APLE Apple Hospitality REIT Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 06, 2024

 

 

APPLE HOSPITALITY REIT, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Virginia			001-37389	26-1379210
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
814 East Main Street
Richmond, Virginia				23219
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 804 344-8121

 

,

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares, no par value		APLE		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Apple Hospitality REIT, Inc. (which is referred to below as the “Company”) is filing this report in accordance with Items 2.02 and 9.01 of Form 8-K.

Item 2.02. Results of Operations and Financial Condition.

On May 6, 2024, the Company announced its financial results for the three months ended March 31, 2024. A copy of the Company’s press release is furnished as Exhibit 99.1 to this current report on Form 8-K.

The information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

99.1	Press Release dated May 6, 2024
104	Cover Page Interactive Data File (formatted as Inline XBRL).

 

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Apple Hospitality REIT, Inc.
By:		/s/ Justin G. Knight
		Justin G. Knight
		Chief Executive Officer
		May 6, 2024

 

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Apple Hospitality REIT Reports Results of Operations for First Quarter 2024

 

RICHMOND, Va. (May 6, 2024) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the first quarter ended March 31, 2024.

 

Apple Hospitality REIT, Inc.

Selected Statistical and Financial Data

As of and For the Three Months Ended March 31

(Unaudited) (in thousands, except statistical and per share amounts)(1)

 

	Three Months Ended
	March 31,
	2024		2023		% Change
Net income	$54,050		$32,923		64.2%
Net income per share	$0.22		$0.14		57.1%
Operating income	$71,615		$49,247		45.4%
Operating margin %	21.7%		15.8%		590 bps
Adjusted EBITDAre	$100,810		$95,288		5.8%
Comparable Hotels Adjusted Hotel EBITDA	$111,672		$115,399		(3.2%)
Comparable Hotels Adjusted Hotel EBITDA Margin %	33.7%		35.3%		(160 bps)
Modified funds from operations (MFFO)	$83,240		$78,959		5.4%
MFFO per share	$0.34		$0.34		0.0%
Average Daily Rate (ADR) (Actual)	$153.18		$152.01		0.8%
Occupancy (Actual)	72.0%		72.0%		0.0%
Revenue Per Available Room (RevPAR) (Actual)	$110.25		$109.46		0.7%
Comparable Hotels ADR	$154.10		$154.08		0.0%
Comparable Hotels Occupancy	72.1%		72.1%		0.0%
Comparable Hotels RevPAR	$111.09		$111.14		0.0%
Distributions paid	$70,156		$73,399		(4.4%)
Distributions paid per share	$0.29		$0.32		(9.4%)
Cash and cash equivalents	$4,942
Total debt outstanding	$1,506,734
Total debt outstanding, net of cash and cash equivalents	$1,501,792
Total debt outstanding, net of cash and cash equivalents, to total capitalization (2)	27.4%

 

Comparable Hotels is defined as the 224 hotels owned by the Company as of March 31, 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.

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Justin Knight, Chief Executive Officer of Apple Hospitality, commented, “In line with our expectations, Comparable Hotels RevPAR remained seasonally stable during the first quarter 2024, despite challenging year-over-year comparisons related to the Super Bowl and the unfavorable shift in timing of the Easter holiday, which was consistent with the industry overall and ahead of our blended chain scales for the quarter. Bolstered in part by the Easter holiday shift, and with growth in both weekday and weekend occupancies, preliminary results for our portfolio show Comparable Hotels RevPAR growth for the month of April 2024 above the high end of our full year guidance range. With continued strength in leisure demand, additional recovery in corporate demand and limited near-term supply growth, we believe operations will further strengthen throughout the year. Our revenue and asset management teams, together with our third-party operators, continue to work to maximize efficiencies and drive profitability across our hotels, achieving strong margins despite the current inflationary environment and ongoing wage pressures."

