Apple Hospitality REIT Reports Results of Operations for Second Quarter 2019
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, 2019.
|
Selected Statistical and Financial Data |
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|
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, |
|||||||||||||
|
2019 |
|
2018 |
|
% Change |
|
2019 |
|
2018 |
|
% Change |
|||||
|
|
|
||||||||||||||
| Net income(2) |
$ |
62,090 |
$ |
67,630 |
(8.2%) |
$ |
100,241 |
$ |
109,812 |
(8.7%) |
|||||
| Net income per share(2) |
$ |
0.28 |
$ |
0.29 |
(3.4%) |
$ |
0.45 |
$ |
0.48 |
(6.2%) |
|||||
|
|
|
||||||||||||||
| Adjusted EBITDAre(2) |
$ |
126,451 |
$ |
130,915 |
(3.4%) |
$ |
227,118 |
$ |
231,129 |
(1.7%) |
|||||
| Comparable Hotels Adjusted Hotel EBITDA(2) |
$ |
134,940 |
$ |
135,586 |
(0.5%) |
$ |
242,138 |
$ |
242,120 |
– |
|||||
| Comparable Hotels Adjusted Hotel EBITDA Margin %(2) |
|
39.6% |
|
40.0% |
(40 bps) |
|
37.9% |
|
38.2% |
(30 bps) |
|||||
| Modified funds from operations (MFFO)(2) |
$ |
110,190 |
$ |
117,313 |
(6.1%) |
$ |
194,914 |
$ |
205,215 |
(5.0%) |
|||||
| MFFO per share(2) |
$ |
0.49 |
$ |
0.51 |
(3.9%) |
$ |
0.87 |
$ |
0.89 |
(2.2%) |
|||||
|
|
|
||||||||||||||
| Average Daily Rate (ADR) (Actual) |
$ |
141.60 |
$ |
139.58 |
1.4% |
$ |
139.09 |
$ |
137.09 |
1.5% |
|||||
| Occupancy (Actual) |
|
81.4% |
|
81.7% |
(0.4%) |
|
77.6% |
|
78.2% |
(0.8%) |
|||||
| Revenue Per Available Room (RevPAR) (Actual) |
$ |
115.30 |
$ |
114.09 |
1.1% |
$ |
107.95 |
$ |
107.20 |
0.7% |
|||||
|
|
|
||||||||||||||
| Comparable Hotels ADR |
$ |
141.60 |
$ |
140.94 |
0.5% |
$ |
139.62 |
$ |
138.49 |
0.8% |
|||||
| Comparable Hotels Occupancy |
|
81.4% |
|
81.9% |
(0.6%) |
|
77.8% |
|
78.4% |
(0.8%) |
|||||
| Comparable Hotels RevPAR |
$ |
115.30 |
$ |
115.44 |
(0.1%) |
$ |
108.58 |
$ |
108.62 |
– |
|||||
|
|
|
||||||||||||||
| Distributions paid |
$ |
67,155 |
$ |
69,060 |
(2.8%) |
$ |
134,343 |
$ |
138,204 |
(2.8%) |
|||||
| Distributions paid per share |
$ |
0.30 |
$ |
0.30 |
– |
$ |
0.60 |
$ |
0.60 |
– |
|||||
| Total debt outstanding |
$ |
1,389,267 |
|||||||||||||
| Total debt to total capitalization (3) |
|
28.1% |
|||||||||||||
|
(1) |
Explanations of and reconciliations to net income 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. |
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|
(2) |
On January 1, 2019, the Company adopted the Financial Accounting Standards Board’s Accounting Standards Update No. 2016-02, Leases (Topic 842). Under the new lease accounting standard, the Company classified four ground leases as finance leases that were previously classified as operating leases in accordance with the previous accounting standard. See discussion below for additional information on the adoption of the new lease accounting standard. |
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|
(3) |
Total debt outstanding divided by total debt outstanding plus equity market capitalization based on the Company’s closing share price of $15.86 on June 30, 2019. |
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|
Comparable Hotels is defined as the 234 hotels owned by the Company as of June 30, 2019. 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. |
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Justin Knight, President and Chief Executive Officer of Apple Hospitality REIT, commented, “Despite ongoing supply and cost pressures across the lodging industry, we continued to produce results in line with our expectations. Through portfolio optimization, strategic revenue management and effective cost control measures, we increased actual RevPAR from the same period last year and generated one of the best Comparable Hotels Adjusted Hotel EBITDA Margins in the sector of 39.6 percent for the second quarter of this year. Demand remains healthy across the majority of our markets, generally keeping pace with new supply, and we anticipate steady fundamentals in the third quarter. We will continue to diligently work to maximize the performance of our hotels and pursue opportunities that will further enhance the strength of our Company.”
