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Group 1 - The investment approach has received over 500 five-star reviews, indicating high satisfaction among members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - Current economic conditions show high interest rates and a potential recession, alongside an impending AI revolution that may significantly impact the market [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, providing real-time insights into his REIT portfolio and transactions [2] - The group offers features such as multiple portfolios (core, retirement, international), buy/sell alerts, and direct access to analysts for inquiries [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment firm that consults various investment entities on REIT investing [2]

Financial Data and Key Metrics Changes - Comparable hotels total revenue was $380 million for the quarter, down slightly from the same period in 2024 [17] - Comparable hotels adjusted hotel EBITDA was $142 million for the quarter, down approximately 5% year-over-year [17] - Second quarter comparable hotels RevPAR was $129, down 1.7% compared to Q2 2024 [17] - Comparable hotels adjusted hotel EBITDA margin was 37.4% for the quarter, down 200 basis points from the same period in 2024 [25] Business Line Data and Key Metrics Changes - Group business mix improved by 150 basis points to 17%, offsetting declines in government and negotiated segments [22] - Other revenues increased by 6% on a comparable basis during the quarter, primarily driven by parking revenue [23] - Total hotel expenses increased by 2.8% for the second quarter compared to the same period last year [23] Market Data and Key Metrics Changes - RevPAR declines improved each month, with preliminary results for July showing approximately 1% growth compared to July 2024 [20] - Weekend occupancy was positive year-over-year in June, up 1.1% [21] - Market performance varied significantly, with some markets experiencing strong RevPAR gains while others faced headwinds [20] Company Strategy and Development Direction - The company continues to focus on optimizing the mix of business at hotels to strengthen market share [5] - The strategy includes maintaining a strong balance sheet and reinvesting in hotels to enhance value [14] - The company is positioned to benefit from favorable supply-demand dynamics, with nearly 60% of hotels having no new competitive products under construction nearby [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improvements in consumer sentiment and easing economic uncertainty [30] - The company anticipates a potential reacceleration in economic growth, which could positively impact performance [7] - Adjustments to full-year guidance reflect current booking trends, which may prove conservative if macroeconomic conditions improve [30] Other Important Information - The company paid distributions totaling approximately $57 million or $0.24 per common share during the second quarter [8] - The company has completed the sale of two hotels for a total of approximately $21 million and has additional sales under contract [9] - Capital expenditures for the year are expected to be between $80 million and $90 million, with major renovations planned for approximately 20 hotels [14] Q&A Session Summary Question: Guidance on RevPAR - Management indicated that if positive booking trends continue, they might have been comfortable maintaining the prior midpoint of RevPAR guidance [33] Question: Booking Strategy - Group business has been beneficial for ADR, and management plans to continue layering on group business where it makes sense [35] Question: July Performance - July showed improvement in RevPAR growth and market share, but August and September bookings are down [39] Question: Market Performance in Sunbelt Areas - Specific markets like Dallas and Phoenix faced challenges due to various factors, including convention cancellations and business pullbacks [43] Question: Confidence in 4Q RevPAR Pickup - Management expressed confidence in 4Q RevPAR growth due to positive booking positions and calendar shifts [49] Question: Capital Allocation and Dispositions - The company plans to continue pursuing dispositions to fund share repurchases while maintaining balance sheet capacity for future acquisitions [51] Question: Nashville Acquisition - The Nashville acquisition is expected to be funded primarily through balance sheet capacity and proceeds from sales [55]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 