 

Mr. Knight continued, “During the quarter, we acquired the ideally located AC Hotel Washington DC Convention Center, which benefits from the market's wide variety of group, business transient and leisure demand generators. In addition to its ideal location, premium amenities and modern guest rooms, the asset generates additional revenue through its rooftop bar and restaurant with stunning views of the city and through its ground floor retail space and a large billboard leased to third parties. Our recent acquisitions have been meaningfully additive, increasing exposure to high growth markets, lifting overall portfolio performance and driving incremental profitability. We currently have two hotels under contract for purchase and continue to underwrite additional opportunities with a focus on pursuing transactions that complement our existing portfolio and maximize long-term shareholder value. Our investment strategy has proven resilient across economic cycles, yielding compelling total returns for our shareholders. We are confident that with our portfolio of high-quality, rooms-focused hotels broadly diversified across markets and demand generators, the effectiveness of our brands and management companies, the strength and flexibility of our balance sheet, and the depth of our corporate team, we are well positioned for continued outperformance."

 

Hotel Portfolio Overview

As of March 31, 2024, Apple Hospitality owned 224 hotels with an aggregate of 29,886 guest rooms located in 87 markets throughout 37 states and the District of Columbia.

 

Highlights

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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 first quarter of 2024 as compared to the first quarter of 2023 (in thousands, except statistical data):

																	% Change
	January		February		March				January		February		March				January		February		March
	2024		2024		2024		Q1 2024		2023		2023		2023		Q1 2023		2023		2023		2023		Q1 2023
ADR (Comparable Hotels)	$144.42		$154.71		$161.58		$154.10		$141.32		$156.48		$162.35		$154.08		2.2%		(1.1%)		(0.5%)		0.0%
Occupancy (Comparable Hotels)	64.6%		74.1%		77.8%		72.1%		63.8%		73.4%		79.3%		72.1%		1.3%		1.0%		(1.9%)		0.0%
RevPAR (Comparable Hotels)	$93.24		$114.61		$125.65		$111.09		$90.17		$114.86		$128.76		$111.14		3.4%		(0.2%)		(2.4%)		0.0%
Operating income (Actual)	$4,834		$34,344		$32,437		$71,615		$3,524		$15,275		$30,448		$49,247		37.2%		124.8%		6.5%		45.4%
Adjusted Hotel EBITDA (Actual) (1)	$23,736		$36,818		$49,239		$109,793		$21,655		$34,876		$50,218		$106,749		9.6%		5.6%		(1.9%)		2.9%
Comparable Hotels Adjusted Hotel   EBITDA (2)	$24,001		$37,284		$50,387		$111,672		$24,258		$37,510		$53,631		$115,399		(1.1%)		(0.6%)		(6.0%)		(3.2%)

 

Comparable Hotels is defined as the 224 hotels owned by the Company as of March 31, 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, 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 addition to room revenue, the hotel also benefits from revenue generated through its rooftop bar and restaurant as well as retail space and a large billboard leased to third parties.

 

Contracts for Potential Acquisitions

As previously announced, the Company currently has two additional hotels under contract for purchase for a combined total anticipated purchase price of approximately $177.5 million. The hotels currently under contract for purchase include:

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There are many conditions to closing on each of these hotels that have not yet been satisfied, and there can be no assurance that closings on these hotels will occur under the outstanding purchase contracts.

 

Dispositions

As previously announced, 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, resulting in a combined gain on the sale of approximately $17.8 million. A portion of the proceeds from the sale of the two hotels was used to complete a 1031 exchange with the acquisition of the AC Hotel Washington DC Convention Center, which resulted in the deferral of taxable gains of $15.1 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 three months ended March 31, 2024, the Company invested approximately $20 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 March 31, 2024, the Company had approximately $1.5 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.6%, cash on hand of approximately $5 million and availability under its revolving credit facility of approximately $519 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt as of March 31, 2024, was comprised of approximately $281 million in property-level debt secured by 15 hotels and approximately $1.2 billion outstanding under its unsecured credit facilities. The number of unencumbered hotels in the Company’s portfolio as of March 31, 2024, was 209. The Company’s total debt to total capitalization, net of cash and cash equivalents at March 31, 2024, was approximately 27%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of March 31, 2024, the Company’s weighted-average debt maturities were 3.4 years.

 

Capital Markets

Share Repurchase Program

The Company has in place a Share Repurchase Program that provides for share repurchases in open market transactions. No shares were repurchased during the three months ended March 31, 2024. As of March 31, 2024, the Company had approximately $335 million remaining under its Share Repurchase Program for the repurchase of shares.

 

ATM Program

In February 2024, the Company entered into an equity distribution agreement pursuant to which the Company may sell, from time to time, up to an aggregate of $500 million of its common shares under its ATM Program. As of March 31, 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 months ended March 31, 2024.

