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): November 04, 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 November 4, 2024, the Company announced its financial results for the three and nine months ended September 30, 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 November 4, 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
		November 4, 2024

 

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Apple Hospitality REIT Reports Results of Operations for Third Quarter 2024

 

RICHMOND, Va. (November 4, 2024) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the third quarter ended September 30, 2024.

 

Apple Hospitality REIT, Inc.

Selected Statistical and Financial Data

As of and For the Three and Nine Months Ended September 30

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

 

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024		2023		% Change		2024		2023		% Change
Net income	$56,266		$58,512		(3.8%)		$184,247		$156,724		17.6%
Net income per share	$0.23		$0.26		(11.5%)		$0.76		$0.68		11.8%
Operating income	$77,726		$76,295		1.9%		$242,856		$208,571		16.4%
Operating margin %	20.5%		21.3%		(80 bps)		22.1%		20.2%		190 bps
Adjusted EBITDAre	$128,900		$121,927		5.7%		$370,626		$346,359		7.0%
Comparable Hotels Adjusted Hotel EBITDA	$139,222		$138,806		0.3%		$402,226		$403,535		(0.3%)
Comparable Hotels Adjusted Hotel EBITDA Margin %	36.8%		37.4%		(60 bps)		36.7%		37.6%		(90 bps)
Modified funds from operations (MFFO)	$107,439		$104,139		3.2%		$312,008		$294,497		5.9%
MFFO per share	$0.45		$0.45		0.0%		$1.29		$1.29		0.0%
Average Daily Rate (ADR) (Actual)	$162.57		$159.36		2.0%		$159.78		$157.61		1.4%
Occupancy (Actual)	77.0%		77.1%		(0.1%)		76.3%		75.8%		0.7%
Revenue Per Available Room (RevPAR) (Actual)	$125.10		$122.91		1.8%		$121.84		$119.48		2.0%
Comparable Hotels ADR	$162.66		$160.78		1.2%		$160.19		$159.37		0.5%
Comparable Hotels Occupancy	77.0%		77.3%		(0.4%)		76.4%		75.9%		0.7%
Comparable Hotels RevPAR	$125.30		$124.25		0.8%		$122.32		$120.98		1.1%
Distributions paid	$57,680		$54,837		5.2%		$185,881		$183,119		1.5%
Distributions paid per share	$0.24		$0.24		0.0%		$0.77		$0.80		(3.8%)
Cash and cash equivalents	$6,147
Total debt outstanding	$1,507,014
Total debt outstanding, net of cash and cash equivalents	$1,500,867
Total debt outstanding, net of cash and cash equivalents, to total   capitalization (2)	29.6%

 

Comparable Hotels is defined as the 223 hotels owned and held for use by the Company as of September 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 and assets held for sale, 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, “With slow but steady improvement in business transient demand and ongoing strength in leisure travel, operating fundamentals remained strong across our portfolio during the quarter, with Comparable Hotels RevPAR growth of approximately 1% as compared to the third quarter of 2023. Based on preliminary results, occupancy for the month of October was approximately 80%, with continued improvement in ADR. We remain intently focused on maximizing the profitability of our hotels through strategic asset management and are pleased to report strong bottom-line performance for the quarter, bolstered by recent acquisitions, continued strength in ADR and moderating expense growth."

 

Mr. Knight continued, “Evolving market conditions over the past year have provided us with the opportunity to demonstrate our disciplined and strategic approach to capital allocation and portfolio management to drive earnings per share and maximize long-term value for our shareholders. Since the beginning of this year through October, we strategically acquired two hotels for $196 million, sold three hotels for $41 million, repurchased 2.4 million common shares for $35 million, and entered into contracts for the sale of an additional four hotels for a combined sales price of $31 million. Our recent activity highlights our ability to effectively allocate capital in the current environment while maintaining our balance sheet. 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 September 30, 2024, Apple Hospitality owned 224 hotels, including one hotel classified as held for sale, with an aggregate of 30,068 guest rooms located in 87 markets throughout 37 states and the District of Columbia.

 

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

																	% Change
	July		August		September				July		August		September				July		August		September
	2024		2024		2024		Q3 2024		2023		2023		2023		Q3 2023		2023		2023		2023		Q3 2023
ADR (Comparable Hotels)	$164.31		$160.37		$163.35		$162.66		$165.52		$157.38		$159.35		$160.78		(0.7%)		1.9%		2.5%		1.2%
Occupancy (Comparable Hotels)	77.6%		77.6%		75.9%		77.0%		77.6%		76.7%		77.6%		77.3%		0.0%		1.2%		(2.2%)		(0.4%)
RevPAR (Comparable Hotels)	$127.47		$124.38		$124.02		$125.30		$128.43		$120.65		$123.65		$124.25		(0.7%)		3.1%		0.3%		0.8%
Operating income (Actual)	$28,942		$23,661		$25,123		$77,726		$28,216		$23,361		$24,718		$76,295		2.6%		1.3%		1.6%		1.9%
Adjusted Hotel EBITDA (Actual) (1)	$48,327		$45,789		$44,972		$139,088		$47,653		$41,799		$42,709		$132,161		1.4%		9.5%		5.3%		5.2%
Comparable Hotels Adjusted Hotel   EBITDA (2)	$48,339		$45,904		$44,979		$139,222		$49,643		$43,651		$45,512		$138,806		(2.6%)		5.2%		(1.2%)		0.3%

 

Comparable Hotels is defined as the 223 hotels owned and held for use by the Company as of September 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 and assets held for sale, 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:

 

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.

