Apple Hospitality REIT Reports Results of Operations for Second Quarter 2021

Apple Hospitality REIT, Inc. (NYSE: APLE) last week announced results of operations for the second quarter ended June 30, 2021.

Apple Hospitality REIT, Inc.

Selected Statistical and Financial Data

As of and For the Three and Six Months Ended June 30

(Unaudited) (in thousands, except statistical and per share amounts)(1)

         

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

% Change

2021

2020

% Change

Net income (loss)

$20,283

$(78,243)

125.9%

$(26,152)

$(81,012)

67.7%

Net income (loss) per share

$0.09

$(0.35)

125.7%

$(0.12)

$(0.36)

66.7%

Adjusted EBITDAre

$86,379

$(5,321)

n/m

$113,687

$48,453

134.6%

Comparable Hotels Adjusted Hotel EBITDA

$89,675

$905

n/m

$122,806

$59,295

107.1%

Comparable Hotels Adjusted Hotel EBITDA Margin %

38.6%

1.2%

3,740 bps

32.4%

20.1%

1,230 bps

Modified funds from operations (MFFO)

$67,670

$(24,016)

381.8%

$76,352

$13,794

453.5%

MFFO per share

$0.30

$(0.11)

372.7%

$0.34

$0.06

466.7%

Average Daily Rate (ADR) (Actual)

$120.56

$100.76

19.7%

$111.19

$122.48

(9.2%)

Occupancy (Actual)

70.7%

28.2%

150.7%

63.2%

44.5%

42.0%

Revenue Per Available Room (RevPAR) (Actual)

$85.28

$28.44

199.9%

$70.23

$54.55

28.7%

Comparable Hotels ADR

$121.80

$101.51

20.0%

$112.20

$123.89

(9.4%)

Comparable Hotels Occupancy

70.8%

28.2%

151.1%

63.3%

44.5%

42.2%

Comparable Hotels RevPAR

$86.22

$28.61

201.4%

$70.97

$55.14

28.7%

Cash and cash equivalents

$2,899

Total debt outstanding

$1,402,720

Total debt outstanding, net of cash and cash equivalents

$1,399,821

Total debt outstanding, net of cash and cash equivalents, to total capitalization (2)

28.7%

Note: n/m = not meaningful.

(1)

 

Explanations of and reconciliations to net income (loss) 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)

 

Total debt outstanding, net of cash and cash equivalents (“net total debt outstanding”), divided by net total debt outstanding plus equity market capitalization based on the Company’s closing share price of $15.26 on June 30, 2021.

Comparable Hotels is defined as the 212 hotels owned and held for use by the Company as of June 30, 2021, and excludes the 20 hotels held for sale as of June 30, 2021. 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, 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, Chief Executive Officer of Apple Hospitality, commented, “Strong leisure and improving business transient demand enabled us to achieve occupancy of 71%, ADR of $121 and RevPAR of $85 for our full portfolio of hotels for the second quarter of this year. Combining our focus on cost-saving initiatives and operational efficiencies with improving top-line fundamentals and low leverage, we achieved strong bottom-line results. For the quarter, Adjusted EBITDAre was approximately $86 million, MFFO was approximately $68 million and Comparable Hotels Adjusted Hotel EBITDA Margin was approximately 39%. With improvement in operational performance, we have exited the covenant waiver period in advance of the expiration dates, which provides us greater flexibility to strategically allocate capital in ways that will maximize profitability and drive enhanced returns for our shareholders over time. These outstanding results are a testament to the merits of our strategy of investing in a diversified portfolio of high-quality, branded, rooms-focused hotels with low leverage and a tribute to our corporate and on-site management teams and their efforts over the past year.”

Mr. Knight continued, “In July, we successfully completed the opportunistic sale of 20 hotels and are working to redeploy proceeds to further enhance the quality and performance of our portfolio. We currently have four hotels under contract and are actively pursuing additional opportunities. Our combined acquisitions and dispositions activity will reduce the age of our portfolio and associated near-term capital obligations while increasing our exposure to markets with strong relative growth trajectories. We are emerging from the downturn on incredibly strong footing. The recovery in operating fundamentals for our portfolio ahead of peers has enabled us to preserve the strength of our balance sheet, and, as a result, we are uniquely positioned to maximize long-term value for our shareholders through attractive transactions that will optimize and grow our existing portfolio.”

Hotel Portfolio Overview

As of June 30, 2021, Apple Hospitality owned 232 hotels, with an aggregate of 29,753 rooms located in 88 markets throughout 35 states, including 20 hotels with 2,133 rooms classified as held for sale, which were sold in July 2021.

Operations Update

  • Sequential improvement: Occupancy, ADR and RevPAR for the Company’s portfolio sequentially improved each month during the second quarter of 2021, driven by a wide variety of demand generators. Operationally, the Company produced its strongest quarterly results since the beginning of the pandemic with occupancy, ADR and RevPAR exceeding industry averages as reported by STR. For the Company’s portfolio, RevPAR for the month of June 2021 trailed RevPAR for the month of June 2019 by approximately 20%, improving from a decline of approximately 40% for the month of March 2021 as compared to March 2019. Portfolio occupancy improvement and outperformance continued into July, with occupancy of approximately 75% for the month.
  • Increased operational efficiencies: In response to the COVID-19 pandemic, the Company, its third-party management companies and the brands the Company’s hotels are franchised with aggressively worked to mitigate costs and uses of cash associated with operating the Company’s hotels in a low-occupancy environment. As occupancy has steadily improved, the Company has continued to maximize operational efficiencies by effectively managing labor costs, optimizing certain services and amenities, and renegotiating rates under various service contracts. Hotel operating expenses were reduced by approximately 28% during the second quarter of 2021, as compared to the same period of 2019. The Company achieved Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 39% for the second quarter of 2021, 120 basis points below the same measure for the second quarter of 2019. With the support of its brands and third-party management companies, the Company will continue to rethink brand standards, refine its operating model and allocate capital to maximize long-term profitability.
  • Strong bottom-line performance: The Company achieved Adjusted Hotel EBITDA of approximately $95 million and MFFO of approximately $68 million for the second quarter of 2021.
  • Significant transactional activity: In July 2021, the Company sold a portfolio of 20 hotels for a gross sales price of approximately $211 million and entered into contracts for the purchase of four hotels for a combined total purchase price of approximately $227 million.
  • Exited the Extended Covenant Waiver Period: In July 2021, the Company elected to exit the Extended Covenant Waiver Period early, pursuant to the terms of each of its unsecured credit facilities, as amended, which among other benefits, lifted certain restrictions and limitations related to the Company’s allocation of capital that were applicable during the Extended Covenant Waiver Period.

