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Mar 31, 2023
Apple Hospitality Q1 2023 Earnings Report
Apple Hospitality Demonstrated Strong Operating Performance in Q1 2023
Key Takeaways
Apple Hospitality REIT, Inc. reported strong operating fundamentals for the first quarter ended March 31, 2023, driven by continued strength in leisure demand and increased business travel. Comparable Hotels RevPAR increased by 19%, ADR increased by 11%, and Occupancy was up by more than 7% as compared to first quarter 2022.
Comparable Hotels RevPAR was $109, a 19% increase over first quarter 2022 and a 6% increase over first quarter 2019.
Comparable Hotels ADR was $152, an 11% increase over first quarter 2022 and a 9% increase over first quarter 2019.
Comparable Hotels Occupancy was 72%, a 7% increase over first quarter 2022 and a 2% decline as compared to first quarter 2019.
The Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $107 million, a 21% improvement over first quarter 2022 and a 4% improvement over first quarter 2019.
Apple Hospitality
Apple Hospitality
Apple Hospitality Revenue by Segment
Revenue by Segment
Room Revenue
CapyFin.comFood and Beverage Revenue
CapyFin.com Forward Guidance
The Company is providing its operational and financial outlook for 2023, which is unchanged from the 2023 outlook previously provided. The high end of the full year range reflects relatively steady macroeconomic conditions throughout 2023, with continued strength in leisure demand and improvement in business transient. The low end of the range reflects a softening of the economy beginning in the second quarter with Comparable Hotels RevPAR Change roughly flat compared to 2022 in the second half of the year.
Positive Outlook
- Comparable Hotels RevPAR Change between 3.0% and 7.0%.
- Comparable Hotels Adjusted Hotel EBITDA Margin % between 35.3% and 36.9%.
- Adjusted EBITDAre between $420 Million and $457 Million.
- Capital expenditures between $70 Million and $80 Million.
- Continued strength in leisure demand.
Challenges Ahead
- Meaningful macroeconomic uncertainty.
- Short-term booking windows for the Company's portfolio of rooms-focused hotels.
- Softening of the economy beginning in the second quarter.
- Comparable Hotels RevPAR Change roughly flat compared to 2022 in the second half of the year.
- Unanticipated developments in its business or changes in its operating environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income