Apple Hospitality REIT Reports Results of Operations for Second Quarter 2026

RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the second quarter ended June 30, 2026.

Justin Knight, Chief Executive Officer of Apple Hospitality, commented, “We are pleased to report Comparable Hotels RevPAR growth of more than 5% for the second quarter, driven by broad-based improvements in both business and leisure travel demand that extend beyond the impact of last year's headwinds. Improvement in weekday occupancy outpaced improvement in our already strong weekend occupancy, indicative of strengthening business travel and continued robust leisure demand across our portfolio. Our asset management and operating teams did an excellent job managing expenses across our efficient, rooms-focused hotels, achieving exceptional flow through of top-line improvements to deliver meaningful margin expansion and strong bottom-line growth. Demand momentum has continued into the third quarter, with preliminary reports for the month of July indicating Comparable Hotels RevPAR growth of more than 5.5% as compared to the same period last year. While FIFA World Cup 2026 events drove incremental demand and pricing power in our host markets, they were not the primary driver of our outperformance during the quarter. We are pleased with the improved performance we are seeing throughout our portfolio as consumers continue to prioritize travel and demand for our broadly diversified, rooms-focused hotels remains resilient.

“We successfully refinanced our primary unsecured credit facility and one of our term loans in July, further enhancing the strength and financial flexibility of our balance sheet and bolstering our already strong liquidity position,” said Mr. Knight. “In addition to extended staggered maturities and improved pricing, the refinancing upsized our revolving credit facility and one of our term loans, ensuring we are well positioned to achieve our strategic growth and capital allocation priorities in the coming years. We greatly appreciate the support of our lenders, their conviction in our core strategy and their continued confidence in the underlying fundamentals of our business.”

Mr. Knight continued, “Our outstanding results during the quarter highlight the strength of our corporate and on-site management teams and further validate our proven strategy of investing in a diversified portfolio of high-quality, rooms-focused hotels with low leverage. During the quarter, we completed the sale of our Hampton Inn & Suites Rochester-North for a gross sales price of approximately $9 million. We have a demonstrated record of transacting at optimal times in the cycle, balancing both near- and long-term investment decisions to enhance our existing portfolio, optimize our capital reinvestment program and maximize total returns for our shareholders over time. We are encouraged by the demand outlook for the remainder of the year and confident we are well positioned for the long term.”

Hotel Portfolio Overview

As of June 30, 2026, Apple Hospitality owned 216 hotels with an aggregate of 29,459 guest rooms located in 83 markets throughout 37 states and the District of Columbia.

Second Quarter 2026 Highlights

• Operating performance: For the second quarter 2026, the Company achieved Comparable Hotels ADR of approximately $170, up 3.5% as compared to the second quarter 2025; Comparable Hotels Occupancy of approximately 80%, up 1.6% as compared to the second quarter 2025; and Comparable Hotels RevPAR of approximately $136, up 5.3% as compared to the second quarter 2025. The Company's Comparable Hotels ADR, Occupancy and RevPAR exceeded industry averages as reported by STR for the second quarter 2026. Preliminary results for the month of July 2026 indicate an increase in RevPAR of more than 5.5% as compared to July 2025.
• Bottom-line performance: For the second quarter 2026, the Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $153 million, up 9.7% as compared to the second quarter 2025; Comparable Hotels Adjusted Hotel EBITDA Margin of 38.1%, up 120 bps as compared to the second quarter 2025; Adjusted EBITDAre of approximately $145 million, up 7.5% as compared to the second quarter 2025; and MFFO of approximately $123 million, up 9.0% as compared to the second quarter 2025.
• Refinancing transactions: In July 2026, the Company amended and restated its existing unsecured $1.2 billion credit facility, increasing the total credit facility to approximately $1.3 billion and extending and staggering the maturity dates while achieving improved pricing terms. The Company also amended and restated its $130 million term loan, increasing the amount of the term loan to $160 million and extending the maturity date by seven years.
• Balance sheet: The Company has maintained the strength and flexibility of its balance sheet. At June 30, 2026, the Company’s total debt to total capitalization, net of cash and cash equivalents, was approximately 27.4%.
• Transactional activity: In April 2026, the Company sold the 124-room Hampton Inn & Suites Rochester-North, in Rochester, Minnesota, for a gross sales price of approximately $8.7 million.
• Monthly distributions: During the three months ended June 30, 2026, the Company paid distributions totaling $0.24 per common share. Based on the Company’s common stock closing price of $16.56 on August 3, 2026, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 5.8%.

