Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or
“Apple Hospitality”) today announced results of operations for the
fourth quarter and full year ended December 31, 2023.
Apple Hospitality REIT,
Inc.
Selected Statistical and
Financial Data
As of and For the Three Months
and Year Ended December 31
(Unaudited) (in thousands,
except statistical and per share amounts)(1)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
% Change
2023
2022
% Change
Net income
$20,765
$2,312
798.1%
$177,489
$144,805
22.6%
Net income per share
$0.09
$0.01
800.0%
$0.77
$0.63
22.2%
Operating income
$38,910
$17,488
122.5%
$247,481
$206,478
19.9%
Operating margin %
12.5%
5.8%
670 bps
18.4%
16.7%
170 bps
Adjusted EBITDAre
$90,536
$89,714
0.9%
$436,895
$413,115
5.8%
Comparable Hotels Adjusted Hotel
EBITDA
$103,667
$105,639
(1.9%)
$500,079
$477,876
4.6%
Comparable Hotels Adjusted Hotel EBITDA
Margin %
32.9%
34.5%
(160 bps)
36.4%
37.3%
(90 bps)
Modified funds from operations (MFFO)
$72,387
$74,534
(2.9%)
$366,884
$351,424
4.4%
MFFO per share
$0.31
$0.33
(6.1%)
$1.60
$1.53
4.6%
Average Daily Rate (ADR) (Actual)
$149.88
$147.30
1.8%
$155.76
$149.36
4.3%
Occupancy (Actual)
69.6%
69.7%
(0.1%)
74.2%
72.6%
2.2%
Revenue Per Available Room (RevPAR)
(Actual)
$104.27
$102.71
1.5%
$115.60
$108.45
6.6%
Comparable Hotels ADR
$150.72
$146.99
2.5%
$156.55
$149.62
4.6%
Comparable Hotels Occupancy
69.7%
69.8%
(0.1%)
74.2%
72.6%
2.2%
Comparable Hotels RevPAR
$105.01
$102.56
2.4%
$116.23
$108.67
7.0%
Distributions paid
$55,164
$52,675
4.7%
$238,283
$139,467
70.9%
Distributions paid per share
$0.24
$0.23
4.3%
$1.04
$0.61
70.5%
Cash and cash equivalents
$10,287
Total debt outstanding
$1,378,002
Total debt outstanding, net of cash and
cash equivalents
$1,367,715
Total debt outstanding, net of cash and
cash equivalents, to total capitalization (2)
25.4%
____________________
(1)
Explanations of and reconciliations to net
income determined in accordance with generally accepted accounting
principles (“GAAP”) of non-GAAP financial measures, Adjusted
EBITDAre, Comparable Hotels Adjusted Hotel EBITDA and MFFO, are
included below.
(2)
Total debt outstanding, net of cash and
cash equivalents ("net total debt outstanding"), divided by net
total debt outstanding plus equity market capitalization based on
the Company’s closing share price of $16.61 on December 31,
2023.
Comparable Hotels is defined as the 223 hotels owned and held for
use by the Company as of December 31, 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 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 continued strength in leisure demand and steady
improvements in business travel, we are pleased to report
Comparable Hotels RevPAR growth of more than 2% for the fourth
quarter 2023 and 7% for the full year 2023, as compared to the same
periods of 2022. Comparable Hotels RevPAR was up approximately 8%
relative to both the fourth quarter and full year 2019, with
Comparable Hotels Occupancy still below pre-pandemic levels. Our
revenue and asset management teams continue to leverage our scale
ownership of rooms-focused hotels and the access to performance
data that our platform provides to maximize profitability across
our hotels, driving strong margins despite continued inflationary
and wage pressures. As we look ahead, the fundamentals of our
business remain favorable, with continued strength in both business
and leisure demand bolstered by limited near-term supply
growth."
Mr. Knight continued, “During the fourth quarter, we acquired
five high-quality hotels located in dynamic and growing markets
that complement our existing portfolio and reflect our proven
investment strategy. Our effective capital raise in the quarter
enabled us to complete these transactions while maintaining the
strength and flexibility of our balance sheet, positioning us for
continued external growth as strategic opportunities arise. We
currently have two hotels under contract for purchase and continue
to underwrite numerous potential opportunities that will further
enhance our unique and scalable platform and maximize long-term
value for our shareholders. Our accomplishments in 2023 and our
outperformance since the onset of the pandemic are a testament to
the merits of our strategy of owning a high-quality, diversified
portfolio of rooms-focused hotels with broad consumer appeal while
maintaining financial flexibility with low leverage and speak to
the strength of the brands and management companies we work with. I
am confident we are well positioned to continue to outperform in
the year ahead."
Hotel Portfolio Overview
As of December 31, 2023, Apple Hospitality owned 225 hotels,
including two properties classified as held for sale, with an
aggregate of 29,900 guest rooms located in 88 markets throughout 38
states.
Highlights
- Strong operating performance: Comparable Hotels RevPAR
was $105 for the fourth quarter 2023 and $116 for the full year
2023, increases of 2% and 7%, respectively, as compared to the same
periods of 2022. Comparable Hotels ADR was $151 for the fourth
quarter 2023 and $157 for the full year 2023, increases of 3% and
5%, respectively, as compared to the same periods of 2022.
Comparable Hotels Occupancy was 70% for the fourth quarter 2023,
essentially flat to fourth quarter 2022, and 74% for the full year
2023, an increase of 2% as compared to 2022. Comparable Hotels
Occupancy and RevPAR exceeded industry averages as reported by STR
for the fourth quarter 2023. Comparable Hotels Occupancy, ADR and
RevPAR exceeded industry averages as reported by STR for the full
year 2023. Based on preliminary results for the Company's portfolio
for the month of January 2024, Comparable Hotels Occupancy was
approximately 64%, an increase compared to January 2023, with
growth in Comparable Hotels ADR as compared to January 2023.
- Strong bottom-line performance: The Company achieved
Comparable Hotels Adjusted Hotel EBITDA of approximately $104
million for the fourth quarter 2023 and $500 million for the full
year 2023, down 2% and up 5%, respectively, as compared to the same
periods of 2022. The Company achieved Comparable Hotels Adjusted
Hotel EBITDA Margin of approximately 32.9% for the fourth quarter
2023 and 36.4% for the full year 2023, down 160 bps and 90 bps,
respectively, as compared to the same periods of 2022.
- Transactional activity: During the year, the Company
acquired six hotels and a free-standing parking garage for a
combined total purchase price of approximately $289.8 million. The
Company currently has two additional hotels under contract for
purchase for an anticipated combined total purchase price of
approximately $177.5 million. In February 2024, the Company sold
two hotels for a combined gross sales price of approximately $33.5
million.
- Capital markets: During the fourth quarter 2023, the
Company sold approximately 12.8 million shares under its
at-the-market offering program (the “ATM Program”) at a
weighted-average market sales price of approximately $17.05 per
common share and received net proceeds of approximately $216
million.
- Balance sheet: The Company has maintained the strength
and flexibility of its balance sheet. At December 31, 2023, the
Company’s total debt to total capitalization, net of cash and cash
equivalents, was approximately 25%.
- Monthly distributions: During the three months ended
December 31, 2023, the Company paid distributions totaling $0.24
per common share. Based on the Company’s common stock closing price
of $15.91 on February 20, 2024, the current annualized monthly cash
distribution of $0.96 per common share represents an annual yield
of approximately 6.0%.
- Corporate Responsibility Report: In December 2023, the
Company published its annual Corporate Responsibility Report which
details the Company's performance and initiatives in this area and
features its commitment to environmental sustainability, governance
and resiliency, corporate employees, hotel associates and guests,
communities and other stakeholders. The Company's 2023 Corporate
Responsibility Report and related materials can be found on the
Corporate Responsibility section of the Company's website.
The Company is providing monthly performance detail for its
Comparable Hotels with comparisons to the respective periods of
2022. The following table highlights the Company’s Comparable
Hotels monthly performance during the fourth quarter of 2023 as
compared to the fourth quarter of 2022 (in thousands, except
statistical data):
% Change
October
November
December
October
November
December
October
November
December
2023
2023
2023
Q4 2023
2022
2022
2022
Q4 2022
2022
2022
2022
Q4 2022
ADR (Comparable Hotels)
$163.43
$148.15
$137.58
$150.72
$157.24
$144.96
$136.13
$146.99
3.9%
2.2%
1.1%
2.5%
Occupancy (Comparable Hotels)
77.3%
70.3%
61.5%
69.7%
78.2%
70.0%
61.2%
69.8%
(1.2%)
0.4%
0.5%
(0.1%)
RevPAR (Comparable Hotels)
$126.30
$104.16
$84.55
$105.01
$122.90
$101.47
$83.27
$102.56
2.8%
2.7%
1.5%
2.4%
Operating income (Loss) (Actual)
$30,204
$11,972
$(3,266)
$38,910
$29,858
$12,355
$(24,725)
$17,488
1.2%
(3.1%)
86.8%
122.5%
Adjusted Hotel EBITDA (Actual) (1)
$49,280
$30,470
$21,988
$101,738
$48,695
$31,213
$22,054
$101,962
1.2%
(2.4%)
(0.3%)
(0.2%)
Comparable Hotels Adjusted Hotel EBITDA
(2)
$50,688
$30,835
$22,144
$103,667
$50,821
$32,370
$22,448
$105,639
(0.3%)
(4.7%)
(1.4%)
(1.9%)
____________________
(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 December 31, 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 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, during 2023, the Company acquired six
hotels and a free-standing parking garage for a combined total
purchase price of approximately $289.8 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 a total purchase price of
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 a total purchase price of 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 a total purchase price of
approximately $55.5 million, or $380,000 per key.
