NYSE$APLE

Apple Hospitality REIT Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong operating performance driven by RevPAR and ADR growth.

Apple Hospitality REIT reported its Q4 2022 earnings, with RevPAR growth of approximately 7% compared to Q4 2019, driven by meaningful improvement in rate. The Company acquired two hotels for a total combined purchase price of $85 million. The Company's total debt to total capitalization, net of cash and cash equivalents, was approximately 28%.

  • Achieved RevPAR growth of approximately 7% as compared to the fourth quarter 2019.
  • ADR for the fourth quarter 2022 was $147, approximately 12% ahead of fourth quarter 2019 ADR.
  • Acquired the AC Hotel by Marriott Louisville Downtown and the AC Hotel by Marriott Pittsburgh Downtown for a total combined purchase price of $85 million.
  • Total debt to total capitalization, net of cash and cash equivalents, was approximately 28%.

Headline financials

Total Revenue

$299M

Previous: $251M+19.4%
EPS (adj)

$0.33

Previous: $0.26+26.9%
ADR

$147.30

Previous: $131.04+12.4%
Occupancy

69.7%

Previous: 67.5%+3.3%
RevPAR

$102.71

Previous: $88.43+16.1%
Net Income

$2.31M

Previous: $13.2M-82.5%
Operating Income

$17.5M

Previous: $28M-37.6%
Gross Profit

$102M

Previous: $84.5M+20.5%
Cash & Equivalents

$4.08M

Previous: $3.28M+24.2%
Total Assets

$4.77B

Previous: $4.79B-0.4%

Revenue & EPS history

Apple Hospitality · Revenue · Quarterly

$299M

Q4 2022+19.4%vs Q4 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

The Company is providing its operational and financial outlook for 2023, with Comparable Hotels RevPAR Change between 3.0% and 7.0%.

Tailwinds

  • Results for the first quarter 2023 are expected to benefit significantly from the easier comparison to the first quarter 2022 when the Omicron variant negatively impacted lodging demand.
  • The high end of the full year range reflects relatively steady macroeconomic conditions throughout 2023.
  • Continued strength in leisure demand.
  • Improvement in business transient.
  • Net income between $165 Million and $209 Million

Headwinds

  • Meaningful macroeconomic uncertainty.
  • Short-term booking windows for the Company's portfolio of rooms-focused hotels.
  • 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.
  • Capital expenditures between $70 Million and $80 Million
  • Adjusted EBITDAre between $420 Million and $457 Million

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 2022

Historical avgQ4 2022

-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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