Apple Hospitality REIT (APLE) Q3 2025 earnings summary

Executive summary

• Portfolio fundamentals remained strong despite macroeconomic headwinds, with resilient leisure demand and effective cost management offsetting softness in government and business travel.

• Owned 220 hotels with 29,687 guest rooms in 37 states and D.C. as of September 30, 2025, including four hotels held for sale expected to close in Q4 2025.

• Strategic focus on maximizing profitability through market share gains, expense control, and tactical capital allocation, including asset sales and share repurchases.

• Ongoing investments in portfolio relevancy, including new developments in key markets and brand transitions to enhance operational flexibility.

• Management highlighted performance exceeding industry averages despite a challenging environment.

Financial highlights

• Q3 2025 revenue was $373.9 million, down 1.3% year-over-year; nine-month revenue was $1.09 billion, down 1.1%.

• Comparable Hotels' adjusted hotel EBITDA was $129.6 million for Q3 and $375.9 million year-to-date, down 6.8% and 6.1% respectively.

• Q3 RevPAR was $124.03 (down 1.8%), ADR $162.70 (down 0.6%), and occupancy 76.2% (down 1.2%).

• Q3 net income was $50.9 million, down 9.6% year-over-year; nine-month net income was $145.7 million, down 20.9%.

• MFFO for Q3 was $100.5 million ($0.42/share), down 6.5% per share; year-to-date MFFO was $288 million ($1.21/share), down 6%.

Outlook and guidance

• 2025 net income expected between $162 million and $175 million.

• Comparable Hotels' RevPAR change expected between -2% and -1%; adjusted hotel EBITDA margin between 33.9% and 34.5%.

• Adjusted EBITDA RE guidance set at $435–$444 million.

• Guidance reflects year-to-date performance, anticipated impact of economic uncertainty, and government shutdown.

• Capital expenditures for 2025 anticipated at $80–90 million.