Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the second quarter ended June 30, 2022.

Apple Hospitality REIT, Inc.

Selected Statistical and Financial Data

As of and For the Three and Six Months Ended June 30

(Unaudited) (in thousands, except statistical and per share amounts)(1)

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net income (loss)

$65,345

 

$20,283

 

222.2%

 

$83,347

 

$(26,152)

 

n/a

Net income (loss) per share

$0.29

 

$0.09

 

222.2%

 

$0.36

 

$(0.12)

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAre

$126,208

 

$86,379

 

46.1%

 

$204,506

 

$113,687

 

79.9%

Comparable Hotels Adjusted Hotel EBITDA

$136,509

 

$93,592

 

45.9%

 

$224,418

 

$127,430

 

76.1%

Comparable Hotels Adjusted Hotel EBITDA Margin %

40.4%

 

38.6%

 

180 bps

 

37.5%

 

32.3%

 

520 bps

Modified funds from operations (MFFO)

$110,803

 

$67,670

 

63.7%

 

$174,263

 

$76,352

 

128.2%

MFFO per share

$0.48

 

$0.30

 

60.0%

 

$0.76

 

$0.34

 

123.5%

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Rate (ADR) (Actual)

$153.35

 

$120.56

 

27.2%

 

$145.84

 

$111.19

 

31.2%

Occupancy (Actual)

77.9%

 

70.7%

 

10.2%

 

72.5%

 

63.2%

 

14.7%

Revenue Per Available Room (RevPAR) (Actual)

$119.41

 

$85.28

 

40.0%

 

$105.77

 

$70.23

 

50.6%

 

 

 

 

 

 

 

 

 

 

 

 

Comparable Hotels ADR

$153.35

 

$122.69

 

25.0%

 

$145.84

 

$112.79

 

29.3%

Comparable Hotels Occupancy

77.9%

 

70.7%

 

10.2%

 

72.5%

 

63.1%

 

14.9%

Comparable Hotels RevPAR

$119.41

 

$86.71

 

37.7%

 

$105.77

 

$71.14

 

48.7%

 

 

 

 

 

 

 

 

 

 

 

 

Distributions paid

$34,261

 

$2,232

 

n/a

 

$47,962

 

$2,232

 

n/a

Distributions paid per share

$0.15

 

$0.01

 

n/a

 

$0.21

 

$0.01

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$1,598

 

 

 

 

 

 

 

 

 

 

Total debt outstanding

$1,376,986

 

 

 

 

 

 

 

 

 

 

Total debt outstanding, net of cash and cash equivalents

$1,375,388

 

 

 

 

 

 

 

 

 

 

Total debt outstanding, net of cash and cash equivalents, to total capitalization(2)

29.1%

 

 

 

 

 

 

 

 

 

 

(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 $14.67 on June 30, 2022.

Comparable Hotels is defined as the 219 hotels owned by the Company as of June 30, 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, “Portfolio performance continued to strengthen during the second quarter, exceeding our expectations and surpassing 2019 results. Leisure demand has remained robust while business demand, both transient and group, has continued to steadily improve. We are pleased to report occupancy of 78%, ADR of $153 and RevPAR of $119 for our portfolio for the second quarter of 2022. Driven primarily by rate growth and aided by continued operating efficiencies, we achieved Adjusted EBITDAre of $126 million, Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 40% and MFFO of approximately $111 million, or $0.48 per share, for the quarter. These outstanding results further validate our proven strategy of investing in a diversified portfolio of high-quality, branded, rooms-focused hotels with low leverage and highlight the strength of our corporate and on-site management teams.”

Mr. Knight continued, “We are pleased to have refinanced our primary unsecured credit facility in July, further enhancing the strength and financial flexibility of our balance sheet and bolstering our already strong liquidity position. In addition to extended maturities and improved pricing, the refinancing upsized our revolving credit facility and term loans, providing the Company with greater access to liquidity for strategic growth. We greatly appreciate the support of our lenders, their conviction in our core strategy and their continued confidence in the underlying fundamentals of our business. With second quarter RevPAR and Adjusted Hotel EBITDA now exceeding pre-pandemic levels and additional upside remaining as we continue to build midweek occupancy, we are incredibly optimistic about our future. Our strategy is designed to mitigate downside risk while maintaining meaningful upside potential. Having tested and refined that strategy through multiple economic cycles, we are well positioned to maximize shareholder value in any macroeconomic environment.”

Hotel Portfolio Overview

As of June 30, 2022, Apple Hospitality owned 219 hotels with an aggregate of 28,748 guest rooms located in 86 markets throughout 36 states.

Operations Update

  • Strong operating performance: For the Company’s portfolio, second quarter 2022 RevPAR surpassed second quarter 2019 by approximately 4%, driven by an improvement in ADR of approximately 8% as compared to second quarter 2019. Occupancy, ADR and RevPAR for the Company’s portfolio for the second quarter 2022 exceeded industry averages as reported by STR. Portfolio occupancy outperformance continued into July 2022, with occupancy of approximately 77% for the month, down 6% as compared to July 2019 and up 2% as compared to July 2021, and continued growth in ADR.
  • Strong bottom-line performance: The Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $137 million and Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 40% for the second quarter 2022, improvements of approximately 4% and 10 bps, respectively, as compared to 2019.
  • Balance sheet: In July 2022, the Company amended and restated its existing unsecured $850 million credit facility, increasing the total credit facility to approximately $1.2 billion and extending the maturity dates while achieving improved pricing terms across the total credit facility.

The following tables highlight the Company’s monthly performance during the second quarter of 2022, as compared to the second quarters of 2021 and 2019 (in thousands, except statistical data):

 

 

April

 

May

 

June

 

 

 

April

 

May

 

June

 

 

 

April

 

May

 

June

 

 

 

 

2022

 

2022

 

2022

 

Q2 2022

 

2021

 

2021

 

2021

 

Q2 2021

 

2019

 

2019

 

2019

 

Q2 2019

ADR

 

$148.58

 

$151.56

 

$159.74

 

$153.35

 

$110.08

 

$119.39

 

$131.32

 

$120.56

 

$139.83

 

$139.72

 

$145.14

 

$141.60

Occupancy

 

77.2%

 

76.5%

 

79.9%

 

77.9%

 

68.1%

 

69.8%

 

74.4%

 

70.7%

 

80.6%

 

80.1%

 

83.7%

 

81.4%

RevPAR

 

$114.74

 

$115.97

 

$127.62

 

$119.41

 

$74.94

 

$83.35

 

$97.65

 

$85.28

 

$112.64

 

$111.94

 

$121.41

 

$115.30

Adjusted Hotel EBITDA(1)

 

$42,376

 

$45,012

 

$49,127

 

$136,515

 

$23,869

 

$32,363

 

$38,582

 

$94,814

 

$42,014

 

$43,542

 

$49,203

 

$134,759

 

 

 

 

 

 

 

 

 

 

% Change

 

% Change

 

 

April

 

May

 

June

 

 

 

April

 

May

 

June

 

 

 

April

 

May

 

June

 

 

 

 

2022

 

2022

 

2022

 

Q2 2022

 

2021

 

2021

 

2021

 

Q2 2021

 

2019

 

2019

 

2019

 

Q2 2019

ADR

 

$148.58

 

$151.56

 

$159.74

 

$153.35

 

35.0%

 

26.9%

 

21.6%

 

27.2%

 

6.3%

 

8.5%

 

10.1%

 

8.3%

Occupancy

 

77.2%

 

76.5%

 

79.9%

 

77.9%

 

13.4%

 

9.6%

 

7.4%

 

10.2%

 

(4.2%)

 

(4.5%)

 

(4.5%)

 

(4.3%)

RevPAR

 

$114.74

 

$115.97

 

$127.62

 

$119.41

 

53.1%

 

39.1%

 

30.7%

 

40.0%

 

1.9%

 

3.6%

 

5.1%

 

3.6%

Adjusted Hotel EBITDA(1)

 

$42,376

 

$45,012

 

$49,127

 

$136,515

 

77.5%

 

39.1%

 

27.3%

 

44.0%

 

0.9%

 

3.4%

 

(0.2%)

 

1.3%

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 six months ended June 30, 2022, the Company invested approximately $17 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 June 30, 2022, Apple Hospitality had approximately $1.4 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 3.6%, cash on hand of approximately $2 million and availability under its revolving credit facility of approximately $359 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt was comprised of approximately $366 million in property-level debt secured by 22 hotels and approximately $1 billion outstanding under its unsecured credit facilities, including a seven-year $75 million unsecured senior notes facility that the Company entered into in June 2022 and used the net proceeds for general corporate purposes, including the repayment of borrowings under the Company’s revolving credit facility and the repayment of mortgage debt. During the second quarter, the Company repaid in full the $56 million note payable related to the purchase of the fee interest in the land at its Residence Inn by Marriott Seattle Downtown Lake Union, previously held under a finance ground lease. In addition, during the second quarter, the Company repaid in full six secured mortgage loans for a total of $67 million, increasing the number of unencumbered hotels in the Company’s portfolio as of June 30, 2022, to 197. The Company’s total debt to total capitalization, net of cash and cash equivalents at June 30, 2022, was approximately 29%. As of June 30, 2022, the Company’s weighted-average debt maturities were 3 years, with approximately $96 million, net of reserves, maturing in 2022, including $66 million outstanding on its revolving credit facility.

