Apple Hospitality REIT, Inc. (NYSE:APLE) Q3 2022 Earnings Conference Call November 8, 2022 10:00 AM ET Company Participants Kelly Clarke - Vice President, Investor Relations Justin Knight - Chief Executive Officer Liz Perkins - Chief Financial Officer Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Neil Malkin - Capital One Floris Van Dijkum - Compass Point Bryan Maher - B. Riley Securities Dany Asad - Bank of America Jonathan Jenkins - Oppenheimer Chris Darling - Green Street Antho ...

Apple Hospitality REIT, Inc. (NYSE:APLE) Q2 2022 Earnings Conference Call August 5, 2022 10:00 AM ET Company Participants Kelly Clarke - VP, IR Justin Knight - CEO & Director Elizabeth Perkins - SVP & CFO Conference Call Participants Neil Malkin - Capital One Securities Dori Kesten - Wells Fargo Securities Michael Bellisario - Robert W. Baird & Co. Chris Darling - Green Street Advisors Austin Wurschmidt - KeyBanc Capital Markets Anthony Powell - Barclays Bank Operator Greetings. Welcome to Apple Hospitalit ...

Apple Hospitality REIT, Inc. (NYSE:APLE) Q1 2022 Earnings Conference Call May 6, 2022 10:00 AM ET Company Participants Kelly Clarke - Vice President of Investor Relations Justin Knight - Chief Executive Officer Liz Perkins - Chief Financial Officer Conference Call Participants Neil Malkin - Capital One Securities Dori Kesten - Wells Fargo Anthony Powell - Barclays Floris Van Dijkum - Compass Point Tyler Batory - Oppenheimer Daniel Tricarico - KeyBanc Michael Bellisario - Baird Bryan Maher - B. Riley Securit ...

Financial Data and Key Metrics Changes - The company reported a significant recovery in full-year operating results, with comparable total revenue up more than 62% relative to 2020 [10] - Adjusted EBITDA for 2021 was $279 million, with modified funds from operations (MFFO) at $211 million or $0.93 per share [10][26] - For Q4 2021, adjusted hotel EBITDA was approximately $85 million, with a comparable adjusted hotel EBITDA margin of approximately 34% [25][26] Business Line Data and Key Metrics Changes - Average Daily Rate (ADR) for Q4 was over $131, nearly equal to the same period in 2019, while occupancy was 68%, down just over 5 percentage points [18] - RevPAR for Q4 was $88, down less than 8% compared to the same period in 2019 [18] - Weekend occupancy remained strong, with October and November weekend occupancies at 85% and 80% respectively, while December weekend occupancy was 67%, in line with 2019 [20] Market Data and Key Metrics Changes - Demand for suburban hotels outpaced urban hotels, with occupancy at 69% compared to 62% for comparable urban hotels [23] - 38% of hotels had RevPAR for the quarter exceeding the same period in 2019, indicating strong performance in certain markets [22] - The company noted that new supply has declined significantly, with projects under construction near all-time lows [16] Company Strategy and Development Direction - The company is focused on strategic acquisitions and dispositions to optimize its portfolio, having acquired 12 hotels for approximately $473 million and sold 24 hotels for approximately $245 million since the pandemic began [11] - The company plans to invest an additional $55 million to $65 million in capital improvements in 2022, including major renovations at 20 to 25 hotels [12] - The strategy emphasizes maintaining a diversified portfolio of high-quality, select-service hotels with low leverage [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong leisure demand and increasing business travel as COVID-19 cases decline and restrictions ease [9][15] - The company anticipates that total demand for its portfolio will exceed pre-pandemic levels as business transient travel returns [15] - Management highlighted the importance of market diversification and the benefits of operating in markets with favorable conditions for both leisure and business travel [16] Other Important Information - The company reinstated monthly dividends for shareholders, with a March payment of $0.05 per share, representing a 3.4% yield on the closing share price [15][30] - Total outstanding debt as of December 31, 2021, was $1.4 billion, with a weighted average interest rate of 3.4% [27][28] Q&A Session Summary Question: Can you discuss the transaction environment and pricing expectations? - Management noted that the transaction environment remains competitive, with pricing for most assets at or above 2019 levels, and they are focused on markets with anticipated outsized growth [34][36] Question: How is the demand from corporate accounts evolving? - Management indicated that negotiated business bookings are increasing, with improvements in both local and corporate negotiated business despite the impact of Omicron [41] Question: What factors contributed to the dividend reinstatement decision? - The decision was based on the portfolio's performance during the pandemic and confidence in the recovery, with a payout ratio of approximately 65% relative to MFFO [46] Question: What are the current trends in occupancy and ADR? - Management reported that occupancy levels have increased in February, with strong booking trends and expectations for continued rate growth in March and April [48][49] Question: How is the labor and hiring environment affecting operations? - The company is operating at approximately 70% to 75% of full-time employees relative to 2019, with plans to adjust staffing levels as occupancy grows [59][60] Question: What is the outlook for new supply and replacement costs? - Management highlighted a significant pullback in new construction starts, which is expected to create a multi-year window with below-average supply in most markets [65][66]