Apple Hospitality REIT, Inc. Reports Results of Operations for Third Quarter 2016
Richmond, VA – November 7, 2016 – Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the third quarter of 2016.
Selected Statistical and Financial Data
As of and For the Three and Nine Months Ended September 30
(Unaudited) (in thousands, except statistical and per share amounts)(1)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2016 | | | 2015 | | | % Change | | | 2016 | | | 2015 | | | % Change | |
| | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 13,694 | | | $ | 46,968 | | | | (70.8 | %) | | $ | 103,098 | | | $ | 135,080 | | | | (23.7 | %) |
| Net income per share | | $ | 0.07 | | | $ | 0.27 | | | | (74.1 | %) | | $ | 0.57 | | | $ | 0.74 | | | | (23.0 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted EBITDA | | $ | 104,084 | | | $ | 90,563 | | | | 14.9 | % | | $ | 283,208 | | | $ | 251,772 | | | | 12.5 | % |
| Comparable Hotels Adjusted Hotel EBITDA | | $ | 125,692 | | | $ | 126,295 | | | | (0.5 | %) | | $ | 371,271 | | | $ | 357,070 | | | | 4.0 | % |
| Comparable Hotels Adjusted Hotel EBITDA Margin | | | 38.6 | % | | | 40.0 | % | | (140 bps | ) | | | 39.1 | % | | | 39.2 | % | | (10 bps | ) |
| Modified funds from operations (MFFO) | | $ | 93,706 | | | $ | 80,893 | | | | 15.8 | % | | $ | 253,384 | | | $ | 225,946 | | | | 12.1 | % |
| MFFO per share | | $ | 0.49 | | | $ | 0.46 | | | | 6.5 | % | | $ | 1.41 | | | $ | 1.24 | | | | 13.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (Actual) | | $ | 136.04 | | | $ | 133.18 | | | | 2.1 | % | | $ | 135.88 | | | $ | 130.12 | | | | 4.4 | % |
| Occupancy (Actual) | | | 80.2 | % | | | 80.5 | % | | | (0.4 | %) | | | 78.9 | % | | | 78.6 | % | | | 0.4 | % |
| RevPAR (Actual) | | $ | 109.07 | | | $ | 107.19 | | | | 1.8 | % | | $ | 107.18 | | | $ | 102.23 | | | | 4.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Comparable Hotels ADR | | $ | 134.75 | | | $ | 132.51 | | | | 1.7 | % | | $ | 134.90 | | | $ | 130.78 | | | | 3.2 | % |
| Comparable Hotels Occupancy | | | 80.1 | % | | | 80.3 | % | | | (0.2 | %) | | | 78.5 | % | | | 78.7 | % | | | (0.3 | %) |
| Comparable Hotels RevPAR | | $ | 107.97 | | | $ | 106.37 | | | | 1.5 | % | | $ | 105.96 | | | $ | 102.86 | | �� | | 3.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions paid | | $ | 57,227 | | | $ | 52,576 | | | | 8.8 | % | | $ | 161,940 | | | $ | 176,814 | | | | (8.4 | %) |
| Distributions paid per share | | $ | 0.30 | | | $ | 0.30 | | | | - | | | $ | 0.90 | | | $ | 0.97 | | | | (7.2 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total debt outstanding | | $ | 1,351,399 | | | | | | | | | | | | | | | | | | | | | |
Net debt to trailing twelve month Adjusted EBITDA (2) | | | 3.0 | | | | | | | | | | | | | | | | | | | | | |
(1) Explanations of and reconciliations to Net Income of Adjusted EBITDA, Comparable Hotels Adjusted Hotel EBITDA and MFFO, are included at the end of this release.
(2) Adjusted EBITDA used for the calculation is the trailing twelve month Comparable Hotels Adjusted Hotel EBITDA of $469 million less actual General and Administrative expenses for the Company and Apple REIT Ten, Inc. for the trailing twelve months totaling $24 million.
Comparable Hotels is defined as the 236 hotels owned by the Company as of September 30, 2016. 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.
Justin Knight, President and Chief Executive Officer, commented, “We are pleased with the overall performance of our portfolio of hotels during the third quarter of this year. Amid a more moderate growth environment, our hotels delivered an increase in Comparable Hotels RevPAR of 1.5 percent and Adjusted EBITDA growth of 14.9 percent. With our successful completion of the merger with Apple REIT Ten during the quarter, we further enhanced our geographic reach and product focus which I believe will increase our opportunity for long-term outperformance in a period of general economic and lodging sector uncertainty.”
| Page | 1 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Hotel Portfolio Overview
Apple Hospitality owns a highly diversified hotel portfolio, which helps insulate the revenue stream of the Company from regional economic dislocations that may occur from time to time. As of September 30, 2016, Apple Hospitality owned 236 hotels, with 30,299 rooms, comprised of 116 Marriott® branded hotels and 120 Hilton® branded hotels, with locations in 96 MSAs throughout 33 states.
Transactional Activity
Apple Hospitality completed the Apple REIT Ten, Inc. (“Apple Ten”) merger on September 1, 2016. The merger added 56 Marriott and Hilton branded primarily select service and extended stay hotels with 7,209 guestrooms to the Company’s portfolio. As consideration in the merger, the Company issued approximately 49 million common shares and paid approximately $94 million to the Apple Ten shareholders and assumed approximately $257 million of debt. Also during the quarter, the Company acquired a newly constructed 128-room Home2 Suites by Hilton® hotel in Atlanta, GA for a purchase price of approximately $25 million.
In October 2016, the Company entered into separate contracts for the sale of its 224-room Hilton® hotel in Dallas, TX and 226-room Marriott® hotel in Chesapeake, VA for a total combined gross sales price of approximately $66 million. The contracts are subject to a number of conditions to closing and therefore there can be no assurance that closings will occur. If both closings occur, the total combined net gain resulting from these two sales is estimated to be approximately $11 million and it is anticipated the closings would occur by March 31, 2017. As a result of the reduction in the Company’s planned hold period, the Company recorded an impairment loss of approximately $5 million during the third quarter of 2016 to adjust the basis of the Chesapeake Marriott® hotel to its estimated fair value.
Litigation Settlement
As previously disclosed, Apple Hospitality is one of the parties to a derivative action commenced by a former shareholder of Apple Ten in connection with the Apple Ten merger. On November 2, 2016, the parties reached an agreement in principle to settle the litigation for $32 million, which settlement remains subject to final court approval. The Company has reflected the settlement amount in accounts payable and other liabilities in its consolidated balance sheet, and in transaction costs in its consolidated statements of operations, in its third quarter 2016 financial statements. The Company anticipates that, should the settlement be completed, approximately $10 million to $15 million of the settlement amount would be funded from insurance proceeds and other parties to the settlement.
Share Repurchase Program
Effective September 2, 2016, Apple Hospitality established a written trading plan (“2016 Plan”) under its $475 million share repurchase program that provides for share repurchases up to an aggregate of $400 million in open market transactions that is intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The timing of share repurchases and the number of common shares to be repurchased under the 2016 Plan will depend upon prevailing market conditions, regulatory requirements and other factors. The 2016 Plan does not obligate the Company to repurchase any specific number of shares and may be suspended at any time at its discretion. The Company did not repurchase any common shares under the 2016 Plan in the third quarter; however, subsequent to September 30, 2016, the Company has repurchased approximately 147,000 common shares at an average price of $17.81. The Company has funded and intends to fund future purchases, if any, under the 2016 Plan, with availability under its $540 million revolving credit facility.
Capital Improvements
Apple Hospitality consistently reinvests in its properties in order to maintain their relevance and competitiveness within
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Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
their markets. During the nine months ended September 30, 2016, the Company invested approximately $42 million in capital expenditures for existing hotels and anticipates investing an additional $20 million during the remainder of 2016, which includes various scheduled renovation projects for approximately 20 properties.
Balance Sheet
As of September 30, 2016, Apple Hospitality had approximately $1.3 billion of total net indebtedness with a current combined weighted average interest rate of approximately 3.3% for the remainder of 2016. Excluding unamortized debt issuance costs and fair value adjustments, total indebtedness is comprised of approximately $474 million in property-level debt secured by 34 hotels, and $877 million outstanding on its unsecured credit facilities. Apple Hospitality’s undrawn capacity on its unsecured credit facilities at September 30, 2016 was approximately $238 million. The Company’s net debt to trailing twelve months Adjusted EBITDA ratio at September 30, 2016 was 3.0 times, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. In November 2016, the Company entered into a ten year $70 million mortgage loan secured by three properties with an annual fixed interest rate of 3.55%.
Shareholder Distributions
Apple Hospitality paid distributions of $0.30 per common share during the three-month period ended September 30, 2016. Based on the Company’s common share closing price of $17.48 on November 3, 2016, the annualized distribution of $1.20 per common share represents an annual yield of approximately 6.9%. 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.
2016 Outlook
Apple Hospitality is providing its operational and financial outlook for 2016. 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. Comparable Hotels RevPAR Growth guidance includes properties acquired, including those acquired through the Apple Ten merger, as if the hotels were owned as of January 1, 2015. Adjusted EBITDA guidance includes results for hotels acquired beginning on their acquisition date. For the full year 2016, the Company anticipates:
| | | 2016 Guidance | |
| | | Low-End | | | High-End | |
| | | | | | | |
| Comparable Hotels RevPAR Growth | | | 2.0 | % | | | 4.0 | % |
| | | | | | | | | |
| Adjusted EBITDA | | $370 Million | | | $390 Million | |
Earnings Call
The Company will host a quarterly conference call for investors and interested parties on Tuesday, November 8, 2016, 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 November 8, 2016, through midnight Eastern Time on November 22, 2016. To access the replay, the
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Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
domestic dial-in number is (877) 870-5176, the international dial-in number is (858) 384-5517, and the passcode is 13646441. 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 portfolios of upscale, select service hotels in the United States. The Company’s portfolio consists of 236 hotels, with over 30,000 guestrooms, diversified across the Hilton® and Marriott® families of brands with locations in urban, high-end suburban and developing markets throughout 33 states. For more information, please visit www.applehospitalityreit.com.