Amended and Restated Primary Unsecured Credit Facility

On July 25, 2022, the Company amended and restated its existing $850 million credit facility, increasing the borrowing capacity to approximately $1.2 billion, extending maturity dates and achieving improved pricing across the credit facility. Through the amended credit agreement, the Company has greater access to liquidity for strategic growth and the opportunity to reduce its already conservative secured debt exposure. The $1.2 billion credit facility is comprised of a term loan of $275 million with a maturity date of July 25, 2027; a term loan of up to $300 million with a maturity date of January 31, 2028 (including $150 million available via a delayed draw option until 180 days from closing); and a revolving credit facility of $650 million with an initial maturity date of July 25, 2026, which may be extended up to one year subject to certain conditions. The amendments under the total $1.2 billion credit facility provide for additional capacity of $150 million under the term loans and additional capacity of $225 million under the revolving credit facility. The credit agreement also includes an accordion feature through which the amount of the total credit facility may be increased from approximately $1.2 billion to $1.5 billion. The terms of the amended and restated credit agreement are generally similar to the Company’s previous $850 million credit agreement. The facilities will bear interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.25% over an adjusted SOFR rate. At closing, the Company borrowed $475 million under the term loans and used the proceeds to repay the $425 million outstanding under the term loans of the previous credit facility and $50 million outstanding under the current revolving credit facility.

Capital Markets

The Company has in place both a Share Repurchase Program and an at-the-market offering program (the “ATM Program”). During the second quarter 2022, repurchases under the Share Repurchase Program were minimal and no shares were sold under the ATM Program. As of June 30, 2022, the Company had approximately $345 million remaining under its Share Repurchase Program for the repurchase of shares and approximately $224 million remaining under its ATM Program for the issuance of shares.

Shareholder Distributions

During the three months ended June 30, 2022, the Company paid distributions totaling $0.15 per common share. Based on the Company’s common stock closing price of $16.27 on August 2, 2022, the annualized distribution of $0.60 per common share represents an annual yield of approximately 3.7%. 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 $34 million to $40 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.

As compared to previously provided 2022 corporate expense guidance, the Company is adjusting general and administrative expenses by increasing both the low and high ends of the range by $2 million related to executive incentive compensation, based on operational and shareholder return performance through June 30, 2022. 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.

Second 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, August 5, 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 p.m. Eastern Time on August 5, 2022, through 11:59 p.m. Eastern Time on August 26, 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 13730500. 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.

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)

 

 

 

June 30,

 

December 31,

 

 

2022

 

2021

 

 

(unaudited)

 

 

Assets

 

 

 

 

Investment in real estate, net of accumulated depreciation and amortization of

$1,401,817 and $1,311,262, respectively

 

$4,603,244

 

$4,677,185

Cash and cash equivalents

 

1,598

 

3,282

Restricted cash-furniture, fixtures and other escrows

 

45,650

 

36,667

Due from third party managers, net

 

66,429

 

40,052

Other assets, net

 

59,931

 

33,341

Total Assets

 

$4,776,852

 

$4,790,527

 

 

Liabilities

 

 

 

 

Debt, net

 

$1,372,638

 

$1,438,758

Finance lease liabilities

 

111,920

 

111,776

Accounts payable and other liabilities

 

70,668

 

92,672

Total Liabilities

 

1,555,226

 

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

228,886,273 and 228,255,642 shares, respectively

 

4,579,590

 

4,569,352

Accumulated other comprehensive income (loss)

 

22,330

 

(15,508)

Distributions greater than net income

 

(1,380,294)

 

(1,406,523)

Total Shareholders' Equity

 

3,221,626

 

3,147,321

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$4,776,852

 

$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 June 30, 2022.

 

 

Apple Hospitality REIT, Inc.

Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2022

 

2021

 

2022

 

2021

Revenues:

 

 

 

 

 

 

 

 

Room

 

$312,370

 

$231,166

 

$550,346

 

$379,647

Food and beverage

 

12,019

 

5,088

 

20,483

 

7,871

Other

 

13,279

 

11,150

 

27,317

 

18,599

Total revenue

 

337,668

 

247,404

 

598,146

 

406,117

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Hotel operating expense:

 

 

 

 

 

 

 

 

Operating

 

76,064

 

53,186

 

140,395

 

91,336

Hotel administrative

 

27,353

 

21,538

 

51,195

 

39,282

Sales and marketing

 

27,492

 

20,380

 

49,961

 

35,268

Utilities

 

10,553

 

9,352

 

20,843

 

19,912

Repair and maintenance

 

14,808

 

11,886

 

27,836

 

22,111

Franchise fees

 

14,800

 

10,865

 

26,066

 

17,784

Management fees

 

11,445

 

8,203

 

20,221

 

13,457

Total hotel operating expense

 

182,515

 

135,410

 

336,517

 

239,150

Property taxes, insurance and other

 

18,779

 

17,321

 

37,458

 

37,009

General and administrative

 

10,307

 

8,435

 

19,945

 

16,554

Loss on impairment of depreciable real estate assets

 

-

 

-

 

-

 

10,754

Depreciation and amortization

 

45,322

 

46,386

 

90,646

 

95,096

Total expense

 

256,923

 

207,552

 

484,566

 

398,563

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of real estate

 

-

 

(864)

 

-

 

3,620

 

 

 

 

 

 

 

 

 

Operating income

 

80,745

 

38,988

 

113,580

 

11,174

 

 

 

 

 

 

 

 

 

Interest and other expense, net

 

(15,198)

 

(18,618)

 

(29,852)

 

(37,131)

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

65,547

 

20,370

 

83,728

 

(25,957)

 

 

 

 

 

 

 

 

 

Income tax expense

 

(202)

 

(87)

 

(381)

 

(195)

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$65,345

 

$20,283

 

$83,347

 

$(26,152)

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Interest rate derivatives

 

10,619

 

(1,356)

 

37,838

 

14,726

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

$75,964

 

$18,927

 

$121,185

 

$(11,426)

 

 

 

 

 

 

 

 

 

Basic and diluted net income (loss) per common share

 

$0.29

 

$0.09

 

$0.36

 

$(0.12)

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

228,998

 

224,772

 

228,992

 

224,255

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 June 30, 2022.

 

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics and Statistical Data

(Unaudited)

(in thousands, except statistical data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

 

 

 

 

% Change

 

% Change

 

 

 

 

 

% Change

 

% Change

 

 

2022

 

2021

 

2021

 

2019

 

2022

 

2021

 

2021

 

2019

Total revenue

 

$337,672

 

 

$242,644

 

 

39.2

%

 

3.3

%

 

$598,153

 

 

$395,090

 

 

51.4

%

 

(1.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

201,163

 

 

149,052

 

 

35.0

%

 

3.0

%

 

373,735

 

 

267,660

 

 

39.6

%

 

(0.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA

 

$136,509

 

 

$93,592

 

 

45.9

%

 

3.6

%

 

$224,418

 

 

$127,430

 

 

76.1

%

 

(4.0

%)

Adjusted Hotel EBITDA Margin %

 

40.4

%

 

38.6

%

 

180 bps

 

10 bps

 

37.5

%

 

32.3

%

 

520 bps

 

(90 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Comparable Hotels)

 

$153.35

 

 

$122.69

 

 

25.0

%

 

5.7

%

 

$145.84

 

 

$112.79

 

 

29.3

%

 

2.2

%

Occupancy (Comparable Hotels)

 

77.9

%

 

70.7

%

 

10.2

%

 

(4.5

%)

 

72.5

%

 

63.1

%

 

14.9

%

 

(6.7

%)

RevPAR (Comparable Hotels)

 

$119.41

 

 

$86.71

 

 

37.7

%

 

0.8

%

 

$105.77

 

 

$71.14

 

 

48.7

%

 

(4.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$153.35

 

 

$120.56

 

 

27.2

%

 

8.3

%

 

$145.84

 

 

$111.19

 

 

31.2

%

 

4.9

%

Occupancy (Actual)

 

77.9

%

 

70.7

%

 

10.2

%

 

(4.3

%)

 

72.5

%

 

63.2

%

 

14.7

%

 

(6.6

%)

RevPAR (Actual)

 

$119.41

 

 

$85.28

 

 

40.0

%

 

3.6

%

 

$105.77

 

 

$70.23

 

 

50.6

%

 

(2.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Actual Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (Actual)

 

$337,668

 

 

$247,404

 

 

 

 

 

 

$598,146

 

 

$406,117

 

 

 

 

 

Revenue from acquisitions prior to ownership

 

-

 

 

10,350

 

 

 

 

 

 

-

 

 

15,483

 

 

 

 

 

Revenue from dispositions

 

4

 

 

(15,110

)

 

 

 

 

 

7

 

 

(26,510

)

 

 

 

 

Comparable Hotels Total Revenue

 

$337,672

 

 

$242,644

 

 

 

 

 

 

$598,153

 

 

$395,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

 

$136,515

 

 

$94,814

 

 

 

 

 

 

$224,451

 

 

$130,241

 

 

 

 

 

AHEBITDA from acquisitions prior to ownership

 

-

 

 

3,917

 

 

 

 

 

 

-

 

 

4,624

 

 

 

 

 

AHEBITDA from dispositions

 

(6

)

 

(5,139

)

 

 

 

 

 

(33

)

 

(7,435

)

 

 

 

 

Comparable Hotels AHEBITDA

 

$136,509

 

 

$93,592

 

 

 

 

 

 

$224,418

 

 

$127,430

 

 

 

 

 

Note: Comparable Hotels is defined as the 219 hotels owned by the Company as of June 30, 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

 

Q2

Total revenue

 

$282,224

 

 

$327,033

 

 

$321,161

 

 

$278,005

 

 

$152,446

 

 

$242,644

 

 

$284,613

 

 

$253,225

 

 

$260,481

 

 

$337,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

180,155

 

 

195,324

 

 

197,051

 

 

183,205

 

 

118,608

 

 

149,052

 

 

175,742

 

 

167,844

 

 

172,572

 

 

201,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA

 

$102,069

 

 

$131,709

 

 

$124,110

 

 

$94,800

 

 

$33,838

 

 

$93,592

 

 

$108,871

 

 

$85,381

 

 

$87,909

 

 

$136,509

 

Adjusted Hotel EBITDA Margin %

 

36.2

%

 

40.3

%

 

38.6

%

 

34.1

%

 

22.2

%

 

38.6

%

 

38.3

%

 

33.7

%

 

