Apple Hospitality REIT Reports Results of Operations for Fourth Quarter and Full Year 2019
Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the fourth quarter and full year ended December 31, 2019.
Selected Statistical and Financial Data
As of and For the Three Months and Years Ended December 31
(Unaudited) (in thousands, except statistical and per share amounts)(1)
2019
2018
% Change
2019
2018
% Change
Net income(2)$
25,453
$
34,152
(25.5%)
$
171,917
$
206,086
(16.6%)
Net income per share(2)$
0.11
$
0.15
(26.7%)
$
0.77
$
0.90
(14.4%)
Adjusted EBITDAre(2)
$
86,110
$
94,831
(9.2%)
$
428,785
$
448,512
(4.4%)
Comparable Hotels Adjusted Hotel EBITDA(2)$
95,734
$
99,970
(4.2%)
$
459,473
$
463,591
(0.9%)
Comparable Hotels Adjusted Hotel EBITDA Margin %(2)
33.4%
34.7%
(130 bps)
36.7%
37.3%
(60 bps)
Modified funds from operations (MFFO)(2)$
70,604
$
81,502
(13.4%)
$
365,921
$
395,785
(7.5%)
MFFO per share(2)$
0.32
$
0.36
(11.1%)
$
1.63
$
1.72
(5.2%)
Average Daily Rate (ADR) (Actual)$
131.41
$
131.93
(0.4%)
$
137.30
$
136.04
0.9%
Occupancy (Actual)
72.9%
72.5%
0.6%
77.0%
76.9%
0.1%
Revenue Per Available Room (RevPAR) (Actual)$
95.85
$
95.63
0.2%
$
105.72
$
104.66
1.0%
Comparable Hotels ADR
$
131.47
$
133.09
(1.2%)
$
137.70
$
137.43
0.2%
Comparable Hotels Occupancy
72.9%
72.7%
0.3%
77.1%
77.2%
(0.1%)
Comparable Hotels RevPAR$
95.82
$
96.72
(0.9%)
$
106.12
$
106.07
-
Distributions paid$
67,175
$
68,627
(2.1%)
$
268,672
$
275,892
(2.6%)
Distributions paid per share$
0.30
$
0.30
-
$
1.20
$
1.20
-
Total debt outstanding$
1,325,867
Total debt to total capitalization (3)
26.7%
__________
(1)
Explanations of and reconciliations to net income determined in accordance with generally accepted accounting principles ("GAAP") of non-GAAP financial measures, Adjusted EBITDAre, Comparable Hotels Adjusted Hotel EBITDA and MFFO, are included below.(2)
On January 1, 2019, the Company adopted the Financial Accounting Standards Board’s Accounting Standards Update No. 2016-02, Leases (Topic 842). Under the new lease accounting standard, the Company classified four ground leases as finance leases that were previously classified as operating leases in accordance with the previous accounting standard. See discussion below for additional information on the adoption of the new lease accounting standard.(3)
Total debt outstanding divided by total debt outstanding plus equity market capitalization based on the Company’s closing share price of $16.25 on December 31, 2019.Comparable Hotels is defined as the 232 hotels owned and held for use by the Company as of December 31, 2019. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions and assets held for sale, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.
Justin Knight, President and Chief Executive Officer of Apple Hospitality, commented, “We are pleased to report Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 37 percent for the year and continued strong occupancy across our portfolio. We continue to work diligently to maximize profitability in the current operating environment, which is challenged by a tight labor market and increases in supply, and remain confident that with our diversified portfolio of rooms-focused hotels and the strength of our balance sheet, we are well positioned to outperform over the long term.”
Portfolio Activity
Acquisitions and Contracts for Potential Acquisitions
In 2019, Apple Hospitality acquired three hotels with an aggregate of 343 guest rooms for a combined total purchase price of approximately $59 million, including a 55-room independent boutique hotel in Richmond, Virginia, which was acquired during the fourth quarter for approximately $7 million.
The Company continues to have outstanding contracts for the potential purchase of six additional hotels for a combined total expected purchase price of approximately $209 million. The six hotels under contract are currently under development, and assuming all conditions to closing are met, will be acquired over the next five to 18 months from December 31, 2019. There are many conditions to closing under each of the contracts that have not yet been satisfied, including completion of construction, and there can be no assurance that closings on the six hotels will occur.
Dispositions and Contract for Potential Disposition
In 2019, the Company sold 11 hotels with an aggregate of 1,285 guest rooms for a total combined gross sales price of approximately $122 million, including the 122-room Courtyard by Marriott in Winston-Salem, North Carolina, and the 109-room Hampton Inn by Hilton in Fort Lauderdale, Florida, which were sold during the fourth quarter for approximately $7 million and $20 million, respectively. The Company’s 2019 dispositions resulted in a combined gain on sale of approximately $6 million. In January 2020, the Company sold the 105-room SpringHill Suites by Marriott in Sanford, Florida, for a gross sales price of $13 million, resulting in an estimated gain of less than $1 million, which the Company will recognize during the first quarter of 2020.
In December 2019, the Company entered into a contract for the sale of its 230-room SpringHill Suites by Marriott in Boise, Idaho, for a gross sales price of $32 million. Although the Company is working towards the sale of this hotel, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on this hotel will occur under the outstanding sale contract. If the closing occurs, this sale is expected to be completed in the first quarter of 2020, and the Company anticipates recognizing a gain upon completion of the sale.
Renaissance New York Hotel 57 Converted to an Independent Boutique Hotel
In January 2020, the Company converted its 208-room Renaissance hotel in New York, New York, to an independent boutique hotel. The intent of the conversion is to provide greater long-term flexibility with the operations of the hotel. Although the Company is not able to fully estimate the near-term impact associated with the transition, it does anticipate operational disruption as the management team works to replace revenue that historically came from participation in the Renaissance brand system.
Capital Improvements
Apple Hospitality consistently reinvests in its hotels to maintain and enhance each property’s relevance and competitive position within its respective market. During the year ended December 31, 2019, the Company invested approximately $79 million in capital expenditures. The Company plans to continue to reinvest in its hotels and anticipates investing approximately $80 million to $90 million in capital improvements in 2020, which includes various scheduled renovation projects at approximately 25 to 30 properties, including the completion of the renovation of the Company’s full-service Marriott in Richmond, Virginia.
Adoption of New Lease Accounting Standard
On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842). Under this standard, lessees are required to recognize most leases on their balance sheets as right-of-use assets and lease liabilities. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new standard, four of the Company’s ground leases that were previously classified as operating leases under the previous accounting standard are classified as financing leases under Topic 842. For these finance leases, effective January 1, 2019, the Company recognizes depreciation and amortization expense and interest and other expense, net in the Company’s consolidated statements of operations, instead of operating ground lease expense. While the total expense recognized over the life of a lease is unchanged, the timing of expense recognition for these finance leases results in higher expense during the earlier years of the lease and lower expense during the later years of the lease. For the three months and year ended December 31, 2019, the Company recognized approximately $2.8 million and $8.2 million of interest expense, respectively, and approximately $1.6 million and $4.5 million of amortization expense, respectively, associated with these four finance leases. Under the previous accounting standard, the Company would have recognized approximately $2.3 million and $7.0 million of cash operating ground lease expense and $1.6 million and $4.4 million of non-cash straight-line ground lease expense and amortization of intangible lease expense during the three months and year ended December 31, 2019, respectively, for these four ground leases. As a result of the new lease standard, at December 31, 2019, the Company’s balance sheet reflects finance ground lease assets, net, of approximately $193.2 million, operating lease assets, net, of approximately $28.3 million and associated combined lease liabilities of approximately $228.8 million.
Balance Sheet
As of December 31, 2019, Apple Hospitality had approximately $1.3 billion of total outstanding indebtedness with a current combined weighted-average interest rate of approximately 3.6 percent. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding indebtedness is comprised of approximately $455 million in property-level debt secured by 29 hotels and approximately $871 million outstanding on its unsecured credit facilities. Apple Hospitality’s undrawn capacity on its unsecured credit facilities at December 31, 2019 was approximately $374 million. The Company’s total debt to total capitalization at December 31, 2019 was approximately 27 percent, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. The Company’s weighted-average debt maturities are 5 years, and the weighted-average maturity of its effectively fixed-rate debt is 4 years at a weighted-average interest rate of 3.7 percent.
Shareholder Distributions
Apple Hospitality paid distributions of $0.30 per common share during the three-month period ended December 31, 2019. Distributions paid by the Company totaled $1.20 per common share for the year ended December 31, 2019. Based on the Company’s common share closing price of $15.12 on February 20, 2020, the annualized distribution rate of $1.20 per common share represents an annual yield of approximately 7.9 percent. The Company’s Board of Directors, in consultation with management, will continue to regularly monitor the Company’s distribution rate relative to the performance of its hotels, capital improvement needs, varying economic cycles, acquisitions and dispositions. At its discretion, the Company’s Board of Directors may make adjustments as determined to be prudent in relation to other cash requirements of the Company.
2020 Outlook
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. Comparable Hotels RevPAR Change and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, as if the hotels were owned as of January 1, 2019, and exclude dispositions and assets held for sale since January 1, 2019. For the full year 2020, the Company anticipates:
2020 Guidance(1) Low-End High-End Net Income$134 Million
$161 Million
Comparable Hotels RevPAR Change(2.0%)
0.0%
Comparable Hotels Adjusted Hotel EBITDA Margin %34.5%
35.5%
Adjusted EBITDAre$394 Million
$414 Million
__________
(1)
Explanations of and reconciliations to net income guidance of Adjusted EBITDAre guidance are included below.
