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Apple Hospitality REIT Reports Results of Operations for Second Quarter 2024

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Apple Hospitality REIT (NYSE: APLE) reported its second quarter 2024 financials. Net income rose 13.2% to $73.9 million, while operating income increased 12.6% to $93.5 million.

Net income per share grew 6.9% to $0.31. Adjusted EBITDAre was up 9.1% to $140.9 million, and Modified Funds From Operations (MFFO) increased 8.9% to $121.3 million. Comparable Hotels Adjusted Hotel EBITDA saw a modest increase of 1.5% to $151.5 million.

The company acquired the Embassy Suites by Hilton Madison Downtown for $79.5 million and sold the SpringHill Suites by Marriott Greensboro for $7.1 million. It also repurchased 1.6 million common shares for an aggregate price of $23.1 million.

Distributions remained steady at $0.24 per share. Management has revised 2024 guidance, projecting lower net income and Adjusted EBITDAre, but a slight increase in Comparable Hotels Adjusted Hotel EBITDA Margin.

Apple Hospitality REIT (NYSE: APLE) ha riportato i risultati finanziari del secondo trimestre del 2024. Il reddito netto è aumentato del 13,2% raggiungendo i 73,9 milioni di dollari, mentre l'utile operativo è cresciuto del 12,6% a 93,5 milioni di dollari.

Il reddito netto per azione è aumentato del 6,9% a 0,31 dollari. L'EBITDAre rettificato è salito del 9,1% a 140,9 milioni di dollari, e i Fondi Modificati dalle Operazioni (MFFO) sono aumentati dell'8,9% a 121,3 milioni di dollari. L'EBITDA alberghiero rettificato per gli Hotel Comparabili ha visto un modesto incremento dell'1,5% a 151,5 milioni di dollari.

L'azienda ha acquisito l'Embassy Suites by Hilton Madison Downtown per 79,5 milioni di dollari e ha venduto lo SpringHill Suites by Marriott Greensboro per 7,1 milioni di dollari. Ha anche riacquistato 1,6 milioni di azioni comuni per un prezzo totale di 23,1 milioni di dollari.

Le distribuzioni sono rimaste stabili a 0,24 dollari per azione. La direzione ha rivisto le previsioni per il 2024, proiettando un reddito netto e un EBITDAre rettificato più bassi, ma un leggero incremento nel Margine EBITDA rettificato degli Hotel Comparabili.

Apple Hospitality REIT (NYSE: APLE) informó sobre sus resultados financieros del segundo trimestre de 2024. Los ingresos netos aumentaron un 13.2% alcanzando los 73.9 millones de dólares, mientras que el ingreso operativo creció un 12.6% a 93.5 millones de dólares.

El ingreso neto por acción se incrementó un 6.9% a 0.31 dólares. El EBITDAre ajustado subió un 9.1% a 140.9 millones de dólares, y los Fondos Modificados de Operaciones (MFFO) aumentaron un 8.9% alcanzando los 121.3 millones de dólares. El EBITDA ajustado de hoteles comparables mostró un aumento modesto del 1.5% a 151.5 millones de dólares.

La compañía adquirió el Embassy Suites by Hilton Madison Downtown por 79.5 millones de dólares y vendió el SpringHill Suites by Marriott Greensboro por 7.1 millones de dólares. También recompró 1.6 millones de acciones comunes por un precio total de 23.1 millones de dólares.

Las distribuciones permanecieron estables en 0.24 dólares por acción. La dirección ha revisado las proyecciones para 2024, proyectando ingresos netos y EBITDAre ajustado más bajos, pero un ligero aumento en el Margen de EBITDA Ajustado de Hoteles Comparables.

애플 호스피탈리티 REIT (NYSE: APLE)는 2024년 2분기 재무 실적을 보고했습니다. 순이익은 13.2% 증가하여 7390만 달러에 달했으며, 영업 이익은 12.6% 늘어나 9350만 달러에 이르렀습니다.

주당 순이익은 6.9% 증가하여 0.31달러가 되었습니다. 조정된 EBITDAre는 9.1% 증가하여 1억 4090만 달러에 이르렀고, 수정 영업활동에 따른 자금(MFFO)는 8.9% 증가하여 1억 2130만 달러로 증가했습니다. 비교 가능한 호텔 조정 호텔 EBITDA는 1.5% 증가하여 1억 5150만 달러를 기록했습니다.

회사는 Embassy Suites by Hilton Madison Downtown을 7950만 달러에 인수하고, SpringHill Suites by Marriott Greensboro를 710만 달러에 매각했습니다. 또한 총 2310만 달러의 가격으로 160만 주의 보통주를 재매입했습니다.

배당금은 주당 0.24달러로 안정세를 유지했습니다. 경영진은 2024년 가이던스를 수정하여 순이익과 조정된 EBITDAre는 낮아질 것이라는 예측을 했으나, 비교 가능한 호텔 조정 호텔 EBITDA 마진은 소폭 증가할 것으로 보입니다.

Apple Hospitality REIT (NYSE: APLE) a annoncé ses résultats financiers pour le deuxième trimestre 2024. Le revenu net a augmenté de 13,2 % pour atteindre 73,9 millions de dollars, tandis que le revenu d'exploitation a progressé de 12,6 % pour atteindre 93,5 millions de dollars.

Le revenu net par action a crû de 6,9 % à 0,31 dollar. L'EBITDAre ajusté a augmenté de 9,1 % pour atteindre 140,9 millions de dollars, et les Fonds Modifiés Provenant des Opérations (MFFO) ont progressé de 8,9 % pour atteindre 121,3 millions de dollars. L'EBITDA hôtelier ajusté des hôtels comparables a enregistré une légère augmentation de 1,5 % pour atteindre 151,5 millions de dollars.

L'entreprise a acquis l'Embassy Suites by Hilton Madison Downtown pour 79,5 millions de dollars et a vendu le SpringHill Suites by Marriott Greensboro pour 7,1 millions de dollars. Elle a également racheté 1,6 million d'actions ordinaires pour un prix total de 23,1 millions de dollars.

Les distributions sont restées stables à 0,24 dollar par action. La direction a révisé les prévisions pour 2024, projetant un revenu net et un EBITDAre ajusté plus faibles, mais une légère augmentation de la marge EBITDA des hôtels comparables.

Apple Hospitality REIT (NYSE: APLE) hat seine Finanzzahlen für das zweite Quartal 2024 bekannt gegeben. Der Nettogewinn stieg um 13,2 % auf 73,9 Millionen Dollar, während das Betriebsergebnis um 12,6 % auf 93,5 Millionen Dollar zunahm.

Der Nettogewinn pro Aktie wuchs um 6,9 % auf 0,31 Dollar. Das bereinigte EBITDAre stieg um 9,1 % auf 140,9 Millionen Dollar, und modifizierte Mittel aus dem operativen Geschäft (MFFO) erhöhten sich um 8,9 % auf 121,3 Millionen Dollar. Das angepasste Hotel-EBITDA vergleichbarer Hotels verzeichnete einen moderaten Anstieg von 1,5 % auf 151,5 Millionen Dollar.

Das Unternehmen erwarb das Embassy Suites by Hilton Madison Downtown für 79,5 Millionen Dollar und verkaufte das SpringHill Suites by Marriott Greensboro für 7,1 Millionen Dollar. Zudem wurden 1,6 Millionen Stammaktien zu einem Gesamtpreis von 23,1 Millionen Dollar zurückgekauft.

Die Ausschüttungen blieben stabil bei 0,24 Dollar pro Aktie. Das Management hat die Prognosen für 2024 überarbeitet und rechnet mit einem niedrigeren Nettogewinn und bereinigtem EBITDAre, aber einem leichten Anstieg der EBITDA-Marge vergleichbarer Hotels.

Positive
  • Net income rose 13.2% to $73.9 million.
  • Operating income increased 12.6% to $93.5 million.
  • Net income per share grew 6.9% to $0.31.
  • Adjusted EBITDAre was up 9.1% to $140.9 million.
  • Modified Funds From Operations (MFFO) increased 8.9% to $121.3 million.
  • Repurchased 1.6 million common shares for $23.1 million.
Negative
  • Comparable Hotels Adjusted Hotel EBITDA Margin decreased by 50 bps.
  • Distributions per share remained flat at $0.24 per share.
  • Updated guidance shows a decrease in Net Income and Adjusted EBITDAre.

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, 2024.