The following table highlights the Company’s Comparable Hotels monthly performance during the second quarter 2026 as compared to the second quarter 2025 (in thousands, except statistical data):

Portfolio Activity

Contract for Potential Acquisition

As previously announced, the Company has entered into a fixed-price, forward-purchase contract for the purchase of an AC Hotel by Marriott that is under development in Anchorage, Alaska, for an anticipated total purchase price of $65.5 million with an expected 160 rooms, which the Company anticipates acquiring in the fourth quarter 2027. There are many conditions to closing on this hotel that have not yet been satisfied, and there can be no assurance that closing on this hotel will occur under the outstanding purchase contract.

Development Project

As previously announced, the Company has entered into a fixed-price, forward-purchase contract with a third-party developer to develop a dual-branded property, consisting of an AC Hotel by Marriott and a Residence Inn by Marriott in Las Vegas, Nevada, for an anticipated total purchase price of approximately $143.7 million. The two hotels are under development on the land the Company owns adjacent to its existing SpringHill Suites by Marriott Las Vegas Convention Center. The Company anticipates the AC Hotel and the Residence Inn will be completed and opened for business in the second quarter 2028. Upon completion, the AC Hotel is expected to have approximately 237 guest rooms and the Residence Inn is expected to have approximately 160 guest rooms. As of June 30, 2026, the Company has capitalized $9.9 million related to the construction of the two hotels.

Disposition

As previously announced, in April 2026, the Company sold the 124-room Hampton Inn & Suites by Hilton Rochester-North, in Rochester, Minnesota, for a gross sales price of approximately $8.7 million, resulting in a gain on sale of approximately $0.2 million.

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, 2026, the Company invested approximately $40 million in capital expenditures. The Company anticipates investing approximately $85 million to $95 million in capital improvements during 2026, which now includes comprehensive renovation projects for approximately 18 hotels. The increase of $5.0 million at the midpoint of the Company's previous estimate of anticipated capital expenditures for 2026 and the decrease in the number of comprehensive renovation projects are primarily a result of prioritizing two larger projects: the renovation of the Embassy Suites by Hilton Anchorage and the rebranding of the Residence Inn by Marriott Seattle Downtown/Lake Union to a Homewood Suites by Hilton. The Company's expectations reflect its ongoing prioritization and management of its overall capital spending to keep its hotels competitive, while weighing larger investments toward the highest return opportunities. The Company's estimates of future capital expenditures are subject to change, and inflationary pressures, supply chain disruptions, tariffs, or other factors could result in additional cost increases or delays to anticipated projects.

Balance Sheet and Liquidity

Summary

As of June 30, 2026, the Company had approximately $1.5 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.8%, cash on hand of approximately $10 million and availability under its revolving credit facility of approximately $602 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt as of June 30, 2026, was comprised of approximately $162 million in property-level debt secured by nine hotels and approximately $1.3 billion outstanding under its unsecured credit facilities. During the second quarter, the Company repaid in full one secured mortgage loan, for a total of approximately $19 million, bringing the number of unencumbered hotels in the Company’s portfolio as of June 30, 2026, to 207. The Company’s total debt to total capitalization, net of cash and cash equivalents at June 30, 2026, was approximately 27.4%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of June 30, 2026, the Company’s weighted-average debt maturities were approximately two years.

Refinancing Transactions

In July 2026, the Company amended and restated its existing unsecured $1.2 billion credit facility (the "Main Credit Facility"), increasing the borrowing capacity to approximately $1.3 billion, extending maturity dates and achieving improved pricing terms across the majority of the credit agreement’s leverage-based pricing grid. The Main Credit Facility is comprised of a term loan of $275 million with an extended maturity date of July 24, 2031; a term loan of $300 million with an extended maturity date of January 23, 2032; and a revolving credit facility of $700 million with an initial maturity date of July 24, 2030, which may be extended up to one year subject to certain conditions. The amendments under the Main Credit Facility provide for additional capacity of $50 million under the revolving credit facility, improve certain financial covenants, and update pricing. The amended and restated credit agreement includes an accordion feature in which the amount of the total Main Credit Facility may be increased from approximately $1.3 billion to $1.75 billion. The pricing grid on the Main Credit Facility ranges from a SOFR rate plus 1.35% to 2.30%, depending on the specific loan and the Company’s leverage ratio as calculated under the terms of the credit agreement. The Company also successfully worked with its lenders to conform the pricing grid on two other unsecured credit facilities, totaling $470 million, to match the improved pricing under the Main Credit Facility. The amendments did not change the principal amounts of the two term loans or their maturity dates.