Fourth Quarter and Full Year 2019 Earnings Conference Call
The Company will host a quarterly conference call for investors and interested parties on Tuesday, February 25, 2020, at 10:00 a.m. Eastern Time. The conference call will be accessible by telephone and the internet. To access the call, participants from within the U.S. should dial 877-407-9039, and participants from outside the U.S. should dial 201-689-8470. Participants may also access the call via live webcast by visiting the Investor Information section of the Company's website at ir.applehospitalityreit.com. A replay of the call will be available from approximately 1:00 p.m. Eastern Time on February 25, 2020, through 11:59 p.m. Eastern Time on March 17, 2020. To access the replay, the domestic dial-in number is 844-512-2921, the international dial-in number is 412-317-6671, and the passcode is 13697587. The archive of the webcast will be available on the Company's website for a limited time.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 232 hotels with approximately 29,800 guest rooms located in 87 markets throughout 34 states. Concentrated with industry-leading brands, the Company’s portfolio consists of 105 Marriott-branded hotels, 124 Hilton-branded hotels, one Hyatt-branded hotel and two independent hotels. For more information, please visit www.applehospitalityreit.com.
Apple Hospitality REIT Non-GAAP Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: Funds from Operations (“FFO”); Modified FFO (“MFFO”); Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”); Earnings Before Interest, Income Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”); Adjusted EBITDAre (“Adjusted EBITDAre”); and Adjusted Hotel EBITDA (“Adjusted Hotel EBITDA”). These non-GAAP financial measures should be considered along with, but not as alternatives to, net income, cash flow from operations or any other operating GAAP measure. FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA are not necessarily indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions. Although FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as reported by other companies that do not define such terms exactly as the Company defines such terms, the Company believes these supplemental measures are useful to investors when comparing the Company’s results between periods and with other REITs. Reconciliations of these non-GAAP financial measures to net income are provided in the following pages.
Forward-Looking Statements Disclaimer
Certain statements contained in this press release, other than historical facts, may be considered forward-looking statements. These forward-looking statements are predictions and generally can be identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Apple Hospitality to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability of Apple Hospitality to effectively acquire and dispose of properties; the ability of Apple Hospitality to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the real estate and real estate capital markets; financing risks; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact Apple Hospitality’s business, assets or classification as a real estate investment trust. Although Apple Hospitality believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Apple Hospitality or any other person that the results or conditions described in such statements or the objectives and plans of Apple Hospitality will be achieved. In addition, Apple Hospitality’s qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code. Readers should carefully review Apple Hospitality’s financial statements and the notes thereto, as well as the risk factors described in Apple Hospitality’s filings with the Securities and Exchange Commission, including, but not limited to, those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Any forward-looking statement that Apple Hospitality makes speaks only as of the date of such statement. Apple Hospitality undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.
For additional information or to receive press releases by email, visit www.applehospitalityreit.com.
Apple Hospitality REIT, Inc.
Consolidated Balance Sheets
(in thousands, except share data)
December 31,
2019
2018
Assets Investment in real estate, net of accumulated depreciation and amortization of $1,054,429 and $909,893, respectively$
4,825,738
$
4,816,410
Assets held for sale
12,093
-
Restricted cash-furniture, fixtures and other escrows
34,661
33,632
Due from third party managers, net
26,926
29,091
Other assets, net
42,993
49,539
Total Assets
$
4,942,411
$
4,928,672
Liabilities Debt, net
$
1,320,407
$
1,412,242
Finance lease liabilities
216,627
-
Accounts payable and other liabilities
114,364
107,420
Total Liabilities
1,651,398
1,519,662
Shareholders' Equity Preferred stock, authorized 30,000,000 shares; none issued and outstanding
-
-
Common stock, no par value, authorized 800,000,000 shares; issued and outstanding 223,862,913 and 223,997,348 shares, respectively
4,493,763
4,495,073
Accumulated other comprehensive income (loss)
(4,698
)
10,006
Distributions greater than net income
(1,198,052
)
(1,096,069
)
Total Shareholders' Equity
3,291,013
3,409,010
Total Liabilities and Shareholders' Equity
$
4,942,411
$
4,928,672
__________
Note: The Consolidated Balance Sheets and corresponding footnotes can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Apple Hospitality REIT, Inc. Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data) Three Months Ended Years Ended December 31, (Unaudited) December 31,2019
2018
2019
2018
Revenues: Room$
265,208
$
270,679
$
1,167,203
$
1,172,331
Food and beverage
15,029
15,743
59,815
62,600
Other
9,734
8,833
39,579
35,624
Total revenue
289,971
295,255
1,266,597
1,270,555
Expenses: Hotel operating expense: Operating
75,986
76,849
312,449
315,363
Hotel administrative
25,307
24,637
103,895
102,019
Sales and marketing
27,800
25,069
116,089
105,834
Utilities
9,463
9,781
40,598
42,474
Repair and maintenance
13,358
12,680
52,695
51,813
Franchise fees
12,491
12,654
54,862
54,494
Management fees
9,779
10,156
43,828
43,937
Total hotel operating expense
174,184
171,826
724,416
715,934
Property taxes, insurance and other
18,623
19,500
75,840
74,640
Operating ground lease
405
2,784
1,658
11,364
General and administrative
10,726
7,326
36,210
24,294
Loss on impairment of depreciable real estate assets
-
-
6,467
3,135
Depreciation and amortization
49,294
46,730
193,240
183,482
Total expense
253,232
248,166
1,037,831
1,012,849
Gain on sale of real estate
3,969
152
5,021
152
Operating income
40,708
47,241
233,787
257,858
Interest and other expense, net
(15,081
)
(12,916
)
(61,191
)
(51,185
)
Income before income taxes
25,627
34,325
172,596
206,673
Income tax expense
(174
)
(173
)
(679
)
(587
)
Net income$
25,453
$
34,152
$
171,917
$
206,086
Other comprehensive income (loss): Interest rate derivatives
5,653
(9,461
)
(14,704
)
228
Comprehensive income
$
31,106
$
24,691
$
157,213
$
206,314
Basic and diluted net income per common share
$
0.11
$
0.15
$
0.77
$
0.90
Weighted average common shares outstanding - basic and diluted
223,906
227,455
223,910
229,659
__________
Note: The Consolidated Statements of Operations and Comprehensive Income and corresponding footnotes can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Apple Hospitality REIT, Inc. Comparable Hotels Operating Metrics and Statistical Data (Unaudited) (in thousands except statistical data) Three Months Ended Years Ended December 31, December 31,2019
2018
% Change2019
2018
% Change Total revenue$
286,996
$
287,879
(0.3%)
$
1,250,545
$
1,241,346
0.7%
Total operating expenses
191,262
187,909
1.8%
791,072
777,755
1.7%
Adjusted Hotel EBITDA$
95,734
$
99,970
(4.2%)
$
459,473
$
463,591
(0.9%)
Adjusted Hotel EBITDA Margin %
33.4
%
34.7
%
(130 bps)
36.7
%
37.3
%
(60 bps)
ADR (Comparable Hotels)$
131.47
$
133.09
(1.2%)
$
137.70
$
137.43
0.2%
Occupancy (Comparable Hotels)
72.9
%
72.7
%
0.3%
77.1
%
77.2
%
(0.1%)
RevPAR (Comparable Hotels)$
95.82
$
96.72
(0.9%)
$
106.12
$
106.07
-
ADR (Actual)$
131.41
$
131.93
(0.4%)
$
137.30
$
136.04
0.9%
Occupancy (Actual)
72.9
%
72.5
%
0.6%
77.0
%
76.9
%
0.1%
RevPAR (Actual)$
95.85
$
95.63
0.2%
$
105.72
$
104.66
1.0%
Reconciliation to Actual Results Total Revenue (Actual)$
289,971
$
295,255
$
1,266,597
$
1,270,555
Revenue from acquisitions prior to ownership
73
3,098
3,363
17,974
Revenue from dispositions/assets held for sale
(2,982
)
(10,408
)
(19,151
)
(46,919
)
Lease revenue intangible amortization
(66
)
(66
)
(264
)
(264
)
Comparable Hotels Total Revenue$
286,996
$
287,879
$
1,250,545
$
1,241,346
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
96,836
$
102,157
$
464,995
$
472,806
AHEBITDA from acquisitions prior to ownership
(1
)
818
613
5,721
AHEBITDA from dispositions/assets held for sale
(1,101
)
(3,005
)
(6,135
)
(14,936
)
Comparable Hotels AHEBITDA$
95,734
$
99,970
$
459,473
$
463,591
__________
Note: Comparable Hotels is defined as the 232 hotels owned and held for use by the Company as of December 31, 2019. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions and assets held for sale, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.
Reconciliation of net income to non-GAAP financial measures and a discussion of the Company’s adoption of Accounting Standards Update No. 2016-02, Leases, on January 1, 2019 are included in the following pages.