33.7

%

 

40.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Comparable Hotels)

 

$139.83

 

 

$145.14

 

 

$143.87

 

 

$134.61

 

 

$99.98

 

 

$122.69

 

 

$141.86

 

 

$131.19

 

 

$137.03

 

 

$153.35

 

Occupancy (Comparable Hotels)

 

73.8

%

 

81.6

%

 

80.1

%

 

73.2

%

 

55.4

%

 

70.7

%

 

71.4

%

 

67.4

%

 

67.1

%

 

77.9

%

RevPAR (Comparable Hotels)

 

$103.26

 

 

$118.41

 

 

$115.28

 

 

$98.47

 

 

$55.34

 

 

$86.71

 

 

$101.36

 

 

$88.45

 

 

$91.98

 

 

$119.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$136.36

 

 

$141.60

 

 

$139.21

 

 

$131.41

 

 

$99.19

 

 

$120.56

 

 

$140.02

 

 

$131.04

 

 

$137.03

 

 

$153.35

 

Occupancy (Actual)

 

73.9

%

 

81.4

%

 

79.9

%

 

72.9

%

 

55.5

%

 

70.7

%

 

71.5

%

 

67.5

%

 

67.1

%

 

77.9

%

RevPAR (Actual)

 

$100.71

 

 

$115.30

 

 

$111.17

 

 

$95.85

 

 

$55.09

 

 

$85.28

 

 

$100.14

 

 

$88.43

 

 

$91.98

 

 

$119.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

$337,668

 

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

 

 

4

 

Comparable Hotels Total Revenue

 

$282,224

 

 

$327,033

 

 

$321,161

 

 

$278,005

 

 

$152,446

 

 

$242,644

 

 

$284,613

 

 

$253,225

 

 

$260,481

 

 

$337,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

 

$108,804

 

 

$134,759

 

 

$124,596

 

 

$96,836

 

 

$35,427

 

 

$94,814

 

 

$105,423

 

 

$84,609

 

 

$87,936

 

 

$136,515

 

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

)

 

(6

)

Comparable Hotels AHEBITDA

 

$102,069

 

 

$131,709

 

 

$124,110

 

 

$94,800

 

 

$33,838

 

 

$93,592

 

 

$108,871

 

 

$85,381

 

 

$87,909

 

 

$136,509

 

Note: Comparable Hotels is defined as the 219 hotels owned by the Company as of June 30, 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

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

 

 

 

 

% Change

 

% Change

 

 

 

 

 

% Change

 

% Change

 

 

2022

 

2021

 

2021

 

2019

 

2022

 

2021

 

2021

 

2019

Total revenue

 

$309,822

 

 

$226,003

 

 

37.1

%

 

(0.1

%)

 

$549,876

 

 

$369,413

 

 

48.9

%

 

(5.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

185,120

 

 

137,608

 

 

34.5

%

 

(0.7

%)

 

343,889

 

 

248,195

 

 

38.6

%

 

(4.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA

 

$124,702

 

 

$88,395

 

 

41.1

%

 

0.8

%

 

$205,987

 

 

$121,218

 

 

69.9

%

 

(6.7

%)

Adjusted Hotel EBITDA Margin %

 

40.2

%

 

39.1

%

 

110 bps

 

30 bps

 

37.5

%

 

32.8

%

 

470 bps

 

(50 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Same Store Hotels)

 

$152.07

 

 

$121.99

 

 

24.7

%

 

5.3

%

 

$144.52

 

 

$112.29

 

 

28.7

%

 

1.8

%

Occupancy (Same Store Hotels)

 

78.0

%

 

71.4

%

 

9.2

%

 

(4.6

%)

 

72.8

%

 

63.7

%

 

14.3

%

 

(6.7

%)

RevPAR (Same Store Hotels)

 

$118.64

 

 

$87.07

 

 

36.3

%

 

0.5

%

 

$105.23

 

 

$71.56

 

 

47.1

%

 

(5.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$153.35

 

 

$120.56

 

 

27.2

%

 

8.3

%

 

$145.84

 

 

$111.19

 

 

31.2

%

 

4.9

%

Occupancy (Actual)

 

77.9

%

 

70.7

%

 

10.2

%

 

(4.3

%)

 

72.5

%

 

63.2

%

 

14.7

%

 

(6.6

%)

RevPAR (Actual)

 

$119.41

 

 

$85.28

 

 

40.0

%

 

3.6

%

 

$105.77

 

 

$70.23

 

 

50.6

%

 

(2.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Actual Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (Actual)

 

$337,668

 

 

$247,404

 

 

 

 

 

 

$598,146

 

 

$406,117

 

 

 

 

 

Revenue from acquisitions

 

(27,850

)

 

(6,291

)

 

 

 

 

 

(48,277

)

 

(10,194

)

 

 

 

 

Revenue from dispositions

 

4

 

 

(15,110

)

 

 

 

 

 

7

 

 

(26,510

)

 

 

 

 

Same Store Hotels Total Revenue

 

$309,822

 

 

$226,003

 

 

 

 

 

 

$549,876

 

 

$369,413

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

 

$136,515

 

 

$94,814

 

 

 

 

 

 

$224,451

 

 

$130,241

 

 

 

 

 

AHEBITDA from acquisitions

 

(11,807

)

 

(1,280

)

 

 

 

 

 

(18,431

)

 

(1,588

)

 

 

 

 

AHEBITDA from dispositions

 

(6

)

 

(5,139

)

 

 

 

 

 

(33

)

 

(7,435

)

 

 

 

 

Same Store Hotels AHEBITDA

 

$124,702

 

 

$88,395

 

 

 

 

 

 

$205,987

 

 

$121,218

 

 

 

 

 

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

 

Q2

Total revenue

 

$269,979

 

 

$310,174

 

 

$301,822

 

 

$261,702

 

 

$143,410

 

 

$226,003

 

 

$261,710

 

 

$232,909

 

 

$240,054

 

 

$309,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

172,970

 

 

186,495

 

 

187,359

 

 

173,741

 

 

110,587

 

 

137,608

 

 

161,892

 

 

154,441

 

 

158,769

 

 

185,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA

 

$97,009

 

 

$123,679

 

 

$114,463

 

 

$87,961

 

 

$32,823

 

 

$88,395

 

 

$99,818

 

 

$78,468

 

 

$81,285

 

 

$124,702

 

Adjusted Hotel EBITDA Margin %

 

35.9

%

 

39.9

%

 

37.9

%

 

33.6

%

 

22.9

%

 

39.1

%

 

38.1

%

 

33.7

%

 

33.9

%

 

40.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Same Store Hotels)

 

$139.36

 

 

$144.35

 

 

$142.25

 

 

$133.50

 

 

$99.79

 

 

$121.99

 

 

$140.04

 

 

$129.69

 

 

$135.71

 

 

$152.07

 

Occupancy (Same Store Hotels)

 

74.2

%

 

81.8

%

 

80.1

%

 

73.0

%

 

56.0

%

 

71.4

%

 

71.8

%

 

67.9

%

 

67.5

%

 

78.0

%

RevPAR (Same Store Hotels)

 

$103.36

 

 

$118.07

 

 

$113.90

 

 

$97.45

 

 

$55.88

 

 

$87.07

 

 

$100.53

 

 

$88.12

 

 

$91.67

 

 

$118.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR (Actual)

 

$136.36

 

 

$141.60

 

 

$139.21

 

 

$131.41

 

 

$99.19

 

 

$120.56

 

 

$140.02

 

 

$131.04

 

 

$137.03

 

 

$153.35

 

Occupancy (Actual)

 

73.9

%

 

81.4

%

 

79.9

%

 

72.9

%

 

55.5

%

 

70.7

%

 

71.5

%

 

67.5

%

 

67.1

%

 

77.9

%

RevPAR (Actual)

 

$100.71

 

 

$115.30

 

 

$111.17

 

 

$95.85

 

 

$55.09

 

 

$85.28

 

 

$100.14

 

 

$88.43

 

 

$91.98

 

 

$119.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

$337,668

 

Revenue from acquisitions

 

(704

)

 

(2,736

)

 

(2,829

)

 

(3,321

)

 

(3,903

)

 

(6,291

)

 

(11,582

)

 

(17,446

)

 

(20,427

)

 

(27,850

)

Revenue from dispositions

 

(33,104

)

 

(28,207

)

 

(27,071

)

 

(24,948

)

 

(11,400

)

 

(15,110

)

 

(3,872

)

 

(233

)

 

3

 

 

4

 

Same Store Hotels Total Revenue

 

$269,979

 

 

$310,174

 

 

$301,822

 

 

$261,702

 

 

$143,410

 

 

$226,003

 

 

$261,710

 

 

$232,909

 

 

$240,054

 

 

$309,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

 

$108,804

 

 

$134,759

 

 

$124,596

 

 

$96,836

 

 

$35,427

 

 

$94,814

 

 

$105,423

 

 

$84,609

 

 

$87,936

 

 

$136,515

 

AHEBITDA from acquisitions

 

(248

)

 

(981

)

 

(1,040

)

 

(996

)

 

(308

)

 

(1,280

)

 

(4,304

)

 

(5,924

)

 

(6,624

)

 

(11,807

)

AHEBITDA from dispositions

 

(11,547

)

 

(10,099

)

 

(9,093

)

 

(7,879

)

 

(2,296

)

 

(5,139

)

 

(1,301

)

 

(217

)

 

(27

)

 

(6

)

Same Store Hotels AHEBITDA

 

$97,009

 

 

$123,679

 

 

$114,463

 

 

$87,961

 

 

$32,823

 

 

$88,395

 

 

$99,818

 

 

$78,468

 

 

$81,285

 

 

$124,702

 

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

 

Q2

Net income (loss)

 

$38,151

 

$62,090

 

$46,223

 

$25,453

 

$(46,435)

 

$20,283

 

$31,759

 

$13,221

 

$18,002

 