 

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Shareholder Distributions

During the three months ended March 31, 2024, the Company paid distributions totaling $0.29 per common share, including a special cash distribution of $0.05 per common share, that was paid on January 16, 2024, to shareholders of record as of December 29, 2023. Based on the Company’s common stock closing price of $14.68 on May 3, 2024, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 6.5%. 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 previously provided 2024 guidance, the Company is increasing Net Income at the midpoint by $16 million, maintaining Comparable Hotels RevPAR Change, increasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 20 bps at the midpoint, and increasing Adjusted EBITDAre by $9 million at the midpoint. As the Company’s operational results for the first quarter 2024 were in line with expectations at the previously provided midpoint, the increases are driven by the acquisition of the AC Hotel Washington DC Convention Center in March 2024. 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		$207 Million		$233 Million
Comparable Hotels RevPAR Change		2.0%		4.0%
Comparable Hotels Adjusted Hotel EBITDA Margin %		34.8%		35.8%
Adjusted EBITDAre		$461 Million		$483 Million
Capital expenditures		$75 Million		$85 Million

 

 

First 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, May 7, 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 May 7, 2024, through 11:59 p.m. Eastern Time on May 21, 2024. To access the replay, the domestic

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dial-in number is 844-512-2921, the international dial-in number is 412-317-6671, and the passcode is 13745140. 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 approximately 29,900 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 101 Marriott-branded hotels, 118 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

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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.

 

Contact:

Apple Hospitality REIT, Inc.

Kelly Clarke, Vice President, Investor Relations

804-727-6321

kclarke@applereit.com

 

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

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Apple Hospitality REIT, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

 

		March 31,		December 31,
		2024		2023
		(unaudited)
Assets
Investment in real estate, net of accumulated depreciation and amortization       of $1,709,669 and $1,662,942, respectively		$4,871,476		$4,777,374
Assets held for sale		-		15,283
Cash and cash equivalents		4,942		10,287
Restricted cash-furniture, fixtures and other escrows		29,638		33,331
Due from third-party managers, net		63,048		36,437
Other assets, net		63,394		64,586
Total Assets		$5,032,498		$4,937,298
Liabilities
Debt, net		$1,500,698		$1,371,494
Finance lease liabilities		111,837		111,892
Accounts payable and other liabilities		85,661		129,931
Total Liabilities		1,698,196		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 242,346,188 and 241,515,532 shares, respectively		4,805,504		4,794,804
Accumulated other comprehensive income		24,112		20,404
Distributions greater than net income		(1,495,314)		(1,491,227)
Total Shareholders' Equity		3,334,302		3,323,981
Total Liabilities and Shareholders' Equity		$5,032,498		$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 March 31, 2024.

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Apple Hospitality REIT, Inc.

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

(in thousands, except per share data)

 

		Three Months Ended
		March 31,
		2024				2023
Revenues:
Room		$	298,746			$	285,520
Food and beverage			15,062				12,949
Other			15,704				12,985
Total revenue			329,512				311,454
Expenses:
Hotel operating expense:
Operating			83,796				78,663
Hotel administrative			29,752				27,319
Sales and marketing			29,839				27,700
Utilities			11,519				11,698
Repair and maintenance			16,842				15,665
Franchise fees			14,754				13,644
Management fees			10,762				10,476
Total hotel operating expense			197,264				185,165
Property taxes, insurance and other			20,992				19,675
General and administrative			10,584				11,461
Depreciation and amortization			46,823				45,906
Total expense			275,663				262,207
Gain on sale of real estate			17,766				-
Operating income			71,615				49,247
Interest and other expense, net			(17,309	)			(16,004	)
Income before income taxes			54,306				33,243
Income tax expense			(256	)			(320	)
Net income		$	54,050			$	32,923
Other comprehensive income (loss):
Interest rate derivatives			3,708				(8,106	)
Comprehensive income		$	57,758			$	24,817
Basic and diluted net income per common share		$	0.22			$	0.14
Weighted average common shares outstanding - basic and diluted			242,408				229,398

 

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 March 31, 2024.

