<\/p>\n
Apple Hospitality REIT Reports Results of Operations for First Quarter 2026<\/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<\/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 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/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$27,699<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$31,221<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(11.3%)<\/p>\n<\/td>\n<\/tr>\n \nNet income per share<\/p>\n<\/td>\n \n$0.12<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$0.13<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(7.7%)<\/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$48,013<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$50,859<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(5.6%)<\/p>\n<\/td>\n<\/tr>\n \nOperating margin %<\/p>\n<\/td>\n \n14.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n15.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(130 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$100,597<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$98,446<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.2%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel EBITDA<\/p>\n<\/td>\n \n$108,447<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$104,680<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.6%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel EBITDA Margin %<\/p>\n<\/td>\n \n32.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n32.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(20 bps)<\/p>\n<\/td>\n<\/tr>\n \nModified funds from operations (MFFO)<\/p>\n<\/td>\n \n$80,283<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$78,807<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.9%<\/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$0.33<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.0%<\/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 \nAverage Daily Rate (ADR) (Actual)<\/p>\n<\/td>\n \n$157.19<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$156.24<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.6%<\/p>\n<\/td>\n<\/tr>\n \nOccupancy (Actual)<\/p>\n<\/td>\n \n72.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n71.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.4%<\/p>\n<\/td>\n<\/tr>\n \nRevenue Per Available Room (RevPAR) (Actual)<\/p>\n<\/td>\n \n$114.43<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$111.04<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.1%<\/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$157.35<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$157.26<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.1%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Occupancy<\/p>\n<\/td>\n \n72.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n71.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.1%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels RevPAR<\/p>\n<\/td>\n \n$114.61<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$112.14<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.2%<\/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 (2)<\/sup><\/p>\n<\/td>\n \n$56,608<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$69,615<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(18.7%)<\/p>\n<\/td>\n<\/tr>\n \nDistributions paid per share (2)<\/sup><\/p>\n<\/td>\n \n$0.24<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$0.29<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(17.2%)<\/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 \nCash and cash equivalents<\/p>\n<\/td>\n \n$7,837<\/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$1,571,763<\/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$1,563,926<\/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 (3)<\/sup><\/p>\n<\/td>\n \n36.5%<\/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 \nFor the three months ended March 31, 2025, distributions included a special distribution of $0.05 per common share paid on January 15, 2025, to shareholders of record as of December 31, 2024.<\/p>\n<\/td>\n<\/tr>\n \n(3)<\/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 $11.51 on March 31, 2026.<\/p>\n<\/td>\n<\/tr>\n Comparable Hotels is defined as the 216 hotels owned and held for use by the Company as of March 31, 2026. 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<\/td>\n<\/tr>\n<\/table>\n \nJustin Knight, Chief Executive Officer of Apple Hospitality, commented, \u201cWe are pleased to report a stronger-than-anticipated start to 2026, with first quarter Comparable Hotels RevPAR growth of more than 2% despite a challenging comparison to the first quarter of 2025 which benefited from wildfire-related recovery business in Southern California and the presidential inauguration in Washington, D.C. The efficient operating model of our hotels, combined with our prudent management of expenses, enabled us to deliver meaningful flow-through of top-line improvements to bottom-line performance, resulting in growth across first quarter Comparable Hotels Adjusted Hotel EBITDA, Adjusted EBITDAre and Modified Funds from Operations. Preliminary reports for the month of April indicate Comparable Hotels RevPAR growth of more than 4% as compared to the same period last year, supported by continued strength in demand and the benefit of favorable year-over-year comparisons. While geopolitical and macroeconomic uncertainties warrant a measured view of the balance of the year, demand for our broadly diversified, rooms-focused hotels has proven resilient. Recent improvements in occupancy and booking trends, combined with the strength and expertise of our operating and corporate teams, reinforce our confidence that we are well positioned to capture demand across our markets.