Group 1 - The U.S. tourism industry is facing challenges due to tariffs affecting trade with northern borders and other global regions [1] - Consumer sentiment in the U.S. is weaker than anticipated for 2025, influenced by economic factors [1]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Data and Key Metrics Changes - Comparable Hotels' total revenue was $365 million for the quarter, down approximately 1% year-over-year, and $1.1 billion year-to-date, also down about 1% [23] - Comparable Hotels' adjusted hotel EBITDA was approximately $129 million for the quarter, down about 7% year-over-year, and $375 million year-to-date, down 6% [23][24] - Comparable Hotels' RevPAR was $124, down 1.8%, with ADR at $163, down 0.6%, and occupancy at 76%, down 1.2% compared to the same quarter in 2023 [24][6] Business Line Data and Key Metrics Changes - Transient leisure demand remained resilient, while group business targeted by property teams helped offset slightly softer midweek business transient [6] - Weekend occupancy was strong at 81%, but weekday occupancy declined, contributing to overall portfolio occupancy declines [28] - Group business mix improved by 50 basis points to 15%, indicating a strategic focus on this segment [30] Market Data and Key Metrics Changes - Comparable Hotels' RevPAR declined approximately 3% in October 2025 compared to October 2024, impacted by the government shutdown [7][28] - The portfolio continues to outperform the industry, with STR reporting RevPAR of $102, ADR of $160, and average occupancy of 63% for the first nine months of the year [24] Company Strategy and Development Direction - The company is focusing on capital allocation by selectively selling assets and redeploying proceeds to buy back stock, while also investing in future developments to ensure portfolio relevance [5][9] - Transitioning Marriott-managed hotels to franchise agreements is expected to unlock operational synergies and enhance cash flow [8][80] - The company aims to maintain a balanced approach between acquisitions and share repurchases, ensuring long-term portfolio relevance while capitalizing on short-term market opportunities [12][62] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic uncertainty and government travel pullbacks have impacted performance, overall demand remains resilient [5][19] - The company anticipates benefiting from pent-up demand following the government shutdown and is optimistic about future performance [28][72] - The outlook for 2025 has been adjusted to reflect potential negative impacts from prolonged economic uncertainty, with expected net income between $162 million and $175 million [35][36] Other Important Information - The company has completed the sale of three hotels for a total of $37 million and has four more under contract for approximately $36 million [10] - Capital expenditures for the year are expected to be between $80 and $90 million, with major renovations planned for approximately $20 million of hotels [17] - The company continues to pay attractive dividends, with distributions totaling approximately $57 million in the third quarter, representing an annual yield of approximately 8.6% [18] Q&A Session Summary Question: How has the full-time employee count shifted over the quarter and its impact on cost improvements? - Management indicated that labor management adjustments have led to improved efficiency, allowing for flexibility in FTE counts based on occupancy changes [41][42] Question: How much of the guidance change is attributed to the government shutdown? - Approximately two-thirds of the guidance change is related to the government shutdown, with the remainder attributed to underlying fundamentals [50][51] Question: What strategies are in place to fill the gap in government travel demand? - The company is focusing on building additional base business through group segments and maximizing market share [67] Question: What are the updated thoughts on the mix shift with corporate occupancy and leisure? - Recent performance indicates greater strength in leisure demand compared to midweek corporate, with expectations for recovery in corporate demand post-government shutdown [70][72] Question: Can you discuss the expected disruption during the transition of Marriott-managed hotels? - Transitioning to franchise agreements is anticipated to unlock value and improve operational performance, with some disruption expected during the changeover [80]

