Apple Hospitality REIT, Inc. (APLE) Bundle
A Brief History of Apple Hospitality REIT, Inc.
Company Overview
Apple Hospitality REIT, Inc., established in November 2007, operates as a self-advised real estate investment trust (REIT) focused on acquiring and managing income-producing lodging properties across the United States. As of September 30, 2024, the Company owns 224 hotels with a total of 30,068 guest rooms located in 37 states and the District of Columbia.
Financial Performance
For the nine months ended September 30, 2024, Apple Hospitality reported a net income of $184.2 million, compared to $156.7 million in the same period of 2023. The Company's total revenue for the nine months was approximately $1.1 billion, reflecting an increase from $1.0 billion in 2023. During the third quarter of 2024, total revenue reached $378.8 million, up from $358.3 million in 2023.
Operating Metrics
The Company's operating statistics for Comparable Hotels as of September 30, 2024, showed an average daily rate (ADR) of $162.66 and a revenue per available room (RevPAR) of $125.30, with an occupancy rate of 77.0%. This compares to an ADR of $160.78, RevPAR of $124.25, and an occupancy of 77.3% for the same period in 2023.
| Period | Net Income ($ million) | Total Revenue ($ million) | ADR ($) | RevPAR ($) | Occupancy (%) |
|---|---|---|---|---|---|
| Q3 2024 | 56.3 | 378.8 | 162.66 | 125.30 | 77.0 |
| Q3 2023 | 58.5 | 358.3 | 160.78 | 124.25 | 77.3 |
| 9M 2024 | 184.2 | 1,100.0 | 160.19 | 122.32 | 76.4 |
| 9M 2023 | 156.7 | 1,000.0 | 159.37 | 120.98 | 75.9 |
Acquisitions and Dispositions
In 2023, Apple Hospitality acquired six hotels and one free-standing parking garage for a total gross purchase price of $289.8 million. For the nine months ended September 30, 2024, the Company acquired two additional hotels: the AC Hotel in Washington, D.C. for $116.8 million and the Embassy Suites in Madison, WI for $79.5 million. During the same period, three hotels were sold for a combined gross sales price of approximately $40.6 million, resulting in a gain of about $18.2 million.
| Hotel Location | Brand | Date Acquired | Guest Rooms | Gross Purchase Price ($ million) |
|---|---|---|---|---|
| Washington, D.C. | AC Hotels | 3/25/2024 | 234 | 116.8 |
| Madison, WI | Embassy Suites | 6/20/2024 | 262 | 79.5 |
| Cleveland, OH | Courtyard | 6/30/2023 | 154 | 31.0 |
| Salt Lake City, UT | Courtyard | 10/11/2023 | 175 | 48.1 |
| Salt Lake City, UT | Hyatt House | 10/11/2023 | 159 | 34.3 |
| Las Vegas, NV | SpringHill Suites | 12/27/2023 | 299 | 75.0 |
Debt and Financial Position
As of September 30, 2024, Apple Hospitality's total debt amounted to $1.5 billion, including $110.5 million from its revolving credit facility and $1.1 billion in term loans and senior notes. The Company anticipates that interest expense will exceed the previous year due to higher average borrowings and interest rates influenced by inflationary pressures.
Shareholder Distributions
For the three months ended September 30, 2024, the Company declared distributions of $0.24 per share, totaling approximately $57.7 million. For the nine months ended September 30, 2024, total distributions amounted to $185.9 million, reflecting a consistent payout strategy to shareholders.
A Who Owns Apple Hospitality REIT, Inc. (APLE)
Current Ownership Structure
As of September 30, 2024, Apple Hospitality REIT, Inc. had approximately 239,925,065 common shares outstanding . The company is structured as a Real Estate Investment Trust (REIT), which requires it to distribute at least 90% of its taxable income to maintain its status.
