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Sep 30, 2024

Apple Hospitality Q3 2024 Earnings Report

Apple Hospitality's operating fundamentals remained strong, bolstered by recent acquisitions, continued strength in ADR, and moderating expense growth.

Key Takeaways

Apple Hospitality REIT reported strong operating performance for the third quarter ended September 30, 2024. Comparable Hotels RevPAR increased by approximately 1% compared to the third quarter of 2023. The Company strategically acquired two hotels for $196 million, sold three hotels for $41 million, and repurchased 2.4 million common shares for $35 million.

Comparable Hotels RevPAR grew by approximately 1% compared to Q3 2023.

Comparable Hotels ADR was $163, about 1% higher than Q3 2023.

The Company achieved Adjusted EBITDAre of approximately $129 million, an increase of approximately 6% compared to Q3 2023.

The Company repurchased approximately 1.4 million common shares for approximately $19.2 million during the quarter.

Total Revenue
$379M
Previous year: $358M
+5.7%
EPS
$0.45
Previous year: $0.45
+0.0%
ADR (Actual)
$163
Previous year: $159
+2.0%
Occupancy (Actual)
77%
Previous year: 77.1%
-0.1%
RevPAR (Actual)
$125
Previous year: $123
+1.8%
Gross Profit
$138M
Previous year: $133M
+3.8%
Cash and Equivalents
$6.15M
Previous year: $35.4M
-82.6%
Free Cash Flow
$114M
Previous year: $117M
-3.2%
Total Assets
$5.02B
Previous year: $4.76B
+5.4%

Apple Hospitality

Apple Hospitality

Apple Hospitality Revenue by Segment

Forward Guidance

The Company is updating its operational and financial outlook for 2024. The Company is decreasing Net Income by $1 million, decreasing Comparable Hotels RevPAR Change by 12.5 bps, increasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 20 bps, and decreasing Adjusted EBITDAre by $1.5 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income