$65,345

Depreciation and amortization

 

47,950

 

48,109

 

47,887

 

49,294

 

48,710

 

46,386

 

44,217

 

45,158

 

45,324

 

45,322

Amortization of favorable and unfavorable operating leases, net

 

31

 

31

 

31

 

31

 

98

 

98

 

98

 

99

 

99

 

103

Interest and other expense, net

 

15,494

 

15,857

 

14,759

 

15,081

 

18,513

 

18,618

 

15,977

 

14,640

 

14,654

 

15,198

Income tax expense

 

206

 

156

 

143

 

174

 

108

 

87

 

114

 

159

 

179

 

202

EBITDA

 

101,832

 

126,243

 

109,043

 

90,033

 

20,994

 

85,472

 

92,165

 

73,277

 

78,258

 

126,170

(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

 

126,170

Non-cash straight-line operating ground lease expense

 

48

 

47

 

47

 

46

 

44

 

43

 

41

 

41

 

40

 

38

Adjusted EBITDAre

 

100,667

 

126,451

 

115,557

 

86,110

 

27,308

 

86,379

 

92,162

 

73,386

 

78,298

 

126,208

General and administrative expense

 

8,137

 

8,308

 

9,039

 

10,726

 

8,119

 

8,435

 

13,261

 

11,223

 

9,638

 

10,307

Adjusted Hotel EBITDA

 

$108,804

 

$134,759

 

$124,596

 

$96,836

 

$35,427

 

$94,814

 

$105,423

 

$84,609

 

$87,936

 

$136,515

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 six months ended June 30, 2022 and 2021:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

2022

 

2021

Net income (loss)

 

$65,345

 

$20,283

 

$83,347

 

$(26,152)

Depreciation of real estate owned

 

44,557

 

44,764

 

89,117

 

91,852

(Gain) loss on sale of real estate

 

-

 

864

 

-

 

(3,620)

Loss on impairment of depreciable real estate assets

 

-

 

-

 

-

 

10,754

Funds from operations

 

109,902

 

65,911

 

172,464

 

72,834

Amortization of finance ground lease assets

 

760

 

1,618

 

1,519

 

3,235

Amortization of favorable and unfavorable operating leases, net

 

103

 

98

 

202

 

196

Non-cash straight-line operating ground lease expense

 

38

 

43

 

78

 

87

Modified funds from operations

 

$110,803

 

$67,670

 

$174,263

 

$76,352

 

Apple Hospitality REIT, Inc.

Debt Summary

(Unaudited)

($ in thousands)

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 1 - December 31, 2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

 

Fair Market Value

 

Total debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maturities

 

$

102,770

 

 

$

296,214

 

 

$

338,597

 

 

$

245,140

 

 

$

74,649

 

 

$

319,616

 

 

$

1,376,986

 

 

$

1,338,908

 

Average interest rates(1)

 

 

3.6

%

 

 

3.7

%

 

 

3.8

%

 

 

3.9

%

 

 

3.9

%

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maturities

 

$

66,000

 

 

$

250,000

 

 

$

310,000

 

 

$

175,000

 

 

$

-

 

 

$

85,000

 

 

$

886,000

 

 

$

888,650

 

Average interest rates(1)

 

 

3.3

%

 

 

3.4

%

 

 

3.6

%

 

 

3.6

%

 

 

3.5

%

 

 

3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maturities

 

$

36,770

 

 

$

46,214

 

 

$

28,597

 

 

$

70,140

 

 

$

74,649

 

 

$

234,616

 

 

$

490,986

 

 

$

450,258

 

Average interest rates

 

 

4.1

%

 

 

4.1

%

 

 

4.1

%

 

 

4.0

%

 

 

4.0

%

 

 

4.1

%

 

 

 

 

 

 

 

 

(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 June 30, 2022.

 

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Market Compared to 2021

Three Months Ended June 30

(Unaudited)

 

Top 20 Markets

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Top 20 Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Diego, CA

7

 

79.5

%

69.6

%

14.2

%

 

$182.79

$134.84

35.6

%

 

$145.26

$93.80

54.9

%

 

5.4

%

Los Angeles, CA

8

 

87.3

%

86.7

%

0.7

%

 

$181.38

$138.02

31.4

%

 

$158.39

$119.61

32.4

%

 

5.1

%

Orange County, CA

6

 

79.8

%

75.1

%

6.3

%

 

$166.10

$122.64

35.4

%

 

$132.58

$92.11

43.9

%

 

3.6

%

Nashville, TN

5

 

87.8

%

71.9

%

22.1

%

 

$178.82

$127.12

40.7

%

 

$157.00

$91.41

71.8

%

 

3.6

%

Phoenix, AZ

10

 

73.5

%

65.5

%

12.2

%

 

$134.60

$102.22

31.7

%

 

$98.89

$66.95

47.7

%

 

3.5

%

Portland, ME

3

 

80.3

%

68.0

%

18.1

%

 

$207.82

$197.48

5.2

%

 

$166.88

$134.25

24.3

%

 

3.3

%

Omaha, NE

4

 

71.8

%

60.7

%

18.3

%

 

$177.69

$165.47

7.4

%

 

$127.50

$100.36

27.0

%

 

3.2

%

Seattle, WA

3

 

86.8

%

68.0

%

27.6

%

 

$187.50

$144.26

30.0

%

 

$162.80

$98.09

66.0

%

 

2.9

%

Fort Worth/Arlington, TX

6

 

79.9

%

76.2

%

4.9

%

 

$149.73

$124.79

20.0

%

 

$119.66

$95.13

25.8

%

 

2.6

%

Norfolk/Virginia Beach, VA

4

 

84.9

%

83.8

%

1.3

%

 

$185.43

$158.32

17.1

%

 

$157.42

$132.69

18.6

%

 

2.5

%

Chicago, IL

7

 

69.8

%

54.0

%

29.3

%

 

$136.42

$98.75

38.1

%

 

$95.25

$53.32

78.6

%

 

2.5

%

Austin, TX

7

 

81.4

%

75.4

%

8.0

%

 

$133.04

$98.07

35.7

%

 

$108.28

$73.96

46.4

%

 

2.4

%

Alaska

2

 

92.2

%

93.9

%

(1.8

%)

 

$234.88

$194.04

21.0

%

 

$216.50

$182.28

18.8

%

 

2.4

%

Richmond/Petersburg, VA

4

 

69.7

%

53.2

%

31.0

%

 

$177.77

$142.70

24.6

%

 

$123.83

$75.95

63.0

%

 

2.2

%

North Carolina East

4

 

77.5

%

82.2

%

(5.7

%)

 

$170.31

$157.51

8.1

%

 

$131.97

$129.50

1.9

%

 

2.2

%

Washington, DC

4

 

82.8

%

60.2

%

37.5

%

 

$140.07

$101.78

37.6

%

 

$116.00

$61.27

89.3

%

 

2.0

%

Melbourne, FL

3

 

85.7

%

79.8

%

7.4

%

 

$169.61

$142.28

19.2

%

 

$145.34

$113.48

28.1

%

 

1.9

%

Florida Panhandle

5

 

73.4

%

77.7

%

(5.5

%)

 

$155.12

$154.45

0.4

%

 

$113.80

$120.05

(5.2

%)

 

1.7

%

Oklahoma City, OK

4

 

69.5

%

67.7

%

2.7

%

 

$147.39

$128.62

14.6

%

 

$102.48

$87.03

17.8

%

 

1.6

%

Denver, CO

3

 

79.0

%

59.5

%

32.8

%

 

$152.82

$108.64

40.7

%

 

$120.71

$64.60

86.9

%

 

1.6

%

Top 20 Markets

99

 

78.7

%

70.2

%

12.1

%

 

$164.85

$131.24

25.6

%

 

$129.75

$92.10

40.9

%

 

56.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Markets

120

 

77.1

%

71.1

%

8.4

%

 

$142.15

$114.72

23.9

%

 

$109.53

$81.61

34.2

%

 

43.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

70.7

%

10.2

%

 

$153.35

$122.69

25.0

%

 

$119.41

$86.71

37.7

%

 

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 June 30

(Unaudited)

 

Top 20 Markets

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Top 20 Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Diego, CA

7

 

79.5

%

83.3

%

(4.6

%)

 

$182.79

$162.59

12.4

%

 

$145.26

$135.49

7.2

%

 

5.4

%

Los Angeles, CA

8

 

87.3

%

86.7

%

0.7

%

 

$181.38

$181.79

(0.2

%)

 

$158.39

$157.56

0.5

%

 

5.1

%

Orange County, CA

6

 

79.8

%

85.4

%

(6.6

%)

 

$166.10

$144.83

14.7

%

 

$132.58

$123.70

7.2

%

 

3.6

%

Nashville, TN

5

 

87.8

%

88.6

%

(0.9

%)

 

$178.82

$172.80

3.5

%

 

$157.00

$153.11

2.5

%

 

3.6

%

Phoenix, AZ

10

 

73.5

%

74.0

%

(0.7

%)

 

$134.60

$116.71

15.3

%

 

$98.89

$86.42

14.4

%

 

3.5

%

Portland, ME

3

 

80.3

%

77.0

%

4.3

%

 

$207.82

$173.98

19.5

%

 

$166.88

$133.96

24.6

%

 

3.3

%

Omaha, NE

4

 

71.8

%

86.1

%

(16.6

%)

 

$177.69

$152.31

16.7

%

 

$127.50

$131.15

(2.8

%)

 

3.2

%

Seattle, WA

3

 

86.8

%

88.4

%

(1.8

%)

 

$187.50

$195.34

(4.0

%)

 

$162.80

$172.62

(5.7

%)

 

2.9

%

Fort Worth/Arlington, TX

6

 

79.9

%

80.9

%

(1.2

%)

 

$149.73

$143.19

4.6

%

 

$119.66

$115.83

3.3

%

 

2.6

%

Norfolk/Virginia Beach, VA

4

 

