Apple Hospitality Q3 net income falls amid occupancy fall

Apple Hospitality REIT

03/11/2025 21:43

Overview

Apple Hospitality Q3 net income falls 9.6% yr/yr, operating income down 6.7%

Comparable Hotels RevPAR decreases 1.8% yr/yr, affected by government travel pullback

Company repurchased 3.8 mln shares, invested $50 mln in capital improvements

Outlook

Apple Hospitality lowers 2025 net income guidance by $5.5 mln

Company expects 2025 RevPAR to decline by 1%-2%

Apple Hospitality raises 2025 Adjusted EBITDAre guidance by $0.3 mln

Result Drivers

GOVERNMENT TRAVEL PULLBACK - Co attributes decline in RevPAR and occupancy to reduced government travel

STRATEGIC ASSET MANAGEMENT - Co sold non-core assets and reinvested in capital improvements to optimize portfolio

PORTFOLIO OPTIMIZATION - Co engaged in asset sales and acquisitions to manage portfolio CapEx needs and drive returns

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
9M EPS
$0.61
9M Net Income
$145.74 mln
9M Hotels Adjusted EBITDA
$375.05 mln
9M FFO
$287.99 mln
9M Hotels Adjusted EBITDA Margin
35.20%
9M Hotels Adjusted RevPAR
$121.67


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "hold."

Wall Street's median 12-month price target for Apple Hospitality REIT Inc is $13.50, about 17.1% above its October 31 closing price of $11.19

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw6hXWKna

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)