<\/p>\n
Apple Hospitality REIT Reports Results of Operations for First Quarter 2023<\/b><\/p>\n
| \n Apple Hospitality REIT, Inc.<\/b><\/p>\n Selected Statistical and Financial Data<\/b><\/p>\n As of and For the Three Months Ended March 31<\/b><\/p>\n (Unaudited) (in thousands, except statistical and per share amounts)(1)<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n % Change<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n$32,923<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$18,002<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n82.9%<\/p>\n<\/td>\n<\/tr>\n \nNet income per share<\/p>\n<\/td>\n \n$0.14<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$0.08<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n75.0%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOperating income<\/p>\n<\/td>\n \n$49,247<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$32,835<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n50.0%<\/p>\n<\/td>\n<\/tr>\n \nOperating margin %<\/p>\n<\/td>\n \n15.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12.6%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n320 bps<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDAre<\/p>\n<\/td>\n \n$95,288<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$78,298<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.7%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel EBITDA<\/p>\n<\/td>\n \n$106,749<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$88,366<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n20.8%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel EBITDA Margin %<\/p>\n<\/td>\n \n34.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n33.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n60 bps<\/p>\n<\/td>\n<\/tr>\n \nModified funds from operations (MFFO)<\/p>\n<\/td>\n \n$78,959<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$63,460<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n24.4%<\/p>\n<\/td>\n<\/tr>\n \nMFFO per share<\/p>\n<\/td>\n \n$0.34<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$0.28<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.4%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAverage Daily Rate (ADR) (Actual)<\/p>\n<\/td>\n \n$152.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$137.03<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.9%<\/p>\n<\/td>\n<\/tr>\n \nOccupancy (Actual)<\/p>\n<\/td>\n \n72.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n67.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.3%<\/p>\n<\/td>\n<\/tr>\n \nRevenue Per Available Room (RevPAR) (Actual)<\/p>\n<\/td>\n \n$109.46<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$91.98<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n19.0%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels ADR<\/p>\n<\/td>\n \n$152.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$137.02<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.9%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Occupancy<\/p>\n<\/td>\n \n72.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n67.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.5%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels RevPAR<\/p>\n<\/td>\n \n$109.46<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$91.80<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n19.2%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDistributions paid<\/p>\n<\/td>\n \n$73,399<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$13,701<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n435.7%<\/p>\n<\/td>\n<\/tr>\n \nDistributions paid per share<\/p>\n<\/td>\n \n$0.32<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$0.06<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n433.3%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCash and cash equivalents<\/p>\n<\/td>\n \n$6,093<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal debt outstanding<\/p>\n<\/td>\n \n$1,425,147<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal debt outstanding, net of cash and cash equivalents<\/p>\n<\/td>\n \n$1,419,054<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal debt outstanding, net of cash and cash equivalents, to total capitalization (2)<\/sup><\/p>\n<\/td>\n \n28.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n(1)<\/p>\n<\/td>\n \nExplanations of and reconciliations to net income determined in accordance with generally accepted accounting principles (\u201cGAAP\u201d) of non-GAAP financial measures, Adjusted EBITDAre, Comparable Hotels Adjusted Hotel EBITDA and MFFO, are included below.<\/p>\n<\/td>\n<\/tr>\n \n(2)<\/p>\n<\/td>\n \nTotal 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\u2019s closing share price of $15.52 on March 31, 2023.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Comparable Hotels is defined as the 220 hotels owned by the Company as of March 31, 2023. 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.<\/i><\/p>\n \nJustin Knight, Chief Executive Officer of Apple Hospitality, commented, \u201cContinued strength in leisure demand and increased business travel resulted in strong operating fundamentals for the quarter. First quarter 2023 Comparable Hotels RevPAR improved by 19%, ADR increased by 11% and Occupancy was up by more than 7% as compared to first quarter 2022. We work closely with the management teams at our hotels to counter inflationary pressures and improve operating efficiency while maintaining strong guest satisfaction necessary for sustained rate growth. While we are mindful of the potential for macroeconomic headwinds as we move through the year, our business continues to improve. Booking trends remain strong, the supply picture is favorable, and improvements in business travel have lifted midweek occupancies in recent weeks.”<\/p>\n \nMr. Knight continued, \u201cWe continue to execute against an investment strategy that has proven successful through multiple economic cycles. Our portfolio of select-service hotels is broadly diversified across high-end suburban, urban and developing markets that are home to a wide variety of demand generators. Our hotels are franchised with industry-leading brands, managed by some of the best management companies in the industry and provide a strong value proposition with broad consumer appeal. Underlying the strength of our portfolio is a balance sheet with low leverage and financial flexibility, a consistent reinvestment and portfolio management strategy, and a corporate team with tremendous experience. We are confident we are well positioned to continue to outperform and maximize shareholder value in any macroeconomic environment.”<\/p>\n Hotel Portfolio Overview<\/span><\/b><\/p>\n \nAs of March 31, 2023, Apple Hospitality owned 220 hotels with an aggregate of 28,984 guest rooms located in 87 markets throughout 37 states.