84.9

%

87.0

%

(2.4

%)

 

$185.43

$164.09

13.0

%

 

$157.42

$142.72

10.3

%

 

2.5

%

Chicago, IL

7

 

69.8

%

80.8

%

(13.6

%)

 

$136.42

$136.27

0.1

%

 

$95.25

$110.08

(13.5

%)

 

2.5

%

Austin, TX

7

 

81.4

%

80.9

%

0.6

%

 

$133.04

$123.69

7.6

%

 

$108.28

$100.01

8.3

%

 

2.4

%

Alaska

2

 

92.2

%

90.3

%

2.1

%

 

$234.88

$221.03

6.3

%

 

$216.50

$199.51

8.5

%

 

2.4

%

Richmond/Petersburg, VA

4

 

69.7

%

76.3

%

(8.7

%)

 

$177.77

$158.82

11.9

%

 

$123.83

$121.22

2.2

%

 

2.2

%

North Carolina East

4

 

77.5

%

89.8

%

(13.7

%)

 

$170.31

$144.94

17.5

%

 

$131.97

$130.16

1.4

%

 

2.2

%

Washington, DC

4

 

82.8

%

87.7

%

(5.6

%)

 

$140.07

$148.56

(5.7

%)

 

$116.00

$130.22

(10.9

%)

 

2.0

%

Melbourne, FL

3

 

85.7

%

96.5

%

(11.2

%)

 

$169.61

$153.69

10.4

%

 

$145.34

$148.33

(2.0

%)

 

1.9

%

Florida Panhandle

5

 

73.4

%

86.1

%

(14.8

%)

 

$155.12

$164.01

(5.4

%)

 

$113.80

$141.13

(19.4

%)

 

1.7

%

Oklahoma City, OK

4

 

69.5

%

80.9

%

(14.1

%)

 

$147.39

$144.73

1.8

%

 

$102.48

$117.05

(12.4

%)

 

1.6

%

Denver, CO

3

 

79.0

%

82.6

%

(4.4

%)

 

$152.82

$159.07

(3.9

%)

 

$120.71

$131.38

(8.1

%)

 

1.6

%

Top 20 Markets

99

 

78.7

%

83.3

%

(5.5

%)

 

$164.85

$154.45

6.7

%

 

$129.75

$128.63

0.9

%

 

56.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Markets

120

 

77.1

%

80.0

%

(3.6

%)

 

$142.15

$136.21

4.4

%

 

$109.53

$108.99

0.5

%

 

43.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

81.6

%

(4.5

%)

 

$153.35

$145.14

5.7

%

 

$119.41

$118.41

0.8

%

 

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 Market Compared to 2021

Six Months Ended June 30

(Unaudited)

 

Top 20 Markets

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

Top 20 Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix, AZ

10

 

76.2

%

63.1

%

20.8

%

 

$156.10

$104.38

49.5

%

 

$118.91

$65.90

80.4

%

 

6.2

%

Los Angeles, CA

8

 

84.1

%

84.8

%

(0.8

%)

 

$176.56

$125.42

40.8

%

 

$148.42

$106.39

39.5

%

 

5.8

%

San Diego, CA

7

 

73.7

%

58.3

%

26.4

%

 

$167.15

$125.12

33.6

%

 

$123.20

$72.96

68.9

%

 

5.3

%

Orange County, CA

6

 

74.7

%

67.9

%

10.0

%

 

$156.04

$112.74

38.4

%

 

$116.62

$76.56

52.3

%

 

3.6

%

Nashville, TN

5

 

79.7

%

61.2

%

30.2

%

 

$165.03

$114.33

44.3

%

 

$131.50

$69.99

87.9

%

 

3.3

%

Fort Worth/Arlington, TX

6

 

80.6

%

74.6

%

8.0

%

 

$147.00

$113.14

29.9

%

 

$118.49

$84.36

40.5

%

 

3.2

%

Seattle, WA

3

 

74.9

%

62.6

%

19.6

%

 

$170.49

$133.63

27.6

%

 

$127.63

$83.60

52.7

%

 

2.5

%

Melbourne, FL

3

 

84.7

%

64.5

%

31.3

%

 

$172.94

$137.52

25.8

%

 

$146.43

$88.73

65.0

%

 

2.4

%

Richmond/Petersburg, VA

4

 

65.5

%

49.1

%

33.4

%

 

$176.29

$130.58

35.0

%

 

$115.54

$64.12

80.2

%

 

2.4

%

Omaha, NE

4

 

62.5

%

49.4

%

26.5

%

 

$153.25

$137.66

11.3

%

 

$95.70

$67.98

40.8

%

 

2.4

%

Austin, TX

7

 

73.8

%

63.5

%

16.2

%

 

$126.72

$92.99

36.3

%

 

$93.56

$59.03

58.5

%

 

2.3

%

North Carolina East

4

 

72.6

%

73.9

%

(1.8

%)

 

$146.19

$135.37

8.0

%

 

$106.12

$100.06

6.1

%

 

2.2

%

Portland, ME

3

 

62.4

%

52.0

%

20.0

%

 

$183.05

$169.49

8.0

%

 

$114.29

$88.15

29.7

%

 

2.2

%

Alaska

2

 

86.5

%

82.3

%

5.1

%

 

$201.51

$165.27

21.9

%

 

$174.22

$135.93

28.2

%

 

2.1

%

Miami, FL

3

 

87.5

%

80.4

%

8.8

%

 

$161.73

$119.51

35.3

%

 

$141.55

$96.12

47.3

%

 

2.0

%

Norfolk/Virginia Beach, VA

4

 

75.6

%

74.3

%

1.7

%

 

$154.42

$131.95

17.0

%

 

$116.74

$98.04

19.1

%

 

1.9

%

Florida Panhandle

5

 

69.4

%

72.1

%

(3.7

%)

 

$145.29

$134.76

7.8

%

 

$100.89

$97.23

3.8

%

 

1.8

%

Dallas, TX

5

 

66.0

%

65.3

%

1.1

%

 

$130.04

$97.82

32.9

%

 

$85.76

$63.87

34.3

%

 

1.6

%

Oklahoma City, OK

4

 

65.6

%

66.0

%

(0.6

%)

 

$140.13

$115.41

21.4

%

 

$91.94

$76.14

20.8

%

 

1.6

%

Washington, DC

4

 

72.4

%

53.7

%

34.8

%

 

$129.31

$99.71

29.7

%

 

$93.64

$53.52

75.0

%

 

1.6

%

Top 20 Markets

97

 

74.3

%

65.6

%

13.3

%

 

$157.62

$120.60

30.7

%

 

$117.18

$79.11

48.1

%

 

56.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Markets

122

 

70.9

%

60.9

%

16.4

%

 

$135.09

$105.52

28.0

%

 

$95.83

$64.25

49.2

%

 

43.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

72.5

%

63.1

%

14.9

%

 

$145.84

$112.79

29.3

%

 

$105.77

$71.14

48.7

%

 

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

Six Months Ended June 30

(Unaudited)

Top 20 Markets

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

Top 20 Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix, AZ

10

76.2

%

78.6

%

(3.1

%)

 

$156.10

$146.43

6.6

%

 

$118.91

$115.02

3.4

%

 

6.2

%

Los Angeles, CA

8

84.1

%

87.0

%

(3.3

%)

 

$176.56

$176.26

0.2

%

 

$148.42

$153.43

(3.3

%)

 

5.8

%

San Diego, CA

7

73.7

%

80.2

%

(8.1

%)

 

$167.15

$158.10

5.7

%

 

$123.20

$126.74

(2.8

%)

 

5.3

%

Orange County, CA

6

74.7

%

83.9

%

(11.0

%)

 

$156.04

$146.19

6.7

%

 

$116.62

$122.67

(4.9

%)

 

3.6

%

Nashville, TN

5

79.7

%

84.4

%

(5.6

%)

 

$165.03

$167.13

(1.3

%)

 

$131.50

$141.01

(6.7

%)

 

3.3

%

Fort Worth/Arlington, TX

6

80.6

%

80.1

%

0.6

%

 

$147.00

$144.49

1.7

%

 

$118.49

$115.80

2.3

%

 

3.2

%

Seattle, WA

3

74.9

%

82.8

%

(9.5

%)

 

$170.49

$181.64

(6.1

%)

 

$127.63

$150.32

(15.1

%)

 

2.5

%

Melbourne, FL

3

84.7

%

94.8

%

(10.7

%)

 

$172.94

$163.25

5.9

%

 

$146.43

$154.83

(5.4

%)

 

2.4

%

Richmond/Petersburg, VA

4

65.5

%

74.9

%

(12.6

%)

 

$176.29

$156.90

12.4

%

 

$115.54

$117.52

(1.7

%)

 

2.4

%

Omaha, NE

4

62.5

%

79.1

%

(21.0

%)

 

$153.25

$134.41

14.0

%

 

$95.70

$106.25

(9.9

%)

 

2.4

%

Austin, TX

7

73.8

%

75.5

%

(2.3

%)

 

$126.72

$126.20

0.4

%

 

$93.56

$95.27

(1.8

%)

 

2.3

%

North Carolina East

4

72.6

%

84.6

%

(14.2

%)

 

$146.19

$128.15

14.1

%

 

$106.12

$108.45

(2.1

%)

 

2.2

%

Portland, ME

3

62.4

%

61.8

%

1.0

%

 

$183.05

$159.90

14.5

%

 

$114.29

$98.76

15.7

%

 

2.2

%

Alaska

2

86.5

%

86.2

%

0.3

%

 

$201.51

$189.76

6.2

%

 

$174.22

$163.50

6.6

%

 

2.1

%

Miami, FL

3

87.5

%

85.0

%

2.9

%

 

$161.73

$149.24

8.4

%

 

$141.55

$126.86

11.6

%

 

2.0

%

Norfolk/Virginia Beach, VA

4

75.6

%

75.4

%

0.3

%

 

