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
%
(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 $14.85 on September 30,
2024.
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.
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
- Strong operating performance: For the third quarter
2024, Comparable Hotels ADR was $163, approximately a 1%
improvement over third quarter 2023; Comparable Hotels Occupancy
was 77%, essentially flat to third quarter 2023; and Comparable
Hotels RevPAR was $125, an increase of approximately 1% over third
quarter 2023. Comparable Hotels Occupancy, ADR and RevPAR exceeded
industry averages as reported by STR for the third quarter 2024.
Preliminary results for the Company's portfolio for the month of
October 2024 show Comparable Hotels RevPAR growth of approximately
4%, with growth in both Comparable Hotels Occupancy and ADR, as
compared to October 2023.
- Strong bottom-line performance: For the third quarter
2024, the Company achieved Comparable Hotels Adjusted Hotel EBITDA
of approximately $139 million, a slight improvement over third
quarter 2023, and Comparable Hotels Adjusted Hotel EBITDA Margin of
approximately 37%, down 60 bps to third quarter 2023. The Company
achieved Adjusted EBITDAre of approximately $129 million for the
third quarter 2024, an increase of approximately 6% as compared to
third quarter 2023. The Company achieved MFFO of approximately $107
million for the third quarter 2024, an increase of approximately 3%
as compared to third quarter 2023.
- Transactional activity: The Company currently has four
hotels under contract for sale for a combined gross sales price of
approximately $31 million.
- Capital markets: During the third quarter 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.
- Balance sheet: The Company has maintained the strength
and flexibility of its balance sheet. At September 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
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%.
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%
(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 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:
- 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 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:
- 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.
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:
- In August 2024, the Company entered into a contract for the
sale of its 90-room Courtyard by Marriott Wichita East for a gross
sales price of approximately $3.1 million. The Company expects to
complete the sale of this hotel in November 2024.
- In October 2024, the Company entered into a contract for the
sale of its 97-room TownePlace Suites by Marriott Knoxville Cedar
Bluff for a gross sales price of approximately $9.4 million. The
Company expects to complete the sale of this hotel in late 2024 or
early 2025.
- In October 2024, the Company entered into a contract for the
sale of its 76-room Homewood Suites by Hilton Chattanooga-Hamilton
Place for a gross sales price of approximately $8.3 million. The
Company expects to complete the sale of this hotel in late 2024 or
early 2025.
- In October 2024, the Company entered into a contract for the
sale of its 117-room Hilton Garden Inn Austin North for a gross
sales price of approximately $10.4 million. The Company expects to
complete the sale of this hotel in late 2024 or early 2025.
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 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.
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
(1)
Explanations of and reconciliations to net
income guidance of Adjusted EBITDAre and Comparable Hotels Adjusted
Hotel EBITDA guidance are included below.
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.
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)
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.
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.
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
(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"). As a result of the operator's failure to
make lease payments timely, the Company 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 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
(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 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
(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 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
(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 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.
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
(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 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
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
$510,900
(1)
Represents Adjusted EBITDAre from the
non-hotel property.
(2)
Results for periods prior to the Company's
ownership have not been included in the Company's actual
Consolidated Financial Statements and are included only for
comparison purposes. Results included for periods prior to the
Company's ownership are based on information from the prior owner
of each hotel and have not been audited or adjusted.
Apple Hospitality REIT,
Inc.
Debt Summary
(Unaudited)
($ in thousands)
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
%
(1)
The average interest rate gives effect to
interest rate swaps, as applicable.
Note: See further information on
the Company’s indebtedness in the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2024.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241103342680/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804-727-6321 kclarke@applereit.com
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