Apple Hospitality REIT, Inc. Comparable Hotels Quarterly Operating Metrics and Statistical Data (Unaudited) (in thousands except statistical data) Three Months Ended 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Total revenue$
292,351
$
336,366
$
324,750
$
287,879
$
294,921
$
338,841
$
329,787
$
286,996
Total operating expenses
187,132
201,705
201,009
187,909
189,292
204,760
205,758
191,262
Adjusted Hotel EBITDA
$
105,219
$
134,661
$
123,741
$
99,970
$
105,629
$
134,081
$
124,029
$
95,734
Adjusted Hotel EBITDA Margin %
36.0
%
40.0
%
38.1
%
34.7
%
35.8
%
39.6
%
37.6
%
33.4
%
ADR (Comparable Hotels)$
135.62
$
141.15
$
139.26
$
133.09
$
137.30
$
141.83
$
139.56
$
131.47
Occupancy (Comparable Hotels)
74.9
%
81.9
%
79.2
%
72.7
%
74.0
%
81.5
%
79.9
%
72.9
%
RevPAR (Comparable Hotels)$
101.60
$
115.67
$
110.29
$
96.72
$
101.55
$
115.55
$
111.53
$
95.82
ADR (Actual)
$
134.32
$
139.58
$
137.77
$
131.93
$
136.36
$
141.60
$
139.21
$
131.41
Occupancy (Actual)
74.6
%
81.7
%
78.9
%
72.5
%
73.9
%
81.4
%
79.9
%
72.9
%
RevPAR (Actual)$
100.18
$
114.09
$
108.70
$
95.63
$
100.71
$
115.30
$
111.17
$
95.85
Reconciliation to Actual Results Total Revenue (Actual)
$
298,389
$
344,714
$
332,197
$
295,255
$
303,787
$
341,117
$
331,722
$
289,971
Revenue from acquisitions prior to ownership
6,403
4,957
3,516
3,098
1,817
798
675
73
Revenue from dispositions/assets held for sale
(12,375
)
(13,239
)
(10,897
)
(10,408
)
(10,617
)
(3,008
)
(2,544
)
(2,982
)
Lease revenue intangible amortization
(66
)
(66
)
(66
)
(66
)
(66
)
(66
)
(66
)
(66
)
Comparable Hotels Total Revenue$
292,351
$
336,366
$
324,750
$
287,879
$
294,921
$
338,841
$
329,787
$
286,996
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
107,091
$
137,636
$
125,922
$
102,157
$
108,804
$
134,759
$
124,596
$
96,836
AHEBITDA from acquisitions prior to ownership
2,332
1,612
959
818
391
166
57
(1
)
AHEBITDA from dispositions/assets held for sale
(4,204
)
(4,587
)
(3,140
)
(3,005
)
(3,566
)
(844
)
(624
)
(1,101
)
Comparable Hotels AHEBITDA$
105,219
$
134,661
$
123,741
$
99,970
$
105,629
$
134,081
$
124,029
$
95,734
__________
Note: Comparable Hotels is defined as the 232 hotels owned and held for use by the Company as of December 31, 2019. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions and assets held for sale, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.
Reconciliation of net income to non-GAAP financial measures and a discussion of the Company’s adoption of Accounting Standards Update No. 2016-02, Leases, on January 1, 2019 are included in the following pages.
Apple Hospitality REIT, Inc. Same Store Hotels Operating Metrics and Statistical Data (Unaudited) (in thousands except statistical data) Three Months Ended Years Ended December 31, December 31,2019
2018
% Change2019
2018
% Change Total revenue$
275,903
$
277,898
(0.7%)
$
1,206,575
$
1,203,265
0.3%
Total operating expenses
184,037
181,597
1.3%
762,465
753,718
1.2%
Adjusted Hotel EBITDA$
91,866
$
96,301
(4.6%)
$
444,110
$
449,547
(1.2%)
Adjusted Hotel EBITDA Margin %
33.3
%
34.7
%
(140 bps)
36.8
%
37.4
%
(60 bps)
ADR (Same Store Hotels)$
131.14
$
132.55
(1.1%)
$
137.42
$
137.10
0.2%
Occupancy (Same Store Hotels)
72.8
%
72.8
%
-
77.2
%
77.3
%
(0.1%)
RevPAR (Same Store Hotels)$
95.53
$
96.45
(1.0%)
$
106.11
$
105.98
0.1%
ADR (Actual)$
131.41
$
131.93
(0.4%)
$
137.30
$
136.04
0.9%
Occupancy (Actual)
72.9
%
72.5
%
0.6%
77.0
%
76.9
%
0.1%
RevPAR (Actual)$
95.85
$
95.63
0.2%
$
105.72
$
104.66
1.0%
Reconciliation to Actual Results Total Revenue (Actual)$
289,971
$
295,255
$
1,266,597
$
1,270,555
Revenue from acquisitions
(11,020
)
(6,883
)
(40,607
)
(20,107
)
Revenue from dispositions/assets held for sale
(2,982
)
(10,408
)
(19,151
)
(46,919
)
Lease revenue intangible amortization
(66
)
(66
)
(264
)
(264
)
Same Store Hotels Total Revenue$
275,903
$
277,898
$
1,206,575
$
1,203,265
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
96,836
$
102,157
$
464,995
$
472,806
AHEBITDA from acquisitions
(3,869
)
(2,851
)
(14,750
)
(8,323
)
AHEBITDA from dispositions/assets held for sale
(1,101
)
(3,005
)
(6,135
)
(14,936
)
Same Store Hotels AHEBITDA$
91,866
$
96,301
$
444,110
$
449,547
__________
Note: Same Store Hotels is defined as the 224 hotels owned and held for use by the Company as of January 1, 2018 and during the entirety of the periods being compared. This information has not been audited.
Reconciliation of net income to non-GAAP financial measures and a discussion of the Company’s adoption of Accounting Standards Update No. 2016-02, Leases, on January 1, 2019 are included in the following pages.
Apple Hospitality REIT, Inc. Same Store Hotels Quarterly Operating Metrics and Statistical Data (Unaudited) (in thousands except statistical data) Three Months Ended 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Total revenue$
283,558
$
326,703
$
315,106
$
277,898
$
283,876
$
327,791
$
319,005
$
275,903
Total operating expenses
181,764
195,617
194,740
181,597
182,563
197,448
198,417
184,037
Adjusted Hotel EBITDA
$
101,794
$
131,086
$
120,366
$
96,301
$
101,313
$
130,343
$
120,588
$
91,866
Adjusted Hotel EBITDA Margin %
35.9
%
40.1
%
38.2
%
34.7
%
35.7
%
39.8
%
37.8
%
33.3
%
ADR (Same Store Hotels)$
135.07
$
140.91
$
139.23
$
132.55
$
136.28
$
141.74
$
139.80
$
131.14
Occupancy (Same Store Hotels)
74.8
%
82.2
%
79.4
%
72.8
%
74.1
%
81.8
%
80.1
%
72.8
%
RevPAR (Same Store Hotels)$
101.09
$
115.79
$
110.60
$
96.45
$
101.01
$
115.97
$
111.93
$
95.53
ADR (Actual)
$
134.32
$
139.58
$
137.77
$
131.93
$
136.36
$
141.60
$
139.21
$
131.41
Occupancy (Actual)
74.6
%
81.7
%
78.9
%
72.5
%
73.9
%
81.4
%
79.9
%
72.9
%
RevPAR (Actual)$
100.18
$
114.09
$
108.70
$
95.63
$
100.71
$
115.30
$
111.17
$
95.85
Reconciliation to Actual Results Total Revenue (Actual)
$
298,389
$
344,714
$
332,197
$
295,255
$
303,787
$
341,117
$
331,722
$
289,971
Revenue from acquisitions
(2,390
)
(4,706
)
(6,128
)
(6,883
)
(9,228
)
(10,252
)
(10,107
)
(11,020
)
Revenue from dispositions/assets held for sale
(12,375
)
(13,239
)
(10,897
)
(10,408
)
(10,617
)
(3,008
)
(2,544
)
(2,982
)
Lease revenue intangible amortization
(66
)
(66
)
(66
)
(66
)
(66
)
(66
)
(66
)
(66
)
Same Store Hotels Total Revenue$
283,558
$
326,703
$
315,106
$
277,898
$
283,876
$
327,791
$
319,005
$
275,903
Adjusted Hotel EBITDA (AHEBITDA) (Actual)
$
107,091
$
137,636
$
125,922
$
102,157
$
108,804
$
134,759
$
124,596
$
96,836
AHEBITDA from acquisitions
(1,093
)
(1,963
)
(2,416
)
(2,851
)
(3,925
)
(3,572
)
(3,384
)
(3,869
)
AHEBITDA from dispositions/assets held for sale
(4,204
)
(4,587
)
(3,140
)
(3,005
)
(3,566
)
(844
)
(624
)
(1,101
)
Same Store Hotels AHEBITDA$
101,794
$
131,086
$
120,366
$
96,301
$
101,313
$
130,343
$
120,588
$
91,866
__________
Note: Same Store Hotels is defined as the 224 hotels owned and held for use by the Company as of January 1, 2018 and during the entirety of the periods being compared. This information has not been audited.
Reconciliation of net income to non-GAAP financial measures and a discussion of the Company’s adoption of Accounting Standards Update No. 2016-02, Leases, on January 1, 2019 are included in the following pages.
Apple Hospitality REIT, Inc.
Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA
(Unaudited)
(in thousands)
EBITDA is a commonly used measure of performance in many industries and is defined as net income excluding interest, income taxes, depreciation and amortization. The Company believes EBITDA is useful to investors because it helps the Company and its investors evaluate the ongoing operating performance of the Company by removing the impact of its capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). In addition, certain covenants included in the agreements governing the Company’s indebtedness use EBITDA, as defined in the specific credit agreement, as a measure of financial compliance.
In addition to EBITDA, the Company also calculates and presents EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), which defines EBITDAre as EBITDA, excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), plus real estate related impairments, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. The Company presents EBITDAre because it believes that it provides further useful information to investors in comparing its operating performance between periods and between REITs that report EBITDAre using the Nareit definition.
