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Dec 31, 2024
Apple Hospitality Q4 2024 Earnings Report
Apple Hospitality REIT delivered strong performance in Q4 2024, with revenue and earnings growth driven by higher RevPAR and occupancy rates.
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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