 

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,

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$73,931

 

$65,289

 

13.2%

 

$127,981

 

$98,212

 

30.3%

Net income per share

$0.31

 

$0.29

 

6.9%

 

$0.53

 

$0.43

 

23.3%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$93,515

 

$83,029

 

12.6%

 

$165,130

 

$132,276

 

24.8%

Operating margin %

24.0%

 

23.0%

 

100 bps

 

22.9%

 

19.7%

 

320 bps

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAre

$140,916

 

$129,144

 

9.1%

 

$241,726

 

$224,432

 

7.7%

Comparable Hotels Adjusted Hotel EBITDA

$151,515

 

$149,276

 

1.5%

 

$263,013

 

$264,812

 

(0.7%)

Comparable Hotels Adjusted Hotel EBITDA Margin %

39.1%

 

39.6%

 

(50 bps)

 

36.6%

 

37.7%

 

(110 bps)

Modified funds from operations (MFFO)

$121,329

 

$111,399

 

8.9%

 

$204,569

 

$190,358

 

7.5%

MFFO per share

$0.50

 

$0.49

 

2.0%

 

$0.84

 

$0.83

 

1.2%

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Rate (ADR) (Actual)

$162.98

 

$160.98

 

1.2%

 

$158.34

 

$156.70

 

1.0%

Occupancy (Actual)

79.8%

 

78.2%

 

2.0%

 

75.9%

 

75.1%

 

1.1%

Revenue Per Available Room (RevPAR) (Actual)

$130.07

 

$125.96

 

3.3%

 

$120.18

 

$117.74

 

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

Comparable Hotels ADR

$163.01

 

$162.51

 

0.3%

 

$158.83

 

$158.53

 

0.2%

Comparable Hotels Occupancy

79.8%

 

78.1%

 

2.2%

 

76.0%

 

75.2%

 

1.1%

Comparable Hotels RevPAR

$130.09

 

$126.97

 

2.5%

 

$120.63

 

$119.15

 

1.2%

 

 

 

 

 

 

 

 

 

 

 

 

Distributions paid

$58,045

 

$54,883

 

5.8%

 

$128,201

 

$128,282

 

(0.1%)

Distributions paid per share

$0.24

 

$0.24

 

0.0%

 

$0.53

 

$0.56

 

(5.4%)

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$7,224

 

 

 

 

 

 

 

 

 

 

Total debt outstanding

$1,542,455

 

 

 

 

 

 

 

 

 

 

Total debt outstanding, net of cash and cash equivalents

$1,535,231

 

 

 

 

 

 

 

 

 

 

Total debt outstanding, net of cash and cash equivalents, to total capitalization (2)

30.4%

 

 

 

 

 

 

 

 

 

 

___________________________

(1)

Explanations of and reconciliations to net income 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 $14.54 on June 30, 2024.

Comparable Hotels is defined as the 224 hotels owned by the Company as of June 30, 2024, and excludes one non-hotel property. 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, “The fundamentals of our business remain strong, bolstered by the muted rate of new supply growth relative to historical levels. For the second quarter 2024, Comparable Hotels Occupancy was 80%, an improvement of more than 2% as compared to the second quarter 2023. While we believe our greatest opportunity for continued growth will come from the steady improvement we are seeing in midweek business travel demand, we were able to grow occupancy on both weekdays and weekends during the quarter, demonstrating the resilience of leisure travel demand and the upside we continue to realize as business travel patterns normalize. Comparable Hotels RevPAR for the second quarter improved by 2.5% as compared to the second quarter last year, with a marginal increase in ADR. Our revenue and asset management teams, together with our third-party operators, are intently focused on maximizing the profitability of our assets and optimizing their performance within their respective markets.”

Mr. Knight continued, “During the quarter, we acquired the newly built Embassy Suites by Hilton Madison Downtown, following completion of construction. Through our longstanding relationship with the developer, we secured a fixed-price, take-out contract ahead of development, which enabled us to acquire the asset at an attractive price despite rising construction costs. Year to date through July, we sold three hotels for a combined sales price of approximately $41 million, purchased two hotels for a combined purchase price of approximately $196 million, and, with the recent pullback in our stock price, repurchased 1.6 million of our common shares for an aggregate purchase price of approximately $23 million. Our recent activity highlights the strength and flexibility provided by our balance sheet and our ability to opportunistically allocate capital in the current environment. We remain focused on maximizing long-term value for our shareholders.”

Hotel Portfolio Overview

As of June 30, 2024, Apple Hospitality owned 224 hotels with an aggregate of 30,068 guest rooms located in 87 markets throughout 37 states and the District of Columbia.

Second Quarter 2024 Highlights

  • Strong operating performance: For the second quarter 2024, Comparable Hotels ADR was $163, a marginal improvement over second quarter 2023; Comparable Hotels Occupancy was 80%, an increase of more than 2% over second quarter 2023; and Comparable Hotels RevPAR was $130, an increase of 2.5% over second quarter 2023. Comparable Hotels Occupancy, ADR and RevPAR exceeded industry averages as reported by STR for the second quarter 2024. Based on preliminary results for the Company's portfolio for the month of July 2024, Comparable Hotels Occupancy was approximately 77%, flat compared to July 2023, with Comparable Hotels ADR down slightly as compared to July 2023.
  • Strong bottom-line performance: The Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $152 million, a 1.5% improvement over second quarter 2023, and Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 39%, down 50 bps to second quarter 2023. The Company achieved Adjusted EBITDAre of approximately $141 million for the second quarter 2024, an increase of 9% as compared to second quarter 2023. The Company achieved MFFO of approximately $121 million for the second quarter 2024, an increase of 9% as compared to second quarter 2023.
  • Transactional activity: During the second quarter 2024, the Company acquired the 262-room Embassy Suites by Hilton Madison Downtown for a total purchase price of approximately $79.5 million and sold its 82-room SpringHill Suites by Marriott Greensboro for a gross sales price of approximately $7.1 million.
  • Capital markets: During the second quarter 2024, the Company purchased, under its Share Repurchase Program, approximately 1.1 million of its common shares at a weighted-average market purchase price of approximately $14.35 per common share, for an aggregate purchase price of approximately $15.5 million. Subsequent to the end of the second quarter 2024, the Company purchased, under its Share Repurchase Program, an additional 0.5 million of its common shares, bringing the total shares purchased year to date through July 31, 2024, to approximately 1.6 million common shares at a weighted-average market purchase price of approximately $14.29 per common share, for an aggregate purchase price of approximately $23.1 million.
  • Balance sheet: The Company has maintained the strength and flexibility of its balance sheet. At June 30, 2024, the Company’s total debt to total capitalization, net of cash and cash equivalents, was approximately 30%.
  • Monthly distributions: During the three months ended June 30, 2024, the Company paid distributions totaling $0.24 per common share. Based on the Company’s common stock closing price of $14.48 on August 2, 2024, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 6.6%.

The Company is providing monthly performance detail for its Comparable Hotels with comparisons to the respective periods of 2023. The following table highlights the Company’s Comparable Hotels monthly performance during the second quarter of 2024 as compared to the second quarter of 2023 (in thousands, except statistical data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

April

 

May

 

June

 

 

 

April

 

May

 

June

 

 

 

April

 

May

 

June

 

 

 

2024

 

2024

 

2024

 

Q2 2024

 

2023

 

2023

 

2023

 

Q2 2023

 

2023

 

2023

 

2023

 

Q2 2023

ADR (Comparable Hotels)

$159.97

 

$162.12

 

$166.87

 

$163.01

 

$158.10

 

$162.21

 

$167.02

 

$162.51

 

1.2%

 

(0.1%)

 

(0.1%)

 

0.3%

Occupancy (Comparable Hotels)

79.6%

 

78.8%

 

81.1%

 

79.8%

 

77.0%

 

76.9%

 

80.5%

 

78.1%

 

3.4%

 

2.5%

 

0.7%

 

2.2%

RevPAR (Comparable Hotels)

$127.37

 

$127.71

 

$135.26

 

$130.09

 

$121.80

 

$124.69

 

$134.48

 

$126.97

 

4.6%

 

2.4%

 

0.6%

 

2.5%

Operating income (Actual)

$28,895

 

$30,596

 

$34,024

 

$93,515

 

$24,392

 

$26,644

 

$31,993

 

$83,029

 

18.5%

 

14.8%

 

6.3%

 

12.6%

Adjusted Hotel EBITDA (Actual) (1)

$48,307

 

$49,570

 

$53,803

 

$151,680

 

$43,294

 

$46,588

 

$51,362

 

$141,244

 

11.6%

 

6.4%

 

4.8%

 

7.4%

Comparable Hotels Adjusted Hotel EBITDA (2)

$48,179

 

$49,555

 

$53,781

 

$151,515

 

$45,711

 

$49,430

 

$54,135

 

$149,276

 

5.4%

 

0.3%

 

(0.7%)

 

1.5%

___________________________

(1)

See explanation and reconciliation of Adjusted Hotel EBITDA to net income included below.

(2)

See explanation and reconciliation of Comparable Hotels Adjusted Hotel EBITDA to Adjusted Hotel EBITDA included below.

Comparable Hotels is defined as the 224 hotels owned by the Company as of June 30, 2024, and excludes one non-hotel property. 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.

Portfolio Activity

Acquisitions

As previously announced, since the beginning of 2024, the Company has acquired two hotels for a combined total purchase price of approximately $196.3 million. The acquisitions include the following:

  • In March 2024, the Company acquired the 234-room AC Hotel by Marriott Washington DC Convention Center for a total purchase price of approximately $116.8 million, or $499,000 per key.
  • In June 2024, the Company acquired the newly built, 262-room Embassy Suites by Hilton Madison Downtown for a total purchase price of approximately $79.5 million, or $303,000 per key.