The Company also considers the exclusion of non-cash straight-line operating ground lease expense from EBITDAre useful, as this expense does not reflect the underlying performance of the related hotels (Adjusted EBITDAre).
The Company further excludes actual corporate-level general and administrative expense for the Company from Adjusted EBITDAre (Adjusted Hotel EBITDA) to isolate property-level operational performance over which the Company’s hotel operators have direct control. The Company believes Adjusted Hotel EBITDA provides useful supplemental information to investors regarding operating performance and is used by management to measure the performance of the Company’s hotels and effectiveness of the operators of the hotels.
The following table reconciles the Company’s GAAP net income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA on a quarterly basis from March 31, 2018 through December 31, 2019.
Three Months Ended3/31/2018
6/30/2018
9/30/2018
12/31/2018
3/31/2019
6/30/2019
9/30/2019
12/31/2019
Net income$
42,182
$
67,630
$
62,122
$
34,152
$
38,151
$
62,090
$
46,223
$
25,453
Depreciation and amortization
44,840
45,743
46,169
46,730
47,950
48,109
47,887
49,294
Amortization of favorable and unfavorable operating leases, net
206
148
146
147
31
31
31
31
Interest and other expense, net
11,919
13,210
13,140
12,916
15,494
15,857
14,759
15,081
Income tax expense
163
151
100
173
206
156
143
174
EBITDA
99,310
126,882
121,677
94,118
101,832
126,243
109,043
90,033
(Gain) loss on sale of real estate
-
-
-
(152
)
(1,213
)
161
-
(3,969
)
Loss on impairment of depreciable real estate assets
-
3,135
-
-
-
-
6,467
-
EBITDAre
99,310
130,017
121,677
93,966
100,619
126,404
115,510
86,064
Non-cash straight-line operating ground lease expense
904
898
875
865
48
47
47
46
Adjusted EBITDAre
$
100,214
$
130,915
$
122,552
$
94,831
$
100,667
$
126,451
$
115,557
$
86,110
General and administrative expense
6,877
6,721
3,370
7,326
8,137
8,308
9,039
10,726
Adjusted Hotel EBITDA
$
107,091
$
137,636
$
125,922
$
102,157
$
108,804
$
134,759
$
124,596
$
96,836
Cash operating ground lease expense for leases classified as financing leases effective January 1, 2019(1)
$
1,405
$
1,410
$
1,432
$
1,443
$
-
$
-
$
-
$
-
__________
(1)
Represents cash lease payments recorded to operating ground lease expense related to four of the Company's ground leases that were classified as operating leases during the noted period. Under the new lease accounting standard, effective January 1, 2019, these four ground leases are classified as finance leases, for which the Company recognizes depreciation and amortization expense and interest and other expense, net in the Company's consolidated statements of operations, instead of operating ground lease expense. Depreciation and amortization and interest expense are excluded from EBITDA and operating ground lease expense is included in EBITDA.Apple Hospitality REIT, Inc.
Reconciliation of Net Income to FFO and MFFO
(Unaudited)
(in thousands)
The Company calculates and presents FFO in accordance with standards established by Nareit, which defines FFO as net income (computed in accordance with GAAP), excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), extraordinary items as defined by GAAP, and the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated affiliates. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company further believes that by excluding the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that report FFO using the Nareit definition. FFO as presented by the Company is applicable only to its common shareholders, but does not represent an amount that accrues directly to common shareholders.
The Company calculates MFFO by further adjusting FFO for the exclusion of amortization of finance ground lease assets, amortization of favorable and unfavorable operating leases, net and non-cash straight-line operating ground lease expense, as these expenses do not reflect the underlying performance of the related hotels. The Company presents MFFO when evaluating its performance because it believes that it provides further useful supplemental information to investors regarding its ongoing operating performance.
The following table reconciles the Company’s GAAP net income to FFO and MFFO for the three months and years ended December 31, 2019 and 2018.
Three Months Ended
December 31,
Years Ended
December 31,
2019
2018
2019
2018
Net income$
25,453
$
34,152
$
171,917
$
206,086
Depreciation of real estate owned
47,441
46,490
187,729
182,527
Gain on sale of real estate
(3,969
)
(152
)
(5,021
)
(152
)
Loss on impairment of depreciable real estate assets
-
-
6,467
3,135
Funds from operations
68,925
80,490
361,092
391,596
Amortization of finance ground lease assets
1,602
-
4,517
-
Amortization of favorable and unfavorable operating leases, net
31
147
124
647
Non-cash straight-line operating ground lease expense
46
865
188
3,542
Modified funds from operations
$
70,604
$
81,502
$
365,921
$
395,785
Apple Hospitality REIT, Inc.
2020 Guidance Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre
(Unaudited)
(in thousands)
The guidance of net income, EBITDA, EBITDAre and Adjusted EBITDAre (and all other guidance given) are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although the Company believes the expectations reflected in the forecasts are based upon reasonable assumptions, there can be no assurance that the expectations will be achieved or that the results will not be materially different. Risks that may affect these assumptions and forecasts include, but are not limited to, the following: changes in political, economic, competitive and specific market conditions; the amount and timing of acquisitions and dispositions of hotel properties; the level of capital expenditures may change significantly, which will directly affect the level of depreciation expense, interest expense and net income; the amount and timing of debt repayments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving the Company's common stock may change based on market conditions; and other risks and uncertainties associated with the Company's business described herein and in filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2019.