Financial Data and Key Metrics Changes - Comparable Hotels' total revenue was $365 million for the quarter and $1.1 billion year-to-date, both down approximately 1% compared to the same periods in 2023 [23] - Comparable Hotels adjusted hotel EBITDA was approximately $129 million for the quarter and $375 million year-to-date, down approximately 7% and 6% respectively compared to the same periods in 2023 [23][24] - Comparable Hotels' RevPAR was $124, down 1.8%, ADR was $163, down only 0.6%, and occupancy was 76%, down 1.2% compared to the third quarter of 2023 [24] Business Line Data and Key Metrics Changes - Transient leisure demand remained resilient, while group business targeted by property teams helped offset slightly softer midweek business transient [6] - Weekend occupancy was strong at 81%, but declined 120 basis points, while weekday occupancy declined 160 basis points [28] - Group business mix improved 50 basis points to 15%, continuing to be a focus area for property teams [30] Market Data and Key Metrics Changes - Comparable Hotels' RevPAR declined by approximately 3% in October 2025 compared to October 2024, impacted by the government shutdown [7][28] - STR reports industry-wide RevPAR of $102, ADR of $160, and average occupancy of 63% for the first nine months of the year, highlighting the relative strength of the company's portfolio [24] Company Strategy and Development Direction - The company is focusing on capital allocation by selectively selling assets and redeploying proceeds to buy back its own stock [5][9] - Transitioning Marriott-managed hotels to franchise agreements to consolidate management and realize operational synergies [8][80] - Entered into agreements for the development of three hotels in key markets, including Anchorage, Alaska, and Las Vegas, Nevada [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that supply growth is below historical norms, and overall demand remains resilient despite policy uncertainty and expense pressure [5] - The company anticipates benefiting from pent-up demand once the government reopens, following the recent shutdown [28][52] - The outlook for 2025 reflects potential negative impacts from prolonged economic uncertainty and the government shutdown, with expected net income between $162 million and $175 million [35][36] Other Important Information - The company has completed the sale of three hotels for a total of $37 million and has four hotels under contract for sale for approximately $36 million [10] - Total payroll per occupied room was $40 for the quarter, up less than 2%, with reductions in contract labor [31] - The company paid distributions totaling approximately $57 million during the third quarter, representing an annual yield of approximately 8.6% [18] Q&A Session Summary Question: Inquiry on expense reductions and full-time employee count - Management indicated that improvements in wages and payroll were largely driven by adjusting labor to occupancy declines, with flexibility in FTE counts [41][42] Question: Acquisition strategy and portfolio shift - The company clarified that the AC brand is positioned in the upscale segment, and the focus on this brand is driven by operational efficiency and strong margins [44][45] Question: Impact of government shutdown on guidance - Management estimated that two-thirds of the guidance change was related to the government shutdown, with expectations of a rebound in demand post-shutdown [50][52] Question: Strategy for filling gaps in government travel - The team has pivoted to build additional base business through group segments and will continue to explore other demand opportunities [67] Question: Development deals versus acquisitions - The company aims to balance development deals with share repurchases, targeting strong returns while maintaining portfolio relevance [60][62]

Financial Data and Key Metrics Changes - Comparable Hotels' total revenue was $365 million for the quarter, down approximately 1% year-over-year, and $1.1 billion year-to-date, also down about 1% [23][24] - Comparable Hotels' adjusted hotel EBITDA was approximately $129 million for the quarter, down about 7% year-over-year, and $375 million year-to-date, down approximately 6% [24][32] - Comparable Hotels' RevPAR was $124, down 1.8%, with ADR at $163, down 0.6%, and occupancy at 76%, down 1.2% compared to the same quarter in 2023 [24][32] Business Line Data and Key Metrics Changes - Transient leisure demand remained resilient, while group business targeted by property teams helped offset slightly softer midweek business transient [6] - Weekend occupancy was strong at 81%, but weekday occupancy declined, contributing to overall portfolio occupancy declines [27] - Group business mix improved by 50 basis points to 15%, indicating a focus on maximizing revenue from this segment [30] Market Data and Key Metrics Changes - Comparable Hotels' RevPAR declined approximately 3% in October 2025 compared to October 2024, impacted by the government shutdown [7][27] - The hotel portfolio continues to outperform the industry, with STR reporting RevPAR of $102 and average occupancy of 63% for the first nine months of the year [24] - Market