The Company also amended and restated its $130 million term loan, increasing the amount of the term loan to $160 million and extending the maturity date by seven years (the “Seven-Year Term Loan”) to July 24, 2033. The $30 million increase in the Seven-Year Term Loan amount from $130 million to $160 million was funded at closing and was used to repay the Company’s then-outstanding revolving credit facility balance and secured debt maturities. The credit agreement for the Seven-Year Term Loan includes an accordion feature in which the total facility may be increased from $160 million to $300 million. Pricing ranges from a SOFR rate plus 1.70% to 2.65%, depending on the Company’s leverage ratio as calculated under the terms of the credit agreement.

Following the completion of these refinancing transactions, the Company has no significant debt maturities until 2029, reinforcing Apple Hospitality's conservative, well-laddered debt maturity schedule and financial flexibility. The Company has extended the weighted average maturity of its total consolidated debt to nearly five years and has no outstanding borrowings under its revolving credit facility, preserving substantial available liquidity to support the Company’s long-term growth strategy.

Capital Markets

Share Repurchase Program

The Company has in place a Share Repurchase Program that provides for share repurchases in open market transactions. The Company did not repurchase any common shares under the Share Repurchase Program during the three and six months ended June 30, 2026. As of June 30, 2026, the Company had approximately $242.5 million remaining under its Share Repurchase Program for the repurchase of shares.

ATM Program

The Company also has in place an at-the-market offering program (the “ATM Program”). No shares were sold under the ATM Program during the three and six months ended June 30, 2026. As of June 30, 2026, the Company had $500 million remaining under its ATM Program for the issuance of shares.

Shareholder Distributions

During the three months ended June 30, 2026, the Company paid distributions totaling $0.24 per common share. Based on the Company’s common stock closing price of $16.56 on August 3, 2026, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 5.8%. While the Company currently expects monthly distributions to continue, each distribution is subject to approval by the Company’s Board of Directors. The Company’s Board of Directors, in consultation with management, will continue to monitor the Company’s distribution rate and timing relative to the performance of its hotels, capital improvement needs, varying economic cycles, acquisitions, dispositions, other cash requirements and the Company’s REIT status for federal income tax purposes, and may make adjustments as it deems appropriate.

Updated 2026 Outlook

The Company is updating its operational and financial outlook for 2026. 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. The revised guidance range reflects the Company's stronger-than-anticipated second quarter 2026 performance and an increase in its outlook for the remainder of the year, driven by improved business and leisure travel demand. The Company is encouraged by the setup for the remainder of the year, given the broad-based demand strength across its markets and upcoming favorable comparisons to prior periods impacted by government-related disruptions. As compared to the midpoint of previously provided 2026 guidance, the Company is increasing Net income by $10 million, increasing Adjusted EBITDAre by $17.5 million, increasing Comparable Hotels RevPAR Change by 225 bps, increasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 75 bps, and increasing Capital expenditures by $5 million. Comparable Hotels RevPAR Change guidance, which is the change in Comparable Hotels RevPAR in 2026 compared to 2025, and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, as if the hotels were owned as of January 1, 2025, and exclude dispositions since January 1, 2025. Results for periods prior to the Company’s ownership are not included in the Company’s actual Consolidated Financial Statements, are based on information from the prior owner of each hotel, and have not been audited or adjusted. For the full year 2026, the Company anticipates its 2026 results will be in the following range:

Second Quarter 2026 Earnings Conference Call

The Company will host a quarterly conference call for investors and interested parties at 11 a.m. Eastern Time on Thursday, August 6, 2026. 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 3 p.m. Eastern Time on August 6, 2026, through 11:59 p.m. Eastern Time on August 20, 2026. 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 13760939. 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 REIT, Inc.
Kelly Clarke, Vice President, Investor Relations
804-727-6321
kclarke@applereit.com