Apple Hospitality REIT (APLE) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q4 and full year 2024, with net income up 43.6% in Q4 and 20.6% for the year, driven by resilient business and leisure demand and limited new supply.

• Portfolio benefited from recent acquisitions, disciplined capital allocation, and active management, including selective asset sales and share repurchases.

• Maintained open and operational hotels despite Southern California wildfires, with no material damage reported.

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

Financial highlights

• Comparable hotels' total revenue was $329M for Q4 (up ~4% YoY) and $1.4B for the year (up ~2.5% YoY).

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

• Q4 comparable hotels' RevPAR grew ~3% YoY to $109; full year RevPAR up 1.4% to $119.36.

• Q4 Adjusted EBITDAre rose ~7% YoY to $97M; full year Adjusted EBITDAre up ~7% to $467M.

• Modified FFO: $77M in Q4 (+6%), $389M for the year (+6%).

• Q4 Adjusted Hotel EBITDAre margin was 32.9%; full year margin 36%.

• Annual distributions totaled $244M, or $1.01 per share, representing a 6.5% yield.

Outlook and guidance

• 2025 net income expected between $173M–$202M; Adjusted EBITDAre guidance $447M–$471M.

• Comparable hotels' RevPAR growth projected at 1%–3%; Adjusted Hotel EBITDA margin expected between 34.2%–35.2%.

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

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

• Wage and benefit growth for 2025 expected at 3.5%–4%.