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Sep 30, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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