased from approximately $1.2 billion to $1.5 billion. The terms of the amended and restated credit agreement are generally similar to the Company’s previous $850 million credit agreement. The facilities will bear interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.25% over an adjusted SOFR rate. At closing, the Company borrowed $475 million under the term loans and used the proceeds to repay the $425 million outstanding under the term loans of the previous credit facility and $50 million outstanding under the current revolving credit facility.

Capital Markets

The Company has in place both a Share Repurchase Program and an at-the-market offering program (the “ATM Program”). During the second quarter 2022, repurchases under the Share Repurchase Program were minimal and no shares were sold under the ATM Program. As of June 30, 2022, the Company had approximately $345 million remaining under its Share Repurchase Program for the repurchase of shares and approximately $224 million remaining under its ATM Program for the issuance of shares.

Shareholder Distributions

During the three months ended June 30, 2022, the Company paid distributions totaling $0.15 per common share. Based on the Company’s common stock closing price of $16.27 on August 2, 2022, the annualized distribution of $0.60 per common share represents an annual yield of approximately 3.7%. While the Company expects monthly distributions to continue, each distribution is subject to approval by the Company’s Board of Directors. The Company’s Board of Directors, in consultation with management, will continue to monitor the Company’s distribution rate and timing relative to the performance of its hotels, capital improvement needs, varying economic cycles, acquisitions, dispositions, other cash requirements and the Company’s REIT status for federal income tax purposes, and may make adjustments as it deems appropriate.

2022 Outlook

The Company is providing the following full year 2022 outlook regarding certain corporate expenses, which is based on management’s current view and does not take into account any unanticipated developments in its business or changes in its operating environment:

• General and administrative expenses are projected to be approximately $34 million to $40 million.
• Interest expense is projected to be approximately $58 million to $63 million.
• Capital expenditures are projected to be approximately $55 million to $65 million.

As compared to previously provided 2022 corporate expense guidance, the Company is adjusting general and administrative expenses by increasing both the low and high ends of the range by $2 million related to executive incentive compensation, based on operational and shareholder return performance through June 30, 2022. The Company does not expect to issue operational guidance or provide additional outlook updates until it has more certainty on trends within the industry or otherwise deems appropriate.

Second Quarter 2022 Earnings Conference Call

The Company will host a quarterly conference call for investors and interested parties at 10 a.m. Eastern Time on Friday, August 5, 2022. The conference call will be accessible by telephone and the internet. To access the call, participants from within the U.S. should dial 877-407-9039, and participants from outside the U.S. should dial 201-689-8470. Participants may also access the call via live webcast by visiting the Investor Information section of the Company's website at ir.applehospitalityreit.com. A replay of the call will be available from approximately 1 p.m. Eastern Time on August 5, 2022, through 11:59 p.m. Eastern Time on August 26, 2022. To access the replay, the domestic dial-in number is 844-512-2921, the international dial-in number is 412-317-6671, and the passcode is 13730500. The archive of the webcast will be available on the Company's website for a limited time.

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 219 hotels with more than 28,700 guest rooms located in 86 markets throughout 36 states. Concentrated with industry-leading brands, the Company’s portfolio consists of 94 Marriott-branded hotels, 119 Hilton-branded hotels, four Hyatt-branded hotels and two independent hotels. For more information, please visit www.applehospitalityreit.com.

Apple Hospitality REIT Non-GAAP Financial Measures

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: Funds from Operations (“FFO”); Modified FFO (“MFFO”); Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”); Earnings Before Interest, Income Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”); Adjusted EBITDAre; and Adjusted Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss), cash flow from operations or any other operating GAAP measure. FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA are not necessarily indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions. Although FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as reported by other companies that do not define such terms exactly as the Company defines such terms, the Company believes these supplemental measures are useful to investors when comparing the Company’s results between periods and with other REITs. Reconciliations of these non-GAAP financial measures to net income (loss) are provided in the following pages.

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.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements continues to be the adverse effect of COVID-19, including resurgences and variants, on the Company’s business, financial performance and condition, operating results and cash flows, the real estate market and the hospitality industry specifically, and the global economy and financial markets generally. The significance, extent and duration of the continued impacts caused by the COVID-19 pandemic on the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence at this time, including the scope, severity and duration of the pandemic, the extent and effectiveness of the actions taken to contain the pandemic or mitigate its impact, the efficacy, acceptance and availability of vaccines, the duration of associated immunity and efficacy of the vaccines against variants of COVID-19, the potential for additional hotel closures/consolidations that may be mandated or advisable, whether based on increased COVID-19 cases, new variants or other factors, the slowing or potential rollback of “reopenings” in certain states, and the direct and indirect economic effects of the pandemic and containment measures, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as being heightened as a result of the ongoing and numerous adverse impacts of COVID-19. Additional 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; reduced business and leisure travel due to travel-related health concerns, including the COVID-19 pandemic or an increase in COVID-19 cases or any other infectious or contagious diseases in the U.S. or abroad; 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, 2021. 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.

 

Apple Hospitality REIT, Inc.
Consolidated Balance Sheets
(in thousands, except share data)
		June 30,		December 31,
		2022		2021
		(unaudited)
Assets
Investment in real estate, net of accumulated depreciation and amortization of $1,401,817 and $1,311,262, respectively		$4,603,244		$4,677,185
Cash and cash equivalents		1,598		3,282
Restricted cash-furniture, fixtures and other escrows		45,650		36,667
Due from third party managers, net		66,429		40,052
Other assets, net		59,931		33,341
Total Assets		$4,776,852		$4,790,527
Liabilities
Debt, net		$1,372,638		$1,438,758
Finance lease liabilities		111,920		111,776
Accounts payable and other liabilities		70,668		92,672
Total Liabilities		1,555,226		1,643,206
Shareholders' Equity
Preferred stock, authorized 30,000,000 shares; none issued and outstanding		-		-
Common stock, no par value, authorized 800,000,000 shares; issued and outstanding 228,886,273 and 228,255,642 shares, respectively		4,579,590		4,569,352
Accumulated other comprehensive income (loss)		22,330		(15,508)
Distributions greater than net income		(1,380,294)		(1,406,523)
Total Shareholders' Equity		3,221,626		3,147,321
Total Liabilities and Shareholders' Equity		$4,776,852		$4,790,527

Note: The Consolidated Balance Sheets and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.

 

Apple Hospitality REIT, Inc.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(in thousands, except per share data)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2022		2021		2022		2021
Revenues:
Room		$312,370		$231,166		$550,346		$379,647
Food and beverage		12,019		5,088		20,483		7,871
Other		13,279		11,150		27,317		18,599
Total revenue		337,668		247,404		598,146		406,117
Expenses:
Hotel operating expense:
Operating		76,064		53,186		140,395		91,336
Hotel administrative		27,353		21,538		51,195		39,282
Sales and marketing		27,492		20,380		49,961		35,268
Utilities		10,553		9,352		20,843		19,912
Repair and maintenance		14,808		11,886		27,836		22,111
Franchise fees		14,800		10,865		26,066		17,784
Management fees		11,445		8,203		20,221		13,457
Total hotel operating expense		182,515		135,410		336,517		239,150
Property taxes, insurance and other		18,779		17,321		37,458		37,009
General and administrative		10,307		8,435		19,945		16,554
Loss on impairment of depreciable real estate assets		-		-		-		10,754
Depreciation and amortization		45,322		46,386		90,646		95,096
Total expense		256,923		207,552		484,566		398,563
Gain (loss) on sale of real estate		-		(864)		-		3,620
Operating income		80,745		38,988		113,580		11,174
Interest and other expense, net		(15,198)		(18,618)		(29,852)		(37,131)
Income (loss) before income taxes		65,547		20,370		83,728		(25,957)
Income tax expense		(202)		(87)		(381)		(195)
Net income (loss)		$65,345		$20,283		$83,347		$(26,152)
Other comprehensive income (loss):
Interest rate derivatives		10,619		(1,356)		37,838		14,726
Comprehensive income (loss)		$75,964		$18,927		$121,185		$(11,426)
Basic and diluted net income (loss) per common share		$0.29		$0.09		$0.36		$(0.12)
Weighted average common shares outstanding - basic and diluted		228,998		224,772		228,992		224,255

Note: The Consolidated Statements of Operations and Comprehensive Income (Loss) and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.