<\/p>\n \n\u201cDisciplined capital allocation has been central to our success over decades in the lodging industry,\u201d commented Mr. Knight. \u201cWe prudently balance near- and long-term investment decisions to capitalize on current opportunities while ensuring we are well positioned for the future. When combined with our keen focus on operating fundamentals, this approach has enabled us to deliver compelling total returns to our shareholders across economic cycles through improvements in operating performance and long-term value creation. In April of this year, we completed the sale of our Hampton Inn & Suites in Rochester, Minnesota, for approximately $9 million. We continue to identify and execute on select opportunities that strengthen our existing portfolio, optimize our capital reinvestment program and enhance our long-term positioning.\u201d<\/p>\n \nMr. Knight continued, \u201cWe are confident that with the experience, discipline and agility of our teams, the broad consumer appeal of our portfolio, and the strength and flexibility of our balance sheet, we are well positioned to successfully navigate changing market conditions and capitalize on emerging opportunities to deliver growth and maximize total returns for our shareholders over time.\u201d<\/p>\n Hotel Portfolio Overview<\/span><\/b><\/p>\n \nAs of March 31, 2026, Apple Hospitality owned 217 hotels with an aggregate of 29,583 guest rooms located in 84 markets throughout 37 states and the District of Columbia, including one hotel with 124 guest rooms classified as held for sale, which was sold in April 2026.<\/p>\n First Quarter 2026 Highlights<\/span><\/b><\/p>\n \nThe following table highlights the Company\u2019s Comparable Hotels monthly performance during the first quarter 2026 as compared to the first quarter 2025 (in thousands, except statistical data):<\/p>\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 \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<\/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 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \nADR (Comparable Hotels)<\/p>\n<\/td>\n \n$146.55<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$158.72<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$164.81<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$157.35<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$148.51<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$159.84<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$162.31<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$157.26<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1.3%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.7%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.1%<\/p>\n<\/td>\n<\/tr>\n \nOccupancy (Comparable Hotels)<\/p>\n<\/td>\n \n63.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n75.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n79.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n72.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n63.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n73.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n76.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n71.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.3%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.1%<\/p>\n<\/td>\n<\/tr>\n \nRevPAR (Comparable Hotels)<\/p>\n<\/td>\n \n$93.37<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$119.22<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$131.69<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$114.61<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$94.93<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$117.51<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$124.51<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$112.14<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.2%<\/p>\n<\/td>\n<\/tr>\n \nOperating income (Actual)<\/p>\n<\/td>\n \n$582<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$16,151<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$31,280<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$48,013<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3,624<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$16,254<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$30,981<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$50,859<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(83.9%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(5.6%)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted Hotel EBITDA (Actual) (1)<\/sup><\/p>\n<\/td>\n \n$20,493<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$36,145<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$51,841<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$108,479<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$23,209<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$35,753<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$46,303<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$105,265<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(11.7%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.1%<\/p>\n<\/td>\n<\/tr>\n \nComparable Hotels Adjusted Hotel \n$20,508<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$36,134<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$51,805<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$108,447<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$23,324<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$35,458<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$45,898<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$104,680<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(12.1%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.6%<\/p>\n<\/td>\n<\/tr>\n<\/table>\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 \n(2)<\/p>\n<\/td>\n \nSee explanation and reconciliation of Comparable Hotels Adjusted Hotel EBITDA to Adjusted Hotel EBITDA included below.