Apple Hospitality REIT(US:APLE)2026-02-23 21:16Financial Performance - For the year ended December 31, 2025, the Company's ADR was $159.09, a slight decrease of 0.1% from $159.31 in 2024, while occupancy dropped to 74.1% from 75.3%, and RevPAR decreased to $117.95 from $119.92, both reflecting a decline of 1.6%[23] - In 2025, the Company sold seven hotels for a combined gross sales price of approximately $73.3 million, resulting in a gain of approximately $13.1 million[28] - The Company's annualized distribution rate was $0.96 per common share at December 31, 2025, with expected monthly distributions of $0.08 per common share[48] Investments and Acquisitions - The Company acquired two hotels in 2025 for a total of approximately $117.0 million, including a 126-room Homewood Suites in Tampa and a 260-room Motto in Nashville[24] - As of December 31, 2025, the Company had a contract for a potential purchase of a hotel in Anchorage, Alaska, for approximately $65.5 million, with a planned completion in Q4 2027[26] - The Company plans to invest approximately $143.7 million to develop a dual-branded property in Las Vegas, expected to open in Q2 2028, consisting of an AC Hotel and a Residence Inn[27] - The Company invested approximately $88.2 million in capital improvements for its hotels in 2025, with plans to invest $80 million to $90 million in 2026[41] Debt and Financing - As of December 31, 2025, the Company had approximately $1.5 billion in total outstanding debt, with a weighted-average interest rate of approximately 4.70%[44] - The Company's unused borrowing capacity under its Revolving Credit Facility as of December 31, 2025, was $586.9 million, available for acquisitions, renovations, and other corporate purposes[45] - The Company's total debt to total capitalization ratio as of December 31, 2025, was 35.5%, indicating relatively low leverage compared to the real estate industry[45] - Approximately $551.0 million, or 36% of the Company's total debt outstanding, was subject to variable interest rates as of December 31, 2025[245] - The Company has 11 interest rate swap agreements that effectively fix interest payments on approximately $685.0 million of its variable-rate debt[246] - Total debt maturities amount to $1,545,265 million, with the largest maturity in 2030 at $460,016 million[248] - Average interest rates for total debt are projected to decrease from 4.7% in 2026 to 3.7% thereafter[248] - Variable-rate debt maturities total $1,236,000 million, with the highest maturity in 2030 at $385,000 million[248] - Average interest rates for variable-rate debt are expected to rise slightly from 4.9% in 2026 to 5.0% in 2030[248] - Fixed-rate debt maturities total $309,265 million, with the largest maturity in 2029 at $77,294 million[248] - Average interest rates for fixed-rate debt are projected to decrease from 4.0% in 2026 to 3.6% in 2030[248] Operational Overview - The Company operates 217 hotels with a total of 29,583 guest rooms, primarily under Marriott and Hilton brands[34] - Approximately 81% of the Company's hotels operate under variable management fee agreements, which align incentives for hotel managers to maximize performance[36] - The hotel industry is seasonal, with higher occupancy rates and revenues typically occurring in the second and third quarters[61] Corporate Responsibility and Employee Engagement - The Company maintains insurance coverage for general liability, property, and business interruption risks across all its hotels[49] - The Company is committed to enhancing sustainability practices, including energy management programs established in 2018 to minimize environmental impact[54] - The Company employs 64 team members as of December 31, 2025, emphasizing employee health, safety, and well-being as critical to business success[56] Shareholder Actions - The Company repurchased approximately 4.6 million common shares at an average price of $12.55 per share for a total of approximately $58.3 million under its Share Repurchase Program, with $242.5 million remaining available for future repurchases[32] - The Company plans to sell up to $500 million of its common shares under the ATM Program, with approximately $500 million remaining available for issuance as of December 31, 2025[47]