 

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
		Three Months Ended												Six Months Ended
		June 30,												June 30,
								% Change			% Change									% Change			% Change
		2022			2021			2021			2019			2022			2021			2021			2019
Total revenue		$337,672			$242,644			39.2	%		3.3	%		$598,153			$395,090			51.4	%		(1.8	%)
Total operating expenses		201,163			149,052			35.0	%		3.0	%		373,735			267,660			39.6	%		(0.5	%)
Adjusted Hotel EBITDA		$136,509			$93,592			45.9	%		3.6	%		$224,418			$127,430			76.1	%		(4.0	%)
Adjusted Hotel EBITDA Margin %		40.4	%		38.6	%		180 bps			10 bps			37.5	%		32.3	%		520 bps			(90 bps)
ADR (Comparable Hotels)		$153.35			$122.69			25.0	%		5.7	%		$145.84			$112.79			29.3	%		2.2	%
Occupancy (Comparable Hotels)		77.9	%		70.7	%		10.2	%		(4.5	%)		72.5	%		63.1	%		14.9	%		(6.7	%)
RevPAR (Comparable Hotels)		$119.41			$86.71			37.7	%		0.8	%		$105.77			$71.14			48.7	%		(4.6	%)
ADR (Actual)		$153.35			$120.56			27.2	%		8.3	%		$145.84			$111.19			31.2	%		4.9	%
Occupancy (Actual)		77.9	%		70.7	%		10.2	%		(4.3	%)		72.5	%		63.2	%		14.7	%		(6.6	%)
RevPAR (Actual)		$119.41			$85.28			40.0	%		3.6	%		$105.77			$70.23			50.6	%		(2.0	%)
Reconciliation to Actual Results
Total Revenue (Actual)		$337,668			$247,404									$598,146			$406,117
Revenue from acquisitions prior to ownership		-			10,350									-			15,483
Revenue from dispositions		4			(15,110	)								7			(26,510	)
Comparable Hotels Total Revenue		$337,672			$242,644									$598,153			$395,090
Adjusted Hotel EBITDA (AHEBITDA) (Actual)		$136,515			$94,814									$224,451			$130,241
AHEBITDA from acquisitions prior to ownership		-			3,917									-			4,624
AHEBITDA from dispositions		(6	)		(5,139	)								(33	)		(7,435	)
Comparable Hotels AHEBITDA		$136,509			$93,592									$224,418			$127,430

Note: Comparable Hotels is defined as the 219 hotels owned by the Company as of June 30, 2022. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.

Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Reconciliation of net income (loss) to non-GAAP financial measures is included in the following pages.

Apple Hospitality REIT, Inc.
Comparable Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
		2019												2021												2022
		Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2
Total revenue		$282,224			$327,033			$321,161			$278,005			$152,446			$242,644			$284,613			$253,225			$260,481			$337,672
Total operating expenses		180,155			195,324			197,051			183,205			118,608			149,052			175,742			167,844			172,572			201,163
Adjusted Hotel EBITDA		$102,069			$131,709			$124,110			$94,800			$33,838			$93,592			$108,871			$85,381			$87,909			$136,509
Adjusted Hotel EBITDA Margin %		36.2	%		40.3	%		38.6	%		34.1	%		22.2	%		38.6	%		38.3	%		33.7	%		33.7	%		40.4	%
ADR (Comparable Hotels)		$139.83			$145.14			$143.87			$134.61			$99.98			$122.69			$141.86			$131.19			$137.03			$153.35
Occupancy (Comparable Hotels)		73.8	%		81.6	%		80.1	%		73.2	%		55.4	%		70.7	%		71.4	%		67.4	%		67.1	%		77.9	%
RevPAR (Comparable Hotels)		$103.26			$118.41			$115.28			$98.47			$55.34			$86.71			$101.36			$88.45			$91.98			$119.41
ADR (Actual)		$136.36			$141.60			$139.21			$131.41			$99.19			$120.56			$140.02			$131.04			$137.03			$153.35
Occupancy (Actual)		73.9	%		81.4	%		79.9	%		72.9	%		55.5	%		70.7	%		71.5	%		67.5	%		67.1	%		77.9	%
RevPAR (Actual)		$100.71			$115.30			$111.17			$95.85			$55.09			$85.28			$100.14			$88.43			$91.98			$119.41
Reconciliation to Actual Results
Total Revenue (Actual)		$303,787			$341,117			$331,722			$289,971			$158,713			$247,404			$277,164			$250,588			$260,478			$337,668
Revenue from acquisitions prior to ownership		11,541			14,123			16,510			12,982			5,133			10,350			11,321			2,870			-			-
Revenue from dispositions		(33,104	)		(28,207	)		(27,071	)		(24,948	)		(11,400	)		(15,110	)		(3,872	)		(233	)		3			4
Comparable Hotels Total Revenue		$282,224			$327,033			$321,161			$278,005			$152,446			$242,644			$284,613			$253,225			$260,481			$337,672
Adjusted Hotel EBITDA (AHEBITDA) (Actual)		$108,804			$134,759			$124,596			$96,836			$35,427			$94,814			$105,423			$84,609			$87,936			$136,515
AHEBITDA from acquisitions prior to ownership		4,812			7,049			8,607			5,843			707			3,917			4,749			989			-			-
AHEBITDA from dispositions		(11,547	)		(10,099	)		(9,093	)		(7,879	)		(2,296	)		(5,139	)		(1,301	)		(217	)		(27	)		(6	)
Comparable Hotels AHEBITDA		$102,069			$131,709			$124,110			$94,800			$33,838			$93,592			$108,871			$85,381			$87,909			$136,509

Note: Comparable Hotels is defined as the 219 hotels owned by the Company as of June 30, 2022. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.

Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Reconciliation of net income (loss) to non-GAAP financial measures is included in the following pages.

Apple Hospitality REIT, Inc.
Same Store Hotels Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
		Three Months Ended												Six Months Ended
		June 30,												June 30,
								% Change			% Change									% Change			% Change
		2022			2021			2021			2019			2022			2021			2021			2019
Total revenue		$309,822			$226,003			37.1	%		(0.1	%)		$549,876			$369,413			48.9	%		(5.2	%)
Total operating expenses		185,120			137,608			34.5	%		(0.7	%)		343,889			248,195			38.6	%		(4.3	%)
Adjusted Hotel EBITDA		$124,702			$88,395			41.1	%		0.8	%		$205,987			$121,218			69.9	%		(6.7	%)
Adjusted Hotel EBITDA Margin %		40.2	%		39.1	%		110 bps			30 bps			37.5	%		32.8	%		470 bps			(50 bps)
ADR (Same Store Hotels)		$152.07			$121.99			24.7	%		5.3	%		$144.52			$112.29			28.7	%		1.8	%
Occupancy (Same Store Hotels)		78.0	%		71.4	%		9.2	%		(4.6	%)		72.8	%		63.7	%		14.3	%		(6.7	%)
RevPAR (Same Store Hotels)		$118.64			$87.07			36.3	%		0.5	%		$105.23			$71.56			47.1	%		(5.0	%)
ADR (Actual)		$153.35			$120.56			27.2	%		8.3	%		$145.84			$111.19			31.2	%		4.9	%
Occupancy (Actual)		77.9	%		70.7	%		10.2	%		(4.3	%)		72.5	%		63.2	%		14.7	%		(6.6	%)
RevPAR (Actual)		$119.41			$85.28			40.0	%		3.6	%		$105.77			$70.23			50.6	%		(2.0	%)
Reconciliation to Actual Results
Total Revenue (Actual)		$337,668			$247,404									$598,146			$406,117
Revenue from acquisitions		(27,850	)		(6,291	)								(48,277	)		(10,194	)
Revenue from dispositions		4			(15,110	)								7			(26,510	)
Same Store Hotels Total Revenue		$309,822			$226,003									$549,876			$369,413
Adjusted Hotel EBITDA (AHEBITDA) (Actual)		$136,515			$94,814									$224,451			$130,241
AHEBITDA from acquisitions		(11,807	)		(1,280	)								(18,431	)		(1,588	)
AHEBITDA from dispositions		(6	)		(5,139	)								(33	)		(7,435	)
Same Store Hotels AHEBITDA		$124,702			$88,395									$205,987			$121,218

Note: Same Store Hotels is defined as the 204 hotels owned by the Company as of January 1, 2019 and during the entirety of the periods being compared. This information has not been audited.

Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Reconciliation of net income (loss) to non-GAAP financial measures is included in the following pages.

