What does Apple Hospitality do and what are its main business segments?

What is the revenue and EPS growth rate for Apple Hospitality year over year?

What is Apple Hospitality's latest dividend and current dividend yield?

What is Apple Hospitality's gross profit margin?

What were the key takeaways from Apple Hospitality's earnings call?

What factors drove the changes in Apple Hospitality's revenue and profit?

Did Apple Hospitality beat or miss consensus estimates last quarter?

What were the key takeaways from Apple Hospitality’s earnings call?

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

APLE

APLE fundamentals

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