Apple Hospitality

May 18, 2020

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Mar 31, 2020

Apple Hospitality Q1 2020 Earnings Report

Apple Hospitality's Q1 2020 results were impacted by the COVID-19 pandemic, with significant declines in revenue and occupancy.

Key Takeaways

Apple Hospitality REIT reported a decline in revenue and operating results for the first quarter of 2020 due to the COVID-19 pandemic. The company has taken measures to mitigate the impact, including cost reductions, enhanced sales efforts, and drawing down its revolving credit facility.

Average occupancy for comparable hotels declined from approximately 76% in February to below 20% by the end of March.

Average daily rate (ADR) declined approximately 30% for the month of April compared to April 2019.

The company has implemented cost elimination and efficiency initiatives, estimating a 65% reduction in portfolio-wide hotel operating costs in April 2020 compared to the initial forecast.

All 233 hotels were open and receiving reservations as of May 15, 2020, with operations consolidated at 38 hotels in market clusters to maximize efficiencies.