Apple Hospitality REIT, Inc.
Same Store Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
		2019												2021											2022
		Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2
Total revenue		$269,979			$310,174			$301,822			$261,702			$143,410			$226,003			$261,710			$232,909			$240,054			$309,822
Total operating expenses		172,970			186,495			187,359			173,741			110,587			137,608			161,892			154,441			158,769			185,120
Adjusted Hotel EBITDA		$97,009			$123,679			$114,463			$87,961			$32,823			$88,395			$99,818			$78,468			$81,285			$124,702
Adjusted Hotel EBITDA Margin %		35.9	%		39.9	%		37.9	%		33.6	%		22.9	%		39.1	%		38.1	%		33.7	%		33.9	%		40.2	%
ADR (Same Store Hotels)		$139.36			$144.35			$142.25			$133.50			$99.79			$121.99			$140.04			$129.69			$135.71			$152.07
Occupancy (Same Store Hotels)		74.2	%		81.8	%		80.1	%		73.0	%		56.0	%		71.4	%		71.8	%		67.9	%		67.5	%		78.0	%
RevPAR (Same Store Hotels)		$103.36			$118.07			$113.90			$97.45			$55.88			$87.07			$100.53			$88.12			$91.67			$118.64
ADR (Actual)		$136.36			$141.60			$139.21			$131.41			$99.19			$120.56			$140.02			$131.04			$137.03			$153.35
Occupancy (Actual)		73.9	%		81.4	%		79.9	%		72.9	%		55.5	%		70.7	%		71.5	%		67.5	%		67.1	%		77.9	%
RevPAR (Actual)		$100.71			$115.30			$111.17			$95.85			$55.09			$85.28			$100.14			$88.43			$91.98			$119.41
Reconciliation to Actual Results
Total Revenue (Actual)		$303,787			$341,117			$331,722			$289,971			$158,713			$247,404			$277,164			$250,588			$260,478			$337,668
Revenue from acquisitions		(704	)		(2,736	)		(2,829	)		(3,321	)		(3,903	)		(6,291	)		(11,582	)		(17,446	)		(20,427	)		(27,850	)
Revenue from dispositions		(33,104	)		(28,207	)		(27,071	)		(24,948	)		(11,400	)		(15,110	)		(3,872	)		(233	)		3			4
Same Store Hotels Total Revenue		$269,979			$310,174			$301,822			$261,702			$143,410			$226,003			$261,710			$232,909			$240,054			$309,822
Adjusted Hotel EBITDA (AHEBITDA) (Actual)		$108,804			$134,759			$124,596			$96,836			$35,427			$94,814			$105,423			$84,609			$87,936			$136,515
AHEBITDA from acquisitions		(248	)		(981	)		(1,040	)		(996	)		(308	)		(1,280	)		(4,304	)		(5,924	)		(6,624	)		(11,807	)
AHEBITDA from dispositions		(11,547	)		(10,099	)		(9,093	)		(7,879	)		(2,296	)		(5,139	)		(1,301	)		(217	)		(27	)		(6	)
Same Store Hotels AHEBITDA		$97,009			$123,679			$114,463			$87,961			$32,823			$88,395			$99,818			$78,468			$81,285			$124,702

Note: Same Store Hotels is defined as the 204 hotels owned by the Company as of January 1, 2019 and during the entirety of the periods being compared. This information has not been audited.

Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Reconciliation of net income (loss) to non-GAAP financial measures is included in the following pages.

Apple Hospitality REIT, Inc.
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA
(Unaudited)
(in thousands)

EBITDA is a commonly used measure of performance in many industries and is defined as net income (loss) excluding interest, income taxes, depreciation and amortization. The Company believes EBITDA is useful to investors because it helps the Company and its investors evaluate the ongoing operating performance of the Company by removing the impact of its capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). In addition, certain covenants included in the agreements governing the Company’s indebtedness use EBITDA, as defined in the specific credit agreement, as a measure of financial compliance.

In addition to EBITDA, the Company also calculates and presents EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), which defines EBITDAre as EBITDA, excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), plus real estate related impairments, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. The Company presents EBITDAre because it believes that it provides further useful information to investors in comparing its operating performance between periods and between REITs that report EBITDAre using the Nareit definition.

The Company also considers the exclusion of non-cash straight-line operating ground lease expense from EBITDAre useful, as this expense does not reflect the underlying performance of the related hotels (Adjusted EBITDAre).

The Company further excludes actual corporate-level general and administrative expense for the Company from Adjusted EBITDAre (Adjusted Hotel EBITDA) to isolate property-level operational performance over which the Company’s hotel operators have direct control. The Company believes Adjusted Hotel EBITDA provides useful supplemental information to investors regarding operating performance and is used by management to measure the performance of the Company’s hotels and effectiveness of the operators of the hotels.

The following table reconciles the Company’s GAAP net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA on a quarterly basis for 2019, 2021 and 2022:

		2019								2021								2022
		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2
Net income (loss)		$38,151		$62,090		$46,223		$25,453		$(46,435)		$20,283		$31,759		$13,221		$18,002		$65,345
Depreciation and amortization		47,950		48,109		47,887		49,294		48,710		46,386		44,217		45,158		45,324		45,322
Amortization of favorable and unfavorable operating leases, net		31		31		31		31		98		98		98		99		99		103
Interest and other expense, net		15,494		15,857		14,759		15,081		18,513		18,618		15,977		14,640		14,654		15,198
Income tax expense		206		156		143		174		108		87		114		159		179		202
EBITDA		101,832		126,243		109,043		90,033		20,994		85,472		92,165		73,277		78,258		126,170
(Gain) loss on sale of real estate		(1,213)		161		-		(3,969)		(4,484)		864		(44)		68		-		-
Loss on impairment of depreciable real estate assets		-		-		6,467		-		10,754		-		-		-		-		-
EBITDAre		100,619		126,404		115,510		86,064		27,264		86,336		92,121		73,345		78,258		126,170
Non-cash straight-line operating ground lease expense		48		47		47		46		44		43		41		41		40		38
Adjusted EBITDAre		100,667		126,451		115,557		86,110		27,308		86,379		92,162		73,386		78,298		126,208
General and administrative expense		8,137		8,308		9,039		10,726		8,119		8,435		13,261		11,223		9,638		10,307
Adjusted Hotel EBITDA		$108,804		$134,759		$124,596		$96,836		$35,427		$94,814		$105,423		$84,609		$87,936		$136,515

Apple Hospitality REIT, Inc.

Reconciliation of Net Income (Loss) to FFO and MFFO

(Unaudited)

(in thousands)

The Company calculates and presents FFO in accordance with standards established by Nareit, which defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), extraordinary items as defined by GAAP, and the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated affiliates. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company further believes that by excluding the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that report FFO using the Nareit definition. FFO as presented by the Company is applicable only to its common shareholders, but does not represent an amount that accrues directly to common shareholders.

The Company calculates MFFO by further adjusting FFO for the exclusion of amortization of finance ground lease assets, amortization of favorable and unfavorable operating leases, net and non-cash straight-line operating ground lease expense, as these expenses do not reflect the underlying performance of the related hotels. The Company presents MFFO when evaluating its performance because it believes that it provides further useful supplemental information to investors regarding its ongoing operating performance.

The following table reconciles the Company’s GAAP net income (loss) to FFO and MFFO for the three and six months ended June 30, 2022 and 2021:

		Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
Net income (loss)		$65,345		$20,283		$83,347		$(26,152)
Depreciation of real estate owned		44,557		44,764		89,117		91,852
(Gain) loss on sale of real estate		-		864		-		(3,620)
Loss on impairment of depreciable real estate assets		-		-		-		10,754
Funds from operations		109,902		65,911		172,464		72,834
Amortization of finance ground lease assets		760		1,618		1,519		3,235
Amortization of favorable and unfavorable operating leases, net		103		98		202		196
Non-cash straight-line operating ground lease expense		38		43		78		87
Modified funds from operations		$110,803		$67,670		$174,263		$76,352

 

Apple Hospitality REIT, Inc.
Debt Summary
(Unaudited)
($ in thousands)
June 30, 2022
		July 1 - December 31, 2022				2023				2024				2025				2026				Thereafter				Total				Fair Market Value
Total debt:
Maturities		$	102,770			$	296,214			$	338,597			$	245,140			$	74,649			$	319,616			$	1,376,986			$	1,338,908
Average interest rates(1)			3.6	%			3.7	%			3.8	%			3.9	%			3.9	%			4.0	%
Variable-rate debt:
Maturities		$	66,000			$	250,000			$	310,000			$	175,000			$	-			$	85,000			$	886,000			$	888,650
Average interest rates(1)			3.3	%			3.4	%			3.6	%			3.6	%			3.5	%			3.8	%
Fixed-rate debt:
Maturities		$	36,770			$	46,214			$	28,597			$	70,140			$	74,649			$	234,616			$	490,986			$	450,258
Average interest rates			4.1	%			4.1	%			4.1	%			4.0	%			4.0	%			4.1	%

(1) The average interest rate gives effect to interest rate swaps, as applicable.