The following table reconciles the Company’s GAAP net income guidance to EBITDA, EBITDAre and Adjusted EBITDAre guidance for the year ending December 31, 2020.
Year Ending December 31, 2020
Low-End
High-End
Net income$
134,200
$
161,000
Depreciation and amortization
202,000
199,000
Amortization of favorable and unfavorable leases, net
400
400
Interest and other expense, net
64,000
61,000
Income tax expense
600
800
EBITDA
401,200
422,200
Gain on sale of real estate
(7,500
)
(8,500
)
EBITDAre
393,700
413,700
Non-cash straight-line operating ground lease expense
300
300
Adjusted EBITDAre
$
394,000
$
414,000
Apple Hospitality REIT, Inc.
Debt Summary
(Unaudited)
($ in thousands)
December 31, 2019
2020
2021
2022
2023
2024
Thereafter
Total
Fair Market
Value
$
28,349
$
47,586
$
160,152
$
295,615
$
337,981
$
456,184
$
1,325,867
$
1,333,638
Average interest rates (1)
3.6%
3.6%
3.5%
3.5%
3.6%
3.8%
Variable rate debt: Maturities$
-
$
-
$
50,900
$
250,000
$
310,000
$
260,000
$
870,900
$
870,719
Average interest rates (1)
3.2%
3.2%
3.2%
3.3%
3.4%
3.5%
Fixed rate debt: Maturities$
28,349
$
47,586
$
109,252
$
45,615
$
27,981
$
196,184
$
454,967
$
462,919
Average interest rates
4.4%
4.4%
4.2%
4.1%
4.1%
4.0%
________ (1) The average interest rate gives effect to interest rate swaps, as applicable.Note: See further information on the Company’s indebtedness in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Market
Three Months ended December 31
(Unaudited)
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
Top 20 Markets Los Angeles/Long Beach, CA8
87.3%
89.0%
(1.9)%
$171.23
$168.09
1.9%
$149.48
$149.63
(0.1)%
7.2%
Phoenix, AZ9
74.0%
73.4%
0.8%
$125.51
$121.17
3.6%
$92.83
$88.90
4.4%
4.6%
San Diego, CA7
71.1%
74.6%
(4.7)%
$136.46
$144.66
(5.7)%
$97.08
$107.98
(10.1)%
4.1%
Anaheim/Santa Ana, CA6
80.4%
82.2%
(2.2)%
$137.12
$135.65
1.1%
$110.28
$111.50
(1.1)%
4.1%
Nashville, TN5
79.9%
79.5%
0.4%
$163.43
$169.63
(3.7)%
$130.51
$134.92
(3.3)%
3.9%
Chicago, IL8
70.2%
69.0%
1.8%
$126.79
$129.49
(2.1)%
$89.00
$89.32
(0.4)%
3.3%
Seattle, WA3
79.6%
78.0%
2.1%
$165.24
$165.26
(0.0)%
$131.58
$128.85
2.1%
2.8%
Dallas, TX8
70.5%
67.9%
3.8%
$116.84
$118.47
(1.4)%
$82.36
$80.42
2.4%
2.7%
Florida Panhandle5
70.5%
52.9%
33.4%
$129.10
$137.26
(5.9)%
$91.08
$72.60
25.4%
2.5%
Richmond/Petersburg, VA5
65.3%
67.2%
(2.8)%
$145.45
$149.54
(2.7)%
$95.01
$100.47
(5.4)%
2.4%
Austin, TX7
68.9%
64.5%
6.9%
$119.63
$120.40
(0.6)%
$82.44
$77.62
6.2%
2.2%
Fort Worth/Arlington, TX5
75.7%
68.4%
10.6%
$126.85
$134.25
(5.5)%
$96.05
$91.88
4.5%
2.1%
Orlando, FL3
84.1%
80.7%
4.2%
$118.74
$105.12
13.0%
$99.82
$84.78
17.7%
2.0%
Washington, DC-MD-VA4
72.5%
72.2%
0.4%
$129.89
$119.52
8.7%
$94.22
$86.31
9.2%
1.8%
North Carolina East5
70.5%
80.5%
(12.4)%
$109.10
$119.32
(8.6)%
$76.89
$96.00
(19.9)%
1.7%
Denver, CO3
69.7%
74.9%
(7.0)%
$144.25
$138.62
4.1%
$100.49
$103.83
(3.2)%
1.7%
Alabama South6
67.2%
71.6%
(6.2)%
$119.04
$120.75
(1.4)%
$80.00
$86.46
(7.5)%
1.6%
Oklahoma City, OK4
67.0%
69.7%
(3.8)%
$127.61
$123.23
3.6%
$85.50
$85.85
(0.4)%
1.6%
Miami/Hialeah, FL3
85.7%
79.0%
8.5%
$130.96
$143.66
(8.8)%
$112.27
$113.48
(1.1)%
1.6%
Idaho2
69.3%
68.9%
0.6%
$132.15
$123.26
7.2%
$91.64
$84.95
7.9%
1.6%
Top 20 Markets106
73.9%
73.4%
0.6%
$134.72
$135.81
(0.8)%
$99.51
$99.68
(0.2)%
55.5%
All Other Markets New York, NY1
97.0%
97.2%
(0.2)%
$303.79
$303.55
0.1%
$294.55
$294.94
(0.1)%
1.5%
Houston, TX6
61.8%
60.9%
1.5%
$112.22
$115.06
(2.5)%
$69.40
$70.09
(1.0)%
1.4%
Fort Lauderdale, FL2
86.3%
86.1%
0.2%
$133.38
$131.21
1.7%
$115.08
$112.98
1.9%
1.4%
Portland, ME1
85.4%
74.6%
14.5%
$157.54
$161.89
(2.7)%
$134.52
$120.73
11.4%
1.2%
Birmingham, AL4
76.3%
72.0%
5.9%
$119.03
$118.54
0.4%
$90.79
$85.36
6.4%
1.2%
Omaha, NE4
65.3%
66.2%
(1.3)%
$110.70
$111.85
(1.0)%
$72.32
$74.04
(2.3)%
1.2%
Kansas City, MO-KS5
71.5%
72.5%
(1.4)%
$114.57
$117.17
(2.2)%
$81.96
$84.99
(3.6)%
1.2%
Alaska2
75.2%
76.1%
(1.1)%
$148.19
$150.85
(1.8)%
$111.48
$114.79
(2.9)%
1.2%
Memphis, TN-AR-MS2
76.8%
74.5%
3.0%
$153.97
$156.77
(1.8)%
$118.20
$116.81
1.2%
1.2%
Philadelphia, PA-NJ3
70.1%
69.8%
0.4%
$136.71
$135.89
0.6%
$95.85
$94.86
1.0%
1.2%
Atlanta, GA3
69.0%
73.8%
(6.6)%
$146.09
$147.02
(0.6)%
$100.74
$108.56
(7.2)%
1.2%
Texas West2
80.8%
90.0%
(10.2)%
$126.93
$111.33
14.0%
$102.53
$100.17
2.4%
1.2%
Boston, MA4
65.8%
80.8%
(18.6)%
$130.36
$151.29
(13.8)%
$85.74
$122.26
(29.9)%
1.1%
Indiana North3
61.1%
62.7%
(2.5)%
$152.86
$143.03
6.9%
$93.37
$89.62
4.2%
1.1%
Alabama North4
73.0%
71.7%
1.9%
$113.07
$110.29
2.5%
$82.54
$79.05
4.4%
1.1%
San Jose/Santa Cruz, CA1
82.6%
82.0%
0.7%
$219.83
$230.57
(4.7)%
$181.60
$189.15
(4.0)%
1.1%
Melbourne/Titusville, FL1
89.9%
84.0%
7.1%
$153.18
$150.38
1.9%
$137.73
$126.25
9.1%
1.1%
Arkansas Area3
72.4%
61.9%
16.9%
$117.17
$127.70
(8.2)%
$84.77
$79.07
7.2%
1.1%
Knoxville, TN3
75.5%
76.1%
(0.7)%
$112.92
$111.33
1.4%
$85.26
$84.68
0.7%
1.1%
New Orleans, LA1
79.6%
77.5%
2.6%
$174.39
$190.38
(8.4)%
$138.80
$147.64
(6.0)%
1.0%
St Louis, MO-IL2
71.1%
67.4%
5.5%
$137.64
$134.33
2.5%
$97.81
$90.48
8.1%
1.0%
Newark, NJ2
76.7%
84.8%
(9.4)%
$149.38
$154.23
(3.1)%
$114.65
$130.71
(12.3)%
0.9%
Sacramento, CA1
89.3%
82.7%
7.9%
$149.63
$152.45
(1.8)%
$133.58
$126.11
5.9%
0.9%
Tucson, AZ3
75.1%
76.1%
(1.4)%
$105.18
$104.30
0.8%
$78.94
$79.35
(0.5)%
0.9%
California South/Central3
80.8%
78.3%
3.2%
$126.70
$125.66
0.8%
$102.38
$98.40
4.0%
0.8%
Texas East2
87.4%
78.3%
11.7%
$105.63
$99.62
6.0%
$92.36
$78.00
18.4%
0.7%
Minneapolis/St Paul, MN-WI2
66.4%
68.3%
(2.8)%
$131.66
$134.17
(1.9)%
$87.39
$91.59
(4.6)%
0.7%
Salt Lake City/Ogden, UT2
69.7%
65.6%
6.3%
$109.73
$111.22
(1.3)%
$76.53
$72.98
4.9%
0.7%
Syracuse, NY2
64.1%
64.0%
0.2%
$145.17
$151.66
(4.3)%
$93.12
$97.13
(4.1)%
0.7%
Riverside & San Bernardino, CA1
86.6%
87.3%
(0.7)%
$169.79
$160.27
5.9%
$147.04
$139.84
5.1%
0.7%
Florida Central3
71.4%
73.0%
(2.3)%
$118.22
$125.15
(5.5)%
$84.38
$91.39
(7.7)%
0.7%
Columbia, SC2
76.6%
76.8%
(0.2)%
$110.37
$115.88
(4.8)%
$84.60
$89.04
(5.0)%
0.6%
Iowa Area3
70.9%
68.6%
3.3%
$106.87
$109.34
(2.3)%
$75.79
$75.05
1.0%
0.6%
Tennessee Area2
78.2%
74.1%
5.5%
$119.75
$116.26
3.0%
$93.61