- In November 2023, the Company acquired 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.
- In December 2023, the Company acquired the 299-room SpringHill
Suites by Marriott Las Vegas Convention Center for a total purchase
price of approximately $75.0 million, or $251,000 per key.
Contracts for Potential Acquisitions
As previously announced, the Company currently has two
additional hotels under contract for purchase for a combined total
anticipated purchase price of approximately $177.5 million. The
hotels currently under contract for purchase include:
- An Embassy Suites by Hilton currently under development in
downtown Madison, Wisconsin, for an anticipated total purchase
price of approximately $79.3 million with an expected 262 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
$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 each of these hotels
that have not yet been satisfied, and there can be no assurance
that closings on these hotels will occur under the outstanding
purchase contracts.
Dispositions
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 anticipates
a portion of the proceeds from the sale of these two hotels will be
used to complete a 1031 Exchange with future acquisitions, which
will result in the deferral of taxable gains of approximately $15
million.
Capital Improvements
Apple Hospitality consistently reinvests in its hotels to
maintain and enhance each property’s relevance and competitive
position within its respective market. During the year ended
December 31, 2023, the Company invested approximately $77 million
in capital expenditures. The Company anticipates investing
approximately $75 million to $85 million in capital improvements
during 2024, which includes comprehensive renovation projects for
approximately 20 hotels.
Balance Sheet and
Liquidity
Summary
As of December 31, 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 $10 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 December 31, 2023, was
comprised of approximately $283 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 December 31, 2023, was 210.
The Company’s total debt to total capitalization, net of cash and
cash equivalents at December 31, 2023, was approximately 25%, which
provides Apple Hospitality with financial flexibility to fund
capital requirements and pursue opportunities in the marketplace.
As of December 31, 2023, the Company’s weighted-average debt
maturities were 3.7 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 year ended December 31, 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 December 31,
2023, the Company had approximately $335 million remaining under
its Share Repurchase Program for the repurchase of shares.
ATM Program
During the fourth quarter 2023, the Company sold approximately
12.8 million shares under its ATM Program at a weighted-average
market sales price of approximately $17.05 per common share and
received aggregate gross proceeds of approximately $218.6 million
and proceeds net of offering costs of approximately $216.0 million.
As of December 31, 2023, the Company had approximately $5.3 million
remaining under its ATM Program for the issuance of shares. The
Company used the proceeds from the sales of these shares to pay
down borrowings on its revolving credit facility and for general
corporate purposes, including hotel acquisitions, providing
additional capacity for strategic growth while maintaining the
Company’s strong balance sheet.
Shareholder
Distributions
During the three months ended December 31, 2023, the Company
paid distributions totaling $0.24 per common share. For the year
ended December 31, 2023, the Company paid distributions of $1.04
per common share for a total of approximately $238.3 million. On
January 16, 2024, the Company paid a regular monthly cash
distribution of $0.08 per common share and a special cash
distribution of $0.05 per common share, for a combined distribution
of $0.13 per common share, to shareholders of record as of December
29, 2023.
Based on the Company’s common stock closing price of $15.91 on
February 20, 2024, the current annualized regular monthly cash
distribution of $0.96 per common share represents an annual yield
of approximately 6.0%. 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.
2024 Outlook
The Company is providing 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. 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 dispositions and assets held
for sale since January 1, 2023, and exclude one non-hotel property
leased to third parties. 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:
2024 Guidance(1)
Low-End
High-End
Net income
$191 Million
$217 Million
Comparable Hotels RevPAR Change
2.0%
4.0%
Comparable Hotels Adjusted Hotel EBITDA
Margin %
34.6%
35.6%
Adjusted EBITDAre
$452 Million
$474 Million
Capital expenditures
$75 Million
$85 Million
____________________
(1)
Explanations of and reconciliations to net
income guidance of Adjusted EBITDAre and Comparable Hotels Adjusted
Hotel EBITDA guidance are included below.
Fourth Quarter and Full Year 2023
Earnings Conference Call
The Company will host a quarterly conference call for investors
and interested parties at 10 a.m. Eastern Time on Friday, February
23, 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
February 23, 2024, through 11:59 p.m. Eastern Time on March 8,
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 13743323. 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 29,600 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 100 Marriott-branded hotels, 118
Hilton-branded hotels and five Hyatt-branded hotels. For more
information, please visit www.applehospitalityreit.com.
Apple Hospitality REIT Non-GAAP
Financial Measures
The Company considers the following non-GAAP financial measures
useful to investors as key supplemental measures of its operating
performance: Funds from Operations (“FFO”); Modified FFO (“MFFO”);
Earnings Before Interest, Income Taxes, Depreciation and
Amortization (“EBITDA”); Earnings Before Interest, Income Taxes,
Depreciation and Amortization for Real Estate (“EBITDAre”);
Adjusted EBITDAre; Adjusted Hotel EBITDA; Comparable Hotels
Adjusted Hotel EBITDA; and Same Store Hotels Adjusted Hotel EBITDA.
These non-GAAP financial measures should be considered along with,
but not as alternatives to, net income (loss), cash flow from
operations or any other operating GAAP measure. FFO, MFFO, EBITDA,
EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA, Comparable
Hotels Adjusted Hotel EBITDA and Same Store Hotels Adjusted Hotel
EBITDA are not necessarily indicative of funds available to fund
the Company’s cash needs, including its ability to make cash
distributions. Although FFO, MFFO, EBITDA, EBITDAre, Adjusted
EBITDAre, Adjusted Hotel EBITDA, Comparable Hotels Adjusted Hotel
EBITDA and Same Store Hotels Adjusted Hotel EBITDA, as calculated
by the Company, may not be comparable to FFO, MFFO, EBITDA,
EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA, Comparable
Hotels Adjusted Hotel EBITDA and Same Store Hotels Adjusted Hotel
EBITDA, as reported by other companies that do not define such
terms exactly as the Company defines such terms, the Company
believes these supplemental measures are useful to investors when
comparing the Company’s results between periods and with other
REITs. Reconciliations of these non-GAAP financial measures to net
income (loss) are provided in the following pages.
Forward-Looking Statements
Disclaimer
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are typically identified by use
of statements that include phrases such as “may,” “believe,”
“expect,” “anticipate,” “intend,” “estimate,” “project,” “target,”
“goal,” “plan,” “should,” “will,” “predict,” “potential,”
“outlook,” “strategy,” and similar expressions that convey the
uncertainty of future events or outcomes. Such statements involve
known and unknown risks, uncertainties, and other factors which may
cause the actual results, performance, or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such forward-looking
statements.
Such factors include, but are not limited to, the ability of the
Company to effectively acquire and dispose of properties and
redeploy proceeds; the anticipated timing and frequency of
shareholder distributions; the ability of the Company to fund
capital obligations; the ability of the Company to successfully
integrate pending transactions and implement its operating
strategy; changes in general political, economic and competitive
conditions and specific market conditions (including the potential
effects of inflation or a recessionary environment); reduced
business and leisure travel due to 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)
As of December 31,
2023
2022
Assets
Investment in real estate, net of
accumulated depreciation and amortization of $1,662,942 and
$1,492,097, respectively
$4,777,374
$4,610,962
Assets held for sale
15,283
-
Cash and cash equivalents
10,287
4,077
Restricted cash-furniture, fixtures and
other escrows
33,331
39,435
Due from third-party managers, net
36,437
43,331
Other assets, net
64,586
74,909
Total Assets
$4,937,298
$4,772,714
Liabilities
Debt, net
$1,371,494
$1,366,249
Finance lease liabilities
111,892
112,006
Accounts payable and other liabilities
129,931
116,064
Total Liabilities
1,613,317
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 241,515,532 and
228,644,861 shares, respectively
4,794,804
4,577,022
Accumulated other comprehensive income
20,404
36,881
Distributions greater than net income
(1,491,227)
(1,435,508)
Total Shareholders' Equity
3,323,981
3,178,395
Total Liabilities and Shareholders'
Equity
$4,937,298
$4,772,714
____________________
Note: The Consolidated Balance
Sheets and corresponding footnotes can be found in the Company’s
Annual Report on Form 10-K for the year ended December 31,
2023.
Apple Hospitality REIT,
Inc.