Portfolio Activity
The Company has outstanding contracts for the potential purchase of seven hotels for a combined total expected purchase price of approximately $216 million, including purchase contracts the Company entered into in July 2019 for a Hilton Garden Inn to be constructed in Madison, Wisconsin, and an existing independent boutique hotel in downtown Richmond, Virginia. The anticipated purchase price of the Hilton Garden Inn to be constructed in Madison, Wisconsin, next to the University of Wisconsin-Madison, is approximately $50 million. The Company expects the hotel will have 176 guest rooms and construction will be completed in late 2020 or early 2021. The existing hotel in downtown Richmond, Virginia, is an independent boutique hotel with 55 guest rooms and an anticipated gross purchase price of approximately $7 million. If all conditions to closing are met, the Company anticipates acquiring the Richmond hotel before the end of 2019. As previously announced, the other five hotels under contract are currently under development and the Company anticipates acquiring the five hotels over the next 12 to 24 months from June 30, 2019, if all conditions to closing are met. There are many conditions to closing under each of the contracts that have not yet been satisfied, and there can be no assurance that closings on the seven hotels will occur.
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, 2019, the Company invested approximately $33 million in capital expenditures. The Company plans to continue to reinvest in its hotels and anticipates investing an additional $45 million to $55 million in capital improvements during the remainder of 2019, which includes various scheduled renovation projects at approximately 15 to 20 properties, including the Company’s full-service Marriott in Richmond, Virginia.
Adoption of New Lease Accounting Standard
On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842). Under this standard, lessees are required to recognize most leases on their balance sheets as right-of-use assets and lease liabilities. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new standard, four of the Company’s ground leases that were previously classified as operating leases under the previous accounting standard are classified as financing leases under Topic 842. For these finance leases, effective January 1, 2019, the Company recognizes depreciation and amortization expense and interest and other expense, net in the Company’s consolidated statements of operations, instead of operating ground lease expense. While the total expense recognized over the life of a lease is unchanged, the timing of expense recognition for these finance leases results in higher expense during the earlier years of the lease and lower expense during the later years of the lease. For the three and six months ended June 30, 2019, the Company recognized approximately $2.1 million and $4.0 million of interest expense, respectively, and approximately $1.1 million and $2.2 million of amortization expense, respectively, associated with these four finance leases. Under the previous accounting standard, the Company would have recognized approximately $1.8 million and $3.4 million of cash operating ground lease expense and $1.1 million and $2.2 million of non-cash straight-line ground lease expense and amortization of intangible lease expense during the three and six months ended June 30, 2019, respectively. As a result of the new lease standard, at June 30, 2019, the Company’s balance sheet reflects finance ground lease assets, net, of approximately $142.7 million, operating lease assets, net, of approximately $28.9 million and associated combined lease liabilities of approximately $176.0 million.
Balance Sheet
As of June 30, 2019, Apple Hospitality had approximately $1.4 billion of total outstanding indebtedness with a current combined weighted-average interest rate of approximately 3.8 percent for the remainder of 2019. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding indebtedness is comprised of approximately $462 million in property-level debt secured by 29 hotels and $928 million outstanding on its unsecured credit facilities. Apple Hospitality’s undrawn capacity on its unsecured credit facilities at June 30, 2019 was approximately $232 million. The Company’s total debt to total capitalization at June 30, 2019 was approximately 28 percent, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. The Company’s weighted-average debt maturities are 5 years, and the weighted-average maturity of its effectively fixed-rate debt is 4 years at a weighted-average interest rate of 4.0 percent.
Shareholder Distributions
Apple Hospitality paid distributions of $0.30 per common share during the three-month period ended June 30, 2019. Based on the Company’s common share closing price of $15.20 on August 1, 2019, the annualized distribution rate of $1.20 per common share represents an annual yield of approximately 7.9 percent. 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.
