Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or
“Apple Hospitality”) today announced results of operations for the
first quarter ended March 31, 2022.
Apple Hospitality REIT,
Inc.
Selected Statistical and
Financial Data
As of and For the Three Months
Ended March 31
(Unaudited) (in thousands,
except statistical and per share amounts)(1)
Three Months Ended
March 31,
2022
2021
% Change
Net income (loss)
$18,002
$(46,435)
n/a
Net income (loss) per share
$0.08
$(0.21)
n/a
Adjusted EBITDAre
$78,298
$27,308
186.7%
Comparable Hotels Adjusted Hotel
EBITDA
$87,909
$33,838
159.8%
Comparable Hotels Adjusted Hotel EBITDA
Margin %
33.7%
22.2%
1,150 bps
Modified funds from operations (MFFO)
$63,460
$8,682
630.9%
MFFO per share
$0.28
$0.04
600.0%
Average Daily Rate (ADR) (Actual)
$137.03
$99.19
38.1%
Occupancy (Actual)
67.1%
55.5%
20.9%
Revenue Per Available Room (RevPAR)
(Actual)
$91.98
$55.09
67.0%
Comparable Hotels ADR
$137.03
$99.98
37.1%
Comparable Hotels Occupancy
67.1%
55.4%
21.1%
Comparable Hotels RevPAR
$91.98
$55.34
66.2%
Distributions paid
$13,701
-
n/a
Distributions paid per share
$0.06
-
n/a
Cash and cash equivalents
$636
Total debt outstanding
$1,437,990
Total debt outstanding, net of cash and
cash equivalents
$1,437,354
Total debt outstanding, net of cash and
cash equivalents, to total capitalization(2)
25.9%
(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 $17.97 on March 31, 2022.
Comparable Hotels is defined as the 219 hotels owned by the
Company as of March 31, 2022. 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, “Operations across our portfolio of hotels have
sequentially improved each month since the start of the year. We
continue to benefit from the broad consumer appeal and significant
market diversification of our hotels as evidenced by the strength
and resiliency of our leisure, small group and regional business
demand. We are pleased to report occupancy of 67%, ADR of $137 and
RevPAR of $92 for our portfolio for the first quarter of 2022. As
the impact of the Omicron variant eased during the quarter, demand
for travel regained momentum, and we ended the quarter with RevPAR
for the month of March down less than 2% to March 2019, driven by
strong occupancy and the continued rapid recovery in rate, with a
nearly 4% improvement in ADR as compared to March 2019. Positive
momentum has continued, and preliminary results for our portfolio
show RevPAR for the month of April 2022 exceeded April 2019. Our
corporate and on-site teams have continued to maximize
profitability through strategic revenue management and ongoing
efforts to realize operational efficiencies, and we achieved strong
bottom-line results with Adjusted EBITDAre of $78 million,
Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 34%
and MFFO of $63 million, or $0.28 per share, for the quarter. We
remain incredibly well positioned and anticipate additional upside
as the recovery spreads to an increasing number of markets and
business demand further strengthens.”
Mr. Knight continued, “During the most challenging operating
environment our industry has ever experienced, we achieved
industry-leading operating results, enhanced the growth profile and
long-term value of our portfolio through strategic acquisitions and
dispositions, and maintained the strength and flexibility of our
balance sheet. We are pleased to have reinstated monthly dividends
for our shareholders, beginning with a payment in March, and remain
intently focused on maximizing total returns for our shareholders
over the long term. Our strategy of investing in a broadly
diversified portfolio of high-quality, rooms-focused hotels with
low leverage has been tested and consistently yielded compelling
results for our investors. We are confident we are well positioned
for continued outperformance.”
Hotel Portfolio Overview
As of March 31, 2022, Apple Hospitality owned 219 hotels with an
aggregate of 28,747 guest rooms located in 86 markets throughout 36
states.
Operations Update
- Strong operating performance: During the first quarter
2022, occupancy and RevPAR for the Company’s portfolio exceeded
industry averages as reported by STR. For the Company’s portfolio,
first quarter 2022 ADR was slightly ahead of first quarter 2019,
while first quarter 2022 occupancy and RevPAR each trailed first
quarter 2019 by only 9%. Impact from the Omicron variant began to
ease in February. For the month of March 2022, occupancy and ADR
reached their highest levels since the start of the pandemic,
driving RevPAR for the Company’s portfolio to less than 2% down
compared to March 2019. Operations have sequentially improved each
month of 2022, with April 2022 occupancy at approximately 77%, down
4% as compared to April 2019 and up 13% as compared to April
2021.
- Strong bottom-line performance: The Company achieved
Comparable Hotels Adjusted Hotel EBITDA of approximately $88
million, Comparable Hotels Adjusted Hotel EBITDA Margin of
approximately 34% and MFFO of approximately $63 million for the
first quarter 2022, despite lower occupancies in January and
February. As a result of continued efforts to maximize operational
efficiencies and despite inflationary pressures, hotel operating
expenses were reduced by approximately 12% during the first quarter
2022, as compared to first quarter 2019.
- Balance sheet: The Company has maintained the strength
and flexibility of its balance sheet. At March 31, 2022, the
Company’s total debt to total capitalization, net of cash and cash
equivalents, was approximately 26%.
- Monthly distributions: During the first quarter 2022,
the Company’s Board of Directors reinstated regular monthly cash
distributions, beginning with a distribution in March 2022.