<\/p>\n<\/td>\n<\/tr>\n Comparable Hotels is defined as the 216 hotels owned and held for use by the Company as of March 31, 2026. 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<\/td>\n<\/tr>\n<\/table>\n Portfolio Activity<\/span><\/b><\/p>\n Contract for Potential Acquisition<\/b><\/p>\n \nAs previously announced, the Company has entered into a fixed-price, forward-purchase contract for the purchase of an AC Hotel by Marriott that is under development in Anchorage, Alaska, for an anticipated total purchase price of $65.5 million with an expected 160 rooms, which the Company anticipates acquiring in the fourth quarter 2027. There are many conditions to closing on this hotel that have not yet been satisfied, and there can be no assurance that closing on this hotel will occur under the outstanding purchase contract.<\/p>\n Development Project<\/b><\/p>\n \nAs previously announced, the Company has entered into a fixed-price, forward-purchase contract with a third-party developer to develop a dual-branded property, consisting of an AC Hotel by Marriott and a Residence Inn by Marriott in Las Vegas, Nevada, for an anticipated total purchase price of approximately $143.7 million. The hotels will be developed on the land the Company owns adjacent to its SpringHill Suites by Marriott Las Vegas Convention Center. The Company anticipates the hotels will be completed and opened for business in the second quarter 2028. Upon completion, the AC Hotel is expected to have approximately 237 guest rooms and the Residence Inn is expected to have approximately 160 guest rooms.<\/p>\n Dispositions<\/b><\/p>\n \nIn April 2026, the Company sold the 124-room Hampton Inn & Suites Rochester-North, in Rochester, Minnesota, for a gross sales price of approximately $8.7 million.<\/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, 2026, the Company invested approximately $27.5 million in capital expenditures. The Company anticipates investing approximately $80 million to $90 million in capital improvements during 2026, which includes comprehensive renovation projects for approximately 21 hotels, however, inflationary pressures, supply chain shortages or tariffs, among other issues, may result in increased costs and delays for anticipated projects.<\/p>\n Balance Sheet and Liquidity<\/span><\/b><\/p>\n \nAs of March 31, 2026, the Company had approximately $1.6 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.6%, cash on hand of approximately $8 million and availability under its revolving credit facility of approximately $559 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company\u2019s total outstanding debt as of March 31, 2026, was comprised of approximately $183 million in property-level debt secured by 10 hotels and approximately $1.4 billion outstanding under its unsecured credit facilities. The number of unencumbered hotels in the Company\u2019s portfolio as of March 31, 2026, was 207. The Company\u2019s total debt to total capitalization, net of cash and cash equivalents at March 31, 2026, was approximately 36.5%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of March 31, 2026, the Company\u2019s weighted-average debt maturities were approximately three 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. The Company did not repurchase any common shares during the three months ended March 31, 2026. As of March 31, 2026, the Company had approximately $242.5 million remaining under its Share Repurchase Program for the repurchase of shares.<\/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, 2026, 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, 2026.<\/p>\n Shareholder Distributions<\/span><\/b><\/p>\n \nDuring the three months ended March 31, 2026, the Company paid distributions totaling $0.24 per common share. Based on the Company\u2019s common stock closing price of $13.39 on May 1, 2026, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 7.2%. 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 Updated 2026 Outlook<\/span><\/b><\/p>\n \nThe Company is updating its operational and financial outlook for 2026. 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. The revised guidance range reflects the Company\u2019s stronger-than-anticipated first quarter 2026 performance, while maintaining measured expectations given broader economic and geopolitical uncertainty. The Company is encouraged by the setup for the remainder of the year, given stronger-than-expected transient demand and upcoming favorable comparisons to prior periods impacted by government-related disruptions, and acknowledges guidance could ultimately prove conservative. As compared to the midpoint of previously provided 2026 guidance, the Company is increasing the midpoint of Net Income by $9 million, increasing the midpoint of Adjusted EBITDAre by $11 million, increasing the midpoint of Comparable Hotels RevPAR Change by 100 bps, and increasing the midpoint of Comparable Hotels Adjusted Hotel EBITDA Margin % by 50 bps. Comparable Hotels RevPAR Change guidance, which is the change in Comparable Hotels RevPAR in 2026 compared to 2025, and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, as if the hotels were owned as of January 1, 2025, and exclude dispositions since January 1, 2025. 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 2026, the Company anticipates its 2026 results will be in the following range:<\/p>\n |