The following table highlights the Company’s monthly performance during the second quarter of 2021, as compared to the second quarters of 2020 and 2019 (in thousands, except statistical data):

Three
Months
Ended

Three
Months
Ended

Three
Months
Ended

April

May

June

June 30,

April

May

June

June 30,

April

May

June

June 30,

2021

2021

2021

2021

2020

2020

2020

2020

2019

2019

2019

2019

ADR

$110.08

$119.39

$131.32

$120.56

$99.92

$95.67

$105.09

$100.76

$139.83

$139.72

$145.14

$141.60

Occupancy

68.1%

69.8%

74.4%

70.7%

17.7%

28.6%

38.2%

28.2%

80.6%

80.1%

83.7%

81.4%

RevPAR

$74.94

$83.35

$97.65

$85.28

$17.70

$27.39

$40.17

$28.44

$112.64

$111.94

$121.41

$115.30

Adjusted Hotel EBITDA (1)

$23,869

$32,363

$38,582

$94,814

$(7,931)

$575

$8,060

$704

$42,014

$43,542

$49,203

$134,759

(1)

See explanation and reconciliation of Adjusted Hotel EBITDA to net income (loss) included below.

Portfolio Activity

Acquisitions

Since the beginning of 2021, the Company has closed on the purchase of one hotel, the newly developed 176-room Hilton Garden Inn in Madison, Wisconsin, that was purchased in February 2021 for a total purchase price of approximately $50 million. The company has acquired five hotels for a total purchase price of approximately $161 million since the beginning of the COVID-19 pandemic.

Contracts for Potential Acquisitions

During the second quarter, the Company entered into a contract to purchase the fee interest in the land at its Residence Inn by Marriott in Seattle, Washington, which is currently under a ground lease, for a total purchase price of $80 million, consisting of a $24 million cash payment, for which the Company plans to utilize available cash or borrowings under its unsecured credit facilities, and a one-year note payable to the seller for $56 million. The land purchase is expected to close in August 2021.

In July 2021, the Company entered into three separate contracts for the potential purchase of four hotels for a total combined purchase price of approximately $227 million. The hotels under contract for purchase include:

  • The existing 178-room AC Hotel by Marriott and the 157-room Aloft Hotel, which is currently under development with a planned completion date in the third quarter of 2021, on the waterfront in downtown Portland, Maine, for a total combined purchase price of approximately $118 million.
  • The 130-room Hyatt Place in downtown Greenville, South Carolina, for a total purchase price of approximately $30 million.
  • An Embassy Suites by Hilton that will be constructed in Madison, Wisconsin, with an expected 260 rooms for an anticipated total purchase price of approximately $79 million.

There are many conditions to closing under the contracts for each of the acquisitions described above that have not yet been satisfied, and there can be no assurance that closings on the four hotels will occur. Assuming all conditions to closing are met, the Company anticipates acquiring the hotels in Portland and Greenville during the second half of 2021 and acquiring the newly developed hotel in Madison following completion of construction, which is expected to occur no earlier than 2023.

Dispositions

As previously announced, during the six months ended June 30, 2021, the Company sold three hotels in three transactions for a total combined gross sales price of approximately $24 million, including the SpringHill Suites by Marriott in Overland Park, Kansas, which was sold in April 2021 for approximately $5 million, resulting in a combined gain on the sale of the three hotels of approximately $4 million. The Company recognized an impairment loss of approximately $1 million in the first quarter of 2021 related to the sale of the Overland Park hotel.

In July 2021, the Company sold a portfolio of 20 hotels with a combined total of 2,133 guest rooms for a total gross sales price of approximately $211 million. During the first quarter of 2021, the Company recognized impairment losses of approximately $9 million to adjust the carrying values of four of these hotels to their estimated fair values. The hotels the Company sold through this transaction are as follows:

  • The 97-room Hilton Garden Inn and the 91-room Homewood Suites by Hilton in Montgomery, Alabama.
  • The 88-room Residence Inn by Marriott in Rogers, Arkansas.
  • The 127-room Courtyard by Marriott in Phoenix, Arizona.
  • The 78-room Courtyard by Marriott in Lakeland, Florida.
  • The 87-room Fairfield Inn & Suites by Marriott in Albany, Georgia.
  • The 166-room Hilton Garden Inn in Schaumburg, Illinois.
  • The 136-room SpringHill Suites by Marriott in Andover, Massachusetts.
  • The 92-room Residence Inn by Marriott in Fayetteville, North Carolina.
  • The 78-room Residence Inn by Marriott in Greenville, South Carolina.
  • The 85-room Hampton Inn & Suites by Hilton in Jackson, Tennessee.
  • The 90-room Courtyard by Marriott in Johnson City, Tennessee.
  • The 103-room Hampton Inn & Suites by Hilton and the 150-room Hilton Garden Inn in Allen, Texas.
  • The 133-room Residence Inn by Marriott in Beaumont, Texas.
  • The 88-room Hampton Inn & Suites by Hilton in Fort Worth-Burleson, Texas.
  • The 145-room Hilton Garden Inn in El Paso, Texas.
  • The 77-room Homewood Suites by Hilton in Irving, Texas.
  • The 103-room SpringHill Suites by Marriott in Richmond, Virginia.
  • The 119-room SpringHill Suites by Marriott in Vancouver, Washington.

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 six months ended June 30, 2021, the Company invested approximately $5 million in capital expenditures. The Company plans to continue to reinvest in its hotels and anticipates investing an additional $20 million to $25 million in capital improvements during the remainder of 2021, which includes scheduled renovation projects for approximately five to ten properties.

Balance Sheet and Liquidity

Summary

As of June 30, 2021, Apple Hospitality had approximately $1.4 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.0%, cash on hand of approximately $3 million and availability under its revolving credit facility of approximately $343 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt is comprised of approximately $451 million in property-level debt secured by 28 hotels and approximately $952 million outstanding on its unsecured credit facilities. The number of unencumbered hotels in the Company’s portfolio as of June 30, 2021, was 204. The Company’s total debt to total capitalization, net of cash and cash equivalents at June 30, 2021, was approximately 29%. As of June 30, 2021, the Company’s weighted-average debt maturities are 4 years, with no scheduled maturities for the remainder of 2021.