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; the outcome of current and future litigation, including any legal proceedings that have been or may be instituted against Apple Hospitality or others; 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 entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016 and September 30, 2016. 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.
Contact:
Apple Hospitality REIT, Inc.
Kelly Clarke, Vice President, Investor Relations
(804) 727-6321
kclarke@applereit.com
For additional information or to receive press releases by email, visit www.applehospitalityreit.com.
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Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Consolidated Balance Sheets
(in thousands, except share data)
| | | September 30, | | | December 31, | |
| | | 2016 | | | 2015 | |
| | | (unaudited) | | | | |
| Assets | | | | | | |
| Investment in real estate, net of accumulated depreciation | | | | | | |
| of $526,973 and $423,057, respectively | | $ | 4,894,216 | | | $ | 3,641,767 | |
| Restricted cash-furniture, fixtures and other escrows | | | 31,953 | | | | 22,651 | |
| Due from third party managers, net | | | 50,973 | | | | 24,743 | |
| Other assets, net | | | 41,551 | | | | 33,614 | |
| Total Assets | | $ | 5,018,693 | | | $ | 3,722,775 | |
| | | |
| Liabilities | | | | | | | | |
| Revolving credit facility | | $ | 302,100 | | | $ | 114,800 | |
| Term loans | | | 570,670 | | | | 421,444 | |
| Mortgage debt | | | 476,405 | | | | 461,859 | |
| Accounts payable and other liabilities | | | 133,119 | | | | 77,614 | |
| Total Liabilities | | | 1,482,294 | | | | 1,075,717 | |
| | | | | | | | | |
| 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 223,406,001 and 174,368,340 shares, respectively | | | 4,461,589 | | | | 3,500,584 | |
| Accumulated other comprehensive loss | | | (9,991 | ) | | | (2,057 | ) |
| Distributions greater than net income | | | (915,199 | ) | | | (851,469 | ) |
| Total Shareholders' Equity | | | 3,536,399 | | | | 2,647,058 | |
| | | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 5,018,693 | | | $ | 3,722,775 | |
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 September 30, 2016.
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Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited) (in thousands, except per share data)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| Revenues: | | | | | | | | | | | | |
| Room | | $ | 255,269 | | | $ | 221,978 | | | $ | 698,759 | | | $ | 628,982 | |
| Other | | | 21,202 | | | | 18,577 | | | | 59,835 | | | | 56,299 | |
| Total revenue | | | 276,471 | | | | 240,555 | | | | 758,594 | | | | 685,281 | |
| | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | |
| Operating | | | 69,082 | | | | 59,024 | | | | 187,370 | | | | 170,781 | |
| Hotel administrative | | | 20,866 | | | | 17,684 | | | | 57,921 | | | | 52,248 | |
| Sales and marketing | | | 21,329 | | | | 18,524 | | | | 59,244 | | | | 53,502 | |
| Utilities | | | 10,543 | | | | 9,505 | | | | 25,862 | | | | 25,222 | |
| Repair and maintenance | | | 10,478 | | | | 9,245 | | | | 29,167 | | | | 27,771 | |
| Franchise fees | | | 11,834 | | | | 10,360 | | | | 32,212 | | | | 29,069 | |
| Management fees | | | 9,205 | | | | 8,491 | | | | 26,189 | | | | 24,081 | |
| Property taxes, insurance and other | | | 14,787 | | | | 10,450 | | | | 40,315 | | | | 33,727 | |
| Ground lease | | | 2,615 | | | | 2,496 | | | | 7,587 | | | | 7,504 | |
| General and administrative | | | 2,623 | | | | 5,175 | | | | 12,511 | | | | 14,421 | |
| Transaction costs | | | 36,452 | | | | 842 | | | | 37,861 | | | | 7,891 | |
| Loss on impairment of depreciable real estate assets | | | 5,471 | | | | - | | | | 5,471 | | | | - | |
| Depreciation | | | 37,343 | | | | 32,351 | | | | 104,651 | | | | 94,205 | |
| Total expenses | | | 252,628 | | | | 184,147 | | | | 626,361 | | | | 540,422 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | 23,843 | | | | 56,408 | | | | 132,233 | | | | 144,859 | |
| | | | | | | | | | | | | | | | | |
| Interest and other expense, net | | | (10,156 | ) | | | (9,302 | ) | | | (28,519 | ) | | | (24,265 | ) |
| Gain on sale of real estate | | | - | | | | - | | | | - | | | | 15,358 | |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 13,687 | | | | 47,106 | | | | 103,714 | | | | 135,952 | |
| | | | | | | | | | | | | | | | | |
| Income tax benefit (expense) | | | 7 | | | | (138 | ) | | | (616 | ) | | | (872 | ) |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 13,694 | | | $ | 46,968 | | | $ | 103,098 | | | $ | 135,080 | |
| | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss): | | | | | | | | | | | | | | | | |
| Unrealized gain (loss) on interest rate derivatives | | | 4,261 | | | | (5,978 | ) | | | (7,934 | ) | | | (6,437 | ) |
| Cash flow hedge losses reclassified to earnings | | | - | | | | - | | | | - | | | | 785 | |
| | | | | | | | | | | | | | | | | |
| Comprehensive income | | $ | 17,955 | | | $ | 40,990 | | | $ | 95,164 | | | $ | 129,428 | |
| | | | | | | | | | | | | | | | | |
| Basic and diluted net income per common share | | $ | 0.07 | | | $ | 0.27 | | | $ | 0.57 | | | $ | 0.74 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding - basic and diluted | | | 190,563 | | | | 175,069 | | | | 180,004 | | | | 182,247 | |
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 September 30, 2016.
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Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics and Statistical Data
(Unaudited) (in thousands except statistical data)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2016 | | | 2015 | | | % Change | | | 2016 | | | 2015 | | | % Change | |
| | | | | | | | | | | | | | | | | | | |
| Room revenue | | $ | 300,968 | | | $ | 291,846 | | | | 3.1 | % | | $ | 875,376 | | | $ | 834,889 | | | | 4.8 | % |
| Other revenue | | | 24,908 | | | | 24,224 | | | | 2.8 | % | | | 74,386 | | | | 75,636 | | | | (1.7 | %) |
| Total revenue | | | 325,876 | | | | 316,070 | | | | 3.1 | % | | | 949,762 | | | | 910,525 | | | | 4.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total operating expenses | | | 200,184 | | | | 189,775 | | | | 5.5 | % | | | 578,491 | | | | 553,455 | | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted Hotel EBITDA | | $ | 125,692 | | | $ | 126,295 | | | | (0.5 | %) | | $ | 371,271 | | | $ | 357,070 | | | | 4.0 | % |
| Adjusted Hotel EBITDA Margin % | | | 38.6 | % | | | 40.0 | % | | (140 bps | ) | | | 39.1 | % | | | 39.2 | % | | (10 bps | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (Comparable Hotels) | | $ | 134.75 | | | $ | 132.51 | | | | 1.7 | % | | $ | 134.90 | | | $ | 130.78 | | | | 3.2 | % |
| Occupancy (Comparable Hotels) | | | 80.1 | % | | | 80.3 | % | | | (0.2 | %) | | | 78.5 | % | | | 78.7 | % | | | (0.3 | %) |
| RevPAR (Comparable Hotels) | | $ | 107.97 | | | $ | 106.37 | | | | 1.5 | % | | $ | 105.96 | | | $ | 102.86 | | | | 3.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (Actual) | | $ | 136.04 | | | $ | 133.18 | | | | 2.1 | % | | $ | 135.88 | | | $ | 130.12 | | | | 4.4 | % |
| Occupancy (Actual) | | | 80.2 | % | | | 80.5 | % | | | (0.4 | %) | | | 78.9 | % | | | 78.6 | % | | | 0.4 | % |
| RevPAR (Actual) | | $ | 109.07 | | | $ | 107.19 | | | | 1.8 | % | | $ | 107.18 | | | $ | 102.23 | | | | 4.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Reconciliation to Actual Results | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Revenue (Actual) | | $ | 276,471 | | | $ | 240,555 | | | | | | | $ | 758,594 | | | $ | 685,281 | | | | | |
| Revenue from acquisitions prior to ownership | | | 49,452 | | | | 75,548 | | | | | | | | 191,165 | | | | 230,811 | | | | | |
| Revenue from dispositions | | | - | | | | - | | | | | | | | - | | | | (7,359 | ) | | | | |
| Lease revenue intangible amortization | | | (47 | ) | | | (33 | ) | | | | | | | 3 | | | | 1,792 | | | | | |
| Comparable Hotels Total Revenue | | $ | 325,876 | | | $ | 316,070 | | | | | | | $ | 949,762 | | | $ | 910,525 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted Hotel EBITDA (AHEBITDA) (Actual) | | $ | 106,707 | | | $ | 95,738 | | | | | | | $ | 295,719 | | | $ | 266,193 | | | | | |
| AHEBITDA from acquisitions prior to ownership | | | 18,985 | | | | 30,557 | | | | | | | | 75,552 | | | | 92,900 | | | | | |
| AHEBITDA from dispositions | | | - | | | | - | | | | | | | | - | | | | (2,023 | ) | | | | |
| Comparable Hotels AHEBITDA | | $ | 125,692 | | | $ | 126,295 | | | | | | | $ | 371,271 | | | $ | 357,070 | | | | | |
Note:
Comparable Hotels is defined as the 236 hotels owned by the Company as of September 30, 2016. 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 is included in the following pages.