 

 

 

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Dispositions

As previously announced, during the nine months ended September 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 nine months ended September 30, 2024. The dispositions include the following:

 

Contracts for Potential Dispositions

The Company recently entered into four separate contracts for the sale of four hotels for a combined gross sales price of approximately $31.1 million. The potential dispositions include the following:

 

As a result of these potential sales, in the third quarter 2024, the Company recognized an impairment loss of approximately $2.9 million in the aggregate with respect to two of the potential sale properties. There are many conditions to closing on the sales of these hotels that have not yet been satisfied, and there can be no assurance that closings on the sales of these hotels will occur under the outstanding sale agreements.

 

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 nine months ended September 30, 2024, the Company invested approximately $48 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

As of September 30, 2024, the Company had approximately $1.5 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.9%, cash on hand of approximately $6 million and

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availability under its revolving credit facility of approximately $540 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt as of September 30, 2024, was comprised of approximately $257 million in property-level debt secured by 14 hotels and approximately $1.3 billion outstanding under its unsecured credit facilities. In August 2024, the Company repaid in full one secured mortgage loan for a total of approximately $20 million, increasing the number of unencumbered hotels in the Company’s portfolio as of September 30, 2024, to 210. The Company’s total debt to total capitalization, net of cash and cash equivalents at September 30, 2024, was approximately 30%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of September 30, 2024, the Company’s weighted-average debt maturities were 3.0 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 September 30, 2024, the Company purchased, under its Share Repurchase Program, approximately 1.4 million of its common shares at a weighted-average market purchase price of approximately $14.02 per common share, for an aggregate purchase price of approximately $19.2 million, bringing the total shares purchased year to date through September 30, 2024, to approximately 2.4 million common shares at a weighted-average market purchase price of approximately $14.16 per common share, for an aggregate purchase price of approximately $34.7 million. As of September 30, 2024, the Company had approximately $301 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 September 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 nine months ended September 30, 2024.

 

Shareholder Distributions

During the three months ended September 30, 2024, the Company paid distributions totaling $0.24 per common share. Based on the Company’s common stock closing price of $14.68 on November 1, 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.

 

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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 $1 million, decreasing Comparable Hotels RevPAR Change by 12.5 bps, increasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 20 bps, and decreasing Adjusted EBITDAre by $1.5 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, exclude announced dispositions anticipated to close by year-end 2024, 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		$204 Million		$221 Million
Comparable Hotels RevPAR Change		0.75%		2.00%
Comparable Hotels Adjusted Hotel EBITDA Margin %		35.3%		35.9%
Adjusted EBITDAre		$458 Million		$469 Million
Capital expenditures		$75 Million		$85 Million

 

 

Third 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, November 5, 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 November 5, 2024, through 11:59 p.m. Eastern Time on November 19, 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 13748421. 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.

 

 

 

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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

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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)

 

		September 30,		December 31,
		2024		2023
		(unaudited)
Assets
Investment in real estate, net of accumulated depreciation and amortization       of $1,797,006 and $1,662,942, respectively		$4,873,083		$4,777,374
Assets held for sale		2,950		15,283
Cash and cash equivalents		6,147		10,287
Restricted cash-furniture, fixtures and other escrows		32,570		33,331
Due from third-party managers, net		57,394		36,437
Other assets, net		49,659		64,586
Total Assets		$5,021,803		$4,937,298
Liabilities
Debt, net		$1,501,189		$1,371,494
Finance lease liabilities		111,687		111,892
Accounts payable and other liabilities		112,058		129,931
Total Liabilities		1,724,934		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 239,925,065 and 241,515,532 shares, respectively		4,772,759		4,794,804
Accumulated other comprehensive income		4,792		20,404
Distributions greater than net income		(1,480,682)		(1,491,227)
Total Shareholders' Equity		3,296,869		3,323,981
Total Liabilities and Shareholders' Equity		$5,021,803		$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 September 30, 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								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
Revenues:
Room		$	346,058			$	327,121			$	998,493			$	943,684
Food and beverage			15,841				13,576				48,760				42,032
Other			16,944				17,563				51,179				45,628
Total revenue			378,843				358,260				1,098,432				1,031,344
Expenses:
Hotel operating expense:
Operating			93,350				85,829				268,669				249,403
Hotel administrative			31,433				29,172				92,638				85,933
Sales and marketing			33,000				30,770				96,488				89,406
Utilities			14,787				13,797				37,971				36,271
Repair and maintenance			17,863				16,336				52,331				48,452
Franchise fees			16,963				15,895				49,244				45,407
Management fees			12,546				11,911				36,156				34,516
Total hotel operating expense			219,942				203,710				633,497				589,388
Property taxes, insurance and other			20,946				21,678				63,878				61,347
General and administrative			9,190				11,079				30,839				34,640
Loss on impairment of depreciable real estate assets			2,896				-				2,896				-
Depreciation and amortization			48,143				45,498				142,681				137,398
Total expense			301,117				281,965				873,791				822,773
Gain on sale of real estate			-				-				18,215				-
Operating income			77,726				76,295				242,856				208,571
Interest and other expense, net			(21,217	)			(17,470	)			(57,896	)			(50,973	)
Income before income taxes			56,509				58,825				184,960				157,598
Income tax expense			(243	)			(313	)			(713	)			(874	)
Net income		$	56,266			$	58,512			$	184,247			$	156,724
Other comprehensive income (loss):
Interest rate derivatives			(16,588	)			1,412				(15,612	)			530
Comprehensive income		$	39,678			$	59,924			$	168,635			$	157,254
Basic and diluted net income per common share		$	0.23			$	0.26			$	0.76			$	0.68
Weighted average common shares outstanding - basic and diluted			240,500				228,877				241,690				229,103

 

