APLE · Apple Hospitality REIT, Inc.

Apple Hospitality REIT reported first quarter 2026 results that showed mixed performance relative to the prior year. Comparable Hotels RevPAR increased 2.2% to $114.61, driven primarily by a 2.1% improvement in occupancy to 72.8%, while ADR edged up only 0.1% to $157.35. The company noted that the first quarter of 2025 benefited from wildfire-related recovery business in Southern California and the presidential inauguration in Washington, D.C., making the comparison challenging. Despite this, management characterized the start to 2026 as "stronger-than-anticipated." On the bottom line, Adjusted EBITDAre grew 2.2% to $100.6 million, and Comparable Hotels Adjusted Hotel EBITDA rose 3.6% to $108.4 million, reflecting flow-through of revenue gains. However, GAAP net income declined 11.3% to $27.7 million, partly due to higher depreciation and interest costs. Operating margin contracted 130 basis points to 14.2%, while Comparable Hotels Adjusted Hotel EBITDA Margin slipped 20 bps to 32.2%. The company paid distributions of $0.24 per share in the quarter, down from $0.29 in the prior year which included a $0.05 special distribution. Management highlighted disciplined capital allocation, including the April sale of a Hampton Inn & Suites in Rochester, Minnesota for $8.7 million, and ongoing development projects in Anchorage and Las Vegas. The company updated its 2026 outlook, anticipating capital improvements of $80-$90 million. Preliminary April data showed Comparable Hotels RevPAR growth of more than 4% year-over-year, suggesting continued momentum. The balance sheet remains flexible with net debt to capitalization of 36.5% and $559 million available under its revolving credit facility.