| Page | 7 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Comparable Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited) (in thousands except statistical data)
| | | Three Months Ended | |
| | | 12/31/2014 | | | 3/31/2015 | | | 6/30/2015 | | | 9/30/2015 | | | 12/31/2015 | | | 3/31/2016 | | | 6/30/2016 | | | 9/30/2016 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Room revenue | | $ | 232,610 | | | $ | 253,014 | | | $ | 290,029 | | | $ | 291,846 | | | $ | 250,259 | | | $ | 266,598 | | | $ | 307,810 | | | $ | 300,968 | |
| Other revenue | | | 24,067 | | | | 25,598 | | | | 25,814 | | | | 24,224 | | | | 25,540 | | | | 23,465 | | | | 26,013 | | | | 24,908 | |
| Total revenue | | | 256,677 | | | | 278,612 | | | | 315,843 | | | | 316,070 | | | | 275,799 | | | | 290,063 | | | | 333,823 | | | | 325,876 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total operating expenses | | | 166,168 | | | | 176,011 | | | | 187,669 | | | | 189,775 | | | | 178,184 | | | | 182,131 | | | | 196,176 | | | | 200,184 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted Hotel EBITDA | | $ | 90,509 | | | $ | 102,601 | | | $ | 128,174 | | | $ | 126,295 | | | $ | 97,615 | | | $ | 107,932 | | | $ | 137,647 | | | $ | 125,692 | |
Adjusted Hotel EBITDA Margin % | | | 35.3 | % | | | 36.8 | % | | | 40.6 | % | | | 40.0 | % | | | 35.4 | % | | | 37.2 | % | | | 41.2 | % | | | 38.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (Comparable Hotels) | | $ | 121.51 | | | $ | 128.06 | | | $ | 131.47 | | | $ | 132.51 | | | $ | 126.67 | | | $ | 132.67 | | | $ | 137.05 | | | $ | 134.75 | |
| Occupancy (Comparable Hotels) | | | 70.6 | % | | | 74.0 | % | | | 81.7 | % | | | 80.3 | % | | | 71.6 | % | | | 73.6 | % | | | 81.9 | % | | | 80.1 | % |
| RevPAR (Comparable Hotels) | | $ | 85.82 | | | $ | 94.70 | | | $ | 107.36 | | | $ | 106.37 | | | $ | 90.73 | | | $ | 97.60 | | | $ | 112.23 | | | $ | 107.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (Actual) | | $ | 119.30 | | | $ | 125.49 | | | $ | 131.33 | | | $ | 133.18 | | | $ | 127.04 | | | $ | 133.16 | | | $ | 138.16 | | | $ | 136.04 | |
| Occupancy (Actual) | | | 70.7 | % | | | 73.6 | % | | | 81.8 | % | | | 80.5 | % | | | 71.9 | % | | | 74.1 | % | | | 82.2 | % | | | 80.2 | % |
| RevPAR (Actual) | | $ | 84.29 | | | $ | 92.30 | | | $ | 107.43 | | | $ | 107.19 | | | $ | 91.36 | | | $ | 98.66 | | | $ | 113.59 | | | $ | 109.07 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation to Actual Results | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Revenue (Actual) | | $ | 202,323 | | | $ | 210,352 | | | $ | 234,374 | | | $ | 240,555 | | | $ | 213,033 | | | $ | 224,487 | | | $ | 257,636 | | | $ | 276,471 | |
| Revenue from acquisitions prior to ownership | | | 66,178 | | | | 73,529 | | | | 81,734 | | | | 75,548 | | | | 62,799 | | | | 65,479 | | | | 76,234 | | | | 49,452 | |
| Revenue from dispositions | | | (11,966 | ) | | | (7,127 | ) | | | (232 | ) | | | - | | | | - | | | | - | | | | - | | | | - | |
| Lease revenue intangible amortization | | | 142 | | | | 1,858 | | | | (33 | ) | | | (33 | ) | | | (33 | ) | | | 97 | | | | (47 | ) | | | (47 | ) |
| Comparable Hotels Total Revenue | | $ | 256,677 | | | $ | 278,612 | | | $ | 315,843 | | | $ | 316,070 | | | $ | 275,799 | | | $ | 290,063 | | | $ | 333,823 | | | $ | 325,876 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted Hotel EBITDA (AHEBITDA) (Actual) | | $ | 71,073 | | | $ | 76,650 | | | $ | 93,805 | | | $ | 95,738 | | | $ | 74,790 | | | $ | 83,438 | | | $ | 105,574 | | | $ | 106,707 | |
| AHEBITDA from acquisitions prior to ownership | | | 23,408 | | | | 28,008 | | | | 34,335 | | | | 30,557 | | | | 22,825 | | | | 24,494 | | | | 32,073 | | | | 18,985 | |
| AHEBITDA from dispositions | | | (3,972 | ) | | | (2,057 | ) | | | 34 | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Comparable Hotels AHEBITDA | | $ | 90,509 | | | $ | 102,601 | | | $ | 128,174 | | | $ | 126,295 | | | $ | 97,615 | | | $ | 107,932 | | | $ | 137,647 | | | $ | 125,692 | |
Note:
Comparable Hotels is defined as the 236 hotels owned by the Company as of September 30, 2016. 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 is included in the following pages.
| Page | 8 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Operating Statistics Summary
(Unaudited)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2016 | | | 2015 | | | % Change | | | 2016 | | | 2015 | | | % Change | |
| | | | | | | | | | | | | | | | | | | |
| ADR (Actual) | | $ | 136.04 | | | $ | 133.18 | | | | 2.1 | % | | $ | 135.88 | | | $ | 130.12 | | | | 4.4 | % |
| Occupancy (Actual) | | | 80.2 | % | | | 80.5 | % | | | (0.4 | %) | | | 78.9 | % | | | 78.6 | % | | | 0.4 | % |
| RevPAR (Actual) | | $ | 109.07 | | | $ | 107.19 | | | | 1.8 | % | | $ | 107.18 | | | $ | 102.23 | | | | 4.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (Comparable Hotels) | | $ | 134.75 | | | $ | 132.51 | | | | 1.7 | % | | $ | 134.90 | | | $ | 130.78 | | | | 3.2 | % |
| Occupancy (Comparable Hotels) | | | 80.1 | % | | | 80.3 | % | | | (0.2 | %) | | | 78.5 | % | | | 78.7 | % | | | (0.3 | %) |
| RevPAR (Comparable Hotels) | | $ | 107.97 | | | $ | 106.37 | | | | 1.5 | % | | $ | 105.96 | | | $ | 102.86 | | | | 3.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (AHR Only Comparable Hotels) | | $ | 136.50 | | | $ | 133.91 | | | | 1.9 | % | | $ | 136.04 | | | $ | 131.32 | | | | 3.6 | % |
| Occupancy (AHR Only Comparable Hotels) | | | 80.4 | % | | | 80.6 | % | | | (0.2 | %) | | | 78.9 | % | | | 79.0 | % | | | (0.1 | %) |
| RevPAR (AHR Only Comparable Hotels) | | $ | 109.76 | | | $ | 107.93 | | | | 1.7 | % | | $ | 107.35 | | | $ | 103.70 | | | | 3.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| ADR (Apple Ten Only Comparable Hotels) | | $ | 129.06 | | | $ | 127.78 | | | | 1.0 | % | | $ | 131.17 | | | $ | 128.96 | | | | 1.7 | % |
| Occupancy (Apple Ten Only Comparable Hotels) | | | 79.2 | % | | | 79.2 | % | | | - | | | | 77.4 | % | | | 77.6 | % | | | (0.3 | %) |
| RevPAR (Apple Ten Only Comparable Hotels) | | $ | 102.25 | | | $ | 101.16 | | | | 1.1 | % | | $ | 101.48 | | | $ | 100.08 | | | | 1.4 | % |
Note:
Comparable Hotels is defined as the 236 hotels owned by the Company as of September 30, 2016.
AHR Only Comparable Hotels is defined as the 180 hotels owned by the Company as of September 30, 2016, excluding the 56 hotels acquired on September 1, 2016 in the merger with Apple REIT Ten, Inc.
Apple Ten Only Comparable Hotels is defined as the 56 hotels owned by Apple REIT Ten, Inc., and acquired by the Company on September 1, 2016.
Comparable Hotels includes results of hotels for periods prior to the noted entity's ownership, and excludes results for dispositions.
Results included for periods prior to the noted entity's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.
| Page | 9 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Reconciliation of Net Income to Non-GAAP Financial Measures
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”); Adjusted EBITDA (“Adjusted EBITDA”); and Adjusted Hotel EBITDA (“Adjusted Hotel EBITDA”). These non-GAAP financial measures should be considered along with, but not as alternatives to, net income, cash flow from operations or any other operating GAAP measure. FFO, MFFO, EBITDA, Adjusted EBITDA, 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, Adjusted EBITDA, and Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, Adjusted EBITDA, 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.
| Page | 10 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Reconciliation of Net Income to FFO and MFFO
(Unaudited) (in thousands)
The Company calculates and presents FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains or losses from sales of real estate, extraordinary items as defined by GAAP, the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company further believes that by excluding the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that report FFO using the NAREIT definition. FFO as presented by the Company is applicable only to its common shareholders, but does not represent an amount that accrues directly to common shareholders.
