Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or
“Apple Hospitality”) today announced results of operations for the
third quarter ended September 30, 2020.
Apple Hospitality REIT,
Inc.
Selected Statistical and
Financial Data
As of and For the Three and
Nine Months Ended September 30
(Unaudited) (in thousands,
except statistical and per share amounts)(1)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
% Change
2020
2019
% Change
Net income (loss)
$
(40,948
)
$
46,223
n/m
$
(121,960
)
$
146,464
n/m
Net income (loss) per share
$
(0.18
)
$
0.21
n/m
$
(0.55
)
$
0.65
n/m
Adjusted EBITDAre
$
27,962
$
115,557
(75.8
%)
$
76,415
$
342,675
(77.7
%)
Comparable Hotels Adjusted Hotel EBITDA
$
34,699
$
123,071
(71.8
%)
$
98,334
$
361,199
(72.8
%)
Comparable Hotels Adjusted Hotel EBITDA Margin %
23.3
%
37.5
%
(1,420 bps)
21.1
%
37.7
%
(1,660 bps) Modified funds from operations (MFFO)
$
9,118
$
100,403
(90.9
%)
$
22,912
$
295,317
(92.2
%)
MFFO per share
$
0.04
$
0.45
(91.1
%)
$
0.10
$
1.32
(92.4
%)
Average Daily Rate (ADR) (Actual)
$
104.78
$
139.21
(24.7
%)
$
116.16
$
139.13
(16.5
%)
Occupancy (Actual)
48.6
%
79.9
%
(39.2
%)
45.9
%
78.4
%
(41.5
%)
Revenue Per Available Room (RevPAR) (Actual)
$
50.94
$
111.17
(54.2
%)
$
53.33
$
109.02
(51.1
%)
Comparable Hotels ADR
$
104.78
$
139.78
(25.0
%)
$
116.17
$
139.85
(16.9
%)
Comparable Hotels Occupancy
48.6
%
79.9
%
(39.2
%)
45.9
%
78.5
%
(41.5
%)
Comparable Hotels RevPAR
$
50.94
$
111.66
(54.4
%)
$
53.30
$
109.78
(51.4
%)
Distributions paid
$
-
$
67,154
(100.0
%)
$
67,324
$
201,497
(66.6
%)
Distributions paid per share
$
-
$
0.30
(100.0
%)
$
0.30
$
0.90
(66.7
%)
Cash and cash equivalents
$
27,435
$
-
n/a
Total debt outstanding
$
1,515,215
Total debt outstanding, net of cash and cash equivalents
$
1,487,780
Total debt outstanding, net of cash and cash equivalents, to total
capitalization (2)
41.0
%
_______________
Note: n/m = not meaningful.
(1)
Explanations of and reconciliations to net income (loss) 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 $9.61 on September 30, 2020.
Comparable Hotels is defined as the 235 hotels owned by the
Company as of September 30, 2020. For hotels acquired during the
periods noted, the Company has included, as applicable, results of
those hotels for periods prior to the Company's ownership, and for
dispositions, results have been excluded for the Company's period
of ownership. Results for periods prior to the Company's ownership
have not been included in the Company's actual Consolidated
Financial Statements and are included only for comparison purposes.
Results included for periods prior to the Company's ownership are
based on information from the prior owner of each hotel and have
not been audited or adjusted.
Justin Knight, Chief Executive Officer of Apple Hospitality,
commented, “While the current environment has created more
significant operating challenges than we experienced in prior
cycles, it has highlighted the merits of our underlying strategy
and highly diversified portfolio of rooms-focused hotels. With
meaningfully lower leverage, greater market diversification and
more efficient asset-level operations, we were first among publicly
traded lodging REITs to generate positive cash flow. Our ability to
keep our hotels open and operate efficiently at low occupancy
levels combined with our discipline in maintaining low leverage
late cycle enabled us to preserve our balance sheet, protecting the
value of our equity and uniquely positioning us to pursue
opportunities in the early stages of a recovery. Our rooms-focused
hotels do not rely on large group business and have proven appeal
with the broadest group of potential customers. Since April,
occupancy and RevPAR have steadily improved for our portfolio, with
occupancy increasing from 28% in the second quarter to nearly 50%
in the third quarter, and we are pleased to report positive cash
flow at the corporate level for the third quarter. Our
outperformance during these unprecedented times would not be
possible without the remarkable associates at our hotels, and we
are incredibly grateful for their strength, dedication and
unwavering hospitality. We remain intently focused on safeguarding
long-term value for our shareholders. While there may be challenges
ahead, I am confident we are well positioned to continue to
outperform as travel improves.”
Operations Update
- All hotels open: All of the Company’s hotels are open
with enhanced health and sanitation measures in place. The Company
continues to intentionally consolidate operations at five hotels,
down from 38 hotels as of May 2020, in market clusters to maximize
operational efficiencies.
- Enhanced sales efforts: Together with its third-party
management companies, the Company has enhanced its sales efforts by
focusing on COVID-19-specific opportunities in certain markets and
strategically targeting and maximizing performance based on
available demand.
- Sequential improvement: Occupancy and RevPAR for the
Company’s portfolio have sequentially improved since April 2020,
with average occupancy reaching approximately 52% for the month of
September 2020 and approximately 53% for the month of October 2020,
driven by a wide variety of demand generators including leisure,
government, health care, construction, disaster recovery,
insurance, athletics, education, and local and regional
business-related travel.
- Reduced property-level expenses: Since March 2020, the
Company, its brands and its third-party management companies have
implemented cost elimination and efficiency initiatives at each of
the Company’s hotels by effectively managing labor costs, reducing
or eliminating certain services and amenities, and renegotiating
rates under various service contracts. Hotel operating expenses
were lowered by approximately 50% during the third quarter of 2020
as compared to the same period last year.
- Reduced corporate-level expenses: General and
administrative expenses were reduced by approximately 26% during
the third quarter of 2020 as compared to the same period last year
primarily due to anticipated decreases in compensation and other
overhead expenses.
- Cash flow positive: By July 2020, the Company produced
sufficient cash from hotel operations to cover property-level and
corporate-level costs, including debt service. The Company achieved
positive Adjusted Hotel EBITDA of approximately $35 million and
positive MFFO of approximately $9 million during the third quarter
of 2020.
The following table highlights the Company’s performance during
the third quarter of 2020, amid the COVID-19 pandemic, as compared
to the third quarter of 2019 (in thousands, except statistical
data):
Three
Three
July
August
September
Months Ended
July
August
September
Months Ended
2020
2020
2020
September 30, 2020
2019
2019
2019
September 30, 2019
ADR
$
107.40
$
104.58
$
102.63
$
104.78
$
143.05
$
137.65
$
136.69
$
139.21
Occupancy
45.0
%
49.3
%
51.7
%
48.6
%
81.7
%
80.7
%
77.1
%
79.9
%
RevPAR
$
48.32
$
51.51
$
53.02
$
50.94
$
116.82
$
111.12
$
105.37
$
111.17
Adjusted Hotel EBITDA (1)
$
10,676
$
12,796
$
11,216
$
34,688
$
45,699
$
41,818
$
37,079
$
124,596
_______________
(1) See explanation and
reconciliation of Adjusted Hotel EBITDA to net income (loss)
included below.
