Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or
“Apple Hospitality”) today announced results of operations for the
third quarter ended September 30, 2023.
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,
2023
2022
% Change
2023
2022
% Change
Net income
$58,512
$59,146
(1.1%)
$156,724
$142,493
10.0%
Net income per share
$0.26
$0.26
0.0%
$0.68
$0.62
9.7%
Operating income
$76,295
$75,410
1.2%
$208,571
$188,990
10.4%
Operating margin %
21.3%
22.1%
(80 bps)
20.2%
20.1%
10 bps
Adjusted EBITDAre
$121,927
$118,895
2.6%
$346,359
$323,401
7.1%
Comparable Hotels Adjusted Hotel
EBITDA
$132,161
$131,111
0.8%
$381,551
$359,649
6.1%
Comparable Hotels Adjusted Hotel EBITDA
Margin %
37.1%
38.2%
(110 bps)
37.2%
38.1%
(90 bps)
Modified funds from operations (MFFO)
$104,139
$102,627
1.5%
$294,497
$276,890
6.4%
MFFO per share
$0.45
$0.45
0.0%
$1.29
$1.21
6.6%
Average Daily Rate (ADR) (Actual)
$159.36
$157.91
0.9%
$157.61
$150.02
5.1%
Occupancy (Actual)
77.1%
75.7%
1.8%
75.8%
73.6%
3.0%
Revenue Per Available Room (RevPAR)
(Actual)
$122.91
$119.52
2.8%
$119.48
$110.40
8.2%
Comparable Hotels ADR
$159.36
$157.65
1.1%
$157.54
$149.98
5.0%
Comparable Hotels Occupancy
77.1%
75.7%
1.8%
75.8%
73.5%
3.1%
Comparable Hotels RevPAR
$122.91
$119.31
3.0%
$119.34
$110.23
8.3%
Distributions paid
$54,837
$38,830
41.2%
$183,119
$86,792
111.0%
Distributions paid per share
$0.24
$0.17
41.2%
$0.80
$0.38
110.5%
Cash and cash equivalents
$35,366
Total debt outstanding
$1,380,247
Total debt outstanding, net of cash and
cash equivalents
$1,344,881
Total debt outstanding, net of cash and
cash equivalents, to total capitalization (2)
27.7%
_______________________
(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 $15.34 on September 30,
2023.
Comparable Hotels is defined as the 220
hotels owned by the Company as of September 30, 2023, and excludes
one non-hotel property leased to third parties. For hotels acquired
during the periods noted, the Company has included, as applicable,
results of those hotels for periods prior to the Company's
ownership, and for dispositions, results have been excluded for the
Company's period of ownership. Results for periods prior to the
Company's ownership have not been included in the Company's actual
Consolidated Financial Statements and are included only for
comparison purposes. Results included for periods prior to the
Company's ownership are based on information from the prior owner
of each hotel and have not been audited or adjusted.
Justin Knight, Chief Executive Officer of Apple Hospitality,
commented, “Performance across our portfolio remained strong during
the quarter, and we are pleased to report Comparable Hotels RevPAR
growth of 3% as compared to the third quarter of 2022, driven by
improvements in Comparable Hotels occupancy of 2% and ADR of 1%.
Comparable Hotels RevPAR was up more than 7% relative to the third
quarter of 2019, our highest quarterly Comparable Hotels RevPAR
growth relative to 2019 since the onset of the pandemic, with
Comparable Hotels occupancy still below pre-pandemic levels.
Through strategic asset management, our efficient operating model
and continued strength in ADR, we were able to achieve strong
margins during the quarter, despite continued inflationary and wage
pressures."
Mr. Knight continued, “Our strategy of investing in a broadly
diversified portfolio of high-quality, rooms-focused hotels with
low leverage has been tested across economic cycles and
consistently yielded compelling results for our investors. Our
outperformance since the onset of the pandemic has enabled us to
maintain the strength and flexibility of our balance sheet,
positioning us to be acquisitive within the current transaction
environment. We are pleased to have acquired four hotels since the
beginning of this year and have three additional hotels under
contract for purchase. We continue to underwrite numerous potential
opportunities and remain intently focused on maximizing total
returns for our shareholders through strong operating fundamentals
and strategic portfolio growth."
Hotel Portfolio Overview
As of September 30, 2023, Apple Hospitality owned 220 hotels
with an aggregate of 28,929 guest rooms located in 87 markets
throughout 37 states.
Third Quarter 2023
Highlights
- Strong operating performance: For the third quarter
2023, Comparable Hotels RevPAR was $123, a 3% increase over third
quarter 2022; Comparable Hotels ADR was $159, a 1% increase over
third quarter 2022; and Comparable Hotels Occupancy was 77%, a 2%
increase over third quarter 2022. Comparable Hotels Occupancy, ADR
and RevPAR exceeded industry averages as reported by STR. Based on
preliminary results for the Company's portfolio for the month of
October 2023, Comparable Hotels Occupancy was approximately 78%, in
line with October 2022, with growth in Comparable Hotels ADR as
compared to October 2022.
- Strong bottom-line performance: The Company achieved
Comparable Hotels Adjusted Hotel EBITDA of approximately $132
million, a 1% improvement over third quarter 2022. The Company
achieved Comparable Hotels Adjusted Hotel EBITDA Margin of
approximately 37%, down 110 bps to third quarter 2022.
- Acquisition activity: In October 2023, the Company
acquired three hotels and a parking garage for a combined total
purchase price of approximately $147 million. The Company currently
has three additional hotels under contract for purchase for an
anticipated combined gross purchase price of approximately $212
million.
- Balance sheet: The Company has maintained the strength
and flexibility of its balance sheet. At September 30, 2023, the
Company’s total debt to total capitalization, net of cash and cash
equivalents, was approximately 28%.
- Monthly distributions: During the three months ended
September 30, 2023, the Company paid distributions totaling $0.24
per common share. Based on the Company’s common stock closing price
of $16.86 on November 3, 2023, the current annualized monthly cash
distribution of $0.96 per common share represents an annual yield
of approximately 5.7%.