The Company further adjusts FFO (MFFO) for certain additional items that are not in NAREIT’s definition of FFO, including: (i) the exclusion of transaction costs as these do not represent ongoing operations and (ii) the exclusion of non-cash straight-line ground lease expense as this expense does not reflect the underlying performance of the related hotels. The Company presents MFFO when evaluating its performance because it believes that it provides further useful supplemental information to investors regarding its ongoing operating performance.
The following table reconciles the Company’s GAAP net income to FFO and MFFO for the three and nine months ended September 30, 2016 and 2015 (in thousands).
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| Net income | | $ | 13,694 | | | $ | 46,968 | | | $ | 103,098 | | | $ | 135,080 | |
| Depreciation of real estate owned | | | 37,114 | | | | 32,121 | | | | 103,962 | | | | 93,516 | |
| Gain on sale of real estate | | | - | | | | - | | | | - | | | | (15,358 | ) |
| Loss on impairment of depreciable real estate assets | | | 5,471 | | | | - | | | | 5,471 | | | | - | |
| Amortization of favorable and unfavorable leases, net | | | 132 | | | | 133 | | | | 513 | | | | 2,289 | |
| Funds from operations | | | 56,411 | | | | 79,222 | | | | 213,044 | | | | 215,527 | |
| Transaction costs | | | 36,452 | | | | 842 | | | | 37,861 | | | | 7,891 | |
| Non-cash straight-line ground lease expense | | | 843 | | | | 829 | | | | 2,479 | | | | 2,528 | |
| Modified funds from operations | | $ | 93,706 | | | $ | 80,893 | | | $ | 253,384 | | | $ | 225,946 | |
| Page | 11 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA
(Unaudited) (in thousands)
EBITDA is a commonly used measure of performance in many industries and is defined as net income excluding interest, income taxes and depreciation and amortization. The Company believes EBITDA is useful to investors because it helps the Company and its investors evaluate the ongoing operating performance of the Company by removing the impact of its capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). In addition, certain covenants included in the Company’s indebtedness use EBITDA, as defined in the specific credit agreement, as a measure of financial compliance.
The Company considers the exclusion of certain additional items from EBITDA (Adjusted EBITDA) useful, including (i) the exclusion of transaction costs, gains or losses from sales of real estate and the loss on impairment of depreciable real estate assets as these do not represent ongoing operations and (ii) the exclusion of non-cash straight-line ground lease expense as this expense does not reflect the underlying performance of the related hotels.
The Company further excludes actual corporate-level general and administrative expense for the Company from Adjusted EBITDA (Adjusted Hotel EBITDA) to isolate property-level operational performance over which the Company’s hotel operators have direct control. The Company believes Adjusted Hotel EBITDA provides useful supplemental information to investors regarding operating performance, and is used by management to measure the performance of the Company’s hotels and effectiveness of the operators of the hotels.
The following table reconciles the Company’s GAAP net income to EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA for the three and nine months ended September 30, 2016 and 2015 (in thousands).
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| Net income | | $ | 13,694 | | | $ | 46,968 | | | $ | 103,098 | | | $ | 135,080 | |
| Depreciation | | | 37,343 | | | | 32,351 | | | | 104,651 | | | | 94,205 | |
| Amortization of favorable and unfavorable leases, net | | | 132 | | | | 133 | | | | 513 | | | | 2,289 | |
| Interest and other expense, net | | | 10,156 | | | | 9,302 | | | | 28,519 | | | | 24,265 | |
| Income tax (benefit) expense | | | (7 | ) | | | 138 | | | | 616 | | | | 872 | |
| EBITDA | | | 61,318 | | | | 88,892 | | | | 237,397 | | | | 256,711 | |
| Transaction costs | | | 36,452 | | | | 842 | | | | 37,861 | | | | 7,891 | |
| Gain on sale of real estate | | | - | | | | - | | | | - | | | | (15,358 | ) |
| Loss on impairment of depreciable real estate assets | | | 5,471 | | | | - | | | | 5,471 | | | | - | |
| Non-cash straight-line ground lease expense | | | 843 | | | | 829 | | | | 2,479 | | | | 2,528 | |
| Adjusted EBITDA | | $ | 104,084 | | | $ | 90,563 | | | $ | 283,208 | | | $ | 251,772 | |
| General and administrative expense | | | 2,623 | | | | 5,175 | | | | 12,511 | | | | 14,421 | |
| Adjusted Hotel EBITDA | | $ | 106,707 | | | $ | 95,738 | | | $ | 295,719 | | | $ | 266,193 | |
| Page | 12 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Debt Summary
(Unaudited) ($ in thousands)
September 30, 2016
| | | October 1 - December 31, 2016 | | | 2017 | | | 2018 | | | 2019 | | | 2020 | | | Thereafter | | | Total | | | Fair Market Value | |
| Total debt: | | | | | | | | | | | | | | | | | | | | | | | | |
| Maturities | | $ | 49,871 | | | $ | 38,502 | | | $ | 9,785 | | | $ | 332,477 | | | $ | 449,788 | | | $ | 470,976 | | | $ | 1,351,399 | | | $ | 1,361,172 | |
| Average interest rates | | | 3.3 | % | | | 3.3 | % | | | 3.2 | % | | | 3.3 | % | | | 3.7 | % | | | 4.1 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Variable rate debt: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Maturities | | $ | - | | | $ | - | | | $ | - | | | $ | 302,100 | | | $ | 425,000 | | | $ | 150,000 | | | $ | 877,100 | | | $ | 877,938 | |
| Average interest rates (1) | | | 2.6 | % | | | 2.6 | % | | | 2.6 | % | | | 2.7 | % | | | 2.9 | % | | | 2.9 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed rate debt: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Maturities | | $ | 49,871 | | | $ | 38,502 | | | $ | 9,785 | | | $ | 30,377 | | | $ | 24,788 | | | $ | 320,976 | | | $ | 474,299 | | | $ | 483,234 | |
| Average interest rates | | | 4.8 | % | | | 4.7 | % | | | 4.7 | % | | | 4.7 | % | | | 4.7 | % | | | 4.7 | % | | | | | | | | |
(1) The average interest rate gives effect to interest rate swaps, as applicable.
Note:
See further information on the Company’s indebtedness in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016.
| Page | 13 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region
Three Months ended September 30 (Unaudited)
| Region/State | | | | | Occupancy | | | ADR | | | RevPAR | | | % of Adjusted Hotel EBITDA | |
| | | # of Hotels | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | |
| East North Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Illinois | | | 8 | | | | 82.6 | % | | | 84.8 | % | | | (2.7 | )% | | $ | 132.40 | | | $ | 135.65 | | | | (2.4 | )% | | $ | 109.35 | | | $ | 115.10 | | | | (5.0 | )% | | | 4.4 | % |
| Indiana | | | 4 | | | | 82.9 | % | | | 84.2 | % | | | (1.6 | )% | | $ | 139.41 | | | $ | 135.38 | | | | 3.0 | % | | $ | 115.60 | | | $ | 114.03 | | | | 1.4 | % | | | 2.0 | % |
| Michigan | | | 1 | | | | 80.4 | % | | | 82.9 | % | | | (3.0 | )% | | $ | 135.46 | | | $ | 130.26 | | | | 4.0 | % | | $ | 108.98 | | | $ | 108.00 | | | | 0.9 | % | | | 0.5 | % |
| Ohio | | | 2 | | | | 78.7 | % | | | 79.1 | % | | | (0.5 | )% | | $ | 134.72 | | | $ | 132.32 | | | | 1.8 | % | | $ | 105.98 | | | $ | 104.61 | | | | 1.3 | % | | | 0.9 | % |
| East North Central Total | | | 15 | | | | 82.1 | % | | | 83.9 | % | | | (2.1 | )% | | $ | 134.31 | | | $ | 134.85 | | | | (0.4 | )% | | $ | 110.26 | | | $ | 113.13 | | | | (2.5 | )% | | | 7.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| East South Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Alabama | | | 13 | | | | 75.9 | % | | | 75.4 | % | | | 0.7 | % | | $ | 109.81 | | | $ | 107.59 | | | | 2.1 | % | | $ | 83.37 | | | $ | 81.16 | | | | 2.7 | % | | | 2.9 | % |
