Apple Hospitality REIT reports Q2 EPS 27c vs. 31c last year

Reports MFFO per share 47c vs. 50c last year. For the second quarter 2025, the Company achieved Comparable Hotels ADR of approximately $164, down 0.1% as compared to the second quarter 2024; Comparable Hotels Occupancy of approximately 79%, down 1.6% as compared to the second quarter 2024; and Comparable Hotels RevPAR of approximately $129, down 1.7% as compared to the second quarter 2024. Comparable Hotels ADR, Occupancy and RevPAR exceeded industry averages as reported by STR for the second quarter 2025. Based on preliminary results for July 2025, Comparable Hotels RevPAR was up approximately 1% as compared to July 2024. Justin Knight, Chief Executive Officer of Apple Hospitality, commented, “Fundamentals for our portfolio improved sequentially as we moved through the second quarter, with Comparable Hotels RevPAR declines moderating each month, and preliminary results for the month of July show Comparable Hotels RevPAR growth of approximately 1% year over year. As anticipated, April was the most challenging month during the quarter, as heightened economic uncertainty, a pullback in government travel, the shift in timing of the Easter holiday and the elongated spring break period all weighed on overall performance. Second quarter 2025 Comparable Hotels RevPAR declined 1.7% as compared to the second quarter 2024, driven primarily by a decline in occupancy, which was 79%, down 1.6% as compared to the second quarter 2024. During the quarter, we worked with our management companies to further optimize the mix of business at our hotels and were able to strengthen market share broadly across our portfolio as well as our position in markets more heavily impacted by demand shifts related to government travel. Our teams have demonstrated an exceptional ability to swiftly adapt to changing demand trends within our markets, in many cases layering on additional group business at attractive rates. The hotels we own operate efficiently, produce strong cash flow, provide our guests with a compelling value proposition, and appeal to a broad set of business and leisure customers. We are confident we remain well positioned for outperformance. Over our 25-year history in the lodging industry, we have demonstrated our ability to transact opportunistically as market conditions change. With a disciplined approach to capital allocation and portfolio management, we continuously seek opportunities to refine and enhance our existing portfolio, drive earnings per share and maximize long-term value for our shareholders. We currently have three hotels under contract for sale, our full-service Marriott in Houston and our Hampton Inn & Suites and Homewood Suites in Clovis, California, for a combined total sales price of approximately $36 million. As we previously reported, we acquired the Homewood Suites Tampa-Brandon during the quarter, a unique opportunity for us at an attractive price with a strong double-digit going-in-yield on in-place cash flow and additional upside potential through operational synergies and our planned renovation. Additionally, during the quarter, we purchased 1.4 million of our common shares, bringing the total shares purchased year-to-date through June to 3.4 million common shares for approximately $43 million. Since May 2024, we have invested nearly $78 million in the repurchase of our shares. While our long-term goal is to grow our portfolio, when our stock trades at an implied discount to values we can achieve in private market transactions, as it has for the past several months, we intend to opportunistically sell assets and redeploy proceeds primarily into additional share repurchases, preserving our balance sheet so that at the appropriate time in the cycle we can act quickly on attractive acquisition opportunities. Our portfolio of high-quality, select-service hotels, ideally located and broadly diversified across markets and demand generators, combined with the strength and flexibility of our balance sheet, differentiates us. We remain confident in the long-term outlook for the hospitality industry, the strength of our portfolio specifically, and our ability to maximize total shareholder returns over the long term.”