Apple Hospitality REIT (APLE) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $31.2M, down 42.2% year-over-year, with EPS at $0.13, and operating income at $50.9M, down 29%.

• Owned 219 hotels with 29,558 rooms in 37 states and D.C. as of March 31, 2025, with one hotel held for sale.

• Portfolio optimization included two hotel sales for $21M, two acquisitions under contract for $117M, and 2.4M shares repurchased YTD for $32.3M.

• Recovered possession of a New York hotel after legal dispute; operations reinstated in April 2025.

• Capital allocation focused on dividends, share buybacks, and disciplined reinvestment in properties.

Financial highlights

• Q1 2025 revenue was $327.7M, down 0.5% year-over-year; adjusted hotel EBITDA was $105.3M, down 4.1%.

• Comparable Hotels: ADR $156.56 (+1.0%), occupancy 71.1% (-1.1% to -1.5%), RevPAR $111.36 (-0.5%).

• Adjusted EBITDAre for Q1 was $95.4M, down 5.4%; MFFO was $75.7M, down 9%.

• Adjusted hotel EBITDA margin was 32.3%, down 180 bps; operating margin was 15.5%, down 620 bps.

• Q1 distributions totaled $69.6M ($0.29/share), including a $0.05 special distribution.

Outlook and guidance

• 2025 net income guidance is $167M–$195M; Adjusted EBITDAre $433M–$457M.

• Comparable Hotels RevPAR change forecasted between -1% and 1%; adjusted hotel EBITDA margin between 33.7%–34.7%.

• Capital expenditures for 2025 expected at $80M–$90M, covering ~20 major renovations.

• Guidance lowered: RevPAR midpoint down 200 bps, EBITDA margin down 50 bps, adjusted EBITDAre down $14M.

• Management expects monthly cash distributions to continue at $0.08 per share, subject to Board approval.