| Mississippi | | | 2 | | | | 69.5 | % | | | 78.2 | % | | | (11.2 | )% | | $ | 110.36 | | | $ | 111.36 | | | | (0.9 | )% | | $ | 76.67 | | | $ | 87.08 | | | | (11.9 | )% | | | 0.3 | % |
| Tennessee | | | 12 | | | | 83.9 | % | | | 85.9 | % | | | (2.3 | )% | | $ | 143.48 | | | $ | 138.55 | | | | 3.6 | % | | $ | 120.37 | | | $ | 119.02 | | | | 1.1 | % | | | 5.9 | % |
| East South Central Total | | | 27 | | | | 79.5 | % | | | 80.8 | % | | | (1.6 | )% | | $ | 127.38 | | | $ | 124.07 | | | | 2.7 | % | | $ | 101.23 | | | $ | 100.21 | | | | 1.0 | % | | | 9.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Middle Atlantic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| New Jersey | | | 5 | | | | 84.6 | % | | | 85.7 | % | | | (1.3 | )% | | $ | 140.52 | | | $ | 135.86 | | | | 3.4 | % | | $ | 118.87 | | | $ | 116.48 | | | | 2.1 | % | | | 2.2 | % |
| New York | | | 4 | | | | 87.5 | % | | | 87.7 | % | | | (0.2 | )% | | $ | 201.02 | | | $ | 211.31 | | | | (4.9 | )% | | $ | 175.97 | | | $ | 185.30 | | | | (5.0 | )% | | | 1.3 | % |
| Pennsylvania | | | 3 | | | | 76.1 | % | | | 76.2 | % | | | (0.2 | )% | | $ | 149.69 | | | $ | 144.23 | | | | 3.8 | % | | $ | 113.86 | | | $ | 109.88 | | | | 3.6 | % | | | 1.5 | % |
| Middle Atlantic Total | | | 12 | | | | 83.5 | % | | | 84.0 | % | | | (0.6 | )% | | $ | 164.81 | | | $ | 165.30 | | | | (0.3 | )% | | $ | 137.61 | | | $ | 138.92 | | | | (0.9 | )% | | | 5.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mountain | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Arizona | | | 11 | | | | 66.5 | % | | | 59.8 | % | | | 11.3 | % | | $ | 90.13 | | | $ | 87.09 | | | | 3.5 | % | | $ | 59.95 | | | $ | 52.04 | | | | 15.2 | % | | | 1.4 | % |
| Colorado | | | 4 | | | | 90.5 | % | | | 90.7 | % | | | (0.3 | )% | | $ | 161.13 | | | $ | 155.95 | | | | 3.3 | % | | $ | 145.82 | | | $ | 141.51 | | | | 3.1 | % | | | 3.2 | % |
| Idaho | | | 2 | | | | 86.6 | % | | | 84.9 | % | | | 1.9 | % | | $ | 125.42 | | | $ | 121.95 | | | | 2.8 | % | | $ | 108.57 | | | $ | 103.55 | | | | 4.8 | % | | | 1.6 | % |
| Utah | | | 2 | | | | 85.6 | % | | | 88.8 | % | | | (3.6 | )% | | $ | 119.51 | | | $ | 110.31 | | | | 8.3 | % | | $ | 102.30 | | | $ | 97.91 | | | | 4.5 | % | | | 0.8 | % |
| Mountain Total | | | 19 | | | | 76.6 | % | | | 73.0 | % | | | 4.8 | % | | $ | 117.29 | | | $ | 114.25 | | | | 2.7 | % | | $ | 89.80 | | | $ | 83.44 | | | | 7.6 | % | | | 7.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| New England | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Massachusetts | | | 4 | | | | 85.6 | % | | | 86.8 | % | | | (1.4 | )% | | $ | 133.04 | | | $ | 130.02 | | | | 2.3 | % | | $ | 113.94 | | | $ | 112.90 | | | | 0.9 | % | | | 1.7 | % |
| New England Total | | | 4 | | | | 85.6 | % | | | 86.8 | % | | | (1.4 | )% | | $ | 133.04 | | | $ | 130.02 | | | | 2.3 | % | | $ | 113.94 | | | $ | 112.90 | | | | 0.9 | % | | | 1.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pacific | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Alaska | | | 1 | | | | 92.6 | % | | | 91.5 | % | | | 1.2 | % | | $ | 260.04 | | | $ | 267.17 | | | | (2.7 | )% | | $ | 240.80 | | | $ | 244.46 | | | | (1.5 | )% | | | 1.5 | % |
| California | | | 27 | | | | 87.5 | % | | | 86.2 | % | | | 1.6 | % | | $ | 161.44 | | | $ | 153.02 | | | | 5.5 | % | | $ | 141.34 | | | $ | 131.86 | | | | 7.2 | % | | | 18.6 | % |
| Washington | | | 4 | | | | 90.4 | % | | | 91.1 | % | | | (0.8 | )% | | $ | 217.43 | | | $ | 210.07 | | | | 3.5 | % | | $ | 196.47 | | | $ | 191.34 | | | | 2.7 | % | | | 4.9 | % |
| Pacific Total | | | 32 | | | | 88.1 | % | | | 87.0 | % | | | 1.2 | % | | $ | 172.89 | | | $ | 165.47 | | | | 4.5 | % | | $ | 152.33 | | | $ | 144.01 | | | | 5.8 | % | | | 25.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| South Atlantic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Florida | | | 23 | | | | 81.1 | % | | | 81.0 | % | | | 0.1 | % | | $ | 113.15 | | | $ | 111.73 | | | | 1.3 | % | | $ | 91.77 | | | $ | 90.55 | | | | 1.3 | % | | | 6.7 | % |
| Georgia | | | 6 | | | | 71.8 | % | | | 72.8 | % | | | (1.3 | )% | | $ | 109.90 | | | $ | 102.54 | | | | 7.2 | % | | $ | 78.96 | | | $ | 74.67 | | | | 5.7 | % | | | 1.3 | % |
| Maryland | | | 2 | | | | 80.7 | % | | | 76.9 | % | | | 5.0 | % | | $ | 127.87 | | | $ | 128.54 | | | | (0.5 | )% | | $ | 103.23 | | | $ | 98.84 | | | | 4.4 | % | | | 0.7 | % |
| North Carolina | | | 12 | | | | 78.2 | % | | | 81.2 | % | | | (3.6 | )% | | $ | 118.15 | | | $ | 117.97 | | | | 0.1 | % | | $ | 92.45 | | | $ | 95.80 | | | | (3.5 | )% | | | 3.8 | % |
| South Carolina | | | 5 | | | | 82.6 | % | | | 81.8 | % | | | 1.0 | % | | $ | 116.80 | | | $ | 113.93 | | | | 2.5 | % | | $ | 96.52 | | | $ | 93.23 | | | | 3.5 | % | | | 1.6 | % |
| Virginia | | | 16 | | | | 77.5 | % | | | 75.6 | % | | | 2.6 | % | | $ | 145.13 | | | $ | 143.08 | | | | 1.4 | % | | $ | 112.53 | | | $ | 108.15 | | | | 4.0 | % | | | 9.9 | % |
| South Atlantic Total | | | 64 | | | | 78.9 | % | | | 78.7 | % | | | 0.3 | % | | $ | 124.47 | | | $ | 122.93 | | | | 1.3 | % | | $ | 98.22 | | | $ | 96.75 | | | | 1.5 | % | | | 24.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| West North Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Iowa | | | 3 | | | | 82.1 | % | | | 81.2 | % | | | 1.1 | % | | $ | 115.99 | | | $ | 115.92 | | | | 0.1 | % | | $ | 95.23 | | | $ | 94.12 | | | | 1.2 | % | | | 0.9 | % |
| Kansas | | | 4 | | | | 74.2 | % | | | 78.0 | % | | | (4.9 | )% | | $ | 108.38 | | | $ | 108.44 | | | | (0.1 | )% | | $ | 80.42 | | | $ | 84.59 | | | | (4.9 | )% | | | 0.7 | % |
| Minnesota | | | 2 | | | | 79.5 | % | | | 77.5 | % | | | 2.7 | % | | $ | 121.68 | | | $ | 119.64 | | | | 1.7 | % | | $ | 96.78 | | | $ | 92.69 | | | | 4.4 | % | | | 0.6 | % |
| Missouri | | | 4 | | | | 85.0 | % | | | 85.6 | % | | | (0.7 | )% | | $ | 140.86 | | | $ | 139.31 | | | | 1.1 | % | | $ | 119.70 | | | $ | 119.20 | | | | 0.4 | % | | | 2.0 | % |
| Nebraska | | | 4 | | | | 82.1 | % | | | 79.0 | % | | | 3.9 | % | | $ | 132.01 | | | $ | 126.52 | | | | 4.3 | % | | $ | 108.36 | | | $ | 99.95 | | | | 8.4 | % | | | 2.2 | % |
| West North Central Total | | | 17 | | | | 81.0 | % | | | 80.6 | % | | | 0.4 | % | | $ | 126.64 | | | $ | 124.26 | | | | 1.9 | % | | $ | 102.54 | | | $ | 100.17 | | | | 2.4 | % | | | 6.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| West South Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Arkansas | | | 4 | | | | 75.9 | % | | | 77.2 | % | | | (1.6 | )% | | $ | 119.60 | | | $ | 120.38 | | | | (0.6 | )% | | $ | 90.82 | | | $ | 92.87 | | | | (2.2 | )% | | | 1.2 | % |
| Louisiana | | | 4 | | | | 75.0 | % | | | 74.9 | % | | | 0.1 | % | | $ | 119.86 | | | $ | 114.22 | | | | 4.9 | % | | $ | 89.84 | | | $ | 85.52 | | | | 5.1 | % | | | 1.3 | % |
| Oklahoma | | | 4 | | | | 81.1 | % | | | 80.7 | % | | | 0.5 | % | | $ | 136.95 | | | $ | 140.78 | | | | (2.7 | )% | | $ | 111.10 | | | $ | 113.59 | | | | (2.2 | )% | | | 2.0 | % |
| Texas | | | 34 | | | | 74.0 | % | | | 76.9 | % | | | (3.8 | )% | | $ | 118.46 | | | $ | 119.64 | | | | (1.0 | )% | | $ | 87.70 | | | $ | 92.04 | | | | (4.7 | )% | | | 9.5 | % |
| West South Central Total | | | 46 | | | | 74.9 | % | | | 77.1 | % | | | (2.8 | )% | | $ | 120.60 | | | $ | 121.32 | | | | (0.6 | )% | | $ | 90.38 | | | $ | 93.55 | | | | (3.4 | )% | | | 14.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Portfolio | | | 236 | | | | 80.1 | % | | | 80.3 | % | | | (0.2 | )% | | $ | 134.75 | | | $ | 132.51 | | | | 1.7 | % | | $ | 107.97 | | | $ | 106.37 | | | | 1.5 | % | | | 100.0 | % |
Note: State categorization is based on STR, Inc. census region designation.