$86.15
8.7%
0.6%
Norfolk/Virginia Beach, VA4
65.4%
68.7%
(4.8)%
$104.25
$103.41
0.8%
$68.20
$71.06
(4.0)%
0.6%
Virginia Area1
58.2%
59.5%
(2.2)%
$165.42
$164.19
0.7%
$96.23
$97.71
(1.5)%
0.6%
Long Island1
79.4%
82.7%
(4.0)%
$143.34
$139.52
2.7%
$113.86
$115.38
(1.3)%
0.6%
Greensboro/Winston Salem, NC2
73.9%
71.3%
3.7%
$116.75
$123.20
(5.2)%
$86.33
$87.84
(1.7)%
0.5%
Ohio Area1
69.6%
64.4%
8.0%
$113.68
$119.74
(5.1)%
$79.08
$77.16
2.5%
0.5%
Bergen/Passaic, NJ1
81.0%
84.4%
(4.0)%
$142.10
$136.29
4.3%
$115.11
$115.01
0.1%
0.5%
Central New Jersey1
68.8%
66.4%
3.6%
$131.43
$134.71
(2.4)%
$90.44
$89.47
1.1%
0.5%
Louisiana South2
61.9%
64.2%
(3.7)%
$106.28
$107.32
(1.0)%
$65.73
$68.92
(4.6)%
0.5%
Tampa/St Petersburg, FL1
82.9%
82.8%
0.1%
$134.59
$135.97
(1.0)%
$111.57
$112.64
(1.0)%
0.4%
West Palm Beach/Boca Raton, FL1
80.6%
67.8%
18.9%
$113.07
$118.11
(4.3)%
$91.17
$80.07
13.9%
0.4%
Macon/Warner Robins, GA1
74.3%
78.2%
(5.0)%
$133.80
$132.07
1.3%
$99.46
$103.28
(3.7)%
0.4%
Detroit, MI1
65.5%
65.9%
(0.6)%
$124.91
$138.82
(10.0)%
$81.78
$91.44
(10.6)%
0.4%
Portland, OR1
66.6%
71.0%
(6.1)%
$121.11
$126.91
(4.6)%
$80.70
$90.06
(10.4)%
0.4%
Raleigh/Durham/Chapel Hill, NC1
70.2%
77.5%
(9.5)%
$125.80
$123.15
2.2%
$88.28
$95.45
(7.5)%
0.3%
Mississippi2
66.9%
66.8%
0.1%
$99.43
$99.96
(0.5)%
$66.48
$66.79
(0.5)%
0.3%
Charlotte, NC-SC2
72.1%
66.8%
8.0%
$95.21
$106.91
(10.9)%
$68.69
$71.38
(3.8)%
0.3%
Utah Area1
65.3%
61.8%
5.7%
$107.67
$112.23
(4.1)%
$70.26
$69.31
1.4%
0.3%
Baltimore, MD1
62.9%
60.2%
4.5%
$122.31
$124.85
(2.0)%
$76.99
$75.20
2.4%
0.3%
Georgia South1
69.6%
85.2%
(18.4)%
$107.48
$124.61
(13.7)%
$74.76
$106.21
(29.6)%
0.3%
Pittsburgh, PA1
55.5%
61.5%
(9.8)%
$127.58
$126.40
0.9%
$70.83
$77.79
(9.0)%
0.2%
Charleston, SC1
62.6%
71.5%
(12.4)%
$117.79
$110.95
6.2%
$73.73
$79.29
(7.0)%
0.2%
Savannah, GA1
84.3%
81.6%
3.2%
$115.44
$120.10
(3.9)%
$97.26
$98.01
(0.8)%
0.2%
Minnesota1
68.8%
57.0%
20.7%
$115.49
$110.02
5.0%
$79.48
$62.73
26.7%
0.2%
Chattanooga, TN-GA1
82.7%
86.1%
(4.0)%
$115.22
$114.35
0.8%
$95.23
$98.44
(3.3)%
0.2%
San Antonio, TX1
75.9%
63.3%
19.9%
$87.40
$93.37
(6.4)%
$66.34
$59.12
12.2%
0.2%
Colorado Springs, CO1
64.2%
71.4%
(10.1)%
$122.46
$119.62
2.4%
$78.63
$85.39
(7.9)%
0.2%
Indianapolis, IN1
61.9%
61.8%
0.1%
$109.76
$114.02
(3.7)%
$67.91
$70.51
(3.7)%
0.2%
South Carolina Area1
68.9%
59.3%
16.3%
$107.34
$113.47
(5.4)%
$74.01
$67.28
10.0%
0.2%
Cincinnati, OH-KY-IN1
62.9%
66.8%
(5.9)%
$110.13
$115.02
(4.3)%
$69.28
$76.89
(9.9)%
0.2%
Mobile, AL1
66.2%
64.0%
3.4%
$95.81
$102.46
(6.5)%
$63.45
$65.60
(3.3)%
0.1%
Greenville/Spartanburg, SC1
66.7%
67.1%
(0.7)%
$109.99
$125.79
(12.6)%
$73.31
$84.40
(13.1)%
0.1%
Kansas1
62.0%
62.3%
(0.5)%
$95.46
$92.51
3.2%
$59.18
$57.66
2.6%
0.1%
Jacksonville, FL2
67.7%
73.9%
(8.3)%
$109.84
$121.99
(10.0)%
$74.42
$90.10
(17.4)%
(0.2)%
All Other Markets126
71.9%
72.0%
(0.1)%
$128.21
$130.41
(1.7)%
$92.22
$93.85
(1.7)%
44.5%
Total Portfolio232
72.9%
72.7%
0.3%
$131.47
$133.09
(1.2)%
$95.82
$96.72
(0.9)%
100.0%
Note: Market categorization based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Market
Years ended December 31
(Unaudited)
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
Top 20 Markets Los Angeles/Long Beach, CA8
88.1%
90.0%
(2.2)%
$176.57
$171.66
2.9%
$155.49
$154.53
0.6%
6.7%
San Diego, CA7
78.9%
80.7%
(2.2)%
$155.45
$154.16
0.8%
$122.62
$124.34
(1.4)%
5.3%
Phoenix, AZ9
73.9%
72.6%
1.8%
$130.98
$122.54
6.9%
$96.83
$88.97
8.8%
4.1%
Anaheim/Santa Ana, CA6
83.3%
84.4%
(1.2)%
$146.59
$146.63
(0.0)%
$122.18
$123.75
(1.3)%
4.0%
Nashville, TN5
83.6%
84.0%
(0.6)%
$165.13
$169.89
(2.8)%
$137.99
$142.75
(3.3)%
3.6%
Chicago, IL8
73.9%
74.2%
(0.5)%
$128.73
$130.00
(1.0)%
$95.13
$96.51
(1.4)%
3.3%
Seattle, WA3
84.1%
83.8%
0.4%
$190.01
$194.55
(2.3)%
$159.87
$163.05
(2.0)%
3.2%
Richmond/Petersburg, VA5
71.5%
73.4%
(2.6)%
$148.88
$148.74
0.1%
$106.38
$109.15
(2.5)%
2.5%
Florida Panhandle5
78.9%
71.6%
10.2%
$150.67
$124.61
20.9%
$118.87
$89.23
33.2%
2.5%
Dallas, TX8
72.3%
70.9%
2.0%
$120.19
$122.01
(1.5)%
$86.93
$86.54
0.5%
2.4%
North Carolina East5
81.4%
80.0%
1.8%
$129.64
$124.25
4.3%
$105.51
$99.39
6.2%
2.2%
Austin, TX7
73.0%
72.3%
0.9%
$121.21
$123.79
(2.1)%
$88.45
$89.55
(1.2)%
2.0%
Denver, CO3
77.9%
78.1%
(0.4)%
$152.50
$150.79
1.1%
$118.74
$117.83
0.8%
1.9%
Alaska2
84.7%
81.6%
3.8%
$196.16
$178.97
9.6%
$166.22
$146.11
13.8%
1.9%
Norfolk/Virginia Beach, VA4
76.2%
77.0%
(1.1)%
$148.59
$143.93
3.2%
$113.20
$110.82
2.1%
1.8%
Fort Worth/Arlington, TX5
76.4%
74.2%
2.9%
$130.76
$134.25
(2.6)%
$99.85
$99.63
0.2%
1.8%
Omaha, NE4
76.9%
71.2%
7.9%
$124.75
$129.09
(3.4)%
$95.93
$91.97
4.3%
1.7%
Oklahoma City, OK4
73.9%
74.5%
(0.8)%
$132.56
$133.08
(0.4)%
$97.95
$99.09
(1.1)%
1.7%
Washington, DC-MD-VA4
78.1%
77.1%
1.4%
$131.46
$129.05
1.9%
$102.69
$99.45
3.3%
1.7%
Alabama South6
75.2%
74.4%
1.1%
$120.12
$116.28
3.3%
$90.31
$86.46
4.4%
1.7%
Top 20 Markets108
77.7%
77.3%
0.5%
$143.72
$142.04
1.2%
$111.65
$109.76
1.7%
56.0%
All Other Markets Idaho2
76.9%
77.1%
(0.3)%
$131.52
$126.62
3.9%
$101.13
$97.65
3.6%
1.5%
Miami/Hialeah, FL3
84.4%
87.3%
(3.4)%
$135.50
$148.78
(8.9)%
$114.37
$129.96
(12.0)%
1.3%
Houston, TX6
63.1%
64.4%
(2.0)%
$117.60
$120.55
(2.4)%
$74.21
$77.65
(4.4)%
1.3%
Orlando, FL3
81.4%
83.1%
(2.0)%
$114.68
$121.18
(5.4)%
$93.31
$100.66
(7.3)%
1.3%
Atlanta, GA3
70.8%
75.9%
(6.8)%
$158.02
$149.71
5.6%
$111.82
$113.70
(1.6)%
1.3%
Kansas City, MO-KS5
76.0%
75.3%
0.9%
$116.86
$118.25
(1.2)%
$88.79
$89.01
(0.2)%
1.3%
Fort Lauderdale, FL2
87.8%
87.5%
0.3%
$137.52
$139.57
(1.5)%
$120.70
$122.11
(1.2)%
1.2%
Alabama North4
81.6%
76.2%
7.0%
$115.10
$112.08
2.7%
$93.88
$85.43
9.9%
1.2%
Portland, ME1
79.9%
78.4%
2.0%
$184.84
$180.55
2.4%
$147.74
$141.49
4.4%
1.2%
Birmingham, AL4
77.7%
74.6%
4.2%
$122.90
$116.85
5.2%
$95.49
$87.14
9.6%
1.1%
Boston, MA4
70.3%
76.4%
(8.0)%
$133.19
$137.46
(3.1)%
$93.67
$105.03
(10.8)%
1.1%
Arkansas Area3
76.2%
67.0%
13.8%
$122.67
$128.82
(4.8)%
$93.47
$86.28
8.3%
1.1%
San Jose/Santa Cruz, CA1
86.4%
89.2%
(3.2)%
$234.47
$232.47
0.9%
$202.48
$207.35
(2.3)%
1.1%
St Louis, MO-IL2
76.9%
73.8%
4.2%
$144.64
$144.73
(0.1)%
$111.28
$106.87
4.1%
1.0%
Philadelphia, PA-NJ3
71.7%
72.4%
(0.9)%
$141.62
$139.85