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Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics and Statistical Data

(Unaudited)

(in thousands, except statistical data)

 

		Three Months Ended
		March 31,
						% Change
		2024		2023		2023
Operating income (Actual)		$71,615		$49,247		45.4%
Operating margin % (Actual)		21.7%		15.8%		590 bps
Comparable Hotels Total Revenue		$331,580		$326,688		1.5%
Comparable Hotels Total Operating Expenses		$219,908		$211,289		4.1%
Comparable Hotels Adjusted Hotel EBITDA		$111,672		$115,399		(3.2%)
Comparable Hotels Adjusted Hotel EBITDA Margin %		33.7%		35.3%		(160 bps)
ADR (Comparable Hotels)		$154.10		$154.08		0.0%
Occupancy (Comparable Hotels)		72.1%		72.1%		0.0%
RevPAR (Comparable Hotels)		$111.09		$111.14		0.0%
ADR (Actual)		$153.18		$152.01		0.8%
Occupancy (Actual)		72.0%		72.0%		0.0%
RevPAR (Actual)		$110.25		$109.46		0.7%
Reconciliation to Actual Results
Total Revenue (Actual)		$329,512		$311,454
Revenue from acquisitions prior to ownership		4,775		19,786
Revenue from dispositions		(664)		(1,709)
Revenue from non-hotel property		(2,043)		(2,843)
Comparable Hotels Total Revenue		$331,580		$326,688
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$109,793		$106,749
AHEBITDA from acquisitions prior to ownership		1,882		8,320
AHEBITDA from dispositions		(3)		(466)
AHEBITDA from non-hotel property (2)		-		796
Comparable Hotels AHEBITDA		$111,672		$115,399

 

 

Note: Comparable Hotels is defined as the 224 hotels owned by the Company as of March 31, 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.

 

 

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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
Operating income (Actual)		$49,247		$83,029		$76,295		$38,910		$71,615
Operating margin % (Actual)		15.8%		23.0%		21.3%		12.5%		21.7%
Comparable Hotels Total Revenue		$326,688		$377,770		$372,451		$320,332		$331,580
Comparable Hotels Total Operating Expenses		211,289		228,285		233,522		214,534		219,908
Comparable Hotels Adjusted Hotel EBITDA		$115,399		$149,485		$138,929		$105,798		$111,672
Comparable Hotels Adjusted Hotel EBITDA Margin %		35.3%		39.6%		37.3%		33.0%		33.7%
ADR (Comparable Hotels)		$154.08		$162.41		$160.55		$151.53		$154.10
Occupancy (Comparable Hotels)		72.1%		78.1%		77.2%		69.7%		72.1%
RevPAR (Comparable Hotels)		$111.14		$126.89		$123.94		$105.69		$111.09
ADR (Actual)		$152.01		$160.98		$159.36		$149.88		$153.18
Occupancy (Actual)		72.0%		78.2%		77.1%		69.6%		72.0%
RevPAR (Actual)		$109.46		$125.96		$122.91		$104.27		$110.25
Reconciliation to Actual Results
Total Revenue (Actual)		$311,454		$361,630		$358,260		$312,456		$329,512
Revenue from acquisitions prior to ownership		19,786		21,825		18,999		12,245		4,775
Revenue from dispositions		(1,709)		(2,805)		(2,796)		(2,242)		(664)
Revenue from non-hotel property		(2,843)		(2,880)		(2,012)		(2,127)		(2,043)
Comparable Hotels Total Revenue		$326,688		$377,770		$372,451		$320,332		$331,580
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$106,749		$141,244		$132,161		$101,738		$109,793
AHEBITDA from acquisitions prior to ownership		8,320		9,725		7,978		4,842		1,882
AHEBITDA from dispositions		(466)		(1,262)		(1,210)		(782)		(3)
AHEBITDA from non-hotel property (2)		796		(222)		-		-		-
Comparable Hotels AHEBITDA		$115,399		$149,485		$138,929		$105,798		$111,672

 

 