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 September 30, 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						Nine Months Ended
		September 30,						September 30,
						% Change						% Change
		2024		2023		2023		2024		2023		2023
Operating income (Actual)		$77,726		$76,295		1.9%		$242,856		$208,571		16.4%
Operating margin % (Actual)		20.5%		21.3%		(80 bps)		22.1%		20.2%		190 bps
Comparable Hotels Total Revenue		$378,104		$371,298		1.8%		$1,095,019		$1,073,288		2.0%
Comparable Hotels Total Operating Expenses		$238,882		$232,492		2.7%		$692,793		$669,753		3.4%
Comparable Hotels Adjusted Hotel EBITDA		$139,222		$138,806		0.3%		$402,226		$403,535		(0.3%)
Comparable Hotels Adjusted Hotel EBITDA Margin %		36.8%		37.4%		(60 bps)		36.7%		37.6%		(90 bps)
ADR (Comparable Hotels)		$162.66		$160.78		1.2%		$160.19		$159.37		0.5%
Occupancy (Comparable Hotels)		77.0%		77.3%		(0.4%)		76.4%		75.9%		0.7%
RevPAR (Comparable Hotels)		$125.30		$124.25		0.8%		$122.32		$120.98		1.1%
ADR (Actual)		$162.57		$159.36		2.0%		$159.78		$157.61		1.4%
Occupancy (Actual)		77.0%		77.1%		(0.1%)		76.3%		75.8%		0.7%
RevPAR (Actual)		$125.10		$122.91		1.8%		$121.84		$119.48		2.0%
Reconciliation to Actual Results
Total Revenue (Actual)		$378,843		$358,260				$1,098,432		$1,031,344
Revenue from acquisitions prior to ownership		-		18,999				4,775		60,610
Revenue from dispositions/assets held for sale		(518)		(3,949)				(3,421)		(10,931)
Revenue from non-hotel property		(221)		(2,012)				(4,767)		(7,735)
Comparable Hotels Total Revenue		$378,104		$371,298				$1,095,019		$1,073,288
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$139,088		$132,161				$400,561		$380,154
AHEBITDA from acquisitions prior to ownership		-		7,978				1,882		26,023
AHEBITDA from dispositions/assets held for sale		134		(1,333)				(217)		(3,216)
AHEBITDA from non-hotel property (2)		-		-				-		574
Comparable Hotels AHEBITDA		$139,222		$138,806				$402,226		$403,535

 

 

Note: Comparable Hotels is defined as the 223 hotels owned and held for use by the Company as of September 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 and assets held for sale, 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		Q3
Operating income (Actual)		$49,247		$83,029		$76,295		$38,910		$71,615		$93,515		$77,726
Operating margin % (Actual)		15.8%		23.0%		21.3%		12.5%		21.7%		24.0%		20.5%
Comparable Hotels Total Revenue		$325,564		$376,426		$371,298		$319,229		$330,423		$386,492		$378,104
Comparable Hotels Total Operating Expenses		210,065		227,196		232,492		213,521		218,804		235,107		238,882
Comparable Hotels Adjusted Hotel EBITDA		$115,499		$149,230		$138,806		$105,708		$111,619		$151,385		$139,222
Comparable Hotels Adjusted Hotel EBITDA Margin %		35.5%		39.6%		37.4%		33.1%		33.8%		39.2%		36.8%
ADR (Comparable Hotels)		$154.29		$162.60		$160.78		$151.69		$154.29		$163.10		$162.66
Occupancy (Comparable Hotels)		72.2%		78.2%		77.3%		69.8%		72.2%		79.9%		77.0%
RevPAR (Comparable Hotels)		$111.39		$127.15		$124.25		$105.92		$111.32		$130.28		$125.30
ADR (Actual)		$152.01		$160.98		$159.36		$149.88		$153.18		$162.98		$162.57
Occupancy (Actual)		72.0%		78.2%		77.1%		69.6%		72.0%		79.8%		77.0%
RevPAR (Actual)		$109.46		$125.96		$122.91		$104.27		$110.25		$130.07		$125.10
Reconciliation to Actual Results
Total Revenue (Actual)		$311,454		$361,630		$358,260		$312,456		$329,512		$390,077		$378,843
Revenue from acquisitions prior to ownership		19,786		21,825		18,999		12,245		4,775		-		-
Revenue from dispositions/assets held for sale		(2,833)		(4,149)		(3,949)		(3,345)		(1,821)		(1,082)		(518)
Revenue from non-hotel property		(2,843)		(2,880)		(2,012)		(2,127)		(2,043)		(2,503)		(221)
Comparable Hotels Total Revenue		$325,564		$376,426		$371,298		$319,229		$330,423		$386,492		$378,104
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$106,749		$141,244		$132,161		$101,738		$109,793		$151,680		$139,088
AHEBITDA from acquisitions prior to ownership		8,320		9,725		7,978		4,842		1,882		-		-
AHEBITDA from dispositions/assets held for sale		(366)		(1,517)		(1,333)		(872)		(56)		(295)		134
AHEBITDA from non-hotel property (2)		796		(222)		-		-		-		-		-
Comparable Hotels AHEBITDA		$115,499		$149,230		$138,806		$105,708		$111,619		$151,385		$139,222

 

 