Contract for Potential Acquisition

As previously announced, the Company continues to have one additional hotel under contract for purchase, a Motto by Hilton that is under development in downtown Nashville, Tennessee, for an anticipated total purchase price of approximately $98.2 million with an expected 260 rooms, which the Company anticipates acquiring in late 2025 following completion of construction. There are many conditions to closing on this hotel 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.

Dispositions

As previously announced, during the six months ended June 30, 2024, the Company sold three hotels for a combined gross sales price of approximately $40.6 million, resulting in a combined gain on the sales of approximately $18.2 million, which is included in the Company's consolidated statement of operations for the six months ended June 30, 2024. The dispositions include the following:

  • In February 2024, the Company sold the 122-room Hampton Inn by Hilton Bentonville/Rogers and the 126-room Homewood Suites by Hilton Bentonville-Rogers in one transaction, for a combined gross sales price of approximately $33.5 million. The Company used a portion of the net proceeds from the sale of these two hotels to complete a 1031 exchange with the acquisition of the AC Hotel Washington DC Convention Center in March 2024, which resulted in the deferral of taxable gains of $15.1 million.
  • In May 2024, the Company sold the 82-room SpringHill Suites by Marriott Greensboro for a gross sales price of approximately $7.1 million.

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, 2024, the Company invested approximately $33 million in capital expenditures. The Company anticipates investing approximately $75 million to $85 million in capital improvements during 2024, which includes comprehensive renovation projects for approximately 20 hotels.

Balance Sheet and Liquidity

Summary

As of June 30, 2024, the Company had approximately $1.5 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.8%, cash on hand of approximately $7 million and availability under its revolving credit facility of approximately $481 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt as of June 30, 2024, was comprised of approximately $278 million in property-level debt secured by 15 hotels and approximately $1.3 billion outstanding under its unsecured credit facilities. The number of unencumbered hotels in the Company’s portfolio as of June 30, 2024, was 209. The Company’s total debt to total capitalization, net of cash and cash equivalents at June 30, 2024, was approximately 30%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of June 30, 2024, the Company’s weighted-average debt maturities were 3.1 years.

On July 17, 2024, the Company amended its unsecured $85 million term loan facility, which increased the amount of the term loan facility to $130 million, with the additional $45 million funded at closing; extended the maturity date to July 25, 2026; and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month SOFR plus a 0.10% SOFR spread adjustment plus a margin ranging from 1.35% to 2.20%, depending on the Company's leverage ratio, as calculated under the terms of the amended credit agreement. Subject to certain conditions, including covenant compliance and additional fees, the maturity date of the $130 million term loan facility may be extended by the Company to July 25, 2027.

Capital Markets

Share Repurchase Program

The Company has in place a Share Repurchase Program that provides for share repurchases in open market transactions. During the three months ended June 30, 2024, the Company purchased, under its Share Repurchase Program, approximately 1.1 million of its common shares at a weighted-average market purchase price of approximately $14.35 per common share, for an aggregate purchase price of approximately $15.5 million. Subsequent to the end of the second quarter 2024, the Company purchased, under its Share Repurchase Program, an additional 0.5 million of its common shares, bringing the total shares purchased year to date through July 31, 2024, to approximately 1.6 million common shares at a weighted-average market purchase price of approximately $14.29 per common share, for an aggregate purchase price of approximately $23.1 million. As of July 31, 2024, the Company had approximately $312 million remaining under its Share Repurchase Program for the repurchase of shares.

ATM Program

The Company also has in place an at-the-market offering program (the “ATM Program”). As of June 30, 2024, the Company had $500 million remaining under its ATM Program for the issuance of shares. No shares were sold under the current or prior ATM Program during the three and six months ended June 30, 2024.

Shareholder Distributions

During the three months ended June 30, 2024, the Company paid distributions totaling $0.24 per common share. Based on the Company’s common stock closing price of $14.48 on August 2, 2024, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 6.6%. While the Company currently 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.

Updated 2024 Outlook

The Company is updating its operational and financial outlook for 2024. This outlook, which is based on management’s current view of both operating and economic fundamentals of the Company's existing portfolio of hotels, does not take into account any unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions or dispositions. As compared to the midpoint of previously provided 2024 guidance, the Company is decreasing Net Income by $6 million, decreasing Comparable Hotels RevPAR Change by 150 bps, increasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 10 bps, and decreasing Adjusted EBITDAre by $7 million. Comparable Hotels RevPAR Change guidance, which is the change in Comparable Hotels RevPAR in 2024 compared to 2023, and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired and announced for acquisition by year-end 2024 as if the hotels were owned as of January 1, 2023, exclude completed dispositions since January 1, 2023, and exclude one non-hotel property. Results for periods prior to the Company’s ownership are not included in the Company’s actual Consolidated Financial Statements, are based on information from the prior owner of each hotel, and have not been audited or adjusted. For the full year 2024, the Company anticipates its 2024 results will be in the following range:

 

 

Updated 2024 Guidance(1)

 

 

Low-End

 

High-End

Net income

 

$202 Million

 

$225 Million

Comparable Hotels RevPAR Change

 

0.5%

 

2.5%

Comparable Hotels Adjusted Hotel EBITDA Margin %

 

35.0%

 

35.8%

Adjusted EBITDAre

 

$456 Million

 

$474 Million

Capital expenditures

 

$75 Million

 

$85 Million

___________________________

(1)

Explanations of and reconciliations to net income guidance of Adjusted EBITDAre and Comparable Hotels Adjusted Hotel EBITDA guidance are included below.

Second Quarter 2024 Earnings Conference Call

The Company will host a quarterly conference call for investors and interested parties at 10 a.m. Eastern Time on Tuesday, August 6, 2024. 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 2 p.m. Eastern Time on August 6, 2024, through 11:59 p.m. Eastern Time on August 20, 2024. 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 13746957. 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 224 hotels with more than 30,000 guest rooms located in 87 markets throughout 37 states and the District of Columbia. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 100 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded 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; Adjusted Hotel EBITDA; Comparable Hotels Adjusted Hotel EBITDA; and Same Store Hotels 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, Adjusted Hotel EBITDA, Comparable Hotels Adjusted Hotel EBITDA and Same Store Hotels 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, Adjusted Hotel EBITDA, Comparable Hotels Adjusted Hotel EBITDA and Same Store Hotels Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA, Comparable Hotels Adjusted Hotel EBITDA and Same Store Hotels 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.

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.

 

Apple Hospitality REIT, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

 

 

 

June 30,

 

December 31,

 

 

2024

 

2023

 

 

(unaudited)

 

 

Assets

 

 

 

 

Investment in real estate, net of accumulated depreciation and amortization of $1,753,584 and $1,662,942, respectively

 

$4,911,878

 

$4,777,374

Assets held for sale

 

-

 

15,283

Cash and cash equivalents

 

7,224

 

10,287

Restricted cash-furniture, fixtures and other escrows

 

31,295

 

33,331

Due from third-party managers, net

 

62,894

 

36,437

Other assets, net

 

62,109

 

64,586

Total Assets

 

$5,075,400

 

$4,937,298

 

 

Liabilities

 

 

 

 

Debt, net

 

$1,536,891

 

$1,371,494

Finance lease liabilities

 

111,776

 

111,892

Accounts payable and other liabilities

 

93,763

 

129,931

Total Liabilities

 

1,742,430

 

1,613,317

 

 

 

 

 

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 241,280,329 and 241,515,532 shares, respectively

 

4,790,949

 

4,794,804

Accumulated other comprehensive income

 

21,380

 

20,404

Distributions greater than net income

 

(1,479,359)

 

(1,491,227)

Total Shareholders' Equity

 

3,332,970

 

3,323,981

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$5,075,400

 

$4,937,298

 
___________________________

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, 2024.

 

Apple Hospitality REIT, Inc.