The following tables highlight the Company’s monthly performance
during the first quarter of 2022, as compared to the first quarters
of 2021 and 2019 (in thousands, except statistical data):
January
February
March
January
February
March
January
February
March
2022
2022
2022
Q1 2022
2021
2021
2021
Q1 2021
2019
2019
2019
Q1 2019
ADR
$126.51
$135.43
$146.07
$137.03
$95.15
$97.41
$103.27
$99.19
$129.81
$137.05
$141.16
$136.36
Occupancy
56.2%
69.0%
76.4%
67.1%
45.1%
55.2%
66.3%
55.5%
66.1%
75.4%
80.2%
73.9%
RevPAR
$71.11
$93.42
$111.55
$91.98
$42.94
$53.74
$68.46
$55.09
$85.78
$103.35
$113.23
$100.71
Adjusted Hotel EBITDA(1)
$15,166
$26,150
$46,620
$87,936
$4,612
$9,986
$20,829
$35,427
$26,418
$35,232
$47,154
$108,804
% Change
% Change
January
February
March
January
February
March
January
February
March
2022
2022
2022
Q1 2022
2021
2021
2021
Q1 2021
2019
2019
2019
Q1 2019
ADR
$126.51
$135.43
$146.07
$137.03
33.0%
39.0%
41.4%
38.1%
(2.5%)
(1.2%)
3.5%
0.5%
Occupancy
56.2%
69.0%
76.4%
67.1%
24.6%
25.0%
15.2%
20.9%
(15.0%)
(8.5%)
(4.7%)
(9.2%)
RevPAR
$71.11
$93.42
$111.55
$91.98
65.6%
73.8%
62.9%
67.0%
(17.1%)
(9.6%)
(1.5%)
(8.7%)
Adjusted Hotel EBITDA(1)
$15,166
$26,150
$46,620
$87,936
228.8%
161.9%
123.8%
148.2%
(42.6%)
(25.8%)
(1.1%)
(19.2%)
Note: Comparisons to 2019 operating results are included
to provide a better understanding of the Company’s recovery from
the impact of COVID-19 on hotel operations.
(1) See explanation and reconciliation of Adjusted Hotel EBITDA
to net income (loss) included below.
Portfolio Activity
Contract for Potential Acquisition
As previously announced, the Company has an outstanding contract
for the purchase of an Embassy Suites by Hilton in Madison,
Wisconsin, for an anticipated total purchase price of approximately
$79 million. The hotel is currently under development and expected
to include 260 rooms. 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 under the outstanding purchase
contract. Assuming all conditions to closing are met, the Company
anticipates acquiring the hotel following completion of
construction, which is expected to occur in early 2024.
Capital Improvements
Apple Hospitality consistently reinvests in its hotels to
maintain and enhance each property’s relevance and competitive
position within its respective market. During the three months
ended March 31, 2022, the Company invested approximately $8 million
in capital expenditures. The Company anticipates investing
approximately $55 million to $65 million in capital improvements
during 2022, which includes various renovation projects for
approximately 20 to 25 hotels, however, inflationary pressures or
supply chain shortages, among other issues, may result in increased
costs and delays for anticipated projects.
Balance Sheet and
Liquidity
Summary
As of March 31, 2022, Apple Hospitality had approximately $1.4
billion of total outstanding debt with a current combined
weighted-average interest rate of approximately 3.5%, cash on hand
of approximately $1 million and availability under its revolving
credit facility of approximately $349 million. Excluding
unamortized debt issuance costs and fair value adjustments, the
Company’s total outstanding debt is comprised of approximately $491
million in property-level debt secured by 28 hotels and
approximately $947 million outstanding under its unsecured credit
facilities. The number of unencumbered hotels in the Company’s
portfolio as of March 31, 2022, was 191. The Company’s total debt
to total capitalization, net of cash and cash equivalents at March
31, 2022, was approximately 26%. As of March 31, 2022, the
Company’s weighted-average debt maturities are 3 years, with
approximately $226 million, net of reserves, maturing in 2022,
including $77 million outstanding on its revolving credit facility.
The Company has the ability to extend the maturity date of its
revolving credit facility up to one year and to refinance or
utilize its revolving credit facility to satisfy the remaining 2022
debt maturities.
Capital Markets
In March 2022, the Company established a written trading plan as
part of its Share Repurchase Program that provides for share
repurchases in open market transactions that is intended to comply
with Rule 10b5-1 under the Securities Exchange Act of 1934, as
amended. During the three months ended March 31, 2022, the company
did not repurchase common shares under its Share Repurchase
Program. As of March 31, 2022, the Company had approximately $345
million remaining under its Share Repurchase Program. The Share
Repurchase Program may be suspended or terminated at any time by
the Company and will end in July 2022 unless extended. The timing
of share repurchases and the number of common shares to be
repurchased under the Share Repurchase Program will depend upon the
prevailing market conditions, regulatory requirements and other
factors.
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”). No shares
were sold under the Company’s ATM Program during the first quarter
2022. As of March 31, 2022, approximately $224 million remained
available for issuance under the ATM Program.
Shareholder
Distributions
During the three months ended March 31, 2022, the Company paid
distributions of $0.06 per common share, including a quarterly
distribution of $0.01 per common share for the fourth quarter of
2021, which was declared in December 2021 and paid in January 2022.
The Company’s Board of Directors reinstated a monthly distribution
policy, beginning with the monthly distribution in March 2022 of
$0.05 per common share. Based on the Company’s common stock closing
price of $17.46 on May 3, 2022, the annualized distribution of
$0.60 per common share represents an annual yield of approximately
3.4%. While the Company expects monthly distributions to continue,
each distribution is subject to approval by the Company’s Board of
Directors. The Company’s Board of Directors, in consultation with
management, will continue to monitor the Company’s distribution
rate and timing relative to the performance of its hotels, capital
improvement needs, varying economic cycles, acquisitions,
dispositions, other cash requirements and the Company’s REIT status
for federal income tax purposes, and may make adjustments as it
deems appropriate.
2022 Outlook
The Company is providing the following full year 2022 outlook
regarding certain corporate expenses, which is based on
management’s current view and does not take into account any
unanticipated developments in its business or changes in its
operating environment:
• General and administrative expenses are projected to be
approximately $32 million to $38 million.
• Interest expense is projected to be approximately $58 million
to $63 million.
• Capital expenditures are projected to be approximately $55
million to $65 million.
The Company does not expect to issue operational guidance or
provide additional outlook updates until it has more certainty on
trends within the industry or otherwise deems appropriate.
