NYSE$APLE

Apple Hospitality REIT Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Apple Hospitality reported results of operations for the fourth quarter and full year 2019.

Apple Hospitality REIT reported their Q4 and full year 2019 results. They acquired a 55-room independent boutique hotel in Richmond, Virginia during the fourth quarter for approximately $7 million. They sold the 122-room Courtyard by Marriott in Winston-Salem, North Carolina, and the 109-room Hampton Inn by Hilton in Fort Lauderdale, Florida during the fourth quarter for approximately $7 million and $20 million, respectively.

  • Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 37 percent for the year.
  • Continued strong occupancy across the portfolio.
  • Acquired three hotels with an aggregate of 343 guest rooms for a combined total purchase price of approximately $59 million in 2019.
  • Sold 11 hotels with an aggregate of 1,285 guest rooms for a total combined gross sales price of approximately $122 million in 2019.

Headline financials

Total Revenue

$290M

Previous: $295M-1.8%
EPS (adj)

$0.32

Previous: $0.36-11.1%
ADR

$137.90

Previous: $136.87+0.8%
Occupancy

77.1%

Previous: 78.3%-1.5%
RevPAR

$106.35

Previous: $107.17-0.8%
Net Income

$26.5M

No prior period
Operating Income

$63.1M

No prior period
Cash & Equivalents

$101M

No prior period
Total Assets

$4.12B

No prior period

Revenue & EPS history

Apple Hospitality · Revenue · Quarterly

$290M

Q4 2019-1.8%vs Q4 2018
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Apple Hospitality · $341M total across 2 segments · Q3 2023

  • Room Revenue
    $327M
  • Food & Beverage
    $13.6M

Forward guidance

Apple Hospitality is providing its operational and financial outlook for 2020. This outlook, which is based on management’s current view of both operating and economic fundamentals of the Company’s existing portfolio of hotels, does not take into account any unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions or dispositions.

Tailwinds

  • Net Income $134 Million (Low-End)
  • Net Income $161 Million (High-End)
  • Comparable Hotels RevPAR Change -1.0% (Low-End)
  • Comparable Hotels RevPAR Change 1.0% (High-End)
  • Adjusted EBITDAre $394 Million (Low-End)

Headwinds

  • Comparable Hotels Adjusted Hotel EBITDA Margin % 30.7% (Low-End)
  • Comparable Hotels Adjusted Hotel EBITDA Margin % 31.7% (High-End)
  • Adjusted EBITDAre $414 Million (High-End)
  • This outlook, which is based on management’s current view of both operating and economic fundamentals of the Company’s existing portfolio of hotels, does not take into account any unanticipated developments in its business
  • This outlook does not take into account any unannounced hotel acquisitions or dispositions.

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 Q4 2019

Historical avgQ4 2019

-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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