Apple Hospitality REIT Q2 net income rises on expense management

Apple Hospitality REIT

05/08/2026 22:01

Overview
US hotel REIT's Q2 net income rose 5%, with Comparable Hotels RevPAR up 5.3% yr/yr
Comparable Hotels Adjusted Hotel EBITDA grew nearly 10% from prior year
Company refinanced and upsized credit facility in July, extending maturities and improving pricing

Outlook
Apple Hospitality raises 2026 net income outlook to $152 mln-$180 mln from prior guidance
Company lifts 2026 Adjusted EBITDAre guidance to $453 mln-$476 mln
Apple Hospitality now sees 2026 Comparable Hotels RevPAR growth of 2.25%-4.25%

Result Drivers
TRAVEL DEMAND - Co said broad-based improvements in business and leisure travel drove Q2 results
WEEKDAY OCCUPANCY - Co said improvement in weekday occupancy outpaced weekend occupancy, indicating strengthening business travel
EXPENSE MANAGEMENT - Co attributed margin expansion and bottom-line growth to expense management at rooms-focused hotels

Company press release: ID:nBw2BvZLYa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 EPS
 
$0.40
 
H1 Net Income
 
$94.78 mln
 
H1 Hotels Adjusted EBITDA
 
$261.82 mln
 
H1 Hotels Adjusted EBITDA Margin
 
35.40%
 
H1 Hotels Adjusted RevPAR
 
$125.45
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy."
Wall Street's median 12-month price target for Apple Hospitality REIT Inc is $16.50, about 0.3% below its August 4 closing price of $16.55
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Aug 3 - Marriott forecasts quarterly profit below estimates as Middle East revenue slumps
Aug 5 - Choice Hotels Q2 revenue and adjusted EPS beat estimates
Aug 5 - Expedia raises annual forecast on resilient domestic travel demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)