Note: See further information on the Company’s indebtedness in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Market Compared to 2021
Three Months Ended June 30
(Unaudited)
Top 20 Markets			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2021		% Change			Q2 2022	Q2 2021	% Change			Q2 2022	Q2 2021	% Change			Q2 2022
Top 20 Markets
San Diego, CA	7		79.5	%	69.6	%	14.2	%		$182.79	$134.84	35.6	%		$145.26	$93.80	54.9	%		5.4	%
Los Angeles, CA	8		87.3	%	86.7	%	0.7	%		$181.38	$138.02	31.4	%		$158.39	$119.61	32.4	%		5.1	%
Orange County, CA	6		79.8	%	75.1	%	6.3	%		$166.10	$122.64	35.4	%		$132.58	$92.11	43.9	%		3.6	%
Nashville, TN	5		87.8	%	71.9	%	22.1	%		$178.82	$127.12	40.7	%		$157.00	$91.41	71.8	%		3.6	%
Phoenix, AZ	10		73.5	%	65.5	%	12.2	%		$134.60	$102.22	31.7	%		$98.89	$66.95	47.7	%		3.5	%
Portland, ME	3		80.3	%	68.0	%	18.1	%		$207.82	$197.48	5.2	%		$166.88	$134.25	24.3	%		3.3	%
Omaha, NE	4		71.8	%	60.7	%	18.3	%		$177.69	$165.47	7.4	%		$127.50	$100.36	27.0	%		3.2	%
Seattle, WA	3		86.8	%	68.0	%	27.6	%		$187.50	$144.26	30.0	%		$162.80	$98.09	66.0	%		2.9	%
Fort Worth/Arlington, TX	6		79.9	%	76.2	%	4.9	%		$149.73	$124.79	20.0	%		$119.66	$95.13	25.8	%		2.6	%
Norfolk/Virginia Beach, VA	4		84.9	%	83.8	%	1.3	%		$185.43	$158.32	17.1	%		$157.42	$132.69	18.6	%		2.5	%
Chicago, IL	7		69.8	%	54.0	%	29.3	%		$136.42	$98.75	38.1	%		$95.25	$53.32	78.6	%		2.5	%
Austin, TX	7		81.4	%	75.4	%	8.0	%		$133.04	$98.07	35.7	%		$108.28	$73.96	46.4	%		2.4	%
Alaska	2		92.2	%	93.9	%	(1.8	%)		$234.88	$194.04	21.0	%		$216.50	$182.28	18.8	%		2.4	%
Richmond/Petersburg, VA	4		69.7	%	53.2	%	31.0	%		$177.77	$142.70	24.6	%		$123.83	$75.95	63.0	%		2.2	%
North Carolina East	4		77.5	%	82.2	%	(5.7	%)		$170.31	$157.51	8.1	%		$131.97	$129.50	1.9	%		2.2	%
Washington, DC	4		82.8	%	60.2	%	37.5	%		$140.07	$101.78	37.6	%		$116.00	$61.27	89.3	%		2.0	%
Melbourne, FL	3		85.7	%	79.8	%	7.4	%		$169.61	$142.28	19.2	%		$145.34	$113.48	28.1	%		1.9	%
Florida Panhandle	5		73.4	%	77.7	%	(5.5	%)		$155.12	$154.45	0.4	%		$113.80	$120.05	(5.2	%)		1.7	%
Oklahoma City, OK	4		69.5	%	67.7	%	2.7	%		$147.39	$128.62	14.6	%		$102.48	$87.03	17.8	%		1.6	%
Denver, CO	3		79.0	%	59.5	%	32.8	%		$152.82	$108.64	40.7	%		$120.71	$64.60	86.9	%		1.6	%
Top 20 Markets	99		78.7	%	70.2	%	12.1	%		$164.85	$131.24	25.6	%		$129.75	$92.10	40.9	%		56.2	%
All Other Markets	120		77.1	%	71.1	%	8.4	%		$142.15	$114.72	23.9	%		$109.53	$81.61	34.2	%		43.8	%
Total Portfolio	219		77.9	%	70.7	%	10.2	%		$153.35	$122.69	25.0	%		$119.41	$86.71	37.7	%		100.0	%

Note: Market categorization based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Market Compared to 2019
Three Months Ended June 30
(Unaudited)
Top 20 Markets			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2019		% Change			Q2 2022	Q2 2019	% Change			Q2 2022	Q2 2019	% Change			Q2 2022
Top 20 Markets
San Diego, CA	7		79.5	%	83.3	%	(4.6	%)		$182.79	$162.59	12.4	%		$145.26	$135.49	7.2	%		5.4	%
Los Angeles, CA	8		87.3	%	86.7	%	0.7	%		$181.38	$181.79	(0.2	%)		$158.39	$157.56	0.5	%		5.1	%
Orange County, CA	6		79.8	%	85.4	%	(6.6	%)		$166.10	$144.83	14.7	%		$132.58	$123.70	7.2	%		3.6	%
Nashville, TN	5		87.8	%	88.6	%	(0.9	%)		$178.82	$172.80	3.5	%		$157.00	$153.11	2.5	%		3.6	%
Phoenix, AZ	10		73.5	%	74.0	%	(0.7	%)		$134.60	$116.71	15.3	%		$98.89	$86.42	14.4	%		3.5	%
Portland, ME	3		80.3	%	77.0	%	4.3	%		$207.82	$173.98	19.5	%		$166.88	$133.96	24.6	%		3.3	%
Omaha, NE	4		71.8	%	86.1	%	(16.6	%)		$177.69	$152.31	16.7	%		$127.50	$131.15	(2.8	%)		3.2	%
Seattle, WA	3		86.8	%	88.4	%	(1.8	%)		$187.50	$195.34	(4.0	%)		$162.80	$172.62	(5.7	%)		2.9	%
Fort Worth/Arlington, TX	6		79.9	%	80.9	%	(1.2	%)		$149.73	$143.19	4.6	%		$119.66	$115.83	3.3	%		2.6	%
Norfolk/Virginia Beach, VA	4		84.9	%	87.0	%	(2.4	%)		$185.43	$164.09	13.0	%		$157.42	$142.72	10.3	%		2.5	%
Chicago, IL	7		69.8	%	80.8	%	(13.6	%)		$136.42	$136.27	0.1	%		$95.25	$110.08	(13.5	%)		2.5	%
Austin, TX	7		81.4	%	80.9	%	0.6	%		$133.04	$123.69	7.6	%		$108.28	$100.01	8.3	%		2.4	%
Alaska	2		92.2	%	90.3	%	2.1	%		$234.88	$221.03	6.3	%		$216.50	$199.51	8.5	%		2.4	%
Richmond/Petersburg, VA	4		69.7	%	76.3	%	(8.7	%)		$177.77	$158.82	11.9	%		$123.83	$121.22	2.2	%		2.2	%
North Carolina East	4		77.5	%	89.8	%	(13.7	%)		$170.31	$144.94	17.5	%		$131.97	$130.16	1.4	%		2.2	%
Washington, DC	4		82.8	%	87.7	%	(5.6	%)		$140.07	$148.56	(5.7	%)		$116.00	$130.22	(10.9	%)		2.0	%
Melbourne, FL	3		85.7	%	96.5	%	(11.2	%)		$169.61	$153.69	10.4	%		$145.34	$148.33	(2.0	%)		1.9	%
Florida Panhandle	5		73.4	%	86.1	%	(14.8	%)		$155.12	$164.01	(5.4	%)		$113.80	$141.13	(19.4	%)		1.7	%
Oklahoma City, OK	4		69.5	%	80.9	%	(14.1	%)		$147.39	$144.73	1.8	%		$102.48	$117.05	(12.4	%)		1.6	%
Denver, CO	3		79.0	%	82.6	%	(4.4	%)		$152.82	$159.07	(3.9	%)		$120.71	$131.38	(8.1	%)		1.6	%
Top 20 Markets	99		78.7	%	83.3	%	(5.5	%)		$164.85	$154.45	6.7	%		$129.75	$128.63	0.9	%		56.2	%
All Other Markets	120		77.1	%	80.0	%	(3.6	%)		$142.15	$136.21	4.4	%		$109.53	$108.99	0.5	%		43.8	%
Total Portfolio	219		77.9	%	81.6	%	(4.5	%)		$153.35	$145.14	5.7	%		$119.41	$118.41	0.8	%		100.0	%

