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Jun 30
Apple Hospitality Q2 2025 Earnings Report
Apple Hospitality REIT, Inc. announced its second quarter 2025 results, reporting a decrease in net income and EPS compared to the prior year, while showing sequential improvement in portfolio fundamentals.
Key Takeaways
Apple Hospitality REIT, Inc. experienced a challenging second quarter of 2025 with declines in net income, EPS, and operating income compared to the same period last year. However, the company noted sequential improvements in Comparable Hotels RevPAR throughout the quarter, with preliminary July results showing positive growth. The company continues to focus on optimizing its business mix, strengthening market share, and executing a disciplined capital allocation strategy, including opportunistic asset sales and share repurchases.
Net income for Q2 2025 decreased by 13.9% to $63.648 million, and EPS fell by 12.9% to $0.27 compared to Q2 2024.
Comparable Hotels RevPAR declined by 1.7% year-over-year, primarily due to a 1.6% decrease in occupancy, though monthly declines moderated throughout the quarter.
The company acquired one hotel for $18.8 million and has three hotels under contract for sale for a combined $36.3 million, demonstrating active portfolio management.
Apple Hospitality repurchased 1.4 million common shares for approximately $16.9 million during the quarter, as part of its strategy to enhance shareholder value when its stock trades at a discount.
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
Apple Hospitality REIT, Inc. has updated its operational and financial outlook for 2025, reflecting current booking trends and ongoing economic uncertainty. The company anticipates modest improvements in consumer sentiment and easing policy change uncertainty in the second half of the year, though current booking data for August and September shows a slight pullback.
Positive Outlook
- Preliminary results for July show Comparable Hotels RevPAR growth of approximately 1% year over year.
- The company is actively optimizing its business mix and strengthening market share across its portfolio.
- The portfolio of high-quality, select-service hotels is broadly diversified across markets and demand generators.
- The company maintains a strong and flexible balance sheet, providing financial flexibility for capital requirements and market opportunities.
- Opportunistic asset sales and share repurchases are being pursued to enhance long-term shareholder value.
Challenges Ahead
- Net income guidance for 2025 has been decreased by $6.5 million at the midpoint.
- Comparable Hotels RevPAR Change guidance has been decreased by 50 basis points.
- Comparable Hotels Adjusted Hotel EBITDA Margin % guidance has been decreased by 20 basis points.
- Adjusted EBITDAre guidance has been decreased by $5.5 million at the midpoint.
- Current booking data for August and September has pulled back slightly year-over-year, partly due to the shift of Rosh Hashanah.