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Mar 31
Apple Hospitality Q1 2025 Earnings Report
Reported results of operations for the first quarter ended March 31, 2025
Key Takeaways
Apple Hospitality REIT reported a decline in net income and operating income for Q1 2025 compared to the previous year, though total revenue remained relatively stable. Comparable Hotels RevPAR saw a modest decline, while ADR increased slightly and Occupancy decreased. The company continued to engage in portfolio management activities, including dispositions and a pending acquisition, and repurchased shares.
Net income for Q1 2025 was $31.2 million, a 42.2% decrease from Q1 2024.
Operating income for Q1 2025 was $50.9 million, a 29.0% decrease from Q1 2024.
Comparable Hotels RevPAR for Q1 2025 was $111.36, a 0.5% decrease from Q1 2024.
The company repurchased approximately 1.9 million common shares for $26.3 million during Q1 2025.
Apple Hospitality
Apple Hospitality
Apple Hospitality Revenue by Segment
Apple Hospitality Revenue by Geographic Location
Revenue by Segment
Room Revenue
CapyFin.comFood and Beverage Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Top 30 Markets Revenue
CapyFin.comAll Other Markets Revenue
CapyFin.com Forward Guidance
For the full year 2025, the company anticipates net income between $167 million and $195 million, Comparable Hotels RevPAR Change between -1.0% and 1.0%, Comparable Hotels Adjusted Hotel EBITDA Margin % between 33.7% and 34.7%, and Adjusted EBITDAre between $433 million and $457 million. Capital expenditures are expected to be between $80 million and $90 million.
Positive Outlook
- Anticipates continued share repurchases if stock trades at a discount.
- Actively managing portfolio through dispositions and acquisitions.
- Confidence in the strength of the diversified portfolio.
- Low leverage provides financial flexibility.
- Well-positioned for any macroeconomic environment.
Challenges Ahead
- Updated 2025 outlook is lower than previously provided guidance.
- Net income guidance is decreased by $6.5 million at the midpoint.
- Comparable Hotels RevPAR Change guidance is decreased by 200 bps at the midpoint.
- Comparable Hotels Adjusted Hotel EBITDA Margin % guidance is decreased by 50 bps at the midpoint.
- Adjusted EBITDAre guidance is decreased by $14 million at the midpoint.