Unsecured Credit Facilities Amendments

As a result of COVID-19 and the associated disruption to the Company’s operating results, as previously disclosed, the Company entered into amendments to each of its unsecured credit facilities in June 2020 and then again in March 2021 to temporarily waive the financial covenant testing under each of its unsecured credit facilities. The March 2021 amendments suspended the testing for all but two of the Company’s existing financial maintenance covenants under the unsecured credit facilities until the date the compliance certificate would be required to be delivered for the fiscal quarter ending June 30, 2022 (unless the Company elects an earlier date) (the “Extended Covenant Waiver Period”). The testing for the Minimum Fixed Charge Coverage Ratio and the Minimum Unsecured Interest Coverage Ratio was suspended until the compliance certificate would be required to be delivered for the fiscal quarter ending March 31, 2022. The March 2021 amendments also included, among other restrictions, the following during the Extended Covenant Waiver Period: certain restrictions on share repurchases; an allowance for cash distributions of $0.01 per common share per quarter or to the extent required to maintain REIT status; up to $50 million for discretionary capital expenditures; additional flexibility regarding certain of the conditions relative to restrictions on acquisitions, including an increased allowance for acquiring unencumbered assets using up to $300 million in proceeds from asset sales and up to $300 million in equity issuances; less restrictive thresholds for certain financial covenant ratios for a transitional period once covenant testing recommences at the end of the Extended Covenant Waiver Period or if the Company opts out of the Extended Covenant Waiver Period early; and an increase in the interest rate under each of the unsecured credit facilities of 15 basis points during the Extended Covenant Waiver Period.

In July 2021, the Company notified its lenders under its unsecured credit facilities that it had elected to exit the Extended Covenant Waiver Period, effective July 29, 2021, pursuant to the terms of each of its unsecured credit facilities, as amended. Upon exiting the Extended Covenant Waiver Period, the Company is no longer subject to the restrictions and limitations regarding its investing and financing activities that were applicable during the Extended Covenant Waiver Period related to, but not limited to, the acquisition of property, capital expenditures, payment of distributions to shareholders, and use of proceeds from the sale of property or common shares of the Company. Those restrictions, including the restriction on payment of distributions to shareholders, were still in place throughout the second quarter of 2021. In addition, interest rates are expected to decrease on the Company’s unsecured credit facilities for the remainder of the year as a result of exiting the Extended Covenant Waiver Period. As of June 30, 2021, the Company met the financial maintenance covenants based on the annualized results of the three months ended June 30, 2021, at the levels required for the first quarter tested upon exiting the Extended Covenant Waiver Period.

Capital Markets

The Company terminated its written trading plan under its Share Repurchase Program in March 2020 and has not repurchased any shares under the Share Repurchase Program since that time. As of June 30, 2021, the Company had approximately $345 million remaining under its Share Repurchase Program. The Share Repurchase Program may be suspended or terminated at any time by the Company and will end in July 2022 unless extended. The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will depend upon the prevailing market conditions, regulatory requirements and other factors.

In August 2020, the Company entered into an equity distribution agreement pursuant to which the Company may sell, from time to time, up to an aggregate of $300 million of its common shares under an at-the-market offering program (the “ATM Program”). During the second quarter of 2021, the Company sold approximately 4.7 million common shares under its ATM Program at a weighted-average market sales price of approximately $16.26 per common share and received aggregate gross proceeds of approximately $76.0 million and proceeds net of offering costs of approximately $75.1 million. The Company used the net proceeds from the sale of these shares to pay down borrowings on its revolving credit facility, providing additional capacity for strategic growth while maintaining the Company’s strong balance sheet. As of June 30, 2021, approximately $224 million remained available for issuance under the ATM program.

Shareholder Distributions

On July 15, 2021, the Company paid a quarterly distribution of $0.01 per common share for the second quarter of 2021. The Company was restricted in its ability to make distributions during the Extended Covenant Waiver Period, except for the payment of cash distributions of $0.01 per common share per quarter or to the extent required to maintain REIT status. 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 or in order to maintain its REIT status for federal income tax purposes.

2021 Outlook

In light of uncertainties related to the ongoing COVID-19 pandemic, the Company does not expect to issue 2021 operational guidance until it has greater visibility into more predictable operating fundamentals and trends. The Company is providing the following full year 2021 outlook regarding certain corporate expenses, which is based on management’s current view and does not take into account any unanticipated developments in its business or changes in its operating environment:

  • General and administrative expenses are projected to be approximately $28 million to $32 million.
  • Interest expense is projected to be approximately $67 million to $72 million.
  • Capital expenditures are projected to be approximately $25 million to $30 million.

The anticipated interest expense range for 2021 reflects a reduction following the Company’s exit of the Extended Covenant Waiver Period. The Company does not intend to provide additional outlook updates unless deemed appropriate.

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 212 hotels with more than 27,600 guest rooms located in 84 markets throughout 35 states. Concentrated with industry-leading brands, the Company’s portfolio consists of 92 Marriott-branded hotels, 115 Hilton-branded hotels, three Hyatt-branded hotels and two independent hotels.

Apple Hospitality REIT, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

June 30,

December 31,

2021

2020

(unaudited)

Assets

Investment in real estate, net of accumulated depreciation and amortization of $1,228,937 and $1,235,698, respectively

$4,459,866

$4,732,896

Assets held for sale

208,026

5,316

Cash and cash equivalents

2,899

5,556

Restricted cash-furniture, fixtures and other escrows

31,215

28,812

Due from third party managers, net

54,296

22,137

Other assets, net

36,084

35,042

Total Assets

$4,792,386

$4,829,759

Liabilities

Debt, net

$1,396,408

$1,482,571

Finance lease liabilities

222,081

219,981

Accounts payable and other liabilities

79,574

97,860

Total Liabilities

1,698,063

1,800,412

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 228,340,959 and 223,212,346 shares, respectively

4,569,332

4,488,419

Accumulated other comprehensive loss

(28,076)

(42,802)

Distributions greater than net income

(1,446,933)

(1,416,270)

Total Shareholders’ Equity

3,094,323

3,029,347

Total Liabilities and Shareholders’ Equity

$4,792,386

$4,829,759

         

Note: The Consolidated Balance Sheets and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.

Apple Hospitality REIT, Inc.

Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

(in thousands, except per share data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Revenues:

Room

$231,166

$76,828

$379,647

$294,807

Food and beverage

5,088

839

7,871

12,151

Other

11,150

3,411

18,599

12,130

Total revenue

247,404

81,078

406,117

319,088

Expenses:

Hotel operating expense:

Operating

53,186

19,707

91,336

87,736

Hotel administrative

21,538

13,811

39,282

37,454

Sales and marketing

20,380

9,430

35,268

33,789

Utilities

9,352

6,308

19,912

15,498

Repair and maintenance

11,886

6,348

22,111

18,141

Franchise fees

10,865

3,656

17,784

13,913

Management fees

8,203

2,557

13,457

10,552

Total hotel operating expense

135,410

61,817

239,150

217,083

Property taxes, insurance and other

17,321

18,702

37,009

38,297

General and administrative

8,435

6,025

16,554

15,548

Loss on impairment of depreciable real estate assets

4,382

10,754

4,382

Depreciation and amortization

46,386

49,897

95,096

99,419

Total expense

207,552

140,823

398,563

374,729

Gain (loss) on sale of real estate

(864)

(54)

3,620

8,785

Operating income (loss)

38,988

(59,799)

11,174

(46,856)

Interest and other expense, net

(18,618)

(18,386)

(37,131)

(33,952)

Income (loss) before income taxes

20,370

(78,185)

(25,957)

(80,808)

Income tax expense

(87)

(58)

(195)

(204)

Net income (loss)

$20,283

$(78,243)

$(26,152)

$(81,012)

Other comprehensive income (loss):

Interest rate derivatives

(1,356)

(4,195)

14,726

(46,361)

Comprehensive income (loss)

$18,927

$(82,438)

$(11,426)

$(127,373)

Basic and diluted net income (loss) per common share

$0.09

$(0.35)

$(0.12)

$(0.36)

Weighted average common shares outstanding – basic and diluted

224,772

223,278

224,255

223,786

                 

Note: The Consolidated Statements of Operations and Comprehensive Income (Loss) and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics and Statistical Data

(Unaudited)

(in thousands, except statistical data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

% Change

2021

2020

% Change

Total revenue

$232,294

$74,657

211.1%

$379,607

$294,378

29.0%

Total operating expenses

142,619

73,752

93.4%

256,801

235,083

9.2%

Adjusted Hotel EBITDA

$89,675

$905

n/m

$122,806

$59,295

107.1%

Adjusted Hotel EBITDA Margin %

38.6%

1.2%

3,740 bps

32.4%

20.1%

1,230 bps

ADR (Comparable Hotels)

$121.80

$101.51

20.0%

$112.20

$123.89

(9.4%)

Occupancy (Comparable Hotels)

70.8%

28.2%

151.1%

63.3%

44.5%

42.2%

RevPAR (Comparable Hotels)

$86.22

$28.61

201.4%

$70.97

$55.14

28.7%

ADR (Actual)

$120.56

$100.76

19.7%

$111.19

$122.48

(9.2%)

Occupancy (Actual)

70.7%

28.2%

150.7%

63.2%

44.5%

42.0%

RevPAR (Actual)

$85.28

$28.44

199.9%

$70.23

$54.55

28.7%

Reconciliation to Actual Results

Total Revenue (Actual)

$247,404

$81,078

$406,117

$319,088

Revenue from acquisitions prior to ownership

Revenue from dispositions/assets held for sale

(15,110)

(6,421)

(26,510)

(24,710)

Comparable Hotels Total Revenue

$232,294

$74,657

$379,607

$294,378

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

$94,814

$704

$130,241

$64,001

AHEBITDA from acquisitions prior to ownership

AHEBITDA from dispositions/assets held for sale

(5,139)

201

(7,435)

(4,706)

Comparable Hotels AHEBITDA

$89,675

$905

$122,806

$59,295

                         

Note: n/m = not meaningful.

                         

Comparable Hotels is defined as the 212 hotels owned and held for use by the Company as of June 30, 2021, and excludes the 20 hotels held for sale as of June 30, 2021. 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, 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 (loss) to non-GAAP financial measures is 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

6/30/2019

9/30/2019

12/31/2019

3/31/2020

6/30/2020

9/30/2020

12/31/2020

3/31/2021

6/30/2021

Total revenue

$313,708

$305,326

$265,096

$219,721

$74,657

$137,499

$122,593

$147,313

$232,294

Total operating expenses

188,882

189,766

176,140

161,331

73,752

105,287

101,951

114,182

142,619

Adjusted Hotel EBITDA

$124,826

$115,560

$88,956

$58,390

$905

$32,212

$20,642

$33,131

$89,675

Adjusted Hotel EBITDA Margin %

39.8%

37.8%

33.6%

26.6%

1.2%

23.4%

16.8%

22.5%

38.6%

ADR (Comparable Hotels)

$144.25

$142.07

$133.40

$134.29

$101.51

$105.77

$98.35

$99.79

$121.80

Occupancy (Comparable Hotels)

81.7%

80.0%

73.0%

60.9%

28.2%

48.6%

46.1%

55.6%

70.8%

RevPAR (Comparable Hotels)

$117.86

$113.72

$97.44

$81.81

$28.61

$51.40

$45.39

$55.50

$86.22

ADR (Actual)

$141.60

$139.21

$131.41

$132.55

$100.76

$104.78

$97.87

$99.19

$120.56

Occupancy (Actual)

81.4%

79.9%

72.9%

60.9%

28.2%

48.6%

46.5%

55.5%

70.7%

RevPAR (Actual)

$115.30

$111.17

$95.85

$80.66

$28.44

$50.94

$45.46

$55.09

$85.28

Reconciliation to Actual Results

Total Revenue (Actual)

$341,117

$331,722

$289,971

$238,010

$81,078

$148,826

$133,965

$158,713

$247,404

Revenue from acquisitions prior to ownership

798

675

73

Revenue from dispositions/assets held for sale

(28,207)

(27,071)

(24,948)

(18,289)

(6,421)

(11,327)

(11,372)

(11,400)

(15,110)

Comparable Hotels Total Revenue

$313,708

$305,326

$265,096

$219,721

$74,657

$137,499

$122,593

$147,313

$232,294

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

$134,759

$124,596

$96,836

$63,297

$704

$34,688

$23,296

$35,427

$94,814

AHEBITDA from acquisitions prior to ownership

166

57

(1)

AHEBITDA from dispositions/assets held for sale

(10,099)

(9,093)

(7,879)

(4,907)

201

(2,476)

(2,654)

(2,296)

(5,139)

Comparable Hotels AHEBITDA

$124,826

$115,560

$88,956

$58,390

$905

$32,212

$20,642

$33,131

$89,675

Note: Comparable Hotels is defined as the 212 hotels owned and held for use by the Company as of June 30, 2021, and excludes the 20 hotels held for sale as of June 30, 2021. 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, 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 (loss) to non-GAAP financial measures is 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

Six Months Ended

June 30,

June 30,

2021

2020

% Change

2021

2020

% Change

Total revenue

$228,153

$74,264

207.2%

$373,014

$293,985

26.9%

Total operating expenses

139,459

73,442

89.9%

251,565

234,773

7.2%

Adjusted Hotel EBITDA

$88,694

$822

n/m

$121,449

$59,212

105.1%

Adjusted Hotel EBITDA Margin %

38.9%

1.1%

3,780 bps

32.6%

20.1%

1,250 bps

ADR (Same Store Hotels)

$121.79

$101.44

20.1%

$112.09

$123.90

(9.5%)

Occupancy (Same Store Hotels)