$154.42

$139.14

11.0

%

 

$116.74

$104.95

11.2

%

 

1.9

%

Florida Panhandle

5

69.4

%

82.6

%

(16.0

%)

 

$145.29

$157.44

(7.7

%)

 

$100.89

$130.04

(22.4

%)

 

1.8

%

Dallas, TX

5

66.0

%

73.3

%

(10.0

%)

 

$130.04

$128.41

1.3

%

 

$85.76

$94.17

(8.9

%)

 

1.6

%

Oklahoma City, OK

4

65.6

%

76.7

%

(14.5

%)

 

$140.13

$136.16

2.9

%

 

$91.94

$104.44

(12.0

%)

 

1.6

%

Washington, DC

4

72.4

%

78.3

%

(7.5

%)

 

$129.31

$135.12

(4.3

%)

 

$93.64

$105.75

(11.5

%)

 

1.6

%

Top 20 Markets

97

74.3

%

80.0

%

(7.1

%)

 

$157.62

$150.79

4.5

%

 

$117.18

$120.62

(2.9

%)

 

56.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Markets

122

70.9

%

75.9

%

(6.6

%)

 

$135.09

$135.40

(0.2

%)

 

$95.83

$102.70

(6.7

%)

 

43.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

72.5

%

77.7

%

(6.7

%)

 

$145.84

$142.64

2.2

%

 

$105.77

$110.90

(4.6

%)

 

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 June 30

(Unaudited)

 

Region

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

STR Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East North Central

15

 

70.1

%

55.7

%

25.9

%

 

$137.05

$103.74

32.1

%

 

$96.01

$57.77

66.2

%

 

5.0

%

East South Central

26

 

81.6

%

73.5

%

11.0

%

 

$150.83

$122.50

23.1

%

 

$123.07

$90.04

36.7

%

 

10.5

%

Middle Atlantic

12

 

78.1

%

64.0

%

22.0

%

 

$157.42

$120.46

30.7

%

 

$123.02

$77.06

59.6

%

 

5.6

%

Mountain

21

 

75.4

%

70.1

%

7.6

%

 

$137.74

$105.69

30.3

%

 

$103.92

$74.12

40.2

%

 

7.9

%

New England

6

 

80.1

%

67.7

%

18.3

%

 

$183.95

$155.10

18.6

%

 

$147.38

$104.95

40.4

%

 

4.3

%

Pacific

32

 

83.1

%

76.7

%

8.3

%

 

$182.08

$138.66

31.3

%

 

$151.27

$106.41

42.2

%

 

23.0

%

South Atlantic

54

 

79.1

%

73.6

%

7.5

%

 

$153.91

$129.20

19.1

%

 

$121.79

$95.03

28.2

%

 

24.8

%

West North Central

17

 

73.1

%

64.2

%

13.9

%

 

$146.47

$124.59

17.6

%

 

$107.04

$80.03

33.7

%

 

6.8

%

West South Central

36

 

75.5

%

72.1

%

4.7

%

 

$134.50

$108.30

24.2

%

 

$101.60

$78.10

30.1

%

 

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

70.7

%

10.2

%

 

$153.35

$122.69

25.0

%

 

$119.41

$86.71

37.7

%

 

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 June 30

(Unaudited)

 

Region

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

STR Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East North Central

15

 

70.1

%

77.8

%

(9.9

%)

 

$137.05

$132.86

3.2

%

 

$96.01

$103.39

(7.1

%)

 

5.0

%

East South Central

26

 

81.6

%

82.8

%

(1.4

%)

 

$150.83

$140.12

7.6

%

 

$123.07

$116.07

6.0

%

 

10.5

%

Middle Atlantic

12

 

78.1

%

83.5

%

(6.5

%)

 

$157.42

$168.09

(6.3

%)

 

$123.02

$140.43

(12.4

%)

 

5.6

%

Mountain

21

 

75.4

%

77.5

%

(2.7

%)

 

$137.74

$127.79

7.8

%

 

$103.92

$98.98

5.0

%

 

7.9

%

New England

6

 

80.1

%

79.3

%

1.0

%

 

$183.95

$156.87

17.3

%

 

$147.38

$124.40

18.5

%

 

4.3

%

Pacific

32

 

83.1

%

86.4

%

(3.8

%)

 

$182.08

$174.77

4.2

%

 

$151.27

$150.98

0.2

%

 

23.0

%

South Atlantic

54

 

79.1

%

82.6

%

(4.2

%)

 

$153.91

$140.98

9.2

%

 

$121.79

$116.43

4.6

%

 

24.8

%

West North Central

17

 

73.1

%

83.3

%

(12.2

%)

 

$146.47

$136.46

7.3

%

 

$107.04

$113.73

(5.9

%)

 

6.8

%

West South Central

36

 

75.5

%

77.3

%

(2.3

%)

 

$134.50

$130.33

3.2

%

 

$101.60

$100.78

0.8

%

 

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

81.6

%

(4.5

%)

 

$153.35

$145.14

5.7

%

 

$119.41

$118.41

0.8

%

 

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 Region Compared to 2021

Six Months Ended June 30

(Unaudited)

 

 

Region

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

STR Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East North Central

15

 

60.5

%

46.0

%

31.5

%

 

$126.80

$95.65

32.6

%

 

$76.74

$44.04

74.3

%

 

3.6

%

East South Central

26

 

75.8

%

64.0

%

18.4

%

 

$142.01

$114.60

23.9

%

 

$107.65

$73.37

46.7

%

 

10.4

%

Middle Atlantic

12

 

69.7

%

56.0

%

24.5

%

 

$143.42

$111.34

28.8

%

 

$99.95

$62.36

60.3

%

 

4.0

%

Mountain

21

 

75.6

%

64.0

%

18.1

%

 

$144.07

$102.63

40.4

%

 

$108.99

$65.73

65.8

%

 

11.2

%

New England

6

 

65.5

%

55.5

%

18.0

%

 

$163.74

$134.83

21.4

%

 

$107.23

$74.80

43.4

%

 

3.0

%

Pacific

32

 

77.1

%

69.7

%

10.6

%

 

$169.73

$126.78

33.9

%

 

$130.86

$88.40

48.0

%

 

22.5

%

South Atlantic

54

 

75.5

%

67.0

%

12.7

%

 

$147.84

$116.52

26.9

%

 

$111.60

$78.09

42.9

%

 

26.7

%

West North Central

17

 

65.8

%

54.1

%

21.6

%

 

$133.72

$110.88

20.6

%

 

$87.97

$59.98

46.7

%

 

5.6

%

West South Central

36

 

70.9

%

65.3

%

8.6

%

 

$130.55

$101.10

29.1

%

 

$92.57

$66.06

40.1

%

 

13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

72.5

%

63.1

%

14.9

%

 

$145.84

$112.79

29.3

%

 

$105.77

$71.14

48.7

%

 

100.0

%

Note: Region categorization based on STR designation.

 

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Region Compared to 2019

Six Months Ended June 30

(Unaudited)

 

Region

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

STR Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East North Central

15

 

60.5

%

69.9

%

(13.4

%)

 

$126.80

$126.38

0.3

%

 

$76.74

$88.37

(13.2

%)

 

3.6

%

East South Central

26

 

75.8

%

78.7

%

(3.7

%)

 

$142.01

$136.64

3.9

%

 

$107.65

$107.57

0.1

%

 

10.4

%

Middle Atlantic

12

 

69.7

%

75.9

%

(8.2

%)

 

$143.42

$157.11

(8.7

%)

 

$99.95

$119.24

(16.2

%)

 

4.0

%

Mountain

21

 

75.6

%

78.5

%

(3.7

%)

 

$144.07

$138.62

3.9

%

 

$108.99

$108.79

0.2

%

 

11.2

%

New England

6

 

65.5

%

65.8

%

(0.5

%)

 

$163.74

$147.75

10.8

%

 

$107.23

$97.17

10.4

%

 

3.0

%

Pacific

32

 

77.1

%

83.9

%

(8.1

%)

 

$169.73

$167.97

1.0

%

 

$130.86

$140.90

(7.1

%)

 

22.5

%

South Atlantic

54

 

75.5

%

79.4

%

(4.9

%)

 

$147.84

$140.84

5.0

%

 

$111.60

$111.86

(0.2

%)

 

26.7

%

West North Central

17

 

65.8

%

76.7

%

(14.2

%)

 

$133.72

$127.70

4.7

%

 

$87.97

$97.90

(10.1

%)

 

5.6

%

West South Central

36

 

70.9

%

74.5

%

(4.8

%)

 

$130.55

$130.65

(0.1

%)

 

$92.57

$97.34

(4.9

%)

 

13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

72.5

%

77.7

%

(6.7

%)

 

$145.84

$142.64

2.2

%

 

$105.77

$110.90

(4.6

%)

 

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 June 30

(Unaudited)

 

Chain Scale/Brand

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AC Hotels

1

 

87.7

%

67.3

%

30.3

%

 

$225.60

$211.21

6.8

%

 

$197.87

$142.04

39.3

%

 

1.4

%

Aloft

1

 

71.8

%

 

 

 

$200.97

 

 

 

$144.32

 

 

 

0.8

%

Courtyard

33

 

77.3

%

66.0

%

17.1

%

 

$160.90

$128.11

25.6

%

 

$124.30

$84.58

47.0

%

 

19.3

%

Hilton Garden Inn

40

 

75.2

%

64.5

%

16.6

%

 

$151.50

$119.43

26.9

%

 

$113.96

$77.08

47.8

%

 

18.5

%

Homewood Suites

30

 

85.0

%

82.7

%

2.8

%

 

$147.05

$120.12

22.4

%

 

$124.98

$99.30

25.9

%

 

12.1

%

Hyatt House

1

 

71.8

%

52.2

%

37.5

%

 

$140.24

$107.62

30.3

%

 

$100.71

$56.16

79.3

%

 