Note: Comparable Hotels is defined as the 223 hotels owned and held for use by the Company as of September 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 and assets held for sale, 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						Nine Months Ended
		September 30,						September 30,
						% Change						% Change
		2024		2023		2023		2024		2023		2023
Operating income (Actual)		$77,726		$76,295		1.9%		$242,856		$208,571		16.4%
Operating margin % (Actual)		20.5%		21.3%		(80 bps)		22.1%		20.2%		190 bps
Same Store Hotels Total Revenue		$352,449		$350,190		0.6%		$1,025,045		$1,010,544		1.4%
Same Store Hotels Total Operating Expenses		223,468		220,152		1.5%		652,328		633,835		2.9%
Same Store Hotels Adjusted Hotel EBITDA		$128,981		$130,038		(0.8%)		$372,717		$376,709		(1.1%)
Same Store Hotels Adjusted Hotel EBITDA Margin %		36.6%		37.1%		(50 bps)		36.4%		37.3%		(90 bps)
ADR (Same Store Hotels)		$160.84		$159.59		0.8%		$158.13		$157.85		0.2%
Occupancy (Same Store Hotels)		77.0%		77.2%		(0.3%)		76.3%		75.9%		0.5%
RevPAR (Same Store Hotels)		$123.90		$123.21		0.6%		$120.70		$119.76		0.8%
ADR (Actual)		$162.57		$159.36		2.0%		$159.78		$157.61		1.4%
Occupancy (Actual)		77.0%		77.1%		(0.1%)		76.3%		75.8%		0.7%
RevPAR (Actual)		$125.10		$122.91		1.8%		$121.84		$119.48		2.0%
Reconciliation to Actual Results
Total Revenue (Actual)		$378,843		$358,260				$1,098,432		$1,031,344
Revenue from acquisitions		(25,655)		(2,109)				(65,199)		(2,134)
Revenue from dispositions/assets held for sale		(518)		(3,949)				(3,421)		(10,931)
Revenue from non-hotel property		(221)		(2,012)				(4,767)		(7,735)
Same Store Hotels Total Revenue		$352,449		$350,190				$1,025,045		$1,010,544
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$139,088		$132,161				$400,561		$380,154
AHEBITDA from acquisitions		(10,241)		(790)				(27,627)		(803)
AHEBITDA from dispositions/assets held for sale		134		(1,333)				(217)		(3,216)
AHEBITDA from non-hotel property (2)		-		-				-		574
Same Store Hotels AHEBITDA		$128,981		$130,038				$372,717		$376,709

 

 

Note: Same Store Hotels is defined as the 215 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		Q3
Operating income (Actual)		$49,247		$83,029		$76,295		$38,910		$71,615		$93,515		$77,726
Operating margin % (Actual)		15.8%		23.0%		21.3%		12.5%		21.7%		24.0%		20.5%
Same Store Hotels Total Revenue		$305,778		$354,576		$350,190		$299,462		$309,463		$363,133		$352,449
Same Store Hotels Total Operating Expenses		198,599		215,084		220,152		201,549		206,723		222,137		223,468
Same Store Hotels Adjusted Hotel EBITDA		$107,179		$139,492		$130,038		$97,913		$102,740		$140,996		$128,981
Same Store Hotels Adjusted Hotel EBITDA Margin %		35.1%		39.3%		37.1%		32.7%		33.2%		38.8%		36.6%
ADR (Same Store Hotels)		$152.52		$160.98		$159.59		$149.71		$152.04		$160.98		$160.84
Occupancy (Same Store Hotels)		72.1%		78.2%		77.2%		69.7%		72.0%		79.9%		77.0%
RevPAR (Same Store Hotels)		$109.98		$125.96		$123.21		$104.42		$109.47		$128.70		$123.90
ADR (Actual)		$152.01		$160.98		$159.36		$149.88		$153.18		$162.98		$162.57
Occupancy (Actual)		72.0%		78.2%		77.1%		69.6%		72.0%		79.8%		77.0%
RevPAR (Actual)		$109.46		$125.96		$122.91		$104.27		$110.25		$130.07		$125.10
Reconciliation to Actual Results
Total Revenue (Actual)		$311,454		$361,630		$358,260		$312,456		$329,512		$390,077		$378,843
Revenue from acquisitions		-		(25)		(2,109)		(7,522)		(16,185)		(23,359)		(25,655)
Revenue from dispositions/assets held for sale		(2,833)		(4,149)		(3,949)		(3,345)		(1,821)		(1,082)		(518)
Revenue from non-hotel property		(2,843)		(2,880)		(2,012)		(2,127)		(2,043)		(2,503)		(221)
Same Store Hotels Total Revenue		$305,778		$354,576		$350,190		$299,462		$309,463		$363,133		$352,449
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)		$106,749		$141,244		$132,161		$101,738		$109,793		$151,680		$139,088
AHEBITDA from acquisitions		-		(13)		(790)		(2,953)		(6,997)		(10,389)		(10,241)
AHEBITDA from dispositions/assets held for sale		(366)		(1,517)		(1,333)		(872)		(56)		(295)		134
AHEBITDA from non-hotel property (2)		796		(222)		-		-		-		-		-
Same Store Hotels AHEBITDA		$107,179		$139,492		$130,038		$97,913		$102,740		$140,996		$128,981

 

 

Note: Same Store Hotels is defined as the 215 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.