The Company, its third-party management companies and the brands
the Company’s hotels are franchised with have aggressively worked
to mitigate the costs and uses of cash associated with operating
the Company’s hotels in a low-occupancy environment and are
thoughtfully working to position the hotels to adapt to changes in
guest preferences that may occur in the future. The operational
impact of the COVID-19 pandemic has varied and will vary by market
and hotel. With the support of its brands and third-party
management companies, the Company will continue to rethink brand
standards, redefine its operating model at various occupancy
levels, and allocate capital to maximize long-term
profitability.
Portfolio Activity
Acquisitions and Contract for Potential Acquisition
Since the beginning of 2020, Apple Hospitality has acquired four
hotels, all of which were contracted for in 2018. In April 2020,
the Company closed on the purchase of the newly developed Hampton
Inn & Suites by Hilton and Home2 Suites by Hilton in Cape
Canaveral, Florida, a combined 224-room, dual-branded complex, for
a total purchase price of approximately $47 million. In August
2020, Apple Hospitality closed on the purchase of the newly
developed Hyatt House and Hyatt Place in Tempe, Arizona, a combined
259-room, dual-branded complex, for a total purchase price of
approximately $65 million.
The Company has an outstanding contract, which was entered into
prior to 2020, for the purchase of a 176-room Hilton Garden Inn in
Madison, Wisconsin, for a total expected purchase price of
approximately $50 million. The hotel is currently under
development, and the Company anticipates acquiring the hotel within
the next six months from September 30, 2020. There are many
conditions to closing under the contract that have not yet been
satisfied, including completion of construction, and there can be
no assurance that a closing on the hotel will occur. If the seller
meets all of the conditions to closing, the Company is obligated to
specifically perform under the contract.
Dispositions and Contract for Potential Disposition
Since the beginning of 2020, Apple Hospitality has sold two
hotels, both of which were sold during the first quarter of 2020,
for a combined gross sales price of approximately $45 million. In
October 2020, the Company entered into a contract for the sale of
its 118-room Homewood Suites by Hilton in Charlotte, North
Carolina, for a gross sales price of approximately $10 million.
Although the Company is working towards the sale of this hotel,
there are many conditions to closing that have not yet been
satisfied and there can be no assurance that a closing on this
hotel will occur. If the closing occurs, the sale is expected to be
completed within three to six months of September 30, 2020, and the
Company expects to recognize a gain upon completion of the
sale.
The contract the Company entered into during the second quarter
of 2020 for the sale of its 140-room Homewood Suites by Hilton in
Memphis, Tennessee, was terminated in October 2020.
Capital Improvements
During the nine months ended September 30, 2020, the Company
invested approximately $35 million in capital expenditures. The
Company anticipates spending an additional $5 million in capital
expenditures during the remainder of 2020. This estimate is
approximately $50 million less than originally planned for the
entire year of 2020, as the Company has postponed all previously
planned, non-essential capital improvements in order to maintain a
sound liquidity position as a result of COVID-19.
Balance Sheet and
Liquidity
Summary
As of September 30, 2020, Apple Hospitality had approximately
$1.5 billion of total outstanding debt with a current combined
weighted-average interest rate of approximately 3.8%, cash on hand
of approximately $27 million and availability under its revolving
credit facility of approximately $295 million. Excluding
unamortized debt issuance costs and fair value adjustments, the
Company’s total outstanding debt is comprised of approximately $516
million in property-level debt secured by 33 hotels and
approximately $1.0 billion outstanding on its unsecured credit
facilities. The Company’s total debt to total capitalization, net
of cash and cash equivalents at September 30, 2020, was
approximately 41%. As of September 30, 2020, the Company’s
weighted-average debt maturities are 5 years, with no maturities
for the remainder of 2020 and approximately $51 million, net of
reserves, maturing in 2021.
Unsecured Credit Facilities Amendments
As a result of COVID-19 and the associated disruption to the
Company’s operating results, the Company anticipated that it may
not be able to maintain compliance with certain covenants under its
unsecured credit facilities in future periods. As a result, on June
5, 2020, the Company entered into amendments to each of its
unsecured credit facilities to temporarily waive the financial
covenant testing under each of its unsecured credit facilities
until the date the compliance certificate is required to be
delivered for the fiscal quarter ending June 30, 2021 (the
“Covenant Waiver Period”), unless the Company elects an earlier
date. The amendments provide for, among other restrictions, the
following during the Covenant Waiver Period:
- Mandatory prepayments of amounts outstanding under the
Company’s unsecured credit facilities of net cash proceeds from
certain debt and equity issuances and asset dispositions, subject
to various exceptions. A portion of the mandatory prepayments will
be available for future borrowing under the revolving credit
facility;
- A minimum liquidity covenant of $100 million;
- A requirement to pledge the equity interests of each direct or
indirect owner of certain unencumbered property in favor of the
administrative agents if average liquidity for any month is less
than $275 million or the total amount outstanding under the
revolving credit facility exceeds $275 million;
- Restrictions on the Company’s and its subsidiaries’ ability to
incur additional indebtedness or prepay certain existing
indebtedness;
- Restrictions on the Company’s ability to make cash
distributions (except to the extent required to maintain REIT
status) and share repurchases;
- Maximum discretionary capital expenditures of $50 million;
- Limitations on additional investments;
- An increase in the applicable interest rate under the unsecured
credit facilities until the end of the Covenant Waiver Period to a
rate that corresponds to the highest leverage-based applicable
interest rate margin with respect to the unsecured credit
facilities;
- An increase in the LIBOR floor under the credit agreements from
0 to 25 basis points for Eurodollar Rate Loans and establish a Base
Rate floor of 1.25% on the revolving credit facility, and any term
loans under the credit agreements that are not hedged; and
- Modifications to the calculation of the existing financial
covenants for the four quarters subsequent to the end of the
Covenant Waiver Period to annualize calculated amounts to the
extent the most recently ended fiscal quarter is not at least four
fiscal quarters from the end of the Covenant Waiver Period.
As of September 30, 2020, the Company was in compliance with the
applicable covenants of the credit agreements as amended.
Capital Markets
Apple Hospitality terminated its written trading plan under its
Share Repurchase Program in March 2020, and no shares were
repurchased by the Company during the second and third quarters of
2020. Year to date, prior to the Company’s termination of its
written trading plan under its Share Repurchase Program, the
Company repurchased approximately 1.5 million of its common shares
for an aggregate purchase price of approximately $14.3 million. As
of September 30, 2020, the Company had approximately $345 million
remaining under its share repurchase authorization; however, share
repurchases are subject to certain restrictions during the Covenant
Waiver Period, and the Company does not anticipate utilizing the
Share Repurchase Program during the remainder of 2020.
In August 2020, the Company entered into an equity distribution
agreement pursuant to which the Company may sell, from time to
time, up to an aggregate of $300 million of its common shares under
an at-the-market offering program (the “ATM Program”). As of
September 30, 2020, the Company had not sold any common shares
under the ATM Program.
Shareholder
Distributions
In March 2020, as a result of COVID-19 and the impact on the
Company’s business, the Company suspended its monthly
distributions, with the last distribution being paid March 16,
2020. The Company paid distributions of approximately $67 million,
or $0.30 per common share, during the three months ended March 31,
2020. The Company anticipates it will not pay additional
shareholder distributions for the remainder of 2020 unless it is
determined that an additional distribution is required in order for
the Company to maintain its REIT status for federal income tax
purposes. Subject to the distribution restrictions as a condition
to the amendments to the Company’s unsecured credit facilities
during the Covenant Waiver Period, the Company’s Board of
Directors, in consultation with management, will continue to
monitor hotel operations and intends to resume distributions at a
time and level determined to be prudent in relation to the
Company’s other cash requirements.