Note: Market categorization based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Market Compared to 2021
Six Months Ended June 30
(Unaudited)
Top 20 Markets			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2022		YTD 2021		% Change			YTD 2022	YTD 2021	% Change			YTD 2022	YTD 2021	% Change			YTD 2022
Top 20 Markets
Phoenix, AZ	10		76.2	%	63.1	%	20.8	%		$156.10	$104.38	49.5	%		$118.91	$65.90	80.4	%		6.2	%
Los Angeles, CA	8		84.1	%	84.8	%	(0.8	%)		$176.56	$125.42	40.8	%		$148.42	$106.39	39.5	%		5.8	%
San Diego, CA	7		73.7	%	58.3	%	26.4	%		$167.15	$125.12	33.6	%		$123.20	$72.96	68.9	%		5.3	%
Orange County, CA	6		74.7	%	67.9	%	10.0	%		$156.04	$112.74	38.4	%		$116.62	$76.56	52.3	%		3.6	%
Nashville, TN	5		79.7	%	61.2	%	30.2	%		$165.03	$114.33	44.3	%		$131.50	$69.99	87.9	%		3.3	%
Fort Worth/Arlington, TX	6		80.6	%	74.6	%	8.0	%		$147.00	$113.14	29.9	%		$118.49	$84.36	40.5	%		3.2	%
Seattle, WA	3		74.9	%	62.6	%	19.6	%		$170.49	$133.63	27.6	%		$127.63	$83.60	52.7	%		2.5	%
Melbourne, FL	3		84.7	%	64.5	%	31.3	%		$172.94	$137.52	25.8	%		$146.43	$88.73	65.0	%		2.4	%
Richmond/Petersburg, VA	4		65.5	%	49.1	%	33.4	%		$176.29	$130.58	35.0	%		$115.54	$64.12	80.2	%		2.4	%
Omaha, NE	4		62.5	%	49.4	%	26.5	%		$153.25	$137.66	11.3	%		$95.70	$67.98	40.8	%		2.4	%
Austin, TX	7		73.8	%	63.5	%	16.2	%		$126.72	$92.99	36.3	%		$93.56	$59.03	58.5	%		2.3	%
North Carolina East	4		72.6	%	73.9	%	(1.8	%)		$146.19	$135.37	8.0	%		$106.12	$100.06	6.1	%		2.2	%
Portland, ME	3		62.4	%	52.0	%	20.0	%		$183.05	$169.49	8.0	%		$114.29	$88.15	29.7	%		2.2	%
Alaska	2		86.5	%	82.3	%	5.1	%		$201.51	$165.27	21.9	%		$174.22	$135.93	28.2	%		2.1	%
Miami, FL	3		87.5	%	80.4	%	8.8	%		$161.73	$119.51	35.3	%		$141.55	$96.12	47.3	%		2.0	%
Norfolk/Virginia Beach, VA	4		75.6	%	74.3	%	1.7	%		$154.42	$131.95	17.0	%		$116.74	$98.04	19.1	%		1.9	%
Florida Panhandle	5		69.4	%	72.1	%	(3.7	%)		$145.29	$134.76	7.8	%		$100.89	$97.23	3.8	%		1.8	%
Dallas, TX	5		66.0	%	65.3	%	1.1	%		$130.04	$97.82	32.9	%		$85.76	$63.87	34.3	%		1.6	%
Oklahoma City, OK	4		65.6	%	66.0	%	(0.6	%)		$140.13	$115.41	21.4	%		$91.94	$76.14	20.8	%		1.6	%
Washington, DC	4		72.4	%	53.7	%	34.8	%		$129.31	$99.71	29.7	%		$93.64	$53.52	75.0	%		1.6	%
Top 20 Markets	97		74.3	%	65.6	%	13.3	%		$157.62	$120.60	30.7	%		$117.18	$79.11	48.1	%		56.4	%
All Other Markets	122		70.9	%	60.9	%	16.4	%		$135.09	$105.52	28.0	%		$95.83	$64.25	49.2	%		43.6	%
Total Portfolio	219		72.5	%	63.1	%	14.9	%		$145.84	$112.79	29.3	%		$105.77	$71.14	48.7	%		100.0	%

Note: Market categorization based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Market Compared to 2019

Six Months Ended June 30

(Unaudited)

Top 20 Markets		Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels	YTD 2022		YTD 2019		% Change			YTD 2022	YTD 2019	% Change			YTD 2022	YTD 2019	% Change			YTD 2022
Top 20 Markets
Phoenix, AZ	10	76.2	%	78.6	%	(3.1	%)		$156.10	$146.43	6.6	%		$118.91	$115.02	3.4	%		6.2	%
Los Angeles, CA	8	84.1	%	87.0	%	(3.3	%)		$176.56	$176.26	0.2	%		$148.42	$153.43	(3.3	%)		5.8	%
San Diego, CA	7	73.7	%	80.2	%	(8.1	%)		$167.15	$158.10	5.7	%		$123.20	$126.74	(2.8	%)		5.3	%
Orange County, CA	6	74.7	%	83.9	%	(11.0	%)		$156.04	$146.19	6.7	%		$116.62	$122.67	(4.9	%)		3.6	%
Nashville, TN	5	79.7	%	84.4	%	(5.6	%)		$165.03	$167.13	(1.3	%)		$131.50	$141.01	(6.7	%)		3.3	%
Fort Worth/Arlington, TX	6	80.6	%	80.1	%	0.6	%		$147.00	$144.49	1.7	%		$118.49	$115.80	2.3	%		3.2	%
Seattle, WA	3	74.9	%	82.8	%	(9.5	%)		$170.49	$181.64	(6.1	%)		$127.63	$150.32	(15.1	%)		2.5	%
Melbourne, FL	3	84.7	%	94.8	%	(10.7	%)		$172.94	$163.25	5.9	%		$146.43	$154.83	(5.4	%)		2.4	%
Richmond/Petersburg, VA	4	65.5	%	74.9	%	(12.6	%)		$176.29	$156.90	12.4	%		$115.54	$117.52	(1.7	%)		2.4	%
Omaha, NE	4	62.5	%	79.1	%	(21.0	%)		$153.25	$134.41	14.0	%		$95.70	$106.25	(9.9	%)		2.4	%
Austin, TX	7	73.8	%	75.5	%	(2.3	%)		$126.72	$126.20	0.4	%		$93.56	$95.27	(1.8	%)		2.3	%
North Carolina East	4	72.6	%	84.6	%	(14.2	%)		$146.19	$128.15	14.1	%		$106.12	$108.45	(2.1	%)		2.2	%
Portland, ME	3	62.4	%	61.8	%	1.0	%		$183.05	$159.90	14.5	%		$114.29	$98.76	15.7	%		2.2	%
Alaska	2	86.5	%	86.2	%	0.3	%		$201.51	$189.76	6.2	%		$174.22	$163.50	6.6	%		2.1	%
Miami, FL	3	87.5	%	85.0	%	2.9	%		$161.73	$149.24	8.4	%		$141.55	$126.86	11.6	%		2.0	%
Norfolk/Virginia Beach, VA	4	75.6	%	75.4	%	0.3	%		$154.42	$139.14	11.0	%		$116.74	$104.95	11.2	%		1.9	%
Florida Panhandle	5	69.4	%	82.6	%	(16.0	%)		$145.29	$157.44	(7.7	%)		$100.89	$130.04	(22.4	%)		1.8	%
Dallas, TX	5	66.0	%	73.3	%	(10.0	%)		$130.04	$128.41	1.3	%		$85.76	$94.17	(8.9	%)		1.6	%
Oklahoma City, OK	4	65.6	%	76.7	%	(14.5	%)		$140.13	$136.16	2.9	%		$91.94	$104.44	(12.0	%)		1.6	%
Washington, DC	4	72.4	%	78.3	%	(7.5	%)		$129.31	$135.12	(4.3	%)		$93.64	$105.75	(11.5	%)		1.6	%
Top 20 Markets	97	74.3	%	80.0	%	(7.1	%)		$157.62	$150.79	4.5	%		$117.18	$120.62	(2.9	%)		56.4	%
All Other Markets	122	70.9	%	75.9	%	(6.6	%)		$135.09	$135.40	(0.2	%)		$95.83	$102.70	(6.7	%)		43.6	%
Total Portfolio	219	72.5	%	77.7	%	(6.7	%)		$145.84	$142.64	2.2	%		$105.77	$110.90	(4.6	%)		100.0	%

Note: Market categorization based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region Compared to 2021
Three Months Ended June 30
(Unaudited)
Region			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2021		% Change			Q2 2022	Q2 2021	% Change			Q2 2022	Q2 2021	% Change			Q2 2022
STR Region
East North Central	15		70.1	%	55.7	%	25.9	%		$137.05	$103.74	32.1	%		$96.01	$57.77	66.2	%		5.0	%
East South Central	26		81.6	%	73.5	%	11.0	%		$150.83	$122.50	23.1	%		$123.07	$90.04	36.7	%		10.5	%
Middle Atlantic	12		78.1	%	64.0	%	22.0	%		$157.42	$120.46	30.7	%		$123.02	$77.06	59.6	%		5.6	%
Mountain	21		75.4	%	70.1	%	7.6	%		$137.74	$105.69	30.3	%		$103.92	$74.12	40.2	%		7.9	%
New England	6		80.1	%	67.7	%	18.3	%		$183.95	$155.10	18.6	%		$147.38	$104.95	40.4	%		4.3	%
Pacific	32		83.1	%	76.7	%	8.3	%		$182.08	$138.66	31.3	%		$151.27	$106.41	42.2	%		23.0	%
South Atlantic	54		79.1	%	73.6	%	7.5	%		$153.91	$129.20	19.1	%		$121.79	$95.03	28.2	%		24.8	%
West North Central	17		73.1	%	64.2	%	13.9	%		$146.47	$124.59	17.6	%		$107.04	$80.03	33.7	%		6.8	%
West South Central	36		75.5	%	72.1	%	4.7	%		$134.50	$108.30	24.2	%		$101.60	$78.10	30.1	%		12.1	%
Total Portfolio	219		77.9	%	70.7	%	10.2	%		$153.35	$122.69	25.0	%		$119.41	$86.71	37.7	%		100.0	%