Note: Comparable Hotels is defined as the 224 hotels owned by the Company as of March 31, 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
		March 31,
						% Change
		2024		2023		2023
Operating income (Actual)		$71,615		$49,247		45.4%
Operating margin % (Actual)		21.7%		15.8%		590 bps
Same Store Hotels Total Revenue		$310,620		$306,902		1.2%
Same Store Hotels Total Operating Expenses		207,827		199,823		4.0%
Same Store Hotels Adjusted Hotel EBITDA		$102,793		$107,079		(4.0%)
Same Store Hotels Adjusted Hotel EBITDA Margin %		33.1%		34.9%		(180 bps)
ADR (Same Store Hotels)		$151.86		$152.31		(0.3%)
Occupancy (Same Store Hotels)		71.9%		72.0%		(0.1%)
RevPAR (Same Store Hotels)		$109.23		$109.73		(0.5%)
ADR (Actual)		$153.18		$152.01		0.8%
Occupancy (Actual)		72.0%		72.0%		0.0%
RevPAR (Actual)		$110.25		$109.46		0.7%
Reconciliation to Actual Results
Total Revenue (Actual)		$329,512		$311,454
Revenue from acquisitions		(16,185)		-
Revenue from dispositions		(664)		(1,709)
Revenue from non-hotel property		(2,043)		(2,843)
Same Store Hotels Total Revenue		$310,620		$306,902
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$109,793		$106,749
AHEBITDA from acquisitions		(6,997)		-
AHEBITDA from dispositions		(3)		(466)
AHEBITDA from non-hotel property (2)		-		796
Same Store Hotels AHEBITDA		$102,793		$107,079

 

 

Note: Same Store Hotels is defined as the 217 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
Operating income (Actual)		$49,247		$83,029		$76,295		$38,910		$71,615
Operating margin % (Actual)		15.8%		23.0%		21.3%		12.5%		21.7%
Same Store Hotels Total Revenue		$306,902		$355,920		$351,343		$300,565		$310,620
Same Store Hotels Total Operating Expenses		199,823		216,173		221,182		202,562		207,827
Same Store Hotels Adjusted Hotel EBITDA		$107,079		$139,747		$130,161		$98,003		$102,793
Same Store Hotels Adjusted Hotel EBITDA Margin %		34.9%		39.3%		37.0%		32.6%		33.1%
ADR (Same Store Hotels)		$152.31		$160.79		$159.36		$149.56		$151.86
Occupancy (Same Store Hotels)		72.0%		78.2%		77.1%		69.7%		71.9%
RevPAR (Same Store Hotels)		$109.73		$125.69		$122.88		$104.19		$109.23
ADR (Actual)		$152.01		$160.98		$159.36		$149.88		$153.18
Occupancy (Actual)		72.0%		78.2%		77.1%		69.6%		72.0%
RevPAR (Actual)		$109.46		$125.96		$122.91		$104.27		$110.25
Reconciliation to Actual Results
Total Revenue (Actual)		$311,454		$361,630		$358,260		$312,456		$329,512
Revenue from acquisitions		-		(25)		(2,109)		(7,522)		(16,185)
Revenue from dispositions		(1,709)		(2,805)		(2,796)		(2,242)		(664)
Revenue from non-hotel property		(2,843)		(2,880)		(2,012)		(2,127)		(2,043)
Same Store Hotels Total Revenue		$306,902		$355,920		$351,343		$300,565		$310,620
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$106,749		$141,244		$132,161		$101,738		$109,793
AHEBITDA from acquisitions		-		(13)		(790)		(2,953)		(6,997)
AHEBITDA from dispositions		(466)		(1,262)		(1,210)		(782)		(3)
AHEBITDA from non-hotel property (2)		796		(222)		-		-		-
Same Store Hotels AHEBITDA		$107,079		$139,747		$130,161		$98,003		$102,793

 

 

Note: Same Store Hotels is defined as the 217 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
Net income		$32,923		$65,289		$58,512		$20,765		$54,050
Depreciation and amortization		45,906		45,994		45,498		45,844		46,823
Amortization of favorable and unfavorable operating leases, net		97		85		99		102		102
Interest and other expense, net		16,004		17,499		17,470		17,884		17,309
Income tax expense		320		241		313		261		256
EBITDA		95,250		129,108		121,892		84,856		118,540
Gain on sale of real estate		-		-		-		-		(17,766)
Loss on impairment of depreciable real estate assets		-		-		-		5,644		-
EBITDAre		95,250		129,108		121,892		90,500		100,774
Non-cash straight-line operating ground lease expense		38		36		35		36		36
Adjusted EBITDAre		95,288		129,144		121,927		90,536		100,810
General and administrative expense		11,461		12,100		11,079		12,761		10,584
Adjusted EBITDAre from non-hotel property (1)		-		-		(845)		(1,559)		(1,601)
Adjusted Hotel EBITDA		$106,749		$141,244		$132,161		$101,738		$109,793