2020 Outlook
Given the ongoing uncertainties related to the depth and
duration of the COVID-19 pandemic and its impact on the travel
industry and hotel operations, the Company does not expect to issue
guidance until operating fundamentals and trends are more
predictable.
Third Quarter 2020 Earnings Conference
Call
The Company will host a quarterly conference call for investors
and interested parties at 10 a.m. Eastern Time on Friday, November
6, 2020. 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 1:00 p.m. Eastern Time on
November 6, 2020, through 11:59 p.m. Eastern Time on November 27,
2020. 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 13710814. 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 235 hotels
with more than 30,000 guest rooms located in 87 markets throughout
34 states. Concentrated with industry-leading brands, the Company’s
portfolio consists of 104 Marriott-branded hotels, 126
Hilton-branded hotels, three Hyatt-branded hotels and two
independent 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 EBITDAre”); and Adjusted Hotel EBITDA
(“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 and
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 and Adjusted Hotel EBITDA, as calculated by the
Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre,
Adjusted EBITDAre and 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.
Currently, one of the most significant factors that could cause
actual outcomes to differ materially from the Company’s
forward-looking statements is the adverse effect of COVID-19,
including possible resurgences, on the Company’s business,
financial performance and condition, operating results and cash
flows, the real estate market and the hospitality industry
specifically, and the global economy and financial markets
generally. The significance, extent and duration of the impacts
caused by the COVID-19 outbreak on the Company will depend on
future developments, which are highly uncertain and cannot be
predicted with confidence at this time, including the scope,
severity and duration of the pandemic, the extent and effectiveness
of the actions taken to contain the pandemic or mitigate its
impact, the potential for additional hotel closures/consolidations
that may be mandated or advisable, whether based on increased
COVID-19 cases or other factors, the slowing or potential rollback
of “reopenings” in certain states, and the direct and indirect
economic effects of the pandemic and containment measures, among
others. Moreover, investors are cautioned to interpret many of the
risks identified under the section titled “Risk Factors” in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2019 as being heightened as a result of the ongoing
and numerous adverse impacts of COVID-19. Such additional factors
include, but are not limited to, the ability of the Company to
effectively acquire and dispose of properties; 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;
reduced business and leisure travel due to travel-related health
concerns, including the widespread outbreak of COVID-19 or an
increase in COVID-19 cases or any other infectious or contagious
diseases in the U.S. or abroad; adverse changes in the real estate
and real estate capital markets; financing risks; 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.
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, 2019 and Quarterly Report on Form
10-Q for the quarter ended September 30, 2020. Any forward-looking
statement that the Company makes speaks only as of the date of this
press release. The Company undertakes no obligation to publicly
update or revise any forward-looking statements or cautionary
factors, as a result of new information, future events, or
otherwise, except as required by law.
For additional information or to receive press
releases by email, visit www.applehospitalityreit.com.
Apple Hospitality REIT, Inc. Consolidated Balance
Sheets (in thousands, except share data)
September 30,
December 31,
2020
2019
(unaudited)
Assets Investment in real estate, net of accumulated
depreciation and amortization of $1,196,245 and $1,054,429,
respectively $
4,793,945
$
4,825,738
Assets held for sale
-
12,093
Cash and cash equivalents
27,435
-
Restricted cash-furniture, fixtures and other escrows
28,184
34,661
Due from third party managers, net
29,969
26,926
Other assets, net
36,887
42,993
Total Assets
$
4,916,420
$
4,942,411
Liabilities Debt, net
$
1,508,939
$
1,320,407
Finance lease liabilities
218,935
216,627
Accounts payable and other liabilities
113,542
114,364
Total Liabilities
1,841,416
1,651,398
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 223,230,937 and 223,862,913 shares, respectively
4,488,288
4,493,763
Accumulated other comprehensive loss
(48,320
)
(4,698
)
Distributions greater than net income
(1,364,964
)
(1,198,052
)
Total Shareholders' Equity
3,075,004
3,291,013
Total Liabilities and Shareholders' Equity
$
4,916,420
$
4,942,411
____________________
Note: The Consolidated Balance
Sheets and corresponding footnotes can be found in the Company’s
Quarterly Report on Form 10-Q for the quarter ended September 30,
2020.
Apple Hospitality REIT, Inc. Consolidated Statements of
Operations and Comprehensive Income (Loss) (Unaudited) (in
thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Revenues: Room
$
140,116
$
307,293
$
434,923
$
901,995
Food and beverage
2,235
14,079
14,386
44,786
Other
6,475
10,350
18,605
29,845
Total revenue
148,826
331,722
467,914
976,626
Expenses: Hotel operating expense: Operating
33,124
80,717
120,860
236,463
Hotel administrative
16,625
25,991
54,079
78,588
Sales and marketing
13,728
29,764
47,517
88,289
Utilities
9,967
11,635
25,465
31,135
Repair and maintenance
8,842
13,430
26,983
39,337
Franchise fees
6,603
14,508
20,516
42,371
Management fees
4,873
11,548
15,425
34,049
Total hotel operating expense
93,762
187,593
310,845
550,232
Property taxes, insurance and other
20,523
19,611
58,820
58,470
General and administrative
6,726
9,039
22,274
25,484
Loss on impairment of depreciable real estate assets
-
6,467
4,382
6,467
Depreciation and amortization
50,171
47,887
149,590
143,946
Total expense
171,182
270,597
545,911
784,599
Gain on sale of real estate
-
-
8,785
1,052
Operating income (loss)
(22,356
)
61,125
(69,212
)
193,079
Interest and other expense, net
(18,531
)
(14,759
)
(52,483
)
(46,110
)
Income (loss) before income taxes
(40,887
)
46,366
(121,695
)
146,969
Income tax expense
(61
)
(143
)
(265
)
(505
)
Net income (loss)
$
(40,948
)
$
46,223
$
(121,960
)
$
146,464
Other comprehensive income (loss): Interest rate
derivatives
2,739
(4,193
)
(43,622
)
(20,357
)
Comprehensive income (loss)
$
(38,209
)
$
42,030
$
(165,582
)
$
126,107
Basic and diluted net income (loss) per common share
$
(0.18
)
$
0.21
$
(0.55
)
$
0.65
Weighted average common shares outstanding - basic and
diluted
223,293
223,901
223,620
223,911
____________________
Note: The Consolidated Statements
of Operations and Comprehensive Income (Loss) and corresponding
footnotes can be found in the Company’s Quarterly Report on Form
10-Q for the quarter ended September 30, 2020.
