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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240804000719/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804-727-6321 kclarke@applereit.com
Apple Hospitality REIT (NYSE:APLE)
過去 株価チャート
から 10 2024 まで 11 2024
Apple Hospitality REIT (NYSE:APLE)
過去 株価チャート
から 11 2023 まで 11 2024
