Apple Hospitality REIT (APLE) Investor Presentation summary

Portfolio overview and investment strategy

• Owns 224 upscale, rooms-focused hotels across 87 markets in 37 states, with 30,068 guest rooms and 15 brands, primarily Hilton, Marriott, and Hyatt.

• Portfolio is 99% rooms-focused, with an average effective age of 5 years and 71% of debt fixed or hedged.

• Investment strategy centers on upscale, branded, rooms-focused hotels, broad geographic diversification, and accretive acquisitions and dispositions.

• Maintains a strong, flexible balance sheet with 30% net total debt to total capitalization and 209 hotels unencumbered.

• Focuses on efficient operations, data-driven asset management, and strategic revenue management to maximize margins.

Financial performance and operating results

• Reported $1.3 billion in revenue and $238.3 million in distributions paid for full year 2023.

• Q2 2024 Comparable Hotels RevPAR grew 2.5% year-over-year, with preliminary August 2024 results exceeding full-year guidance.

• Comparable Hotels Adjusted Hotel EBITDA margin was 39.1% in Q2 2024, with MFFO per share up 2% year-over-year.

• Outperformed MSCI US REIT Index by 21.3 percentage points and Nareit Lodging/Resorts Index by 26.9 points (2021–2023 TSR).

• Annualized distribution of $0.96 per share yields 6.6% based on August 2024 closing price.

Market positioning and growth

• Portfolio benefits from limited near-term new supply, with 55% of hotels having no new projects under construction within five miles.

• Broad geographic diversification across urban, suburban, airport, resort, and small metro locations, with 47% of EBITDA from suburban markets.

• Recent acquisitions include urban and suburban hotels in key growth markets, with 22 hotels purchased for ~$1 billion since 2020.

• Disposed of 30 hotels since January 2020 for $339 million, optimizing portfolio age and CapEx needs.

• Pipeline includes a 260-room hotel under development in Nashville, expected to open in late 2025.