<\/p>\n First Quarter 2023 Highlights<\/span><\/b><\/p>\n \nThe following tables highlight the Company\u2019s monthly performance during the first quarter of 2023, as compared to the first quarters of 2022 and 2019 (in thousands, except statistical data):<\/p>\n \n\u00a0<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2019<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2019<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2019<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2019<\/b><\/p>\n<\/td>\n<\/tr>\n \nADR<\/p>\n<\/td>\n \n$138.90<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$154.81<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$160.19<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$152.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$126.51<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$135.43<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$146.07<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$137.03<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$129.81<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$137.05<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$141.16<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$136.36<\/p>\n<\/td>\n<\/tr>\n \nOccupancy<\/p>\n<\/td>\n \n63.6%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n73.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n79.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n72.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n56.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n69.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n76.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n67.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n66.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n75.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n80.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n73.9%<\/p>\n<\/td>\n<\/tr>\n \nRevPAR<\/p>\n<\/td>\n \n$88.32<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$113.42<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$127.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$109.46<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$71.11<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$93.42<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$111.55<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$91.98<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$85.78<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$103.35<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$113.23<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$100.71<\/p>\n<\/td>\n<\/tr>\n \nOperating income (loss)<\/p>\n<\/td>\n \n$3,524<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$15,275<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$30,448<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$49,247<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$(2,634)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$7,984<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$27,485<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$32,835<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$8,025<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$16,631<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$29,195<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$53,851<\/p>\n<\/td>\n<\/tr>\n \nAdjusted Hotel EBITDA (1)<\/sup><\/p>\n<\/td>\n \n$21,655<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$34,876<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$50,218<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$106,749<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$15,166<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$26,150<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$46,620<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$87,936<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$26,418<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$35,232<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$47,154<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$108,804<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n % Change<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n % Change<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2019<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2019<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2019<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2019<\/b><\/p>\n<\/td>\n<\/tr>\n \nADR<\/p>\n<\/td>\n \n$138.90<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$154.81<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$160.19<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$152.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n14.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11.5%<\/p>\n<\/td>\n<\/tr>\n \nOccupancy<\/p>\n<\/td>\n \n63.6%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n73.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n79.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n72.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(3.8%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.8%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1.1%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.6%)<\/p>\n<\/td>\n<\/tr>\n \nRevPAR<\/p>\n<\/td>\n \n$88.32<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$113.42<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$127.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$109.46<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n24.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n19.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8.7%<\/p>\n<\/td>\n<\/tr>\n \nOperating income<\/p>\n<\/td>\n \n$3,524<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$15,275<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$30,448<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$49,247<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n91.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n50.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(56.1%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(8.2%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(8.5%)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted Hotel EBITDA (1)<\/sup><\/p>\n<\/td>\n \n$21,655<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$34,876<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$50,218<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$106,749<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n42.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n33.