 

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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		Q3
Net income		$32,923		$65,289		$58,512		$20,765		$54,050		$73,931		$56,266
Depreciation and amortization		45,906		45,994		45,498		45,844		46,823		47,715		48,143
Amortization of favorable and unfavorable operating leases, net		97		85		99		102		102		102		102
Interest and other expense, net		16,004		17,499		17,470		17,884		17,309		19,370		21,217
Income tax expense		320		241		313		261		256		214		243
EBITDA		95,250		129,108		121,892		84,856		118,540		141,332		125,971
Gain on sale of real estate		-		-		-		-		(17,766)		(449)		-
Loss on impairment of depreciable real estate assets		-		-		-		5,644		-		-		2,896
EBITDAre		95,250		129,108		121,892		90,500		100,774		140,883		128,867
Non-cash straight-line operating ground lease expense		38		36		35		36		36		33		33
Adjusted EBITDAre		95,288		129,144		121,927		90,536		100,810		140,916		128,900
General and administrative expense		11,461		12,100		11,079		12,761		10,584		11,065		9,190
Adjusted EBITDAre from non-hotel property (1)		-		-		(845)		(1,559)		(1,601)		(301)		998
Adjusted Hotel EBITDA		$106,749		$141,244		$132,161		$101,738		$109,793		$151,680		$139,088

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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 nine months ended September 30, 2024 and 2023:

 

		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023		2024		2023
Net income		$56,266		$58,512		$184,247		$156,724
Depreciation of real estate owned		47,383		44,734		140,394		135,105
Gain on sale of real estate		-		-		(18,215)		-
Loss on impairment of depreciable real estate assets		2,896		-		2,896		-
Funds from operations		106,545		103,246		309,322		291,829
Amortization of finance ground lease assets		759		759		2,278		2,278
Amortization of favorable and unfavorable operating leases, net		102		99		306		281
Non-cash straight-line operating ground lease expense		33		35		102		109
Modified funds from operations		$107,439		$104,139		$312,008		$294,497

 

 

 

 

 

 

 

 

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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	$203,656		$221,456
Depreciation and amortization	189,000		186,000
Amortization of favorable and unfavorable leases, net	408		408
Interest and other expense, net	80,000		78,000
Income tax expense	700		1,100
EBITDA	$473,764		$486,964
Gain on sale of real estate	(18,500)		(20,500)
Loss on impairment of depreciable real estate	2,896		2,896
EBITDAre	$458,160		$469,360
Non-cash straight-line operating ground lease expense	135		135
Adjusted EBITDAre	$458,295		$469,495
General and administrative expense	37,500		42,500
AEBITDAre from non-hotel property (1)	1,000		(1,000)
Adjusted Hotel EBITDA	$496,795		$510,995
AHEBITDA from acquisitions prior to ownership (2)	1,882		1,882
AHEBITDA from dispositions	(1,977)		(1,977)
Comparable Hotels Adjusted Hotel EBITDA	$496,700		$510,900

 

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Apple Hospitality REIT, Inc.

Debt Summary

(Unaudited)

($ in thousands)

September 30, 2024

 

		October 1 -
		December 31,																												Fair Market
		2024				2025				2026				2027				2028				Thereafter				Total				Value
Total debt:
Maturities		$	2,109			$	295,140			$	315,149			$	278,602			$	334,066			$	281,948			$	1,507,014			$	1,476,149
Average interest rates (1)			4.9	%			4.9	%			5.0	%			5.0	%			4.4	%			3.8	%
Variable-rate debt:
Maturities		$	-			$	225,000			$	240,500			$	275,000			$	300,000			$	85,000			$	1,125,500			$	1,125,180
Average interest rates (1)			5.1	%			5.2	%			5.3	%			5.3	%			4.7	%			3.0	%
Fixed-rate debt:
Maturities		$	2,109			$	70,140			$	74,649			$	3,602			$	34,066			$	196,948			$	381,514			$	350,969
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 September 30, 2024.

 

 

 

 

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Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Market

Three Months Ended September 30

(Unaudited)

 

Top 20 Markets			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024
Top 20 Markets
Portland, ME	3		87.0%	93.4%	(6.9%)		$329.17	$310.50	6.0%		$286.53	$289.95	(1.2%)		6.2%
San Diego, CA	7		80.1%	81.5%	(1.7%)		$210.12	$209.81	0.1%		$168.23	$171.05	(1.6%)		6.1%
Los Angeles, CA	8		87.8%	88.4%	(0.7%)		$196.05	$192.58	1.8%		$172.05	$170.21	1.1%		5.4%
Seattle, WA	4		90.8%	89.6%	1.3%		$240.83	$231.71	3.9%		$218.70	$207.68	5.3%		5.1%
Chicago, IL	7		81.4%	76.4%	6.5%		$152.58	$146.84	3.9%		$124.21	$112.18	10.7%		4.1%
Orange County, CA	6		83.9%	84.0%	(0.1%)		$172.99	$175.13	(1.2%)		$145.07	$147.15	(1.4%)		3.7%
Alaska	2		90.0%	93.2%	(3.4%)		$338.85	$302.93	11.9%		$305.05	$282.23	8.1%		3.5%
Salt Lake City/Ogden, UT	5		81.6%	79.8%	2.3%		$154.13	$153.42	0.5%		$125.78	$122.38	2.8%		3.1%
Norfolk/Virginia Beach, VA	4		82.1%	85.3%	(3.8%)		$223.68	$230.22	(2.8%)		$183.54	$196.28	(6.5%)		3.0%
Washington, DC	5		76.3%	78.3%	(2.6%)		$172.91	$169.62	1.9%		$131.90	$132.76	(0.6%)		2.9%
Fort Worth/Arlington, TX	6		80.6%	76.9%	4.8%		$156.54	$151.38	3.4%		$126.17	$116.44	8.4%		2.7%
North Carolina East	4		76.2%	82.3%	(7.4%)		$177.78	$179.48	(0.9%)		$135.53	$147.77	(8.3%)		2.1%
Nashville, TN	5		74.1%	86.9%	(14.7%)		$155.74	$154.30	0.9%		$115.47	$134.06	(13.9%)		2.0%
Melbourne, FL	3		88.4%	78.5%	12.6%		$188.74	$181.66	3.9%		$166.93	$142.61	17.1%		2.0%
Madison, WI	2		68.2%	76.1%	(10.4%)		$219.80	$212.15	3.6%		$150.01	$161.52	(7.1%)		2.0%
Phoenix, AZ	10		69.5%	69.1%	0.6%		$115.24	$114.42	0.7%		$80.11	$79.05	1.3%		1.9%
Omaha, NE	4		78.4%	69.0%	13.6%		$132.99	$137.07	(3.0%)		$104.25	$94.54	10.3%		1.8%
Denver, CO	3		77.8%	79.6%	(2.3%)		$173.20	$182.89	(5.3%)		$134.74	$145.63	(7.5%)		1.8%
Richmond/Petersburg, VA	3		67.5%	68.2%	(1.0%)		$184.49	$178.64	3.3%		$124.46	$121.81	2.2%		1.8%
Oklahoma City, OK	4		75.5%	76.8%	(1.7%)		$135.36	$131.30	3.1%		$102.23	$100.88	1.3%		1.5%
Top 20 Markets	95		79.5%	79.9%	(0.5%)		$183.11	$180.11	1.7%		$145.49	$143.90	1.1%		62.7%
All Other Markets	128		74.8%	74.9%	(0.1%)		$142.88	$142.34	0.4%		$106.91	$106.67	0.2%		37.3%
Total Portfolio	223		77.0%	77.3%	(0.4%)		$162.66	$160.78	1.2%		$125.30	$124.25	0.8%		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

