Apple Hospitality Q4 2022 Earnings Report
Key Takeaways
Apple Hospitality REIT reported its Q4 2022 earnings, with RevPAR growth of approximately 7% compared to Q4 2019, driven by meaningful improvement in rate. The Company acquired two hotels for a total combined purchase price of $85 million. The Company's total debt to total capitalization, net of cash and cash equivalents, was approximately 28%.
Achieved RevPAR growth of approximately 7% as compared to the fourth quarter 2019.
ADR for the fourth quarter 2022 was $147, approximately 12% ahead of fourth quarter 2019 ADR.
Acquired the AC Hotel by Marriott Louisville Downtown and the AC Hotel by Marriott Pittsburgh Downtown for a total combined purchase price of $85 million.
Total debt to total capitalization, net of cash and cash equivalents, was approximately 28%.
Apple Hospitality
Apple Hospitality
Forward Guidance
The Company is providing its operational and financial outlook for 2023, with Comparable Hotels RevPAR Change between 3.0% and 7.0%.
Positive Outlook
- Results for the first quarter 2023 are expected to benefit significantly from the easier comparison to the first quarter 2022 when the Omicron variant negatively impacted lodging demand.
- The high end of the full year range reflects relatively steady macroeconomic conditions throughout 2023.
- Continued strength in leisure demand.
- Improvement in business transient.
- Net income between $165 Million and $209 Million
Challenges Ahead
- Meaningful macroeconomic uncertainty.
- Short-term booking windows for the Company's portfolio of rooms-focused hotels.
- The low end of the range reflects a softening of the economy beginning in the second quarter with Comparable Hotels RevPAR Change roughly flat compared to 2022 in the second half of the year.
- Capital expenditures between $70 Million and $80 Million
- Adjusted EBITDAre between $420 Million and $457 Million