Apple Hospitality REIT, Inc. Comparable Hotels Operating
Metrics and Statistical Data (Unaudited) (in
thousands except statistical data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
% Change
2020
2019
% Change
Total revenue
$
148,826
$
327,778
(54.6
%)
$
466,774
$
958,133
(51.3
%)
Total operating expenses
114,127
204,707
(44.2
%)
368,440
596,934
(38.3
%)
Adjusted Hotel EBITDA
$
34,699
$
123,071
(71.8
%)
$
98,334
$
361,199
(72.8
%)
Adjusted Hotel EBITDA Margin %
23.3
%
37.5
%
(1,420 bps)
21.1
%
37.7
%
(1,660 bps) ADR (Comparable Hotels)
$
104.78
$
139.78
(25.0
%)
$
116.17
$
139.85
(16.9
%)
Occupancy (Comparable Hotels)
48.6
%
79.9
%
(39.2
%)
45.9
%
78.5
%
(41.5
%)
RevPAR (Comparable Hotels)
$
50.94
$
111.66
(54.4
%)
$
53.30
$
109.78
(51.4
%)
ADR (Actual)
$
104.78
$
139.21
(24.7
%)
$
116.16
$
139.13
(16.5
%)
Occupancy (Actual)
48.6
%
79.9
%
(39.2
%)
45.9
%
78.4
%
(41.5
%)
RevPAR (Actual)
$
50.94
$
111.17
(54.2
%)
$
53.33
$
109.02
(51.1
%)
Reconciliation to Actual
Results Total Revenue (Actual)
$
148,826
$
331,722
$
467,914
$
976,626
Revenue from acquisitions prior to ownership
-
675
-
3,290
Revenue from dispositions
-
(4,619
)
(1,140
)
(21,783
)
Comparable Hotels Total Revenue
$
148,826
$
327,778
$
466,774
$
958,133
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
34,688
$
124,596
$
98,689
$
368,159
AHEBITDA from acquisitions prior to ownership
-
57
-
614
AHEBITDA from dispositions
11
(1,582
)
(355
)
(7,574
)
Comparable Hotels AHEBITDA
$
34,699
$
123,071
$
98,334
$
361,199
____________________
Note: Comparable Hotels is defined
as the 235 hotels owned by the Company as of September 30, 2020.
For hotels acquired during the periods noted, the Company has
included, as applicable, results of those hotels for periods prior
to the Company's ownership, and for dispositions, results have been
excluded for the Company's period of ownership. Results for periods
prior to the Company's ownership have not been included in the
Company's actual Consolidated Financial Statements and are included
only for comparison purposes. Results included for periods prior to
the Company's ownership are based on information from the prior
owner of each hotel and have not been audited or adjusted.
Reconciliation of net income (loss) 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) Three
Months Ended 12/31/2018 3/31/2019
6/30/2019 9/30/2019 12/31/2019
3/31/2020 6/30/2020 9/30/2020 Total
revenue
$
286,453
$
293,485
$
336,870
$
327,778
$
285,366
$
236,870
$
81,078
$
148,826
Total operating expenses
187,090
188,489
203,738
204,707
190,356
173,977
80,336
114,127
Adjusted Hotel EBITDA
$
99,363
$
104,996
$
133,132
$
123,071
$
95,010
$
62,893
$
742
$
34,699
Adjusted Hotel EBITDA Margin %
34.7
%
35.8
%
39.5
%
37.5
%
33.3
%
26.6
%
0.9
%
23.3
%
ADR (Comparable Hotels)
$
133.30
$
137.51
$
142.01
$
139.78
$
131.58
$
132.66
$
100.76
$
104.78
Occupancy (Comparable Hotels)
72.7
%
74.0
%
81.5
%
79.9
%
72.9
%
60.8
%
28.2
%
48.6
%
RevPAR (Comparable Hotels)
$
96.95
$
101.81
$
115.73
$
111.66
$
95.97
$
80.70
$
28.44
$
50.94
ADR (Actual)
$
131.93
$
136.36
$
141.60
$
139.21
$
131.41
$
132.55
$
100.76
$
104.78
Occupancy (Actual)
72.5
%
73.9
%
81.4
%
79.9
%
72.9
%
60.9
%
28.2
%
48.6
%
RevPAR (Actual)
$
95.63
$
100.71
$
115.30
$
111.17
$
95.85
$
80.66
$
28.44
$
50.94
Reconciliation to Actual
Results Total Revenue (Actual)
$
295,255
$
303,787
$
341,117
$
331,722
$
289,971
$
238,010
$
81,078
$
148,826
Revenue from acquisitions prior to ownership
3,098
1,817
798
675
73
-
-
-
Revenue from dispositions
(11,900
)
(12,119
)
(5,045
)
(4,619
)
(4,678
)
(1,140
)
-
-
Comparable Hotels Total Revenue
$
286,453
$
293,485
$
336,870
$
327,778
$
285,366
$
236,870
$
81,078
$
148,826
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
102,157
$
108,804
$
134,759
$
124,596
$
96,836
$
63,297
$
704
$
34,688
AHEBITDA from acquisitions prior to ownership
818
391
166
57
(1
)
-
-
-
AHEBITDA from dispositions
(3,612
)
(4,199
)
(1,793
)
(1,582
)
(1,825
)
(404
)
38
11
Comparable Hotels AHEBITDA
$
99,363
$
104,996
$
133,132
$
123,071
$
95,010
$
62,893
$
742
$
34,699
___________________
Note: Comparable Hotels is defined
as the 235 hotels owned by the Company as of September 30, 2020.
For hotels acquired during the periods noted, the Company has
included, as applicable, results of those hotels for periods prior
to the Company's ownership, and for dispositions, results have been
excluded for the Company's period of ownership. Results for periods
prior to the Company's ownership have not been included in the
Company's actual Consolidated Financial Statements and are included
only for comparison purposes. Results included for periods prior to
the Company's ownership are based on information from the prior
owner of each hotel and have not been audited or adjusted.
Reconciliation of net income (loss) to
non-GAAP financial measures is included in the following pages.
Apple Hospitality REIT, Inc. Same Store Hotels Operating
Metrics and Statistical Data (Unaudited) (in
thousands except statistical data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
% Change
2020
2019
% Change
Total revenue
$
146,703
$
324,274
(54.8
%)
$
460,558
$
948,574
(51.4
%)
Total operating expenses
111,966
202,300
(44.7
%)
362,730
590,258
(38.5
%)
Adjusted Hotel EBITDA
$
34,737
$
121,974
(71.5
%)
$
97,828
$
358,316
(72.7
%)
Adjusted Hotel EBITDA Margin %
23.7
%
37.6
%
(1,390 bps)
21.2
%
37.8
%
(1,660 bps) ADR (Same Store Hotels)
$
104.86
$
139.92
(25.1
%)
$
116.19
$
139.90
(16.9
%)
Occupancy (Same Store Hotels)
49.0
%
79.9
%
(38.7
%)
46.1
%
78.5
%
(41.3
%)
RevPAR (Same Store Hotels)
$
51.41
$
111.79
(54.0
%)
$
53.51
$
109.87
(51.3
%)
ADR (Actual)
$
104.78
$
139.21
(24.7
%)
$
116.16
$
139.13
(16.5
%)
Occupancy (Actual)
48.6
%
79.9
%
(39.2
%)
45.9
%
78.4
%
(41.5
%)
RevPAR (Actual)
$
50.94
$
111.17
(54.2
%)
$
53.33
$
109.02
(51.1
%)
Reconciliation to Actual
Results Total Revenue (Actual)
$
148,826
$
331,722
$
467,914
$
976,626
Revenue from acquisitions
(2,123
)
(2,829
)
(6,216
)
(6,269
)
Revenue from dispositions
-
(4,619
)
(1,140
)
(21,783
)
Same Store Hotels Total Revenue
$
146,703
$
324,274
$
460,558
$
948,574
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
34,688
$
124,596
$
98,689
$
368,159
AHEBITDA from acquisitions
38
(1,040
)
(506
)
(2,269
)
AHEBITDA from dispositions
11
(1,582
)
(355
)
(7,574
)
Same Store Hotels AHEBITDA
$
34,737
$
121,974
$
97,828
$
358,316
____________________
Note: Same Store Hotels is defined
as the 228 hotels owned by the Company as of January 1, 2019 and
during the entirety of the periods being compared. This information
has not been audited.