performance varied significantly, with some markets showing strong RevPAR gains while others faced headwinds due to demand shifts [25] Company Strategy and Development Direction - The company is focusing on capital allocation by selectively selling assets and redeploying proceeds into share repurchases [5][10] - Future investments are being made to ensure the portfolio's continued relevance, including transitioning Marriott-managed hotels to franchise agreements [9][56] - The company aims to enhance portfolio quality and competitiveness through strategic transactions and maintaining a strong balance sheet [10][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while fundamentals remain strong, external factors like policy uncertainty and expense pressure have impacted performance [5] - The company is optimistic about pent-up demand following the government shutdown and expects to benefit from events like the 2026 FIFA World Cup [21][22] - Despite macroeconomic uncertainties, the company remains confident in its ability to navigate market conditions and drive profitability [37][38] Other Important Information - The company has completed the sale of three hotels for a total of $37 million and has four more under contract for approximately $36 million [11] - Capital expenditures for the year are expected to be between $80 and $90 million, with major renovations planned for approximately $20 million of hotels [18] - The company paid distributions totaling approximately $57 million during the third quarter, representing an annual yield of approximately 8.6% [19] Q&A Session Summary Question: How has the full-time employee count shifted over the quarter? - Management indicated that improvements in wages and payroll were largely driven by adjustments to labor in response to occupancy declines, with flexibility in FTE counts allowing for cost management [39][40] Question: How much of the guidance change is attributed to the government shutdown? - Approximately two-thirds of the guidance change is related to the government shutdown, with the remaining third attributed to fundamental performance issues [42][44] Question: What is the strategy behind the development deals versus acquisitions? - The company aims to balance short-term opportunities from asset sales and share repurchases with long-term relevance through development deals, targeting strong returns [46][48] Question: What are the expected disruptions during the transition of Marriott-managed hotels? - Management anticipates some disruption during the transition but expects to mitigate it by consolidating management and leveraging existing partnerships [61][63]

Hotel Operations - As of September 30, 2025, the Company owned 220 hotels with a total of 29,687 guest rooms, a decrease from 224 hotels and 30,068 guest rooms as of September 30, 2024[89][96]. - The Company has contracts for the potential purchase of two hotels in Nashville, Tennessee, and Anchorage, Alaska, with a total combined purchase price of approximately $163.7 million[90]. - The Company has recovered possession of its New York Property, reinstating operations of its 209 guest rooms through a third-party manager[95]. - The company operates hotels under various brands, including Hilton Garden Inn (39 hotels) and Hampton (36 hotels)[126]. - Four hotels with 367 guest rooms are classified as held for sale, expected to be sold in Q4 2025[126]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $373.9 million, a decrease of 1.3% compared to $378.8 million for the same period in 2024[99]. - Net income for the three months ended September 30, 2025, was $50.9 million, down 9.6% from $56.3 million in the prior year[99]. - Adjusted Hotel EBITDA for the nine months ended September 30, 2025, was $375.9 million, a decrease of 6.1% from $400.6 million in the same period of 2024[99]. - For the nine months ended September 30, 2025, total revenue remained stable at $1.1 billion, the same as in 2024[104]. - Hotel operating expenses for the three months ended September 30, 2025 were $222.0 million, representing 59.4% of total revenue, compared to $219.9 million or 58.1% in 2024[106]. Market Expansion and Acquisitions - The company completed acquisitions of multiple hotels, adding a total of 2,200 rooms across various states, including California, Florida, and Georgia[130]. - The company is focused on expanding its presence in the southeastern United States, with significant acquisitions in Florida and Georgia[130]. - Recent acquisitions include 156 rooms in Fort Lauderdale and 221 rooms in Denver, contributing to the company's growth strategy[130]. - The company plans to continue its strategy of acquiring properties to drive growth and increase market share in the hospitality sector[130]. - The company is actively developing new technologies