2019 Outlook
Apple Hospitality is providing its operational and financial outlook for 2019. 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. As compared to previously provided 2019 guidance, the Company is narrowing its guidance at both ends of the range for Comparable Hotels RevPAR Change by 25 bps and Comparable Hotels Adjusted Hotel EBITDA Margin % by 20 bps. The Company is maintaining the low end of the range and decreasing the high end of the range by $4 million for Net Income and Adjusted EBITDAre. The reduction in the midpoint of the Company’s guidance for Net Income and Adjusted EBITDAre is a result of higher anticipated general and administrative expenses associated with outperformance of the Company’s relative shareholder return metrics, which are components of the Company’s incentive plans. Comparable Hotels RevPAR Change and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, as if the hotels were owned as of January 1, 2018, and exclude completed dispositions since January 1, 2018. For the full year 2019, the Company anticipates:
|
2019 Guidance(1) |
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Low-End |
|
|
High-End |
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|
|
|
|
||
| Net Income |
$167 Million |
|
|
$188 Million |
|
|
|
|
|
|
||
| Comparable Hotels RevPAR Change |
(0.75%) |
|
|
0.75% |
|
|
|
|
|
|
||
| Comparable Hotels Adjusted Hotel EBITDA Margin % |
36.4% |
|
|
37.0% |
|
|
|
|
|
|
||
| Adjusted EBITDAre |
$425 Million |
|
|
$441 Million |
|
|
(1) |
Explanations of and reconciliations to net income guidance of Adjusted EBITDAre guidance are included below. |
Second Quarter 2019 Earnings Conference Call
The Company will host a quarterly conference call for investors and interested parties on Tuesday, August 6, 2019, at 9:00 a.m. Eastern Time. 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 12:00 p.m. Eastern Time on August 6, 2019, through 11:59 p.m. Eastern Time on August 27, 2019. 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 13692023. 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’s portfolio consists of 234 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. Franchised with industry-leading brands, the Company’s portfolio comprises 108 Marriott-branded hotels, 125 Hilton-branded hotels and one Hyatt-branded hotel. For more information, please visit www.applehospitalityreit.com.
Apple Hospitality REIT Non-GAAP Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: Funds from Operations (“FFO”); Modified FFO (“MFFO”); Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”); Earnings Before Interest, Income Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”); Adjusted EBITDAre (“Adjusted EBITDAre”); and Adjusted Hotel EBITDA (“Adjusted Hotel EBITDA”). These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss), cash flow from operations or any other operating GAAP measure. FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA are not necessarily indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions. Although FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as reported by other companies that do not define such terms exactly as the Company defines such terms, the Company believes these supplemental measures are useful to investors when comparing the Company’s results between periods and with other REITs. Reconciliations of these non-GAAP financial measures to net income (loss) are provided in the following pages.
Forward-Looking Statements Disclaimer
Certain statements contained in this press release, other than historical facts, may be considered forward-looking statements. These forward-looking statements are predictions and generally can be identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Apple Hospitality to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability of Apple Hospitality to effectively acquire and dispose of properties; the ability of Apple Hospitality to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the real estate and real estate capital markets; financing risks; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact Apple Hospitality’s business, assets or classification as a real estate investment trust. Although Apple Hospitality believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Apple Hospitality or any other person that the results or conditions described in such statements or the objectives and plans of Apple Hospitality will be achieved. In addition, Apple Hospitality’s qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code. Readers should carefully review Apple Hospitality’s financial statements and the notes thereto, as well as the risk factors described in Apple Hospitality’s filings with the Securities and Exchange Commission, including, but not limited to, in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Any forward-looking statement that Apple Hospitality makes speaks only as of the date of such statement. Apple Hospitality undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.
For additional information or to receive press releases by email, visit www.applehospitalityreit.com.