First Quarter 2022 Earnings Conference
Call
The Company will host a quarterly conference call for investors
and interested parties at 10 a.m. Eastern Time on Friday, May 6,
2022. 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
May 6, 2022, through 11:59 p.m. Eastern Time on May 27, 2022. 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
13728094. 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 219 hotels
with more than 28,700 guest rooms located in 86 markets throughout
36 states. Concentrated with industry-leading brands, the Company’s
portfolio consists of 94 Marriott-branded hotels, 119
Hilton-branded hotels, four 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; and 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 continues to be the adverse effect of
COVID-19, including resurgences and variants, 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 continued
impacts caused by the COVID-19 pandemic 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 efficacy, acceptance and availability of vaccines, the
duration of associated immunity and efficacy of the vaccines
against variants of COVID-19, the potential for additional hotel
closures/consolidations that may be mandated or advisable, whether
based on increased COVID-19 cases, new variants 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, 2021 as
being heightened as a result of the ongoing and numerous adverse
impacts of COVID-19. Additional factors include, but are not
limited to, the ability of the Company to effectively acquire and
dispose of properties and redeploy proceeds; the anticipated timing
and frequency of shareholder distributions; the ability of the
Company to fund capital obligations; the ability of the Company to
successfully integrate pending transactions and implement its
operating strategy; changes in general political, economic and
competitive conditions and specific market conditions; reduced
business and leisure travel due to travel-related health concerns,
including the COVID-19 pandemic 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; changes in interest rates; litigation risks;
regulatory proceedings or inquiries; and changes in laws or
regulations or interpretations of current laws and regulations that
impact the Company’s business, assets or classification as a REIT.
Although the Company believes that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of
the assumptions could be inaccurate, and therefore there can be no
assurance that such statements included in this press release will
prove to be accurate. In light of the significant uncertainties
inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a
representation by the Company or any other person that the results
or conditions described in such statements or the objectives and
plans of the Company will be achieved. In addition, the Company’s
qualification as a REIT involves the application of highly
technical and complex provisions of the Internal Revenue Code of
1986, as amended. Readers should carefully review the risk factors
described in the Company’s filings with the Securities and Exchange
Commission, including but not limited to those discussed in the
section titled “Risk Factors” in the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2021. 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.
Apple Hospitality REIT,
Inc.
Consolidated Balance
Sheets
(in thousands, except share
data)
March 31,
December 31,
2022
2021
(unaudited)
Assets
Investment in real estate, net of
accumulated depreciation and amortization of $1,356,580 and
$1,311,262, respectively
$4,640,018
$4,677,185
Cash and cash equivalents
636
3,282
Restricted cash-furniture, fixtures and
other escrows
40,568
36,667
Due from third party managers, net
60,560
40,052
Other assets, net
49,335
33,341
Total Assets
$4,791,117
$4,790,527
Liabilities
Debt, net
$1,433,213
$1,438,758
Finance lease liabilities
111,848
111,776
Accounts payable and other liabilities
66,949
92,672
Total Liabilities
1,612,010
1,643,206
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 228,888,561 and
228,255,642 shares, respectively
4,578,758
4,569,352
Accumulated other comprehensive income
(loss)
11,711
(15,508)
Distributions greater than net income
(1,411,362)
(1,406,523)
Total Shareholders' Equity
3,179,107
3,147,321
Total Liabilities and Shareholders'
Equity
$4,791,117
$4,790,527
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 March 31, 2022.
Apple Hospitality REIT,
Inc.
Consolidated Statements of
Operations and Comprehensive Income (Loss)
(Unaudited)
(in thousands, except per
share data)
Three Months Ended
March 31,
2022
2021
Revenues:
Room
$237,976
$148,481
Food and beverage
8,464
2,783
Other
14,038
7,449
Total revenue
260,478
158,713
Expenses:
Hotel operating expense:
Operating
64,331
38,150
Hotel administrative
23,842
17,744
Sales and marketing
22,469
14,888
Utilities
10,290
10,560
Repair and maintenance
13,028
10,225
Franchise fees
11,266
6,919
Management fees
8,776
5,254
Total hotel operating expense
154,002
103,740
Property taxes, insurance and other
18,679
19,688
General and administrative
9,638
8,119
Loss on impairment of depreciable real
estate assets
-
10,754
Depreciation and amortization
45,324
48,710
Total expense
227,643
191,011
Gain on sale of real estate
-
4,484
Operating income (loss)
32,835
(27,814)
Interest and other expense, net
$(14,654)
$(18,513)
Income (loss) before income
taxes
18,181
(46,327)
Income tax expense
(179)
(108)
Net income (loss)
$18,002
$(46,435)
Other comprehensive income:
Interest rate derivatives
27,219
16,082
Comprehensive income (loss)
$45,221
$(30,353)
Basic and diluted net income (loss) per
common share
$0.08
$(0.21)
Weighted average common shares outstanding
- basic and diluted
228,986
223,733
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 March 31, 2022.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics and Statistical Data
(Unaudited)
(in thousands, except
statistical data)
Three Months Ended
March 31,
% Change
% Change
2022
2021
2021
2019
Total revenue
$260,481
$152,446
70.9%
(7.7%)
Total operating expenses
172,572
118,608
45.5%
(4.2%)
Adjusted Hotel EBITDA
$87,909
$33,838
159.8%
(13.9%)
Adjusted Hotel EBITDA Margin %
33.7%
22.2%
1,150 bps
(250 bps)
ADR (Comparable Hotels)
$137.03
$99.98
37.1%
(2.0%)
Occupancy (Comparable Hotels)
67.1%
55.4%
21.1%
(9.1%)
RevPAR (Comparable Hotels)
$91.98
$55.34
66.2%
(10.9%)
ADR (Actual)
$137.03
$99.19
38.1%
0.5%
Occupancy (Actual)
67.1%
55.5%
20.9%
(9.2%)
RevPAR (Actual)
$91.98
$55.09
67.0%
(8.7%)
Reconciliation to Actual
Results
Total Revenue (Actual)
$260,478
$158,713
Revenue from acquisitions prior to
ownership
-
5,133
Revenue from dispositions
3
(11,400)
Comparable Hotels Total Revenue
$260,481
$152,446
Adjusted Hotel EBITDA (AHEBITDA)
(Actual)
$87,936
$35,427
AHEBITDA from acquisitions prior to
ownership
-
707
AHEBITDA from dispositions
(27)
(2,296)
Comparable Hotels AHEBITDA
$87,909
$33,838
Note: Comparable Hotels is defined as the 219 hotels
owned by the Company as of March 31, 2022. 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.
Comparisons to 2019 operating results are included to provide a
better understanding of the Company’s recovery from the impact of
COVID-19 on hotel operations.