| Page | 14 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region
Nine Months ended September 30 (Unaudited)
| Region/State | | | | | Occupancy | | | ADR | | | RevPAR | | | % of Adjusted Hotel EBITDA | |
| | | # of Hotels | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | |
| East North Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Illinois | | | 8 | | | | 74.7 | % | | | 78.3 | % | | | (4.6 | )% | | $ | 129.28 | | | $ | 130.15 | | | | (0.7 | )% | | $ | 96.59 | | | $ | 101.91 | | | | (5.2 | )% | | | 3.7 | % |
| Indiana | | | 4 | | | | 77.5 | % | | | 77.5 | % | | | (0.1 | )% | | $ | 130.19 | | | $ | 125.20 | | | | 4.0 | % | | $ | 100.86 | | | $ | 97.05 | | | | 3.9 | % | | | 1.6 | % |
| Michigan | | | 1 | | | | 76.8 | % | | | 77.7 | % | | | (1.1 | )% | | $ | 137.14 | | | $ | 126.82 | | | | 8.1 | % | | $ | 105.37 | | | $ | 98.50 | | | | 7.0 | % | | | 0.5 | % |
| Ohio | | | 2 | | | | 72.8 | % | | | 73.0 | % | | | (0.3 | )% | | $ | 127.65 | | | $ | 127.09 | | | | 0.4 | % | | $ | 92.91 | | | $ | 92.78 | | | | 0.1 | % | | | 0.7 | % |
| East North Central Total | | | 15 | | | | 75.2 | % | | | 77.5 | % | | | (2.9 | )% | | $ | 129.82 | | | $ | 128.47 | | | | 1.0 | % | | $ | 97.64 | | | $ | 99.51 | | | | (1.9 | )% | | | 6.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| East South Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Alabama | | | 13 | | | | 75.8 | % | | | 75.5 | % | | | 0.4 | % | | $ | 109.62 | | | $ | 107.04 | | | | 2.4 | % | | $ | 83.07 | | | $ | 80.83 | | | | 2.8 | % | | | 3.0 | % |
| Mississippi | | | 2 | | | | 70.1 | % | | | 79.4 | % | | | (11.7 | )% | | $ | 109.92 | | | $ | 108.97 | | | | 0.9 | % | | $ | 77.04 | | | $ | 86.52 | | | | (11.0 | )% | | | 0.4 | % |
| Tennessee | | | 12 | | | | 81.9 | % | | | 83.2 | % | | | (1.5 | )% | | $ | 144.19 | | | $ | 139.10 | | | | 3.7 | % | | $ | 118.14 | | | $ | 115.73 | | | | 2.1 | % | | | 5.8 | % |
| East South Central Total | | | 27 | | | | 78.5 | % | | | 79.5 | % | | | (1.3 | )% | | $ | 127.46 | | | $ | 123.71 | | | | 3.0 | % | | $ | 100.02 | | | $ | 98.40 | | | | 1.6 | % | | | 9.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Middle Atlantic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| New Jersey | | | 5 | | | | 79.0 | % | | | 78.7 | % | | | 0.4 | % | | $ | 138.62 | | | $ | 133.71 | | | | 3.7 | % | | $ | 109.57 | | | $ | 105.28 | | | | 4.1 | % | | | 1.9 | % |
| New York | | | 4 | | | | 83.0 | % | | | 81.1 | % | | | 2.3 | % | | $ | 194.31 | | | $ | 197.37 | | | | (1.6 | )% | | $ | 161.23 | | | $ | 160.10 | | | | 0.7 | % | | | 1.0 | % |
| Pennsylvania | | | 3 | | | | 68.3 | % | | | 70.2 | % | | | (2.7 | )% | | $ | 149.57 | | | $ | 143.33 | | | | 4.4 | % | | $ | 102.11 | | | $ | 100.57 | | | | 1.5 | % | | | 1.2 | % |
| Middle Atlantic Total | | | 12 | | | | 77.7 | % | | | 77.4 | % | | | 0.4 | % | | $ | 161.82 | | | $ | 159.21 | | | | 1.6 | % | | $ | 125.79 | | | $ | 123.28 | | | | 2.0 | % | | | 4.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mountain | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Arizona | | | 11 | | | | 75.3 | % | | | 69.6 | % | | | 8.1 | % | | $ | 113.94 | | | $ | 113.50 | | | | 0.4 | % | | $ | 85.77 | | | $ | 79.01 | | | | 8.6 | % | | | 3.7 | % |
| Colorado | | | 4 | | | | 81.4 | % | | | 82.5 | % | | | (1.4 | )% | | $ | 150.54 | | | $ | 148.73 | | | | 1.2 | % | | $ | 122.57 | | | $ | 122.75 | | | | (0.2 | )% | | | 2.5 | % |
| Idaho | | | 2 | | | | 82.3 | % | | | 77.6 | % | | | 6.1 | % | | $ | 125.49 | | | $ | 115.48 | | | | 8.7 | % | | $ | 103.33 | | | $ | 89.63 | | | | 15.3 | % | | | 1.5 | % |
| Utah | | | 2 | | | | 76.2 | % | | | 79.8 | % | | | (4.4 | )% | | $ | 112.58 | | | $ | 105.83 | | | | 6.4 | % | | $ | 85.83 | | | $ | 84.43 | | | | 1.7 | % | | | 0.6 | % |
| Mountain Total | | | 19 | | | | 77.8 | % | | | 74.6 | % | | | 4.3 | % | | $ | 123.84 | | | $ | 121.30 | | | | 2.1 | % | | $ | 96.31 | | | $ | 90.46 | | | | 6.5 | % | | | 8.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| New England | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Massachusetts | | | 4 | | | | 80.3 | % | | | 79.4 | % | | | 1.2 | % | | $ | 130.72 | | | $ | 125.47 | | | | 4.2 | % | | $ | 105.03 | | | $ | 99.63 | | | | 5.4 | % | | | 1.5 | % |
| New England Total | | | 4 | | | | 80.3 | % | | | 79.4 | % | | | 1.2 | % | | $ | 130.72 | | | $ | 125.47 | | | | 4.2 | % | | $ | 105.03 | | | $ | 99.63 | | | | 5.4 | % | | | 1.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pacific | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Alaska | | | 1 | | | | 82.0 | % | | | 87.4 | % | | | (6.2 | )% | | $ | 216.65 | | | $ | 218.35 | | | | (0.8 | )% | | $ | 177.55 | | | $ | 190.85 | | | | (7.0 | )% | | | 1.0 | % |
| California | | | 27 | | | | 85.7 | % | | | 83.8 | % | | | 2.3 | % | | $ | 158.95 | | | $ | 144.79 | | | | 9.8 | % | | $ | 136.19 | | | $ | 121.27 | | | | 12.3 | % | | | 18.4 | % |
| Washington | | | 4 | | | | 83.5 | % | | | 87.2 | % | | | (4.2 | )% | | $ | 186.65 | | | $ | 180.18 | | | | 3.6 | % | | $ | 155.86 | | | $ | 157.12 | | | | (0.8 | )% | | | 3.6 | % |
| Pacific Total | | | 32 | | | | 85.3 | % | | | 84.4 | % | | | 1.0 | % | | $ | 164.60 | | | $ | 152.66 | | | | 7.8 | % | | $ | 140.33 | | | $ | 128.80 | | | | 8.9 | % | | | 23.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| South Atlantic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Florida | | | 23 | | | | 83.7 | % | | | 84.6 | % | | | (1.1 | )% | | $ | 129.99 | | | $ | 127.73 | | | | 1.8 | % | | $ | 108.83 | | | $ | 108.12 | | | | 0.7 | % | | | 9.5 | % |
| Georgia | | | 6 | | | | 72.6 | % | | | 75.7 | % | | | (4.1 | )% | | $ | 109.85 | | | $ | 104.24 | | | | 5.4 | % | | $ | 79.70 | | | $ | 78.90 | | | | 1.0 | % | | | 1.2 | % |
| Maryland | | | 2 | | | | 76.2 | % | | | 70.3 | % | | | 8.4 | % | | $ | 131.68 | | | $ | 128.35 | | | | 2.6 | % | | $ | 100.32 | | | $ | 90.24 | | | | 11.2 | % | | | 0.7 | % |
| North Carolina | | | 12 | | | | 77.5 | % | | | 77.7 | % | | | (0.2 | )% | | $ | 114.58 | | | $ | 113.26 | | | | 1.2 | % | | $ | 88.85 | | | $ | 88.04 | | | | 0.9 | % | | | 3.8 | % |
| South Carolina | | | 5 | | | | 82.0 | % | | | 80.4 | % | | | 2.0 | % | | $ | 117.54 | | | $ | 113.03 | | | | 4.0 | % | | $ | 96.40 | | | $ | 90.87 | | | | 6.1 | % | | | 1.6 | % |
| Virginia | | | 16 | | | | 74.0 | % | | | 72.9 | % | | | 1.6 | % | | $ | 137.22 | | | $ | 133.13 | | | | 3.1 | % | | $ | 101.54 | | | $ | 96.99 | | | | 4.7 | % | | | 8.5 | % |
| South Atlantic Total | | | 64 | | | | 78.5 | % | | | 78.3 | % | | | 0.2 | % | | $ | 127.66 | | | $ | 124.60 | | | | 2.5 | % | | $ | 100.19 | | | $ | 97.59 | | | | 2.7 | % | | | 25.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| West North Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Iowa | | | 3 | | | | 75.9 | % | | | 75.6 | % | | | 0.4 | % | | $ | 115.44 | | | $ | 114.04 | | | | 1.2 | % | | $ | 87.58 | | | $ | 86.21 | | | | 1.6 | % | | | 0.8 | % |