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Room

 

$

353,689

 

 

$

331,043

 

 

$

652,435

 

 

$

616,563

 

Food and beverage

 

 

17,857

 

 

 

15,507

 

 

 

32,919

 

 

 

28,456

 

Other

 

 

18,531

 

 

 

15,080

 

 

 

34,235

 

 

 

28,065

 

Total revenue

 

 

390,077

 

 

 

361,630

 

 

 

719,589

 

 

 

673,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expense:

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

 

91,523

 

 

 

84,911

 

 

 

175,319

 

 

 

163,574

 

Hotel administrative

 

 

31,453

 

 

 

29,442

 

 

 

61,205

 

 

 

56,761

 

Sales and marketing

 

 

33,649

 

 

 

30,936

 

 

 

63,488

 

 

 

58,636

 

Utilities

 

 

11,665

 

 

 

10,776

 

 

 

23,184

 

 

 

22,474

 

Repair and maintenance

 

 

17,626

 

 

 

16,451

 

 

 

34,468

 

 

 

32,116

 

Franchise fees

 

 

17,527

 

 

 

15,868

 

 

 

32,281

 

 

 

29,512

 

Management fees

 

 

12,848

 

 

 

12,129

 

 

 

23,610

 

 

 

22,605

 

Total hotel operating expense

 

 

216,291

 

 

 

200,513

 

 

 

413,555

 

 

 

385,678

 

Property taxes, insurance and other

 

 

21,940

 

 

 

19,994

 

 

 

42,932

 

 

 

39,669

 

General and administrative

 

 

11,065

 

 

 

12,100

 

 

 

21,649

 

 

 

23,561

 

Depreciation and amortization

 

 

47,715

 

 

 

45,994

 

 

 

94,538

 

 

 

91,900

 

Total expense

 

 

297,011

 

 

 

278,601

 

 

 

572,674

 

 

 

540,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of real estate

 

 

449

 

 

 

-

 

 

 

18,215

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

93,515

 

 

 

83,029

 

 

 

165,130

 

 

 

132,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other expense, net

 

 

(19,370

)

 

 

(17,499

)

 

 

(36,679

)

 

 

(33,503

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

74,145

 

 

 

65,530

 

 

 

128,451

 

 

 

98,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(214

)

 

 

(241

)

 

 

(470

)

 

 

(561

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

73,931

 

 

$

65,289

 

 

$

127,981

 

 

$

98,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate derivatives

 

 

(2,732

)

 

 

7,224

 

 

 

976

 

 

 

(882

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

71,199

 

 

$

72,513

 

 

$

128,957

 

 

$

97,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income per common share

 

$

0.31

 

 

$

0.29

 

 

$

0.53

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

 

242,174

 

 

 

229,041

 

 

 

242,291

 

 

 

229,218

 

___________________________

Note: The Consolidated Statements of Operations and Comprehensive Income and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.

 

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

 

 

2024

 

2023

 

2023

 

2024

 

2023

 

2023

Operating income (Actual)

 

$93,515

 

$83,029

 

12.6%

 

$165,130

 

$132,276

 

24.8%

Operating margin % (Actual)

 

24.0%

 

23.0%

 

100 bps

 

22.9%

 

19.7%

 

320 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparable Hotels Total Revenue

 

$387,105

 

$377,005

 

2.7%

 

$718,050

 

$703,119

 

2.1%

Comparable Hotels Total Operating Expenses

 

$235,590

 

$227,729

 

3.5%

 

$455,037

 

$438,307

 

3.8%

Comparable Hotels Adjusted Hotel EBITDA

 

$151,515

 

$149,276

 

1.5%

 

$263,013

 

$264,812

 

(0.7%)

Comparable Hotels Adjusted Hotel EBITDA Margin %

 

39.1%

 

39.6%

 

(50 bps)

 

36.6%

 

37.7%

 

(110 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Comparable Hotels)

 

$163.01

 

$162.51

 

0.3%

 

$158.83

 

$158.53

 

0.2%

Occupancy (Comparable Hotels)

 

79.8%

 

78.1%

 

2.2%

 

76.0%

 

75.2%

 

1.1%

RevPAR (Comparable Hotels)

 

$130.09

 

$126.97

 

2.5%

 

$120.63

 

$119.15

 

1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$162.98

 

$160.98

 

1.2%

 

$158.34

 

$156.70

 

1.0%

Occupancy (Actual)

 

79.8%

 

78.2%

 

2.0%

 

75.9%

 

75.1%

 

1.1%

RevPAR (Actual)

 

$130.07

 

$125.96

 

3.3%

 

$120.18

 

$117.74

 

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Actual Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (Actual)

 

$390,077

 

$361,630

 

 

 

$719,589

 

$673,084

 

 

Revenue from acquisitions prior to ownership

 

-

 

21,825

 

 

 

4,775

 

41,611

 

 

Revenue from dispositions

 

(469)

 

(3,570)

 

 

 

(1,768)

 

(5,853)

 

 

Revenue from non-hotel property

 

(2,503)

 

(2,880)

 

 

 

(4,546)

 

(5,723)

 

 

Comparable Hotels Total Revenue

 

$387,105

 

$377,005

 

 

 

$718,050

 

$703,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)

 

$151,680

 

$141,244

 

 

 

$261,473

 

$247,993

 

 

AHEBITDA from acquisitions prior to ownership

 

-

 

9,725

 

 

 

1,882

 

18,045

 

 

AHEBITDA from dispositions

 

(165)

 

(1,471)

 

 

 

(342)

 

(1,800)

 

 

AHEBITDA from non-hotel property (2)

 

-

 

(222)

 

 

 

-

 

574

 

 

Comparable Hotels AHEBITDA

 

$151,515

 

$149,276

 

 

 

$263,013

 

$264,812

 

 

___________________________

(1)

Represents the Company's actual Adjusted Hotel EBITDA which excludes Adjusted EBITDAre from its non-hotel property, the Company's independent boutique hotel in New York, New York, starting in the second half of 2023, subsequent to its lease to a third-party hotel operator for all hotel operations (the "non-hotel property"). The Company has terminated the lease for failure to make lease payments timely, and in April 2024 commenced legal proceedings to remove the operator from possession of the hotel, which remain ongoing.

(2)

Represents Adjusted Hotel EBITDA from the non-hotel property in the first half of 2023, prior to its lease to a third-party hotel operator for all hotel operations.

 

Note: Comparable Hotels is defined as the 224 hotels owned by the Company as of June 30, 2024, and excludes the non-hotel property. 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.

 

Reconciliation of net income 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)

 

 

 

2023

 

2024

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

Operating income (Actual)

 

$49,247

 

$83,029

 

$76,295

 

$38,910

 

$71,615

 

$93,515

Operating margin % (Actual)

 

15.8%

 

23.0%

 

21.3%

 

12.5%

 

21.7%

 

24.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparable Hotels Total Revenue

 

$326,114

 

$377,005

 

$371,820

 

$319,666

 

$330,945

 

$387,105

Comparable Hotels Total Operating Expenses

 

210,578

 

227,729

 

232,996

 

214,021

 

219,447

 

235,590

Comparable Hotels Adjusted Hotel EBITDA

 

$115,536

 

$149,276

 

$138,824

 

$105,645

 

$111,498

 

$151,515

Comparable Hotels Adjusted Hotel EBITDA Margin %

 

35.4%

 

39.6%

 

37.3%

 

33.0%

 

33.7%

 

39.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Comparable Hotels)

 

$154.18

 

$162.51

 

$160.67

 

$151.59

 

$154.20

 

$163.01

Occupancy (Comparable Hotels)

 

72.2%

 

78.1%

 

77.2%

 

69.8%

 

72.1%

 

79.8%

RevPAR (Comparable Hotels)

 

$111.24

 

$126.97

 

$124.05

 

$105.74

 

$111.16

 

$130.09

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$152.01

 

$160.98

 

$159.36

 

$149.88

 

$153.18

 

$162.98

Occupancy (Actual)

 

72.0%

 

78.2%

 

77.1%

 

69.6%

 

72.0%

 

79.8%

RevPAR (Actual)

 

$109.46

 

$125.96

 

$122.91

 

$104.27

 

$110.25

 

$130.07

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Actual Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (Actual)

 

$311,454

 

$361,630

 

$358,260

 

$312,456

 

$329,512

 

$390,077

Revenue from acquisitions prior to ownership

 

19,786

 

21,825

 

18,999

 

12,245

 

4,775

 

-

Revenue from dispositions

 

(2,283)

 

(3,570)

 

(3,427)

 

(2,908)

 

(1,299)

 

(469)

Revenue from non-hotel property

 

(2,843)

 

(2,880)

 

(2,012)

 

(2,127)

 

(2,043)

 

(2,503)

Comparable Hotels Total Revenue

 

$326,114

 

$377,005

 

$371,820

 

$319,666

 

$330,945

 

$387,105

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)

 

$106,749

 

$141,244

 

$132,161

 

$101,738

 

$109,793

 

$151,680

AHEBITDA from acquisitions prior to ownership

 

8,320

 

9,725

 

7,978

 

4,842

 

1,882

 

-

AHEBITDA from dispositions

 

(329)

 

(1,471)

 

(1,315)

 

(935)

 

(177)

 

(165)

AHEBITDA from non-hotel property (2)

 

796

 

(222)

 

-

 

-

 

-

 

-

Comparable Hotels AHEBITDA

 

$115,536

 

$149,276

 

$138,824

 

$105,645

 

$111,498

 

$151,515

___________________________

(1)

Represents the Company's actual Adjusted Hotel EBITDA which excludes Adjusted EBITDAre from the non-hotel property starting in the second half of 2023, subsequent to its lease to a third-party hotel operator for all hotel operations.

(2)

Represents Adjusted Hotel EBITDA from the non-hotel property in the first half of 2023, prior to its lease to a third-party hotel operator for all hotel operations.

 

Note: Comparable Hotels is defined as the 224 hotels owned by the Company as of June 30, 2024, and excludes the non-hotel property. 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.

