NYSE$APLE

Apple Hospitality REIT Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Apple Hospitality Demonstrated Strong Operating Performance in Q1 2023

Apple Hospitality REIT, Inc. reported strong operating fundamentals for the first quarter ended March 31, 2023, driven by continued strength in leisure demand and increased business travel. Comparable Hotels RevPAR increased by 19%, ADR increased by 11%, and Occupancy was up by more than 7% as compared to first quarter 2022.

  • Comparable Hotels RevPAR was $109, a 19% increase over first quarter 2022 and a 6% increase over first quarter 2019.
  • Comparable Hotels ADR was $152, an 11% increase over first quarter 2022 and a 9% increase over first quarter 2019.
  • Comparable Hotels Occupancy was 72%, a 7% increase over first quarter 2022 and a 2% decline as compared to first quarter 2019.
  • The Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $107 million, a 21% improvement over first quarter 2022 and a 4% improvement over first quarter 2019.

Headline financials

Total Revenue

$311M

Previous: $260M+19.6%
EPS (adj)

$0.34

Previous: $0.28+21.4%
ADR

$152.01

Previous: $137.03+10.9%
Occupancy

72.0%

Previous: 67.1%+7.3%
RevPAR

$109.46

Previous: $91.98+19.0%
Capital Expenditures

-$24.6M

Previous: -$63M+61.0%
Free Cash Flow

$8.35M

Previous: -$45M+118.6%
Net Income

$32.9M

Previous: $18M+82.9%
Operating Income

$49.2M

Previous: $32.8M+50.0%
Gross Profit

$126M

Previous: $106M+18.6%
Cash & Equivalents

$6.09M

Previous: $636K+858.0%
Total Assets

$4.76B

Previous: $4.79B-0.6%

Revenue & EPS history

Apple Hospitality · Revenue · Quarterly

$311M

Q1 2023+19.6%vs Q1 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Apple Hospitality · $298M total across 2 segments · Q1 2023

  • Room Revenue
    $286M+20.0%
  • Food & Beverage
    $12.9M+53.0%

Forward guidance

The Company is providing its operational and financial outlook for 2023, which is unchanged from the 2023 outlook previously provided. The high end of the full year range reflects relatively steady macroeconomic conditions throughout 2023, with continued strength in leisure demand and improvement in business transient. The low end of the range reflects a softening of the economy beginning in the second quarter with Comparable Hotels RevPAR Change roughly flat compared to 2022 in the second half of the year.

Tailwinds

  • Comparable Hotels RevPAR Change between 3.0% and 7.0%.
  • Comparable Hotels Adjusted Hotel EBITDA Margin % between 35.3% and 36.9%.
  • Adjusted EBITDAre between $420 Million and $457 Million.
  • Capital expenditures between $70 Million and $80 Million.
  • Continued strength in leisure demand.

Headwinds

  • Meaningful macroeconomic uncertainty.
  • Short-term booking windows for the Company's portfolio of rooms-focused hotels.
  • Softening of the economy beginning in the second quarter.
  • Comparable Hotels RevPAR Change roughly flat compared to 2022 in the second half of the year.
  • Unanticipated developments in its business or changes in its operating environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.3%

Avg return

30 days after

47%

20 / 43 earnings

Positive

+19.1%

Q1 2020

Best reaction

-9.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%+5.5%+13.4%
Q4 2025-1.0%+0.4%-2.5%
Q3 2025-1.9%+2.3%+1.4%
Q1 2025-0.1%-3.1%-1.1%
Q4 2024-1.6%+1.3%-11.1%
Q3 2024+0.5%+8.5%+9.6%
Q2 2024-3.1%-3.0%-2.8%
Q1 2024+1.2%+1.1%-2.5%
Q4 2023+0.3%-1.2%+1.7%
Q3 2023-6.0%-5.3%+0.9%
Q2 2023+0.1%+0.8%+0.1%
Q1 2023+1.4%+4.2%-0.7%
Q4 2022-2.4%-1.9%-18.6%
Q3 2022-2.7%+1.6%+2.3%
Q2 2022-0.8%-0.4%-6.5%
Q1 2022-3.4%-5.1%-2.8%
Q4 2021-3.8%+1.5%+1.1%
Q3 2021+0.4%-1.9%-9.6%
Q2 2021+4.8%+3.6%+6.1%
Q1 2021+1.4%-2.1%+3.1%
Q4 2020+0.6%-4.1%+0.5%
Q3 2020+1.0%+16.1%+24.7%
Q2 2020+5.5%+11.1%+21.8%
Q1 2020+19.1%+12.1%+32.5%
Q4 2019-9.0%-13.4%-38.6%
Q3 2019+0.9%-1.0%-3.9%
Q2 2019+0.2%+1.7%+5.5%
Q1 2019-0.5%-0.1%-4.7%
Q4 2018-0.2%-1.6%-2.5%
Q3 2018-2.2%+0.4%-2.9%
Q2 2018-0.2%-3.5%-1.3%
Q1 2018+0.5%+1.0%+3.9%
Q4 2017-1.1%-4.9%-6.2%
Q3 2017+1.0%+1.4%+3.1%
Q2 2017-1.5%-1.7%+0.4%
Q1 2017+0.9%-2.1%-0.7%
Q4 2016-2.7%-5.6%-7.0%
Q3 2016+0.6%-1.0%+11.5%
Q2 2016-0.5%-2.1%-7.5%
Q1 2016+0.5%
Q4 2015-4.4%
Q3 2015+2.3%
Q2 2015+0.0%
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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