The Company is providing monthly performance detail for its
Comparable Hotels with comparisons to the respective periods of
2022. As a result of the industry's general recovery from the
impact of COVID-19 on hotel operations, the Company, beginning with
its second quarter 2023 earnings release, has generally
transitioned away from comparisons to 2019. The following table
highlights the Company’s Comparable Hotels monthly performance
during the third quarter of 2023 as compared to the third quarter
of 2022 (in thousands, except statistical data):
% Change
July
August
September
July
August
September
July
August
September
2023
2023
2023
Q3 2023
2022
2022
2022
Q3 2022
2022
2022
2022
Q3 2022
ADR (Comparable Hotels)
$164.49
$156.38
$157.07
$159.36
$161.42
$154.96
$156.42
$157.65
1.9%
0.9%
0.4%
1.1%
Occupancy (Comparable Hotels)
77.6%
76.5%
77.3%
77.1%
77.0%
74.8%
75.3%
75.7%
0.8%
2.3%
2.7%
1.8%
RevPAR (Comparable Hotels)
$127.57
$119.66
$121.45
$122.91
$124.28
$115.83
$117.76
$119.31
2.6%
3.3%
3.1%
3.0%
Operating income (Actual)
$28,216
$23,361
$24,718
$76,295
$30,073
$21,623
$23,714
$75,410
(6.2%)
8.0%
4.2%
1.2%
Adjusted Hotel EBITDA (Actual) (1)
$47,653
$41,799
$42,709
$132,161
$48,444
$40,101
$40,621
$129,166
(1.6%)
4.2%
5.1%
2.3%
Comparable Hotels Adjusted Hotel EBITDA
(2)
$47,654
$41,799
$42,708
$132,161
$49,043
$41,101
$40,967
$131,111
(2.8%)
1.7%
4.2%
0.8%
_______________________
(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 220
hotels owned by the Company as of September 30, 2023, and excludes
one non-hotel property leased to third parties. For hotels acquired
during the periods noted, the Company has included, as applicable,
results of those hotels for periods prior to the Company's
ownership, and for dispositions, results have been excluded for the
Company's period of ownership. Results for periods prior to the
Company's ownership have not been included in the Company's actual
Consolidated Financial Statements and are included only for
comparison purposes. Results included for periods prior to the
Company's ownership are based on information from the prior owner
of each hotel and have not been audited or adjusted.
Portfolio Activity
Acquisitions
As previously announced, since the beginning of 2023, the
Company has acquired four hotels and a parking garage for a
combined total purchase price of approximately $178 million. The
acquisitions include the following:
- In June 2023, the Company acquired the 154-room Courtyard by
Marriott Cleveland University Circle for a total purchase price of
approximately $31.0 million, or $201,000 per key.
- In October 2023, the Company acquired the 175-room Courtyard by
Marriott Salt Lake City Downtown for approximately $48.1 million,
or $275,000 per key.
- In October 2023, the Company acquired the 159-room Hyatt House
Salt Lake City/Downtown for approximately $34.3 million, or
$215,000 per key.
- In October 2023, the Company acquired a 346-space parking
garage for approximately $9.1 million, which serves the two Salt
Lake City hotels as well as the surrounding area.
- In October 2023, the Company acquired the 146-room Residence
Inn by Marriott Seattle South/Renton for approximately $55.5
million, or $380,000 per key.
Contracts for Potential Acquisitions
As previously announced, the Company currently has three
additional hotels under contract for purchase for a combined total
anticipated gross purchase price of approximately $212 million. The
hotels currently under contract for purchase include:
- The 192-room Embassy Suites by Hilton South Jordan Salt Lake
City for a total purchase price of approximately $36.8 million, or
$191,000 per key, which the Company anticipates acquiring during
the fourth quarter 2023.
- An Embassy Suites by Hilton currently under development in
downtown Madison, Wisconsin, for an anticipated total purchase
price of approximately $78.6 million with an expected 260 rooms,
which the Company anticipates acquiring in mid-2024 following
completion of construction.
- A Motto by Hilton to be developed in downtown Nashville,
Tennessee, for an anticipated total purchase price of approximately
$96.7 million with an expected 256 rooms, which the Company
anticipates acquiring in 2025 following completion of
construction.
There are many conditions to closing on each of these hotels
that have not yet been satisfied, and there can be no assurance
that closings on these hotels will occur under the outstanding
purchase contracts.
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, 2023, the Company invested approximately $42 million
in capital expenditures. The Company anticipates investing
approximately $70 million to $80 million in capital improvements
during 2023, which includes comprehensive renovation projects for
approximately 20 to 25 hotels.
Balance Sheet and
Liquidity
Summary
As of September 30, 2023, the Company had approximately $1.4
billion of total outstanding debt with a current combined
weighted-average interest rate of approximately 4.3%, cash on hand
of approximately $35 million and availability under its revolving
credit facility of approximately $650 million. Excluding
unamortized debt issuance costs and fair value adjustments, the
Company’s total outstanding debt as of September 30, 2023, was
comprised of approximately $285 million in property-level debt
secured by 15 hotels and approximately $1.1 billion outstanding
under its unsecured credit facilities. The number of unencumbered
hotels in the Company’s portfolio as of September 30, 2023, was
205. The Company’s total debt to total capitalization, net of cash
and cash equivalents at September 30, 2023, was approximately 28%,
which provides Apple Hospitality with financial flexibility to fund
capital requirements and pursue opportunities in the marketplace.
On July 19, 2023, the Company entered into an amendment of its $225
million term loan facility, which extended the maturity date of the
existing $50 million term loan by two years to August 2, 2025. As
of September 30, 2023, the Company’s weighted-average debt
maturities were 4.0 years.
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 nine months ended September 30, 2023, the Company purchased,
under its Share Repurchase Program, approximately 0.5 million of
its common shares at a weighted-average market purchase price of
approximately $14.34 per common share, for an aggregate purchase
price of approximately $7 million. Shares were repurchased in open
market transactions under the Share Repurchase Program, including
pursuant to written trading plans intended to comply with Rule
10b5-1 under the Securities Exchange Act of 1934, as amended. As of
September 30, 2023, the Company had approximately $335 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, 2023, the Company had
approximately $224 million remaining under its ATM Program for the
issuance of shares. No shares were sold under the ATM program
during the nine months ended September 30, 2023.
Shareholder
Distributions
During the three months ended September 30, 2023, the Company
paid distributions totaling $0.24 per common share. Based on the
Company’s common stock closing price of $16.86 on November 3, 2023,
the current annualized monthly cash distribution of $0.96 per
common share represents an annual yield of approximately 5.7%.