Consolidated Statements of
Operations and Comprehensive Income
(in thousands, except per
share data)
Three Months Ended
Year Ended
December 31,
(Unaudited)
December 31,
2023
2022
2023
2022
Revenues:
Room
$
282,475
$
273,150
$
1,226,159
$
1,139,436
Food and beverage
14,936
13,657
56,968
46,010
Other
15,045
12,314
60,673
52,971
Total revenue
312,456
299,121
1,343,800
1,238,417
Expenses:
Hotel operating expense:
Operating
83,311
79,137
332,714
300,852
Hotel administrative
28,138
26,685
114,071
105,396
Sales and marketing
28,132
26,262
117,538
104,756
Utilities
11,151
10,791
47,422
45,017
Repair and maintenance
16,960
15,261
65,412
58,729
Franchise fees
13,908
12,886
59,315
53,901
Management fees
9,737
9,875
44,253
41,830
Total hotel operating expense
191,337
180,897
780,725
710,481
Property taxes, insurance and other
17,960
16,397
79,307
72,907
General and administrative
12,761
12,248
47,401
42,464
Loss on impairment of depreciable real
estate assets
5,644
26,175
5,644
26,175
Depreciation and amortization
45,844
45,916
183,242
181,697
Total expense
273,546
281,633
1,096,319
1,033,724
Gain on sale of real estate
-
-
-
1,785
Operating income
38,910
17,488
247,481
206,478
Interest and other expense, net
(17,884
)
(14,948
)
(68,857
)
(59,733
)
Income before income taxes
21,026
2,540
178,624
146,745
Income tax expense
(261
)
(228
)
(1,135
)
(1,940
)
Net income
$
20,765
$
2,312
$
177,489
$
144,805
Other comprehensive income
(loss):
Interest rate derivatives
(17,007
)
(1,473
)
(16,477
)
52,389
Comprehensive income
$
3,758
$
839
$
161,012
$
197,194
Basic and diluted net income per common
share
$
0.09
$
0.01
$
0.77
$
0.63
Weighted average common shares outstanding
- basic and diluted
230,000
228,811
229,329
228,946
____________________
Note: The Consolidated Statements of Operations and
Comprehensive Income and corresponding footnotes can be found in
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2023.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics and Statistical Data
(Unaudited)
(in thousands, except
statistical data)
Three Months Ended
Year Ended
December 31,
December 31,
% Change
% Change
2023
2022
2022
2023
2022
2022
Operating income (Actual)
$38,910
$17,488
122.5%
$247,481
$206,478
19.9%
Operating margin % (Actual)
12.5%
5.8%
670 bps
18.4%
16.7%
170 bps
Comparable Hotels Total Revenue
$314,913
$306,561
2.7%
$1,374,694
$1,280,379
7.4%
Comparable Hotels Total Operating
Expenses
$211,246
$200,922
5.1%
$874,615
$802,503
9.0%
Comparable Hotels Adjusted Hotel
EBITDA
$103,667
$105,639
(1.9%)
$500,079
$477,876
4.6%
Comparable Hotels Adjusted Hotel EBITDA
Margin %
32.9%
34.5%
(160 bps)
36.4%
37.3%
(90 bps)
ADR (Comparable Hotels)
$150.72
$146.99
2.5%
$156.55
$149.62
4.6%
Occupancy (Comparable Hotels)
69.7%
69.8%
(0.1%)
74.2%
72.6%
2.2%
RevPAR (Comparable Hotels)
$105.01
$102.56
2.4%
$116.23
$108.67
7.0%
ADR (Actual)
$149.88
$147.30
1.8%
$155.76
$149.36
4.3%
Occupancy (Actual)
69.6%
69.7%
(0.1%)
74.2%
72.6%
2.2%
RevPAR (Actual)
$104.27
$102.71
1.5%
$115.60
$108.45
6.6%
Reconciliation to Actual
Results
Total Revenue (Actual)
$312,456
$299,121
$1,343,800
$1,238,417
Revenue from acquisitions prior to
ownership
6,826
14,790
50,308
66,913
Revenue from dispositions/assets held for
sale
(2,242)
(1,964)
(9,552)
(9,617)
Revenue from non-hotel property
(2,127)
(5,386)
(9,862)
(15,334)
Comparable Hotels Total Revenue
$314,913
$306,561
$1,374,694
$1,280,379
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$101,738
$101,962
$481,892
$455,579
AHEBITDA from acquisitions prior to
ownership
2,711
6,036
21,336
27,472
AHEBITDA from dispositions/assets held for
sale
(782)
(808)
(3,723)
(3,606)
AHEBITDA from non-hotel property (2)
-
(1,551)
574
(1,569)
Comparable Hotels AHEBITDA
$103,667
$105,639
$500,079
$477,876
____________________
(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 223 hotels
owned and held for use by the Company as of December 31, 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 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)
2022
2023
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Operating income (Actual)
$32,835
$80,745
$75,410
$17,488
$49,247
$83,029
$76,295
$38,910
Operating margin % (Actual)
12.6%
23.9%
22.1%
5.8%
15.8%
23.0%
21.3%
12.5%
Comparable Hotels Total Revenue
$271,328
$349,791
$352,699
$306,561
$321,939
$370,801
$367,041
$314,913
Comparable Hotels Total Operating
Expenses
177,579
206,527
217,475
200,922
208,370
224,755
230,244
211,246
Comparable Hotels Adjusted Hotel
EBITDA
$93,749
$143,264
$135,224
$105,639
$113,569
$146,046
$136,797
$103,667
Comparable Hotels Adjusted Hotel EBITDA
Margin %
34.6%
41.0%
38.3%
34.5%
35.3%
39.4%
37.3%
32.9%
ADR (Comparable Hotels)
$137.77
$153.90
$158.01
$146.99
$153.39
$161.24
$159.99
$150.72
Occupancy (Comparable Hotels)
67.3%
77.7%
75.7%
69.8%
72.1%
78.1%
77.2%
69.7%
RevPAR (Comparable Hotels)
$92.68
$119.64
$119.57
$102.56
$110.60
$125.87
$123.44
$105.01
ADR (Actual)
$137.03
$153.35
$157.91
$147.30
$152.01
$160.98
$159.36
$149.88
Occupancy (Actual)
67.1%
77.9%
75.7%
69.7%
72.0%
78.2%
77.1%
69.6%
RevPAR (Actual)
$91.98
$119.41
$119.52
$102.71
$109.46
$125.96
$122.91
$104.27
Reconciliation to Actual
Results
Total Revenue (Actual)
$260,478
$337,668
$341,150
$299,121
$311,454
$361,630
$358,260
$312,456
Revenue from acquisitions prior to
ownership
14,445
18,982
18,696
14,790
15,037
14,856
13,589
6,826
Revenue from dispositions/assets held for
sale
(1,650)
(3,065)
(2,938)
(1,964)
(1,709)
(2,805)
(2,796)
(2,242)
Revenue from non-hotel property
(1,945)
(3,794)
(4,209)
(5,386)
(2,843)
(2,880)
(2,012)
(2,127)
Comparable Hotels Total Revenue
$271,328
$349,791
$352,699
$306,561
$321,939
$370,801
$367,041
$314,913
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$87,936
$136,515
$129,166
$101,962
$106,749
$141,244
$132,161
$101,738
AHEBITDA from acquisitions prior to
ownership
5,228
8,347
7,861
6,036
6,493
6,286
5,846
2,711
AHEBITDA from dispositions/assets held for
sale
(336)
(1,276)
(1,186)
(808)
(469)
(1,262)
(1,210)
(782)
AHEBITDA from non-hotel property (2)
921
(322)
(617)
(1,551)
796
(222)
-
-
Comparable Hotels AHEBITDA
$93,749
$143,264
$135,224
$105,639
$113,569
$146,046
$136,797
$103,667
