Apple Hospitality REIT (APLE) Q2 2025 earnings summary

Executive summary

• Portfolio fundamentals improved sequentially in Q2 2025, with RevPAR declines moderating each month and July showing year-over-year RevPAR growth.

• Owned 221 hotels with 29,893 guest rooms in 37 states and D.C. as of June 30, 2025, including one held for sale; portfolio focused on Marriott and Hilton brands.

• April was the most challenging month due to economic uncertainty, government travel pullback, and calendar shifts, but market share was strengthened across the portfolio.

• Group business growth largely offset softer performance in other segments, and the portfolio remains resilient with favorable supply-demand dynamics.

• Recovered possession and resumed operations of a 209-room New York property after legal resolution with a former operator.

Financial highlights

• Q2 2025 total revenue: $384.4 million (down 1.5% year-over-year); YTD: $712.1 million (down 1.0%).

• Q2 comparable hotels adjusted hotel EBITDA: $142.2 million (down 5.4% year-over-year); YTD: $248 million.

• Q2 comparable hotels RevPAR: $129 (down 1.7% year-over-year); ADR: $164 (down 0.1%); occupancy: 79% (down 1.6%).

• Q2 2025 net income: $63.6 million (down 13.9% year-over-year); YTD: $94.9 million (down 25.9%).

• Q2 comparable hotels adjusted hotel EBITDA margin: 37.4% (down 200 bps year-over-year); YTD margin: 35.1%.

Outlook and guidance

• 2025 net income expected between $161 million and $187 million.

• Comparable Hotels RevPAR change: -1.5% to +0.5%; Adjusted Hotel EBITDA margin: 33.5% to 34.5%; Adjusted EBITDAre: $428 million to $450 million.

• Guidance lowered due to booking trends; could prove conservative if macro environment improves.

• Total hotel expenses expected to rise ~3.3% (midpoint), driven by higher fixed costs and biennial brand conferences.

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