Apple Hospitality REIT Inc

APLE

Equity

ISIN null / Valor 28266921

New York Stock Exchange, Inc (2025-11-21)

USD 11.75+3.71%

Apple Hospitality REIT Inc
UMushroom community rating:

4.00 1 votes No rating yet

NegativeNeutralPositive

About company

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust that owns and manages a large portfolio of upscale, room-focused hotels across the United States. The company’s assets include 221 hotels with approximately 29,900 guest rooms located in 85 markets across 37 states and the District of Columbia. Apple Hospitality’s portfolio predominantly features well-known brands, including 97 Marriott-branded hotels, 118 Hilton-branded hotels, five Hyatt-branded hotels, and one independent property. By maintaining long-term leases with established hotel operators, the REIT generates income through its ownership of high-quality hospitality properties, positioning itself as a significant player in the U.S. hotel real estate market.

Summarized from source with an LLMView SourceSector: Finance

Net Income Growth

For the fourth quarter 2024, Apple Hospitality reported a net income of $29.8 million, a 43.6% increase compared to $20.8 million in Q4 2023. For the full year 2024, net income reached $214.1 million, up 20.6% from $177.5 million in 2023.

Operating Performance

The company's operating income for Q4 2024 was $49.9 million, marking a 28.3% increase from $38.9 million in the same quarter last year. On an annual basis, operating income rose by 18.3% to $292.8 million compared to $247.5 million in 2023.

Adjusted EBITDA and MFFO

Adjusted EBITDA for Q4 2024 was $96.6 million, a 6.7% increase from $90.5 million in Q4 2023. For the full year, Adjusted EBITDA grew by 6.9% to $467.2 million. Modified Funds from Operations (MFFO) also saw a 5.7% increase in Q4 2024 to $76.5 million and a 5.9% rise to $388.5 million for the year.

Hotel Performance Metrics

Comparable Hotels Adjusted Hotel EBITDA was $108.4 million for Q4 2024, up 3% from the previous year, and $508.6 million for the full year, showing a slight improvement. The Average Daily Rate (ADR) increased by 1.7% to $152.39 in Q4 2024 and by 1.4% to $158.01 for the year. Occupancy rates also improved, reaching 71.4% in Q4 2024 and 75.0% for the full year.

Transactional Activity and Capital Allocation

In 2024, Apple Hospitality acquired two hotels for approximately $196.3 million and sold six non-core hotels for over $63.4 million. Additionally, the company repurchased $35 million in common shares and reinvested $78 million in its portfolio. These actions reflect the company's commitment to optimizing its portfolio and enhancing shareholder value.

Balance Sheet Strength

As of December 31, 2024, Apple Hospitality maintained a strong balance sheet with total debt net of cash and equivalents at $1.47 billion, representing 28.5% of total capitalization. The company continues to ensure financial flexibility for future growth and investments.

Distributions and Shareholder Returns

During Q4 2024, Apple Hospitality paid distributions of $0.24 per common share. With an annualized distribution rate of $0.96 per share, the current yield stands at approximately 6.5%, based on the February 21, 2025 closing price of $14.76.

Summarized from source with an LLMView Source

Key figures

-25.3%1Y

-28.5%3Y

-7.99%5Y

Performance

29.6%1Y

25.7%3Y

28.3%5Y

Volatility