| Apple Hospitality REIT, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands, except share data) | ||||||||
|
June 30, |
|
December 31, |
||||||
|
2019 |
|
2018 |
||||||
|
(unaudited) |
|
|
||||||
| Assets | ||||||||
| Investment in real estate, net of accumulated depreciation and amortization of $971,738 and $909,893, respectively |
$ |
4,858,103 |
|
$ |
4,816,410 |
|
||
| Restricted cash-furniture, fixtures and other escrows |
|
33,199 |
|
|
33,632 |
|
||
| Due from third party managers, net |
|
52,214 |
|
|
29,091 |
|
||
| Other assets, net |
|
45,323 |
|
|
49,539 |
|
||
| Total Assets |
$ |
4,988,839 |
|
$ |
4,928,672 |
|
||
| Liabilities | ||||||||
| Debt, net |
$ |
1,384,314 |
|
$ |
1,412,242 |
|
||
| Finance lease liabilities |
|
163,508 |
|
|
– |
|
||
| Accounts payable and other liabilities |
|
88,949 |
|
|
107,420 |
|
||
| Total Liabilities |
|
1,636,771 |
|
|
1,519,662 |
|
||
| 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 223,869,190 and 223,997,348 shares, respectively |
|
4,493,598 |
|
|
|
4,495,073 |
|
|
| Accumulated other comprehensive income (loss) |
|
(6,158 |
) |
|
10,006 |
|
||
| Distributions greater than net income |
|
(1,135,372 |
) |
|
(1,096,069 |
) |
||
| Total Shareholders’ Equity |
|
3,352,068 |
|
|
3,409,010 |
|
||
| Total Liabilities and Shareholders’ Equity |
$ |
4,988,839 |
|
$ |
4,928,672 |
|
||
|
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, 2019. |
| Apple Hospitality REIT, Inc. | ||||||||||||||||
| Consolidated Statements of Operations and Comprehensive Income | ||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
|
June 30, |
||||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||
| Revenues: | ||||||||||||||||
| Room |
$ |
315,232 |
|
$ |
319,022 |
|
$ |
594,702 |
|
$ |
593,858 |
|
||||
| Food and beverage |
|
15,692 |
|
|
16,518 |
|
|
30,707 |
|
|
32,228 |
|
||||
| Other |
|
10,193 |
|
|
9,174 |
|
|
19,495 |
|
|
17,017 |
|
||||
| Total revenue |
|
341,117 |
|
|
344,714 |
|
|
644,904 |
|
|
643,103 |
|
||||
| Expenses: | ||||||||||||||||
| Hotel operating expense: | ||||||||||||||||
| Operating |
|
80,166 |
|
|
81,242 |
|
|
155,746 |
|
|
157,196 |
|
||||
| Hotel administrative |
|
26,967 |
|
|
26,558 |
|
|
52,597 |
|
|
51,660 |
|
||||
| Sales and marketing |
|
30,831 |
|
|
28,168 |
|
|
58,525 |
|
|
53,500 |
|
||||
| Utilities |
|
9,561 |
|
|
10,247 |
|
|
19,500 |
|
|
20,530 |
|
||||
| Repair and maintenance |
|
13,041 |
|
|
13,476 |
|
|
25,907 |
|
|
25,929 |
|
||||
| Franchise fees |
|
14,752 |
|
|
14,781 |
|
|
27,863 |
|
|
27,514 |
|
||||
| Management fees |
|
11,872 |
|
|
12,059 |
|
|
22,501 |
|
|
22,531 |
|
||||
| Total hotel operating expense |
|
187,190 |
|
|
186,531 |
|
|
362,639 |
|
|
358,860 |
|
||||
| Property taxes, insurance and other |
|
18,823 |
|
|
18,681 |
|
|
38,031 |
|
|
35,910 |
|
||||
| Operating ground lease |
|
423 |
|
|
2,912 |
|
|
828 |
|
|
5,762 |
|
||||
| General and administrative |
|
8,308 |
|
|
6,721 |
|
|
16,445 |
|
|
13,598 |
|
||||
| Loss on impairment of depreciable real estate assets |
|
– |
|
|
3,135 |
|
|
– |
|
|
3,135 |
|
||||
| Depreciation and amortization |
|
48,109 |
|
|
45,743 |
|
|
96,059 |
|
|
90,583 |
|
||||
| Total expense |
|
262,853 |
|
|
263,723 |
|
|
514,002 |
|
|
507,848 |
|
||||
| Gain (loss) on sale of real estate |
|
(161 |
) |
|
– |
|
|
1,052 |
|
|
– |
|
||||
| Operating income |
|
78,103 |
|
|
80,991 |
|
|
131,954 |
|
|
135,255 |
|
||||
| Interest and other expense, net |
|
(15,857 |
) |
|
(13,210 |
) |
|
(31,351 |
) |
|
(25,129 |
) |
||||
| Income before income taxes |
|
62,246 |
|
|
67,781 |
|
|
100,603 |