 

Reconciliation of net income 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

 

 

2024

 

2023

 

2023

 

2024

 

2023

 

2023

Operating income (Actual)

 

$93,515

 

$83,029

 

12.6%

 

$165,130

 

$132,276

 

24.8%

Operating margin % (Actual)

 

24.0%

 

23.0%

 

100 bps

 

22.9%

 

19.7%

 

320 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Hotels Total Revenue

 

$363,746

 

$355,155

 

2.4%

 

$673,731

 

$661,483

 

1.9%

Same Store Hotels Total Operating Expenses

 

222,619

 

215,617

 

3.2%

 

429,985

 

414,729

 

3.7%

Same Store Hotels Adjusted Hotel EBITDA

 

$141,127

 

$139,538

 

1.1%

 

$243,746

 

$246,754

 

(1.2%)

Same Store Hotels Adjusted Hotel EBITDA Margin %

 

38.8%

 

39.3%

 

(50 bps)

 

36.2%

 

37.3%

 

(110 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Same Store Hotels)

 

$160.89

 

$160.88

 

0.0%

 

$156.66

 

$156.84

 

(0.1%)

Occupancy (Same Store Hotels)

 

79.9%

 

78.2%

 

2.2%

 

75.9%

 

75.1%

 

1.1%

RevPAR (Same Store Hotels)

 

$128.51

 

$125.76

 

2.2%

 

$118.91

 

$117.84

 

0.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$162.98

 

$160.98

 

1.2%

 

$158.34

 

$156.70

 

1.0%

Occupancy (Actual)

 

79.8%

 

78.2%

 

2.0%

 

75.9%

 

75.1%

 

1.1%

RevPAR (Actual)

 

$130.07

 

$125.96

 

3.3%

 

$120.18

 

$117.74

 

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Actual Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (Actual)

 

$390,077

 

$361,630

 

 

 

$719,589

 

$673,084

 

 

Revenue from acquisitions

 

(23,359)

 

(25)

 

 

 

(39,544)

 

(25)

 

 

Revenue from dispositions

 

(469)

 

(3,570)

 

 

 

(1,768)

 

(5,853)

 

 

Revenue from non-hotel property

 

(2,503)

 

(2,880)

 

 

 

(4,546)

 

(5,723)

 

 

Same Store Hotels Total Revenue

 

$363,746

 

$355,155

 

 

 

$673,731

 

$661,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)

 

$151,680

 

$141,244

 

 

 

$261,473

 

$247,993

 

 

AHEBITDA from acquisitions

 

(10,388)

 

(13)

 

 

 

(17,385)

 

(13)

 

 

AHEBITDA from dispositions

 

(165)

 

(1,471)

 

 

 

(342)

 

(1,800)

 

 

AHEBITDA from non-hotel property (2)

 

-

 

(222)

 

 

 

-

 

574

 

 

Same Store Hotels AHEBITDA

 

$141,127

 

$139,538

 

 

 

$243,746

 

$246,754

 

 

___________________________

(1)

Represents the Company's actual Adjusted Hotel EBITDA which excludes Adjusted EBITDAre from the non-hotel property starting in the second half of 2023, subsequent to its lease to a third-party hotel operator for all hotel operations.

(2)

Represents Adjusted Hotel EBITDA from the non-hotel property in the first half of 2023, prior to its lease to a third-party hotel operator for all hotel operations.

 

Note: Same Store Hotels is defined as the 216 hotels owned and held for use by the Company as of January 1, 2023, and during the entirety of the periods being compared, and excludes the non-hotel property. This information has not been audited.

 

Reconciliation of net income 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)

 

 

 

2023

 

2024

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

Operating income (Actual)

 

$49,247

 

$83,029

 

$76,295

 

$38,910

 

$71,615

 

$93,515

Operating margin % (Actual)

 

15.8%

 

23.0%

 

21.3%

 

12.5%

 

21.7%

 

24.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Hotels Total Revenue

 

$306,328

 

$355,155

 

$350,712

 

$299,899

 

$309,985

 

$363,746

Same Store Hotels Total Operating Expenses

 

199,112

 

215,617

 

220,656

 

202,049

 

207,366

 

222,619

Same Store Hotels Adjusted Hotel EBITDA

 

$107,216

 

$139,538

 

$130,056

 

$97,850

 

$102,619

 

$141,127

Same Store Hotels Adjusted Hotel EBITDA Margin %

 

35.0%

 

39.3%

 

37.1%

 

32.6%

 

33.1%

 

38.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Same Store Hotels)

 

$152.40

 

$160.88

 

$159.48

 

$149.61

 

$151.96

 

$160.89

Occupancy (Same Store Hotels)

 

72.1%

 

78.2%

 

77.1%

 

69.7%

 

71.9%

 

79.9%

RevPAR (Same Store Hotels)

 

$109.83

 

$125.76

 

$123.00

 

$104.24

 

$109.31

 

$128.51

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$152.01

 

$160.98

 

$159.36

 

$149.88

 

$153.18

 

$162.98

Occupancy (Actual)

 

72.0%

 

78.2%

 

77.1%

 

69.6%

 

72.0%

 

79.8%

RevPAR (Actual)

 

$109.46

 

$125.96

 

$122.91

 

$104.27

 

$110.25

 

$130.07

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Actual Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (Actual)

 

$311,454

 

$361,630

 

$358,260

 

$312,456

 

$329,512

 

$390,077

Revenue from acquisitions

 

-

 

(25)

 

(2,109)

 

(7,522)

 

(16,185)

 

(23,359)

Revenue from dispositions

 

(2,283)

 

(3,570)

 

(3,427)

 

(2,908)

 

(1,299)

 

(469)

Revenue from non-hotel property

 

(2,843)

 

(2,880)

 

(2,012)

 

(2,127)

 

(2,043)

 

(2,503)

Same Store Hotels Total Revenue

 

$306,328

 

$355,155

 

$350,712

 

$299,899

 

$309,985

 

$363,746

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)

 

$106,749

 

$141,244

 

$132,161

 

$101,738

 

$109,793

 

$151,680

AHEBITDA from acquisitions

 

-

 

(13)

 

(790)

 

(2,953)

 

(6,997)

 

(10,388)

AHEBITDA from dispositions

 

(329)

 

(1,471)

 

(1,315)

 

(935)

 

(177)

 

(165)

AHEBITDA from non-hotel property (2)

 

796

 

(222)

 

-

 

-

 

-

 

-

Same Store Hotels AHEBITDA

 

$107,216

 

$139,538

 

$130,056

 

$97,850

 

$102,619

 

$141,127

___________________________

(1)

Represents the Company's actual Adjusted Hotel EBITDA which excludes Adjusted EBITDAre from the non-hotel property starting in the second half of 2023, subsequent to its lease to a third-party hotel operator for all hotel operations.

(2)

Represents Adjusted Hotel EBITDA from the non-hotel property in the first half of 2023, prior to its lease to a third-party hotel operator for all hotel operations.

 

Note: Same Store Hotels is defined as the 216 hotels owned and held for use by the Company as of January 1, 2023, and during the entirety of the periods being compared, and excludes the non-hotel property. This information has not been audited.

 

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

Apple Hospitality REIT, Inc.
Reconciliation of Net Income 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 as well as Adjusted EBITDAre from the non-hotel property 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 it 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 to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA on a quarterly basis for 2023 and 2024:

 

 

2023

 

2024

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

Net income

 

$32,923

 

$65,289

 

$58,512

 

$20,765

 

$54,050

 

$73,931

Depreciation and amortization

 

45,906

 

45,994

 

45,498

 

45,844

 

46,823

 

47,715

Amortization of favorable and unfavorable operating leases, net

 

97

 

85

 

99

 

102

 

102

 

102

Interest and other expense, net

 

16,004

 

17,499

 

17,470

 

17,884

 

17,309

 

19,370

Income tax expense

 

320

 

241

 

313

 

261

 

256

 

214

EBITDA

 

95,250

 

129,108

 

121,892

 

84,856

 

118,540

 

141,332

Gain on sale of real estate

 

-

 

-

 

-

 

-

 

(17,766)

 

(449)

Loss on impairment of depreciable real estate assets

 

-

 

-

 

-

 

5,644

 

-

 

-

EBITDAre

 

95,250

 

129,108

 

121,892

 

90,500

 

100,774

 

140,883

Non-cash straight-line operating ground lease expense

 

38

 

36

 

35

 

36

 

36

 

33

Adjusted EBITDAre

 

95,288

 

129,144

 

121,927

 

90,536

 

100,810

 

140,916

General and administrative expense

 

11,461

 

12,100

 

11,079

 

12,761

 

10,584

 

11,065

Adjusted EBITDAre from non-hotel property (1)

 

-

 

-

 

(845)

 

(1,559)

 

(1,601)

 

(301)

Adjusted Hotel EBITDA

 

$106,749

 

$141,244

 

$132,161

 

$101,738

 

$109,793

 

$151,680

(1)

Includes results of the non-hotel property subsequent to its lease to a third-party hotel operator for all hotel operations. This property's Adjusted EBITDAre results are not included in Adjusted Hotel EBITDA starting in the second half of 2023.