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 2023 Outlook
The Company is updating its operational and financial outlook
for 2023. This outlook, which is based on management’s current view
of both operating and economic fundamentals of the Company's
existing portfolio of hotels, does not take into account any
unanticipated developments in its business or changes in its
operating environment, nor does it take into account any
unannounced hotel acquisitions or dispositions. As compared to
previously provided 2023 guidance, the Company is adjusting: Net
income by increasing the low end of the range by $4 million and
decreasing the high end of the range by $13 million; Comparable
Hotels RevPAR Change, which is the change in Comparable Hotels
RevPAR in 2023 compared to 2022, by narrowing the range and
increasing the midpoint of the range by 50 bps; Comparable Hotels
Adjusted Hotel EBITDA Margin % by maintaining the low end and
decreasing the high end of the range by 70 bps; and Adjusted
EBITDAre by decreasing the high end of the range by $12 million
while increasing the low end of the range by $5 million. The
reduction in the midpoint of the Company's guidance for Net Income
and Adjusted EBITDAre is primarily a result of slightly higher than
anticipated operating costs. Comparable Hotels RevPAR Change
guidance and Comparable Hotels Adjusted Hotel EBITDA Margin %
guidance include properties acquired and announced for acquisition
by year-end 2023 as if the hotels were owned as of January 1, 2022,
exclude dispositions and assets held for sale since January 1,
2022, and exclude one non-hotel property leased to third parties.
For the full year 2023, the Company anticipates its 2023 results
will be in the following range:
Updated 2023
Guidance(1)
Low-End
High-End
Net income
$167 Million
$189 Million
Comparable Hotels RevPAR Change
5.5%
7.5%
Comparable Hotels Adjusted Hotel EBITDA
Margin %
35.4%
36.3%
Adjusted EBITDAre
$423 Million
$440 Million
Capital expenditures
$70 Million
$80 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 2023 Earnings Conference
Call
The Company will host a quarterly conference call for investors
and interested parties at 10 a.m. Eastern Time on Wednesday,
November 8, 2023. 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 8, 2023, through
11:59 p.m. Eastern Time on November 22, 2023. 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 13740906. 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 223 hotels
with more than 29,400 guest rooms located in 87 markets throughout
37 states as well as one property leased to third parties.
Concentrated with industry-leading brands, the Company’s hotel
portfolio consists of 99 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, travel-related health concerns, including
COVID-19 or other 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 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, 2022. 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,
2023
2022
(unaudited)
Assets
Investment in real estate, net of
accumulated depreciation and amortization of $1,629,340 and
$1,492,097, respectively
$4,548,787
$4,610,962
Cash and cash equivalents
35,366
4,077
Restricted cash-furniture, fixtures and
other escrows
33,697
39,435
Due from third-party managers, net
60,801
43,331
Other assets, net
85,391
74,909
Total Assets
$4,764,042
$4,772,714
Liabilities
Debt, net
$1,373,268
$1,366,249
Finance lease liabilities
111,943
112,006
Accounts payable and other liabilities
104,920
116,064
Total Liabilities
1,590,131
1,594,319
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 228,807,202 and
228,644,861 shares, respectively
4,580,193
4,577,022
Accumulated other comprehensive income
37,411
36,881
Distributions greater than net income
(1,443,693)
(1,435,508)
Total Shareholders' Equity
3,173,911
3,178,395
Total Liabilities and Shareholders'
Equity
$4,764,042
$4,772,714
_______________________
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,
2023.
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,
2023
2022
2023
2022
Revenues:
Room
$
327,121
$
315,940
$
943,684
$
866,286
Food and beverage
13,576
11,870
42,032
32,353
Other
17,563
13,340
45,628
40,657
Total revenue
358,260
341,150
1,031,344
939,296
Expenses:
Hotel operating expense:
Operating
85,829
81,320
249,403
221,715
Hotel administrative
29,172
27,516
85,933
78,711
Sales and marketing
30,770
28,533
89,406
78,494
Utilities
13,797
13,383
36,271
34,226
Repair and maintenance
16,336
15,632
48,452
43,468
Franchise fees
15,895
14,949
45,407
41,015
Management fees
11,911
11,734
34,516
31,955
Total hotel operating expense
203,710
193,067
589,388
529,584
Property taxes, insurance and other
21,678
19,052
61,347
56,510
General and administrative
11,079
10,271
34,640
30,216
Depreciation and amortization
45,498
45,135
137,398
135,781
Total expense
281,965
267,525
822,773
752,091
Gain on sale of real estate
-
1,785
-
1,785
Operating income
76,295
75,410
208,571
188,990
Interest and other expense, net
(17,470
)
(14,933
)
(50,973
)
(44,785
)
Income before income taxes
58,825
60,477
157,598
144,205
Income tax expense
(313
)
(1,331
)
(874
)
(1,712
)
Net income
$
58,512
$
59,146
$
156,724
$
142,493
Other comprehensive income:
Interest rate derivatives
1,412
16,024
530
53,862
Comprehensive income
$
59,924
$
75,170
$
157,254
$
196,355
Basic and diluted net income per common
share
$
0.26
$
0.26
$
0.68
$
0.62
Weighted average common shares outstanding
- basic and diluted
228,877
228,991
229,103
228,992
_______________________
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, 2023.
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
2023
2022
2022
2023
2022
2022
Operating income (Actual)
$76,295
$75,410
1.2%
$208,571
$188,990
10.4%
Operating margin % (Actual)
21.3%
22.1%
(80 bps)
20.2%
20.1%
10 bps
Comparable Hotels Total Revenue
$356,248
$342,913
3.9%
$1,026,907
$944,641
8.7%
Comparable Hotels Total Operating
Expenses
224,087
211,802
5.8%
645,356
584,992
10.3%
Comparable Hotels Adjusted Hotel
EBITDA
$132,161
$131,111
0.8%
$381,551
$359,649
6.1%
Comparable Hotels Adjusted Hotel EBITDA
Margin %
37.1%
38.2%
(110 bps)
37.2%
38.1%
(90 bps)
ADR (Comparable Hotels)
$159.36
$157.65
1.1%
$157.54
$149.98
5.0%
Occupancy (Comparable Hotels)
77.1%
75.7%
1.8%
75.8%
73.5%
3.1%
RevPAR (Comparable Hotels)
$122.91
$119.31
3.0%
$119.34
$110.23
8.3%
ADR (Actual)
$159.36
$157.91
0.9%
$157.61
$150.02
5.1%
Occupancy (Actual)
77.1%
75.7%
1.8%
75.8%
73.6%
3.0%
RevPAR (Actual)
$122.91
$119.52
2.8%
$119.48
$110.40
8.2%
Reconciliation to Actual
Results
Total Revenue (Actual)
$358,260
$341,150
$1,031,344
$939,296
Revenue from acquisitions prior to
ownership
-
6,426
3,298
16,910
Revenue from dispositions
-
(454)
-
(1,617)
Revenue from non-hotel property
(2,012)
(4,209)
(7,735)
(9,948)
Comparable Hotels Total Revenue
$356,248
$342,913
$1,026,907
$944,641
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$132,161
$129,166
$380,154
$353,617
AHEBITDA from acquisitions prior to
ownership
-
2,639
823
6,509
AHEBITDA from dispositions
-
(77)
-
(459)
AHEBITDA from non-hotel property (2)
-
(617)
574
(18)
Comparable Hotels AHEBITDA
$132,161
$131,111
$381,551
$359,649
_______________________
(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, for 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
Company's independent boutique hotel in New York, New York prior to
its lease to a third-party hotel operator for all hotel operations
in the first half of 2023.