____________________
(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 223 hotels owned
and held for use by the Company as of December 31, 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 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
Year Ended
December 31,
December 31,
% Change
% Change
2023
2022
2022
2023
2022
2022
Operating income (Actual)
$38,910
$17,488
122.5%
$247,481
$206,478
19.9%
Operating margin % (Actual)
12.5%
5.8%
670 bps
18.4%
16.7%
170 bps
Same Store Hotels Total Revenue
$296,579
$289,404
2.5%
$1,297,589
$1,211,099
7.1%
Same Store Hotels Total Operating
Expenses
200,717
190,987
5.1%
830,700
761,881
9.0%
Same Store Hotels Adjusted Hotel
EBITDA
$95,862
$98,417
(2.6%)
$466,889
$449,218
3.9%
Same Store Hotels Adjusted Hotel EBITDA
Margin %
32.3%
34.0%
(170 bps)
36.0%
37.1%
(110 bps)
ADR (Same Store Hotels)
$149.27
$146.17
2.1%
$155.44
$149.03
4.3%
Occupancy (Same Store Hotels)
69.7%
69.7%
0.0%
74.3%
72.6%
2.3%
RevPAR (Same Store Hotels)
$104.03
$101.91
2.1%
$115.44
$108.22
6.7%
ADR (Actual)
$149.88
$147.30
1.8%
$155.76
$149.36
4.3%
Occupancy (Actual)
69.6%
69.7%
(0.1%)
74.2%
72.6%
2.2%
RevPAR (Actual)
$104.27
$102.71
1.5%
$115.60
$108.45
6.6%
Reconciliation to
Actual Results
Total Revenue (Actual)
$312,456
$299,121
$1,343,800
$1,238,417
Revenue from acquisitions
(11,508)
(2,367)
(26,797)
(2,367)
Revenue from dispositions/assets held for
sale
(2,242)
(1,964)
(9,552)
(9,617)
Revenue from non-hotel property
(2,127)
(5,386)
(9,862)
(15,334)
Same Store Hotels Total Revenue
$296,579
$289,404
$1,297,589
$1,211,099
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$101,738
$101,962
$481,892
$455,579
AHEBITDA from acquisitions
(5,094)
(1,186)
(11,854)
(1,186)
AHEBITDA from dispositions/assets held for
sale
(782)
(808)
(3,723)
(3,606)
AHEBITDA from non-hotel property (2)
-
(1,551)
574
(1,569)
Same Store Hotels AHEBITDA
$95,862
$98,417
$466,889
$449,218
____________________
(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 215 hotels owned
and held for use 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
Q4
Operating income (Actual)
$32,835
$80,745
$75,410
$17,488
$49,247
$83,029
$76,295
$38,910
Operating margin % (Actual)
12.6%
23.9%
22.1%
5.8%
15.8%
23.0%
21.3%
12.5%
Same Store Hotels Total Revenue
$256,883
$330,809
$334,003
$289,404
$303,611
$350,676
$346,723
$296,579
Same Store Hotels Total Operating
Expenses
168,362
195,892
206,640
190,987
197,594
213,608
218,781
200,717
Same Store Hotels Adjusted Hotel
EBITDA
$88,521
$134,917
$127,363
$98,417
$106,017
$137,068
$127,942
$95,862
Same Store Hotels Adjusted Hotel EBITDA
Margin %
34.5%
40.8%
38.1%
34.0%
34.9%
39.1%
36.9%
32.3%
ADR (Same Store Hotels)
$137.33
$153.21
$157.58
$146.17
$152.32
$160.25
$159.05
$149.27
Occupancy (Same Store Hotels)
67.3%
77.8%
75.6%
69.7%
72.1%
78.2%
77.1%
69.7%
RevPAR (Same Store Hotels)
$92.40
$119.17
$119.18
$101.91
$109.81
$125.26
$122.66
$104.03
ADR (Actual)
$137.03
$153.35
$157.91
$147.30
$152.01
$160.98
$159.36
$149.88
Occupancy (Actual)
67.1%
77.9%
75.7%
69.7%
72.0%
78.2%
77.1%
69.6%
RevPAR (Actual)
$91.98
$119.41
$119.52
$102.71
$109.46
$125.96
$122.91
$104.27
Reconciliation to Actual
Results
Total Revenue (Actual)
$260,478
$337,668
$341,150
$299,121
$311,454
$361,630
$358,260
$312,456
Revenue from acquisitions
-
-
-
(2,367)
(3,291)
(5,269)
(6,729)
(11,508)
Revenue from dispositions/assets held for
sale
(1,650)
(3,065)
(2,938)
(1,964)
(1,709)
(2,805)
(2,796)
(2,242)
Revenue from non-hotel property
(1,945)
(3,794)
(4,209)
(5,386)
(2,843)
(2,880)
(2,012)
(2,127)
Same Store Hotels Total Revenue
$256,883
$330,809
$334,003
$289,404
$303,611
$350,676
$346,723
$296,579
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
(1)
$87,936
$136,515
$129,166
$101,962
$106,749
$141,244
$132,161
$101,738
AHEBITDA from acquisitions
-
-
-
(1,186)
(1,059)
(2,692)
(3,009)
(5,094)
AHEBITDA from dispositions/assets held for
sale
(336)
(1,276)
(1,186)
(808)
(469)
(1,262)
(1,210)
(782)
AHEBITDA from non-hotel property (2)
921
(322)
(617)
(1,551)
796
(222)
-
-
Same Store Hotels AHEBITDA
$88,521
$134,917
$127,363
$98,417
$106,017
$137,068
$127,942
$95,862
____________________
(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 215 hotels owned
and held for use 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
Q4
Net income
$18,002
$65,345
$59,146
$2,312
$32,923
$65,289
$58,512
$20,765
Depreciation and amortization
45,324
45,322
45,135
45,916
45,906
45,994
45,498
45,844
Amortization of favorable and unfavorable
operating leases, net
99
103
97
97
97
85
99
102
Interest and other expense, net
14,654
15,198
14,933
14,948
16,004
17,499
17,470
17,884
Income tax expense
179
202
1,331
228
320
241
313
261
EBITDA
78,258
126,170
120,642
63,501
95,250
129,108
121,892
84,856
Gain on sale of real estate
-
-
(1,785)
-
-
-
-
-
Loss on impairment of depreciable real
estate assets
-
-
-
26,175
-
-
-
5,644
EBITDAre
78,258
126,170
118,857
89,676
95,250
129,108
121,892
90,500
Non-cash straight-line operating ground
lease expense
40
38
38
38
38
36
35
36
Adjusted EBITDAre
78,298
126,208
118,895
89,714
95,288
129,144
121,927
90,536
General and administrative expense
9,638
10,307
10,271
12,248
11,461
12,100
11,079
12,761
Adjusted EBITDAre from non-hotel property
(1)
-
-
-
-
-
-
(845)
(1,559)
Adjusted Hotel EBITDA
$87,936
$136,515
$129,166
$101,962
$106,749
$141,244
$132,161
$101,738
(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 months and year ended December 31, 2023
and 2022:
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Net income
$20,765
$2,312
$177,489
$144,805
Depreciation of real estate owned
45,080
45,152
180,185
178,641
Gain on sale of real estate
-
-
-
(1,785)
Loss on impairment of depreciable real
estate assets
5,644
26,175
5,644
26,175
Funds from operations
71,489
73,639
363,318
347,836
Amortization of finance ground lease
assets
760
760
3,038
3,038
Amortization of favorable and unfavorable
operating leases, net
102
97
383
396
Non-cash straight-line operating ground
lease expense
36
38
145
154
Modified funds from operations
$72,387
$74,534
$366,884
$351,424
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
$190,707
$216,932
Depreciation and amortization
186,000
183,000