Apple Hospitality REIT, Inc.
Reconciliation of Net Income 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 to FFO and MFFO for the three and six months ended June 30, 2024 and 2023:

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2024

 

2023

 

2024

 

2023

Net income

 

$73,931

 

$65,289

 

$127,981

 

$98,212

Depreciation of real estate owned

 

46,952

 

45,229

 

93,011

 

90,371

Gain on sale of real estate

 

(449)

 

-

 

(18,215)

 

-

Funds from operations

 

120,434

 

110,518

 

202,777

 

188,583

Amortization of finance ground lease assets

 

760

 

760

 

1,519

 

1,519

Amortization of favorable and unfavorable operating leases, net

 

102

 

85

 

204

 

182

Non-cash straight-line operating ground lease expense

 

33

 

36

 

69

 

74

Modified funds from operations

 

$121,329

 

$111,399

 

$204,569

 

$190,358

Apple Hospitality REIT, Inc.
2024 Guidance Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA and Comparable Hotels Adjusted Hotel EBITDA
(Unaudited)
(in thousands)

The guidance of net income, EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA and Comparable Hotels Adjusted Hotel EBITDA (and all other guidance given) are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although the Company believes the expectations reflected in the forecasts are based upon reasonable assumptions, there can be no assurance that the expectations will be achieved or that the results will not be materially different. Risks that may affect these assumptions and forecasts include, but are not limited to, the following: changes in political, economic, competitive and specific market conditions; the amount and timing of announced or future acquisitions and dispositions of hotel properties; the level of capital expenditures may change significantly, which will directly affect the level of depreciation expense, interest expense and net income; the amount and timing of debt repayments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving the Company's common stock may change based on market conditions; and other risks and uncertainties associated with the Company's business described herein and in filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

The following table reconciles the Company’s GAAP net income guidance to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA and Comparable Hotels Adjusted Hotel EBITDA guidance for the year ending December 31, 2024:

 

Year Ending December 31, 2024

 

Low-End

 

High-End

Net income

$202,232

 

$224,632

Depreciation and amortization

190,000

 

187,000

Amortization of favorable and unfavorable leases, net

408

 

408

Interest and other expense, net

81,000

 

79,000

Income tax expense

700

 

1,100

EBITDA

$474,340

 

$492,140

Gain on sale of real estate

(18,215)

 

(18,215)

EBITDAre

$456,125

 

$473,925

Non-cash straight-line operating ground lease expense

135

 

135

Adjusted EBITDAre

$456,260

 

$474,060

General and administrative expense

37,500

 

42,500

AEBITDAre from non-hotel property (1)

(500)

 

(2,000)

Adjusted Hotel EBITDA

$493,260

 

$514,560

AHEBITDA from acquisitions prior to ownership (2)

1,882

 

1,882

AHEBITDA from dispositions

(342)

 

(342)

Comparable Hotels Adjusted Hotel EBITDA

$494,800

 

$516,100

___________________________

(1)

Represents Adjusted EBITDAre from the non-hotel property.

(2)

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.

 

Apple Hospitality REIT, Inc.

Debt Summary

(Unaudited)

($ in thousands)

June 30, 2024

 

 

 

July 1 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Market

 

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

Total

 

 

Value

 

Total debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maturities

 

$

109,050

 

 

$

295,140

 

 

$

243,649

 

 

$

278,602

 

 

$

334,066

 

 

$

281,948

 

 

$

1,542,455

 

 

$

1,501,746

 

Average interest rates (1)

 

 

5.0

%

 

 

5.2

%

 

 

5.4

%

 

 

5.3

%

 

 

4.7

%

 

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maturities (2)

 

$

85,000

 

 

$

225,000

 

 

$

169,000

 

 

$

275,000

 

 

$

300,000

 

 

$

85,000

 

 

$

1,139,000

 

 

$

1,137,042

 

Average interest rates (1)

 

 

5.3

%

 

 

5.6

%

 

 

5.9

%

 

 

5.9

%

 

 

5.2

%

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maturities

 

$

24,050

 

 

$

70,140

 

 

$

74,649

 

 

$

3,602

 

 

$

34,066

 

 

$

196,948

 

 

$

403,455

 

 

$

364,704

 

Average interest rates

 

 

4.1

%

 

 

4.0

%

 

 

4.0

%

 

 

4.1

%

 

 

4.1

%

 

 

4.1

%

 

 

 

 

 

 

___________________________

(1)

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

(2)

On July 17, 2024, the Company amended its unsecured $85 million term loan facility, which increased the amount of the term loan facility to $130 million, with the additional $45 million funded at closing; extended the maturity date to July 25, 2026; and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month SOFR plus a 0.10% SOFR spread adjustment plus a margin ranging from 1.35% to 2.20%, depending on the Company's leverage ratio, as calculated under the terms of the amended credit agreement. Subject to certain conditions, including covenant compliance and additional fees, the maturity date of the $130 million term loan facility may be extended by the Company to July 25, 2027.

 

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, 2024.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Market

Three Months Ended June 30

(Unaudited)

 

Top 20 Markets

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Top 20 Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Diego, CA

7

 

78.5%

79.0%

(0.6%)

 

$192.60

$192.44

0.1%

 

$151.22

$152.04

(0.5%)

 

5.1%

Los Angeles, CA

8

 

89.6%

86.7%

3.3%

 

$186.89

$191.75

(2.5%)

 

$167.54

$166.16

0.8%

 

4.8%

Washington, DC

5

 

85.8%

85.2%

0.7%

 

$210.86

$202.84

4.0%

 

$180.83

$172.81

4.6%

 

4.5%

Phoenix, AZ

10

 

81.6%

77.6%

5.2%

 

$148.97

$138.04

7.9%

 

$121.58

$107.17

13.4%

 

4.3%

Omaha, NE

4

 

79.9%

77.8%

2.7%

 

$201.63

$201.83

(0.1%)

 

$161.00

$157.10

2.5%

 

3.4%

Seattle, WA

4

 

84.4%

85.3%

(1.1%)

 

$206.87

$201.33

2.8%

 

$174.60

$171.67

1.7%

 

3.4%

Fort Worth/Arlington, TX

6

 

88.5%

82.4%

7.4%

 

$161.41

$159.27

1.3%

 

$142.93

$131.21

8.9%

 

3.1%

Orange County, CA

6

 

80.5%

81.3%

(1.0%)

 

$164.78

$167.62

(1.7%)

 

$132.66

$136.30

(2.7%)

 

3.0%

Salt Lake City/Ogden, UT

5

 

80.4%

79.0%

1.8%

 

$163.31

$154.83

5.5%

 

$131.29

$122.38

7.3%

 

3.0%

Nashville, TN

5

 

86.3%

83.6%

3.2%

 

$171.66

$181.19

(5.3%)

 

$148.14

$151.40

(2.2%)

 

2.9%

Chicago, IL

7

 

76.1%

70.7%

7.6%

 

$146.25

$146.35

(0.1%)

 

$111.29

$103.52

7.5%

 

2.9%

Alaska

2

 

89.4%

83.9%

6.6%

 

$285.13

$288.47

(1.2%)

 

$255.01

$242.14

5.3%

 

2.7%

Richmond/Petersburg, VA

3

 

75.6%

72.3%

4.6%

 

$186.25

$185.32

0.5%

 

$140.89

$133.90

5.2%

 

2.5%

Portland, ME

3

 

83.2%

81.0%

2.7%

 

$198.64

$201.10

(1.2%)

 

$165.36

$162.88

1.5%

 

2.4%

Norfolk/Virginia Beach, VA

4

 

84.4%

83.0%

1.7%

 

$187.53

$187.95

(0.2%)

 

$158.24

$155.97

1.5%

 

2.2%

Melbourne, FL

3

 

85.9%

82.2%

4.5%

 

$201.63

$192.48

4.8%

 

$173.15

$158.28

9.4%

 

2.0%

North Carolina East

4

 

80.4%

82.4%

(2.4%)

 

$165.24

$167.08

(1.1%)

 

$132.83

$137.75

(3.6%)

 

2.0%

Louisville, KY

1

 

83.5%

80.2%

4.1%

 

$239.50

$218.96

9.4%

 

$200.00

$175.58

13.9%

 

1.6%

Oklahoma City, OK

4

 

80.1%

79.9%

0.3%

 

$145.56

$147.64

(1.4%)

 

$116.61

$117.94

(1.1%)

 

1.6%

Houston, TX

6

 

79.2%

69.8%

13.5%

 

$120.65

$117.87

2.4%

 

$95.51

$82.29

16.1%

 

1.5%

Top 20 Markets

97

 

82.1%

79.6%

3.1%

 

$176.43

$175.21

0.7%

 

$144.92

$139.42

3.9%

 

58.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Markets

127

 

77.7%

76.8%

1.2%

 

$149.89

$150.32

(0.3%)

 

$116.40

$115.44

0.8%

 

41.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

79.8%

78.1%

2.2%

 

$163.01

$162.51

0.3%

 

$130.09

$126.97

2.5%

 

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

Six Months Ended June 30

(Unaudited)

 

Top 20 Markets

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

Top 20 Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix, AZ

10

 

84.8%

83.6%

1.4%

 

$178.91

$182.85

(2.2%)

 

$151.78

$152.80

(0.7%)

 

7.3%

San Diego, CA

7

 

76.4%

76.6%

(0.3%)