Note: Comparable Hotels is defined
as the 220 hotels owned by the Company as of September 30, 2023,
and excludes one non-hotel property leased to third parties. For
hotels acquired during the periods noted, the Company has included,
as applicable, results of those hotels for periods prior to the
Company's ownership, and for dispositions, results have been
excluded for the Company's period of ownership. Results for periods
prior to the Company's ownership have not been included in the
Company's actual Consolidated Financial Statements and are included
only for comparison purposes. Results included for periods prior to
the Company's ownership are based on information from the prior
owner of each hotel and have not been audited or adjusted.
Reconciliation of net income to non-GAAP
financial measures is included in the following pages.
Apple Hospitality REIT,
Inc.
Comparable Hotels Quarterly
Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except
statistical data)
2022
2023
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Operating income (Actual)
$32,835
$80,745
$75,410
$17,488
$49,247
$83,029
$76,295
Operating margin % (Actual)
12.6%
23.9%
22.1%
5.8%
15.8%
23.0%
21.3%
Comparable Hotels Total Revenue
$261,854
$339,874
$342,913
$296,628
$310,009
$360,650
$356,248
Comparable Hotels Total Operating
Expenses
172,230
200,960
211,802
195,379
202,277
218,992
224,087
Comparable Hotels Adjusted Hotel
EBITDA
$89,624
$138,914
$131,111
$101,249
$107,732
$141,658
$132,161
Comparable Hotels Adjusted Hotel EBITDA
Margin %
34.2%
40.9%
38.2%
34.1%
34.8%
39.3%
37.1%
ADR (Comparable Hotels)
$137.12
$153.39
$157.65
$146.34
$152.02
$160.75
$159.36
Occupancy (Comparable Hotels)
66.9%
77.8%
75.7%
69.6%
71.9%
78.2%
77.1%
RevPAR (Comparable Hotels)
$91.79
$119.28
$119.31
$101.84
$109.31
$125.64
$122.91
ADR (Actual)
$137.03
$153.35
$157.91
$147.30
$152.01
$160.98
$159.36
Occupancy (Actual)
67.1%
77.9%
75.7%
69.7%
72.0%
78.2%
77.1%
RevPAR (Actual)
$91.98
$119.41
$119.52
$102.71
$109.46
$125.96
$122.91
Reconciliation to Actual
Results
Total Revenue (Actual)
$260,478
$337,668
$341,150
$299,121
$311,454
$361,630
$358,260
Revenue from acquisitions prior to
ownership
3,821
6,663
6,426
2,893
1,398
1,900
-
Revenue from dispositions
(500)
(663)
(454)
-
-
-
-
Revenue from non-hotel property
(1,945)
(3,794)
(4,209)
(5,386)
(2,843)
(2,880)
(2,012)
Comparable Hotels Total Revenue
$261,854
$339,874
$342,913
$296,628
$310,009
$360,650
$356,248
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$87,936
$136,515
$129,166
$101,962
$106,749
$141,244
$132,161
AHEBITDA from acquisitions prior to
ownership
910
2,960
2,639
1,007
187
636
-
AHEBITDA from dispositions
(143)
(239)
(77)
(169)
-
-
-
AHEBITDA from non-hotel property (2)
921
(322)
(617)
(1,551)
796
(222)
-
Comparable Hotels AHEBITDA
$89,624
$138,914
$131,111
$101,249
$107,732
$141,658
$132,161
_______________________
(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, for 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
Company's independent boutique hotel in New York, New York prior to
its lease to a third-party hotel operator for all hotel operations
in the first half of 2023.
Note: Comparable Hotels is defined as the 220 hotels owned
by the Company as of September 30, 2023, and excludes one non-hotel
property leased to third parties. For hotels acquired during the
periods noted, the Company has included, as applicable, results of
those hotels for periods prior to the Company's ownership, and for
dispositions, results have been excluded for the Company's period
of ownership. Results for periods prior to the Company's ownership
have not been included in the Company's actual Consolidated
Financial Statements and are included only for comparison purposes.
Results included for periods prior to the Company's ownership are
based on information from the prior owner of each hotel and have
not been audited or adjusted.
Reconciliation of net income to non-GAAP financial measures is
included in the following pages.
Apple Hospitality REIT,
Inc.
Same Store Hotels Operating
Metrics and Statistical Data
(Unaudited)
(in thousands, except
statistical data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
% Change
% Change
2023
2022
2022
2023
2022
2022
Operating income (Actual)
$76,295
$75,410
1.2%
$208,571
$188,990
10.4%
Operating margin % (Actual)
21.3%
22.1%
(80 bps)
20.2%
20.1%
10 bps
Same Store Hotels Total Revenue
$349,519
$336,487
3.9%
$1,008,320
$927,731
8.7%
Same Store Hotels Total Operating
Expenses
220,367
208,015
5.9%
634,352
574,591
10.4%
Same Store Hotels Adjusted Hotel
EBITDA
$129,152
$128,472
0.5%
$373,968
$353,140
5.9%
Same Store Hotels Adjusted Hotel EBITDA
Margin %
37.0%
38.2%
(120 bps)
37.1%
38.1%
(100 bps)
ADR (Same Store Hotels)
$158.92
$157.34
1.0%
$157.16
$149.67
5.0%
Occupancy (Same Store Hotels)
77.2%
75.7%
2.0%
75.8%
73.6%
3.0%
RevPAR (Same Store Hotels)
$122.64
$119.08
3.0%
$119.18
$110.15
8.2%
ADR (Actual)
$159.36
$157.91
0.9%
$157.61
$150.02
5.1%
Occupancy (Actual)
77.1%
75.7%
1.8%
75.8%
73.6%
3.0%
RevPAR (Actual)
$122.91
$119.52
2.8%
$119.48
$110.40
8.2%
Reconciliation to
Actual Results
Total Revenue (Actual)
$358,260
$341,150
$1,031,344
$939,296
Revenue from acquisitions
(6,729)
-
(15,289)
-
Revenue from dispositions
-
(454)
-
(1,617)
Revenue from non-hotel property
(2,012)
(4,209)
(7,735)
(9,948)
Same Store Hotels Total Revenue
$349,519
$336,487
$1,008,320
$927,731
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$132,161
$129,166
$380,154
$353,617
AHEBITDA from acquisitions
(3,009)
-
(6,760)
-
AHEBITDA from dispositions
-
(77)
-
(459)
AHEBITDA from non-hotel property (2)
-
(617)
574
(18)
Same Store Hotels AHEBITDA
$129,152
$128,472
$373,968
$353,140
_______________________
(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, for 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
Company's independent boutique hotel in New York, New York prior to
its lease to a third-party hotel operator for all hotel operations
in the first half of 2023.
