Apple Hospitality REIT, Inc. Q3 FY25 Results

"Fundamentals for our portfolio remained strong during the third quarter despite ongoing uncertainty broadly impacting the operating backdrop. For the quarter, we achieved Comparable Hotels Occupancy of 76%, down 1.2%, ADR of $163, down only 0.6%, and RevPAR of $124, down 1.8%, as compared to the third quarter 2024. Together with our management companies, our asset and revenue management teams have done a tremendous job tactically shifting the mix of business at our hotels to strengthen market share and adjust to changing demand trends driven in large part by the pullback in government travel. The hotels we own operate efficiently, produce strong cash flow, provide our guests with a compelling value proposition and appeal to a broad set of business and leisure customers. "Despite the challenges in the current environment, we have continued to execute against strategic initiatives that maximize operating performance, capitalize on dislocations in the stock market, optimize our existing portfolio and position us for outperformance in the years ahead," said Mr. Knight. "Since the beginning of this year through October, we sold three non-core assets for $37 million, acquired the Homewood Suites Tampa-Brandon for approximately $19 million, repurchased 3.8 million of our common shares for approximately $48 million, reinvested more than $50 million in capital improvements to our portfolio and paid $202 million in distributions to our shareholders. By year end, we expect to close on the sale of four additional hotels for a combined sales price of $36 million and acquire the newly developed Motto by Hilton Downtown Nashville for $98 million. During the quarter, we entered into contracts that would add three new hotels to our portfolio in future years, including a contract for the purchase of an AC Hotel by Marriott to be developed in Anchorage, Alaska, for approximately $66 million and a contract for the development of a dual-branded property that will include an AC Hotel by Marriott and a Residence Inn by Marriott in Las Vegas, Nevada, on the land adjacent to our SpringHill Suites Las Vegas Convention Center, for approximately $144 million. These forward commitments on new development allow us to grow our future exposure to strong markets and, combined with selective hotel dispositions, help us to manage our portfolio CapEx needs in ways that drive long-term returns for our investors. Development of the AC Hotel in Anchorage, Alaska, is expected to be completed during the fourth quarter of 2027, and we anticipate development of the AC Hotel and Residence Inn in Las Vegas will be completed in the second quarter of 2028. Over our 25-year history in the lodging industry, we have demonstrated our ability to transact opportunistically as market conditions change, and we are confident our disciplined and strategic approach to capital allocation will further refine and enhance our existing portfolio, providing opportunities to drive earnings per share and maximize long-term value for our shareholders." "We remain confident in the long-term outlook for the hospitality industry, the strength of our portfolio specifically, and our ability to maximize total shareholder returns over time."