30, 2025, reflect decreased revenue and net income, with total assets slightly down and debt up [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$4.93 billion** as of June 30, 2025, while total liabilities and net debt increased Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,929,092** | **$4,969,920** | | Investment in real estate, net | $4,764,731 | $4,820,748 | | Cash and cash equivalents | $7,896 | $10,253 | | **Total Liabilities** | **$1,730,307** | **$1,704,061** | | Debt, net | $1,525,866 | $1,471,452 | | **Total Shareholders' Equity** | **$3,198,785** | **$3,265,859** | [Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2025 total revenue decreased to **$384.4 million**, with net income falling to **$63.6 million** or **$0.27 per share** Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $384,370 | $390,077 | $712,072 | $719,589 | | Operating Income | $84,851 | $93,515 | $135,710 | $165,130 | | Net Income | $63,648 | $73,931 | $94,869 | $127,981 | | Basic and Diluted EPS | $0.27 | $0.31 | $0.40 | $0.53 | [Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity decreased to **$3.20 billion** by June 30, 2025, primarily due to distributions and share repurchases - For the six months ended June 30, 2025, the company repurchased approximately **3.4 million** common shares for **$43.2 million**[15](index=15&type=chunk) - Distributions declared to shareholders totaled **$114.6 million** for the first six months of 2025, at a rate of **$0.48 per share**[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$157.9 million** for H1 2025, with significant cash used in investing and financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157,935 | $181,955 | | Net cash used in investing activities | ($39,818) | ($202,226) | | Net cash (used in) provided by financing activities | ($120,361) | $15,172 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, hotel portfolio (221 hotels), recent acquisitions/dispositions, and future commitments - As of June 30, 2025, the Company owned **221 hotels** with **29,893 guest rooms** in 37 states and D.C., including one hotel classified as held for sale[20](index=20&type=chunk) - Acquired one Homewood Suites in Tampa, Florida for a gross purchase price of approximately **$18.8 million** during the first six months of 2025[30](index=30&type=chunk) - Sold two hotels for a combined gross sales price of approximately **$21.0 million**, resulting in a gain of **$3.6 million** during the first six months of 2025[34](index=34&type=chunk) - As of June 30, 2025, the company had an outstanding contract to purchase a hotel under development in Nashville, Tennessee for an expected price of approximately **$98.2 million**[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes H1 2025 performance decline to travel disruptions and macroeconomic uncertainty, with RevPAR down and expenses up [Hotel Operations](index=30&type=section&id=Hotel%20Operations) Hotel performance declined in H1 2025, with total revenue down **1.0%** and RevPAR down **0.2%**, impacted by external factors Key Operating Metrics (Total Portfolio) | Metric | Q2 2025 | Q2 2024 | % Change | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | ADR | $163.56 | $162.98 | 0.4% | $160.11 | $158.34 | 1.1% | | Occupancy | 78.6% | 79.8% | -1.5% | 74.9% | 75.9% | -1.3% | | RevPAR | $128.59 | $130.07 | -1.1% | $119.88 | $120.18 | -0.2% | Comparable Hotels Operating Results (219 hotels) | Metric | Q2 2025 | Q2 2024 | % Change | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | RevPAR | $128.68 | $130.89 | -1.7% | $120.18 | $121.49 | -1.1% | - Management expects RevPAR for Comparable Hotels to moderately improve, but full-year 2025 RevPAR is expected to be slightly lower than 2024, assuming the current macroeconomic environment continues[99](index=99&type=chunk) [Results of Operations Analysis](index=33&type=section&id=Results%20of%20Operations%20Analysis) H1 2025 revenue declined due to external factors, while operating expenses rose from labor and utility costs, and interest expense increased - The decline in revenue for H1 2025 was primarily due to weather-related travel disruption, reduced government travel, and the additional day of revenues in 2024 from the leap year[101](index=101&type=chunk) - Hotel operating expenses increased in H1 2025 due to higher labor costs, utility costs, and general inflationary pressures[102](index=102&type=chunk) - General and administrative expenses decreased in H1 2025 primarily due to