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Sep 30
Apple Hospitality Q3 2025 Earnings Report
Apple Hospitality REIT, Inc. announced its third quarter 2025 earnings results, reporting a decrease in net income and EPS compared to the prior year, alongside a slight decline in comparable hotel performance metrics.
Key Takeaways
Apple Hospitality REIT experienced a challenging third quarter in 2025, with net income decreasing by 9.6% to $50.88 million and EPS falling by 8.7% to $0.21. Despite strong portfolio fundamentals, comparable hotels saw a slight decline in occupancy, ADR, and RevPAR, primarily due to a pullback in government travel. The company continued strategic initiatives including asset dispositions, a new acquisition, share repurchases, and significant capital improvements.
Net income for Q3 2025 decreased by 9.6% to $50.88 million, down from $56.266 million in Q3 2024.
Diluted EPS for Q3 2025 was $0.21, an 8.7% decrease compared to $0.23 in Q3 2024.
Comparable Hotels RevPAR declined by 1.8% to $124.01, with occupancy at 76.2% and ADR at $162.68.
The company maintained financial flexibility with total debt to total capitalization at 34.0% and invested $50 million in capital improvements year-to-date.
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 has updated its 2025 operational and financial outlook, reflecting year-to-date performance and potential negative impacts from economic uncertainty and government shutdowns. The company anticipates a decrease in Net Income and Comparable Hotels RevPAR Change, but an increase in Comparable Hotels Adjusted Hotel EBITDA Margin % and Adjusted EBITDAre due to strong cost control, favorable insurance renewal, and lower general and administrative expenses.
Positive Outlook
- Anticipated increase in Comparable Hotels Adjusted Hotel EBITDA Margin % by 20 bps compared to previous guidance.
- Expected increase in Adjusted EBITDAre by $0.3 million compared to previous guidance.
- Strong cost control measures implemented year-to-date are positively impacting profitability.
- More favorable general liability insurance renewal than previously assumed.
- Lower general and administrative expenses contributing to improved outlook for certain metrics.
Challenges Ahead
- Net income guidance decreased by $5.5 million compared to the midpoint of previous guidance.
- Comparable Hotels RevPAR Change guidance decreased by 100 bps compared to previous guidance.
- Ongoing uncertainty broadly impacting the operating backdrop.
- Potential negative impact of prolonged economic uncertainty on the remainder of the year.
- Potential negative impact of government shutdown on the remainder of the year.