1.3%
$101.56
$101.19
0.4%
1.0%
Tucson, AZ3
80.4%
79.7%
0.9%
$110.05
$107.23
2.6%
$88.45
$85.46
3.5%
1.0%
Melbourne/Titusville, FL1
91.7%
90.6%
1.3%
$158.19
$154.38
2.5%
$145.04
$139.80
3.8%
0.9%
Texas West2
84.0%
80.2%
4.8%
$121.06
$115.16
5.1%
$101.74
$92.37
10.1%
0.9%
Memphis, TN-AR-MS2
77.2%
81.6%
(5.4)%
$150.96
$156.94
(3.8)%
$116.49
$128.01
(9.0)%
0.9%
Indiana North3
67.1%
72.8%
(7.8)%
$134.32
$138.47
(3.0)%
$90.19
$100.80
(10.5)%
0.9%
Salt Lake City/Ogden, UT2
76.2%
75.0%
1.6%
$122.01
$120.72
1.1%
$92.98
$90.56
2.7%
0.9%
Knoxville, TN3
77.7%
80.8%
(3.8)%
$110.96
$112.16
(1.1)%
$86.18
$90.58
(4.9)%
0.9%
California South/Central3
86.3%
84.6%
2.1%
$132.97
$130.43
1.9%
$114.78
$110.28
4.1%
0.9%
Newark, NJ2
80.1%
85.5%
(6.3)%
$150.23
$153.63
(2.2)%
$120.28
$131.28
(8.4)%
0.8%
Minneapolis/St Paul, MN-WI2
76.0%
73.8%
2.9%
$136.46
$142.83
(4.5)%
$103.67
$105.41
(1.7)%
0.8%
New Orleans, LA1
76.9%
78.3%
(1.9)%
$178.16
$179.33
(0.7)%
$136.92
$140.49
(2.5)%
0.8%
Sacramento, CA1
89.4%
87.1%
2.6%
$158.46
$154.90
2.3%
$141.69
$134.94
5.0%
0.8%
Syracuse, NY2
68.4%
72.1%
(5.1)%
$150.03
$147.18
1.9%
$102.64
$106.15
(3.3)%
0.7%
Columbia, SC2
81.3%
82.2%
(1.1)%
$114.92
$116.34
(1.2)%
$93.44
$95.65
(2.3)%
0.7%
Iowa Area3
76.0%
75.7%
0.3%
$111.78
$112.94
(1.0)%
$84.95
$85.53
(0.7)%
0.7%
Florida Central3
75.1%
77.9%
(3.6)%
$120.45
$129.09
(6.7)%
$90.45
$100.51
(10.0)%
0.7%
Long Island1
82.8%
84.4%
(2.0)%
$153.11
$149.46
2.4%
$126.70
$126.21
0.4%
0.6%
Texas East2
82.7%
83.2%
(0.6)%
$104.23
$106.00
(1.7)%
$86.21
$88.16
(2.2)%
0.6%
Tennessee Area2
80.3%
74.1%
8.4%
$121.11
$119.03
1.8%
$97.26
$88.22
10.2%
0.6%
Riverside & San Bernardino, CA1
86.6%
88.5%
(2.1)%
$169.58
$162.44
4.4%
$146.88
$143.74
2.2%
0.5%
New York, NY1
94.4%
93.9%
0.6%
$260.56
$257.49
1.2%
$246.05
$241.69
1.8%
0.5%
Virginia Area1
65.9%
72.6%
(9.2)%
$164.81
$165.52
(0.4)%
$108.60
$120.13
(9.6)%
0.5%
Louisiana South2
69.6%
69.1%
0.8%
$112.75
$112.13
0.6%
$78.48
$77.43
1.4%
0.5%
Greensboro/Winston Salem, NC2
76.4%
76.1%
0.5%
$116.69
$117.58
(0.8)%
$89.21
$89.46
(0.3)%
0.5%
Tampa/St Petersburg, FL1
85.3%
86.6%
(1.5)%
$148.10
$147.70
0.3%
$126.29
$127.91
(1.3)%
0.5%
Central New Jersey1
73.5%
71.8%
2.4%
$132.52
$132.99
(0.4)%
$97.39
$95.48
2.0%
0.5%
Jacksonville, FL2
75.6%
84.3%
(10.3)%
$120.40
$124.98
(3.7)%
$91.00
$105.37
(13.6)%
0.5%
Portland, OR1
73.1%
77.9%
(6.2)%
$134.88
$139.21
(3.1)%
$98.61
$108.49
(9.1)%
0.4%
Bergen/Passaic, NJ1
83.8%
82.7%
1.3%
$139.85
$139.15
0.5%
$117.20
$115.14
1.8%
0.4%
Macon/Warner Robins, GA1
82.3%
81.3%
1.2%
$134.23
$131.27
2.3%
$110.47
$106.79
3.5%
0.4%
Detroit, MI1
65.8%
72.0%
(8.7)%
$135.90
$141.84
(4.2)%
$89.43
$102.18
(12.5)%
0.4%
Ohio Area1
72.1%
68.3%
5.5%
$117.63
$122.02
(3.6)%
$84.81
$83.40
1.7%
0.4%
West Palm Beach/Boca Raton, FL1
80.5%
75.0%
7.4%
$120.51
$126.60
(4.8)%
$97.04
$94.93
2.2%
0.4%
Colorado Springs, CO1
78.4%
81.6%
(3.9)%
$143.17
$139.85
2.4%
$112.27
$114.08
(1.6)%
0.4%
Charlotte, NC-SC2
71.4%
72.0%
(0.8)%
$100.86
$105.10
(4.0)%
$72.03
$75.62
(4.8)%
0.3%
Charleston, SC1
76.2%
79.5%
(4.1)%
$119.75
$117.38
2.0%
$91.21
$93.26
(2.2)%
0.3%
Raleigh/Durham/Chapel Hill, NC1
78.2%
79.7%
(1.9)%
$125.04
$121.91
2.6%
$97.74
$97.12
0.6%
0.3%
South Carolina Area1
78.3%
76.8%
2.0%
$131.28
$134.47
(2.4)%
$102.82
$103.25
(0.4)%
0.3%
Georgia South1
78.2%
79.9%
(2.2)%
$107.44
$104.66
2.7%
$83.97
$83.65
0.4%
0.3%
Savannah, GA1
87.0%
83.5%
4.3%
$126.19
$128.03
(1.4)%
$109.80
$106.85
2.8%
0.3%
Mississippi2
67.3%
70.7%
(4.8)%
$100.38
$104.25
(3.7)%
$67.52
$73.69
(8.4)%
0.3%
Utah Area1
69.1%
71.4%
(3.1)%
$112.34
$116.09
(3.2)%
$77.67
$82.84
(6.3)%
0.2%
Pittsburgh, PA1
63.8%
66.3%
(3.8)%
$121.32
$122.09
(0.6)%
$77.39
$80.96
(4.4)%
0.2%
Indianapolis, IN1
67.0%
74.1%
(9.6)%
$118.89
$119.55
(0.6)%
$79.60
$88.55
(10.1)%
0.2%
Baltimore, MD1
65.8%
67.5%
(2.5)%
$120.44
$121.84
(1.1)%
$79.22
$82.22
(3.7)%
0.2%
Cincinnati, OH-KY-IN1
71.2%
70.8%
0.6%
$118.72
$123.35
(3.8)%
$84.51
$87.29
(3.2)%
0.2%
Minnesota1
73.2%
70.2%
4.3%
$115.20
$112.22
2.7%
$84.37
$78.79
7.1%
0.2%
San Antonio, TX1
75.3%
73.3%
2.7%
$94.64
$97.84
(3.3)%
$71.29
$71.76
(0.7)%
0.2%
Chattanooga, TN-GA1
83.9%
85.2%
(1.5)%
$118.08
$123.29
(4.2)%
$99.11
$105.04
(5.6)%
0.2%
Mobile, AL1
70.4%
71.9%
(2.2)%
$104.09
$109.80
(5.2)%
$73.24
$78.99
(7.3)%
0.2%
Kansas1
71.5%
69.0%
3.7%
$98.65
$93.96
5.0%
$70.58
$64.81
8.9%
0.1%
Greenville/Spartanburg, SC1
63.9%
79.3%
(19.4)%
$113.75
$119.17
(4.5)%
$72.71
$94.48
(23.0)%
0.1%
All Other Markets124
76.5%
77.1%
(0.8)%
$131.68
$132.87
(0.9)%
$100.67
$102.43
(1.7)%
44.0%
Total Portfolio232
77.1%
77.2%
(0.1)%
$137.70
$137.43
0.2%
$106.12
$106.07
0.0%
100.0%
Note: Market categorization based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region
Three Months ended December 31
(Unaudited)
Region
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
STR Region East North Central15
67.6%
67.0%
0.9%
$127.79
$129.92
(1.6)%
$86.45
$87.09
(0.7)%
5.6%
East South Central30
74.4%
74.1%
0.5%
$129.51
$130.87
(1.0)%
$96.35
$96.91
(0.6)%
11.4%
Middle Atlantic12
74.4%
76.4%
(2.6)%
$168.42
$168.29
0.1%
$125.25
$128.49
(2.5)%
6.0%
Mountain21
71.8%
72.1%
(0.5)%
$124.45
$120.87
3.0%
$89.30
$87.15
2.5%
9.9%
New England5
71.2%
79.1%
(9.9)%
$139.41
$154.06
(9.5)%
$99.28
$121.84
(18.5)%
2.4%
Pacific33
79.3%
80.6%
(1.6)%
$151.94
$153.11
(0.8)%
$120.52
$123.39
(2.3)%
23.4%
South Atlantic57
73.1%
72.6%
0.7%
$124.74
$127.34
(2.0)%
$91.16
$92.41
(1.3)%
21.5%
West North Central18
68.6%
67.8%
1.1%
$117.21
$117.95
(0.6)%
$80.36
$80.00
0.4%
5.1%
West South Central41
70.4%
67.7%
4.0%
$119.99
$121.43
(1.2)%
$84.52
$82.21
2.8%
14.7%
Total Portfolio232
72.9%
72.7%
0.3%
$131.47
$133.09
(1.2)%
$95.82
$96.72
(0.9)%
100.0%
Note: Region categorization based on STR designation.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region
Years ended December 31
(Unaudited)
Region
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
STR Region East North Central15
71.7%
73.3%
(2.2)%
$128.27
$130.66
(1.8)%
$91.99
$95.83
(4.0)%
5.5%
East South Central30
78.4%
77.9%
0.6%
$130.59
$131.23
(0.5)%
$102.41
$102.29
0.1%
10.6%
Middle Atlantic12
77.1%
78.6%
(1.8)%
$161.95
$160.42
1.0%
$124.91
$126.04
(0.9)%
4.8%
Mountain21
75.9%
75.5%
0.6%
$130.67