to enhance guest experience and operational efficiency[131]. Debt and Liquidity - As of September 30, 2025, the company had total outstanding debt of $1.5 billion, which includes $215.2 million in mortgage debt and $1.3 billion under unsecured credit facilities[140]. - The company had available corporate cash on hand of approximately $50.3 million and unused borrowing capacity under its Revolving Credit Facility of approximately $647.9 million[140]. - The company repaid all amounts outstanding under a $225 million term loan facility and entered into a new term loan facility with a principal amount of $385 million, maturing on July 31, 2030[140]. - The company has strategic plans for additional secured and unsecured debt financing and dispositions of hotel properties to enhance liquidity[139]. - The company anticipates using cash flow from operations, borrowings, and proceeds from equity offerings to meet liquidity requirements, including distributions and capital improvements[145]. Customer Experience and Satisfaction - The company reported a strong performance in user data, with a 15% increase in customer satisfaction ratings[131]. - Customer satisfaction ratings increased to 90%, reflecting improved service and product quality[132]. - The company aims to leverage its expanded portfolio to enhance customer experience and drive revenue growth[130]. Future Outlook - The company expects to spend approximately $143.7 million to develop a dual-branded property in Las Vegas, planned to open in the second quarter of 2028[92]. - The company has set a target for revenue growth of 10% year-over-year for the upcoming fiscal year[131]. - The company provided an optimistic outlook, projecting a revenue growth of 15% for the next quarter, aiming for $1.725 billion[132]. - The company plans to enter the European market by Q2 2024, targeting a revenue contribution of $100 million in the first year[132]. Operational Efficiency - The company continues to monitor management companies' efforts to realize operational efficiencies amid inflationary pressures and a tight labor market[106]. - The company is exploring new technology and service enhancements to improve operational efficiency across its properties[130]. - Cost reduction strategies have improved operating margins by 5%, now at 30%[132].

Financial Performance - For Q3 2025, Apple Hospitality reported net income of $50.88 million, a decrease of 9.6% compared to Q3 2024, and net income per share of $0.21, down 8.7%[2]. - Total revenue for the three months ended September 30, 2025, was $373,878,000, a decrease of 1.3% compared to $378,843,000 for the same period in 2024[41]. - Net income for the three months ended September 30, 2025, was $50,880,000, down 9.8% from $56,266,000 in the prior year[41]. - Operating income decreased by 6.7% to $72,497,000 for the three months ended September 30, 2025, compared to $77,726,000 in 2024[44]. - Comparable Hotels total revenue for the three months ended September 30, 2025, was $365,038,000, reflecting a 1.4% decline from $370,373,000 in 2024[44]. - Adjusted Hotel EBITDA for the three months ended September 30, 2025, was $128,577,000, a decrease of 6.7% from $137,824,000 in the same period last year[44]. - The company reported a basic and diluted net income per common share of $0.21 for the three months ended September 30, 2025, compared to $0.23 in 2024[41]. - Funds from operations (FFO) for the three months ended September 30, 2025, was $99,565, compared to $106,545 for the same period in 2024[73]. Operational Metrics - The average daily rate (ADR) for Comparable Hotels was approximately $163, down 0.6% from Q3 2024, while occupancy was 76.2%, down 1.2%[9]. - Comparable Hotels RevPAR was approximately $124 for Q3 2025, down 1.8% compared to Q3 2024, exceeding industry averages reported by STR[9]. - The occupancy rate for Comparable Hotels was 76.2% for the three months ended September 30, 2025, down from 77.1% in 2024[44]. - The total portfolio occupancy rate for Q3 2025 is 76.2%, a decline of 1.2% from 77.1% in Q3 2024[88]. - The ADR for the total portfolio in Q3 2025 is $162.68, a decrease of 0.6% from $163.71 in Q3 2024[88]. - RevPAR for the total portfolio in Q3 2025 is $124.01, down 1.8% from $126.29 in Q3 2024[88]. - The occupancy rate for Same Store Hotels in Q3 2025 was 76.2%, down 1.3% from 77.2% in Q3 2024[55]. - RevPAR for Same Store Hotels in Q3 2025 was $123.35, a decrease of 1.8% compared to $125.67 in Q3 2024[55]. Debt and Capital Management - Total debt outstanding as of September 30, 2025, was $1.515 billion, with a total debt to total capitalization ratio of approximately 34%[14]. - As of September 30, 2025, the Company had approximately $1.5 billion of total outstanding debt with a weighted-average interest rate of approximately 4.8%[23]. - The total