Reconciliation of net income (loss) 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) Three
Months Ended 3/31/2019 6/30/2019 9/30/2019
12/31/2019 3/31/2020 6/30/2020
9/30/2020 Total revenue
$
290,964
$
333,336
$
324,274
$
281,972
$
233,692
$
80,163
$
146,703
Total operating expenses
186,607
201,351
202,300
187,957
171,706
79,058
111,966
Adjusted Hotel EBITDA
$
104,357
$
131,985
$
121,974
$
94,015
$
61,986
$
1,105
$
34,737
Adjusted Hotel EBITDA Margin %
35.9
%
39.6
%
37.6
%
33.3
%
26.5
%
1.4
%
23.7
%
ADR (Same Store Hotels)
$
137.44
$
142.08
$
139.92
$
131.65
$
132.60
$
100.83
$
104.86
Occupancy (Same Store Hotels)
74.1
%
81.6
%
79.9
%
72.9
%
60.8
%
28.4
%
49.0
%
RevPAR (Same Store Hotels)
$
101.80
$
115.90
$
111.79
$
95.97
$
80.57
$
28.59
$
51.41
ADR (Actual)
$
136.36
$
141.60
$
139.21
$
131.41
$
132.55
$
100.76
$
104.78
Occupancy (Actual)
73.9
%
81.4
%
79.9
%
72.9
%
60.9
%
28.2
%
48.6
%
RevPAR (Actual)
$
100.71
$
115.30
$
111.17
$
95.85
$
80.66
$
28.44
$
50.94
Reconciliation to Actual
Results Total Revenue (Actual)
$
303,787
$
341,117
$
331,722
$
289,971
$
238,010
$
81,078
$
148,826
Revenue from acquisitions
(704
)
(2,736
)
(2,829
)
(3,321
)
(3,178
)
(915
)
(2,123
)
Revenue from dispositions
(12,119
)
(5,045
)
(4,619
)
(4,678
)
(1,140
)
-
-
Same Store Hotels Total Revenue
$
290,964
$
333,336
$
324,274
$
281,972
$
233,692
$
80,163
$
146,703
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
108,804
$
134,759
$
124,596
$
96,836
$
63,297
$
704
$
34,688
AHEBITDA from acquisitions
(248
)
(981
)
(1,040
)
(996
)
(907
)
363
38
AHEBITDA from dispositions
(4,199
)
(1,793
)
(1,582
)
(1,825
)
(404
)
38
11
Same Store Hotels AHEBITDA
$
104,357
$
131,985
$
121,974
$
94,015
$
61,986
$
1,105
$
34,737
____________________
Note: Same Store Hotels is defined
as the 228 hotels owned by the Company as of January 1, 2019 and
during the entirety of the periods being compared. This information
has not been audited.
Reconciliation of net income (loss) to
non-GAAP financial measures is included in the following pages.
Apple Hospitality REIT, Inc. Reconciliation
of Net Income (Loss) 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 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 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
(loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel
EBITDA on a quarterly basis from December 31, 2018 through
September 30, 2020:
Three Months Ended 12/31/2018 3/31/2019
6/30/2019 9/30/2019 12/31/2019
3/31/2020 6/30/2020 9/30/2020 Net income
(loss)
$
34,152
$
38,151
$
62,090
$
46,223
$
25,453
$
(2,769
)
$
(78,243
)
$
(40,948
)
Depreciation and amortization
46,730
47,950
48,109
47,887
49,294
49,522
49,897
50,171
Amortization of favorable and unfavorable operating leases, net
147
31
31
31
31
101
101
103
Interest and other expense, net
12,916
15,494
15,857
14,759
15,081
15,566
18,386
18,531
Income tax expense
173
206
156
143
174
146
58
61
EBITDA
94,118
101,832
126,243
109,043
90,033
62,566
(9,801
)
27,918
(Gain) loss on sale of real estate
(152
)
(1,213
)
161
-
(3,969
)
(8,839
)
54
-
Loss on impairment of depreciable real estate assets
-
-
-
6,467
-
-
4,382
-
EBITDAre
93,966
100,619
126,404
115,510
86,064
53,727
(5,365
)
27,918
Non-cash straight-line operating ground lease expense
865
48
47
47
46
47
44
44
Adjusted EBITDAre
$
94,831
$
100,667
$
126,451
$
115,557
$
86,110
$
53,774
$
(5,321
)
$
27,962
General and administrative expense
7,326
8,137
8,308
9,039
10,726
9,523
6,025
6,726
Adjusted Hotel EBITDA
$
102,157
$
108,804
$
134,759
$
124,596
$
96,836
$
63,297
$
704
$
34,688
Apple Hospitality REIT, Inc. Reconciliation
of Net Income (Loss) 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
(loss) to FFO and MFFO for the three and nine months ended
September 30, 2020 and 2019:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Net income (loss)
$
(40,948
)
$
46,223
$
(121,960
)
$
146,464
Depreciation of real estate owned
48,307
46,910
144,019
140,288
Gain on sale of real estate
-
-
(8,785
)
(1,052
)
Loss on impairment of depreciable real estate assets
-
6,467
4,382
6,467
Funds from operations
7,359
99,600
17,656
292,167
Amortization of finance ground lease assets
1,612
725
4,816
2,915
Amortization of favorable and unfavorable operating leases, net
103
31
305
93
Non-cash straight-line operating ground lease expense
44
47
135
142
Modified funds from operations
$
9,118
$
100,403
$
22,912
$
295,317
Apple Hospitality REIT,
Inc.
Debt Summary
(Unaudited)
($ in thousands)
September 30, 2020
October 1-
December 31,
2020
2021
2022
2023
2024
Thereafter
Total
Fair Market Value
Total debt: Maturities
$
2,745
$
70,724
$
239,531
$
296,213
$
338,597
$
567,405
$
1,515,215
$
1,468,165
Average interest rates (1)
3.8
%
3.8
%
3.8
%
4.0
%
4.2
%
4.3
%
Variable rate debt: Maturities
$
-
$
20,551
$
129,700
$
250,000
$
310,000
$
260,000
$
970,251
$
923,215
Average interest rates (1)
3.6
%
3.6
%
3.7
%
4.0
%
4.4
%
4.7
%
Fixed rate debt: Maturities
$
2,745
$
50,173
$
109,831
$
46,213
$
28,597
$
307,405
$
544,964
$
544,950
Average interest rates
4.3
%
4.3
%
4.1
%
4.0
%
4.0
%
4.0
%
____________________
(1) The average interest rate gives effect to interest rate swaps,
as applicable.