---

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 months ended March 31, 2024 and 2023:

 

		Three Months Ended March 31,
		2024		2023
Net income		$54,050		$32,923
Depreciation of real estate owned		46,059		45,142
Gain on sale of real estate		(17,766)		-
Funds from operations		82,343		78,065
Amortization of finance ground lease assets		759		759
Amortization of favorable and unfavorable operating leases, net		102		97
Non-cash straight-line operating ground lease expense		36		38
Modified funds from operations		$83,240		$78,959

 

 

 

 

 

 

 

 

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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	$206,544		$232,944
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	$478,652		$500,452
(Gain) loss on sale of real estate	(17,766)		(17,766)
EBITDAre	$460,886		$482,686
Non-cash straight-line operating ground lease expense	135		135
Adjusted EBITDAre	$461,021		$482,821
General and administrative expense	37,500		42,500
AEBITDAre from non-hotel property (1)	(1,500)		(3,500)
Adjusted Hotel EBITDA	$497,021		$521,821
AHEBITDA from acquisitions prior to ownership (2)	1,882		1,882
AHEBITDA from dispositions	(3)		(3)
Comparable Hotels Adjusted Hotel EBITDA	$498,900		$523,700

 

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Apple Hospitality REIT, Inc.

Debt Summary

(Unaudited)

($ in thousands)

March 31, 2024

 

		April 1 -
		December 31,																												Fair Market
		2024				2025				2026				2027				2028				Thereafter				Total				Value
Total debt:
Maturities		$	111,329			$	295,140			$	205,649			$	278,602			$	334,066			$	281,948			$	1,506,734			$	1,465,979
Average interest rates (1)			4.8	%			5.1	%			5.4	%			5.3	%			4.7	%			3.9	%
Variable-rate debt:
Maturities		$	85,000			$	225,000			$	131,000			$	275,000			$	300,000			$	85,000			$	1,101,000			$	1,100,110
Average interest rates (1)			5.1	%			5.5	%			5.8	%			5.9	%			5.2	%			3.6	%
Fixed-rate debt:
Maturities		$	26,329			$	70,140			$	74,649			$	3,602			$	34,066			$	196,948			$	405,734			$	365,869
Average interest rates			4.1	%			4.0	%			4.0	%			4.1	%			4.1	%			4.1	%

 

 

Note: See further information on the Company’s indebtedness in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

 

 

 

 

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Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Market

Three Months Ended March 31

(Unaudited)

 