0.2

%

Hyatt Place

3

 

75.2

%

64.5

%

16.6

%

 

$143.41

$119.91

19.6

%

 

$107.80

$77.28

39.5

%

 

1.1

%

Residence Inn

29

 

83.3

%

79.0

%

5.4

%

 

$155.61

$130.50

19.2

%

 

$129.62

$103.14

25.7

%

 

14.0

%

SpringHill Suites

9

 

74.9

%

69.2

%

8.2

%

 

$138.23

$103.34

33.8

%

 

$103.58

$71.48

44.9

%

 

3.5

%

Upscale Total

147

 

79.0

%

71.1

%

11.1

%

 

$153.76

$123.58

24.4

%

 

$121.43

$87.83

38.3

%

 

70.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Midscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairfield

10

 

70.4

%

68.1

%

3.4

%

 

$128.18

$98.85

29.7

%

 

$90.23

$67.30

34.1

%

 

2.7

%

Hampton

37

 

74.8

%

67.0

%

11.6

%

 

$154.26

$122.65

25.8

%

 

$115.35

$82.17

40.4

%

 

15.3

%

Home2 Suites

10

 

85.6

%

84.4

%

1.4

%

 

$158.29

$123.22

28.5

%

 

$135.50

$104.06

30.2

%

 

5.0

%

TownePlace Suites

9

 

81.0

%

82.1

%

(1.3

%)

 

$123.91

$108.39

14.3

%

 

$100.38

$89.02

12.8

%

 

2.8

%

Upper Midscale Total

66

 

76.3

%

71.3

%

7.0

%

 

$147.72

$117.54

25.7

%

 

$112.76

$83.80

34.6

%

 

25.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Embassy Suites

2

 

88.0

%

89.0

%

(1.1

%)

 

$216.73

$185.37

16.9

%

 

$190.73

$164.93

15.6

%

 

1.8

%

Marriott

2

 

57.7

%

43.6

%

32.3

%

 

$159.09

$124.79

27.5

%

 

$91.73

$54.41

68.6

%

 

1.1

%

Upper Upscale Total

4

 

67.9

%

58.9

%

15.3

%

 

$184.33

$155.70

18.4

%

 

$125.19

$91.76

36.4

%

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

2

 

79.5

%

64.0

%

24.2

%

 

$199.50

$122.20

63.3

%

 

$158.60

$78.18

102.9

%

 

0.4

%

Independents Total

2

 

79.5

%

64.0

%

24.2

%

 

$199.50

$122.20

63.3

%

 

$158.60

$78.18

102.9

%

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

70.7

%

10.2

%

 

$153.35

$122.69

25.0

%

 

$119.41

$86.71

37.7

%

 

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 June 30

(Unaudited)

 

Chain Scale/Brand

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AC Hotels

1

 

87.7

%

69.6

%

26.0

%

 

$225.60

$176.72

27.7

%

 

$197.87

$123.08

60.8

%

 

1.4

%

Aloft

1

 

71.8

%

 

 

 

$200.97

 

 

 

$144.32

 

 

 

0.8

%

Courtyard

33

 

77.3

%

80.4

%

(3.9

%)

 

$160.90

$150.77

6.7

%

 

$124.30

$121.28

2.5

%

 

19.3

%

Hilton Garden Inn

40

 

75.2

%

81.5

%

(7.7

%)

 

$151.50

$142.48

6.3

%

 

$113.96

$116.07

(1.8

%)

 

18.5

%

Homewood Suites

30

 

85.0

%

86.4

%

(1.6

%)

 

$147.05

$142.45

3.2

%

 

$124.98

$123.02

1.6

%

 

12.1

%

Hyatt House

1

 

71.8

%

 

 

 

$140.24

 

 

 

$100.71

 

 

 

0.2

%

Hyatt Place

3

 

75.2

%

64.3

%

17.0

%

 

$143.41

$128.22

11.8

%

 

$107.80

$82.43

30.8

%

 

1.1

%

Residence Inn

29

 

83.3

%

81.9

%

1.7

%

 

$155.61

$151.32

2.8

%

 

$129.62

$123.87

4.6

%

 

14.0

%

SpringHill Suites

9

 

74.9

%

82.4

%

(9.1

%)

 

$138.23

$132.82

4.1

%

 

$103.58

$109.48

(5.4

%)

 

3.5

%

Upscale Total

147

 

79.0

%

81.9

%

(3.5

%)

 

$153.76

$145.65

5.6

%

 

$121.43

$119.28

1.8

%

 

70.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Midscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairfield

10

 

70.4

%

77.7

%

(9.4

%)

 

$128.18

$118.65

8.0

%

 

$90.23

$92.16

(2.1

%)

 

2.7

%

Hampton

37

 

74.8

%

81.0

%

(7.7

%)

 

$154.26

$143.18

7.7

%

 

$115.35

$115.94

(0.5

%)

 

15.3

%

Home2 Suites

10

 

85.6

%

85.5

%

0.1

%

 

$158.29

$142.72

10.9

%

 

$135.50

$122.07

11.0

%

 

5.0

%

TownePlace Suites

9

 

81.0

%

82.4

%

(1.7

%)

 

$123.91

$121.82

1.7

%

 

$100.38

$100.37

0.0

%

 

2.8

%

Upper Midscale Total

66

 

76.3

%

81.2

%

(6.0

%)

 

$147.72

$137.06

7.8

%

 

$112.76

$111.33

1.3

%

 

25.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Embassy Suites

2

 

88.0

%

90.8

%

(3.1

%)

 

$216.73

$195.94

10.6

%

 

$190.73

$178.00

7.2

%

 

1.8

%

Marriott

2

 

57.7

%

66.9

%

(13.8

%)

 

$159.09

$151.45

5.0

%

 

$91.73

$101.26

(9.4

%)

 

1.1

%

Upper Upscale Total

4

 

67.9

%

75.0

%

(9.5

%)

 

$184.33

$169.72

8.6

%

 

$125.19

$127.28

(1.6

%)

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

2

 

79.5

%

93.5

%

(15.0

%)

 

$199.50

$257.83

(22.6

%)

 

$158.60

$241.17

(34.2

%)

 

0.4

%

Independents Total

2

 

79.5

%

93.5

%

(15.0

%)

 

$199.50

$257.83

(22.6

%)

 

$158.60

$241.17

(34.2

%)

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

81.6

%

(4.5

%)

 

$153.35

$145.14

5.7

%

 

$119.41

$118.41

0.8

%

 

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 Chain Scale Compared to 2021

Six Months Ended June 30

(Unaudited)

 

Chain Scale/Brand

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AC Hotels

1

 

67.2

%

51.6

%

30.2

%

 

$195.21

$176.93

10.3

%

 

$131.15

$91.29

43.7

%

 

0.9

%

Aloft

1

 

52.3

%

 

 

 

$180.10

 

 

 

$94.27

 

 

 

0.4

%

Courtyard

33

 

69.9

%

57.0

%

22.6

%

 

$149.79

$114.63

30.7

%

 

$104.70

$65.36

60.2

%

 

17.6

%

Hilton Garden Inn

40

 

68.7

%

55.9

%

22.9

%

 

$143.59

$109.68

30.9

%

 

$98.60

$61.31

60.8

%

 

17.4

%

Homewood Suites

30

 

81.8

%

76.6

%

6.8

%

 

$142.56

$113.08

26.1

%

 

$116.66

$86.58

34.7

%

 

13.3

%

Hyatt House

1

 

75.4

%

51.3

%

47.0

%

 

$152.14

$107.01

42.2

%

 

$114.79

$54.91

109.1

%

 

0.4

%

Hyatt Place

3

 

74.0

%

60.8

%

21.7

%

 

$146.97

$110.88

32.5

%

 

$108.72

$67.39

61.3

%

 

1.4

%

Residence Inn

29

 

78.4

%

72.7

%

7.8

%

 

$149.97

$123.05

21.9

%

 

$117.61

$89.50

31.4

%

 

14.9

%

SpringHill Suites

9

 

69.9

%

64.5

%

8.4

%

 

$132.88

$92.58

43.5

%

 

$92.88

$59.69

55.6

%

 

3.7

%

Upscale Total

147

 

73.2

%

63.6

%

15.1

%

 

$146.18

$113.73

28.5

%

 

$106.96

$72.32

47.9

%

 

70.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Midscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairfield

10

 

67.4

%

61.3

%

10.0

%

 

$125.20

$89.02

40.6

%

 

$84.45

$54.56

54.8

%

 

3.0

%

Hampton

37

 

69.0

%

58.1

%

18.8

%

 

$147.41

$111.84

31.8

%

 

$101.75

$65.00

56.5

%

 

15.3

%

Home2 Suites

10

 

81.8

%

76.3

%

7.2

%

 

$149.04

$113.78

31.0

%

 

$121.91

$86.84

40.4

%

 

5.5

%

TownePlace Suites

9

 

80.7

%

75.7

%

6.6

%

 

$118.76

$100.85

17.8

%

 

$95.78

$76.39

25.4

%

 

3.2

%

Upper Midscale Total

66

 

71.9

%

63.1

%

13.9

%

 

$140.97

$107.41

31.2

%

 

$101.33

$67.79

49.5

%

 

27.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Embassy Suites

2

 

87.3

%

81.3

%

7.4

%

 

$199.87

$168.70

18.5

%

 

$174.57

$137.07

27.4

%

 

1.9

%

Marriott

2

 

54.1

%

38.5

%

40.5

%

 

$157.83

$118.73

32.9

%

 

$85.34

$45.67

86.9

%

 

1.2

%

Upper Upscale Total

4

 

65.3

%

52.9

%

23.4

%

 

$176.83

$144.66

22.2

%

 

$115.50

$76.56

50.9

%

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

2

 

70.8

%

59.9

%

18.2

%

 

$173.31

$118.08

46.8

%

 

$122.70

$70.69

73.6

%

 

(0.1

)%

Independents Total

2

 