Note: See further information on
the Company’s indebtedness in the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2020.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics Top 20 Markets
Three Months Ended September
30
(Unaudited)
Top 20 Markets
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
Top 20 Markets
Norfolk/Virginia Beach, VA
4
82.4
%
88.4
%
(6.8
%)
$169.20
$197.27
(14.2
%)
$139.40
$174.43
(20.1
%)
10.1
%
Los Angeles/Long Beach, CA
8
71.0
%
90.8
%
(21.8
%)
$118.41
$182.29
(35.0
%)
$84.04
$165.55
(49.2
%)
9.6
%
North Carolina East
5
82.9
%
83.4
%
(0.6
%)
$139.17
$152.26
(8.6
%)
$115.34
$127.01
(9.2
%)
8.5
%
San Diego, CA
7
47.0
%
84.1
%
(44.1
%)
$118.76
$166.53
(28.7
%)
$55.87
$140.06
(60.1
%)
5.3
%
Florida Panhandle
5
59.2
%
80.0
%
(26.0
%)
$121.51
$155.94
(22.1
%)
$71.91
$124.68
(42.3
%)
4.3
%
Alaska
2
72.6
%
91.4
%
(20.6
%)
$150.89
$247.49
(39.0
%)
$109.54
$226.31
(51.6
%)
4.0
%
Portland, ME
1
74.2
%
93.9
%
(21.0
%)
$162.03
$256.07
(36.7
%)
$120.30
$240.55
(50.0
%)
3.5
%
Melbourne/Titusville, FL
3
52.3
%
87.3
%
(40.1
%)
$132.46
$152.54
(13.2
%)
$69.25
$133.11
(48.0
%)
3.5
%
Anaheim/Santa Ana, CA
6
45.9
%
85.2
%
(46.1
%)
$110.51
$156.29
(29.3
%)
$50.76
$133.12
(61.9
%)
3.4
%
Seattle, WA
3
48.7
%
91.4
%
(46.7
%)
$129.61
$226.51
(42.8
%)
$63.12
$206.95
(69.5
%)
2.9
%
Louisiana South
2
87.1
%
68.2
%
27.7
%
$86.84
$109.62
(20.8
%)
$75.64
$74.80
1.1
%
2.7
%
California South/Central
3
89.9
%
92.1
%
(2.4
%)
$101.03
$132.33
(23.7
%)
$90.79
$121.86
(25.5
%)
2.5
%
Texas West
2
83.3
%
88.8
%
(6.2
%)
$97.78
$121.98
(19.8
%)
$81.41
$108.30
(24.8
%)
2.4
%
Alabama North
4
54.7
%
83.2
%
(34.3
%)
$105.59
$114.82
(8.0
%)
$57.72
$95.58
(39.6
%)
2.3
%
Alabama South
6
46.7
%
75.7
%
(38.3
%)
$99.59
$120.19
(17.1
%)
$46.48
$90.94
(48.9
%)
2.3
%
Oklahoma City, OK
4
52.1
%
75.3
%
(30.7
%)
$99.38
$129.74
(23.4
%)
$51.81
$97.65
(46.9
%)
2.2
%
Texas East
2
83.4
%
81.6
%
2.2
%
$99.02
$105.25
(5.9
%)
$82.58
$85.86
(3.8
%)
2.1
%
Riverside & San Bernardino, CA
1
92.1
%
90.8
%
1.4
%
$153.28
$175.40
(12.6
%)
$141.15
$159.25
(11.4
%)
2.0
%
Nashville, TN
5
43.3
%
85.7
%
(49.5
%)
$102.49
$162.85
(37.1
%)
$44.35
$139.53
(68.2
%)
1.9
%
Indiana North
3
49.9
%
76.6
%
(34.9
%)
$108.93
$138.12
(21.1
%)
$54.35
$105.82
(48.6
%)
1.7
%
Top 20 Markets
76
60.5
%
84.5
%
(28.3
%)
$120.24
$163.12
(26.3
%)
$72.80
$137.82
(47.2
%)
77.2
%
All Other Markets
159
43.0
%
77.7
%
(44.7
%)
$94.45
$127.95
(26.2
%)
$40.57
$99.46
(59.2
%)
22.8
%
Total Portfolio
235
48.6
%
79.9
%
(39.2
%)
$104.78
$139.78
(25.0
%)
$50.94
$111.66
(54.4
%)
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 Top 20 Markets
Nine Months Ended September
30
(Unaudited)
Top 20 Markets Occupancy ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels YTD 2020 YTD 2019 % Change
YTD 2020 YTD 2019 % Change YTD 2020
YTD 2019 % Change YTD 2020 Top 20
Markets Los Angeles/Long Beach, CA
8
59.8
%
88.3
%
(32.3
%)
$137.94
$178.35
(22.7
%)
$82.52
$157.51
(47.6
%)
8.8
%
North Carolina East
5
68.3
%
85.1
%
(19.7
%)
$125.58
$135.38
(7.2
%)
$85.79
$115.16
(25.5
%)
6.0
%
Phoenix, AZ
11
42.9
%
73.9
%
(41.9
%)
$125.29
$132.83
(5.7
%)
$53.77
$98.17
(45.2
%)
6.0
%
San Diego, CA
7
44.8
%
81.5
%
(45.0
%)
$132.32
$161.03
(17.8
%)
$59.26
$131.22
(54.8
%)
5.4
%
Norfolk/Virginia Beach, VA
4
59.2
%
79.8
%
(25.8
%)
$140.27
$160.84
(12.8
%)
$83.02
$128.37
(35.3
%)
4.6
%
Florida Panhandle
5
56.2
%
81.7
%
(31.2
%)
$128.06
$156.94
(18.4
%)
$71.94
$128.23
(43.9
%)
4.4
%
Anaheim/Santa Ana, CA
6
44.8
%
84.3
%
(46.9
%)
$126.87
$149.63
(15.2
%)
$56.84
$126.19
(55.0
%)
3.9
%
Seattle, WA
3
50.8
%
85.7
%
(40.7
%)
$145.44
$197.77
(26.5
%)
$73.93
$169.41
(56.4
%)
3.5
%
Melbourne/Titusville, FL
3
54.7
%
92.3
%
(40.7
%)
$143.01
$159.84
(10.5
%)
$78.21
$147.51
(47.0
%)
3.1
%
Alaska
2
67.6
%
87.9
%
(23.1
%)
$139.82
$209.99
(33.4
%)
$94.52
$184.67
(48.8
%)
2.8
%
Nashville, TN
5
43.1
%
84.8
%
(49.2
%)
$125.90
$165.67
(24.0
%)
$54.28
$140.51
(61.4
%)
2.8
%
Alabama South
6
45.6
%
77.9
%
(41.4
%)
$104.76
$120.43
(13.0
%)
$47.80
$93.78
(49.0
%)
2.3
%
Texas West
2
69.9
%
85.1
%
(17.8
%)
$106.49
$119.18
(10.6
%)
$74.49
$101.47
(26.6
%)
2.2
%
Oklahoma City, OK
4
45.7
%
76.2
%
(40.0
%)
$110.89
$134.02
(17.3
%)
$50.71
$102.15
(50.4
%)
2.1
%
Dallas, TX
8
40.3
%
73.0
%
(44.8
%)
$105.31
$121.27
(13.2
%)
$42.41
$88.47
(52.1
%)
1.9
%
Tucson, AZ
3
51.7
%
82.2
%
(37.1
%)
$112.14
$111.55
0.5
%
$57.97
$91.66
(36.8
%)
1.9
%
Alabama North
4
49.0
%
84.4
%
(42.0
%)
$108.99
$115.69
(5.8
%)
$53.40
$97.69
(45.3
%)
1.9
%
Texas East
2
74.9
%
81.1
%
(7.6
%)
$98.95
$103.72
(4.6
%)
$74.15
$84.13
(11.9
%)
1.9
%
Miami/Hialeah, FL
3
53.2
%
84.0
%
(36.7
%)
$118.00
$137.06
(13.9
%)
$62.75
$115.09
(45.5
%)
1.7
%