lower accruals for the executive incentive compensation plan[105](index=105&type=chunk) - Interest expense increased due to higher average borrowings on variable-rate debt and a decrease in the amount of variable-rate debt fixed by interest rate swaps[108](index=108&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Key non-GAAP metrics for H1 2025, including FFO (**$185.8 million**) and MFFO (**$187.5 million**), showed a year-over-year decrease FFO and MFFO Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $63,648 | $73,931 | $94,869 | $127,981 | | Funds from operations (FFO) | $110,910 | $120,434 | $185,755 | $202,777 | | Modified funds from operations (MFFO) | $111,803 | $121,329 | $187,542 | $204,569 | EBITDA and Adjusted Hotel EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $63,648 | $73,931 | $94,869 | $127,981 | | EBITDA | $132,975 | $141,332 | $231,877 | $259,872 | | Adjusted EBITDAre | $133,006 | $140,916 | $228,384 | $241,726 | | Adjusted Hotel EBITDA | $141,070 | $151,680 | $246,335 | $261,473 | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$1.5 billion** in debt and **$474.9 million** available on its credit facility, with recent refinancing activities - As of June 30, 2025, the company had **$1.5 billion** of total outstanding debt and unused borrowing capacity under its Revolving Credit Facility of approximately **$474.9 million**[133](index=133&type=chunk) - Subsequent to quarter end, on July 24, 2025, the company entered into a new **$385 million** term loan facility with a maturity date of July 31, 2030, using proceeds to repay a **$225 million** facility and pay down its revolver[133](index=133&type=chunk)[144](index=144&type=chunk) - The company repurchased **3.4 million** common shares for approximately **$43.2 million** in the first six months of 2025. As of June 30, 2025, **$257.6 million** remained available under the Share Repurchase Program[141](index=141&type=chunk) - The company anticipates spending approximately **$80 million to $90 million** on capital expenditures during 2025, including renovations for approximately 20 properties[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with **39%** (**$603.0 million**) of its debt at variable rates, impacting net income by **$6.0 million** per 100 bps change - The company is exposed to interest rate risk, with approximately **$603.0 million**, or **39%** of its total debt, subject to variable interest rates as of June 30, 2025 (after giving effect to interest rate swaps)[155](index=155&type=chunk) - A **100 basis point** change in interest rates is estimated to impact the company's annual net income by approximately **$6.0 million**[155](index=155&type=chunk) - The company utilizes nine interest rate swap agreements to effectively fix the interest payments on approximately **$585.0 million** of its variable-rate debt[156](index=156&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[159](index=159&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) No current or threatened litigation is expected to materially impact the company's financial position or operations - The company reports no current or threatened litigation that would have a material adverse effect on its consolidated financial position or results of operations[161](index=161&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,432,127** common shares in Q2 2025, with **$257.6 million** remaining under the repurchase program Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 493,988 | $12.18 | | May 2025 | 505,964 | $11.57 | | June 2025 | 432,175 | $11.57 | | **Total Q2** | **1,432,127** | | [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading arrangements were adopted or terminated, and new tax legislation impacts REIT dividends and TRS asset limits - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[164](index=164&type=chunk) - New tax legislation effective July 4, 2025, permanently extended the **20%** deduction for qualified REIT dividends and increased the TRS asset test limit to **25%** from **20%** for taxable years beginning after December 31, 2025[165](index=165&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including corporate governance documents and officer certifications

[Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) This section summarizes the company's financial and operational performance for Q2 2025, highlighting key profitability metrics and management's strategic commentary [Financial & Statistical Highlights](index=1&type=section&id=Financial%20%26%20Statistical%20Highlights) The company reported a decline in key profitability metrics for Q2 2025 compared to Q2 2024, with Net Income down 13.9% and Adjusted EBITDAre down 5.6%. Hotel operating metrics showed a slight decline, with Comparable Hotels RevPAR decreasing by 1.7% due to lower occupancy, though ADR remained relatively flat Q2 2025 Key Financial and Operating Metrics (YoY, in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income | $63,648 | $73,931 | (13.9%) | | Adjusted EBITDAre | $133,006 | $140,916 | (5.6%) | | MFFO per share | $0.47 | $0.50 | (6.0%) | | Comparable Hotels RevPAR | $128.68 | $130.89 | (1.7%) | | Comparable Hotels ADR | $163.62 | $163.80 | (0.1%) | | Comparable Hotels Occupancy | 78.6% | 79.9% | (1.6%) | [CEO Commentary](index=2&type=section&id=CEO%20Commentary) The CEO noted that performance improved sequentially through the quarter after a challenging April, with preliminary July results showing positive RevPAR growth. The company is adapting to demand shifts by optimizing its business mix. The capital allocation strategy focuses on opportunistically selling assets to fund share repurchases while the stock trades at a discount, preserving balance sheet flexibility for future acquisitions - Comparable Hotels RevPAR declines moderated each month during Q2, and preliminary results for July show approximately **1% year-over-year growth**[6](index=6&type=chunk) - The company is actively managing its portfolio by selling assets to redeploy proceeds into share repurchases, taking advantage of the stock trading at an implied discount to private market values[7](index=7&type=chunk) - Management expressed confidence in the long-term outlook for the hospitality industry and the company's ability to maximize shareholder returns due to its high-quality, diversified portfolio and strong balance sheet[7](index=7&type=chunk) [Detailed Quarterly Performance](index=2&type=section&id=Detailed%20Quarterly%20Performance) For Q2 2025, Comparable Hotels RevPAR decreased 1.7% YoY to approximately $129, driven by a 1.6% drop in occupancy. Performance trends improved monthly, with the RevPAR decline narrowing from -4.0% in April to -0.2% in June. Bottom-line metrics also saw declines, with Comparable Hotels Adjusted Hotel EBITDA down 5.4% and MFFO down 7.9% Comparable Hotels Monthly Performance (Q2 2025 vs Q2 2024) | Metric | April % Change | May % Change | June % Change | Q2 2025 % Change | | :--- | :--- | :--- | :--- | :--- | | ADR | (1.2%) | 0.5% | 0.3% | (0.1%) | | Occupancy | (2.9%) | (1.3%) | (0.6%) | (1.6%) | | RevPAR | (4.0%) | (0.9%) | (0.2%) | (1.7%) | - Bottom-line performance for Q2 2025 saw declines, with Comparable Hotels Adjusted Hotel EBITDA at **$142 million** (-5.4% YoY) and MFFO at **$112 million** (-7.9% YoY)[13](index=13&type=chunk) [Portfolio & Capital Management](index=4&type=section&id=Portfolio%20%26%20Capital%20Management) This section details the company's strategic activities in portfolio management, capital improvements, balance sheet health, and shareholder returns during the quarter [Portfolio Activity](index=4&type=section&id=Portfolio%20Activity) The company was active in managing its portfolio, acquiring one hotel in Tampa for $18.8 million and placing three hotels under contract for sale for a combined $36.3 million. It also has a hotel in Nashville under a potential purchase contract. Additionally, the company regained possession of its New York Property from a third-party operator in April 2025 - Acquired the 126-room Homewood Suites by Hilton Tampa-Brandon for **$18.8 million** in June 2025[14](index=14&type=chunk) - Three hotels are currently under contract for sale for a combined gross price of approximately **$36.3 million**[16](index=16&type=chunk) - On April 4, 2025, the company recovered possession of its independent boutique hotel in New York, NY from a third-party operator and reinstated operations[18](index=18&type=chunk)[20](index=20&type=chunk) [Capital Improvements](index=5&type=section&id=Capital%20Improvements) The company invested approximately $32 million in capital expenditures in the first half of 2025 and plans to invest a total of $80 million to $90 million for the full year, targeting comprehensive renovations for approximately 20 hotels - Invested approximately **$32 million** in capital expenditures during the six months ended June 30, 2025[21](index=21&type=chunk) - Anticipates investing **$80 million to $90 million** in capital improvements