Nine Months Ended September 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		79.7%	78.7%	1.3%		$160.27	$162.61	(1.4%)		$127.72	$127.95	(0.2%)		5.5%
San Diego, CA	7		77.6%	78.2%	(0.8%)		$193.94	$192.65	0.7%		$150.50	$150.71	(0.1%)		5.5%
Los Angeles, CA	8		85.8%	85.1%	0.8%		$186.94	$187.80	(0.5%)		$160.32	$159.86	0.3%		5.0%
Seattle, WA	4		84.4%	83.5%	1.1%		$208.55	$201.75	3.4%		$176.02	$168.54	4.4%		3.8%
Washington, DC	5		78.4%	77.7%	0.9%		$187.32	$180.48	3.8%		$146.95	$140.26	4.8%		3.6%
Orange County, CA	6		79.8%	79.6%	0.3%		$168.17	$170.31	(1.3%)		$134.27	$135.59	(1.0%)		3.4%
Portland, ME	3		78.2%	76.2%	2.6%		$227.03	$231.78	(2.0%)		$177.50	$176.51	0.6%		3.2%
Salt Lake City/Ogden, UT	5		79.8%	78.9%	1.1%		$156.22	$155.11	0.7%		$124.70	$122.46	1.8%		3.1%
Fort Worth/Arlington, TX	6		83.3%	80.4%	3.6%		$158.98	$157.22	1.1%		$132.49	$126.42	4.8%		3.1%
Alaska	2		89.2%	85.2%	4.7%		$274.81	$261.87	4.9%		$245.12	$222.99	9.9%		2.7%
Chicago, IL	7		71.5%	68.3%	4.7%		$141.96	$139.73	1.6%		$101.47	$95.48	6.3%		2.6%
Nashville, TN	5		78.6%	82.1%	(4.3%)		$158.69	$163.43	(2.9%)		$124.80	$134.18	(7.0%)		2.5%
Melbourne, FL	3		87.0%	84.1%	3.4%		$204.82	$193.27	6.0%		$178.18	$162.50	9.6%		2.4%
Richmond/Petersburg, VA	3		71.6%	69.5%	3.0%		$186.79	$183.15	2.0%		$133.72	$127.22	5.1%		2.4%
Omaha, NE	4		72.8%	70.3%	3.6%		$157.66	$156.97	0.4%		$114.71	$110.43	3.9%		2.3%
Norfolk/Virginia Beach, VA	4		77.3%	78.6%	(1.7%)		$182.73	$185.24	(1.4%)		$141.22	$145.67	(3.1%)		2.1%
North Carolina East	4		74.0%	78.2%	(5.4%)		$156.81	$158.12	(0.8%)		$116.07	$123.66	(6.1%)		1.7%
Houston, TX	6		74.8%	67.2%	11.3%		$122.16	$115.89	5.4%		$91.37	$77.86	17.4%		1.5%
Miami, FL	3		87.7%	88.3%	(0.7%)		$159.21	$160.72	(0.9%)		$139.65	$141.93	(1.6%)		1.5%
Oklahoma City, OK	4		76.6%	75.4%	1.6%		$136.52	$137.19	(0.5%)		$104.62	$103.50	1.1%		1.5%
Top 20 Markets	99		78.8%	77.6%	1.5%		$172.57	$171.57	0.6%		$136.01	$133.22	2.1%		59.4%
All Other Markets	124		74.0%	74.2%	(0.3%)		$147.60	$147.09	0.3%		$109.24	$109.20	0.0%		40.6%
Total Portfolio	223		76.4%	75.9%	0.7%		$160.19	$159.37	0.5%		$122.32	$120.98	1.1%		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 September 30

(Unaudited)

 

