Apple Hospitality REIT (APLE) Q4 2024 earnings summary

Executive summary

• Achieved strong operating and financial results for Q4 and full year 2024, with net income up 43.6% in Q4 and 20.6% for the year, driven by business transient and leisure demand, and muted supply growth supporting performance.

• Portfolio remained resilient despite regional wildfires, with no material hotel damage and continued operations.

• Strategic capital allocation included two hotel acquisitions for $196M, six non-core hotel sales for $63M, share repurchases, and reinvestment in the portfolio.

• Maintained a diversified portfolio of 221 hotels across 86 markets as of year-end.

Financial highlights

• Q4 comparable hotels' total revenue was $329 million (up ~4% YoY); full year $1.4 billion (up ~2.5% YoY).

• Q4 2024 net income: $29.8M ($0.12/share), up 43.6% YoY; full year net income: $214.1M ($0.89/share), up 20.6%.

• Adjusted EBITDAre for Q4 was ~$97 million (up ~7% YoY); full year $467 million (up ~7% YoY).

• Modified Funds from Operations (MFFO) for Q4 was ~$77 million (up ~6% YoY); full year $389 million (up ~6% YoY).

• Annual dividend payout totaled ~$244 million, or $1.01 per share.

Outlook and guidance

• 2025 net income expected between $173M–$202M; comparable hotels' RevPAR change 1%–3%.

• Adjusted Hotel EBITDA margin guidance: 34.2%–35.2%; Adjusted EBITDAre: $447M–$471M.

• Total hotel expenses expected to rise ~4.2% at midpoint, with fixed expenses (taxes, insurance) driving increases.

• Wage growth projected at 3.5%–4%, with further benefit from reduced contract labor.

• Capital expenditures planned at $80M–$90M for 2025.