70.8

%

59.9

%

18.2

%

 

$173.31

$118.08

46.8

%

 

$122.70

$70.69

73.6

%

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

72.5

%

63.1

%

14.9

%

 

$145.84

$112.79

29.3

%

 

$105.77

$71.14

48.7

%

 

100.0

%

Note: Chain scale categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale Compared to 2019

Six Months Ended June 30

(Unaudited)

 

Chain Scale/Brand

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AC Hotels

1

 

67.2

%

53.4

%

25.8

%

 

$195.21

$168.74

15.7

%

 

$131.15

$90.19

45.4

%

 

0.9

%

Aloft

1

 

52.3

%

 

 

 

$180.10

 

 

 

$94.27

 

 

 

0.4

%

Courtyard

33

 

69.9

%

75.6

%

(7.5

%)

 

$149.79

$145.24

3.1

%

 

$104.70

$109.83

(4.7

%)

 

17.6

%

Hilton Garden Inn

40

 

68.7

%

77.6

%

(11.5

%)

 

$143.59

$140.20

2.4

%

 

$98.60

$108.80

(9.4

%)

 

17.4

%

Homewood Suites

30

 

81.8

%

83.2

%

(1.7

%)

 

$142.56

$144.28

(1.2

%)

 

$116.66

$120.11

(2.9

%)

 

13.3

%

Hyatt House

1

 

75.4

%

 

 

 

$152.14

 

 

 

$114.79

 

 

 

0.4

%

Hyatt Place

3

 

74.0

%

61.7

%

19.9

%

 

$146.97

$124.62

17.9

%

 

$108.72

$76.89

41.4

%

 

1.4

%

Residence Inn

29

 

78.4

%

78.7

%

(0.4

%)

 

$149.97

$149.25

0.5

%

 

$117.61

$117.43

0.2

%

 

14.9

%

SpringHill Suites

9

 

69.9

%

78.0

%

(10.4

%)

 

$132.88

$129.69

2.5

%

 

$92.88

$101.19

(8.2

%)

 

3.7

%

Upscale Total

147

 

73.2

%

77.9

%

(6.0

%)

 

$146.18

$143.26

2.0

%

 

$106.96

$111.64

(4.2

%)

 

70.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Midscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairfield

10

 

67.4

%

75.1

%

(10.3

%)

 

$125.20

$120.84

3.6

%

 

$84.45

$90.75

(6.9

%)

 

3.0

%

Hampton

37

 

69.0

%

76.5

%

(9.8

%)

 

$147.41

$141.58

4.1

%

 

$101.75

$108.28

(6.0

%)

 

15.3

%

Home2 Suites

10

 

81.8

%

83.8

%

(2.4

%)

 

$149.04

$139.69

6.7

%

 

$121.91

$117.03

4.2

%

 

5.5

%

TownePlace Suites

9

 

80.7

%

78.2

%

3.2

%

 

$118.76

$118.84

(0.1

%)

 

$95.78

$92.94

3.1

%

 

3.2

%

Upper Midscale Total

66

 

71.9

%

77.4

%

(7.1

%)

 

$140.97

$135.58

4.0

%

 

$101.33

$104.90

(3.4

%)

 

27.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upper Upscale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Embassy Suites

2

 

87.3

%

88.8

%

(1.7

%)

 

$199.87

$188.02

6.3

%

 

$174.57

$166.97

4.6

%

 

1.9

%

Marriott

2

 

54.1

%

66.5

%

(18.6

%)

 

$157.83

$150.38

5.0

%

 

$85.34

$99.98

(14.6

%)

 

1.2

%

Upper Upscale Total

4

 

65.3

%

74.1

%

(11.9

%)

 

$176.83

$165.69

6.7

%

 

$115.50

$122.70

(5.9

%)

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independents

2

 

70.8

%

89.4

%

(20.8

%)

 

$173.31

$221.54

(21.8

%)

 

$122.70

$198.00

(38.0

%)

 

(0.1

)%

Independents Total

2

 

70.8

%

89.4

%

(20.8

%)

 

$173.31

$221.54

(21.8

%)

 

$122.70

$198.00

(38.0

%)

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

72.5

%

77.7

%

(6.7

%)

 

$145.84

$142.64

2.2

%

 

$105.77

$110.90

(4.6

%)

 

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 June 30

(Unaudited)

 

Location

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

Q2 2021

% Change

 

Q2 2022

STR Location

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airport

18

 

81.9

%

75.4

%

8.6

%

 

$137.40

$108.92

26.1

%

 

$112.51

$82.09

37.1

%

 

6.8

%

Interstate

4

 

72.8

%

65.5

%

11.1

%

 

$116.59

$102.39

13.9

%

 

$84.87

$67.09

26.5

%

 

0.9

%

Resort

11

 

77.4

%

74.0

%

4.6

%

 

$172.70

$150.12

15.0

%

 

$133.60

$111.07

20.3

%

 

6.4

%

Small Metro/Town

11

 

80.0

%

76.3

%

4.8

%

 

$123.35

$103.36

19.3

%

 

$98.63

$78.91

25.0

%

 

3.5

%

Suburban

125

 

78.6

%

73.3

%

7.2

%

 

$146.26

$118.86

23.1

%

 

$114.90

$87.09

31.9

%

 

50.3

%

Urban

50

 

75.3

%

62.6

%

20.3

%

 

$176.88

$135.60

30.4

%

 

$133.19

$84.87

56.9

%

 

32.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

70.7

%

10.2

%

 

$153.35

$122.69

25.0

%

 

$119.41

$86.71

37.7

%

 

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 June 30

(Unaudited)

 

Location

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

Q2 2019

% Change

 

Q2 2022

STR Location

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airport

18

 

81.9

%

82.8

%

(1.1

%)

 

$137.40

$131.54

4.5

%

 

$112.51

$108.98

3.2

%

 

6.8

%

Interstate

4

 

72.8

%

78.4

%

(7.1

%)

 

$116.59

$103.85

12.3

%

 

$84.87

$81.44

4.2

%

 

0.9

%

Resort

11

 

77.4

%

87.4

%

(11.4

%)

 

$172.70

$153.26

12.7

%

 

$133.60

$133.98

(0.3

%)

 

6.4

%

Small Metro/Town

11

 

80.0

%

81.5

%

(1.8

%)

 

$123.35

$116.01

6.3

%

 

$98.63

$94.50

4.4

%

 

3.5

%

Suburban

125

 

78.6

%

81.4

%

(3.4

%)

 

$146.26

$139.71

4.7

%

 

$114.90

$113.77

1.0

%

 

50.3

%

Urban

50

 

75.3

%

80.7

%

(6.7

%)

 

$176.88

$166.63

6.2

%

 

$133.19

$134.48

(1.0

%)

 

32.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

77.9

%

81.6

%

(4.5

%)

 

$153.35

$145.14

5.7

%

 

$119.41

$118.41

0.8

%

 

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.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location Compared to 2021

Six Months Ended June 30

(Unaudited)

 

Location

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

YTD 2021

% Change

 

YTD 2022

STR Location

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airport

18

 

78.8

%

69.6

%

13.2

%

 

$135.56

$102.41

32.4

%

 

$106.85

$71.28

49.9

%

 

7.7

%

Interstate

4

 

65.9

%

57.5

%

14.6

%

 

$115.35

$99.46

16.0

%

 

$76.04

$57.23

32.9

%

 

0.9

%

Resort

11

 

74.4

%

63.4

%

17.4

%

 

$167.70

$133.92

25.2

%

 

$124.71

$84.86

47.0

%

 

7.1

%

Small Metro/Town

11

 

77.5

%

69.5

%

11.5

%

 

$128.15

$101.38

26.4

%

 

$99.28

$70.51

40.8

%

 

4.5

%

Suburban

125

 

73.2

%

65.2

%

12.3

%

 

$139.02

$110.05

26.3

%

 

$101.77

$71.79

41.8

%

 

50.3

%

Urban

50

 

68.5

%

55.7

%

23.0

%

 

$164.35

$121.75

35.0

%

 

$112.50

$67.87

65.8

%

 

29.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

72.5

%

63.1

%

14.9

%

 

$145.84

$112.79

29.3

%

 

$105.77

$71.14

48.7

%

 

100.0

%

Note: Location categorization based on STR designation.

 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location Compared to 2019

Six Months Ended June 30

(Unaudited)

 

Location

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Adjusted Hotel EBITDA

 

# of Hotels

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

YTD 2019

% Change

 

YTD 2022

STR Location

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airport

18

 

78.8

%

81.0

%

(2.7

%)

 

$135.56

$131.74

2.9

%

 

$106.85

$106.72

0.1

%

 

7.7

%

Interstate

4

 

65.9

%

72.8

%

(9.5

%)

 

$115.35

$103.08

11.9

%

 

$76.04

$75.01

1.4

%

 

0.9

%

Resort

11

 

74.4

%

83.4

%

(10.8

%)

 

$167.70

$154.47

8.6

%

 

$124.71

$128.81

(3.2

%)

 

7.1

%

Small Metro/Town

11

 

77.5

%

80.8

%

(4.1

%)

 

$128.15

$125.28

2.3

%

 

$99.28

$101.25

(1.9

%)

 

4.5

%

Suburban

125

 

73.2

%

77.4

%

(5.4

%)

 

$139.02

$137.78

0.9

%

 

$101.77

$106.63

(4.6

%)

 

50.3

%

Urban

50

 

68.5

%

76.3

%

(10.2

%)

 

$164.35

$159.41

3.1

%

 

$112.50

$121.69

(7.6

%)

 

29.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

219

 

72.5

%

77.7

%

(6.7

%)

 

$145.84

$142.64

2.2

%

 

$105.77

$110.90

(4.6

%)

 

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.

Apple Hospitality REIT, Inc. Kelly Clarke, Vice President, Investor Relations 804-727-6321 kclarke@applereit.com

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