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(18.0%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1.0%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1.9%)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Note:<\/b> Comparisons to 2019 operating results are included to provide a better understanding of the Company\u2019s recovery from the impact of COVID-19 on hotel operations.<\/i><\/p>\n<\/td>\n<\/tr>\n \n(1)<\/p>\n<\/td>\n \nSee explanation and reconciliation of Adjusted Hotel EBITDA to net income included below.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Board of Directors<\/span><\/b><\/p>\n \nOn March 3, 2023, the Company announced the appointment of Carolyn Handlon to its Board of Directors, effective March 1, 2023. Following her appointment to the Board of Directors, Carolyn Handlon was appointed to the Company’s Audit Committee and Nominating and Corporate Governance Committee, effective March 24, 2023.<\/p>\n Portfolio Activity<\/span><\/b><\/p>\n Contracts for Potential Acquisition<\/b><\/p>\n \nOn February 27, 2023, the Company entered into a contract for the potential acquisition of the newly renovated, 154-room Courtyard by Marriott Cleveland University Circle in Cleveland, Ohio, for $31 million. In addition, as previously announced, the Company has an outstanding contract for the purchase of an Embassy Suites by Hilton in Madison, Wisconsin, for an anticipated total purchase price of approximately $79 million. The Embassy Suites in Madison is currently under development and expected to include 260 rooms. 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. Assuming all conditions to closing are met, the Company anticipates acquiring the hotel in Cleveland during the second quarter 2023 and the hotel in Madison following completion of construction, which is expected to occur in early 2024.<\/p>\n Capital Improvements<\/span><\/b><\/p>\n \nApple Hospitality consistently reinvests in its hotels to maintain and enhance each property\u2019s relevance and competitive position within its respective market. During the three months ended March 31, 2023, the Company invested approximately $18 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.<\/p>\n Balance Sheet and Liquidity<\/span><\/b><\/p>\n Summary<\/b><\/p>\n \nAs of March 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 $6 million and availability under its revolving credit facility of approximately $610 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company\u2019s total outstanding debt as of March 31, 2023, was comprised of approximately $290 million in property-level debt secured by 15 hotels and approximately $1.1 billion outstanding under its unsecured credit facilities, including the remaining $50 million term loan availability which was drawn in January 2023. During the first quarter 2023, the Company repaid in full four secured mortgage loans for a total of approximately $37 million, increasing the number of unencumbered hotels in the Company\u2019s portfolio as of March 31, 2023, to 205. The Company\u2019s total debt to total capitalization, net of cash and cash equivalents at March 31, 2023, was approximately 29%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of March 31, 2023, the Company\u2019s weighted-average debt maturities are 4.4 years.<\/p>\n Capital Markets<\/span><\/b><\/p>\n Share Repurchase Program<\/b><\/p>\n \nThe Company has in place a Share Repurchase Program that provides for share repurchases in open market transactions. During the three months ended March 31, 2023, the Company purchased, under its Share Repurchase Program, approximately 0.3 million of its common shares at a weighted-average market purchase price of approximately $14.22 per common share, for an aggregate purchase price of approximately $4 million. As of March 31, 2023, the Company had approximately $339 million remaining under its Share Repurchase Program for the repurchase of shares. Shares were repurchased under a written trading plan as part of the Share Repurchase Program that provides for share repurchases in open market transactions and is intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.<\/p>\n ATM Program<\/b><\/p>\n \nThe Company also has in place an at-the-market offering program (the \u201cATM Program\u201d). As of March 31, 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 first quarter 2023.<\/p>\n Shareholder Distributions<\/span><\/b><\/p>\n \nDuring the three months ended March 31, 2023, the Company paid distributions totaling $0.32 per common share, including a special cash distribution of $0.08 per common share, that was paid on January 17, 2023, to shareholders of record as of December 30, 2022. Based on the Company\u2019s common stock closing price of $14.87 on May 1, 2023, the current annualized monthly cash distribution of $0.96 per common share represents an annual yield of approximately 6.5%. While the Company currently expects monthly distributions to continue, each distribution is subject to approval by the Company\u2019s Board of Directors. The Company\u2019s Board of Directors, in consultation with management, will continue to monitor the Company\u2019s 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\u2019s REIT status for federal income tax purposes, and may make adjustments as it deems appropriate.<\/p>\n 2023 Outlook<\/span><\/b><\/p>\n \nThe Company is providing its operational and financial outlook for 2023, which is unchanged from the 2023 outlook previously provided. Given the current level of visibility into future performance as a result of short-term booking windows for the Company’s portfolio of rooms-focused hotels and meaningful macroeconomic uncertainty, this outlook reflects a broad range of Comparable Hotels RevPAR Change, which is the change in Comparable Hotels RevPAR in 2023 compared to 2022, and other key metrics for 2023. This outlook is based on management\u2019s current view and 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. Results for the first quarter 2023 benefited significantly from the easier comparison to the first quarter 2022 when the Omicron variant negatively impacted lodging demand. The high end of the full year range reflects relatively steady macroeconomic conditions throughout 2023, with continued strength in leisure demand and improvement in business transient. The low end of the range reflects a softening of the economy beginning in the second quarter with Comparable Hotels RevPAR Change roughly flat compared to 2022 in the second half of the year. Comparable Hotels RevPAR Change and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, as if the hotels were owned as of January 1, 2022, and exclude dispositions and assets held for sale since January 1, 2022. For the full year 2023, the Company anticipates its 2023 results will be in the following range:<\/p>\n |