71.3%

28.2%

152.8%

63.7%

44.6%

42.8%

RevPAR (Same Store Hotels)

$86.79

$28.62

203.2%

$71.35

$55.22

29.2%

ADR (Actual)

$120.56

$100.76

19.7%

$111.19

$122.48

(9.2%)

Occupancy (Actual)

70.7%

28.2%

150.7%

63.2%

44.5%

42.0%

RevPAR (Actual)

$85.28

$28.44

199.9%

$70.23

$54.55

28.7%

Reconciliation to Actual Results

Total Revenue (Actual)

$247,404

$81,078

$406,117

$319,088

Revenue from acquisitions

(4,141)

(393)

(6,593)

(393)

Revenue from dispositions/assets held for sale

(15,110)

(6,421)

(26,510)

(24,710)

Same Store Hotels Total Revenue

$228,153

$74,264

$373,014

$293,985

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

$94,814

$704

$130,241

$64,001

AHEBITDA from acquisitions

(981)

(83)

(1,357)

(83)

AHEBITDA from dispositions/assets held for sale

(5,139)

201

(7,435)

(4,706)

Same Store Hotels AHEBITDA

$88,694

$822

$121,449

$59,212

                           

Note: n/m = not meaningful.

                           

Same Store Hotels is defined as the 207 hotels owned by the Company as of January 1, 2020 and during the entirety of the periods being compared. This information has not been audited.

                           

Reconciliation of net income (loss) to non-GAAP financial measures is 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

3/31/2020

6/30/2020

9/30/2020

12/31/2020

3/31/2021

6/30/2021

Total revenue

$219,721

$74,264

$136,347

$120,621

$144,861

$228,153

Total operating expenses

161,331

73,442

104,267

100,298

112,106

139,459

Adjusted Hotel EBITDA

$58,390

$822

$32,080

$20,323

$32,755

$88,694

Adjusted Hotel EBITDA Margin %

26.6%

1.1%

23.5%

16.8%

22.6%

38.9%

ADR (Same Store Hotels)

$134.29

$101.44

$105.71

$98.36

$99.61

$121.79

Occupancy (Same Store Hotels)

60.9%

28.2%

48.9%

46.2%

56.0%

71.3%

RevPAR (Same Store Hotels)

$81.81

$28.62

$51.64

$45.47

$55.74

$86.79

ADR (Actual)

$132.55

$100.76

$104.78

$97.87

$99.19

$120.56

Occupancy (Actual)

60.9%

28.2%

48.6%

46.5%

55.5%

70.7%

RevPAR (Actual)

$80.66

$28.44

$50.94

$45.46

$55.09

$85.28

Reconciliation to Actual Results

Total Revenue (Actual)

$238,010

$81,078

$148,826

$133,965

$158,713

$247,404

Revenue from acquisitions

(393)

(1,152)

(1,972)

(2,452)

(4,141)

Revenue from dispositions/assets held for sale

(18,289)

(6,421)

(11,327)

(11,372)

(11,400)

(15,110)

Same Store Hotels Total Revenue

$219,721

$74,264

$136,347

$120,621

$144,861

$228,153

Adjusted Hotel EBITDA (AHEBITDA) (Actual)

$63,297

$704

$34,688

$23,296

$35,427

$94,814

AHEBITDA from acquisitions

(83)

(132)

(319)

(376)

(981)

AHEBITDA from dispositions/assets held for sale

(4,907)

201

(2,476)

(2,654)

(2,296)

(5,139)

Same Store Hotels AHEBITDA

$58,390

$822

$32,080

$20,323

$32,755

$88,694

                           

Note: Same Store Hotels is defined as the 207 hotels owned by the Company as of January 1, 2020 and during the entirety of the periods being compared. This information has not been audited.

                           

Reconciliation of net income (loss) to non-GAAP financial measures is included in the following pages.

Apple Hospitality REIT, Inc.
Reconciliation of Net Income (Loss) 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 (loss) 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 (loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA on a quarterly basis from March 31, 2019 through June 30, 2021:

Three Months Ended

3/31/2019

6/30/2019

9/30/2019

12/31/2019

3/31/2020

6/30/2020

9/30/2020

12/31/2020

3/31/2021

6/30/2021

Net income (loss)

$38,151

$62,090

$46,223

$25,453

$(2,769)

$(78,243)

$(40,948)

$(51,247)

$(46,435)

$20,283

Depreciation and amortization

47,950

48,109

47,887

49,294

49,522

49,897

50,171

50,196

48,710

46,386

Amortization of favorable and unfavorable operating leases, net

31

31

31

31

101

101

103

137

98

98

Interest and other expense, net

15,494

15,857

14,759

15,081

15,566

18,386

18,531

18,352

18,513

18,618

Income tax expense

206

156

143

174

146

58

61

67

108

87

EBITDA

101,832

126,243

109,043

90,033

62,566

(9,801)

27,918

17,505

20,994

85,472

(Gain) loss on sale of real estate

(1,213)

161

(3,969)

(8,839)

54

(2,069)

(4,484)

864

Loss on impairment of depreciable real estate assets

6,467

4,382

715

10,754

EBITDAre

100,619

126,404

115,510

86,064

53,727

(5,365)

27,918

16,151

27,264

86,336

Non-cash straight-line operating ground lease expense

48

47

47

46

47

44

44

45

44

43

Adjusted EBITDAre

$100,667

$126,451

$115,557

$86,110

$53,774

$(5,321)

$27,962

$16,196

$27,308

$86,379

General and administrative expense

8,137

8,308

9,039

10,726

9,523

6,025

6,726

7,100

8,119

8,435

Adjusted Hotel EBITDA

$108,804

$134,759

$124,596

$96,836

$63,297

$704

$34,688

$23,296

$35,427

$94,814

Apple Hospitality REIT, Inc.
Reconciliation of Net Income (Loss) 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 (loss) (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 (loss) to FFO and MFFO for the three and six months ended June 30, 2021 and 2020:

Three Months Ended
June 30,

Six Months Ended
June 30,

2021

2020

2021

2020

Net income (loss)

$20,283

$(78,243)

$(26,152)

$(81,012)

Depreciation of real estate owned

44,764

48,044

91,852

95,712

(Gain) loss on sale of real estate

864

54

(3,620)

(8,785)

Loss on impairment of depreciable real estate assets

4,382

10,754

4,382

Funds from operations

65,911

(25,763)

72,834

10,297

Amortization of finance ground lease assets

1,618

1,602

3,235

3,204

Amortization of favorable and unfavorable operating leases, net

98

101

196

202

Non-cash straight-line operating ground lease expense

43

44

87

91

Modified funds from operations

$67,670

$(24,016)

$76,352

$13,794

Apple Hospitality REIT, Inc.