Fort Worth/Arlington, TX
5
48.9
%
76.6
%
(36.2
%)
$107.80
$132.07
(18.4
%)
$52.67
$101.13
(47.9
%)
1.7
%
Top 20 Markets
96
50.6
%
81.2
%
(37.6
%)
$123.99
$147.63
(16.0
%)
$62.78
$119.87
(47.6
%)
68.9
%
All Other Markets
139
42.6
%
76.7
%
(44.4
%)
$109.85
$134.31
(18.2
%)
$46.84
$102.99
(54.5
%)
31.1
%
Total Portfolio
235
45.9
%
78.5
%
(41.5
%)
$116.17
$139.85
(16.9
%)
$53.30
$109.78
(51.4
%)
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 Region
Three Months Ended September
30
(Unaudited)
Region
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
STR Region East North Central
15
36.5
%
79.3
%
(53.9
%)
$95.28
$133.13
(28.4
%)
$34.79
$105.54
(67.0
%)
0.1
%
East South Central
30
49.1
%
81.1
%
(39.5
%)
$104.42
$129.88
(19.6
%)
$51.26
$105.33
(51.3
%)
13.4
%
Middle Atlantic
12
49.5
%
82.3
%
(39.8
%)
$104.71
$164.87
(36.5
%)
$51.87
$135.72
(61.8
%)
(0.9
)%
Mountain
22
47.9
%
75.5
%
(36.6
%)
$88.79
$123.90
(28.3
%)
$42.53
$93.57
(54.5
%)
6.4
%
New England
5
44.3
%
84.1
%
(47.3
%)
$129.56
$174.36
(25.7
%)
$57.41
$146.68
(60.9
%)
3.4
%
Pacific
33
58.4
%
87.9
%
(33.6
%)
$119.78
$179.67
(33.3
%)
$69.95
$157.97
(55.7
%)
31.6
%
South Atlantic
59
48.3
%
79.0
%
(38.9
%)
$113.19
$132.48
(14.6
%)
$54.66
$104.63
(47.8
%)
30.5
%
West North Central
18
40.7
%
82.3
%
(50.5
%)
$96.03
$124.54
(22.9
%)
$39.13
$102.55
(61.8
%)
2.0
%
West South Central
41
49.4
%
73.2
%
(32.5
%)
$89.25
$119.03
(25.0
%)
$44.08
$87.08
(49.4
%)
13.5
%
Total Portfolio
235
48.6
%
79.9
%
(39.2
%)
$104.78
$139.78
(25.0
%)
$50.94
$111.66
(54.4
%)
100.0
%
Note: Region categorization based
on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Region
Nine Months Ended September
30
(Unaudited)
Region Occupancy ADR RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels YTD 2020 YTD 2019 % Change
YTD 2020 YTD 2019 % Change YTD 2020
YTD 2019 % Change YTD 2020 STR Region
East North Central
15
35.9
%
73.1
%
(50.9
%)
$101.99
$128.41
(20.6
%)
$36.62
$93.85
(61.0
%)
(0.1
)%
East South Central
30
47.0
%
79.8
%
(41.1
%)
$111.99
$130.93
(14.5
%)
$52.60
$104.45
(49.6
%)
12.6
%
Middle Atlantic
12
41.4
%
78.1
%
(47.0
%)
$113.27
$159.87
(29.1
%)
$46.87
$124.79
(62.4
%)
(3.1
)%
Mountain
22
47.0
%
77.4
%
(39.3
%)
$115.42
$134.22
(14.0
%)
$54.21
$103.92
(47.8
%)
12.4
%
New England
5
37.5
%
73.6
%
(49.0
%)
$124.93
$151.98
(17.8
%)
$46.90
$111.84
(58.1
%)
1.4
%
Pacific
33
52.5
%
85.2
%
(38.3
%)
$134.28
$170.75
(21.4
%)
$70.51
$145.42
(51.5
%)
29.8
%
South Atlantic
59
48.0
%
79.5
%
(39.6
%)
$119.59
$136.77
(12.6
%)
$57.44
$108.75
(47.2
%)
30.6
%
West North Central
18
38.1
%
78.6
%
(51.5
%)
$104.71
$125.82
(16.8
%)
$39.87
$98.84
(59.7
%)
1.3
%
West South Central
41
45.9
%
73.9
%
(37.9
%)
$104.03
$124.15
(16.2
%)
$47.74
$91.69
(47.9
%)
15.1
%
Total Portfolio
235
45.9
%
78.5
%
(41.5
%)
$116.17
$139.85
(16.9
%)
$53.30
$109.78
(51.4
%)
100.0
%
Note: Region categorization based
on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Chain Scale
Three Months Ended September
30
(Unaudited)
Chain Scale/Brand
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
Upscale Courtyard
36
45.3
%
77.2
%
(41.4
%)
$115.04
$150.45
(23.5
%)
$52.07
$116.15
(55.2
%)
20.6
%
Hilton Garden Inn
41
43.6
%
79.1
%
(44.9
%)
$94.58
$133.65
(29.2
%)
$41.22
$105.66
(61.0
%)
8.5
%
Homewood Suites
33
64.5
%
83.2
%
(22.5
%)
$101.90
$134.23
(24.1
%)
$65.77
$111.74
(41.1
%)
20.2
%
Hyatt House
1
20.3
%
$83.31
$16.95
(0.3
)%
Hyatt Place
2
35.1
%
78.4
%
(55.2
%)
$89.82
$101.23
(11.3
%)
$31.56
$79.36
(60.2
%)
(0.3
)%
Residence Inn
33
62.4
%
83.0
%
(24.8
%)
$120.01
$156.02
(23.1
%)
$74.93
$129.56
(42.2
%)
33.0
%
SpringHill Suites
13
34.7
%
80.0
%
(56.6
%)
$85.93
$124.37
(30.9
%)
$29.84
$99.53
(70.0
%)
(0.1
)%
Upscale Total
159
50.6
%
80.2
%
(36.9
%)
$106.32
$141.29
(24.7
%)
$53.82
$113.36
(52.5
%)
81.6
%
Upper Midscale Fairfield Inn / Fairfield Inn &
Suites
11
35.3
%
75.4
%
(53.1
%)
$86.59
$113.84
(23.9
%)
$30.58
$85.79
(64.4
%)
0.5
%
Hampton Inn / Hampton Inn & Suites
40
43.0
%
80.5
%
(46.5
%)
$98.38
$132.32
(25.7
%)
$42.32
$106.49
(60.3
%)
8.4
%
Home2 Suites
10
62.4
%
81.1
%
(23.1
%)
$108.04
$140.50
(23.1
%)
$67.44
$114.02
(40.9
%)
8.6
%
TownePlace Suites
9
62.2
%
80.6
%
(22.8
%)
$94.32
$118.57
(20.5
%)
$58.71
$95.55
(38.6
%)
5.9
%
Upper Midscale Total
70
46.6
%
79.8
%
(41.6
%)
$98.16
$129.04
(23.9
%)
$45.73
$102.93
(55.6
%)
23.4
%
Upper Upscale Embassy Suites
2
61.6
%
88.3
%
(30.3
%)
$150.19
$212.44
(29.3
%)
$92.47
$187.56
(50.7
%)
2.9
%
Marriott
2
12.5
%
61.0
%
(79.5
%)
$98.51
$144.98
(32.1
%)
$12.32
$88.45
(86.1
%)
(1.9
)%
Upper Upscale Total
4
29.1
%
70.3
%
(58.5
%)
$135.51
$173.72
(22.0
%)
$39.47
$122.06
(67.7
%)
1.0
%
Independents Independents
2
28.4
%
90.5
%
(68.6
%)
