Apple Hospitality REIT(US:APLE) Businesswireยท2024-02-22 21:15Core Insights - Apple Hospitality REIT, Inc. reported significant growth in net income and operating income for Q4 and full year 2023, with net income increasing by 798.1% year-over-year for Q4 and 22.6% for the full year [2][3][4] - The company experienced a Comparable Hotels RevPAR growth of over 2% for Q4 2023 and 7% for the full year compared to the same periods in 2022, indicating strong demand in both leisure and business travel [3][4] - The company maintained a strong balance sheet with a total debt to total capitalization ratio of approximately 25% as of December 31, 2023, providing financial flexibility for future growth [4][12] Financial Performance - Net income for Q4 2023 was $20.765 million, compared to $2.312 million in Q4 2022, and for the full year, it was $177.489 million, up from $144.805 million in 2022 [2][4] - Operating income for Q4 2023 was $38.910 million, a 122.5% increase from $17.488 million in Q4 2022, and for the full year, it was $247.481 million, up 19.9% from $206.478 million in 2022 [2][4] - Adjusted EBITDAre for Q4 2023 was $90.536 million, a slight increase of 0.9% from $89.714 million in Q4 2022, while for the full year, it was $436.895 million, up 5.8% from $413.115 million in 2022 [2][4] Operational Metrics - Average Daily Rate (ADR) for Q4 2023 was $149.88, a 1.8% increase from $147.30 in Q4 2022, and for the full year, it was $155.76, up 4.3% from $149.36 in 2022 [2][4] - Comparable Hotels Adjusted Hotel EBITDA for Q4 2023 was approximately $103.667 million, down 1.9% from $105.639 million in Q4 2022, while for the full year, it was $500.079 million, an increase of 4.6% from $477.876 million in 2022 [2][4] - Comparable Hotels occupancy for Q4 2023 was 69.7%, essentially flat compared to 69.8% in Q4 2022, and for the full year, it was 74.2%, up 2% from 72.6% in 2022 [2][4] Portfolio Activity - The company acquired six hotels and a parking garage in 2023 for a total purchase price of approximately $289.8 million, with two additional hotels currently under contract for a combined anticipated purchase price of approximately $177.5 million [4][7][8] - In February 2024, the company sold two hotels for a combined gross sales price of approximately $33.5 million, with plans to use a portion of the proceeds for future acquisitions [10][4] - The company invested approximately $77 million in capital expenditures during 2023 and anticipates investing $75 million to $85 million in 2024 for capital improvements [11][4] Shareholder Distributions - The company paid distributions totaling $0.24 per common share for Q4 2023 and $1.04 per common share for the full year, amounting to approximately $238.3 million [16][4] - The current annualized monthly cash distribution of $0.96 per common share represents an annual yield of approximately 6.0% based on the closing stock price of $15.91 on February 20, 2024 [17][4] 2024 Outlook - For 2024, the company anticipates Comparable Hotels RevPAR change guidance between 2.0% and 4.0%, and Comparable Hotels Adjusted Hotel EBITDA Margin guidance between 34.6% and 35.6% [22][4] - The company expects to continue leveraging its portfolio and operational strengths to maximize long-term value for shareholders [3][4]