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)
2019
2021
2022
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Total revenue
$282,224
$327,033
$321,161
$278,005
$152,446
$242,644
$284,613
$253,225
$260,481
Total operating expenses
180,155
195,324
197,051
183,205
118,608
149,052
175,742
167,844
172,572
Adjusted Hotel EBITDA
$102,069
$131,709
$124,110
$94,800
$33,838
$93,592
$108,871
$85,381
$87,909
Adjusted Hotel EBITDA Margin %
36.2%
40.3%
38.6%
34.1%
22.2%
38.6%
38.3%
33.7%
33.7%
ADR (Comparable Hotels)
$139.83
$145.14
$143.87
$134.61
$99.98
$122.69
$141.86
$131.19
$137.03
Occupancy (Comparable Hotels)
73.8%
81.6%
80.1%
73.2%
55.4%
70.7%
71.4%
67.4%
67.1%
RevPAR (Comparable Hotels)
$103.26
$118.41
$115.28
$98.47
$55.34
$86.71
$101.36
$88.45
$91.98
ADR (Actual)
$136.36
$141.60
$139.21
$131.41
$99.19
$120.56
$140.02
$131.04
$137.03
Occupancy (Actual)
73.9%
81.4%
79.9%
72.9%
55.5%
70.7%
71.5%
67.5%
67.1%
RevPAR (Actual)
$100.71
$115.30
$111.17
$95.85
$55.09
$85.28
$100.14
$88.43
$91.98
Reconciliation to Actual
Results
Total Revenue (Actual)
$303,787
$341,117
$331,722
$289,971
$158,713
$247,404
$277,164
$250,588
$260,478
Revenue from acquisitions prior to
ownership
11,541
14,123
16,510
12,982
5,133
10,350
11,321
2,870
-
Revenue from dispositions
(33,104)
(28,207)
(27,071)
(24,948)
(11,400)
(15,110)
(3,872)
(233)
3
Comparable Hotels Total Revenue
$282,224
$327,033
$321,161
$278,005
$152,446
$242,644
$284,613
$253,225
$260,481
Adjusted Hotel EBITDA (AHEBITDA)
(Actual)
$108,804
$134,759
$124,596
$96,836
$35,427
$94,814
$105,423
$84,609
$87,936
AHEBITDA from acquisitions prior to
ownership
4,812
7,049
8,607
5,843
707
3,917
4,749
989
-
AHEBITDA from dispositions
(11,547)
(10,099)
(9,093)
(7,879)
(2,296)
(5,139)
(1,301)
(217)
(27)
Comparable Hotels AHEBITDA
$102,069
$131,709
$124,110
$94,800
$33,838
$93,592
$108,871
$85,381
$87,909
Note: Comparable Hotels is defined as the 219 hotels
owned by the Company as of March 31, 2022. 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.
Comparisons to 2019 operating results are included to provide a
better understanding of the Company’s recovery from the impact of
COVID-19 on hotel operations.
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
March 31,
% Change
% Change
2022
2021
2021
2019
Total revenue
$240,054
$143,410
67.4%
(11.1%)
Total operating expenses
158,769
110,587
43.6%
(8.2%)
Adjusted Hotel EBITDA
$81,285
$32,823
147.6%
(16.2%)
Adjusted Hotel EBITDA Margin %
33.9%
22.9%
1,100 bps
(200 bps)
ADR (Same Store Hotels)
$135.71
$99.79
36.0%
(2.6%)
Occupancy (Same Store Hotels)
67.5%
56.0%
20.5%
(9.0%)
RevPAR (Same Store Hotels)
$91.67
$55.88
64.0%
(11.3%)
ADR (Actual)
$137.03
$99.19
38.1%
0.5%
Occupancy (Actual)
67.1%
55.5%
20.9%
(9.2%)
RevPAR (Actual)
$91.98
$55.09
67.0%
(8.7%)
Reconciliation to Actual
Results
Total Revenue (Actual)
$260,478
$158,713
Revenue from acquisitions
(20,427)
(3,903)
Revenue from dispositions
3
(11,400)
Same Store Hotels Total Revenue
$240,054
$143,410
Adjusted Hotel EBITDA (AHEBITDA)
(Actual)
$87,936
$35,427
AHEBITDA from acquisitions
(6,624)
(308)
AHEBITDA from dispositions
(27)
(2,296)
Same Store Hotels AHEBITDA
$81,285
$32,823
Note: Same Store Hotels is defined as the 204 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.
Comparisons to 2019 operating results are included to provide a
better understanding of the Company’s recovery from the impact of
COVID-19 on hotel operations.
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)
2019
2021
2022
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Total revenue
$269,979
$310,174
$301,822
$261,702
$143,410
$226,003
$261,710
$232,909
$240,054
Total operating expenses
172,970
186,495
187,359
173,741
110,587
137,608
161,892
154,441
158,769
Adjusted Hotel EBITDA
$97,009
$123,679
$114,463
$87,961
$32,823
$88,395
$99,818
$78,468
$81,285
Adjusted Hotel EBITDA Margin %
35.9%
39.9%
37.9%
33.6%
22.9%
39.1%
38.1%
33.7%
33.9%
ADR (Same Store Hotels)
$139.36
$144.35
$142.25
$133.50
$99.79
$121.99
$140.04
$129.69
$135.71
Occupancy (Same Store Hotels)
74.2%
81.8%
80.1%
73.0%
56.0%
71.4%
71.8%
67.9%
67.5%
RevPAR (Same Store Hotels)
$103.36
$118.07
$113.90
$97.45
$55.88
$87.07
$100.53
$88.12
$91.67
ADR (Actual)
$136.36
$141.60
$139.21
$131.41
$99.19
$120.56
$140.02
$131.04
$137.03
Occupancy (Actual)
73.9%
81.4%
79.9%
72.9%
55.5%
70.7%
71.5%
67.5%
67.1%
RevPAR (Actual)
$100.71
$115.30
$111.17
$95.85
$55.09
$85.28
$100.14
$88.43
$91.98
Reconciliation to Actual
Results
Total Revenue (Actual)
$303,787
$341,117
$331,722
$289,971
$158,713
$247,404
$277,164
$250,588
$260,478
Revenue from acquisitions
(704)
(2,736)
(2,829)
(3,321)
(3,903)
(6,291)
(11,582)
(17,446)
(20,427)
Revenue from dispositions
(33,104)
(28,207)
(27,071)
(24,948)
(11,400)
(15,110)
(3,872)
(233)
3
Same Store Hotels Total Revenue
$269,979
$310,174
$301,822
$261,702
$143,410
$226,003
$261,710
$232,909
$240,054
Adjusted Hotel EBITDA (AHEBITDA)
(Actual)
$108,804
$134,759
$124,596
$96,836
$35,427
$94,814
$105,423
$84,609
$87,936
AHEBITDA from acquisitions
(248)
(981)
(1,040)
(996)
(308)
(1,280)
(4,304)
(5,924)
(6,624)
AHEBITDA from dispositions
(11,547)
(10,099)
(9,093)
(7,879)
(2,296)
(5,139)
(1,301)
(217)
(27)
Same Store Hotels AHEBITDA
$97,009
$123,679
$114,463
$87,961
$32,823
$88,395
$99,818
$78,468
$81,285
Note: Same Store Hotels is defined as the 204 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.