Note: Same Store Hotels is defined as the 217 hotels owned
by the Company as of January 1, 2022, and during the entirety of
the periods being compared, and excludes one non-hotel property
leased to third parties. 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)
2022
2023
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Operating income (Actual)
$32,835
$80,745
$75,410
$17,488
$49,247
$83,029
$76,295
Operating margin % (Actual)
12.6%
23.9%
22.1%
5.8%
15.8%
23.0%
21.3%
Same Store Hotels Total Revenue
$258,033
$333,211
$336,487
$291,368
$305,320
$353,481
$349,519
Same Store Hotels Total Operating
Expenses
169,319
197,257
208,015
192,312
198,834
215,151
220,367
Same Store Hotels Adjusted Hotel
EBITDA
$88,714
$135,954
$128,472
$99,056
$106,486
$138,330
$129,152
Same Store Hotels Adjusted Hotel EBITDA
Margin %
34.4%
40.8%
38.2%
34.0%
34.9%
39.1%
37.0%
ADR (Same Store Hotels)
$137.01
$152.92
$157.34
$146.02
$151.99
$160.11
$158.92
Occupancy (Same Store Hotels)
67.2%
77.8%
75.7%
69.7%
72.0%
78.2%
77.2%
RevPAR (Same Store Hotels)
$92.03
$119.04
$119.08
$101.76
$109.51
$125.24
$122.64
ADR (Actual)
$137.03
$153.35
$157.91
$147.30
$152.01
$160.98
$159.36
Occupancy (Actual)
67.1%
77.9%
75.7%
69.7%
72.0%
78.2%
77.1%
RevPAR (Actual)
$91.98
$119.41
$119.52
$102.71
$109.46
$125.96
$122.91
Reconciliation to Actual
Results
Total Revenue (Actual)
$260,478
$337,668
$341,150
$299,121
$311,454
$361,630
$358,260
Revenue from acquisitions
-
-
-
(2,367)
(3,291)
(5,269)
(6,729)
Revenue from dispositions
(500)
(663)
(454)
-
-
-
-
Revenue from non-hotel property
(1,945)
(3,794)
(4,209)
(5,386)
(2,843)
(2,880)
(2,012)
Same Store Hotels Total Revenue
$258,033
$333,211
$336,487
$291,368
$305,320
$353,481
$349,519
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$87,936
$136,515
$129,166
$101,962
$106,749
$141,244
$132,161
AHEBITDA from acquisitions
-
-
-
(1,186)
(1,059)
(2,692)
(3,009)
AHEBITDA from dispositions
(143)
(239)
(77)
(169)
-
-
-
AHEBITDA from non-hotel property (2)
921
(322)
(617)
(1,551)
796
(222)
-
Same Store Hotels AHEBITDA
$88,714
$135,954
$128,472
$99,056
$106,486
$138,330
$129,152
_______________________
(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, for 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
Company's independent boutique hotel in New York, New York prior to
its lease to a third-party hotel operator for all hotel operations
in the first half of 2023.
Note: Same Store Hotels is defined as the 217 hotels owned
by the Company as of January 1, 2022, and during the entirety of
the periods being compared, and excludes one non-hotel property
leased to third parties. 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 its 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 2022 and 2023:
2022
2023
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Net income
$18,002
$65,345
$59,146
$2,312
$32,923
$65,289
$58,512
Depreciation and amortization
45,324
45,322
45,135
45,916
45,906
45,994
45,498
Amortization of favorable and unfavorable
operating leases, net
99
103
97
97
97
85
99
Interest and other expense, net
14,654
15,198
14,933
14,948
16,004
17,499
17,470
Income tax expense
179
202
1,331
228
320
241
313
EBITDA
78,258
126,170
120,642
63,501
95,250
129,108
121,892
Gain on sale of real estate
-
-
(1,785)
-
-
-
-
Loss on impairment of depreciable real
estate assets
-
-
-
26,175
-
-
-
EBITDAre
78,258
126,170
118,857
89,676
95,250
129,108
121,892
Non-cash straight-line operating ground
lease expense
40
38
38
38
38
36
35
Adjusted EBITDAre
78,298
126,208
118,895
89,714
95,288
129,144
121,927
General and administrative expense
9,638
10,307
10,271
12,248
11,461
12,100
11,079
Adjusted EBITDAre from non-hotel property
(1)
-
-
-
-
-
-
(845)
Adjusted Hotel EBITDA
$87,936
$136,515
$129,166
$101,962
$106,749
$141,244
$132,161
(1)
Non-hotel property only includes the
results of one hotel in New York, New York that is leased to a
third-party hotel operator. 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, 2023
and 2022:
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net income
$58,512
$59,146
$156,724
$142,493
Depreciation of real estate owned
44,734
44,372
135,105
133,489
Gain on sale of real estate
-
(1,785)
-
(1,785)
Funds from operations
103,246
101,733
291,829
274,197
Amortization of finance ground lease
assets
759
759
2,278
2,278
Amortization of favorable and unfavorable
operating leases, net
99
97
281
299
Non-cash straight-line operating ground
lease expense
35
38
109
116
Modified funds from operations
$104,139
$102,627
$294,497
$276,890
Apple Hospitality REIT, Inc. 2023
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 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, 2022.
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, 2023:
Year Ending December 31,
2023
Low-End
High-End
Net income
$166,973
$188,773
Depreciation and amortization
184,000
181,000
Amortization of favorable and unfavorable
leases, net
405
405
Interest and other expense, net
71,000
69,000
Income tax expense
700
1,100
EBITDA and EBITDAre
$423,078
$440,278
Non-cash straight-line operating ground
lease expense
145
145
Adjusted EBITDAre
$423,223
$440,423
General and administrative expense
40,000
45,000
AEBITDAre from non-hotel property (1)
(1,000)
(2,000)
Adjusted Hotel EBITDA
$462,223
$483,423
AHEBITDA from acquisitions prior to
ownership (2)
14,603
14,603
AHEBITDA from non-hotel property (3)
574
574
Comparable Hotels Adjusted Hotel
EBITDA
$477,400
$498,600
_______________________
(1)
Represents Adjusted EBITDAre from one
non-hotel property for the second half of 2023.