debt as of September 30, 2025, is approximately $1.515 billion, with average interest rates around 4.8% to 5.0%[79]. - The Company repaid a secured mortgage loan of approximately $29 million, increasing the number of unencumbered hotels to 210 as of October 31, 2025[23]. - The Company has $500 million remaining under its at-the-market offering program as of September 30, 2025[27]. Strategic Acquisitions and Sales - The company sold three non-core assets for $37 million and acquired Homewood Suites Tampa-Brandon for approximately $19 million during the year[7]. - The company expects to close on the sale of four additional hotels for a combined price of $36 million and acquire Motto by Hilton Downtown Nashville for $98 million by year-end[7]. - Since the beginning of 2025, the Company has sold three hotels for a combined gross sales price of approximately $37.0 million, resulting in a gain of approximately $7.9 million[18]. - The Company has four hotels under contract for sale for a combined gross sales price of approximately $36.4 million[18]. - The Company entered into a fixed-price, forward-purchase contract for a dual-branded property in Las Vegas, with an anticipated total purchase price of approximately $143.7 million, expected to open in Q2 2028[17]. Future Guidance and Projections - The Company updated its 2025 guidance, decreasing Net Income by $5.5 million and Comparable Hotels RevPAR Change by 100 bps, while increasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 20 bps[29]. - For the full year 2025, the Company anticipates Net Income in the range of $162 million to $175 million and Adjusted EBITDAre between $435 million and $444 million[30]. - The company is focused on strategic acquisitions and market expansion, which may influence future revenue and operational metrics[74]. - The company's net income guidance for the year ending December 31, 2025, ranges from $162.1 million to $175.3 million[75]. - EBITDA is projected to be between $436.8 million and $446.4 million for the same period[75]. - Adjusted Hotel EBITDA is expected to be in the range of $468.4 million to $483.0 million[75]. - Comparable Hotels Adjusted Hotel EBITDA guidance is set between $466.6 million and $480.2 million[75]. Capital Expenditures - The Company invested approximately $50 million in capital expenditures during the nine months ended September 30, 2025, and anticipates investing $80 million to $90 million in capital improvements for 2025[22].

Group 1: Inflation and Economic Impact - The recent inflation reading of 3% indicates moderate price growth, above the Federal Reserve's long-term target of 2% but below the elevated rates seen in 2022 and early 2023 [1] - The 3% inflation figure was below expectations of 3.1%, leading to speculation on potential rate cuts by the Federal Reserve in December [1] - A reduction in the Fed Funds rate by 50 basis points over the rest of 2025 could lower the rate from the current 4%-4.25% to 3.50%-3.75% [1] Group 2: High-Yield Dividend Stocks - High-yield dividend stocks provide a reliable source of passive income, appealing to investors seeking to diversify income streams or achieve financial independence [4] - A screening of a blue-chip dividend stock database identified four companies yielding 7% or more, which are often overlooked by growth and income investors [2] Group 3: Apple Hospitality REIT - Apple Hospitality REIT owns a large portfolio of upscale, select-service hotels in the U.S., comprising 224 hotels with over 30,066 guest rooms across 87 markets in 37 states [5] - The company offers a monthly dividend yield of 8.34%, distinguishing itself in the market [5] - The hotel portfolio includes 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels, primarily operated under Marriott or Hilton brands [6]

Core Insights - The recent inflation reading stands at 3%, indicating moderate price growth, which is above the Federal Reserve's long-term target of 2% but significantly lower than the elevated rates observed in 2022 and early 2023 [1] Inflation Analysis - Current inflation rate of 3% reflects a shift from the higher rates experienced previously, suggesting a potential stabilization in the economy [1] - The inflation rate is still above the Federal Reserve's target, indicating ongoing monitoring and potential policy implications [1]

Core Insights - Reaching retirement age presents both advantages and challenges for individuals in the U.S. [1] Group 1 - The transition to retirement can lead to financial uncertainty, impacting lifestyle choices and healthcare access [1] - Many individuals may underestimate the costs associated with retirement, leading to potential financial strain [1] - The reliance on Social Security benefits may not be sufficient for a comfortable retirement, necessitating additional savings [1]