Comparisons to 2019 operating results are included to provide a
better understanding of the Company’s recovery from the impact of
COVID-19 on hotel operations.
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 for 2019, 2021 and 2022:
2019
2021
2022
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Net income (loss)
$38,151
$62,090
$46,223
$25,453
$(46,435)
$20,283
$31,759
$13,221
$18,002
Depreciation and amortization
47,950
48,109
47,887
49,294
48,710
46,386
44,217
45,158
45,324
Amortization of favorable and unfavorable
operating leases, net
31
31
31
31
98
98
98
99
99
Interest and other expense, net
15,494
15,857
14,759
15,081
18,513
18,618
15,977
14,640
14,654
Income tax expense
206
156
143
174
108
87
114
159
179
EBITDA
101,832
126,243
109,043
90,033
20,994
85,472
92,165
73,277
78,258
(Gain) loss on sale of real estate
(1,213)
161
-
(3,969)
(4,484)
864
(44)
68
-
Loss on impairment of depreciable real
estate assets
-
-
6,467
-
10,754
-
-
-
-
EBITDAre
100,619
126,404
115,510
86,064
27,264
86,336
92,121
73,345
78,258
Non-cash straight-line operating ground
lease expense
48
47
47
46
44
43
41
41
40
Adjusted EBITDAre
$100,667
$126,451
$115,557
$86,110
$27,308
$86,379
$92,162
$73,386
$78,298
General and administrative expense
8,137
8,308
9,039
10,726
8,119
8,435
13,261
11,223
9,638
Adjusted Hotel EBITDA
$108,804
$134,759
$124,596
$96,836
$35,427
$94,814
$105,423
$84,609
$87,936
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 months ended March 31, 2022
and 2021:
Three months ended March
31,
2022
2021
Net income (loss)
$18,002
$(46,435)
Depreciation of real estate owned
44,560
47,088
Gain on sale of real estate
-
(4,484)
Loss on impairment of depreciable real
estate assets
-
10,754
Funds from operations
62,562
6,923
Amortization of finance ground lease
assets
759
1,617
Amortization of favorable and unfavorable
operating leases, net
99
98
Non-cash straight-line operating ground
lease expense
40
44
Modified funds from operations
$63,460
$8,682
Apple Hospitality REIT,
Inc.
Debt Summary
(Unaudited)
($ in thousands)
March 31, 2022
April 1 - December 31,
2022
2023
2024
2025
2026
Thereafter
Total
Fair Market Value
Total debt:
Maturities
$
238,774
$
296,214
$
338,597
$
245,140
$
74,649
$
244,616
$
1,437,990
$
1,390,985
Average interest rates(1)
3.4
%
3.5
%
3.8
%
3.9
%
3.8
%
3.7
%
Variable-rate debt:
Maturities
$
76,500
$
250,000
$
310,000
$
175,000
$
-
$
85,000
$
896,500
$
877,671
Average interest rates(1)
3.1
%
3.3
%
3.7
%
4.1
%
4.1
%
3.8
%
Fixed-rate debt:
Maturities
$
162,274
$
46,214
$
28,597
$
70,140
$
74,649
$
159,616
$
541,490
$
513,314
Average interest rates
4.0
%
3.9
%
3.9
%
3.8
%
3.7
%
3.7
%
(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 March 31, 2022.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Market Compared to 2021
Three Months Ended March
31
(Unaudited)
Top 20 Markets
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
Top 20 Markets
Phoenix, AZ
10
78.9%
60.7%
30.0%
$176.34
$106.74
65.2%
$139.15
$64.83
114.6%
10.9%
Los Angeles, CA
8
80.8%
83.0%
(2.7%)
$171.30
$112.12
52.8%
$138.34
$93.02
48.7%
7.0%
San Diego, CA
7
67.9%
46.9%
44.8%
$148.63
$110.56
34.4%
$100.89
$51.90
94.4%
4.7%
Fort Worth/Arlington, TX
6
81.3%
72.9%
11.5%
$144.27
$100.81
43.1%
$117.31
$73.47
59.7%
4.2%
Orange County, CA
6
69.6%
60.6%
14.9%
$144.37
$100.34
43.9%
$100.48
$60.84
65.2%
3.7%
Melbourne, FL
3
83.6%
49.1%
70.3%
$176.39
$129.70
36.0%
$147.53
$63.71
131.6%
3.3%
Miami, FL
3
86.2%
72.4%
19.1%
$169.84
$104.14
63.1%
$146.36
$75.37
94.2%
2.8%
Nashville, TN
5
71.5%
50.4%
41.9%
$147.91
$95.89
54.2%
$105.71
$48.33
118.7%
2.8%
Richmond/Petersburg, VA
4
61.4%
44.9%
36.7%
$174.59
$116.06
50.4%
$107.15
$52.15
105.5%
2.7%
Orlando, FL
3
75.1%
51.7%
45.3%
$137.81
$81.05
70.0%
$103.53
$41.87
147.3%
2.3%
North Carolina East
4
67.6%
65.5%
3.2%
$118.25
$107.28
10.2%
$79.98
$70.29
13.8%
2.3%
Tucson, AZ
3
87.3%
67.5%
29.3%
$131.81
$98.69
33.6%
$115.02
$66.60
72.7%
2.2%
Fort Lauderdale, FL
2
85.6%
78.9%
8.5%
$170.29
$99.40
71.3%
$145.79
$78.40
86.0%
2.1%
Austin, TX
7
66.2%
51.4%
28.8%
$118.86