 

$185.36

$183.36

1.1%

 

$141.53

$140.37

0.8%

 

5.2%

Los Angeles, CA

8

 

84.8%

83.5%

1.6%

 

$182.17

$185.23

(1.7%)

 

$154.39

$154.60

(0.1%)

 

4.9%

Washington, DC

5

 

79.5%

77.4%

2.7%

 

$194.31

$186.06

4.4%

 

$154.55

$144.06

7.3%

 

3.9%

Orange County, CA

6

 

77.8%

77.4%

0.5%

 

$165.55

$167.66

(1.3%)

 

$128.80

$129.72

(0.7%)

 

3.3%

Fort Worth/Arlington, TX

6

 

84.7%

82.2%

3.0%

 

$160.16

$160.00

0.1%

 

$135.69

$131.49

3.2%

 

3.3%

Salt Lake City/Ogden, UT

5

 

78.9%

78.5%

0.5%

 

$157.32

$155.99

0.9%

 

$124.16

$122.50

1.4%

 

3.2%

Seattle, WA

4

 

81.2%

80.4%

1.0%

 

$190.30

$184.78

3.0%

 

$154.45

$148.64

3.9%

 

3.1%

Nashville, TN

5

 

80.9%

79.7%

1.5%

 

$160.06

$168.48

(5.0%)

 

$129.52

$134.24

(3.5%)

 

2.7%

Richmond/Petersburg, VA

3

 

73.7%

70.1%

5.1%

 

$187.86

$185.38

1.3%

 

$138.40

$129.97

6.5%

 

2.6%

Melbourne, FL

3

 

86.3%

86.9%

(0.7%)

 

$213.16

$198.60

7.3%

 

$183.87

$172.61

6.5%

 

2.6%

Omaha, NE

4

 

69.9%

71.1%

(1.7%)

 

$171.65

$166.78

2.9%

 

$120.00

$118.51

1.3%

 

2.5%

Alaska

2

 

88.8%

81.1%

9.5%

 

$241.98

$237.89

1.7%

 

$214.83

$192.88

11.4%

 

2.3%

Miami, FL

3

 

89.4%

89.0%

0.4%

 

$172.20

$174.48

(1.3%)

 

$153.90

$155.26

(0.9%)

 

1.8%

Chicago, IL

7

 

66.5%

64.2%

3.6%

 

$135.39

$135.43

0.0%

 

$89.97

$86.99

3.4%

 

1.8%

Las Vegas, NV

1

 

74.9%

71.1%

5.3%

 

$211.73

$191.82

10.4%

 

$158.60

$136.41

16.3%

 

1.7%

Norfolk/Virginia Beach, VA

4

 

74.9%

75.3%

(0.5%)

 

$160.04

$159.35

0.4%

 

$119.82

$119.95

(0.1%)

 

1.6%

Portland, ME

3

 

73.7%

67.4%

9.3%

 

$166.05

$176.34

(5.8%)

 

$122.39

$118.85

3.0%

 

1.6%

Houston, TX

6

 

74.4%

68.4%

8.8%

 

$121.14

$116.98

3.6%

 

$90.08

$80.01

12.6%

 

1.6%

North Carolina East

4

 

72.9%

76.1%

(4.2%)

 

$145.72

$146.38

(0.5%)

 

$106.24

$111.40

(4.6%)

 

1.6%

Top 20 Markets

96

 

78.3%

76.8%

2.0%

 

$171.84

$171.12

0.4%

 

$134.56

$131.33

2.5%

 

58.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Markets

128

 

73.8%

73.7%

0.1%

 

$146.06

$146.40

(0.2%)

 

$107.76

$107.87

(0.1%)

 

41.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

76.0%

75.2%

1.1%

 

$158.83

$158.53

0.2%

 

$120.63

$119.15

1.2%

 

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 Region

Three Months Ended June 30

(Unaudited)

 

Region

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

STR Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East North Central

17

 

73.7%

69.7%

5.7%

 

$153.12

$149.85

2.2%

 

$112.83

$104.51

8.0%

 

6.4%

East South Central

27

 

81.6%

80.5%

1.4%

 

$156.63

$157.65

(0.6%)

 

$127.87

$126.98

0.7%

 

10.5%

Middle Atlantic

12

 

80.4%

78.2%

2.8%

 

$163.27

$162.43

0.5%

 

$131.27

$127.07

3.3%

 

5.0%

Mountain

25

 

79.8%

77.4%

3.1%

 

$155.96

$149.09

4.6%

 

$124.41

$115.36

7.8%

 

12.0%

New England

6

 

79.1%

77.3%

2.3%

 

$189.32

$188.89

0.2%

 

$149.67

$145.99

2.5%

 

3.3%

Pacific

33

 

83.0%

82.2%

1.0%

 

$190.19

$192.14

(1.0%)

 

$157.90

$157.94

0.0%

 

21.4%

South Atlantic

53

 

80.1%

80.0%

0.1%

 

$164.99

$165.16

(0.1%)

 

$132.19

$132.14

0.0%

 

23.6%

West North Central

17

 

75.3%

74.5%

1.1%

 

$162.83

$161.59

0.8%

 

$122.56

$120.31

1.9%

 

6.9%

West South Central

34

 

80.2%

76.3%

5.1%

 

$138.35

$138.75

(0.3%)

 

$111.02

$105.84

4.9%

 

10.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

79.8%

78.1%

2.2%

 

$163.01

$162.51

0.3%

 

$130.09

$126.97

2.5%

 

100.0%

Note: Region categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Region

Six Months Ended June 30

(Unaudited)

 

Region

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

STR Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East North Central

17

 

65.4%

63.5%

3.0%

 

$142.06

$139.70

1.7%

 

$92.90

$88.67

4.8%

 

4.5%

East South Central

27

 

77.9%

77.7%

0.3%

 

$149.28

$149.80

(0.3%)

 

$116.29

$116.43

(0.1%)

 

10.2%

Middle Atlantic

12

 

72.2%

71.8%

0.6%

 

$152.33

$149.75

1.7%

 

$110.06

$107.49

2.4%

 

4.1%

Mountain

25

 

79.6%

78.9%

0.9%

 

$167.75

$166.82

0.6%

 

$133.56

$131.55

1.5%

 

15.9%

New England

6

 

70.7%

66.3%

6.6%

 

$164.31

$170.26

(3.5%)

 

$116.19

$112.88

2.9%

 

2.4%

Pacific

33

 

79.7%

78.6%

1.4%

 

$181.96

$182.62

(0.4%)

 

$145.11

$143.61

1.0%

 

21.1%

South Atlantic

53

 

77.7%

78.0%

(0.4%)

 

$162.89

$162.20

0.4%

 

$126.50

$126.47

0.0%

 

24.8%

West North Central

17

 

67.5%

68.7%

(1.7%)

 

$148.63

$146.12

1.7%

 

$100.35

$100.31

0.0%

 

5.3%

West South Central

34

 

77.0%

74.6%

3.2%

 

$137.28

$137.76

(0.3%)

 

$105.77

$102.77

2.9%

 

11.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

76.0%

75.2%

1.1%

 

$158.83

$158.53

0.2%

 

$120.63

$119.15

1.2%

 

100.0%

Note: Region categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Three Months Ended June 30

(Unaudited)

 

Chain Scale/Brand

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AC Hotels

4

 

86.2%

82.7%

4.2%

 

$251.88

$245.89

2.4%

 

$217.04

$203.45

6.7%

 

5.7%

Aloft

1

 

71.1%

79.5%

(10.6%)

 

$189.73

$176.47

7.5%

 

$134.92

$140.34

(3.9%)

 

0.4%

Courtyard

35

 

78.1%

77.4%

0.9%

 

$171.05

$168.86

1.3%

 

$133.51

$130.72

2.1%

 

19.1%

Hilton Garden Inn

40

 

77.6%

75.3%

3.1%

 

$155.09

$157.73

(1.7%)

 

$120.34

$118.74

1.3%

 

16.5%

Homewood Suites

29

 

85.7%

83.8%

2.3%

 

$156.00

$155.00

0.6%

 

$133.76

$129.82

3.0%

 

10.3%

Hyatt House

2

 

76.9%

77.7%

(1.0%)

 

$159.94

$154.97

3.2%

 

$122.97

$120.36

2.2%

 

0.9%

Hyatt Place

3

 

79.3%

75.9%

4.5%

 

$144.63

$144.70

0.0%

 

$114.72

$109.76

4.5%

 

0.9%

Residence Inn

30

 

82.6%

80.7%

2.4%

 

$167.69

$165.90

1.1%

 

$138.54

$133.92

3.4%

 

13.9%

SpringHill Suites

9

 

77.7%

76.3%

1.8%

 

$159.85

$153.24

4.3%

 

$124.22

$116.98

6.2%

 

4.4%

Upscale Total

153

 

80.2%

78.5%

2.2%

 

$165.31

$164.15

0.7%

 

$132.56

$128.92

2.8%

 

72.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Midscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairfield

10

 

74.2%

72.9%

1.8%

 

$128.37

$130.67

(1.8%)

 