Top 20 Markets			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024
Top 20 Markets
Phoenix, AZ	10		88.1%	89.6%	(1.7%)		$206.66	$222.13	(7.0%)		$181.99	$198.94	(8.5%)		11.6%
San Diego, CA	7		74.2%	74.1%	0.1%		$177.69	$173.57	2.4%		$131.83	$128.58	2.5%		5.1%
Los Angeles, CA	8		79.9%	80.2%	(0.4%)		$176.86	$178.11	(0.7%)		$141.24	$142.91	(1.2%)		4.9%
Orange County, CA	6		75.1%	73.4%	2.3%		$166.37	$167.70	(0.8%)		$124.95	$123.06	1.5%		3.7%
Fort Worth/Arlington, TX	6		80.9%	82.0%	(1.3%)		$158.79	$160.73	(1.2%)		$128.46	$131.77	(2.5%)		3.6%
Salt Lake City/Ogden, UT	5		77.4%	78.0%	(0.8%)		$151.10	$157.17	(3.9%)		$117.02	$122.63	(4.6%)		3.4%
Melbourne, FL	3		86.6%	91.6%	(5.5%)		$224.58	$204.15	10.0%		$194.59	$187.09	4.0%		3.3%
Washington, DC	5		73.3%	69.6%	5.3%		$174.96	$165.28	5.9%		$128.28	$115.00	11.5%		3.2%
Richmond/Petersburg, VA	3		71.7%	67.9%	5.6%		$189.55	$185.44	2.2%		$135.90	$125.99	7.9%		2.9%
Seattle, WA	4		77.9%	75.6%	3.0%		$172.35	$165.90	3.9%		$134.29	$125.35	7.1%		2.8%
Miami, FL	3		92.9%	89.4%	3.9%		$190.61	$194.74	(2.1%)		$177.08	$174.02	1.8%		2.7%
Nashville, TN	5		75.5%	75.8%	(0.4%)		$146.81	$154.31	(4.9%)		$110.90	$116.90	(5.1%)		2.5%
Las Vegas, NV	1		76.1%	72.9%	4.4%		$238.08	$217.16	9.6%		$181.16	$158.21	14.5%		2.4%
Tucson, AZ	3		91.1%	90.6%	0.6%		$160.43	$146.17	9.8%		$146.09	$132.47	10.3%		2.3%
Fort Lauderdale, FL	2		87.9%	89.0%	(1.2%)		$193.30	$198.99	(2.9%)		$170.01	$177.06	(4.0%)		2.0%
Orlando, FL	3		81.9%	81.9%	0.0%		$147.70	$144.77	2.0%		$121.01	$118.52	2.1%		1.9%
Alaska	2		88.1%	78.2%	12.7%		$198.18	$182.98	8.3%		$174.65	$143.06	22.1%		1.8%
Houston, TX	6		69.6%	67.0%	3.9%		$121.70	$116.04	4.9%		$84.65	$77.71	8.9%		1.7%
Dallas, TX	5		67.0%	70.8%	(5.4%)		$141.42	$138.64	2.0%		$94.69	$98.20	(3.6%)		1.6%
Alabama North	4		74.1%	83.7%	(11.5%)		$151.05	$140.61	7.4%		$112.00	$117.63	(4.8%)		1.5%
Top 20 Markets	91		78.6%	78.3%	0.4%		$173.47	$172.45	0.6%		$136.33	$135.05	0.9%		64.9%
All Other Markets	133		66.9%	67.2%	(0.4%)		$136.00	$137.07	(0.8%)		$91.02	$92.14	(1.2%)		35.1%
Total Portfolio	224		72.1%	72.1%	0.0%		$154.10	$154.08	0.0%		$111.09	$111.14	0.0%		100.0%

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

 

 

 

 

 

 

 

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Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Region

Three Months Ended March 31

(Unaudited)

 

Region			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024
STR Region
East North Central	16		57.0%	57.1%	(0.2%)		$127.57	$127.16	0.3%		$72.71	$72.64	0.1%		1.9%
East South Central	27		74.2%	74.9%	(0.9%)		$141.20	$141.25	0.0%		$104.71	$105.76	(1.0%)		9.8%
Middle Atlantic	12		64.1%	65.3%	(1.8%)		$138.60	$134.38	3.1%		$88.85	$87.69	1.3%		2.9%
Mountain	25		79.5%	80.4%	(1.1%)		$179.58	$184.08	(2.4%)		$142.71	$147.91	(3.5%)		21.1%
New England	6		62.4%	55.2%	13.0%		$132.62	$143.88	(7.8%)		$82.72	$79.40	4.2%		1.1%
Pacific	33		76.5%	75.0%	2.0%		$173.02	$172.08	0.5%		$132.31	$129.11	2.5%		20.6%
South Atlantic	54		75.2%	75.8%	(0.8%)		$160.16	$158.63	1.0%		$120.39	$120.23	0.1%		26.9%
West North Central	17		59.8%	62.8%	(4.8%)		$130.74	$127.57	2.5%		$78.14	$80.10	(2.4%)		3.0%
West South Central	34		73.9%	72.9%	1.4%		$136.11	$136.71	(0.4%)		$100.52	$99.66	0.9%		12.7%
Total Portfolio	224		72.1%	72.1%	0.0%		$154.10	$154.08	0.0%		$111.09	$111.14	0.0%		100.0%

Note: Region categorization based on STR designation.

 

 

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Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Three Months Ended March 31

(Unaudited)

 