$125.94
3.8%
$99.20
$95.08
4.3%
9.9%
New England5
73.0%
77.0%
(5.1)%
$148.89
$149.64
(0.5)%
$108.67
$115.15
(5.6)%
2.3%
Pacific33
83.7%
84.6%
(1.1)%
$166.26
$163.73
1.5%
$139.15
$138.57
0.4%
24.6%
South Atlantic57
77.9%
78.6%
(1.0)%
$133.91
$133.19
0.5%
$104.30
$104.74
(0.4)%
23.0%
West North Central18
76.0%
73.3%
3.7%
$123.86
$125.87
(1.6)%
$94.18
$92.32
2.0%
5.9%
West South Central41
73.0%
71.8%
1.6%
$123.14
$125.04
(1.5)%
$89.89
$89.82
0.1%
13.4%
Total Portfolio232
77.1%
77.2%
(0.1)%
$137.70
$137.43
0.2%
$106.12
$106.07
0.0%
100.0%
Note: Region categorization based on STR designation.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale
Three Months ended December 31
(Unaudited)
Chain Scale/Brand
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
Upscale Courtyard36
69.1%
70.6%
(2.1)%
$131.92
$131.10
0.6%
$91.13
$92.54
(1.5)%
16.8%
Hilton Garden Inn41
71.2%
70.9%
0.3%
$129.28
$131.09
(1.4)%
$92.02
$93.00
(1.0)%
17.5%
Homewood Suites33
77.8%
77.5%
0.4%
$133.13
$136.78
(2.7)%
$103.51
$105.95
(2.3)%
12.6%
Hyatt Place1
79.9%
68.0%
17.5%
$99.06
$103.23
(4.0)%
$79.11
$70.19
12.7%
0.2%
Residence Inn33
76.7%
77.3%
(0.7)%
$139.50
$141.51
(1.4)%
$107.06
$109.40
(2.1)%
17.1%
SpringHill Suites14
70.8%
72.3%
(2.1)%
$121.11
$118.51
2.2%
$85.73
$85.64
0.1%
5.7%
Upscale Total158
73.0%
73.4%
(0.6)%
$131.76
$132.98
(0.9)%
$96.15
$97.59
(1.5)%
69.9%
Upper Midscale Fairfield Inn/Fairfield Inn & Suites11
72.1%
73.7%
(2.3)%
$117.26
$116.61
0.6%
$84.50
$85.98
(1.7)%
3.7%
Hampton Inn/Hampton Inn & Suites39
72.5%
69.9%
3.6%
$127.30
$130.84
(2.7)%
$92.24
$91.50
0.8%
15.0%
Home2 Suites9
74.6%
77.8%
(4.2)%
$126.81
$128.53
(1.3)%
$94.60
$100.06
(5.5)%
3.8%
TownePlace Suites9
75.9%
65.7%
15.6%
$106.33
$105.18
1.1%
$80.73
$69.09
16.9%
3.5%
Upper Midscale Total68
73.1%
70.9%
3.0%
$123.21
$125.45
(1.8)%
$90.02
$89.00
1.1%
26.0%
Upper Upscale Embassy Suites2
79.8%
81.3%
(1.9)%
$155.43
$156.83
(0.9)%
$124.05
$127.56
(2.8)%
1.3%
Marriott2
55.5%
58.1%
(4.6)%
$143.62
$146.15
(1.7)%
$79.67
$84.96
(6.2)%
1.2%
Renaissance1
97.0%
97.2%
(0.2)%
$303.79
$303.55
0.1%
$294.55
$294.94
(0.1)%
1.5%
Upper Upscale Total5
69.8%
71.7%
(2.6)%
$187.96
$188.29
(0.2)%
$131.18
$134.94
(2.8)%
4.0%
Independents Independents1
79.2%
81.1%
(2.4)%
$141.63
$146.05
(3.0)%
$112.21
$118.51
(5.3)%
0.1%
Independents Total1
79.2%
81.1%
(2.4)%
$141.63
$146.05
(3.0)%
$112.21
$118.51
(5.3)%
0.1%
Total Portfolio232
72.9%
72.7%
0.3%
$131.47
$133.09
(1.2)%
$95.82
$96.72
(0.9)%
100.0%
Note: Chain scale categorization based on STR designation.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale
Years ended December 31
(Unaudited)
Chain Scale/Brand
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
Upscale Courtyard36
74.4%
75.1%
(1.0)%
$143.24
$141.45
1.3%
$106.53
$106.30
0.2%
18.4%
Hilton Garden Inn41
76.1%
75.4%
0.9%
$134.11
$134.78
(0.5)%
$102.03
$101.58
0.4%
17.9%
Homewood Suites33
81.6%
81.7%
(0.1)%
$137.39
$139.48
(1.5)%
$112.13
$113.96
(1.6)%
12.5%
Hyatt Place1
77.4%
82.7%
(6.3)%
$105.42
$102.73
2.6%
$81.64
$84.91
(3.9)%
0.2%
Residence Inn33
79.3%
80.5%
(1.5)%
$147.09
$147.59
(0.3)%
$116.69
$118.83
(1.8)%
16.5%
SpringHill Suites14
75.5%
77.5%
(2.5)%
$123.52
$124.04
(0.4)%
$93.32
$96.11
(2.9)%
5.6%
Upscale Total158
77.3%
77.7%
(0.6)%
$138.30
$138.59
(0.2)%
$106.86
$107.71
(0.8)%
71.1%
Upper Midscale Fairfield Inn/Fairfield Inn & Suites11
74.6%
76.0%
(1.8)%
$117.68
$118.46
(0.7)%
$87.79
$89.99
(2.4)%
3.3%
Hampton Inn/Hampton Inn & Suites39
76.4%
75.1%
1.7%
$133.76
$134.37
(0.5)%
$102.24
$100.95
1.3%
14.9%
Home2 Suites9
80.7%
81.7%
(1.2)%
$136.82
$129.83
5.4%
$110.45
$106.12
4.1%
4.1%
TownePlace Suites9
78.2%
75.7%
3.3%
$115.71
$107.40
7.7%
$90.52
$81.31
11.3%
3.1%
Upper Midscale Total68
76.9%
76.1%
1.0%
$129.59
$128.13
1.1%
$99.63
$97.48
2.2%
25.4%
Upper Upscale Embassy Suites2
86.4%
85.5%
1.1%
$186.72
$179.67
3.9%
$161.34
$153.63
5.0%
1.6%
Marriott2
62.3%
63.6%
(2.0)%
$147.53
$145.61
1.3%
$91.96
$92.62
(0.7)%
1.3%
Renaissance1
94.4%
93.9%
0.6%
$260.56
$257.49
1.2%
$246.05
$241.69
1.8%
0.5%
Upper Upscale Total5
74.9%
75.2%
(0.4)%
$186.08
$181.62
2.5%
$139.31
$136.50
2.1%
3.4%
Independents Independents1
76.2%
81.4%
(6.4)%
$144.89
$149.70
(3.2)%
$110.47
$121.91
(9.4)%
0.1%
Independents Total1
76.2%
81.4%
(6.4)%
$144.89
$149.70
(3.2)%
$110.47
$121.91
(9.4)%
0.1%
Total Portfolio232
77.1%
77.2%
(0.1)%
$137.70
$137.43
0.2%
$106.12
$106.07
0.0%
100.0%
Note: Chain scale categorization based on STR designation.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location
Three Months ended December 31
(Unaudited)
Location
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
Q4 2018
% Change
Q4 2019
STR Location Airport17
76.8%
75.1%
2.2%
$124.39
$128.41
(3.1)%
$95.49
$96.45
(1.0)%
6.1%
Interstate6
73.8%
75.4%
(2.1)%
$112.42
$107.86
4.2%
$83.01
$81.34
2.1%
1.9%
Resort9
77.1%
70.9%
8.8%
$127.80
$122.56
4.3%
$98.51
$86.85
13.4%
4.8%
Small Metro/Town16
73.5%
75.0%
(2.0)%
$114.30
$115.99
(1.5)%
$84.04
$87.05
(3.5)%
5.2%
Suburban141
72.3%
72.8%
(0.7)%
$127.23
$129.59
(1.8)%
$91.96
$94.37
(2.5)%
54.7%
Urban43
72.1%
71.0%
1.5%
$152.37
$153.58
(0.8)%
$109.83
$109.02
0.7%
27.3%
Total Portfolio232
72.9%
72.7%
0.3%
$131.47
$133.09
(1.2)%
$95.82
$96.72
(0.9)%
100.0%
Note: Location categorization based on STR designation.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location
Years ended December 31
(Unaudited)
Location
Occupancy
ADR
RevPAR
% of Adjusted
Hotel EBITDA
# of Hotels
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
YTD 2018
% Change
YTD 2019
STR Location
Airport
17
80.0%
81.4%
(1.7)%
$129.34
$131.78
(1.9)%
$103.49
$107.25
(3.5)%
6.0%
Interstate6
76.5%
74.3%
2.9%
$111.50
$110.00
1.4%
$85.28
$81.72
4.4%
1.7%
Resort9
81.5%
78.9%
3.4%
$146.42
$145.45
0.7%
$119.39
$114.75
4.0%
5.5%
Small Metro/Town16
77.5%
75.1%
3.2%
$118.69
$115.37
2.9%
$92.02
$86.67
6.2%
5.2%
Suburban141
76.5%
77.3%
(1.0)%
$133.86
$133.59
0.2%
$102.42
$103.20
(0.8)%
55.4%
Urban43
76.6%
76.2%
0.5%
$156.34
$156.37
(0.0)%
$119.75
$119.13
0.5%
26.2%
Total Portfolio232
77.1%
77.2%
(0.1)%
$137.70
$137.43
0.2%
$106.12
$106.07
0.0%
100.0%
Note: Location categorization based on STR designation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200224005706/en/