UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares, no par value APLE New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO _______ Commission File ...

Exhibit 99.1 Apple Hospitality REIT Reports Results of Operations for First Quarter 2024 RICHMOND, Va. (May 6, 2024) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the "Company" or "Apple Hospitality") today announced results of operations for the first quarter ended March 31, 2024. Apple Hospitality REIT, Inc. Selected Statistical and Financial Data As of and For the Three Months Ended March 31 (Unaudited) (in thousands, except statistical and per share amounts) (1) Three Months Ended March 31, | --- | --- | ...

RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that its Board of Directors declared a regular monthly cash distribution of $0.08 per common share. The distribution is payable on April 15, 2024, to shareholders of record as of March 28, 2024. Based on the Company’s common stock closing price of $16.18 on March 15, 2024, the annualized distribution of $0.96 per common share represents an annual yield of approximately 5.9%. In ...

As witnessed by the travel restrictions not long ago, the hospitality real estate market remains highly dependent on various global factors, from market upturns and downturns to geopolitics and natural disasters. However, as worldwide travel and tourism is rebounding, the hospitality sector is on the uptake—with hotel real estate investment trusts (REITs) particularly performing well.One hotel REIT player remains at the helm of the upward trend, benefiting from increased occupancy and room rates and, in tur ...

Apple Hospitality REIT, Inc. (NYSE:APLE) Q4 2023 Earnings Conference Call February 23, 2024 10:00 AM ET Company Participants Kelly Clarke - VP, IR Justin Knight - CEO Liz Perkins - CFO Conference Call Participants Michael Bellisario - Baird Austin Wurschmidt - KeyBanc Capital Markets Dori Kesten - Wells Fargo Anthony Powell - Barclays Floris van Dijkum - Compass Point Bryan Maher - B. Riley Securities Jonathan Jenkins - Oppenheimer & Co. Michael Herring - Green Street Operator Greetings and welcome to the A ...

For the quarter ended December 2023, Apple Hospitality REIT (APLE) reported revenue of $312.46 million, up 4.5% over the same period last year. EPS came in at $0.31, compared to $0.01 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $304.17 million, representing a surprise of +2.72%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.31.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Financial Performance - The Company's ADR for the year ended December 31, 2023, was $156.55, a 4.6% increase from $149.62 in 2022[17] - Comparable Hotels RevPAR rose by approximately 7.0% to $116.23 for the year ended December 31, 2023, compared to $108.67 in 2022[17] - Hotel occupancy increased to 74.2% in 2023, up from 72.6% in 2022, representing a 2.2% improvement[17] - The annualized distribution rate was $0.96 per common share as of December 31, 2023, with a combined distribution of $0.13 per common share approved for January 2024[39] Acquisitions and Investments - The Company acquired six hotels and one parking garage in 2023 for a total purchase price of approximately $289.8 million[20] - As of December 31, 2023, the Company had contracts for the potential purchase of two hotels for a combined price of approximately $177.5 million[21] - The Company plans to invest approximately $75 million to $85 million in capital improvements during 2024, including renovations for about 20 properties[31] Debt and Financing - The Company's total outstanding debt as of December 31, 2023, was approximately $1.4 billion, with a weighted average interest rate of about 4.26%[33] - The unused borrowing capacity under the Revolving Credit Facility was $650 million as of December 31, 2023[34] - The Company sold approximately 12.8 million shares under its ATM Program at a weighted-average market sales price of approximately $17.05 per share, generating gross proceeds of approximately $218.6 million in 2023[37] - The Company has approximately $335.4 million remaining available for share repurchases under its program as of December 31, 2023[24] Property Dispositions - The Company did not dispose of any properties in 2023 but has a contract to sell two hotels for approximately $33.5 million in February 2024[22] - The Company may struggle to complete hotel dispositions due to market conditions and property-specific factors, limiting portfolio flexibility[72] Operational Risks - The company operates substantially all of its hotels under Marriott or Hilton brands, which subjects it to risks associated with brand concentration[60] - The company faces various risks including over-building of hotels, competition, and economic downturns that could adversely affect occupancy rates and revenue[55] - Operating expenses are relatively fixed, meaning that during economic downturns, the company may struggle to reduce costs while revenues decline[56] - The company is dependent on third-party hotel managers for operations, which limits its control over hotel management and could impact financial performance if managers do not perform effectively[63] Economic and Market Conditions - Economic conditions in the U.S. and local markets can adversely affect the company's financial performance and operating results[54] - The hotel industry is highly cyclical and sensitive to government and consumer spending, which can lead to fluctuations in demand and revenue[55] - Competition from alternative lodging options and increased hotel supply in local markets could negatively affect occupancy and revenue per available room (RevPAR)[62] Cost and Profitability Challenges - Inflation and rising operating costs, including labor and energy expenses, may not be offset by increases in room rates, affecting profitability[53] - Labor shortages and rising labor costs could significantly increase operating costs and decrease revenues, potentially affecting hotel capacity[65] - Ongoing renovations and capital improvements are necessary but may reduce profitability due to increased costs and potential disruptions[68] Environmental and Regulatory Risks - The Company is committed to enhancing sustainability practices, including energy and water management, across its hotel portfolio[42] - The Company is subject to various environmental laws that could impose significant cleanup costs and liabilities, affecting profitability and property values[91] - Compliance with environmental, health, and safety regulations incurs costs and could result in fines for non-compliance, impacting financial performance[92] - The Company faces risks related to government regulations and potential litigation concerning environmental matters, which could materially affect its financial condition[90] REIT Compliance and Taxation - The Company's ability to maintain its REIT status is contingent on compliance with complex regulations, and any failure could have adverse consequences for shareholders[106] - The Company must distribute at least 90% of its REIT taxable income annually to avoid U.S. federal corporate income tax on distributed earnings[112] - If the Company fails to qualify as a REIT, it could face substantial additional tax liabilities, adversely affecting net earnings and cash available for distribution[108] Interest Rate and Financial Management - The Company is exposed to interest rate risk due to possible changes in short-term interest rates[232] - Every 100 basis points change in interest rates will impact the Company's annual net income by approximately $1.5 million, all other factors remaining the same[232] - The Company had 14 interest rate swap agreements that effectively fix interest payments on approximately $820.0 million of its variable-rate debt[233] - The average interest rate for variable-rate debt was 5.2% as of December 31, 2023[235] Cybersecurity and Operational Resilience - Cybersecurity risks pose a threat to the Company's operations, potentially leading to system disruptions and liability claims[86] - The Company maintains comprehensive insurance coverage for various risks, but potential uninsured losses could adversely affect its financial condition[87] - Climate change poses risks including severe weather events that could impact hotel demand and operational capabilities, potentially leading to increased costs for insurance and renovations[88]

RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the fourth quarter and full year ended December 31, 2023. Apple Hospitality REIT, Inc. Selected Statistical and Financial Data As of and For the Three Months and Year Ended December 31 (Unaudited) (in thousands, except statistical and per share amounts)(1)     Three Months Ended   Year Ended   December 31,   Decem ...

Exhibit 99.1 Apple Hospitality REIT Reports Results of Operations for Fourth Quarter and Full Year 2023 RICHMOND, Va. (February 22, 2024) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the "Company" or "Apple Hospitality") today announced results of operations for the fourth quarter and full year ended December 31, 2023. Apple Hospitality REIT, Inc. Selected Statistical and Financial Data As of and For the Three Months and Year Ended December 31 (Unaudited) (in thousands, except statistical and per share amou ...

Industry Overview - Hotel revenues have fully recovered from the pandemic, reaching record highs with the highest average daily rate (ADR) and revenue per available room (RevPAR) on record in 2023 [2] - Despite the recovery in hotel revenues, hotel REITs remain over 20% below pre-pandemic levels [2] Leverage and Cyclicality - Leverage amplifies both success and failure, acting as a multiplier during boom and bust cycles [5] - During the pandemic, leverage exacerbated the crash but should have also amplified the recovery, yet hotel REITs did not fully recover [4][5] - The cost of financial distress, triggered by leverage, led to dilutive maneuvers such as equity issuance, property sales, and preferred share conversions to avoid breaching loan covenants [6] - These dilutive actions resulted in permanent earnings dilution and hindered the recovery of FFO/share and AFFO/share for most hotel REITs [7] Apple Hospitality (APLE) Case Study - APLE stands out as an exception, fully recovering in both FFO and market price due to its low leverage entering the pandemic [8] - APLE's debt + preferred to total enterprise value was about 25% pre-pandemic, compared to 40%-60% for most hotel REITs, allowing it to avoid financial distress and dilutive capital raises [9] - APLE maintained its asset base and share count, enabling a clean recovery in AFFO/share as industry revenues rebounded [10] - APLE's RevPAR of $122.91 in 3Q23 is among the lowest in the industry, with properties spread proportionally to GDP across the U S [8] Market Mispricing and Investment Implications - The market appears to be mispricing hotel REITs, with low-leverage APLE trading at 12 3X AFFO while high-leverage Pebblebrook (PEB) trades at 15 5X AFFO [13] - High leverage in cyclical sectors like hotels increases vulnerability during downturns, making low-leverage companies like APLE more attractive [12] - APLE is identified as a clear opportunity in the sector due to its conservative balance sheet and full recovery [14]