for the full year 2025[21](index=21&type=chunk) [Balance Sheet and Liquidity](index=5&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, the company maintained a strong balance sheet with total debt of $1.5 billion, a net debt to total capitalization ratio of approximately 36%, and $475 million available on its revolving credit facility. Subsequent to the quarter's end, the company refinanced a term loan, increasing its size to $385 million and extending the maturity to 2030 Balance Sheet & Liquidity as of June 30, 2025 (in millions/billions) | Metric | Value | | :--- | :--- | | Total Outstanding Debt | ~$1.5 Billion | | Cash on Hand | ~$8 Million | | Revolving Credit Facility Availability | ~$475 Million | | Total Debt to Total Capitalization (net) | ~36% | - In July 2025, the company entered into a new **$385 million** term loan facility maturing in 2030, using proceeds to repay a **$225 million** facility and reduce the balance on its revolving credit facility[23](index=23&type=chunk) [Capital Markets and Shareholder Returns](index=5&type=section&id=Capital%20Markets%20and%20Shareholder%20Returns) The company repurchased 1.4 million common shares for $16.9 million in Q2 2025 under its Share Repurchase Program. It paid distributions of $0.24 per share during the quarter, representing a current annualized yield of approximately 8.2%. The at-the-market (ATM) offering program remained unused - During Q2 2025, the company repurchased approximately **1.4 million common shares** for an aggregate price of **$16.9 million**[24](index=24&type=chunk) - Paid distributions totaling **$0.24 per common share** in Q2 2025. The current annualized distribution of **$0.96 per share** represents an annual yield of approximately **8.2%** as of August 4, 2025[27](index=27&type=chunk) - No shares were sold under the **$500 million** at-the-market (ATM) offering program during the first six months of 2025[26](index=26&type=chunk) [2025 Outlook](index=6&type=section&id=2025%20Outlook) This section provides the company's updated financial guidance for the full year 2025, reflecting current market conditions and booking trends [Updated 2025 Guidance](index=6&type=section&id=Updated%202025%20Guidance) Citing economic uncertainty and slightly weaker booking data for late summer, the company updated its full-year 2025 guidance. The outlook for Net Income, Comparable Hotels RevPAR Change, and Adjusted EBITDAre was revised downwards compared to the midpoint of previous guidance - The company lowered its full-year guidance to reflect current booking trends, which have pulled back slightly year-over-year for August and September, and continued economic uncertainty[28](index=28&type=chunk) Updated Full Year 2025 Guidance (in millions) | Metric | Low-End | High-End | | :--- | :--- | :--- | | Net income | $161 Million | $187 Million | | Comparable Hotels RevPAR Change | (1.5%) | 0.5% | | Comparable Hotels Adjusted Hotel EBITDA Margin % | 33.5% | 34.5% | | Adjusted EBITDAre | $428 Million | $450 Million | | Capital expenditures | $80 Million | $90 Million | [Financial Statements & Reconciliations](index=9&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents the company's consolidated financial statements, including balance sheet and statement of operations, along with reconciliations of non-GAAP financial measures [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) The Consolidated Balance Sheet as of June 30, 2025, shows total assets of $4.93 billion and total shareholders' equity of $3.20 billion. The Consolidated Statement of Operations for Q2 2025 reports total revenues of $384.4 million and net income of $63.6 million, a decrease from $73.9 million in Q2 2024 Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | | :--- | :--- | | Total Assets | $4,929,092 | | Total Liabilities | $1,730,307 | | Total Shareholders' Equity | $3,198,785 | Consolidated Statement of Operations Summary (Q2 2025, in thousands) | Account | Amount | | :--- | :--- | | Total Revenue | $384,370 | | Operating Income | $84,851 | | Net Income | $63,648 | [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) The report provides detailed reconciliations for non-GAAP measures such as Adjusted EBITDAre and MFFO to the nearest GAAP measure, Net Income. For Q2 2025, Net Income of $63.6 million reconciled to Adjusted EBITDAre of $133.0 million and MFFO of $111.8 million Reconciliation of Net Income to MFFO (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $63,648 | | Depreciation of real