Debt Summary

(Unaudited)

($ in thousands)

June 30, 2021

July 1 –
December 31,
2021

2022

2023

2024

2025

Thereafter

Total

Fair
Market
Value

Total debt:

Maturities

$

8,674

$

191,831

$

296,213

$

338,597

$

245,140

$

322,265

$

1,402,720

$

1,402,628

Average interest rates (1)

4.0

%

4.0

%

4.1

%

4.3

%

4.4

%

4.4

%

Variable rate debt:

Maturities

$

$

82,000

$

250,000

$

310,000

$

175,000

$

85,000

$

902,000

$

894,967

Average interest rates (1)

3.8

%

3.9

%

4.1

%

4.5

%

5.0

%

5.6

%

Fixed rate debt:

Maturities

$

8,674

$

109,831

$

46,213

$

28,597

$

70,140

$

237,265

$

500,720

$

507,661

Average interest rates

4.2

%

4.1

%

4.0

%

4.0

%

4.0

%

3.9

%

(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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics Top 20 Markets

Three Months Ended June 30

(Unaudited)

Top 20 Markets

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

Top 20 Markets

Los Angeles, CA

8

86.7%

34.5%

151.3%

$138.02

$114.99

20.0%

$119.61

$39.62

201.9%

6.2%

San Diego, CA

7

69.6%

22.6%

208.0%

$134.84

$114.82

17.4%

$93.80

$26.00

260.8%

5.1%

Omaha, NE

4

60.7%

16.7%

263.5%

$165.47

$91.61

80.6%

$100.36

$15.31

555.5%

3.7%

Orange County, CA

6

75.1%

22.5%

233.8%

$122.64

$106.02

15.7%

$92.11

$23.83

286.5%

3.6%

North Carolina East

4

82.2%

51.6%

59.3%

$157.51

$129.43

21.7%

$129.50

$66.82

93.8%

3.6%

Norfolk/Virginia Beach, VA

4

83.8%

42.8%

95.8%

$158.32

$130.89

21.0%

$132.69

$55.97

137.1%

3.3%

Florida Panhandle

5

77.7%

42.8%

81.5%

$154.45

$129.31

19.4%

$120.05

$55.32

117.0%

3.2%

Alaska

2

93.9%

62.3%

50.7%

$194.04

$127.78

51.9%

$182.28

$79.65

128.9%

3.0%

Phoenix, AZ

10

65.5%

22.2%

195.0%

$102.22

$83.96

21.7%

$66.95

$18.64

259.2%

2.9%

Nashville, TN

5

71.9%

23.4%

207.3%

$127.12

$101.09

25.7%

$91.41

$23.70

285.7%

2.8%

Melbourne, FL

3

79.8%

39.8%

100.5%

$142.28

$130.61

8.9%

$113.48

$52.04

118.1%

2.3%

Seattle, WA

3

68.0%

35.9%

89.4%

$144.26

$133.15

8.3%

$98.09

$47.86

105.0%

2.3%

Austin, TX

7

75.4%

17.9%

321.2%

$98.07

$81.89

19.8%

$73.96

$14.65

404.8%

2.2%

Oklahoma City, OK

4

67.7%

26.7%

153.6%

$128.62

$107.46

19.7%

$87.03

$28.71

203.1%

2.1%

Miami, FL

3

88.4%

42.6%

107.5%

$131.96

$67.98

94.1%

$116.65

$28.99

302.4%

2.0%

Chicago, IL

7

54.0%

20.0%

170.0%

$98.75

$84.26

17.2%

$53.32

$16.88

215.9%

1.9%

Alabama North

4

78.9%

23.8%

231.5%

$116.64

$102.24

14.1%

$92.09

$24.31

278.8%

1.8%

Richmond/Petersburg, VA

4

53.2%

11.6%

358.6%

$142.70

$111.03

28.5%

$75.95

$12.87

490.1%

1.7%

Fort Worth/Arlington, TX

4

71.1%

31.2%

127.9%

$123.91

$90.60

36.8%

$88.08

$28.29

211.3%

1.6%

Birmingham, AL

4

75.3%

28.8%

161.5%

$121.32

$96.00

26.4%

$91.33

$27.61

230.8%

1.6%

Top 20 Markets

98

71.7%

27.9%

157.0%

$130.61

$107.85

21.1%

$93.59

$30.04

211.6%

56.9%

All Other Markets

114

70.0%

28.5%

145.6%

$113.29

$95.74

18.3%

$79.25

$27.28

190.5%

43.1%

Total Portfolio

212

70.8%

28.2%

151.1%

$121.80

$101.51

20.0%

$86.22

$28.61

201.4%

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 Top 20 Markets

Six Months Ended June 30

(Unaudited)

Top 20 Markets

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

Top 20 Markets

Los Angeles, CA

8

84.8%

54.2%

56.5%

$125.42

$150.88

(16.9%)

$106.39

$81.75

30.1%

7.3%

San Diego, CA

7

58.3%

43.6%

33.7%

$125.12

$139.70

(10.4%)

$72.96

$60.97

19.7%

4.8%

Phoenix, AZ

10

63.1%

45.7%

38.1%

$104.38

$144.37

(27.7%)

$65.90

$65.95

(0.1%)

4.5%

Orange County, CA

6

67.9%

44.2%

53.6%

$112.74

$135.46

(16.8%)

$76.56

$59.92

27.8%

3.9%

North Carolina East

4

73.9%

57.6%

28.3%

$135.37

$115.53

17.2%

$100.06

$66.57

50.3%

3.6%

Florida Panhandle

5

72.1%

54.7%

31.8%

$134.76

$131.64

2.4%

$97.23

$71.95

35.1%

3.5%

Omaha, NE

4

49.4%

36.2%

36.5%

$137.66

$110.31

24.8%

$67.98

$39.90

70.4%

2.9%

Norfolk/Virginia Beach, VA

4

74.3%

47.5%

56.4%

$131.95

$114.88

14.9%

$98.04

$54.52

79.8%

2.9%

Alaska

2

82.3%

65.1%

26.4%

$165.27

$133.58

23.7%

$135.93

$86.93

56.4%

2.8%

Seattle, WA

3

62.6%

51.9%

20.6%

$133.63

$152.95

(12.6%)

$83.60

$79.40

5.3%

2.5%

Oklahoma City, OK

4

66.0%

42.5%

55.3%

$115.41

$118.03

(2.2%)

$76.14

$50.16

51.8%

2.5%

Nashville, TN

5

61.2%

43.0%

42.3%

$114.33

$137.81

(17.0%)

$69.99

$59.31

18.0%

2.4%

Melbourne, FL

3

64.5%

56.7%

13.8%

$137.52

$151.09

(9.0%)