$85.45
39.1%
$78.67
$43.93
79.1%
2.0%
Florida Panhandle
5
65.5%
66.5%
(1.5%)
$134.15
$111.49
20.3%
$87.83
$74.14
18.5%
1.9%
Seattle, WA
3
62.8%
57.1%
10.0%
$146.71
$120.83
21.4%
$92.07
$68.94
33.6%
1.8%
Dallas, TX
5
59.9%
59.8%
0.2%
$125.94
$87.45
44.0%
$75.38
$52.28
44.2%
1.8%
Birmingham, AL
4
72.1%
55.7%
29.4%
$135.56
$103.73
30.7%
$97.70
$57.81
69.0%
1.7%
Alaska
2
80.7%
70.4%
14.6%
$162.97
$126.46
28.9%
$131.47
$89.07
47.6%
1.6%
Oklahoma City, OK
4
61.6%
64.3%
(4.2%)
$131.85
$101.34
30.1%
$81.28
$65.12
24.8%
1.6%
Top 20 Markets
94
72.6%
60.7%
19.6%
$150.90
$104.52
44.4%
$109.51
$63.47
72.5%
63.4%
All Other Markets
125
62.7%
51.0%
22.9%
$124.07
$95.53
29.9%
$77.83
$48.68
59.9%
36.6%
Total Portfolio
219
67.1%
55.4%
21.1%
$137.03
$99.98
37.1%
$91.98
$55.34
66.2%
100.0%
Note: Market categorization based on STR designation. Top
20 markets based on Comparable Hotels Adjusted Hotel EBITDA
contribution.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Market Compared to 2019
Three Months Ended March
31
(Unaudited)
Top 20 Markets
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
Top 20 Markets
Phoenix, AZ
10
78.9%
83.1%
(5.1%)
$176.34
$173.21
1.8%
$139.15
$143.95
(3.3%)
10.9%
Los Angeles, CA
8
80.8%
87.4%
(7.6%)
$171.30
$170.72
0.3%
$138.34
$149.25
(7.3%)
7.0%
San Diego, CA
7
67.9%
77.0%
(11.8%)
$148.63
$153.19
(3.0%)
$100.89
$117.88
(14.4%)
4.7%
Fort Worth/Arlington, TX
6
81.3%
79.4%
2.4%
$144.27
$145.83
(1.1%)
$117.31
$115.77
1.3%
4.2%
Orange County, CA
6
69.6%
82.4%
(15.5%)
$144.37
$147.63
(2.2%)
$100.48
$121.62
(17.4%)
3.7%
Melbourne, FL
3
83.6%
93.2%
(10.3%)
$176.39
$173.27
1.8%
$147.53
$161.40
(8.6%)
3.3%
Miami, FL
3
86.2%
83.4%
3.4%
$169.84
$173.64
(2.2%)
$146.36
$144.78
1.1%
2.8%
Nashville, TN
5
71.5%
80.1%
(10.7%)
$147.91
$160.79
(8.0%)
$105.71
$128.77
(17.9%)
2.8%
Richmond/Petersburg, VA
4
61.4%
73.5%
(16.5%)
$174.59
$154.88
12.7%
$107.15
$113.78
(5.8%)
2.7%
Orlando, FL
3
75.1%
79.5%
(5.5%)
$137.81
$135.27
1.9%
$103.53
$107.55
(3.7%)
2.3%
North Carolina East
4
67.6%
79.4%
(14.9%)
$118.25
$108.96
8.5%
$79.98
$86.50
(7.5%)
2.3%
Tucson, AZ
3
87.3%
88.6%
(1.5%)
$131.81
$133.39
(1.2%)
$115.02
$118.20
(2.7%)
2.2%
Fort Lauderdale, FL
2
85.6%
91.4%
(6.3%)
$170.29
$181.37
(6.1%)
$145.79
$165.78
(12.1%)
2.1%
Austin, TX
7
66.2%
70.1%
(5.6%)
$118.86
$129.12
(7.9%)
$78.67
$90.46
(13.0%)
2.0%
Florida Panhandle
5
65.5%
79.1%
(17.2%)
$134.15
$150.21
(10.7%)
$87.83
$118.81
(26.1%)
1.9%
Seattle, WA
3
62.8%
77.1%
(18.5%)
$146.71
$165.76
(11.5%)
$92.07
$127.78
(27.9%)
1.8%
Dallas, TX
5
59.9%
70.1%
(14.6%)
$125.94
$130.46
(3.5%)
$75.38
$91.39
(17.5%)
1.8%
Birmingham, AL
4
72.1%
74.9%
(3.7%)
$135.56
$123.45
9.8%
$97.70
$92.46
5.7%
1.7%
Alaska
2
80.7%
82.0%
(1.6%)
$162.97
$154.97
5.2%
$131.47
$127.09
3.4%
1.6%
Oklahoma City, OK
4
61.6%
72.5%
(15.0%)
$131.85
$126.49
4.2%
$81.28
$91.69
(11.4%)
1.6%
Top 20 Markets
94
72.6%
79.4%
(8.6%)
$150.90
$151.16
(0.2%)
$109.51
$119.99
(8.7%)
63.4%
All Other Markets
125
62.7%
69.5%
(9.8%)
$124.07
$129.64
(4.3%)
$77.83
$90.08
(13.6%)
36.6%
Total Portfolio
219
67.1%
73.8%
(9.1%)
$137.03
$139.83
(2.0%)
$91.98
$103.26
(10.9%)
100.0%
Note: Market categorization based on STR designation. Top
20 markets based on Comparable Hotels Adjusted Hotel EBITDA
contribution. Comparisons to 2019 operating results are included to
provide a better understanding of the Company’s recovery from the
impact of COVID-19 on hotel operations.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Region Compared to 2021
Three Months Ended March
31
(Unaudited)
Region
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
STR Region
East North Central
15
50.9%
35.9%
41.8%
$112.51
$82.42
36.5%
$57.25
$29.57
93.6%
1.4%
East South Central
26
70.0%
54.4%
28.7%
$131.60
$103.82
26.8%
$92.06
$56.51
62.9%
10.2%
Middle Atlantic
12
61.1%
48.0%
27.3%
$125.33
$99.04
26.5%
$76.63
$47.49
61.4%
1.5%
Mountain
21
75.9%
57.9%
31.1%
$150.45
$98.87
52.2%
$114.11
$57.25
99.3%
16.6%
New England
6
50.7%
43.1%
17.6%
$131.45
$102.57
28.2%
$66.64
$44.22
50.7%
0.9%
Pacific
32
71.1%
62.6%
13.6%
$155.14
$112.07