| Kansas | | | 4 | | | | 69.4 | % | | | 75.0 | % | | | (7.4 | )% | | $ | 108.40 | | | $ | 106.22 | | | | 2.1 | % | | $ | 75.27 | | | $ | 79.62 | | | | (5.5 | )% | | | 0.6 | % |
| Minnesota | | | 2 | | | | 75.3 | % | | | 72.1 | % | | | 4.4 | % | | $ | 119.15 | | | $ | 117.13 | | | | 1.7 | % | | $ | 89.71 | | | $ | 84.43 | | | | 6.2 | % | | | 0.5 | % |
| Missouri | | | 4 | | | | 79.1 | % | | | 81.5 | % | | | (3.0 | )% | | $ | 135.97 | | | $ | 135.03 | | | | 0.7 | % | | $ | 107.50 | | | $ | 110.07 | | | | (2.3 | )% | | | 1.8 | % |
| Nebraska | | | 4 | | | | 77.9 | % | | | 76.5 | % | | | 1.8 | % | | $ | 142.16 | | | $ | 135.41 | | | | 5.0 | % | | $ | 110.72 | | | $ | 103.62 | | | | 6.9 | % | | | 2.3 | % |
| West North Central Total | | | 17 | | | | 75.9 | % | | | 76.8 | % | | | (1.2 | )% | | $ | 128.02 | | | $ | 124.74 | | | | 2.6 | % | | $ | 97.21 | | | $ | 95.86 | | | | 1.4 | % | | | 6.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| West South Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Arkansas | | | 4 | | | | 70.8 | % | | | 71.5 | % | | | (1.0 | )% | | $ | 117.29 | | | $ | 116.46 | | | | 0.7 | % | | $ | 83.06 | | | $ | 83.31 | | | | (0.3 | )% | | | 1.1 | % |
| Louisiana | | | 4 | | | | 75.4 | % | | | 79.0 | % | | | (4.5 | )% | | $ | 129.89 | | | $ | 127.37 | | | | 2.0 | % | | $ | 97.97 | | | $ | 100.66 | | | | (2.7 | )% | | | 1.7 | % |
| Oklahoma | | | 4 | | | | 80.4 | % | | | 78.9 | % | | | 1.9 | % | | $ | 138.18 | | | $ | 136.96 | | | | 0.9 | % | | $ | 111.03 | | | $ | 108.02 | | | | 2.8 | % | | | 2.0 | % |
| Texas | | | 34 | | | | 76.0 | % | | | 77.7 | % | | | (2.1 | )% | | $ | 123.16 | | | $ | 122.80 | | | | 0.3 | % | | $ | 93.66 | | | $ | 95.42 | | | | (1.8 | )% | | | 11.3 | % |
| West South Central Total | | | 46 | | | | 76.0 | % | | | 77.5 | % | | | (1.9 | )% | | $ | 124.93 | | | $ | 124.21 | | | | 0.6 | % | | $ | 94.98 | | | $ | 96.26 | | | | (1.3 | )% | | | 16.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Portfolio | | | 236 | | | | 78.5 | % | | | 78.7 | % | | | (0.3 | )% | | $ | 134.90 | | | $ | 130.78 | | | | 3.2 | % | | $ | 105.96 | | | $ | 102.86 | | | | 3.0 | % | | | 100.0 | % |
Note: State categorization is based on STR, Inc. census region designation.
| Page | 15 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale
Three and Nine Months ended September 30
(Unaudited)
| Chain Scale/Brand | | | | | Occupancy | | | ADR | | | RevPAR | | | % of Adjusted Hotel EBITDA | |
| | | # of Hotels | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | |
| Upscale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Courtyard | | | 39 | | | | 76.0 | % | | | 76.1 | % | | | (0.2 | )% | | $ | 146.48 | | | $ | 144.36 | | | | 1.5 | % | | $ | 111.28 | | | $ | 109.85 | | | | 1.3 | % | | | 20.5 | % |
| Hilton Garden Inn | | | 41 | | | | 80.9 | % | | | 81.0 | % | | | (0.2 | )% | | $ | 132.26 | | | $ | 130.52 | | | | 1.3 | % | | $ | 106.95 | | | $ | 105.70 | | | | 1.2 | % | | | 18.9 | % |
| Homewood Suites | | | 34 | | | | 83.3 | % | | | 84.6 | % | | | (1.6 | )% | | $ | 130.80 | | | $ | 127.20 | | | | 2.8 | % | | $ | 108.94 | | | $ | 107.66 | | | | 1.2 | % | | | 11.8 | % |
| Residence Inn | | | 32 | | | | 83.3 | % | | | 83.9 | % | | | (0.7 | )% | | $ | 150.86 | | | $ | 148.08 | | | | 1.9 | % | | $ | 125.69 | | | $ | 124.25 | | | | 1.2 | % | | | 16.1 | % |
| SpringHill Suites | | | 17 | | | | 82.5 | % | | | 80.0 | % | | | 3.0 | % | | $ | 118.40 | | | $ | 111.21 | | | | 6.5 | % | | $ | 97.63 | | | $ | 88.99 | | | | 9.7 | % | | | 6.7 | % |
| Upscale Total | | | 163 | | | | 80.7 | % | | | 80.8 | % | | | (0.2 | )% | | $ | 137.30 | | | $ | 134.47 | | | | 2.1 | % | | $ | 110.75 | | | $ | 108.64 | | | | 1.9 | % | | | 74.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Upper Midscale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fairfield Inn/Fairfield Inn & Suites | | | 11 | | | | 80.1 | % | | | 79.8 | % | | | 0.4 | % | | $ | 116.24 | | | $ | 112.03 | | | | 3.8 | % | | $ | 93.07 | | | $ | 89.37 | | | | 4.1 | % | | | 3.5 | % |
| Hampton Inn/Hampton Inn & Suites | | | 36 | | | | 81.2 | % | | | 81.7 | % | | | (0.7 | )% | | $ | 126.43 | | | $ | 125.14 | | | | 1.0 | % | | $ | 102.64 | | | $ | 102.29 | | | | 0.3 | % | | | 13.0 | % |
| Home2 Suites | | | 6 | | | | 82.6 | % | | | 86.5 | % | | | (4.5 | )% | | $ | 123.65 | | | $ | 117.40 | | | | 5.3 | % | | $ | 102.14 | | | $ | 101.55 | | | | 0.6 | % | | | 2.4 | % |
| TownePlace Suites | | | 12 | | | | 76.5 | % | | | 76.4 | % | | | 0.1 | % | | $ | 100.34 | | | $ | 96.33 | | | | 4.2 | % | | $ | 76.80 | | | $ | 73.64 | | | | 4.3 | % | | | 2.7 | % |
| Upper Midscale Total | | | 65 | | | | 80.4 | % | | | 80.9 | % | | | (0.6 | )% | | $ | 120.52 | | | $ | 117.76 | | | | 2.3 | % | | $ | 96.88 | | | $ | 95.24 | | | | 1.7 | % | | | 21.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Upper Upscale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Embassy Suites | | | 2 | | | | 88.2 | % | | | 81.6 | % | | | 8.1 | % | | $ | 198.80 | | | $ | 208.08 | | | | (4.5 | )% | | $ | 175.36 | | | $ | 169.83 | | | | 3.3 | % | | | 1.8 | % |
| Hilton | | | 1 | | | | 77.6 | % | | | 72.4 | % | | | 7.2 | % | | $ | 164.10 | | | $ | 164.89 | | | | (0.5 | )% | | $ | 127.37 | | | $ | 119.35 | | | | 6.7 | % | | | 0.8 | % |
| Marriott | | | 4 | | | | 65.1 | % | | | 66.6 | % | | | (2.2 | )% | | $ | 130.86 | | | $ | 133.70 | | | | (2.1 | )% | | $ | 85.25 | | | $ | 89.08 | | | | (4.3 | )% | | | 2.2 | % |
| Renaissance | | | 1 | | | | 91.5 | % | | | 89.6 | % | | | 2.1 | % | | $ | 262.08 | | | $ | 289.53 | | | | (9.5 | )% | | $ | 239.93 | | | $ | 259.55 | | | | (7.6 | )% | | | (0.4 | )% |
| Upper Upscale Total | | | 8 | | | | 73.3 | % | | | 72.3 | % | | | 1.4 | % | | $ | 166.24 | | | $ | 172.15 | | | | (3.4 | )% | | $ | 121.83 | | | $ | 124.42 | | | | (2.1 | )% | | | 4.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Portfolio | | | 236 | | | | 80.1 | % | | | 80.3 | % | | | (0.2 | )% | | $ | 134.75 | | | $ | 132.51 | | | | 1.7 | % | | $ | 107.97 | | | $ | 106.37 | | | | 1.5 | % | | | 100.0 | % |
| Chain Scale/Brand | | | | | Occupancy | | | ADR | | | RevPAR | | | % of Adjusted Hotel EBITDA | |
| | | # of Hotels | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | |
| Upscale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Courtyard | | | 39 | | | | 75.0 | % | | | 74.5 | % | | | 0.6 | % | | $ | 143.55 | | | $ | 138.59 | | | | 3.6 | % | | $ | 107.61 | | | $ | 103.25 | | | | 4.2 | % | | | 19.9 | % |
| Hilton Garden Inn | | | 41 | | | | 78.4 | % | | | 79.2 | % | | | (1.0 | )% | | $ | 133.47 | | | $ | 130.67 | | | | 2.1 | % | | $ | 104.66 | | | $ | 103.47 | | | | 1.2 | % | | | 19.0 | % |