Note: Region categorization based on STR designation.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region Compared to 2019
Three Months Ended June 30
(Unaudited)
Region			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2019		% Change			Q2 2022	Q2 2019	% Change			Q2 2022	Q2 2019	% Change			Q2 2022
STR Region
East North Central	15		70.1	%	77.8	%	(9.9	%)		$137.05	$132.86	3.2	%		$96.01	$103.39	(7.1	%)		5.0	%
East South Central	26		81.6	%	82.8	%	(1.4	%)		$150.83	$140.12	7.6	%		$123.07	$116.07	6.0	%		10.5	%
Middle Atlantic	12		78.1	%	83.5	%	(6.5	%)		$157.42	$168.09	(6.3	%)		$123.02	$140.43	(12.4	%)		5.6	%
Mountain	21		75.4	%	77.5	%	(2.7	%)		$137.74	$127.79	7.8	%		$103.92	$98.98	5.0	%		7.9	%
New England	6		80.1	%	79.3	%	1.0	%		$183.95	$156.87	17.3	%		$147.38	$124.40	18.5	%		4.3	%
Pacific	32		83.1	%	86.4	%	(3.8	%)		$182.08	$174.77	4.2	%		$151.27	$150.98	0.2	%		23.0	%
South Atlantic	54		79.1	%	82.6	%	(4.2	%)		$153.91	$140.98	9.2	%		$121.79	$116.43	4.6	%		24.8	%
West North Central	17		73.1	%	83.3	%	(12.2	%)		$146.47	$136.46	7.3	%		$107.04	$113.73	(5.9	%)		6.8	%
West South Central	36		75.5	%	77.3	%	(2.3	%)		$134.50	$130.33	3.2	%		$101.60	$100.78	0.8	%		12.1	%
Total Portfolio	219		77.9	%	81.6	%	(4.5	%)		$153.35	$145.14	5.7	%		$119.41	$118.41	0.8	%		100.0	%

Note: Region categorization based on STR designation. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region Compared to 2021
Six Months Ended June 30
(Unaudited)
Region			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2022		YTD 2021		% Change			YTD 2022	YTD 2021	% Change			YTD 2022	YTD 2021	% Change			YTD 2022
STR Region
East North Central	15		60.5	%	46.0	%	31.5	%		$126.80	$95.65	32.6	%		$76.74	$44.04	74.3	%		3.6	%
East South Central	26		75.8	%	64.0	%	18.4	%		$142.01	$114.60	23.9	%		$107.65	$73.37	46.7	%		10.4	%
Middle Atlantic	12		69.7	%	56.0	%	24.5	%		$143.42	$111.34	28.8	%		$99.95	$62.36	60.3	%		4.0	%
Mountain	21		75.6	%	64.0	%	18.1	%		$144.07	$102.63	40.4	%		$108.99	$65.73	65.8	%		11.2	%
New England	6		65.5	%	55.5	%	18.0	%		$163.74	$134.83	21.4	%		$107.23	$74.80	43.4	%		3.0	%
Pacific	32		77.1	%	69.7	%	10.6	%		$169.73	$126.78	33.9	%		$130.86	$88.40	48.0	%		22.5	%
South Atlantic	54		75.5	%	67.0	%	12.7	%		$147.84	$116.52	26.9	%		$111.60	$78.09	42.9	%		26.7	%
West North Central	17		65.8	%	54.1	%	21.6	%		$133.72	$110.88	20.6	%		$87.97	$59.98	46.7	%		5.6	%
West South Central	36		70.9	%	65.3	%	8.6	%		$130.55	$101.10	29.1	%		$92.57	$66.06	40.1	%		13.0	%
Total Portfolio	219		72.5	%	63.1	%	14.9	%		$145.84	$112.79	29.3	%		$105.77	$71.14	48.7	%		100.0	%

Note: Region categorization based on STR designation.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region Compared to 2019
Six Months Ended June 30
(Unaudited)
Region			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2022		YTD 2019		% Change			YTD 2022	YTD 2019	% Change			YTD 2022	YTD 2019	% Change			YTD 2022
STR Region
East North Central	15		60.5	%	69.9	%	(13.4	%)		$126.80	$126.38	0.3	%		$76.74	$88.37	(13.2	%)		3.6	%
East South Central	26		75.8	%	78.7	%	(3.7	%)		$142.01	$136.64	3.9	%		$107.65	$107.57	0.1	%		10.4	%
Middle Atlantic	12		69.7	%	75.9	%	(8.2	%)		$143.42	$157.11	(8.7	%)		$99.95	$119.24	(16.2	%)		4.0	%
Mountain	21		75.6	%	78.5	%	(3.7	%)		$144.07	$138.62	3.9	%		$108.99	$108.79	0.2	%		11.2	%
New England	6		65.5	%	65.8	%	(0.5	%)		$163.74	$147.75	10.8	%		$107.23	$97.17	10.4	%		3.0	%
Pacific	32		77.1	%	83.9	%	(8.1	%)		$169.73	$167.97	1.0	%		$130.86	$140.90	(7.1	%)		22.5	%
South Atlantic	54		75.5	%	79.4	%	(4.9	%)		$147.84	$140.84	5.0	%		$111.60	$111.86	(0.2	%)		26.7	%
West North Central	17		65.8	%	76.7	%	(14.2	%)		$133.72	$127.70	4.7	%		$87.97	$97.90	(10.1	%)		5.6	%
West South Central	36		70.9	%	74.5	%	(4.8	%)		$130.55	$130.65	(0.1	%)		$92.57	$97.34	(4.9	%)		13.0	%
Total Portfolio	219		72.5	%	77.7	%	(6.7	%)		$145.84	$142.64	2.2	%		$105.77	$110.90	(4.6	%)		100.0	%

Note: Region categorization based on STR designation. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale Compared to 2021
Three Months Ended June 30
(Unaudited)
Chain Scale/Brand			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2021		% Change			Q2 2022	Q2 2021	% Change			Q2 2022	Q2 2021	% Change			Q2 2022
Upscale
AC Hotels	1		87.7	%	67.3	%	30.3	%		$225.60	$211.21	6.8	%		$197.87	$142.04	39.3	%		1.4	%
Aloft	1		71.8	%						$200.97					$144.32					0.8	%
Courtyard	33		77.3	%	66.0	%	17.1	%		$160.90	$128.11	25.6	%		$124.30	$84.58	47.0	%		19.3	%
Hilton Garden Inn	40		75.2	%	64.5	%	16.6	%		$151.50	$119.43	26.9	%		$113.96	$77.08	47.8	%		18.5	%
Homewood Suites	30		85.0	%	82.7	%	2.8	%		$147.05	$120.12	22.4	%		$124.98	$99.30	25.9	%		12.1	%
Hyatt House	1		71.8	%	52.2	%	37.5	%		$140.24	$107.62	30.3	%		$100.71	$56.16	79.3	%		0.2	%
Hyatt Place	3		75.2	%	64.5	%	16.6	%		$143.41	$119.91	19.6	%		$107.80	$77.28	39.5	%		1.1	%
Residence Inn	29		83.3	%	79.0	%	5.4	%		$155.61	$130.50	19.2	%		$129.62	$103.14	25.7	%		14.0	%
SpringHill Suites	9		74.9	%	69.2	%	8.2	%		$138.23	$103.34	33.8	%		$103.58	$71.48	44.9	%		3.5	%
Upscale Total	147		79.0	%	71.1	%	11.1	%		$153.76	$123.58	24.4	%		$121.43	$87.83	38.3	%		70.9	%
Upper Midscale
Fairfield	10		70.4	%	68.1	%	3.4	%		$128.18	$98.85	29.7	%		$90.23	$67.30	34.1	%		2.7	%
Hampton	37		74.8	%	67.0	%	11.6	%		$154.26	$122.65	25.8	%		$115.35	$82.17	40.4	%		15.3	%
Home2 Suites	10		85.6	%	84.4	%	1.4	%		$158.29	$123.22	28.5	%		$135.50	$104.06	30.2	%		5.0	%
TownePlace Suites	9		81.0	%	82.1	%	(1.3	%)		$123.91	$108.39	14.3	%		$100.38	$89.02	12.8	%		2.8	%
Upper Midscale Total	66		76.3	%	71.3	%	7.0	%		$147.72	$117.54	25.7	%		$112.76	$83.80	34.6	%		25.8	%
Upper Upscale
Embassy Suites	2		88.0	%	89.0	%	(1.1	%)		$216.73	$185.37	16.9	%		$190.73	$164.93	15.6	%		1.8	%
Marriott	2		57.7	%	43.6	%	32.3	%		$159.09	$124.79	27.5	%		$91.73	$54.41	68.6	%		1.1	%
Upper Upscale Total	4		67.9	%	58.9	%	15.3	%		$184.33	$155.70	18.4	%		$125.19	$91.76	36.4	%		2.9	%
Independents
Independents	2		79.5	%	64.0	%	24.2	%		$199.50	$122.20	63.3	%		$158.60	$78.18	102.9	%		0.4	%
Independents Total	2		79.5	%	64.0	%	24.2	%		$199.50	$122.20	63.3	%		$158.60	$78.18	102.9	%		0.4	%
Total Portfolio	219		77.9	%	70.7	%	10.2	%		$153.35	$122.69	25.0	%		$119.41	$86.71	37.7	%		100.0	%