Region			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024
STR Region
East North Central	17		76.9%	75.7%	1.6%		$165.97	$156.35	6.2%		$127.59	$118.35	7.8%		9.6%
East South Central	27		74.9%	79.2%	(5.4%)		$146.35	$147.50	(0.8%)		$109.55	$116.82	(6.2%)		8.1%
Middle Atlantic	12		78.9%	78.8%	0.1%		$167.03	$163.16	2.4%		$131.72	$128.53	2.5%		5.7%
Mountain	25		74.8%	75.6%	(1.1%)		$143.07	$142.05	0.7%		$107.05	$107.40	(0.3%)		10.0%
New England	6		83.3%	87.9%	(5.2%)		$271.42	$259.91	4.4%		$226.05	$228.49	(1.1%)		7.5%
Pacific	33		84.4%	84.9%	(0.6%)		$206.23	$203.03	1.6%		$174.00	$172.45	0.9%		26.1%
South Atlantic	53		75.3%	76.3%	(1.3%)		$155.38	$154.25	0.7%		$117.06	$117.69	(0.5%)		19.4%
West North Central	16		76.4%	72.9%	4.8%		$139.32	$143.11	(2.6%)		$106.38	$104.27	2.0%		5.2%
West South Central	34		73.4%	70.8%	3.7%		$130.03	$128.25	1.4%		$95.38	$90.75	5.1%		8.4%
Total Portfolio	223		77.0%	77.3%	(0.4%)		$162.66	$160.78	1.2%		$125.30	$124.25	0.8%		100.0%

Note: Region categorization based on STR designation.

 

 

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Region

Nine Months Ended September 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		69.5%	67.6%	2.8%		$151.51	$145.98	3.8%		$105.29	$98.67	6.7%		6.2%
East South Central	27		76.9%	78.2%	(1.7%)		$148.32	$149.01	(0.5%)		$114.03	$116.56	(2.2%)		9.5%
Middle Atlantic	12		74.5%	74.1%	0.5%		$157.56	$154.55	1.9%		$117.33	$114.58	2.4%		4.7%
Mountain	25		78.0%	77.8%	0.3%		$159.80	$158.70	0.7%		$124.66	$123.41	1.0%		13.9%
New England	6		74.9%	73.6%	1.8%		$204.28	$206.35	(1.0%)		$153.08	$151.84	0.8%		4.2%
Pacific	33		81.3%	80.8%	0.6%		$190.42	$189.86	0.3%		$154.81	$153.33	1.0%		22.8%
South Atlantic	53		76.9%	77.4%	(0.6%)		$160.42	$159.56	0.5%		$123.33	$123.51	(0.1%)		23.0%
West North Central	16		70.9%	70.4%	0.7%		$145.94	$145.83	0.1%		$103.44	$102.70	0.7%		5.2%
West South Central	34		75.8%	73.3%	3.4%		$134.92	$134.67	0.2%		$102.28	$98.72	3.6%		10.5%
Total Portfolio	223		76.4%	75.9%	0.7%		$160.19	$159.37	0.5%		$122.32	$120.98	1.1%		100.0%

Note: Region categorization based on STR designation.

 

 

 

 

 

 

 

 

 

 

---

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Three Months Ended September 30

(Unaudited)

 

Chain Scale/Brand			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024
Upscale
AC Hotels	4		82.8%	83.5%	(0.8%)		$263.05	$256.03	2.7%		$217.81	$213.75	1.9%		5.9%
Aloft	1		88.1%	90.9%	(3.1%)		$288.25	$269.79	6.8%		$253.86	$245.36	3.5%		1.6%
Courtyard	34		75.0%	75.8%	(1.1%)		$173.36	$172.62	0.4%		$129.99	$130.91	(0.7%)		19.0%
Hilton Garden Inn	40		74.8%	74.5%	0.4%		$150.80	$152.06	(0.8%)		$112.85	$113.25	(0.4%)		15.6%
Homewood Suites	29		83.6%	82.3%	1.6%		$146.34	$147.32	(0.7%)		$122.41	$121.28	0.9%		9.2%
Hyatt House	2		80.4%	76.6%	5.0%		$144.50	$145.36	(0.6%)		$116.24	$111.33	4.4%		0.9%
Hyatt Place	3		70.3%	73.4%	(4.2%)		$126.30	$128.12	(1.4%)		$88.84	$94.00	(5.5%)		0.5%
Residence Inn	30		81.0%	83.8%	(3.3%)		$183.13	$176.79	3.6%		$148.35	$148.09	0.2%		16.9%
SpringHill Suites	9		73.5%	75.2%	(2.3%)		$150.91	$148.34	1.7%		$110.95	$111.58	(0.6%)		4.0%
Upscale Total	152		77.7%	78.2%	(0.6%)		$166.10	$164.86	0.8%		$129.00	$128.98	0.0%		73.6%
Upper Midscale
Fairfield	10		70.9%	71.4%	(0.7%)		$126.44	$130.96	(3.5%)		$89.65	$93.50	(4.1%)		2.0%
Hampton	36		75.9%	74.8%	1.5%		$152.22	$151.46	0.5%		$115.48	$113.32	1.9%		12.5%
Home2 Suites	10		84.6%	86.6%	(2.3%)		$166.49	$156.83	6.2%		$140.91	$135.77	3.8%		4.9%
TownePlace Suites	9		75.3%	74.0%	1.8%		$121.75	$119.69	1.7%		$91.74	$88.52	3.6%		2.1%
Upper Midscale Total	65		76.3%	75.9%	0.5%		$147.43	$145.89	1.1%		$112.49	$110.69	1.6%		21.5%
Upper Upscale
Embassy Suites	4		76.7%	82.9%	(7.5%)		$228.74	$223.97	2.1%		$175.42	$185.70	(5.5%)		3.9%
Marriott	2		66.1%	59.7%	10.7%		$164.49	$159.88	2.9%		$108.81	$95.39	14.1%		1.0%
Upper Upscale Total	6		72.0%	70.1%	2.7%		$202.43	$194.03	4.3%		$145.73	$136.09	7.1%		4.9%
Total Portfolio	223		77.0%	77.3%	(0.4%)		$162.66	$160.78	1.2%		$125.30	$124.25	0.8%		100.0%

Note: Chain scale categorization based on STR designation.

