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Apple Hospitality REIT(APLE) - 2024 Q4 - Annual Results
APLEApple Hospitality REIT(APLE)2025-02-24 21:15

Financial Performance - Net income for Q4 2024 was 29.8million,a43.629.8 million, a 43.6% increase from 20.8 million in Q4 2023; full year net income reached 214.1million,up20.6214.1 million, up 20.6% from 177.5 million in 2023[2] - Adjusted EBITDAre for Q4 2024 was approximately 97million,a797 million, a 7% increase from the same period in 2023; full year Adjusted EBITDAre was 467 million, also up 7%[10] - Total revenue for the year ended December 31, 2024, was 1,431,468,000,anincreaseof6.51,431,468,000, an increase of 6.5% compared to 1,343,800,000 in 2023[35] - Operating income for the three months ended December 31, 2024, was 49,903,000,up28.349,903,000, up 28.3% from 38,910,000 in the same period of 2023[37] - Operating margin for the year ended December 31, 2024, improved to 20.5%, up 210 basis points from 18.4% in 2023[37] Hotel Operations - Comparable Hotels RevPAR grew approximately 3% in Q4 2024 and over 1% for the full year 2024 compared to the same periods in 2023[5] - Comparable Hotels Adjusted Hotel EBITDA for Q4 2024 was approximately 108million,a3108 million, a 3% increase from Q4 2023; full year Comparable Hotels Adjusted Hotel EBITDA was 509 million, a slight improvement over 2023[9] - Average Daily Rate (ADR) for Comparable Hotels was 152.97inQ42024,up0.6152.97 in Q4 2024, up 0.6% from Q4 2023; full year ADR was 158.94, up 0.5%[9] - Occupancy rate for Comparable Hotels was 71.3% for the three months ended December 31, 2024, compared to 69.9% in 2023, reflecting a 2.0% increase[37] Capital Expenditures and Investments - The Company invested approximately 78millionincapitalexpendituresduring2024andanticipatesinvestingbetween78 million in capital expenditures during 2024 and anticipates investing between 80 million and 90millionin2025[18]−TheCompanyacquiredtwohotelsforapproximately90 million in 2025[18] - The Company acquired two hotels for approximately 196 million and sold six non-core hotels for over 63millionduring2024[6]−TheCompanysoldsixhotelsin2024foracombinedgrosssalespriceofapproximately63 million during 2024[6] - The Company sold six hotels in 2024 for a combined gross sales price of approximately 63.4 million, resulting in a gain of approximately 19.7million[14]DebtandFinancialPosition−Totaldebttototalcapitalization,netofcashandcashequivalents,wasapproximately2819.7 million[14] Debt and Financial Position - Total debt to total capitalization, net of cash and cash equivalents, was approximately 28% as of December 31, 2024[12] - The Company maintained a strong balance sheet with total debt outstanding of 0 as of December 31, 2024[2] - As of December 31, 2024, the Company had approximately 1.5billionintotaloutstandingdebtwithaweighted−averageinterestrateofapproximately4.71.5 billion in total outstanding debt with a weighted-average interest rate of approximately 4.7%[19] - Total liabilities as of December 31, 2024, were 1,704,061,000, an increase from 1,613,317,000in2023[34]ShareholderReturns−Distributionspaidpershareremainedstableat1,613,317,000 in 2023[34] Shareholder Returns - Distributions paid per share remained stable at 0.24 for Q4 2024, with an annualized yield of approximately 6.5% based on the stock price of 14.76[12]−TheCompanypaiddistributionstotaling14.76[12] - The Company paid distributions totaling 1.01 per common share for the year ended December 31, 2024, amounting to approximately 243.7million[22]−TheCompanyrepurchasedapproximately2.4millioncommonsharesataweighted−averagepriceofapproximately243.7 million[22] - The Company repurchased approximately 2.4 million common shares at a weighted-average price of approximately 14.16 per share, totaling approximately 34.7millionin2024[20]FutureGuidance−For2025,theCompanyanticipatesnetincomeguidancebetween34.7 million in 2024[20] Future Guidance - For 2025, the Company anticipates net income guidance between 173 million and 202million,withComparableHotelsRevPARChangeguidanceof1.0202 million, with Comparable Hotels RevPAR Change guidance of 1.0% to 3.0%[24] - The company's net income guidance for the year ending December 31, 2025, ranges from 173,214 thousand to 202,114thousand[64]−EBITDAisprojectedtobebetween202,114 thousand[64] - EBITDA is projected to be between 443,422 thousand and 467,722thousandforthesameperiod[64]MarketPerformance−Theoverallperformanceinthetop20marketsindicatesarecoverytrend,withseveralmarketsshowingsignificantgrowthinbothoccupancyandrevenuemetrics[71]−TheaverageAdjustedADRacrossalltop20marketswas467,722 thousand for the same period[64] Market Performance - The overall performance in the top 20 markets indicates a recovery trend, with several markets showing significant growth in both occupancy and revenue metrics[71] - The average Adjusted ADR across all top 20 markets was 162.00, a slight increase of 0.2% from $161.61 in Q4 2023[71] - The hotel occupancy rate in the top 20 markets improved to 73.3%, up from 66.8% in the previous year, indicating a 9.7% increase[77] Operational Efficiency - The operating margin for Q1 2024 is 21.7%, an improvement from 15.8% in Q1 2023, indicating enhanced operational efficiency[49] - Total portfolio occupancy increased to 75.1% in 2024 from 74.4% in 2023, a change of 0.9%[80] - The suburban segment contributed 44.1% to the adjusted hotel EBITDA in YTD 2024, with an occupancy rate of 75.5%[96]