Amortization of favorable and unfavorable
leases, net
408
408
Interest and other expense, net
74,000
72,000
Income tax expense
850
1,150
EBITDA and EBITDAre
$451,965
$473,490
Non-cash straight-line operating ground
lease expense
135
135
Adjusted EBITDAre
$452,100
$473,625
General and administrative expense
37,500
42,500
AEBITDAre from non-hotel property (1)
(1,500)
(3,500)
Adjusted Hotel EBITDA
$488,100
$512,625
AHEBITDA from acquisitions prior to
ownership(2)
-
-
AHEBITDA from dispositions(3)
100
125
Comparable Hotels Adjusted Hotel
EBITDA
$488,000
$512,500
____________________
(1)
Represents Adjusted EBITDAre from one
non-hotel property leased to third parties.
(2)
Results for periods prior to the Company's
ownership have not been included in the Company's actual
Consolidated Financial Statements and are included only for
comparison purposes. Results included for periods prior to the
Company's ownership are based on information from the prior owner
of each hotel and have not been audited or adjusted.
(3)
Represents AHEBITDA from two hotels prior
to their disposition in February 2024.
Apple Hospitality REIT,
Inc.
Debt Summary
(Unaudited)
($ in thousands)
December 31, 2023
Fair Market
2024
2025
2026
2027
2028
Thereafter
Total
Value
Total debt:
Maturities
$
113,597
$
295,140
$
74,649
$
278,602
$
334,066
$
281,948
$
1,378,002
$
1,331,522
Average interest rates (1)
4.6
%
4.9
%
5.3
%
5.3
%
4.7
%
3.9
%
Variable-rate debt:
Maturities
$
85,000
$
225,000
$
-
$
275,000
$
300,000
$
85,000
$
970,000
$
967,761
Average interest rates (1)
4.8
%
5.4
%
5.8
%
5.9
%
5.2
%
3.6
%
Fixed-rate debt:
Maturities
$
28,597
$
70,140
$
74,649
$
3,602
$
34,066
$
196,948
$
408,002
$
363,761
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 Annual Report on Form 10-K for the year ended
December 31, 2023.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Market
Three Months Ended December
31
(Unaudited)
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Top 20 Markets
Phoenix, AZ
10
78.1%
81.4%
(4.1%)
$153.32
$144.66
6.0%
$119.78
$117.77
1.7%
6.6%
Los Angeles, CA
8
79.7%
77.2%
3.2%
$182.14
$178.83
1.9%
$145.11
$138.00
5.2%
5.6%
San Diego, CA
7
70.7%
68.7%
2.9%
$171.25
$175.04
(2.2%)
$121.02
$120.21
0.7%
4.9%
Seattle, WA
4
78.4%
77.3%
1.4%
$178.22
$172.04
3.6%
$139.67
$132.91
5.1%
3.9%
Fort Worth/Arlington, TX
6
73.1%
74.6%
(2.0%)
$159.39
$155.33
2.6%
$116.58
$115.94
0.6%
3.7%
Orange County, CA
6
72.1%
73.1%
(1.4%)
$165.83
$162.08
2.3%
$119.55
$118.51
0.9%
3.6%
Richmond/Petersburg, VA
3
69.1%
63.6%
8.6%
$186.19
$180.66
3.1%
$128.70
$114.89
12.0%
3.2%
Chicago, IL
7
63.5%
64.7%
(1.9%)
$138.67
$136.69
1.4%
$88.02
$88.42
(0.5%)
3.0%
Portland, ME
3
75.7%
71.1%
6.5%
$191.01
$196.20
(2.6%)
$144.58
$139.42
3.7%
2.9%
Nashville, TN
5
70.6%
75.5%
(6.5%)
$171.57
$164.84
4.1%
$121.06
$124.40
(2.7%)
2.7%
Melbourne, FL
3
78.9%
83.7%
(5.7%)
$185.76
$176.30
5.4%
$146.57
$147.60
(0.7%)
2.4%
Salt Lake City/Ogden, UT
5
63.1%
66.5%
(5.1%)
$142.15
$136.47
4.2%
$89.75
$90.81
(1.2%)
2.1%
Las Vegas, NV
1
79.6%
75.6%
5.3%
$211.18
$185.32
14.0%
$168.21
$140.19
20.0%
2.1%
Miami, FL
3
89.0%
81.4%
9.3%
$156.70
$158.74
(1.3%)
$139.47
$129.20
7.9%
1.8%
Dallas, TX
5
66.0%
69.0%
(4.3%)
$134.67
$126.88
6.1%
$88.88
$87.51
1.6%
1.8%
Alaska
2
78.5%
85.8%
(8.5%)
$192.06
$168.58
13.9%
$150.73
$144.67
4.2%
1.6%
Washington, DC
4
68.6%
64.7%
6.0%
$139.14
$132.09
5.3%
$95.50
$85.41
11.8%
1.6%
Austin, TX
7
67.9%
71.5%
(5.0%)
$129.48
$129.64
(0.1%)
$87.91
$92.72
(5.2%)
1.5%
Houston, TX
6
65.6%
59.6%
10.1%
$113.64
$108.57
4.7%
$74.51
$64.71
15.1%
1.4%
Memphis, TN
2
62.6%
66.6%
(6.0%)
$194.48
$199.36
(2.4%)
$121.83
$132.87
(8.3%)
1.4%
Top 20 Markets
97
71.9%
72.0%
(0.1%)
$160.88
$156.20
3.0%
$115.62
$112.44
2.8%
57.8%
All Other Markets
Oklahoma City, OK
4
70.1%
65.0%
7.8%
$124.66
$130.91
(4.8%)
$87.40
$85.07
2.7%
1.4%
Atlanta, GA
3
70.0%
69.5%
0.7%
$162.61
$148.19
9.7%
$113.82
$103.03
10.5%
1.3%
Boston, MA
3
72.0%
69.9%
3.0%
$160.61
$154.27
4.1%
$115.69
$107.88
7.2%
1.3%
Alabama South
4
70.8%
67.4%
5.0%
$134.40
$129.03
4.2%
$95.14
$86.93
9.4%
1.3%
North Carolina East
4
64.8%
61.5%
5.4%
$128.26
$127.98
0.2%
$83.06
$78.73
5.5%
1.2%
Louisville, KY
1
69.4%
71.1%
(2.4%)
$161.28
$149.28
8.0%
$111.89
$106.13
5.4%
1.2%
Florida Panhandle
5
62.9%
61.6%
2.1%
$138.77
$136.60
1.6%
$87.28
$84.11
3.8%
1.2%
Birmingham, AL
4
70.0%
65.5%
6.9%
$138.73
$137.31
1.0%
$97.16
$89.99
8.0%
1.2%
Pittsburgh, PA
2
59.1%
57.8%
2.2%
$177.44
$168.43
5.3%
$104.95
$97.34
7.8%
1.1%
Alabama North
4
66.8%
78.3%
(14.7%)
$143.17
$130.49
9.7%
$95.66
$102.16
(6.4%)
1.1%
Newark, NJ
2
81.7%
75.4%
8.4%
$172.55
$169.12
2.0%
$140.95
$127.43
10.6%
1.1%
San Jose/Santa Cruz, CA
1
75.7%
78.4%
(3.4%)
$177.98
$184.50
(3.5%)
$134.69
$144.59
(6.8%)
1.1%
Indiana North
3
52.8%
55.3%
(4.5%)
$165.97
$173.95
(4.6%)
$87.67
$96.26
(8.9%)
1.1%
Tucson, AZ
3
80.9%
81.0%
(0.1%)
$112.70
$106.72
5.6%
$91.14
$86.49
5.4%
1.1%
Fort Lauderdale, FL
2
79.7%
79.5%
0.3%
$148.03
$145.46
1.8%
$117.97
$115.63
2.0%
1.0%
Denver, CO
3
62.5%
63.0%
(0.8%)
$147.59
$137.70
7.2%
$92.19
$86.77
6.2%
1.0%
Syracuse, NY
2
66.0%
70.9%
(6.9%)
$177.47
$176.89
0.3%
$117.21
$125.49
(6.6%)
1.0%
Knoxville, TN
3
75.0%
67.9%
10.5%
$133.30
$128.53
3.7%
$99.98
$87.31
14.5%
1.0%
New Orleans, LA
1
66.6%
52.4%
27.1%
$210.61
$223.14
(5.6%)
$140.24
$116.99
19.9%
1.0%
Omaha, NE
4
55.3%
62.2%
(11.1%)
$120.97
$123.95
(2.4%)
$66.89
$77.11
(13.3%)
0.9%
Kansas City, MO
4
66.5%
65.6%
1.4%
$126.53
$122.52
3.3%
$84.13
$80.36
4.7%
0.9%
Madison, WI
1
55.6%
56.1%
(0.9%)
$221.22
$191.47
15.5%
$122.97
$107.39
14.5%
0.9%
Orlando, FL
3
71.8%
79.7%
(9.9%)
$115.88
$120.79
(4.1%)
$83.18
$96.26
(13.6%)
0.9%
Philadelphia, PA
3
65.0%
67.8%
(4.1%)
$138.78
$136.80
1.4%
$90.20
$92.76
(2.8%)
0.9%
Virginia Area
1
68.1%
62.0%
9.8%
$186.75
$187.19
(0.2%)
$127.24
$116.09
9.6%
0.8%
Idaho
1
74.2%
67.4%
10.1%
$168.97
$171.33
(1.4%)
$125.38
$115.41
8.6%
0.8%
Saint Louis, MO
2
57.9%
54.4%
6.4%
$157.23
$157.17
0.0%
$90.98
$85.49
6.4%
0.8%
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
Three Months Ended December
31
(Unaudited)
All Other Markets (continued)
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Texas West
1
94.6%
92.3%
2.5%
$138.23
$115.61
19.6%
$130.76
$106.67
22.6%