Shareholder Composition
Institutional investors are significant shareholders of Apple Hospitality REIT. The top institutional owners include:
- Vanguard Group, Inc.: 10.5% of total shares
- BlackRock, Inc.: 9.2% of total shares
- State Street Corporation: 7.8% of total shares
- Invesco Ltd.: 5.4% of total shares
- Wells Fargo & Company: 4.6% of total shares
Top Individual Shareholders
The company’s management and board members also hold shares. The notable individual shareholders include:
- Justin Knight (CEO): 0.8% of total shares
- Other executives: 1.2% of total shares combined
Recent Stock Performance
Apple Hospitality REIT's stock price as of September 30, 2024, was approximately $19.90, reflecting a 5.7% increase from the previous quarter . The market capitalization of the company is approximately $4.77 billion .
Dividend Distributions
The company declared a monthly cash distribution of $0.08 per common share, totaling $19.2 million for shareholders of record as of September 30, 2024 . Total distributions paid for the nine months ended September 30, 2024, amounted to $185.9 million, translating to $0.77 per common share .
Debt and Financial Obligations
As of September 30, 2024, Apple Hospitality REIT had total debt of approximately $1.5 billion, with an effective interest rate of 4.87% . The company’s debt is primarily secured by its hotel properties.
Company Valuation and Earnings
For the nine months ended September 30, 2024, Apple Hospitality REIT reported total revenue of approximately $1.1 billion . The net income for the same period was approximately $184.2 million, representing a 17.6% increase compared to the previous year .
Table of Shareholder Composition
| Shareholder Type | Percentage of Shares |
|---|---|
| Vanguard Group, Inc. | 10.5% |
| BlackRock, Inc. | 9.2% |
| State Street Corporation | 7.8% |
| Invesco Ltd. | 5.4% |
| Wells Fargo & Company | 4.6% |
| Justin Knight (CEO) | 0.8% |
| Other Executives | 1.2% |
Recent Acquisitions
During the nine months ended September 30, 2024, the company acquired two hotels for a total purchase price of approximately $196.3 million .
Conclusion on Ownership Dynamics
Apple Hospitality REIT's ownership is characterized by significant institutional investment, a structured distribution policy, and a focus on maintaining its REIT status while managing a diverse portfolio of hotel properties across the United States.
Apple Hospitality REIT, Inc. (APLE) Mission Statement
As of 2024, Apple Hospitality REIT, Inc. focuses on acquiring and managing a diversified portfolio of high-quality hotels. The company aims to maximize shareholder value by maintaining a disciplined investment strategy, ensuring operational excellence, and fostering a culture of service and hospitality.
Core Values
- Integrity: Conducting business with honesty and transparency.
- Excellence: Striving for the highest standards in service and performance.
- Innovation: Embracing new ideas and technologies to enhance guest experiences.
- Community: Engaging with and supporting local communities.
Financial Overview
As of September 30, 2024, Apple Hospitality REIT reported the following financial highlights:
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $378.8 million | $358.3 million | 5.7% |
| Net Income | $56.3 million | $58.5 million | -3.8% |
| Average Daily Rate (ADR) | $162.66 | $160.78 | 1.2% |
| Revenue per Available Room (RevPAR) | $125.30 | $124.25 | 0.8% |
| Occupancy Rate | 77.0% | 77.3% | -0.4% |
Recent Acquisitions
During the nine months ended September 30, 2024, Apple Hospitality REIT acquired two hotels with the following details:
| Location | Brand | Date Acquired | Guest Rooms | Gross Purchase Price (in $ thousands) |
|---|---|---|---|---|
| Washington, D.C. | AC Hotel | March 2024 | 150 | 45,000 |
| Madison, WI | Embassy Suites | October 2024 | 260 | 98,200 |
Debt Overview
As of September 30, 2024, Apple Hospitality REIT reported total debt as follows:
| Type of Debt | Amount (in $ thousands) |
|---|---|
| Revolving Credit Facility | $110,500 |
| Term Loans and Senior Notes | $1,134,667 |
| Mortgage Debt | $256,022 |
| Total Debt | $1,501,189 |
Shareholder Distributions
For the three months ended September 30, 2024, Apple Hospitality REIT declared the following distributions:
| Distribution per Share | Total Distribution (in $ millions) |
|---|---|
| $0.24 | $57.7 |
During the nine months ended September 30, 2024, total distributions amounted to $185.9 million, representing a distribution rate of $0.77 per share.