$95.24

$95.25

0.0%

 

2.2%

Hampton

36

 

78.5%

76.5%

2.6%

 

$159.81

$160.59

(0.5%)

 

$125.41

$122.89

2.1%

 

14.1%

Home2 Suites

10

 

85.1%

86.2%

(1.3%)

 

$169.92

$172.32

(1.4%)

 

$144.61

$148.56

(2.7%)

 

4.6%

TownePlace Suites

9

 

82.1%

81.9%

0.2%

 

$128.59

$128.23

0.3%

 

$105.56

$104.99

0.5%

 

2.5%

Upper Midscale Total

65

 

79.2%

78.0%

1.5%

 

$153.23

$154.35

(0.7%)

 

$121.34

$120.33

0.8%

 

23.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Embassy Suites

4

 

81.0%

80.9%

0.1%

 

$217.23

$217.24

0.0%

 

$176.05

$175.67

0.2%

 

2.7%

Marriott

2

 

74.2%

64.6%

14.9%

 

$165.47

$168.92

(2.0%)

 

$122.78

$109.19

12.4%

 

1.8%

Upper Upscale Total

6

 

77.4%

72.0%

7.5%

 

$190.72

$193.40

(1.4%)

 

$147.59

$139.16

6.1%

 

4.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

79.8%

78.1%

2.2%

 

$163.01

$162.51

0.3%

 

$130.09

$126.97

2.5%

 

100.0%

Note: Chain scale categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Six Months Ended June 30

(Unaudited)

 

Chain Scale/Brand

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AC Hotels

4

 

78.2%

75.1%

4.1%

 

$225.09

$219.16

2.7%

 

$175.95

$164.65

6.9%

 

4.7%

Aloft

1

 

64.4%

63.1%

2.1%

 

$154.07

$155.18

(0.7%)

 

$99.26

$97.95

1.3%

 

0.3%

Courtyard

35

 

73.2%

72.9%

0.4%

 

$163.54

$161.22

1.4%

 

$119.70

$117.47

1.9%

 

18.1%

Hilton Garden Inn

40

 

72.7%

72.3%

0.6%

 

$149.97

$152.66

(1.8%)

 

$108.98

$110.40

(1.3%)

 

15.6%

Homewood Suites

29

 

82.6%

82.3%

0.4%

 

$155.64

$153.89

1.1%

 

$128.50

$126.60

1.5%

 

11.0%

Hyatt House

2

 

80.3%

79.5%

1.0%

 

$166.53

$171.94

(3.1%)

 

$133.75

$136.73

(2.2%)

 

1.2%

Hyatt Place

3

 

83.2%

80.1%

3.9%

 

$153.98

$158.96

(3.1%)

 

$128.19

$127.26

0.7%

 

1.4%

Residence Inn

30

 

78.7%

77.2%

1.9%

 

$164.11

$162.48

1.0%

 

$129.14

$125.38

3.0%

 

14.2%

SpringHill Suites

9

 

75.6%

74.4%

1.6%

 

$161.80

$155.78

3.9%

 

$122.36

$115.95

5.5%

 

5.0%

Upscale Total

153

 

76.1%

75.3%

1.1%

 

$160.55

$159.58

0.6%

 

$122.19

$120.23

1.6%

 

71.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Midscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairfield

10

 

71.4%

71.1%

0.4%

 

$129.52

$132.65

(2.4%)

 

$92.51

$94.32

(1.9%)

 

2.4%

Hampton

36

 

74.1%

73.2%

1.2%

 

$156.95

$159.23

(1.4%)

 

$116.35

$116.49

(0.1%)

 

14.0%

Home2 Suites

10

 

82.4%

84.7%

(2.7%)

 

$163.83

$163.29

0.3%

 

$135.07

$138.36

(2.4%)

 

4.8%

TownePlace Suites

9

 

80.2%

79.4%

1.0%

 

$126.03

$125.45

0.5%

 

$101.08

$99.67

1.4%

 

2.8%

Upper Midscale Total

65

 

75.6%

75.2%

0.5%

 

$150.38

$152.03

(1.1%)

 

$113.68

$114.34

(0.6%)

 

24.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Embassy Suites

4

 

81.0%

81.9%

(1.1%)

 

$207.42

$204.56

1.4%

 

$168.08

$167.61

0.3%

 

2.6%

Marriott

2

 

71.1%

62.9%

13.0%

 

$168.59

$169.39

(0.5%)

 

$119.81

$106.50

12.5%

 

1.9%

Upper Upscale Total

6

 

75.6%

71.5%

5.7%

 

$187.66

$187.56

0.1%

 

$141.94

$134.04

5.9%

 

4.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

76.0%

75.2%

1.1%

 

$158.83

$158.53

0.2%

 

$120.63

$119.15

1.2%

 

100.0%

Note: Chain scale categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Three Months Ended June 30

(Unaudited)

 

Location

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

Q2 2023

% Change

 

Q2 2024

STR Location

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airport

18

 

82.7%

80.6%

2.6%

 

$146.42

$144.87

1.1%

 

$121.08

$116.81

3.7%

 

6.1%

Interstate

4

 

79.8%

74.4%

7.3%

 

$120.09

$121.95

(1.5%)

 

$95.82

$90.76

5.6%

 

0.9%

Resort

11

 

77.0%

77.9%

(1.2%)

 

$175.42

$173.89

0.9%

 

$135.04

$135.53

(0.4%)

 

5.4%

Small Metro/Town

9

 

86.6%

81.5%

6.3%

 

$142.21

$131.51

8.1%

 

$123.21

$107.12

15.0%

 

3.4%

Suburban

127

 

79.8%

78.0%

2.3%

 

$154.46

$154.59

(0.1%)

 

$123.26

$120.52

2.3%

 

48.2%

Urban

55

 

78.7%

77.6%

1.4%

 

$187.07

$186.63

0.2%

 

$147.26

$144.81

1.7%

 

36.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

79.8%

78.1%

2.2%

 

$163.01

$162.51

0.3%

 

$130.09

$126.97

2.5%

 

100.0%

Note: Location categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Six Months Ended June 30

(Unaudited)

 

Location

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted
Hotel EBITDA

 

# of Hotels

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

YTD 2023

% Change

 

YTD 2024

STR Location

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airport

18

 

81.4%

81.1%

0.4%

 

$149.75

$149.92

(0.1%)

 

$121.90

$121.65

0.2%

 

7.4%

Interstate

4

 

74.3%

69.8%

6.4%

 

$119.88

$118.60

1.1%

 

$89.10

$82.80

7.6%

 

0.9%

Resort

11

 

76.1%

77.5%

(1.8%)

 

$177.40

$175.76

0.9%

 

$135.00

$136.29

(0.9%)

 

6.3%

Small Metro/Town

9

 

85.6%

81.7%

4.8%

 

$154.16

$151.75

1.6%

 

$132.01

$123.97

6.5%

 

4.5%

Suburban

127

 

75.4%

74.9%

0.7%

 

$151.00

$150.43

0.4%

 

$113.86

$112.63

1.1%

 

47.3%

Urban

55

 

74.4%

73.1%

1.8%

 

$175.86

$176.52

(0.4%)

 

$130.78

$129.03

1.4%

 

33.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

224

 

76.0%

75.2%

1.1%

 

$158.83

$158.53

0.2%

 

$120.63

$119.15

1.2%

 

100.0%

Note: Location categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Kelly Clarke, Vice President, Investor Relations

804-727-6321

kclarke@applereit.com

Source: Apple Hospitality REIT, Inc.

FAQ

What was Apple Hospitality REIT's net income for Q2 2024?

Apple Hospitality REIT reported a net income of $73.9 million for Q2 2024, a 13.2% increase from Q2 2023.

What is the EPS for Apple Hospitality REIT in Q2 2024?

The EPS for Apple Hospitality REIT in Q2 2024 was $0.31, up 6.9% from Q2 2023.

How much did Apple Hospitality REIT repurchase in shares?

Apple Hospitality REIT repurchased 1.6 million common shares for an aggregate price of $23.1 million.

What was the change in Comparable Hotels Adjusted Hotel EBITDA Margin?

Comparable Hotels Adjusted Hotel EBITDA Margin decreased by 50 basis points.

What is the updated 2024 guidance for Apple Hospitality REIT?

The updated 2024 guidance includes decreased Net Income by $6 million and Adjusted EBITDAre by $7 million, with a slight increase in Comparable Hotels Adjusted Hotel EBITDA Margin.

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Apple Hospitality REIT, Inc.

NYSE:APLE

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APLE Latest News

Dec 20, 2024
Apple Hospitality REIT Publishes Annual Corporate Responsibility Report
Dec 19, 2024
Apple Hospitality REIT Announces Monthly Distribution and Special Distribution for 2024
Dec 18, 2024
Apple Hospitality REIT Announces Dates for Fourth Quarter and Full Year 2024 Earnings Release and Conference Call
Nov 19, 2024
Apple Hospitality REIT Announces Monthly Distribution
Nov 4, 2024
Apple Hospitality REIT Reports Results of Operations for Third Quarter 2024

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