(2)
Results for periods prior to the Company's
ownership have not been included in the Company's actual
Consolidated Financial Statements and are included only for
comparison purposes. Results included for periods prior to the
Company's ownership are based on information from the prior owner
of each hotel and have not been audited or adjusted.
(3)
Represents Adjusted Hotel EBITDA from the
Company's independent boutique hotel in New York, New York for the
first half of 2023, prior to its lease to a third-party hotel
operator for all hotel operations.
Apple Hospitality REIT,
Inc.
Debt Summary
(Unaudited)
($ in thousands)
September 30, 2023
October 1 -
December 31,
Fair Market
2023
2024
2025
2026
2027
Thereafter
Total
Value
Total debt:
Maturities
$
2,245
$
113,597
$
295,140
$
74,649
$
278,602
$
616,014
$
1,380,247
$
1,316,664
Average interest rates (1)
4.3
%
4.7
%
5.0
%
5.3
%
5.3
%
5.0
%
Variable-rate debt:
Maturities
$
-
$
85,000
$
225,000
$
-
$
275,000
$
385,000
$
970,000
$
967,526
Average interest rates (1)
4.5
%
4.9
%
5.5
%
5.8
%
5.9
%
5.6
%
Fixed-rate debt:
Maturities
$
2,245
$
28,597
$
70,140
$
74,649
$
3,602
$
231,014
$
410,247
$
349,138
Average interest rates
4.1
%
4.1
%
4.0
%
4.0
%
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, 2023.
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 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
Top 20 Markets
San Diego, CA
7
81.5%
83.7%
(2.6%)
$209.81
$202.53
3.6%
$171.05
$169.60
0.9%
6.7%
Portland, ME
3
93.4%
92.2%
1.3%
$310.50
$306.72
1.2%
$289.95
$282.70
2.6%
6.6%
Los Angeles, CA
8
88.4%
86.0%
2.8%
$192.58
$189.86
1.4%
$170.21
$163.34
4.2%
5.6%
Chicago, IL
7
76.4%
72.3%
5.7%
$146.84
$145.11
1.2%
$112.18
$104.87
7.0%
4.1%
Seattle, WA
3
88.8%
86.1%
3.1%
$233.41
$227.93
2.4%
$207.23
$196.17
5.6%
3.9%
Orange County, CA
6
84.0%
81.9%
2.6%
$175.13
$180.37
(2.9%)
$147.15
$147.64
(0.3%)
3.9%
Norfolk/Virginia Beach, VA
4
85.3%
85.9%
(0.7%)
$230.22
$234.72
(1.9%)
$196.28
$201.54
(2.6%)
3.5%
Alaska
2
93.2%
96.7%
(3.6%)
$302.93
$281.70
7.5%
$282.23
$272.32
3.6%
3.3%
Nashville, TN
5
86.9%
80.1%
8.5%
$154.30
$163.16
(5.4%)
$134.06
$130.66
2.6%
2.9%
North Carolina East
4
82.3%
76.1%
8.1%
$179.48
$179.74
(0.1%)
$147.77
$136.77
8.0%
2.6%
Fort Worth/Arlington, TX
6
76.9%
76.5%
0.5%
$151.38
$147.60
2.6%
$116.44
$112.89
3.1%
2.3%
Phoenix, AZ
10
69.1%
64.0%
8.0%
$114.42
$111.09
3.0%
$79.05
$71.05
11.3%
1.9%
Denver, CO
3
79.6%
82.2%
(3.2%)
$182.89
$172.07
6.3%
$145.63
$141.44
3.0%
1.9%
Richmond/Petersburg, VA
3
68.2%
65.7%
3.8%
$178.64
$176.86
1.0%
$121.81
$116.28
4.8%
1.8%
Melbourne, FL
3
78.5%
84.4%
(7.0%)
$181.66
$174.58
4.1%
$142.61
$147.36
(3.2%)
1.8%
Omaha, NE
4
69.0%
71.0%
(2.8%)
$137.07
$132.60
3.4%
$94.54
$94.18
0.4%
1.6%
Washington, DC
4
76.5%
71.0%
7.7%
$143.02
$138.78
3.1%
$109.41
$98.55
11.0%
1.5%
Indiana North
3
77.0%
73.5%
4.8%
$167.10
$157.72
5.9%
$128.65
$115.86
11.0%
1.5%
Alabama North
4
81.3%
85.4%
(4.8%)
$147.95
$130.58
13.3%
$120.26
$111.49
7.9%
1.5%
Pittsburgh, PA
2
75.5%
73.9%
2.2%
$183.52
$188.14
(2.5%)
$138.52
$139.09
(0.4%)
1.4%
Top 20 Markets
91
79.8%
78.1%
2.2%
$180.60
$178.07
1.4%
$144.07
$139.00
3.6%
60.3%
All Other Markets
129
74.9%
73.7%
1.6%
$140.58
$139.70
0.6%
$105.35
$102.97
2.3%
39.7%
Total Portfolio
220
77.1%
75.7%
1.8%
$159.36
$157.65
1.1%
$122.91
$119.31
3.0%
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 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
Top 20 Markets
San Diego, CA
7
78.2%
77.1%
1.4%
$192.65
$180.10
7.0%
$150.71
$138.83
8.6%
5.8%
Phoenix, AZ
10
78.7%
72.1%
9.2%
$162.61
$142.64
14.0%
$127.95
$102.78
24.5%
5.8%
Los Angeles, CA
8
85.1%
84.7%
0.5%
$187.80
$181.11
3.7%
$159.86
$153.45
4.2%
5.4%
Orange County, CA
6
79.6%
77.1%
3.2%
$170.31
$164.74
3.4%
$135.59
$127.07
6.7%
3.7%
Portland, ME
3
76.2%
72.5%
5.1%
$231.78
$236.07
(1.8%)
$176.51
$171.04
3.2%
3.5%
Nashville, TN
5
82.1%
79.8%
2.9%
$163.43
$164.40
(0.6%)
$134.18
$131.21
2.3%
3.0%
Seattle, WA
3
81.8%
78.6%
4.1%
$201.65
$191.68
5.2%
$164.93
$150.73
9.4%
3.0%
Fort Worth/Arlington, TX
6
80.4%
79.2%
1.5%
$157.22
$147.19
6.8%
$126.42
$116.60
8.4%
2.9%
Chicago, IL
7
68.3%
63.9%
6.9%