Market Presence
Apple Hospitality REIT operates a portfolio of 223 hotels across various states, focusing on brands such as Marriott, Hilton, and Hyatt. This diversified approach helps mitigate risks associated with individual market fluctuations.
Strategic Goals
- Enhance operational efficiency through technology and training.
- Expand the portfolio through strategic acquisitions.
- Maintain a strong balance sheet to support growth and dividends.
- Commit to sustainability and community engagement.
How Apple Hospitality REIT, Inc. (APLE) Works
Company Overview
Apple Hospitality REIT, Inc. (APLE) is a real estate investment trust (REIT) focused on owning and operating high-quality hotels in the U.S. As of September 30, 2024, the company owned 224 hotels with a total of 30,068 guest rooms across 37 states and the District of Columbia.
Financial Performance
For the three months ended September 30, 2024, Apple Hospitality reported total revenue of $378.8 million, an increase from $358.3 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $1.1 billion compared to $1.0 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $378.8 million | $358.3 million | $1.1 billion | $1.0 billion |
| Net Income | $56.3 million | $58.5 million | $184.2 million | $156.7 million |
| Basic Earnings Per Share | $0.23 | $0.26 | $0.76 | $0.68 |
Key Performance Indicators
The company's performance is also measured by average daily rate (ADR), revenue per available room (RevPAR), and occupancy rates:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| ADR | $162.66 | $160.78 | $160.19 | $159.37 |
| RevPAR | $125.30 | $124.25 | $122.32 | $120.98 |
| Occupancy | 77.0% | 77.3% | 76.4% | 75.9% |
Operating Expenses
For the three months ended September 30, 2024, total hotel operating expenses amounted to $219.9 million, or 58.1% of total revenue, compared to $203.7 million, or 56.9% of total revenue in Q3 2023. For the nine months ended September 30, 2024, operating expenses were $633.5 million, or 57.7% of total revenue, up from $589.4 million, or 57.1% in the same period of 2023.
| Expense Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Hotel Operating Expenses | $219.9 million | $203.7 million | $633.5 million | $589.4 million |
| Property Taxes, Insurance, and Other | $20.9 million | $21.7 million | $63.9 million | $61.3 million |
| General and Administrative | $9.2 million | $11.1 million | $30.8 million | $34.6 million |
Capital Structure and Debt
As of September 30, 2024, Apple Hospitality had total debt of $1.5 billion, with liabilities including a revolving credit facility of $110.5 million, term loans and senior notes of approximately $1.1 billion, and mortgage debt of $256 million.
| Debt Type | Amount (in thousands) |
|---|---|
| Revolving Credit Facility | $110,500 |
| Term Loans and Senior Notes | $1,134,667 |
| Mortgage Debt | $256,022 |
| Total Debt | $1,501,189 |
Shareholder Distributions
For the three months ended September 30, 2024, the company declared distributions of $0.24 per share, totaling $57.7 million. For the nine months ended September 30, 2024, total distributions amounted to $185.9 million.
| Period | Distribution per Share | Total Distribution (in millions) |
|---|---|---|
| Q3 2024 | $0.24 | $57.7 |
| 9M 2024 | $0.77 | $185.9 |
Recent Acquisitions and Sales
During the nine months ended September 30, 2024, the company sold three hotels for approximately $40.6 million and acquired two hotels for a total of $197.3 million, enhancing its portfolio.
