<\/p>\n
Apple Hospitality REIT Reports Results of Operations for First Quarter 2025<\/b><\/p>\n
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| \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\n<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n % Change<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nNet income\n<\/p>\n<\/td>\n \n$31,221\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$54,050\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(42.2\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nNet income per share\n<\/p>\n<\/td>\n \n$0.13\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$0.22\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(40.9\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nOperating income\n<\/p>\n<\/td>\n \n$50,859\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$71,615\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(29.0\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nOperating margin %\n<\/p>\n<\/td>\n \n15.5\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n21.7\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(620 bps)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDAre\n<\/p>\n<\/td>\n \n$95,378\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$100,810\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(5.4\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel EBITDA\n<\/p>\n<\/td>\n \n$104,866\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$110,853\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(5.4\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel EBITDA Margin %\n<\/p>\n<\/td>\n \n32.3\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n34.1\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(180 bps)\n<\/p>\n<\/td>\n<\/tr>\n \nModified funds from operations (MFFO)\n<\/p>\n<\/td>\n \n$75,739\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$83,240\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(9.0\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nMFFO per share\n<\/p>\n<\/td>\n \n$0.32\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$0.34\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(5.9\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nAverage Daily Rate (ADR) (Actual)\n<\/p>\n<\/td>\n \n$156.24\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$153.18\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \nOccupancy (Actual)\n<\/p>\n<\/td>\n \n71.1\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n72.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.3\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nRevenue Per Available Room (RevPAR) (Actual)\n<\/p>\n<\/td>\n \n$111.04\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$110.25\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.7\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels ADR\n<\/p>\n<\/td>\n \n$156.56\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$155.05\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Occupancy\n<\/p>\n<\/td>\n \n71.1\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n72.2\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.5\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels RevPAR\n<\/p>\n<\/td>\n \n$111.36\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$111.97\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(0.5\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nDistributions paid\n<\/p>\n<\/td>\n \n$69,615\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$70,156\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(0.8\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nDistributions paid per share\n<\/p>\n<\/td>\n \n$0.29\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$0.29\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nCash and cash equivalents\n<\/p>\n<\/td>\n \n$14,917\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nTotal debt outstanding\n<\/p>\n<\/td>\n \n$1,540,266\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nTotal debt outstanding, net of cash and cash equivalents\n<\/p>\n<\/td>\n \n$1,525,349\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nTotal debt outstanding, net of cash and cash equivalents, to total \n33.1\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n(1)\n<\/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.\n<\/p>\n<\/td>\n<\/tr>\n \n(2)\n<\/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 $12.91 on March 31, 2025.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Comparable Hotels is defined as the 218 hotels owned and held for use by the Company as of March 31, 2025, and excludes one non-hotel property. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company’s ownership, and for dispositions and assets held for sale, results have been excluded for the Company’s period of ownership. Results for periods prior to the Company’s ownership have not been included in the Company’s actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company’s ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.<\/i><\/p>\n \nJustin Knight, Chief Executive Officer of Apple Hospitality, commented, \u201cAlthough a variety of factors weighed on hotel performance during the first quarter of this year and Comparable Hotels RevPAR modestly declined 0.5% compared to the first quarter of 2024, demand remained steady across our portfolio, supporting continued strength in absolute occupancy and rate. We entered 2025 anticipating the potential for a broad range of possible macroeconomic scenarios, as with any change in administration, and were prepared to adjust operational and capital allocation priorities accordingly. In recent months, our corporate team, together with our third-party management companies, has been working to optimize the mix of business at our hotels in response to changes in government-related demand in some of our markets and to maximize profitability in the current environment.\n<\/p>\n \n\u201cWe are disciplined in our approach to capital allocation and portfolio management, seeking opportunities that refine and enhance our existing portfolio, drive earnings per share and maximize long-term value for our shareholders,” said Mr. Knight. “During the quarter, we completed the sale of two hotels for a combined gross sales price of $21 million and contracted for the sale of one of our remaining noncore, full-service assets, the Houston Marriott Energy Corridor, for $16 million. Additionally, we are excited to announce the pending acquisition of the Homewood Suites Tampa Brandon which represents a unique opportunity in the current environment. The asset, which sits adjacent to our Embassy Suites Tampa Brandon, was offered for sale by the loan servicer and the $19 million purchase price represents a strong double-digit going-in-yield on in-place cash flow with additional upside potential through operational synergies and our planned renovation. As we seek to maximize returns on allocated capital, we evaluate acquisition opportunities relative to the returns we are able to achieve through the purchase of our own shares. Since the beginning of the year, we have repurchased approximately 2.4 million of our common shares for a total of $32 million. Should our stock continue to trade at a meaningful discount to values we can achieve in private market transactions, we anticipate we will opportunistically sell assets and redeploy proceeds primarily into additional share repurchases. As we have demonstrated over our long history in the lodging industry, we will continue to monitor the market and adjust our focus appropriately as conditions change. We are confident opportunistic transactions like these will further drive long-term value for our shareholders.”