$88.73

$85.65

3.6%

2.4%

Alabama North

4

74.0%

46.1%

60.5%

$114.04

$111.03

2.7%

$84.42

$51.22

64.8%

2.3%

Miami, FL

3

80.4%

59.4%

35.4%

$119.51

$131.97

(9.4%)

$96.12

$78.42

22.6%

2.2%

Austin, TX

7

63.5%

35.9%

76.9%

$92.99

$107.21

(13.3%)

$59.03

$38.46

53.5%

2.0%

Fort Worth/Arlington, TX

4

70.7%

45.7%

54.7%

$111.98

$125.13

(10.5%)

$79.20

$57.18

38.5%

1.9%

Richmond/Petersburg, VA

4

49.1%

31.1%

57.9%

$130.58

$150.44

(13.2%)

$64.12

$46.84

36.9%

1.8%

Fort Lauderdale, FL

2

83.2%

49.4%

68.4%

$111.53

$154.81

(28.0%)

$92.76

$76.42

21.4%

1.8%

Alabama South

4

64.9%

46.9%

38.4%

$105.49

$107.75

(2.1%)

$68.44

$50.56

35.4%

1.7%

Top 20 Markets

93

66.9%

46.3%

44.5%

$120.64

$133.17

(9.4%)

$80.67

$61.68

30.8%

59.7%

All Other Markets

119

60.3%

43.1%

39.9%

$104.48

$115.85

(9.8%)

$62.97

$49.88

26.2%

40.3%

Total Portfolio

212

63.3%

44.5%

42.2%

$112.20

$123.89

(9.4%)

$70.97

$55.14

28.7%

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 June 30

(Unaudited)

Region

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

STR Region

East North Central

15

55.7%

21.2%

162.7%

$103.74

$87.76

18.2%

$57.77

$18.61

210.4%

3.9%

East South Central

25

74.4%

28.5%

161.1%

$120.70

$99.41

21.4%

$89.76

$28.32

216.9%

10.9%

Middle Atlantic

12

64.0%

25.5%

151.0%

$120.46

$95.44

26.2%

$77.06

$24.32

216.9%

3.4%

Mountain

21

70.1%

27.0%

159.6%

$105.69

$87.95

20.2%

$74.12

$23.71

212.6%

8.0%

New England

4

67.8%

21.0%

222.9%

$135.43

$116.89

15.9%

$91.84

$24.53

274.4%

2.1%

Pacific

31

78.1%

31.5%

147.9%

$138.98

$117.60

18.2%

$108.56

$37.10

192.6%

22.9%

South Atlantic

53

73.6%

32.0%

130.0%

$129.03

$105.94

21.8%

$94.94

$33.87

180.3%

29.4%

West North Central

17

64.2%

20.9%

207.2%

$124.59

$95.40

30.6%

$80.03

$19.92

301.8%

7.6%

West South Central

34

71.3%

28.4%

151.1%

$106.96

$92.27

15.9%

$76.25

$26.21

190.9%

11.8%

Total Portfolio

212

70.8%

28.2%

151.1%

$121.80

$101.51

20.0%

$86.22

$28.61

201.4%

100.0%

                               

Note: Region categorization based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Region

Six Months Ended June 30

(Unaudited)

Region

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

STR Region

East North Central

15

46.0%

35.9%

28.1%

$95.65

$105.80

(9.6%)

$44.04

$38.01

15.9%

2.0%

East South Central

25

65.0%

45.7%

42.2%

$113.14

$117.76

(3.9%)

$73.55

$53.79

36.7%

11.3%

Middle Atlantic

12

56.0%

37.2%

50.5%

$111.34

$119.03

(6.5%)

$62.36

$44.34

40.6%

1.8%

Mountain

21

64.0%

46.3%

38.2%

$102.63

$129.24

(20.6%)

$65.73

$59.85

9.8%

9.5%

New England

4

56.8%

37.3%

52.3%

$121.39

$123.42

(1.6%)

$69.00

$46.06

49.8%

1.7%

Pacific

31

71.4%

50.0%

42.8%

$126.98

$144.15

(11.9%)

$90.68

$72.02

25.9%

24.9%

South Atlantic

53

67.0%

47.7%

40.5%

$116.42

$124.49

(6.5%)

$78.03

$59.44

31.3%

30.6%

West North Central

17

54.1%

37.4%

44.7%

$110.88

$110.16

0.7%

$59.98

$41.21

45.5%

5.9%

West South Central

34

64.3%

43.4%

48.2%

$100.00

$113.69

(12.0%)

$64.34

$49.31

30.5%

12.3%

Total Portfolio

212

63.3%

44.5%

42.2%

$112.20

$123.89

(9.4%)

$70.97

$55.14

28.7%

100.0%

                               

Note: Region categorization based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Three Months Ended June 30

(Unaudited)

Chain Scale/Brand

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

Upscale

Courtyard

33

66.0%

18.9%

249.2%

$128.11

$108.50

18.1%

$84.58

$20.49

312.8%

17.9%

Hilton Garden Inn

38

64.2%

23.7%

170.9%

$117.95

$89.78

31.4%

$75.71

$21.24

256.5%

16.1%

Homewood Suites

29

82.4%

47.4%

73.8%

$120.06

$98.85

21.5%

$98.95

$46.83

111.3%

13.7%

Hyatt House

1

52.2%

$107.62

$56.16

0.1%

Hyatt Place

2

60.8%

36.1%

68.4%

$109.97

$86.64

26.9%

$66.91

$31.29

113.8%

0.4%

Residence Inn

29

79.0%

43.5%

81.6%

$130.50

$115.95

12.5%

$103.14

$50.43

104.5%

17.9%

SpringHill Suites

9

69.2%

17.6%

293.2%

$103.34

$74.07

39.5%

$71.48

$13.06

447.3%

3.2%

Upscale Total

141

71.0%

30.4%

133.6%

$122.36

$102.13

19.8%

$86.87

$31.01

180.1%

69.3%

Upper Midscale

Fairfield Inn / Fairfield Inn & Suites

10

68.1%

15.2%

348.0%

$98.85

$83.31

18.7%

$67.30

$12.64

432.4%

2.8%

Hampton Inn / Hampton Inn & Suites

36

67.8%

18.6%

264.5%

$122.38

$96.24

27.2%

$82.99

$17.89

363.9%

15.8%

Home2 Suites

10

84.4%

44.6%

89.2%

$123.22

$102.27

20.5%

$104.06

$45.56

128.4%

5.9%

TownePlace Suites

9

82.1%

43.0%

90.9%

$108.39

$98.49

10.1%

$89.02

$42.36

110.2%

4.2%

Upper Midscale Total

65

71.9%

24.6%

192.3%

$117.29

$97.01

20.9%

$84.33

$23.84

253.7%

28.7%

Upper Upscale

Embassy Suites

2

89.0%

53.6%

66.0%

$185.37

$131.73

40.7%

$164.93

$70.61

133.6%

2.5%

Marriott

2

43.6%

6.2%

603.2%

$124.79

$93.08

34.1%

$54.41

$5.74

847.9%

0.6%

Upper Upscale Total

4

58.9%

22.2%

165.3%

$155.70

$124.65

24.9%

$91.76

$27.73

230.9%

3.1%

Independents

Independents

2

64.0%

9.1%

603.3%

$122.20

$126.79

(3.6%)