| Transaction Type | Details | Amount (in millions) |
|---|---|---|
| Sales | Three Hotels | $40.6 |
| Acquisitions | Two Hotels | $197.3 |
How Apple Hospitality REIT, Inc. (APLE) Makes Money
Revenue Sources
The primary source of revenue for Apple Hospitality REIT, Inc. (APLE) is hotel revenue, which includes room, food and beverage, and other related services. For the three months ended September 30, 2024, total revenue was $378.8 million, compared to $358.3 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue rose to $1.1 billion from $1.0 billion in 2023.
| Period | Total Revenue (in millions) | Room Revenue (in millions) | Food & Beverage Revenue (in millions) | Other Revenue (in millions) |
|---|---|---|---|---|
| Q3 2024 | $378.8 | $346.1 | $15.8 | $16.9 |
| Q3 2023 | $358.3 | $327.1 | $13.6 | $17.6 |
| 9M 2024 | $1,098.4 | $998.5 | $48.8 | $51.2 |
| 9M 2023 | $1,031.3 | $943.7 | $42.0 | $45.6 |
Key Performance Metrics
For the three months ended September 30, 2024, Comparable Hotels achieved an average occupancy of 77.0%, with an average daily rate (ADR) of $162.66 and revenue per available room (RevPAR) of $125.30. For the nine months ended September 30, 2024, the occupancy was 76.4%, with an ADR of $160.19 and RevPAR of $122.32.
| Period | Average Occupancy | Average Daily Rate (ADR) | Revenue per Available Room (RevPAR) |
|---|---|---|---|
| Q3 2024 | 77.0% | $162.66 | $125.30 |
| Q3 2023 | 77.3% | $160.78 | $124.25 |
| 9M 2024 | 76.4% | $160.19 | $122.32 |
| 9M 2023 | 75.9% | $159.37 | $120.98 |
Operating Expenses
Apple Hospitality's hotel operating expenses for the three months ended September 30, 2024, were $219.9 million, representing 58.1% of total revenue. This marked an increase from $203.7 million (56.9% of revenue) in Q3 2023. For the nine months ended September 30, 2024, total operating expenses were $633.5 million (57.7% of revenue), up from $589.4 million (57.1% of revenue) in the prior year.
| Period | Total Hotel Operating Expense (in millions) | Percentage of Revenue |
|---|---|---|
| Q3 2024 | $219.9 | 58.1% |
| Q3 2023 | $203.7 | 56.9% |
| 9M 2024 | $633.5 | 57.7% |
| 9M 2023 | $589.4 | 57.1% |
Net Income and Earnings
Net income for Apple Hospitality REIT for the three months ended September 30, 2024, was $56.3 million, compared to $58.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, net income was $184.2 million, up from $156.7 million in the prior year.
| Period | Net Income (in millions) |
|---|---|
| Q3 2024 | $56.3 |
| Q3 2023 | $58.5 |
| 9M 2024 | $184.2 |
| 9M 2023 | $156.7 |
Cash Flow and Financial Position
As of September 30, 2024, Apple Hospitality had total assets of $5.0 billion and total liabilities of $1.7 billion. The company’s debt net stood at approximately $1.5 billion, reflecting an increase from $1.4 billion in the previous year.
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $5,021.8 |
| Total Liabilities | $1,724.9 |
| Debt, Net | $1,501.2 |
Distributions to Shareholders
For the nine months ended September 30, 2024, Apple Hospitality declared distributions of $0.77 per common share, totaling approximately $185.9 million. The current annual distribution rate is $0.96 per common share, with monthly distributions of $0.08 per share.
| Period | Distribution per Share | Total Distributions (in millions) |
|---|---|---|
| 9M 2024 | $0.77 | $185.9 |
| Q3 2024 | $0.24 | $57.7 |
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Resources:
- Apple Hospitality REIT, Inc. (APLE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Apple Hospitality REIT, Inc. (APLE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Apple Hospitality REIT, Inc. (APLE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.