Apple Hospitality REIT, Inc. Q2 FY26 Results

We are pleased to report Comparable Hotels RevPAR growth of more than 5% for the second quarter, driven by broad-based improvements in both business and leisure travel demand that extend beyond the impact of last year's headwinds. Improvement in weekday occupancy outpaced improvement in our already strong weekend occupancy, indicative of strengthening business travel and continued robust leisure demand across our portfolio. Our asset management and operating teams did an excellent job managing expenses across our efficient, rooms-focused hotels, achieving exceptional flow through of top-line improvements to deliver meaningful margin expansion and strong bottom-line growth. Demand momentum has continued into the third quarter, with preliminary reports for the month of July indicating Comparable Hotels RevPAR growth of more than 5.5% as compared to the same period last year. While FIFA World Cup 2026 events drove incremental demand and pricing power in our host markets, they were not the primary driver of our outperformance during the quarter. We are pleased with the improved performance we are seeing throughout our portfolio as consumers continue to prioritize travel and demand for our broadly diversified, rooms-focused hotels remains resilient. We successfully refinanced our primary unsecured credit facility and one of our term loans in July, further enhancing the strength and financial flexibility of our balance sheet and bolstering our already strong liquidity position. In addition to extended staggered maturities and improved pricing, the refinancing upsized our revolving credit facility and one of our term loans, ensuring we are well positioned to achieve our strategic growth and capital allocation priorities in the coming years. 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. Our outstanding results during the quarter highlight the strength of our corporate and on-site management teams and further validate our proven strategy of investing in a diversified portfolio of high-quality, rooms-focused hotels with low leverage. During the quarter, we completed the sale of our Hampton Inn & Suites Rochester-North for a gross sales price of approximately $9 million. We have a demonstrated record of transacting at optimal times in the cycle, balancing both near- and long-term investment decisions to enhance our existing portfolio, optimize our capital reinvestment program and maximize total returns for our shareholders over time. We are encouraged by the demand outlook for the remainder of the year and confident we are well positioned for the long term.