\n<\/p>\n \nMr. Knight continued, \u201cWe have tested and refined our differentiated strategy across multiple economic cycles, intentionally choosing to invest in high quality hotels that operate efficiently, produce strong cash flow, provide our guests with a compelling value proposition, and appeal to a broad set of business and leisure customers. With the strength of our broadly diversified portfolio, the overall stability of our business, our low leverage and the depth of our team, we are confident we are well positioned for any macroeconomic environment.\u201d\n<\/p>\n Hotel Portfolio Overview<\/span><\/b><\/p>\n \nAs of March 31, 2025, Apple Hospitality owned 219 hotels, including one hotel classified as held for sale, with an aggregate of 29,558 guest rooms located in 84 markets throughout 37 states and the District of Columbia.\n<\/p>\n First Quarter 2025 Highlights<\/span><\/b><\/p>\n \nThe Company is providing monthly performance detail for its Comparable Hotels with comparisons to the respective periods of 2024. The following table highlights the Company\u2019s Comparable Hotels monthly performance during the first quarter 2025 as compared to the first quarter 2024 (in thousands, except statistical data):\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n % Change<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n January<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n February<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n March<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Q1 2025<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Q1 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2024<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Q1 2024<\/b><\/p>\n<\/td>\n<\/tr>\n \nADR (Comparable Hotels)\n<\/p>\n<\/td>\n \n$147.87\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$159.11\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$161.59\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$156.56\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$145.27\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$155.71\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$162.59\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$155.05\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.8\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2.2\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(0.6\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \nOccupancy (Comparable Hotels)\n<\/p>\n<\/td>\n \n63.7\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n73.3\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n76.6\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n71.1\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n64.7\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n74.2\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n78.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n72.2\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.5\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.2\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.8\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.5\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nRevPAR (Comparable Hotels)\n<\/p>\n<\/td>\n \n$94.22\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$116.66\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$123.72\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$111.36\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$93.92\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$115.46\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$126.75\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$111.97\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.3\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(2.4\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(0.5\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nOperating income (Actual)\n<\/p>\n<\/td>\n \n$3,624\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$16,254\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$30,981\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$50,859\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$4,834\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$34,344\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$32,437\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$71,615\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(25.0\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(52.7\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(4.5\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(29.0\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nAdjusted Hotel EBITDA (Actual) (1)<\/sup><\/p>\n<\/td>\n \n$23,209\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$35,753\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$46,303\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$105,265\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$23,736\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$36,818\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$49,239\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$109,793\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(2.2\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(2.9\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(6.0\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(4.1\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel \n$23,255\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$35,558\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$46,053\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$104,866\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$23,868\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$36,900\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$50,085\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$110,853\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(2.6\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(3.6\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(8.1\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(5.4\n<\/p>\n<\/td>\n \n%)\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n(1)\n<\/p>\n<\/td>\n \nSee explanation and reconciliation of Adjusted Hotel EBITDA to net income included below.\n<\/p>\n<\/td>\n<\/tr>\n \n(2)\n<\/p>\n<\/td>\n \nSee explanation and reconciliation of Comparable Hotels Adjusted Hotel EBITDA to Adjusted Hotel EBITDA included below.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Comparable Hotels is defined as the 218 hotels owned and held for use by the Company as of March 31, 2025, and excludes one non-hotel property. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company’s ownership, and for dispositions and assets held for sale, results have been excluded for the Company’s period of ownership. Results for periods prior to the Company’s ownership have not been included in the Company’s actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company’s ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.<\/i><\/p>\n Portfolio Activity<\/span><\/b><\/p>\n Contracts for Potential Acquisitions<\/b><\/p>\n \nThe Company currently has two hotels under contract for purchase for a combined total anticipated purchase price of approximately $117.0 million. The hotels currently under contract for purchase include:\n<\/p>\n \nThere are many conditions to closing on 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.\n<\/p>\n Dispositions<\/b><\/p>\n \nAs previously announced, during the three months ended March 31, 2025, the Company sold two hotels in two separate transactions for a combined gross sales price of approximately $21.0 million, resulting in a combined gain on the sales of approximately $3.6 million. The hotels sold include:\n<\/p>\n Contract for Potential Disposition<\/b><\/p>\n \nIn March 2025, the Company entered into a contract for the sale of its 206-room Houston Marriott Energy Corridor for a gross sales price of approximately $16.0 million. The Company expects to complete the sale of the hotel in the third quarter 2025. There are many conditions to closing on the sale of this hotel that have not yet been satisfied, and there can be no assurance that a closing on the sale of this hotel will occur under the outstanding sale agreement.\n<\/p>\n New York Independent Boutique Hotel<\/b><\/p>\n \nThe Company’s independent boutique hotel in New York, New York (the “non-hotel property”) was previously leased to a third-party hotel operator, and as of March 31, 2025, excluded from the Company’s hotel and guest room counts. As a result of the third-party hotel operator’s failure to make lease payments, in 2024, the Company commenced legal proceedings to remove the third-party hotel operator from possession of the non-hotel property. In April 2025, the Company and the third-party hotel operator entered into an agreement to mutually release all claims, to terminate the lease, and for the third-party hotel operator to voluntarily surrender possession of the non-hotel property. On April 4, 2025, the Company recovered possession of the non-hotel property and reinstated operations of the hotel’s 209 guest rooms through a third-party manager engaged by the Company.\n<\/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, 2025, the Company invested approximately $20 million in capital expenditures. The Company anticipates investing approximately $80 million to $90 million in capital improvements during 2025, which includes comprehensive renovation projects for approximately 20 hotels, however, inflationary pressures, supply chain shortages or tariffs, among other issues, may result in increased costs and delays for anticipated projects.\n<\/p>\n Balance Sheet and Liquidity<\/span><\/b><\/p>\n \nAs of March 31, 2025, the Company had approximately $1.5 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.8%, cash on hand of approximately $15 million and availability under its revolving credit facility of approximately $500 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company\u2019s total outstanding debt as of March 31, 2025, was comprised of approximately $252 million in property-level debt secured by 14 hotels and approximately $1.3 billion outstanding under its unsecured credit facilities. In April 2025, the Company repaid in full one secured mortgage loan, for a total of approximately $7 million, bringing the number of unencumbered hotels in the Company\u2019s portfolio as of April 30, 2025, to 207. The Company\u2019s total debt to total capitalization, net of cash and cash equivalents at March 31, 2025, was approximately 33%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of March 31, 2025, the Company\u2019s weighted-average debt maturities were approximately two years.\n<\/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, 2025, the Company purchased, under its Share Repurchase Program, approximately 1.9 million common shares at a weighted-average market purchase price of approximately $13.61 per common share, for an aggregate purchase price of approximately $26.3 million. Subsequent to the end of the first quarter 2025, the Company purchased, under its Share Repurchase Program, an additional 0.5 million of its common shares, bringing the total shares purchased year to date through April 30, 2025, to approximately 2.4 million common shares at a weighted-average market purchase price of approximately $13.32 per common share, for an aggregate purchase price of approximately $32.3 million. As of April 30, 2025, the Company had approximately $268.5 million remaining under its Share Repurchase Program for the repurchase of shares.\n<\/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, 2025, the Company had $500 million remaining under its ATM Program for the issuance of shares. No shares were sold under the ATM Program during the three months ended March 31, 2025.\n<\/p>\n Shareholder Distributions<\/span><\/b><\/p>\n \nDuring the three months ended March 31, 2025, the Company paid distributions totaling $0.29 per common share, including a special cash distribution of $0.05 per common share, that was paid on January 15, 2025, to shareholders of record as of December 31, 2024. Based on the Company\u2019s common stock closing price of $11.85 on April 29, 2025, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 8.1%. 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.\n<\/p>\n Updated 2025 Outlook<\/span><\/b><\/p>\n \nBased on first quarter 2025 performance and reflective of a slight pullback in future bookings primarily attributable to greater macroeconomic uncertainty, the Company is updating its operational and financial outlook for 2025. This outlook, which is based on management\u2019s current view of both operating and economic fundamentals of the Company’s existing portfolio of hotels, does not take into account any unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions or dispositions. As compared to the midpoint of previously provided 2025 guidance, the Company is decreasing Net Income by $6.5 million, decreasing Comparable Hotels RevPAR Change by 200 bps, decreasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 50 bps, and decreasing Adjusted EBITDAre by $14 million. Comparable Hotels RevPAR Change guidance, which is the change in Comparable Hotels RevPAR in 2025 compared to 2024, and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired and announced for acquisition by year-end 2025 as if the hotels were owned as of January 1, 2024, exclude completed dispositions since January 1, 2024, exclude announced dispositions anticipated to close by year-end 2025, and exclude one non-hotel property. Results for periods prior to the Company\u2019s ownership are not included in the Company\u2019s 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 2025, the Company anticipates its 2025 results will be in the following range:\n<\/p>\n |