Apple Hospitality REIT (APLE) Investor presentation summary

Company profile and investment strategy

• Owns 216 upscale, rooms-focused hotels across 16 brands and 37 states, with 29,459 guest rooms and broad geographic diversification.

• Maintains a strong, flexible balance sheet with 27% net total debt to total capitalization and 59% of debt effectively fixed.

• Focuses on rooms-focused hotels with industry-leading brands, broad diversification, and strategic acquisitions and dispositions.

• Efficient operating model yields higher margins and minimizes G&A load, leveraging scale and data-driven asset management.

• Portfolio is well-maintained, with an average effective age of 5 years and high guest satisfaction ratings.

Financial performance and shareholder returns

• Generated $1.4 billion in revenue in 2025, with $1.55 MFFO per share and $0.74 net income per share.

• Paid $240.4 million in distributions in 2025, with a 5.8% annual yield and monthly dividends.

• Outperformed industry indices in total shareholder return by 12.7 and 20.5 percentage points over 2021-2025.

• Maintains low leverage with a 3.2x net debt to EBITDA ratio and $700 million available on revolving credit facility.

• Executive compensation is 76% incentive-based, aligning management with shareholder interests.

Operating performance and portfolio management

• Q2 2026 saw comparable hotels RevPAR up 5.3% and EBITDA margin expansion of 120 bps.

• Sold non-core assets and reinvested $40 million in capital improvements year-to-date through June 2026.

• 55% of hotels have no new supply under construction within a five-mile radius, limiting near-term supply risk.

• Portfolio optimization through accretive acquisitions and opportunistic dispositions, lowering average asset age and increasing exposure to high-growth markets.

• 24 hotels acquired for $1.2 billion and 39 hotels sold for $399 million since the pandemic, with a 9% TTM yield after CapEx.