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Jun 30, 2023

Apple Hospitality Q2 2023 Earnings Report

Apple Hospitality reported strong operating performance driven by leisure demand and improving business travel.

Key Takeaways

Apple Hospitality REIT reported a net income of $65.3 million for the second quarter of 2023. Comparable Hotels RevPAR increased by 5% year-over-year, driven by improvements in both occupancy and ADR. The Company acquired the Courtyard Cleveland University Circle and continues to pursue strategic acquisitions to enhance shareholder value.

Comparable Hotels RevPAR increased by 5% compared to the second quarter of 2022.

Comparable Hotels ADR increased by 5% compared to the second quarter of 2022.

Comparable Hotels Occupancy increased by nearly 1% compared to the second quarter of 2022.

The Company acquired the Courtyard by Marriott Cleveland University Circle for $31 million.

Total Revenue
$362M
Previous year: $338M
+7.1%
EPS
$0.49
Previous year: $0.48
+2.1%
Average Daily Rate (ADR)
$161
Previous year: $153
+5.0%
Occupancy
78.2%
Previous year: 77.9%
+0.4%
Revenue Per Available Room
$126
Previous year: $119
+5.5%
Gross Profit
$141M
Previous year: $136M
+3.5%
Cash and Equivalents
$6.42M
Previous year: $1.6M
+301.8%
Total Assets
$4.77B
Previous year: $4.78B
-0.2%

Apple Hospitality

Apple Hospitality

Forward Guidance

The Company is updating its operational and financial outlook for 2023. The reduction in the midpoint of the Company's guidance for Net Income and Adjusted EBITDAre is primarily a result of higher anticipated general and administrative expenses associated with outperformance of the Company's relative shareholder return metrics, which are components of the Company's incentive plans.