Apple Hospitality REIT Inc · Q1 2021 earnings

Briefing

Apple Hospitality's Q1 2021 performance was marked by occupancy growth and strong quarterly results since the pandemic's onset.

Apple Hospitality REIT reported a net loss of $46.4 million for Q1 2021. However, the company saw strengthening performance across its portfolio with occupancy growth exceeding internal expectations. Adjusted EBITDAre was approximately $27 million, and Comparable Hotels Adjusted Hotel EBITDA Margin was approximately 23%.

• Portfolio occupancy improvement and outperformance continued with the month of April reaching approximately 68%.
• The Company produced sufficient cash from hotel operations to cover property-level and corporate-level costs, including debt service and capital expenditures, during the first quarter of 2021.
• Hotel operating expenses were reduced by approximately 33% and 41% during the first quarter of 2021, as compared to the same periods of 2020 and 2019, respectively.
• Performance across the portfolio of hotels continued to strengthen during the first quarter of this year with occupancy growth, driven by a mix of leisure and business demand, exceeding internal expectations and enabling the company to post its best quarterly results since the beginning of the pandemic.

Headline financials

Revenue & EPS history

In light of uncertainties related to the ongoing COVID-19 pandemic, the Company does not expect to issue 2021 operational guidance until it has greater visibility into more predictable operating fundamentals and trends.