Note: Chain scale categorization based on STR designation.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale Compared to 2019
Three Months Ended June 30
(Unaudited)
Chain Scale/Brand			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2019		% Change			Q2 2022	Q2 2019	% Change			Q2 2022	Q2 2019	% Change			Q2 2022
Upscale
AC Hotels	1		87.7	%	69.6	%	26.0	%		$225.60	$176.72	27.7	%		$197.87	$123.08	60.8	%		1.4	%
Aloft	1		71.8	%						$200.97					$144.32					0.8	%
Courtyard	33		77.3	%	80.4	%	(3.9	%)		$160.90	$150.77	6.7	%		$124.30	$121.28	2.5	%		19.3	%
Hilton Garden Inn	40		75.2	%	81.5	%	(7.7	%)		$151.50	$142.48	6.3	%		$113.96	$116.07	(1.8	%)		18.5	%
Homewood Suites	30		85.0	%	86.4	%	(1.6	%)		$147.05	$142.45	3.2	%		$124.98	$123.02	1.6	%		12.1	%
Hyatt House	1		71.8	%						$140.24					$100.71					0.2	%
Hyatt Place	3		75.2	%	64.3	%	17.0	%		$143.41	$128.22	11.8	%		$107.80	$82.43	30.8	%		1.1	%
Residence Inn	29		83.3	%	81.9	%	1.7	%		$155.61	$151.32	2.8	%		$129.62	$123.87	4.6	%		14.0	%
SpringHill Suites	9		74.9	%	82.4	%	(9.1	%)		$138.23	$132.82	4.1	%		$103.58	$109.48	(5.4	%)		3.5	%
Upscale Total	147		79.0	%	81.9	%	(3.5	%)		$153.76	$145.65	5.6	%		$121.43	$119.28	1.8	%		70.9	%
Upper Midscale
Fairfield	10		70.4	%	77.7	%	(9.4	%)		$128.18	$118.65	8.0	%		$90.23	$92.16	(2.1	%)		2.7	%
Hampton	37		74.8	%	81.0	%	(7.7	%)		$154.26	$143.18	7.7	%		$115.35	$115.94	(0.5	%)		15.3	%
Home2 Suites	10		85.6	%	85.5	%	0.1	%		$158.29	$142.72	10.9	%		$135.50	$122.07	11.0	%		5.0	%
TownePlace Suites	9		81.0	%	82.4	%	(1.7	%)		$123.91	$121.82	1.7	%		$100.38	$100.37	0.0	%		2.8	%
Upper Midscale Total	66		76.3	%	81.2	%	(6.0	%)		$147.72	$137.06	7.8	%		$112.76	$111.33	1.3	%		25.8	%
Upper Upscale
Embassy Suites	2		88.0	%	90.8	%	(3.1	%)		$216.73	$195.94	10.6	%		$190.73	$178.00	7.2	%		1.8	%
Marriott	2		57.7	%	66.9	%	(13.8	%)		$159.09	$151.45	5.0	%		$91.73	$101.26	(9.4	%)		1.1	%
Upper Upscale Total	4		67.9	%	75.0	%	(9.5	%)		$184.33	$169.72	8.6	%		$125.19	$127.28	(1.6	%)		2.9	%
Independents
Independents	2		79.5	%	93.5	%	(15.0	%)		$199.50	$257.83	(22.6	%)		$158.60	$241.17	(34.2	%)		0.4	%
Independents Total	2		79.5	%	93.5	%	(15.0	%)		$199.50	$257.83	(22.6	%)		$158.60	$241.17	(34.2	%)		0.4	%
Total Portfolio	219		77.9	%	81.6	%	(4.5	%)		$153.35	$145.14	5.7	%		$119.41	$118.41	0.8	%		100.0	%

Note: Chain scale categorization based on STR designation. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale Compared to 2021
Six Months Ended June 30
(Unaudited)
Chain Scale/Brand			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2022		YTD 2021		% Change			YTD 2022	YTD 2021	% Change			YTD 2022	YTD 2021	% Change			YTD 2022
Upscale
AC Hotels	1		67.2	%	51.6	%	30.2	%		$195.21	$176.93	10.3	%		$131.15	$91.29	43.7	%		0.9	%
Aloft	1		52.3	%						$180.10					$94.27					0.4	%
Courtyard	33		69.9	%	57.0	%	22.6	%		$149.79	$114.63	30.7	%		$104.70	$65.36	60.2	%		17.6	%
Hilton Garden Inn	40		68.7	%	55.9	%	22.9	%		$143.59	$109.68	30.9	%		$98.60	$61.31	60.8	%		17.4	%
Homewood Suites	30		81.8	%	76.6	%	6.8	%		$142.56	$113.08	26.1	%		$116.66	$86.58	34.7	%		13.3	%
Hyatt House	1		75.4	%	51.3	%	47.0	%		$152.14	$107.01	42.2	%		$114.79	$54.91	109.1	%		0.4	%
Hyatt Place	3		74.0	%	60.8	%	21.7	%		$146.97	$110.88	32.5	%		$108.72	$67.39	61.3	%		1.4	%
Residence Inn	29		78.4	%	72.7	%	7.8	%		$149.97	$123.05	21.9	%		$117.61	$89.50	31.4	%		14.9	%
SpringHill Suites	9		69.9	%	64.5	%	8.4	%		$132.88	$92.58	43.5	%		$92.88	$59.69	55.6	%		3.7	%
Upscale Total	147		73.2	%	63.6	%	15.1	%		$146.18	$113.73	28.5	%		$106.96	$72.32	47.9	%		70.0	%
Upper Midscale
Fairfield	10		67.4	%	61.3	%	10.0	%		$125.20	$89.02	40.6	%		$84.45	$54.56	54.8	%		3.0	%
Hampton	37		69.0	%	58.1	%	18.8	%		$147.41	$111.84	31.8	%		$101.75	$65.00	56.5	%		15.3	%
Home2 Suites	10		81.8	%	76.3	%	7.2	%		$149.04	$113.78	31.0	%		$121.91	$86.84	40.4	%		5.5	%
TownePlace Suites	9		80.7	%	75.7	%	6.6	%		$118.76	$100.85	17.8	%		$95.78	$76.39	25.4	%		3.2	%
Upper Midscale Total	66		71.9	%	63.1	%	13.9	%		$140.97	$107.41	31.2	%		$101.33	$67.79	49.5	%		27.0	%
Upper Upscale
Embassy Suites	2		87.3	%	81.3	%	7.4	%		$199.87	$168.70	18.5	%		$174.57	$137.07	27.4	%		1.9	%
Marriott	2		54.1	%	38.5	%	40.5	%		$157.83	$118.73	32.9	%		$85.34	$45.67	86.9	%		1.2	%
Upper Upscale Total	4		65.3	%	52.9	%	23.4	%		$176.83	$144.66	22.2	%		$115.50	$76.56	50.9	%		3.1	%
Independents
Independents	2		70.8	%	59.9	%	18.2	%		$173.31	$118.08	46.8	%		$122.70	$70.69	73.6	%		(0.1	)%
Independents Total	2		70.8	%	59.9	%	18.2	%		$173.31	$118.08	46.8	%		$122.70	$70.69	73.6	%		(0.1	)%
Total Portfolio	219		72.5	%	63.1	%	14.9	%		$145.84	$112.79	29.3	%		$105.77	$71.14	48.7	%		100.0	%