38.4%
$110.23
$70.20
57.0%
21.8%
South Atlantic
54
71.8%
60.4%
18.9%
$141.08
$100.91
39.8%
$101.30
$60.95
66.2%
29.3%
West North Central
17
58.4%
43.8%
33.3%
$117.60
$90.58
29.8%
$68.70
$39.71
73.0%
3.8%
West South Central
36
66.2%
58.5%
13.2%
$126.00
$92.13
36.8%
$83.44
$53.88
54.9%
14.5%
Total Portfolio
219
67.1%
55.4%
21.1%
$137.03
$99.98
37.1%
$91.98
$55.34
66.2%
100.0%
Note: Region categorization based on STR designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Region Compared to 2019
Three Months Ended March
31
(Unaudited)
Region
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
STR Region
East North Central
15
50.9%
61.9%
(17.8%)
$112.51
$118.15
(4.8%)
$57.25
$73.18
(21.8%)
1.4%
East South Central
26
70.0%
74.5%
(6.0%)
$131.60
$132.70
(0.8%)
$92.06
$98.89
(6.9%)
10.2%
Middle Atlantic
12
61.1%
68.2%
(10.4%)
$125.33
$143.51
(12.7%)
$76.63
$97.81
(21.7%)
1.5%
Mountain
21
75.9%
79.5%
(4.5%)
$150.45
$149.29
0.8%
$114.11
$118.71
(3.9%)
16.6%
New England
6
50.7%
52.1%
(2.7%)
$131.45
$133.70
(1.7%)
$66.64
$69.63
(4.3%)
0.9%
Pacific
32
71.1%
81.3%
(12.5%)
$155.14
$160.66
(3.4%)
$110.23
$130.70
(15.7%)
21.8%
South Atlantic
54
71.8%
76.2%
(5.8%)
$141.08
$140.68
0.3%
$101.30
$107.17
(5.5%)
29.3%
West North Central
17
58.4%
69.9%
(16.5%)
$117.60
$117.13
0.4%
$68.70
$81.90
(16.1%)
3.8%
West South Central
36
66.2%
71.6%
(7.5%)
$126.00
$131.01
(3.8%)
$83.44
$93.86
(11.1%)
14.5%
Total Portfolio
219
67.1%
73.8%
(9.1%)
$137.03
$139.83
(2.0%)
$91.98
$103.26
(10.9%)
100.0%
Note: Region categorization based on STR designation.
Comparisons to 2019 operating results are included to provide a
better understanding of the Company’s recovery from the impact of
COVID-19 on hotel operations.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Chain Scale Compared to 2021
Three Months Ended March
31
(Unaudited)
Chain Scale/Brand
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
Upscale
AC Hotels
1
46.4%
35.6%
30.3%
$137.18
$110.71
23.9%
$63.70
$39.41
61.6%
0.1%
Aloft
1
32.7%
$133.69
$43.67
(0.1)%
Courtyard
33
62.5%
47.9%
30.5%
$135.90
$95.85
41.8%
$84.88
$45.93
84.8%
15.2%
Hilton Garden Inn
40
62.1%
47.0%
32.1%
$133.88
$95.91
39.6%
$83.08
$45.09
84.3%
15.7%
Homewood Suites
30
78.6%
70.4%
11.6%
$137.65
$104.72
31.4%
$108.26
$73.71
46.9%
15.1%
Hyatt House
1
79.1%
50.4%
56.9%
$163.07
$106.36
53.3%
$129.03
$53.64
140.5%
0.6%
Hyatt Place
3
72.8%
57.1%
27.5%
$150.70
$100.56
49.9%
$109.65
$57.39
91.1%
1.8%
Residence Inn
29
73.5%
66.4%
10.7%
$143.51
$114.08
25.8%
$105.47
$75.71
39.3%
16.1%
SpringHill Suites
9
64.8%
59.7%
8.5%
$126.62
$79.98
58.3%
$82.06
$47.77
71.8%
4.1%
Upscale Total
147
67.3%
56.0%
20.2%
$137.19
$101.03
35.8%
$92.33
$56.56
63.2%
68.6%
Upper Midscale
Fairfield
10
64.5%
54.4%
18.6%
$121.92
$76.58
59.2%
$78.61
$41.68
88.6%
3.7%
Hampton
37
63.2%
49.2%
28.5%
$139.22
$96.94
43.6%
$88.01
$47.65
84.7%
15.3%
Home2 Suites
10
77.9%
68.1%
14.4%
$138.77
$101.94
36.1%
$108.16
$69.44
55.8%
6.1%
TownePlace Suites
9
80.3%
69.3%
15.9%
$113.49
$91.82
23.6%
$91.12
$63.62
43.2%
3.9%
Upper Midscale Total
66
67.4%
54.8%
23.0%
$133.25
$94.10
41.6%
$89.78
$51.60
74.0%
29.0%
Upper Upscale
Embassy Suites
2
86.7%
73.4%
18.1%
$182.57
$148.28
23.1%
$158.24
$108.90
45.3%
2.0%
Marriott
2
50.4%
33.3%
51.4%
$156.37
$110.71
41.2%
$78.87
$36.84
114.1%
1.3%
Upper Upscale Total
4
62.7%
46.9%
33.7%
$168.62
$130.61
29.1%
$105.70
$61.19
72.7%
3.3%
Independents
Independents
2
62.0%
55.7%
11.3%
$139.36
$113.30
23.0%
$86.39
$63.11
36.9%
(0.9)%
Independents Total
2
62.0%
55.7%
11.3%
$139.36
$113.30
23.0%
$86.39
$63.11
36.9%
(0.9)%
Total Portfolio
219
67.1%
55.4%
21.1%
$137.03
$99.98
37.1%
$91.98
$55.34
66.2%
100.0%
Note: Chain scale categorization based on STR
designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Chain Scale Compared to 2019
Three Months Ended March
31
(Unaudited)
Chain Scale/Brand
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
Upscale
AC Hotels
1
46.4%
37.1%
25.1%
$137.18
$153.58
(10.7%)
$63.70
$56.93
11.9%
0.1%
Aloft
1
32.7%
$133.69
$43.67
(0.1)%
Courtyard
33
62.5%
70.7%
(11.6%)
$135.90