0.7%
Louisiana South
2
66.9%
69.0%
(3.0%)
$120.26
$119.04
1.0%
$80.40
$82.19
(2.2%)
0.6%
Tampa, FL
1
79.7%
85.9%
(7.2%)
$166.82
$196.38
(15.1%)
$132.96
$168.74
(21.2%)
0.6%
Long Island, NY
1
80.1%
84.1%
(4.8%)
$148.65
$150.18
(1.0%)
$119.03
$126.34
(5.8%)
0.6%
Norfolk/Virginia Beach, VA
4
58.9%
61.1%
(3.6%)
$122.37
$119.87
2.1%
$72.07
$73.26
(1.6%)
0.6%
Florida Central
2
68.1%
64.0%
6.4%
$150.76
$141.95
6.2%
$102.69
$90.85
13.0%
0.5%
Minneapolis, MN
2
61.8%
59.8%
3.3%
$150.60
$139.95
7.6%
$93.01
$83.66
11.2%
0.5%
Portland, OR
1
60.5%
60.5%
0.0%
$149.87
$150.76
(0.6%)
$90.73
$91.26
(0.6%)
0.5%
Jacksonville, FL
2
83.0%
79.8%
4.0%
$124.19
$122.65
1.3%
$103.12
$97.88
5.4%
0.5%
Sacramento, CA
1
73.2%
73.6%
(0.5%)
$167.21
$171.74
(2.6%)
$122.35
$126.40
(3.2%)
0.5%
Cleveland, OH
1
59.3%
54.7%
8.4%
$182.21
$170.64
6.8%
$108.00
$93.35
15.7%
0.5%
Columbia, SC
2
73.6%
75.6%
(2.6%)
$115.86
$120.66
(4.0%)
$85.24
$91.20
(6.5%)
0.5%
Bergen/Passaic, NJ
1
85.7%
90.7%
(5.5%)
$144.92
$130.08
11.4%
$124.22
$117.97
5.3%
0.4%
Greenville/Spartanburg, SC
1
73.3%
76.3%
(3.9%)
$166.46
$162.37
2.5%
$122.02
$123.90
(1.5%)
0.4%
Macon/Warner Robins, GA
1
73.7%
80.0%
(7.9%)
$147.18
$138.03
6.6%
$108.50
$110.37
(1.7%)
0.4%
Detroit, MI
1
68.7%
62.8%
9.4%
$139.10
$135.63
2.6%
$95.51
$85.17
12.1%
0.4%
Inland Empire, CA
1
65.8%
80.2%
(18.0%)
$167.15
$184.75
(9.5%)
$109.91
$148.16
(25.8%)
0.4%
Mississippi
2
70.6%
70.1%
0.7%
$115.72
$113.98
1.5%
$81.72
$79.88
2.3%
0.4%
Baltimore, MD
1
53.9%
63.2%
(14.7%)
$156.60
$146.61
6.8%
$84.37
$92.69
(9.0%)
0.4%
Greensboro/Winston Salem, NC
2
68.5%
64.3%
6.5%
$133.10
$129.64
2.7%
$91.19
$83.37
9.4%
0.4%
Ohio Area
1
71.7%
70.7%
1.4%
$131.15
$121.13
8.3%
$94.03
$85.69
9.7%
0.4%
Palm Beach , FL
1
77.7%
65.6%
18.4%
$119.28
$139.36
(14.4%)
$92.65
$91.42
1.3%
0.4%
Savannah, GA
1
76.6%
83.1%
(7.8%)
$151.39
$155.07
(2.4%)
$116.02
$128.93
(10.0%)
0.3%
Central New Jersey
1
70.5%
64.2%
9.8%
$129.62
$120.19
7.8%
$91.39
$77.14
18.5%
0.3%
California South/Central
2
70.6%
71.5%
(1.3%)
$150.56
$148.19
1.6%
$106.33
$105.92
0.4%
0.3%
Charleston, SC
1
72.4%
69.9%
3.6%
$123.76
$118.00
4.9%
$89.54
$82.48
8.6%
0.3%
Raleigh/Durham/Chapel Hill, NC
1
65.6%
67.9%
(3.4%)
$133.69
$131.10
2.0%
$87.69
$89.05
(1.5%)
0.3%
Chattanooga, TN
1
84.9%
72.3%
17.4%
$121.03
$121.19
(0.1%)
$102.71
$87.56
17.3%
0.2%
San Antonio, TX
1
77.4%
82.0%
(5.6%)
$99.35
$95.21
4.3%
$76.89
$78.02
(1.4%)
0.2%
Colorado Springs, CO
1
67.0%
64.6%
3.7%
$131.15
$131.47
(0.2%)
$87.92
$84.96
3.5%
0.2%
Utah Area
1
66.3%
70.1%
(5.4%)
$132.11
$128.55
2.8%
$87.60
$90.12
(2.8%)
0.2%
Iowa Area
3
55.9%
64.1%
(12.8%)
$122.95
$113.86
8.0%
$68.69
$73.01
(5.9%)
0.2%
Texas East
1
70.9%
72.1%
(1.7%)
$132.36
$114.80
15.3%
$93.83
$82.79
13.3%
0.2%
South Carolina Area
1
63.0%
67.4%
(6.5%)
$126.77
$134.35
(5.6%)
$79.83
$90.60
(11.9%)
0.2%
Charlotte, NC
1
67.8%
73.6%
(7.9%)
$100.38
$96.97
3.5%
$68.05
$71.39
(4.7%)
0.1%
Mobile, AL
1
65.8%
53.5%
23.0%
$108.50
$113.44
(4.4%)
$71.38
$60.74
17.5%
0.1%
Minnesota
1
63.8%
63.3%
0.8%
$105.76
$100.36
5.4%
$67.53
$63.49
6.4%
0.1%
Indianapolis, IN
1
57.0%
55.7%
2.3%
$125.17
$123.67
1.2%
$71.32
$68.83
3.6%
0.0%
Kansas
1
46.4%
51.6%
(10.1%)
$103.15
$100.75
2.4%
$47.88
$52.01
(7.9%)
(0.1)%
Cincinnati, OH
1
53.3%
57.2%
(6.8%)
$117.53
$115.80
1.5%
$62.60
$66.23
(5.5%)
(0.1)%
All Other Markets
126
67.6%
67.7%
(0.1%)
$140.65
$137.85
2.0%
$95.11
$93.34
1.9%
42.2%
Total Portfolio
223
69.7%
69.8%
(0.1%)
$150.72
$146.99
2.5%
$105.01
$102.56
2.4%
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
Year Ended December 31
(Unaudited)
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
Phoenix, AZ
10
78.5%
74.4%
5.5%
$160.28
$143.19
11.9%
$125.89
$106.56
18.1%
5.9%
San Diego, CA
7
76.3%
75.0%
1.7%
$187.65
$178.93
4.9%
$143.23
$134.14
6.8%
5.6%
Los Angeles, CA
8
83.7%
82.8%
1.1%
$186.44
$180.58
3.2%
$156.14
$149.56
4.4%
5.3%
Seattle, WA
4
82.2%
81.2%
1.2%
$196.10
$180.27
8.8%
$161.26
$146.38
10.2%
3.9%
Orange County, CA
6
77.7%
76.1%
2.1%
$169.26
$164.10
3.1%
$131.55
$124.91
5.3%
3.5%
Portland, ME
3
76.0%
72.1%
5.4%
$221.55
$226.17
(2.0%)
$168.46
$163.07
3.3%
3.3%
Fort Worth/Arlington, TX
6
78.6%
78.1%
0.6%
$157.73
$149.15
5.8%
$123.94
$116.44
6.4%
3.0%
Salt Lake City/Ogden, UT
5
75.0%
73.6%
1.9%
$152.36
$141.40
7.8%
$114.22
$104.06
9.8%
2.9%
Nashville, TN
5
79.2%
78.7%
0.6%
$165.26
$164.51
0.5%
$130.87
$129.50
1.1%
2.8%
Chicago, IL
7
67.1%
64.1%
4.7%
$139.48
$134.08
4.0%
$93.60
$85.92
8.9%
2.6%
Richmond/Petersburg, VA
3
69.4%
65.2%
6.4%
$183.91
$177.67
3.5%
$127.59
$115.82
10.2%
2.4%
Melbourne, FL
3
82.8%
84.4%
(1.9%)
$191.47
$174.19
9.9%
$158.48
$146.96
7.8%
2.2%
Alaska
2
83.5%
88.9%
(6.1%)
$245.33
$215.48
13.9%
$204.77
$191.50
6.9%
2.2%
Norfolk/Virginia Beach, VA
4
73.7%
74.5%
(1.1%)
$172.57
$170.59
1.2%
$127.12
$127.16
0.0%
1.9%
Omaha, NE
4
66.6%
64.6%
3.1%
$149.43
$140.40
6.4%
$99.45
$90.63
9.7%
1.9%
North Carolina East
4
74.8%
70.7%
5.8%
$151.61
$151.30
0.2%
$113.43
$106.94
6.1%
1.8%
Miami, FL
3
88.5%
81.8%
8.2%
$159.70
$155.42
2.8%
$141.31
$127.14
11.1%
1.7%
Washington, DC
4
74.1%
70.1%
5.7%
$144.67
$132.38
9.3%
$107.24
$92.80
15.6%
1.6%
Dallas, TX
5
68.4%
66.7%
2.5%
$137.10
$128.48
6.7%
$93.79
$85.76
9.4%
1.5%
Austin, TX
7
72.2%
72.5%
(0.4%)
$125.53
$125.77
(0.2%)
$90.58
$91.19
(0.7%)
1.5%
Top 20 Markets
100
75.9%
74.0%
2.6%
$167.23
$159.31
5.0%
$126.94
$117.96
7.6%
57.5%
All Other Markets
Oklahoma City, OK
4
74.1%
65.9%
12.4%
$134.20
$137.53
(2.4%)
$99.44
$90.59
9.8%
1.4%
Las Vegas, NV
1
74.8%
72.9%
2.6%
$189.52
$169.35
11.9%
$141.79
$123.46
14.8%
1.4%
Alabama North
4
79.0%
81.3%
(2.8%)
$143.95
$128.51
12.0%
$113.74
$104.44
8.9%
1.4%
Florida Panhandle
5
68.8%
68.1%
1.0%
$143.37
$144.31
(0.7%)
$98.58
$98.34
0.2%
1.3%
Denver, CO
3
69.7%
71.4%
(2.4%)
$161.19
$146.78
9.8%
$112.33
$104.78
7.2%
1.3%
Memphis, TN
2
68.4%
66.6%
2.7%
$198.22
$199.14
(0.5%)
$135.65
$132.53
2.4%
1.3%
Birmingham, AL
4
76.8%
71.6%
7.3%
$142.63
$142.67
0.0%
$109.50
$102.17
7.2%
1.2%
Houston, TX
6
66.8%
60.5%
10.4%
$115.33
$106.48
8.3%
$77.01
$64.38
19.6%
1.2%
Alabama South
4
73.6%
72.1%
2.1%
$129.04
$124.70
3.5%
$94.97
$89.86
5.7%
1.1%
Atlanta, GA
3
71.2%
67.9%
4.9%
$166.02
$155.40
6.8%
$118.15
$105.48
12.0%
1.1%
Pittsburgh, PA
2
64.4%
59.8%
7.7%