|
|
110,126 |
|
||||
| Income tax expense |
|
(156 |
) |
|
(151 |
) |
|
(362 |
) |
|
(314 |
) |
||||
| Net income |
$ |
62,090 |
|
$ |
67,630 |
|
$ |
100,241 |
|
$ |
109,812 |
|
||||
| Other comprehensive income (loss): | ||||||||||||||||
| Interest rate derivatives |
|
(10,120 |
) |
|
1,740 |
|
|
(16,164 |
) |
|
8,032 |
|
||||
| Comprehensive income |
$ |
51,970 |
|
$ |
69,370 |
|
$ |
84,077 |
|
$ |
117,844 |
|
||||
| Basic and diluted net income per common share |
$ |
0.28 |
|
$ |
0.29 |
|
$ |
0.45 |
|
$ |
0.48 |
|
||||
| Weighted average common shares outstanding – basic and diluted |
|
223,899 |
|
|
230,342 |
|
|
223,915 |
|
|
230,428 |
|
||||
|
Note: |
|
The Consolidated Statements of Operations and Comprehensive Income and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. |
| 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, |
||||||||||||||||||
|
2019 |
|
2018 |
|
% Change |
|
2019 |
|
2018 |
|
% Change |
||||||||||
| Total revenue |
$ |
341,051 |
|
$ |
338,581 |
|
0.7% |
$ |
639,060 |
|
$ |
633,657 |
|
0.9% |
||||||
|
|
|
|||||||||||||||||||
| Total operating expenses |
|
206,111 |
|
|
202,995 |
|
1.5% |
|
396,922 |
|
|
391,537 |
|
1.4% |
||||||
|
|
|
|||||||||||||||||||
| Adjusted Hotel EBITDA |
$ |
134,940 |
|
$ |
135,586 |
|
(0.5%) |
$ |
242,138 |
|
$ |
242,120 |
|
– |
||||||
| Adjusted Hotel EBITDA Margin % |
|
39.6 |
% |
|
40.0 |
% |
(40 bps) |
|
37.9 |
% |
|
38.2 |
% |
(30 bps) |
||||||
|
|
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
| ADR (Comparable Hotels) |
$ |
141.60 |
|
$ |
140.94 |
|
0.5% |
$ |
139.62 |
|
$ |
138.49 |
|
0.8% |
||||||
| Occupancy (Comparable Hotels) |
|
81.4 |
% |
|
81.9 |
% |
(0.6%) |
|
77.8 |
% |
|
78.4 |
% |
(0.8%) |
||||||
| RevPAR (Comparable Hotels) |
$ |
115.30 |
|
$ |
115.44 |
|
(0.1%) |
$ |
108.58 |
|
$ |
108.62 |
|
– |
||||||
|
|
|
|||||||||||||||||||
| ADR (Actual) |
$ |
141.60 |
|
$ |
139.58 |
|
1.4% |
$ |
139.09 |
|
$ |
137.09 |
|
1.5% |
||||||
| Occupancy (Actual) |
|
81.4 |
% |
|
81.7 |
% |
(0.4%) |
|
77.6 |
% |
|
78.2 |
% |
(0.8%) |
||||||
| RevPAR (Actual) |
$ |
115.30 |
|
$ |
114.09 |
|
1.1% |
$ |
107.95 |
|
$ |
107.20 |
|
0.7% |
||||||
| Reconciliation to Actual Results | ||||||||||||||||||||
| Total Revenue (Actual) |
$ |
341,117 |
|
$ |
344,714 |
|
$ |
644,904 |
|
$ |
643,103 |
|
||||||||
| Revenue from acquisitions prior to ownership |
|
– |
|
|
4,065 |
|
|
1,149 |
|
|
9,668 |
|
||||||||
| Revenue from dispositions |
|
– |
|
|
(10,132 |
) |
|
(6,861 |
) |
|
(18,982 |
) |
||||||||
| Lease revenue intangible amortization |
|
(66 |
) |
|
(66 |
) |
|
(132 |
) |
|
(132 |
) |
||||||||
| Comparable Hotels Total Revenue |
$ |
341,051 |
|
$ |
338,581 |
|
$ |
639,060 |
|
$ |
633,657 |
|
||||||||
| Adjusted Hotel EBITDA (AHEBITDA) (Actual) |
$ |
134,759 |
|
$ |
137,636 |
|
$ |
243,563 |
|
$ |
244,727 |
|
||||||||
| AHEBITDA from acquisitions prior to ownership |
|
– |
|
|
1,379 |
|
|
310 |
|
|
3,528 |
|
||||||||
| AHEBITDA from dispositions |
|
181 |
|
|
(3,429 |
) |
|
(1,735 |
) |
|
(6,135 |
) |
||||||||
| Comparable Hotels AHEBITDA |
$ |
134,940 |
|
$ |
135,586 |
|
$ |
242,138 |
|
$ |
242,120 |
|
||||||||
|
Note: |
|
Comparable Hotels is defined as the 234 hotels owned by the Company as of June 30, 2019. 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 to non-GAAP financial measures and a discussion of the Company’s adoption of Accounting Standards Update No. 2016-02, Leases, on January 1, 2019 are included in the following pages. |
Contacts
Apple Hospitality REIT, Inc.
Kelly Clarke, Vice President, Investor Relations
804-727-6321
kclarke@applereit.com