estate owned | $47,262 | | Funds from operations (FFO) | $110,910 | | Adjustments | $893 | | **Modified funds from operations (MFFO)** | **$111,803** | Reconciliation of Net Income to Adjusted EBITDAre (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $63,648 | | Depreciation and amortization | $48,022 | | Interest and other expense, net | $20,963 | | EBITDAre | $132,975 | | **Adjusted EBITDAre** | **$133,006** | [Debt Summary](index=18&type=section&id=Debt%20Summary) As of June 30, 2025, the company had total debt of $1.53 billion with a weighted-average interest rate of approximately 5.0%. The debt is a mix of variable-rate ($1.19 billion) and fixed-rate ($342 million) instruments with maturities spread through 2029 and beyond. A significant refinancing of a $225 million term loan occurred in July 2025, extending maturity Total Debt Maturities as of June 30, 2025 (in thousands) | Period | Maturities | | :--- | :--- | | Jul 1 - Dec 31, 2025 | $257,983 | | 2026 | $377,649 | | 2027 | $278,602 | | 2028 | $334,066 | | 2029 | $162,294 | | Thereafter | $119,654 | | **Total** | **$1,530,248** | - Subsequent to the quarter end, on July 24, 2025, the company entered a new **$385 million** term loan facility maturing in 2030, repaying its **$225 million** facility that was due in the second half of 2025[79](index=79&type=chunk) [Detailed Operating Metrics](index=19&type=section&id=Detailed%20Operating%20Metrics) This section provides a detailed breakdown of comparable hotel operating metrics, segmented by market and location type, highlighting performance variations [Comparable Hotels Metrics by Market](index=19&type=section&id=Comparable%20Hotels%20Metrics%20by%20Market) Performance varied significantly across the company's top 30 markets in Q2 2025. Markets like Pittsburgh (+19.1%), Alaska (+10.6%), and Salt Lake City (+6.8%) showed strong RevPAR growth. Conversely, markets such as Fort Worth/Arlington (-13.5%), Phoenix (-11.8%), Nashville (-10.8%), and Washington D.C. (-8.9%) experienced notable declines. The top 30 markets collectively saw a RevPAR decrease of 0.8% - Strongest performing markets in Q2 2025 by RevPAR growth included **Pittsburgh, PA (+19.1%)** and **Alaska (+10.6%)**[83](index=83&type=chunk) - Weakest performing markets in Q2 2025 by RevPAR growth included **Fort Worth/Arlington, TX (-13.5%)**, **Phoenix, AZ (-11.8%)**, and **Washington, DC (-8.9%)**[83](index=83&type=chunk) [Comparable Hotels Metrics by Location](index=21&type=section&id=Comparable%20Hotels%20Metrics%20by%20Location) In Q2 2025, performance by location type was mixed. Suburban and Urban locations, which constitute over 82% of the portfolio's Adjusted Hotel EBITDA, saw RevPAR declines of 2.3% and 1.4%, respectively. Small Metro/Town locations were the only category to post positive RevPAR growth at 2.6% Q2 2025 RevPAR Performance by Location Type (YoY % Change) | Location Type | RevPAR % Change | | :--- | :--- | | Airport | (1.6%) | | Interstate | (0.2%) | | Resort | (1.0%) | | Small Metro/Town | 2.6% | | Suburban | (2.3%) | | Urban | (1.4%) | | **Total Portfolio** | **(1.7%)** |

Finally, we should also recognize that APLE has a P/CF ratio of 7.37. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. APLE's current P/CF looks attractive when compared to its industry's average P/CF of 15.28. Over the past year, APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.68. Apple Hospitality REIT (APLE) is a stock many investors are watching right now. APLE is currently s ...

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INVESTOR PRESENTATION M AY 2 0 2 5 • N Y S E : A P L E F O RWA R D -L O O K I N G S TAT E M E N T S AC HOTEL PORTLAND DOWNTOWN/WATERFRONT, ME HOMEWOOD SUITES SAN JOSE AIRPORT- SILICON VALLEY Certain statements made in this presentation are forward-looking statements. These forward-looking statements include statements regarding our intent, belief or current expectations and are based on various assumptions. These statements involve substantial risks and uncertainties. Actual results or events could differ m ...

Group 1 - Apple Hospitality REIT, Inc. (APLE) has been added to the Zacks Rank 5 (Strong Sell) List due to a 4.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Assertio Holdings, Inc. (ASRT) is also on the Zacks Rank 5 (Strong Sell) List, with a significant 50% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Boot Barn Holdings, Inc. (BOOT) has seen a 9.3% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 List [2]