$139.73
$133.19
4.9%
$95.48
$85.07
12.2%
2.6%
Alaska
2
85.2%
89.9%
(5.2%)
$261.87
$230.57
13.6%
$222.99
$207.28
7.6%
2.5%
Norfolk/Virginia Beach, VA
4
78.6%
79.1%
(0.6%)
$185.24
$183.81
0.8%
$145.67
$145.32
0.2%
2.3%
Richmond/Petersburg, VA
3
69.5%
65.7%
5.8%
$183.15
$176.70
3.7%
$127.22
$116.13
9.5%
2.3%
Melbourne, FL
3
84.1%
84.6%
(0.6%)
$193.27
$173.49
11.4%
$162.50
$146.74
10.7%
2.3%
Omaha, NE
4
70.3%
65.3%
7.7%
$156.97
$145.68
7.7%
$110.43
$95.19
16.0%
2.2%
North Carolina East
4
78.2%
73.8%
6.0%
$158.12
$157.85
0.2%
$123.66
$116.45
6.2%
2.0%
Washington, DC
4
76.0%
71.9%
5.7%
$146.35
$132.46
10.5%
$111.20
$95.30
16.7%
1.7%
Miami, FL
3
88.3%
81.9%
7.8%
$160.72
$154.31
4.2%
$141.93
$126.45
12.2%
1.7%
Austin, TX
7
73.6%
72.8%
1.1%
$124.30
$124.49
(0.2%)
$91.48
$90.68
0.9%
1.5%
Oklahoma City, OK
4
75.4%
66.2%
13.9%
$137.19
$139.72
(1.8%)
$103.50
$92.45
12.0%
1.5%
Alabama North
4
83.1%
82.3%
1.0%
$144.16
$127.88
12.7%
$119.84
$105.20
13.9%
1.5%
Top 20 Markets
97
77.9%
74.9%
4.0%
$169.88
$161.77
5.0%
$132.29
$121.15
9.2%
57.2%
All Other Markets
123
73.8%
72.2%
2.2%
$145.62
$138.79
4.9%
$107.47
$100.23
7.2%
42.8%
Total Portfolio
220
75.8%
73.5%
3.1%
$157.54
$149.98
5.0%
$119.34
$110.23
8.3%
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 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
STR Region
East North Central
16
75.7%
73.0%
3.7%
$156.35
$151.74
3.0%
$118.35
$110.78
6.8%
8.6%
East South Central
27
79.2%
76.6%
3.4%
$147.50
$145.31
1.5%
$116.82
$111.35
4.9%
10.3%
Middle Atlantic
12
78.8%
77.9%
1.2%
$163.16
$161.45
1.1%
$128.53
$125.72
2.2%
5.9%
Mountain
21
75.2%
72.1%
4.3%
$135.89
$131.83
3.1%
$102.17
$95.01
7.5%
7.2%
New England
6
87.9%
88.5%
(0.7%)
$259.91
$252.50
2.9%
$228.49
$223.53
2.2%
7.8%
Pacific
32
84.7%
84.1%
0.7%
$202.25
$200.22
1.0%
$171.32
$168.32
1.8%
26.0%
South Atlantic
53
76.0%
74.7%
1.7%
$151.08
$152.31
(0.8%)
$114.86
$113.85
0.9%
19.8%
West North Central
17
72.0%
72.6%
(0.8%)
$142.08
$138.25
2.8%
$102.37
$100.30
2.1%
5.6%
West South Central
36
71.4%
69.8%
2.3%
$129.33
$127.69
1.3%
$92.41
$89.18
3.6%
8.8%
Total Portfolio
220
77.1%
75.7%
1.8%
$159.36
$157.65
1.1%
$122.91
$119.31
3.0%
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 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
STR Region
East North Central
16
67.6%
64.6%
4.6%
$145.98
$137.49
6.2%
$98.67
$88.81
11.1%
5.8%
East South Central
27
78.2%
75.9%
3.0%
$149.01
$144.07
3.4%
$116.56
$109.32
6.6%
10.6%
Middle Atlantic
12
74.1%
71.6%
3.5%
$154.55
$148.93
3.8%
$114.58
$106.58
7.5%
5.1%
Mountain
21
78.4%
74.4%
5.4%
$155.47
$140.08
11.0%
$121.86
$104.28
16.9%
10.8%
New England
6
73.6%
73.3%
0.4%
$206.35
$199.89
3.2%
$151.84
$146.42
3.7%
4.4%
Pacific
32
80.5%
79.4%
1.4%
$189.44
$180.60
4.9%
$152.49
$143.49
6.3%
23.2%
South Atlantic
53
77.2%
75.3%
2.5%
$155.66
$149.23
4.3%
$120.16
$112.37
6.9%
23.1%
West North Central
17
69.8%
68.1%
2.5%
$144.71
$135.35
6.9%
$101.00
$92.13
9.6%
5.6%
West South Central
36
73.6%
70.5%
4.4%
$134.72
$129.60
4.0%
$99.13
$91.43
8.4%
11.4%
Total Portfolio
220
75.8%
73.5%
3.1%
$157.54
$149.98
5.0%
$119.34
$110.23
8.3%
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 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
Upscale
AC Hotels
3
84.0%
86.7%
(3.1%)
$270.09
$253.02
6.7%
$226.95
$219.33
3.5%
4.7%
Aloft
1
90.9%
89.2%
1.9%
$269.79
$280.99
(4.0%)
$245.36
$250.55
(2.1%)
1.5%
Courtyard
34
75.5%
73.3%
3.0%
$171.58
$169.42
1.3%
$129.60
$124.13
4.4%
19.2%
Hilton Garden Inn
40
74.5%
74.6%
(0.1%)
$152.06
$151.46
0.4%
$113.25
$113.02
0.2%
17.3%
Homewood Suites
30
82.4%
80.3%
2.6%
$147.37
$143.93
2.4%
$121.49
$115.60
5.1%
9.9%
Hyatt House
1
68.7%
62.2%
10.5%
$124.55
$116.29
7.1%
$85.58
$72.32
18.3%
0.2%
Hyatt Place
3
73.4%
71.3%
2.9%
$128.12
$124.69
2.8%
$94.00
$88.95
5.7%
0.7%
Residence Inn
29
83.4%
81.4%
2.5%
$174.53
$170.71
2.2%
$145.58
$138.99
4.7%
16.7%
SpringHill Suites
9
74.5%
68.4%
8.9%
$142.55
$137.86
3.4%
$106.20
$94.33
12.6%
3.3%
Upscale Total
150
78.0%
76.4%
2.1%
$163.05
$160.46
1.6%
$127.22
$122.55
3.8%
73.5%
Upper Midscale
Fairfield
10
71.4%
68.7%
3.9%
$130.96
$128.85
1.6%
$93.50
$88.54
5.6%
2.6%
Hampton
