Apple Hospitality REIT (APLE) Q3 2024 earnings summary

Executive summary

• Owned 224 hotels with 30,068 guest rooms in 37 states and D.C. as of September 30, 2024, including one held for sale; portfolio focused on Marriott and Hilton brands.

• Achieved stable travel trends with steady business transient improvement and strong leisure demand, resulting in approximately 1% Comparable Hotels' RevPAR growth year-over-year for Q3 2024, driven by rate increases and midweek occupancy gains offsetting slight weekend pullback.

• Q3 2024 net income was $56.3M ($0.23/share), down 3.8% year-over-year; nine-month net income rose 17.6% to $184.2M ($0.76/share).

• Portfolio optimization through acquisitions, dispositions, and share repurchases, with proceeds used to reduce debt, fund buybacks, and acquire higher-growth hotels.

• Declared and paid regular monthly distributions of $0.08 per share, with a current annualized rate of $0.96 per share.

Financial highlights

• Total revenue for Q3 2024 was $378.8 million, up 5.7% year-over-year; nine-month revenue was $1.1 billion, up 6.5%.

• Adjusted EBITDAre for Q3 was $129 million (up 6%), year-to-date $371 million (up 7%).

• Comparable Hotels RevPAR for Q3 2024 increased 0.8% to $125.30; ADR rose 1.2% to $162.66; occupancy was 77.0%.

• Comparable Hotels' adjusted hotel EBITDA margin was 36.8% for Q3 and 36.7% year-to-date, down 60 and 90 bps, respectively, but above expectations.

• Paid $58 million in distributions ($0.24/share) in Q3; annualized dividend yield ~6.5% based on recent share price.

Outlook and guidance

• 2024 full-year guidance: net income $204–221 million, Comparable Hotels' RevPAR change 0.75–2%, adjusted hotel EBITDA margin 35.3–35.9%, adjusted EBITDAre $458–469 million.

• Guidance reflects modest Q3 RevPAR growth, continued expense deceleration, positive margin impact from dispositions, and later Hotel 57 transition.

• November and December expected to show RevPAR growth based on current booking trends.

• Capital expenditures for 2024 projected at $75–$85 million, including renovations at about 20 properties.

• Current annual distribution rate is $0.96 per share, with monthly payments subject to Board approval.