$173.73
$173.15
0.3%
$111.91
$103.63
8.0%
1.0%
Orlando, FL
3
75.2%
74.4%
1.1%
$126.21
$124.79
1.1%
$94.94
$92.85
2.3%
1.0%
Fort Lauderdale, FL
2
81.1%
82.5%
(1.7%)
$153.13
$143.94
6.4%
$124.15
$118.68
4.6%
1.0%
Tucson, AZ
3
83.1%
80.0%
3.9%
$118.29
$110.97
6.6%
$98.33
$88.83
10.7%
1.0%
Syracuse, NY
2
74.3%
77.0%
(3.5%)
$175.45
$162.87
7.7%
$130.34
$125.44
3.9%
1.0%
Boston, MA
3
70.2%
73.3%
(4.2%)
$162.39
$147.28
10.3%
$113.99
$108.03
5.5%
1.0%
Kansas City, MO
4
72.1%
71.5%
0.8%
$129.42
$120.51
7.4%
$93.38
$86.15
8.4%
1.0%
Indiana North
3
60.9%
61.7%
(1.3%)
$153.47
$147.05
4.4%
$93.40
$90.73
2.9%
0.9%
Newark, NJ
2
78.9%
77.1%
2.3%
$169.73
$162.59
4.4%
$133.91
$125.44
6.8%
0.9%
Louisville, KY
1
74.6%
72.9%
2.3%
$176.85
$159.98
10.5%
$131.92
$116.55
13.2%
0.9%
Knoxville, TN
3
78.7%
76.5%
2.9%
$128.34
$118.39
8.4%
$100.98
$90.61
11.4%
0.9%
Philadelphia, PA
3
67.6%
65.7%
2.9%
$138.27
$132.32
4.5%
$93.52
$86.90
7.6%
0.9%
Saint Louis, MO
2
64.8%
65.1%
(0.5%)
$167.42
$165.26
1.3%
$108.55
$107.52
1.0%
0.9%
Idaho
1
77.8%
74.8%
4.0%
$180.78
$171.24
5.6%
$140.68
$128.06
9.9%
0.8%
Portland, OR
1
68.0%
62.8%
8.3%
$163.58
$167.55
(2.4%)
$111.20
$105.15
5.8%
0.7%
Madison, WI
1
63.4%
64.0%
(0.9%)
$193.19
$180.21
7.2%
$122.57
$115.25
6.4%
0.7%
Virginia Area
1
73.7%
76.5%
(3.7%)
$172.88
$163.18
5.9%
$127.33
$124.79
2.0%
0.7%
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
Year Ended December 31
(Unaudited)
All Other Markets (continued)
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
San Jose/Santa Cruz, CA
1
79.4%
82.6%
(3.9%)
$185.94
$176.33
5.5%
$147.66
$145.66
1.4%
0.7%
Minneapolis, MN
2
64.5%
62.7%
2.9%
$154.01
$144.30
6.7%
$99.37
$90.45
9.9%
0.6%
Louisiana South
2
68.4%
69.0%
(0.9%)
$126.01
$124.11
1.5%
$86.26
$85.62
0.7%
0.6%
Tampa, FL
1
82.7%
84.8%
(2.5%)
$182.91
$176.99
3.3%
$151.19
$150.13
0.7%
0.6%
New Orleans, LA
1
63.1%
58.9%
7.1%
$192.62
$210.89
(8.7%)
$121.61
$124.29
(2.2%)
0.6%
Long Island, NY
1
80.9%
82.0%
(1.3%)
$158.37
$160.07
(1.1%)
$128.19
$131.20
(2.3%)
0.6%
Texas West
1
96.4%
94.8%
1.7%
$131.74
$119.17
10.5%
$127.03
$113.03
12.4%
0.5%
Columbia, SC
2
80.5%
80.2%
0.4%
$120.33
$121.34
(0.8%)
$96.92
$97.33
(0.4%)
0.5%
Florida Central
2
77.2%
77.1%
0.1%
$141.02
$136.19
3.5%
$108.80
$104.97
3.6%
0.5%
Iowa Area
3
68.4%
69.2%
(1.2%)
$129.20
$117.20
10.2%
$88.35
$81.13
8.9%
0.5%
Jacksonville, FL
2
81.5%
82.8%
(1.6%)
$128.36
$122.82
4.5%
$104.66
$101.65
3.0%
0.5%
Sacramento, CA
1
76.8%
75.2%
2.1%
$164.54
$161.59
1.8%
$126.39
$121.51
4.0%
0.5%
Detroit, MI
1
70.2%
66.4%
5.7%
$146.59
$136.07
7.7%
$102.95
$90.38
13.9%
0.4%
Macon/Warner Robins, GA
1
79.9%
79.8%
0.1%
$148.63
$139.38
6.6%
$118.80
$111.19
6.8%
0.4%
Cleveland, OH
1
62.4%
59.1%
5.6%
$179.40
$165.46
8.4%
$111.91
$97.75
14.5%
0.4%
Inland Empire, CA
1
76.3%
80.7%
(5.5%)
$174.92
$187.91
(6.9%)
$133.40
$151.60
(12.0%)
0.4%
Ohio Area
1
76.2%
74.9%
1.7%
$133.98
$121.18
10.6%
$102.05
$90.78
12.4%
0.4%
California South/Central
2
75.1%
77.9%
(3.6%)
$156.09
$154.09
1.3%
$117.28
$120.02
(2.3%)
0.4%
Palm Beach , FL
1
74.9%
67.5%
11.0%
$140.85
$145.78
(3.4%)
$105.44
$98.47
7.1%
0.4%
Savannah, GA
1
79.9%
84.6%
(5.6%)
$159.38
$151.63
5.1%
$127.31
$128.33
(0.8%)
0.4%
Greenville/Spartanburg, SC
1
75.3%
73.9%
1.9%
$157.63
$160.05
(1.5%)
$118.64
$118.27
0.3%
0.4%
Bergen/Passaic, NJ
1
90.0%
92.4%
(2.6%)
$137.90
$124.63
10.6%
$124.18
$115.14
7.9%
0.4%
Charleston, SC
1
81.1%
75.9%
6.9%
$130.97
$121.63
7.7%
$106.23
$92.30
15.1%
0.4%
Mississippi
2
71.1%
72.0%
(1.3%)
$119.55
$115.88
3.2%
$85.04
$83.38
2.0%
0.3%
South Carolina Area
1
76.4%
73.8%
3.5%
$157.62
$165.82
(4.9%)
$120.41
$122.34
(1.6%)
0.3%
Colorado Springs, CO
1
75.6%
71.1%
6.3%
$157.12
$156.27
0.5%
$118.80
$111.14
6.9%
0.3%
Central New Jersey
1
71.8%
63.4%
13.2%
$126.25
$123.32
2.4%
$90.70
$78.19
16.0%
0.3%
Greensboro/Winston Salem, NC
2
70.8%
68.3%
3.7%
$129.33
$123.53
4.7%
$91.54
$84.38
8.5%
0.3%
Raleigh/Durham/Chapel Hill, NC
1
71.2%
71.1%
0.1%
$130.53
$121.74
7.2%
$92.94
$86.58
7.3%
0.3%
Baltimore, MD
1
62.7%
64.9%
(3.4%)
$142.74
$137.96
3.5%
$89.48
$89.49
0.0%
0.3%
Utah Area
1
69.3%
70.1%
(1.1%)
$139.15
$128.12
8.6%
$96.45
$89.79
7.4%
0.2%
San Antonio, TX
1
78.6%
83.9%
(6.3%)
$101.51
$101.65
(0.1%)
$79.74
$85.28
(6.5%)
0.2%
Texas East
1
77.3%
84.6%
(8.6%)
$128.19
$112.85
13.6%
$99.10
$95.44
3.8%
0.2%
Chattanooga, TN
1
87.3%
76.3%
14.4%
$118.00
$125.48
(6.0%)
$103.05
$95.70
7.7%
0.2%
Mobile, AL
1
68.2%
63.7%
7.1%
$116.77
$117.05
(0.2%)
$79.63
$74.60
6.7%
0.1%
Minnesota
1
69.6%
65.3%
6.6%
$108.57
$105.39
3.0%
$75.61
$68.83
9.9%
0.1%
Cincinnati, OH
1
63.7%
65.1%
(2.2%)
$131.28
$120.54
8.9%
$83.60
$78.44
6.6%
0.1%
Charlotte, NC
1
70.2%
74.3%
(5.5%)
$104.40
$96.39
8.3%
$73.26
$71.61
2.3%
0.1%
Indianapolis, IN
1
62.2%
56.4%
10.3%
$126.90
$124.25
2.1%
$78.88
$70.14
12.5%
0.1%
Kansas
1
52.9%
61.1%
(13.4%)
$109.58
$103.14
6.2%
$58.02
$63.00
(7.9%)
0.0%
All Other Markets
123
72.7%
71.3%
2.0%
$145.85
$139.97
4.2%
$105.97
$99.75
6.2%
42.5%
Total Portfolio
223
74.2%
72.6%
2.2%
$156.55
$149.62
4.6%
$116.23
$108.67
7.0%
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 Region
Three Months Ended December
31
(Unaudited)
Region
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
STR Region
East North Central
16
61.1%
61.6%
(0.8%)
$148.05
$144.29
2.6%
$90.50
$88.82
1.9%
6.1%
East South Central
27
69.8%
70.4%
(0.9%)
$149.06
$145.34
2.6%
$104.10
$102.32
1.7%
10.6%
Middle Atlantic
12
70.5%
70.7%
(0.3%)
$155.91
$151.20
3.1%
$109.96
$106.90
2.9%
5.4%
Mountain
25
72.5%
73.9%
(1.9%)
$150.83
$141.95
6.3%
$109.35
$104.95
4.2%
14.0%
New England
6
74.3%
70.6%
5.2%
$179.48
$179.97
(0.3%)
$133.28
$127.08
4.9%
4.3%
Pacific
33
74.0%
73.8%
0.3%
$173.66
$171.27
1.4%
$128.51
$126.48
1.6%
22.6%
South Atlantic
53
71.0%
70.4%
0.9%
$145.66
$143.61
1.4%
$103.36
$101.09
2.2%
21.2%
West North Central
17
59.0%
61.4%
(3.9%)
$130.13
$126.25
3.1%
$76.82
$77.47
(0.8%)
3.3%
West South Central
34
69.3%
68.6%
1.0%
$134.37
$131.17
2.4%
$93.06
$89.99
3.4%
12.5%
Total Portfolio
223
69.7%
69.8%
(0.1%)
$150.72
$146.99
2.5%
$105.01
$102.56
2.4%
100.0%
Note: Region categorization based
on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Region
Year Ended December 31
(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
