NYSE$APLE

Apple Hospitality REIT Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Apple Hospitality REIT delivered strong performance in Q4 2024, with revenue and earnings growth driven by higher RevPAR and occupancy rates.

Apple Hospitality REIT reported solid financial results for Q4 2024, with revenue reaching $333 million and net income increasing 43.6% year-over-year to $29.8 million. RevPAR rose 4.3% to $108.75, while occupancy improved to 71.4%. The company continued its disciplined approach to capital allocation, acquiring two hotels for $196.3 million and selling six non-core properties. Looking ahead, Apple Hospitality expects steady growth in 2025, supported by strong business travel demand and moderate supply growth.

  • Q4 revenue reached $333 million, up 6.6% year-over-year.
  • Net income increased 43.6% to $29.8 million, with EPS at $0.12.
  • RevPAR grew 4.3% to $108.75, supported by an increase in occupancy.
  • Apple Hospitality continued portfolio optimization, acquiring two hotels and selling six properties.

Headline financials

Total Revenue

$333M

Previous: $312M+6.6%
EPS (adj)

$0.32

Previous: $0.31+3.2%
ADR

$134.12

Previous: $149.88-10.5%
Occupancy

72.4%

Previous: 69.6%+4.0%
RevPAR

$97.15

Previous: $104.27-6.8%
Comparable ADR

$133.77

No prior period
Comparable Occupancy

72.1%

No prior period
Comparable RevPAR

$96.42

No prior period
Operating Margin

20.1%

No prior period
Adjusted EBITDAre

$106M

No prior period
Comparable Hotel EBITDA

$92.8M

No prior period
Comparable Hotel EBITDA Margin

30.2%

No prior period
Modified FFO

$81.2M

No prior period
Modified FFO per share

$0.37

No prior period
Capital Expenditures

-$20.8M

Previous: -$22.7M+8.7%
Net Income

$29.8M

Previous: $20.8M+43.6%
Operating Income

$49.9M

Previous: $38.9M+28.3%

Revenue & EPS history

Apple Hospitality · Revenue · Quarterly

$333M

Q4 2024+6.6%vs Q4 2023
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

Apple Hospitality expects RevPAR growth of 1-3% in 2025, supported by business transient demand and portfolio optimization. Adjusted Hotel EBITDA margin is forecasted between 34.2% and 35.2%.

Tailwinds

  • Anticipated RevPAR growth of 1-3% in 2025.
  • Strong occupancy trends continuing into 2025.
  • Expected full-year Adjusted EBITDAre between $447M and $471M.
  • Planned capital expenditures of $80M-$90M to enhance hotel properties.
  • Ongoing portfolio optimization through strategic acquisitions and divestitures.

Headwinds

  • Potential macroeconomic headwinds impacting consumer travel demand.
  • Higher interest expense from debt financing.
  • Operational costs, including labor and utilities, could pressure margins.
  • Seasonal weakness in Q1 due to adverse weather conditions.
  • Limited visibility on new hotel supply in key markets.

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 2024

Historical avgQ4 2024

-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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