| Homewood Suites | | | 34 | | | | 82.7 | % | | | 82.6 | % | | | 0.1 | % | | $ | 135.79 | | | $ | 130.85 | | | | 3.8 | % | | $ | 112.25 | | | $ | 108.08 | | | | 3.9 | % | | | 12.7 | % |
| Residence Inn | | | 32 | | | | 81.4 | % | | | 82.5 | % | | | (1.3 | )% | | $ | 146.13 | | | $ | 140.89 | | | | 3.7 | % | | $ | 119.00 | | | $ | 116.21 | | | | 2.4 | % | | | 15.3 | % |
| SpringHill Suites | | | 17 | | | | 78.8 | % | | | 77.2 | % | | | 2.1 | % | | $ | 119.71 | | | $ | 108.90 | | | | 9.9 | % | | $ | 94.36 | | | $ | 84.08 | | | | 12.2 | % | | | 6.6 | % |
| Upscale Total | | | 163 | | | | 78.9 | % | | | 79.0 | % | | | (0.1 | )% | | $ | 137.22 | | | $ | 132.36 | | | | 3.7 | % | | $ | 108.24 | | | $ | 104.52 | | | | 3.6 | % | | | 73.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Upper Midscale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fairfield Inn/Fairfield Inn & Suites | | | 11 | | | | 79.3 | % | | | 78.9 | % | | | 0.6 | % | | $ | 117.94 | | | $ | 112.80 | | | | 4.6 | % | | $ | 93.58 | | | $ | 88.99 | | | | 5.2 | % | | | 3.6 | % |
| Hampton Inn/Hampton Inn & Suites | | | 36 | | | | 79.0 | % | | | 79.5 | % | | | (0.7 | )% | | $ | 128.65 | | | $ | 126.01 | | | | 2.1 | % | | $ | 101.58 | | | $ | 100.20 | | | | 1.4 | % | | | 13.4 | % |
| Home2 Suites | | | 6 | | | | 84.6 | % | | | 83.8 | % | | | 0.9 | % | | $ | 122.66 | | | $ | 117.65 | | | | 4.3 | % | | $ | 103.75 | | | $ | 98.59 | | | | 5.2 | % | | | 2.2 | % |
| TownePlace Suites | | | 12 | | | | 77.1 | % | | | 76.6 | % | | | 0.6 | % | | $ | 101.02 | | | $ | 97.14 | | | | 4.0 | % | | $ | 77.86 | | | $ | 74.40 | | | | 4.6 | % | | | 2.9 | % |
| Upper Midscale Total | | | 65 | | | | 79.2 | % | | | 79.2 | % | | | (0.1 | )% | | $ | 122.00 | | | $ | 118.44 | | | | 3.0 | % | | $ | 96.58 | | | $ | 93.85 | | | | 2.9 | % | | | 22.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Upper Upscale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Embassy Suites | | | 2 | | | | 83.5 | % | | | 84.6 | % | | | (1.4 | )% | | $ | 180.14 | | | $ | 179.95 | | | | 0.1 | % | | $ | 150.34 | | | $ | 152.28 | | | | (1.3 | )% | | | 1.4 | % |
| Hilton | | | 1 | | | | 79.4 | % | | | 76.9 | % | | | 3.2 | % | | $ | 169.25 | | | $ | 165.84 | | | | 2.1 | % | | $ | 134.41 | | | $ | 127.60 | | | | 5.3 | % | | | 0.9 | % |
| Marriott | | | 4 | | | | 65.7 | % | | | 66.8 | % | | | (1.6 | )% | | $ | 134.47 | | | $ | 134.98 | | | | (0.4 | )% | | $ | 88.37 | | | $ | 90.19 | | | | (2.0 | )% | | | 2.6 | % |
| Renaissance | | | 1 | | | | 86.2 | % | | | 85.5 | % | | | 0.7 | % | | $ | 253.64 | | | $ | 263.67 | | | | (3.8 | )% | | $ | 218.60 | | | $ | 225.55 | | | | (3.1 | )% | | | (0.5 | )% |
| Upper Upscale Total | | | 8 | | | | 72.5 | % | | | 73.0 | % | | | (0.7 | )% | | $ | 162.95 | | | $ | 163.73 | | | | (0.5 | )% | | $ | 118.11 | | | $ | 119.50 | | | | (1.2 | )% | | | 4.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Portfolio | | | 236 | | | | 78.5 | % | | | 78.7 | % | | | (0.3 | )% | | $ | 134.90 | | | $ | 130.78 | | | | 3.2 | % | | $ | 105.96 | | | $ | 102.86 | | | | 3.0 | % | | | 100.0 | % |
Note: Brand categorization is based on STR, Inc. census chain scale designation.
| Page | 16 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location
Three and Nine Months ended September 30
(Unaudited)
| Location | | | | | Occupancy | | | ADR | | | RevPAR | | | % of Adjusted Hotel EBITDA | |
| | | # of Hotels | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | | | Q3 2015 | | | % Change | | | Q3 2016 | |
| STR Location | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Airport | | | 16 | | | | 83.8 | % | | | 85.1 | % | | | (1.5 | )% | | $ | 125.92 | | | $ | 123.04 | | | | 2.3 | % | | $ | 105.50 | | | $ | 104.68 | | | | 0.8 | % | | | 5.8 | % |
| Interstate | | | 8 | | | | 76.0 | % | | | 79.0 | % | | | (3.8 | )% | | $ | 117.26 | | | $ | 114.17 | | | | 2.7 | % | | $ | 89.10 | | | $ | 90.16 | | | | (1.2 | )% | | | 2.7 | % |
| Resort | | | 9 | | | | 82.4 | % | | | 83.4 | % | | | (1.3 | )% | | $ | 145.62 | | | $ | 146.40 | | | | (0.5 | )% | | $ | 119.95 | | | $ | 122.12 | | | | (1.8 | )% | | | 5.3 | % |
| Small Metro/Town | | | 19 | | | | 72.1 | % | | | 69.4 | % | | | 3.8 | % | | $ | 105.27 | | | $ | 102.46 | | | | 2.7 | % | | $ | 75.85 | | | $ | 71.11 | | | | 6.7 | % | | | 3.9 | % |
| Suburban | | | 148 | | | | 79.8 | % | | | 80.6 | % | | | (1.0 | )% | | $ | 131.42 | | | $ | 128.39 | | | | 2.4 | % | | $ | 104.82 | | | $ | 103.43 | | | | 1.4 | % | | | 58.7 | % |
| Urban | | | 36 | | | | 83.0 | % | | | 81.1 | % | | | 2.3 | % | | $ | 157.09 | | | $ | 158.26 | | | | (0.7 | )% | | $ | 130.32 | | | $ | 128.35 | | | | 1.5 | % | | | 23.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Portfolio | | | 236 | | | | 80.1 | % | | | 80.3 | % | | | (0.2 | )% | | $ | 134.75 | | | $ | 132.51 | | | | 1.7 | % | | $ | 107.97 | | | $ | 106.37 | | | | 1.5 | % | | | 100.0 | % |
| Location | | | | | Occupancy | | | ADR | | | RevPAR | | | % of Adjusted Hotel EBITDA | |
| | | # of Hotels | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | | | YTD 2015 | | | % Change | | | YTD 2016 | |
| STR Location | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Airport | | | 16 | | | | 83.6 | % | | | 85.0 | % | | | (1.6 | )% | | $ | 130.06 | | | $ | 126.55 | | | | 2.8 | % | | $ | 108.75 | | | $ | 107.53 | | | | 1.1 | % | | | 6.5 | % |
| Interstate | | | 8 | | | | 73.7 | % | | | 76.8 | % | | | (4.0 | )% | | $ | 114.19 | | | $ | 111.45 | | | | 2.5 | % | | $ | 84.14 | | | $ | 85.55 | | | | (1.7 | )% | | | 2.5 | % |
| Resort | | | 9 | | | | 80.4 | % | | | 81.9 | % | | | (1.9 | )% | | $ | 142.59 | | | $ | 141.89 | | | | 0.5 | % | | $ | 114.60 | | | $ | 116.20 | | | | (1.4 | )% | | | 4.7 | % |
| Small Metro/Town | | | 19 | | | | 73.6 | % | | | 70.7 | % | | | 4.2 | % | | $ | 110.72 | | | $ | 108.33 | | | | 2.2 | % | | $ | 81.54 | | | $ | 76.60 | | | | 6.4 | % | | | 4.8 | % |
| Suburban | | | 148 | | | | 78.0 | % | | | 78.4 | % | | | (0.5 | )% | | $ | 131.55 | | | $ | 126.43 | | | | 4.0 | % | | $ | 102.62 | | | $ | 99.14 | | | | 3.5 | % | | | 58.9 | % |
| Urban | | | 36 | | | | 80.6 | % | | | 79.7 | % | | | 1.1 | % | | $ | 156.44 | | | $ | 153.97 | | | | 1.6 | % | | $ | 126.11 | | | $ | 122.76 | | | | 2.7 | % | | | 22.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Portfolio | | | 236 | | | | 78.5 | % | | | 78.7 | % | | | (0.3 | )% | | $ | 134.90 | | | $ | 130.78 | | | | 3.2 | % | | $ | 105.96 | | | $ | 102.86 | | | | 3.0 | % | | | 100.0 | % |
Note: Location categorization is based on STR, Inc. designation.
| Page | 17 |
Apple Hospitality REIT, Inc. • 814 East Main Street • Richmond, Virginia 23219 • 804‐344‐8121 • applehospitalityreit.com |
