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- **Resilient Performance**: Q3 RevPAR $124 (-1.8% YoY), EBITDA margin 35.2%, outperforming industry with STR RevPAR $102.
- **Strategic Capital Allocation**: Sold 3 hotels for $37M, repurchased 3.8M shares at $12.73, redeploying proceeds from dispositions.
- **Cost Control Success**: Variable expenses grew 0.7%, contract labor reduced 16%, FTE count aligned with occupancy.
- **Future Growth Pipeline**: $210M in new developments (Anchorage AC, Las Vegas dual-branded) and 13 Marriott transitions to franchise for cost savings.
- **Market Focus**: High-growth markets like Anchorage (top RevPAR) and Nashville, disposing of assets at 6.2% cap rate to buy shares at 3-turn spread.

**【CEO Summary Section】**
- **Challenges and Strategy**: Faced headwinds from policy uncertainty and government travel pullback, but maintained strong performance through cost control and strategic asset sales. Sold 3 hotels for $37M and repurchased 3.8M shares at $12.73 avg price, redeploying proceeds from dispositions.
- **Performance Metrics**: Q3 RevPAR $124 (-1.8% YoY), ADR $163 (-0.6%), occupancy 76% (-1.2%). Comparable hotels EBITDA margin 35.2%, outperforming industry with STR RevPAR $102.
- **Future Developments**: Acquired Homewood Suites Tampa-Brandon ($19M) and Motto Nashville ($98M). Entered into forward contracts for AC Hotel in Anchorage ($66M) and dual-branded AC/Residence Inn in Las Vegas ($144M). Transitioning 13 Marriott-managed hotels to franchise to reduce costs and improve flexibility.

**【CFO Financial Commentary】**
- **Financial Results**: Q3 total revenue $365M (-1% YoY), adjusted EBITDA $129M (-7% YoY). MFFO $100M ($0.42/share), down 7% YoY. Full-year guidance: RevPAR -2% to -1%, EBITDA margin 33.9%-34.5%.
- **Balance Sheet**: $1.5B debt (3.3x EBITDA), $50M cash, $648M revolver availability. Repaid $29M mortgage, leaving 210 unencumbered hotels.
- **Expense Management**: Variable expenses grew 0.7%, fixed costs up 12% due to real estate taxes. Payroll per room $40, down 2% YoY. Contract labor reduced 16%.

**【Q&A Highlights】**
- **Expense Efficiency**: 12% reduction in contract labor, FTE count aligned with occupancy. Variable expenses controlled despite RevPAR decline.
- **Development Rationale**: AC brand offers strong margins and efficiency. Las Vegas projects (AC/Residence Inn) near convention center for demand diversification.
- **Government Demand Recovery**: October RevPAR down 3% YoY due to shutdown. Historical recovery suggests pent-up demand post-shutdown.
- **Market Strategy**: Focus on high-growth markets (Anchorage, Nashville) with favorable supply-demand dynamics. Disposed of 3 hotels at 6.2% cap rate, redeploying into shares at 3-turn spread.

Apple Hospitality REIT, Inc. (APLE) Q3 2025 Earnings Call Transcript

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