Chain Scale/Brand			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024
Upscale
AC Hotels	4		70.2%	67.4%	4.2%		$192.18	$185.99	3.3%		$134.86	$125.42	7.5%		3.2%
Aloft	1		57.7%	46.5%	24.1%		$110.16	$118.38	(6.9%)		$63.60	$55.09	15.4%		0.0%
Courtyard	35		68.3%	68.3%	0.0%		$154.96	$152.45	1.6%		$105.88	$104.06	1.7%		16.8%
Hilton Garden Inn	40		67.8%	69.3%	(2.2%)		$144.10	$147.08	(2.0%)		$97.63	$101.97	(4.3%)		14.3%
Homewood Suites	29		79.4%	80.8%	(1.7%)		$155.26	$152.72	1.7%		$123.25	$123.35	(0.1%)		12.0%
Hyatt House	2		83.7%	81.4%	2.8%		$172.59	$188.32	(8.4%)		$144.52	$153.28	(5.7%)		1.6%
Hyatt Place	3		87.2%	84.3%	3.4%		$162.49	$171.93	(5.5%)		$141.66	$144.96	(2.3%)		2.1%
Residence Inn	30		74.8%	73.6%	1.6%		$160.15	$158.68	0.9%		$119.75	$116.75	2.6%		14.6%
SpringHill Suites	10		73.5%	72.1%	1.9%		$161.34	$156.53	3.1%		$118.57	$112.87	5.1%		6.1%
Upscale Total	154		72.0%	72.1%	(0.1%)		$155.10	$154.42	0.4%		$111.72	$111.30	0.4%		70.7%
Upper Midscale
Fairfield	10		68.7%	69.3%	(0.9%)		$130.76	$134.75	(3.0%)		$89.78	$93.39	(3.9%)		2.8%
Hampton	36		69.8%	69.8%	0.0%		$153.74	$157.72	(2.5%)		$107.29	$110.03	(2.5%)		13.8%
Home2 Suites	10		79.8%	83.2%	(4.1%)		$157.34	$153.83	2.3%		$125.53	$128.04	(2.0%)		5.0%
TownePlace Suites	9		78.3%	77.0%	1.7%		$123.34	$122.47	0.7%		$96.60	$94.30	2.4%		3.1%
Upper Midscale Total	65		72.0%	72.4%	(0.6%)		$147.24	$149.51	(1.5%)		$106.02	$108.28	(2.1%)		24.7%
Upper Upscale
Embassy Suites	3		81.0%	83.0%	(2.4%)		$197.00	$192.07	2.6%		$159.62	$159.47	0.1%		2.6%
Marriott	2		67.9%	61.1%	11.1%		$172.00	$169.89	1.2%		$116.84	$103.77	12.6%		2.0%
Upper Upscale Total	5		73.8%	71.0%	3.9%		$184.37	$181.58	1.5%		$136.12	$128.87	5.6%		4.6%
Total Portfolio	224		72.1%	72.1%	0.0%		$154.10	$154.08	0.0%		$111.09	$111.14	0.0%		100.0%

Note: Chain scale categorization based on STR designation.

 

 

 

 

 

 

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Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Three Months Ended March 31

(Unaudited)

 

Location			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024	Q1 2023	% Change		Q1 2024
STR Location
Airport	18		80.1%	81.7%	(2.0%)		$153.20	$154.96	(1.1%)		$122.71	$126.54	(3.0%)		9.1%
Interstate	4		68.9%	65.2%	5.7%		$119.64	$114.73	4.3%		$82.39	$74.75	10.2%		1.0%
Resort	11		75.2%	77.1%	(2.5%)		$179.43	$177.68	1.0%		$134.95	$137.07	(1.5%)		7.4%
Small Metro/Town	9		84.6%	81.9%	3.3%		$166.40	$172.10	(3.3%)		$140.80	$141.01	(0.1%)		6.1%
Suburban	128		71.0%	71.7%	(1.0%)		$146.95	$145.73	0.8%		$104.35	$104.51	(0.2%)		46.2%
Urban	54		70.0%	68.5%	2.2%		$163.21	$164.95	(1.1%)		$114.24	$113.07	1.0%		30.2%
Total Portfolio	224		72.1%	72.1%	0.0%		$154.10	$154.08	0.0%		$111.09	$111.14	0.0%		100.0%

Note: Location categorization based on STR designation.

 

 

 

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v3.24.1.u1

Document And Entity Information	May 06, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 06, 2024
Entity Registrant Name	APPLE HOSPITALITY REIT, INC.
Entity Central Index Key	0001418121
Entity Emerging Growth Company	false
Entity File Number	001-37389
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	26-1379210
Entity Address, Address Line One	814 East Main Street
Entity Address, City or Town	Richmond
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23219
City Area Code	804
Local Phone Number	344-8121
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares, no par value
Trading Symbol	APLE
Security Exchange Name	NYSE
Former Address [Member]
Document Information [Line Items]
Entity Address, Address Line One

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