$138.89
(2.2%)
$84.88
$98.26
(13.6%)
15.2%
Hilton Garden Inn
40
62.1%
73.7%
(15.7%)
$133.88
$137.63
(2.7%)
$83.08
$101.40
(18.1%)
15.7%
Homewood Suites
30
78.6%
80.1%
(1.9%)
$137.65
$146.28
(5.9%)
$108.26
$117.17
(7.6%)
15.1%
Hyatt House
1
79.1%
$163.07
$129.03
0.6%
Hyatt Place
3
72.8%
59.1%
23.2%
$150.70
$120.66
24.9%
$109.65
$71.29
53.8%
1.8%
Residence Inn
29
73.5%
75.5%
(2.6%)
$143.51
$146.99
(2.4%)
$105.47
$110.91
(4.9%)
16.1%
SpringHill Suites
9
64.8%
73.6%
(12.0%)
$126.62
$126.15
0.4%
$82.06
$92.81
(11.6%)
4.1%
Upscale Total
147
67.3%
73.9%
(8.9%)
$137.19
$140.59
(2.4%)
$92.33
$103.90
(11.1%)
68.6%
Upper Midscale
Fairfield
10
64.5%
72.5%
(11.0%)
$121.92
$123.22
(1.1%)
$78.61
$89.32
(12.0%)
3.7%
Hampton
37
63.2%
71.9%
(12.1%)
$139.22
$139.77
(0.4%)
$88.01
$100.53
(12.5%)
15.3%
Home2 Suites
10
77.9%
81.8%
(4.8%)
$138.77
$136.11
2.0%
$108.16
$111.34
(2.9%)
6.1%
TownePlace Suites
9
80.3%
74.0%
8.5%
$113.49
$115.48
(1.7%)
$91.12
$85.43
6.7%
3.9%
Upper Midscale Total
66
67.4%
73.4%
(8.2%)
$133.25
$133.90
(0.5%)
$89.78
$98.30
(8.7%)
29.0%
Upper Upscale
Embassy Suites
2
86.7%
86.7%
0.0%
$182.57
$179.63
1.6%
$158.24
$155.83
1.5%
2.0%
Marriott
2
50.4%
66.1%
(23.8%)
$156.37
$149.29
4.7%
$78.87
$98.69
(20.1%)
1.3%
Upper Upscale Total
4
62.7%
73.1%
(14.2%)
$168.62
$161.50
4.4%
$105.70
$118.06
(10.5%)
3.3%
Independents
Independents
2
62.0%
85.2%
(27.2%)
$139.36
$181.24
(23.1%)
$86.39
$154.35
(44.0%)
(0.9)%
Independents Total
2
62.0%
85.2%
(27.2%)
$139.36
$181.24
(23.1%)
$86.39
$154.35
(44.0%)
(0.9)%
Total Portfolio
219
67.1%
73.8%
(9.1%)
$137.03
$139.83
(2.0%)
$91.98
$103.26
(10.9%)
100.0%
Note: Chain scale categorization based on STR
designation. Comparisons to 2019 operating results are included to
provide a better understanding of the Company’s recovery from the
impact of COVID-19 on hotel operations.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Location Compared to 2021
Three Months Ended March
31
(Unaudited)
Location
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
Q1 2021
% Change
Q1 2022
STR Location
Airport
18
75.7%
63.8%
18.7%
$133.54
$94.62
41.1%
$101.13
$60.34
67.6%
9.3%
Interstate
4
59.0%
49.5%
19.2%
$113.81
$95.52
19.1%
$67.11
$47.26
42.0%
0.9%
Resort
11
71.3%
52.6%
35.6%
$162.22
$110.90
46.3%
$115.72
$58.35
98.3%
8.3%
Small Metro/Town
11
74.9%
62.7%
19.5%
$133.33
$98.94
34.8%
$99.92
$62.01
61.1%
6.2%
Suburban
125
67.8%
57.1%
18.7%
$130.53
$98.62
32.4%
$88.49
$56.33
57.1%
49.9%
Urban
50
61.5%
48.7%
26.3%
$148.85
$103.53
43.8%
$91.58
$50.46
81.5%
25.4%
Total Portfolio
219
67.1%
55.4%
21.1%
$137.03
$99.98
37.1%
$91.98
$55.34
66.2%
100.0%
Note: Location categorization based on STR
designation.
Apple Hospitality REIT,
Inc.
Comparable Hotels Operating
Metrics by Location Compared to 2019
Three Months Ended March
31
(Unaudited)
Location
Occupancy
ADR
RevPAR
% of Adjusted Hotel
EBITDA
# of Hotels
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
Q1 2019
% Change
Q1 2022
STR Location
Airport
18
75.7%
79.0%
(4.2%)
$133.54
$131.97
1.2%
$101.13
$104.31
(3.0%)
9.3%
Interstate
4
59.0%
67.1%
(12.1%)
$113.81
$102.17
11.4%
$67.11
$68.51
(2.0%)
0.9%
Resort
11
71.3%
79.3%
(10.1%)
$162.22
$155.82
4.1%
$115.72
$123.59
(6.4%)
8.3%
Small Metro/Town
11
74.9%
80.2%
(6.6%)
$133.33
$134.81
(1.1%)
$99.92
$108.08
(7.5%)
6.2%
Suburban
125
67.8%
73.3%
(7.5%)
$130.53
$135.62
(3.8%)
$88.49
$99.42
(11.0%)
49.9%
Urban
50
61.5%
71.9%
(14.5%)
$148.85
$151.19
(1.5%)
$91.58
$108.72
(15.8%)
25.4%
Total Portfolio
219
67.1%
73.8%
(9.1%)
$137.03
$139.83
(2.0%)
$91.98
$103.26
(10.9%)
100.0%
Note: Location categorization based on STR designation.
Comparisons to 2019 operating results are included to provide a
better understanding of the Company’s recovery from the impact of
COVID-19 on hotel operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220504006309/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804-727-6321 kclarke@applereit.com For
additional information or to receive press releases by email, visit
www.applehospitalityreit.com.
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