Apple Hospitality REIT (APLE) investor relations material

Executive summary

• Portfolio comprised 221 hotels with 29,893 rooms across 37 states and D.C. as of June 30, 2025, focused on Marriott and Hilton brands.

• Sequential improvement in portfolio fundamentals, with July showing year-over-year RevPAR growth after Q2 declines.

• April was the most challenging month due to economic uncertainty, government travel pullback, and calendar shifts.

• Group business growth offset softer segments, and the portfolio remains diversified with industry-leading margins.

• Management remains confident in long-term industry outlook and portfolio positioning.

Financial highlights

• Q2 2025 total revenue was $384.4M, down 1.5% year-over-year; six-month revenue was $712.1M, down 1.0%.

• Q2 net income was $63.6M, down 13.9% year-over-year; Q2 adjusted hotel EBITDA was $142M, down ~5%.

• Q2 comparable hotels RevPAR was $129, down 1.7% year-over-year; ADR was $164, occupancy 79%.

• Q2 comparable hotels EBITDA margin was 37.4%, down 200 bps year-over-year.

• Distributions paid were $0.24 per share for Q2 and $0.53 per share for the first half, totaling $126.7M.

Outlook and guidance

• 2025 net income guidance is $161M–$187M; comparable hotels RevPAR change expected between -1.5% and +0.5%.

• Comparable hotels adjusted hotel EBITDA margin expected between 33.5% and 34.5%; adjusted EBITDAre between $428M and $450M.

• Expense growth assumed at 3.3% (midpoint), with $2M in incremental brand conference expenses.

• Capital expenditures for 2025 projected at $80M–$90M, including renovations at about 20 properties.

• Guidance reflects a 50 bps decrease in RevPAR change and a $5.5M decrease in adjusted EBITDAre from prior guidance.