 

 

 

 

 

 

 

 

 

---

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Nine Months Ended September 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		79.7%	77.9%	2.3%		$238.32	$232.46	2.5%		$190.01	$181.20	4.9%		5.1%
Aloft	1		72.4%	72.5%	(0.1%)		$208.90	$203.63	2.6%		$151.17	$147.63	2.4%		0.7%
Courtyard	34		74.0%	74.1%	(0.1%)		$167.29	$165.60	1.0%		$123.85	$122.66	1.0%		18.5%
Hilton Garden Inn	40		73.4%	73.0%	0.5%		$150.25	$152.45	(1.4%)		$110.28	$111.36	(1.0%)		15.6%
Homewood Suites	29		82.9%	82.3%	0.7%		$152.49	$151.67	0.5%		$126.46	$124.81	1.3%		10.4%
Hyatt House	2		80.4%	78.5%	2.4%		$159.13	$163.21	(2.5%)		$127.87	$128.17	(0.2%)		1.1%
Hyatt Place	3		78.9%	77.8%	1.4%		$145.70	$149.16	(2.3%)		$114.97	$116.05	(0.9%)		1.1%
Residence Inn	30		79.5%	79.4%	0.1%		$170.62	$167.57	1.8%		$135.59	$133.04	1.9%		15.1%
SpringHill Suites	9		74.9%	74.7%	0.3%		$158.21	$153.26	3.2%		$118.53	$114.48	3.5%		4.7%
Upscale Total	152		76.7%	76.4%	0.4%		$162.53	$161.51	0.6%		$124.65	$123.34	1.1%		72.3%
Upper Midscale
Fairfield	10		71.3%	71.2%	0.1%		$128.49	$132.08	(2.7%)		$91.55	$94.05	(2.7%)		2.3%
Hampton	36		74.7%	73.7%	1.4%		$155.34	$156.57	(0.8%)		$116.06	$115.42	0.6%		13.5%
Home2 Suites	10		83.2%	85.4%	(2.6%)		$164.74	$161.08	2.3%		$137.03	$137.49	(0.3%)		4.8%
TownePlace Suites	9		78.6%	77.6%	1.3%		$124.65	$123.60	0.8%		$97.94	$95.91	2.1%		2.5%
Upper Midscale Total	65		75.8%	75.4%	0.5%		$149.38	$149.95	(0.4%)		$113.28	$113.11	0.2%		23.1%
Upper Upscale
Embassy Suites	4		79.2%	82.3%	(3.8%)		$216.23	$211.15	2.4%		$171.21	$173.71	(1.4%)		3.0%
Marriott	2		69.4%	61.8%	12.3%		$167.28	$166.29	0.6%		$116.12	$102.75	13.0%		1.6%
Upper Upscale Total	6		74.2%	71.0%	4.5%		$193.11	$189.72	1.8%		$143.38	$134.73	6.4%		4.6%
Total Portfolio	223		76.4%	75.9%	0.7%		$160.19	$159.37	0.5%		$122.32	$120.98	1.1%		100.0%

Note: Chain scale categorization based on STR designation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Three Months Ended September 30

(Unaudited)

 

Location			Occupancy				ADR				RevPAR				% of Adjusted Hotel EBITDA
	# of Hotels		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	% Change		Q3 2024
STR Location
Airport	20		81.3%	83.7%	(2.9%)		$146.54	$143.42	2.2%		$119.10	$120.00	(0.8%)		7.5%
Interstate	8		76.3%	75.7%	0.8%		$152.21	$150.48	1.1%		$116.12	$113.89	2.0%		2.4%
Resort	11		73.1%	74.0%	(1.2%)		$178.58	$179.03	(0.3%)		$130.63	$132.43	(1.4%)		6.1%
Small Metro/Town	3		78.5%	81.7%	(3.9%)		$125.72	$123.45	1.8%		$98.69	$100.91	(2.2%)		0.9%
Suburban	120		78.1%	77.4%	0.9%		$153.91	$152.77	0.7%		$120.27	$118.24	1.7%		45.1%
Urban	61		74.8%	75.8%	(1.3%)		$181.38	$178.56	1.6%		$135.62	$135.33	0.2%		38.0%
Total Portfolio	223		77.0%	77.3%	(0.4%)		$162.66	$160.78	1.2%		$125.30	$124.25	0.8%		100.0%

Note: Location categorization based on STR designation.

 

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Nine Months Ended September 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	20		82.1%	82.5%	(0.5%)		$150.81	$148.52	1.5%		$123.80	$122.57	1.0%		8.6%
Interstate	8		74.3%	71.5%	3.9%		$147.34	$143.90	2.4%		$109.48	$102.90	6.4%		2.2%
Resort	11		74.5%	75.4%	(1.2%)		$183.22	$178.69	2.5%		$136.48	$134.75	1.3%		7.0%
Small Metro/Town	3		80.6%	79.7%	1.1%		$125.01	$122.03	2.4%		$100.79	$97.27	3.6%		0.9%
Suburban	120		76.6%	76.0%	0.8%		$150.86	$150.54	0.2%		$115.61	$114.40	1.1%		44.4%
Urban	61		74.6%	74.2%	0.5%		$176.64	$176.49	0.1%		$131.80	$130.89	0.7%		36.9%
Total Portfolio	223		76.4%	75.9%	0.7%		$160.19	$159.37	0.5%		$122.32	$120.98	1.1%		100.0%

Note: Location categorization based on STR designation.

 

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v3.24.3

Document And Entity Information	Nov. 04, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 04, 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

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