Apple Hospitality Q4 2024 Earnings Report
Key Takeaways
Apple Hospitality REIT reported solid financial results for Q4 2024, with revenue reaching $333 million and net income increasing 43.6% year-over-year to $29.8 million. RevPAR rose 4.3% to $108.75, while occupancy improved to 71.4%. The company continued its disciplined approach to capital allocation, acquiring two hotels for $196.3 million and selling six non-core properties. Looking ahead, Apple Hospitality expects steady growth in 2025, supported by strong business travel demand and moderate supply growth.
Q4 revenue reached $333 million, up 6.6% year-over-year.
Net income increased 43.6% to $29.8 million, with EPS at $0.12.
RevPAR grew 4.3% to $108.75, supported by an increase in occupancy.
Apple Hospitality continued portfolio optimization, acquiring two hotels and selling six properties.
Apple Hospitality
Apple Hospitality
Forward Guidance
Apple Hospitality expects RevPAR growth of 1-3% in 2025, supported by business transient demand and portfolio optimization. Adjusted Hotel EBITDA margin is forecasted between 34.2% and 35.2%.
Positive Outlook
- Anticipated RevPAR growth of 1-3% in 2025.
- Strong occupancy trends continuing into 2025.
- Expected full-year Adjusted EBITDAre between $447M and $471M.
- Planned capital expenditures of $80M-$90M to enhance hotel properties.
- Ongoing portfolio optimization through strategic acquisitions and divestitures.
Challenges Ahead
- Potential macroeconomic headwinds impacting consumer travel demand.
- Higher interest expense from debt financing.
- Operational costs, including labor and utilities, could pressure margins.
- Seasonal weakness in Q1 due to adverse weather conditions.
- Limited visibility on new hotel supply in key markets.