$78.18

$11.51

579.2%

(1.1)%

Independents Total

2

64.0%

9.1%

603.3%

$122.20

$126.79

(3.6%)

$78.18

$11.51

579.2%

(1.1)%

Total Portfolio

212

70.8%

28.2%

151.1%

$121.80

$101.51

20.0%

$86.22

$28.61

201.4%

100.0%

                               

Note: Chain scale categorization based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Six Months Ended June 30

(Unaudited)

Chain Scale/Brand

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

Upscale

Courtyard

33

57.0%

37.9%

50.4%

$114.63

$129.13

(11.2%)

$65.36

$48.94

33.6%

16.1%

Hilton Garden Inn

38

55.5%

41.1%

35.0%

$108.46

$119.87

(9.5%)

$60.15

$49.22

22.2%

13.9%

Homewood Suites

29

76.3%

57.7%

32.2%

$113.04

$122.90

(8.0%)

$86.25

$70.90

21.7%

15.7%

Hyatt House

1

51.3%

$107.01

$54.91

0.1%

Hyatt Place

2

58.1%

55.0%

5.6%

$105.23

$95.80

9.8%

$61.14

$52.67

16.1%

0.5%

Residence Inn

29

72.7%

55.1%

31.9%

$123.05

$133.30

(7.7%)

$89.50

$73.44

21.9%

20.7%

SpringHill Suites

9

64.5%

37.8%

70.6%

$92.58

$113.08

(18.1%)

$59.69

$42.72

39.7%

3.2%

Upscale Total

141

63.6%

45.9%

38.6%

$112.93

$125.13

(9.7%)

$71.79

$57.48

24.9%

70.2%

Upper Midscale

Fairfield Inn / Fairfield Inn & Suites

10

61.3%

36.8%

66.6%

$89.02

$109.20

(18.5%)

$54.56

$40.15

35.9%

2.6%

Hampton Inn / Hampton Inn & Suites

36

59.1%

38.1%

55.1%

$111.57

$123.50

(9.7%)

$65.98

$47.03

40.3%

14.6%

Home2 Suites

10

76.3%

57.3%

33.2%

$113.78

$115.83

(1.8%)

$86.84

$66.39

30.8%

6.5%

TownePlace Suites

9

75.7%

55.5%

36.4%

$100.85

$107.94

(6.6%)

$76.39

$59.93

27.5%

4.7%

Upper Midscale Total

65

63.9%

42.6%

50.0%

$107.18

$117.77

(9.0%)

$68.45

$50.14

36.5%

28.4%

Upper Upscale

Embassy Suites

2

81.3%

61.3%

32.6%

$168.70

$156.65

7.7%

$137.07

$96.06

42.7%

2.7%

Marriott

2

38.5%

24.7%

55.9%

$118.73

$143.08

(17.0%)

$45.67

$35.39

29.0%

0.4%

Upper Upscale Total

4

52.9%

37.1%

42.6%

$144.66

$150.68

(4.0%)

$76.56

$55.96

36.8%

3.1%

Independents

Independents

2

59.9%

30.4%

97.0%

$118.08

$134.45

(12.2%)

$70.69

$40.86

73.0%

(1.7)%

Independents Total

2

59.9%

30.4%

97.0%

$118.08

$134.45

(12.2%)

$70.69

$40.86

73.0%

(1.7)%

Total Portfolio

212

63.3%

44.5%

42.2%

$112.20

$123.89

(9.4%)

$70.97

$55.14

28.7%

100.0%

                               

Note: Chain scale categorization based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Three Months Ended June 30

(Unaudited)

Location

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

Q2 2020

% Change

Q2 2021

STR Location

Airport

18

75.4%

38.6%

95.3%

$108.92

$88.37

23.3%

$82.09

$34.09

140.8%

7.9%

Interstate

4

65.5%

35.6%

84.0%

$102.39

$93.65

9.3%

$67.09

$33.38

101.0%

1.4%

Resort

11

74.0%

27.2%

172.1%

$150.12

$133.60

12.4%

$111.07

$36.30

206.0%

8.3%

Small Metro/Town

11

76.3%

32.5%

134.8%

$103.36

$91.25

13.3%

$78.91

$29.70

165.7%

4.2%

Suburban

125

73.3%

29.9%

145.2%

$118.86

$100.87

17.8%

$87.09

$30.13

189.0%

57.0%

Urban

43

61.9%

19.5%

217.4%

$133.44

$106.45

25.4%

$82.54

$20.81

296.6%

21.2%

Total Portfolio

212

70.8%

28.2%

151.1%

$121.80

$101.51

20.0%

$86.22

$28.61

201.4%

100.0%

                               

Note: Location categorization based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Six Months Ended June 30

(Unaudited)

Location

Occupancy

ADR

RevPAR

% of Adjusted
Hotel EBITDA

# of Hotels

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

YTD 2020

% Change

YTD 2021

STR Location

Airport

18

69.6%

53.9%

29.1%

$102.41

$114.81

(10.8%)

$71.28

$61.93

15.1%

8.2%

Interstate

4

57.5%

45.3%

26.9%

$99.46

$98.95

0.5%

$57.23

$44.83

27.7%

1.4%

Resort

11

63.4%

44.8%

41.5%

$133.92

$140.82

(4.9%)

$84.86

$63.06

34.6%

8.0%

Small Metro/Town

11

69.5%

49.6%

40.1%

$101.38

$117.89

(14.0%)

$70.51

$58.45

20.6%

5.3%

Suburban

125

65.2%

45.2%

44.2%

$110.05

$121.30

(9.3%)

$71.79

$54.81

31.0%

57.3%

Urban

43

55.4%

38.7%

43.2%

$120.26

$134.65

(10.7%)

$66.67

$52.06

28.1%

19.8%

Total Portfolio

212

63.3%

44.5%

42.2%

$112.20

$123.89

(9.4%)

$70.97

$55.14

28.7%

100.0%

                               

Note: Location categorization based on STR designation.