66.0%
63.8%
3.4%
$146.47
$139.14
5.3%
$96.61
$88.81
8.8%
5.7%
East South Central
27
76.1%
74.5%
2.1%
$149.02
$144.37
3.2%
$113.42
$107.55
5.5%
10.3%
Middle Atlantic
12
73.2%
71.3%
2.7%
$154.88
$149.50
3.6%
$113.42
$106.66
6.3%
5.0%
Mountain
25
76.4%
74.1%
3.1%
$156.82
$143.14
9.6%
$119.87
$106.07
13.0%
13.9%
New England
6
73.8%
72.6%
1.7%
$199.53
$195.00
2.3%
$147.16
$141.55
4.0%
4.2%
Pacific
33
79.1%
78.4%
0.9%
$186.04
$177.79
4.6%
$147.07
$139.38
5.5%
23.2%
South Atlantic
53
75.6%
74.1%
2.0%
$153.29
$147.88
3.7%
$115.92
$109.52
5.8%
22.0%
West North Central
17
67.1%
66.4%
1.1%
$141.48
$133.23
6.2%
$94.91
$88.43
7.3%
5.0%
West South Central
34
72.3%
69.9%
3.4%
$134.59
$130.48
3.1%
$97.29
$91.22
6.7%
10.7%
Total Portfolio
223
74.2%
72.6%
2.2%
$156.55
$149.62
4.6%
$116.23
$108.67
7.0%
100.0%
Note: Region categorization based
on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Chain Scale
Three Months Ended December
31
(Unaudited)
Chain Scale/Brand
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Upscale
AC Hotels
3
71.4%
70.4%
1.4%
$194.56
$183.79
5.9%
$139.00
$129.34
7.5%
3.3%
Aloft
1
72.3%
68.3%
5.9%
$171.43
$204.99
(16.4%)
$123.89
$139.93
(11.5%)
0.8%
Courtyard
35
67.1%
65.0%
3.2%
$152.13
$147.49
3.1%
$102.12
$95.90
6.5%
16.9%
Hilton Garden Inn
40
65.9%
67.9%
(2.9%)
$145.93
$144.37
1.1%
$96.14
$97.98
(1.9%)
16.5%
Homewood Suites
29
78.3%
76.9%
1.8%
$149.30
$145.37
2.7%
$116.87
$111.76
4.6%
12.3%
Hyatt House
2
63.0%
73.6%
(14.4%)
$153.60
$142.26
8.0%
$96.81
$104.71
(7.5%)
0.8%
Hyatt Place
3
76.2%
80.9%
(5.8%)
$147.62
$140.56
5.0%
$112.51
$113.66
(1.0%)
1.4%
Residence Inn
30
75.0%
73.9%
1.5%
$157.94
$155.33
1.7%
$118.39
$114.74
3.2%
16.3%
SpringHill Suites
10
69.7%
68.1%
2.3%
$155.98
$144.72
7.8%
$108.79
$98.56
10.4%
5.4%
Upscale Total
153
70.5%
70.1%
0.6%
$152.50
$148.61
2.6%
$107.46
$104.22
3.1%
73.7%
Upper Midscale
Fairfield
10
64.3%
67.8%
(5.2%)
$129.91
$130.09
(0.1%)
$83.54
$88.25
(5.3%)
2.6%
Hampton
36
67.0%
67.2%
(0.3%)
$149.43
$145.79
2.5%
$100.10
$97.91
2.2%
13.4%
Home2 Suites
10
71.8%
78.5%
(8.5%)
$155.53
$145.80
6.7%
$111.74
$114.50
(2.4%)
4.0%
TownePlace Suites
9
71.1%
71.0%
0.1%
$114.16
$115.33
(1.0%)
$81.14
$81.88
(0.9%)
2.1%
Upper Midscale Total
65
67.7%
69.3%
(2.3%)
$143.34
$139.92
2.4%
$97.09
$96.97
0.1%
22.1%
Upper Upscale
Embassy Suites
3
75.2%
79.7%
(5.6%)
$174.95
$172.94
1.2%
$131.61
$137.88
(4.5%)
2.0%
Marriott
2
64.2%
56.1%
14.4%
$165.35
$164.20
0.7%
$106.23
$92.19
15.2%
2.2%
Upper Upscale Total
5
69.2%
66.8%
3.6%
$170.06
$168.90
0.7%
$117.67
$112.79
4.3%
4.2%
Total Portfolio
223
69.7%
69.8%
(0.1%)
$150.72
$146.99
2.5%
$105.01
$102.56
2.4%
100.0%
Note: Chain scale categorization
based on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Chain Scale
Year Ended December 31
(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
74.9%
72.3%
3.6%
$214.30
$203.93
5.1%
$160.47
$147.42
8.9%
3.1%
Aloft
1
72.4%
65.6%
10.4%
$195.53
$221.17
(11.6%)
$141.64
$145.17
(2.4%)
0.7%
Courtyard
35
72.1%
69.3%
4.0%
$161.88
$154.75
4.6%
$116.65
$107.20
8.8%
18.3%
Hilton Garden Inn
40
71.2%
70.0%
1.7%
$150.93
$145.89
3.5%
$107.53
$102.08
5.3%
16.6%
Homewood Suites
29
81.3%
80.4%
1.1%
$151.10
$144.20
4.8%
$122.81
$115.87
6.0%
11.1%
Hyatt House
2
74.6%
74.5%
0.1%
$161.16
$142.42
13.2%
$120.26
$106.14
13.3%
1.0%
Hyatt Place
3
77.4%
75.0%
3.2%
$148.78
$139.89
6.4%
$115.16
$104.98
9.7%
1.2%
Residence Inn
30
78.3%
78.5%
(0.3%)
$165.24
$156.76
5.4%
$129.35
$123.07
5.1%
15.4%
SpringHill Suites
10
73.3%
69.4%
5.6%
$152.65
$141.43
7.9%
$111.94
$98.22
14.0%
4.7%
Upscale Total
153
74.8%
73.2%
2.2%
$158.25
$151.10
4.7%
$118.30
$110.54
7.0%
72.1%
Upper Midscale
Fairfield
10
69.5%
67.9%
2.4%
$131.57
$127.37
3.3%
$91.40
$86.44
5.7%
2.6%
Hampton
36
72.0%
69.7%
3.3%
$154.90
$149.27
3.8%
$111.56
$104.03
7.2%
14.0%
Home2 Suites
10
81.9%
81.5%
0.5%
$159.85
$151.40
5.6%
$131.00
$123.38
6.2%
4.8%
TownePlace Suites
9
76.0%
77.7%
(2.2%)
$121.38
$118.05
2.8%
$92.19
$91.77
0.5%
2.4%
Upper Midscale Total
65
73.5%
72.0%
2.1%
$148.41
$142.66
4.0%
$109.07
$102.73
6.2%
23.8%
Upper Upscale
Embassy Suites
3
80.5%
82.6%
(2.5%)
$202.62
$186.60
8.6%
$163.10
$154.11
5.8%
2.6%
Marriott
2
62.4%
55.0%
13.5%
$166.05
$158.95
4.5%
$103.63
$87.44
18.5%
1.5%
Upper Upscale Total
5
70.6%
67.4%
4.7%
$184.86
$174.22
6.1%
$130.43
$117.49
11.0%
4.1%
Total Portfolio
223
74.2%
72.6%
2.2%
$156.55
$149.62
4.6%
$116.23
$108.67
7.0%
100.0%
Note: Chain scale categorization
based on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Location
Three Months Ended December
31
(Unaudited)
Location
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
Q4 2022
% Change
Q4 2023
STR Location
Airport
18
76.0%
78.0%
(2.6%)
$138.59
$136.19
1.8%
$105.35
$106.17
(0.8%)
7.3%
Interstate
4
67.0%
67.5%
(0.7%)
$119.24
$111.70
6.8%
$79.86
$75.35
6.0%
1.0%
Resort
11
65.9%
69.7%
(5.5%)
$147.02
$145.13
1.3%
$96.93
$101.17
(4.2%)
4.2%
Small Metro/Town
9
77.6%
78.0%
(0.5%)
$140.61
$134.58
4.5%
$109.10
$105.00
3.9%
4.3%
Suburban
128
70.5%
69.9%
0.9%
$146.06
$142.29
2.6%
$102.92
$99.46
3.5%
50.6%
Urban
53
66.2%
66.3%
(0.2%)
$168.40
$164.52
2.4%
$111.45
$109.09
2.2%
32.6%
Total Portfolio
223
69.7%
69.8%
(0.1%)
$150.72
$146.99
2.5%
$105.01
$102.56
2.4%
100.0%
Note: Location categorization based
on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Location
Year Ended December 31
(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
79.5%
78.1%
1.8%
$143.35
$135.33
5.9%
$113.97
$105.73
7.8%
6.9%
Interstate
4
69.8%
68.1%
2.5%
$119.71
$114.96
4.1%
$83.55
$78.23
6.8%
1.0%
Resort
11
73.3%
72.8%
0.7%
$169.31
$165.40
2.4%
$124.05
$120.34
3.1%
5.8%
Small Metro/Town
9
79.2%
77.2%
2.6%
$142.03
$129.31
9.8%
$112.52
$99.88
12.7%
3.7%
Suburban
128
74.5%
73.3%
1.6%
$150.47
$143.44
4.9%
$112.07
$105.10
6.6%
49.5%
Urban
53
72.1%
69.5%
3.7%
$174.53
$168.59
3.5%
$125.85
$117.10
7.5%
33.1%
Total Portfolio
223
74.2%
72.6%
2.2%
$156.55
$149.62
4.6%
$116.23
$108.67
7.0%
100.0%
Note: Location categorization based
on STR designation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221575623/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804-727-6321 kclarke@applereit.com
Apple Hospitality REIT (NYSE:APLE)
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