Note: Chain scale categorization based on STR designation.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale Compared to 2019
Six Months Ended June 30
(Unaudited)
Chain Scale/Brand			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2022		YTD 2019		% Change			YTD 2022	YTD 2019	% Change			YTD 2022	YTD 2019	% Change			YTD 2022
Upscale
AC Hotels	1		67.2	%	53.4	%	25.8	%		$195.21	$168.74	15.7	%		$131.15	$90.19	45.4	%		0.9	%
Aloft	1		52.3	%						$180.10					$94.27					0.4	%
Courtyard	33		69.9	%	75.6	%	(7.5	%)		$149.79	$145.24	3.1	%		$104.70	$109.83	(4.7	%)		17.6	%
Hilton Garden Inn	40		68.7	%	77.6	%	(11.5	%)		$143.59	$140.20	2.4	%		$98.60	$108.80	(9.4	%)		17.4	%
Homewood Suites	30		81.8	%	83.2	%	(1.7	%)		$142.56	$144.28	(1.2	%)		$116.66	$120.11	(2.9	%)		13.3	%
Hyatt House	1		75.4	%						$152.14					$114.79					0.4	%
Hyatt Place	3		74.0	%	61.7	%	19.9	%		$146.97	$124.62	17.9	%		$108.72	$76.89	41.4	%		1.4	%
Residence Inn	29		78.4	%	78.7	%	(0.4	%)		$149.97	$149.25	0.5	%		$117.61	$117.43	0.2	%		14.9	%
SpringHill Suites	9		69.9	%	78.0	%	(10.4	%)		$132.88	$129.69	2.5	%		$92.88	$101.19	(8.2	%)		3.7	%
Upscale Total	147		73.2	%	77.9	%	(6.0	%)		$146.18	$143.26	2.0	%		$106.96	$111.64	(4.2	%)		70.0	%
Upper Midscale
Fairfield	10		67.4	%	75.1	%	(10.3	%)		$125.20	$120.84	3.6	%		$84.45	$90.75	(6.9	%)		3.0	%
Hampton	37		69.0	%	76.5	%	(9.8	%)		$147.41	$141.58	4.1	%		$101.75	$108.28	(6.0	%)		15.3	%
Home2 Suites	10		81.8	%	83.8	%	(2.4	%)		$149.04	$139.69	6.7	%		$121.91	$117.03	4.2	%		5.5	%
TownePlace Suites	9		80.7	%	78.2	%	3.2	%		$118.76	$118.84	(0.1	%)		$95.78	$92.94	3.1	%		3.2	%
Upper Midscale Total	66		71.9	%	77.4	%	(7.1	%)		$140.97	$135.58	4.0	%		$101.33	$104.90	(3.4	%)		27.0	%
Upper Upscale
Embassy Suites	2		87.3	%	88.8	%	(1.7	%)		$199.87	$188.02	6.3	%		$174.57	$166.97	4.6	%		1.9	%
Marriott	2		54.1	%	66.5	%	(18.6	%)		$157.83	$150.38	5.0	%		$85.34	$99.98	(14.6	%)		1.2	%
Upper Upscale Total	4		65.3	%	74.1	%	(11.9	%)		$176.83	$165.69	6.7	%		$115.50	$122.70	(5.9	%)		3.1	%
Independents
Independents	2		70.8	%	89.4	%	(20.8	%)		$173.31	$221.54	(21.8	%)		$122.70	$198.00	(38.0	%)		(0.1	)%
Independents Total	2		70.8	%	89.4	%	(20.8	%)		$173.31	$221.54	(21.8	%)		$122.70	$198.00	(38.0	%)		(0.1	)%
Total Portfolio	219		72.5	%	77.7	%	(6.7	%)		$145.84	$142.64	2.2	%		$105.77	$110.90	(4.6	%)		100.0	%

Note: Chain scale categorization based on STR designation. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location Compared to 2021
Three Months Ended June 30
(Unaudited)
Location			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2021		% Change			Q2 2022	Q2 2021	% Change			Q2 2022	Q2 2021	% Change			Q2 2022
STR Location
Airport	18		81.9	%	75.4	%	8.6	%		$137.40	$108.92	26.1	%		$112.51	$82.09	37.1	%		6.8	%
Interstate	4		72.8	%	65.5	%	11.1	%		$116.59	$102.39	13.9	%		$84.87	$67.09	26.5	%		0.9	%
Resort	11		77.4	%	74.0	%	4.6	%		$172.70	$150.12	15.0	%		$133.60	$111.07	20.3	%		6.4	%
Small Metro/Town	11		80.0	%	76.3	%	4.8	%		$123.35	$103.36	19.3	%		$98.63	$78.91	25.0	%		3.5	%
Suburban	125		78.6	%	73.3	%	7.2	%		$146.26	$118.86	23.1	%		$114.90	$87.09	31.9	%		50.3	%
Urban	50		75.3	%	62.6	%	20.3	%		$176.88	$135.60	30.4	%		$133.19	$84.87	56.9	%		32.1	%
Total Portfolio	219		77.9	%	70.7	%	10.2	%		$153.35	$122.69	25.0	%		$119.41	$86.71	37.7	%		100.0	%

Note: Location categorization based on STR designation.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location Compared to 2019
Three Months Ended June 30
(Unaudited)
Location			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2022		Q2 2019		% Change			Q2 2022	Q2 2019	% Change			Q2 2022	Q2 2019	% Change			Q2 2022
STR Location
Airport	18		81.9	%	82.8	%	(1.1	%)		$137.40	$131.54	4.5	%		$112.51	$108.98	3.2	%		6.8	%
Interstate	4		72.8	%	78.4	%	(7.1	%)		$116.59	$103.85	12.3	%		$84.87	$81.44	4.2	%		0.9	%
Resort	11		77.4	%	87.4	%	(11.4	%)		$172.70	$153.26	12.7	%		$133.60	$133.98	(0.3	%)		6.4	%
Small Metro/Town	11		80.0	%	81.5	%	(1.8	%)		$123.35	$116.01	6.3	%		$98.63	$94.50	4.4	%		3.5	%
Suburban	125		78.6	%	81.4	%	(3.4	%)		$146.26	$139.71	4.7	%		$114.90	$113.77	1.0	%		50.3	%
Urban	50		75.3	%	80.7	%	(6.7	%)		$176.88	$166.63	6.2	%		$133.19	$134.48	(1.0	%)		32.1	%
Total Portfolio	219		77.9	%	81.6	%	(4.5	%)		$153.35	$145.14	5.7	%		$119.41	$118.41	0.8	%		100.0	%

Note: Location categorization based on STR designation. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location Compared to 2021
Six Months Ended June 30
(Unaudited)
Location			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2022		YTD 2021		% Change			YTD 2022	YTD 2021	% Change			YTD 2022	YTD 2021	% Change			YTD 2022
STR Location
Airport	18		78.8	%	69.6	%	13.2	%		$135.56	$102.41	32.4	%		$106.85	$71.28	49.9	%		7.7	%
Interstate	4		65.9	%	57.5	%	14.6	%		$115.35	$99.46	16.0	%		$76.04	$57.23	32.9	%		0.9	%
Resort	11		74.4	%	63.4	%	17.4	%		$167.70	$133.92	25.2	%		$124.71	$84.86	47.0	%		7.1	%
Small Metro/Town	11		77.5	%	69.5	%	11.5	%		$128.15	$101.38	26.4	%		$99.28	$70.51	40.8	%		4.5	%
Suburban	125		73.2	%	65.2	%	12.3	%		$139.02	$110.05	26.3	%		$101.77	$71.79	41.8	%		50.3	%
Urban	50		68.5	%	55.7	%	23.0	%		$164.35	$121.75	35.0	%		$112.50	$67.87	65.8	%		29.5	%
Total Portfolio	219		72.5	%	63.1	%	14.9	%		$145.84	$112.79	29.3	%		$105.77	$71.14	48.7	%		100.0	%

Note: Location categorization based on STR designation.

Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location Compared to 2019
Six Months Ended June 30
(Unaudited)
Location			Occupancy							ADR					RevPAR					% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2022		YTD 2019		% Change			YTD 2022	YTD 2019	% Change			YTD 2022	YTD 2019	% Change			YTD 2022
STR Location
Airport	18		78.8	%	81.0	%	(2.7	%)		$135.56	$131.74	2.9	%		$106.85	$106.72	0.1	%		7.7	%
Interstate	4		65.9	%	72.8	%	(9.5	%)		$115.35	$103.08	11.9	%		$76.04	$75.01	1.4	%		0.9	%
Resort	11		74.4	%	83.4	%	(10.8	%)		$167.70	$154.47	8.6	%		$124.71	$128.81	(3.2	%)		7.1	%
Small Metro/Town	11		77.5	%	80.8	%	(4.1	%)		$128.15	$125.28	2.3	%		$99.28	$101.25	(1.9	%)		4.5	%
Suburban	125		73.2	%	77.4	%	(5.4	%)		$139.02	$137.78	0.9	%		$101.77	$106.63	(4.6	%)		50.3	%
Urban	50		68.5	%	76.3	%	(10.2	%)		$164.35	$159.41	3.1	%		$112.50	$121.69	(7.6	%)		29.5	%
Total Portfolio	219		72.5	%	77.7	%	(6.7	%)		$145.84	$142.64	2.2	%		$105.77	$110.90	(4.6	%)		100.0	%

Note: Location categorization based on STR designation. Comparisons to 2019 operating results are included to provide a better understanding of the Company’s recovery from the impact of COVID-19 on hotel operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220803006068/en/

Apple Hospitality REIT, Inc.

Kelly Clarke, Vice President, Investor Relations

804-727-6321

kclarke@applereit.com

Source: Apple Hospitality REIT, Inc.

FAQ

What were Apple Hospitality's Q2 2022 earnings results?

Apple Hospitality reported a net income of $65.3 million for Q2 2022, up 222.2% from the previous year.

How did Apple Hospitality perform compared to pre-pandemic levels?

RevPAR for Q2 2022 surpassed pre-pandemic levels by approximately 4%, indicating strong recovery.

What is the current Average Daily Rate (ADR) for Apple Hospitality?

The current ADR for Apple Hospitality reached $153.35 in Q2 2022, a 27.2% increase from the previous year.

What changes were made to Apple Hospitality's credit facility?

Apple Hospitality amended its credit facility to increase borrowing capacity to $1.2 billion and extended maturity dates.

What is the expected annual yield from Apple Hospitality's distributions?

The annualized distribution yield is approximately 3.7%, based on an annual distribution of $0.60 per common share.