37
75.0%
73.7%
1.8%
$151.19
$153.50
(1.5%)
$113.36
$113.05
0.3%
13.8%
Home2 Suites
10
86.6%
83.9%
3.2%
$156.83
$161.18
(2.7%)
$135.77
$135.16
0.5%
4.8%
TownePlace Suites
9
74.0%
78.7%
(6.0%)
$119.69
$119.09
0.5%
$88.52
$93.75
(5.6%)
2.1%
Upper Midscale Total
66
75.9%
74.9%
1.3%
$145.82
$147.28
(1.0%)
$110.75
$110.34
0.4%
23.3%
Upper Upscale
Embassy Suites
2
86.3%
91.1%
(5.3%)
$260.74
$234.97
11.0%
$225.03
$214.09
5.1%
2.4%
Marriott
2
59.7%
55.7%
7.2%
$159.88
$155.81
2.6%
$95.39
$86.82
9.9%
0.8%
Upper Upscale Total
4
68.7%
67.7%
1.5%
$202.72
$191.82
5.7%
$139.20
$129.83
7.2%
3.2%
Total Portfolio
220
77.1%
75.7%
1.8%
$159.36
$157.65
1.1%
$122.91
$119.31
3.0%
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 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
Upscale
AC Hotels
3
76.0%
72.9%
4.3%
$220.55
$210.49
4.8%
$167.70
$153.51
9.2%
3.2%
Aloft
1
72.5%
64.8%
11.9%
$203.63
$226.92
(10.3%)
$147.63
$146.94
0.5%
0.7%
Courtyard
34
73.7%
70.8%
4.1%
$164.40
$156.80
4.8%
$121.18
$110.97
9.2%
18.4%
Hilton Garden Inn
40
73.0%
70.7%
3.3%
$152.45
$146.39
4.1%
$111.36
$103.46
7.6%
17.3%
Homewood Suites
30
82.2%
81.3%
1.1%
$151.15
$143.02
5.7%
$124.22
$116.30
6.8%
11.6%
Hyatt House
1
77.3%
71.0%
8.9%
$172.20
$141.56
21.6%
$133.09
$100.48
32.5%
0.5%
Hyatt Place
3
77.8%
73.1%
6.4%
$149.16
$139.64
6.8%
$116.05
$102.06
13.7%
1.2%
Residence Inn
29
79.0%
79.4%
(0.5%)
$165.96
$157.14
5.6%
$131.08
$124.82
5.0%
14.7%
SpringHill Suites
9
74.9%
69.4%
7.9%
$144.56
$134.53
7.5%
$108.23
$93.37
15.9%
3.4%
Upscale Total
150
76.2%
74.1%
2.8%
$159.09
$151.43
5.1%
$121.16
$112.20
8.0%
71.0%
Upper Midscale
Fairfield
10
71.2%
67.9%
4.9%
$132.08
$126.45
4.5%
$94.05
$85.83
9.6%
2.7%
Hampton
37
73.8%
70.6%
4.5%
$155.99
$149.55
4.3%
$115.14
$105.56
9.1%
15.1%
Home2 Suites
10
85.4%
82.5%
3.5%
$161.08
$153.20
5.1%
$137.49
$126.37
8.8%
5.1%
TownePlace Suites
9
77.6%
80.0%
(3.0%)
$123.60
$118.87
4.0%
$95.91
$95.10
0.9%
2.6%
Upper Midscale Total
66
75.5%
72.9%
3.6%
$149.71
$143.16
4.6%
$112.97
$104.37
8.2%
25.5%
Upper Upscale
Embassy Suites
2
85.3%
88.6%
(3.7%)
$239.60
$212.04
13.0%
$204.32
$187.89
8.7%
2.1%
Marriott
2
61.8%
54.6%
13.2%
$166.29
$157.14
5.8%
$102.75
$85.84
19.7%
1.4%
Upper Upscale Total
4
69.7%
66.1%
5.4%
$196.59
$182.00
8.0%
$137.08
$120.33
13.9%
3.5%
Total Portfolio
220
75.8%
73.5%
3.1%
$157.54
$149.98
5.0%
$119.34
$110.23
8.3%
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 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
Q3 2022
% Change
Q3 2023
STR Location
Airport
18
79.8%
77.0%
3.6%
$134.73
$133.98
0.6%
$107.50
$103.10
4.3%
5.5%
Interstate
4
72.6%
72.8%
(0.3%)
$122.26
$117.28
4.2%
$88.73
$85.42
3.9%
1.1%
Resort
11
72.2%
72.7%
(0.7%)
$176.03
$180.21
(2.3%)
$127.08
$130.94
(2.9%)
5.7%
Small Metro/Town
11
77.4%
74.3%
4.2%
$127.60
$121.21
5.3%
$98.78
$90.02
9.7%
3.4%
Suburban
125
77.6%
76.3%
1.7%
$153.81
$150.99
1.9%
$119.40
$115.18
3.7%
49.2%
Urban
51
76.6%
75.1%
2.0%
$182.19
$181.96
0.1%
$139.48
$136.66
2.1%
35.1%
Total Portfolio
220
77.1%
75.7%
1.8%
$159.36
$157.65
1.1%
$122.91
$119.31
3.0%
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 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
YTD 2022
% Change
YTD 2023
STR Location
Airport
18
80.7%
78.2%
3.2%
$144.86
$135.04
7.3%
$116.88
$105.59
10.7%
7.0%
Interstate
4
70.7%
68.2%
3.7%
$119.87
$116.05
3.3%
$84.79
$79.20
7.1%
1.0%
Resort
11
75.7%
73.8%
2.6%
$175.85
$171.85
2.3%
$133.19
$126.81
5.0%
6.4%
Small Metro/Town
11
79.5%
76.4%
4.1%
$141.17
$125.88
12.1%
$112.24
$96.16
16.7%
4.5%
Suburban
125
75.7%
74.2%
2.0%
$150.64
$143.16
5.2%
$114.09
$106.29
7.3%
48.1%
Urban
51
74.0%
70.4%
5.1%
$176.76
$170.64
3.6%
$130.80
$120.16
8.9%
33.0%
Total Portfolio
220
75.8%
73.5%
3.1%
$157.54
$149.98
5.0%
$119.34
$110.23
8.3%
100.0%
Note: Location categorization based
on STR designation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106251294/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804-727-6321 kclarke@applereit.com
Apple Hospitality REIT (NYSE:APLE)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Apple Hospitality REIT (NYSE:APLE)
Historical Stock Chart
Von Mai 2023 bis Mai 2024