$130.10
$240.66
(45.9
%)
$36.91
$217.72
(83.0
%)
(6.0
)%
Independents Total
2
28.4
%
90.5
%
(68.6
%)
$130.10
$240.66
(45.9
%)
$36.91
$217.72
(83.0
%)
(6.0
)%
Total Portfolio
235
48.6
%
79.9
%
(39.2
%)
$104.78
$139.78
(25.0
%)
$50.94
$111.66
(54.4
%)
100.0
%
Note: Chain scale categorization
based on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Chain Scale
Nine Months Ended September
30
(Unaudited)
Chain Scale/Brand
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
YTD 2020
YTD 2019
% Change
YTD 2020
YTD 2019
% Change
YTD 2020
YTD 2019
% Change
YTD 2020
Upscale Courtyard
36
40.7
%
76.2
%
(46.6
%)
$123.89
$146.70
(15.5
%)
$50.43
$111.72
(54.9
%)
16.4
%
Hilton Garden Inn
41
41.7
%
77.7
%
(46.4
%)
$110.19
$135.60
(18.7
%)
$45.90
$105.40
(56.5
%)
11.7
%
Homewood Suites
33
59.1
%
82.9
%
(28.7
%)
$114.35
$138.73
(17.6
%)
$67.64
$115.04
(41.2
%)
20.7
%
Hyatt House
1
20.3
%
$83.31
$16.95
(0.1
)%
Hyatt Place
2
46.0
%
76.6
%
(40.0
%)
$93.73
$107.66
(12.9
%)
$43.08
$82.49
(47.8
%)
0.0
%
Residence Inn
33
58.0
%
80.2
%
(27.7
%)
$126.96
$149.54
(15.1
%)
$73.58
$119.93
(38.6
%)
31.0
%
SpringHill Suites
13
34.7
%
77.3
%
(55.1
%)
$102.75
$125.78
(18.3
%)
$35.67
$97.24
(63.3
%)
0.7
%
Upscale Total
159
47.3
%
78.7
%
(40.0
%)
$117.47
$140.65
(16.5
%)
$55.53
$110.75
(49.9
%)
80.4
%
Upper Midscale Fairfield Inn / Fairfield Inn &
Suites
11
37.3
%
75.5
%
(50.6
%)
$100.77
$117.82
(14.5
%)
$37.55
$88.90
(57.8
%)
1.3
%
Hampton Inn / Hampton Inn & Suites
40
40.4
%
77.8
%
(48.1
%)
$112.80
$135.78
(16.9
%)
$45.56
$105.61
(56.9
%)
9.5
%
Home2 Suites
10
59.1
%
82.9
%
(28.7
%)
$112.95
$139.97
(19.3
%)
$66.76
$115.98
(42.4
%)
7.6
%
TownePlace Suites
9
57.8
%
79.0
%
(26.9
%)
$103.01
$118.74
(13.3
%)
$59.52
$93.82
(36.6
%)
5.9
%
Upper Midscale Total
70
44.3
%
78.2
%
(43.3
%)
$109.83
$131.62
(16.6
%)
$48.66
$102.89
(52.7
%)
24.3
%
Upper Upscale Embassy Suites
2
61.4
%
88.6
%
(30.7
%)
$154.47
$196.22
(21.3
%)
$94.86
$173.91
(45.5
%)
2.7
%
Marriott
2
20.6
%
64.6
%
(68.1
%)
$134.00
$148.66
(9.9
%)
$27.63
$96.10
(71.2
%)
(1.7
)%
Upper Upscale Total
4
34.4
%
72.8
%
(52.7
%)
$146.37
$168.30
(13.0
%)
$50.42
$122.48
(58.8
%)
1.0
%
Independents Independents
2
29.7
%
89.7
%
(66.9
%)
$133.06
$228.04
(41.7
%)
$39.53
$204.65
(80.7
%)
(5.7
)%
Independents Total
2
29.7
%
89.7
%
(66.9
%)
$133.06
$228.04
(41.7
%)
$39.53
$204.65
(80.7
%)
(5.7
)%
Total Portfolio
235
45.9
%
78.5
%
(41.5
%)
$116.17
$139.85
(16.9
%)
$53.30
$109.78
(51.4
%)
100.0
%
Note: Chain scale categorization
based on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Location
Three Months Ended September
30
(Unaudited)
Location
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
Q3 2019
% Change
Q3 2020
STR Location Airport
19
50.5
%
81.0
%
(37.6
%)
$91.27
$128.82
(29.1
%)
$46.13
$104.35
(55.8
%)
3.4
%
Interstate
6
60.1
%
81.7
%
(26.4
%)
$97.74
$112.44
(13.1
%)
$58.77
$91.91
(36.1
%)
3.7
%
Resort
11
44.4
%
82.4
%
(46.1
%)
$154.89
$147.80
4.8
%
$68.80
$121.74
(43.5
%)
12.2
%
Small Metro/Town
16
55.9
%
76.0
%
(26.4
%)
$91.49
$112.47
(18.7
%)
$51.16
$85.51
(40.2
%)
7.9
%
Suburban
141
50.4
%
79.6
%
(36.6
%)
$103.14
$136.83
(24.6
%)
$52.01
$108.89
(52.2
%)
62.2
%
Urban
42
40.8
%
80.6
%
(49.3
%)
$108.99
$159.58
(31.7
%)
$44.51
$128.63
(65.4
%)
10.6
%
Total Portfolio
235
48.6
%
79.9
%
(39.2
%)
$104.78
$139.78
(25.0
%)
$50.94
$111.66
(54.4
%)
100.0
%
Note: Location categorization based
on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Location
Nine Months Ended September
30
(Unaudited)
Location
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
YTD 2020
YTD 2019
% Change
YTD 2020
YTD 2019
% Change
YTD 2020
YTD 2019
% Change
YTD 2020
STR Location Airport
19
52.6
%
81.1
%
(35.2
%)
$107.23
$130.94
(18.1
%)
$56.36
$106.24
(47.0
%)
7.2
%
Interstate
6
51.6
%
77.4
%
(33.3
%)
$101.79
$111.21
(8.5
%)
$52.54
$86.05
(38.9
%)
2.8
%
Resort
11
44.7
%
83.0
%
(46.2
%)
$145.84
$152.24
(4.2
%)
$65.12
$126.43
(48.5
%)
9.4
%
Small Metro/Town
16
51.8
%
78.9
%
(34.3
%)
$106.47
$120.07
(11.3
%)
$55.15
$94.71
(41.8
%)
8.9
%
Suburban
141
46.7
%
77.9
%
(40.1
%)
$113.78
$135.93
(16.3
%)
$53.15
$105.94
(49.8
%)
59.5
%
Urban
42
39.4
%
78.2
%
(49.6
%)
$125.71
$159.14
(21.0
%)
$49.52
$124.44
(60.2
%)
12.2
%
Total Portfolio
235
45.9
%
78.5
%
(41.5
%)
$116.17
$139.85
(16.9
%)
$53.30
$109.78
(51.4
%)
100.0
%
Note: Location categorization based
on STR designation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201105006100/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804-727-6321 kclarke@applereit.com
Apple Hospitality REIT (NYSE:APLE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Apple Hospitality REIT (NYSE:APLE)
Historical Stock Chart
From Sep 2023 to Sep 2024